Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
» Second Regular Session

House BiLLNo,_5468

INTRODUCED BY: REP. KARLO ALEXEI B. NOGRALES, REP. EMMELINE Y.
AGLIPAY VILLAR, REP. FLORENCIO T. FLORES, JR.
AND REP. DEOGRACIAS B. RAMOS, JR.

EXPLANATORY NOTE

The October 2014 Philippine Statistics Authority's Labor Force Survey reports
that there are 1.23 million unemployed youth or 14.2% of the total labor force without a
job. The alarming figure is more than twice the national adult unemployment rate of
6.8%. This validates the Asian Development Bank (ADB) 2009 survey which concluded
that youth in the Philippines experience a slow school-to-work transition. The survey
reveals that, on average a college graduate finds a permanent job after two (2) years
while for a high school graduate, it takes four (4) years. The job search period is even
longer for youth who drop out of school. Of those high school graduates that find a job,
less than half of them find work in the formal wage sector.

Moreover, the ADB survey identified a set of risk factors that affect youth school-
to-work transition. Main risk factors include: (i) the low level of educational attainment
(e.g., high school graduation only and high school dropouts), (ii) family income status,
with youth from low income families having the most difficulty in the school-to-work
transition because such families tend to have a lack of quality social networks, children
tend to have insufficient life skills and job search skills necessary to successfully land a
good job, (iii) age and gender, such that young women are more at risk of not being in
employment, education and training compared to young men.

In May 2014, with funding support from the Government of Canada and technical
assistance from the ADB, a project coined as “JobStart Philippines Program” was
launched by the Department of Labor and Employment (DOLE) in four (4) localities i.e.,
General Trias, Cavite; San Fernando, Pampanga; Taguig City, and Quezon City.
JobStart is designed as a remedial program with the objective to assist the at-risk youth


improve their school to work transition and increase their chances of integrating into
productive employment. The pilot phase tested approaches and strategies that provide
youth with enhanced career guidance services, life skills and technical training with
work experience at the establishment or company level. The pilot project included 3,200
program beneficiaries and the development of a model full-cycle employment facilitation
services at the local level, benchmarking good practices from Kenya, Chile and the
United States

This bill aims to replicate the success of the JobStart program and cascade it on
a national scale. Given adequate resources and with the support of the private sector,
the implementation of this proposed policy measure will cover at least 70,000 JobStart
program beneficiaries by 2020, The training and exposure in an actual work place will
make the jobseeker ready to assume the job and more responsive to industry skills
requirement. Further, Public Employment Service Offices (PESOs) will be able to offer
an enhanced employment facilitation services and an improved local labor market
information system.

Given the country's employment thrust to address the job-skills mismatch and
facilitate the smooth transition of graduates and trainees to the work force, it is deemed
imperative to institute reforms to modernize the PESOs and implement a nationwide
youth employment program that enhances the employability of jobseekers and assists
their integration in the labor force.

In view of the foregoing, immediate passage of this bill is imperative.

Loemetace. H+ Kill
KARLQALEXEI B. NOGRALES EMMELINE Y. AGLIPAY VILLAR
Representative Representative
4°" District, Davao City Party List — DIWA

FLORENCIGT. Fl
Repreyentativ
2 Districh Bukie

Representative
2" District, Sorsogon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Sixteenth Congress
Second Regular Session

HOUSE BILL NO. 5468

INTRODUCED BY: REP. KARLO ALEXEI B. NOGRALES, REP. EMMELINE Y.
AGLIPAY VILLAR, REP. FLORENCIO T, FLORES, JR.
AND REP. DEOGRACIAS B. RAMOS, JR.

AN ACT INSTITUTIONALIZING THE NATIONWIDE IMPLEMENTATION OF
JOBSTART PHILIPPINES PROGRAM AND PROVIDING FUNDS THEREOF

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

SECTION 1. Title. This Act shall be known as the JobStart Act.

SECTION 2. Declaration of Policy. It is the policy of the state to promote full
employment and equality of employment opportunities for all. The Philippines
subscribes to the International Labor Organization's (ILO) Decent Work Agenda. As a
signatory to ILO Convention 88, the state promotes the establishment of Public
Employment Services as the primary institution at the local level that is responsible for
implementing a variety of active labor market programs including job search assistance,
training, and placement for the unemployed including young jobseekers.

SECTION 3. Definition of Terms. As used in this Act, the following shall refer to:

a) Establishment — an enterprise or employer which may be a company, sole
proprietorship, corporation, or any other legal entity registered under relevant
laws that may provide venue for training and/or placement of JobStart trainee
trainees.

b) JobStart Trainees — an eligible JobStart registrant who has been selected to
participate in the program


c) JobStart Graduate — JobStart trainees who have completed all the program
services and undergone all stages of JobStart full-cycle employment
facilitation services.

