Republic Act 7877

Anti-Sexual Harassment Act of 1995

Republic Act 7877
AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN THE EMPLOYMENT, EDUCATION OR
TRAINING ENVIRONMENT, AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
 
      SECTION 1. Title. - This Act shall be known as the "Anti-Sexual Harassment Act of 1995."
 
      SECTION 2. Declaration of Policy. - The State shall value the dignity of every individual, enhance the
development of its human resources, guarantee full respect for human rights, and uphold the dignity
of workers, employees, applicants for employment, students or those undergoing training, instruction
or education. Towards this end, all forms of sexual harassment in the employment, education or
training environment are hereby declared unlawful.
 
      SECTION 3. Work, Education or Training -Related, Sexual Harassment Defined. - Work, education or 
training-related sexual harassment is committed by an employer, employee, manager, supervisor,
agent of the employer, teacher, instructor, professor, coach, trainor, or any other  person who, having
authority, influence or moral ascendancy  over another in a work or training or education
environment, demands, requests or otherwise requires any sexual favor  from the other, regardless of
whether the demand, request or  requirement for submission is accepted by the object of said Act.
 
      (a) In a work-related or employment environment, sexual  harassment is committed when:
                  (1) The sexual favor is made as a condition in the hiring or  in the employment, re-
employment or continued employment  of said individual, or in granting said individual favorable
compensation, terms of conditions, promotions, or privileges;  or the refusal to grant the sexual favor
results in limiting, segregating or classifying the employee which in any way   would discriminate,
deprive ordiminish employment opportunities or otherwise adversely affect said employee;
             
                  (2) The above acts would impair the employee's rights or  privileges under existing labor
laws; or
             
                  (3) The above acts would result in an intimidating, hostile,  or offensive environment for the
employee.
       (b) In an education or training environment, sexual harassment is committed:      
                (1) Against one who is under the care, custody or supervision of the offender;  
              (2) Against one whose education, training, apprenticeship  or tutorship is entrusted to the
offender;
             
                (3) When the sexual favor is made a condition to the giving  of a passing grade, or the
granting of honors and scholarships,  or the payment of a stipend, allowance or other benefits, 
privileges, or consideration; or
             
                (4) When the sexual advances result in an intimidating, hostile or offensive environment for
the student, trainee or  apprentice.
      Any person who directs or induces another to commit any  act of sexual harassment as herein
defined, or who cooperates  in the commission thereof by another without which it would  not have
been committed, shall also be held liable under this  Act.
 
    SECTION 4. Duty of the Employer or Head of Office  in a Work-related, Education or Training
Environment. - It shall be the duty of the employer or the head of the  work-related, educational or
training environment or institution, to prevent or deter the commission of acts of sexual  harassment
and to provide the procedures for the resolution,  settlement or prosecution of acts of sexual
harassment. Towards this end, the employer or head of office shall:
 
      (a) Promulgate appropriate rules and regulations in consultation with and joint1y approved by the
employees or  students or trainees, through their duly designated representatives, prescribing the
procedure for the investigation of  sexual harassment cases and the administrative sanctions  therefor.
 
      Administrative sanctions shall not be a bar to prosecution  in the proper courts for unlawful acts of
sexual harassment.
 
       The said rules and regulations issued pursuant to this  subsection (a) shall include, among others,
guidelines on  proper decorum in the workplace and educational or training institutions.  
      (b) Create a committee on decorum and investigation of  cases on sexual harassment. The
committee shall conduct  meetings, as the case may be, with officers and employees,  teachers,
instructors, professors, coaches, trainors, and students or trainees to increase understanding and
prevent  incidents of sexual harassment. It shall also conduct the  investigation of alleged cases
constituting sexual harassment.
 
      In the case of a work-related environment, the committee  shall be composed of at least one (1)
representative each from  the management, the union, if any, the employees from the  supervisory
rank, and from the rank and file employees.
     In the case of the educational or training institution, the  committee shall be composed of at least
one (1) representative  from the administration, the trainors, instructors, professors  or coaches and
students or trainees, as the case may be.
 
      The employer or head of office, educational or training  institution shall disseminate or post a copy
of this Act for the  information of all concerned.
 
      SECTION 5. Liability of the Employer, Head of  Office, Educational or Training Institution. - The
employer or head of office, educational or training institution  shall be solidarily liable for damages
arising from the acts of   sexual harassment committed in the employment, education or training
environment if the employer or head of office,  educational or training institution is informed of such
acts by  the offended party and no immediate action is taken.
 
     SECTION 6. Independent Action for Damages. -  Nothing in this Act shall preclude the victim of
work, education or training-related sexual harassment from instituting a  separate and independent
action for damages and other affirmative relief.
 
     SECTION 7. Penalties. - Any person who violates the   provisions of this Act shall, upon conviction,
be penalized by   imprisonment of not less than one (1) month nor more than six (6) months, or a fine
of not less than Ten thousand pesos  (P10,000) nor more than Twenty thousand pesos (P20,000), or 
both such fine and imprisonment at the discretion of the court.
 
      Any action arising from the violation of the provisions of  this Act shall prescribe in three (3) years.
 
   SECTION 8. Separability Clause. - If any portion or  provision of this Act is declared void or
unconstitutional, the  remaining portions or provisions hereof shall not be affected  by such
declaration.
 
      SECTION 9. Repealing Clause. - All laws, decrees, orders, rules and regulations, other issuances, or
parts thereof  inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
 
      SECTION 10. Effectivity Clause.- This Act shall take  effect fifteen (15) days after its complete
publication in at least  two (2) national newspapers of general circulation.
 
     Approved:
 
      (Sgd.) EDGARDO J. ANGARA
      President of the Senate
 
      (Sgd.) JOSE DE VENECIA, JR .
      Speaker of the House of Representatives
 
      This Act is a consolidation of House Bill No. 9425 and  Senate Bill No. 1632 was finally passed by
the House of  Representatives and the Senate on February 8, 1995.
 
