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BillSBN-4120th Congress

Security of Tenure and End of Endo Act

In committee Filed Jul 2, 2025
◷ Where it standsIn Committee
FiledCommittee2nd Reading3rd ReadingBicamEnacted

Filed on July 2, 2025, and referred to the Committee on Labor, Employment and Human Resources Development; it has been pending in committee since April 22, 2026, with no recorded action since then.

Should you care?
Relevance to you
Broad

The bill addresses widespread issues of job security and labor rights in the Philippines.

Workers in the labor forceJob contractorsEmployersDepartment of Labor and Employment
Timeliness
Timely

The bill responds to ongoing issues of job security and labor rights in the Philippines.

Affects you ifJob contractorsEmployees in temporary workLabor unionsEmployers in various sectors
Impact assessment
AI read — verify with source
Overall impact
8.0/ 10
Long title

Security of Tenure and End of Endo Act

Plain-language summary
AI Summary

Senate Bill No. 41 aims to strengthen workers' rights to security of tenure by amending various articles of the Labor Code. It seeks to prohibit labor-only contracting, establish licensing requirements for job contractors, and clarify employment statuses, among other provisions.

What this bill actually requires
RequiresProhibits labor-only contracting, defining it clearly and establishing that workers in such arrangements are regular employees of the contractee.
RequiresMandates that job contractors must obtain a license from the Department of Labor and Employment (DOLE) and comply with specific requirements, including having a paid-up capital of at least ₱5 million.
RequiresEstablishes a Transition Support Program to provide financial support for employees between job periods, conditioned on skills training.
FundsThe Transition Support Program will be funded by 100% of the registration/renewal fees paid by contractors, all fines collected under Article 106, and funds from the Adjustment Measure Program of DOLE.
PenalizesThe Secretary of Labor and Employment may impose a fine of up to ₱5 million against any labor-only contractor found in violation of the provisions.
DeadlineDOLE must promulgate implementing rules and regulations within 120 days from the effectivity of this Act.
DeadlineThe Act will take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
ⓘ AI-generated — verify with the source.↗ Official Senate PDF
What changes from current law

Compared with current law:

Today

Labor-only contracting is currently allowed under certain conditions.

This bill

Labor-only contracting will be strictly prohibited, and workers in such arrangements will be deemed regular employees.

Today

Job contractors can operate without a specific licensing requirement.

This bill

All job contractors must obtain a license from DOLE, ensuring compliance with labor laws.

Today

Workers may face job insecurity during transitions between contracts.

This bill

A Transition Support Program will provide financial assistance during job transitions.

ⓘ AI-generated comparison — verify against the bill and the cited law.
Ask this bill

The main purpose of Senate Bill No. 41 is to strengthen workers' rights to security of tenure by prohibiting labor-only contracting and ensuring that workers are recognized as regular employees.

Source · full text
Issue areas
LaborSocial WelfareLaborJob SecurityDepartment of Labor and EmploymentWorkers' rightsTransition Support Program

✦ Dashed tags are AI-suggested nuance; solid tags follow the committee taxonomy.

Legislative history
Jul 2, 2025Senate
Introduced by Senator JOEL VILLANUEVA;
Jul 29, 2025Senate
Read on First Reading and Referred to the Committee on LABOR, EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT;
Apr 22, 2026Senate
Conducted COMMITTEE MEETINGS/HEARINGS;
✦ AI insight

Stalled: the bill has been pending in the committee for over 6 months with no action since the last committee meeting on April 22, 2026.

Tap a term to decode it
Floor activity

No floor deliberations yet — this measure has not reached plenary. Its committee-stage actions appear under Legislative history above.

