Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
House Bill No.__________
Introduced by Rep. BERNADETTE "BH" HERRERA-DY
EXPLANATORY NOTE
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 fifteen (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 million. 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 government'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 bill 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 earnestly sought.
BERNADETTE HERRERA-DY
July 5, 2022
4:24 pm
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
House Bill No.______
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 THE GROSS
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
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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,