Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session

HOUSE BILL no. 2216

Introduced by Representative Michael L. Romero

EXPLANATORY NOTE

It is imperative for the republic of the Philippines to realign its resources and
funding to be more responsive to the needs of our Overseas Filipino Workers.

The state is cognizant to create a department that can take full charge of their
employment repatriation, whenever and wherever the need arises.

This House Bill seeks to create a more effective institution better geared to meet
the needs of the country’s Overseas Workers, to support a comprehensive and

continuing development plan, to provide adequate funding, and defining its
powers and functions.

Earnest approval of thjs‘bill is hereby requested.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
. First Regular Session

2216
HOUSE BILL NO. ~~~

Introduced by Representative Michael L. Romero

AN ACT

CREATING THE DEPARTMENT OF OVERSEAS WORKERS,
RATIONALIZING THE ORGANIZATION AND FUNCTIONS OF
GOVERNMENT AGENCIES RELATED TO OVERSEAS
EMPLOYMENT, AND FOR OTHER PURPOSES

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

CHAPTER I
GENERAL PROVISIONS

SECTION 1. SHORT TITLE. - This Act shall be known as the
“Department of Overseas Workers Act”.

SECTION 2. DECLARATION OF POLICIES:

(a) In the pursuit of an independent foreign policy and while
considering national sovereignty, _ territorial integrity,
national interest and the right to self-determination
paramount in its relations with other states, the State shall,
at all times, uphold the dignity of its citizens, whether in the
country or overseas, in general, and Filipino migrant
workers, in particular, continuously monitor international


conventions, adopt/be signatory to and ratify those that
guarantee protection to our migrant workers, and endeavor
to enter into bilateral agreements with countries hosting
overseas Filipino workers.

(b) The state shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for
all. Towards this end, the State shall provide adequate and
timely social, economic and legal services to Filipino migrant
workers.

(c) While recognizing the significant contribution of Filipino
migrant workers to the national economy through their
foreign exchange remittances, the State does not promote
overseas employment as a means to sustain economic
growth and achieve national development. The existence of
the overseas employment program rests solely on the
assurance that the dignity and fundamental human rights
and freedoms of the Filipino citizens shall not, at any time,
be compromised or violated. The State, therefore, shall
continuously create local employment opportunities and
promote the equitable distribution of wealth and the benefits
of development.

(d) The State affirms the fundamental equality before the law of
women and men and the significant role of women in nation
building. Recognizing the contribution of overseas migrant
women workers and their particular vulnerabilities, the State
shall apply gender sensitive criteria in the formulation and
implementation of policies and programs affecting migrant
workers and the composition of bodies tasked for the welfare
of migrant workers.

() Free access to the courts and quasi-judicial bodies and
adequate legal assistance shall not be denied to any person
by reason of poverty. In this regard, it is imperative that an
effective mechanism be instituted to ensure that the rights
and interest of distressed overseas Filipinos, in general, and
Filipino migrant workers in particular, whether or not with
the required documentation, are adequately protected and
safeguarded.

() The right of Filipino migrant workers and of all overseas
Filipinos to participate in the democratic decision-making
process of the State and to be represented in institutions
relevant to overseas employment is recognized and
guaranteed.

(g) The State recognizes that the most effective tool for
empowerment is the possession of skills by migrant workers.
The government shall expand skills development and


enhancement programs of the concerned agencies and shall
facilitate access of overseas Filipino workers to these
Programs through scholarships and/or _ training
subsidies/grants. Pursuant to this and as soon as
practicable, the government shall deploy and/or allow the
deployment only of skilled Filipino workers.

(h) The State recognizes that non-governmental organizations,
trade unions, workers associations, and other similar duty
accredited entities, are partners of the State in the protection
of Filipino migrant workers and in the promotion of their
welfare. The State shall cooperate with them in a spirit trust
and mutual respect. The significant contribution of

recruitment and manning agencies shall form part of this
partnership.