Full text
SBN-41 — verbatim textAs filed

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P5:27 RECENT. SENATE Senate Bill No. Introduced by Senator JOEL VILLANUEVA AN ACT STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, AMENDING FOR THE PURPOSE ARTICLES 106, 107, 108, AND 109 OF BOOK III, AND ARTICLES 294 [279], 295 [280], 296 [281], AND 297 [282] OF BOOK VI OF PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED EXPLANATORY NOTE "STOP ENDO" or "STOP CONTRACTUALIZATION" has been the longstanding and resounding call of workers across the country. The practice of end-of-contract (ENDO) or repeated short-term employment without the possibility of regularization is oppressive and directly undermines the constitutional rights of workers. As enshrined in Article XIII, Section 3, 1987 Constitution, these rights include the right to security of tenure, humane working conditions, the right to organize and collectively bargain, to engage in peaceful concerted activities including strikes in accordance with law, to receive a living wage, and to participate in decisions affecting their rights and benefits. This bill primarily seeks to clarify and strengthen the definition of labor-only contracting (LOC) to close existing loopholes that allow its continued abuse. Specifically, the bill provides that LOC exists when: a) The contractor merely supplies workers to the principal; b) The workers supplied are performing tasks directly related to the principal business of the contractee; and c) The contractor does not exercise direct control over the deployed workers. The inclusion of "performance of directly related tasks" as an indicator of LOC addresses the practice of wholesale outsourcing of core functions, which undermines the constitutional guarantee of security of tenure.

This provision has been favorably endorsed by the Department of Labor and Employment (DOLE)-the primary agency charged with enforcing the Labor Code- based on its practical experience with enforcement and litigation. DOLE notes that this amendment will simplify the interpretation and implementation of the law and reduce legal ambiguity. It also addresses the growing trend of employers invoking "substantial capitalization" to avoid a finding of LOC, as cited in Supreme Court rulings, even when core functions are clearly being outsourced. The bill also empowers industry tripartite councils to determine which jobs are directly related to the principal business of a contractee or principal. This recognizes that the nature of work is rapidly evolving due to technological innovation. What may be integral to a company's core business today may become peripheral tomorrow. For instance, restaurants are increasingly using automated kiosks for ordering and payment, while toll roads are replacing manual toll collectors with RFID systems. Through the tripartite process, workers can voice their concerns about job outsourcing, while employers can present the operational realities and evolving demands of their businesses. This framework ensures that labor policy remains relevant, flexible, and balanced. Moreover, this measure will help stabilize regulatory enforcement. Currently, determinations about whether a task is directly related to a business vary among DOLE inspectors, regional directors, and even the Secretary of Labor. Courts, including the Court of Appeals and Supreme Court, likewise make independent and often conflicting assessments. The absence of a consistent standard leads to unnecessary litigation and uncertainty. By establishing an industry-defined list of allowable and prohibited outsourced functions, this bill reduces discretion and fosters clarity for all stakeholders. Under this bill, labor inspections will focus on the following: a) Whether the contracted function appears in the industry's approved positive or negative list; b) Whether the contractor is simply supplying labor; and c) Whether the contractor maintains control and supervision over the deployed workers. Compliance with capital requirements and possession of necessary tools and equipment will be assessed during the contractor's application for a DOLE license. Unlike mere registration, a license constitutes a government-issued assurance that the contractor meets the standards outlined in the law. Any wrongful issuance of such a license will render the responsible DOLE official administratively liable, alongside the contractor who may be found to have fraudulently obtained it. The bill also mandates that contractors must secure a DOLE license by demonstrating substantial capital, maintaining an independent business, employing regular workers, and complying with labor laws and social protection contributions, including SSS, PhilHealth, and Pag-IBIG.

Additionally, the bill streamlines employment classification to only regular and probationary statuses. Project and seasonal workers are recognized as regular employees for the duration of the project or season, respectively. All other forms of non-standard employment are strictly prohibited. Workers are the backbone of our economy; protecting their rights and upholding the dignity of work are fundamental to national progress. The immediate enactment of this landmark Security of Tenure and End of Endo bill is long overdue and is earnestly sought.

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JUL -2 P5:27 SENATE Senate Bill No. _ Introduced by Senator JOEL VILLANUEVA AN ACT STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, AMENDING FOR THE PURPOSE ARTICLES 106, 107, 108, AND 109 OF BOOK III, AND ARTICLES 294 [279], 295 [280], 296 [281], AND 297 [282] OF BOOK VI OF PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1, Short Title. - This Act shall be known as the "Security of

Tenure and End of Endo Act."

