Calamity Work Compensation Act

Dier of tie e TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) 25 JUL 14 A11:47 First Regular Session ) SENATE RECEIVLO DY S. No._ Introduced by Senator Loren Legarda AN ACT MANDATING THE GRANT OF ADDITIONAL COMPENSATION TO PRIVATE SECTOR EMPLOYEES WHO ARE REQUIRED TO REPORT FOR WORK DURING DECLARED CALAMITIES AND EMERGENCY ALERTS, ESTABLISHING IMPLEMENTING MECHANISMS THEREFOR, AND IMPOSING PENALTIES FOR NON-COMPLIANCE EXPLANATORY NOTE The Philippines, an archipelago nestled in the Pacific Typhoon Belt, is no stranger to the formidable forces of nature. Annually, approximately 20 tropical cyclones enter the Philippine Area of Responsibility, with about 8 or 9 of them crossing the Philippines. 1 This relentless barrage of typhoons, particularly from July through October, has become an inescapable facet of Filipino life. Beyond typhoons, the nation's geographical positioning along the Pacific Ring of Fire renders it susceptible to a multitude of natural calamities. An estimated 60% of the country's land area and 74% of its population are exposed to hazards such as floods, cyclones, droughts, earthquakes, tsunamis, and landslides.? In 2024, for the third year in a row, the Philippines topped the World Risk Index (WRI). The index, covering 193 countries, assesses exposure, vulnerability, and coping capacities to disasters, conflicts, and crises. Conducted by the Institute for International Law of Peace and Armed Conflict (IFHV) at Ruhr-University Bochum, the 1 Retrieved on 08 July 2025, from https://www.pagasa.dost.gov.ph/climate/tropical-cyclone- information 2 Retrieved on 08 July 2025, from https://climateknowledgeportal.worldbank.org/country/philippines/vulnerability

report underscores the Philippines' extreme susceptibility to natural hazards and other global risks.3 Climate change has intensified the frequency and severity of extreme weather events, further exacerbating the vulnerabilities of the Philippines and increasing the risks faced by workers and businesses alike. In the face of these adversities, certain industries stand as pillars of resilience, ensuring the continuity of essential services. Sectors such as transportation, food supply, healthcare, media and utilities remain operational during these trying times, driven by an unwavering commitment to public welfare. Their operations are not merely business endeavors but vital public functions that uphold the nation's stability. The dedicated workforce behind essential industries bears the greatest burden during calamities. Employees such as media personnel, utility linemen, medical practitioners, frontline service providers, and essential worksite personnel brave floods, heavy rainfall, and other hazards to sustain critical services, often at great personal risk. Beyond physical danger, they face disrupted transport systems, increased commuting costs, and limited access to necessities while on duty. The increased difficulty and cost of commuting with unreliable public transport, flooded routes, and surge-priced fares further strain their finances, time, and well-being. Given these realities, it is only just and necessary to provide fair compensation for workers required to report during such emergencies, recognizing both their sacrifices and the added costs they bear. In line with evidence-based policymaking, it is essential to examine two key studies that highlight the need for policy intervention to alleviate the economic burden of commuting during extreme weather events. 1. Commuting Behavior Adaptation to Flooding (Abad, Schwanen, Fillone, 2023)* A study by Raymond Paolo Abad, Tim Schawanen, and Alexis M. Fillone on commuting behavior adaptation in Metro Manila highlights that workers earning below PHP 30,000 are more likely to adjust their commuting habits during flooding, primarily due to financial constraints and employer expectations. These low-income workers, 3 Retrieved on 08 July 2025, from https://weltrisikobericht.de/worldriskreport/# 4 Retrieved on 08 July 2025, from https://www.sciencedirect.com/science/article/abs/pii/S2214367X18302254

