Rules and Regulations Implementing the Domestic Workers Act

January 18, 2013

AN ACT INSTITUTING POLICIES FOR THE PROTECTION AND WELFARE OF DOMESTIC WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

ARTICLE I GENERAL PROVISIONS

Section 1. Short Title. – This Act shall be known as the "Domestic Workers Act" or "Batas Kasambahay".

Section 2. Declaration of Policies. – It is hereby declared that:

(a) The State strongly affirms labor as a primary social force and is committed to respect, promote, protect and realize the fundamental principles and rights at work including, but not limited to, abolition of child labor, elimination of all forms of forced labor, discrimination in employment and occupation, and trafficking in persons, especially women and children;

(b) The State adheres to internationally accepted working conditions for workers in general, and establishes labor standards for domestic workers in particular, towards decent employment and income, enhanced coverage of social protection, respect for human rights and strengthened social dialogue;

(c) The State recognizes the need to protect the rights of domestic workers against abuse, harassment, violence, economic exploitation and performance of work that is hazardous to their physical and mental health; and

(d) The State, in protecting domestic workers and recognizing their special needs to ensure safe and healthful working conditions, promotes gender-sensitive measures in the formulation and implementation of policies and programs affecting the local domestic work.

Section 3. Coverage. – This Act applies to all domestic workers employed and working within the country.

Section 4. Definition of Terms. – As used in this Act, the term:

(a) Debt bondage refers to the rendering of service by the domestic worker as security or payment for a debt where the length and nature of service is not clearly defined or when the value of the service is not reasonably applied in the payment of the debt.

(b) Deployment expenses refers to expenses that are directly used for the transfer of the domestic worker from place of origin to the place of work covering the cost of transportation. Advances or loans by the domestic worker are not included in the definition of deployment expenses.

(c) Domestic work refers to work performed in or for a household or households.

(d) Domestic worker or "Kasambahay" refers to any person engaged in domestic work within an employment relationship such as, but not limited to, the following: general househelp, nursemaid or "yaya", cook, gardener, or laundry person, but shall exclude any person who performs domestic work only occasionally or sporadically and not on an occupational basis.

The term shall not include children who are under foster family arrangement, and are provided access to education and given an allowance incidental to education, i.e. "baon", transportation, school projects and school activities.

(e) Employer refers to any person who engages and controls the services of a domestic worker and is party to the employment contract.

(f) Household refers to the immediate members of the family or the occupants of the house that are directly provided services by the domestic worker.

(g) Private Employment Agency (PEA) refers to any individual, legitimate partnership, corporation or entity licensed to engage in the recruitment and placement of domestic workers for local employment.

(h) Working children, as used under this Act, refers to domestic workers who are fifteen (15) years old and above but below eighteen (18) years old.

ARTICLE II RIGHTS AND PRIVILEGES

Section 5. Standard of Treatment. – The employer or any member of the household shall not subject a domestic worker or "kasambahay" to any kind of abuse nor inflict any form of physical violence or harassment or any act tending to degrade the dignity of a domestic worker.

Section 6. Board, Lodging and Medical Attendance. – The employer shall provide for the basic necessities of the domestic worker to include at least three (3) adequate meals a day and humane sleeping arrangements that ensure safety.

The employer shall provide appropriate rest and assistance to the domestic worker in case of illnesses and injuries sustained during service without loss of benefits.

At no instance shall the employer withdraw or hold in abeyance the provision of these basic necessities as punishment or disciplinary action to the domestic worker.

Section 7. Guarantee of Privacy. – Respect for the privacy of the domestic worker shall be guaranteed at all times and shall extend to all forms of communication and personal effects. This guarantee equally recognizes that the domestic worker is obliged to render satisfactory service at all times.

Section 8. Access to Outside Communication. – The employer shall grant the domestic worker access to outside communication during free time: Provided, That in case of emergency, access to communication shall be granted even during work time. Should the domestic worker make use of the employer’s telephone or other communication facilities, the costs shall be borne by the domestic worker, unless such charges are waived by the employer.

Section 9. Right to Education and Training. – The employer shall afford the domestic worker the opportunity to finish basic education and may allow access to alternative learning systems and, as far as practicable, higher education or technical and vocational training. The employer shall adjust the work schedule of the domestic worker to allow such access to education or training without hampering the services required by the employer.

Section 10. Prohibition Against Privileged Information. – All communication and information pertaining to the employer or members of the household shall be treated as privileged and confidential, and shall not be publicly disclosed by the domestic worker during and after employment. Such privileged information shall be inadmissible in evidence except when the suit involves the employer or any member of the household in a crime against persons, property, personal liberty and security, and chastity.

ARTICLE III PRE-EMPLOYMENT

Section 11. Employment Contract. – An employment contract shall be executed by and between the domestic worker and the employer before the commencement of the service in a language or dialect understood by both the domestic worker and the employer. The domestic worker shall be provided a copy of the duly signed employment contract which must include the following:

(a) Duties and responsibilities of the domestic worker;

(b) Period of employment;

(c) Compensation;

(d) Authorized deductions;

(e) Hours of work and proportionate additional payment;

(f) Rest days and allowable leaves;

(g) Board, lodging and medical attention;

(h) Agreements on deployment expenses, if any;

(i) Loan agreement;

(j) Termination of employment; and

(k) Any other lawful condition agreed upon by both parties.

The Department of Labor and Employment (DOLE) shall develop a model employment contract for domestic workers which shall, at all times, be made available free of charge to domestic workers, employers, representative organizations and the general public. The DOLE shall widely disseminate information to domestic workers and employers on the use of such model employment contract.

In cases where the employment of the domestic worker is facilitated through a private employment agency, the PEA shall keep a copy of all employment contracts of domestic workers and shall be made available for verification and inspection by the DOLE.

Section 12. Pre-Employment Requirement. – Prior to the execution of the employment contract, the employer may require the following from the domestic worker:

(a) Medical certificate or a health certificate issued by a local government health officer;

(b) Barangay and police clearance;

(c) National Bureau of Investigation (NBI) clearance; and

(d) Duly authenticated birth certificate or if not available, any other document showing the age of the domestic worker such as voter’s identification card, baptismal record or passport.

However, Section 12(a), (b), (c) and (d) shall be standard requirements when the employment of the domestic worker is facilitated through the PEA.

The cost of the foregoing shall be borne by the prospective employer or agency, as the case may be.

Section 13. Recruitment and Finder’s Fees. – Regardless of whether the domestic worker was hired through a private employment agency or a third party, no share in the recruitment or finder’s fees shall be charged against the domestic worker by the said private employment agency or third party.

Section 14. Deposits for Loss or Damage. – It shall be unlawful for the employer or any other person to require a domestic worker to make deposits from which deductions shall be made for the reimbursement of loss or damage to tools, materials, furniture and equipment in the household.

Section 15. Prohibition on Debt Bondage. – It shall be unlawful for the employer or any person acting on behalf of the employer to place the domestic worker under debt bondage.

Section 16. Employment Age of Domestic Workers. – It shall be unlawful to employ any person below fifteen (15) years of age as a domestic worker. Employment of working children, as defined under this Act, shall be subject to the provisions of Section 10(A), paragraph 2 of Section 12-A, paragraph 4 of Section 12-D, and Section 13 of Republic Act No. 7610, as amended, otherwise known as the "Special Protection of Children Against Child Abuse, Exploitation and Discrimination Act".

Working children shall be entitled to minimum wage, and all benefits provided under this Act.

Any employer who has been sentenced by a court of law of any offense against a working child under this Act shall be meted out with a penalty one degree higher and shall be prohibited from hiring a working child.

Section 17. Employer’s Reportorial Duties. – The employers shall register all domestic workers under their employment in the Registry of Domestic Workers in the barangay where the employer’s residence is located. The Department of the Interior and Local Government (DILG) shall, in coordination with the DOLE, formulate a registration system for this purpose.

Section 18. Skills Training, Assessment and Certification. – To ensure productivity and assure quality services, the DOLE, through the Technical Education and Skills Development Authority (TESDA), shall facilitate access of domestic workers to efficient training, assessment and certification based on a duly promulgated training regulation.

ARTICLE IV EMPLOYMENT – TERMS AND CONDITIONS

Section 19. Health and Safety. – The employer shall safeguard the health and safety of the domestic worker in accordance with laws, rules and regulations, with due consideration of the peculiar nature of domestic work.

Section 20. Daily Rest Period. – The domestic worker shall be entitled to an aggregate daily rest period of eight (8) hours per day.

Section 21. Weekly Rest Period. – The domestic worker shall be entitled to at least twenty-four (24) consecutive hours of rest in a week. The employer and the domestic worker shall agree in writing on the schedule of the weekly rest day of the domestic worker: Provided, That the employer shall respect the preference of the domestic worker as to the weekly rest day when such preference is based on religious grounds. Nothing in this provision shall deprive the domestic worker and the employer from agreeing to the following:

(a) Offsetting a day of absence with a particular rest day;

(b) Waiving a particular rest day in return for an equivalent daily rate of pay;

(c) Accumulating rest days not exceeding five (5) days; or

(d) Other similar arrangements.

Section 22. Assignment to Nonhousehold Work. – No domestic worker shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage rate lower than that provided for agricultural or nonagricultural workers. In such cases, the domestic worker shall be paid the applicable minimum wage.

Section 23. Extent of Duty. – The domestic worker and the employer may mutually agree for the former to temporarily perform a task that is outside the latter’s household for the benefit of another household. However, any liability that will be incurred by the domestic worker on account of such arrangement shall be borne by the original employer. In addition, such work performed outside the household shall entitle the domestic worker to an additional payment of not less than the existing minimum wage rate of a domestic worker. It shall be unlawful for the original employer to charge any amount from the said household where the service of the domestic worker was temporarily performed.

Section 24. Minimum Wage. – The minimum wage of domestic workers shall not be less than the following:

(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National Capital Region (NCR);

(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first class municipalities; and

(c) One thousand five hundred pesos (P1,500.00) a month for those employed mother municipalities.

After one (1) year from the effectivity of this Act, and periodically thereafter, the Regional Tripartite and Productivity Wage Boards (RTPWBs) shall review, and if proper, determine and adjust the minimum wage rates of domestic workers.

Section 25. Payment of Wages. – Payment of wages shall be made on time directly to the domestic worker to whom they are due in cash at least once a month. The employer, unless allowed by the domestic worker through a written consent, shall make no deductions from the wages other than that which is mandated by law. No employer shall pay the wages of a domestic worker by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than the cash wage as provided for under this Act.

The domestic worker is entitled to a thirteenth month pay as provided for by law.

Section 26. Pay Slip. – The employer shall at all times provide the domestic worker with a copy of the pay slip containing the amount paid in cash every pay day, and indicating all deductions made, if any. The copies of the pay slip shall be kept by the employer for a period of three (3) years.

Section 27. Prohibition on Interference in the Disposal of Wages. – It shall be unlawful for the employer to interfere with the freedom of any domestic worker to dispose of the latter’s wages. The employer shall not force, compel or oblige the domestic worker to purchase merchandise, commodities or other properties from the employer or from any other person, or otherwise make use of any store or services of such employer or any other person.

Section 28. Prohibition Against Withholding of Wages. – It shall be unlawful for an employer, directly or indirectly, to withhold the wages of the domestic worker. If the domestic worker leaves without any justifiable reason, any unpaid salary for a period not exceeding fifteen (15) days shall be forfeited. Likewise, the employer shall not induce the domestic worker to give up any part of the wages by force, stealth, intimidation, threat or by any other means whatsoever.

Section 29. Leave Benefits. – A domestic worker who has rendered at least one (1) year of service shall be entitled to an annual service incentive leave of five (5) days with pay: Provided, That any unused portion of said annual leave shall not be cumulative or carried over to the succeeding years. Unused leaves shall not be convertible to cash.

Section 30. Social and Other Benefits. – A domestic worker who has rendered at least one (1) month of service shall be covered by the Social Security System (SSS), the Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund or Pag-IBIG, and shall be entitled to all the benefits in accordance with the pertinent provisions provided by law.

Premium payments or contributions shall be shouldered by the employer. However, if the domestic worker is receiving a wage of Five thousand pesos (P5,000.00) and above per month, the domestic worker shall pay the proportionate share in the premium payments or contributions, as provided by law.

The domestic worker shall be entitled to all other benefits under existing laws.

Section 31. Rescue and Rehabilitation of Abused Domestic Workers. – Any abused or exploited domestic worker shall be immediately rescued by a municipal or city social welfare officer or a social welfare officer from the Department of Social Welfare and Development (DSWD) in coordination with the concerned barangay officials. The DSWD and the DILG shall develop a standard operating procedure for the rescue and rehabilitation of abused domestic workers, and in coordination with the DOLE, for possible subsequent job placement.

ARTICLE V POST EMPLOYMENT

Section 32. Termination of Service. – Neither the domestic worker nor the employer may terminate the contract before the expiration of the term except for grounds provided for in Sections 33 and 34 of this Act. If the domestic worker is unjustly dismissed, the domestic worker shall be paid the compensation already earned plus the equivalent of fifteen (15) days work by way of indemnity. If the domestic worker leaves without justifiable reason, any unpaid salary due not exceeding the equivalent fifteen (15) days work shall be forfeited. In addition, the employer may recover from the domestic worker costs incurred related to the deployment expenses, if any: Provided, That the service has been terminated within six (6) months from the domestic worker’s employment.

If the duration of the domestic service is not determined either in stipulation or by the nature of the service, the employer or the domestic worker may give notice to end the working relationship five (5) days before the intended termination of the service.

The domestic worker and the employer may mutually agree upon written notice to pre-terminate the contract of employment to end the employment relationship.

Section 33. Termination Initiated by the Domestic Worker. – The domestic worker may terminate the employment relationship at any time before the expiration of the contract for any of the following causes:

(a) Verbal or emotional abuse of the domestic worker by the employer or any member of the household;

(b) Inhuman treatment including physical abuse of the domestic worker by the employer or any member of the household;

(c) Commission of a crime or offense against the domestic worker by the employer or any member of the household;

(d) Violation by the employer of the terms and conditions of the employment contract and other standards set forth under this law;

(e) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the household; and

(f) Other causes analogous to the foregoing.

Section 34. Termination Initiated by the Employer. – An employer may terminate the services of the domestic worker at any time before the expiration of the contract, for any of the following causes:

(a) Misconduct or willful disobedience by the domestic worker of the lawful order of the employer in connection with the former’s work;

(b) Gross or habitual neglect or inefficiency by the domestic worker in the performance of duties;

(c) Fraud or willful breach of the trust reposed by the employer on the domestic worker;

(d) Commission of a crime or offense by the domestic worker against the person of the employer or any immediate member of the employer’s family;

(e) Violation by the domestic worker of the terms and conditions of the employment contract and other standards set forth under this law;

(f) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the household; and

(g) Other causes analogous to the foregoing.

Section 35. Employment Certification. – Upon the severance of the employment relationship, the employer shall issue the domestic worker within five (5) days from request a certificate of employment indicating the nature, duration of the service and work performance.

ARTICLE VI PRIVATE EMPLOYMENT AGENCIES

Section 36. Regulation of Private Employment Agencies (PEAs). – The DOLE shall, through a system of licensing and regulation, ensure the protection of domestic workers hired through the PEAs.

The PEA shall be jointly and severally liable with the employer for all the wages, wage-related benefits, and other benefits due a domestic worker.

The provision of Presidential Decree No. 442, as amended, otherwise known as the "Labor Code of the Philippines", on qualifications of the PEAs with regard to nationality, net worth, owners and officers, office space and other requirements, as well as non-transferability of license and commission of prohibited practices, shall apply.

In addition, PEAs shall have the following responsibilities:

(a) Ensure that domestic workers are not charged or levied any recruitment or placement fees;

(b) Ensure that the employment agreement between the domestic worker and the employer stipulates the terms and conditions of employment and all the benefits prescribed by this Act;

(c) Provide a pre-employment orientation briefing to the domestic worker and the employer about their rights and responsibilities in accordance with this Act;

(d) Keep copies of employment contracts and agreements pertaining to recruited domestic workers which shall be made available during inspections or whenever required by the DOLE or local government officials;

(e) Assist domestic workers with respect to complaints or grievances against their employers; and

(f) Cooperate with government agencies in rescue operations involving abused or exploited domestic workers.

ARTICLE VII SETTLEMENT OF DISPUTES

Section 37. Mechanism for Settlement of Disputes. – All labor-related disputes shall be elevated to the DOLE Regional Office having jurisdiction over the workplace without prejudice to the filing of a civil or criminal action in appropriate cases. The DOLE Regional Office shall exhaust all conciliation and mediation efforts before a decision shall be rendered.

Ordinary crimes or offenses committed under the Revised Penal Code and other special penal laws by either party shall be filed with the regular courts.

ARTICLE VIII SPECIAL PROVISIONS

Section 38. Information Program. – The DOLE shall, in coordination with the DILG, the SSS, the PhilHealth and Pag-IBIG develop and implement a continuous information dissemination program on the provisions of this Act, both at the national and local level, immediately after the enactment of this law.

Section 39. "Araw Ng Mga Kasambahay". – The date upon which the President shall approve this "Domestic Workers Act" shall be designated as the "Araw ng mga Kasambahay".

ARTICLE IX PENAL AND MISCELLANEOUS PROVISIONS

Section 40. Penalty. – Any violation of the provisions of this Act declared unlawful shall be punishable with a fine of not less than Ten thousand pesos (P10,000.00) but not more than Forty thousand pesos (P40,000.00) without prejudice to the filing of appropriate civil or criminal action by the aggrieved party.

Section 41. Transitory Provision; Non-Diminution of Benefits. – All existing arrangements between a domestic worker and the employer shall be adjusted to conform to the minimum standards set by this Act within a period of sixty (60) days after the effectivity of this Act: Provided, That adjustments pertaining to wages shall take effect immediately after the determination and issuance of the appropriate wage order by the RTWPBs: Provided, further, That nothing in this Act shall be construed to cause the diminution or substitution of any benefits and privileges currently enjoyed by the domestic worker hired directly or through an agency.

Section 42. Implementing Rules and Regulations. – Within ninety (90) days from the effectivity of this Act, the Secretary of Labor and Employment, the Secretary of Social Welfare and Development, the Secretary of the Interior and Local Government, and the Director General of the Philippine National Police, in coordination with other concerned government agencies and accredited non-government organizations (NGOs) assisting domestic workers, shall promulgate the necessary rules and regulations for the effective implementation of this Act.

ARTICLE X FINAL PROVISIONS

Section 43. Separability Clause. – If any provision or part of this Act is declared invalid or unconstitutional, the remaining parts or provisions not affected shall remain in full force and effect.

Section 44. Repealing Clause. – All articles or provisions of Chapter III (Employment of Househelpers) of Presidential Decree No. 442, as amended and renumbered by Republic Act No. 10151 are hereby expressly repealed. All laws, decrees, executive orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 45. Effectivity Clause. – This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least two (2) national newspapers of general circulation.

April 10, 2019

AN ACT WAIVING GOVERNMENT FEES AND CHARGES IN THE ISSUANCE OF DOCUMENTS REQUIRED IN THE APPLICATION FOR EMPLOYMENT OF FIRST TIME JOBSEEKERS

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

SECTION 1. Short Title. - This Act shall be known as the "First Time Jobseekers Assistance Act" .

SEC. 2. Declaration of Policy. - It is the policy of the State to promote full employment and equality of gainful work and opportunities for its citizens. As such, the State shall expand accessibility to government services and provide incentives to improve a first time jobseeker's access to employment.

SEC. 3. Waiver of Fees and Charges. - Subject to exceptions provided in Section 8 of this Act, all government agencies and instrumentalities, including government-owned and controlled corporations (GOCCs), local government units (LGUs), and government hospitals shall not collect fees or charges from a first time jobseeker: Provided, That such fee or charge is paid in connection with the application for and the granting of licenses, proofs of identification, clearances, certificates or other documents usually required in the course of employment locally or abroad: Provided, further, That the benefit provided under this Act shall only be availed of once.

SEC. 4. Covered Government Transactions. - No fees and other charges shall be collected from the first time jobseekers when obtaining the following, subject to the requirement in Section 5:

(a) Police clearance certificate;

(b) National Bureau of Investigation clearance;

(c) Barangay clearance;

(d) Medical certificate from a public hospital, provided that fees and charges collected for laboratory tests and other medical procedures required for the grant of a medical certificate shall not be free of charge;

(e) Birth certificate;

(f) Marriage certificate;

(g) Transcript of academic records issued by state colleges and universities;

(h) Tax Identification Number (TIN);

(i) Unified Multi-Purpose ID (UMID) card; and

(j) Other documentary requirements issued by the government that may be required by employers from job applicants.

SEC. 5. Proof of Eligibility. - First time jobseekers availing of the benefits provided under this Act shall present a barangay certification stating that the applicant is a first time jobseeker: Provided, That any person found guilty of fabrication or falsification shall be liable under the Revised Penal Code.

SEC. 6. Database Management. - The concerned government agencies shall maintain and update a roster of all individuals who have been issued documents under this Act. This roster shall be regularly submitted to the Department of Information and Communications Technology (DICT) which shall compile a database of all beneficiaries of this Act to be made accessible to all relevant agencies.

SEC. 7. One Stop Shop. - The Public Employment Service Office or PESO in different provinces, cities and municipalities shall assist first time jobseekers in securing required pre-employment documents from relevant government agencies.

SEC. 8. Exceptions. - The waiver of fees and charges provided under this Act shall not include those collected in connection with an application to take a professional licensure examination conducted by the Professional Regulation Commission, application for a Philippine passport authentication and red ribbon of documents from the Department of Foreign Affairs, application for a Career Service Examination with the Civil Service Commission (CSC), and application for a driver's license from the Land Transportation Office.

SEC. 9. Non-Authority to Charge Fees. - This Act shall not be construed as an implied authority for all government agencies to impose or collect charges and fees in relation to the discharge of their functions if no such authority is already granted under their respective charters or other relevant laws.

SEC. 10. Exclusion of Jobstart Program Applicants as Beneficiaries. - The beneficiaries of the Jobstart Program under Republic Act No. 10869 and other laws that give similar exemptions for the documents or transactions enumerated herein shall not be qualified to avail of the benefits of this Act.

SEC. 11. Interpretation in Favor of the Applicant. - In all cases, any ambiguity in the interpretation of the provisions of this Act shall be in favor of the applicant.

No government agency or instrumentality shall issue unduly restrictive regulations which will render nugatory the benefits provided under this Act. Such shall constitute an administrative offense punishable under the Administrative Code and other pertinent laws.

SEC. 12. Interagency Monitoring Committee. - An interagency committee is hereby created with the Secretary of the Department of Labor and Employment, as chairperson, and as members, the heads of the CSC, the DICT, the Department of Finance, the Department of Education, the Commission on Higher Education, the National Youth Commission, the Technical Education and Skills Development Authority and other departments the participation of which the committee may deem necessary.

The committee shall monitor the compliance of the concerned government agencies and instrumentalities, and may recommend to the proper authorities the filing of an administrative complaint against any person who refuses to comply with the provisions of this Act.

SEC. 13. Implementing Rules and Regulations. - Within sixty (60) days from the effectivity of this Act, the Secretary of Labor and Employment shall, in consultation with the DICT and other concerned agencies, issue the appropriate implementing rules and regulations to effectively implement the provisions of this Act.

SEC. 14. Separability Clause. - If any provision of this Act is declared unconstitutional or otherwise invalid, the validity of the other provisions shall not be affected thereby.

SEC. 15. Repealing Clause. - All laws, decrees, orders, ordinances, rules and regulations or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 16. This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

February 20, 2019

An Act Increasing the Maternity Leave Period to One Hundred Five (105) Days for Female Workers With an Option to Extend for an Additional Thirty (30) Days Without Pay, and Granting an Additional Fifteen (15) Days for Solo Mothers, and for Other Purposes

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Short Title. - This Act shall be known and cited as the "105-Day Expanded Maternity Leave Law".

Section 2. Declaration of Policy. — It is the declared policy of the State under Article XIII, Section 14 of the 1987 Constitution to protect and promote the rights and welfare of working women, taking into account their maternal functions, and to provide an enabling environment in which their full potential can be achieved.

Article II, State Policies, Section 12 of the 1987 Constitution provides that the State recognizes the sanctity of family life and shall protect and strengthen the family as the basic autonomous social institution and that it shall equally protect the life of the mother and the life of the unborn from conception. Moreover, Sections 17 and 22 of Republic Act No. 9710, otherwise known as "The Magna Carta of Women", provides for women’s rights to health and decent work.

To achieve these, and in recognition of women’s maternal function as a social responsibility, the State shall institutionalize a mechanism to expand the maternity leave period of women workers. This will provide them with ample transition time to regain health and overall wellness as well as to assume maternal roles before resuming paid work. This Act is consistent with local and international legal instruments that protect and promote the rights of women.

Section 3. Grant of Maternity Leave.— All covered female workers in government and the private sector, including those in the informal economy, regardless of civil status or the legitimacy of her child, shall be granted one hundred five (105) days maternity leave with full pay and an option to extend for an additional thirty (30) days without pay: Provided, That in case the worker qualifies as a solo parent under Republic Act No. 8972, or the "Solo Parents’ Welfare Act", the worker shall be granted an additional fifteen (15) days maternity leave with full pay.

Enjoyment of maternity leave cannot be deferred but should be availed of either before or after the actual period of delivery in a continuous and uninterrupted manner, not exceeding one hundred five (105) days, as the case may be.

Maternity leave shall be granted to female workers in every instance of pregnancy, miscarriage or emergency termination of pregnancy, regardless of frequency: Provided, That for cases of miscarriage or emergency termination of pregnancy, sixty (60) days maternity leave with full pay shall be granted.

Section 4. Maternity Leave for Female Workers in the Public Sector.— Any pregnant female worker in the government service, regardless of employment status, in National Government Agencies (NGAs), Local Government Units (LGUs), Government-Owned or -Controlled Corporations (GOCCs), or State Universities and Colleges (SUCs), shall be granted a maternity leave of one hundred five (105) days with full pay regardless if the delivery was normal or caesarian: Provided, That, in case the employee qualifies as a solo parent under Republic Act No. 8972, or the "Solo Parents’ Welfare Act", the employee shall be paid an additional maternity benefit of fifteen (15) days. An additional maternity leave of thirty (30) days, without pay, can be availed of, at the option of the female worker: Provided, further, That, the head of the agency shall be given due notice, in writing, at least forty-five (45) days before the end of her maternity leave: Provided, finally, That no prior notice shall be necessary in the event of a medical emergency but subsequent notice shall be given to the head of the agency.

Maternity leave of sixty (60) days, with full pay, shall be granted for miscarriage or emergency termination of pregnancy.

Section 5. Maternity Leave for Female Workers in the Private Sector.— Any pregnant female worker in the private sector shall be granted a maternity leave of one hundred five (105) days with full pay, regardless of whether she gave birth via caesarian section or natural delivery, while maternity leave of sixty (60) days with full pay shall be granted for miscarriage or emergency termination of pregnancy.

(a) A female Social Security System (SSS) member who has paid at least three (3) monthly contributions in the twelve (12)-month period immediately preceding the semester of her childbirth, miscarriage, or emergency termination of pregnancy shall be paid her daily maternity benefit which shall be computed based on her average monthly salary credit for one hundred five (105) days, regardless of whether she gave birth via caesarian section or natural delivery, subject to the following conditions:

(1) That the female worker shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide;

(2) That the full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application;

(3) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided under Republic Act No. 1161, as amended, for the same period for which daily maternity benefits have been received;

(4) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity benefits advanced to the female worker by the employer upon receipt of satisfactory and legal proof of such payment; and

(5) That if a female worker should give birth or suffer a miscarriage or emergency termination of pregnancy without the required contributions having been remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said female member would otherwise have been entitled to.

In case the employee qualifies as a solo parent under Republic Act No. 8972, or the "Solo Parents’ Welfare Act", the employee shall be paid an additional maternity benefit of fifteen (15) days.

(b) An additional maternity leave of thirty (30) days, without pay, can be availed of, at the option of the female worker: Provided, That the employer shall be given due notice, in writing, at least forty-five (45) days before the end of her maternity leave: Provided, further, That no prior notice shall be necessary in the event of a medical emergency but subsequent notice shall be given to the head of the agency.

(c) Workers availing of the maternity leave period and benefits must receive their full pay. Employers from the private sector shall be responsible for payment of the salary differential between the actual cash benefits received from the SSS by the covered female workers and their average weekly or regular wages, for the entire duration of the maternity leave, with the following exceptions, subject to the guidelines to be issued by the Department of Labor and Employment (DOLE):

(1) Those operating distressed establishments;

(2) Those retail/service establishments and other enterprises employing not more than ten (10) workers;

(3) Those considered as micro-business enterprises and engaged in the production, processing, or manufacturing of products or commodities including agro-processing, trading, and services, whose total assets are not more than Three million pesos (₱3,000,000.00); and

(4) Those who are already providing similar or more than the benefits herein provided.

Provided, That said exemptions shall be subject to an annual submission of a justification by the employer claiming exemption for the approval of the DOLE.

Section 6. Allocation of Maternity Leave Credits.— Any female worker entitled to maternity leave benefits as provided for herein may, at her option, allocate up to seven (7) days of said benefits to the child’s father, whether or not the same is married to the female worker: Provided, That in the death, absence, or incapacity of the former, the benefit may be allocated to an alternate caregiver who may be a relative within the fourth degree of consanguinity or the current partner of the female worker sharing the same household, upon the election of the mother taking into account the best interests of the child: Provided, further, That written notice thereof is provided to the employers of the female worker and alternate caregiver: Provided, furthermore, That this benefit is over and above that which is provided under Republic Act No. 8187, or the "Paternity Leave Act of 1996": Provided, finally, That in the event the beneficiary female worker dies or is permanently incapacitated, the balance of her maternity leave benefits shall accrue to the father of the child or to a qualified caregiver as provided above.

Section 7. Maternity Leave for Women Regardless of Civil Status.— All female workers in the government and female members of the SSS, regardless of their civil status, shall be granted maternity leave, with full pay, upon compliance with the preceding section.

Section 8. Maternity Leave With Pay in Case of Childbirth, Miscarriage, or Emergency Termination of Pregnancy After the Termination of an Employee’s Service.— Maternity leave with full pay shall be granted even if the childbirth, miscarriage, or emergency termination of pregnancy occurs not more than fifteen (15) calendar days after the termination of an employee’s service, as her right thereto has already accrued: Provided, That such period is not applicable when the employment of the pregnant woman worker has been terminated without just cause, in which case the employer will pay her the full amount equivalent to her salary for one hundred five (105) days for childbirth and sixty (60) days for miscarriage or emergency termination of pregnancy based on her full pay, in addition to the other applicable daily cash maternity benefits that she should have received had her employment not been illegally terminated.

Section 9. Maternity Leave Credits.— The maternity leave can be credited as combinations of prenatal and postnatal leave as long as it does not exceed one hundred five (105) days and provided that compulsory postnatal leave shall not be less than sixty (60) days.

Section 10. Maternity Leave Benefits for Women in the Informal Economy and Voluntary Contributors to the SSS.— Maternity benefits shall cover all married and unmarried women, including female workers in the informal economy.

Female workers in the informal economy are entitled to maternity leave benefits if they have remitted to the SSS at least three (3) monthly contributions in the .twelve (12)-month period immediately preceding the semester of her childbirth, miscarriage, or emergency termination of pregnancy.