SECTION 3. DEFINITION OF TERMS. - The following terms, as used in
this Act, shall mean:

(a) “Act” refers to the “Department of Overseas Workers Act”;

(b) “Authority” refers to a document issued by the Secretary
authorizing the officers, personnel, agents, or representatives
of, a licensed recruitment/manning agency to conduct
recruitment and placement activities as a private
recruitment entity;

(c) “Bonafide Non-Government Organizations (NGO)” refers to
non-government or civil society or faith-based organizations
duly recognized by the Philippine Embassy as active partners
of the Philippine Government in the protection of Filipino
migrant workers and the promotion of their welfare;

(d) “Contracted Workers” refers to Filipino with employment
contracts already approved by the Department for overseas
deployment;

(€) “Direct Hires” refers to workers directly hired by the
employers for overseas employment as authorized by the
Secretary of Labor and Employment and processed by the
Department, including:

1. Those hired by International organizations;
2. Those hired members of the diplomatic corps; and
3. Name hires or workers who are able to secure overseas
employment opportunity with an employer without the
. _assistance or participation of any agency;

() “Employment Contract” refers to the following:

(g) “Service Contractor” refers to any person partnership or
corporation, as defined under the Corporation Code, duly
licensed as a private recruitment agency by the Secretary to



recruit workers for its accredited projects or contracts
overseas;

(h) “Gender Sensitivity” is the recognition of the inequalities and
inequities prevalent in society between women and men and
a commitment to address these concerns;

(i) “Head” or “Manage” refers to any of the following acts:

1. Control and supervise the operations of a
recruitment/manning agency or branch thereof of
which they are employed; or

2. Exercise the authority to hire or fire employees and lay

* down the execute management policies of a
recruitment/manning agency or branch thereof;

@) “Joint and Several Liability” refers to the liability of the
foreign principal/employer and the recruitment/manning
agency, for any and all claims arising out of the
implementation of the employment contract involving
Filipino workers for overseas deployment. If the
recruitment/manning agency is a juridical entity, the
corporate officers and directors and partners, as the case
may be, shall themselves be jointly and severally liable with
the corporation or partnership for the aforesaid claims and
damages;

(k) “Irregular/Undocumented Filipino Workers” refers to the
following:

(1) Those who acquired their passports through fraud or
misrepresentation;

(2) Those who possess expired visas or permits to stay;

(3) Those who have no travel document whatsoever;

(4) Those who have valid but inappropriate visas; or

+ (5) Those whose employment contracts were not
processed by the Department or subsequently verified
and registered on-site by the Philippine Overseas
Labor Offices (POLOs), if required by law or regulation;

() “Licensed” refers to the document issued by the Secretary
authorizing a person, partnership or corporation to operate a
private recruitment/manning agency;

(m) “Manning Agency” refers to any person, partnership or
corporation duly licensed by the Secretary to engage in the
recruitment and placement of seafarers for ships plying
international waters and for related maritime activiti Ss;

(n) “Non-licensee” refers to an Overseas Filipino who has a
medical, psycho-social or legal assistance problem requiring
treatment, hospitalization, counselling, legal representation,
or any other kind of intervention with the authorities in the
country where he or she is found;


(0) “Overseas Filipinos” refers to migrant workers, other Filipino
nationals and their dependents abroad;

(p) “Overseas Filipino is Distress” refers to an Overseas Filipino
who has a medical, psycho-social or legal assistance problem
requiring treatment, hospitalization, counselling, legal
representation, or any other kind of intervention with the
authorities in the country where he or she is found;

(q) “Overseas Filipino Worker” or “Migrant Worker” refers to a
person who is to be engaged, is engaged, or has been
engaged in a remunerated activity in a state of which he or
she is not a citizen, or on board a vessel navigating foreign
seas other than a government ship used for military or non-
commercial purposes, or on an installation located offshore
or on the high seas. A “person to be engaged in a
remunerated activity” refers to an applicant worker who has
been promised or assured employment overseas;

(=) “Placement fees” refers to any and all amounts charged by a
private recruitment/manning agency from a worker for its
recruitment and placement services as prescribed by the
Secretary;

(s) “Principal” refers to a foreign employer or placement agency
hiring or engaging Filipino workers for overseas employment
through a licensed private recruitment/manning agency;

(t) “Private Recruitment/Employment Agency” refers to any
person, partnership or corporation duly licensed by the
Secretary to engage in the recruitment and placement of
workers for overseas employment for a fee which is charged,
directly or indirectly, from the workers who renewed their
employment contracts with the same principal;

(u) “Rehires” refers to land-based workers who renewed their
employment contracts with the same principal;

(v) “Regular/Documented Filipino Overseas Migrant Workers”
refers to the following:

(1) Those who possess valid passports and appropriate
visas or permits to stay and work in the receiving
country; and