     (Sgd.) EDGARDO E. TUMANGAN
     Secretary of the Senate
 
     (Sgd.) CAMILO L. SABIO
     Secretary General
     House of Representatives
 
     Approved: February 14, 1995
 
     (Sgd.) FIDEL V. RAMOS
     President of the Philippines
Quid pro quo is the type of harassment that occurs when some type of employment benefit is made
contingent on sexual favors in some capacity. For example, this might be a supervisor offering a
promotion if an employee will meet his or her sexual demands

Hostile work environment is the type of sexual harassment that occurs when there is frequent or
pervasive unwanted sexual comments, advances, requests, or other similar conduct. It can also occur
when there is other verbal or physical conduct that is sexual in nature.

What Is the Living Wage?

The living wage is the amount of pay considered sufficient for you and your family to cover basic costs
of living in a specific location. Economists and policymakers use this information to determine the
relative financial health of workers when comparing their pay with their living costs. There is no
federal living wage law.

What Is the Minimum Wage?

The minimum wage, established by federal (specifically through the Fair Labor Standards Act), state,
and local government law, sets the lowest wage an employer may legally pay their workers. The
federal minimum wage, which hasn't’t changed since it was set on July 24, 2009, is $7.25 per hour.
That translates to $15,080 for a full-time, year-round worker.

States can set a minimum wage higher than the federal minimum, but not lower. All employers are
required to pay whichever rate is higher: their state/local minimum wage, or the federal minimum
wage.

Gift giving
A gift is something of value given without the expectation of return;
It is merely an act of extending goodwill to an individual in an effort to share something with
particular to others.

Bribery
A bribe is the same thing given in the hope of influence or benefit.
It is defined as a practice of giving reward for performance of an act that is inconsistent with
the work contract or the nature of the work one has been hired to perform.
Republic Act No. 6727

Republic of the Philippines

Congress of the Philippines
Metro Manila

Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-fifth day of July, nineteen hundred
and eighty-eight.

[REPUBLIC ACT NO. 6727]

AN ACT TO RATIONALIZE WAGE POLICY DETERMINATION BY ESTABLISHING THE

MECHANISM AND PROPER STANDARDS THEREFOR, AMENDING FOR THE PURPOSE
ARTICLE 99 OF, AND INCORPORATING ARTICLES 120, 121, 122, 123, 124, 126 AND 127 INTO,
PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE
OF THE PHILIPPINES, FIXING NEW WAGE RATES, PROVIDING WAGE INCENTIVES FOR
INDUSTRIAL DISPERSAL TO THE COUNTRYSIDE, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1. This Act shall be known as the “Wage Rationalization Act.”

SEC. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages
and to promote productivity-improvement and gain-sharing measures to ensure a decent
standard of living for the workers and their families; to guarantee the rights of labor to its just
share in the fruits of production; to enhance employment generation in the countryside
through industry dispersal; and to allow business and industry reasonable returns on
investment, expansion and growth.

The State shall promote collective bargaining as the primary mode of settling wages and
other terms and conditions of employment; and whenever necessary, the minimum wage
rates shall be adjusted in a fair and equitable manner, considering existing regional disparities
in the cost of living and other socio-economic factors and the national economic and social
development plans.

SEC. 3. In line with the declared policy under this Act, Article 99 of Presidential Decree No.
442, as amended, is hereby amended and Articles 120, 121, 122, 123, 124, 126 and 127 are
hereby incorporated into Presidential Decree No. 442, as amended, to read as follows:

“ART. 99. Regional Minimum Wages. — The minimum wage rates for agricultural and non-
agricultural employees and workers in each and every region of the country shall be those
prescribed by the Regional Tripartite Wages and Productivity Boards.”

“ART. 120. Creation of the National Wages and Productivity Commission. — There is hereby
created a National Wages and Productivity Commission, hereinafter referred to as the
Commission, which shall be attached to the Department of Labor and Employment (DOLE) for
policy and program coordination.”

“ART. 121. Powers and Functions of the Commission. — The Commission shall have the
following powers and functions:

“(a) To act as the national consultative and advisory body to the President of the Philippines
and Congress on matters relating to wages, incomes and productivity;

“(b) To formulate policies and guidelines on wages, incomes and productivity improvement at
the enterprise, industry and national levels;

“(c) To prescribe rules and guidelines for the determination of appropriate minimum wage
and productivity measures at the regional, provincial or industry levels;

“(d) To review regional wage levels set by the Regional Tripartite Wages and Productivity
Boards to determine if these are in accordance with prescribed guidelines and national
development plans;

“(e) To undertake studies, researches and surveys necessary for the attainment of its
functions and objectives, and to collect and compile data and periodically disseminate
information on wages and productivity and other related information, including, but not
limited to, employment, cost-of-living, labor costs, investments and returns;

“(f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards
to determine whether these are consistent with national development plans;

“(g) To exercise technical and administrative supervision over the Regional Tripartite Wages
and Productivity Boards;
“(h) To call, from time to time, a national tripartite conference of representatives of
government, workers and employers for the consideration of measures to promote wage
rationalization and productivity; and

“(i) To exercise such powers and functions as may be necessary to implement this Act.

“The Commission shall be composed of the Secretary of Labor and Employment as ex-officio
chairman, the Director-General of the National Economic and Development Authority (NEDA)
as ex-officio vice-chairman, and two (2) members each from workers and employers sectors
who shall be appointed by the President of the Philippines upon recommendation of the
Secretary of Labor and Employment to be made on the basis of the list of nominees
submitted by the workers and employers sectors, respectively, and who shall serve for a term
of five (5) years. The Executive Director of the Commission shall also be a member of the
Commission.

“The Commission shall be assisted by a Secretariat to be headed by an Executive Director

and two (2) Deputy Directors, who shall be appointed by the President of the Philippines, upon
the recommendation of the Secretary of Labor and Employment.

