SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
S. B. No. 1 1 3 0
iSilirt of
*16 SEP-7 P5;06
Kl'< r r  
' *^Y:
Introduced by SENATOR JOEL VILLANUEVA
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
Recent studies and experiences demonstrate that there is a mismatch 
between available jobs in the market and the skills that our workers possess. 
According to the Department of Labor and Employment, out of the 4,239,392 
domestic and international job vacancies offered in thousands of job fairs nationwide 
in the past two years, only 391,088 among 1,286,073 applicants were hired on the 
spot.
This bill seeks to address job-skills mismatch by providing for a Labor 
Empowerment Assistance Program that is linked to TESDA skills training for 
employees in between jobs. In addition, this bill also provides for financial assistance 
to workers in between job periods at an amount which is no less than the appropriate 
minimum wage.
Indeed, improving the technical skills of our workers is paramount, and is in 
line with the aspirations of the 2030 development agenda which provides that “[bjy 
2030, increase the number of youth and adults who have relevant skills, including 
technical and vocational skills, for employment, decent jobs and entrepreneurship.”
The passage of this important measure is earnestly sought.
SENATOR JOEL VILLANUEVA


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
t Ol l l f t  o f  ( h f  ^ r r t i f T r y
'16 ^EP-7 P5:06
SENATE
S. B. No. 1 1 3 0
RI ^
Introduced by SENATOR JOEL VILLANUEVA
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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 
provided to read as follows:
"ARTICLE 
107-A. 
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 CREATED. THE 
LEAP SHALL:
(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, MEDICINES, ELECTRICITY AND WATER 
UTILITIES: AND
(C) 
LABOR ORGANIZATIONS IN THE NATIONAL TRIPARTITE INDUSTRIAL 
PEACE COUNCIL (NTIPC) SHALL CO-ADMINISTER THE DISTRIBUTION 
OF THE CARDS AND MONITORING OF COMPLIANCE BY THEIR


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BENEFICIARY-MEMBERS 
WITH 
TRAINING OR UPGRADING.”
THE 
REQUIRED 
TESDA 
SKILLS
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.
APPROVED.