Republic of the Philippines RECEIVED
HOUSE OF REPRESENTATIVE!

Quezon City

SEVENTEENTH CONGRESS
First Regular Session

REGISTRATION UNIT

H.B. No. 57 3 |_BULLS AND INDEX SERVICE

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO

EXPLANATORY NOTE

The October 2014 Philippine Statistics Authority's Labor Force Survey reports that
there are 1.23 million unemployed youth or 14.2% of the total labor force without a job. The
alarming figure is more than twice the national adult unemployment rate of 6.8%. This
validates the Asian Development Bank (ADB) 2009 survey which concludes that youth in
the Philippines experience a slow school-to-work transition. The survey reveals that, on
average a college graduate finds a permanent job after two (2) years while for a high school
graduate, it takes four (4) years. The job search period is even longer for youth who drop
Out of school. Of those high school graduates that find a job, less than half of them find work
in the formal wage sector.

Moreover, the ADB survey identified a set of risk factors that affected youth school-
to-work transition. Main risk factors included: (i) the low level of educational attainment (e.g.,
high school graduate only and high school dropouts), (ii) family income status, with youth
from low income families having the most difficulty in the school-to-work transition because
such families tend to have a lack of quality social networks, children tend to have insufficient
life skills and job search skills necessary to successfully land a good job, and (iii) age and
gender, such that young women are more at risk of not being in employment, education and
training compared to young men.

In May 2014, with funding support from the Government of Canada and technical
assistance from the ADB, a project coined as “JobStart Philippines Program” was launched
by the Department of Labor and Employment (DOLE) in four (4) localities i.e., General
Trias, Cavite; San Fernando, Pampanga; Taguig City, and Quezon City. JobStart is
designed as a remedial program with the objective of assisting at-risk youth in improving
their school-to-work transition and to increase their chances of integrating into productive
employment. The pilot phase tested approaches and strategies that provide youth with
enhanced career guidance services, life skills, and technical training with work experience
at the establishment or company level. The pilot project included 3,200 program
beneficiaries and the development of a model full-cycle employment facilitation services at
the local level, benchmarking good practices from Kenya, Chile and the United States.

This bill aims to cascade the success of the JobStart program on a national scale
and institutionalize it. Given adequate resources and support of the private sector, the
implementation of this proposed policy measure will cover at least 70,000 JobStart program
beneficiaries by 2020. The training and exposure in an actual work place will make the
jobseeker ready to assume the job and more responsive to industry skills requirement.
Further, Public Employment Service Offices (PESOs) will be able to offer an enhanced
employment facilitation services and an improved local labor market information system.

Given the country’s employment thrust to address the job-skills mismatch and
facilitate the smooth transition of graduates and trainees to the work force, it is deemed
imperative to institute reforms to modernize the PESOs and implement a nationwide youth

HOUSE OF REPRESENTATIVES



employment program that enhances the employability of jobseekers and assists their
integration in the labor force.

In view of the foregoing, the passage of this bill is earnestly sought.

oalldtton blberanso

Representative
Lone District, Province of Aurora


SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

H. B. No. 573

Introduced by HONORABLE BELLAFLOR J. ANGARA-CASTILLO-

AN ACT INSTITUTIONALIZING THE NATIONWIDE IMPLEMENTATION OF
JOBSTART PHILIPPINES PROGRAM, PROVIDING FUNDS THERETO,
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 “JobStart Act of 2015.”

SEC. 2. Declaration of Policy. — It is the policy of the State to promote full employment
and equality of employment opportunities for all. The Philippines subscribes to the
International Labor Organization's (ILO) Decent Work Agenda. As a signatory to ILO
Convention 88, the State promotes the establishment of Public Employment Services as the
primary institution at the local level that is responsible for implementing a variety of active
labor market programs including job search assistance, training, and placement for the
unemployed including young jobseekers.

SEC. 3. Definition of Terms. — As used in this Act, the following shall refer to:

Establishment - an enterprise or employer which may be a company, sole
proprietorship, corporation, or any other legal entity registered under relevant laws
that may provide venue for training and/or placement of JobStart trainee trainees.

JobStart Trainees — an eligible JobStart registrant who has been selected to
participate in the program.

JobStart Graduate — JobStart trainees who have completed all the program
services and undergone all stages of JobStart full-cycle employment facilitation
services.