(2) Those whose contracts of employment have been
processed by the Department, or subsequently verified
and registered on-site by the POLO, if required by law
or regulation;

(w) “Seafarer” refers to any person who is employed or engaged
in overseas employment in any capacity on board a ship
other than a government ship used for military or non-
commercial purposes. The definition shall include fisherfolk,


cruise ship personnel, and those serving on mobile offshore
and drilling units in the high seas;

(x) “Secertary” refers to the Secretary of the Department of
Overseas Workers;

(y) “Skilled Filipino Workers” refers to those who have obtained
an academic degree, qualification, or experience, or those
who are in possession of an appropriate level of competence,
training and certification, for the job they are applying, as
certified to by the appropriate government agency; and

(2) “Underaged Migrant Workers” refers to those who are below
18 years old or below the minimum age requirement for
overseas employment as determined by the Secretary.

SECTION 4. DEPARTMENT OF OVERSEAS WORKERS. - To implement
the above declared policies, there is hereby created the Department of
Overseas Workers, hereinafter referred to as the Department, which shall
Prepare, integrate, coordinate, supervise, and control all plans, programs,
Projects, and activities of the Government relative to overseas employment.

SECTION 5. POWERS AND FUNCTIONS - The Department shall be the
lead government agency responsible for the formulation and implementation
of policies and programs for the overseas employment of Filipino workers. In
coordination with appropriate entities, it shall formulate and undertake a
systematic program for promoting and monitoring the overseas employment
of Filipino workers, including seafarers, taking into consideration domestic
manpower requirements and the need to protect their rights to fair and
equitable employment practices. It shall have original and exclusive
Jurisdiction over all cases involving employer-employee relations,
documented or undocumented/irregular workers, arising out of or by virtue
of any law or contract involving Filipino workers for overseas employment.

CHAPTER II
THE DEPARTMENT PROPER


SECTION 6. COMPOSITION ~ The Department Proper shall be composed
of the Office of the Secretary and the Offices of the Undersecretaries and
Assistant Secretaries, and divisions of the Department. The Secretary,

Undersecretaries, and Assistant Secretaries shall be appointed by the
President.

SECTION 7. OFFICE OF THE SECRETARY - The Office of the Secretary
shall consist of the Secretary and his immediate staff.

The Secretary shall have the following powers and functions:

(1) Establish the policies and standards for the operation of the
Department pursuant to the approved programs of government;

(2) Promulgate rules and regulations necessary to carry out
department objectives, policies, functions, plans, programs and
projects;

(3) Promulgate administrative issuances necessary for the efficient
administration of the offices under the Secretary and for proper
execution of the laws relative thereto. These issuances shall not
prescribe penalties for their violation, except when expressly
authorized by law;

(4) Exercise disciplinary powers over officers and employees in
accordance with law, including the conduct of investigations or
designation of a committee or officer to conduct such
investigation;

(5) Appoint all officers and employees of the Department except
those whose appointments are vested in the President or in
some other appointing authority; Provided however, That where
the Department is regionalized on a department-wide basis, the
Secretary shall appoint employees to positions in the second
level in the regional offices as defined in the Administrative
Code’ of 1987;

(6) Exercise jurisdiction over all bureaus, offices, agencies, and
corporations under the Department as are provided by law, and
in accordance with the applicable relationships as specified in
Chapters 7, 8, and 9 of the Administrative Code of 1987;

(7) Delegate authority to officers and employees under the
Secretary’s direction in accordance with this Act; and

(8) Perform such other functions as may be provided by law.

SECTION 8. THE UNDERSECRETARIES - The Secretary shall be
assisted by four (4) Undersecretaries, one each for the International Labor


Affairs Office, the Funds and Investment Management Office, the Licensing
and Regulation Office, and for the Employment and Welfare Office.

A. The general functions of the Undersecretaries are as follows:
1) Advice and assist the Secretary in the formulation and

2

3)

4)

5)

implementation of department objectives and policies;
Oversee all the operational activities of the department for
which he shall be responsible to the Secretary;

Coordinate the programs and projects of the department
and be responsible for its economical, efficient and
effective administration;

Serve as deputy to the Secretary in all matters relating to
the operations of the department;

Temporarily discharge the duties of the Secretary in the
latter’s absence or inability to discharge his duties for any
cause, or in case of vacancy of the said office, unless
otherwise provided by law. Where there are more than
one undersecretary, the Secretary shall allocate the
foregoing powers and duties among them. The President
shall likewise make the temporary designation of Acting
Secretary from among them; and

6) Perform such other functions and duties as may be

provided by law.