“The Executive Director shall have the same rank, salary, benefits and other emoluments as
that of a Department Assistant Secretary, while the Deputy Directors shall have the same
rank, salary, benefits and other emoluments as that of a Bureau Director. The members of the
Commission representing labor and management shall have the same rank, emoluments,
allowances and other benefits as those prescribed by law for labor and management
representatives in the Employees’ Compensation Commission.

“ART. 122. Creation of Regional Tripartite Wages and Productivity Boards. — There is hereby
created Regional Tripartite Wages and Productivity Boards, hereinafter referred to as Regional
Boards, in all regions, including autonomous regions as may be established by law. The
Commission shall determine the offices/headquarters of the respective Regional Boards.

“The Regional Boards shall have the following powers and functions in their respective
territorial jurisdiction:

“(a) To develop plans, programs and projects relative to wages, incomes and productivity
improvement for their respective regions;

“(b) To determine and fix minimum wage rates applicable in their region, provinces or
industries therein and to issue the corresponding wage orders, subject to guidelines issued by
the Commission;

“(c) To undertake studies, researches and surveys necessary for the attainment of their
functions, objectives and programs, and to collect and compile data on wages, incomes,
productivity and other related information and periodically disseminate the same;
“(d) To coordinate with the other Regional Boards as may be necessary to attain the policy
and intention of this Code;

“(e) To receive, process and act on applications for exemption from prescribed wage rates as
may be provided by law or any Wage Order; and

“(f) To exercise such other powers and functions as may be necessary to carry out their
mandate under this Code.

Implementation of the plans, programs and projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be through the respective regional offices of
the Department of Labor and Employment within their territorial jurisdiction; Provided,
however, That the Regional Boards shall have technical supervision over the regional office of
the Department of Labor and Employment with respect to the implementation of said plans,
programs and projects.

“Each Regional Board shall be composed of the Regional Director of the Department of Labor
and Employment as chairman, the Regional Directors of the National Economic and
Development Authority and the Department of Trade and Industry as vice-chairmen and two
(2) members each from workers and employers sectors who shall be appointed by the
President of the Philippines, upon the recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a term of five (5) years.

“Each Regional Board to be headed by its chairman shall be assisted by a Secretariat.

“ART. 123. Wage Order. — Whenever conditions in the region so warrant, the Regional Board
shall investigate and study all pertinent facts; and based on the standards and criteria herein
prescribed, shall proceed to determine whether a Wage Order should be issued. Any such
Wage Order shall take effect after fifteen (15) days from its complete publication in at least
one (1) newspaper of general circulation in the region.

“In the performance of its wage determining functions, the Regional Board shall conduct
public hearings/consultations, giving notices to employees’ and employers’ groups, provincial,
city and municipal officials and other interested parties.

“Any party aggrieved by the Wage Order issued by the Regional Board may appeal such order
to the Commission within ten (10) calendar days from the publication of such order. It shall
be mandatory for the Commission to decide such appeal within sixty (60) calendar days from
the filing thereof.

“The filing of the appeal does not stay the order unless the person appealing such order shall
file with the Commission an undertaking with a surety or sureties satisfactory to the
Commission for the payment to the employees affected by the order of the corresponding
increase, in the event such order is affirmed.”

“ART. 124. Standards/Criteria for Minimum Wage Fixing. — The regional minimum wages to be
established by the Regional Board shall be as nearly adequate as is economically feasible to
maintain the minimum standards of living necessary for the health, efficiency and general
well-being of the employees within the framework of the national economic and social
development program. In the determination of such regional minimum wages, the Regional
Board shall, among other relevant factors, consider the following:

“(a) The demand for living wages;

“(b) Wage adjustment vis-a-vis the consumer price index;
“(c) The cost of living and changes or increases therein;
“(d) The needs of workers and their families;
“(e) The need to induce industries to invest in the countryside;
“(f) Improvements in standards of living;
“(g) The prevailing wage levels;
“(h) Fair return of the capital invested and capacity to pay of employers;
“(i) Effects on employment generation and family income; and
“(j) The equitable distribution of income and wealth along the imperatives of economic and
social development.

“The wages prescribed in accordance with the provisions of this Title shall be the standard
prevailing minimum wages in every region. These wages shall include wages varying within
industries, provinces or localities if in the judgment of the Regional Board conditions make
such local differentiation proper and necessary to effectuate the purpose of this Title.

“Any person, company, corporation, partnership or any other entity engaged in business shall
file and register annually with the appropriate Regional Board, Commission and the National
Statistics Office an itemized listing of their labor component, specifying the names of their
workers and employees below the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the terms prescribed in the employment
contracts, and their corresponding salaries and wages.

“Where the application of any prescribed wage increase by virtue of law or Wage order issued
by any Regional Board results in distortions of the wage structure within an establishment,
the employer and the union shall negotiate to correct the distortions. Any dispute arising from
wage distortions shall be resolved through the grievance procedure under their collective
bargaining agreement and, if it remains unresolved, through voluntary arbitration. Unless
otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary
arbitrator or panel of voluntary arbitrators within ten (10) calendar days from the time said
dispute was referred to voluntary arbitration.
“In cases where there are no collective agreements or recognized labor unions, the employers
and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be
settled through the National Conciliation and Mediation Board and, if it remains unresolved
after ten (10) calendar days of conciliation, shall be referred to the appropriate branch of the
National Labor Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct
continuous hearings and decide the dispute within twenty (20) calendar days from the time
said dispute is submitted for compulsory arbitration.

“The pendency of a dispute arising from a wage distortion shall not in any way delay the
applicability of any increase in prescribed wage rates pursuant to the provisions of law or
Wage Order.

“As used herein, a wage distortion shall mean a situation where an increase in prescribed
wage rates results in the elimination or severe contraction of intentional quantitative
differences in wage or salary rates between and among employee groups in an establishment
as to effectively obliterate the distinctions embodied in such wage structure based on skills,
length of service, or other logical bases of differentiation.

“All workers paid by result, including those who are paid on piecework, takay, pakyaw or task
basis, shall receive not less than the prescribed wage rates per eight (8) hours work a day, or
a proportion thereof for working less than eight (8) hours.

