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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Fifteenth Congress
‘SECOND REGULAR SESSION

nouse BHLNo. 5331
Introduced by

a Gabriela Women’s Party
Representatives Luzviminda C. Iagan and Emmi A. De Jesus

EXPLANATORY NOTE

Labor export as a prime development strategy of the Philippines has never been as
challenged with the recent labor situation developments in the Middle East, Stricter
implementation of the labor nationalization in Saudi Arabia as well as the hiring ban of
domestic service workers from the Philippines has posed a threat to around 1.8 million OFWs
hosted by Saudi Arabia. This, after the series of civil unrest leading to the armed crises in the
Middle East and North Africa especially in Egypt, in Yemen, in Libya and in Syria, which
has led to emergency repatriation of Overseas Filipino Workers (OFWs) trapped in the
chaos. Earlier this year, emergency repatriation also had to be done for Filipino nationals
affected by the devastating earthquake in New Zealand and the tsunami and nuclear disasters
in Japan.

Republic Act No. 8042, “Migrant Workers and Overseas Filipinos Act of 1995,” as
amended by RA 9422 and RA 10022, along with the Overseas Workers Welfare
Administration (OWWA) Omnibus Policies, mandates the formulation and implementation
of welfare programs for OFWs. Government agencies are tasked to provide welfare services
such as counseling and legal assistance for overseas Filipinos in distress and welfare
assistance including the procurement of medical and hospitalization services. Support
programs including livelihood, entrepreneurship, savings, investments and financial literacy
for returning OFWs and their families are also mandated in the current laws on overseas
Filipinos.

Recently, the Department of Labor and Secretary Rosalinda Dimapilis-Baldoz
distributed 10,000 each to OFW returnees of Region 10 who have been displaced from
Libya, Madagascar, Qatar and other Middle East countries due to political unrest in the
region. OWWA Administrator announced that a “modest” financial grant of 210,000 each
awaits OFWs who will be repatriated from Syria. While this is a welcome move from
OWWA, such amount will hardly be of help to distressed OFWs forced home by an
emergency situation from their host country. Their unplanned homecoming means piling up
of unpaid obligations contracted in the pursuit of their failed job abroad as well as those
necessary for the survival of their families in the face of joblessness.

While laws on overseas work provide that the Philippine government protect its
workers and mandate the provision of services to OFWs, no law expressly provides that a
mandatory amount of financial assistance shall be given to OFWs in distress or those
repatriated due to natural or man-made calamities or to any reason other than termination of
contract to work. The laws are silent on the specific welfare services and benefits aside from

sEPRESEN

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repatriation in cases of natural and man-made calamities in host countries. Thus, in each and
every case of collective involuntary repatriation, the OWWA Board decides on whether
financial grant and what amount shall be given to identified beneficiariaries.

In 2009, OWWA reported a total of 1,479,070 processed Overseas Contract Workers.
This means a total of US$36,976,975 (P1,553,032,950) OWWA collection for compulsory.
membership fee for 2009 alone.

Unfortunately, the huge state exactions from OFWs in the form of compulsory
membership fee are not used mainly for the provision of services but more for its operations
and investment ventures. This, despite the number of OFWs previously displaced by
emergency situations in the past, including those repatriated for various reasons including
distressful situations such as abusive employment, human trafficking and illegal recruitment.

A study made by the United Filipinos (UNIFIL) in Hong Kong reveals that for
every B10 spent by OWWA, P8.80 goes to business and investments, while only sixty
centavos are spent for the welfare of the OFWs. ‘The mandatory insurance coverage as
provided by Republic Act No. 10022 or the amended Migrant Workers and Overseas
Filipinos Act of 1995, in effect, relieves OWWA as the agency primarily responsible for
providing major welfare services to OFWs, i.c., accidental and natural death benefit,
permanent total disablement, repatriation, subsistence allowance for workers involved in a
case of litigation for the protection of his/her rights in the receiving country, compassionate
visit and medical evacuation and repatriation. This places OWWA in a better position to
provide for badly needed welfare services not covered by the compulsory insurance, such as
emergency unemployment benefit for all displaced OFWs, including the non-documented.

In view of these, a law mandatorily providing for such benefit is needed. Approval
of this Bill, therefore, is earnestly sought.

Approved.

Mypeni e. ue
Li jinda C. Hagan / Emmi A. De Jesas.
fabriela Women’s Party Gabriela Women’s Party


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Fifteenth Congress
SECOND REGULAR SESSION

HOUSE BILL NO. 5 33 1
Introduced by:

Gabriela Women’s Party
Representatives Luzviminda C. Hagan and Emmi A. De Jesus

AN ACT PROVIDING FOR FINANCIAL ASSISTANCE FOR DISTRESSED
OVERSEAS FILIPINO WORKERS (OFWs)

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
Assembled:

Section 1. Declaration of Principles. The state shall at all times uphold the dignity and
promote the welfare of all its migrant workers, whether documented or non-documented, It
recognizes that OFWs are forced to seek employment abroad in order to survive in the face of
the rising unemployment at home. Their continuing aggravated and disadvantaged position
as job seekers in the exploitative employment market abroad places them in extremely
vulnerable and distressing situations not only during natural and man-made calamities, but
also as a consequence of employment policy changes in receiving countries. The State
therefore endeavors to alleviate their situation by providing financial assistance which will
hopefully help tide them over during their most difficult time.

Section 2. Financial Assistance for Distressed OFWs. The Financial Assistance for
Distressed OF Ws he rein referred to shall mean a lump sum of 250,000 given to distressed
OFWs within seven days after filing of application.

Section 3. Distressed OFWs. Distressed OFWs shall refer to all Filipino Nationals who lost
their jobs and were forced by circumstances to return to the country. The term shall include
but shall not exclusively mean those who have been sexually abused, those who have run
away from their employers, those who have been repatriated from host countries hit by
natural and man-made calamities, including civil disorders, those who have sought refuge at
Welfare Centers and those who have been found stranded anywhere in host countries where
‘they intended to seek employment, whether documented or non-documented.

Section 4. enting Agency and Funding. The Overseas Workers Welfare
Administration (OWWA) is hereby tasked to implement this Act. The Financial Assistance
for Distressed OFWs as provided for in this Act shall form part of the OWWA program
package for Distressed OF Ws and shall be charged against the funds of the agency.

Section 5. Penalties. Any employee found to have caused the delay of the release of the
Financial Assistance for Distressed OFWs within seven (7) days after filing of application
shall be subject to the penalties ranging from 90-day suspension to dismissal from the service
with disqualification to hold any appointive public office for five years as determined in the
Implementing Rules and Regulations.


Section 6. Implementing Rules and Regulations. The Implementing Rules and Regulations
for this Act shall be issued by OWWA within six months after approval of this bill.

Section 7. Repealing Clause. All other laws, decrees, rules and regulations, orders, issuances
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 8. Effectivity Date. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any newspaper of general circulation in the Philippines.