Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS.
Second Regular Session

HOUSE BILL NOSD 43.

Introduced by REP. Michael L. Romero and Enrico A. Pineda

EXPLANATORY NOTE

In the Republic of the Philippines, the pursuit of an independent foreign policy
and while considering national sovereignty, territorial integrity. national interest
and the right to self-determination paramount in its relations with other states,
the State shall, at all times, uphold the dignity of its citizens whether in country or
overseas. in general, and Filipino migrant workers, in particular.

The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment
opportunities for all. Towards this end, the State shall provide adequate and
timely social, economic and legal services to Filipino migrant workers.

While recognizing the significant contribution of Filipino migrant workers to the
national economy through their foreign exchange remittances, the State does
not promote overseas employment as a means fo sustain economic growth and
achieve national development. The existence of the overseas employment
program rests solely on the assurance that the dignity and fundamental human
rights and freedoms of the Filipino citizens shall not, at any time, be
compromised or violated. The State, therefore, shall continuously create local
employment opportunities and promote the equitable distribution of wealth and
the benefits of development.


This House Bill seeks to affirm the fundamental equality before the law of women
and men and their significant role in nation-building. Recognizing the
contribution of overseas migrant workers and their particular vulnerabilities, the

This House Bill seeks to apply sensitive criteria in the formulation and
implementation of policies and programs affecting migrant workers and the
composition of bodies tasked for the welfare of all migrant workers.

This House Bill seeks to promote free access to the courts and quasi-judicial
bodies and adequate legal assistance shall not be denied to any persons by
reason of poverty.

In this regard, this House Bill seeks to establish an effective mechanism be
instituted to ensure that the rights and interest of distressed overseas Filipinos, in
general, and filipino migrant workers, in particular, documented or
undocumented, are adequately protected and safeguarded.

Thus, the early passage of this bill is earnestly requested.

MICHABL L’ ROMERO Ph.D ms A. PINEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

5543

HOUSE BILL NO. __

Introduced by REP. Michael L. Romero and Enrico A. Pineda

AN ACT
AMENDING REPUBLIC ACT NO.10022, OTHERWISE KNOWN AS

“An Act Amending RA8042 (Migrant Workers and Overseas Filipinos

Act of 1995)", TO FOSTER THE IMPOSITION OF ALL EXISTING POLICIES

AND GUIDELINES, TO PROMOTE A HIGHER STANDARD OF PROTECTION

AND WELFARE, INCREASING ITS PENALTIES AND SANCTIONS, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representative of the

Philippines in congress assembled:

SECTION 1. Declaration of Policy -
Section 6 of Republic Act No. 10022, is hereby amended to read as follows:
SECTION 6. Penalties -

(a) Any person found guilty of illegal recruitment shall suffer
the penalty of imprisonment of not less than twelve (12) years


and one (1) day but not more than twenty (20) years and a
fine of not less than Two million pesos (P2,000,000.00).

(b) The penalty of life imprisonment and a fine of not less than
Five million pesos (P5,000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as defined
therein,

"Provided, however,

That the maximum penalty shall be imposed if the person
illegally recruited is less than eighteen (18) years of age or
committed by a non-licensee or non-holder of authority,

(c) Any person found guilty of any of the prohibited acts shall
suffer the penalty of imprisonment of not less than twelve (12)
years and a fine of not less than One million pesos
(P1,000,000.00).

It the offender is an alien, he or she shall, in addition to the penalties
herein prescribed, be deported without further proceedings.

In every case,

conviction shall cause and cary the automatic revocation of the license
or registration of the recruitment/manning agency, lending institutions,
training school or medical clinic.

SECTION 2. Declaration of Policy -

Section 7, of Republic Act No, 10022 is hereby amended to read as follows:


SECTION 7. MONEY CLAIMS — Notwithstanding any provision of law
to the contrary, the Labor Arbiters of the National Labor Relations
Commission (NLRC) shall have the original and exclusive jurisdiction
to hear and decide, within sixty (60) calendar days after filing of the
complaint, the claims arising out of an employer-employee
relationship or by virtue of any law or contract involving Filipino
workers for overseas deployment including claims for actual, moral,
exemplary and other forms of damages.

The liability of the principal or employer and the
recruitment/placement agency for any and all claims under this
section shall be joint and several. This provisions shall be
incorporated in the contract for overseas employment and shall be
a condition precedent for its approval. The performance bond to
be filed by the recruitment/placement agency, as provided by law,
shall be answerable for all money claims or damages that may be
awarded to the workers. If the recruitment/placement agency is a
juridical being, the corporate officers and directors and partners as
the case may be, shall themselves be jointly and solidarily liable with
the corporation or partnership for the aforesaid claims and
damages.