some of whom identify as "poor," prioritize reporting to work on time to avoid wage deductions or job-related sanctions. Their financial vulnerability often forces them to leave earlier, spend more on reliable but costly transport, or endure prolonged commutes-all of which increase both financial expenses and time and resources. This behavior reflects the pressures imposed by job security concerns, which outweigh the inconvenience and additional expenses of commuting during extreme weather conditions. The study also found that 80% of surveyed commuters are full-time employees, meaning they have fixed work schedules and stricter attendance policies. Among them, 87% reported facing penalties for tardiness, reinforcing that arriving late-even due to uncontrollable weather conditions-has direct financial or disciplinary consequences. Since full-time workers have limited flexibility in adjusting work schedules or opting for remote work, they are often forced to find ways to reach their workplaces despite severe commuting difficulties. Another key finding is that public transport commuters have significantly fewer options to adapt to extreme weather disruptions compared to private vehicle owners. Since public transport follows fixed routes and schedules, commuters cannot simply avoid flooded areas or take alternative roads. As a result, they rely on changing their departure times rather than modifying their route or mode of transport. The study found that most commuters choose to leave home earlier rather than adjust their return trips, suggesting that getting to work on time is a bigger priority than getting home early. The study also found that commuters' belief in the increasing frequency of floods influenced their likelihood of adjusting behavior, reinforcing the need for long-term flood resilience and employer flexibility. Finally, the study emphasizes that employment-related constraints play a bigger role in commuting adaptation than flood characteristics themselves. Even when floods are severe, workers still make the effort to report to work, adjusting their travel patterns because they cannot afford to be late or absent. Space-time constraints further limit their ability to adapt since public transport follows fixed schedules, leaving workers with few alternatives to mitigate delays caused by floods.

2. The Influence of Rainfall on the Mode Shifting Behavior of Commuters (Sunga, Diaz, Napalang, 2017)5 A separate study by Abigail Sunga, Crispin Emmanuel Diaz, and Ma. Shiela Napalang reinforces these findings, specifically quantifying the financial and logistical burdens of commuting during extreme weather conditions. The study results highlight the severe impact of intense rainfall on commuting conditions. Average travel time increases by 82.83%, with waiting times extending from 5 minutes to as much as 35 minutes, leaving workers stranded and struggling to reach their destinations on time. As rainfall intensity rises, service reliability, comfort, and safety ratings decline, making commuting even more difficult and stressful. Financial burdens also escalate, as fares surge by 28%, with the average fare rising from P40.56 (no rain) to P51.95 (intense rain). Ride-hailing services such as Grab and taxis impose surge pricing, further straining commuters financially. Moreover, 44.67% of commuters are forced to switch transport modes, often relying on more expensive but reliable alternatives such as Grab, taxis, or company-provided shuttles due to the unavailability or inefficiency of traditional public transport options. These findings reinforce the need for policy interventions to address the financial and logistical hardships that workers endure when reporting for duty during extreme weather conditions. Although the studies cited above do not capture the entirety of the Philippine transportation system and primarily concentrate on Metro Manila, it illustrates the broader realities faced by workers across the country during extreme weather events. The disruptions, fare increases, delays, and hardships experienced in a metropolitan setting mirror the challenges encountered nationwide when typhoons and other calamities strike. These findings nevertheless provide strong empirical justification for the Calamity Work Compensation Act, which seeks to compensate employees required to report for work during severe weather events. Since essential worksite personnel- especially at rank and file, minimum earners and full-time employees-do not have the luxury of choosing whether to report to work during calamities, the bill ensures 5 Retrieved on 08 July 2025, from https://ncts.upd.edu.ph/tssp/wp- content/uploads/2017/07/TSSP2017-10-Sunga-Diaz-and-Napalang.pdf

that they are fairly compensated for the additional costs, hardships, and safety risks they endure. Recognizing these challenges, this legislative measure seeks to mandate employers to provide an additional 30% daily wage to employees required to report for work during declared calamities and emergency alerts. This rate aligns with existing labor standards on overtime, rest day work, and special holidays under Presidential Decree No. 442 (Labor Code of the Philippines). While precise calculations may vary, this 30% rate is consistent with observed increases in transportation costs, as cited in relevant studies. When combined with the additional expenses incurred due to lack of necessary provisions, earlier departure times, travel adaptations, heightened safety risks, and inflationary pressures during calamities, this rate provides a fair and reasonable compensation framework for employees reporting to work under extreme conditions. This compensation, however, is not to be misconstrued as hazard pay or a substitute for any legally mandated benefits. Instead, it serves as a reimbursement for the additional expenses and hardships employees incur, ensuring they are not financially disadvantaged for their indispensable service. The intent of this Act is two fold - by offsetting increased costs related to transportation, food, and other necessities, the Act ensures that employees can perform their duties without the added stress of financial strain. Moreover, this Act formally recognizes the sacrifices and contributions of workers who, amidst adversity, continue to uphold essential services, embodying the spirit of bayanihan and resilience. It is imperative to emphasize that this legislation does not encourage employees to place themselves in harm's way. The safety and well-being of the workforce remain paramount. Instead, the Act ensures that when their roles necessitate presence during such events, they are justly compensated for the additional challenges faced. Meanwhile, to provide flexibility while still safeguarding worker welfare, the bill also includes an option for employers to implement a Calamity Work Contingency Plan in lieu of the mandated additional compensation. This mechanism allows employers to offer non-monetary forms of support-such as company-provided transportation,

