SSS coverage for workers in wellness spa, beauty salon, fitness gym sought

A lawmaker is determined to shepherd a measure mandating the compulsory inclusion of thousands of barbers, haircutters or hairstylists, manicurists or pedicurists, make-up artists or beauty professionals, masseuse, reflexologists or therapists and gym trainers, fitness instructors or dieticians in the coverage of the Social Security System (SSS).

Rep. Raymond Democrito Mendoza (Party-list, TUCP) is hopeful that the proposal, which removes the workers in wellness spas, beauty salons and fitness gyms from the category of self-employed, will ultimately be enacted into law in the next Congress.

The proposal is contained in House Bill 1558, which was authored by Mendoza. It is pending in the House Committee on Government Enterprises and Privatization.

In pushing for the proposal, Mendoza noted the recent growth of wellness centers, which, more often than not, are an amalgamation of beauty and grooming salons, fitness gyms, spas and massage parlors and other interrelated services.

"The industry is the bread and butter of thousands of workers in wellness spas, beauty salons and fitness gyms. Most of these are 'experts' in their individual fields who have undergone professional training. However, in most instances, the services of these persons are merely outsourced by the wellness centers. They are not employed but are treated as independent contractors," Mendoza said.

Mendoza said these workers lease the facilities of the centers and bring their own set of clients. Their compensation or payment is based on a per head basis and they earn a commission or share in the payments due their clients.

He added that they are not required to observe office hours or report to the company every day. They are not devoting their time exclusively for one company and are free to work on any other wellness facility, or engage in any other employment.

"One of the predicaments of these workers is their membership in the SSS. With the above-mentioned arrangement, they are considered as self-employed. Thus, they pay their entire SSS membership dues and there is no one to pay the heftier employer counterpart," Mendoza said.

According to Mendoza, the vision of the measure is to compel owners of the wellness center, barbershop, salon, spa, massage parlor, fitness gym or any other similar entity to which they are affiliated or regularly report to render their services which are considered as their employer to deduct and withhold from the concerned person's average monthly commissions, earnings, compensation or payment, his/her employee's contribution, as well as pay for and remit the counterpart employer's contribution.

"By doing this, these persons would be able to continue being an active SSS member and reap the benefits, while still working or upon their retirement," Mendoza stressed.

The measure amends Section 9-A of Republic Act 1161, as amended, otherwise known as the “Social Security Law,” by compulsory including, 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, haircutters or hairstylists; manicurists or pedicurists; make-up artists; masseuse, reflexologists or therapists and gym trainers, fitness instructors or dieticians, and shall not be considered under the category of self-employed.

"The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. The social security of workers in the wellness centers, beauty and grooming salons, fitness gyms, spas and massage parlors, and other interrelated services should always be protected and promoted," Mendoza said. - Lorelei V. Castillo, Media Relations Service-PRIB

Solon seeks increased separation pay for employees terminated due to disease

A lawmaker is seeking an increase of separation pay of workers given the pink slip due to sickness.

Rep. Raymond Democrito C. Mendoza (Party-list, TUCP) said employees terminated due to disease should be treated with compassion and differently from other causes.

"The reason is obvious. An employee terminated due to such a disease will no longer be able to find gainful employment as compared to those who were terminated due o redundancy and related causes," Mendoza said.

Mendoza cited Article 283 of the Labor Code of the Philippines which states that the employer may terminate employment or reduce the total number of personnel due to installation of labor saving devices, among others.

"On the other hand, Article 284 of the Labor Code of the Philippines or Presidential Decree No. 442 allows termination on the ground of disease," he said.

Mendoza said in all the said instances of authorized causes of termination, the separation pay ranges from payment of half (1/2) month to one-month salary for every year of service.

House Bill 893 seeks the increase of separation pay of employees terminated due to disease to at least six months salary or two months salary for every year of service, whichever is greater.

Likewise, 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 this cause.

The bill further mandates that should the employee terminated on such ground regain his health, he shall be entitled to his former position without loss of seniority. - Ma. Victoria I. Palomar, Media Relations Service

Kilusan TUCP on Labor Day 2013

Protection of workers during business overhauls pushed

The country's largest organization of labor federations and unions will continue to fight for the protection of workers and the preservation of their jobs during mergers, consolidations or transfer of businesses.

Rep. Raymond Democrito Mendoza of the Trade Union Congress Party (TUCP) Party-List said, any merger, consolidation or transfer of business should not diminish the wages, benefits and other employment terms and conditions of the affected employees.

Mendoza filed House Bill 1557, which seeks to oblige the acquiring or transferee employers to continue the employment of the transferor employer's employees.

"An employment that has been zealously earned, industriously worked for, valued and treasured should be secured. Protection should extend to remunerations and benefits, with all the enhancements merited due to years of arduous service," Mendoza said.

Mendoza said the TUCP has consistently advocated, not only for job generation, but more importantly, for job protection and preservation.

"Competition among businesses has become tremendously intense that the dictum bigger is better has obtained zealous advocates the world over, including our country's multinational companies," Mendoza said.

"This is most especially true in this interesting time and age of globalization. Because of the need to become bigger and more competitive, the incidence of mergers, consolidations and acquisitions, including the sale or transfer of all or substantial assets, business enterprise has become very rampant," Mendoza said.

The problem is, Mendoza lamented, "some employers device these schemes - a corporate mechanism, not really for the purpose of obtaining competitiveness but with the end in view of violating workers' security of tenure, among other rights of employees."

"This plethora of previously unfamiliar corporate occurrences creates a trail of novel issues, such as the rights of employees and liabilities of the employers. This is when the issues of the security of tenure, diminution of wages and benefits and other employment terms and conditions come to fore," Mendoza said.

Mendoza has been strongly batting for his proposed measure saying it is the State's policy to extend utmost protection to the security of tenure, wages, benefits and other employment terms and conditions of employees in cases of merger or consolidation of the business of their employer with other entities.

The protection shall extend in case an employer acquires, transfers, sells, assigns, conveys or leases all, or substantially all assets, business enterprise or going concern to another employer or business entity.

Under the measure, the transferee employer shall have the obligation to continue the employment of the transferor employer's employees, without loss of seniority rights and other privileges.

In case of differences in the employment levels, wage and benefit scales, and other employment terms or conditions, the superior or most favorable to the employees shall prevail.

The transferor employer shall be liable to money claims pertaining to the period when the transferee employer was still the employer.

The measure also aims to limit the ground for termination of employment to redundancy and shall be liable for separation pay or other benefits as prescribed under the Labor Code.

"Plus it sets a presumption that if the transferee employer or new company becomes a bigger entity than the prior one, there can be no declaration of redundancy as the business can absorb the employee," Mendoza added.

The measure also requires the new company to give an employee declared to be redundant in a certain position first priority for employment in the newly created position, if qualified.

Finally, the measure sets out rules on recognition of existing bargaining agents and agreements, protecting not only the unions, but also the benefits worked hard for by them as embodied in the Collective Bargaining Agreements (CBA). - Jazmin S. Camero, Media Relations Service-PRIB