“All recognized learnership and apprenticeship agreements shall be considered automatically

modified insofar as their wage clauses are concerned to reflect the prescribed wage rates.”

“ART. 126. Prohibition Against Injunction. — No preliminary or permanent injunction or

temporary restraining order may be issued by any court, tribunal or other entity against any
proceedings before the Commission or the Regional Boards.”

“ART. 127. Non-diminution of Benefits. — No Wage Order issued by any Regional Board shall
provide for wage rates lower than the statutory minimum wage rates prescribed by
Congress.”

SEC. 4. (a) Upon the effectivity of this Act, the statutory minimum wage rates of all workers
and employees in the private sector, whether agricultural or non-agricultural, shall be
increased by twenty-five pesos (P25.00) per day, except that workers and employees in
plantation agricultural enterprises outside of the National Capital Region (NCR) with an
annual gross sales of less than five million pesos (P5,000,000.00) in the preceding year shall
be paid an increase of twenty pesos (P20.00), and except further that workers and employees
of cottage/handicraft industries, non-plantation agricultural enterprises, retail/service
establishments regularly employing not more than ten (10) workers, and business enterprises
with a capitalization of not more than five hundred thousand pesos (P500,000.00) and
employing not more than twenty (20) employees, which are located or operating outside the
NCR, shall be paid only an increase of fifteen pesos (P15.00): Provided, That those already
receiving above the minimum wage rates up to one hundred pesos (P100.00) shall also
receive an increase of twenty-five pesos (P25.00) per day, except that the workers and
employees mentioned in the first exception clause of this Section shall also be paid only an
increase of twenty pesos (P20.00), and except further that those employees enumerated in
the second exception clause of this Section shall also be paid an increase of fifteen pesos
(P15.00): Provided, further, That the appropriate Regional Board is hereby authorized to grant
additional increases to the workers and employees mentioned in the exception clauses of this
Section if, on the basis of its determination pursuant to Article 124 of the Labor Code such
increases are necessary.

(b) The increase of twenty-five pesos (P25.00) prescribed under this Section shall apply to all
workers and employees entitled to the same in private educational institutions as soon as
they have increased or are granted authority to increase their tuition fees during school year
1989-1990. Otherwise, such increase shall be so applicable not later than the opening of the
next school year beginning 1990.

(c) Exempted from the provisions of this Act are household or domestic helpers and persons
employed in the personal service of another, including family drivers.

Retail/service establishments regularly employing not more than ten (10) workers may be
exempted from the applicability of this Act upon application with and as determined by the
appropriate Regional Board in accordance with the applicable rules and regulations issued by
the Commission. Whenever an application for exemption has been duly filed with the
appropriate Regional Board, action on any complaint for alleged non-compliance with this Act
shall be deferred pending resolution of the application for exemption by the appropriate
Regional Board.

In the event that applications for exemptions are not granted, employees shall receive the
appropriate compensation due them as provided for by this Act plus interest of one per cent
(1%) per month retroactive to the effectivity of this Act.

(d) If expressly provided for and agreed upon in the collective bargaining agreements, all
increases in the daily basic wage rates granted by the employers three (3) months before the
effectivity of this Act shall be credited as compliance with the increases in the wage rates
prescribed herein, provided that, where such increases are less than the prescribed increases
in the wage rates under this Act, the employer shall pay the difference. Such increases shall
not include anniversary wage increases, merit wage increases and those resulting from the
regularization or promotion of employees.

Where the application of the increases in the wage rates under this Section results in
distortions as defined under existing laws in the wage structure within an establishment and
gives rise to a dispute therein, such dispute shall first be settled voluntarily between the
parties and in the event of a deadlock, the same shall be finally resolved through compulsory
arbitration by the regional branches of the National Labor Relations Commission (NLRC)
having jurisdiction over the workplace.

It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute
arising under this Section within twenty (20) calendar days from the time said dispute is
formally submitted to it for arbitration. The pendency of a dispute arising from a wage
distortion shall not in any way delay the applicability of the increase in the wage rates
prescribed under this Section.

SEC. 5. Within a period of four (4) years from the effectivity of this Act and without prejudice
to collective bargaining negotiations or agreements or other employment contracts between
employers and workers, new business enterprises that may be established outside the NCR
and export processing zones whose operation or investments need initial assistance as may
be determined by the Department of Labor and Employment in consultation with the
Department of Trade and Industry or the Department of Agriculture, as the case may be, shall
be exempt from the applicability of this Act for not more than three (3) years from the start of
their operations: Provided, That such new business enterprises established in Region III
(Central Luzon) and Region IV (Southern Tagalog) shall be exempt from such increases only
for two (2) years from the start of their operations, except those established in the Provinces
of Palawan, Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon and Aurora,
which shall enjoy such exemption for not more than three (3) years from the start of their
operations.

SEC. 6. In the case of contracts for construction projects and for security, janitorial and
similar services, the prescribed increases in the wage rates of the workers shall be borne by
the principals or clients of the construction/service contractors and the contract shall be
deemed amended accordingly. In the event, however, that the principal or client fails to pay
the prescribed wage rates, the construction/service contractor shall be jointly and severally
liable with his principal or client.

SEC. 7. Upon written permission of the majority of the employees or workers concerned, all
private establishments, companies, businesses, and other entities with twenty five (25) or
more employees and located within one (1) kilometer radius to a commercial, savings or rural
bank shall pay the wages and other benefits of their employees through any of said banks and
within the period of payment of wages fixed by Presidential Decree No. 442, as amended,
otherwise known as the Labor Code of the Philippines.

SEC. 8. Whenever applicable and upon request of a concerned worker or union, the bank shall
issue a certification of the record of payment of wages of a particular worker or workers for a
particular payroll period.

