Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

THIRTEENTH CONGRESS
First Regular Session

2
House Bill No.__ 3.8.

Introduced by

HON. LEOVIGILDO B. BANAAG (1* District, Agusan del Norte)

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
futfiling 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 to 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 the reasons stated, the immediat

sought.

approval of this bill is ea

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LEOVIGILDO B.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

THIRTEENTH CONGRESS
First Regular Session

RD
House Bill No. 3852

Introduced by

HON. LEOVIGILDO B. BANAAG (1* District, Agusan del Norte)

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

Be it enacted by the Senate and House of Representatives 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. -

SECTION 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.

SECTION 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;

7. 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 advancement.

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 the Governing Board;

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
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.

SECTION 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) years.


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.

SECTION §. Powers of the Governing Board. The Governing Board
shall have the following powers and functions:

a)

b)

°)

4)

e)

Recommend to the President of the Republic of the Philippines for
approval a Comprehensive Employment Plan;

Approve employment programs and projects to be implemented
by the Authority;

Promulgate rules and regulations for the effective implementation
of this Act;

Monitor and review on a periodic basis the local employment
situation and recommend appropriate policies, measures, and
strategies to improve and maximize the promotion and generation
of productive employment; and

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

SECTION 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

(a)

(b)

(o)

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.

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.

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

1. Employment Promotion and Facilitation;
2. Employment Planning and Monitorin;
3. Management Services and Operations.

ind



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

e) 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

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

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

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

Approved, -