ORDINANCE NO: 2024-580 (Authored by: Honorable Ariel J. Lim, Jr. M.D) "AN ORDINANCE INTEGRATING RESIDENT PERSONS WITH DISABILITIES (PWDs) OF PAGADIAN CITY IN THE WORKFORCE, PROVIDING ADDITIONAL INCENTIVES TO PRIVATE BUSINESS ENTITIES/ EMPLOYERS EMPLOYING RESIDENT PERSONS WITH DISABILITIES (PWDs)" WHEREAS, Section 5 of Republic Act No. 7277, otherwise known as the Magna Carta for Disabled Persons", provides that no disabled person shall be denied access to opportunities for suitable employment. A qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a qualified disabled able-bodied person; WHEREAS, this Social legislation intends to encourage employment of persons with disabilities who are able, capable, qualified and willing to work, by providing incentives to private establishment/employers who will hire them, as well as training programs and skills development that will equip them in the workforce. WHEREAS, in the Philippine economy, private companies and employers are hesitant to hire or to continue the employment of persons with disabilities for fear that they are physically incapable for employment despite being capable to work; WHEREAS, this Ordinance aims to enhance existing incentives provided to Private Business Entities/Employers who employ Persons with Disabilities (PWDS), supplementing those outlined in Republic Act 7277. NOW, THEREFORE, be it ordained by the 14th City Council in session assembled that: Section 1. Title. This - Ordinance Be Known As "An Ordinance Integrating Resident Persons With Disabilities (PWDs) In The Workforce Of Business Entities/Employers Within The Jurisdiction Of Pagadian City And Providing Incentives To Private Business Entities/ Employers Employing Persons With Disabilities (PWDs)." Section 2. Declaration of Policies and Objectives. - It is the declared policy of the State to promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living and improved quality of life. It is further declared that the State shall provide social justice in all phases of national development and that the State values the dignity of every human person and guarantees full respect for human rights. Consistent with the constitutional principles and policies, the Pagadian City Government shall serve the following objectives: To recognize the rights of Persons with Disabilities (PWDs) as provided under the law; To give full support to the improvement of the total well-being of PWDs, and their full participation in society, considering that they are integral part thereof; To motivate and encourage PWDs to contribute to nation building; and To recognize the important role of the private sector in the improvement of the welfare of PWDs and to actively seek their partnership. Section 3. Definition of Terms. - For the purpose of this ordinance, these terms are defined as follows: Person with Disability (PWD) or Disabled Person- shall mean any resident of the city suffering from any restriction or condition, as a result of mental, physical or sensory impairment, to perform an activity in the manner or within the range considered normal for a human being, and duly registered as such under the Persons with Disabilities Affairs Office. Business Entity/Employer- shall mean any person, natural or juridical, lawfully registered with the Pagadian City Government, regularly engaged in trade, service or any other commercial activity as means of livelihood or profit, but not in the exercise or practice of profession. Residents- refer to individuals who have been residing within the city for at least six months and are registered voters, while also possessing a recognized disability as per the guidelines set forth by relevant authorities. Section 4. Prohibition. - 1. It shall be unlawful for any business entities/employers to discriminate and refuse employment of a person with disability by reason of his/her impairment which is not detrimental to the nature of work and position being applied. 2. Business entities/employers are prohibited from coercing or mandating their existing employees with disabilities to register with the Persons with Disability Affairs Office (PDAO) solely for the purpose of the business entities/employers availing incentives. Awards and plaques of recognition shall also be presented to both business Entity/Employer. Moreover, PWD Seal of Employment will be affixed to the business establishments as a testament to their unity and commitment in partnering with Pagadian City's initiative for empowering Persons with Disabilities (PWDs), providing them with employment opportunities and income. This seal signifies full compliance with this Ordinance and dedication to inclusivity and social responsibility. Section 8. Deduction on Business Tax. - In computing the business entity's annual business tax due, it shall be allowed as deduction from its Taxable Gross Sales, equivalent to Fifty Percent (50%)of the total amount paid as salaries and wages for personal services actually rendered by PWDs; Provided, that the qualifications in the subsequent section are complied. Section 9. Qualifications for Deduction of Business Tax. - The deduction from the total Tax due provided under this Ordinance shall be limited to a business entity possessing the following