B. Special Functions
1) Undersecretary for International Labor Affairs Office shall

advise the Secretary on the various international labor
agreements to which the government is a party and
monitor our compliance therewith. He/she shall exercise
technical supervision over the POLOs, ensuring that
programs and projects of the labor offices in the different
parts of the globe are consistent with international labor
and department policies. Moreover, where there are a
number of OFW- and labor- related concerns, Filipino
Workers Resource Centers (FWRCs) shall be established
and the operations of which shall be supervised by
POLOs.
The International Labor Affairs Office shall have the
following divisions: Asian Affairs Division, American
and Pacific Affairs Division, European Affairs Division,
and the Middle Eastern and African Affairs Division.

2) Undersecretary for Funds and Investment Management

Office shall provide the services for the efficient and
effective management of the Overseas Workers Trust
Fund created in Section 12, including the maintenance of
computer-based financial data management system


3)

pertaining to collection, fund transfer, investment and
assets management. It shall consolidate all Department
collections and contributions, and ensure an efficient
collection and reporting system. The Undersecretary shall
head the Board which is created in Section 13 and shall
also be tasked to formulate a medium and annual term
investment plan for the Trust Fund, for approval of the
Board.
Undersecretary for Licensing and Regulation shall have the

. following powers and function:

a.

Process applications for license or authority to
operate recruitment or manning entities, and
recommend to the Secretary appropriate action
thereon;

. Recommend to the Secretary appropriate actions

for violations of the conditions of license or
authority including the suspension or cancellation
or revocation thereof;

- Monitor the status of cash and surety bonds and

require the replenishment or renewal thereof;

- Maintain an updated list of licensed or authorized

employment agencies for the guidance of the public;

. Prepare and implement and inspection program for

the effective supervision and evaluation of the
activities of private employment or manning
agencies;

Prepare and implement an inspection program for
the eradication of illegal recruitment activities and
provide support services to the inter-agency council
on illegal recruitment in its campaign against illegal
recruitment;

. Prepare and implement programs for the evaluation

of employment agencies and manning companies in
pursuance of the regulatory functions of the office
and in aid of policy formulation;

. Formulate and implement programs _for

standardization of allowable fees to be charged by
private employment entities, medical clinics and
testing centers;

Review and evaluate requirements for issuance of
license and authorities;

Review and evaluate service or employment and
shipping agencies, specifying therein the minimum
terms and conditions of employment of overseas
Filipino workers;


k. Formulate and implement programs for the effective
monitoring of foreign exchange remittances of
overseas contract workers.

4. Undersecretary for Employment and Welfare shall
implement and deliver programs and services through
regional and on-site operations. It shall supervise the
operations of the following:

a. Regional operations Coordination Service -
Supervises and provides technical and administrative
support to Regional Welfare Offices (RWOs).

1, Regional Welfare Offices (RWOs)

a. Administrative and Finance Unit — provides
administrative support services to the RWO and
maintains a sound and adequate regional
branch accounting system.

b. Program Services Division - administers and
implements efficient delivery of programs and
services in the regions.

2. Overseas Operations Coordination Services -
Supervises and provides administrative and
technical support to Overseas Welfare Office
Operations.

a. Overseas Welfare Office - Implements
programs and services to member-OFWs.

SECTION 9. ASSISTANT SECRETARIES - The Secretary shall also be
assisted by three (3) Assistant Secretaries, one (1) for Management Services,

one (1) for Policy and International Affairs, one (1) for Regional Operations
and Licensing.

A. The general functions of the Assistant Secretaries are as follows:

1. Advise and assist the Secretary and/or Undersecretaries in the
formulation, determination and implementation of laws,
policies, plans, programs and projects on overseas labor and
employment;

2. Oversees the day-to-day administration of the constituent units
of the Department;

3. Perform the duties of the Undersecretaries during their absence
or in case of vacancy of such position in the Department upon
designation by the Secretary; and


4. Perform such other functions as may be provided by law or
assigned by the Secretary and/or Undersecretaries from time to
time.