food, temporary shelter, and occupational safety measures-during declared calamities, particularly in situations where mobility is severely restricted or monetary reimbursement may be impractical. However, to prevent abuse and ensure fairness, any contingency plan must meet minimum standards, be approved by the Department of Labor and Employment (DOLE), and secure the concurrence of the recognized employee union or workers' representatives, if applicable. This ensures that worker protection remains paramount while granting employers operational flexibility to respond to emergencies in a manner suited to their context and capacities. Despite the upfront costs, we hope employers also see the wisdom in this measure. This measure benefits, in the long term, employers by boosting worker morale, ensuring workforce availability, and allowing businesses, as circumstances may require, to protect goods, minimize wastage, gather vital information, and maintain operations when demand for essential goods and services is high. By establishing a clear and standardized framework for additional compensation, the Act prevents disputes, allows financial planning for disaster response, strengthens employer-employee relations, and supports business continuity and long-term financial stability. As the Philippines continues to navigate the complexities of its natural landscape, this legislative measure stands as a testament to the nation's commitment to its workers. By ensuring fair compensation for those who sustain essential services during calamities, this measure strengthens not just labor rights but also public service and economic stability in times of crisis. In view of the foregoing, the urgent passage of this bill is sought. LOREN LEGARDA

„Suter of 1. ) TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 25 JUL 14 A11 :47 First Regular Session SENATE RECEIVED B S. No. 520 Introduced by Senator Loren Legarda AN ACT MANDATING THE GRANT OF ADDITIONAL COMPENSATION TO PRIVATE SECTOR EMPLOYEES WHO ARE REQUIRED TO REPORT FOR WORK DURING DECLARED CALAMITIES AND EMERGENCY ALERTS, ESTABLISHING IMPLEMENTING MECHANISMS THEREFOR, AND IMPOSING PENALTIES FOR NON-COMPLIANCE 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 "Calamity Work

2 Compensation Act."

Sec. 2. Declaration of Policy. - It is hereby declared the policy of the State to

protect the welfare of workers by ensuring that employees required to work during 5 calamities and emergency situations receive fair and just compensation. The State 6 recognizes that while most businesses suspend operations during calamities, certain 7 industries-such as transportation, food supply, medicine, media, medical and health 8 services, and utilities-must continue operating to serve public needs. Moreover, some 9 businesses may require continued operations to meet production requirements or to 10 secure equipment, machinery, and supplies from damage or wastage. The continued operation of these businesses during extraordinary circumstances, while private in nature, serves a vital public function. In such instances, employees required to report for work shall be adequately compensated for the additional burdens they bear, including but not limited to limited access to transportation, increased commuting 15 costs, restricted food availability, and heightened safety risks. The additional

1 compensation provided under this Act shall not be considered hazard pay nor serve 2 as a substitute for hazard pay or any other legally mandated benefits. Furthermore, 3 this Act does not encourage workers to expose themselves to risk during calamities 4 but merely ensures that they are reimbursed for the increased costs of reporting to 5 work when their presence is required and that their contribution to public service is 6 recognized.

Sec. 3. Coverage. - This Act shall apply to all private sector employees in the

Philippines, regardless of employment status or nature of employment, except those 9 not classified as employees under Presidential Decree No. 442, as amended, otherwise 10 known as the Labor Code of the Philippines. This shall include regular, probationary, project-based, seasonal, and contractual employees, provided that an employer- employee relationship exists in accordance with applicable labor laws.

Sec. 4. Additional Compensation. - The entitlement to the additional

compensation shall be governed by the following principles: (a) Entitlement to Additional Compensation. - Employees who are required to report for work or perform duties during any period in which their province, city, or municipality is under Typhoon Signal No. 3, No. 4, or No. 5, or an equivalent level of calamity as determined in the Implementing Rules and Regulations (IRR) of this Act, shall be entitled to receive an additional thirty percent (30%) of their daily wage. This additional compensation is intended to reimburse employees for the extraordinary costs and difficulties incurred in reporting for work during a calamity, including but not limited to increased transportation expenses, limited access to food and necessities, and heightened risks to personal safety. (b) Distinction from Hazard Pay and Other Benefits. - The additional compensation provided under this Act shall not be considered as hazard pay nor be used to offset or replace any existing hazard pay, emergency allowances, or other benefits that an employee is entitled to under company policies, collective bargaining agreements, or existing labor laws.

