Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

SEVENTEENTH (17TH) CONGRESS
First Regular Session

House Bit! NQ482

Introduced by: Rep. Bernadette Herrera-Dy

“AN ACT ESTABLISHING A LABOR EMPOWERMENT ASSISTANCE
PROGRAM, AMENDING PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES”

EXPLANATORY NOTE

In a survey conducted by the Philippine Statistics Authority, the Philippines has an
employment rate of 94.6 percent as of July 2016, from ages fifteen (15) years old and above. 32
percent of this total percentage are part time workers while .0S percent are working at home. 17.4
percent of the total employed, however, are considered to fall within the underemployed bracket.
The unemployment rate on the other hand was recorded at 5.4 percent or 2.3 million. Across
educational groups, 28.2 percent of the total unemployed were high school graduates, 9.2 percent
were post- secondary graduates, 14.3 percent were college undergraduates, and 22.1 percent were
college graduates.'

Given the aftermath of the government's strict enforcement of anti-contractualization rules
and the rising number of college graduates year on year, many find themselves without jobs and
unable to find work. As a result, most workers accept employment opportunities that do not match
their skills and skill sets. Hence, it is imperative to adopt a matching skills approach that will
provide workers the necessary skills needed in the labor market.?

This bill introduces a matching skills approach to employment. It seeks to provide for a
Labor Empowerment Assistance Program (LEAP) that is linked to TESDA skills training
programs for employees who are in-between jobs. It ensures that financial assistance and training
required to reduce the gap between knowledge in the educational system or previous employment,
on one hand, and the actual demand of skills, on the other, are readily available and accessible to

! htaps/psa.gov.ph/conten/employment-situation-july-2016-fnal-results
2 htpz/iwww3.weforum.org/docvGAC/2014/WEF GAC _Employment_MatchingSkill bourMarket_Repor_2014.pif


interested workers. This approach will provide long term benefits on one’s employability and
adaptability.

This bill builds upon and borrows from Senate Bill No. 208 filed before the Senate of the
Philippines in the 17% Congress.

In view of the foregoing, its immediate passage is earnestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH (17TH) CONGRESS
First Regular Session

House Bit No. 0482

Introduced by: Rep. Bernadette Herrera-Dy

AN ACT ESTABLISHING A LABOR EMPOWERMENT ASSISTANCE

PROGRAM, AMENDING PRESIDENTIAL DECREE NO. 442, AS AMENDED,

OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines, in
Congress assembled:

SECTION 1. Title - This Act shall be known as the “LEAP Act of 2016.”

SECTION 2. LEAP- A new Article 107-A of the Labor Code, as amended, is
hereby introduced to read as follows:

"ARTICLE 107-4 LABOR EMPOWERMENT ASSISTANCE
PROGRAM (LEAP) - WITH CONTRIBUTORY FUNDING FROM THE
REGISTRATION OF CONTRACTORS OR SUBCONTRACTORS, TEN
PERCENT (10%) OF THE GROSS CONTRACT COST LEVY FROM
THE PRINCIPAL EMPLOYER FOR EVERY OUTSOURCING
CONTRACT ENTERED INTO AND BUDGET ALLOCATION FROM
THE GENERAL APPROPRIATIONS ACT (GAA), A LABOR
EMPOWERMENT ASSISTANCE PROGRAM (LEAP) SHALL BE
ESTABLISHED. THE LEAP SHALL:


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(A) SERVE AS A THREE-MONTH BRIDGING PROGRAM FOR
WORKERS IN BETWEEN JOB PERIODS AND IS LINKED TO
TESDA SKILLS TRAINING OR UPGRADING DURING THE
UNEMPLOYMENT PERIOD;

(B) THE AMOUNT OF FINANCIAL SUPPORT SHALL NOT BE
LOWER THAN THE APPROPRIATE MINIMUM WAGE IN
THE FORM OF A MONTHLY CASH CARD OR STORED
VALUE CARD FOR BASIC NECESSITIES LIKE RICE, INFANT
FORMULA, MEDICINE, ELECTRICITY AND WATER
UTILITIES; AND

(C) LABOR ORGANIZATIONS IN THE NATIONAL TRIPARTITE
INDUSTRIAL PEACE COUNCIL (NTIPC) SHALL CO-
ADMINISTER THE DISTRIBUTIONOF THE CARDS AND
MONITORING OF COMPLIANCE BY THEIR BENEFICIARY-
MEMBERS WITH THE REQUIRED TESDA SKILLS
TRAINING OR UPGRADING."

SECTION 3. IMPLEMENTING RULES AND REGULATIONS - The Secretary
of Labor and Employment shall promulgate the necessary implementing rules and regulations
within thirty (30) days from the effectivity of this Act.

SECTION 4. REPEALING CLAUSE - All laws, decrees, rules, and regulations or
parts thereof, which are contrary to or inconsistent with this Act are hereby repealed or
modified accordingly.

SECTION 5. SEPARABILITY PROVISIONS - If any provision of this law or the
application thereof to any person or circumstance, is held invalid, the remainder of this
law, or the application of such provision or part to other persons of circumstances,
shall not be affected thereby.

SECTION 6, EFFECTIVITY CLAUSE - This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in at least two (2) newspapers of general
circulation.