Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

# “
HOUSE BILL NO. 4718

Introduced by REP. ALFREDO “ALBEE” B. BENITEZ

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 a Public Employment Service Office (PESO) in all capital towns of
provinces, key cities, and other strategic areas.

‘The following were 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 provide 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 the provision
of technical assistance, training and supervision. There were no allocation for the
establishment, operation and maintenance of the PESO office itself. Because of the
tight fiscal situation, the PESO Act remains unfunded.

‘Thus, the primary consideration of this bill is to establish a labor market
information infrastructure at the grass roots for a more efficient and effective
provision of employment services, that is to facilitate the meeting of supply and
demand for skills thereby reducing the transaction cost of information on available
skills and jobs.

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.

ALFREDG “ALBEE” B. BENITEZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

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HOUSE BILL NO. 4

Introduced by REP. ALFREDO “ALBEE” B. BENITEZ.

AN ACT DEFINING THE ROLE OF DOLE AND LGU ON THE ESTABLISHMENT AND
OPERATION OF THE PESO, AND THE OPERATION OF THE JOB PLACEMENT
OFFICE IN SUC AND NGO, AMENDING FOR THE PURPOSE SECTIONS 3, 6, 7, AND
9 OF REPUBLIC ACT NO. 8759, OTHER WISE KNOWN AS PUBLIC MOVEMENT
SERVICE OFFICE ACT OF 1999

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

SECTION 1. Section 3 of Republic Act No. 8759, otherwise known as the
“Public Employment Service Act of 1999,” is hereby amended to read as follows:

“Section 3. Establishment of the Public Employment Service Office.

"To carry out the above-declared policy, there shall be
established in all capital towns of provinces, key cities, and [other strategic
areas] MUNICIPALITIES a Public Employment Service Office, hereinafter
referred to as “PESO”, which shall be [community based and] OPERATED
AND maintained [largely] by local government units (LGU’s). [and a number
of non-governmental organizations (NGO's) and state universities and
colleges (SUC’s)] The PESO shall be linked to the regional offices of the
Department of Labor and Employment (DOLE) for coordination and technical
supervision, and to the DOLE central office, to constitute the national PUBLIC
employment service network.

UPON THE REQUEST OF THE NGO OR SUC, THE DOLE MAY ENTER
INTO A MEMORANDUM OF AGREEMENT WITH THE FORMER TO
ESTABLISH, OPERATE AND MAINTAIN A JOB PLACEMENT OFFICE.

“TO HARMONIZE THE PROVISION OF EMPLOYMENT SERVICE IN A
GIVEN TERRITORIAL JURISDICTION, THE JOB PLACEMENT OFFICE AT THE
NGO AND SUC SHALL COORDINATE THEIR ACTIVITIES WITH THE NEAREST
PESO.”

SECTION 2. Section 6 of the same law is hereby amended to read as follows:
“SECTION 6. Other Services of the PESO.

“In addition to the functions enumerated in the preceding section,
every PESO shall [also] undertake [the following] STRATEGIES, programs


and activities [:] TO MAKE THE PROVISION OF EMPLOYMENT SERVICE
EFFECTIVE AND EFFICIENT.”

{(a)__ Jobs Fairs - These shall be conducted periodically all over the country
to bring together in one venue job seekers and employers for
immediate matching)]

[(b) _ Livelihood and Self-Employment Bazaars ~ These will give clients
information on the wide array of livelihood programs they choose to
avail of, particularly in the rural area;]

{() Special credit Assistance for Placed Overseas Workers ~ This type of
assistance will enable poor but qualified applicants to avail of
opportunities for overseas employment;]

[(d) Special Program for Employment of Students and Out-of-School Youth
(SPESOS) - This program shall endeavor to provide employment to
deserving students and for out-of-school youths coming from poor
families during summer and/or Christmas vacations as provided for
under Republic Act No. 7323 and its implementing rules, to enable
them to pursue their education;}

{(e) Work Appreciation Program (WAP) - this program aims to develop
the values of work appreciation and ethics by exposing the young to
actual work situations;)

[() Workers Hiring for Infrastructure Projects (WHIP) - ‘This program is
in pursuance of Republic Act No. 6685 which requires construction
companies, including the Department of Public Works and Highways
and contractor for government-funded infrastructure projects, to hire
thirty percent (30%) of skilled and fifty percent (50%) of unskilled
labor requirements from the areas where the project is
constructed/located; and}

{(g) Other programs/activities developed by DOLE to enhance provision of
employment assistance to PESO clients, particularly for special groups
of disadvantaged workers such as persons with disabilities (PWDs)
and displaced workers.]

SECTION 3. Section 7 of the same law is hereby amended to read as follows:

TION 7. Role of DOLE| J and LGUs{, NGOs; CBOs, and SUCs].

