Adoption of Alternative Work Arrangements

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session JIL 14 P2:39 SENATE Senate Bill No. Introduced by Senator JOEL VILLANUEVA AN ACT ALLOWING THE ADOPTION OF ALTERNATIVE WORK ARRANGEMENTS, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AS AMENDED EXPLANATORY NOTE Given the increasing complexity of work, there is now a growing recognition of the benefits of adopting flexible work arrangements. Flexibility in the workplace allows employees to find an arrangement where they can best fulfill their work obligations given their respective situations. It also allows an employer to accommodate the uniqueness in the backgrounds and capacities of its employees without compromising their productivity. Workplace flexibility, therefore, allows both employer and employee to find a mutually beneficial work arrangement that works best for both parties. In fact, a research project funded by the Economic and Social Research Council, entitled, "Work Autonomy, Flexibility and Work-Life Balance" showed that when managers allow workers more discretion or more control over their work, they deliver better performance outcomes or better productivity. 1 Considering the proven benefits of flexible work arrangements, this bill seeks to institutionalize the adoption of voluntary work arrangements if national emergency requires or as mutually agreed upon by the employer and the employee. This measure also emphasizes that the adoption of voluntary work arrangements shall not result in the diminution of the existing benefits of the employees, and the existing laws on the 1 Economic and Social Research Council. Work Autonomy, Flexibility and Work-Life Balance. October 2017. Available at https://kar.kent.ac.uk/65922/1/Flexible%20working%20report.pdf (Accessed on 02 July 2025).

payment of night shift differential, overtime pay, and other benefits shall not be violated. With this measure, the employer and the employee are given greater liberty to agree on a work arrangement that would fit their needs and preferences. For these reasons, the immediate passage of this bill is earnestly sought. JOEL VILLANUEVA CA

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session WL 14 P2:39 SENATE Senate Bill No. Introduced by Senator JOEL VILLANUEVA AN ACT ALLOWING THE ADOPTION OF ALTERNATIVE WORK ARRANGEMENTS, AMENDING FOR THE PURPOSE 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. A new Article 83-A is hereby inserted in the Philippine Labor Code,

as amended, to read as follows: "ARTICLE 83-A. ADOPTION OF VOLUNTARY WORK ARRANGEMENT. - WHEN NATIONAL EMERGENCY REQUIRES OR WHEN THE PARTIES MUTUALLY AGREE, THE EMPLOYER AND THE EMPLOYEE MAY ADOPT A VOLUNTARY WORK ARRANGEMENT: PROVIDED, THAT HOURS OF WORK SHALL NOT EXCEED FORTY- EIGHT (48) HOURS A WEEK: PROVIDED, FURTHER, THAT IT SHALL NOT RESULT IN THE DIMINUTION OF EXISTING BENEFITS AND THE RIGHT TO NIGHT SHIFT DIFFERENTIAL AND OVERTIME PAY CONSISTENT WITH ARTICLES 86 AND 87 OF THIS CODE, AND OTHER BENEFITS IN ACCORDANCE WITH LAW SHALL NOT BE VIOLATED."

SEC. 2. Implementing Rules and Regulations. - Within sixty (60) days from

the effectivity of this Act, the Secretary of Labor and Employment shall, in consultation

with relevant stakeholders, promulgate the necessary implementing rules and regulations for the effective implementation of this Act.

SEC. 3. Separability Clause. - If any portion or provision of this Act is declared

unconstitutional, the remainder hereof or any provisions not affected thereby shall remain in force and effect.

SEC. 4. Repealing Clause, - Any law, presidential decree or issuance,

executive order, letter of instruction, rule, or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days after its

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