Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

397
HOUSE BILL NO.

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

EXPLANATORY NOTE

President Rodrigo Duterte recently signed the Executive Order 5 which adopts the
25-year long term vision entitled AmBisyon Natin 2040 as a guide for development
planning. The AmBisyon Natin 2040, initiated by the National Economic and Development
Authority, represents the aspirations of the Filipino people and describes the kind of life
that people want to live, as well as how the country will look like by 2040.

According to the studies supporting the AmBisyon Natin 2040, 79% of Filipinos
aspire for a simple and comfortable life which includes having opportunities for good
quality employment without leaving the country. However, 48.5% of Filipinos are not fully
confident that they can reach their goals

One of the challenges hindering the country from achieving the vision is
unemployment. As of July 2016, the Philippine Statistics Authority recorded the Philippine
unemployment rate at 5.6%, While there are thousands of jobs available for the Filipinos,
many of them do not possess the required qualifications for these opportunities.

This bill seeks to address the mismatch between business demands and the talent
pool by establishing a Labor Employment Assistance Program (LEAP). The LEAP will serve
as a bridging program for workers in between job periods. It is also directed to provide
financial assistance to workers in between job periods at an amount which Is no less than
the appropriate minimum wage.

Through this initiative, we are bridging the gap between the skills set of the Filipino
workers and the jobs available in the country.

In view of the foregoing, the passage of this measure is earnestly sought.

‘ALFRED VARGAS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

1397
HOUSE BILL NO.

INTRODUCED BY CONGRESSMAN ALFRED VARGAS

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. Short Title. - This Act shall be known as the “Labor Empowerment
Assistance Program (LEAP) Act.”

SEC. 2. A new Article 107-A of the Labor Code of the Philippines, as amended, is hereby
provided to read as follows:

“ARTICLE 107-A. LABOR EMPOWERMENT ASSISTANCE PROGRAM. - 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 CREATED. 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,
MEDICINES, 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.”

SEC. 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.

SEC. 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.

SEC. 5. Separability Clause. - 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.

SEC. 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.