HAZARD PAY: REQUIRED ADDITIONAL INSURANCE FOR CONSTRUCTION

WORKERS

Section 1
Name of the Policy
This shall be known as the Republic Act 19827 or Hazard Pay Act of 2019.

Section 2
Policy Framework
It is hereby declared by the State to give additional insurance to workers who works under risky
and dangerous conditions. This policy is created to provide workers a compensation for the risk
they take and promote prevention policy on the part of the management. Government doesn’t
require construction industry to give hazard pay to their workers, however, there are some
employers who offer hazard pay to ensure the benefits received by the workers in doing hazardous
works, but this act requires the employers to give hazard pay to their employees.
This act could help the construction workers to have additional pay in case of emergencies that
could happen in the workplace. Construction workers is physically demanding, they work in high
areas, lifting heavy materials and operate dangerous machines which means that those kind of
work are more risky compared to other jobs. They usually get injuries such as bruises, cuts and
most of the time, their work has been life-threatening for them but with this act, workers shall
receive a pay for doing dangerous works.

Section 3
Definition of Terms
a) Construction Industry - shall mean the branch of manufacture and trade based on building,
maintaining and repairing infrastructures.
b) Construction Workers - shall mean a laborer or a professional who is legally employed in
building infrastructures.
c) Dangerous - shall mean able or likely to cause harm or injury.
d) Dissolution - shall mean the closing down or dismissal of a certain subject.
e) Hazard - shall mean a danger or a risk.
f) Hazard Pay - shall mean payment for working under dangerous conditions.
g) Insurance - shall mean a thing providing protection against a possible eventuality or accident.
h) Legally Employed - shall mean a person who agrees to a contract with an another party to
perform a job, service or task.
i) Risky - shall mean full of the possibility of danger, failure or loss.
j) Unsatisfactory Effects - shall mean an unacceptable or disagreeable outcomes.
 Section 4
General Policies
a) The new act shall apply to all legally employed construction workers in the Philippines.
b) This policy shall be obeyed and complied by the construction industry.

Section 5
Duration
The Hazard pay Act of 2019 aims to have additional insurance for all the legally employed
construction workers in the Philippines. The implementation of this act will start after its enactment
which has been signed by the President of the Philippines Rodrigo Duterte.
The duration of this act will depend upon its effectivity. If this act provides nothing but good
effects to the employees and employers in the construction industry, this policy will be
implemented, yet it will be stopped when it starts to give unsatisfactory effects.

Section 6
Responsibilities
A. Compliance, Monitoring, and Management
i. Compliance
 Department of Labor and Employment (DOLE) shall overlook and
check if all construction industry are complying with the rules and
regulation about additional insurance for construction workers set
herein by the government.
 Construction industry should comply with the new Hazard Pay Act as it
has been published and implemented
ii. Monitoring
 DOLE shall administer the implementation of the policy to secure that
all construction industry are following the rules. This is to determine if
the policy implemented is effective.
 DOLE will monitor Construction industry to check if they are
complying with Hazard Pay Act set by the government. In case of
violations of guidelines, penalties maybe imposed to a person,
corporation, firm, partnership, association, or entity that refuses or fails
to pay their employees additional insurance for construction workers.
This construction industry shall be punished by a fine:

1st Offense – P100,000.00

2nd Offense – P200,000.00
3rd Offense – P500,000.00 and permanent dissolution of the industry
  Under the new Department order, the inspection framework also
encourages Construction Industry to voluntarily report employees that
they have for the month and compliance of any DOLE mandatory
requirements that they have to comply as business establishments.
iii. Management
 Construction Industry shall supervise the formulation, adoption, and
implementation of this policy in their companies. Management are
accountable when implementation of this policy is unobserved and
silent.

B. Reporting
This policy aims to encourage laborers to work productively.

This has numerous positive effects not just for the employees but as well it could
benefit the employers.

a) This policy will lessen the worries of the workers with regards to the
expenses they may incur if something dangerous happens to them.
b) This will encourage workers to work for construction industry because
they will be receiving proper hazard pay and will cover the lack of
construction workers.
c) This will increase the productivity level of the workers because they get
an additional pay for their works.

Section 7
Specific Policies
a) Construction Industry should give 5% to 15% Hazard Pay depending on the salary grade
of the construction workers.
b) Construction workers have the choice whether to redeem the Hazard Pay or save it for the
future use.