2

JobStart Technical Training the program phase where the JobStart trainee
undergoes a two-stage training: (1) technology-based theoretical instruction
for up to three (3) months in a lecture area and hands-on exercises in a
laboratory and/or a workshop within the premises of a technical training
provider (either in a TESDA-registered technical vocational institute (TV1) or
in-house/establishment) and (2) practical learning in a regular work
environment in a company/establishment for up to three (3) months, as
determined by the latter

e)

JobStart Unit ~ the office established and managed by the Bureau of Local
Employment (BLE), Department of Labor and Employment (DOLE) Regional
Office, or Public Employment Service Office (PESO) to implement and
oversee the JobStart program

Training Allowance ~ the amount which the JobStart trainee receives either
from the JobStart Unit or from the participating establishment for the duration
of the life skills and technical training period

g

Training Plan ~ a written plan by the establishment that specifies skill
competencies to be acquired, the training curriculum or modules to be used,
and the competency levels expected to be achieved by the JobStart trainee
by the end of the technical training period,

hy

Training Certificate ~ a certification that shall be jointly issued by the DOLE,
TESDA and concerned establishment, after program completion and
assessment of the JobStart trainee's competencies to attest the skills
acquired by the JobStart trainee. The certificate shall contain a list of the units
of competency and qualification acquired.

SECTION 4. Objective of JobStart Philippines Program. JobStart aims to enhance
the knowledge and skills acquired in the formal education and/or technical training by
jobseekers in order for them to become more responsive to the demands of the
industry. The program will also help develop life skills of youth including those relevant
to the values of professionalism and work appreciation and provide trainees with a
venue to apply relevant theories and code of ethics within a conducive and safe work
environment.

SECTION 5. Eligibility of Program Participants. The target program participants shall
meet the following requirements:


a)

Aged 18-24 at the time of the registration period (those who are 17 years old
may also register provided that they will be 18 years old at the time of the
technical training);

At least a high school graduate;

Not employed, studying, nor undergoing training at the time of the
registration; and

4) With less than one year or no work experience.

b)
¢)

SECTION 6. Program Components. The program shall include full employment
facilitation services such as registration/client assessment, one-on-one career guidance,
life skills and technical training, job matching, and referrals either for further technical
training or for employment in an establishment.

SECTION 7. Status of JobStart Trainees. For the duration of the program, the
JobStart trainee shall not be considered as an employee but rather a trainee of the
establishment. JobStart graduates shall be given preference in the hiring of workers by
the participating establishment. After career coaching, the PESO will assess and
determine whether the JobStart trainee is ready to be placed for contractual or regular
work in an establishment. In case of the latter, the JobStart trainee will be treated as an
employee of the establishment.

SECTION 8. Payment of Training Allowance. The trainees shall receive a daily
training allowance of Two Hundred Pesos (PhP200.00) from the JobStart Unit from life
skills training to technical training (Iecture/theoretical stage of up to three months). Upon
entry into practical training in an establishment, the latter will provide the JobStart
trainees with daily allowance not less than 75% of the prevailing minimum wage in the
city/municipality where the establishment is located. Amount of allowance shall be
based on the trainee’s actual attendance and that absences, tardiness or under time
incurred shall be deducted therefrom in accordance with the Training Plan. Training
allowances shall be paid at least once every two (2) weeks or twice a month at intervals
not exceeding sixteen (16) days

SECTION 9.Technical Training Period.

a) The technical training period shall not be more than six (6) months or 1,200
hours. The total daily training hours shall be eight (8) hours exclusive of not
less than sixty (60) minutes time-off for the regular meals.

Training may be beyond eight (8) hours a day, not exceeding two (2) hours,
provided that the JobStart trainee is paid for the overtime stay, an additional
allowance equivalent to his daily training allowance plus at least twenty-five
percent (25%) thereof.

In case of night shift training, JobStarter shall be entitled to a night shift
differential pay of not less than ten percent (10%) of the training allowance for
each hour of training between 10 o'clock in the evening and 6 o'clock in the
morning

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d) JobStart trainees may be trained during regular holidays provided that the
trainee is willing to and he/she will be compensated twice the daily training
allowance on regular holiday.

