EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

HB. No. 3440

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
CREATING THE DEPARTMENT OF OVERSEAS FILIPINO WORKERS,
DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS
THEREFOR, AND FOR OTHER PURPOSES,

EXPLANATORY NOTE

Our Overseas Filipino Workers (OFWs) have always been hailed as “Bagong Bayani”
by the past and present administrations. Their important contribution to our nation is,
undeniable — from their remittances that account for a significant portion of our gross national

product to the development, recognition and promotion of Filipino talents worldwide.

It has been said that Filipino industriousness, resiliency and cheerfulness are
unparalleled and our countrymen are especially sought after abroad. We find our kababayans
in the world’s most luxurious cruise ships, the most advanced hospitals, the hotels in the

biggest cities and to the more exotic and remote locales.

‘They have sacrificed so much being away from their families, sometimes working in
sub-human conditions, adapting to new cultures, and dealing with abusive employers, among

many other challenges.

Yet our government is unable to take care of the needs of our OFWs. There have
been an alarming number of incidents reported in the media about the inadequacies of our
‘government in terms of responding to the problems of our OFWs. We have heard reports of
abuse our countrymen in difficult and sometimes life-threatening situations and of our

agencies taking an unreasonably long time in processing their repatriation. We have also


heard of stories about returning OFWs who struggle to integrate themselves and thrive back
home from working abroad for many years.

There are several agencies created and mandated by our government to handle OFW
concerns. Our government has tasked these agencies to cater to the needs of potential OFWs
preparing to leave the country, and to those who are returning after many years spent working
abroad. Yet, the government’s efforts are still found wanting. One of the most important
factors that contribute to our government's inadequacy is the lack of efficient and effective
coordination among our agencies that handle OFW concerns.

In a data by the Department of Foreign Affairs, the estimated number of Filipinos
overseas as of June 2015 is pegged at 7.8 million.' The number of overseas Filipino workers
is pegged at 2.3 million individuals as of 2018.? These numbers are expected to increase
steadily in the years to come as the demand for Filipino skills and talents abroad continue to
rise. The sheer number of our OFWs alone would justify the creation of a separate
department to attend to their requirements.

The needs and concerns of our OFWs are specialized due to the circumstances and
nature of their work. Although we have the appropriate agencies for these concerns, they are
still not adequate as these agencies are working independently of each other. Moreover, they
are as attached to other departments in which the specific concerns of our OFWs may only be

secondary responsibilities. This lack of coordination and focus result not only in duplication
of work but also in concerns being potentially overlooked especially among multiple agencies

having the same jurisdiction.

This bill proposes the creation of the Department of Overseas Filipino Workers to
harmonize all national policies and guidelines to ensure the protection of OFWs, among other
functions. It is envisioned to better serve our OFWs as their concerns would be given primary
attention. It will also result in better management of our resources as processes will be
streamlined and redundancies will be reduced thereby promoting efficient and effective
service delivery that will adequately serve the needs of our OFWs.

* Department of Foreign Affairs. Distribution on Filipino Overseas. Retrieved from hitps//afa.gov.ph/distribution-of-

{ilipines-overseas on July 1, 2018.

‘Statistical Tables on Overseas Filipino Workers (OFW): 2018, Philippine Statistics Authority


No less than President Rodrigo Duterte himself, speaking to our OFWs in Doha last
April 15, 2017, recognized the need for a separate department that would focus on the

concerns of our overseas Filipino workers.

It is high time that our “Mga Bagong Bayani” be afforded the hero treatment they so
rightly deserve after their many sacrifices for our country.

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

VILMA S: CTO


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EIGHTEENTH CONGRESS OF THE. )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
HB. No. 3440

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
CREATING THE DEPARTMENT OF OVERSEAS FILIPINO WORKERS,
DEFINING ITS POWERS AND FUNCTIONS, 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. Short Title. ~ This Act shall be known as the “Department of Overseas
Filipino Workers (OFW) Act of 2019”,

Sec. 2. Declaration of Policy. — It shall be the policy of the State to enhance its
institutional capacity to deliver public goods and services in a more efficient, effective and
accountable manner. It shall also be the policy of the State to ensure the protection of the
rights of our overseas Filipino workers and promotion of their welfare and safety. In view of
this, State shall effect the necessary and proper changes in the organizational structure of
agencies and instrumentalities promoting, managing, and protecting the Filipino international
migrant workers in order to rationalize and promote efficiency and effectiveness in the
delivery of services to our OFWs.

Sec. 3. Creation of the Department of Overseas Filipino Workers. — There shall be
created a Department of Overseas Filipino Workers, hereinafter referred to as the
Department, which shall be organized structurally and functionally, in accordance with the
provisions of this Act.

Sec. 4. Mandate. The Department shall be the primary policymaking, planning,
coordinating, implementing, and administrative entity of the Executive Branch of the
government in the field of overseas labor and employment. It shall formulate and undertake a

systematic program for promoting the welfare of OFWs and monitoring their overseas
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employment, taking into consideration domestic manpower requirements and the need to

protect their rights to fair and equitable employment practices.