SEC. 2. Article 106, Title II, Book III of the Labor Code of the Philippines,

as amended, is hereby amended to read as follows: "ARTICLE 106. [Contractor or Subcontractor] PROHIBITION ON LABOR-ONLY CONTRACTING. - [Whenever an employer enters into a contract with another person for the performance of the former's work, the employees of the contractor and of the latter's subcontractor, if any, shall be paid in accordance with the provisions of this Code. In the event that the contractor of subcontractor fails to pay the wages of his employees in accordance with this Code, the employer shall be jointly and severally liable with his contractor of

subcontractor to such employees to the extent of the work performed under the contract, in the same manner and extent that he is liable to employees directly employed by him. The Secretary of Labor and Employment, may by appropriate regulations, restrict or prohibit the contracting out of labor to protect the rights of workers established under this Code. In se prohibiting or restricting, he may make appropriate distinctions between labor only contracting and job contracting as well as differentiations within these types of contracting and determine who among the parties involved shall be considered the employer for the purposes of this code, to prevent any violation or circumvention of this Code.] LABOR-ONLY CONTRACTING IS PROHIBITED. There is "labor-only" contracting where the [person supplying workers to an employer does not havel JOB CONTRACTOR, WHETHER LICENSED OR NOT, MERELY RECRUITS AND SUPPLIES OR PLACES WORKERS TO A CONTRACTEE REGARDLESS OF WHETHER OR NOT HE/SHE HAS substantial capital or investment in the form of tools, equipment, machineries, work premises, among others, [and] OR the workers recruited and SUPPLIED OR placed by such person are performing activities which are directly related to the principal business of such CONTRACTEE OR ARE UNDER THE CONTROL AND SUPERVISION OF THE CONTRACTEE. In such cases, the [person or intermediary] JOB CONTRACTOR shall be considered merely an agent [ef] AND the [employer whel CONTRACTEE shall be responsible to the workers in the same manner and extent as if the latter were directly employed by him/ HER. FOR THE PURPOSES OF THIS ARTICLE, THE SPECIFIC JOB, WORK OR SERVICE THAT ARE DEEMED DIRECTLY RELATED TO THE PRINCIPAL BUSINESS OF A CONTRACTEE SHALL BE DETERMINED BY THE APPROPRIATE INDUSTRY

TRIPARTITE COUNCIL WHICH SHALL BE ISSUED THROUGH REGULATIONS BY THE SECRETARY OF LABOR AND EMPLOYMENT. IN THE ABSENCE OF A DETERMINATION BY THE APPROPRIATE INDUSTRY COUNCIL, THE SECRETARY OF LABOR AND EMPLOYMENT SHALL DETERMINE THE STANDARD CRITERIA AFTER CONSULTATION WITH THE NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL. IN ALL CASES WHERE LABOR-ONLY CONTRACTING IS PRESENT, THE WORKERS SHALL OUTRIGHT BE DEEMED REGULAR EMPLOYEES OF THE CONTRACTEE IN ACCORDANCE WITH LAW, RETROACTIVE TO THE DATE THEY WERE FIRST DEPLOYED TO SAID CONTRACTEE, WITHOUT PREJUDICE TO ANY CRIMINAL, CIVIL, OR ADMINISTRATIVE CASE AGAINST THE LABOR-ONLY CONTRACTOR AND THE CONTRACTEE. COMPLIANCE ORDERS AFFIRMED BY THE SECRETARY OF LABOR AND EMPLOYMENT SHALL BE IMMEDIATELY EXECUTORY UNLESS RESTRAINED BY AN APPROPRIATE COURT. IN CASE THE COMPLIANCE ORDER INVOLVES A DIRECTIVE TO REGULARIZE WORKERS, THE EMPLOYMENT OF THE LATTER SHALL NOT BE TERMINATED PENDING APPEAL OF SUCH ORDER EXCEPT FOR JUST OR AUTHORIZED CAUSE. ANY TERMINATION OF WORKERS PENDING APPEAL SHALL RENDER THE COMPLIANCE ORDER INVOLVING THE REGULARIZATION OF WORKERS EXECUTORY. ADDITIONALLY, THE SECRETARY OF LABOR AND EMPLOYMENT SHALL IMPOSE A FINE OF UP TO FIVE MILLION PESOS (PHP5,000,000.00) AGAINST ANY LABOR- ONLY CONTRACTOR. THE SECRETARY OF LABOR AND EMPLOYMENT SHALL ALSO HAVE THE POWER TO