JobStart Technical Training — the program phase where the JobStart trainee
undergoes a two-stage training: (1) technology-based theoretical instruction for up to
three (3) months in a lecture area and hands-on exercises in a laboratory and/or a
workshop within the premises of a technical training provider (either in a TESDA-
registered technical vocational institute (TVI) or in-house/establishment); and (2)
practical learning in a regular work environment in a company/establishment for up
to three (3) months, as determined by the latter.

JobStart Unit — the office established and managed by the Bureau of Local
Employment (BLE), Department of Labor and Employment (DOLE) Regional Office,
or Public Employment Service Office (PESO) to implement and oversee the JobStart
program.

Training Allowance - the amount which the JobStart trainee receives either from
the JobStart Unit or from the participating establishment for the duration of the life
skills and technical training period.

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g. Training Plan — a written plan by the establishment that specifies skill competencies
to be acquired, the training curriculum or modules to be used, and the competency
levels expected to be achieved by the JobStart trainee by the end of the technical
training period.

h. Training Certificate - a certification that shall be jointly issued by the DOLE,
TESDA and concerned establishment, after program completion and assessment of
the JobStart trainee's competencies to attest to the skills acquired by the JobStart
trainee. The certificate shall contain a list of the units of competency and qualification
acquired.

SEC. 4. Objective of JobStart Philippines Program. - JobStart aims to enhance the
knowledge and skills acquired in the formal education and/or technical training of
jobseekers in order for them to become more responsive to the demands of the industry.
The program will also help develop life skills of youth including those relevant to the values
of professionalism and work appreciation and provide trainees with a venue to apply
relevant theories and code of ethics within a conducive and safe work environment.

SEC. 5. Eligibility of Program Participants. - The target program participants shall meet
the following requirements:

a. Aged 18-24 at the time of the registration period: Provided, however, That those who
are 17 years old but turning 18 years old at the time of the technical training may
also register;

b. Atleast a high school graduate;

c. Not employed, studying, nor undergoing training at the time of the registration; and

d. With less than one year or have no work experience.

SEC. 6. Program Components. - The program shall include full employment facilitation
services such as registration/client assessment, one-on-one career guidance, life skills and
technical training, job matching, and referrals either for further technical training or for
employment in an establishment.

SEC. 7. Status of JobStart Trainees. - For the duration of the program, the JobStart
trainee shall not be considered as an employee but rather a trainee of the establishment.
JobStart graduates shall be given preference in the hiring of workers by the participating
establishment. After career coaching, the PESO will assess and determine whether the
JobStart trainee is ready to be placed for contractual or regular work in an establishment. In
case of the latter, the JobStart trainee will be treated as an employee of the establishment.

SEC. 8. Payment of Training Allowance. - The trainees shall receive a daily training
allowance of Two hundred pesos (R200.00) from the JobStart Unit from life skills training up
to technical training. Upon entry into practical training in an establishment, the latter will
provide the JobStart trainees with daily allowance not less than 75% of the prevailing
minimum wage in the city/municipality where the establishment is located. The amount of
the allowance shall be based on the trainee’s actual attendance and that any absence,
tardiness, or undertime incurred shall be deducted therefrom in accordance with the
Training Plan. Training allowances shall be paid at least once every two (2) weeks or twice
a month at intervals not exceeding sixteen (16) days.

SEC. 9. Technical Training Period. —

a. The technical training period shall not be more than six (6) months or 1,200 hours.
The total daily training hours shall be eight (8) hours, exclusive of not less than sixty
(60) minutes time-off for the regular meals.

b. Training may be beyond eight (8) hours a day, not exceeding two (2) hours:
Provided, That the JobStart trainee is paid for the overtime stay an additional
allowance equivalent to his daily training allowance plus at least twenty-five percent
(25%) thereof.

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c. In case of night shift training, a JobStart trainee shall be entitled to a night shift
differential pay of not less than ten percent (10%) of the training allowance for each
hour of training between 10 o'clock in the evening and 6 o'clock in the morning.

d. JobStart trainees may be trained during regular holidays: Provided, That the trainee
is willing to and he/she will be compensated twice the daily training allowance on
regular holiday.

e. The time spent on overtime stay shall be duly credited to the trainee's training hour.

f. A JobStart trainee may be required to undergo a probationary period; Provided,
That, the number of days rendered by the trainee in the establishment shall be
counted as part of the probationary period should the trainee be hired in the same
establishment upon completion of the program.

