Republic of the Philippines
HOUSE OF REPRESENTATIVES
Diliman, Quezon City

‘THIRTEENTH CONGRESS
First Regular Session

House Bill Nc 3788

‘EXPLANATORY NOTE,

‘The Philippine labor market in recent years has been showing a dismal
performance as the country’s employment rates continue to decline. This
slump in employment pushed the unemployment rate to a two-digit level,
indicating a weak labor market. The unemployment scenario is expected to be
worse and there will be substantial loss of job opportunities and income-there
ought to be a deliberate effort on the part of government to improve the' total
Philippine employment picture,

‘The President herself acknowledged this situation and has in fact
included the creation of six to ten million jobs as her administration's top
priority among the 10-point agenda of her governance. To assist the Arroyo
Administration in fulfilling this mandate, there should be an agency tasked
solely to plan, manage and supervise local jobs and employment opportunities
to abate the growing unemployment and underemployment.

This bill, therefore, seeks the creation of a Local Employment Authority,
as an attached agency of the Department of Labor and Employment (DOLE),
which shall be responsible in planning and managing local employment
promotion, facilitation, generation and enhancement for both wage and non-
‘wage employment.

For this reason, the immediate approval of this bill is earnestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘THIRTEENTH CONGRESS
First Regular Session

3788

House Bill No.

Introduced by HON. MAURICIO G. DOMOGAN

AN ACT CREATING THE LOCAL EMPLOYMENT AUTHORITY,
‘DEFINING ITS POWERS AND FUNCTIONS
AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Declaration of Policy. - It is the policy of the State to afford
protection to labor, promote full employment, ensure equal work opportunities
Tegardless of sex, race or creed, and regulate the relations between workers
and employers

SEC 2. The Local Employment Authority. ~ For the purpose of carrying
out the above policy, there shall be created under the Department of Labor and
Employment (DOLE), a Local Employment Authority, herein referred to as the
Authority. The Authority shall be responsible for’ planning and managing
employment promotion, facilitation, generation and enhancement strategies to
afford each and every Filipino the opportunity of gainful and productive
employment.

SEC 3. Powers of the Authority. - The Authority shall have the following
Powers and functions:

1, Formulate policies, standards and procedures and systems for
human resource development, allocation, utilization, and referral
and placement for both wage and non-wage employment;


2, Establish and maintain coordinative linkage with the private sector
to facilitate employment promotion and generation;

3. Regulate and supervise private sector participation in the
recruitment and placement of workers locally under such rules and
regulations as may be issued by the Governing Board;

4, Establish and maintain a registration or work permit system in aid
of proper manpower and development planning;

5. Formulate employment policies, standards and procedures and
programs designed to benefit and protect both wage and non-wage
earners, particularly the disadvantaged/special groups of workers
and their communities such as, but not limited to women, young
workers, working children, rural and agricultural workers, informal
sector workers, persons with disabilities, and the elderly;

6. Formulate policies and promulgate orders, rules and regulations
implementing the provisions of the labor code affecting in particular

the disadvantaged / special groups of workers;

Set ‘standards which shall project the welfare of | the

disadvantaged/special groups of workers, improve their working

conditions, increase their efficiency! secure opportunities for their
gainful and productive employment and find ways for their
economic, educational, social and cultural Ravancement;

8. Prepare and recommend to the Governing Board the approval and
issuance of rules and regulations necessary in the interpretation of
all laws relating to local employment;

9. Undertake development studies and researches on employment
promotion, facilitation and enhancement, and submit
recommendations to the Governing Board;

10. Undertake studies. on the training needs of _ the
disadvantaged/special groups of workers and develop programs and
projects to enhance their productivity and employability, and
effective participation in community development;

11. Provide legal and technical assistance on matters relating to the
employment of both wage and non-wage earners;

12. Coordinate, monitor and evaluate employment interventions of all
government instrumentalities;

13. Act as the government's clearing house of all information relating to
local employment; and

14, Perform such other functions as may be assigned by the Governing
Board or as may be provided by law.

SEC. 4. Governing Board. - A Governing Board composed of the
Secretary of Labor and Employment as ex-officio chairman, and the Secretaries
of the National Economic Development Authority, Department of Trade and
Industry, Department of Agriculture, and the Director General as ex-officio
members shall manage the Authority


In addition, the President shall appoint one (1) representative each from
the employer/industry and labor sectors, who shall hold office for three (3)
vyears.

‘The Board shall meet once a month or as often as deemed necessary. The
Board Chairman and Members shall receive per diems for each meeting
actually attended in such amount as may be fixed by the Governing Board.

SEC. 5. Powers of the Governing Board. ~ The Governing Board shall
have the following powers and functions:

4) Recommend to the President of the Republic of the Philippines for
approval a comprehensive Employment Plan;

b) Approve employment programs and projects to be implemented by the
‘authority;

6) Promuigate rules and regulations for the effective implementation of
this Act;

Monitor and review on a periodic basis the local employment situation

and reéommend appropriate policies, measures and strategies t0

improve and maximize the promotion and generation of productive

employment; and 1

©) Perform such other functions and powers as may be authorized by
law.

SEC. 6. Structure. - Three Bureaus under the Department of Labor and
Employment, namely: a) Bureau of Local Employment; b) Bureau of Rural
Workers; and c} Bureau of Women and Young Workers shall be merged to give
way for the creation of the Authority. The following shall comprised the
Authority:

(a) Director General. - The Authority shall be headed by a Director
General to be appointed by the President, who shall manage and supervise the
affairs of the Authority. The Director General shall have a position level
‘equivalent to that of a Department Undersecretary.

(b) Deputy Director General. - The Director General shall be assisted by a
Deputy Director General, with a position level equivalent to that of a
Department Assistant Secretary, in implementing and carrying out employment
policies and plans laid down by the Authority.

(c) Departments. - The Authority shall have three (3) major Departments,
‘each to be headed by a Director IV, namely:

1. Employment Promotion and Facilitation;
2. Employment Planning and Monitoring; and


3. Management Services and Operations.

(@) Regional Operations, ~The DOLE Regional Offices shall continue to
be the implementing arm for the national employment program at the regional
level.

(¢) Personnel Complement. - The existing manpower complement of the
three (3) merged Bureaus shall be reviewed in accordance with the Civil Service
rules and regulations. Personnel who may not be absorbed by the Authority or
Regional Offices of the DOLE shall be offered an appropriate retirement/
retrenchment package as may be authorized by law.

SEC 7. Appropriations. - For the purpose of organizing the Local
Employment Authority, the respective budgets of the three (3) abolished
Bureaus shall be pooled as initial funding for the Authority. Thereafter, the
amount necessary for the operations of the Authority shall be included in the
General Appropriations Act.

: '

‘SEC. 8. Repealing Clause. ~ All other provisions, law, decrees, executive
orders, rules and regulations or parts thereof contrar} to, or inconsistent with
this Act are hereby repealed or modified accordingly.

SEC 9. Effectivity. - This Act shall take effect upon its approval and
publication in at least two (2) national newspapers of general circulation.

Approved,