THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
Second Regular Session 
1 
S.B. sENATg 
No. 
10 4 
5 AUG 31 P3:oi 
FIECEIVED 8Y : 
~~ 
Introduced by Senator Miriam Defensor Santiago 
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 13.7% and underemployment rate to 18.5% in 2004, indicating a weak 
labor market, The unemployment scenario is expected to get worse, with substantial loss of job 
opportunities and income. 
It has also been observed that the current efforts to generate local employment are 
dispersed. There is a need to consolidate all efforts towards addressing the specific needs and 
abilities of the various sectors that compete for limited employment opportunities. 
Thus, 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 seeks the creation of a Local Employment Authority (LEA), as an attached 
agency o f  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. As a result, three bureaus of the DOLE, namely: the 
Bureau of Local Employment, Bureau of Rural Workers and Bureau of Women and Young 
Workers, shall be collapsed. 
The purpose of the creation of one body is to synergize the employment programs and 
services of the three bureaus, and foster cohesiveness in the promotion and facilitation of local 
. employment. 


However, it is recognized that the disadvantagedhpecial groups these bureaus represent 
, are vulnerable to exploitation and abuse; therefore, the LEA this body shall continue the 
protection functions of its predecessors. 
This bill serves as a deliberate effort on the part of government to improve the total 
Philippine employment picture and support the President’s top priority of creating six to ten 
million jobs under her administration. 


5 4% 31 !'j:[): 
THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
c 
flECEIVED BY: 
- 
SENATE 
S.B. No. 3 
4 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
CREATING THE LOCAL EMPLOYMENT AUTHORITY, DEFINING ITS 
POWERS AND FUNCTIONS AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the 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. 
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 havo the following powers 
and functions: 
(a) Formulate policies, standards and procedures and systems for human resource 
development, allocation, utilization, and referral and placement Eor both wage and non- 
wage employment; 
(b) Establish and maintain coordinative linkage with the private sector to 
facilitate employment promotion and generation; 


(c) 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; 
(d) Establish and maintain a registration or work permit system in aid of proper 
manpower and development planning; 
(e) Formulate employment policies, standards and procedures and programs 
designed to benefit and protect both wage and non-wage earners, particularly the 
disadvantagedspecial 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; 
(9 Formulate policies and promulgate orders, rules and regulations implementing 
the provisions of the Labor Code affecting in particular the disadvantaged/special groups 
of workers; 
(8) Set standards which shall protect the welfare of the disadvantagedkpecial 
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; 
(h) Take all appropriate measures to eliminate discrimination against women in 
the field of employment in order to ensure, on a basis of equality of men and women, the 
same rights and opportunities; 
(i) Ensure the Philippines’s compliance with its international obligations as 
embodied in international agreements entered into, which affect women, children and 
other disadvantaged/special groups; 
0) 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; 
(k) Undertake development studies and researches on employment promotion, 
facilitation and enhancement, and submit recommendations to the Governing Board; 
*
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(1) Undertake studies on the training needs of the disadvantagedspecial groups of 
workers and develop programs and projects to enhance their productivity and 
employability, and effective participation in community development; 
(m) Provide legal and technical assistance on matters relating to the employment 
of both wage and non-wage earners; 
(n) Coordinate, monitor and evaluate employment interventions of all 
government instrumentalities; 
(0) Act as the government’s clearing house of all infomation relating to local 
employment; and 
(p) Perfom 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 o f  the Secretary of 
Labor and Employment as ex-officio chairman, and the Director-General of the National 
Economic Development Authority, the Secretaries of Department of Trade and Industry, 
Department of Agriculture, and the Director General of the Authority as ex-officio members 
shall manage the Authority. 
In addition, the President shall appoint one (1) representative each from the 
employerhndustry 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 5 .  Powers of the Governing Board. - The Governing Board shall have the 
following powers and functions: 
(a) Recommend to the President of the Republic of the Philippines for approval a 
comprehensive Employment Plan; 
(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) 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. 
SECTION 6. Structure. - Three Bureaus under the DOLE 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. The following shall comprise 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 
he 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. 


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 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. 
I 
Approved,