Such liabilities shall continue during the entire period or duration of
the employment contract and shall not be affected by any
substitution. amendment or modification made locally or in a
foreign country of the said contract.

Any compromise/amicable settlement or voluntary agreement on
money claims inclusive of damages under this section shall be paid


within thirty (30) days from the approval of the settlement by the
appropriate authority.

In case of termination of overseas employment without just, valid or
authorized cause as defined by law or contract, the workers shall
be entitled to the full reimbursement of his placement fee with
interest of twelve percent (12%) per annum, plus his salaries for the
unexpired portion of his employment contract or for four (4) months
for every year of the unexpired term, whichever is less.

Non-compliance with the mandatory periods for resolutions of
cases provided under this section shall subject the responsible
Officials to any or all of the following penalties:

(a) The salary of any such official who fails to render his
decision or resolutions within the prescribed period shall be, or
caused to be, withheld until the said official complies
therewith;

(b) Suspension for not less than ninety (90) days; or

(c) Dismissal from the service with disqualifications to hold any
appointive public office for six (6) years.

Provided, however, that the penalties herein provided shall be
without prejudice to any liability which any such official may have
incurred under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph.

SECTION 3. Declaration of Policy -


Section 9, of Republic Act No. 8042 is hereby amended to read as follows:

SECTION 9. Mandatory Repatriation of Underage Migrant Workers. - Upon
discovery or being informed of the presence of migrant workers whose
ages fall below the minimum age requirement for overseas deployment,
the responsible officers in the foreign service shall without delay repatriate
said workers and advise the Department of Foreign Affairs through the
fastest means of communication available of such discovery and other
relevant information.

The license of a recruitment/manning agency which recruited or
deployed an underage migrant worker shall be automatically revoked
and shall be imposed a fine of not less than One million pesos (P
1,000,000.00). All fees pertinent to the processing of papers or documents
in the recruitment or deployment shall be refunded in full by the
responsible recruitment/manning agency, without need of notice, to the
underage migrant worker or to his parents or guardian,

The refund shall be independent of and in addition to the indemnification
for the damages sustained by the underage migrant worker. The refund
shall be paid within thirty (30) days from the date of the mandatory
repatriation as provided for in this Act.

SECTION 4. Declaration of Policy -

Section 18, of Republic Act No. 10022 is hereby amended to read as follows:

SECTION 18. LEGAL ASSISTANCE FUND — There is hereby established a legal
assistance fund for migrant workers, herein after referred to as Legal


Assistance fund, in the amount of Three hundred million pesos
((P300,000,000.00) to be constituted from the following sources:

One hundred fifty million pesos (P150,000,000.00) from the Contingency
Fund of the President;

One hundred million pesos (P100,000,000.00) from the Presidential Social
Fund; and

Fifty million pesos (P50,000,000.00) from the Welfare Fund for Overseas
Workers established under Letter of Instruction No. 537, as amended by
Presidential Decree Nos. 1694 and 1809.

An amount appropriated in the annual General Appropriations Act (GAA)
which shall not be less than Fifty million pesos (°50,000,000.00) per year:

Provided, that the balance of the Legal Assistance Fund (LAF) including
the amount appropriated for the year shall not be less than Two hundred
million pesos (200,000,000.00):

Provided, further, That the fund shall be treated as a special fund in the
National Treasury and its balance, including the amount appropriated in
the GAA, which shall form part of the Fund. shall not revert to the General
Fund.

Any balances of existing fund which have been set aside by the
government specifically as legal assistance or defense fund to help
migrant workers shall, upon effectivity of this Act. to be turned over to,
and form part of, the Fund created under this Act.


SECTION 5. Declaration of Policy -

Section 23, of Republic Act No. 10022 is hereby amended to read:

SECTION 23. Compulsory insurance Coverage for Agency-Hired
Workers - In addition to the performance bond to be filed by the
fecruitment/manning agency under Section 10. each migrant
worker deployed by a rectuifment/manning agency shall be
covered by a compulsory insurance policy which shall be secured
at no cost to the said worker. Such insurance policy shall be
effective for the duration of the migrant worker's employment and

shall cover, at the minimum:

(a) Accidental death, with at least Twenty thousand
United States dollars (US$20,000.00) survivor's benefit
payable to the migrant worker's beneficiaries;

(b) Permanent total disablement, with at least Ten
thousand United States dollars (US$10,000.00) disability
benefit payable to the migrant worker. The following
disabilities shall be deemed permanent: total,
complete loss of sight of both eyes; loss of two(2) limbs
at or above the ankles or wrists; permanent complete
paralysis of two (2) limbs; brain injury resulting to
incurable imbecility or insanity;

