EP RESEN

RECEIVED a

Republic of the Philippines
HOUSE OF REPRESENTATIVES Vs

Quesan City

EIGHTEENTH CONGRESS
‘Second Regular Session

HOUSE BILL No8291

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT ENHANCING THE REGULATION ON EMPLOYMENT OF FOREIGN
NATIONALS AND TRANSFER OF TECHNOLOGY, AMENDING FOR THE
PURPOSE ARTICLES 40, 41, AND 42 OF PRESIDENTIAL DECREE NO. 442, AS
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
AND FOR OTHER PURPOSES

This proposal seeks to amend Articles 40, 41, and 42 of the Philippine Labor Code. It
is an effort to meet our commitments in the WTO-GATS, AEG, and other bilateral,
regional and multilateral agreements. The amendments also intend to make the Labor
Code consistent with terms used by the country in trade negotiations and in its various
international commitments.

In addition, this proposal seeks to provide flexibility in the Labor Market Test in order
to truly determine the supply of skilled workers in specific industries, occupations and
professions. The aim is to increase productivity and improve industry development.
Moreover, it aims to provide for training of Filipino understudies to transfer skills and
technology from the foreign national through an understudy program.

The proposal likewise seeks to address our problems in coordination and
accountability among goverment agencies for the increasing number of foreign
nationals working illegally in the country. The fines and penalties for violations are
adjusted to account for inflation since it has been four decades when the Labor Code
was enacted.

In view of the foregoing, the approval of this bill is most eamestly sought.

LY al

LUIS RAYMUND/"LRAY” F, 'UERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 8291

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT ENHANCING THE REGULATION ON EMPLOYMENT OF FOREIGN
NATIONALS AND TRANSFER OF TECHNOLOGY, AMENDING FOR THE
PURPOSE ARTICLES 40, 41, AND 42 OF PRESIDENTIAL DECREE NO. 442, AS
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
AND FOR OTHER PURPOSES

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

SECTION 1. Title |, Book | of Presidential Decree No. 442, otherwise known as the
Labor Code of the Philippines, is hereby amended to read as follows:

Title Il - Employment of Non-Resident [Aliens] FOREIGN NATIONALS
SEC. 2. Article 40 of the Labor Code is hereby amended to read as follows:

ARTICLE 40. Employment permit of non-resident [aliens] FOREIGN NATIONALS -
[Any alien] ALL NON-RESIDENT FOREIGN NATIONALS seeking [admission to the
Philippines for employment purposes and any domestic or foreign employer who
desires to engage an alien for] employment in the Philippines shall obtain an
employment permit from the Department of Labor AND EMPLOYMENT (DOLE).

[The] AN employment permit may be issued to @ non-resident [alien] FOREIGN
NATIONAL after a determination of the non-availability of a [person in the Philippines
who is competent, able] QUAUFIED and willing (at the time of application] FILIPINO
NATIONAL WHO WILL perform the services for which the FOREIGN NATIONAL is
desired.

THE SECRETARY OF LABOR AND EMPLOYMENT SHALL BE AUTHORIZED TO
GRANT EXEMPTIONS FROM THE LABOR MARKET TEST TO FOREIGN
NATIONALS AS PROVIDED FOR UNDER EXISTING LAWS, AS WELL AS TO
OCCUPATIONS IN SHORT SUPPLY AS DETERMINED BY THE DOLE'S LABOR
MARKET INFORMATION REPORT AND UPON TRIPARTITE CONSULTATION.


For an enterprise registered in preferred areas of investments, TOURISM
ENTERPRISE ZONES, OR IN DESIGNATED ECONOMIC ZONES, THE employment
permit SHALL ONLY BE ISSUED BY THE DOLE, [may be issued] upon
recommendation [of] BY the government agency charged with the supervision of said
registered enterprise.

SEC. 3. Anew Article 40-A of the Labor Code is hereby provided to read as follows:

ARTICLE 40-A. UNDERSTUDY/SKILLS DEVELOPMENT PROGRAM - FOREIGN
NATIONALS ISSUED EMPLOYMENT PERMITS IN INDUSTRIES TO BE
DETERMINED BY THE DOLE SHALL IMPLEMENT AN UNDERSTUDY/SKILLS
DEVELOPMENT PROGRAM. THE PROGRAM SHALL BE APPROVED BY THE
DOLE AND SHALL ENSURE THE TRANSFER OF TECHNOLOGY/SKILLS TO
FILIPINOS, WHETHER NEXT-IN-RANK OR OTHERWISE, WITH THE POTENTIAL
OF SUCCEEDING THE FOREIGN NATIONAL IN THE SAME ESTABLISHMENT OR.
ITS SUBSIDIARY, WITHIN A SPECIRC PERIOD AS MAY BE DETERMINED BY THE
DOLE, UPON CONSULTATION WITH RELEVANT GOVERNMENT AGENCIES AND
INDUSTRY EXPERTS.

