INTRODUCED BY SEN. 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 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. 
c___) 
Senator 


S E N A T E  
Senate Bill No. 502 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 
earners, particularly the disadvantaged/speciaI 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 disadvantagedkpecial 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 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. 
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; 
Approve 
employment 
programs and 
projects 
to 
be 
implemented by the Authority; 
c) 
Promulgate 
rules 
and 
regulations 
for 
the 
effective 
implementation of this Act; 
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 
Perform such other functions and powers as may be authorized 
by law. 
b) 
d) 
e) 


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. 
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. 
a) 
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. 
e) 
Personnel Complement. - The existing manpower complement 
of the three (3) merger 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, law, decrees, executed 
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 ad 
publication in at least two (2) national newspapers of general circulation. 
Approved,