Seventeenth Congress of The Republic of The Philippines First Regular Session

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SEVENTEENTH CONGRESS OF THE

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REPUBLIC OF THE PHILIPPINES


First Regular Session
S E NAT B ILLS id
S. B.No. 1 1 7
Introduced by Senator Aquilino Koko9 Pimentel HI

AN ACT
STRENGTHENING THE PROHIBITION AGAINST LABOR-ONLY
CONTRACTING, AMENDING FOR THIS PURPOSE
PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS
THE LABOR CODE OF THE PHILIPPINES, AS AMENDED

EXPLANATORY NOTE

Article II, Section 18 of the 1987 Constitution provides that [t]he State
affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare. Article XllI, Section 3 also states that
[t]he State shall afford full protection to labor, local and overseas, organized
and unorganized, and promote full employment and equality of employment
opportunities for all. The same provision further mandates the right of all
workers to security of tenure, humane conditions of work, and a living wage.

To implement these constitutional guarantees. Presidential Decree No.


442, otherwise known as The Labor Code of the Philippines, as amended,
was enforced. P.D. No. 442 construes security of tenure to mean that in cases
of regular employment, the employer shall not terminate the services of an
employee without just or authorized cause.

Despite the rights of the workers under constitutional and labor laws,
there are employers who wantonly circumvent labor laws through a system
that is designed to prevent workers from attaining regular employment and
security of tenure, such as by terminating employment every five months and
thereafter rehiring the same workers for the same duration, or by denying the
existence of employer-employee relationship by engaging the

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