Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1925

Introduced by HON. CLINTON C. CARAMAT

2nd District, Pangasinan

EXPLANATORY NOTE

Computers were introduced in the Philippines in the late 60's by IBM Philippines, Inc.
This computer was big and a whole room was needed to accommodate this computer, more
commonly known as mainframes. Their basic function was more on data storage, and not
just anyone can operate the computer. It needed a highly trained technician to use it and
translate its data and the language used by these computers was Binary language, a series
of 0's and 1's. It was not a user friendly machine and it was very expensive in the Philippines
because only multi-national companies had one. In the mid 70's a highly evolved computer
came in to the scene, Apple with its Apple1 had a great impact on the Philippine market, this
new computers were compact and space needed was very small, these computers were

called mini's or personal computers popularly called PC's. This started an era of
computerization in the Philippines because of its affordability and the introduction of a new
Operating System developed by Mr. Bill Gates, who's company was soon to be known as
(Microsoft), made the use of computers very easy and almost all the companies as well as
individuals made full use of them in their homes and in their business. Before the turn of the
century, computers was a necessity rather than an luxury in the Philippines more and more
schools are incorporating computer as part of their curriculum, the Filipinos has evolved to a
new breed of men, women and even children who are dependent on computers for their
researches and school activities.
Companies in the Philippines are now relaying on these computers in their day today
activities from payroll to communication via E-mail to their clients, and Filipinos are more
and more aware of the importance of these gadgets in business and the countrys economy.
In the early part of the 21rst century more and more different types of computer are being
introduced to the Philippines. There are now laptops, mini desktops and more, proving the
Philippines and its people, the Filipinos are now part of the hi-tech community. Included in
this development is the booming of computer shops all over the country, whether it is in
urban areas or in rural areas. Many Filipinos find computer shops lucrative as there is no
need for a huge capital to enter into this business. This is because of affordable cost of
computer units together with the hiring of personnel. There are several legislative laws and
local ordinances promulgated for the regulation of the operation of the computer shop
industry, i.e. prohibition of establishing of computer shop (gaming) within 100m radius from
schools, penalizing computer shops (gaming) allowing primary and secondary level
students. However, it seems that the computer shop administrators are taken for granted
especially in the rural areas. There is an employee-employer relationship between the
computer shop administrator and his/her employer because the power of control exists
evidently. Other computer shops operate even during the night time which makes their
safety and health fragile. Thus, they should be considered as part of the workforce and be
given equal rights and benefits that the other workforce receives for as the country
embodies the principle of social justice.

The proposed Computer Shops Administrators Act (CSAA) translates into operation
the multi-dimensional provisions of the Labor Code that apply to social legislation. This
would promote and protect the rights of the computer shops administrators.
Therefore, the passage of this bill is earnestly sought.

CLINTON C. CARAMAT

Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1925

Introduced by HON. CLINTON C. CARAMAT

2nd District, Pangasinan

AN ACT
PROMOTING AND PROTECTING THE RIGHTS OF THE COMPUTER SHOP ADMINISTRATORS
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress Assembled:
Section 1. Short Title. - This Act shall be known as the Computer Shop Administrators Act of
2014.
Section 2. The following terms are defined.
a. Computer Shop Administrator - An employed person tasked with the administration
of the computer shops by collecting the computer use fees.

b. Employer - Any person, natural or juridical, domestic or foreign, who carries on in the
Philippines any trade, business, industry, undertaking, or activity of any kind and uses
the services of another person who is under his orders as regards the employment,
except the Government and any of its political subdivisions, branches or
instrumentalities,

including

corporations

owned

or

controlled

by

the

Government: Provided, That a self-employed person shall be both employee and

employer at the same time.
c. Employee - Any person who performs services for an employer in which either or
both mental or physical efforts are used and who receives compensation for such
services, where there is an employer-employee relationship: Provided, That a selfemployed person shall be both employee and employer at the same time.
d. Minimum Wage Rates - Lowest basic wage rates that an employer can pay his
workers, as fixed by the Board, and which shall not be lower than the applicable
statutory minimum wage rates.
e. Regional Tripartite Wages and Productivity Board Governmental Board responsible
for the fixing of the minimum wage rate.
f. Labor Code The law governing employment practices and labor relations in the
Philippines.
g. Social Security System - A system of federally funded services and payments to help
support the needy, the aged, and the temporarily unemployed as well as providing
support for needy, dependent, disabled, or neglected children, rehabilitation for the
disabled, and a host of other social services.
h. Philippine Health Insurance Corporation It was created in 1995 to create a universal
health coverage for the Philippines. It is a tax-exempt, government-owned and
government-controlled corporation (GOCC) of the Philippines, and is attached to the
Department of Health.
i.

PAG-IBIG

An

acronym

which

stands

for Pagtutulungan

sa

Kinabukasan: Ikaw,Bangko, Industria at Gobyerno. In effect, Pag-IBIG harnesses

these four sectors of our society to provide its members with adequate housing
through as effective savings scheme.
Section 3. Declaration of Principles. a. The Government must at all times observe social justice which means the promotion
of the welfare of all the people, the adoption by the Government of measures
calculated to insure economic stability of all the competent elements of society,
through the maintenance of a proper economic and social equilibrium in the
interrelations of the members of the community, constitutionally, through the
adoption of measures legally justifiable, or extra-constitutionally, through the
exercise of powers underlying the existence of all governments on the time-honored
principle of salus populi est suprema lex.
b. Those who have less in life shall have more in law.
Section 4. Application of Minimum Wage Rates. The computer shop administrators must
be compensated based on the minimum wage rates as prescribed by the Regional Tripartite
Wages and Productivity Board.
Section 5 Application of the Labor Code.
a. The computer shop administrators shall be entitled to the night differential and
overtime pay as prescribed by law.
b. They shall also have the benefit of leave pay as prescribed by law.
c. Other benefits should apply to them as prescribed by law.
Section 6. Compulsory Coverage of the Social Security Act as amended by Republic Act 1972.
The employer must enter into the compulsory coverage of the Social Security System the
computer shop administrators who had rendered 6 months service and contribute monthly
correspondingly.

Section 7. Compulsory Coverage of the Philhealth Insurance Corporation. The employer

must enter into the coverage of the Philhealth the computer shop administrators upon
employment and contribute monthly correspondingly.
Section 8. Compulsory Coverage of the Home Development Mutual Fund The employer
must enter into the coverage of the PAG-IBIG the computer shop administrators upon
employment and contribute monthly correspondingly.
Section 9. Separability Clause If for any reason, any provision of this Article is declared
invalid or unconstitutional, the remaining provisions not affected thereby shall continue to
be in full force and effect.
Section 10. Repealing Clause All laws, decrees, executive orders, proclamations, rules and
regulations, and other issuances, or parts thereof, which are inconsistent with the provisions
of this Act are hereby repealed or modified accordingly.
Section 11. Effectivity. This Act shall take effect after fifteen (15) days following its complete
publication in the Official Gazette or in any two (2) newspapers of general circulation.

Approved,