THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
Introduced by Senator Juan M. Flavier 
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. In this light, there ought to be a deliberate effort on 
the part of govenment 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. 


~. 
THIRTEENTH CONGRESS OF THE 
) 
First Regullar Session 
) 
REPUBLIC OF THE PHILIPPINES ) 
::i 
17 Ftj{j E P ~  c. 
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S E N A T E  
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Introduced by Senator Juan M. Flavier 
AN ACT CREATING THE LOCAL EMPLOYMENT AUTHORITY, 
DEFlNlSG 1TS POWERS AND FUNCTTONS 
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 regardless 
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 factions: 
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 disadvantagedispecial groups of 
workers and their communities such as, 
but not limited to women, young 
workers, working children, rural and 
agricultural workers, informal sector 
worlters, 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 
disadvantagedispecial 
groups 
of 
workers; 
7. Set standards which shall project the 
welfare of the disadvantagedispecial 
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 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 disadvantagedkpecial 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. 


SEG. 4. Governing Boarq. - A Governing Bpqd pQr;lposed of #e Secretary of 
Labor and Employqent as ex-officio phairman, aqd the kppretaries of tbe Natippql 
Econov/c kq-4qPment AU~&PT/{Y, 
DepaStqunt of Trade at74 Industry, Dep+rtmqt ~f 
4faricullve, yd the QiTctor qpneral as ex-officio members $all manage the Authority. 
President shall appoint one (1) repyesgq{@ive ea@$ $?om [be 
sectqrs, who shall hold office far'Qree (3) yews. 
Tpe E+xyq shall meet once 4 ponth or as often as deemed necessary. The Bsard 
C&+irmiul and Members shall .receive per diems for each paqljng actualiy attended in 
sqch amount as may be fixed by the Governing Board. 
I
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SFc. 5. Powers o f  the C$veWing Board. - The Governing Board shall have tbg 
following powers an4 functions: 
, .  
a) 
b) 
Recommend to the President of the Reppblic of the Philippines for 
Approve employment programs and pr6jeats to be implemented by the 
approval a comprehensive Employment Plan; 
Authority; 
c) 
Promulgate rules and regulations for the%fective 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 
e) 
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 o f  Women and Young Workers shall be merged to give way for the creation of 
the Authority. The following shall comprised the Authority: 
4 
(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 o f  a Department Assistant 
Secretary, in implementing and canying 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. 
(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 retiremenu retrenchment package as may be 
authorized by law. 


SEG 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 contrary 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,