or deduction by employers from the compensation of

Transcription

1 THIRTEENTH CONGRESS OF THE REPUBLIC) OF THE PHILIPPINES 1 Frst Regular Sesson 1 Introduced by Senator Mram Defensor Santago -_-. The GGestrcted g&shment EXPLANATORY NOTE or deducton by employers from the compensaton of employees encourages lberal extenson of credt by unscrupulous partes. Garnshment as a credtor's remedy sometmes results n loss of employment by the debtor, resultng n the dsrupton of employment, producton, and consumpt'on whch 1( consttutes a substantal burden on local commerce. Ths bll seeks to regulate the garnshment of compensaton arsng from employment.

2 THIRTEENTH CONGRESS OF THE REPUBLIC) OF THE PHILIPPINES 1 Frst Regular Sesson 1 SENATE.1 S.B.No rltleived BY: L, Introduced by Senator Mram Defensor Santago AN ACT PROVIDING FOR RESTRICTIONS ON GARNISHMENT OF COMPENSATION DUE FOR PERSONAL SERVICES Be t enacted by the Senate and House of Representatves of the Phlppnes n Congress assembled: SECTION 1. Short Ttle. - Ths Act may be cted as the Restrctons on Garnshment 1~ of Compensaton Act. SECTION 2. Defnton of Terms. -For purposes of ths Act, the term - (1) Earnngs means compensaton pad or payable for personal servces, 1 whether denomnated as wages, salary, commsson, bonus, or otherwse, and nclud perodc payments pursuant to a penson or retrement program. (2) Dsposable Earnngs means that part of the earnngs of any ndvdual remanng after the deducton from those earnngs of any amounts requred by law to be wthheld. (3) Garnshment means any legal or equtable procedure through whch the earnngs of any ndvdual are requred to be wthheld for payment of any debt. SECTION 3. Restrcton on Garnshment. - (1) Except as provded n subsecton (2) of ths Secton, the maxmum part of the aggregate dsposable earnngs of an ndvdual for any workweek whch s subjected to garnshment may not exceed - (a) twenty fve per centum (25%) of hs dsposable earnngs for that week, or

3 ~ I ~! I! ~ I! '. (b) the amount by whch hs dsposable earnngs or that week exceed thrty I I. ~ (30) tmes the mnmum hourly wage prescrbed by law n effect at the!tme the eamlngs are I payable whchever s less. In the case of earnngs for any pay perod ober than a week, the 4 l Secretary of Labor and Employment shall by regulaton prescrbe a multple o f t he dmum hourly wage requred by law equvalent n effect to that set forth n paragraph (2). $ 1 I, ' I (2) (a) The restrctons of subsecton (1) of ths Secton do not apply n the cjue of t j () any order for the support of any person ssued by a poyt of,. competent jursdcton or n accordance wth an admnstratve procedure, whch s establshed by law, whch affords substantal due process, and whch s subject to judcal revew. 1 : 1 1!, I ' (aa) any order of any court havng jursdcton over,cases nvolvng bankruptcy proceedngs.,, : I --- mposed by a-local government. (bb) any debt due for any natonal nternal revenue t; tax (cc) The maxmum part of the aggregal of an ndvdual for any workweek whch s subject to garnshment to enf support of any person shall not exceed - (aaa) where such ndvdual s sup dependent chld other than a spouse or chld wth respect to whose sup centum (50%) of such ndvdual's dsposable earnngs for that week; and (bbb) where such ndvdual s n spouse or dependent chld descrbed n clause (), sxtycer centum (60% dsposable earnngs that week; Except that, wth respect to the dsp workweek the ffty per centurn (50%) specfed n c per centum (55"/0) and the sxty per centum (60%) s be sxty-fve per centum (65%) f and to the extent to enforce a support order wth respect to a pen : >, dsposable :e any ordf 1 mrtng hs s rtsuse, supportn) )f such n? ndvdu med to be shall be d, )ject to gar twelve-wec the ; or P er h a al's any fve 3 to lent od whch ends wth the begnnng of such workweek.,.

4 SECTION 4. Executon Or Enforcement Of Garnshment Order Or Process No court or admnstratve agency make, execute, or enforce any order or process n ths Act. SECTION 5. Restrcton on Dscharge From Employment By Reason of Garnshment. - (1) No employer may dscharge any employee by reason of the fact that hs earnngs have been subjected to garnshment for any one ndebtedness. (2) Whoever wllfully volates subsecton (1) of ths Secton shall be fned not more than THIRTY THOUSAND PESOS (P30, OOO.OO), or mprsoned for not more than one (1) year, or both. SECTION 6. Enforcement by Secretavy oflabor and Employment. - The Secretary of Labor and Employment shall enforce the provsons of ths Act. earnngs have been subjected to garnshment for more than one ndebtedness. SECTION 8. Separablty Clause. - If any provson or part thereof, s held nvald or SECTION 9. Repealng Clause. - Any law, presdental decree or ssuance, executve order, letter of nstructon, admnstratve order, rule o r regulaton c ontrary t 0, or nconsstent wth, the provsons of ths Act s hereby repealed, modfed or amended accordngly.

5 SECTION 10. Effectvty CZause. - Ths Act shall take effect ffteen (15) days after ts publcaton n at least two (2) newspapers of general crculaton. Approved, I343