Modifying the Prescriptive Period of Money Claims

Senate Office of the Secretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 26 MAY 25 P3:35 SENATE RECEIVED BY: S. No. 2158 Introduced by Senator Raffy T. Tulfo AN ACT MODIFYING THE PRESCRIPTIVE PERIOD OF MONEY CLAIMS ARISING OUT OF EMPLOYER-EMPLOYEE RELATIONS AMENDING FOR THIS PURPOSE ARTICLE 306 OF PRESIDENTIAL DECREE NUMBER 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES EXPLANATORY NOTE The relation of an employee to his or her employer is inherently one possessed of disadvantage on the part of the laborer. Such status is already a matter of notice both in our Constitution, in our current Labor Code, and in various jurisprudence interpreting provisions of laws regarding labor standards and labor relations. As applied in real life, this disadvantageous position most often results to the inability of the employee to institute any suit, criminal, civil, or administrative against his or her employer for fear that the employer may terminate their employment legally or illegally. This situation, combined with the current prescriptive period provided for money claims arising out of employee-employer relationship set forth in Article 306 of our Labor Code has brought about many instances where the aggrieved employee is left to retrieve only a pittance of the amount unjustly taken or withheld by the employer. To rectify this imbalance, the Legislative must put into consideration the impracticality of instituting any suit during the pendency of the Employee-Employer relationship to ensure full recovery of any unjust withholding or taking of wages due to every Filipino. By extending the prescriptive period to allow for full recovery until three years after the termination of the Employee-Employer relationship, it is guaranteed that the

employee will not have to choose between their job security or enforcing their legal right to a fair wage. In view of the foregoing, immediate approval of this measure is earnestly sought. RAFFY T. TULFO

Senate Office of the Serretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 26 MAY 25 P3:35 SENATE RECEIVED BY: S. No. 2158 Introduced by Senator Raffy T. Tulfo AN ACT MODIFYING THE PRESCRIPTIVE PERIOD OF MONEY CLAIMS ARISING OUT OF EMPLOYER-EMPLOYEE RELATIONS AMENDING FOR THIS PURPOSE ARTICLE 306 OF PRESIDENTIAL DECREE NUMBER 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES Be it enacted by the Senate and House of Representatives of the Philippines in Congress Assembled:

Section 1. Article 306 of Presidential Decree No. 442, as amended, otherwise

2 known as the Labor Code of the Philippines, is hereby amended to read as follows: "Article 306. Money Claims. All money claims arising from employer-employee relations accruing during the effectivity of this Code [shall] MAY be filed [within] UNTIL three (3) years from the [time the cause of action accrued] DATE OF TERMINATION OF THE EMPLOYER-EMPLOYEE RELATIONSHIP; otherwise they shall be forever barred. XXX"

Sec. 2. Implementing Rules and Regulations. - The Secretary of Labor and

Employment is hereby authorized to promulgate such rules and regulations as may be necessary to implement the provisions of this Act.

Sec. 3. Separability Clause. - If any provision of this Act is declared

unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 4. Repealing Clause. - All laws, presidential decrees, executive orders, letters

2 of instruction, proclamations or administrative regulations that are inconsistent with 3 the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 5. Effectivity. - Notwithstanding the non-issuance of the implementing rules

5 and regulations, this Act shall take effect fifteen (15) days after its publication in the 6 Official Gazette or in a newspaper of general circulation. Approved,