Presidential decree 451

Presidential Decree 451AUTHORIZING THE SECRETARY OF

EDUCATION AND CULTURE TO REGULATE THE IMPOSITION OF TUITION AND OTHER SCHOOL

FEES, REPEALING REPUBLIC ACT NO. 6139, AND FOR OTHER PURPOSES

Report on Educational Legislation

by:

MR. OMAR M. JACALNE

RULE IPolicy and Scope

O Section 1. Scope. The rules

and regulations herein

prescribed shall apply to all

private schools, colleges and

universities duly authorized or

recognized by the Government.

O Section 2. Authority to Regulate. TheSecretary of Education and Culture has theauthority to regulate any increase or changein the rate of tuition and/or other school feesor charges collected from pupils or studentsand/or their parents by all private schools,colleges and universities.

O Any increase or change including new fees inprivate schools, colleges, and universitiesshall not be effective without the priorapproval of the Secretary of Education andCulture.

O Section 3. Purpose of Increase. As a generalrule, the purpose or purposes for which anyincrease or change in the current rates oftuition and/or other school fees or charges ofprivate schools, colleges and universities shallbe to upgrade and update classroominstruction by improving their facilities andhiring competent teachers in all levels ofeducation, provide salary and/or wageincrease and other benefits to theirteaching, administrative and other personnelto keep up with the increasing cost ofliving, and to grant student assistance andestablish extension services.

O Section 4. Effectivity of Increase.

Unless otherwise provided, the

effectivity of each approval of an

application for increase or change in

tuition and/or other school fees or

charges, including new fees or

charges, shall be specified and

indicated on the action taken by the

Secretary of Education and Culture.

RULE IIDefinition of Terms

O Section 1. Unless otherwise specifically

defined the following terms shall be

understood thus

O a) Tuition fee covers the school charges

for the subjects or course enrolled in by a

pupil or student, as indicated in the

respective prospectuses, colleges and

universities, which may either be on a

term or yearly basis or per unit or units.

O b) Other school fees includes all

miscellaneous fees charged to be charged

by private schools, colleges and

universities as embodied in their

respective prospectuses, bulletins of

information, or catalogues, which are

collected and earmarked for certain

specified purposes pursuant to existing

laws, rules and regulations.

RULE IIDefinition of Terms

O c) Current school fees means the

tuition and other school fees

collected or charged by private

schools, colleges and universities

as approved, indicated and

published in their respective

prospectuses, bulletins of

information, or catalogues.

Od) Increase in fees means

any addition in the amount

of the current tuition and/or

other school fees as defined

in subsections (a), (b), and

(c) herein.

Oe) New fee or charge

means those which are

imposed by new schools or

by existing schools which

are not included in their

public bulletin or catalogue.

RULE IIIApplication

O Section 1. Period of Filing. For the

school year 1974-75, each

application for increase in tuition

and/or other school fees or

charges, including new fees or

charges, together with all necessary

supporting documents, shall be filed

directly by mail or personal delivery

to the Director of Private Schools in

Manila.

O Section 2. Contents. The application referredto in the preceding section shall indicate,among others, (a) the purpose and jurisdictionfor the proposed increase in tuition and/orother school fees or other charges, (b) theitemized current rates of tuition fee or otherschool charges, (c) the correspondingproposed percentage increase, (d) the revisedrates to be imposed or collected, (e) theproposed allocation and program of expensesto be effected if the petition is approved, and(f) the effectivity in point of school year on aterm at which time the new rates shall beimplemented.

O Section 3. Notices. Application

for increase in tuition fee and/or

other school charges, or for

new fees or charges, shall be

announced by the school

administration.

RULE IIIApplication

O Section 4. Oath and Other Requirements. Theapplication shall be signed by the school head,under oath, and shall include as annexes (a) copyof the financial statement showing the financialstatus of the school, college or university, dulycertified correct by a licensed Certified PublicAccountant; and (b) copy of the latest tax returnsfiled by the school, college or university with theBureau of Internal Revenue, or in the negative,and lieu of the required tax returns, acorresponding statement relative thereto by theschool head or his duly authorized representative;and (c) a certification by the school head to theeffect that the application for increase has beenannounced.

RULE IIIApplication

RULE IVAction on Application

O Section 1. Delegation of Authority. The

Director of Private Schools is hereby

authorized to process and evaluate all

applications for increase in tuition fee

and/or other charges, including new

school fees or charges, and to submit

corresponding recommendations thereon

to the Secretary of Education and Culture

for appropriate action.