FAILURE OF THE FOREIGN NATIONAL TO CONDUCT OR COMPLETE THE
UNDERSTUDY/SKILLS DEVELOPMENT PROGRAM WITHIN THE SPECIHED
PERIOD SHALL BE METED WITH A FINE OF NOT LESS THAN ONE HUNDRED
THOUSAND PESOS (P100,000.00) FOR EVERY YEAR OF NON-COMPLIANCE,
WITHOUT PREJUDICE TO THE NON-RENEWAL OF THE WORK PERMIT ISSUED
TO THE FOREIGN NATIONAL, AND/OR THE BLACKLIST ING OF THE EMPLOYER
OF SUCH FOREIGN NATIONAL.

SEC. 4. Article 41 of Presidential Decree 442 is hereby amended to read as follows
ARTICLE 41. Prohibition against transfer of employment AND OTHER VIOLATIONS,

(a) Employment permit issued to A FOREIGN NATIONAL SHALL BE SPECIFIC TO
APARTICULAR POSITION AND EMPLOYER OR ESTABLISHMENT. NO CHANGE
IN THE POSITION OR EMPLOYER OF THE FOREIGN NATIONAL SHALL BE MADE
without PRIOR NOTICE and approval of the Secretary of Labor AND EMPLOYMENT.
NOTICE TO THE DOLE SHALL BE MADE THIRTY (30) DAYS PRIOR TO THE
INTENDED CHANGE IN POSITION OR EMPLOYER OR ESTABLISHMENT. FOR
THIS PURPOSE, THE DOLE SHALL MAINTAIN A REGISTRY OF FOREIGN
NATIONALS INDICATING THE STATUS OF EMPLOYMENT AND MOVEMENT OF
POSITION OR EMPLOYMENT AFTER HE/SHE HAS BEEN ISSUED AN
EMPLOYMENT PERMIT.

(b) Any non-resident [alien] FOREIGN NATIONAL who shall take up employment in
violation of the provision af this Title and its implementing rules and regulations, shall
be [punished in accordance with the provisions of Articles 289 and 290] METED WITH
AHNE OF [the Labor Code] NOT LESS THAN TWENTY FIVE THOUSAND PESOS
(P25,000.00) NOR MORE THAN FIFTY THOUSAND PESOS (P50,000.00) AND
SHALL BE BLACKLISTED FROM REENTERING THE COUNTRY, In addition, the
[alien worker] FOREIGN NATIONAL shall be subject to deportation.


(C) ANY EMPLOYER, HIS/HER ATTORNEY-IN-FACT OR ANY OTHER DULY
AUTHORIZED REPRESENTATIVE, WHO SHALL HIRE NON-RESIDENT FOREIGN
NATIONALS IN VIOLATION OF ANY OF THE PROVISION OF THIS TITLE AND ITS
IMPLEMENTING RULES AND REGULATIONS, SHALL BE METED WITHA FINE OF
NOT LESS THAN ONE HUNDRED THOUSAND PESOS (PIOO.000.00) NOR MORE
THAN TWO HUNDRED THOUSAND PESOS (P200,000.00). THE SECRETARY OF
LABOR AND EMPLOYMENT MAY ALSO SUSPEND OR ORDER THE CLOSURE
OF AN ERRING EMPLOYER FOR REPEATED VIOLATIONS OR BLATANT
DISREGARD OF THE PROVISIONS OF THIS TITLE.

IN ALL CASES, THE FINES IMPOSED HEREIN SHALL BE WITHOUT PREJUDICE
TO OTHER ADMINISTRATIVE, CIVIL OR CRIMINAL LIABILITY THEY MAY INCUR
BY REASON OF SUCH ACT OR OMISSION.

SEC 5. Article 42 of Presidential Decree 442 is hereby amended to read as follows:
ARTICLE 42. Submission of List. - ALL EMPLOYERS [Any employer employing non-
resident foreign nationals on the effective date of this Code] shall submit a list of
ENGAGED OR EMPLOYED NON-RESIDENT FOREIGN NATIONALS [such
nationals] to the DOLE THROUGH THE REGIONAL OFRCE HAVING
JURISDICTION OVER THEIR PRINCIPAL PLACE OF BUSINESS. [Secretary of
Labor and Employment] THE LIST SHALL BE SUBMITTED within 30 CALENDAR
days after HIRING, [such date] indicating their names, citizenship, foreign and local
addresses, nature of employment and status of stay in the country. [The Secretary of
Labor and Employment shall then determine if they are entitled to an employment
permit]

SEC, 6. Implementing Rules and Regulations. - Within ninety (90) days from the
effectivity of this Act, the Secretary of Labor and Employment, in coordination with
concemed agencies and in consultation with the relevant stakeholders, shall formulate
the necessary rules and regulations to implement the provisions of this Act.

SEC. 7. Repealing Clause. - All laws, executive orders, rules and regulations or any
part hereof inconsistent herewith are deemed repealed or modified accordingly.

SEC. 8. Separability Clause. - If any part or provision of this Act shall be declared
unconstitutional and invalid, such declaration shall not invalidate other parts thereof
which shall remain in full force and effect.

SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days its complete
publication in the Official Gazette or in at least two (2) newspapers of general
circulation, whichever comes earlier.

Approved,