Article 101Labor and Agrarian Laws and Social Legislation, p. 101

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

company's total assets, under such terms and conditions

as may be agreed upon by them.n no case shall the

compensation received by the workers at the time the

shares of stocks are distributed be reduced. The same

principle shall be applied to associations, with respect to

their equity or participation.

Corporations or associations which voluntarily divest

a proportion of their capital stock, equity or participation

in favor of their workers or other qualified beneficiaries

under this section shall be deemed to have complied

with the provisions of the Act: provided, that the following

conditions are complied with:

a) In order to safeguard the right of beneficiaries who

own shares of stocks to dividends and other financial

benefits, the books of the corporation or association shall

be

subject

to

periodic

audit

by

certified

public

accountants chosen by the beneficiaries;

b) Irrespective of the value of their equity in the

corporation or association, the beneficiaries shall be

assured of at least one (1) representative in the board of

directors, or in a management or executive committee, if

one exists, of the corporation or association; and

c)

Any

shares

acquired

by

such

workers

and

beneficiaries shall have the same rights and features as

all other shares.

d) Any transfer of shares of stocks by the original

beneficiaries shall be void ab initio unless said transaction

is in favor of a qualified and registered beneficiary within

the same corporation.

If within two (2) years from the approval of this Act,

the land or stock transfer envisioned above is not made or

realized or the plan for such stock distribution approved

by the PARC within the same period, the agricultural land

of the corporate owners or corporation shall be subject to

the compulsory coverage of this Act.

Section 32. Production-Sharing . — Pending final

land transfer, individuals or entities owning, or operating

under lease or management contract, agricultural lands

are hereby mandated to execute a production-sharing

plan

with

their

farm

workers

or

farmworkers'

reorganization, if any, whereby three percent (3%) of the

gross

sales

from

the

production of such lands are

distributed within sixty (60) days of the end of the fiscal

year as compensation to regular and other farmworkers

in such lands over and above the compensation they

currently

receive:

provided, that these individuals or

entities realize gross sales in excess of five million pesos

per annum unless the DAR, upon proper application,

determines a lower ceiling.

In the event that the individual or entity realizes a

profit, an additional ten percent (10%) of the net profit

after tax shall be distributed to said regular and other

farmworkers within ninety (90) days of the end of the

fiscal year.

To forestall any disruption in the normal operation of

lands to be turned over to the farmworker-beneficiaries

mentioned above, a transitory period, the length of which

shall be determined by the DAR, shall be established.

During this transitory period, at least one percent (1%)

of the gross sales of the entity shall be distributed to the

managerial, supervisory and technical group in place at

the time of the effectivity of this Act, as compensation for

such transitory managerial and technical functions as it

will

perform,

pursuant

to

an

agreement

that

the

farmworker-beneficiaries

and

the

managerial,

supervisory and technical group may conclude, subject to

the approval of the DAR.

Section 32-A. Incentives . – Individuals or entities

owning or operating fishponds and prawn farms are

hereby mandated to execute within six (6) months from

the effectivity of this Act an incentive plan with their

regular fishpond or prawn farmworkers or fishpond or

prawn farm workers’ organization, if any, whereby seven

point five percent (7.5%) of their net profit before tax from

the

operation

of

the

fishpond

or

prawn farms are

distributed within sixty (60) days at the end of the fiscal

year as compensation to regular and other pond workers

in such ponds over and above the compensation they

currently receive.

In order to safeguard the right of the regular fishpond

or prawn farm workers under the incentive plan, the

books of the fishpond or prawn farm owners shall be

subject to periodic audit or inspection by certified public

accountants chosen by the workers.

The foregoing provision shall not apply to agricultural

lands

subsequently converted to fishpond or prawn

farms provided the size of the land converted does not

exceed the retention limit of the landowner.

Section 33. Payment of Shares of Cooperative or

Association . — Shares of a cooperative or association

acquired

by

farmers-beneficiaries

or

workers-beneficiaries shall be fully paid for in an amount

corresponding to the valuation as determined in the

immediately succeeding section. The landowner and the

LBP

shall

assist

the

farmers-beneficiaries

and

workers-beneficiaries in the payment for said shares by

providing credit financing.

Section 34. Valuation of Lands . — A valuation

scheme for the land shall be formulated by the PARC,

taking into account the factors enumerated in Section 17,

in addition to the need to stimulate the growth of

cooperatives and the objective of fostering responsible

participation of the workers-beneficiaries in the creation

of wealth.

In the determination of price that is just not only to

the individuals but to society as well, the PARC shall

consult

closely

with

the

landowner

and

the

workers-beneficiaries.

In case of disagreement, the price as determined by

the PARC, if accepted by the workers-beneficiaries, shall

be followed, without prejudice to the landowner's right to

petition the Special Agrarian Court to resolve the issue of

valuation.

CHAPTER IX Support Services

Section 35. Creation of Support Services Office . —

There is hereby created the Office of Support Services

under the DAR to be headed by an Undersecretary.

The

Office

shall

provide

general

support

and

coordinative

services

in

the

implementation

of

the

program particularly in carrying out the provisions of the

following services to farmer-beneficiaries and affected

landowners:

1) Irrigation facilities, especially second crop or dry

season irrigation facilities;

2)

Infrastructure

development

and

public

works

projects

in areas and settlements that come under

agrarian reform, and for this purpose, the preparation of

the

physical

development

plan

of such settlements

providing suitable barangay sites, potable water and

power resources, irrigation systems and other facilities for

a sound agricultural development plan;

3) Government subsidies for the use of irrigation

facilities;

4) Price support and guarantee for all agricultural

produce;

5)

Extending

to

small

landowners,

farmers'

organizations the necessary credit, like concessional and

collateral-free loans, for agro-industrialization based on

social

collaterals

like

the

guarantees

of

farmers'

organization:

6) Promoting, developing and extending financial

assistance

to

small-and

medium-scale

industries

in

agrarian reform areas;

7)

Assigning

sufficient

numbers

of

agricultural

extension workers to farmers' organizations;

8)

Undertake

research,

development

and

dissemination of information on agrarian reform and

low-cost

and

ecologically

sound

farm

inputs

and

technologies to minimize reliance on expensive and

imported agricultural inputs;

9) Development of cooperative management skills

through intensive training;

10) Assistance in the identification of ready markets

for agricultural produce and training in other various

prospects of marketing; andtai

11)

Administration

operation

management

and

funding

of

support

services,

programs

and projects

© Compiled By RGL

101 of 169