SEC. 9. The Department of Labor and Employment shall conduct inspections as often as
possible within its manpower constraint of the payroll and other financial records kept by the
company or business to determine whether the workers are paid the prescribed minimum
wage rates and other benefits granted by law or any Wage Order. In unionized companies, the
Department of Labor and Employment inspectors shall always be accompanied by the
president or any responsible officer of the recognized bargaining unit or of any interested
union in the conduct of the inspection. In non-unionized companies, establishments or
businesses, the inspection should be carried out in the presence of a worker representing the
workers in the said company. The workers’ representative shall have the right to submit his
own findings to the Department of Labor and Employment and to testify on the same if he
cannot concur with the findings of the labor inspector.

SEC. 10. The funds necessary to carry out the provisions of this Act shall be taken from the
Compensation and Organizational Adjustment Fund, the Contingent Fund, and other savings
under the Republic Act No. 6688, otherwise known as the General Appropriations Act of 1989,
or from any unappropriated funds of the National Treasury: Provided, That the funding
requirements necessary to implement this Act shall be included in the annual General
Appropriations Act for the succeeding years.

SEC. 11. The National Wages Council created under Executive Order No. 614 and the National
Productivity Commission created under Executive Order No. 615 are hereby abolished. All
properties, records, equipment, buildings, facilities, and other assets, liabilities and
appropriations of and belonging to the abovementioned offices, as well as other matters
pending therein, shall be transferred to the Commission. All personnel of the above abolished
offices shall continue to function in a holdover capacity and shall be preferentially considered
for appointments to or placement in the Commission.

Any official or employee separated from the service as a result of the abolition of office
pursuant to this Act shall be entitled to appropriate separation pay and retirement and other
benefits accruing to them under existing laws. In lieu, thereof, at the option of the employee,
he shall be preferentially considered for employment in the government or in any of its
subdivisions, instrumentalities, or agencies, including government-owned or controlled
corporations and their subsidiaries.

SEC. 12. Any person, corporation, trust, firm, partnership, association or entity which refuses
or fails to pay any of the prescribed increases or adjustments in the wage rates made in
accordance with this Act shall be punished by a fine not exceeding twenty five thousand
pesos (P25,000.00) and/or imprisonment of not less than one (1) year nor more than two (2)
years: Provided, That any person convicted under this Act shall not be entitled to the benefits
provided for under the Probations Law.

If the violation is committed by a corporation, trust or firm, partnership, association or any

other entity, the penalty of imprisonment shall be imposed on the entity’s responsible officers,
including, but not limited to, the president, vice-president, chief executive officer, general
manager, managing director or partner.
SEC. 13. The Secretary of Labor and Employment shall promulgate the necessary rules and
regulations to implement the provisions of this Act.

SEC. 14. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with
the provisions of this Act are hereby repealed, amended or modified accordingly. If any
provision or part of this Act, or the application thereof to any person or circumstance, is held
invalid or unconstitutional, the remainder of this Act or the application of such provision or
part thereof to other persons or circumstances shall not be affected thereby.

Nothing in this Act shall be construed to reduce any existing wage rates, allowances and
benefits of any form under existing laws, decrees, issuances, executive orders, and/or under
any contract or agreement between the workers and the employers.

SEC. 15. This Act take effect fifteen (15) days after its complete publication in the Official
Gazette or in at least two (2) national newspapers of general circulation, which ever comes
earlier.

Approved,

(Sgd.) Ramon V. Mitra. (Sgd.) Jovito R. Salonga

SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE

This Act which originated in the Senate Bill No. 1084 and House Bill No.

23227 was finally passed by both the Senate and the House of

Representatives on June 5, 1989.

(Sgd.) Quirino D. Abad Santos, Jr. (Sgd.) Edwin P. Acoba

SECRETARY OF THE HOUSE OF REPRESENTATIVES. SECRETARY OF THE SENATE

Approved: June 9, 1989

 (Sgd.) CORAZON C. AQUINO

President of the Philippines

S. No. 139

H. No. 12069

REPUBLIC OF THE PHILIPPINES

CONGRESS OF THE PHILIPPINES

METRO MANILA

Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-fifth day of July, nineteen hundred
and eighty-eight.

[REPUBLIC ACT No. 6713]

AN ACT ESTABLISHING A CODE OF CONDUCT AND ETHICAL STANDARDS FOR PUBLIC

OFFICIALS AND EMPLOYEES, TO UPHOLD THE TIME-HONORED PRINCIPLE OF PUBLIC
OFFICE BEING A PUBLIC TRUST, GRANTING INCENTIVES AND REWARDS FOR EXEMPLARY
SERVICE, ENUMERATING PROHIBITED ACTS AND TRANSACTIONS AND PROVIDING
PENALTIES FOR VIOLATIONS THEREOF AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1. Title.-This Act shall be known as the “Code of Conduct and Ethical Standards for
Public Officials and Employees.”
SEC. 2. Declaration of Policy.-It is the policy of the State to promote a high standard of ethics
in public service. Public officials and employees shall at all times be accountable to the
people and shall discharge their duties with utmost responsibility, integrity, competence, and
loyalty, act with patriotism and justice, lead nodest lives, and uphold public interest over
personal interest.

SEC. 3. Definition of Terms.-As used in this Act, the term:

(a) “Government” includes the National Government, the local governments, and all other
instrumentalities, agencies or branches of the Republic of the Philippines including
government-owned or controlled corporations, and their subsidiaries.

(b) “Public Officials” includes elective and appointive officials and employees, permanent or
temporary, whether in the career or non-career service, including military and police
personnel, whether or not they receive compensation, regardless of amount.

(c) “Gift” refers to a thing or a right disposed of gratuitously, or any act of liberality, in favor of
another who accepts it, and shall include a simulated sale or an ostensibly onerous
disposition thereof. It shall not include an unsolicited gift of nominal or insignificant value not
given in anticipation of, or in exchange for, a favor from a public official or employee.

(d) “Receiving any gift” includes the act of accepting, directly or indirectly, a gift from a person
other than a member of his family or relative as defined in this Act, even on the occasion of a
family celebration or national festivity like Christmas, if the value of the gift is neither nominal
nor insignificant, or the gift is given in anticipation of, or in exchange for, a favor.