Section 11. Maternity Benefits for Female Workers Who are Non-Members of the SSS.— Female workers who are neither voluntary nor regular members of the SSS shall be governed by the Philippine Health Insurance Corporation (PhilHealth) Circular No. 022-2014 or the "Social Health Insurance Coverage and Benefits for Women About to Give Birth".

Section 12. Maternity Leave of a Female Worker With Pending Administrative Case. — The maternity leave benefits granted under this Act shall be enjoyed by a female worker in the government service and in the private sector even if she has a pending administrative case.

Section 13. Maternity Leave for Female National Athletes.— In the event a national athlete becomes pregnant, she will be referred to the team physician or an accredited physician of the Philippine Sports Commission (PSC) or an obstetrician-gynecologist to determine her fitness to continue training. She will be allowed to participate in all team-related activities, unless the physician advises that participation is not medically safe or should be limited. Upon medical advice, she shall go on maternity leave until cleared to return to training. She shall continue receiving her allowance and be entitled to the same benefits while on maternity leave prior to childbirth and up to six (6) months after, unless she can resume sooner as advised by her physician, in which case, she will be entitled to the allowance and benefits she had prior to pregnancy: Provided, That a female national athlete employed in the public sector shall not receive double compensation or benefits.

Section 14. Non-Diminution of Benefits. - Nothing in this Act shall be construed as to diminish existing maternity benefits currently enjoyed whether or not these are granted under collective bargaining agreements (CBA) or present laws, if the same are more beneficial to the female worker. Any other working arrangement which the female worker shall agree to, during the additional maternity leave period, shall be allowed: Provided, That this shall be consented to in writing by the female worker and shall primarily uphold her maternal functions and the requirements of postnatal care.

Section 15. Security of Tenure. - Those who avail of the benefits of this Act, whether in the government service or private sector, shall be assured of security of tenure. As such, the exercise of this option by them shall not be used as basis for demotion in employment or termination. The transfer to a parallel position or reassignment from one organizational unit to another in the same agency or private enterprise shall be allowed: Provided, That it shall not involve a reduction in rank, status, salary, or otherwise amount to constructive dismissal.

Section 16. Non-Discrimination. - No employer whether in the public or private sector shall discriminate against the employment of women in order to avoid the benefits provided for in this Act.

Section 17. Periodic Review. - The Civil Service Commission (CSC), the DOLE, the SSS, and the Gender Ombud of the Commission on Human Rights (CHR), in consultation with trade unions, labor organizations, and employers’ representatives shall within one (1) month after the effectivity of this Act conduct a review of the maternity leave benefits of female workers in the government service and the private sector, respectively. Thereafter, they shall include maternity leave benefits in their valuation report conducted every four (4) years for the SSS and the DOLE and every three (3) years for the CSC, or more frequently as may be necessary, with the end in view of meeting the needs of pregnant women and newly-born infants, and improving their welfare.

Section 18. Penalties. - Whoever fails or refuses to comply with the provisions of this Act shall be punished by a fine of not less than Twenty thousand pesos (₱20,000.00) nor more than Two hundred thousand pesos (₱200,000.00), and imprisonment of not less than six (6) years and one (1) day nor more than twelve (12) years or both. If the act or omission penalized by this Act shall be committed by an association, partnership, corporation, or any other institution, its managing head, directors, or partners shall be liable to the penalties provided in this Act for the offense.

Failure on the part of any association, partnership, corporation, or private enterprise to comply with the provisions of this Act shall be a ground for non-renewal of business permits.

Section 19. Implementing Rules and Regulations. - The CSC, the DOLE, and the SSS shall issue the necessary rules and regulations for the effective implementation of this Act within sixty (60) days from the effectivity of the same.

Section 20. Separability Clause. - If any provision of this Act is declared unconstitutional or otherwise invalid, the validity of the other provisions shall not be affected thereby.

Section 21. Repealing Clause. - All laws, decrees, orders, rules and regulations or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

Section 22. Effectivity. - This Act shall take effect after fifteen (15) days from its publication in the Official Gazette or in a newspaper of general circulation.

(g) The percentage degree of disability which is equivalent to the ratio that the designated number of months of compensability bears to seventy-five (75), rounded to the next higher integer, shall not be additive for distinct, separate and unrelated permanent partial disabilities, but shall be additive for deteriorating and related permanent partial disabilities, to a maximum of one hundred percent (100%), in which case, the member shall be deemed as permanently totally disabled.

(h) In case of permanent partial disability, the monthly pension benefit shall be given in lump sum if it is payable for less than twelve (12) months.

(i) For the purpose of adjudicating retirement, death and permanent total disability pension benefits, contributions shall be deemed paid for the months during which the member received partial disability pension: Provided, That such contributions shall be based on his last contribution prior to his disability.

(j) Should a member who is on partial disability pension retire or die, his disability pension shall cease upon his retirement or death.

Section 13-B. Funeral Benefit. - A funeral grant equivalent to Twelve thousand pesos (₱12,000.00) shall be paid, in cash or in kind, to help defray the cost of funeral expenses upon the death of a member, including permanently totally disabled member or retiree.

Section 14. Sickness Benefit. - (a) A member who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of sickness or injury and is confined therefor for more than three (3) days in a hospital or elsewhere with the approval of the SSS, shall, for each day of compensable confinement or a fraction thereof, be paid by his employer, or the SSS, if such person is unemployed or self-employed, a daily sickness benefit equivalent to ninety percent (90%) of his average daily salary credit, subject to the following conditions:

(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar year, nor shall any unused portion of the one hundred twenty (120) days of sickness benefit granted under this section be carried forward and added to the total number of compensable days allowable in the subsequent year;

(2) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account of the same confinement; and

(3) The employee member shall notify his employer of the fact of his sickness or injury within five (5) calendar days after the start of his confinement unless such confinement is in a hospital or the employee became sick or was injured while working or within the premises of the employer in which case, notification to the employer is not necessary: Provided, That if the member is unemployed or self-employed, he shall directly notify the SSS of his confinement within five (5) calendar days after the start thereof unless such confinement is in a hospital in which case notification is also not necessary: Provided, further, That in cases where notification is necessary, the confinement shall be deemed to have started not earlier than the fifth day immediately preceding the date of notification.

(b) The compensable confinement shall begin on the first day of sickness, and the payment of such allowances shall be promptly made by the employer every regular payday or on the fifteenth and last day of each month, and similarly in the case of direct payment by the SSS, for as long as such allowances are due and payable: Provided, That such allowance shall begin only after all sick leaves of absence with full pay to the credit of the employee member shall have been exhausted.

(c) One hundred percent (100%) of the daily benefits provided in the preceding paragraph shall be reimbursed by the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided, That the employer has notified the SSS of the confinement within five (5) calendar days after receipt of the notification from the employee member: Provided, further, That if the notification to the SSS is made by the employer beyond five (5) calendar days after receipt of the notification from the employee member, said employer shall be reimbursed only for each day of confinement starting from the tenth calendar day immediately preceding the date of notification to the SSS: Provided, finally, That the SSS shall reimburse the employer or pay the unemployed member only for confinement within the one-year period immediately preceding the date the claim for benefit or reimbursement is received by the SSS, except confinement in a hospital in which case the claim for benefit or reimbursement must be filed within one (1) year from the last day of confinement.

(d) Where the employee member has given the required notification but the employer fails to notify the SSS of the confinement or to file the claim for reimbursement within the period prescribed in this section resulting in the reduction of the benefit or denial of the claim, such employer shall have no right to recover the corresponding daily allowance he advanced to the employee member as required in this section.

(e) The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) months from receipt thereof: Provided, That should no payment be received by the employer within one (1) month after the period prescribed herein for adjudication, the reimbursement shall thereafter earn simple interest of one percent (1%) per month until paid.

(f) The provisions regarding the notification required of the member and the employer as well as the period within which the claim for benefit or reimbursement may be filed shall apply to all claims filed with the SSS.

Section 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3) monthly contributions in the twelve-month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent (100%) of her average daily salary credit for sixty (60) days or seventy-eight (78) days in case of caesarian delivery, subject to the following conditions:

(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth, which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide;

(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave application;

(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act for the same period for which daily maternity benefits have been received;

(d) That the maternity benefits provided under this section shall be paid only for the first four (4) deliveries or miscarriages;

(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and legality thereof; and

(f) That if an employee member should give birth or suffer miscarriage without the required contributions having been remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said employee member would otherwise have been entitled to.

Section 14-B. Unemployment. Insurance or Involuntary Separation Benefits. - A member who is not over sixty (60) years of age who has paid at least thirty-six (36) months contributions twelve (12) months of which should be in the eighteen-month period immediately preceding the involuntary unemployment or separation shall be paid benefits in the form of monthly cash payments equivalent to fifty percent (50%) of the average monthly salary credit for a maximum of two (2) months: Provided, That an employee who is involuntarily unemployed can only claim unemployment benefits once every three (3) years: Provided, further, That in case of concurrence of two or more compensable contingencies, only the highest benefit shall be paid, subject to the rules and regulations that the Commission may prescribe.

Section 15. Non-Transferability of Benefits. - The SSS shall promptly pay the benefits provided in this Act to such persons as may be entitled thereto in accordance with the provisions of this Act: Provided, That the SSS shall pay the retirement benefits on the day of contingency to qualified members who have submitted the necessary documents at least six (6) months before: Provided, further, That the beneficiary who is a national of a foreign country which does not extend benefits to a Filipino beneficiary residing in the Philippines, or which is not recognized by the Philippines, shall not be entitled to receive any benefit under this Act: Provided, further, That notwithstanding the foregoing, where the best interest of the SSS will be served, the Commission may direct payments without regard to nationality or country of residence: Provided, further, That if the recipient is a minor or a person incapable of administering his own affairs, the Commission shall appoint a representative under such terms and conditions as it may deem proper: Provided, further, That such appointment shall not be necessary in case the recipient is under the custody of or living with the parents or spouse of the member in which case the benefits shall be paid to such parents or spouse, as representative payee of the recipient. Such benefits are not transferable and no power of attorney or other document executed by those entitled thereto in favor of any agent, attorney or any other person for the collection thereof on their behalf shall be recognized, except when they are physically unable to collect personally such benefits: Provided, further That in case of death benefits, if no beneficiary qualifies under this Act, said benefits shall be paid to the legal heirs in accordance with the law of succession.

Section 16. Exemption from Tax, Legal Process and Lien. - All laws to the contrary notwithstanding, the SSS and all its assets and properties, all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty; and all benefit payments made by the SSS shall likewise be exempt from all kinds of taxes, fees or charges, and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or equitable process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the member to the SSS. No tax measure of whatever nature enacted shall apply to the SSS, unless it expressly revokes the declared policy of the State in Section 2 hereof granting tax-exemption to the SSS. Any tax assessment imposed against the SSS shall be null and void.

Section 17. Fee of Agents, Attorneys, Etc. - No agent, attorney or other person in charge of the preparation, filing or pursuing any claim for benefit under this Act shall demand or charge for his services any fee, and any stipulation to the contrary shall be null and void. The retention or deduction of any amount from any benefit granted under this Act for the payment of fees for such services is prohibited: Provided, however, That any member of the Philippine Bar who appears as counsel in any case heard by the Commission shall be entitled to attorney‘s fees not exceeding ten percent (10%) of the benefits awarded by the Commission, which fees shall not be payable before the actual payment of the benefits, and any stipulation to the contrary shall be null and void.

Any violation of the provisions of this Section shall be punished by a fine of not less than Five hundred pesos (₱500.00) nor more than Five thousand pesos (₱5,000.00). or imprisonment for not less than six (6) months nor more than one (1) year, or both, at the discretion of the court.

Section 18. Employee’s Contributions. - Beginning on the last day of the calendar month when an employee’s compulsory coverage takes effect and every month thereafter during his employment, the employer shall deduct and withhold from such employee’s monthly salary, wage, compensation or earnings, the employee’s contribution in an amount corresponding to his salary, wage, compensation or earnings during the month in accordance with the monthly salary credits, the schedule and the rate of contributions as may be determined and fixed by the Commission, subject to the provisions of Section 4(a)(9) of this Act.

The monthly salary credits, the schedule and the rate of contributions shall also apply to self-employed, voluntary, and other members.

Section 19. Employer’s Contributions. -

(a) Beginning on the last day of the month when an employee’s compulsory coverage takes effect and every month thereafter during his employment, his employer shall pay, with respect to such covered employee, the employer’s contribution in accordance with the schedule provided in this Act. Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly, from the compensation of his employees covered by the SSS or otherwise recover from them the employer’s contributions with respect to such employees.

(b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to be submitted to the SSS at the end of each calendar quarter indicating the correct ID number of the employer, the correct names and the SSS numbers of the employees and the total contributions paid for their account during the quarter.

Section 19-A. Contributions of the Self-Employed Member. - The contributions to the SSS of the self-employed member shall be determined in accordance with the schedule provided in this Act: Provided, That the monthly earnings declared by the self-employed member at the time of his registration with the SSS shall be considered as his monthly compensation and he shall pay both the employer and the employee contributions: Provided, further, That the contributions of self-employed persons earning One thousand pesos (₱1,000.00) monthly or below may be reduced by the Commission.

The monthly earnings declared by the self-employed member at the time of his registration shall remain the basis of his monthly salary credit, unless he makes another declaration of his monthly earnings, in which case such latest declaration becomes the new basis of his monthly salary credit.

Section 20. Government Contribution. - As the contribution of the Government to the operation of the SSS, Congress shall annually appropriate out of any funds in the National Treasury not otherwise appropriated, the necessary sum or sums to meet the estimated expenses of the SSS for each ensuing year. In addition to this contribution, Congress shall appropriate from time 10 times such sum or sums as may be needed to assure the maintenance of an adequate working balance of the funds of the SSS as disclosed by suitable periodic actuarial studies to be made of the operations of the SSS.

Section 21. Government Guarantee. - The benefits prescribed in this Act shall not be diminished and to guarantee said benefits the Government of the Republic of the Philippines accepts general responsibility for the solvency of the SSS.

Section 22. Remittance of Contributions -

(a) The contribution imposed in the preceding section shall be remitted to the SSS within the first ten (10) days of each calendar month following the month for which they are applicable or within such time as the Commission may prescribe. Every employer required to deduct and to remit such contributions shall be liable for their payment and if any contribution is not paid to the SSS as herein prescribed, the delinquent employer shall pay besides the contribution a penalty thereon of two percent (2%) per month from the date the contribution falls due until paid. If deemed expedient and advisable by the Commission, the collection and remittance of contributions shall be made quarterly or semi-annually in advance, the contributions payable by the employees to be advanced by their respective employers: Provided, That upon separation of an employee, any contribution so paid in advance but not due shall be credited or refunded to his employer.

(b) The contributions payable under this Act in cases where an employer refuses or neglects to pay the same shall be collected by the SSS in the same manner as taxes are made collectible under the National Internal Revenue Code, as amended. Failure or refusal of the employer to pay or remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits of the coverage.

The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as the ease may be.

(c) Should any person, natural or juridical, defaults in any payment of contributions, the Commission may also collect the same in either of the following ways:

(1) By an action in court, which shall hear and dispose of the case in preference to any other civil action; or

(2) By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any real and personal property of the debtor. The Sheriff's sale by virtue of said warrant shall be governed by the same procedure prescribed for executions against property upon judgments by a court of record.

(d) The last complete record of monthly contributions paid by the employer or the average of the monthly contributions paid during the past three (3) years as of the date of filing of the action for collection shall be presumed to be the monthly contributions payable by and due from the employer to the SSS for each of the unpaid month, unless contradicted and overcome by other evidence: Provided, That the SSS shall not be barred from determining and collecting the true and correct contributions due the SSS even after full payment pursuant to this paragraph, nor shall the employer be relieved of his liability under Section Twenty-eight of this Act.

Section 22-A. Remittance of Contributions of Self-Employed Members. - Self-employed members shall remit their monthly contributions quarterly on such dates and schedules as the Commission may specify through rules and regulations: Provided, That no retroactive payment of contributions shall be allowed, except as provided in this Section.

Section 23. Method of Collection and. Payment. - The SSS shall require a complete and proper collection and payment of contributions and proper identification of the employer and the employee. Payment may be made in cash, checks, stamps, coupons, tickets, or other reasonable devices that the Commission may adopt.

Section 24. Employment Records and Reports. -

(a) Each employer shall immediately report to the SSS the names, ages, civil status, occupations, salaries and dependents of all his employees who are subject to compulsory coverage: Provided, That if an employee subject to compulsory coverage should die or become sick or disabled or reach the age of sixty (60) without the SSS having previously received any report or written communication about him from his employer, the said employer shall pay to the SSS damages equivalent to the benefits to which said employee member would have been entitled had his name been reported on time by the employer to the SSS, except that in case of pension benefits, the employer shall be liable to pay the SSS damages equivalent to the accumulated pension due as of the date of settlement of the claim or to the five (5) years’ pension, whichever is higher, including dependents’ pension: Provided, further, That if the contingency occurs within thirty (30) days from the date of employment, the employer shall be relieved of his liability for damages: Provided, further, That any person or entity engaging the services of an independent contractor shall be subsidiarily liable with such contractor for any civil liability incurred by the latter under this Act: Provided, finally, That the same person or entity engaging the services of an independent contractor shall require such contractor to post a surety bond to guarantee the payment of the worker’s benefits.

(b) Should the employer misrepresent the true date of employment of the employee member or remit to the SSS contributions which are less than those required in this Act or fail to remit any contribution due prior to the date of contingency, resulting in a reduction of benefits, such employer shall pay to the SSS damages equivalent to the difference between the amount of benefit to which the employee member or his beneficiary is entitled had the proper contributions been remitted to the SSS and the amount payable on the basis of contributions actually remitted: Provided, That if the employee member or his beneficiary is entitled to pension benefits, the damages shall be equivalent to the accumulated pension due as of the date of settlement of the claim or to the five (5) years’ pension, whichever is higher, including dependents’ pension.

In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer shall also be liable for the payment of the corresponding unremitted contributions and penalties thereon.

(c) The records and reports duly accomplished and submitted to the SSS by the employer or the member, as the case may be, shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the courts, shall not be divulged without the consent of the SSS President or any official of the SSS duly authorized by him, shall be presumed correct as to the data and other matters stated therein, unless the necessary corrections to such records and reports have been properly made by the parties concerned before the right to the benefit being claimed accrues, and shall be made the basis for the adjudication of the claim. If as a result of such adjudication the SSS in good faith pays a monthly pension to a beneficiary who is inferior in right to another beneficiary or with whom another beneficiary is entitled to share, such payments shall discharge the SSS from liability unless and until such other beneficiary notifies the SSS of his claim prior to the payments.

(d) Every employer shall keep true and accurate work records for such period and containing such information as the Commission may prescribe, in addition to an "Annual Register of New and Separated Employees" which shall be secured from the SSS wherein the employer shall enter on the first day of employment or on the effective date of separation, the names of the persons employed or separated from employment, their SSS numbers, and such other data that the Commission may require and said annual register shall be submitted to the SSS in the month of January of each year. Such records shall be open for inspection by the SSS or its authorized representatives quarterly or as often as the SSS may require.

The SSS may also require each employer to submit, with respect to the persons in his employ, reports needed for the effective administration of this Act.

(e) Each employer shall require, as a condition to employment, the presentation of a registration number secured by the prospective employee from the SSS in accordance with such procedure as the SSS may adopt: Provided, That in case of employees who have earlier been assigned registration numbers by virtue of a previous employment, such numbers originally assigned to them should be used for purposes of this Section: Provided, further, That/ the issuance of such registration numbers by the SSS shall not exempt the employer from complying with the provisions of paragraph (a) of this Section.

(f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical disk and other similar archival media copies of original SSS records and reports, or copies of such records and reports duly certified by the official custodian thereof, shall have the same evidentiary value as the originals and be admissible as evidence in all legal proceedings.

(g) Notwithstanding any law to the contrary, local government units shall, prior to issuing any annual business license or permit, require submission of certificate of SSS coverage and compliance with the provisions of this Act: Provided, That the certification or clearance shall be issued by the SSS within five (5) working days from receipt of the request.

Section 24-A. Report and. Registration of the Self-Employed Member. - Each covered self-employed member shall, within thirty (30) days from the first day he started the practice of his profession or business operations, register and report to the SSS his name, age, civil status, and occupation, average monthly net income and his dependents.

Section 25. Deposit and Disbursements. - All money paid to or collected by the SSS every year under this Act, and all accruals thereto, shall be deposited, administered and disbursed in the same manner and under the same conditions and requirements as provided by law for other public special funds: Provided, That not more than twelve percent (12%) of the total yearly contributions plus three percent (3%) of other revenues shall be disbursed for administrative and operational expenses such as salaries and wages, supplies and materials, depreciation, and the maintenance of offices of the SSS: Provided, further, That if the expenses in any year are less than the maximum amount permissible, the difference shall not be availed of as additional expenses in the following years.

Section 26. Investment of Reserve Funds. - All revenues of the SSS that are not needed to meet the current administrative and operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be known as the "Reserve Fund". Such portions of the Reserve Fund as are not needed to meet the current benefit obligations thereof shall be known as the "Investment Reserve Fund" which the Commission shall manage and invest with the skill, care, prudence and diligence necessary to earn an annual income not less than the average rates of treasury bills or any other acceptable market yield indicator in any or in all of the following undertaking, under such rules and regulations as may be prescribed by the Commission: Provided, That investments shall satisfy the requirements of liquidity, safety/ security and yield in order to ensure the actuarial solvency of the funds of the SSS: Provided, further, That the SSS shall submit an annual report on all investments made to both the Senate and House of Representatives:

(a) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or in bonds, securities, promissory notes or other evidence of indebtedness to which the full faith, credit and unconditional guarantee of the Government of the Philippines is pledged: Provided, That at least fifteen percent (15%) of the investment reserve fund shall be invested for these purposes:

(b) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or any of its agencies or instrumentalities to finance domestic infrastructure projects such as roads, bridges, ports, telecommunications, and other similar projects: Provided, That the instruments issued by an agency or instrumentality of the government shall be guaranteed by the Government of the Philippines or any government financial institution or acceptable multilateral agency: Provided, further, That the SSS shall have priority over the revenues of the projects: Provided, finally, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

(c) In bonds, securities, promissory notes or other evidence of indebtedness of government financial institutions or government corporations with acceptable credit or guarantee: Provided, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund;

(d) In bonds, securities, deposits, promissory notes or other evidence of indebtedness of any,bank doing business in the Philippines and in good standing with the BSP to finance loans to private corporations doing business in the Philippines, including schools, hospitals, small-and-medium scale industries, cooperatives and nongovernmental organizations, in which case the collaterals or securities shall be assigned to the SSS, under such terms and conditions as the Commission may prescribe: Provided, That in the case of bank deposits, they shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank, whichever is smaller: Provided, further, That said bank shall first have been designated as a depository for this purpose by the Monetary Board of the BSP: Provided, finally, That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund;

(e) In bonds, securities, promissory notes or other evidence of indebtedness of shelter agencies of the National Government or financial intermediaries to finance housing loans of members; and in long-term direct individual or group housing loans giving priority to the low-income groups, up to a maximum of ninety percent (90%) of the appraised value of the properties to be mortgaged by the borrowers; and

In short and medium-term Mans to members such as salary, educational, livelihood, calamity, and emergency loans: Provided, That not more than five percent (5%) of the Investment Reserve Fund at any time shall be invested for housing purposes: Provided, further, That not more than twenty five percent (25%) of the Investment Reserve Fund shall be invested in short-and medium-term loans;

(f) In bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction, improvement and maintenance of schools and hospitals and their equipment and facilities: Provided, That such investments shall not exceed ten percent (10%) of the Investment Reserve Fund:

(g) In real estate property, including shares of stocks involving real estate property, and investments secured by first mortgages on real estate or other collaterals acceptable to the SSS: Provided, That such projects and investments shall, in the determination of the Commission, redound to the benefit of the SSS, its members, as well as the general public: Provided, further, That investment in real estate property and joint ventures including shares of stocks involving real estate property, shall not exceed ten percent (10%) of the Investment Reserve Fund: Provided, finally, That investments in other income earning projects and investment secured by first mortgages and or other collaterals shall not exceed twenty-five percent (25%) of the-Investment Reserve Fund;

(h) In bonds, debentures, securities, promissory notes or other evidence of indebtedness of any prime corporation or multilateral institutions to finance domestic projects: Provided, That the issuing or assuming entity or its predecessors shall not have defaulted in the payment of interest on any of its securities and that during each of any three (3) including the last two (2) of the five (5) fiscal years next preceding the date of acquisition by the SSS of such bonds, debentures or other evidence of indebtedness, the net earnings of the issuing or assuming institution available for its fixed charges, as defined in this Act, shall have been not less than one and one-quarter times the total of its fixed charges for such year: Provided, further, That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund;

(i) In preferred or common shares of stocks listed or to be listed in the stock exchange and other securities trading markets or options or warrants to such stock or, subject to prior approval of the BSP, such other risk management instruments of any prime or solvent corporation or financial institution created or existing under the laws of the Philippines with proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period: Provided, That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund;

(j) In domestic or foreign mutual funds in existence for at least three (3) years: Provided, That such investments shall not exceed forty percent (40%) of the Investment Reserve Fund: Provided, further, That investments in foreign mutual funds shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each succeeding year, but in no case shall it exceed fifteen percent (15%) of the Investment Reserve Fund;

(k) In foreign currency deposits or investment-grade rated foreign currency-denominated debts, prime and non-speculative equities, and other BSP approved financial instruments or other assets issued in accordance with the existing laws of the countries where such financial instruments are issued: Provided, That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided, further, That the issuing company has proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period: Provided, finally, That such investments shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each succeeding year, but in no case shall it exceed fifteen percent (15%) of the Investment Reserve Fund;

(l) In loans secured by such collaterals like cash, pensions, government securities or guarantees of multilateral institutions including loans to pensioners: Provided, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund; and

(m) In other BSP approved investment instruments with the same intrinsic quality as those enumerated in paragraphs (a) to (l) hereof, subject to the policies and guidelines which the Commission may formulate.

No portion of the Investment Reserve Fund or income thereof shall accrue to the general fund of the National Government or to any of its agencies or instrumentalities, including government-owned or -controlled corporations, except as may be allowed under this Act: Provided, That no portion of the Investment Reserve Fund shall be invested for any purpose or any instrument, institution or industry over and above the prescribed cumulative ceilings as follows:

60% in private securities

5% in housing

30% in real estate related investments

25% in short and medium-term member loans

30% in government financial institutions and corporations

15% in any particular industry

7.5% in foreign-currency denominated investments

5% in private-sponsored infrastructure projects without guarantee

5% private and government sponsored infrastructure projects with guarantee

5% in private and government sponsored infrastructure projects.

Section 26-A. Fund Managers. - As part of its investment operations, the SSS may appoint local or, in the absence thereof, foreign fund managers to manage the Investment Reserve Fund, as it may deem appropriate.

Section 26-B. Mortgagor Insurance Account. -

(a) As part of its investment operations, the SSS shall act as insurer of all or part of its interest on SSS properties mortgaged to the SSS, or lives of mortgagors whose properties are mortgaged to the SSS. For this purpose, the SSS shall establish a separate account to be known as the "Mortgagors’ Insurance Account". All amounts received by the SSS in connection with the aforesaid insurance operations shall be placed in the Mortgagors’ Insurance Account. The assets and liabilities of the Mortgagors’ Insurance Account shall at all times be clearly identifiable and distinguishable from the assets and liabilities in all other accounts of the SSS. Notwithstanding any provision of law to the contrary, the assets held in the Mortgagors’ Insurance Account shall not be chargeable with the liabilities arising out of any other business the SSS may conduct but shall be held and applied exclusively for the benefit of the owners or beneficiaries of the insurance contracts issued by the SSS under this paragraph.

(b) The SSS may insure any of its interest or part thereof with any private company or reinsurer.1âwphi1 The Insurance Commission or its authorized representatives shall make an examination into the financial condition and methods of transacting business of the SSS at least once in two (2) years, but such examination shall be limited to the insurance operation of the SSS as authorized under this paragraph and shall not embrace the other operations of the SSS: and the report of said examination shall, be submitted to the Commission and a copy thereof shall be furnished the Office of the President of the Philippines within a reasonable time after the close of the examination: Provided, That for each examination, the SSS shall pay to the Insurance Commission an amount equal to the actual expense of the Insurance Commission in the conduct of examination, including the salaries of the examiners and of the actuary of the Insurance Commission who have been assigned to make such examination for the actual time spent in said examination: Provided, further, That the general law on insurance and the rules and regulations promulgated thereunder shall have suppletory application insofar as it is not in conflict with this Act and its rules and regulations.

Section 27. Records and Reports. - The SSS President shall keep and cause to keep records of operations of the funds of the SSS and of disbursements thereof and all accounts of payments made out of said funds. During the month of January of each year, the SSS President shall prepare for submission to the President of the Philippines and to Congress of the Philippines a report of operations of the SSS during the preceding year, including statistical data on the number of persons covered and benefited, their occupations and employment status, the duration arid amount of benefits paid, the finances of the SSS at the close of the said year, and recommendations. He shall also cause to be published in two (2) newspapers of general circulation in the Philippines a synopsis of the annual report, showing in particular the status of the finances of the SSS and the benefits administered.

Section 28. Penal Clause. -

(a) Whoever, for the purpose of causing any payment to be made under this Act. or under an agreement thereunder, where none is authorized to be paid, shall make or cause to be made false statement or representation as to any compensation paid or received or whoever makes or causes to be made any false statement of a material fact in any claim for any benefit payable under this Act, or application for loan with the SSS. or whoever makes or causes to be made any false statement, representation, affidavit or document in connection with such claim or loan, shall suffer the penalties provided for in Article One hundred seventy-two of the Revised Penal Code.

(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being entitled thereto with intent to defraud any member, employer or the SSS, shall be fined not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) and imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years.

(c) Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or gives in pledge, except as authorized in this Act or in regulations made pursuant thereto, any stamp, coupon, ticket, book or other device, prescribed pursuant to Section Twenty-three hereof by the Commission for the collection or payment of contributions required herein, shall be fined not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00), or imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.

(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other device prescribed by the Commission for the collection or payment of any contribution required herein, or uses, sells, lends, or has in his possession any such altered, forged or counterfeit materials, or makes, uses, sells or has in his possession any such altered, forged, material in imitation of the material used in the manufacture of such stamp, coupon, ticket, book or other device, shall be fined not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) or imprisoned for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court.

(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by the Commission, shall be punished by a fine of not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years, or both, at the discretion of the court: Provided, That where the violation consists in failure or refusal to register employees or himself, in case of the covered self-employed or to deduct contributions from the employees’ compensation and remit the same to the SSS, the penalty shall be a fine of not less than Five thousand pesos (₱5,000.00) nor more than Twenty thousand pesos (₱20,000.00) and imprisonment for not less than six (6) years and one (1) day nor more than twelve (12) years.

(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other institution, its managing head, directors or partners shall be liable for the penalties provided in this Act for the offense.

(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS and who shall appropriate the same, or shall take or misappropriate, or shall consent, or through abandonment or negligence, shall permit any other person to take such property or funds, wholly or partially, or shall otherwise be guilty of misappropriation of such funds or property, shall suffer the penalties provided in Article Two hundred seventeen of the Revised Penal Code.

(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employee’s compensation, fails to remit the said deduction to the SSS within thirty (30) days from the date they became due, shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties provided in Article Three hundred fifteen of the Revised Penal Code.

(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the employee concerned either under this Act or in appropriate cases under the Revised Penal Code: Provided, That such criminal action may be filed by the SSS in the city or municipality where the SSS office is located, if the violation was committed within its territorial jurisdiction or in Metro Manila, at the option of the SSS.