SEC. 10. Entitlement to Other Benefits and Incentives. - Notwithstanding the LGU or
establishment's preference to provide additional or other health service/insurance support,
JobStart trainees shall be covered with accident insurance through the Philippine Red
Cross Membership for the duration of the program to be paid by DOLE. Furthermore, the
establishment shall be reimbursed of the cost of JobStart trainee's pre-training/employment
medical examinations in a maximum amount of One Thousand Pesos (R1,000.00) to be
provided by DOLE. Said expenses shall be disbursed by DOLE through the PESO. On the
other hand, the LGU shall exempt the JobStart trainees from securing a work permit.

SEC. 11. Duties and Responsibilities of the JobStart Trainee. - The JobStart trainee
shall exert every effort to acquire the abilities, values, and knowledge necessary to achieve
the purpose of the training. Towards this end, the trainee shall:

a. Submit to the PESO the following documents:
i. Birth certificate;
ii, High school and college diploma (if applicable);
il, Transcript of records (in highest level attained); and
iv. Training certificates or national certification issued by TESDA (if applicable).
b. Enter into either a training or service contract with the establishment;
c. Report for training/work in the establishment based on the schedule indicated in the
training/work contract;
d. Perform tasks and activities indicated in the Training Plan;
e. Use tools, instruments, machines and other equipment with due care;
f. Not reveal any business nor trade secrets that have come to his/her knowledge in
the course of the training;
g. Adhere to the existing rules and regulations of the establishment; and
h. Report to PESO for an exit interview after the completion of the technical training
period.

SEC. 12. Participation of Establishments. - An establishment shall be allowed to take in
JobStart trainees only up to a maximum of twenty percent (20%) of its total workforce. The
establishment shall not take in the same trainee to be part of the former's engagement in a
similar training program such as the Dual Training Program and the National Apprenticeship
Program.

Participating establishments must have the following:

a. Legitimate business operating within the LGU's catchment are:

b. Capacity to provide (in case of in-house arrangement) or facilitate (in case of third-
party training provider) TVET training to JobStart trainees and arrange for the
disbursement of the training allowance;

c. Capacity to provide for up to three (3) months practical training or work experience
of JobStart trainees, with a commitment to pay 75% of the daily minimum wage for
the relevant city/municipality;

d. Capacity to develop training plan to be learned and applied by the trainee in the
establishment;

e. Capacity to monitor JobStart trainee’s performance; and

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c. Provide to JobStart trainee(s) practical training or work experience for a maximum
period of three (3) months or 600 hou!

d. Pay training allowance to JobStart trainees of not less than 75% of the daily
minimum wage for the relevant city/municipality;

e. Encourage the JobStart trainee to develop his/her personality and professionalism
and to the extent possible, protect the JobStart trainee from physical or moral
danger;

f. Submit monitoring and evaluation reports or other information on the trainee’s
performance as may be required by DOLE or PESO;

g. Submit invoices to PESO for reimbursement or liquidation of expenses, as the case
may be, of training costs, training allowances, and other administrative costs; and

h. Notify the PESO and JobStart Unit of trainee’s breach of contract or misconduct in
the training premises prior to its decision to suspend or terminate the training.

SEC. 14, Termination of Training Contract. - Any of the following shall be a valid cause
to terminate the training contract:

By the Establishment:

i, Habitual absenteeism of the trainee;

ii. Willful disobedience of the establishment's rules or insubordination of lawful order of
a superior;

ili, Theft or malicious destruction of establishment's property or equipment;

iv. Engaging in violence or other forms of misconduct in the training or establishment's
premises; or

v. Inefficiency or poor training performance for a prolonged period despite warnings
duly given to the trainee.

By the JobStart Trainee:

i. Substandard or harmful working conditions within the establishment's premises;
and
ii, Cruel and inhumane treatment; and iii. Prolonged or continuing illness.

Either party may furnish to the other party a notice of intent to terminate the Training
Contract for cause as defined in this Section.

In case the training contract has been terminated, replacement of JobStart trainee in an
establishment will be allowed subject to the cause of termination. In case the termination is
caused by the establishment, the JobStart trainee may still be referred to other participating
establishments. In case the termination is caused by the trainee's non-adherence to
program guidelines, a new trainee may still be provided to the establishment: Provided,
That there are other trainees available for deployment.