RULE VDisposition of Proceeds from Increase

O Section 1. Emoluments. At least sixty (60) per centof the total incremental proceeds from the increasein tuition fee and/or other school charges shall beapplied toward an equitable increase in theemoluments and/or benefits for members of thefaculty, including the staff and administrativeemployees of the school, college or universityconcerned, a maximum of twelve (12%) per centfor return on investments, and the rest or twenty-eight (28%) per cent for institutionaldevelopment, including the emergency allowancecalled for under LOI No. 174, are deemedembraced in the emoluments and/or other benefitsfor members of the faculty and staff.

O Section 2. Percentage of Increase.

The rate of increase in tuition and/or

other school fees or charges shall in

no case exceed fifteen (15%) per

centum of the current school fees in

the school, college, or university

concerned during the next

preceding school year.

O Section 3. Scholarships. As a condition precedent forthe grant of any increase in tuition and/or otherschool fees or charges, each school, college oruniversity is required to provide free scholarships topoor but deserving pupils or students at the ratio ofone (1) free scholarship for every five hundred (500)pupils/students enrolled: Provided, however, That thefree scholarships herein called for shall be exclusiveor in addition to any existing privileges internallygranted by private schools, colleges and universitiesto class valedictorians, salutatorians, and otherpupils/students who have achieved scholasticdistinctions as well as other forms or kinds ofscholarships such as those granted toathletes, working students, and other beneficiaries.

O Section 4. Review of Financial

Statements. The Secretary of Education and

Culture, whenever he deems fit and

necessary for verification purposes, may

authorize and/or request a representative of

the Commission on Audit, through its

Chairman, to review the financial statements

submitted pursuant to Section 2 of Rule III

hereof, and to examine the pertinent books

and records of the school, college or

university concerned.

RULE VIMiscellaneous

O Section 1. Prohibitions. No school administrationshall sponsor or hold any benefit performances,movies, concerts, dramatic presentations, gamesand/or shows of whatever kind or nature whetherfor charity or otherwise. Any such act on the part ofthe school administration shall be considered acircumvention of Presidential Decree No. 451 andshall accordingly be taken as sufficient cause forthe cancellation of the latest approval of theincrease in tuition and/or other school fees orcharges of the school, college or universityconcerned granted by the Secretary of Educationand Culture, if any, or a valid ground for the denialor disapproval of its application if one is pendingconsideration.

O Section 2. Penal Provision. Pursuant to Section 8of Presidential Decree No. 451, any violation of thelaw or any provisions of these Implementing Rulesand Regulations, or any final decision made by theSecretary of Education and Culture shall bepunishable by a fine of Five thousand pesos(5,000.00) or imprisonment of two (2) years or bothat the discretion of the court, which penalty shallbe imposed on the official(s) of the private schoolor any person acting for and in behalf of the schooldirectly responsible for the violation. If the violatorbe a public official the same penalty shall beimposed without prejudice to any administrativeaction that may be taken against him.

O Section 3. Repealed Clause. All existing rules and regulations inconsistent with the present Implementing Rules and Regulations are repealed, cancelled, revoked, or modified accordingly.

O Section 4. Effectivity. These implementing rules and regulations shall be effective immediately.

O Manila Philippines, May 13, 1974.

Republic Act 7641AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL

DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, BY PROVIDING FOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR

EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE ESTABLISHMENT

O Report on Educational

Legislation by:

O MR. OMAR M. JACALNE

SECTION 1.

O Article 287 of Presidential Decree No.442, as amended, otherwise known as theLabor Code of the Philippines, is herebyamended to read as follows:

O “Art. 287. Retirement. — Any employeemay be retired upon reaching theretirement age established in thecollective bargaining agreement or otherapplicable employment contract.

SECTION 1.

O “In case of retirement, the employee shallbe entitled to receive such retirementbenefits as he may have earned underexisting laws and any collectivebargaining agreement and otheragreements: Provided, however, That anemployee’s retirement benefits under anycollective bargaining and otheragreements shall not be less than thoseprovided herein.

SECTION 1.

O “In the absence of a retirement plan or agreementproviding for retirement benefits of employees inthe establishment, an employee upon reaching theage of sixty (60) years or more, but not beyondsixty-five (65) years which is hereby declared thecompulsory retirement age, who has served atleast five (5) years in the said establishment, mayretire and shall be entitled to retirement payequivalent to at least one-half (1/2) month salaryfor every year of service, a fraction of at least six(6) months being considered as one whole year.