Section 29. Government Aid. - The establishment of the SSS shall not disqualify the members and employers from receiving such government assistance, financial or otherwise, as may be provided.

Section 30. Implementing Rules and Regulations. - The Commission shall promulgate the necessary rules and regulations to implement this Act not later than ninety (90) days after its effectivity.

Section 31. Transitory Clause. - Any employer who is delinquent or has not remitted all contributions due and payable to the SSS may, within six (6) months from the effectivity of this Act, remit said contributions or submit a proposal to pay the. same in installment within a period as approved by the Commission from the effectivity of this Act without incurring the prescribed penalty, subject to the implementing rules and regulations which the Commission may prescribe: Provided, That the employer submits the corresponding collection lists together with the remittance or proposal to pay in installments: Provided, further, That in case the employer fails to remit contributions within the six-month grace period or defaults in the payment of any amortization provided in the approved proposal, the prescribed penalty shall be imposed from the time the contributions first became due as provided in Section 22(a) hereof: Provided, finally, That upon approval and payment in full or in installments of contributions due and payable to the SSS, any pending case filed against the employer shall be withdrawn without prejudice to the (i) refiling of the case in the event the employer fails to remit in full the required delinquent contributions or defaults in the payment of any installment under the approved proposal and (ii) the reimposition of the prescribed penalty from the time the contributions first became due as provided in Section 22(a) hereof.

Section 32. Separability Clause. - If, for any reason, any part, section, or provision of this Act is held invalid or unconstitutional, the remaining provisions not affected thereby shall continue to be in full force and effect.

Section 33. Repealing Clause. - Republic Act No. 1161 and Republic Act No. 8282 and all other laws, proclamations, executive orders, rules and regulations or parts thereof inconsistent with this Act are hereby repealed, modified or amended accordingly: Provided, That no person shall be deemed to be vested with any property or other right by virtue of the enactment or operation of this Act.

December 20, 2018

An Act Strengthening the Philippine Comprehensive Policy on Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS) Prevention, Treatment, Care, and Support, and, Reconstituting the Philippine National Aids Council (PNAC), Repealing for the Purpose Republic Act No. 8504, Otherwise Known as The "Philippine Aids Prevention and Control Act of 1998", and Appropriating Funds Therefor

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Short Title. - This Act shall be known as the "Philippine HIV and AIDS Policy Act".

Section 2. Declaration of Policies. - The Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS) are public health concerns that have wide-ranging social, political, and economic repercussions. Responding to the country's HIV and AIDS situation is therefore imbued with public interest and shall be anchored on the principles of human rights upholding human dignity.

Policies and practices that discriminate on the basis of perceived or actual HIV status, sex, gender, sexual orientation, gender identity and expression, age, economic status, disability, and ethnicity hamper the enjoyment of basic human rights and freedoms guaranteed in the Constitution and are deemed inimical to national interest.

The State shall respect, protect, and promote human rights as the cornerstones of an effective response to the country's HIV and AIDS situation. Hence, HIV and AIDS education and information dissemination should form part of the right to health.

The meaningful inclusion and participation of persons directly and indirectly affected by the HIV and AIDS situation, especially persons living with HIV, are crucial in eliminating the virus. Thus unless otherwise provided in this Act, the confidentiality and non-compulsory nature of HIV testing and HIV-related testing shall always be guaranteed and protected by the State.

Towards this end, the State shall ensure the delivery of non-discriminatory HIV and AIDS services by government and private HIV and AIDS service providers, and develop redress mechanisms for persons living with HIV to ensure that their civil, political, economic, and social rights are protected.

Accordingly, the State shall:

(a) Establish policies and programs to prevent the spread of HIV and deliver treatment, care, and support services to Filipinos living with HIV in accordance with evidence-based strategies and approaches that uphold the principles of human rights, gender-responsiveness, and age-appropriateness, including meaningful participation of communities affected by the country's HIV and AIDS situation;

(b) Adopt a multi-sectoral approach in responding to the country's HIV and AIDS situation by ensuring that the whole government approach, local communities, civil society organizations (CSOs), and persons living with HIV are at the center of the process;

(c) Ensure access to HIV- and AIDS-related services by eliminating he climate of stigma and discrimination that surrounds the country's HIV and AIDS situation, and the people directly and indirectly affected by it; and

(d) Positively address and seek to eradicate conditions that aggravated the spread of HIV infection, which include poverty. Gender inequality, marginalization, and ignorance.

Section 3. Definition of Terms. - For the purposes of this Act, the following terms shall be defined as follows:

(a) Acquired Immune Deficiency Syndrome (AIDS) refers to a health condition where these is a deficiency of immune system that stems from infection with the Human Immunodeficiency Virus or HIV, making an individual susceptible to opportunistic infections;

(b) Antiretroviral Therapy (ART) refers to the treatment that stops or suppresses viral replication or replications of a retrovirus like HIV, thereby slowing down the progression of infection;

(c) Bullying refers to any severe or repeated use by one or more persons of a written, verbal or electronic expression, or a physical act of gesture, or any combination thereof, directed at another person that has the effect of actually causing or placing the latter in reasonable fear of physical or emotional harm or damage to one's property; creating a hostile environment for the other person; infringing on the rights of another persons; or materially and substantially disrupting the processes or orderly operation of an institution or organization;

(d) Civil Society Organizations (CSOs) refer to groups of nongovernmental and noncommercial individuals or legal entities that are engaged in non-coerced collective action around shared interests, purpose and values;

(e) Community-Based Research refers to study undertaken in community settings, which involve community members in the design and implementation of research projects;

(f) Comprehensive Health Intervention for Key Populations refers to evidence-based policies, programs, and approaches that aim to reduce transmission of HIV and its harmful consequences on health, social relations and economic conditions;

(g) Compulsory HIV Testing refers to HIV testing imposed upon an individual characterized by lack of consent, use of force or intimidation, the use of testing as a prerequisite for employment or other purposes, and other circumstances when informed choice is absent;

(h) Discrimination refers to unfair or unjust treatment that distinguishes, excludes, restricts, or shows preferences based on any ground such as sex gender, age, sexual orientation, gender identity and expression, economic status, disability, ethnicity, and HIV status, whether actual or perceived, and which has the purpose or effect of nullifying or impairing the recognition, enjoyment or exercise by all persons similarly situated, of all their rights and freedoms;

(i) Evolving Capacities of the Child refers to the concept enshrined in Article 5 of the Convention on the Rights of the Child recognizing the developmental changes and the corresponding progress in cognitive abilities and capacity for self-determination undergone by children as they grow up, thus requiring parents and others charged with the responsibility for the child to provide varying degrees of protection, and to allow their participation in opportunities for autonomous decision-making;

(j) Gender Expression refers to the way a person communicates gender identity to others through behavior, clothing, hairstyles, communication or speech pattern, or body characteristics;

(k) Gender Identity refers to the personal sense of identity as characterized, among others, by manner of clothing, inclinations, and behavior in relation to masculine or feminine conventions. A person may have a male or female identity with the physiological characteristics of the opposite sex;

(l) Health Maintenance Organizations (HMO) refers to juridical entities legally organized to provide or arrange for the provision of pre-agreed or designated health care services to its enrolled members for a fixed pre-paid fee for a specified period of time;

(m) High-risk Behavior refers to a person's involvement in certain activities that increase the risk of transmitting or acquiring HIV;

(n) Human Immunodeficiency Virus (HIV) refers to the virus, of the type called retrovirus, which infects cells of the human immune system, and destroys or impairs the cells' function. Infection with HIV results in the progressive deterioration of the immune system. Leading to immune deficiency;

(o) HIV Counseling refers to the interpersonal and dynamic communication process between a client and a trained counselor, who is bound by a code of ethics and practice to resolve personal, social, or psychological problems and difficulties, and whose objective in counseling in the context of an HIV diagnosis is to encourage the client to anxiety and stress, plan for the future keeping healthy, the context of a negative HIV test result, to encourage the client to explore motivations, options, and skills to stay HIV-negative;

(p) HIV and AIDS Counselor refers to any individual trained by an institution or organization accredited by the Department of Health (DOH) to provide counseling services on HIV and AIDS with emphasis on behavior modification;

(q) HIV and AIDS Monitoring refers to the documentation and analysis of the number of HIV and AIDS infections and the pattern of its spread;

(r) HIV and AIDS Prevention and Control refers to measures aimed at protecting non-infected persons from contracting HIV and minimizing the impact of the condition on persons living with HIV;

(s) HIV-Negative refers to the absence of HIV or HIV antibodies upon HIV testing;

(t) HIV-Positive refers to the presence of HIV infection as documented by the presence of HIV and HIV antibodies in the sample being tested;

(u) HIV Testing refers to any facility-based, mobile medical procedure, or community-based screening modalities that are conducted to determine the presence or absence of HIV in a person's body. HIV testing is confidential, voluntary in nature and must be accompanied by counseling prior to and after the testing, and conducted only with the informed consent of the person;

(v) HIV-related Testing refers to any laboratory testing or procedure done or an individual in relation to a person's HIV condition;

(w) HIV Testing Facility refers to any DOH accredited on-site or mobile testing center, hospital, clinic, laboratory, and other facility that has the capacity to conduct voluntary HIV counseling and HIV testing;

(x) HIV Transmission refers to the transfer of HIV from one infected person to an uninfected individual, through unprotected sexual intercourse, blood transfusion, sharing of contaminated intravenous needles, or which may occur during pregnancy, delivery, and breastfeeding;

(y) Informed Consent refers to the voluntary agreement of a person to undergo or be subjected to a procedure based on full information, whether such permission is written or conveyed verbally;

(z) Key Affected Populations refers to those groups or persons at higher risk of HIV exposure, or affected populations whose behavior make them likely to be exposed to HIV or to transmit the virus;

(aa) Laboratory refers to an area or place, including community-based settings, where research studies are being undertaken to develop local evidence for effective HIV response;

(bb) Mature Minor Doctrine refers to the legal principle that recognizes the capacity of some minors to consent independently to medical procedures, if they have been assessed by qualified health professionals to understand the nature of procedures and their consequences to make a decision on their own;

(cc) Medical Confidentiality refers to the core duty of medical practice where the information provided by the patient to the health practitioner and his/her health status is kept private and is not divulged to third parties. The patient's health status can however, be shared with other medical practitioners involved in the professional care of the patient, who will also be bound by medical confidentiality. Medical confidentiality applies to the attending physician, consulting medical specialist, nurse, medical technologist and all other health workers or personnel involved in any counseling, testing or professional care of the patient. It also applies to any person who, in any officially capacity, has acquired or may have acquired such confidential information;

(dd) Opportunistic infections refers to illnesses caused by various organism, many of which do not cause diseases in persons with healthy immune system;

(ee) Partner Notification refers to the process by which the "index client", "source", or "patient" who has a sexually transmitted infection (STI) including HIV, is given support in order to notify and advise the partners that have been exposed to infection. Support includes giving the index client a mechanism to encourage the client's partner to attend counseling, testing and other prevention and treatment services. Confidentiality shall be observed in the entire process;

(ff) Person Living with HIV (PLHIV) refers to any individual diagnosed to be infected with HIV;

(gg) Pre-exposure Prophylaxis refers to the use of prescription drugs as a strategy for the prevention of HIV infection by people who do not have HIV and AIDS. It is an optional treatment, which may be taken by people who are HIV-negative but who have substantial, higher-than-average risk of contracting an HIV infection;

(hh) Pre-test Counseling refers to the process of providing an individual with information on the biomedical aspects of HIV AIDS, and emotional support to any psychological implications of undergoing HIV testing and the test result itself before the individual is subjected to the test;

(ii) Post-exposure Prophylaxis refers to a preventive medical treatment started immediately after exposure to pathogen(HIV) in order to prevent infection by the pathogen and the development of the disease;

(jj) Post-test Counseling refers to the process of providing risk-reduction information and emotional support to a person who submitted to HIV testing at the time the result is released;

(kk) Prophylactic refers to any agent or device used to prevent the transmission of an infection;

(ll) Provider-initiated Counseling and Testing refers to a health care provider initiating HIV testing to a person practicing high-risk behavior or vulnerable to HIV after conducting HIV pre-test counseling. A person may elect to decline or defer testing such that consent is conditional;

(mm) Redress refers to an act of compensation for unfairness, grievance, and reparation;

(nn) Safer Sex Practices refers to choices made and behaviors adopted by a person to reduce or minimize the risk of HIV transmission. These may include postponing sexual debut, non-penetrative sex, correct and consistent use of made or female condoms. And reducing the number of sexual partners;

(oo) Sexually Transmitted Infections (STIs) refers to infections that are spread through the transfer of organisms from one person to another as a result of sexual contact;

(pp) Sexual Orientation refers to the direction of emotional, sexual attraction, or conduct towards people of the same sex (homosexual orientation) or towards people of both sexes (bisexual orientation) or towards people of the opposite sex (heterosexual orientation) or to the absence of sexual attraction (asexual orientation);

(qq) Social Protection refers to a set of policies and programs designed to reduce poverty and vulnerability by promoting efficient labor markets, diminishing people's exposure to risks, and enhancing their capacity to protect themselves against hazards, and interruptions on, or loss of income;

(rr) Stigma refers to the dynamic devaluation and dehumanization of an individual in the eyes of others, which may be based on attributes that are arbitrarily defined by others as discreditable or unworthy, and which results in discrimination when acted upon;

(ss) Treatment hubs refer to private and public hospitals or medical establishments accredited by the DOH to have the capacity and facility to provide treatment and care services to PLHIV;

(tt) Voluntary HIV testing refers to HIV testing done on an individual who, after having undergone pre-test counseling willingly submits to such test;

(uu) Vulnerable communities refer to the communities and groups suffering from vulnerabilities such as unequal opportunities, social exclusion, poverty, unemployment, and other similar social exclusion, poverty, unemployment, and other similar social economic, cultural and political conditions making them more susceptible to HIV infection and to developing AIDS; and

(vv) Workplace refers to the office, premise or work site where workers are habitually employed and shall include the office or place where workers, with no fixed or definite work site, regularly report for assignment in the course of their employment.

ARTICLE I THE PHILIPPINE NATIONAL AIDS COUNCIL

Section 4. Philippine National AIDS Council (PNAC). - the PNAC, established under Section 43 of Republic Act No. 8504, otherwise known as the "Philippine AIDS Prevention and Control Act of 1998", shall be reconstituted and streamlined to ensure the implementation of the country's response to the HIV and AIDS situation.

The PNAC shall be an agency attached to the DOH with a separate budget under the General Appropriations Act (GAA). It shall have its own secretariat and staffing pattern that shall be headed by an executive director.

Section 5. Functions. - The PNAC shall perform the following functions;

(a) Develop the AIDS Medium Term Plan (AMTP) in collaboration with relevant government agencies, CSOs, the PLHIV community, and the other stakeholders;

(b) Ensure the operationalization and implementation of the AMTP;

(c) Strengthen the collaboration between government agencies and CSOs involved in the implementation of the national HIV and AIDS response, including the delivery of HIV and AIDS related services;

(d) Develop and ensure the implementation of the guidelines and policies provided in this Act, including other policies that may be necessary to implement the AMTP;

(e) Monitor the progress of the response to the country's HIV and AIDS situation;

(f) Monitor the implementation of the AMTP, undertake mid-term assessments and evaluate its impact;

(g) Mobilize sources of funds for the AMTP;

(h) Mobilize its members to conduct monitoring and evaluation of HIV-related programs, policies, and services within their mandate;

(i) Coordinate, organize, and work in partnership with foreign and international organizations regarding funding, data collection, research, and prevention and treatment modalities on HIV and AIDS, and ensure foreign funded programs are aligned to the national response;

(j) Advocate for policy reforms to Congress and other government agencies to strengthen the country's response to the HIV and AIDS situation;

(k) Submit an annual report to the Office of the President, Congress, and the members of the Council;

(l) Identify gaps in the national response on the part of government agencies and its partners from civil society and international organizations, in order to develop and implement the initial interventions required in these situations; and

(m) Recommend policies and programs that will institutionalize or continue the interventions required in addressing the gaps identified in the national response to the HIV and AIDS situation of the country.

In addition to the powers and functions enumerated under the preceding paragraph, the members of the PNAC shall also develop and implement individual action plans, which shall be anchored to and integrated in the AMTP. Such action plans shall be based on the duties, powers, and functions of the individual agencies as identified in Articles II to VII of this Act.

Section 6. Memberships and Composition. - Selection of the members of PNAC shall be based on the following criteria:

(a) Government agencies or CSOs with direct contribution to the performance of the core functions of the Council (oversight, direction setting and policy making);

(b) Government agencies or CSOs with existing programs, services and activities that directly contribute to the achievement of the AMTP; and

(c) Government agencies or CSOs with existing constituencies that are targeted by the AMTP's objectives and activities.

The following agencies and CSOs shall be represented in the PNAC:

(1) Department of Health (DOH);

(2) Department of Education (DepEd);

(3) Department of Labor and Employment (DOLE);

(4) Department of Social Welfare and Development (DSWD);

(5) Department of the Interior and Local Government (DILG);

(6) Civil Service Commission (CSC);

(7) Commission on Higher Education (CHED);

(8) National Youth Commission (NYC);

(9) Philippine Information Agency (PIA);

(10) Department of Budget and Management;

(11) The Chairperson of the Committee on Health and Demography of the Senate of the Philippines or his representative;

(12) The Chairperson of the Committee on Health of the House of Representative or his representative;

(13-14) Two (2) representatives from organizations of persons living with HIV and AIDS;

(15) One (1) representative from a private organization with expertise in standard setting and service delivery; and

(16-21) Six (6) representatives from NGOs working for the welfare or identified key populations.

Except for members from government agencies, the members of the PNAC shall be appointed by the President of the Philippines. The heads of government agencies may be represented by an official whose rank shall not lower than an Assistant Secretary or its equivalent.

The members of the PNAC shall be appointed not later than thirty (30) days after the date of the enactment of this Act.

The PNAC shall meet at least once every quarter. The presence of the Chairperson or the Vice Chairperson of the PNAC, and at least ten (10) other PNAC members and/or permanent representatives shall constitute a quorum to do business, and a majority vote of those present shall be sufficient to pass resolutions or render decisions.

The Secretary of Health shall be the permanent Chairperson of the PNAC. However, the Vice Chairperson shall be elected from the government agency members, and shall serve for a term of three (3) years. Members representing CSOs shall serve for a term of three (3) years renewable upon recommendation of the Council for a maximum of two (2) consecutive terms.

Section 7. Secretariat. - The PNAC shall be supported by a secretariat consisting of personnel with the necessary technical expertise and capacity that shall be conferred permanent appointments, subject to Civil Service rules and regulations. The Secretariat shall be headed by an Executive Director who shall be under the direct supervision of the Chairperson of the PNAC.

The Secretariat shall perform the following functions:

(a) Coordinate and manage the day-to-day affairs of the PNAC;

(b) Assist in the formulation, monitoring, and evaluation of policies and the AMTP;

(c) Provide technical assistance, support and advisory services to the PNAC and its external partners;

(d) Assist the PNAC in identifying and building internal and external networks and partnerships;

(e) Coordinate and support the efforts of the PNAC and its members to mobilize resources;

(f) Serve as the repository of HIV and AIDS-related information;

(g) Disseminate update, accurate, relevant, and comprehensive information about the country's HIV and AIDS situation to PNAC members, policy makers, and the media;

(h) Provide administrative support to the PNAC; and

(i) Coordinate, fund and implement, as directed by the PNAC, the interventions identified by the Council as gaps in the AMTP implementation, in cooperation with the CSOs and PLHIV community.

Section 8. AIDS Medium Term Plan (AMTP). The PNAC shall formulate and periodically update the six (6)-year AMTP, a national multi-sectoral strategic plan to prevent and control the spread of HIV and AIDS in the country. The AMTP shall include the following.

(a) The country's target and strategies in addressing the HIV and AIDS situation;

(b) The prevention, treatment care and support, and other components of the country's response;

(c) The operationalization of the program and identification of the government agencies that shall implement the program, including the designated office within each agency responsible for overseeing, coordinating, facilitating, and monitoring the implementation of its AIDS program for the national to the local levels; and

(d) The budgetary requirements and a corollary investment plan of each government agency specified in the AMTP, and shall identify the sources of funds for its implementation.

Section 9. The Role of DOH. - The National HIV and AIDS and STI Prevention and Control Program (NASPCP) of the DOH, which shall be composed of qualified medical specialist and support personnel with permanent appointments, and with adequate yearly budget, shall coordinate with the PNAC for the implementation of the health sector's HIV and AIDS and STI response as identified in the AMTP.

The Epidemiology Bureau shall maintain a comprehensive HIV and AIDS monitoring and evaluation program that shall serve the following purposes:

(a) Determine and monitor the magnitude and progression of HIV and AIDS in the Philippines and regularly provide a list of priority areas with high magnitude of HIV and AIDS cases and co-infections to help the PNAC evaluate the adequacy and efficacy of HIV prevention and treatment programs being employed;

(b) Receive, collate, process, and evaluate all HIV-and-AIDS-related medical reports from all hospitals, clinics, laboratories and testing centers, including HIV-related deaths and relevant data from public and private hospitals, clinics, laboratories and testing centers, including HIV-related deaths and relevant data from public and private hospitals, various data banks or information systems; Provided, That it shall adopt a coding system that ensures anonymity and confidentiality; and

(c) Submit, through its Secretariat, quarterly and annual reports to the PNAC containing the findings of its monitoring and evaluation activities in compliance with this mandate.

Section 10. Protection of Human Rights. - The country's response to the IV and AIDS situation shall be anchored on the principle of human rights and human dignity. Public health concerns shall be aligned with internationally-recognized human rights instruments and standards.

Towards this end, the members of the PNAC, in cooperation with CSOs, and in collaboration with the Department of Justice (DOJ) and the Commission on Human Rights (CHR), shall ensure the delivery of non-discriminatory HIV and AIDS services by government and private HIV and AIDS service provider. Further, the DOJ and CHR, in coordination with the PNAC, shall take the lead in developing redress mechanisms for PLHIV and key affected populations to ensure that their civil, political, economic, and social rights are protected. The PNAC shall cooperate with local government units (LGUs) to strengthen existing mediation and reconciliation mechanisms at the local level.

ARTICLE II INFORMATION, EDUCATION AND COMMUNICATION

Section 11. Prevention Program. - There shall be an HIV and AIDS prevention program that will educate the public on HIV and AIDS and other STIs with the goal of reducing risky behavior, lowering vulnerabilities, and promoting the human rights of PLHIV.

The PNAC shall promote and adopt a range of measures and interventions, in partnership with CSOs that aim to prevent, halt, or control the spread of HIV in the general population, especially among the key populations and vulnerable communities. These measures shall likewise promote the rights, welfare, and participation of PLHIV and the affected children, young people, families, and partners of PLHIV.

The HIV and AIDS education and prevention programs shall be age-appropriate and based on up0to-date evidence and scientific strategies, and shall actively promote:

(a) Safer sec practices among the general population, including sexual abstinence, sexual fidelity, and consistent and correct condom use especially among key populations;

(b) Other practices that reduce risk of HIV infection;

(c) Universal awareness of and access to evidence-based and relevant information and education, and medically safe, legally affordable, effective, and quality treatment; and

(d) Knowledge of the health, civil, political, economic, and social rights of PLHIV and their families.

Section 12. Education in Learning Institutions. - Using standardized information and data from the PNAC, the DepEd, CHED, and the Technical Education and Skills Development Authority (TESDA), shall integrate basic and age-appropriate instruction on the causes, modes of transmission, and ways of preventing the spread of HIV and AIDS and other STIs in their respective curricula taught in public and private learning institutions, including alternative and indigenous learning systems. The learning modules shall include human rights-based principles and information on treatment, care, and support to promote stigma reduction.

The learning modules that shall be developed to implement this provision shall be done in coordination with the PNAC and stakeholders in the education sector. Referral mechanisms, including but not limited to, the DSWD Referral System, shall be included in the modules for key populations and vulnerable communities.

The DepEd, CHED, and TESDA shall ensure the development and provision of psychosocial support and counseling in learning institutions, for the development of positive health, and promotion of values and behavior pertaining to reproductive health, in coordination with the DOH. For this purpose, funds shall be allocated for the training and certification of teachers and school counselors.

Section 13. Education for Parents and Guardians. - The DepEd in coordination with parent-teacher organizations in schools and communities shall conduct awareness-building seminars in order to provide parents and guardians with a gender-responsive and age-sensitive HIV and AIDS education.

Section 14. Education as Right to Health and Information. - HIV and AIDS education and information dissemination shall form part of the constitutional right to health.

Section 15. HIV and AIDS Information as a Health Service. - HIV and AIDS education and information dissemination shall form part of the delivery of health services by health practitioners, workers, and personnel. The knowledge and capabilities of all public health workers shall be enhanced to include skills for proper information dissemination and education on HIV and AIDS. It shall likewise be considered a civic duty of health care providers in the private sector to make available to the public such information necessary to prevent and control the spread of HIV and AIDS, and to correct common misconceptions about this disease. The training of health workers shall include discussions on HIV-related ethical issues such as confidentiality, informed consent, and the duty to provide treatment.

Section 16. Education in the Workplace. - All public and private employers and employees, including members of the Armed Forces of the Philippine (AFP) and the Philippine National Police (PNP), shall be regularly provided with standardized basic information and instruction of HIV and AIDS, including topics on confidentiality in the workplace and reduction or elimination of stigma and discrimination.

The PNAC shall develop the standardized and key messages on the prevention and control of HIV and AIDS based on current and updated information on the disease.

The DOLE for the private sector, the SCS for the public sector, and the AFP and PNP for the uniformed service shall implement this provision: Provided, That the standardized basic information and instruction shall be conducted by DOLE for the private sector at no cost to the employers and employees.

Section 17. Education for Filipinos Going Abroad. - The State shall ensure that all overseas Filipino workers and diplomatic, military, trade, and labor officials and personnel to be assigned overseas shall attend a seminar on the causes, manner of prevention, and impact of HIV and AIDS, before being granted a certification for overseas assignment: Provided, That Filipino workers or to the officials concerned.

The DOLE, the Department of Foreign Affairs (DFA), the Commission on Filipino Overseas (CFO), and other relevant government agencies in collaboration with the DOH, shall ensure the implementation of this section.

Section 18. Information for Tourists and Transients. - Educational materials on the causes, modes of transmission, prevention, and consequences of HIV infection and list of HIV counseling testing facilities shall be adequately provided at all international and local ports of entry and exit. The PIA, together with other relevant government agencies, in coordination with the PNAC and stakeholders in the tourism industry, shall lead the implementation of this section.

Section 19. Education in Communities. - The DILG, the Union of Local Authorities of the Philippines (ULAP), the League of Provinces, the League of Cities, and the League of Municipalities, through the local HIV and AIDS Councils (LAC) or the local health boards and, in coordination with the PNAC, shall implement a locally-based, multi-sectoral community response to HIV and AIDS through various channels on evidence-based, gender-responsive, age-appropriate, and human rights-oriented prevention tools to stop the spread of HIV. Gender and Development (GAD) funds and other sources may be utilized for these purposes.

Indigenous peoples communities and geographically isolated and disadvantaged areas (GIDA) shall also be given due focus in the implementation of this section.

The DILG, in coordination with the DSWD and the NYC, shall also conduct age-appropriate HIV and AIDS education for out-of-school youth.

Section 20. Education for Key Populations and Vulnerable Communities. - To ensure that HIV services reach key populations at higher risk, the PNAC, in collaboration with the LGUs and CSOs engaged in HIV and AIDS education programs, such as peer education, support groups, outreach activities, and community-based research that target these populations and other vulnerable communities. The DOH shall, in coordination with appropriate agencies and the PNAC, craft the guidelines, and standardized information messages for peer education, support group, and outreach activities.

Section 21. Information on Prophylactics. - Appropriate information shall be attached to, or provided with every prophylactic offered for sale or given as donation. Such information shall be legibly printed in English and Filipino, and contain literature on the proper use of the prophylactic device or agent, and its efficacy against HIV and STI.

Section 22. Misinformation on HIV and AIDS. - Misinformation on HIV and AIDS, which includes false and misleading advertising and claims in any form of media. Including traditional media, internet and social platform, and mobile applications, of the promotional marketing of drugs, devices, agents or procedures without prior approval from the DOH through the Food and Drug Administration (FDA), and without the requisite medical and scientific basis, including markings and indications in drugs and devices or agents, claiming to be a cure or a fail-safe prophylactic for HIV infection shall be prohibited.

ARTICLE III PREVENTIVE MEASURES, SAFE PRACTICES AND PROCEDURES

Section 23. HIV Prevention Measure. - The PNAC, in coordination with the DOH, LGUs, and other relevant government agencies, private sector, CSOs, faith-based organizations, and PLHIVs, shall implement preventive measures, including but not limited, to the following:

(a) Creation of rights-based and community-led behavior modification programs that seek to encourage HIV risk reduction behavior among PLHIVs;

(b) Establishment and enforcement of rights-based mechanisms to strongly encourage newly tested HIV-positive individuals to conduct partner notification and to promote HIV status disclosure to partners;

(c) Establishment of standard precautionary measures in public and private health facilities;

(d) Accessibility of ART and management of opportunistic infections;

(e) Mobilization of communities of PLHIV for public awareness campaigns and stigma reduction activities; and

(f) Establish comprehensive human rights and evidence-based policies, programs, and approaches that aim to reduce transmission of HIV and its harmful consequences to members of key affected populations.

The enforcement of this section shall not lead to, or result in the discrimination or violation of the rights of PLHIV and the service provider implementing the program, including peer educators and community-based testing providers.

Section 24. Comprehensive Health Intervention for Key Populations. - The DILG and DOH, in partnership with the key populations, shall establish a human rights and evidence-based HIV prevention policy and program for people who have higher risk of HIV infection and other key populations.

The presence of used or unused prophylactic shall not be used as basis to conduct raids or similar police operations in sites and venues of HIV prevention interventions. The DILG and DOH, in coordination with LGUs, shall establish a national policy to guarantee the implementation of this provision.

Section 25. Preventing Mother-to-Child HIV Transmission. The DOH shall establish a program to prevent mother-to-child HIV transmission that shall be integrated in its maternal and child health services.

Section 26. Standard Precaution on the Donation of Blood, Tissue, or Organ. - The DOH shall enforce the following guidelines on the donation of blood, tissue, or organ:

(a) Donation of tissue or organ, whether gratuitous or onerous, shall be accepted by a laboratory or institution only after a sample from the donor has been tested negative for HIV;

(b) All donated blood shall also be subjected to HIV testing;

(c) All donors whose blood, organ or tissue has been tested positive shall be deferred from donation, notified of their HIV status, counseled, and referred for care and clinical management as soon as possible;

(d) Donations of blood, tissue, or organ testing positive for HIV may be accepted for research purposes only, and shall be subject to strict sanitary disposal requirements; and

(e) A second testing may be demanded as a matter of right by the blood, tissue, or organ recipient or his/her immediate relatives before transfusion or transplant, except during emergency cases.

Section 27. Testing of Organ Donation. - Lawful consent to HIV testing of a donated human body, organ, tissue, or blood shall be considered as having been given when:

(a) A person volunteers or freely agrees to donate one's blood, organ, or tissue for transfusion, transplantation, or research; and

(b) A legacy and a donation are executed in accordance with Sections 3 and 4 respectively, of Republic Act No. 7170, otherwise known as the "Organ Donation Act of 1991".