SEC. 15. Grievance Committee. — In case of any violation of training agreement, upon
filing a complaint by the aggrieved party, the Grievance Committee shall have the initial
responsibility for settling differences. The Grievance Committee shall be composed of the
officials and representatives of the concerned DOLE Regional and Field Offices and PESOs
which have the jurisdiction over the concemed establishment. The Committee shall
investigate and render a decision pursuant to pertinent rules and regulations. In case of

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failure by the Grievance Committee to settle the issue or render a decision, or in case the
complaint is against the member/s of the Grievance Committee, the case shall be referred
to the BLE for deliberation and appropriate action.

SEC. 16. Payment of Administrative Fee. — Participating establishments shall receive an
amount of One thousand pesos (R1,000.00) per month per JobStart trainee to cover
administration cost in managing the trainee.

SEC. 17. Partnership with Local Government. - The LGUs, through the PESOs, shall
serve as the conduit of DOLE in implementing the program at the local level. The PESOs
are expected to:

a. Hire adequate staff to ensure the smooth implementation of the program;

b. Organize the registration process for the program intake of registrants;

c. Process and evaluate information of registrants and select eligible program
beneficiaries;

d. Conduct job matching and referral;

e. Collect and review relevant financial and administrative documents and reports
as necessary for the processing of the training grants to the JobStart trainees as well
as the administrative fee provided to the establishment;

f. Maintain a complete profile and record of transactions of program participants and
establishments; and

g. Submit a monthly program monitoring report to DOLE copy furnished the concerned
DOLE Regional and Field Offices and the office of the Local Chief Executive

SEC. 18. Role of DOLE. - The DOLE is the executing agency of the JobStart Philippines
Program. The BLE shall serve as the Program Manager that shall provide the necessary
technical and administrative assistance to concemed Regional and Field Offices, and
PESOs. The Regional and Field Offices shall supervise and monitor the implementation of
the JobStart activities in their respective jurisdiction. The DOLE shall conduct capacity
building activities to train the PESOs in adopting the new model on employment facilitation
services, particularly on career coaching and life skills.

SEC. 19. Role of the JobStart Unit. - The DOLE shall establish a JobStart Unit at the BLE
and in every DOLE Regional Offices. The JobStart Unit shall provide the establishment the
training costs, trainees’ stipends/allowances, administrative costs, or other fees, if any, as
specified under an approved/signed Memorandum of Agreement between DOLE and the
establishment.

SEC. 20. Enhancement of Labor Market Information System (LMIS). — Further to the
thrust of developing local LMIS, participating PESOs will make use of the Client Tracking
System (CTS) to manage records of JobStart trainees, establishments and PESO
transactions. The DOLE’s Skills Registry System shall be re-designed to capture the data
storage and system requirements of the JobStart’s CTS. Further, PESO LMI staff will be
trained in the use of the CTS and job matching

At the regional and national level, the DOLE Field, Regional Offices and BLE shall establish
the necessary information technology infrastructure and system to improve the collection,
processing, analysis, report development and dissemination of PESO statistics and other
LMI. Towards this end, Labor Market Analysts shall be hired by DOLE and BLE to provide
technical assistance in maintaining the LMIS at all levels.

SEC. 21. Oversight Committee. - An Oversight Committee shall oversee the
implementation of the JobStart Philippines Program. The Committee shall be composed of
the Secretary of Labor and Employment as its chairperson, representatives from the
Department of Interior and Local Government, Department of Social Welfare and
Development, Technical Education and Skills Development Authority, and representatives
each coming from the youth, employer, and labor sector. Five (5) years after the enactment
of this Act, the Committee shall conduct a comprehensive assessment to evaluate the

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impact of the program. Through the Secretary of Labor and Employment, a report shall be
transmitted to both Houses of Congress.

SEC. 22. Appropriations. - The supplemental budget in the amount of One hundred fifty
million pesos (R150,000,000.00) is allocated to the Department of Labor and Employment's
regular budget for the current fiscal year. Thereafter, such sums as may be necessary for
the continued implementation of this Act shall be included in the General Appropriations
Act.

SEC. 23. Implementing Rules and Regulations. - The Secretary of Labor and
Employment, in coordination with concerned agencies, shall promulgate the necessary
rules and regulations to implement the provisions of this Act within ninety (00) days from
its effectivity.

SEC. 24. Repealing Clause. - All laws or parts thereof, decrees, orders, rules and
regulations deemed inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 25. Separability Clause. — If any provision of this Act is declared unconstitutional or
invalid, the other provisions not affected thereby shall remain in full force and effect.

SEC. 26. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,