SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
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I\UG 28 
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Senate Bill No. 1386 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
In 1999, Congress passed into law Republic Act No. 8759, otherwise known as 
the Public Employment Service Office Act of 1999, in recognition of the need to 
institutionalize the establishment and operation of a Public Employment Service 
Office (PESO) in all capital towns of provinces, key cities, and other strategic 
areas. 
The following are among those contemplated in the law: (1) that the Department 
of Labor and Employment (DOLE) shall undertake the establishment, operation 
and maintenance of PESOs, upon the request of the LGU, NGO, CBO or SUC; 
(2) that the DOLE shall enter into a Memorandum of Agreement with the 
concerned LGU, NGO, CBO or SUC; and (3) that the budget needed for the full 
implementation of the law shall be provided in the General Appropriations Act 
(GAA) of DOLE. 
Unfortunately, the full budgetary requirement to implement the law was never 
substantiated. The DOLE's annual budget for PESO was only for provision of 
technical assistance, training and supervision. There were no allocation for the 
establishment, operation and maintenance of the PESO office. Because of the 
tight fiscal situation, the PESO Act remains unfunded. 
Considering that the PESO performs the very important task of facilitating the 
access of jobseekers to employment opportunities, it is imperative to establish a 
network of fully enabled Public Employment Service Offices. 
The restrictive 
provisions of the PESO Act of 1999 should therefore be rectified. Thus, these 
proposed amendments. 
The bill aims to establish a labor market information infrastructure at the grass 
roots for a more efficient and effective provision of employment services. It also 
intends to facilitate the meeting of supply and demand for skills thereby reducing 
the transaction cost of information on available skills and jobs. 
In view of the foregoing, appro\lal of this bill is earnestly sought. 
GOY EJERCITO ESTRADA 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
) 
First Regular Session 
) 
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SENATE 
Senate Bill No. 131) {} 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
DEFINING 
THE 
ROLE 
OF 
THE 
DEPARTMENT 
OF 
LABOR 
AND 
EMPLOYMENT (DOLE) AND THE LOCAL GOVERNMENT UNITS (LGUs) IN 
THE ESTABLISHMENT AND OPERATION OF THE PUBLIC EMPLOYMENT 
SERVICE OFFICE (PESO), AND THE OPERATION OF JOB PLACEMENT 
OFFICE IN SUCs AND NGOs, AMENDING FOR THE PURPOSE SECTIONS 3, 
6,7, AND 9 OF REPUBLIC ACT NI. 8759, OTHERWISE KNOWN AS PUBLIC 
EMPLOYMENT SERVICE OFFICE ACT OF 1999 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
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SECTION 1. Section 3 of Republic Act No. 8759, otherwise known as the "Public 
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Employment Service Office Act of 1999", is hereby amended to read as follows: 
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"SECTION 3. 
Establishment of the Public Employment Service 
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Office. - To carry out the above-declared policy, there shall be 
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established in all [capital towns of] provinces, [key] cities, and [other 
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strategic areas] MUNICIPALITIES a Public Employment Service 
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Office, hereinafter referred to as "PESO", which shall be 
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[community-based and] OPERATED AND maintained [largely] by 
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local government units (LGUs). [and a number of non-governmental 
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organizations (NGOs) and state universities and colleges (SUCs)]. 
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The PESO shall be linked to the regional offices of the Department 
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of Labor and Employment (DOLE) for coordination and technical 
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supervision, and to the DOLE central office, to constitute the 
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national PUBLIC employment service network. 
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"UPON THE REQUEST OF THE NGO OR SUC, THE DOLE MAY 
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ENTER INTO A MEMORANDUM OF AGREEMENT FOR THE 
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FORMER TO ESTABLISH, OPERATE AND MAINTAIN A JOB 
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PLACEMENT OFFICE. 
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"TO 
HARMONIZE 
THE. PROVISION 
OF 
EMPLOYMENT 
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SERVICES IN A GIVEN TERRITORIAL JURISDICTION, THE JOB 
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PLACEMENT OFFICE AT THE _ NGO AND 
SUC -SHALL 
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COORDINATE THEIR ACTIVITIES WITH THE NEAREST PESO." 
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SEC. 2. Section 6 of the same law is hereby amended to read as follows: 
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"SECTION 6. Other Services of the PESO. - In addition to the 
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functions enumerated in the preceding section, every PESO shall 
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[also] undertake [the following] STRATEGIES, programs and 
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activities [:] TO MAKE THE PROVISION OF EMPLOYMENT 
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SERVICES EFFECTIVE AND EFFICIENT. 
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"[(a) x x x; 
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(b) x x x; 
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(c) x x x; 
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(d) x x x; 
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(e) x x x; 
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(f) x x x; 
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(g) x x x.J" 
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SEC. 3. Section 7 of the same law is hereby amended to read as follows: 
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"SECTION 7. Role of DOLE [,) and LGUS [s, NGOs, CBOs, and 
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SUCs]. - [Upon the request of the LGUs, NGOs, CBOs, SUCs 
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which do not have existing PESOs shall be undertaken by the 
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DOLE. The DOLE shall enter into memoranda of agreements with 
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the concerned LGUs, NGOs, CBOs, SUCs for the establishment, 
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operation and maintenance of PESOs in their respective areas of 
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jurisdiction and the institutionalization of existing PESOs.] 