Section 28. Guidelines on Medical Management, Surgical, and Other Related Procedures. The DOH shall, in consultation with concerned professional organizations and hospital associations, issue guidelines on medical management of PLHIV and protocol on precautions against HIV transmission during surgical, dental, embalming, body painting, or tattooing that require the use of needles or similar procedures. The necessary protective equipment such as gloves, goggles, and gowns shall be prescribed and required, and made available to all physicians and health care providers, tattoo artists, and similarly exposed personnel at all times. The DOH shall likewise issue guidelines on the handling and disposal of cadavers, body fluids, or wastes of persons known or believed to be HIV-positive.

ARTICLE IV SCREENING, TESTING AND COUNSELING

Section 29. HIV Testing. - As a policy, the State shall encourage voluntary HIV testing. Written consent from the person taking the test must be obtained before HIV testing.

HIV testing shall be made available under the following circumstances:

(a) In keeping with the principle of the evolving capacities of the child as defined in Section 3(i) of this Act, if the person is fifteen (15) to below eighteen (18) years of age, consent to voluntary HIV testing shall be obtained from the child without the need of consent from a parent or guardian;

(b) In keeping with the mature minor doctrine as defined in Section 3(bb) of this Act, Any young person aged below fifteen (15) who is pregnant or engaged in high-risk behavior shall be eligible for HIV testing and counseling, with the assistance of a licensed social worker or health worker. Consent to voluntary HIV testing shall be obtained from the child without the need of consent from a parent or guardian; and

(c) In all other cases not covered by (b) of this section, consent to voluntary HIV testing shall be obtained from the child's parent or legal guardian if the person is below fifteen (15) years of age or is mentally incapacitated. In cases when the child's parents or legal guardian cannot be located despite reasonable efforts, or if the child's parent or legal guardian refused to give consent of the minor shall also be required prior to the testing.

In every circumstance, proper counseling shall be conducted by a social worker, a health care provider, or other health care professional accredited by the DOH or the DSWD.

HIV testing guidelines issued by the DOH shall include guidance for testing minors and for the involvement of parents or guardians in HIV testing of minors.

The State shall continually review and revise, as appropriate, the HIV diagnostic algorithm based on current available laboratory technology and evidence.

Section 30. Compulsory HIV Testing. Compulsory HIV testing shall be allowed only in the following instances:

(a) When it is necessary to test a person who is charges with any of the offenses punishable under Articles 264 and 266 on serious and slight physical injuries, and Article 335 and 338 on rape and simple seduction, both of Act No. 3815 or the "The Revised Penal Code", as amended, and as also amended by Republic Act. No. 8553, otherwise known as "The Anti-Rape Law of 1997";

(b) When it is necessary to resolve relevant issues under Executive Order No. 209, otherwise known as "The Family Code of the Philippines"; and

(c) As a prerequisite in the donation of blood in compliance with the provisions of Republic Act No. 7170, otherwise known as the "Organ Donation Act of 1991", and Republic Act No. 7719, otherwise known as the "National Blood Services Act of 1994".

Section 31. Mechanisms and Standards on Routine Provider-Initiated and Client-Initiated HIV Counseling and Testing. - To implement this section, the DOH shall:

(a) Accredit public private HIV testing facilities based on capacity to deliver testing services including HIV counseling: Provided, That only DOH-accredited HIV testing facilities shall be allowed to conduct HIV testing;

(b) Develop the guidelines for HIV counseling and testing, including mobile HIV counseling and testing, and routine provider-initiated HIV counseling and testing that shall ensure among others, that HIV testing is based on informed consent, is voluntary and confidential, is available at all times and provided by the qualified persons and DOH-accredited providers;

(c) Accredit institutions or organizations that train HIV and AIDS counselors in coordination with DSWD;

(d) Accredit competent HIV and AIDS counselors for persons with disability including but not limited to, translator for the hearing-impaired and Braille for the visually-impaired clients, in coordination with the National Council for Disability Affairs (NCDA);

(e) Set the standards for HIV counseling and shall work closely with HIV and AIDS CSOs that train HIV and AIDS counselors and peer educators, in coordination and participation of NGOs, government organizations (GOs), and Civil Society Organizations of PLHIV (CSO-PLHIV); and

(f) Ensure access to routine provider-initiated counseling and testing as part of clinical care in all health care in all health care settings for the public.

All HIV testing facilities shall provide free pre-test and post-test HIV counseling to individuals who wish to avail of HIV testing, which shall likewise be confidential. No HIV testing shall be conducted without informed consent. The State shall ensure that specific approaches to HIV counseling and testing are adopted based on the nature and extent of HIV and AIDS incidence in the country.

Pre-test counseling and post-test counseling shall be done by the HIV and AIDS counselor, licensed social worker, licensed health service provider for free.

Section 32. HIV Testing for Pregnant Women. - A healthcare provider who offers prenatal medical care shall offer provider-initiated HIV testing for pregnant women. The DOH shall provide the necessary guidelines for healthcare providers in the conduct of the screening procedure.

ARTICLE V HEALTH AND SUPPORT SERVICES

Section 33. Treatment of Persons Living with HIV and AIDS. - The DOH shall establish a program that will provide free and accessible ART and medication for opportunistic infections to all PLHIVs who are enrolled in the program. It shall likewise designate public and private hospitals to become treatment hubs. A manual of procedures for management of PLHIVshall be developed by the DOH.

Section 34. Access to Medical Services by Indigents. - Indigent persons living with HIV shall not be deprived of access to medical services. The DOH and DSWD shall establish a program that will support better access to ART and medication for opportunistic infections to all indigent PLHIV, which includes financial support for necessary medical services related to the person's HIV condition.

Section 35. Economic Empowerment and Support. - PLHIV shall not be deprived of any employment, livelihood, micro-finance, self-help, and cooperative programs by reason of their HIV status. The DSWD, in coordination with the DILG, DOLE, and TESDA, shall develop enabling policies and guidelines to ensure economic empowerment and independence designed for PLHIV.

Section 36. Care and Support for Persons Living with HIV. - The DSWD, in coordination with the DOH, shall develop care and support programs for PLHIV, which shall include peer-led counseling and support, social protection, welfare assistance, and mechanisms for case management. These programs shall include care and support for the affected children, families, partners, and support groups of PLHIV.

Section 37. Care and Support for Overseas Workers Living with HIV. - The Overseas Workers Welfare Administration (OWWA), in coordination with the DOH, DSWD, DFA, CFO, and the Bureau of Quarantine and International Health Surveillance, shall develop a program to provide a stigma-free comprehensive reintegration, care, and support program, including economic, social, medical support for overseas workers, regardless of employment status and stage in the migration process.

Section 38. Care and Support for Affected Families, Intimate Partners, Significant Others and Children of People Living with HIV. - The DSWD, DOH, and LGUs, in consultation with CSOs and affected families of PLHIV shall develop care and support programs for affected families, intimate partners, significant others, and children of PLHIV, which shall include the following:

(a) Education programs that reduce HIV-related stigma, including counseling to prevent HIV-related discrimination within the family;

(b) Educational assistance for children infected with HIV and children orphaned by HIV and AIDS; and

(c) HIV treatment and management of opportunistic infections for minors living HIV who are not eligible under the Outpatient HIV and AIDS Treatment (OHAT) Package of the Philippine Health Insurance Corporation (PhilHealth).

Section 39. Care and Support Program in Prisons and Others Closed-Setting Institutions. - All prisons, rehabilitation centers, and other closed-setting institutions shall have comprehensive STI, HIV and AIDS prevention and control programs that include HIV education and information, HIV counseling and testing, and access to HIV treatment and care services. The DOH, in coordination with DILG, DOJ, and DSWD, shall develop HIV and AIDS comprehensive programs and policies, which include the HIV counseling and testing procedures in prisons, rehabilitation centers, and other closed-setting institutions.

PLHIV in prisons, rehabilitation centers, and other closed settings institutions shall be provided HIV treatment, which includes anti-retroviral drugs, care, and support in accordance with the national guidelines. Efforts should be undertaken to ensure the continuity of care at all stages, from admission or imprisonment to release. The provision on informed consent and confidentiality shall also apply in closed-setting institutions.

Section 40. Non-discriminatory HIV and AIDS Services. - The members of the PNAC, in cooperation with the CSOs, and in collaboration with DOJ and CHR, shall ensure the delivery of non-discriminatory HIV and AIDS services by government and private HIV and AIDS service providers.

Section 41. Protection of HIV Educators, Licensed Social Workers, Health Workers, and Other HIV and AIDS Service Providers from Harassment. - Any person involved in the provision of HIV and AIDS services, including peer educators, shall be protected from suit, arrest or prosecution, and from civil, criminal or administrative liability, on the basis of their delivery of such services in HIV prevention. This protection does not cover acts which are committed in violation of this Act.

Section 42. Health Insurance and Similar Health Services. - The PhilHealth shall:

(a) Develop a benefit package for PLHIV that shall include coverage for in-patient and out-patient medical and diagnostic service, including medication and treatment;

(b) Develop a benefit package for the unborn and the newborn child from infected mothers;

(c) Set a preference price for HIV services in government hospitals;

(d) Conduct programs to educate the human resource units of companies on the PhilHealth package on HIV and AIDS; and

(e) Develop a mechanism for orphans living with HIV to access HIV benefit package.

The PhilHealth shall enforce confidentiality in the provision of these packages to PLHIV. No PLHIV shall be denied or deprived of private health insurance under a Health Maintenance Organization (HMO) and private life insurance coverage under a life insurance company on the basis of the person's HIV status. Furthermore, no person shall be denied his insurance claims if he dies of HIV or AIDS under a valid and subsisting life insurance policy.

The insurance Commission (IC) shall implement this provision and shall develop the necessary policies to ensure compliance.

Section 43. HIV and AIDS Monitoring and Evaluation. - The DOH shall maintain a comprehensive HIV and AIDS monitoring and evaluation program that shall serve the following purposes:

(a) Determine and monitor the magnitude and progression of HIV and AIDS in the Philippines to help the national government evaluate the adequacy and efficacy of HIV prevention and treatment programs being employed;

(b) Receive, collate, process, and evaluate all HIV and AIDS-related medical reports from all hospitals, clinics, laboratories and testing centers, including HIV-related deaths and relevant data from public and private hospitals, various databanks or information systems: Provided, That it shall adopt a coding system that ensures anonymity and confidentiality; and

(c) Submit, through its Secretariat, an annual report to the PNAC containing the findings of its monitoring and evaluation activities in compliance with this mandate.

ARTICLE VI CONFIDENTIALITY

Section 44. Confidentiality. - The confidentiality and privacy of any individual who has been tested for HIV, has been exposed to HIV, has HIV infection or HIV- and AIDS-related illnesses, or was treated for HIV-related illnesses shall be guaranteed. The following acts violate confidentiality and privacy:

(a) Disclosure of Confidential HIV and AIDS Information. - Unless otherwise provided in Section 45 of this Act, it shall be unlawful to disclose, without written consent, information that a person has AIDS, has undergone HIV-related test, has HIV infection or HIV-related illnesses, or has been exposed to HIV.

The prohibition shall apply to any person, natural or juridical, whose work or function involves the implementation of this Act, or the delivery of HIV-related services, including those who handle or have access to personal data or information in the workplace, and who, pursuant to the receipt of the required written consent from the subject of confidential HIV and AIDS information, have subsequently been granted access to the same confidential information.

(b) Media Disclosure. - It shall be unlawful for any editor, publisher, reporter or columnist, in case of printed materials, or any announcer or producer in case of television and radio broadcasting, or any producer or director of films in case of the movie industry, or any other individual or organization in case of social media, to disclose the name, picture, or any information that would reasonably identify persons living with HIV and AIDS, or any confidential HIV and AIDS information, without the prior written consent of their subjects except when the persons waive said confidentiality through their own acts and omissions under Section 4(a) of Republic Act No. 10175, Otherwise known as the "Cybercrime Prevention Act of 2012" and Section 25 of Republic Act No. 10173, "Data Privacy Act of 2012".

Section 45. Exceptions. - Confidential HIV and AIDS information may be released by HIV testing facilities without consent in the following instances:

(a) When complying with reportorial requirements of the national active passive surveillance system of the DOH: Provided, That the information related to a person's identify shall remain confidential;

(b) When informing other health workers directly involved in the treatment or care of a PLHIV: Provided, That such worker shall be required to perform the duty of shared medical confidentiality; and

(c) When responding to a subpoena duces tecum and subpoena ad testificandum issued by a court with jurisdiction over a legal proceeding where the main issue is the HIV status of an individual: Provided, That the confidential medical record, after having been verified for accuracy by the head of the office or department, shall remain anonymous and unlinked and shall be properly sealed by its lawful custodian, hand delivered to the court, and personally opened by the judge: Provided, further, That the judicial proceedings be held in executive session.

Section 46. Disclosure of HIV-Related Test Results. - The result of any test related to HIV shall be disclosed by the trained service provider who conducts pre-test and post-test counseling only to the individual who submitted to the test. If the patient is below fifteen (15) years old, an orphan, or is mentally incapacitated, the result may de disclose to either of the patient's parents, legal guardian, or a duly assigned licensed social worker or health worker, whichever is applicable" Provided, That when a person below fifteen(15) years of age and not suffering from any mental incapacity, has given voluntary and informed consent to the procedure in accordance with Section 29(b) of this Act, the result of the test shall be disclose to child: Provided, further, That the child should be given age-appropriate counseling and access to necessary health care and sufficient support services.

It may also disclose to a person authorized to receive such results in conjunction with the DOH Monitoring Body as provided in Section 43 of this Act.

Section 47. Disclosure to Persons with Potential Exposure to HIV. - Any person who, after having been tested, is found to be infected with HIV is strongly encouraged to disclose this health condition to the spouse, sexual partners, and/or any person prior to engaging in penetrative sex or any potential exposure to HIV. A person living with HIV may seek help from qualified professionals including medical professionals, health workers, peer educators, or social workers to support him in disclosing this health condition to one's partner or spouse. Confidentiality shall likewise be observed. Further the DOH, through the PNAC, shall establish an enabling environment to encourage newly tested HIV positive individuals to disclose their status to partners.

Section 48. Duty of Employers, Heads of Government Offices, Heads of Public and Private Schools or Training Institutions, and Local Chief Executives. - It shall be the duty of private schools and training institutions, and local chief executives over all private establishments within their territorial jurisdiction, to prevent or deter acts of discrimination against PLHIV, and to provide procedures for the resolution, settlement, or prosecution of acts of discrimination against PLHIV, and to provide procedures for the resolution, settlement, or prosecution of acts of discrimination. Towards this end, the private employer, head of office, or local chief executive shall:

(a) Promulgate rules and regulations prescribing the procedure for the investigation of discrimination cases and the administrative sanctions thereof; and

(b) Create an ad hoc committee on the investigation of discrimination cases,

The committee shall conduct meetings to increase the members' knowledge and understanding of HIV and AIDS, and to prevent incidents of discrimination. It shall also conduct the administrative investigation of alleged cases of discrimination.

ARTICLE VII DISCRIMINATORY ACTS AND PRACTICES AND CORRESPONDING PENALTIES

Section 49. Discriminatory Acts and Practices. - The following discriminatory acts and practices shall be prohibited:

(a) Discrimination in the Workplace. - The rejection of job application, termination of employment, or other discriminatory policies in hiring, provision of employment and other related benefit, promotion or assignment of an individual solely or partially on the basis of actual, perceived, or suspected HIV status;

(b) Discrimination in Learning Institution. - Refusal of admission, expulsion, segregation, imposition of harsher disciplinary actions, or denial of benefits or services of student or a prospective student solely or partially on the basis of actual, perceived, or suspected HIV status;

(c) Restriction on Travel and Habitation. - Restrictions on travel within the Philippines, refusal of lawful entry to Philippine territory, deportation from Philippines, or the quarantine or enforced isolation of travelers solely or partially on account of actual, perceived, or suspected HIV status is discriminatory. The same standard of protection shall be accorded to migrants, visitors, and residents who are not Filipino citizens;

(d) Restrictions on Shelter. - Restrictions on housing or lodging, whether permanent or temporary, solely or partially on the basis of actual, perceived, or suspected HIV status;

(e) Prohibition from Seeking or Holding Public Office. - Prohibition on the right to seek an elective or appointive public office solely or partially on the basis of actual, perceived, or suspected HIV status;

(f) Exclusion from Credit and Insurance Services. - Exclusion from health, accident or life insurance, or credit and loan services, including the extension of such loan or insurance facilities, of an individual solely or partially on the basis of actual, perceived, or suspected HIV status: Provided, That the PLHIV has not concealed or misrepresented the fact to the insurance company or loan or credit service provider upon application;

(g) Discrimination in Hospitals and Health Institutions. - Denial of health services, or being charges with a higher fee, on the basis of actual, perceived or suspected HIV status is discriminatory act and is prohibited;

(h) Denial of Burial Services. Denial of embalming and burial services for a deceased person who had HIV and AIDS or who was known, suspected, or perceived to be HIV-positive;

(i) Act of Bullying. - Bullying in all forms, including name-calling, upon a person based on actual, perceived, or suspected HIV status, including bullying in social media and other online portals; and

(j) Other similar or analogous discriminatory acts.1avvphi1

Section 50. Penalties. -

(a) Any person who commits the prohibited act under Section 22 of this Act on misinformation on HIV and AIDS shall, upon conviction, suffer the penalty of imprisonment ranging from one (1) year but not more than ten (10) years a fine of not less than Fifty thousand pesos (50,000.00) but not more than Five hundred thousand pesos (P500,000.00), or both, at the discretion if the court: Provided, That if the offender is a manufacturer, importer or distributor of any drugs, devices, agents, and other health products found in violation of Section 21 of this Act may be seized and held in custody when the FDA Director-General has reasonable cause to believe facts found by him/her or an authorized officer or employee of the FDA that such health products may cause injury or prejudice to the consuming public;

(b) Any person who violates the second sentence of Section 24 of this Act on police operations vis-à-vis comprehensive health intervention for key populations shall upon conviction, suffer the penalty of imprisonment of one (1) year to five (5) years, and a fine of not less than One hundred thousand pesos (P100,000.00), but not more than Five hundred thousand pesos (P500,000.00): Provided, That the law enforcement agents found guilty shall be removed from public service;

(c) Any person who knowingly or negligently causes another to get infected with HIV in the course of the practice of profession through unsafe and unsanitary practice and procedure, or who compelled any person to undergo HIV testing without his or her consent shall, upon conviction, suffer the penalty of imprisonment of six (6) to twelve (12) years, without prejudice to the imposition of fines and administrative sanctions, such as suspension or revocation of professional licenses;

The permit or license of the business entity and the accreditation of the HIV testing centers may cancelled or withdrawn if these establishments fail to maintain safe practices and procedures as may be required by the guidelines formulated in compliance with Section 26, on blood, tissue, or organ donations, and Section 28, on medical management, surgical, and other related procedures;

(d) Any person who violates Section 41 of this Act, on the protection of HIV and AIDS service providers from harassment shall, upon conviction, suffer the penalty of imprisonment of six (6) months to five (5) years, and a fine of not less than One hundred thousand pesos (P100,000.00), but not less that Five hundred thousand pesos (P500,000.00): Provided, That if the person who violates this provision is a law enforcement agent or a public official, administrative sanctions may be imposed in addition to imprisonment and/or fine, at the discretion of the court;

(e) Any person, natural or juridical, who violates the provisions of Section 42 of this Act on health insurance and similar services shall, upon conviction, suffer the penalty of imprisonment of six (6)months to five (5) years, and/or a fine of not less than Fifty thousand (P50,000.00), at the discretion of the court, and without prejudice to the imposition of administrative sanctions such as fines, suspensions or revocation of business permit, business license or accreditation, and professional license;

(f) Any person who violates the provisions of Section 44 of this Act on confidentiality shall, upon conviction, suffer the following penalties:

(1) Six months to two (2) years of imprisonment for any person who breaches confidentiality, and/or a fine of not less than Fifty thousand pesos (P50,000.00), but not more than One hundred fifty thousand pesos (P150,000.00), at the discretion of the court;

(2) Two years and one (1) day to five (5) years of imprisonment for any person who causes the mass dissemination of the HIV status of a person, including spreading the information online or making statements to the media, and/or a fine of not less than One hundred fifty thousand pesos (P150,000.00), but not more than Three hundred fifty thousand pesos (P350,000.00), at the discretion of the court; and

(3) Five years and one (1) day to seven (7) years of imprisonment for any health professional, medical instructor, worker, employer, recruitment agency, insurance company, data encoder, and other custodian of any medical record, file, data, or test result who breaches confidentiality, and/or a fine of not less than Three hundred fifty thousand pesos (P350,000.00), but not more than Five hundred thousand pesos (P500,000.00), at the discretion of the court.

These penalties are without prejudice to any administrative sanction or civil suit that may be brought against persons who violate confidentiality under this Act.1âwphi1

(g) Any person who shall violate any of the provisions in Section 49 on discriminatory acts and practices shall, upon conviction, suffer the penalty of imprisonment of six (6) months to five (5) years, and/or a fine of not less than Fifty thousand pesos (P50,000.00), but not more than Five hundred thousand (P500,000.00), at the discretion of the court, and without prejudice to the imposition of administrative sanctions such as fines, suspension or revocation of business permit, business license or accreditation, and professional license; and

(h) Any person who has obtained knowledge of confidential HIV and AIDS information and uses such information to malign or cause damage injury, or loss to another person shall face liability under Articles 19, 20, 21 and 26 of the new Civil Code of the Philippines and relevant provisions of Republic Act No. 10173, otherwise known as the "Data Privacy Act of 2012".

If the offender is a corporation, association, partnership or any other juridical persons, the penalty of imprisonment shall be imposed upon the responsible officers and employees, as the case may be, who participated in, or allowed by their gross negligence, the commission on the crime, and a fine shall be imposed jointly and severally on the juridical person and the responsible officers and/or employees. Furthermore, the court may suspend or revoke its license or business permit.

If the offender is an alien, he/she shall, in addition to the penalties prescribed herein, be deported without further proceedings after serving penalties herein prescribed.

If the offender is a public official or employee, he/she shall, in addition to the penalties herein, suffer perpetual or temporary absolute disqualification from office, as the case may be.

Section 51. Penalties Collected. - The penalties collected pursuant to this section shall be put into a special fund to be administered by the PNAC, and shall be use for initial interventions required to address gaps in the national response on the part of government agencies and its partners from civil society and international organizations in accordance with Section 5(l) of this Act.

ARTICLE VIII FINAL PROVISIONS

Section 52. Appropriations. The amount needed for the initial implementation of this Act shall be charged against the appropriations for the DOH.1âwphi1 Thereafter, such sums as may be necessary for the continued implementation of this Act shall be included in the annual General Appropriations Act.

The DBM, in coordination with the Department of Finance (DOF) and the DOH, and other relevant government agencies, shall consider the incidence of HIV and AIDS, in determining the annual appropriations for the implementation of thus Act in accordance with the AMTP. A separate budget item in the annual appropriations of the LGUs shall be allocated for their action plans specified in this Act.

The funding requirement needed to provide for the health insurance package and other services for the PLHIV as stated in Section 42 hereof shall be charged against the PhilHealth's corporate funds.

The funding needed to upgrade or construct government administered HIV testing and treatment centers shall be funded from the revenues of the sin tax under Republic Act No. 8424, otherwise known as the "National Internal Revenue Code", as amended by Republic Act No. 10351 and shall be prioritized under the Health Facilities Enhancement Programs of the DOH.

The funds to be appropriated for the operations of the PNAC shall be a distinct and separate budget item from the regular appropriations for the DOH, and shall be administered by the Secretary of Health. In no circumstances shall the appropriations, savings, and other resources of the PNAC be realigned to the programs and projects of the DOH or any other government agency, unless such program or projects is related to the implementation of the provisions under this Act.

Section 53. Transitory Provision. - The personnel designated by the DOH as Secretariat of the PNAC under Section 7 of this Act shall be absorbed as permanent personnel to fill the positions of the Secretariat as provided in this Act.

Section 54. Implementing Rules and Regulations. The PNAC within ninety (90) days from the effectivity of this Act shall promulgate the necessary implementing rules and regulations for the effective implementation of the provisions of this Act.

Section 55. Repealing Clause. - Republic Act No. 8504, otherwise known as the "Philippine AIDS Prevention and Control Act of 1998", is hereby repealed.

All decrees, executive orders, proclamations, and administrative regulations or parts thereof, particularly in Act No. 3815, otherwise know as the "Revised Penal Code", as amended, Republic Act No. 8353, otherwise known as the "Anti-Rape Law of 1997", Executive Order No. 209, otherwise known as the "Family Code of the Philippines", Republic Act No. 7719, otherwise known as the National Blood Services Act of 1994", and Republic Act No. 7170, otherwise known as the "Organ Donation Act of 1991", inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

Section 56. Separability Clause. - If any provision or part of this Act declared unconstitutional, the remaining parts or provisions not affected shall remain in full force and effect.

Section 57. Effectivity. - This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in a newspaper of general circulation.

December 20, 2018

An Act Institutionalizing Telecommuting as An Alternative Work Arrangement for Employees in the Private Sector

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Short Title. - This Act shall be known as the "Telecommuting Act".

Section 2. Declaration of Policy. - It is hereby declared the policy of the State to affirm labor as a primary social economic force. To this end, it shall protect the rights of workers and promote their welfare, especially in the light of technological development that has opened up new and alternative avenues for employees to carry out their work such as telecommuting, and other flexible work arrangements.

Section 3. Telecommuting Defined. - As used in this Act the term "telecommuting" refers to work from an alternative workplace with the use of telecommunications and/or computer technologies.

Section 4. telecommuting Program. - An employer in private sector may offer a telecommuting program to its employees on a voluntary basis, and upon such terms and conditions as they may mutually agree upon: Provided, That such terms and conditions shall not be less than the minimum labor standards set by law, and shall include compensable work hours, minimum number of work hours, overtime, rest days, and entitlement to leave benefits. In all cases, the employer shall provide the telecommuting employee with relevant written information in order to adequately apprise the individual of the terms and conditions of the telecommuting program, and the responsibilities of the employee.

Section 5. Fair Treatment. - The employer shall ensure that the telecommuting employees are given the same treatment as that of comparable employees and are given the same treatment as that of comparable employees working at the time employer's premises. All telecommuting employee shall:

(a) Receive a rate of pay, including overtime and night shift differential, and other similar monetary benefits not lower than those provided in applicable laws, and collective bargaining agreements.

(b) Have the right to rest periods, regular holidays, and special nonworking days.

(c) Have the same or equivalent workload and performance standards as those of comparable workerat the employer's premises.

(d) Have the same access to training and career development opportunities as those of comparable workers at the employer's premises, and be subject to the same appraisal policies covering these workers.

(e) Receive appropriate training on the technical equipment at their disposal, and the characteristics and conditions of telecommuting.

(f) Have the same collectible rights as the workers at the employer's premises, and shall not be barred from communicating with workers' representatives.1âwphi1

The employer shall also ensure that measures are taken to prevent the telecommuting employee from being isolated from the rest of the working community in the company by giving the telecommuting employee the opportunity to meet with colleagues on a regular basis, and opportunity to meet with colleagues on a regular basis, and allowing access to company information.

Section 6. Data Protection. - The employer shall be responsible for taking the appropriate measures to ensure the protection of data used and processed by the telecommuting employee for professional purposes. The employer shall inform the telecommuting employee of all relevant laws, and company rules concerning data protection. The telecommuting employee shall ensure that confidential and proprietary information are protected at all times.

For this purpose, the provisions of the Data Privacy Act of 2012 shall have suppletory effect.

Section 7. Administration. - The parties to a telecommuting work arrangement shall be primarily responsible for its administration. In case of differences in interpretation, the following guidelines shall be observed:

(a) The differences shall be treated as grievances under the applicable grievance mechanism of the company.1âwphi1

(b) If there is no grievance mechanism or if the mechanism is inadequate, the grievance shall be referred to the regional office of the Department of Labor and Employment (DOLE) which has jurisdiction over the workplace for conciliation.

(c) To facilitate the resolution of grievances, employers shall keep and maintain, as part of their records, the documents proving that the telecommuting work arrangement was voluntarily adopted.

Section 8. Telecommuting Pilot Program. - The DOLE shall establish and maintain a telecommuting pilot program in select industries which shall last for a period of not more than three (3) years. The said agency shall be responsible for baselining, scoping and profiling research work prior to implementation, regular quarterly monitoring, and evaluation. At the end of the program, the DOLE shall submit a report to Congress on its findings.

Section 9. Implementing Rules. - Within sixty (60) days from the effectivity of this Act, the Secretary of Labor and Employment shall in consultation with the National Tripartite Industrial Peace Council, and relevant stakeholders issue the appropriate implementing rules and regulations of this Act.

Section 10. Separability Clause. - If any provision or part of this Act is declared invalid or unconstitutional, the remaining parts or provisions not affected shall remain in full force and effect.

Section 11. Repealing Clause. - All laws, decrees, orders, rules and regulations and other issuances or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or amended accordingly.

Section 12. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in any newspaper of general circulation.

Rules and Regulations Implementing RA No 11058

August 17, 2018

AN ACT STRENGTHENING COMPLIANCE WITH OCCUPATIONAL SAFETY AND HEALTH STANDARDS AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

CHAPTER I DECLARATION OF POLICY

SECTION 1. Declaration of Policy. - The State affirms labor as a primary social and economic force, and that a safe and healthy workforce is an integral aspect of nation building.

The State shall ensure a safe and healthful workplace for all working people by affording them full protection against all hazards in their work environment. It shall ensure that the provisions of the Labor Code of the Philippines, all domestic laws, and internationally-recognized standards on occupational safety and health are being fully enforced and complied with the employers, and it shall provide penalties for any violation thereof.

The State shall protect every worker against injury, sickness or death through safe and healthful working conditions thereby assuring the conservation of valuable manpower resources and the prevention of loss or damage to lives and properties consistent with national development goals, and wit the State's commitment to the total development of every worker as a complete human being.

The State, in protecting the safety and health of the workers, shall promote strict but dynamic, inclusive, and gender-sensitive measures in the formulation and implementation of policies and programs related to occupational safety and health.

CHAPTER II GENERAL PROVISIONS

SEC. 2. Coverage. - This Act shall apply to all establishments, projects, sites, including Philippine Economic Zone Authority (PEZA) establishments, and all other places where work is being undertaken in all branches of economic activity, except in the public sector.

The Secretary of Labor and Employment shall issue the appropriate standards of occupational and health based on the number of employees, nature of operations, and the risk or hazard involved.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Certified first-aider refers to any person trained and duly certified to administer first aid by the Philippine Red Cross or any organization authorized by the Secretary of Labor and Employment;

(b) Competency standards refer to industry-determined specification of proficiency required for effective work performance. These are expressed as outcomes with focus on workplace activity rather than training pr personal attributes, and the ability to apply new skills in new situations or changing work organization;

(c) Covered workplaces refer to establishments, projects, sites and all other places where work is being undertaken wherein the number of employees, nature of operations, and risk or hazard involved in the business, as determined by the Secretary of Labor and Employment, require compliance with the provisions of this Act;

(d) Employer refers to any person, natural or juridical, including the principal employer, contractor or subcontractor, if any, who directly or indirectly benefits from the services of the employee;

(e) Equipment refers to any machine with engine or electric motor as prime mover;

(f) General safety and health inspection refers to an examination of the work environment including the location and operation of machinery other than those covered by technical safety audits, adequacy of work space, ventilation, lighting, conditions of work environment, handling, storage or work procedures, protection facilities and other possible sources of safety and health hazards in the workplace;

(g) Imminent danger refers to a situation caused by a condition or practice in any place of employment that could reasonably be expected to lead to death or serious physical harm;

(h) Micro and Small Enterprises (MSEs) refer to establishments employing less than ten (10) employees, and establishments employing less than one hundred (100) employees, respectively;

(i) Occupational health personnel refers to a qualified first aider, nurse, dentist or physician engaged by the employer to provide occupational health services in the establishment, project, site or workplace.

