,.:I 
iTi::T 
.! - 
“ , ‘ 9  
.I!! 
THIRTEENTH CONGRESS OF THE 
1 
J 
i; 
~ ! / . ’  
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
S E N A T E  
~ 
Introduced by SENATOR JINGGOY EJERCITO ESTRADA 
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 Mo-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 tlus reason, the immediate approval of this bill is earnestly sought, 
RCITO ESTRAD I 
Senator 


-. 
t-, 
,:y3 
T!; 
'.'<'>.(lR 
I .~ 
I 
t:.. 
lib, 
THIRTEENTH CONGRESS OF 
1 
1 
First Regular Session 
1 
THE REPUBLIC OF THE PHILIPPINES 
S E N A T E  
S.B. No. ' 192:@ 
~ 
~~~~ 
~~ 
Introduced by Senator JINGGOY EJERCITO ESTRADA 
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 
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 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; 
Establish and maintain a registration or work permit system in aid of 
proper manpower and development planning; 
Formulate employment policies, standards and procedures and 
programs designed to benefit and protect both wage and non-wage 
4. 
5. 


? 
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; 
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 
Groject 
the 
welfare 
of 
the 
disadvantaged/special groups of workers, improve their working 
conditions, increase their ef6icienc7, secure opportunities for their 
gainful and productive employmgnt and find ways for their 
economic, educational, social and cultural advancement; 
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;,, 
Undertake development studies .and researches on employment 
promotion, 
facilitation 
and i 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; 
Provide legal and technical assistance on matters relating to the 
employment of both wage and non-wage earners; 
Coordinate, monitor and evaluate employment interventions of all 
government instrumentalities; 
Act as the government's clearing house of all information relating to 
local employment; and 
Perform such other functions as may be assigned by the Governing 
Board or as may be provided by faw. 
6. 
8. 
.: 
9. 
11. 
12. 
13. 
14. 
SEC. 4. Governing Board. - A Governihg Board composed of the Secretary 
of Labor and Employment as ex-officio chairman, and the Secretaries of the 
National Economic Development Authoyity,,'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. 
! 
SEC. 5. Powers of the Governing Board. - The Governing Board shall have 
the following powers and functions: 
i ,  
a) Recommend to the President of the Republic of the Philippines for 
approval a comprehensive Employment Plan; 
r 


b) Approve employment programs and projects to be implemented by 
the Authority; 
c) Promulgate rules and regulations for the effective implementation of 
this Act; 
d) Monito r 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 of Women and Young Workers shall be merged to give 
way for the creation of 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. 
(d) Regional Operations. - The DOLE Regional Offices shall continue to be 
the implementing arm for the national employment program at the regional 
level. 
I 
(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. 
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 


i 
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,