PREVENTIVELY OR PERMANENTLY CLOSE THE OPERATIONS OF ANY LABOR-ONLY CONTRACTOR."

SEC. 3. Article 107, Title II, Book IlI of the Labor Code, as amended, is

hereby repealed, and in lieu thereof, a new Article 107 is inserted to read as follows: "ARTICLE 107. LICENSING OF JOB CONTRACTORS. - IT SHALL BE MANDATORY FOR ALL PERSONS OR ENTITIES ACTING AS JOB CONTRACTOR TO OBTAIN A LICENSE FROM THE DOLE THROUGH ITS REGIONAL OFFICES. FOR PURPOSES OF ARTICLES 106-109, "JOB CONTRACTOR" REFERS TO A SOLE PROPRIETORSHIP, CORPORATION, ASSOCIATION, COOPERATIVE OR OTHER ORGANIZATION THAT PERFORMS A SPECIFIC WORK, JOB OR SERVICE TO A CONTRACTEE. "CONTRACTEE" REFERS TO THE PERSON OR ENTITY, WHICH SHALL INCLUDE THE GOVERNMENT, THAT CONTRACTED OUT A SPECIFIC WORK, JOB OR SERVICE. THE LICENSE SHALL BE ISSUED TO QUALIFIED JOB CONTRACTORS UPON COMPLIANCE WITH THE FOLLOWING REQUIREMENTS: (A) HAVE AN INDEPENDENT BUSINESS, SEPARATE AND DISTINCT FROM THE CONTRACTEE; (B) HAVE A PAID-UP CAPITAL OR NET WORTH OF AT LEAST FIVE MILLION PESOS (PHP5,000,000.00), WHICH MAY BE INCREASED AS DEEMED APPROPRIATE THROUGH TRIPARTITE CONSULTATION; (C) BE AN EXPERT OR SPECIALIST IN THE JOB, WORK OR SERVICE BEING CONTRACTED THAT SHALL NOT BE DIRECTLY RELATED TO THE PRINCIPAL BUSINESS OF THE CONTRACTEE. FOR THIS PURPOSE, EXPERTISE OR SPECIALIZATION SHALL BE ESTABLISHED BY SHOWING, AMONG OTHERS, A CORE OF COMPETENT

PROFESSIONALS OR SKILLED WORKERS ESPECIALLY TRAINED TO CARRY OUT THE JOB, WORK OR SERVICE OR TRACK RECORD IN SUCH FIELD OF SPECIALIZATION; (D) BE AN EMPLOYER WITH REGULAR EMPLOYEES AND HAVE EQUIPMENT, MACHINERIES OR TOOLS NECESSARY TO PERFORM OR COMPLETE THE JOB, WORK OR SERVICE CONTRACTED OUT; (E) EXERCISE CONTROL OVER THE PERFORMANCE AND COMPLETION OF THE JOB, WORK OR SERVICE CONTRACTED OUT; (F) CERTIFICATION OF COMPLIANCE WITH LABOR AND SOCIAL WELFARE LAWS INCLUDING PROOF OF PAYMENT OF SOCIAL SECURITY, PHILIPPINE HEALTH INSURANCE CORPORATION, AND HOME DEVELOPMENT MUTUAL FUND (PAG-IBIG) CONTRIBUTIONS; AND (G) PAYMENT OF LICENSE FEE, WHICH SHALL NOT BE LOWER THAN ONE HUNDRED THOUSAND PESOS (PHP100,000.00). THE LICENSE SHALL BE VALID FOR A PERIOD OF THREE (3) YEARS AND MAY BE RENEWED UPON COMPLIANCE WITH THE REQUIREMENTS PRESCRIBED BY THE DOLE. IN ALL CASES, THE JOB CONTRACTOR SHALL DEMONSTRATE THAT IT HAS FINANCIAL CAPACITY TO CARRY ON ITS BUSINESS BASED ON FACTORS SUCH AS, BUT NOT LIMITED, TO THE NUMBER OF ITS EMPLOYEES AND THE NATURE OF ITS BUSINESS. ANY LEGITIMATE LABOR ORGANIZATION SHALL HAVE ACCESS TO COPIES OF LICENSES ISSUED TO JOB CONTRACTORS AND ANY AND ALL SUBMISSIONS MADE IN CONNECTION WITH SUCH LICENSE.