(j) Occupational Safety and Health (OSH) standards refer to the Occupational Safety and Health Standards issued by the Secretary of Labor and Employment pursuant to Articles 168 and 171, Chapter 2, Title I of Book Four of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the Philippines, and such other standards as may be issued pursuant to this Act;

(k) Safety and health audit refers to a regular and critical examination of project sites, safety programs, records, and management performance on program standards on safety and health;

(l) Safety and health committee refers to a body created within the workplace tasked with the authority to monitor, inspect and investigate all aspects of the work pertaining to the safety and health of workers;

(m) Safety and health program refers to a set of detailed rules to govern the processes and practices in all economic activities to conform with OSH standards, including the personnel responsible, and penalties for any violation thereof;

(n) Safety officer refers to any employees or officer of the company trained by the Department of Labor and Employment (DOLE) and tasked by the employer to implement an occupational safety and health program, and ensure that it is in accordance with the provisions of OSH standards;

(o) Safety signage refers to any emergency, warning or danger signpost or any safety instruction using the standard colors and sizes, including the standard symbols for safety instructions and warnings in the workplace, prescribed by the DOLE; and

(p) Workplace refers to any site, or location where workers need to be or to go to by reason of their work, and which are under the direct or indirect control of the employer.

CHAPTER III DUTIES AND RIGHTS OF EMPLOYERS, WORKERS AND OTHER PERSONS

SEC. 4. Duties of Employers, Workers and Other Persons. -

(a) Every employer, contractor or subcontractor, if any, and any person who manages, controls or supervises the work being undertaken shall:

(1) Furnish the workers a place of employment free from hazardous conditions that are causing or are likely to cause death, illness or physical harm to workers;

(2) Give complete job safety instructions or orientation to all the workers especially to those entering the job for the first time, including those relating to familiarization with their work environment;

(3) Inform the workers of the hazards associated with their work, health risks involved or to which they are exposed to, preventive measures to eliminate or minimize the risks, and steps to be taken in cases of emergency;

(4) Use only approved devices and equipment for the workplace;

(5) Comply with OSH standards including training, medical examination and, where necessary, provision of protective and safety devices such as personal protective equipment (PPE) and machine guards;

(6) Allow workers and their safety and health representative to participate actively in the process of organizing, planning, implementing and evaluating the safety and health program to improve safety and health in the workplace; and

(7) Provide, where necessary, for measures to deal with emergencies and accidents including first-aid arrangements.

(b) Every worker shall participate in ensuring compliance with OSH standards in the workplace. The worker shall make proper use of all safeguards and safety devices furnished for the worker's protection and that of others, and shall observe instructions to prevent accidents or imminent danger situations in the workplace. The worker shall observe the prescribed steps to be taken in cases of emergency.

The worker shall report to the supervisor any work hazard that may be discovered in the workplace.

(c) It shall be the duty of any person, including the builder or contractor who visits, builds, renovates or installs devices or conducts business in any establishment or workplace, to comply with the provisions of this Act and all other regulations issued by the Secretary of Labor and Employment.

(d) Whether two (2) or more undertakings are engaged in activities simultaneously in one (1) workplace, it shall be the duty of all engaged to collaborate in the application of OSH standards and regulations.

SEC. 5. Workers' Right to Know. - The right to safety and health at work shall be guaranteed. All workers shall be appropriately informed by the employer about all types of hazards in the workplace, provided access to training and education on chemical safety, and to orientation on the data sheet of chemical safety, electrical safety, mechanical safety, and ergonomic safety.

SEC. 6. Workers' Right to Refuse Unsafe Work. - The worker has the right of refusal to work without threat or reprisal from the employer if, as determined by the DOLE, an imminent danger situation exists in the workplace that may result in illness, injury or death, and corrective actions to eliminate the danger have not been undertaken by the employer.

SEC. 7. Workers' Right to Report Accidents. - Workers and their representatives shall have the right to report accidents, dangerous occurrences, and hazards to the employer, to the DOLE and to other concerned government agencies exercising jurisdiction as the competent authority in the specific industry or economic activity.

SEC. 8. Workers' Right to Personal Protective Equipment (PPE). - Every employer, contractor, or subcontractor, if any, shall provide his workers, free of charge, protective equipment for their eyes, face, hands and feet, and lifeline, safety belt or harness, gas or dust respirators or masks, and protective shields whenever necessary by reason of the hazardous work process or environment, chemical, radiological, mechanical and other irritants or hazards capable of causing injury or impairment in the function of any part of the body through absorption, inhalation or physical contact. The cost of the PPE shall be part of the safety and health program which is a separate pay item pursuant to Section 20 of this Act.

All PPE shall be of the appropriate type as tested and approved by the DOLE based on its standards. The usage of PPE in all establishments, projects, sites and all other places where work is being undertaken shall be based on the evaluation and recommendation of the safety officer.

SEC. 9. Safety Signage and Devices. - All establishments, projects, sites and all other places where work is being undertaken shall have safety signage and devices to warn the workers and the public of the hazards in the workplace. Safety signage and devices shall be posted in prominent positions at strategic locations in a language understandable to all, and in accordance with the standards set by the DOLE.

SEC. 10. Safety in the Use of Equipment. - In relation to the use of equipment, the employer, contractor or subcontractor, if any, must comply with the DOLE requirements in the different phases of the company or project operation including the transport to and from the establishment, project, site or place where work is being undertaken.

SEC. 11. Occupational Safety and Health Information. - Workers in all establishments, projects, sites and all other places where is being undertaken shall be provided adequate and suitable information by the employer, contractor or subcontractor, if any, on safety and health hazards, and the appropriate measures, including the probable location of workers, for the prevention, control and protection against those hazards.

CHAPTER IV COVERED WORKPLACE

SEC. 12 Occupational Safety and Health (OSH) Program. - Covered workplace shall have a safety and health program including the following policies, guidelines or information:

(a) Statement of commitment to comply with OSH requirements;

(b) General safety and health, including a drug-free workplace;

(c) Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS)/tuberculosis/hepatitis prevention and control;

(d) Company or project details;

(e) Composition and duties of the safety and health committee;

(f) Occupational safety and health personnel and facilities;

(g) Safety and health promotion, training and education;

(h) Conduct of toolbox meetings;

(i) Accident/incident/illness investigation, recording and reporting;

(j) Provision and use of PPE;

(k) Provision of safety signage;

(l) Dust control and management, and regulations on activities such as building of temporary structures, and lifting and operation of electrical, mechanical, communication systems and other equipment;

(m) Provision of workers' welfare facilities;

(n) Emergency preparedness and response plan;

(o) Waste management system; and

(p) Prohibited acts and penalties for violations.

The safety and health program shall be prepared and executed by the employer, contractor or subcontractor, if any, in consultation with the workers and their representatives, and shall be submitted to the DOLE which shall approve, disapprove or modify the same according to existing laws, rules and regulations, and other issuances.

The approved safety and health program shall be communicated and be made readily available to all persons in the workplace.

SEC. 13. Occupational Safety and Health (OSH) Committee. - To ensure that the safety and health program is observed and enforced, a safety and health committee shall be organized in covered workplace composed of the following:

(a) Employer or a representative as the chairperson, ex officio;

(b) Safety officer of the company or project as the secretary;

(c) Safety officers representing the contractor or subcontractor, as the case may be, as members;

(d) Physicians, nurses, certified first-aiders, and dentists as members, ex officio, if applicable; and

(e) Workers' representatives who shall come from the union if the workers are organized or elected by the workers through a simple majority vote if they are unorganized, as members.

The committee shall effectively plan, develop, oversee and monitor the implementation of the safety and health program.

SEC. 14. Safety Officer. - To ensure that a safety and health program is duly followed and enforced, covered workplaces shall have safety officers who shall:

(a) Oversee the overall management of the safety and health programs;

(b) Frequently monitor and inspect any health or safety aspect of the operation being undertaken;

(c) Assist government inspectors in the conduct of safety and health inspection at any time whenever work is being performed or during the conduct of an accident investigation; and

(d) Issue work stoppage orders when necessary.

The number and qualification of safety officers shall be proportionate to the total number of workers and equipment, the size of the work area and such other criteria as may be prescribed by the DOLE.

In the case of a contractor or subcontractor, a safety officer must be deployed at each specific area of operations to oversee the management of the safety and health program of its own workforce.

SEC. 15. Occupational Health Personnel and Facilities. - Covered workplace shall have qualified occupational health personnel such as physicians, nurses, certified first-aiders, and dentists duly complemented with the required medical supplies, equipment and facilities. The number of health personnel, equipment and facilities, and the amount of supplies shall be proportionate to the total number of workers and the risk or hazard involved, the ideal ratio of which shall be prescribed by the DOLE.

SEC. 16. Safety and Health Training. -

(a) All safety and health personnel shall undergo the mandatory training on basic occupational safety and health for safety officers as prescribed by DOLE.

(b) All workers shall undergo the mandatory eight (8) hours of safety and health seminar as required by the DOLE which shall include a portion on joint employer-employee orientation.

(c) All personnel engaged in the operation, erection and dismantling of equipment and scaffolds, structural erections, excavations, blasting operations, demolition, confined spaces, hazardous chemicals, welding, and flame cutting shall undergo specialized instruction and training on the said activities.

SEC. 27. Occupational Safety and Health Reports. - All employees, contractors or subcontractors, if any, shall submit all safety and health reports, and notifications prescribed by the DOLE.

SEC. 18. Workers' Competency Certification. - In order to professionalize, upgrade and update the level of competence of workers, the Technical Education and Skills Development Authority (TESDA) or the Professional Regulation Commission (PRC), as the case may be, shall establish national competency assessment and certification for critical occupations. In this regard, all critical occupations shall undergo the mandatory competency assessment and certification by the TESDA.

An occupation shall be considered critical when:

(a) The performance of a job affects the people's lives and safety;

(b) The job involved the handling of tools, equipment and supplies;

(c) The job requires a relatively long period of education and training; and

(d) The performance of the job may compromise the safety, health and environmental concerns within the immediate vicinity of the establishment.

SEC. 19. Workers' Welfare Facilities. - All establishments, projects, sites and all other places where work is being undertaken shall have the following welfare facilities in order to ensure humane working conditions:

(a) Adequate supply of safe drinking waters;

(b) Adequate sanitary and washing facilities;

(c) Suitable living accommodation for workers as may be applicable; and

(d) Separate sanitary, washing and sleeping facilities for men and women workers as may be applicable.

SEC. 20. Cost of Safety and Health Program. - The total cost of implementing a duly approved safety and health program shall be an integral part of the operations cost. It shall be a separate pay item in construction and in all contracting or subcontracting arrangements.

CHAPTER V JOINT AND SOLIDARY LIABILITY

SEC. 21. Employer's Responsibility and Liability. - The employer, project owner, general contractor, contractor or subcontractor, if any, and any person who manages, controls or supervises the work being undertaken shall be jointly and solidary liable for compliance of this Act.

CHAPTER VI ENFORCEMENT OF OCCUPATIONAL SAFETY AND HEALTH STANDARDS

SEC. 22. Visitorial Power of the Secretary of Labor and Employment. - Pursuant to Article 128 of the Labor Code of the Philippines and other applicable laws, the Secretary of Labor and Employment or the Secretary's authorized representatives shall have the authority to enforce the mandatory occupational safety and health standards in all establishments and conduct, together with representatives from the labor and the employer sectors, an annual spot audit on compliance with OSH standards. The Secretary or the Secretary's duly authorized representatives can enter workplaces at any time of the day or night where work is being performed to examine records and investigate facts, conditions or matters necessary to determine compliance with the provisions of this Act.

No person or entity shall obstruct, impede, delay or otherwise render ineffective the orders of the Secretary of Labor and Employment or the Secretary's duly authorized representatives issued pursuant to the authority granted under Article 128 of the Labor Code of the Philippines, and no lower court or entity shall issue temporary or permanent injunction or restraining order or otherwise assume jurisdiction over any cases involving the enforcement orders.

The Secretary of Labor and Employment may likewise order stoppage of work or suspension of operations of any unit or department of an establishment when noncompliance with law or implementing rules and regulations poses grave and imminent danger to the health and safety of workers in the workplace.

The procedure for inspecting work premises, notifying employers of violations, and issuing compliance or stoppage orders shall be pursuant to the procedure laid down in Article 128 of the Labor Code of the Philippines as implemented through relevant regulations issued by the DOLE on administration and enforcement of labor laws. The inspector or person authorized by the DOLE to enforce compliance with OSH standards shall present proper identification upon request, and such inspector or person shall only act within the authority or direction given by the Secretary of Labor and Employment.

The Secretary of Labor and Employment or the Secretary's duly authorized representatives shall inspect establishments and workplaces regardless of the size and nature of operation. Any kind of self-assessment shall not take the place of labor inspection conducted by the DOLE. However, chartered cities may be allowed to conduct industrial safety inspections of establishments within their jurisdiction in coordination with the DOLE. Provided, That they have adequate facilities and competent personnel for the purpose as determined by the DOLE and subject to national standards established by the latter.

SEC. 23. Payment of Workers During Work Stoppage Due to Imminent Danger. - If stoppage of work due to imminent danger occurs as a result of the employer's violation or fault, the employer shall pay the workers concerned their wages during the period of such stoppage of work or suspension of operations. For purposes of payment of wages and any other liabilities arising from a work stoppage order, the employer is presumed a party at fault if the work stoppage order is issued secondary to an imminent danger situation which would imperil the lives of the workers.

SEC. 24. Delegations of Authority. - The authority to enforce mandatory OSH standards may be delegated by the Secretary of Labor and Employment to a competent government authority.

SEC. 25. Standards Setting Power of the Secretary of Labor and Employment. - The Secretary of Labor and Employment shall, in consultation with the other concerned government agencies and relevant stakeholders, by appropriate orders, set and enforce mandatory OSH standards to eliminate or reduce occupational safety and health hazards depending on the number of employees of the establishment, the nature of its business operations, and the risk or hazard involved.

The Secretary shall also institute new, and update existing programs to ensure safe and healthy working conditions in all workplaces especially in hazardous industries such as mining, fishing, construction, and the maritime industry.

SEC. 26. Employee's Compensation Claim. - A worker may file claims for compensation benefit arising out of work-related disability or death. Such claims shall be processed independently of the finding of fault, gross negligence or had faith of the employer in a proceeding instituted for the purpose.

SEC. 27. Incentives in Employers. - There shall be an established package of incentives under such rules and regulations as may be promulgated by the DOLE to qualified employers to recognize their efforts toward ensuring compliance with OSH and general labor standards such as OSH training packages, additional protective equipment, technical guidance, recognition awards and other similar incentives.

SEC. 28. Prohibited Act. - The following are considered as prohibited acts:

(a) Willful failure or refusal of an employer, contractor or subcontractor to comply with the required OSH standards or with a compliance order issued by the Secretary of Labor and Employment or by the Secretary's authorized representative shall make such employer, contractor, or subcontractor liable for an administrative fine not exceeding One hundred thousand pesos (P100,000.00) per day until the violation is corrected, counted from the date the employer or contractor is notified of the violation or the date the compliance order is duly served on the employer. The amount of fine imposed shall depend on the frequency or gravity of the violation committed or the damage caused: Provided, however, That the maximum amount shall be imposed only when the violation exposes the workers to a risk of death, serious injury or serious illness.

(b) An employer, contractor or subcontractor who willfully fails or refuses to comply with the required OSH standards or with a duly issued compliance order, and engages in any of the following acts to aid, conceal or facilitate such noncompliance shall be liable for a maximum of One hundred thousand pesos (P100,000.00) administrative fine separate from the daily imposed above:

(1) Repeated obstruction, delay or refusal to provide the Secretary of Labor and Employment or any of its authorized representatives access to the covered workplace or refusal to provide or allow access to relevant records and documents or obstruct the conduct of investigation of any fact necessary in determining compliance with OSH standards.

(2) Misinterpretation in relation to adherence to OSH standards knowing such statement, report or record submitted to the DOLE to be false in any material aspect;

(3) Making retaliatory measures such as termination of employment, refusal to pay, reducing wages and benefits or in any manner discriminates against any worker who has given information relative to the inspection being conducted.

For this purpose, the Secretary of Labor and Employment, in consultation with relevant stakeholders, shall issue a list of offenses with corresponding reasonable administrative fines depending on the severity, frequency and damage caused without prejudice to the filing of a criminal or a civil case in the regular courts, as the case may be.

The fine collected shall be used for the operation of occupational safety and health initiatives including occupational safety and health training and education and other occupational safety and health programs.

CHAPTER VII MISCELLANEOUS PROVISIONS

SEC. 29. Updated DOLE Computerized Labor Law Compliance System. - The Secretary of Labor and Employment shall maintain an updated labor inspection system of computerized gathering and generation of real time data on compliance monitoring of enforcement, and a system of notification on workplace accidents and injuries.

SEC. 30. Applicability of Micro and Small Enterprises (MSEs). - Specific to MSEs, the DOLE shall develop OSH core compliance standards to ensure safe and healthy workplaces. All MSEs shall be required to implement the prescribed standards for housekeeping, materials handling and storage, electrical and mechanical safety, chemical safety, emergency preparedness, fire safety and PPE, and to monitor hazards regularity.

SEC. 31. Inter-Governmental Coordination and Cooperation. - The DOLE shall institute a mechanism for coordination with the Department of Environment and Natural Resources, Department of Energy, Department of Transportation, Department of Agriculture, Department of Public Works and Highways, Department of Trade and Industry, Department of the Interior and Local Government, Department of Health, Department of Information and Communications Technology, PEZA and all other government agencies, including local government units, within sixty (60) days from the issuance of the implementing rules and regulations of this Act. They shall regularly convene to monitor the effective implementation of this Act as well as related programs and projects that are established to prevent and eliminate the incidence of injury, sickness or death in all workplaces.

SEC. 32. Implementing Rules and Regulations. - The Secretary of Labor and Employment, in coordination with agencies concerned, shall formulate the rules and regulations within the ninety (90) days after the effectivity of this Act.

SEC. 33. Separability Clause. - If any part, section or provision of this Act shall be held invalid or unconstitutional, the other provisions not affected by such declaration shall remain in full force and effect.

SEC. 34. Repealing Clause. - All laws, acts, decrees, executive orders, rules and regulations or other issuances or parts thereof which are inconsistent with this Act are hereby modified or repealed.

SEC. 35. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

This Act which is consolidation of House Bill No. 64 and Senate Bill No. 1317 was passed by the House of Representatives and the Senate on May 22, 2018.

Approved: AUG 17 2018

Rules and Regulations Implementing the Anti-Age Discrimination in Employment Act

July 21, 2016

AN ACT PROHIBITING DISCRIMINATION AGAINST ANY INDIVIDUAL IN EMPLOYMENT ON ACCOUNT OF AGE AND PROVIDING PENALTIES THEREFOR

SECTION 1. Short Title. — This Act shall be known as the "Anti-Age Discrimination in Employment Act".

SECTION 2. Declaration of Policies. — The State shall promote equal opportunities in employment for everyone. To this end, it shall be the policy of the State to:

(a) Promote employment of individuals on the basis of their abilities, knowledge, skills and qualifications rather than their age.

(b) Prohibit arbitrary age limitations in employment.

(c) Promote the right of all employees and workers, regardless of age, to be treated equally in terms of compensation, benefits, promotion, training and other employment opportunities.

SECTION 3. Definition of Terms. — As used in this Act:

(a) Employee refers to a person who performs professional, managerial or administrative work and is paid salaries by the employer as compensation for services rendered;

(b) Employer refers to any person, natural or juridical, employing the services of an employee or worker and shall include the government and all its branches, subdivisions and instrumentalities, all government-owned and -controlled corporations, and government financial institutions, as well as nonprofit private institutions or organizations;

(c) Job applicant refers to a person who applies for employment;

(d) Labor contractor refers to any person or an agent of that person who regularly undertakes, with or without compensation, the procurement of employees or workers for an employer, or the procurement for employees' or workers' opportunities to work for an employer;

(e) Labor organization refers to any union or association of employees or workers which exists in whole or in part for the purpose of collective bargaining or for dealing with employers concerning terms and conditions of employment;

(f) Publisher refers to any person or juridical entity engaged in the printing of information on paper and its distribution, buying or securing of airtime or space on television, radio or the internet, and other similar media; and

(g) Worker refers to a person who performs manual labor involving skilled or unskilled work, and is paid wages by the employer as compensation for services rendered.

SECTION 4. Coverage. — The provisions of this Act shall apply to all employers, labor contractors or subcontractors, if any, and labor organizations.

SECTION 5. Prohibition of Discrimination in Employment on Account of Age. — (a) It shall be unlawful for an employer to:

(1) Print or publish, or cause to be printed or published, in any form of media, including the internet, any notice of advertisement relating to employment suggesting preferences, limitations, specifications, and discrimination based on age;

(2) Require the declaration of age or birth date during the application process;

(3) Decline any employment application because of the individual's age;

(4) Discriminate against an individual in terms of compensation, terms and conditions or privileges of employment on account of such individual's age;

(5) Deny any employee's or worker's promotion or opportunity for training because of age;

(6) Forcibly lay off an employee or worker because of old age; or

(7) Impose early retirement on the basis of such employee's or worker's age.

(b) It shall be unlawful for a labor contractor or subcontractor, if any, to refuse to refer for employment or otherwise discriminate against any individual because of such person's age.

(c) It shall be unlawful for a labor organization to:

(1) Deny membership to any individual because of such individual's age;

(2) Exclude from its membership any individual because of such individual's age; or

(3) Cause or attempt to cause an employer to discriminate against an individual in violation of this Act.

(d) It shall be unlawful for a publisher to print or publish any notice of advertisement relating to employment suggesting preferences, limitations, specifications, and discrimination based on age.

SECTION 6. Exceptions. — It shall not be unlawful for an employer to set age limitations in employment if:

(a) Age is a bona fide occupational qualification reasonably necessary in the normal operation of a particular business or where the differentiation is based on reasonable factors other than age;

(b) The intent is to observe the terms of a bona fide seniority system that is not intended to evade the purpose of this Act;

(c) The intent is to observe the terms of a bona fide employee retirement or a voluntary early retirement plan consistent with the purpose of this Act:Provided, That such retirement or voluntary retirement plan is in accordance with the Labor Code, as amended, and other related laws; or

(d) The action is duly certified by the Secretary of Labor and Employment in accordance with the purpose of this Act.

SECTION 7. Penalty. — Any violation of this Act shall be punished with a fine of not less than fifty thousand pesos (P50,000.00) but not more than five hundred thousand pesos (P500,000.00), or imprisonment of not less than three (3) months but not more than two (2) years, or both, at the discretion of the court. If the offense is committed by a corporation, trust, firm, partnership or association or other entity, the penalty shall be imposed upon the guilty officer or officers of such corporation, trust, firm, partnership or association or entity.

SECTION 8. Education and Research Programs. — The Department of Labor and Employment (DOLE) shall:

(a) Conduct studies and researches on minimizing impediments to the employment of older persons, and furnish such information to employers, labor groups, and the general public; and

(b) Promote programs, in coordination with public and private agencies, that will further enhance the knowledge and skills of every individual regardless of age.

SECTION 9. Implementing Rules and Regulations. — The DOLE shall have the authority to investigate and require the keeping of records necessary for the administration of this Act. Within ninety (90) days from the effectivity of this Act, the Secretary of Labor and Employment shall formulate the necessary rules and regulations to implement the provisions of this Act.

SECTION 10. Separability Clause. — Should any provision of this Act be declared unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

SECTION 11. Repealing Clause. — All existing laws, presidential decrees, executive orders, proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

SECTION 12. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation.

Approved:

* Lapsed into Law on July 21, 2016 without the signature of the President in accordance with Article VI, Section 27 (1) of the Constitution.

Rules and Regulations Implementing the JobStart Philippines Act

June 29, 2016

AN ACT INSTITUTIONALIZING THE NATIONWIDE IMPLEMENTATION OF THE JOBSTART PHILIPPINES PROGRAM AND PROVIDING FUNDS THEREFOR

SECTION 1. Short Title. — This Act shall be known as the "JobStart Philippines Act".

SECTION 2. Declaration of Policy. — It is the policy of the State to promote full employment, equality of employment opportunities for all, and afford full protection to labor. The Philippines subscribes to the International Labor Organization's (ILO) Decent Work Agenda. As a signatory to ILO Convention 88, the State shall promote the establishment of Public Employment Service Office (PESO) as the primary institution at the local level that will be responsible for implementing a variety of active labor market programs including job search assistance, training, and placement for the unemployed, particularly the young jobseekers.

SECTION 3. Statement of Objectives. — The JobStart Philippines Program aims to shorten the youth's school to work transition by enhancing the knowledge and skills acquired in formal education or technical training by job seekers in order for them to become more responsive to the demands of the labor market. With the participation of the private sector and other stakeholders, the program will also help develop the life skills of the youth, including those relevant to the values of professionalism and work appreciation, and provide trainees with a conducive and safe work environment or venue where they can apply relevant theories and code of ethics. Another objective of the program is to further improve the delivery of employment facilitation services of the PESOs.

SECTION 4. Definition of Terms. — For purposes of this Act, the following terms are hereby defined as follows:

(a) Employer refers to an establishment or an enterprise which may be a company, sole proprietorship, partnership, corporation, or any other legal entity registered under relevant laws that may provide a venue for training and placement of JobStart trainees;

(b) Internship stipend refers to the amount which the JobStart trainee receives from the participating employer for the duration of the internship period;

(c) JobStart refers to the Department of Labor and Employment's (DOLE) program designed to enhance the employability of at-risk youth to improve their integration into productive employment through the provision of full cycle employment facilitation services including job search assistance, free technical and life skills trainings, placement in internships, and job referral from the PESOs;

(d) JobStart graduate refers to a JobStart trainee who has completed all the program services and undergone all stages of the JobStart program;

(e) JobStart internship refers to the practical learning of a JobStart trainee in a regular work environment with a participating employer for a period of up to three (3) months, as determined by the latter;

(f) JobStart life skills training refers to a ten (10)-day training designed to holistically develop the behavior, attitude, and values of JobStart trainees, which as a result will enable them to plan better their career path and deal effectively with the demands and challenges of everyday life and work;

(g) JobStart technical training refers to the technology-based theoretical instruction for a period of up to three (3) months in a lecture area, and hands-on exercises in a laboratory or a workshop within the premises of a technical training provider, either in a technical vocational institute (TVI) registered with the Technical Education and Skills Development Authority (TESDA), in-house in a participating employer, or within the available facilities of local government units (LGUs);

(h) JobStart trainee refers to an eligible JobStart registrant selected to participate in the program;

(i) JobStart unit refers to the office established and managed by the Bureau of Local Employment (BLE) and regional offices of the DOLE, and the participating PESOs to implement and oversee the JobStart program;

(j) Technical training certificate refers to a certification that shall be jointly issued by the DOLE, the TESDA, and the participating employer after program completion and assessment of the JobStart trainee's competencies to attest the skills acquired by the JobStart trainee. The certificate shall contain a list of the units of competency and qualification acquired;

(k) Training allowance refers to the amount which the JobStart trainee receives from the JobStart unit for the duration of the life skills and technical training; and

(l) Training plan refers to a written plan that specifies the set of skills and competencies to be acquired by the JobStart trainee from technical training to internship period. The training plan will describe the training curriculum or modules to be used, the training schedule, venue, facilities, cost, as well as the training's monitoring and evaluation framework. The training plan shall be prepared by the employer and approved by the JobStart unit with technical advice from the TESDA.

SECTION 5. Qualifications of a JobStart Trainee. — To qualify as a JobStart trainee, a person shall:

(a) Be a Filipino citizen;

(b) Be eighteen (18) to twenty-four (24) years of age at the time of the registration period. Those who are seventeen (17) years old may also register provided that they will be eighteen (18) years old at the time of the technical training;

(c) Have at least reached high school level;

(d) Not be employed, studying, or undergoing training at the time of the registration; and

(e) Have no work experience or have less than one (1) year of accumulated work experience.

SECTION 6. Program Components. — The JobStart Program shall include full employment facilitation services such as registration, client assessment, life skills training with one-on-one career coaching, technical training, job matching, and referrals to employers either for further technical training, internship, or for decent employment.

SECTION 7. Status of JobStart Trainees. — The JobStart registrant shall be considered as a trainee and not as an employee of the participating employer for the duration of the training program. JobStart graduates shall be given preference in the hiring of workers by the participating employers. After life skills training, the PESO shall assess and determine whether the JobStart trainee is ready to be referred for decent employment or would require further training.

SECTION 8. Role of the JobStart Unit. — The DOLE shall establish a JobStart unit at the BLE and in every DOLE regional office. The JobStart unit shall provide the employer the training costs, administrative costs, or other fees, if any, as specified under a memorandum of agreement between the DOLE and the employer. It shall also approve training plans in coordination with the appropriate PESOs and with technical advice from the TESDA.

SECTION 9. The Role of the DOLE. — The DOLE shall be the executing agency of the JobStart Philippines Program. The BLE shall serve as the program manager that shall provide the necessary technical and administrative assistance to concerned regional and field offices, and PESOs. The DOLE regional and field offices shall supervise and monitor the implementation of the JobStart activities in their respective jurisdiction. The DOLE shall conduct capacity-building activities to train the PESOs in adopting the new model on employment facilitation services, particularly on career coaching and life skills.

SECTION 10. Payment of Allowances and Stipends. — The trainees shall receive a daily training allowance from the JobStart unit beginning from the life skills training stage to the technical training stage. The amount of the training allowance shall be determined by the DOLE.

Upon entry into the internship stage, the participating employer shall provide the JobStart trainees with a daily stipend of not less than seventy-five percent (75%) of the prevailing minimum wage in the city or municipality where the establishment is located. The amount of the stipend shall be based on the trainee's actual attendance. Absences, tardiness or undertime incurred shall be deducted therefrom in accordance with the training plan.

Training allowances and stipends shall be paid at least once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.

SECTION 11. JobStart Training Period. — The JobStart training period shall be divided into three (3) phases, namely:

(a) JobStart Life Skills Training:

(1) The life skills training shall be conducted by the PESOs with technical assistance from the DOLE for a period of ten (10) days, with at least one life skill being taught in each day of the program.

(2) The JobStart life skills training modules shall be developed by the DOLE in consultation with the DepEd, CHED, TESDA and other stakeholders.

(3) The JobStart trainee shall receive a daily allowance for the duration of the life skills training to be provided by the PESOs with funding support from the DOLE.

(b) JobStart Technical Training:

(1) The JobStart technical training shall be for a period of up to three (3) months. Upon the recommendation of the participating employer and as approved by the PESO, a JobStart trainee can skip or be exempted from undergoing the technical training and transition directly to internship stage. The technical training period may also be less than three (3) months depending on the skills and competencies that the JobStart trainee must achieve and as determined by the participating employer.

(2) The JobStart trainee shall receive a training allowance from the JobStart unit for the duration of the technical training.

(3) The JobStart technical training shall allow the trainee to acquire a qualification or a set of competencies aligned with the appropriate TESDA training regulations, as applicable, and be qualified to get a National Certificate (NC) or Certificate of Competency (COC). The TESDA shall set the mechanisms and guidelines for the evaluation of competencies not covered by existing training regulations.