SECTION 1.

O “Unless the parties provide for

broader inclusions, the term one-

half (1/2) month salary shall mean

fifteen (15) days plus one-twelfth

(1/12) of the 13th month pay and

the cash equivalent of not more

than five (5) days of service

incentive leaves.

SECTION 1.

O “Retail, service and agricultural

establishments or operations employing

not more than (10) employees or workers

are exempted from the coverage of this

provision. chanroblespublishingcompany

O “Violation of this provision is hereby

declared unlawful and subject to the penal

provisions provided under Article 288 of

this Code.” chanroblespublishingcompany

O Nothing in this Act shall deprive

any employee of benefits to

which he may be entitled under

existing laws or company

policies or practices.

SECTION 2.

SECTION 3.

O This Act shall take effect fifteen (15)

days after its complete publication

in the Official Gazette or in at least

two (2) national newspapers of

general circulation, whichever

comes earlier.

O Approved: December 9, 1992

RULES IMPLEMENTING THE NEW RETIREMENT LAW

(April 1, 1993)

O Pursuant to the provisions of

Article 287 of the Labor Code as

amended by Republic Act No.

7641, in relation to Article 5 of the

same Code, RULE II of Book VI of

the Rules Implementing the Labor

Code is hereby issued, the full

text of which shall read as

follows:

RULE II Retirement Benefits

O SECTION 1. General Statement onCoverage. — This Rule shall apply to allemployees in the private sector,regardless of their position, designation orstatus and irrespective of the method bywhich their wages are paid, except tothose specifically exempted under Section2 hereof. As used herein, the term “Act”shall refer to Republic Act No. 7641 whichtook effect on January 7, 1993.


O 2.1 Employees of the National Government

and its political subdivisions, including

Government-owned and/or controlled

corporations, if they are covered by the Civil

Service Law and its regulations.

chanroblespublishingcompany

O 2.2 Domestic helpers and persons in the

personal service of another. (Deleted by

Department Order No. 20 issued by Secretary

Ma. Nieves R. Confessor on May 31, 1994.)


O 2.3 Employees of retail, service andagricultural establishment or operationsregularly employing not more than ten(10) employees. As used in this sub-section;

O (a) “Retail establishment” is oneprincipally engaged in the sale of goods toend-users for personal or household use.It shall lose its retail character qualified forexemption if it is engaged in both retailand wholesale sale of goods.


O (b) “Service establishment” is one principally engaged in thesale of service to individuals for their own or household useand is generally recognized as such.

O (c) “Agricultural establishment/operations” refers to anemployer which is engaged in “agriculture”. This termsrefers to all farming activities in all its branches andincludes among others, the cultivation and tillage of thesoil, production, cultivation, growing and harvesting of anyagricultural or horticultural commodities, dairying, raising oflivestock or poultry, the culture of fish and other aquaticproducts in farms or ponds, and any activities performed bya farmer or on a farm as incident to or in conjunction withsuch farming operations, but does not include themanufacture and/or processing ofsugar, coconut, abaca, tobacco, pineapple, aquatic or otherfarm products.


O SECTION 3. Retirement under

CBA/contract.

O 3.1 Any employee may retire or be retired

by his employer upon reaching the

retirement age established in the

collective bargaining agreement or other

applicable employment contract or

retirement plan subject to the provisions of

Section 5 hereof on the payment of

retirement benefits.


O 3.2 In case of retirement under this Section, theemployee shall be entitled to receive suchretirement benefits as he may have earned underexisting laws and any collective bargainingagreement and other agreements;provided, however, that an employee’s retirementbenefits under any collective bargaining and otheragreements shall not be less than those providedunder this Rule, and provided further that if suchbenefits are less, the employer shall pay thedifference between the amount due the employeeunder this Rule and that provided under thecollective or individual agreement or retirementplan.


O 3.3 Where both the employer and theemployee contribute to a retirement fund inaccordance with an individual or collectiveagreement or other applicable employmentcontract, the employer’s total contributionthereto shall not be less than the totalretirement benefits to which the employeewould have been entitled had there been nosuch retirement fund. In case the employer’scontribution is less than the retirementbenefits provided under this Rule, theemployer shall pay the deficiency.


O SECTION 4. Optional; Compulsory Retirement.

O 4.1 Optional Retirement. — In the absence of a retirement plan or other applicable agreement providing for retirement benefits of employees in an establishment, an employee may retire upon reaching the age of sixty (60) years or more if he has served for at least five (5) years in said establishment.