B. Specific Functions

1. Assistant Secretary for Management Services shall have the
following functions:

a. Advises and assists the Secretary and the
Undersecretaries in the formulation and implementation
of the Department’s policies, plans, progress, and projects
as they relate to general management, information and
publication, personnel, finance and other support
services under the Department Proper.

b. Supervises the operational activities of the following
offices:

1, Administrative Service
2. Financial and Management Service
3. Human Resource Development Service
4. Information and Publication Service
C. Performs such other functions as may be provided by law or assigned
by the Secretary and/or Undersecretaries from time to time.

2. Assistant Secretary for Policy and International Affairs shall
have the following functions:

a. Advises and assists the Secretary and the
Undersecretaries in the formulation of the Department’s
over-all long-range and short-term plans and programs

*on overseas employment, with special focus on the
government’s compliance with international labor
agreements;

b. Reviews and evaluates the progress/status of projects
and accomplishments in relation to set standards,
objectives and schedules;

c. Supervises the operational activities of the International
Labor Affairs Service and Planning Service; and

d. Perform such other functions as may be provided by law
or assigned by the Secretary and/or Undersecretaries
from time to time.

3. Assistant Secretary for Regional Operations shall have the
following functions;

a. Advises and assists the Secretary and the
Undersecretaries in the formulation and implementation
of the Department’s objectives and policies at the regional
level;

b. Supervises the administration and operations of the
regional offices;

c.» Promotes coordination of efforts between and among the
regional offices and the regional branches of attached


agencies to insure efficient, effective and economical
implementation of the Department's policies, plans,
programs and projects at the regional level;

d. Monitors and assesses developments in the regions with a
view to providing the divisions and other offices in the
Department, necessary information for policy and
program formulation and implementation;

e. Advises and assists the Secretary and the
Undersecretaries in the resolution of appealed labor
standards cases; and

f. Performs such other functions as may be provided by law

or assigned by the Secretary and/or Undersecretaries
from time to time.

SECTION 10. OFFICE OF THE LEGAL ADVISER - The Office of the
Legal Adviser shall be headed by a Legal Adviser, who shall be a career
officer and shall be reporting directly to the Secretary. However, the Legal
Adviser may be appointed by the President upon the recommendation of the
Secretary, from outside the career service. His term shall be co-terminus
with the tenure of the Secretary, unless sooner terminated. The Legal
Adviser shall provide legal advice and service to the Department.

It shall provide legal service for the Departments internal and external
requirements, including but not limited to, the drafting of legislative
Proposal and provision of opinion on bills, and rules and regulations
affecting the Departments and its operations.

The Office of the Legal Adviser shall have a staff complement of personnel
with the necessary competency and skills requirement.

SECTION 11. OFFICES AND DIVISIONS - Subject to the power of the
Secretary with the approval of the President, to reorganize, restructure, and
redefine the functions of the offices and divisions for the effective discharge
of the powers and functions of the Department under this Act, the
Department shall have the following offices and divisions:

The divisions and offices shall have the following powers and
function:


A. Internal Audit Division - Reviews and evaluates the
soundness, adequacy and application of accounting, financial and
other management procedures and promotes an effective control
system at reasonable costs.

B. Membership Processing Center — Provides and implements
policy guidelines on membership and contribution of OFWs.

C. Procurement and Property Management — Manages the
Procurement, storage and issuance of supplies, materials and
equipment as well as the disposal of obsolete and excess materials
and supplies.

D. Human Resources Management and Development Division —
Manages and administers a comprehensive personnel program
pertaining to recruitment, placement, career and employee
development, and other personnel services and actions.

E. Engineering and General Services Division — Formulates and
implements a building and equipment maintenance program.

F. Records Management Division — Develops and maintains a
system of retrieval, maintenance, safekeeping, authentication and
disposal of documents and records.

G. Budget Division - Manages the budgetary system and
monitors fund utilization and provides annual budget guidelines.

H. Accounting Division - Implements systems and procedures
for appropriate accounting and financial transactions including the
management of sub-systems in the regional and overseas operating
units. It shall ensure compliance with New Government
Accounting System (NGAS).

I. Cash Division - Implements systems and procedures on
collection disbursement.

J. Repatriation and Assistance Division — Facilitates family
inquiries regarding cases and circumstances of their OFW-
relatives, documented or irregular/undocumented Filipino
overseas workers. It shall maintain a case management and
documentation system, and manage the repatriation program to
include airport assistance and provision of counseling services,
medical and rehabilitation assistance to OFWs.