(c) JobStart Internship:

(1) The JobStart internship period shall not be more than three (3) months or six hundred (600) hours. The total daily training hours shall be eight (8) hours exclusive of not less than sixty (60) minutes time off for the regular meals.

(2) The internship period may be beyond eight (8) hours a day: Provided, That said overtime shall not exceed two (2) hours a day. The JobStart trainee shall be paid for the overtime stay an additional stipend equivalent to the daily internship stipend plus at least twenty-five percent (25%) thereof.

(3) In case of night shift training, the JobStart trainee shall be entitled to a night shift differential pay of not less than ten percent (10%) of the internship stipend for each hour of training between ten o'clock in the evening and six o'clock in the morning.

(4) A JobStart trainee may be trained during regular holidays: Provided, That the trainee is willing to and will be compensated twice the daily internship stipend on a regular holiday.

(5) The time spent on overtime stay shall be duly credited to the trainee's number of training hours.

(6) A JobStart trainee shall no longer be required to undergo a probationary period at the end of the internship phase should the trainee be hired in the same establishment upon completion of the program: Provided, That said trainee also completed his or her technical training within the training plan prepared by the same participating employer.

SECTION 12. Entitlement to Other Benefits and Incentives. — Notwithstanding the LGU or participating employer's preference to provide additional or other health services or insurance support, the JobStart trainees shall be covered with a basic accident insurance for the duration of the program to be paid by the DOLE. The participating employer shall be reimbursed by the DOLE and disbursed through the PESO with the cost of the JobStart trainee's pre-training and employment medical examinations. On the other hand, the LGU shall exempt the JobStart trainees from securing a work permit.

SECTION 13. Duties and Responsibilities of the JobStart Trainee. — The JobStart trainee shall exert every effort to acquire the abilities, values, and knowledge necessary to achieve the purpose of the training. Towards this end, the trainee shall:

(a) Submit to the PESO the following documents:

(1) NSO birth certificate or any government issued identification card with the applicant's birth date;

(2) High school and college diploma, if applicable;

(3) Transcript of records of highest educational level attained; and

(4) Training certificates or a national certification issued by the TESDA, if applicable.

(b) Enter into either a training or service contract with the participating employer;

(c) Report for training or work in the establishment based on the schedule indicated in the training or work contract;

(d) Perform tasks and activities indicated in the training plan;

(e) Use tools, instruments, machines and other equipment with due care;

(f) Not reveal any business or trade secrets that have come to the trainee's knowledge in the course of the training;

(g) Adhere to the existing rules and regulations of the establishment; and

(h) Report to the PESO for an exit interview after the completion of the internship period.

SECTION 14. Participation of Employers. — An employer shall be allowed to take in JobStart trainees only up to a maximum of twenty percent (20%) of its total workforce. The employer shall not take in the same trainee to be part of the former's engagement in a similar training program such as the Dual Training Program and the National Apprenticeship Program.

The participating employers must have the following:

(a) Legitimate business operating within the LGU's area;

(b) COC on General Labor Standards and Occupational Safety and Health (OSH) Standards;

(c) Capacity to provide, in case of an in-house arrangement, or facilitate, in case of a third-party training provider, a technical vocational education and training (TVET) to JobStart trainees, and to arrange for the disbursement of the internship stipend;

(d) Capacity to provide for up to three (3) months internship or work experience to JobStart trainees, with a commitment to pay at least seventy-five percent (75%) of the daily minimum wage for the relevant city or municipality;

(e) Capacity to develop a training plan to be learned and applied by the trainee in the establishment;

(f) Capacity to mentor and monitor a JobStart trainee's performance; and

(g) Interest and willingness to absorb or offer possible regular employment to JobStart graduates.

SECTION 15. Duties and Responsibilities of Employers. — The participating employer shall perform the following:

(a) Design and implement the training plan in partnership with a TVET institution, as applicable;

(b) Enter into either a training or work contract with the JobStart trainee;

(c) Provide to the JobStart trainee practical training or work experience for a maximum period of three (3) months or six hundred (600) hours;

(d) Pay the JobStart trainee a daily stipend of not less than seventy-five percent (75%) of the daily minimum wage of the city or municipality where the establishment is located;

(e) Encourage the JobStart trainee to develop personality and professionalism and to the extent possible, protect the JobStart trainee from physical or moral danger;

(f) Submit monitoring and evaluation reports or other information on the trainee's performance as may be required by the DOLE or the PESO;

(g) Submit invoices to the PESO for reimbursement or liquidation of expenses, as the case may be, of training costs, internship stipend and other administrative costs; and

(h) Notify the PESO and the JobStart unit of a trainee's breach of contract or misconduct in the training premises prior to its decision to suspend or terminate the training.

SECTION 16. Termination of Training Contract. — Any of the following shall be a valid cause to terminate the training contract:

(a) By the employer:

(1) Habitual absenteeism of the trainee;

(2) Willful disobedience by the trainee of the establishment's rules, or insubordination of a lawful order of a superior;

(3) Theft or malicious destruction of the establishment's property or equipment by the trainee;

(4) Engaging in violence or other forms of misconduct in the training or establishment's premises by the trainee; and

(5) Inefficiency or poor training performance for a prolonged period despite warnings duly given to the trainee.

(b) By the JobStart trainee:

(1) Substandard or harmful working conditions within the establishment's premises;

(2) Cruel and inhumane treatment; and

(3) Prolonged or continuing illness.

Either party may furnish the other party a notice of intent to terminate the training contract for cause as defined in this section.

In case the training contract has been terminated, replacement of a JobStart trainee in an establishment shall be allowed subject to the cause of termination. In case the termination is caused by the employer, the JobStart trainee may still be referred to other participating employers. In case the termination is caused by the trainee's non-adherence to program guidelines, a new trainee may still be provided to the employer provided that there are other trainees available for deployment.

SECTION 17. Grievance Committee. — The Grievance Committee shall have the initial responsibility of settling differences in case of any violation of the training agreement or upon the filing of a complaint by an aggrieved party. The Grievance Committee shall be composed of the officials and representatives of the concerned DOLE regional and field offices, and PESOs which have jurisdiction over concerned establishments. The Committee shall investigate and render a decision pursuant to pertinent rules and regulations. In case of failure by the Grievance Committee to settle the issue or render a decision, or in case the complaint is against members of the Grievance Committee, the case shall be referred to the DOLE-BLE for appropriate action.

SECTION 18. Payment of Administrative Fee. — Participating employers shall receive an amount per month per JobStart trainee to cover administration cost in managing the trainee, such amount to be determined by the DOLE.

SECTION 19. Partnership with Local Government. — The LGUs, through the PESOs, shall serve as the conduit of the DOLE in implementing the program at the local level. The PESOs are expected to:

(a) Hire adequate staff to ensure the smooth implementation of the program;

(b) Organize the registration process for the program intake of registrants;

(c) Process and evaluate information of registrants and select eligible program beneficiaries;

(d) Conduct job matching and referral;

(e) Collect and review relevant financial and administrative documents and reports as necessary for the processing of the training grants to the JobStart trainees, as well as the administrative fee provided to the employer;

(f) Maintain a complete profile and record of transactions of program participants and employers; and

(g) Submit a monthly program monitoring report to the DOLE, copy furnished the concerned DOLE regional and field offices, and the office of the local chief executive.

SECTION 20. Enhancement of Labor Market Information System (LMIS). — To develop local LMIS, participating PESOs shall make use of the DOLE's Skills Registry System (SRS) to manage the records of JobStart trainees, employers, and PESO transactions. The PESO staff shall be trained in the use of the SRS and job matching.

The DOLE regional and field offices and the BLE shall establish the necessary information technology infrastructure and system to improve the collection, processing, analysis, report development, and dissemination of PESO statistics and other labor market information. Towards this end, labor market analysts shall be hired by the DOLE and the BLE to provide technical assistance in maintaining the LMIS at all levels.

SECTION 21. Oversight Committee. — An Oversight Committee shall oversee the implementation of the JobStart Program. The Committee shall be chaired by the DOLE. The Committee shall be composed of representatives from the Department of the Interior and Local Government (DILG), Department of Social Welfare and Development (DSWD), National Youth Commission (NYC), TESDA, and representatives from the youth, employer, and labor sectors. An annual progress report shall be transmitted to both Houses of Congress through the Secretary of Labor and Employment.

SECTION 22. Appropriations. — To carry out the provisions of this Act, such amount as may be necessary is hereby authorized to be appropriated from the National Treasury. Thereafter, such sums as may be necessary for the continued implementation of this Act shall be included in the General Appropriations Act as a separate item under the DOLE's budget.

SECTION 23. Penalty Clause. — Any violation of the provisions of this Act or its implementing rules and regulations shall be subject to the general penalty provided for in the Labor Code, as amended.

Employers found offering unregistered JobStart programs shall be subjected to program closure proceedings without prejudice to the filing of administrative, criminal or civil liabilities.

The DOLE Secretary may file the necessary civil and/or criminal cases as may be deemed reasonable and appropriate pursuant to this Act for any of the following causes:

(a) Fraud or deceit committed in connection with the employer's participation in the JobStart program; and

(b) Failure to comply with the conditions or obligations prescribed under this Act or its implementing rules and regulations.

SECTION 24. Implementing Rules and Regulations. — Within ninety (90) days from the effectivity of this Act, the Secretary of Labor and Employment, in coordination with concerned agencies, shall formulate the necessary rules and regulations to implement the provisions of this Act.

SECTION 25. Separability Clause. — If any provision of this Act is held invalid or unconstitutional, the same shall not affect the validity and effectivity of the other provisions hereof.

SECTION 26. Repealing Clause. — All laws, decrees, executive orders, and rules and regulations contrary to or inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 27. Effectivity. — This Act shall take effect fifteen (15) days from the date of its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved: June 29, 2016.

Rules and Regulations Implementing the Philippine Green Jobs Act of 2016

April 29, 2016

AN ACT PROMOTING THE CREATION OF GREEN JOBS, GRANTING INCENTIVES AND APPROPRIATING FUNDS THEREFOR

SECTION 1. Short Title. — This Act shall be known as the "Philippine Green Jobs Act of 2016".

SECTION 2. Declaration of Policy. — It is the declared policy of the State to:

(a) Affirm labor as a primary social economic force in promoting sustainable development;

(b) Afford full protection to labor, local and overseas, organized and unorganized, and promote full and productive employment and equality of employment opportunities for all; and

(c) Promote the rights of the people to a balanced and healthful ecology in accord with the rhythm and harmony of nature.

The State shall identify needed skills, develop training programs, and train and certify workers for jobs in a range of industries that produce goods and render services for the benefit of the environment, conserve natural resources for the future generation, and ensure the sustainable development of the country and its transition into a green economy. In recognition of the participation of individuals and business enterprises in jobs creation, the State shall provide incentives therefor.

SECTION 3. Coverage. — This Act shall apply to all business enterprises unless otherwise provided herein.

SECTION 4. Definition of Terms. — As used in this Act:

(a) Business enterprises refer to establishments engaged in the production, manufacturing, processing, repacking, assembly, or sale of goods and/or services, including service-oriented enterprises. It shall include self-employed or own-account workers, micro, small, and medium enterprises (MSMEs) and community-based business enterprises;

(b) Climate change refers to a change in climate that can be identified by changes in the mean or variability of its properties and that persists for an extended period typically decades or longer, whether due to natural variability or as a result of human activity;

(c) Green jobs refer to employment that contributes to preserving or restoring the quality of the environment, be it in the agriculture, industry or services sector. Specifically, but not exclusively, this include jobs that help to protect ecosystems and biodiversity, reduce energy, materials and water consumption through high efficiency strategies, decarbonize the economy, and minimize or altogether avoid generation of all forms of waste and pollution. Green jobs are decent jobs that are productive, respect the rights of workers, deliver a fair income, provide security in the workplace and social protection for families, and promote social dialogue.

(d) Green economy refers to one which is low-carbon and resource-efficient, and results in the generation of green jobs and in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities;

(e) Green goods and services refer to goods and services that benefit the environment or conserve natural resources, and may include research and development, installation and maintenance services;

(f) Green technologies refer to the development and application of products, equipment and systems used to conserve the environment and natural resources; and

(g) Sustainable development refers to development that meets the needs of the present generation without compromising the ability of the future generations to meet their own needs.

SECTION 5. Incentives. — For the purposes of encouraging business enterprises to generate and sustain green jobs as certified by the Climate Change Commission, as provided in Section 6 (o) hereof, business enterprises shall enjoy the following incentives:

(a) Special deduction from the taxable income equivalent to fifty percent (50%) of the total expenses for skills training and research development expenses which is over and above the allowable ordinary and necessary business deductions for said expenses under the National Internal Revenue Code of 1997, as amended; and

(b) Tax and duty free importation of capital equipment: Provided, That the capital equipment is actually, directly and exclusively used in the promotion of green jobs of the business enterprise.

Incentives that will be granted under this Act shall be in addition to fiscal and non-fiscal incentives already granted or provided under existing laws, orders, issuances and regulations. Nothing in this Act shall be interpreted or construed to diminish or limit, in whatever manner, the incentives granted or provided under existing laws, orders, issuances and regulations which shall include, but not limited to, Republic Act No. 10121 or the "Philippine Disaster Risk Reduction and Management Act of 2010"; Republic Act No. 10068 or the "Organic Agriculture Act of 2010"; Republic Act No. 9513 or the "Renewable Energy Act of 2008"; Republic Act No. 9367 or the "Biofuels Act of 2006"; Republic Act No. 9275 or the "Philippine Clean Water Act of 2004"; Republic Act No. 9003 or the "Ecological Solid Waste Management Act of 2000"; Republic Act No. 8749 or the "Philippine Clean Air Act of 1999"; and Republic Act No. 8550 or the "Philippine Fisheries Code of 1998".

SECTION 6. Role of Agencies. —

(a) The Department of Labor and Employment (DOLE) shall, in coordination with other government agencies, formulate a National Green Jobs Human Resource Development Plan on the development, enhancement and utilization of the labor force, both in the private and public sectors. The plan shall have the primary objective of enabling and sustaining the transition into a green economy and the generation of green jobs towards more employment and equal opportunities and the promotion of social justice and workers' welfare. It shall include programs, projects, and activities pertaining to basic, higher and technical-vocational education and training, database that identifies and links green job opportunities with private and public entities, and information on knowledge and skill requirements of a green economy.

The DOLE, in coordination with the Philippine Statistics Authority (PSA), shall also maintain a database of green careers, professions and skills, as well as a list of emerging business enterprises, which generate and sustain green jobs. It shall facilitate skills training assessment and certification, career advocacy, provide productivity and livelihood training, and extend technical assistance to enterprises to ensure labor law compliance.

(b) The Department of Finance (DOF) shall administer the grant of incentives as discussed in Section 5 of this Act to qualified individuals and business enterprises engaged in registered strategic activities, and shall maintain a database on the same.

(c) The Department of Environment and Natural Resources (DENR) shall establish and maintain a climate change information management system and network as reference in the formulation of strategies and approaches to develop potential green jobs.

(d) The Department of Education (DepED) shall implement faculty, facility and curriculum development for primary and secondary education in support of the knowledge and skills requirement of a green economy.

(e) The Commission on Higher Education (CHED) shall develop and implement curriculum and related standards and instructional materials in support of the green economy.

(f) The Technical Education and Skills Development Authority (TESDA) shall formulate the necessary training regulations for the implementation of skills training, program registration and assessment and certification in support of the requirements for skilled manpower of the green economy.

(g) The National Economic and Development Authority (NEDA) shall ensure the mainstreaming of green jobs concern in development plans.

(h) The Department of Trade and Industry (DTI) shall develop a special business facilitation program for individuals and business enterprises that create green jobs.

(i) The Professional Regulation Commission (PRC) shall encourage the development of qualifications framework that can facilitate the recognition of knowledge, skills, and competencies of professionals working in the green economy.

(j) The Department of Science and Technology (DOST) shall, together with the TESDA, assist the DOLE in analyzing skills, training and re-training needs in relation to the use of green technology that has the potential to create new green occupations and greener jobs, especially in industries or sectors undergoing structural changes due to climate change and greening of the economy. It shall also provide a range of business development support to MSMEs. These may include prototyping or modeling of technologies, conducting assessment to match technological needs and demands, subcontracting business to develop clean technologies, providing technical written guides, procedures as well as instructions and training on clean technology for business.

(k) The Department of Transportation and Communications (DOTC) shall ensure the mainstreaming of green jobs concern in its sectoral development plan and encourage more investments in public transport infrastructure and services to optimize the potential of public transport to foster green growth and job creation. It shall also explore strategies of shifting to more environmentally friendly modes of transport and improving the efficiency of all modes of transportation.

(l) The Department of Tourism (DOT) shall outline sustainable tourism planning and integrated approach for the promotion of job rich in sustainable tourism industry.

(m) The Department of Public Works and Highways (DPWH) shall develop and implement programs that promote the importance of green building practices in safeguarding the environment and its role in sustainable economic development.

(n) Any provision in their respective charters to the contrary notwithstanding, government financial institutions (GFIs) shall, in consultation with the Bangko Sentral ng Pilipinas (BSP), provide preferential financial packages to business enterprises that create green jobs.

(o) The Climate Change Commission (CCC), in consulting with concerned agencies, such as the DENR, the DTI, the DOLE, the Department of Agriculture (DA), the Department of Energy (DOE), the Department of the Interior and Local Government (DILG), and the DOST, shall develop and administer appropriate standards for the assessment and certification of green goods and services, and green technologies and practices for the purpose of regulating the availment of incentives and ensuring green jobs content pursuant to the National Green Jobs Human Resource Development Plan as provided in Section 6 (a) hereof.

SECTION 7. Role of the Secretary of Labor and Employment. — The Secretary of Labor and Employment shall be included as an additional member of the Climate Change Commission constituted under Section 5 of Republic Act No. 9729, as amended or the "Climate Change Act of 2009".

SECTION 8. Appropriations. — The amount necessary to carry out the operation of this Act shall be included in the annual General Appropriations Act.

SECTION 9. Implementing Rules and Regulations. — Within one hundred eighty (180) days from the effectivity of this Act, the Secretary of Labor and Employment in coordination with concerned agencies as may be deemed necessary, shall formulate the necessary rules and regulations to implement the provision of this Act.

SECTION 10. Separability Clause. — Should any provision of this Act be declared unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

SECTION 11. Repealing Clause. — Section 5 of Republic Act No. 9729, as amended or the "Climate Change Act of 2009", is deemed amended or modified by Section 7 of this Act. All other existing laws, presidential decrees, executive orders, proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

SECTION 12. Effectivity. — This Act shall take effect fifteen (15) days following the completion of its publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved: April 29, 2016.

Published in The Philippine Star on May 3, 2016.

Rules and Regulations Implementing the Seafarers Protection Act

November 6, 2015

AN ACT PROTECTING SEAFARERS AGAINST AMBULANCE CHASING AND IMPOSITION OF EXCESSIVE FEES, AND PROVIDING PENALTIES THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. This Act shall be known as the “Seafarers Protection Act”.

SECTION 2. Declaration of Policy. — It shall be the policy of the State to promote and protect every Filipino seafarer desiring to work overseas by securing the best possible terms and conditions of employment. As some unscrupulous individuals have taken advantage of the plight of our seafarers who met an accident, illness or death in the course of their service by exploiting the compensation system, our seafarers have fallen prey to an unfair scheme where ambulance chasers charge exorbitant fees, with the promise of huge monetary award. Towards this end, such practice shall be declared unlawful.

SECTION 3. Prohibition on Ambulance Chasing. — It shall be unlawful for any person to engage in ambulance chasing or the act of soliciting, personally or through an agent, from seafarers, or their heirs, the pursuit of any claim against them employers for the purpose of recovery of monetary claim or benefit, including legal interest, arising from accident, illness or death, in exchange of an amount or fee which shall be retained or deducted from the monetary claim or benefit granted to or awarded to the seafarers or their heirs.

SECTION 4. Imposition of Excessive Fees. — When any contract or arrangement between a seafarer or his/her heirs, and a person who appears for or represents them in any case for recovery of monetary claim or benefit, including legal interest, arising from accident, illness or death before the National Labor Relations Commission (NLRC) or any labor arbiter, the National Conciliation and Mediation Board (NCMB), the Philippine Overseas Employment Administration (POEA), the Department of Labor and Employment (DOLE) or its regional offices, or other quasi-judicial bodies handling labor disputes stipulates that the person who appears for or represents them shall be entitled to fees, such fees shall not exceed ten percent (10%) of the compensation or benefit awarded to the seafarer or his/her heirs.

For purposes of this Act, fees referred to in this section shall mean the total amount of compensation of the person who appears for or represents the seafarer, or his/her heirs for services rendered.

SECTION 5. Penalties. — Any person who violates Section 3 of this Act shall be punished by a fine of not less than fifty thousand pesos (P50,000.00) but not more than one hundred thousand pesos (P100,000.00), or by imprisonment of one (1) year but not more than two (2) years, or both fine and imprisonment. The same penalties shall be imposed upon any person who shall be in collusion in the commission of the prohibited act in Section 3 hereof.1âwphi1

SECTION 6. Implementing Rules and Regulations. — Within ninety (90) days from the approval of this Act, the Secretary of Labor and Employment, in coordination with the Maritime Industry Authority (MARINA) and the POEA, shall promulgate the necessary rules and regulations for the effective implementation of the provisions of this Act.

SECTION 7. Repealing Clause. — All laws, orders, issuances, decrees, rules and regulations inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 8. 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.

Rules and Regulations Implementing the HDMF Law

July 21, 2009

AN ACT FURTHER STRENGTHENING THE HOME DEVELOPMENT MUTUAL FUND, AND FOR OTHER PURPOSES

SECTION 1. Title. — This Act shall be known as the "Home Development Mutual Fund Law of 2009, otherwise known as Pag-IBIG (Pagtutulungan sa kinabukasan: Ikaw, Bangko, Industriya at Gobyerno) Fund".

SECTION 2. Declaration of Policy. — It is the policy of the State to establish, develop, promote, and integrate a nationwide sound and viable tax-exempt mutual provident savings system suitable to the needs of the employed and other earning groups, and to motivate them to better plan and provide for their housing needs, by membership in the Home Development Mutual Fund, with mandatory contributory support of the employers in the spirit of social justice and the pursuit of national development.

SECTION 3. Statement of Objectives. — Towards this end, the State shall integrate all laws relating to the Home Development Mutual Fund to effectively achieve the following objectives:

(a) To improve the quality of life of its citizens by providing them with sufficient shelter;

(b) To provide for an integrated nationwide provident savings system; and

(c) To provide housing through mobilization of funds for shelter finance.

SECTION 4. Definition of Terms. — The following terms shall mean:

(a) "Board" — the duly constituted Board of Trustees of the Home Development Mutual Fund.

(b) "Compensation" — basic monthly salary plus mandated cost of living allowance.

(c) "Contributions" — the amount payable to the Fund by the members and their employers, in accordance with this Act.

(d) "Dependents" — refers to legal dependents of a deceased member, as defined under the Family Code.

(e) "Employee" — any person in the service of an employer who receives compensation of such services.

(f) "Employer" — any person, natural or juridical, domestic or foreign, who carries on in the Philippines, or outside of the Philippines, any trade, business, industry, undertaking or activity of any kind, and uses the services of another person who is under his order as regards such services; the government, its national and local offices, political subdivisions, branches, agencies, or instrumentalities, including corporations owned and/or controlled by the government, and the local government units.

(g) "Employment" — any service performed by an employee for his/her employer within the Philippines: Provided, however, That any foreign government, international organization or their wholly-owned instrumentality employing workers in the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with the Fund for the inclusion of their employees as members of the Fund: Provided, further, That the term of such agreement conform with the provisions of this Act.

(h) "Fund" — the fund created under this Act which is a government financial institution involved in mobilizing provident funds primarily for shelter finance.

(i) "GSIS" — the Government Service Insurance System created under Commonwealth Act No. 186, as amended.

(j) "Investible Funds" — shall mean funds available after deducting cost of operations and expenses, administrative and general expenses, reserves for benefit claims, provisions for a sinking fund for the return of the members' equity upon maturity and provision for reserve for loan repayments.

(k) "Member" — an employee coverable under this Act and pays the mandated contributions.

(l) "Membership Term" — a period of twenty (20) years commencing from the first day of the month to which the member's initial contribution to the Fund applies: Provided, That he shall have contributed a total of two hundred forty (240) monthly contributions at the time of maturity.

(m) "Net Fund Asset" — the total assets of the Fund less current liabilities.

(n) "Permanent Total Disability" — loss or impairment of a physical and mental function resulting from injury or sickness which completely incapacitates a member to perform any work or engage in any business or occupation as determined by the Fund.

(o) "SSS" — the Social Security System created under Republic Act No. 1161, as amended.

SECTION 5. Fund System. — To carry out the purposes of this Act, there is hereby created the Home Development Mutual Fund of 2009, also referred to herein as the Fund, a mutual provident savings system for private and government employees and other earning groups, supported by matching mandatory contributions of their respective employers with housing as the primary investment.

The Fund shall be a body corporate, with principal office in Metro Manila, and shall replace the Home Development Mutual Fund established under Presidential Decree No. 1752.

SECTION 6. Fund Coverage. — Coverage in the Fund shall be mandatory upon: (a) all employees covered by the SSS and the GSIS, and their respective employers, notwithstanding any waiver of coverage previously issued, including the uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police; (b) Filipinos employed by foreign-based employers; and (c) spouses who devote full-time to managing the household and family affairs, unless they also engage in another vocation or employment which is subject to mandatory coverage, may be covered by the Fund on a voluntary basis adopting as a basis of contributions one-half (1/2) of the monthly compensation income of the employed spouse.

Coverage may also be extended to other working groups, with or without employer contributions, as may be determined by the Board of Trustees.

SECTION 7. Fund Generation and Contributions. — The money of the Fund shall be generated by the provident savings that the covered employees shall contribute for the purpose every month, and the equal amounts that their respective employers shall mandatorily contribute.

Covered employees and employers shall contribute to the Fund based on the monthly compensation of covered employees as follows:

Employees earning not more than One thousand five hundred pesos (P1,500.00) per month — one percent (1%).

Employees earning more than One thousand five hundred pesos (P1,500.00) per month — two percent (2%).

All employers — two percent (2%) of the monthly compensation of all covered employees.

The maximum monthly compensation to be used in computing employee and employer contributions shall not be more than Five thousand pesos (P5,000.00): Provided, That this maximum may be fixed from time to time by the Board of Trustees through rules and regulations adopted by it, taking into consideration actuarial calculations and rates of benefits.

Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly, from the compensation of its employees covered by the Fund, or otherwise recover from them, the employer's contribution with respect to such employees.

SECTION 8. Membership Term. — Membership in the Fund shall be for a period of twenty (20) years, except when earlier terminated by reason of retirement, disability, insanity, death, departure from the country or other causes as may be provided for by the Board of Trustees: Provided, That those who become members of the Fund after the effectivity of this Act may withdraw the total accumulated value of their contributions to the Fund after the fifteenth (15th) year of continuous membership: Provided, further, That said members have no outstanding housing loans with the Fund: Provided, finally, That this option shall not prejudice the member's continuing membership in the Fund.

Resignation, lay-off or suspension from employment may not necessarily constitute a ground for membership termination, except for suspension of contributions.

SECTION 9. Waiver or Suspension of Coverage. — Coverage of the Fund and/or the payment of monthly contribution to the same may, by rules or resolutions of the Board of Trustees, be waived or suspended by reasons of nature of employment, condition of business, ability to make contributions and other reasonable considerations.

SECTION 10. Provident Character. — The Fund shall be private in character, owned wholly by the members, administered in trust and applied exclusively for their benefit. All the personal and employer contributions shall be fully credited to each member, accounted for individually and transferable in case of change of employment. They shall earn dividends as may be provided for in the implementing rules. The said amounts shall constitute the provident fund of each member, to be paid to him, his estate or beneficiaries upon termination of membership, or from which peripheral benefits for the member may be drawn.

SECTION 11. Housing Features. — A member of good standing shall be eligible to apply for housing loans, under such terms and conditions as may be authorized by the Board of Trustees, taking into account ability to pay. The Board of Trustees shall institute policies to ensure that lower-income members obtain such housing loans.

SECTION 12. Implementing Body. — The Home Development Mutual Fund created under this Act, shall implement the provisions hereof.

SECTION 13. Powers and Functions of the Fund. — The Fund shall have the powers and functions specified in this Act and the usual corporate powers:

(a) To formulate, adopt, amend and/or rescind such rules and regulations as may be necessary to carry out the provisions and purposes of this Act, as well as the effective exercise of the powers and functions, and the discharge of duties and responsibilities of the Fund, its officers and employees;

(b) To adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the Fund personnel, to authorize such capital and operating expenditures and disbursements of the Fund as may be necessary and proper for the effective management and operation of the Fund;

(c) To submit annually to the President of the Philippines not later than March 15, a report of its activities and the state of the Fund during the preceding year, including information and recommendations for the development and improvement thereof;

(d) To invest not less than seventy percent (70%) of its investible funds to housing, in accordance with this Act;

(e) To acquire, utilize, or dispose of, in any manner recognized by law, real or personal properties to carry out the purposes of this Act;

(f) To set up its own accounting and computer systems; to conduct continuing actusans-serif and statistical studies and valuations to determine the financial viability of the Fund and its project; to require reports, compilations and analysis of statistical and economic data, as well as make such other studies and surveys as may be needed for the proper administration and development of the Fund;

(g) To have the power of succession; to sue and be sued; to adopt and use a corporate seal;

(h) To enter into and carry out contracts of every kind and description with any person, firm or association or corporation, domestic or foreign;

(i) To borrow funds from any source, private or government, foreign or domestic;

(j) To invest, own or otherwise participate in equity in any establishment, firm or entity; to form, organize, invest in or establish and maintain a subsidiary or subsidiaries in relation to any of its purposes;

(k) To approve appointments in the Fund except appointments to positions which are policy determining, primarily confidential or highly technical in nature according to the civil service rules and regulations: Provided, That all positions in the Fund shall be governed by a compensation and position classification system and qualification standards approved by the Fund's Board of Trustees based on a comprehensive job analysis, wage compensation study and audit of actual duties and responsibilities: Provided, further, That the compensation plan shall be comparable with prevailing compensation plans in the private sector and shall be subject to the periodic review of the Board no more than once every four (4) years without prejudice to yearly merit reviews or increases based on productivity and profitability. The Fund shall, therefore, be exempt from any laws, rules and regulations on salaries and compensations;

(l) To maintain a provident fund, which shall consist of contributions made by both the Fund and its officers and employees and their earnings, for the payment of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe;

(m) To design and adopt an early retirement incentive plan (ERIP) for its own personnel;

(n) To establish field offices and to conduct its business and exercise its powers in these places;

(o) To approve restructuring proposal for the payment of due but unremitted contributions and unpaid loan amortizations under such terms and conditions as the Board of Trustees may prescribe;

(p) To determine, fix and impose interest and penalties upon unpaid contributions due from employers and employees;

(q) To ensure the collection and recovery of all indebtedness, liabilities and/or accountabilities, including unpaid contributions in favor of the Fund arising from any cause or source or whatsoever, due from all obligors, whether public or private; to demand payment of the obligations referred to herein, and in the event of failure or refusal of the obligor or debtor to comply with the demand, to initiate or institute the necessary or proper actions or suits, criminal, civil, administrative, or otherwise, before the courts, tribunals, commissions, boards or bodies of proper jurisdiction: Provided, however, That the Fund may compromise or release, in whole or in part, any interest, penalty or civil liability to the Fund in connection with the collection of contributions and the lending operations of the Fund, under such terms and conditions as prescribed by the Board of Trustees: Provided, further, That the Board may, upon recommendation of the Chief Executive Officer, deputize any member of the Fund's legal staff to act as special sheriff in foreclosure cases, in the sale or attachment of the debtor's properties, and in the enforcement of court writs and processes in cases involving the Fund. The special sheriff of the Fund shall make a report to the proper court after any action taken by him, which shall treat such action as if it were an act of its own sheriffs in all respects;

(r) To design and implement other programs that will further promote and mobilize savings and provide additional resources for the mutual benefit of the members with appropriate returns on the savings/investments. The program shall be so designed as to spur socioeconomic take-off and maintain continued growth;

(s) To conduct continuing actuarial and statistical studies and valuations to determine the financial condition of the Fund and taking into consideration such studies and valuations and the limitations herein provided, readjust the benefits, contributions, interest rates of the allocation or reallocation of the funds to the contingencies covered; and

(t) To exercise such powers and perform such acts as may be necessary, useful, incidental or auxiliary to carry out the provisions of this Act.

