HOUSE °F REPRESENTATIVES

RECEIVED
Republic of the Philippines pare 3.0 JUN 2015
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila Tive:_[i! 23

RY:

SEVENTEENTH CONGRESS
First Regular Session

REGISTRATION UNIT

House Bill No, 738 BILLS AND INDEX SERVICE

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

EXPLANATORY NOTE

Our Constitution states that, “The State affirms labor as a primary social economic
force”, This notwithstanding, we are still far from resolving our unemployment and
underemployment problems. In order to help address this issue, we have to be creative in
devising different strategies and exploring new ideas in approaching this problem.

This bill, a re-filing of House Bill No. 6414 based on Committee Report No. 992 of
the House Committee on Labor and Employment last 16" Congress, seeks to amend Republic
Act No. 9547 entitled, “Special Program for the Employment of Students” such that the
employment opportunities provided by any entity employing at least 10 persons have been
extended to out-of-school youth and dependents of displaced workers or would-be displaced
workers, who intend to enroll in any secondary, tertiary, or technical-vocational institutions.

Furthermore, the bill also states that 60% of the salary of the employee shall be paid
by the employer in cash and 40% by the government also in cash directly to.the student or
through financial facilities, subject to the existing rules on procurement which shall be
applicable in the payment for the student’s tuition fees, books, and other education-related
expenses including their daily allowance in going to school.

Other significant improvements to the existing law has been incorporated into-this bill «
with the intention of empowering our youth and improving their quality of life by providing
them with adequate employment and training opportunities. For these reasons, approval of
this bill is earnestly sought.

Lewwton H- Vablar
EMMELINE Y. AGLIPAY - VILLAR
Representative, DIWA Party-list

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

‘House Bill No. 73 8

Introduced by DIWA Part

Representative Emmeline Y. Aglipay — Villar

AN ACT STRENGTHENING FURTHER THE SPECIAL PROGRAM FOR
EMPLOYMENT OF STUDENTS, AMENDING FOR THE PURPOSE SECTIONS
1,2,3 AND 5, AND REPEALING SECTION 4 OF R.A. 9547, AMENDING R.A.
7323, OTHERWISE KNOWN AS THE "SPECIAL PROGRAM FOR
EMPLOYMENT OF STUDENTS" (SPES)

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

SECTION 1. Section 1 of R.A. No. 9547 is hereby further amended to read as
follows:

"SECTION 1. Any provision of law to the contrary notwithstanding, any
person or entity employing at least ten (10) persons may employ poor but deserving
students, OUT-OF-SCHOOL YOUTH OR DEPENDENTS OF DISPLACED OR
WOULD-BE DISPLACED WORKERS DUE TO BUSINESS CLOSURES OR
WORK STOPPAGES INTENDING TO ENROLL IN ANY SECONDARY,
TERTIARY OR TECHNICAL-VOCATIONAL INSTITUTION, fifteen (15) years of
age but not more than [twenty-five (25)] THIRTY (30) years old, paying them a
salary or wage not lower than the minimum wage for private employers and the
applicable hiring rate for the national and local government agencies: Provided, that
students enrolled in the secondary level shall only be employed during summer and/or
Christmas vacations, while those enrolled in tertiary, vocational or technical education
may be employed at any time of the year. Provided, further, That their period of
employment shall be from twenty (20) to [fifty-two (52)] SEVENTY-EIGHT (78)
working days only, except that during Christmas vacation, employment shalll be from
ten (10) to fifteen (15) days which may be counted as part of the students’
probationary period should they apply in the same company or agency after
graduation: Provided, finally, That students employed in activities related to their
course may earn equivalent academic AND PRACTICUM OR ON-THE-JOB
TRAINING credits as may be determined by the appropriate government agencies.

“For purposes of this Act, poor but deserving students, OUT OF
SCHOOL YOUTH, AND DEPENDENTS OF DISPLACED OR WOULD-BE
DISPLACED WORKERS DUE TO BUSINESS CLOSURES OR WORK
STOPPAGES INTENDING TO ENROLL IN ANY SECONDARY, TERTIARY OR
TECHNICALVOCATIONAL INSTITUTION refer to those whose parents’ combined

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income, together with their own, if any, does not exceed the annual regional poverty
threshold level for a family of six (6) for the preceding year as may be determined by
the National Economic and Development Authority (NEDA). Employment
facilitation services for applicants to the program shall be done by the Public
Employment Service Office (PESO).

“Participating employers, in coordination with the PESO, must inform
their SPES employees of their rights, benefits, and privileges under existing laws,
company policies, and employment contracts.”