FOR THIS PURPOSE, THE SECRETARY OF LABOR AND EMPLOYMENT, IN CONSULTATION WITH THE NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL (NTIPC), SHALL ISSUE THE APPROPRIATE REGULATIONS FOR THE LICENSING, RENEWAL, SUSPENSION, AND REVOCATION OF LICENSES OF JOB CONTRACTORS, INCLUDING THE ACCOUNTABILITIES OF THE LICENSING OFFICER IN CASE THE LICENSE IS ISSUED IN VIOLATION OF, OR IN SIMULATION OF ANY OF THE REQUIREMENT FOR LICENSING UNDER PARAGRAPHS (A) TO (G) ABOVE, OR UPON FINDING OF LABOR-ONLY CONTRACTING COMMITTED BY A DULY-LICENSED JOB CONTRACTOR. IN NO CASE SHALL PRIVATE RECRUITMENT AND PLACEMENT AGENCIES (PRPA) OR PRIVATE EMPLOYMENT AGENCIES (PEA) UNDER ARTICLE 25 OF THE LABOR CODE, AS AMENDED, BE ALLOWED TO ENGAGE IN JOB CONTRACTING AND/OR THE PROHIBITED LABOR-ONLY CONTRACTING."

SEC. 4. A new Article 107-A, Title II, Book III of the Labor Code, as

amended, is hereby provided to read as follows: "ARTICLE 107-A. RIGHTS OF EMPLOYEES OF JOB CONTRACTORS. - THE TERMS AND CONDITIONS OF EMPLOYMENT OF THE EMPLOYEES OF JOB CONTRACTORS SHALL NOT BE LOWER THAN THE MINIMUM STANDARDS SET BY LAW AND REGULATIONS."

SEC. 5. Article 108, Title II, Book III of the Labor Code, as amended, is

hereby amended to read as follows: "ARTICLE 108. Posting of Bond. - [An employer or indirect employer] THE CONTRACTEE may require the contractor to furnish a bond equal to the cost of labor under contract, on condition that the bond will answer for the wages due the employees should the contractor fail to the pay the same."

SEC. 6. A new Article 108-A, Title II, Book III of the Labor Code, as

amended, is hereby provided to read as follows: "ARTICLE 108-A. TRANSITION SUPPORT PROGRAM (TSP) - A TRANSITION SUPPORT PROGRAM FOR JOB CONTRACTING SHALL BE ESTABLISHED BY THE DOLE WHICH: (A) SHALL PROVIDE A THREE-MONTH FINANCIAL SUPPORT FOR EMPLOYEES IN BETWEEN JOB PERIODS AND IS CONDITIONED ON UNDERGOING SKILLS TRAINING OR UPGRADING UNDER TESDA OR TESDA ACCREDITED TRAINING INSTITUTION DURING THE PERIOD OF UNEMPLOYMENT, PROVIDED THAT THE FREQUENCY OF AVAILMENT SHALL NOT BE MORE THAN ONCE A YEAR; (B) THE AMOUNT OF FINANCIAL SUPPORT SHALL NOT BE LOWER THAN THE APPROPRIATE MINIMUM WAGE AND SHALL BE RELEASED AT THE END OF EVERY MONTH; AND (C) SHALL BE MANAGED BY THE APPROPRIATE BUREAU OF THE DEPARMENT OF LABOR AND EMPLOYMENT, WHICH SHALL REPORT TO THE NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL. THE FUNDS FOR THE IMPLEMENTATION OF THE PROGRAM SHALL BE SOURCED FROM: ONE HUNDRED PERCENT (100%) OF THE REGISTRATION/ RENEWAL FEES PAID BY CONTRACTORS; ALL FINES COLLECTED UNDER ARTICLE 106 OF THIS CODE; AND FUNDS FROM THE ADJUSTMENT MEASURE PROGRAM OF THE DEPARTMENT OF LABOR AND EMPLOYMENT."

