A lawmaker has filed a bill prohibiting credit card companies, banks and similar institutions from imposing hidden penalties or costs on purchases and cash advances made by their clients.
Rep. Raymond Mendoza (Party-list, TUCP) filed House Bill 2551 as he noted the urgent need to protect the consuming public from the exorbitant rates being imposed by the credit card companies and banks.
Mendoza said the monthly rates range from 2.5 to 3.5 percent for cumulative non-compounded interest rates of 30 to 42 percent per year.
"With the penalty, late payment fees and other charges compounding, the rate is more than what '5-6' operators charge," Mendoza said.
Mendoza cited the ruling of the Supreme Court on the case of depositor Ileana Macalinao versus Bank of the Philippine Island (BPI) on September 19, 2009.
Mendoza quoted the High Tribunal's decision, which ruled, "We are of the opinion that the interest rate and penalty charge should be equitably reduced to 2 percent per month or 24 percent per annum."
Mendoza said the bill will put into effect the cap on interest rates and penalty charges as ruled by the Supreme Court.
Mendoza said the bill prohibits credit card companies from charging fees for exceeding the cardholder's credit limit.
"Such fees are unconscionable since the credit card companies themselves authorized individual transactions which resulted in cardholders exceeding their credit limits," Mendoza said.
Under the bill, interest rates imposed by credit card companies on purchases and cash advances made through such facility shall in no case be higher than 1 percent per month or 12 percent per annum, without compounding.
Surcharges or penalties shall likewise be limited to a ceiling of 1 percent per month, without compounding.
Tuesday, November 26, 2013
Sunday, November 24, 2013
Barbers and make up artists to get SSS membership soon
A lawmaker has filed a bill protecting the rights and promoting the welfare of workers in the wellness centers, beauty and grooming salons, fitness gyms, spas and massage parlors by facilitating their membership in the Social Security System (SSS).
Rep. Raymond Democrito Mendoza (Party-list, TUCP) said under House Bill 2550, workers in wellness centers, beauty salons, fitness gyms and other interrelated services should be removed from the definition of self-employed under the SSS law.
Mendoza said barbershops, salons, spas, massage parlors, wellness or fitness centers or gyms, and any other similar entity to which the workers regularly report to render their services shall be considered their employers.
"Their employers should deduct and withhold from them the average monthly commissions, earnings, compensation or payment, as an employee's contribution to the SSS," Mendoza said.
Mendoza said the bill, which seeks to amend Republic Act 1161 or the Social Security Law, removes the workers from the definition of self-employed under the SSS law irrespective of the contractual arrangement or their non-recognition as employees.
According to Mendoza, workers of wellness centers or of the barbershops, or any other similar entity, lease the facilities of the centers and bring their own set of clients.
Mendoza said the workers, who are being paid on a per-head basis, earn a commission or share in the payments due from their clients. They are not required to observe office hours or report to the company everyday, and do not devote their time exclusively for one company for they are free to work on any other wellness facility, or to engage in any other employment.
"Under the bill, these workers are considered self-employed, thus they pay their entire SSS membership dues, and there is no one to pay the heftier employer counterpart," Mendoza said.
"Irrespective of the contractual arrangement of their non-recognition as employees, or of the kind or source of the commissions, earnings, compensation or payment for their services, barbers, hairstylist, manicurists, make-up artists, masseuse, reflexologists, gym trainers, fitness instructors or dieticians shall not be considered as self-employed," Mendoza added. - Jazmin S. Camero, Media Relations Service-PRIB
Rep. Raymond Democrito Mendoza (Party-list, TUCP) said under House Bill 2550, workers in wellness centers, beauty salons, fitness gyms and other interrelated services should be removed from the definition of self-employed under the SSS law.
Mendoza said barbershops, salons, spas, massage parlors, wellness or fitness centers or gyms, and any other similar entity to which the workers regularly report to render their services shall be considered their employers.
"Their employers should deduct and withhold from them the average monthly commissions, earnings, compensation or payment, as an employee's contribution to the SSS," Mendoza said.
Mendoza said the bill, which seeks to amend Republic Act 1161 or the Social Security Law, removes the workers from the definition of self-employed under the SSS law irrespective of the contractual arrangement or their non-recognition as employees.
"These workers would be able to continue being an active SSS member and reap the benefits while they are still working or upon their retirement," Mendoza said.
According to Mendoza, workers of wellness centers or of the barbershops, or any other similar entity, lease the facilities of the centers and bring their own set of clients.
Mendoza said the workers, who are being paid on a per-head basis, earn a commission or share in the payments due from their clients. They are not required to observe office hours or report to the company everyday, and do not devote their time exclusively for one company for they are free to work on any other wellness facility, or to engage in any other employment.
"Under the bill, these workers are considered self-employed, thus they pay their entire SSS membership dues, and there is no one to pay the heftier employer counterpart," Mendoza said.
"Irrespective of the contractual arrangement of their non-recognition as employees, or of the kind or source of the commissions, earnings, compensation or payment for their services, barbers, hairstylist, manicurists, make-up artists, masseuse, reflexologists, gym trainers, fitness instructors or dieticians shall not be considered as self-employed," Mendoza added. - Jazmin S. Camero, Media Relations Service-PRIB
Saturday, November 16, 2013
Solon seeks additional separation pay for employees terminated due to disease
TUCP Party-List Rep. Raymond Democrito Mendoza has filed a bill seeking to increase the separation pay of employees terminated due to disease.
