When is a Law “Prospective” and When is It “Retroactive”?

The prospectivity and retroactivity of laws are important concepts in the operation of law.

First, let us define the terms.

A thing is prospective if it is expected to happen in the future. Meanwhile, a thing

is retroactive if it takes effect from a date in the past.

Now, let us look at what the law says about prospectivity and retroactivity.

“Laws shall have no retroactive effect, unless the contrary is provided.”Art. 4, Civil Code.

Thus, a law is prospective at all times. Laws always take effect after they have been enacted
and published. A law may only be retroactive if such retroactive effect is expressly provided for
in the law.

Example:

Law A provides that it shall take effect after 15 days following its publication on Aug. 5, 2010.
The law takes effect on Aug. 20, 2010 and will continue to take effect thereafter until it is
repealed or struck down. Law A is prospective.

Law B provides that it shall take effect after 20 days following its publication on Dec. 3, 2012,
and that it shall have retroactive effect. The law takes effect on Dec. 23, 2012 and will continue
to take effect thereafter, but the law shall also be applied to things and events that have
happened in the past—prior to Dec. 23, 2012. Law B is both prospective and retroactive, but its
retroactivity only comes into operation upon the effectivity of the law itself, which is Dec. 23,
2012.

There are other exceptions to the rule that laws shall have no retroactive effect. The following
laws have retroactive effect even if retroactivity is not expressly provided for in the law.

When the law is a penal statute and that it favors the accused who is not a habitual criminal,
even though at the time of the law’s enactment, final sentence has already been rendered. (See
Art. 22, Revised Penal Code.)

When the law is procedural and that it does not affect or change vested rights.

When the law creates new substantive rights.

When the law’s purpose is to cure defects in judicial or administrative proceedings.

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