Sec. 5. Powers and Functions of the Department. ~ The Department shall have the
following powers and functions:

(a) Formulate and recommend national policies and guidelines and conduct in-depth studies
on all policy areas and options that will ensure protection of OFWs in consultation with
relevant stakeholders;

(b) Assess, review, harmonize and coordinate all OFW-related local policies and procedures,
and international agreements to ensure overall consistency and implementation of
national policies;

(©) Promote, advance and implement general and specific government objectives regarding
OFW activities, programs, welfare and interests;

(@) Build a strong and harmonious partnership with foreign countries and the private sectors
to formulate strategies and implement the same;

(e) Represent and negotiate for Philippine interest on matters pertaining to OFW affairs in
international bodies;

() Develop, implement and improve coordination with other countries with OFW presence
and monitor foreign developments to ensure the most reasonable working conditions for
the OFWs and create a proactive approach in providing assistance to them especially in
times of war and civil unrest, whether potential or apparent;

(g) Promote knowledge, information and resource sharing, and develop a database to assist
OFWs anywhere in the world;

(h) Assist and provide technical expertise in the troubleshooting of the OFWs in distress and
tap the services of personnel, foreign and local, with expertise on the formulation of
strategies and plans concerning OFW activities, if needed;

(i) Promote, develop and monitor the continuing education, training and qualification,
availability and deployment of OFWs and coordinate with agencies concerned in the
training of OFWs to improve their global competitiveness;

(@ Coordinate with government agencies concemed in the training of and support to
Filipinos who have worked abroad and are returning to the country;

(k) Regulate and guide the business activities relative to the deployment of Filipino workers
and other related activities;


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(1) Promulgate rules and regulations for the implementation of its guidelines, policies and
related laws;

(m) Administer, accept, hold and utilize property, both personal and real, subject to
constraints by existing laws, for the purpose of assisting and expediting the work of the
Department; and

(n) To perform such other functions as maybe needed to achieve its goals and objectives to
the fullest and as may be provided in this Act.

Sec. 6. Composition. — The Department shall be headed by a Secretary. The
Department proper shall be composed of the Office of the Secretary, the Offices of the
Undersecretaries and the Assistant Secretaries.

Sec. 7. The Secretary. - The Secretary shall be appointed by the President, subject to
confirmation by the Commission on Appointments. The Secretary shall have the following
functions:

(a) Provide executive direction and supervision over the entire operations of the Department

and its attached agencies,

(b) Establish policies and standards for the effective, efficient and economical operation of

the Department, in accordance with the programs of government;

(©) Review and approve requests for financial and manpower resources of all operating

offices of the Department:

(@) Designate and appoint officers and employees of the Department, excluding the

undersecretaries, assistant secretaries, and regional directors and assistant regional directors,

in accordance with the civil service laws, rules and regulations;

(©) Exercise disciplinary powers over officers and employees of the Department in

accordance with law, including their investigation and the designation of a committee or

officer to conduct such investigation:

(f) Coordinate with local government units (LGUs), other agencies and public and private

interest groups, including nongovernment organizations (NGOs) and people’s organizations

(POs) on Department policies and initiatives;

(g) Prepare and submit to the President through the Department of Budget and Management

(DBM) an estimate of the necessary expenditures of the Department during the next fiscal

year, on the basis of the reports and estimates submitted by bureaus and offices under

him/her; :

(h) Advise the President on the promulgation of executive and administrative orders and

formulation of regulatory and legislative proposals on matters pertaining to the OFWs.


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(i) Formulate such rules and regulations and exercise such other powers as may be required to
implement the objectives of this Act; and
(k) Perform such other tasks as may be provided by law or assigned by the President.

Sec. 8. The Undersecretaries. — The Secretary shall be assisted by three (3)
undersecretaries, who shall be appointed by the President upon the recommendation of the
Secretary: Provided, That two (2) of the undersecretaries shall be career officers.

. — The Secretary shall be assisted by four (4) assistant
secretaries who shall be appointed by the President upon the recommendation of the
Secretary: Provided, That two (2) of the assistant secretaries shall be career officers.

Sec. 10. Qualifications. — No person shall be appointed Secretary, Undersecretary, or

Assistant Secretary of the Department unless he or she is a citizen and resident of the

Sec. 9. Assistant Secretarie

Philippines, of good moral character, of proven integrity and with competence and expertise
in the plans, programs, projects and activities of the government relative to overseas
employment.

Sec. 11. Regional Offices. ~ The Department may establish, operate, and maintain a
regional office in the different administrative regions of the country as the need arises. Each
regional office shall be headed by a Regional Director, who may be assisted by one (1)
Assistant Regional Director. The Regional Director and Assistant Regional Director shall be
appointed by the President. The regional offices shall have, within their respective
administrative regions, the following functions:

(a) Implement laws, policies, plans, programs, projects, rules and regulations of the
Department;

(b) Provide efficient and effective service to the people;

(©) Coordinate with regional offices of other departments, offices, and agencies;

(d) Coordinate with the LGUs; and

(©) Perform such other functions as may be provided by law or assigned by the Secretary.