SEC. 7. Article 109, Title II, Book III of the Labor Code, as amended, is

hereby amended to read as follows:

"ARTICLE 109. Solidary Liability. - The provisions of existing laws to the contrary notwithstanding, every [empleyer or indirect employer] CONTRACTEE shall be held [responsible] SOLIDARILY LIABLE with [his] THE JOB contractor [or subcontractor] for any violation of any provision of this Code. For purposes of determining the extent of their civil liability under this Chapter, they shall be considered as direct employers."

SEC. 8. Article 294 [279], Title I, Book VI of the Labor Code, as amended,

is hereby further amended to read as follows: "ARTICLE 294 [279]. Security of Tenure. - [in case or regular employment, the employer shall not terminate] [t]The services of an employee, IRRESPECTIVE OF EMPLOYMENT STATUS OR POSITION, SHALL NOT BE TERMINATED except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his/HER full backwages, inclusive of allowances, and to his/HER other benefits or their monetary equivalent computed from the time his/ HER compensation was withheld from him/HER up to the time of his/ HER actual reinstatement. THE EMPLOYER SHALL HAVE THE BURDEN OF PROVING THAT THE TERMINATION IS WITH CAUSE AND DUE PROCESS."

SEC. 9. Article 295 [280] Title I, Book VI of the Labor Code, as amended,

is hereby repealed, and in lieu thereof, a new Article 295 is provided to read as follows: "ARTICLE 295. STATUS OF EMPLOYMENT. - ALL EMPLOYEES, EXCEPT THOSE UNDER PROBATIONARY EMPLOYMENT, ARE DEEMED REGULAR, INCLUDING PROJECT AND SEASONAL EMPLOYEES. PROJECT AND SEASONAL EMPLOYEES ARE REGULAR FOR THE DURATION OF THE PROJECT OR SEASON, AS THE

CASE MAY BE. FOR THIS PURPOSE, PROJECT EMPLOYMENT IS EMPLOYMENT IN AN EXISTING PROJECT OR UNDERTAKING THE COMPLETION OR TERMINATION OF WHICH HAS BEEN DETERMINED AND MADE KNOWN TO THE EMPLOYEE AT THE TIME OF THE ENGAGEMENT WHILE SEASONAL IS AN EMPLOYMENT BASED ON THE EXISTENCE OF A SEASON IN AGRICULTURAL WORK OR ESTABLISHED PERIODS OF INCREASED WORK DEMANDS AND/OR INHERENT INDUSTRY FLUCTUATIONS. IN PROJECT AND SEASONAL EMPLOYMENT, WORKERS ARE CALLED TO WORK FROM TIME TO TIME AND TEMPORARILY LAID OFF DURING THE COMPLETION OF THE PROJECT OR OFF- SEASON BUT ARE IN THE WORK POOL ON LEAVE WITH OR WITHOUT PAY STATUS IN BETWEEN PROJECTS OR SEASONS. ALL OTHER FORMS OF EMPLOYMENT ARE PROHIBITED AND WORKERS UNDER SUCH ARRANGEMENTS ARE DEEMED REGULAR EMPLOYEES RECKONED FROM THE FIRST DAY OF EMPLOYMENT. FOR THE AVOIDANCE OF DOUBT, AN EMPLOYER- EMPLOYEE RELATIONSHIP EXISTS WHEN THE WORKER IS ENGAGED TO RENDER WORK OR SERVICE UNDER THE CONTROL OF THE EMPLOYER, NOT ONLY AS TO THE END TO BE ACHIEVED, BUT ALSO THE MANNER, MEANS AND METHOD IN REACHING THE END."