K. Program Services Division - Administers and implements
efficient delivery of programs and services for the OFWs in the
region.

L. Advocacy and Social Marketing Division ~ Establishes and
maintains public information counters, website and hotlines. It
shall cause the mounting of membership campaigns and
development of information materials, press releases and mass


media packages designed to manage public perception of the
Department.

M. Gfievance and Adjudication Division shall have the following
powers and function:

1.

2.
3.
4.

Ss.

Provides legal assistance to OFWs;

Provides mandatory conciliation of complaints;

Performs legal research and docketing of cases;

Hears and arbitrates complaints and cases filed against
recruitment and manning agencies, foreign principals and
employers through their agents, and OFWs for reported
violation of Department Rules and Regulation; and
Enforce all writs.

N.National Reintegration Center for OFWs Division - The NCRO
shall undertake the following:

1,

Develop support programs and projects for livelihood,
entrepreneurship, savings, investment and financial
literacy for returning Filipino overseas migrant workers
and their families, in coordination with relevant
stakeholders, service providers and _ international
organizations;

. Coordinate with appropriate stakeholders, _ service

providers, and relevant international organization for the
promotion, development and the full utilization of the

skills and potentials of returning overseas Filipino
workers;

. Institute, in cooperation with other government agencies

concerned, a computer-based information system on
returning Filipino overseas migrant workers which shall
be accessible to all local recruitment agencies and
employers, both public and private;

- Provide a periodic study and assessment of job

opportunities for returning Filipino overseas migrant
workers;

. Develop and implement other appropriate programs to

promote the welfare of returning Filipino overseas migrant
workers;

. Maintain an internet-based communication system for

online registration of returning OFWs and interaction
with clients, and maintain and upgrade computer-based
service capabilities of the NCRO;


7. Develop capacity-building programs for returning
overseas Filipino workers and their families,
implementers, service providers and stakeholders;

8. Conduct research for policy recommendations and
program development; and

9. Undertake other programs and activities as may be
determined by the Department.

O. Pre-Departure Divisions hall have the following powers and
functions:

1+ Maintains a manpower registry of applicants for overseas

and seafaring employment.

. Accredits foreign employers and principals.

. Processes and documents employment contracts.

. Assists and validates documents at exit points.

. Undertakes global mapping and profiling of OFWs.

. Client servicing for government employers hiring through

government to government arrangements.

7. Issues Seafarers Identification Document.

P. International Relations Division - shall have the following
powers and functions:

1. Develops and monitors new markets and conducts
market research; and

2. Enters into a Memoranda of Understanding on the hiring
of Filipino workers with labor-receiving countries.

Q. Crisis Management Center - shall provide under the Office of
the Secretary, shall operate on a 24-hour basis including
Saturdays, Sundays, and holidays. A counterpart 24-hour
Information and Assistance Center to ensure a continuous network
and coordinative mechanism shall be established at the DFA and
the DOLE/Department.

R. Administrative and Financial Management Office —
Supervises administrative and support services. It shall manage all
financial transactions and concerns of the Secretariat; formulate,
review and implement administrative and financial systems and
procedures.

1, General Administrative Service -— Manages the
administrative systems and procedures relating to human
Tesource, property, procurement and maintenance,
records management and general services.

2. Financial Management Service ~ Formulates, reviews and
implements systems and procedures on budget,
accounting and cashiering.

AnLONn


CHAPTER III
THE OVERSEAS WORKERS TRUST FUND

SECTION 12. OVERSEAS WORKERS TRUST FUND - There is hereby
created an Overseas Workers Trust Fund, hereinafter referred to as the
Trust Fund which shall be lodged in the Department. All fees and charges
paid by an overseas worker pursuant to an approved overseas employment
contract shall accrue to the Trust Fund.

The existing overseas fund lodged in the OWWA shall be transferred to
the Trust Fund herein created.

SECTION 13. OVERSEAS WORKERS TRUST FUND BOARD - In order
to manage and administer the Trust Fund, an Overseas Workers Trust Fund
Board is hereby created.

The Board shall be composed of the Undersecretary for funds and
Investment Management who shall be designated as the Chairperson, and

six (6) members to be appointed by the President of the Philippines upon the
recommendation of the Secretary.