House Bill 2548 amends Article 284 of Presidential Decree 442, otherwise known as the Labor Code of the Philippines.
Mendoza sought the increase as he stressed that employees terminated due to disease must be treated with compassion for they may never be able to find gainful employment again.
The Labor Code of the Philippines or Presidential Decree 442 as amended, lists and limits the authorized causes for employment termination.
Article 283 of PD 442 allows employer to terminate employment or reduce the total number of personnel due to installation of labor saving devices, redundancy, and retrenchment to prevent losses, and cessation of operations or closure of the establishment. Article 284 of PD 442, on the other hand, allows termination on the grounds of disease.
"In all instances of authorized causes of termination, the separation pay ranges from payment of half month to one month salary for every year of service," Mendoza said.
The measure seeks the increase of separation pay of employees terminated due to disease, from one month's salary or one-half month salary for every year of service, to the equivalent of at least six months salary or two months salary for every year of service, whichever is greater.
Also, the bill institutionalizes the issuance of a certification by a competent public health authority that the disease is of such nature or at such stage that it cannot be cured within a period of six months even with proper medical treatment before an employee can be terminated for the disease.
The measure also mandates that should the employee terminated due to sickness regain his health, he shall be entitled to reinstatement to his or her former position without loss of seniority.
House Bill 2548 amends Article 284 of Presidential Decree 442, otherwise known as the Labor Code of the Philippines.
Mendoza sought the increase as he stressed that employees terminated due to disease must be treated with compassion for they may never be able to find gainful employment again.
The Labor Code of the Philippines or Presidential Decree 442 as amended, lists and limits the authorized causes for employment termination.
Article 283 of PD 442 allows employer to terminate employment or reduce the total number of personnel due to installation of labor saving devices, redundancy, and retrenchment to prevent losses, and cessation of operations or closure of the establishment. Article 284 of PD 442, on the other hand, allows termination on the grounds of disease.
"In all instances of authorized causes of termination, the separation pay ranges from payment of half month to one month salary for every year of service," Mendoza said.
"It is the policy of the State to afford full protection to labor and continuously endeavor to provide for security of tenure to workers and ameliorate the welfare of those who have been removed from employment for causes other than their own fault," Mendoza added.
The measure seeks the increase of separation pay of employees terminated due to disease, from one month's salary or one-half month salary for every year of service, to the equivalent of at least six months salary or two months salary for every year of service, whichever is greater.
Also, the bill institutionalizes the issuance of a certification by a competent public health authority that the disease is of such nature or at such stage that it cannot be cured within a period of six months even with proper medical treatment before an employee can be terminated for the disease.
The measure also mandates that should the employee terminated due to sickness regain his health, he shall be entitled to reinstatement to his or her former position without loss of seniority.
Friday, November 15, 2013
Bill to give foreign workers the right to self-organization
A lawmaker has filed a bill extending to foreign workers the right to self-organization while in the Philippines.
Rep. Raymond Democrito Mendoza (Party-list, TUCP), author of House Bill 2543, said the right to self-organization is a universal human and worker’s right and as an International Labour Organization (ILO) member-country, the Philippines recognizes the right to self-organization, with the ratification of ILO Convention No. 87 on Freedom of Association.
The bill seeks to amend Presidential Decree 442 as amended, also known as the Labor Code of the Philippines.
Mendoza said the Philippines should adhere to the principle of equal treatment of migrant workers and national workers as regards to trade union membership and collective bargaining.
"The trade union movement draws strength from the solidarity of workers and their organizations, whether inside or outside the country or both," Mendoza said.
Under the measure, all aliens, natural or judicial, as well as foreign organizations, with valid permits issued by the Department of Labor and Employment (DOLE), may engage directly or indirectly in all forms of trade union activities but only through normal contacts between Philippine labor unions and recognized international labor centers.
The bill provides that foreign individual, organization or entities may give any donations, grants or other forms of assistance, in cash or in kind, directly or indirectly, to any labor organization, group of workers or any auxiliary, such as cooperatives, credit unions and institutions engaged in research, education or communication, in relation to trade union activities. - Jazmin S. Camero, Media Relations Service-PRIB
Rep. Raymond Democrito Mendoza (Party-list, TUCP), author of House Bill 2543, said the right to self-organization is a universal human and worker’s right and as an International Labour Organization (ILO) member-country, the Philippines recognizes the right to self-organization, with the ratification of ILO Convention No. 87 on Freedom of Association.
The bill seeks to amend Presidential Decree 442 as amended, also known as the Labor Code of the Philippines.
Mendoza said the Philippines should adhere to the principle of equal treatment of migrant workers and national workers as regards to trade union membership and collective bargaining.
"The trade union movement draws strength from the solidarity of workers and their organizations, whether inside or outside the country or both," Mendoza said.
Under the measure, all aliens, natural or judicial, as well as foreign organizations, with valid permits issued by the Department of Labor and Employment (DOLE), may engage directly or indirectly in all forms of trade union activities but only through normal contacts between Philippine labor unions and recognized international labor centers.
The bill provides that foreign individual, organization or entities may give any donations, grants or other forms of assistance, in cash or in kind, directly or indirectly, to any labor organization, group of workers or any auxiliary, such as cooperatives, credit unions and institutions engaged in research, education or communication, in relation to trade union activities. - Jazmin S. Camero, Media Relations Service-PRIB
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