The time spent on overtime stay shall be duly credited to the trainee's training

hour.

f)_ A JobStart trainee may be required to undergo a probationary period. Provided
that, number of days rendered by the trainee in the establishment shall be
counted as part of the probationary period should the trainee be hired in the
same establishment upon completion of the program

e)

SECTION 10.Entitlement to Other Benefits and Incentives. Notwithstanding the LGU
or establishment's preference to provide additional or other health service/insurance
support, the JobStart trainees shall be covered with accident insurance through the
Philippine Red Cross Membership for the duration of the program to be paid by DOLE.
Further, the establishment shall be reimbursed of the cost of JobStart trainee's pre-
training/employment medical examinations in a maximum amount of One Thousand
Pesos (PhP1,000.00) to be provided by DOLE, Said expenses shall be disbursed by
DOLE through the PESO. On the other hand, the LGU shall exempt the JobStart
trainees from securing a work permit.

SECTION 11.Duties and Responsibilities of the JobStart Trainee. The JobStart
trainee shall exert every effort to acquire the abilities, values, and knowledge necessary
to achieve the purpose of the training. Towards this end, the trainee shall

a) Submit to the PESO the following documents:
i. Birth certificate;
ii, High school and college diploma (if applicable);
ili, Transcript of records (in highest level attained); and
iv. Training certificates or national certification issued by TESDA (if
applicable)
b) Enter into either a training or service contract with the establishment;
©) Report for training/work in the establishment based on the schedule indicated
in the training/work contract;
d) Perform tasks and activities indicated in the Training Plan;
e) Use tools, instruments, machines and other equipment with due care;
f) Not reveal any business nor trade secrets that have come to his/her
knowledge in the course of the training;
g) Adhere to the existing rules and regulations of the establishment; and
h) Report to PESO for an exit interview after the completion of the technical
training period

SECTION 12. Participation of Establishments. An establishment shall be allowed to
take in JobStart trainees only up to a maximum of twenty percent (20%) of its total
workforce. The establishment shall not take in the same trainee to be part of the
former's engagement in a similar training program such as the Dual Training Program
and the National Apprenticeship Program.


Participating establishments must have the following:

a) Legitimate business operating within the LGU’s catchment area;

b) Capacity to provide (in case of in-house arrangement) or facilitate (in case of
third-party training provider) TVET training to JobStart trainees and arrange
for the disbursement of the training allowance;

©) Capacity to provide for up to three (3) months practical training or work
experience of JobStart trainees, with a commitment to pay 75% of the daily
minimum wage for the relevant city/municipality;

d) Capacity to develop training plan to be learned and applied by the trainee in
the establishment;

e) Capacity to monitor JobStart trainee’s performance; and

f) Interest and willingness to absorb or offer possible regular employment to

JobStart graduates.

SECTION 13. Duties and Responsibilities of Establishment. The participating
establishment shall perform the following

a) Design and implement the training plan in partnership with a TVET institution

(as applicable);

b) Enter into either a training or work contract with the JobStart trainee;

©) Provide to JobStart trainee(s) practical training or work experience for a
maximum period of three (3) months or 600 hours;
Pay training allowance to JobStart trainees of not less than 75% of the daily
minimum wage for the relevant city/municipality;
Encourage the JobStart trainee to develop his/her personality and
professionalism and to the extent possible, protect the JobStart trainee from
physical or moral danger;
f) Submit monitoring and evaluation reports or other information on the trainee's
performance as may be required by DOLE or PESO;
Submit invoices to PESO for reimbursement or liquidation of expenses, as the
case may be, of training costs, training allowances, and other administrative
costs; and
Notify the PESO and JobStart Unit of trainee’s breach of contract or
misconduct in the training premises prior to its decision to suspend or
terminate the training.

d

e)

g

=s

SECTION 14. Termination of Training Contract. Any of the following shall be a valid
cause to terminate the training contract:

By the Establishment
i. Habitual absenteeism of the trainee;
ii, Willful disobedience of the establishment's rules or insubordination of lawful
order of a superior;
ili, Theft or malicious destruction of establishment's property or equipment;
iv. Engaging in violence or other forms of misconduct in the training or
establishment's premises; and


v. Inefficiency or poor training performance for a prolonged period despite
warnings duly given to the trainee.

By the JobStart Trainee
i, Substandard or harmful working conditions within the establishment's
premises;
ii, Cruel and inhumane treatment; and
ili, Prolonged or continuing illness.