(c) Repatriation cost of the worker when. his/her
employment is terminated without any valid cause,
including the transport of his or her personal
belongings. In case of death. the insurance provider
shall arrange and pay for the repatriation or return of


the worker's remains. The insurance provider shall also
render any assistance necessary in the transport
including, but not limited to, locating a local licensed
funeral home, mortuary or direct disposition facility to
prepare the body for transport, completing all
documentation, obtaining legal clearances, procuring
consular services, providing necessary casket or air
transport container, as well as transporting the remains
including retrieval from site of death and delivery to the
receiving funeral home;

(d) Subsistence allowance benefit, with at least Two
hundred United States dollars (US$200.00) Per month for
9 maximum of six (6) months for a migrant worker who
is involved in a case or litigation for the protection of
his/her rights in the receiving country;

(e) Money claims arising from employer's liability which
may be awarded or given to the worker in a judgment
or settlement of his or her case in the NLRC. The
insurance coverage for money claims shall be
equivalent to at least four (4) months for every year of
the migrant worker's employment contract;

In addition to the above coverage, the insurance
policy shall also include:

(f) Compassionate visit. When a migrant worker is
hospitalized and has been confined for at least seven
(7) consecutive days, he shall be entitled to a


compassionate visit by one (1) family member or a
requested individual.

The insurance company shall pay for the transportation
cost of the family member or requested individual to
the major airport closest to the place of hospitalization
of the worker. It is, however, the responsibility of the
family member or requested individual to meet all visa
and travel document requirements;

(g) Medical evacuation. When an adequate medical
facility is not available proximate to the migrant worker,
as determined by the insurance company’s physician
and/or a consulting physician, evacuation under
appropriate medical supervision by the mode of
transport necessary shall be undertaken by the
insurance provider; and

(h) Medical repatriation. When medically necessary as
determined by the attending physician, repatriation
under medical supervision to the migrant worker's
fesidence shall be undertaken by the insurance
provider at such time that the migrant worker is
medically cleared for travel by commercial carrier. If
the period to receive medical clearance to travel
exceeds fourteen (14) days from the date of discharge
from the hospital, an alternative appropriate mode of
transportation, such as ait ambulance, may be
arranged. Medical and non-medical escorts may be
provided when necessary.


Only reputable private insurance companies duly registered with
the Insurance Commission {IC). which are in existence and
operational for at least Five hundred million pesos (500,000,000.00)
to be determined by the IC, and with a current year certificate of
authority shall be qualified to provide for the worker's insurance
coverage. Insurance companies who have directors, partners,
officers, employees or agents with relatives. within the fourth civil
degree of consanguinity or affinity, who work or have interest in any
of the licensed recruitment/manning agencies or in any of the
government agencies involved in the overseas employment
program shall be disqualified from providing this workers’ insurance
coverage.

The recruitment/manning agency shall have the right to choose
from any of the qualified insurance providers the company that will
insure the migrant worker it will deploy. After procuring such
insurance policy, the recruitment/manning agency shall provide an
authenticated copy thereof to the migrant worker. It shall then
submit the certificate of insurance coverage of the migrant worker
to POEA as a requirement for the issuance of an Overseas
Employment Certificate (OEC) to the migrant worker. In the case of
seafarers who are insured under policies issued by foreign insurance
companies, the POEA shall accept certificates or other proofs of
cover from recruitment/manning agencies: Provided, That the
minimum coverage under sub-paragraphs (a) to (h) are included
therein,

Any person having a claim upon the policy issued pursuant to
subparagraphs (a), (b), (c}, (d) and (e} of this section shall present
to the insurance company concemed a written notice of claim


together with pertinent supporting documents. The insurance
company shall forthwith ascertain the truth and extent of the claim
and make payment within ten (10) days from the filing of the notice
of claim,

Any claim arising from accidental death, natural death or
disablement under this section shall be paid by the insurance
company without any contest and without the necessity of
providing fault or negligence of any kind on the part of the insured
migrant worker:

Provided, That the following documents, duly authenticated by the
Philippine foreign posts, shall be sufficient evidence to substantiate
the claim:

(1) Death Certificate - in case of natural or accidental
death;

(2) Police or Accident Report - In case of accidental
death; and

(3) Medical Certificate - In case of permanent
disablement;

For repatriation under subparagraph (d) hereof, a certification
which states the reason/s for the termination of the migrant worker's
employment and the need for his or her repatriation shall be issued
by the Philippine foreign post or the Philippine Overseas Labor
Office (POLO) located in the receiving country.

For subsistence allowance benefit under subparagraph (e), the
concemed labor attaché or. in his absence, the embassy or


consular official shall issue a certification which states the name of
the case, the names of the parties and the nature of the cause of
action of the migrant worker.