(c) Prohibition on Compensation Adjustments. - Employers shall not reduce, restructure, or withhold existing salaries, bonuses, allowances, or other forms of compensation to offset the additional pay required under this Act. Any such attempt shall be deemed a violation subject to penalties under Section 7. (d) Computation of Overtime, Night Differential, and Holiday Pay. - The additional compensation granted under this Act shall be included in the computation of an employee's overtime pay, night shift differential, and holiday pay when applicable.

Sec. 5. Conditions for Application. - The additional wage compensation shall

11 apply only to employees who shall physically report to their work location or who are specifically assigned work during the declared calamity or emergency period. Employees whose work can be performed remotely during a declared calamity shall not be entitled to the additional compensation under this Act unless they are explicitly required to perform on-site duties.

Sec. 6. Classification of Other Calamities and Implementing Guidelines. - For

calamities and emergency situations other than typhoons, the Department of Labor 18 and Employment (DOLE), in consultation with the National Disaster Risk Reduction and Management Council (NDRRMC), shall establish a Category Level Assessment System to determine the severity of a calamity, required conditions, and the corresponding applicability of the additional compensation under this Act. The NDRRMC shall provide technical input, including hazard assessments and situational bulletins, to support DOLE in classifying calamities based on their impact on safety, mobility, and economic activity. Within sixty (60) working days from the effectivity of this Act, the DOLE and NDRRMC shall issue guidelines classifying calamities into specific categories based on 27 their impact on mobility, safety, and economic activities. The assessment shall consider factors such as disruption of public transportation and mobility, availability 29 and accessibility of essential services, safety risks for employees commuting or reporting to work, and government-imposed emergency measures or restrictions among others.

Only calamities classified under the prescribed category levels shall warrant the mandatory provision of the additional compensation under this Act. The DOLE shall regularly review and update the classification system in response to emerging disaster risks and patterns. In the formulation of guidelines, DOLE and NDRRMC shall conduct public 6 consultations with affected stakeholders, including labor organizations, employer 7 groups, and local government units, to ensure equitable and practicable implementation.

Sec. 7. Employer-Provided Action Plan as an Alternative to Calamity Work

Compensation. - DOLE, shall establish guidelines and criteria under which employers may implement a Calamity Work Contingency Plan in lieu of the mandatory monetary compensation provided under this Act. To be considered a valid alternative, the contingency plan must meet the following minimum criteria to ensure employee safety, welfare, and operational continuity during declared calamities: (a) Ensuring Safe and Accessible Transportation: Employers may provide or coordinate safe and reasonable transportation options for employees reporting during calamities at no cost. This may include company- arranged shuttle services, partnerships with transport providers, transport allowances, or other viable means suited to the circumstances; (b) Provision of Basic Necessities: Employees on duty during calamities should have reasonable access to food, clean drinking water, and other essential provisions as appropriate to the situation; (c) Emergency Housing or Shelter, if Necessary: In situations where returning home poses significant risks, employers may arrange for temporary accommodations or safe shelter options for affected employees. Arrangements should be reasonable, safe, and compliant with basic health and safety standards; (d) Workplace Safety and Welfare Measures: Employers should take reasonable steps to ensure that workplaces remain safe and operational despite the prevailing conditions. This includes basic occupational safety

and health (OSH) measures, contingency planning, and risk mitigation strategies relevant to the calamity; and (e) Protection of Salaries and Benefits: Any alternative compensation program must not result in a reduction of existing salaries, benefits, or allowances. Employers must ensure that employees retain access to all legally mandated benefits, including those covered by collective bargaining agreements or employment contracts. No Calamity Work Contingency Plan shall be implemented in workplaces with 9 existing employee unions or collective bargaining units without their prior concurrence through appropriate consultation or agreement procedures. In such a case, the compensation as stated in this Act shall govern. Employers seeking to implement alternative measures must secure prior approval from DOLE, ensuring compliance with the general principles of employee protection and fair compensation under this Act.

Sec. 8. Appropriations. - The amount necessary for the effective

implementation of this Act by the DOLE, including the formulation of implementing guidelines, monitoring, capacity-building, and stakeholder consultations, shall be charged against the current appropriations of the Department. Thereafter, such sums as may be necessary shall be included in the annual General Appropriations Act.

Sec. 9. Penalties. - Any employer who violates the provisions of this Act,

including failure to provide the required additional wage compensation to their employees or failure to comply with a valid Calamity Work Contingency Plan, shall be subject to penalties as prescribed under the Labor Code of the Philippines and other applicable laws, including fines, suspension of business operations, or revocation of business permits.

Sec. 10. Repealing Clause. - All laws, decrees, orders, rules, and regulations,

or parts thereof, which are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 11. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation. Approved,