SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

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HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodrigue!
_ Representative Maximo B. Rodriguez, Jr.

House Bill No. 2506

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. There ought to be
a deliberate effort on the part of government to improve the employment
situation of the country.

To effectively address this problem, 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

3)
RECEIVED %
pore 27 AUG_ 2013. *


SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 2506

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 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 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 developing planning;

5. Formulate employment policies, standards and procedures and
programs designed to benefit and protect both wage and non-wage
eamers, 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;


6. 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 project the welfare of the
disadvantaged/special 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 disadvantaged/special
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.

SEC 4. Governing Board ~ A Governing Board composed of the Secretary of
Labor and Employment as ex-officio chairman, and the Director General of the
National Economic Development Authority, the Secretaries of the Department
of Trade and Industry and the Department of Agriculture 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:

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;

°) 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.

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 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.

b) 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.

°) Regional Operations. - The DOLE Regional Offices shall
continue to be the implementing arm for the national employment program at
the regional level

d) 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 of 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 necessary for the operations of the Authority shall be included in the
General Appropriations Act

SEC 8. Repealing Clause. - All other provisions, laws, 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,