SECTION 14. Board of Trustees. — The corporate powers and functions of the Fund shall be vested in and exercised by the Board of Trustees appointed by the President of the Philippines, composed of the following:

(a) The Chairperson of the Housing and Urban Development and Coordinating Council, as the ex officio Chairman;

(b) The Secretary of the Department of Finance, as the ex officio Vice Chairman;

(c) The Secretary of the Department of Labor and Employment or his/her duly designated undersecretary, as ex officio member;

(d) The Secretary of the Department of Budget and Management or his/her duly designated undersecretary, as ex officio member;

(e) The Secretary of the Department of Trade and Industry, or his/her duly designated undersecretary, as ex officio member;

(f) The Chief Executive Officer of the Fund, as member; and

(g) Five (5) appointive members, two (2) representatives of private employees, two (2) representatives of private employers and one (1) representative of government employees.

The four (4) private sector representatives shall each be appointed by the President of the Philippines for a term of two (2) years: Provided, however, That of the first to be appointed, one (1) representative of the employers shall have a term of only one (1) year. The representative of the government employees shall be appointed by the President of the Philippines for a term of two (2) years.

The Chairman, Vice Chairman and members of the Board shall be entitled to a reasonable per diem for each meeting actually attended at such amounts as may be fixed by the Board in accordance with existing laws, rules and regulations.

SECTION 15. Powers of the Board. — The Board shall have the following powers:

(a) To formulate policies, rules and regulations to carry out effectively the functions of the Fund under this Act;

(b) To promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions, as well as the discharge of the duties and responsibilities of the Fund, its officers and employees;

(c) To authorize expenditures of the Fund in the interest of effective administration and operations; to adopt from time to time the budgets for said purposes;

(d) To approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the Fund personnel; to authorize such capital and operating expenditures and disbursements as may be necessary and proper for the effective management and operation of the Fund;

(e) To condone, in whole or in part, penalties imposed on loans of members/borrowers who, for justifiable reasons prescribed by the Board, failed to pay on time any obligation due to the Fund: Provided, That such exclusive power to condone shall likewise apply to penalties imposed on employers, who justifiably fail to remit when due the required contributions of their employees;

(f) To approve the Fund's organizational and administrative structures and staffing pattern, and to establish, fix, review, revise and adjust the appropriate compensation package for the officers and employees of the Fund in accordance with Section 13 (k) hereof; and

(g) To exercise such powers as may be necessary to carry into effect the powers and accomplish the purposes for which the Fund is established.

SECTION 16. Rule-Making Power. — The Board of Trustees is hereby authorized to make and change needful rules and regulations, which shall be published in accordance with law or at least once in a newspaper of general circulation in the Philippines, to provide for, but not limited to, the following matters:

(a) The effective administration, custody, development, utilization and disposition of the Fund or parts thereof, including payment of amounts credited to members or to their beneficiaries or estates:

(b) Grounds for and effects or termination of membership other than by completion of term:

(c) Fund earnings and their distribution, investment and/or plowing back for the exclusive benefit of the members;

(d) Interim disbursements of accumulated values to members of ameliorative and similar purposes;

(e) Benefits, contributions including their rates, premium rates and interest rates;

(f) Housing and other loan assistance programs for members;

(g) Adjudication and settlement of claims and disputes and the procedures for the same on any matters involving the interests of members in the Fund;

(h) Optimize the effectiveness of the Fund's coverage; and

(i) Other matters that, by express or implied provisions of this Act, shall require implementation by appropriate policies, rules and regulations.

SECTION 17. Powers and Duties of the Chief Executive Officer. — The Chief Executive Officer of the Fund shall execute and administer the policies and resolutions approved by the Board of Trustees, prepare its agenda and direct and supervise the operations and management of the Fund. The Chief Executive Officer, subject to the approval of the Board in case of approval of managerial positions and above, and the confirmation of the Board in below that of manager level, shall appoint the personnel of the Fund, remove, suspend or otherwise discipline them for cause and prescribe their duties and qualifications, in accordance with existing civil service laws, rules and regulations, to the end that only competent personnel may be employed.

SECTION 18. Money Investments. — All monies of the Fund not needed to meet current administrative and operational requirements, shall be invested with due and prudent regard for its safety, growth and liquidity needs.

SECTION 19. Exemption from Tax, Legal Process and Lien. — All laws to the contrary notwithstanding, the Fund and all its assets and properties, all contributions collected and all accruals thereto and income or investment earnings therefrom, as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty; and all benefit payments made by the Pag-IBIG Fund shall likewise be exempt from all kinds of taxes, fees or charges, and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or equitable process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the member to the Fund. No tax measure of whatever nature enacted shall apply to the Fund, unless it expressly revokes the declared policy of the State in Section 2 hereof granting tax exemption to the Fund. Any tax assessment against the Fund shall be null and void.

SECTION 20. Government Guarantee. — The benefits prescribed in this Act shall not be diminished and to guarantee said benefits, the government of the Republic of the Philippines accepts general responsibility for the solvency of the Fund.

SECTION 21. Administration Costs. — The Fund shall bear the costs of its administration and development, in such amounts and/or limits as the Board of Trustees may deem appropriate, but not exceeding two percent (2%) of the Net Fund Assets of the previous year, excluding operating cost directly relating to the lending operations of the Fund.

SECTION 22. Audit. — The Chairman of the Commission on Audit shall act as the ex officio auditor of the Fund and, accordingly, is empowered to appoint a representative and other subordinate personnel to perform and report on such audit duties, responsible to and removable only by the Commission on Audit Chairman, without prejudice, however, to the power of the Board of Trustees to contract for another mode of independent audit service, in addition to that provided by the Commission on Audit as provided for under Presidential Decree No. 1445, otherwise known as the Government Auditing Code of the Philippines.

SECTION 23. Remittance of Contributions. — (a) It shall be the duty of every employer, private or public, to set aside and remit the contributions required under this Act in accordance with a mechanism determined by the Board of Trustees.

(b) Every employer required to set aside and remit such contributions as prescribed under this Act shall be liable for their payment, and nonpayment shall further subject the employer to a penalty of three percent (3%) per month of the amounts payable from the date the contributions fall due until paid.

(c) It shall be mandatory and compulsory for all government instrumentalities, agencies, including government-owned and -controlled corporations, to provide the payment of contributions in their annual appropriations. Penal sanctions shall be imposed upon these employers who fail to include the payment of contributions on time, or delay the remittance of the required contributions to the Fund. The heads of offices and agencies shall be administratively liable for non-remittance of the required contributions to the Fund.

(d) Failure or refusal of the employer to pay or to remit the contributions herein prescribed shall not prejudice the right of the covered employee to the benefits under this Act.

(e) The contributions under this Act, in cases where an employer refuses or neglects to pay the same, shall be collected by the Fund in the same manner as taxes are made collectible under the National Internal Revenue Code, as amended.

The right to institute the necessary action against the employer may be commenced within twenty (20) years from the time delinquency is known or the assessment is made by the Fund, or from the time the benefit accrues, as the case may be.

SECTION 24. Employment Records and Reports. — (a) Each employer shall immediately report to the Fund the names, ages, civil status, occupations, salaries and dependents of its covered employees.

(b) Every employer shall keep true and accurate work records for such period and containing such information as the Fund may prescribe, in addition to the annual register of new and separated employees which shall be secured from the Fund, when the employee shall enter on the first day of employment or on the effective date of separation, the names of the persons employed or separated from employment and such other data that the Fund may require and said annual register shall be submitted to the Fund in the month of January each year. Such record shall be open for inspection by the Fund or its authorized representatives quarterly, or as often as the Fund may require.

SECTION 25. Penal Provisions. — Refusal or failure without lawful cause or with fraudulent intent to comply with the provisions of this Act, as well as the implementing rules and regulations adopted by the Board of Trustees, particularly with respect to registration of employees, collection and remittance of employee-savings as well as the employer counterparts, or the correct amount due, within the time set in the implementing rules and regulations or specific call or extension made by the Fund management shall constitute an offense punishable by a fine of not less than, but not more than twice, the amount involved or imprisonment of not more than six (6) years, or both such fine and imprisonment, in the discretion of the court, apart from the civil liabilities and/or obligations of the offender or delinquent. When the offender is a corporation, the penalty shall be imposed upon the members of the governing board and the president or general manager, without prejudice to the prosecution of related offenses under the Revised Penal Code and other laws, revocation and denial of operating rights and privileges in the Philippines, and deportation when the offender is a foreigner. In case of government instrumentalities, agencies or corporations, the treasurer, finance officer, cashier, disbursing officer, budget officer or other official or employee who fails to include in the annual budget the amount corresponding to the employers' contributions, or who fails or refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable or to deduct the monthly contributions of the employee shall, upon conviction by final judgment, suffer the penalties of imprisonment of not more than six (6) years, and a fine of not less than, but not more than twice the amount involved.

SECTION 26. Existing Coverage. — Membership under the Fund established under Presidential Decree No. 1752, together with amounts and benefits already accrued to the members, including employers' counterparts, as well as covering records documents, shall be transferred, continued and/or integrated into the new Fund hereby established, subject henceforth to policies and rules adopted thereunder.

SECTION 27. Visitorial and Enforcement Powers. — (a) The Fund or its duly authorized representatives is empowered to inspect the premises, books of accounts and records of any person or entity covered by this Act; require it to submit its reports regularly; and act on violations of any provisions of this Act.

(b) Particular aspects of the Fund's administration may be subject to supervision, visitation or verification by appropriate agencies of the government as may be designated and authorized by the President of the Philippines.

SECTION 28. Implementing Rules and Regulations. — The implementing rules and regulations to effectively carry out the provisions of this Act shall be adopted by and promulgated by the Board of Trustees of the Pag-IBIG Fund not later than ninety (90) days after the approval of this Act which shall be published in at least one (1) national newspaper of general circulation.

SECTION 29. Separability Clause. — If, for any reason, any provision of this Act, or the application thereof to any person or circumstances, is held invalid or unconstitutional, the remaining provisions not affected thereby shall continue to be in full force and effect.

SECTION 30. Repealing Clause. — Presidential Decree No. 1530, as amended by Executive Order Nos. 527 (series of 1979) and 538 (series of 1979);Presidential Decree No. 1752, as amended by Executive Order Nos. 35 (series of 1986) and 90 (series of 1986); and Republic Act No. 8501 are hereby repealed. Section 6 of Republic Act No. 7742 is hereby amended accordingly. All other laws, decrees, executive orders, or rules and regulations, or parts thereof inconsistent with or contrary to the provisions of this Act or its purposes are hereby amended or modified accordingly.

SECTION 31. Effectivity. — This Act shall take effect fifteen (15) days after the completion of its publication in the Official Gazette or in at least two (2) national newspapers of general circulation.

Approved: July 21, 2009

Rules and Regulations Implementing the Public Employment Service Office Act of 1999 as amended by RA No 10691

February 14, 2000

AN ACT INSTITUTIONALIZING A NATIONAL FACILITATION SERVICE NETWORK THROUGH THE ESTABLISHMENT OF A PUBLIC EMPLOYMENT SERVICE OFFICE IN EVERY PROVINCE, KEY CITY AND OTHER STRATEGIC AREAS THROUGHOUT THE COUNTRY

Be it enacted by the Senate and House of Representatives of the Philippines of Representatives of the Philippines in Congress assembled:

Section 1. Title. — This Act shall be known as the "Public Employment Service Office Act of 1999."

Section 2. Declaration of Policy. - It is a declared policy of the State to promote full employment and equality of employment opportunities for all, and for this purpose, to strengthen and expand the existing employment facilitation service machinery of the government particularly at the local levels.

Section 3. Establishment of the Public Employment Service Office. - To carry out the above declared policy, there shall be established in all provinces, cities, and municipalities a Public Employment Service Office, hereinafter referred to as ‘PESO’, which shall be operated and maintained by local government units (LGUs). The PESOs shall be linked to the regional offices of the Department of Labor and Employment (DOLE) for coordination and technical supervision, and to the DOLE central office, to constitute the national public employment service network.

The PESO shall be under the office of the governor, city or municipal mayor. The PESO shall be initially organized by and composed of a PESO manager and may be assisted by a labor and employment officer (LEO) as may be determined by the LGU.

Upon the request of accredited non-government organizations (NGOs) or educational institutions (Els), the DOLE may enter into a memorandum of agreement for the NGO and EI to establish, operate and maintain a PESO and a job placement office, respectively.

To harmonize the provision of employment services in a given territorial jurisdiction, the PESO at the NGOs and the job placement office in Els shall coordinate their activities with the appropriate LGU PESO. (as amended by RA No 10691)

Section 4. Objectives of the PESO. - In general, the PESO shall ensure the prompt, timely and efficient delivery of employment service and provision of information on the other DOLE programs.

Specifically, the PESO shall:

(a) Provide a venue where people could explore simultaneously various employment options and actually seek assistance they prefer;

(b) Serve as referral and information center for the various services and programs of DOLE and other government agencies present in the area;

(c) Provide clients with adequate information on employment and labor market situation in the area; and

(d) Network with other PESOs within the region on employment for job exchange purposes.

Section 5. Functions of the PESO. - The PESO shall have the following functions:

(a) Encourage employers to submit to the PESO on a regular basis a list of job vacancies in their respective establishments in order to facilitate the exchange of labor market information between job seekers and employers by providing employment information services to job seekers, both for local and overseas employment, and recruitment assistance to employers;

(b) Develop and administer testing and evaluation instruments for effective job selection, training and counselling;

(c) Provide persons with entrepreneurship qualities, access to the various livelihood and self-employment programs offered by both government and nongovernment organizations at the provincial, city, municipal and barangay levels by undertaking referrals for such program;

(d) Undertake employability enhancement trainings or seminars for job seekers, as well as those who would like to change career or enhance their employability;

(e) Provide employment or occupational counselling, career guidance, mass motivation and values development activities;

(f) Conduct pre-employment counselling and orientation to prospective local and, most especially, overseas workers;

(g) Provide reintegration assistance services to returning Filipino migrant workers;

(h) Prepare and submit to the local sanggunian an annual employment plan and budget including other regular funding sources and budgetary support of the PESO; and

(i) Perform such functions as to fully carry out the objectives of this Act.

(as amended by RA No 10691)

Section 6. Other Services of the PESO. - In addition to the functions enumerated in the preceding section, every PESO shall undertake holistic strategies, programs and activities to transform the PESO into a modern public employment service intermediary that provides multidimensional employment facilitation services. (as amended by RA No 10691)

Section 7. Role of DOLE and the LGUs - The LGUs, in coordination with the DOLE, shall establish the PESO.

“It shall be the responsibility of the DOLE to:

(a) Provide technical supervision, coordination and capacity-building to the PESO;

(b) Establish and maintain a computerized human resource and job registries to facilitate the provision and packaging of employment assistance to PESO clients and the setting-up of intra- and inter­regional job clearance systems as part of the overall employment network;

(c) Provide technical assistance and allied support services to the PESO including, but not limited to, the training of PESO personnel in the various aspects of employment facilitation functions;

(d) Set standards for the establishment and operation of the PESO office, and qualification standards for the PESO personnel;

(e) Extend other packages of employment services to the LGU, NGO or EI concerned, including the conduct of job lairs, career development seminars, and other activities; and

(f) Monitor, assess, and evaluate the performance of the PESOs, including the job placement offices in Els.

For their part, persons who are seeking employment, particularly the unemployed, shall register at the PESO for employment facilitation assistance. The establishments, on the other hand, shall submit their job vacancies as well as applicants hired to the PESO to ensure the availability of accurate information on supply and demand for skills in the labor market.

The LGU shall establish a monitoring system wherein establishments operating in the locality shall report the following relevant labor market information to the concerned office of the LGU:

(1) Present number and nature of jobs; and

(2) Projection of jobs that the establishment will provide or offer in the next five (5) years.

The information shall be submitted to the PESO for job matching and to Els for career guidance of the students.

It shall be the responsibility of the concerned LGU to:

(i) Operate and maintain the PESO;

(ii) Ensure compliance with the operational standards set by the DOLE;

(iii) Extend such assistance and services as may be necessary in the promotion of employment within the area of jurisdiction; and

(iv) Submit to the DOLE periodic: performance and accomplishment reports.

(as amended by RA No 10691)

Section 8. Administration of the PESO Program. - The DOLE shall be primarily responsible for the administration of the PESO Program through its Bureau of Local Employment, as well as its regional offices throughout the country. The Secretary of Labor and Employment, in coordination with the Department of the Interior and Local Government and in consultation with the presidents of the various local government leagues, namely the League of Provinces, the League of Cities, the League of Municipalities and the League of Barangays, shall accordingly promulgate, within ninety (90) days from the effectivity of this Act, the necessary rules and regulations for the effective implementation of the Program.

Section 9. Funding. - The funding for the operation and maintenance of the PESO shall be provided by the LGU from its internal revenue allotment and other internally generated income of the LGU concerned. Likewise, the operation and maintenance of the NGO PESOs and job placement offices of Els shall be charged against their internally generated income.

Funds for the provision of technical assistance, training and supervision of the PESO shall be included in the budget of the DOLE in the annual General Appropriations Act.

The amount necessary to implement the provisions of this Act shall be included by the Department of Budget and Management in the annual General Appropriations Act. (as amended by RA No 10691)

Section 10. Repealing Clause. - All laws, decrees, executive orders, rules and regulations or any part thereof which are inconsistent herewith are hereby deemed repealed or modified accordingly.

Section 11. Separability Clause. - If for any reason, any section or provision of this Act or any part thereof, or the application of such section, provision or portion is declared invalid or unconstitutional, the remainder thereof shall not be affected by such declaration.

Section 12. Effectivity. -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: February 14, 2000

Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly compensation as personal share and their employers a corresponding three percent (3%) share for their life insurance coverage.

(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions indicated above, plus any additional premiums that may be required on account of the hazards or risks of its employee’s occupation.

(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual appropriations. Penal sanctions shall be imposed upon employers who fail to include the payment of contributions in their annual appropriations or otherwise fail to remit the accurate/exact amount of contributions on time, or delay the remittance of premium contributions to the GSIS. The heads of offices and agencies shall be administratively liable for non-remittance or delayed remittance of premium contributions to the GSIS.

SECTION 6. Collection and Remittance of Contributions. - (a) The employer shall report to the GSIS the names of all its employees, their corresponding employment status, positions, salaries and such other pertinent information, including subsequent changes therein, if any, as may be required by the GSIS; the employer shall deduct each month from the monthly salary or compensation of each employee the contribution payable by him in accordance with the schedule prescribed in the rules and regulations implementing this Act.

(b) Each employer shall remit directly to the GSIS the employee’s and employer’s contributions within the first ten (10) days of the calendar month following the month to which the contributions apply. The remittance by the employer of the contribution to the GSIS shall take priority over and above the payment of any and all obligations, except salaries and wages of its employees.

SECTION 7. Interest on Delayed Remittances. - Agencies which delay the remittance of any and all monies due the GSIS shall be charged interests as may be prescribed by the Board but not less than two percent (2%) simple interest per month. Such interest shall be paid by the employers concerned.

SECTION 8. Government Guarantee. - The government of the Republic of the Philippines hereby guarantees the fulfillment of the obligations of the GSIS to its members as and when they fall due.

D. BENEFITS

SECTION 9. Computation of the Basic Monthly Pension. - (a) The basic monthly pension is equal to:

1) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus

2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of service in excess of (15) years: Provided, That the basic monthly pension shall not exceed ninety percent (90%) of the average monthly compensation.

(b) The basic monthly pension may be adjusted upon the recommendation of the President and General Manager of the GSIS and approved by the President of the Philippines in accordance with the rules and regulations prescribed by the GSIS: Provided, however, that the basic monthly pension shall not be less than One thousand and three hundred pesos (P1,300.00): Provided, further, that the basic monthly pension for those who have rendered at least twenty (20) years of service after the effectivity of this Act shall not be less than Two thousand four hundred pesos (P2,400.00) a month.

SECTION 10. Computation of Service. - (a) The computation of service for the purpose of determining the amount of benefits payable under this Act shall be from the date of original appointment/election, including periods of service at different times under one or more employers, those performed overseas under the authority of the Republic of the Philippines, and those that may be prescribed by the GSIS in coordination with the Civil Service Commission.

(b) All service credited for retirement, resignation or separation for which corresponding benefits have been awarded under this Act or other laws shall be excluded in the computation of service in case of reinstatement in the service of an employer and subsequent retirement or separation which is compensable under this Act.

For the purpose of this section, the term service shall include full-time service with compensation: Provided, that part-time and other services with compensation may be included under such rules and regulations as may be prescribed by the GSIS.

SEPARATION BENEFITS

SECTION 11. Separation Benefits. - The separation benefits shall consist of: (a) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000) payable upon reaching sixty (60) years of age upon separation, whichever comes later: Provided, that the member resigns or separates from the service after he has rendered at least three (3) years of service but less than fifteen (15) years; or

(b) a cash payment equivalent to eighteen (18) times his basic monthly pension at the time of resignation or separation, plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching the age of sixty (60): Provided, that the member resigns or separates from the service after he has rendered at least fifteen (15) years of service and is below sixty (60) years of age at the time of resignation or separation.

SECTION 12. Unemployment or Involuntary Separation Benefits. - Unemployment benefits in the form of monthly cash payments equivalent to fifty percent (50%) of the average monthly compensation shall be paid to a permanent employee who is involuntarily separated from the service due to the abolition of his office or position usually resulting from reorganization: Provided, That he has been paying integrated contributions for at least one (1) year prior to separation. Unemployment benefits shall be paid in accordance with the following schedules:

Contributions Made Benefit Duration

1 year but less than 3 years 2 months

3 or more years but less than 6 years 3 months

6 or more years but less than 9 years 4 months

9 or more years but less than 11 years 5 months

11 or more years but less than 15 years 6 months

The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7) waiting period shall be imposed on succeeding monthly payments.

All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be deducted from voluntary separation benefits.

The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations implementing this Act.

RETIREMENT BENEFITS

SECTION 13. Retirement Benefits. - (a) Retirement benefits shall be:

(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit equal to the basic monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaranteed period covered by the lump sum; or

(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life payable immediately with no five-year (5) guarantee.

(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee of sixty-five (65) years of age with at least fifteen (15) years of service: Provided, That if he has less than fifteen (15) years of service, he may be allowed to continue in the service in accordance with existing civil service rules and regulations.

SECTION 13-A. Conditions for Entitlement. - A member who retires from the service shall be entitled to the retirement benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That:

(1) he has rendered at least fifteen years of service;

(2) he is at least sixty (60) years of age at the time of retirement; and

(3) he is not receiving a monthly pension benefit from permanent total disability.

SECTION 14. Periodic Pension Adjustment. - The monthly pension of all pensioners including all those receiving survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS actuary and approved by the Board in accordance with the rules and regulations prescribed by the GSIS.

PERMANENT DISABILITY BENEFITS

SECTION 15. General Conditions for Entitlement. - A member who suffers permanent disability for reasons not due to his grave misconduct, notorious negligence, habitual intoxication, or willful intention to kill himself or another, shall be entitled to the benefits provided for under Sections 16 and 17 immediately following, subject to the corresponding conditions thereof.

SECTION 16. Permanent Total Disability Benefits. - (a) If the permanent disability is total, he shall receive a monthly income benefit for life equal to the basic monthly pension effective from the date of disability: Provided, That:

(1) he is in the service at the time of disability; or

(2) if separated from the service, he has paid at least thirty-six (36) monthly contributions within the five (5) year period immediately preceding disability, or has paid a total of at least one hundred eighty (180) monthly contributions, prior to his disability: Provided, further, That if at the time of disability, he was in the service and has paid a total of at least one hundred eighty (180) monthly contributions, in addition to the monthly income benefit, he shall receive a cash payment equivalent to eighteen (18) times his basic monthly pension: Provided, finally, That a member cannot enjoy the monthly income benefit for permanent disability and the old-age retirement simultaneously.

(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of this section but has rendered at least three (3) years of service at the time of his disability, he shall be advanced the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00) which should have been his separation benefit.

(c) Unless the member has reached the minimum retirement age, disability benefit shall be suspended when:

(1) he is reemployed; or

(2) he recovers from his disability as determined by the GSIS, whose decision shall be final and binding; or

(3) he fails to present himself for medical examination when required by the GSIS.

(d) The following disabilities shall be deemed total and permanent:

(1) complete loss of sight of both eyes;

(2) loss of two (2) limbs at or above the ankle or wrist;

(3) permanent complete paralysis of two (2) limbs;

(4) brain injury resulting in incurable imbecility or insanity; and

(5) such other cases as may be determined by the GSIS.

SECTION 17. Permanent Partial Disability Benefits. - (a) If the disability is partial, he shall receive a cash payment in accordance with a schedule of disabilities to be prescribed by the GSIS: Provided, That he satisfies either conditions (1) or (2) of Section 16 (a);

(b) The following disabilities shall be deemed permanent partial:

(1) complete and permanent loss of the use of:

(i) any finger

(ii) any toe

(iii) one arm

(iv) one hand

(v) one foot

(vi) one leg

(vii) one or both ears

(viii) hearing of one or both ears

(ix) sight of both eyes

(2) such other cases as may be determined by the GSIS.

TEMPORARY DISABILITY BENEFITS

SECTION 18. Temporary Total Disability Benefits. - (a) A member who suffers temporary total disability for reasons not due to any of the conditions enumerated in Section 15 hereof shall be entitled to seventy-five percent (75%) of his current daily compensation for each day or fraction thereof of temporary disability benefit not exceeding one hundred twenty (120) days in one calendar year after exhausting all his sick leave credits and collective bargaining agreement sick leave benefits, if any, but not earlier than the fourth day of his temporary total disability: Provided, That:

(1) he is in the service at the time of his disability; or

(2) if separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly contributions in the twelve-month period immediately preceding his disability.

Provided, however, That a member cannot enjoy the temporary total disability benefit and sick leave pay simultaneously: Provided, further, That if the disability requires more extensive treatment that lasts beyond one hundred twenty (120) days, the payment of the temporary total disability benefit may be extended by the GSIS but not to exceed a total of two hundred forty (240) days.

(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70.00) a day.

(c) The notices required of the member and the employer, the mode of payment, and the other requirements for entitlement to temporary total disability benefits shall be provided in the rules and regulations to be prescribed by the GSIS.

SECTION 19. Non-scheduled Disability. - For injuries or illnesses resulting in a disability not listed in the schedule of partial/total disability provided herein, the GSIS shall determined the nature of the disability and the corresponding benefits therefor.

SURVIVORSHIP BENEFITS

SECTION 20. Survivorship Benefits. - When a member or pensioner dies, the beneficiaries shall be entitled to survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. The survivorship pension shall consist of:

(1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension; and

(2) the dependent children’s pension not exceeding fifty percent (50%) of the basic monthly pension

SECTION 21. Death of a Member. - (a) Upon the death of a member, the primary beneficiaries shall be entitled to:

(1) survivorship pension: Provided, That the deceased:

(i) was in the service at the time of his death; or

(ii) if separated from the service, has at least three (3) years of service at the time of his death and has paid thirty-six (36) monthly contributions within the five-year period immediately preceding his death; or has paid a total of at least one hundred eighty (180) monthly contributions prior to his death; or

(2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for every year of service: Provided, That the deceased was in the service at the time of his death with at least three (3) years of service; or

(3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00): Provided, That the deceased has rendered at least three (3) years of service prior to his death but does not qualify for the benefits under item (1) or (2) of this paragraph.

(b) The survivorship pension shall be paid as follows:

(1) when the dependent spouse is the only survivor, he/she shall receive the basic survivorship pension for life or until he/she remarries;

(2) when only dependent children are the survivors, they shall be entitled to the basic survivorship pension for as long as they are qualified, plus the dependent children’s pension equivalent to ten percent (10%) of the basic monthly pension for every dependent child not exceeding five (5), counted from the youngest and without substitution;

(3) when the survivors are the dependent spouse and the dependent children, the dependent spouse shall receive the basic survivorship pension for life or until he/she remarries, and the dependent children shall receive the dependent children’s pension mentioned in the immediately preceding paragraph (2) hereof.

(c) In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled to:

(1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00): Provided, That the member is in the service at the time of his death and has at least three (3) years of service; or

(2) in the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal heirs.

(d) For purposes of the survivorship benefits, legitimate children shall include legally adopted and legitimated children.

SECTION 22. Death of a Pensioner. - Upon the death of an old-age pensioner or a member receiving the monthly income benefit for permanent disability, the qualified beneficiaries shall be entitled to the survivorship pension defined in Section 20 of this Act, subject to the provisions of paragraph (b) of Section 21 hereof. When the pensioner dies within the period covered by the lump sum, the survivorship pension shall be paid only after the expiration of the said period.

FUNERAL BENEFITS

SECTION 23. Funeral Benefits. - The amount of the funeral benefits shall be determined and specified by the GSIS in the rules and regulations but shall not be less than Twelve thousand pesos (P12,000.00): Provided, That it shall be increased to at least Eighteen thousand pesos (P18,000.00) after five (5) years and shall be paid upon the death of:

(a) an active member as defined under Section 2 (e) of this Act; or

(b) a member who has been separated from the service, but who may be entitled to future benefit pursuant to Section 4 of this Act; or

(c) a pensioner, as defined in Section 2 (o) of this Act; or

(d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire under Republic Act No. 1616.

LIFE INSURANCE BENEFITS

SECTION 24. Compulsory Life Insurance. - All employees except for Members of the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP) shall, under such terms and conditions as may be promulgated by the GSIS, be compulsorily covered with life insurance, which shall automatically take effect as follows:

(1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of their employment;

(2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be deemed renewed on the day following the maturity or expiry date of their insurance;

(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect following said effectivity.

SECTION 25. Dividends. - An annual dividend may be granted to all members of the GSIS whose life insurance is in force for at least one (1) year in accordance with a dividends allocation formula to be determined by the GSIS.

SECTION 26. Optional Insurance. - Subject to the rules and regulations prescribed by the GSIS, a member may apply for insurance and/or pre-need coverage embracing life, health, hospitalization, education, memorial plans, and such other plans as may be designed by the GSIS, for himself and/or his dependents. Any employer may likewise apply for group insurance coverage for its employees. The payment of the premiums/installments for optional insurance and pre-need products may be made by the insured or his employer and/or any person acceptable to the GSIS.