Sec. 12. Sectoral and Industry Task Forces. - The Department may create sectoral
and industry task forces, technical working groups, advisory bodies or committees for the
furtherance of its objectives. Additional private sector representatives, such as from the
academe, NGOs, POs and federation of private industries directly engaged in the deployment
of OFWs, as well as representatives of other National Government Agencies (NGAs), LGUs
and government owned or controlled corporations (GOCCs) may be appointed to these
working groups.

Sec. 13. Transfer of Agencies and Personnel. —


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(a) The following agencies are hereby abolished, and their powers and functions, applicable
funds and appropriations, records, equipment, property, and personnel transferred to the
Department:

(1) Overseas Workers Welfare Administration;

(2) Philippine Overseas Employment Administration; and

(3) Commission on Filipino Overseas.
(b) The laws and rules on government reorganization as provided for in Republic Act No.
6656, otherwise known as the Reorganization Law, shall govern the reorganization process of
the Department.

Sec. 14. Transitory Provisions. ~ The Department shall carry out the reorganization of
the aforesaid agencies in such a manner that personnel of the agencies absorbed by the
Department shall continue to perform their respective duties and responsibilities in a holdover
capacity so as not to unduly delay the services provided to the OFWs.

Sec. 15. Structure and Staffing Pattern. - Subject to the approval of the DBM, the
Department shall determine its organizational structure and create new divisions or units as it
may deem necessary, and shall appoint officers and employees of the Department in
accordance with the civil service law, rules, and regulations.

Sec. 16. Early Retirement, Separation Pay and Other Benefits. — Personnel of the
merged agencies who will not be absorbed into the new staffing pattern due to redundancy or
failure to comply with the standards of competence and proficiency, or who will be offered

positions under the new staffing pattern but who decline such appointment by reason of
diminution in rank, benefits and work conditions, or who are offered positions under the new
staffing pattern without any diminution in rank, benefits and work conditions but who decline
such appointment, if qualified, shall be given the option to avail themselves of any of the
following, whichever is beneficial to them:

(a) Retirement gratuity provided under Republic Act No. 1616 (An Act Further Amending
Section Twelve of Commonwealth Act Numbered One Hundred Eighty-Six, As Amended,
By Prescribing Two Other Modes Of Retirement And For Other Purposes), as amended,
payable by the last employer of the affected personnel, plus the refund of retirement
premiums payable by the Government Service Insurance System (GSIS), without the
incentive herein provided.

(b) Retirement benefit under Republic Act No. 660 (An Act To Amend Commonwealth Act
Numbered One Hundred And Eighty-Six, Entitled “An Act To Create And Establish A

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Government Service Insurance System, To Provide For Its Administration, And To
Appropriate The Necessary Funds Therefor,” And To Provide Retirement Insurance And For
Other Purposes) or applicable retirement, separation or unemployment benefit provided under
Republic Act No. 8291 (An Act Amending Presidential Decree No. 1146, As Amended,
Expanding And Increasing The Coverage And Benefits Of The Government Service
Insurance System, Instituting Reforms Therein And For Other Purposes) if qualified, plus the
following applicable incentives:

(b.1.) 1/2 month of the present basic salary for every year of government
service and a fraction thereof, for those who have rendered twenty (20) years of
service and below;

(b.2.) 3/4 month of the present basic salary for every year of government
service and a fraction thereof, computed starting from the 1 year, for those who have
rendered twenty-one (21) to less than thirty-one (31) years of se

(b.3.) 1 month of the present basic salary for every year of government service
and a fraction thereof, computed starting from the 1" year, for those who have
rendered thirty-one (31) years of service and above.

In addition, the affected personnel shall be entitled to the refund of Pag-IBIG contributions,
and the commutation of unused vacation and sick leave credits.

; and

Sec. 17. Appropriations. ~ The amount necessary for the effective implementation of
the provisions of this Act shall be taken from funds available to the agencies enumerated in
Section 13 hereof. Additional requirements shall be charged to the applicable appropriations
under the current General Appropriations Act. Thereafter, such sum as may be needed for the
continued implementation of this Act shall be included in the annual General Appropriations
Act.

Sec. 18. Implementing Rules and Regulations. — The Department of Labor and
Employment, Department of Foreign Affairs, Department of Budget and Management,
Overseas Workers Welfare Administration, Philippine Overseas Employment Administration
and Commission on Filipino Overseas shall formulate the implementing rules and regulations
of this Act within ninety (90) days after its approval. Such rules and regulations shall take
effect fifteen (15) days after its publication in a newspaper of general circulation in the
Philippines.

Sec. 19. Separability Clause. — If any part, section or provision of this Act is declared
invalid or unconstitutional, no other parts, sections or provisions hereof shall be affected
thereby.


Nowe wne

Sec. 20. Repealing Clause. — All laws, decrees, ordinances, rules, regulations, other
issuances or parts thereof which are inconsistent with this Act are hereby repealed or
modified accordingly.

Sec. 21. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) newspapers of general circulation or the Official
Gazette.

Approved,