For the payment of money claims under subparagraph [f). the
following rules shall govern:

(1) After a decision has become final and executor or
a settlement/compromise agreement has been
reached between the parties at the NLRC, an order
shall be released mandating the respondent
recruitment/manning agency to pay the amount
adjudged or agreed upon within thirty (30) days:

(2) The recruitment/manning agency shall then
immediately file a notice of claim with its insurance
provider for the amount of liability insured, attaching
therewith a copy of the decision or compromise
agreement;

(3) Within ten (10) days from the filing of notice of
claim, the insurance company shall make payment to
the recruitment/manning agency the amount
adjudged or agreed upon, or the amount of liability
insured, whichever is lower. After receiving the
insurance payment, the recruitment/manning agency
shall immediately pay the migrant worker's claim in full,
taking into account that in case the amount of
insurance coverage is insufficient to satisfy the amount
adjudged or agreed upon, it is liable to pay the
balance thereof;


(4) In case the insurance company fails to make
payment within ten (10) days from the filing of the
claim, the recruitment/ manning agency shall pay the
amount adjudged or agreed upon within the
remaining days of the thirty (30)-day period, as
provided in the first subparagraph hereof;

(5) If the worker's claim was not settled within the
aforesaid thirty (30}-day period, the
recruitment/manning agency's performance bond or
escrow deposit shall be forthwith garnished to satisfy
the migrant worker's claim;

(6) The provision of compulsory worker's insurance
under this section shall not affect the joint and solidary
liability of the foreign employer and the
recruitment/manning agency under Section 10;

(7) Lawyers for the insurance companies, unless the
latter is impleaded, shall be prohibited to appear
before the NLRC in money claims cases under this
section.

Any question or dispute in the enforcement of any insurance policy
issued under this section shall be brought before the IC for
mediation or adjudication.

In case it is shown by substantial evidence before the POEA that the
migrant worker who was deployed by a_ licensed
recruitment/manning agency has paid for the premium or the cost
of the insurance coverage or that the said insurance coverage was


used as basis by the recruitment/manning agency to claim any
additional fee from the migrant worker, the said licensed
recruitment/manning agency shall lose its license and all its
directors, partners, proprietors, officers and employees shall be
perpetually disqualified from engaging in the business of
recruitment of overseas workers. Such penalty is without prejudice
to any other liability which such persons may have incurred under
existing laws, rules or regulations.

"For migrant workers recruited by the POEA on a government-to-
government arrangement, the POEA shall establish a foreign
employers guarantee fund which shall be answerable to the
workers’ monetary claims arising from breach of contractual
obligations. For migrant workers classified as rehires, name hires or
direct hires, they may opt to be covered by this insurance coverage
by requesting their foreign employers to pay for the cost of the
insurance coverage or they may pay for the premium themselves.
To protect the rights of these workers, the POEA shall provide them
adequate legal assistance, including conciliation and mediation
services, whether at home or abroad.

At the end of every year, the Department of Labor and
Employment and the IC shall jointly make an assessment of the
performance of all insurance providers, based upon the report of
the NLRC and the POEA on their respective interactions and
experiences with the insurance companies, and they shall have the
authority to ban or blacklist such insurance companies which are
known to be evasive or not responsive to the legitimate claims of
migrant workers. The Department of Labor and Employment shall
include such assessment in its year-end report to Congress.


For purposes of this section. the Department of Labor and
Employment, IC. NLRC and the POEA, in consultation with the
recruitment/manning agencies and legitimate non-government
organizations advocating the rights and welfare of overseas Filipino
workers, shall formulate the necessary implementing rules and
regulations.

The foregoing provisions on compulsory insurance coverage shall
be subject to automatic review through the Congressional
Oversight Committee immediately after two (2) years from the
effectivity of this Act in order to determine its efficacy in favor of the
covered overseas Filipino workers and the compliance by
recruitment/manning agencies and insurance companies, without
prejudice to an earlier review if necessary and warranted for the
purpose of modifying, amending and/or repealing these subject
provisions.

SECTION 6. IMPLEMENTING RULES AND REGULATIONS. - The
departments and agencies charged with carrying out the provisions of
this Act shall, within sixty (60) days after the effectivity of this Act, formulate
the necessary rules and regulations for its effective implementation.

SECTION 7. REPEALING CLAUSE. - All laws, decrees, executive orders,
tules and regulations, or parts thereof inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

SECTION 8. SEPARABILITY CLAUSE. - |i, for any reason, any section or
provision of this Act is held unconstitutional or invalid, the other sections or
provisions hereof shall not be affected thereby.


SECTION 9. EFFECTIVITY CLAUSE. - This Act shall take effect after
fifteen (15) days from its publication in the Official Gazette or jn at least
two (2) national newspapers of general circulation whichever comes
earlier.

Approved,