SECTION 27. Reinsurance. - The GSIS may reinsure any of its interests or part thereof with any private company or reinsurer whether domestic of foreign: Provided, That the GSIS shall submit an annual report on its reinsurance operations to the Insurance Commission.

E. ADJUDICATION OF CLAIMS AND DISPUTES

SECTION 28. Prescription. - Claims for benefits under this Act except for life and retirement shall prescribe after four (4) years from the date of contingency.

SECTION 29. Facility of Payment. - The GSIS shall prescribe rules and regulations to facilitate payment of benefits, proceeds, and claims under this Act and any other laws administered by the GSIS. Payments made by the GSIS prior to its receipt of an adverse claim, to a beneficiary or claimant subsequently found not entitled thereto, shall not bar the legal and eligible recipient to his right to demand the payment of benefits, proceeds, and claims from the GSIS, who shall, however, have a right to institute the appropriate action in a court of law against the ineligible recipient.

SECTION 30. Settlement of Disputes. - The GSIS shall have original and exclusive jurisdiction to settle any disputes arising under this Act and any other laws administered by the GSIS.

The Board may designate any member of the Board, or official of the GSIS who is a lawyer, to act as hearing officer to receive evidence, make findings of fact and submit recommendations, together with all documentary and testimonial evidence to the Board within thirty (30) working days from the time the parties have closed their respective evidence and filed their last pleading. The Board shall decide the case within thirty (30) days from the receipt of the hearing officer’s findings and recommendations. The cases heard directly by the Board shall be decided within thirty (30) working days from the time they are submitted by the parties for decision.

SECTION 31. Appeals. - Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the 1997 Rules of Civil Procedure adopted by the Supreme Court on April 8, 1997 which will take effect on July 1, 1997: Provided, That pending cases and those filed prior to July 1, 1997 shall be governed by the applicable rules of procedure: Provided, further, That the appeal shall take precedence over all other cases except criminal cases when the penalty of life imprisonment or death or reclusion perpetua is imposable.

The appeal shall not stay the execution of the order or award unless ordered by the Board, by the Court of Appeals or by the Supreme Court and the appeal shall be without prejudice to the special civil action of certiorari when proper.

SECTION 32. Execution of Decision. - When no appeal is perfected and there is no order to stay by the Board, by the Court of Appeals or by the Supreme Court, any decision or award of the Board shall be enforced and executed in the same manner as decisions of the Regional Trial Court. For this purpose, the Board shall have the power to issue to the city or provincial sheriff or its appointed sheriff such writs of execution as may be necessary for the enforcement of such decision or award, and any person who shall fail or refuse to comply with such decision, award, writ or process after being required to do so shall, upon application by the GSIS, be punished for contempt.

SECTION 33. Oaths, Witnesses, and Production of Records. - When authorized by the Board, an official or employee of the GSIS shall have the power to administer oath and affirmation, take deposition, certify to official acts, and issue subpoena ad testificandum and subpoena duces tecum to compel the attendance of witnesses and the production of books, papers, correspondences, and other records deemed necessary as evidence in connection with any question arising under this Act. Any case of contumacy shall be dealt with in accordance with the provisions of Section 580 of the Revised Administrative Code.

F. FUNDS OF THE GSIS

SECTION 34. Funds. - All contributions payable under Section 5 of this Act together with the earnings and accruals thereon shall constitute the GSIS Social Insurance Fund. The said fund shall be used to finance the benefits administered by the GSIS under this Act. In addition, the GSIS shall administer the optional insurance fund for the insurance coverage described in Section 26 hereof, the Employees’ Compensation Insurance Fund created under P.D. 626, as amended, General Insurance Fund created under Act No. 656, as amended, and such other special funds existing or that may be created for special groups or persons rendering services to the government. The GSIS shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act.

The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. Moreover, no portion of the funds of the GSIS or income thereof shall accrue to the General Fund of the national government and its political subdivisions, instrumentalities and other agencies including government-owned and controlled corporations except as may be allowed under this Act.

SECTION 35. Deposits and Disbursements. - All revenues collected and all accruals thereto shall be deposited, administered and disbursed in accordance with the law. A maximum expense loading of twelve percent (12%) of the yearly revenues from all sources may be disbursed for administrative and operational expenses except as may be otherwise approved by the President of the Philippines on the basis of actusans-serif and management studies.

SECTION 36. Investment of Funds. - The funds of the GSIS which are not needed to meet the current obligations may be invested under such terms and conditions and rules and regulations as may be prescribed by the Board: Provided, That investments shall satisfy the requirements of liquidity, safety/security and yield in order to ensure the actusans-serif solvency of the funds of the GSIS: Provided, further, That the GSIS shall submit an annual report on all investments made to both Houses of Congress of the Philippines, to wit:

(a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the Philippines;

(b) in interest-bearing deposits or securities in any domestic bank doing business in the Philippines: Provided, That in the case of such deposits, there shall not exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank, whichever is smaller: Provided, further, That the said bank has prior designation as a depository for the purpose by the Monetary Board of the Central Monetary Authority;

(c) in direct housing loans to members and group housing projects secured by first mortgage, giving priority to the low income groups and in short and medium term loans to members such as salary, policy, educational, emergency stock purchase plan and other similar loans: Provided, That no less than forty percent (40%) of the investible fund of the GSIS Social Insurance Fund shall be invested for these purposes;

(d) in bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to finance the construction, improvement and maintenance of schools and hospitals;

(e) in real estate property including shares of stocks involving real estate property and investments secured by first mortgages on real estate or other collaterals acceptable to the GSIS: Provided, That such investment shall, in the determination of the Board, redound to the benefit of the GSIS, its members as well as the general public;

(f) in debt instruments and other securities traded in the secondary markets;

(g) in loans to, or in bonds, debentures, promissory notes or other evidence of indebtedness of any solvent corporation created or existing under the laws of the Philippines;

(h) in common and preferred stocks of any solvent corporation or financial institution created or existing under the laws of the Philippines listed in the stock exchange with proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period;

(i) in domestic mutual funds including investments related to the operations of mutual funds; and

(j) in foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts, non-speculative equities and other financial instruments or other assets issued in accordance with existing laws of the countries where such financial instruments are issued: Provided, That these instruments or assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided, further, That the issuing company has proven track record of profitability over the last three (3) years and payment of dividends at least once over the same period.

SECTION 37. Records and Reports. - The GSIS shall keep and cause to keep such records as may be necessary for the purpose of making actusans-serif studies, calculations and valuations of the funds of the GSIS including such data needed in the computation of rates of disability, mortality, morbidity, separation and retirement among the members and any other information useful for the adjustment of the benefits of the members. The GSIS shall maintain appropriate books of accounts to record its assets, liabilities, income, expenses, receipts and disbursement of funds and other financial transactions and operations.

SECTION 38. Examination and Valuation of the Funds. - The GSIS shall make a periodic actuarial examination and valuation of its funds in accordance with accepted actusans-serif principles.

SECTION 39. Exemption from Tax, Legal Process and Lien. - It is hereby declared to be the policy of the State that the actuarial solvency of the funds of the GSIS shall be preserved and maintained at all times and that contribution rates necessary to sustain the benefits under this Act shall be kept as low as possible in order not to burden the members of the GSIS and their employers. Taxes imposed on the GSIS tend to impair the actuarial solvency of its funds and increase the contribution rate necessary to sustain the benefits of this Act. Accordingly, notwithstanding any laws to the contrary, the GSIS, its assets, revenues including all accruals thereto, and benefits paid, shall be exempt from all taxes, assessments, fees, charges, or duties of all kinds. These exemptions shall continue unless expressly and specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby considered paid. Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in derogation of this provision are hereby deemed repealed, superseded and rendered ineffective and without legal force and effect.

Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this section is expressly, specifically and categorically revoked or repealed by law and a provision is enacted to substitute or replace the exemption referred to herein as an essential factor to maintain or protect the solvency of the fund, notwithstanding and independently of the guaranty of the national government to secure such solvency or liability.

The funds and/or the properties referred to herein as well as the benefits, sums or monies corresponding to the benefits under this Act shall be exempt from attachment, garnishment, execution, levy or other processes issued by the courts, quasi-judicial agencies or administrative bodies including Commission on Audit (COA) disallowances and from all financial obligations of the members, including his pecuniary accountability arising from or caused or occasioned by his exercise or performance of his official functions or duties, or incurred relative to or in connection with his position or work except when his monetary liability, contractual or otherwise, is in favor of the GSIS.

G. ADMINISTRATION

SECTION 40. Implementing Body. - The Government Service Insurance System as created under Commonwealth Act No. 186 shall implement the provisions of this Act.

SECTION 41. Powers and Functions of the GSIS. - The GSIS shall exercise the following powers and functions:

(a) to formulate, adopt, amend and/or rescind such rules and regulations as may be necessary to carry out the provisions and purposes of this Act, as well as the effective exercise of the powers and functions, and the discharge of duties and responsibilities of the GSIS, its officers and employees;

(b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries and allowances of the GSIS personnel; to authorize such capital and operating expenditures and disbursements of the GSIS as may be necessary and proper for the effective management and operation of the GSIS;

(c) to invest the funds of the GSIS, directly or indirectly, in accordance with the provisions of this Act;

(d) to acquire, utilize or dispose of, in any manner recognized by law, real or personal property in the Philippines or elsewhere necessary to carry out the purposes of this Act;

(e) to conduct continuing actuarial and statistical studies and valuations to determine the financial €condition of the GSIS and taking into consideration such studies and valuations and the limitations herein provided, re-adjust the benefits, contributions, premium rates, interest rates or the allocation or re-allocation of the funds to the contingencies covered;

(f) to have the power of succession;

(g) to sue and be sued;

(h) to enter into, make, perform and carry out contracts of every kind and description with any person, firm or association or corporation, domestic or foreign;

(i) to carry on any other lawful business whatsoever in pursuance of, or in connection with the provisions of this Act;

(j) to have one or more offices in and outside of the Philippines, and to conduct its business and exercise its powers throughout and in any part of the Republic of the Philippines and/or in any or all foreign countries, states and territories: Provided, That the GSIS shall maintain a branch office in every province where there exists a minimum of fifteen thousand (15,000) membership;

(k) to borrow funds from any source, private or government, foreign or domestic, only as an incident in the securitization of housing mortgages of the GSIS and on account of its receivables from any government or private entity;

(l) to invest, own or otherwise participate in equity in any establishment, firm or entity;

(m) to approve appointments in the GSIS except appointments to positions which are policy determining, primarily confidential or highly technical in nature according to the Civil Service rules and regulations: Provided, That all positions in the GSIS shall be governed by the compensation and position classification system and qualifications standards approved by the GSIS Board of Trustees based on a comprehensive job analysis and audit of actual duties and responsibilities: Provided, further, That the compensation plan shall be comparable with the prevailing compensation plans in the private sector and shall be subject to the periodic review by the Board no more than once every four (4) years without prejudice to yearly merit reviews or increases based on productivity and profitability;

(n) to design and adopt an Early Retirement Incentives Plan (ERIP) and/or financial assistance for the purpose of retirement for its own personnel;

(o) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to members or other persons, whether natural or juridical;

(p) to enter into agreement with the Social Security System or any other entity, enterprise, corporation or partnership for the benefit of members transferring from one system to another subject to the provisions of Republic Act No. 7699, otherwise known as the Portability Law;

(q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term secondary market;

(r) to submit annually, not later than June 30, a public report to the President of the Philippines and the Congress of the Philippines regarding its activities in the administration and enforcement of this Act during the preceding year including information and recommendations on board policies for the development and perfection of the programs of the GSIS;

(s) to maintain a provident fund, which consists of contributions made by both the GSIS and its officials and employees and their earnings, for the payments of benefits to such officials and employees or their heirs under such terms and conditions as it may prescribe;

(t) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement of claims, disposition of acquired assets, privatization or expansion of subsidiaries, development of housing projects, increased benefit and loan packages to members, and the enforcement of the provision of this Act;

(u) any provision of law to the contrary notwithstanding, to authorize the payment of extra remuneration to the officials and employees directly involved in the collection and/or remittances of contributions, loan repayments, and other monies due to the GSIS at such rates and under such conditions as it may adopt: Provided, That the best interest of the GSIS shall be observed thereby;

(v) to determine, fix and impose interest upon unpaid premiums due from employers and employees;

(w) to ensure the collection or recovery of all indebtedness, liabilities and/or accountabilities, including unpaid premiums or contributions in favor of the GSIS arising from any cause or source whatsoever, due from obligors, whether public or private. The Board shall demand payment or settlement of the obligations referred to herein within thirty (30) days from the date the obligation becomes due, and in the event of failure or refusal of the obligor or debtor to comply with the demand, to initiate or institute the necessary or proper actions or suits, criminal, civil or administrative or otherwise, before the courts, tribunals, commissions, boards, or bodies of proper jurisdiction within thirty (30) days reckoned from the expiry date of the period fixed in the demand within which to pay or settle the account;

(x) to design and implement programs that will promote and mobilize savings and provide additional resources for social security expansion and at the same time afford individual members appropriate returns on their savings/investments. The programs shall be so designed as to spur socio-economic take-off and maintain continued growth; and

(y) to exercise such powers and perform such other acts as may be necessary, useful, incidental or auxiliary to carry out the provisions of this Act, or to attain the purposes and objectives of this Act.

SECTION 42. The Board of Trustees; its Composition; Tenure and Compensation. - The corporate powers and functions of the GSIS shall be vested in and exercised by the Board of Trustees composed of the President and General Manager of the GSIS and eight (8) other members to be appointed by the President of the Philippines, one (1) of whom shall be either the President of the Philippine Public School Teachers Association (PPSTA) or the President of the Philippine Association of School Superintendents (PASS), another two (2) shall represent the leading organizations or associations of government employees/retirees, another four (4) from the banking, finance, investment, and insurance sectors, and one (1) recognized member of the legal profession who at the time of appointment is also a member of the GSIS. The Trustees shall elect from among themselves a Chairman while the President and General Manager of the GSIS shall automatically be the vice-chairman.

The Trustees, except the President and General Manager who shall cease as trustee upon his separation, shall hold office for six (6) years without reappointment, or until their successors are duly appointed and qualified. Vacancy, other than through the expiration of the term, shall be filled for the unexpired term only. The members of the Board shall be entitled to a per diem of Two thousand five hundred pesos (P2,500.00) for each board meeting actually attended by them, but not to exceed Ten thousand pesos (P10,000.00) a month and reasonable transportation and representation allowances as may be fixed by the Board.

SECTION 43. Powers and Functions of the Board of Trustees. - The Board of Trustees shall have the following powers and functions:

(a) to formulate the policies, guidelines and programs to effectively carry out the purposes of this Act;

(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise of the powers and functions as well as the discharge of the duties and responsibilities of the GSIS, its officers and employees;

(c) upon the recommendation of the President and General Manager, to approve the annual and supplemental budget of receipts and expenditures of the GSIS, and to authorize such operating and capital expenditures and disbursements of the GSIS as may be necessary or proper for the effective management, operation and administration of the GSIS;

(d) upon the recommendation of the President and General Manager, to approve the GSIS organizational and administrative structure and staffing pattern, and to establish, fix, review, revise and adjust the appropriate compensation packages for the officers and employees of the GSIS and reasonable allowances, incentives, bonuses, privileges and other benefits as may be necessary or proper for the effective management, operation and administration of the GSIS, which shall be exempt from Republic Act No. 6758, otherwise known as the Attrition Law;

(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and credits extended to its members or other persons, whether natural or juridical;

(f) the provision of any law to the contrary notwithstanding, to compromise or release, in whole or in part, any claim or settle liability to the GSIS, regardless of the amount involved, under such terms and conditions as it may impose for the best interest of the GSIS;

(g) to approve and adopt guidelines affecting investments, insurance coverage of government properties, settlement of claims, disposition of acquired assets, development of housing projects, increased benefit and loan packages to members, and the enforcement of the provisions of this Act;

(h) to determine, fix, and impose interest upon unpaid or unremitted premiums and/or contributions; and

(i) to do and perform any and all acts necessary, proper or incidental to the attainment of the purposes and objectives of this Act.

SECTION 44. Appointment, Qualifications, and Compensation of the President and General Manager and of other Personnel. - The President and General Manager of the GSIS shall be its Chief Executive Officer and shall be appointed by the President of the Philippines. He shall be a person with management and investments expertise necessary for the effective performance of his duties and functions under this Act.

The GSIS President and General Manager shall be assisted by one or more executive vice-presidents, senior vice-presidents and managers in addition to the usual supervisory and rank-and-file positions who shall be appointed and removed by the President and General Manager with the approval of the Board, in accordance with the existing Civil Service rules and regulations.

SECTION 45. Powers and Duties of the President and General Manager. - The President and General Manager of the GSIS shall, among others, execute and administer the policies and resolutions approved by the Board and direct and supervise the administration and operations of the GSIS. The President and General Manager, subject to the approval of the Board, shall appoint the personnel of the GSIS, remove, suspend or otherwise discipline them for cause, in accordance with the existing Civil Service rules and regulations, and prescribe their duties and qualifications to the end that only competent persons may be employed.

SECTION 46. Auditor. - (a) The Chairman of the Commission on Audit shall be the ex officio auditor of the GSIS, and the necessary personnel to assist said representative in the performance of his duties.

(b) The Chairman of the Commission on Audit or his authorized representatives, shall submit to the Board soon after the close of each calendar year, an audited statement showing the financial condition and progress of the GSIS for the calendar year just ended.

SECTION 47. Legal Counsel. - The Government Corporate Counsel shall be the legal adviser and consultant of the GSIS, but the GSIS may assign to the Office of the Government Corporate Counsel (OGCC) cases for legal action or trial, issues for legal opinions, preparation and review of contracts/agreements and others, as the GSIS may decide or determine from time to time: Provided, however, That the present legal services group in the GSIS shall serve as its in-house legal counsel.

The GSIS may, subject to approval by the proper court, deputize any personnel of the legal service group to act as special sheriff in the enforcement of writs and processes issued by the court, quasi-judicial agencies or administrative bodies in cases involving the GSIS.

SECTION 48. Powers of the Insurance Commission. - The Insurance Commissioner or his authorized representatives shall make an examination of financial condition and methods of transacting business of the GSIS at least once every three (3) years and the report of said examination shall be submitted to the Board of Trustees and copies thereof be furnished the Office of the President of the Philippines and the two houses of the Congress of the Philippines within five (5) days after the close of examination: Provided, however, That for each examination, the GSIS shall pay the office of the Insurance Commissioner an amount equal to the actual expenses incurred by the said office in the conduct of examination, including the salaries of the examiners and of the actuary of such examination for the actual time spent.

H. GENERAL PROVISION

SECTION 49. Dispensation of Social Insurance Benefits. - (a) The GSIS shall pay the retirement benefits to the employee on his last day of service in the government: Provided, That all requirements are submitted to the GSIS within a reasonable period prior to the effective date of the retirement;

(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R.A. No. 1616 except refund of retirement premium under R. A. No. 910. Instead, all agencies concerned shall process and pay the gratuities of their employees. The Board shall adopt the proper rules and procedures for the implementation of this provision.

SECTION 50. Development and Disposition of Acquired Assets. - The GSIS shall have the right to develop and dispose of its acquired assets obtained in the ordinary course of its business. To add value to, improve profitability on, and/or enhance the marketability of an acquired asset, the GSIS may further develop/renovate the same either with its own capital or through a joint venture arrangement with private companies or individuals.

The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules and regulations for an amount not lower than the current market value of the property. For this purpose, the GSIS shall conduct an annual appraisal of its property or acquired assets to determine its current market value. All notices of sale shall be published in newspapers of general circulation.

No injunction or restraining order issued by any court, commission, tribunal or office shall bar, impede or delay the sale and disposition by the GSIS of its acquired assets except on questions of ownership and national or public interest.

SECTION 51. Government Assistance to the GSIS. - The GSIS may call upon any employer for such assistance as may be necessary in the discharge of its duties and functions.

I. PENAL PROVISIONS

SECTION 52. Penalty. - (a) Any person found to have participated directly or indirectly in the commission of fraud, collusion, falsification, or misrepresentation in any transaction with the GSIS, whether for him or for some other persons, shall suffer the penalties provided for in Article 172 of the Revised Penal Code.

(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement thereunder, without being entitled thereto with the intent to defraud any member, any employer, the GSIS, or any third party, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.

(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations adopted by the GSIS, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) or imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court.

(d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other official or employee who fails to include in the annual budget the amount corresponding to the employer and employee contributions, or who fails or refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable, or to deduct the monthly contributions of the employee shall, upon conviction by final judgment, suffer the penalties of imprisonment from six (6) months and one (1) day to six (6) years, and a fine of not less than Three thousand pesos (P3,000.00) but not more than Six thousand pesos (P6,000.00), and in addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

(e) Any employee or member who receives or keeps fund or property belonging, payable or deliverable to the GSIS and appropriates the same, or takes or misappropriates or uses the same for any purpose other than authorized by this Act, or permits another person to take, misappropriate or use said fund or property by expressly consenting thereto, or through abandonment or negligence, or is otherwise guilty of the misappropriation of said fund or property, in whole or in part, shall suffer the penalties provided in Article 217 of the Revised Penal Code, and in addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

(f) Any employee who, after deducting the monthly contribution or loan amortization from a member’s compensation, fails to remit the same to the GSIS within thirty (30) days from the date they should have been remitted under Section 6(a), shall be presumed to have misappropriated such contribution or loan amortization and shall suffer the penalties provided in Article 315 of the Revised Penal Code, and in addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

(g) The heads of the offices of the national government, its political subdivisions, branches, agencies and instrumentalities, including government-owned or controlled corporations and government financial institutions, and the personnel of such offices who are involved in the collection of premium contributions, loan amortization and other accounts due the GSIS who shall fail, refuse or delay the payment, turnover, remittance or delivery of such accounts to the GSIS within thirty (30) days from the time that the same shall have been due and demandable shall, upon conviction by final judgment, suffer the penalties of imprisonment of not less than one (1) year nor more than five (5) years and a fine of not less than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos (P20,000.00), and in addition, shall suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling licensed by the government.

(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only criminally but also civilly to the GSIS or to the employee or member concerned in the form of damages, including surcharges and interests.

(i) For the charges or complaints referred to in paragraph (g) of this section, the liabilities therein set forth shall be construed as waiver of the State of its immunity from suit, hence, the above-mentioned officials and/or personnel may not invoke the defense of non-suability of the State.

(j) Failure of the Members of the GSIS Board, including the chairman and the vice-chairman, to comply with the provisions of paragraph (w) of Section 41 hereof, shall subject them to imprisonment of not less than six (6) months nor more than one (1) year or a fine of not less than Five thousand pesos (P5,000.00) nor more than Ten thousand pesos (P10,000.00) without prejudice to any civil or administrative liability which may also arise therefrom.

(k) Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the aggrieved member, either under this Act or, in appropriate cases, under the Revised Penal Code.

SECTION 53. Implementing Rules and Regulations. - The implementing rules and regulations to carry out the provisions of this Act shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this Act.

SECTION 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and Activities. -Nothing in this Act shall be construed to repeal, amend or limit any provision of existing laws, Presidential Decrees and Letters of Instructions, not otherwise specifically inconsistent with the provisions of this Act.

SECTION 55. Exclusiveness of Benefits. - Whenever other laws provide similar benefits for the same contingencies covered by this Act, the member who qualifies to the benefits shall have the option to choose which benefits will be paid to him. However, if the benefits provided by the law chosen are less than the benefits provided under this Act, the GSIS shall pay only the difference.

SECTION 56. Appropriations. - The amount necessary to carry out the provisions of this Act shall be included in the respective budgets of the agencies in the national government obligation program of the year following its enactment into law and thereafter.

Section 2. Separability Clause. - Should any provision of this Act or any part thereof be declared invalid, the other provisions, so far as they are separable from the invalid ones, shall remain in force and effect.

Section 3. Repealing Clause. - All laws and any other law or parts of law specifically inconsistent herewith are hereby repealed or modified accordingly: Provided, That the rights under the existing laws, rules and regulations vested upon or acquired by an employee who is already in the service as of the effectivity of this Act shall remain in force and effect: Provided, further, That subsequent to the effectivity of this Act, a new employee or an employee who has previously retired or separated and is reemployed in the service shall be covered by the provisions of this Act.

Section 4. Effectivity. - 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.

This Act, which is a consolidation of Senate Bill No. 2013 and House Bill No. 8561, was finally passed by the Senate and the House of Representatives on May 29, 1997 and May 28, 1997, respectively.

Approved: May 30, 1997.

June 7, 1995

AN ACT TO INSTITUTE THE POLICIES OF OVERSEAS EMPLOYMENT AND ESTABLISH A HIGHER STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES

Omnibus Rules and Regulations Implementing the Migrant Workers and Overseas Filipino Act of 1995, IRR-RA 8042, [February 29, 1996]

Insurance Guidelines on Rule XVI of the Omnibus Rules and Regulations Implementing Republic Act 8042 (The Migrant Workers and Overseas Filipinos Act of 1995), as Amended by Republic Act 10022 Relative to Compulsory Insurance Coverage for Agency-Hired Overseas Filipino Workers, [September 8, 2010]

Omnibus Rules and Regulations Implementing the Migrant Workers and Overseas Filipinos Act of 1995, as Amended by Republic Act No. 10022, [July 8, 2010])

SECTION 1. Short Title. — This Act shall be known and cited as the "Migrant Workers and Overseas Filipinos Act of 1995."

SECTION 2. Declaration of Policies. —

(a) In the pursuit of an independent foreign policy and while considering national sovereignty, territorial integrity, national interest and the right to self-determination paramount in its relations with other states, the State shall, at all times, uphold the dignity of its citizens whether in country or overseas, in general, and Filipino migrant workers, in particular, continuously monitor international conventions, adopt/be signatory to and ratify those that guarantee protection to our migrant workers, and endeavor to enter into bilateral agreements with countries hosting overseas Filipino workers. (As amended by RA No 10022, [March 8, 2010])

(b) 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. Towards this end, the State shall provide adequate and timely social, economic and legal services to Filipino migrant workers, especially for workers who are vulnerable to physical, emotional, and psychological stress or abuse. (as amended by RA No 11299)

(c) While recognizing the significant contribution of Filipino migrant workers to the national economy through their foreign exchange remittances, the State does not promote overseas employment as a means to sustain economic growth and achieve national development. The existence of the overseas employment program rests solely on the assurance that the dignity and fundamental human rights and freedoms of the Filipino citizen shall not, at any time, be compromised or violated. The State, therefore, shall continuously create local employment opportunities and promote the equitable distribution of wealth and the benefits of development.

(d) The State affirms the fundamental equality before the law of women and men and the significant role of women in nation-building. Recognizing the contribution of overseas migrant women workers and their particular vulnerabilities, the State shall apply gender sensitive criteria in the formulation and implementation of policies and programs affecting migrant workers and the composition of bodies tasked for the welfare of migrant workers.

(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty. In this regard, it is imperative that an effective mechanism be instituted to ensure that the rights and interest of distressed overseas Filipinos, in general, and Filipino migrant workers, in particular, whether regular/documented or irregular/undocumented, are adequately protected and safeguarded. (As amended by RA No 10022, [March 8, 2010])

(f) The right of Filipino migrant workers and all overseas Filipinos to participate in the democratic decision-making processes of the State and to be represented in institutions relevant to overseas employment is recognized and guaranteed.

(g) The State recognizes that the most effective tool for empowerment is the possession of skills by migrant workers. The government shall provide them free and accessible skills development and enhancement programs. Pursuant to this and as soon as practicable, the government shall deploy and/or allow the deployment only of skilled Filipino workers. (As amended by RA No 10022, [March 8, 2010])

(h) The State recognizes non-governmental organizations, trade unions, workers associations, stakeholders and other similar entities duly recognized as legitimate, are partners of the State in the protection of Filipino migrant workers and in the promotion of their welfare. The State shall cooperate with them in a spirit of trust and mutual respect. The significant contribution of recruitment and manning agencies shall form part of this partnership. (As amended by RA No 10022, [March 8, 2010])

(i) Government fees and other administrative costs of recruitment, introduction, placement and assistance to migrant workers shall be rendered free without prejudice to the provision of Section 36 hereof.

Nonetheless, the deployment of Filipino overseas workers, whether land-based or sea-based, by local service contractors and manning agencies employing them shall be encouraged. Appropriate incentives may be extended to them.

SECTION 3. Definitions. — For purposes of this Act:

(a)"Overseas Filipino worker" refers to a person who is to be engaged, is engaged or has been engaged in a remunerated activity in a state of which he or she is not a citizen or on board a vessel navigating the foreign seas other than a government ship used for military or non-commercial purposes or on an installation located offshore or on the high seas; to be used interchangeably with migrant worker. (As amended by RA No 10022, [March 8, 2010])

(b)"Gender-sensitivity" shall mean cognizance of the inequalities and inequities prevalent in society between women and men and a commitment to address issues with concern for the respective interests of the sexes.

(c)"Overseas Filipinos" refers to dependents of migrant workers and other Filipino nationals abroad who are in distress as mentioned in Sections 24 and 26 of this Act.

I. Deployment

SECTION 4. Deployment of Migrant Workers. — The State shall allow the deployment of overseas Filipino workers only in countries where the rights of Filipino migrant workers are protected. The government recognizes any of the following as a guarantee on the part of the receiving country for the protection of the rights of overseas Filipino workers:

(a) It has existing labor and social laws protecting the rights of workers, including migrant workers;

(b) It is a signatory to and/or a ratifier of multilateral conventions, declarations or resolutions relating to the protection of workers, including migrant workers; and

(c) It has concluded a bilateral agreement or arrangement with the government on the protection of the rights of overseas Filipino Workers:

Provided, That the receiving country is taking positive, concrete measures to protect the rights of migrant workers in furtherance of any of the guarantees under subparagraphs (a), (b) and (c) hereof.

In the absence of a clear showing that any of the aforementioned guarantees exists in the country of destination of the migrant workers, no permit for deployment shall be issued by the Philippine Overseas Employment Administration (POEA).

The members of the POEA Governing Board who actually voted in favor of an order allowing the deployment of migrant workers without any of the aforementioned guarantees shall suffer the penalties of removal or dismissal from service with disqualification to hold any appointive public office for five (5) years. Further, the government official or employee responsible for the issuance of the permit or for allowing the deployment of migrant workers in violation of this section and in direct contravention of an order by the POEA Governing Board prohibiting deployment shall be meted the same penalties in this section.

For this purpose, the Department of Foreign Affairs, through its foreign posts, shall issue a certification to the POEA, specifying therein the pertinent provisions of the receiving country's labor/social law, or the convention/declaration/resolution, or the bilateral agreement/arrangement which protect the rights of migrant workers.

The State shall also allow the deployment of overseas Filipino workers to vessels navigating the foreign seas or to installations located offshore or on high seas whose owners/employers are compliant with international laws and standards that protect the rights of migrant workers.

The State shall likewise allow the deployment of overseas Filipino workers to companies and contractors with international operations: Provided, That they are compliant with standards, conditions and requirements, as embodied in the employment contracts prescribed by the POEA and in accordance with internationally-accepted standards. (As amended by RA No 10022, [March 8, 2010])

SECTION 5. Termination or Ban on Deployment. — Notwithstanding the provisions of Section 4 hereof, in pursuit of the national interest or when public welfare so requires, the POEA Governing Board, after consultation with the Department of Foreign Affairs, may, at any time, terminate or impose a ban on the deployment of migrant workers. (As amended by RA No 10022, [March 8, 2010])