Either party may furnish to the other party a notice of intent to terminate the
Training Contract for cause as defined in this Section

In case the training contract has been terminated, replacement of JobStart
trainee in an establishment will be allowed subject to the cause of termination. In
case the termination is caused by the establishment, the JobStart trainee may
still be referred to other participating establishments. In case the termination is
caused by the trainee's non-adherence to program guidelines, a new trainee may
still be provided to the establishment provided that there are other trainees
available for deployment

SECTION 15. Grievance Committee. In case of any violation of training agreement,
upon filing a complaint by the aggrieved party, the Grievance Committee shall have the
initial responsibility for settling differences. The Grievance Committee shall be
composed of the officials and representatives of the concerned DOLE Regional and
Field Offices and PESOs which have the jurisdiction over the concerned establishment.
The Committee shall investigate and render a decision pursuant to pertinent rules and
regulations. In case of failure by the Grievance Committee to settle the issue or render a
decision, or in case the complaint is against the member/s of the Grievance Committee,
the case shall be referred to the BLE for deliberation and appropriate action.

SECTION 16. Payment of Administrative Fee. Participating establishments shall
receive an amount of One Thousand Pesos (PhP1,000.00) per month per JobStart
trainee to cover administration cost in managing the trainee

SECTION 17. Partnership with Local Government. The LGUs, through the PESOs,
shall serve as the conduit of DOLE in implementing the program at the local level. The
PESOs are expected to:

a) Hire adequate staff to ensure the smooth implementation of the program;

b) Organize the registration process for the program intake of registrants;

©) Process and evaluate information of registrants and select eligible program
beneficiaries;

d) Conduct job matching and referral;

e) Collect and review relevant financial and administrative documents and
reports as necessary for the processing of the training grants to the JobStart
trainees as well as the administrative fee provided to the establishment;


f) Maintain a complete profile and record of transactions of program
participants and establishments; and

g) Submit a monthly program monitoring report to DOLE copy furnished the
concerned DOLE Regional and Field Offices and the office of the Local
Chief Executive.

SECTION 18. Role of DOLE, The DOLE is the executing agency of the JobStart
Philippines Program .The BLE shall serve as the Program Manager that shall provide
the necessary technical and administrative assistance to concerned Regional and Field
Offices, and PESOs. The Regional and Field Offices shall supervise and monitor the
implementation of the JobStart activities in their respective jurisdiction, The DOLE shall
conduct capacity-building activities to train the PESOs in adopting the new model on
employment facilitation services, particularly on career coaching and life skills.

SECTION 19. Role of the JobStart Unit. The DOLE shall establish a JobStart Unit at
the BLE and in every DOLE Regional Offices. The JobStart Unit shall provide the
establishment the training costs, trainees’ stipends/allowances, administrative costs, or
other fees, if any, as specified under an approved/signed Memorandum of Agreement
between DOLE and the establishment

SECTION 20. Enhancement of Labor Market Information System (LMIS). Further to
the thrust of developing local LMIS, participating PESOs will make use of the Client
Tracking System (CTS) to manage records of JobStart trainees, establishments and
PESO transactions. The DOLE’s Skills Registry System shall be re-designed to capture
the data storage and system requirements of the JobStart's CTS. Further, PESO LMI
staff will be trained in the use of the CTS and job matching.

At the regional and national level, the DOLE Field, Regional Offices and BLE shall
establish the necessary information technology infrastructure and system to improve the
collection, processing, analysis, report development and dissemination of PESO
statistics and other LMI. Towards this end, Labor Market Analysts shall be hired by
DOLE and BLE to provide technical assistance in maintaining the LMIS at all levels.

SECTION 21. Oversight Committee. An Oversight Committee shall oversee the
implementation of the JobStart Philippines Program. The Committee shall be chaired by
the DOLE. The Committee shall be composed of representatives from Department of
Interior and Local Government (DILG), Department of Social Welfare and Development
(DSWD), Technical Education and Skills Development Authority (TESDA), and
representatives from the youth, employer, and labor sector. Five (5) years after the
enactment of this Act, the Committee shall conduct a comprehensive assessment to
evaluate the impact of the program. Through the Secretary of Labor and Employment, a
report shall be transmitted to both Houses of Congress

SECTION 22. Appropriations. The supplemental budget in the amount of One
Hundred Fifty Million Pesos (PhP150,000,000.00) is allocated to the DOLE’s regular
budget for the current fiscal year. Thereafter, such sums as may be necessary for the


continued implementation of this Act shall be included in the General Appropriations
Act.

SECTION 23. Implementing Rules and Regulations. Within ninety (90) days from the
effectivity of this Act, the Secretary of Labor and Employment, in coordination with
concerned agencies, shall formulate the necessary rules and regulations to implement
the provisions of this Act.

SECTION 24. Repealing Clause. All statutory laws, orders and issuances, rules and
regulations and/or parts thereof which are inconsistent with the provisions of this Act are
hereby repealed or modified accordingly.

SECTION 28. Effectivity. This Act shall take effect after fifteen (15) days from the date
of its publication in Official Gazette or in a newspaper of general circulation

Approved,