THE 
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DOLE AND THE LGU SHALL JOINTLY ESTABLISH THE PESO. 
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"It shall be the responsibility of the DOLE to: 
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(a) 
PROVIDE TECHNICAL SUPERVISION, COORDINATION 
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AND CAPACITY BUILDING TO THE PESO; 
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(b) 
Establish and maintain a computerized [national manpower] 
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HUMAN RESOURCE AND JOB registr[y]IES [of skills and 
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employment and business opportunities] to facilitate the 
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provision and packaging of employment assistance to 
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PESO clients and [the] TO set[ting-] up [of] intra- and inter-
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regional job clearance system as part of the overall 
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employment service network; 
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[(b) 
x x x; 
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(c) 
xxx;] 
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([d] c) Provide technical assistance and allied support ServiceS to 
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the PESO I;], INCLUDING, BUT NOT LIMITED TO, 
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TRAINING OF PESO PERSONNEL IN THE VARIOUS 
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ASPECTS 
OF 
EMPLOYMENT 
FACILITATION 
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FUNCTIONS; 
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([e] d) [Train 
PESO 
personnel in 
the various aspects of 
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employment facilitation functions] SET STANDARDS FOR 
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THE ESTABLISHMENT AND OPERATION OF THE PESO 
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OFFICE, AND QUALIFICATION STANDARDS FOR THE 
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PESO PERSONNEL; 
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([f] e) 
Extend [/facilitate such] other packages of employment 
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services [to the provisions of employment assistance] to 
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[clients of] the LGU, NGO, or SUC concerned. including the 
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conduct of job fairs, CAREER ADVISE, ETC. [and other 
activities); and, 
([g) f) 
[Undertake) 
[m)Monitor, 
assess 
and 
evaluate 
the 
PERFORMANCE OF THE PESO NETWORK, INCLUDING 
THE JOB PLACEMENT OFFICES AT THE SUC AND NGO 
[the PESO program implementation]. 
"[For their part, the LGUs, NGOs, CBOs, or SUCs shall extend the 
following assistance and services as may be necessary in the 
promotion of employment within their respective areas of 
jurisdiction.) FOR THEIR PART, PERSONS WHO ARE SEEKING 
EMPLOYMENT, PARTICULARLY THE UNEMPLOYED, SHALL 
REGISTER AT THE PESO FOR EMPLOYMENT FACILITATION 
ASSISTANCE. THE ESTABLISHMENTS, ON THE OTHER HAND, 
SHALL SUBMIT THEIR JOB VACANCIES AS WELL AS 
APPLICANTS HIRED TO THE PESO TO ENSURE THE 
AVAILABILITY OF ACCURATE INFORMATION ON SUPPLY AND 
DEMAND FOR SKILLS IN THE LABOR MARKET. 
"IT SHALL BE THE RESPONSIBILITY OF THE CONCERNED 
LGU TO: 
(A) 
OPERATE AND MAINTAIN THE PESO; 
(B) 
ENSURE 
COMPLIANCE 
WITH 
THE 
OPERATIONAL 
STANDARDS SET BY.T:HE DOLE; 
(C) 
EXTEND SUCH ASSISTANCE AND SERVICES AS MAY 
BE NECESSARY IN THE PROMOTION OF EMPLOYMENT 
WITHIN THE AREA OF JURISDICTION; AND, 
, 
, 
(D) 
SUBMIT TO THE DOLE PERIODIC PERFORMANCE I 
ACCOMPLISHMENT REPORTS." 
SEC. 4. Section 9 of the same law shall be amended to read as follows: 
"SECTION 9. 
Funding. - [The amount necessary for the initial 
implementation of this Act shall be charged against the existing 
appropriation of the DOLE and its operating agencies. Thereafter, 
the amount needed for the full implementation of this Act shall be 
included in the budget of the DOLE in the succeeding General 
Appropriations Act.] 
"THE ANNUAL BUDGETARY REQUIREMENTS OF ITS PESO 
SHALL 
BE 
INCLUDED 
IN 
THE 
ANNUAL 
BUDGETARY 
APPROPRIATION OF THE LGU. THE SUC AND NGO SHALL 
PROVIDE THE RESOURCES FOR THE OPERATION OF THEIR 
JOB PLACEMENT OFFICES. 
"FUNDS FOR THE PROVISION OF TECHNICAL ASSISTANCE, 
TRAINING AND SUPERVISION OF THE PESO SHALL BE 
INCLUDED IN THE BUDGET OF THE DOLE IN THE GENERAL 
APPROPRIATIONS ACT." 
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SEC. 5. Implementing Rules and Regulations. - The Secretary of Labor and 
2 
Employment shall issue the necessary rules and regulations for the effective 
3 
implementation of this Act within ninety (90) days after its effectivity. 
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SEC. 6. Repealing Clause. - All laws, decrees, executive orders, proclamations, 
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rules and regulations or any part thereof, which are inconsistent with the 
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provisions of this Act, are hereby deemed repealed or modified accordingly. 
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SEC. 7. Separability Clause. - If for any reason, any section or provision of this 
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Act or any part thereof, or the application of such section, provision or portion is 
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declared invalid or unconstitutional, the remainder thereof shall not be affected 
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by such declaration. 
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SEC. 8. Effectivity. - This Act shall take effect after fifteen (15) days from the 
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date of its publication in the Official Gazette or in at least two (2) newspapers of 
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general circulation. 
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Approved, 
4