O 4.2 Compulsory Retirement. — Where there is no such plan or agreement referred to in the immediately preceding sub-section, an employee shall be retired upon reaching the age of sixty-five (65) years.


O 4.3 Upon retirement of an employee, whetheroptional or compulsory, his services may becontinued or extended on a case to casebasis upon agreement of the employer andemployee.

O 4.4 Service Requirement. — The minimumlength of service in an establishment or withan employer of at least five (5) years requiredfor entitlement to retirement pay shall includeauthorized absences and vacations, regularholidays and mandatory fulfillment of a militaryor civic duty.


O 5.1 In the absence of an applicableagreement or retirement plan, an employeewho retires pursuant to the Act shall beentitled to retirement pay equivalent to at leastone-half (½) month salary for every year ofservice, a fraction of at least six (6) monthsbeing considered as one whole year.

O 5.2 Components of One-half (½) MonthSalary. — For the purpose of determining theminimum retirement pay due an employeeunder this Rule, the term “one-half monthsalary” shall include all of the following:


O (a) Fifteen (15) days salary of the employee basedon his latest salary rate. As used herein, the term“salary” includes all remunerations paid by anemployer to his employees for services renderedduring normal working days and hours, whether suchpayments are fixed or ascertained on a time, task,piece of commission basis, or other method ofcalculating the same, and includes the fair andreasonable value, as determined by the Secretary ofLabor and Employment, of food, lodging or otherfacilities customarily furnished by the employer to hisemployees. The term does not include cost of livingallowances, profit-sharing payments and othermonetary benefits which are not considered as partof or integrated into the regular salary of theemployees.


O (b) The cash equivalent of not more than

five (5) days of service incentive leave;

O (c) One-twelfth of the 13th month pay due

the employee.

O (d) All other benefits that the employer

and employee may agree upon that

should be included in the computation of

the employee’s retirement pay.


O 5.3 One-half month salary of employees who are paid by results. — For covered workers who are paid by results and do not have a fixed monthly rate, the basis for determination of the salary for fifteen days shall be their average daily salary (ADS), subject to the provisions of Rule VII-A, Book III of the Rules Implementing the Labor Code on the payment of wages of workers who are paid by results. The ADS is the average salary for the last twelve (12) months reckoned from the date of their retirement, divided by the number of actual working days in that particular period.


O SECTION 6. Exemption from tax. — The retirement pay provided in the Act may be exempted from tax if the requirements set by the Bureau of Internal Revenue under Sec. 2 (b) item (1) of Revenue Regulations No. 12-86 dated August 1, 1986 are met, to wit:

O Pensions, retirement and separation pay. —Pensions, retirement and separation pay constitute compensation subject to withholding, except the following:

O (1) Retirement benefits received by officials and employees of private firms under a reasonable private benefit plan maintained by the employer, if the following requirements are met:


O (i) The benefit plan must be approved by the

Bureau of Internal Revenue;

O (ii) The retiring official or employee must have

been in the service of the same employer for

at least ten (10) years and is not less than fifty

(50) years of age at the time of retirement;

and

O (iii) The retiring official or employee shall not

have previously availed of the privilege under

the retirement benefit plan of the same or

another employer.


O SECTION 7. Penal Provision. — It shall be unlawfulfor any person or entity to circumvent or renderineffective the provisions of the Act. Violations thereofshall be subject to the penal provisions providedunder Article 288 of the Labor Code of thePhilippines.

O SECTION 8. Relation to agreements and regulations.— Nothing in this Rule shall justify an employer fromwithdrawing or reducing any benefits, supplements orpayments as provided in existing laws, individual orcollective agreements or employment practices orpolicies.

O All rules and regulations, policy issuances or orderscontrary to or inconsistent with these rules arehereby repealed or modified accordingly.


O SECTION 9. Effectivity. — This Rule took

effect on January 7, 1993 when the Act

went into force.

Quotes

“Power politics is the diplomatic name for the law of the jungle.”

Ely Culbertson (1891 - 1955)

U.S. bridge player.

“Does capital punishment tend to the security of the people? By no means. It hardens the hearts of men, and makes the loss of life appear light to them; and it renders life insecure, inasmuch as the law holds out

that property is of greater value than life.”Elizabeth Fry (1780 - 1845)

British prison reformer

“The End”

“Fin”

Documents

Presidential decree 451