SECTION 2. Section 2 of the same Act is hereby further amended to read as follows:

"SECTION 2. Sixty per centum (60%) of the said salary or wage shall be
paid by the employer in cash and forty per centum (40%) by the government [in the
form of a voucher.) ALSO IN THE FORM OF CASH DIRECTLY TO THE
STUDENTOR THROUGH FINANCIAL INSTITUTIONS OR OTHER PAYMENT
FACILITIES, SUBJECT TO THE EXISTING RULES ON PROCUREMENT which
shall be applicable in the payment for the student's tuition fees, [and] books, AND
OTHER EDUCATION-RELATED EXPENSES, INCLUDING THEIR DAILY
ALLOWANCE IN GOING TO SCHOOL [in any educational institution for
secondary, tertiary, vocational or technical education}: Provided, That local
government units (LGUs) may assume responsibility for paying in full [his] THE
salary or wages. THE FORTY PER CENTUM (40%) SHARE SHALL BE PAID
WITHIN THIRTY (0) WORKING DAYS UPON SUBMISSION OF THE
PARTNER-EMPLOYER OR PARTICIPATING ESTABLISHMENT OF THEIR
REPORT ON PAYMENT OF SALARY OR WAGES WHICH SHALL BE THE
BASIS OF THE FORTY PER CENTUM (40%) SALARY OR WAGES TO BE
PAID BY THE GOVERNMENT THROUGH THE DEPARTMENT OF LABOR
AND EMPLOYMENT. [The amount of the education voucher shall be paid by the
government to the educational institution concerned within thirty (30) days from its
presentation to the officer or agency designated by the Secretary of Finance. ]

“IN CASE OF SICKNESS, ABSENCE, OR DEATH OF THE SPES
BENEFICIARY, THE IMMEDIATE HEIRS MAY CLAIM THE SALARY,
PROVIDED, THAT PROOF TO THIS EFFECT HAS BEEN CLEARLY
ESTABLISHED.

“LIKEWISE, THE SPES BENEFICIARY SHALL BE ENTITLED TO
SOCIAL PROTECTION BY VIRTUE OF AN INSURANCE COVERAGE WITH
THE GOVERNMENT SERVICE AND INSURANCE COMMISSION (GSIS) FOR
A PERIOD OF ONE YEAR.

"[The voucher shall not be transferable except when the payee thereof
dies or for a justifiable cause stops in his duties, in which case it can be transferred to
his brothers or sisters. If there be none, the amount thereof shall be paid his heirs or to
the payee himself, as the case may be.]"

SECTION 3. Section 3 of the same Act is hereby further amended to read as follows:

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"SECTION 3. [The Secretary of Labor and Employment, the Secretary of
Education, the Chairman of the Commission on Higher Education, the Secretary of
Budget and Management, the Secretary of Social Welfare and Development and the
Secretary of Finance shall issue the corresponding rules and regulations to carry out
the purposes of this Act.

"The Secretary of Labor and Employment shall be the Program
Chairman.]"

"THE DEPARTMENT OF LABORAND EMPLOYMENT SHALL
ISSUE THE IMPLEMENTING RULES AND REGULATIONS TO CARRY OUT
THE PURPOSES OF THIS ACT. FURTHER, THE SECRETARY OF THE
DEPARTMENT OF LABOR AND EMPLOYMENT, MAY ISSUE ADDITIONAL
GUIDELINES WHICH MAY BE DEEMED APPROPRIATE AND AS
NECESSITY ARISES; PROVIDED THAT THE ISSUANCE BE IN THE FORM OF
A DEPARTMENT ORDER."

SECTION 4. Section 4 of the same Act is hereby repealed

“[SECTION 4. Any persons or entity who refuses to honor education
vouchers or makes any fraudulent or fictitious claim under this Act, regardless of
whether payment has been made, shall upon conviction be punished with
imprisonment of not less than six (6) months and not more than one (1) year and a
fine of not less than Ten thousand pesos (P10,000.00), without prejudice to their
prosecution and punishment for any other offense punishable under the Revised Penal
Code or any other penal statute

“In case of partnerships or corporations, the managing partner, general
manager, general manager, or chief executive officer, as the case may be, shall be
criminally liable.]”

SECTION 5. Section 5 of the same Act is hereby amended to read as follows:

“SECTION [5] 4. The Secretary of the Department of Labor and
Employment shall include in the Department's program the operationalization of the
expanded Special Program for the Employment of Students, INCLUDING THE
MAINTENANCE OF AN ONLINE DATABASE REGISTRY FOR MONITORING
OF SPES BENEFICIARIES, THE FUNDING OF WHICH SHALL BE INCLUDED
IN THE ANNUAL GENERAL APPROPRIATIONS ACT: PROVIDED, THAT
NOT MORE THAN FIVE PER CENTUM (5%) OF THE AMOUNT
APPROPRIATED FOR THE PROGRAM SHALL BE USED TO FUND THE
ADMINISTRATIVE COST.

"[The amount necessary to carry out the purposes of this Act is hereby
authorized to be appropriated in the General Appropriations Act for 1992 and the
subsequent annual general appropriations acts: Provided. That the appropriation, for
the purposes of this Act, shall not be reduced by Congress below the amount
appropriated for the previous year and, after approval, shall be automatically and
regularly released: Provided, further, That the appropriation herein shall be increased
by at least twenty percentum (20%) annually.)”

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SECTION 6. Separability Clause. - Should any provision of this Act be declared
unconstitutional, the remainder thereof not otherwise affected shall remain in full force and
effect.

SECTION 7. Repealing Clause. - All existing laws, presidential decrees, executive
orders, proclamations or administrative regulations that are inconsistent with the provisions
of this Act are hereby repealed, amended, or modified accordingly.

SECTION 8. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,

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