SEC. 10. Article 296 [281], Title I, Book VI of the Labor Code, as

amended, is hereby amended to read as follows: "ARTICLE 296 [281]. Probationary Employment. - Probationary employment shall not exceed six (6) months from the [date the employee started working, unless it is covered by an apprenticeship agreement stipulating by a longer period.] FIRST DAY OF SERVICE REGARDLESS OF THE NATURE OF WORK TO BE

PERFORMED. THE JOB DESCRIPTION AND QUALIFICATION STANDARDS TO QUALIFY FOR REGULAR EMPLOYMENT SHALL BE MADE KNOWN BY THE EMPLOYER TO THE EMPLOYEE AT THE TIME OF HIS/ HER ENGAGEMENT. The services of [an] A PROBATIONARY employee [who has been engaged on a probationary basis] may be terminated for [a] just OR AUTHORIZED causeS UNDER ARTICLES 297 [282] AND 298 [283] OF THE LABOR CODE, AS AMENDED, or when he/SHE fails to qualify as a regular employee [in accordance with reasonable standards made known by the employer at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee]."

SEC. 11. Article 297 [282], Title I, Book VI of the Labor Code, as

amended, is hereby amended to read as follows: "ARTICLE 297 [282]. JUST CAUSES OF Termination [by employer]. - An employer may terminate an employment for any of the following causes: (a) Serious misconduct or willful disobedience by the employee of the lawful orders of his/HER employer or representative in connection with his/ HER work; (b) Gross and habitual neglect by the employee of his/HER duties; (c) Fraud or willful breach by the employee of the trust reposed in him/HER by his/HER employer or duly authorized representative; (d) Commission of a crime or offense by the employee against the person of his/HER employer or any immediate member of his/ HER family or his/HER duly authorized representatives; and (e) [Other causes] ACT OR OMISSION analogous to the foregoing, EXPRESSLY SPECIFIED AS GROUND FOR DISMISSAL IN THE COMPANY RULES AND

REGULATIONS FORMULATED IN OBSERVANCE OF WORKERS RIGHT TO PARTICIPATE IN POLICY AND DECISION-MAKING PROCESSES AFFECTING THEIR RIGHTS AND BENEFITS, OR AS PROVIDED IN THE DULY REGISTERED COLLECTIVE BARGAINING AGREEMENT."

SEC. 12. A new Article 298-A, Title I, Book VI of the Labor Code, as

amended, is hereby provided to read as follows: "ARTICLE 298-A. PROOF OF AUTHORIZED CAUSE AND PAYMENT OF SEPARATION PAY. - WITHIN THE PRESCRIBED ONE (1) MONTH PERIOD REQUIRED UNDER ARTICLE 298, THE EMPLOYER SHALL SUBMIT TO THE DOLE FOR VALIDATION PROOF AND UNDERTAKING ON THE EXISTENCE OF THE AUTHORIZED CAUSE IN ACCORDANCE WITH THE RULES AND REGULATIONS AS MAY BE SET BY THE SECRETARY OF LABOR AND EMPLOYMENT."

SEC. 13. Implementing Rules and Regulations. - The Department

of Labor and Employment shall promulgate the necessary implementing rules and regulations within one hundred and twenty (120) days from the effectivity 19 of this Act.

SEC. 14. Separability Clause. - If any provision of this law or the

application thereof to any person or circumstance, is held invalid, the remainder of this law, or the application of such provision or part to other persons of circumstances, shall not be affected thereby.

SEC. 15. Repealing Clause. - All laws, decrees, rules, and regulations

or parts thereof, which are contrary to or inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 16. Effectivity Clause. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in a newspaper of general circulation. Approved,

Reproduced from the Senate document. The official PDF is the authoritative version.