Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No.__ 4932

Introduced by Rep. BERNADETTE “BH” HERRERA-DY

EXPLANATORY E

In a survey conducted by the Philippine Statistics Authority, the Philippines has an
employment rate of 94.6 percent as of July 2016, from ages fifieen (15) years old and above. 32
percent of this total percentage are part time workers while .05 percent are working at home.
17.4 percent of the total employed, however, are considered to fall within the underemployed
bracket. The unemployment rate on the other hand was recorded at 5.4 percent or 2.3 milion.
Across educational groups, 28.2 percent of the total unemployed were high school graduates, 9.2
percent were post- secondary graduates, 14.3 percent were college undergraduates, and 22.1
percent were college graduates.

Given the aftermath of the govemment’s strict enforcement of anti-contractualization rules
and the rising number of college graduates year on year, many find themselves without jobs and
unable to find work. As a result, most workers accept employment opportunities that do not match
their skills and skill sets. Hence, it is imperative to adopt a matching skills approach that will
provide workers the necessary skills needed in the labor market.

This bil introduces a matching skills approach to employment. It seeks to provide for a Labor
Empowerment Assistance Program (LEAP) that is linked to TESDA skills training programs
for employees who are in-between jobs. It ensures that financial assistance and training required
to reduce the gap between knowledge in the educational system or previous employment, on
‘one hand, and the actual demand of skills, on the other, are readily available and accessible to
interested workers. This approach will provide long term benefits on one's employability and
adaptability.

In view of the foregoing, its immediate passage is eamestly sought.

BERN: TTE HERI “DY


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No.__ 4932
Introduced by Rep. BERNADETTE “BH” HERRERA-DY_

AN ACT ESTABLISHING A LABOR EMPOWERMENT ASSISTANCE
PROGRAM, AMENDING PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

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 "LEAP Act of 2019."
SECTION 2. LEAP - A new Article 107-A of the Labor Code, as amended is
hereby introduced to read as follows:
"ARTICLE 107-A LABOR EMPOWERMENT ASSISTANCE
PROGRAM (LEAP) - WITH CONTRIBUTORY FUNDING FROM THE
REGISTRATION OF CONTRACTORS OR SUBCONTRACTORS, TEN
PERCENT (10%) OF THEGROSS CONTRACT COST LEVY FROM
THE PRINCIPAL EMPLOYER FOR EVERY OUTSOURCING
CONTRACT ENTERED INTO AND BUDGET ALLOCATION FROM
THE GENERAL APPROPRIATIONS ACT (GAA), A LABOR
EMPOWERMENT ASSISTANCE PROGRAM (LEAP) SHALL BE
ESTABLISHED. THE LEAP SHALL:
(A) SERVE AS A THREE-MONTH BRIDGING PROGRAM FOR
WORKERS IN BETWEEN JOB PERIODS AND IS LINKED TO
TESDA SKILLS TRAINING OR UPGRADING DURING THE
UNEMPLOYMENT PERIOD;

(B) THE AMOUNT OF FINANCIAL SUPPORT SHALL NOT BE
LOWER THAN THE APPROPRIATE MINIMUM WAGE IN
THE FORM OF A MONTHLY CASH CARD OR STORED
VALUE CARD FOR BASIC NECESSITIES LIKE RICE, INFANT
FORMULA, MEDICINE, ELECTRICITY AND WATER
UTILITIES; AND


(C) LABOR ORGANIZATIONS IN THE NATIONAL TRIPARTITE
INDUSTRIAL PEACE COUNCIL (NTIPC) SHALL CO-
ADMINISTER THE DISTRIBUTION OF THE CARDS AND
MONITORING OF COMPLIANCE BY THEIR BENEFICIARY
MEMBERS WITH THE REQUIRED TESDA_ SKILLS
TRAINING OR UPGRADING.”

SECTION 3. IMPLEMENTING RULES AND REGULATIONS - The Secretary of
Labor and Employment shall promulgate the necessary implementing rules and regulations
within thirty (30) days from the effectivity of this Act.

SECTION 4. REPEALING CLAUSE - All laws, decrees, rules, and regulations or
parts thereof, which are contrary to or inconsistent with this Act are hereby repealed or
modified accordingly.

SECTION 5. SEPARABILITY PROVISIONS - If any provision of this law or the
application thereof to any person or circumstance, is held invalid, the remainder of this
law, or the application of such provision or part to other persons of circumstances,
shall not be affected thereby.

SECTION 6. EFFECTIVITY CLAUSE - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,