qualifications: It must be employing at least one (1) or more, person with disability; The PWD employed by the business entity must be currently registered in the Persons with Disabilities Affairs Office; The salary or wage of the PWD must be fairly equal to the job rendered, which must not be lower than the minimum wage; and It must submit documents proving the amount of the salary, wage, or compensation paid to the PWD to be determined by the City Treasurer's Office; Section 10. Monitoring and Inspection. - For the protection of the rights of PWDs, the Person with Disability Affairs Office in coordination with Pagadian Employment Service Office (PESO) shall conduct periodic monitoring and inspection as to the work condition of their members in the business entity in order to determine that their rights under labor laws, as well as other pertinent laws, ordinances, and rules and regulations for their well-being are not violated. In case of breach of their rights, it shall assist their members in filing the necessary action or in availing of the proper remedy thereto. Section 11. LGU Offices. - To ensure equal opportunity for employment of PWDs even in Pagadian City Government, at least one percent (1%) of all positions in the Offices of the Local Government Unit (LGU) of Pagadian City shall be reserved for Persons with Disabilities. Section 12. Training Programs and Skills Development for PWDs. - The Persons with Disabilities Affairs Office, in coordination with other local government departments or offices through Community Training and Employment Coordinator (CTEC), as well as related national government agencies, shall assess, design, and conduct manpower trainings and skills development for its members relevant to the current needed services or skills in the business sector, such as but not limited, to computer literacy and vocational skills. The Persons with Disabilities Affairs Office may provide free skills training and seminar to business entities subject to this Ordinance. The budget for the manpower training skills development shall be taken from One (1) percent PWD Fund or from any available fund of the city, and thereafter, shall be included in the succeeding appropriation budget of the office. Section 13. Implementing Offices. - The Persons with Disabilities Affairs Office, Pagadian Employment Services Office (PESO) and the City Treasurer's Office shall be tasked primarily to implement the provisions of this Ordinance. Section 14. Implementing Rules and Regulations and Determination of PWDs Covered by the Ordinance. - Within sixty (60) days from the effectivity of this Ordinance, the City Treasurer's Office shall issue the implementing rules and regulations to efficiently carry out the tax deduction under section 7 of this Ordinance. In consultation with pertinent stakeholders, the Persons with Disabilities Affairs Office and the Pagadian Employment Services Office (PESO) shall also craft an implementing rules and regulations that will identify the conditions or requisites wherein a PWD is allowed to work. Failure to issue the implementing rules and regulations of the mentioned department or office respectively, shall not affect the implementation of this Ordinance. Section 15. Assessment and Review - After two (2) years from the implementation of the tax deduction incentive of this Ordinance under Section 7, the City Treasurer's office shall assess, review, and inform the City Council regarding the enforcement and consequence of this provision. Section 16. Penalties. - Unjustifiable violation of Section 4 of this ordinance shall be meted with the following penalty: A fine of: Three Thousand Pesos (Php3,000.00) - FIRST OFFENSE Four Thousand Pesos (Php4,000.00) - SECOND OFFENSE Five Thousand Pesos (Php5,000.00) - THIRD OFFENSE A penalty of Five Thousand Pesos (Php5,000.00 or imprisonment of One (1) day to One (1) year, or both fine and imprisonment, at the discretion of the court, shall be imposed on any person, owner, president, or manager of a firm or corporation who is found guilty of any act of misrepresentation, deceit, or deception in claiming tax deduction under Section 7 of this Ordinance, regardless of any damage incurred by the Pagadian City Government. The penalty provided herein shall be without any prejudice to other laws ordinances violated in relation thereto. Section 17. Separability Clause. - Should any portion of this ordinance be declared unconstitutional by any court with competent jurisdiction, those that are not so declared shall remain in full force and effect. Section 18. Repealing Clause. - Any and all ordinances, executive orders and/or proclamations of the City of Pagadian or parts thereof which are contrary to or inconsistent herewith, are hereby repealed, amended, and /or modified accordingly. Section 19. Effectivity Clause. - This ordinance shall take effect immediately after its approval and publication in a newspaper of general circulation pursuant to R.A. 7160, otherwise known as the Local Government Code of 1991. ENACTED AND APPROVED by the Sangguniang Panlungsod (14th City Council) during its 88th Regular Session on 04 September 2024 at the SP Session Hall, 4th Floor City Commercial Center (C3), Santiago District, Pagadian City.