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i 
THIRTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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S E N A T E  
S.B. No. 
Introduced by SENATOR LUISA “LOI” P. EJERCITO ESTFUDA 
EXPLANATORY NOTE 
Deregulation appears to be the buzzword in today’s economic and socio-political 
arena. In fact, it is singled out as the key element in maximizing the potentials of a free 
market economy, under democratic setting and conditions. 
Certainly, deregulation, as not a few experts have pointed out, should be pursued 
extensively for too much state regulation stifles economic growth as it discourages 
private sector participation in economic initiatives. Regulation, they say, is among the 
major reasons for the country’s failure to attract major investments both here and abroad. 
Unfortunately, the benefits of deregulation could not fully be realized and 
actualized in our country. Given the flaws in our legal and political systems, private 
enterprises use deregulation instead as a means ironically to monopolize instead of 
liberalize, and abuse instead of encourage growth of industries. 
Such is the case of our overseas employment recruitment industry. With the 
enactment of R.A. 8042, a.k.a. the “Migrant Workers and Overseas Filipinos Act of 
1995,” providing for deregulation as a matter of policy, noting that migration of workers 
should strictly be a matter between the worker and his foreign employers, many of our 
overseas employees have been abused and made to go through unjust labor conditions. 
While it may - albeit no reliable empirical data could confirm this - have resulted into 
intensified recruitment of Filipino workers as more and more foreign companies are 
eiicouraged to hire locals on account of less government interference, deregulation has 
crippled the government in terms of providing ample protection to our employees against 
any possible form of labor abuse. 
In order to address this issue, the proposed measure aims to abolish deregulation 
in the area of overseas eniployment and provide instead a reasonable amount of 
government regulation in order to guarantee that our overseas employees are at all times 
protected, their welfare upheld and their interests promoted. 
Hence, immediate passage of this proposed measure is earnestly sought. 
LUISA “LOI” P. 
ESTRADA 


Introduced by SENATOR LUISA “LOI” P. EJERCITO ESTRADA 
AN ACT 
STRENGTHENING THE REGULATORY FUNCTIONS OF THE PHILIPPINE 
OVERSEAS EMPLOYMENT ADMINISTRATION (POEA) AMENDING FOR THIS 
PURPOSE REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE “MIGRANT 
WORKERS AND OVERSEA§ FILIPINOS ACT OF 1995” 
Be it enacted by the Seiicite and House of Representatives of the Philippines in Congress 
Assein bled: 
SECTION 1. Section 23, paragraph (b. 1) of Republic Act No. 8042, otherwise 
known as tlie “Migrant Workers and Overseas Filipinos Act of 1995” is hereby amended 
to read as follows: 
“(be I) Philippine Overseas Employment Administration 
- [Subject to 
deregulation and phase-out as provided under sections 29 and 30, herein] The 
Administration shall regulate private sector participation in the recruitment and overseas 
placement of workers by setting up a licensing and registration system. It shall also 
formulate and implement, in coordination with appropriate entities concerned, when 
necessary, a system for promoting and monitoring the overseas employment of Filipino 
workers taking into consideration their welfare and the domestic manpower 
requirements. ‘I 
SEC. 2. Section 29 of the same law is hereby repealed. 
“[Sec. 29. Comprehensive Deregulation Plan on Recruitment Activities.- 
Pursuant to a progressive policy of deregulation whereby the migration of workers 
becomes strictly a matter between the worker and his foreign employer, tlie DOLE, 
within one (1) year from the effectivity of this Act, is hereby mandated to formulate a 
five-year comprehensive deregulation plan on recruitment activities taking into account 
labor market trends, econoinic conditions of the country and emerging circumstances 
which may effect the welfare of migrant worlters.] 


SEC. 3. Section 30 of the same law is hereby repealed. 
"[Sec. 30. Gradual phase-out of Regulatory Functions Within a period of five (5) 
years from the effectivity of this Act, the DOLE shall phase-out the regulatory functions 
of the POEA pursuant to the objectives of deregulation.]" 
SEC. 4. All laws, orders, issuances, rules or regulations or part thereof 
inconsistent with the provisions of this Act are hereby repealed, amended or modified 
accordingly. 
SEC. 5. This Act shall take effect within fifteen (15) days after its publications in 
the Official Gazette- or in at least two (2) newspapers of general circulation, whichever 
collies earlier. 
Approved, 
c:\prec y\overseas worker\2646