FIFTEENTH CONGRESS OF THE REPUBLIC } 
OF THE PHILIPPINES 
} 
First Regular Session 
'11 
JUN -8 P4:24 
SENATE 
Senate Bill No. 2872 
INTRODUCED BY SENATOR JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
In 1999, Congress passed into law Republic Act No. 8759, otherwise 
known as the Public Employment Service Office Act of 1999, in recognition of 
the need to institutionalize the establishment and operation of a Public 
Employment Service Office (PESO) in all capital towns of provinces, key 
cities, and other strategic areas. 
'The following are among those contemplated in the law: (1) that the 
Department of Labor and Employment (DOLE) shall undertake the 
establishment, operation and maintenance of PESOs, upon the request of the 
LGD, NGO, CBO or SUC; (2) that the DOLE shall enter into a Memorandum 
of Agreement with the concerned LGD, NGO, CBO or SUC; and (3) that the 
budget needed for the full implementation of the law shall be provided in the 
General Appropriations Act (GAA) of DOLE. 
Unfortunately, the full budgetary requirement to implement the law 
was never substantiated. The DOLE's annual budget for PESO was only for 
provision of technical assistance, training and supervision. 'There were no 
allocation for the establishment, operation and maintenance of the PESO 
office. Because of the tight fiscal situation, the PESO Act remains unfunded. 


Considering that the PESO performs the very important task of 
facilitating the access of jobseekers to employment opportunities, it is 
imperative to establish a network of fully enabled Public Employment Service 
Offices. The restrictive provisions of the PESO Act of 1999 should therefore 
be rectified. Thus, these proposed amendments. 
The bill aims to establish a labor market information infrastructure at 
the grass roots for a more efficient and effective provision of employment 
services. It also intends to facilitate the meeting of supply and demand for 
skills thereby reducing the transaction cost of information on available skills 
and jobs. 
In view of the foregoing, approval of this bill is earnestly sought. 


~'l'!>11 'c~ I' ,;, 
~".o/ r,. 
~I ~ <_ 
FIFTEENTH CONGRESS OF THE } 
REPUBLIC OF THE PHILIPPINES } 
First Regular Session 
} 
tI!,iih;t or Hl~ "~'fn<'l:H!l 
'11 
JUN -8 r 4 :24 
SENATE 
Senate Bill No, 
2872 
INTRODUCED BY SENATOR JINGGOY EJERCITO ESTRADA 
AN ACT 
DEFINING THE ROLE OF THE DEPARTMENT OF LABOR AND 
EMPLOYMENT (DOLE) AND THE LOCAL GOVERNMENT UNITS 
(LGUs) ON THE ESTABLISHMENT AND OPERATION OF THE PUBLIC 
EMPLOYMENT SERVICE OFFICE (PESO), AND THE OPERATION OF 
JOB PLACEMENT OFFICE IN SUC AND NGO, AMENDING FOR THE 
PURPOSE SECTIONS 3, 6, 7 AND 9 OF REPUBLIC ACT NO. 8759, 
OTHERWISE KNOWN AS PUBLIC EMPLOYMENT SERVICE OFFICE 
ACT OF 1999 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 3 of Republic Act No. 8759, otherwise known as the 
"Public Employment Service Office Act of 1999," is hereby amended to read 
as follows: 
"SECTION 3. 
Establishment of the Public Employment 
Service Office. 
"To carry out the above-declared policy, there shall be 
established in all [capital towns of] provinces, [key] cities, and 
[other strategic areas] MUNICIPALITIES a Public Employment 
Service Office, hereinafter referred to as "PESO", which shall be 
[community-based and] OPERATED AND maintained [largely] by 
local government units (LGUs). [and a number of non-
governmental organizations (NGOs) and state universities and 
colleges (SUCs)]. The PESO shall be linked to the regional offices of 
the Department of Labor and Employment (DOLE) for coordination 
1 