(e) “Loan” covers both simple loan and commodatum as well as guarantees, financing
arrangements or accommodations intended to ensure its approval.

(f) “Substantial stockholder” means any person who owns, directly or indirectly, shares of
stock sufficient to elect a director of a corporation. This term shall also apply to the parties to
a voting trust.

(g) “Family of public officials or employees” means their spouses and unmarried children
under eighteen (18) years of age.

(h) “Person” includes natural and juridical persons unless the context indicates otherwise.

(i) “Conflict of interest” arises when a public official or employee is a member of a board, an
officer, or a substantial stockholder of a private corporation or owner or has a substantial
interest in a business, and the interest of such corporation or business, or his rights or duties
therein, may be opposed to or affected by the faithful performance of official duty.
(j) “Divestment” is the transfer of title or disposal of interest in property by voluntarily,
completely and actually depriving or dispossessing oneself of his right or title to it in favor of
a person or persons other than his spouse and relatives as defined in this Act.

(k) “Relatives” refers to any and. all persons related to a public official or employee within the
fourth civil degree of consanguinity or affinity, including bilas, inso and balae.

SEC. 4. Norms of Conduct of Public Officials and Employees.-(A) Every public official and
employee shall observe the following as standards of persornal conduct in the discharge and
execution of official duties:

(a) Commitment to, public interest.-Public officials and employees shall always uphold the
public interest over and above personal interest. All government resources and powers of
their respective offices must be employed and used efficiently, effectively, honestly and
economically, particularly to avoid wastage in public funds and revenues.

(b) Professionalism.-Public officials and employees shall perform and discharge their duties
with the highest degree of excellence, professionalism, intelligence and skill. They shall enter
public service with utmost devotion and dedication to duty. They shall endeavor to
discourage wrong perceptions of their roles as dispensers or peddlers of undue patronage.

(c) Justness and sincerity.-Public officials and employees shall remain true to the people at
all times. They must act with justness and sincerity and shall not discriminate against anyone,
especially the poor, And the underprivileged. They shall at all times respect the rights of
others, and shall refrain from doing acts contrary to law, good morals, good customs, public
policy, public order, public safety and public interest. They shall not dispense or extend undue
favors on account of their office to their relatives whether by consanguinity or affinity except
with respect to appointments of such relatives to positions considered strictly confidential or
as members of their personal staff whose terms are coterminous with theirs.

(d) Political neutrality.-Public officials and employees shall provide service to everyone
without unfair discrimination and regardless of party affiliation or preference.

(e) Responsiveness to the public.-Public officials and employees shall extend prompt,
courteous, and adequate service to the public. Unless otherwise provided by law or when
required by the public interest, public officials and employees shall provide information on
their policies and procedures in clear and understandable language, ensure openness of
information, public consultations and hearings whenever appropriate, encourage suggestions,
simplify and systematize policy, rules and procedures, avoid red tape and develop an
understanding and appreciation of the socioeconomic conditions prevailing in the country,
especially in the depressed rural and urban areas.

(f) Nationalism and patriotism.-Public officials and employees shall at all times be loyal to the
Republic and to the Filipino people, promote the use of locally-produced goods, resources and
technology and encourage appreciation and pride of country and people. They shall endeavor
to maintain and defend Philippine sovereignty against foreign intrusion.

(g) Commitment to democracy.-Public officials and employees shall commit themselves to

the democratic way of life and values, maintain the principle of public accountability, and
manifest by deeds the supremacy of civilian authority over the military. They shall at all times
uphold the Constitution and put loyalty to country above loyalty to persons or party.

(h) Simple living.-Public officials and employees and their families shall lead modest lives
appropriate to their positions and income. They shall not indulge in extravagant or
ostentatious display of wealth in any form.

(B) The Civil Service Commission shall adopt positive measures to promote (1) observance of
these standards including the dissemination of information programs and workshops
authorizing merit increases beyond regular progression steps, to a limited number of
employees recognized by their office colleagues to be outstanding in their observance of
ethical standards; and (2) continuing research and experimentation on measures which
provide positive motivation to public officials and employees in raising the general level of
observance of these standards.

SEC. 5. Duties of Public Officials and Employees.-In the performance of their duties, all public
officials and employees are under obligation to:

(a) Act promptly on letters and requests.-All public officials and employees shall, within
fifteen (15) working days from receipt thereof, respond to letters, telegrams or other means of
communications sent by the public. The reply must contain the action taken on the request.

(b) Submit annual performance reports.-All heads or other responsible officers of offices and
agencies of the government and of government-owned or controlled corporations shall, within
forty-five (45) working days from the end of the year, render a performance report of the
agency or office or corporation concerned. Such report shall be open and available to the
public within regular office hours.

(c) Process documents and papers expeditiously.-All official papers and documents must be
processed and completed within a reasonable time from the preparation thereof and must
contain, as far as practicable, not more than three (3) signatories therein. In the absence of
duly authorized signatories, the official next-in-rank or officer-in-charge shall sign for and in
their behalf.

(d) Act immediately on the public’s personal transactions.-All public officials and employees
must attend to anyone who wants to avail himself of the services of their offices and must, at
all times, act promptly and expeditiously.
(e) Make documents accessible to the public.-All public documents must be made accessible
to, and readily available for inspection by, the public within reasonable working hours.

SEC. 6. System of Incentives and Rewards.-A system of annual incentives and rewards is
hereby established in order to motivate and inspire public servants to uphold the highest
standards of ethics. For this purpose, a Committee on Awards to Outstanding Public Officials
and Employees is hereby created composed of the following: the Ombudsman and Chairman
of the Civil Service Commission as Co-Chairmen, and the Chairman of the Commission on
Audit. and two government employees to be appointed by the President, as members.

It shall be the task or this Committee to conduct a periodic, continuing review of the
performance of public officials and employees, in all the branches and agencies of
Government and establish a system of annual incentives and rewards to the end that due
recognition is given to public officials and employees of outstanding merit on the basis of the
standards set forth in this Act.

