[ Act No. 3959, December 02, 1932 ]
AN ACT MAKING IT OBLIGATORY FOR ANY PERSON, COMPANY, FIRM OR CORPORATION OWNING ANY WORK OF ANY KIND EXECUTED BY CONTRACT TO REQUIRE THE CONTRACTOR TO FURNISH A BOND GUARANTEEING THE PAYMENT OF THE LABORERS, PROVIDING PENALTIES FOR VIOLATION HEREOF, AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in
Legislature assembled and by the authority of the same:
Section 1. Any person, company, firm, or corporation, or any agent or partner thereof, carrying on any construction or other work through a contractor, shall require such contractor to furnish bond in a sum equivalent to the cost of the labor, and shall take care not to pay to such contractor the full amount which he is entitled to receive by virtue of the contract, until he shall have shown that he first paid the wages of the laborers employed in said, work, by means of an affidavit made and subscribed by said contractor before a notary public or other officer authorized by law to administer oaths: Provided, That the bond herein provided for shall be automatically cancelled at the expiration of one year from the completion of the work, unless a claim for the payment of laborer's wages has been filed within said period, in which case said bond shall continue in force and effect until such claim has been paid or otherwise finally settled.
Section 2. Any person, company, firm, or corporation, or any agent or partner thereof, who shall violate the provisions of the preceding section by paying to the contractor the entire cost of the work before receiving the affidavit mentioned in said section, shall be responsible jointly and severally with the contractor for the payment of the wages of the laborers employed in the work covered by the contract. In case the violation is committed by a company or corporation, the liability for the violation of this Act shall devolve upon the agent, director, or manager, or upon the person having charge of the management, direction or administration of the work.
Section 3. Any contractor making a false statement in the affidavit required to be made by him under section one of this Act, shall be guilty of the crime of perjury defined and penalized in article one hundred and eighty-three of Act Numbered Thirty-eight hundred and fifteen, known as the Revised Penal Code.1aшphi1
Section 4. All acts or parts of acts inconsistent with the provisions of this Act are hereby repealed.
Section 5. This Act shall take effect on its approval.
Approved, December 2, 1932.
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