[Upon the request of the LGUs, NGOs, CBOs, SUCs which do not have
existing PESOs, the establishment, operation and maintenance of PESOs shall
be undertaken by the DOLE. The DOLE shall enter into memoranda of
agreements with the concerned LGUs, NGOs, CBOs, SUCs for the
establishment, operation and maintenance of the PESOs in their respective
areas of jurisdiction and the institutionalization of existing PESOs.] THE
DOLE AND THE LGU SHALL JOINTLY ESTABLISH THE PESO.

It shall be the responsibility of the DOLE to:

(a) PROVIDE TECHNICAL SUPERVISION, COORDINATION AND CAPACITY
BUILDING TO THE PESO;

(b) Establish and maintain a computerized [national power] HUMAN
RESOURCE AND JOB registr[yJIES [of skills and employment and
business opportunities] to facilitate the provision and packaging of
employment assistance to PESO clients and [the] TO set[ting-Jup [of]
intra- and inter-regional job clearance system as part of the overall
employment service network;


[()
)

([d}e)

(eld)

(Ife)

(thf)

(a)
(B)

Provide office space, equipment and/or supplies, as well as necessary
personnel complement to manage, operate and maintain the PESO;]
Designate in consultation with the LGU NGO, CBO or SUC concerned, a
qualified [project manager and/or key personnel who shall be
responsible for the operation and management of the PESO;]

Provide technical assistance and allied support services to the
PESO[;], INCLUDING, BUT NOT LIMI TO, TRAINING OF PESO
PERSONNEL IN THE VARIOUS ASPECT OF EMLOYMENT
FACILITATIONS FUNCTIONS;
in PESO personnel in the various aspect
facilitations functions] SET
AND OPERATION OF
STANDARDS FOR THE PESO PERSONN!
Extend [/facilitate such] other packages of employment services [to
the provision of employment assistance] to [clients of] the LGU, NGO,
or SUC concerned, including the conduct of job fairs, CAREER ADVISE,
ETC. [and other activitie:
[Undertake] Monitor, assess, and evaluate the PERFORMANCE OF
THE PESO NETWORK, INCLUDING THE JOB PLACEMENT OFFICES:
AND THE SUC AND NGO [the PESO program implementation].

s of employment
‘STABLISHMENT

(For their part the LGUs, NGOs, CBOs, or SCUs 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, SHAL 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 TE 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:

OPERATE AND MAINTAIN THE PESO;

ENSURE COMPLIANCE WITH THE OPERATIONAL STANDARDS
BY THE DOLE

EXTEND SUCH ASSISTANCE AND SERVICES AS MAY BE NECESSARY
IN THE PROMOTION OF EMPLOYMENT WITHIN THE Al OF
JURISDICTION; AN
SUBMIT TO 1E DOLE PERIODIC PERFORMANCE/
ACCOMPLISHMENT REPORTS.”

TION 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 operation
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 REQUIRMENTS OF THIS PESO SHALL BE

INCLUDED IN THE ANNUAL BUDGET OF THE LGU UNDER ITS INTERNAL


REVENUE ALLOTMENT. THE SUC AND NGO SHALL PROVIDE THE
RESOURCES FOR THE OPERATION OF THEIR JOB PLACEMENT OFFICES.

FUNDS FOR THE ROVISION OF TECHNICAL ASSISTANCE, TRAINING
AND SUPERVISION OF THE PESO SHALL BE INCLUDED IN THE BUDGET OF
‘THE DOLE IN THE GENERAL APPROPPRIATION ACT.

SECTION 5. IMPLEMENTING RULES AND REGULATIONS.

THE SECRETARY OF LABOR AND EMPLOYMENT SHALL ISSUE 1!
NECESSARY RULES AND REGULATIONS FOR THE
IMPLEMENTATION OF THIS ACT WITHIN NINETY (90) DAYS AFTER ITS
EFFECTIVITY.

SECTION 6. REPEALING CAUSE.

ALL LAWS, DECREES, EXECUTIVE ORDERS, PROCLAMATIONS, RULES AND
REGULATIONS OR ANY PART THEREOF, WHICH ARE INCONS! WITH
THE PROVISIONS OF THIS ACT, ARE HERBY DEEMED REPEA\ OR
MODIFIED ACCORDINGLY.

ION 7. SEPERABILITY CAUSE.

CTION OR PROVISIO}

OF THIS ACT OR ANY
APPLICATION OF SUCH SECTION, PROVISION OR
PORTION IS DECLARED INVALID OR UNCON: TIONAL, THE REMINDER
THEREOF SHALL NOT BE AFFECTED BY SUCH DECLARATION,

SE

ON 8. EFFECTIVITY

‘THIS ACT SHALL TAKE (CT AFTER FIFTE!
OF ITS PUBLICATION IN TH! CIAL GA’
NEWSPAPERS OF GENERAL CIRCULATION.

(15) DAYS FROM THE DATE
OR IN AT LEAST TWO (2)

APPROVED.