The conferment of awards shall take into account, among other things, the following: the
years of service and the quality and consistency of performance, the obscurity of the position,
the level of salary, the unique and exemplary quality of a certain achievement, and the risks or
temptations inherent in the work. Incentives and rewards to government officials and
employees of the year to be announced in public ceremonies honoring them may take the
form of bonuses, citations, directorships in government-owned or controlled corporations,
local and foreign scholarship grants, paid vacations, and the like. They shall likewise be
automatically promoted to the next higher position with the commensurate salary suitable to
their qualifications. In case there is no next higher position or it is not vacant, said position
shall be included in the budget of the office in the next General Appropriations Act. The
Committee on Awards shall adopt its own rules to govern the conduct of its activities.

SEC. 7. Prohibited Acts and Transactions.-In addition to acts and omissions of public officials
and employees now prescribed in the Constitution and existing laws, the following shall
constitute prohibited acts and transactions of any public official and employee and are hereby
declared to be unlawful:

(a) Financial and material interest.-Public officials and employees shall not, directly or
indirectly, have any financial or material interest in any transaction requiring the approval of
their office.

(b) Outside employment and other activities related thereto.-Public officials and employees
during their incumbency shall not:

(1) Own, control, manage or accept employment as officer, employee, consultant, counsel,
broker, agent, trustee or nominee in any private enterprise regulated, supervised or licensed
by their office unless expressly allowed by law;
(2) Engage in the private practice of their profession unless authorized by the Constitution or
law, provided that such practice will not conflict or tend to conflict with their official functions;
or

(3) Recommend any person to any position in a private enterprise which has a regular or
pending official transaction with their office.

These prohibitions shall continue to apply for a period of one (1) year after resignation,
retirement, or separation from public office, except in the case of subparagraph (b) (2) above,
but the professional concerned cannot practice his profession in connection with any matter
before the office he used to be with, in which case the one-year prohibition shall likewise
apply.

(c) Disclosure and/or misuse of confidential information.-Public officials and employees shall
not use or divulge, confidential or classified information officially known to them by reason of
their office and not made available to the public, either:

(1) To further their private interests, or give undue advantage to anyone; or

(2) To prejudice the public interest.

(d) Solicitation or acceptance of gifts.-Public officials and employees shall not solicit or
accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan or anything of
monetary value from any person in the course of their official duties or in connection with any
operation being regulated by, or any transaction which may be affected by the functions of
their office.

As to gifts or grants from foreign governments, the Congress consents to:

(i) The acceptance and retention by a public official or employee of a gift of nominal value
tendered and received as a souvenir or mark of courtesy;

(ii) The acceptance by a public official or employee of a gift in the nature of a scholarship or
fellowship grant or medical treatment; or

(iii) The acceptance by a public official or employee of travel grants or expenses for travel
taking place entirely outside the Philippines (such as allowances, transportation, food, and
lodging) of more than nominal value if such acceptance is appropriate or consistent with the
interests of the Philippines, and permitted by the head of office, branch or agency to which he
belongs.

The Ombudsman shall prescribe such regulations as may be necessary to carry out the
purpose of this subsection, including pertinent reporting and disclosure requirements.
Nothing in this Act shall be construed to restrict or prohibit any educational, scientific or
cultural exchange programs subject to national security requirements.

SEC. 8. Statements and Disclosure.-Public officials and employees have an obligation to

accomplish and submit declarations under oath of, and the public has the right to know, their
assets, liabilities, net worth and financial and business interests including those of their
spouses and of unmarried children under eighteen (18) years of age living in their
households.

(A) Statement of Assets and Liabilities and Financial Disclosure.-All public officials and
employees, except those who serve in an honorary capacity, laborers and casual or temporary
workers, shall file under oath their Statement of Assets, Liabilities and Net Worth and a
Disclosure of Business Interests and Financial Connections and those of their spouses and
unmarried children under eighteen (18) years of age living in their households.

The two documents shall contain information on the following:

(a) real property, its improvements, acquisition costs, assessed value and current fair market
value;

(b) personal property and acquisition cost;

(c) all other assets such as investments, cash on hand or in banks, stocks, bonds, and the like;

(d) liabilities; and

(e) all business interests and financial connections.

The documents must be filed:

(a) within thirty (30) days after assumption of office;

(b) on or before April 30 of every year thereafter; and

(c) within thirty (30) days after separation from the service.

All public officials and employees required under this section to file the aforestated
documents shall also execute, within thirty (30) days from the date of their assumption of
office, the necessary authority in favor of the Ombudsman to obtain from all appropriate
government agencies, including the Bureau of Internal Revenue, such documents as may
show their assets, liabilities, net worth, and also their business interests and financial
connections in previous years, including, if possible, the year when they first assumed any
office in the Government.
Husband and wife who are both public officials or employees may file the required
statements jointly or separately.

The Statements of Assets, Liabilities and Net Worth and the Disclosure of Business Interests
and Financial Connections shall be filed by:

(1) Constitutional and national elective officials, with the national office of the Ombudsman;

(2) Senators and Congressmen, with the Secretaries of the Senate and the House of
Representatives, respectively; Justices, with the Clerk of Court of the Supreme Court; Judges,
with the Court Administrator; and all national executive officials with the Office of the
President;

(3) Regional and local officials and employees, with the Deputy Ombudsman in their
respective regions;

(4) Officers of the armed forces from the rank of colonel or naval captain, with the Office of
the President, and those below said ranks, with the Deputy Ombudsman in their respective
regions; and

(5) All other public officials and employees, defined in Republic Act No. 3019, as amended,
with the Civil Service Commission.

(B) Identification and disclosure of relatives.-It shall be the duty of every public official or
employee to identify and disclose, to the best of his knowledge and information, his relatives
in the Government in the form, manner and frequency prescribed by the Civil Service
Commission.

(C) Accessibility of documents.-(l) Any and all statements filed under this Act, shall be made
available for inspection at reasonable hours.