Four members shall have distinguished themselves in the field of
finance, economics, law or related disciplines either in public or private
capacity for at least ten (10) years;

Provided that, at least two (2) of the four (4) shall be certified public
accountants. *

The fifth and sixth members shall come from the overseas workers sector
and shall be nominated by accredited OFW organizations;

Provided further, that the nominees shall have been an overseas worker
for at least three (3) years.


CHAPTER IV
TRANSITORY PROVISIONS

SECTION 14. TRANSFER OF POWERS AND FUNCTIONS - the powers
and functions of the OWWA and POEA and pertinent offices under the
Department of Labor and Employment (DOLE) and the Department of Foreign
Affairs (DFA) are hereby transferred to the Department.

The foregoing transfer of powers and functions shall include all applicable
funds, personnel, records, property and equipment as maybe necessary.

The same shall apply to agencies which have been attached to the Department
by the virtue of this Act.

SECTION 15. TRANSFER OF RIGHTS, ASSETS AND LIABILITIES - the
Department shall, by virtue of this Act, be subrogated to all rights and assume
all the liabilities of the OWWA and POEA and all other agencies or government

units whose functions and powers have been transferred to the Department.

All contracts and liabilities of said offices, agencies and government units are
hereby transferred to and assumed by the department and shall be acted upon
in accordance with the Auditing Code and other pertinent laws, rules and
regulations;

Provided that, the officers and employees of said offices, agencies and
government units shall continue in a holder capacity until such time as the

new offices and employees of the Department shall have been duly appointed
pursuant to the provisions of this Act.

SECTION 16. STRUCTURE AND STAFFING PATTERN — the
organizational framework and staffing pattern of the Department shall be
prescribed and approved by the Secretary within sixty (60) days after the


approval of this act and authorized positions created therein shall be filed by
regular appointments by the President or Secretary, as the case maybe;

Provided that, in the filing of the positions created, preference shall be
given to the personnel of the affected agencies.

SECTION 17. SEPARATION FROM SERVICE - employees separated
from the service as a result of this recognition shall, within six (6) months from
their separation from the service, receive the retirement benefits to which they

maybe entitled under existing laws, rules and regulations.

CHAPTER V
APPROPRIATION
SECTION 18. APPROPRIATIONS - such sums as maybe necessary for
the implementation of this act shall be taken from the current fiscal year of

appropriations of the OWWA and POEA and pertinent offices of the DOLE and
DFA.

Thereafter, the amount needed for the operation and maintenance of the
Department shall be included in the annual General Appropriations Act (GAA)
on the year of the enactment of this act.

¥ CHAPTER VI
MISCELLANEOUS PROVISIONS
SECTION 19. DISCLOSURE AND INVESTMENT OF FINANCIAL

INTEREST - before assumption of office, the Secretary, the Undersecretaries,
and the Assistant Secretaries shall submit to the Civil Service Commission
(CSC) a list of all companies, partnership, business enterprises, including
nonprofit organizations in which he/she, or any immediate member of their
families within the second degree of consanguinity or affinity have any form of
financial interest or employment relationship, including consultancy;


Provided however, that all other forms of employment relationship held

by the heads of offices of the Department shall be immediately terminated upon
assumption of office.

Within thirty (30) days thereafter, complete divestments of financial
interests in any institution, firm or company which fall under the supervisory
or regulatory jurisdiction of the Department shall be made;

Provided however, that in cases where confirmation of appointment by
the Commission on Appointments is required, the divestment mandated herein
shall be complied within thirty (30) days after such confirmation.

The divestment prescribed in the preceding paragraph shall likewise
apply to the member of the immediate family within the second degree of
consanguinity having interest in any institution or activity which falls under
the regulatory jurisdiction or supervision of the Department and its attached

agencies,

SECTION 20. SUPPLETORY CLAUSE - the Labor Code of the
Philippines, as amended shall have suppletory applicability.

SECTION 21. REPEALING CLAUSE - All laws, executive orders,
issuances, rules and regulations inconsistent with this Act are hereby
amended, repealed or modified accordingly.

SECTION 22. SEPARABILITY CLAUSE - If, for any reason or reasons,
any portion or provision of this Act shall be held unconstitutional or invalid,

the remaining provisions not affected thereby shall continue to be in full force
and effect.

SECTION 23. EFFECTIVITY CLAUSE - This Act shall take effect fifteen
(15) days after its publication in any newspaper of general circulation.

Approved,