Government Takeover of Public Utilities

Owners are entitled to just compensation for property and rights expropriated.
Compensation is determined through court action initiated by the government.
The government’s immediate control does not affect the right to just compensation.
Duration of control is limited to public interest as determined by the President.

Disputes between employers and employees during government control must be submitted to the Court of Industrial Relations if not already submitted.
The Secretary of Labor shall ensure referral of disputes to the court.
The government must pay wages and provide treatment found just by the Court of Industrial Relations during the control period.
Employment during this control is considered public employment for the Act’s purposes.
Strikes or refusal to work by employees during control are unlawful.

Employers with franchises or public convenience certificates refusing or delaying business delivery to the government are guilty of misuse or violation.
Such refusal can lead to ouster from franchise rights via quo warranto action or cancellation of public convenience certificate.

Obstructing or hindering government authority under the Act is punishable by fine up to ₱6,000, imprisonment up to 6 years, or both.
Willful injury, destruction, or interference with government-controlled business properties also attracts these penalties.

Violations of the duty to work during government control can result in fines up to ₱200, imprisonment up to 6 months, or both.
Persons inducing such violations face fines up to ₱1,000, imprisonment up to 1 year, or both.

₱2 million is appropriated from the National Treasury to implement the Act’s purposes.
Funds to be spent at the President’s discretion and released only by Presidential order.