(2) Such statements shall be made available for copying or reproduction after ten (10)
working days from the time they are filed as required by law.

(3) Any person requesting a copy of a statement shall be required to pay a reasonable fee to
cover the cost of reproduction and mailing of such statement, as well as the cost of
certification.

(4) Any statement filed under this Act shall be available to the public for a period of ten (10)
years after receipt of the statement. After such period, the statement may be destroyed
unless needed in iii ongoing investigation.

(D) Prohibited acts.-It shall be unlawful for any person to obtain or use any statement filed
under this Act for:
(a) any purpose contrary to morals or public policy; or

(b) any commercial purpose other than by news and communications media for
dissemination to the general public.

SEC. 9. Divestment.-A public official or employee shall avoid conflicts of interest it all times.
When a conflict of interest arises, he shall resign from his position, in any private business
enterprise within thirty (30) days from his assumption of office and/or divest himself of his
shareholdings or interest within sixty (60) days from such assumption.

The same rule shall apply where the public official or employee is a partner in a partnership.

The requirement of divestment shall not apply to those who serve the Government in in
honorary capacity nor to laborers and casual or temporary workers.

SEC. 10. Review and Compliance Procedure.-(a) The designated Committees of both houses
of the Congress shall establish procedures for the review of statements to determine whether
said statements have been submitted on time, are complete, and are in proper form. In the
event a determination is made that a statement is not so filed, the appropriate Committee
shall so inform the reporting individual and direct him to take the necessary corrective action.

(b) In order to carry out their responsibilities under this Act, the designated Committees of
both houses of the Congress shall have the power, within their respective jurisdictions, to
render any opinion interpreting this Act, in writing, to persons covered by this Act, subject in
each instance to the approval by affirmative vote of the majority of the particular House
concerned.

The individual to whom an opinion is rendered, and any other individual involved in a similar
factual situation, and who, after issuance of the opinion acts in good faith in accordance with
it shall not be subject to any sanction provided in this Act.

(c) The heads of other offices shall perform the duties stated in subsections (a) and (b)
hereof insofar as their respective offices are concerned, subject to the approval of the
Secretary of Justice, in the case of the Executive Department and the Chief Justice of the
Supreme Court, in the case of the Judicial Department.

SEC. 11. Penalties.-(a) Any public official or employee, regardless of whether or not he holds
office or employment in a casual, temporary, holdover, permanent or regular capacity,
committing any violation of this Act shall be punished with a fine not exceeding the equivalent
of six (6) months salary or suspension not exceeding one (1) year, or removal depending on
the gravity of the offense after due notice and hearing by the appropriate body or agency. If
the violation is punishable by a heavier penalty under another law, he shall be prosecuted
under the latter statute. Violations of Sections 7, 8 or 9 of this Act shall be punishable with
imprisonment not exceeding five (5) years, or a fine not exceeding five thousand pesos
(P5,000.00), or both, and, in the discretion of the court of competent jurisdiction,
disqualification to hold public office.

(b) Any violation hereof proven in a proper administrative proceeding shall be sufficient cause
for removal or dismissal of a public official or employee, even if no criminal prosecution is
instituted against him.

(c) Private individuals who participate in conspiracy as co-principals, accomplices or

accessories, with public officials or employees, in violation of this Act, shall be subject to the
same penal liabilities as the public officials or employees and shall be tried jointly with them.

(d) The official or employee concerned may bring an action against any person who obtains
or uses a report for any purpose prohibited by Section 8 (D) of this Act. The Court in which
such action is brought may assess against such person a penalty in any amount not to
exceed twenty-five thousand pesos (P25,000.00). If another sanction hereunder or under any
other law is heavier, the latter shall apply.

SEC. 12. Promulgation of Rules and Regulations, Administration, and Enforcement of this
Act.-The Civil Service Commission shall have the primary responsibility for the administration
and enforcement of this Act. It shall transmit all cases f or prosecution arising from violations
of this Act to the proper authorities for appropriate action: Provided, however, That it may
institute such administrative actions and disciplinary measures as may be warranted in
accordance with law. Nothing in this provision shall be construed as a deprivation of the right
of each House of Congress to discipline its Members for disorderly behavior. The Civil Service
Commission is hereby authorized to promulgate rules and regulations necessary to carry out
the provisions of this Act, including guidelines for individuals who render free voluntary
service to the Government. The Ombudsman shall likewise take steps to protect citizens who
denounce acts or omissions of public officials and employees which are in violation of this
Act.

SEC. 13. Provisions for More Stringent Standards.-Nothing in this Act shall be construed to
derogate from any law, or any regulation prescribed by any body or agency, which provides for
more stringent standards for its officials and employees.

SEC. 14. Appropriations.-The sum necessary for the effective implementation of this Act shall
be taken from the appropriations of the Civil Service Commission. Thereafter, such sum as
may be needed for its continued implementation shall be included in the annual General
Appropriations Act.

SEC. 15. Separability Clause.-If any provision of this Act or the application of such provision to
any person or circumstance is declared invalid, the remainder of the Act or the application of
such provision to other persons or circumstances shall not be affected by such declaration.
SEC. 16. Repealing Clause.-All laws, decrees and orders or parts thereof inconsistent
herewith, are deemed repealed or modified accordingly, unless the same provide for a heavier
penalty.

SEC. 17. Effectivity.-This Act shall take effect after thirty (30) days following the completion
of its publication in the Official Gazette or in two (2) national newspapers of general
circulation.

Approved,

Ramon V. Mitra. Jovito R. Salonga

SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE

This Act which is a consolidation of Senate Bill No. 139 and House Bill No. 12069 was finally
passed by the Senate and the House of Representatives on October 21, 1988 and February 9,
respectively.

Quirino D. Abad Santos, Jr. Edwin P. Acoba

SECRETARY OF THE HOUSE OF REPRESENTATIVES. SECRETARY OF THE SENATE

Approved: February 20, 1989

CORAZON C. AQUINO

President of the Philippines