and technical supervision, and to the DOLE central office, to 
constitute the national PUBLIC employment service network. 
UPON THE REQUEST OF THE NGO OR Sue THE DOLE 
MAY ENTER INTO A MEMORANDUM OF AGREEMENT FOR 
THE FORMER TO ESTABLISH, OPERATE AND MAINTAIN A 
JOB PLACEMENT OFFICE. 
"TO HARMONIZE THE PROVISION OF EMPLOYMENT 
SERVICES IN A GIVEN TERRlTORIAL JURISDICTION, THE JOB 
PLACEMENT OFFICE AT THE NGO AND SUC SHALL 
COORDINATE THEIR ACTIVITIES WITH THE NEAREST PESO." 
SEC. 2. Section 6 of the same law is hereby amended to read as 
follows: 
"SECTION 6. Other Services of the PESO. 
"In addition to the functions enumerated in the preceding 
section, every PESO shall [also] undertake [the following] 
STRATEGIES, programs and activities [:] TO MAKE THE 
PROVISION OF EMPLOYMENT SERVICES EFFECTIVE AND 
EFFICIENT." 
[(a) Jobs Fairs - These shall be conducted periodically all over 
the country to bring together in one venue job seekers 
and employers for immediate matching;] 
[(b) Livelihood and Self-employment Bazaars - These will 
give clients information on the wide array of livelihood 
programs they choose to avail of, particularly in the rural 
area;] 
[(c) Special Credit Assistance for Placed Overseas Workers -
This type of assistance will enable poor but qualified 
applicants to avail of opportunities for overseas 
employment;] 
[(d) Special Program for Employment of Students and Out-of-
School Youth (SPESOS) - This program shall endeavor to 
provide employment to deserving students and our-of-
school youths coming from poor families during summer 
and/or Christmas vacations as provided for under 
Republic Act No. 7323 and its implementing rules, to 
enable them to pursue their education;] 
2 


[(e) Work Appreciation Program (WAP) - This program aims 
to develop the values of work appreciation and ethics by 
exposing the young to actual work situations;] 
[(f) Workers Hiring for Infrastructure Projects (WHIP) - This 
program is in pursuance of Republic Act No. 6685 which 
requires 
construction 
companies, 
including 
the 
Department of Public Works and Highways and 
contractor 
for 
government-funded 
infrastructure 
projects, to hire thirty percent (30%) of skilled and fifty 
percent (50%) of unskilled labor requirements from the 
areas where the project is constructed/located; and] 
[(g) Other programs/activities developed by DOLE to 
enhance provision of employment assistance to PESO 
clients, particularly for special groups of disadvantaged 
workers such as persons with disabilities (PWDs) and 
displaced workers.]" 
SEC. 3. Section 7 of the same law is hereby amended to read as 
follows: 
"SECTION 7. Role of DOLE~ land LGU[s, NGOs, CBOs and 
SUCs]. 
["Upon the request of the LGUs, NGOs, CBOs, SUCs 
which do not have existing PESOs, the establishment, 
operation and maintenance of PESOs shall be undertaken by 
the DOLE. 
The DOLE shall enter into memoranda of 
agreements with the concerned LGUs, NGOs, CBOs, SUCs for 
the establishment, operation and maintenance of PESOs in 
their 
respective 
areas 
of 
jurisdiction 
and 
the 
institutionalization of existing PESOs.] THE DOLE AND THE 
LGU SHALL JOINTLY ESTABLISH THE PESO. 
It shall be the responSibility of the DOLE to: 
(a) 
PROVIDE 
TECHNICAL 
SUPERVISION, 
COORDINATION AND CAPACITY BUILDING TO THE 
PESO; 
(b) 
Establish and maintain a 
computerized [national 
manpower] HUMAN RESOURCE AND JOB registr[y]IES 
[of skills and employment and business opportunities] to 
facilitate the provision and packaging of employment 
3 


assistance to PESO clients and [the] TO set[ting-]up [of] 
intra- and inter-regional job clearance system as part of 
the overall employment service network; 
[(b) Provide office space, equipment and/or supplies, as well 
as necessary personnel complement to manage, operate 
and maintain the PESO;] 
[(c) Designate in consultation with the LGU NGO, CBO or 
SUC concerned, a qualified [project manager and/or key 
personnel who shall be responsible for the operation and 
management of the PESO;] 
([d]c) 
Provide technical assistance and allied support 
services to the PESO[;], INCLUDING, BUT NOT 
LIMITED TO, TRAINING OF PESO PERSONNEL IN 
THE 
VARIOUS 
ASPECTS 
OF 
EMPLOYMENT 
FACILITATION FUNCTIONS; 
([e]d) 
[Train PESO personnel in the various aspects of 
employment facilitation functions] SET STANDARDS 
FOR THE ESTABLISHMENT AND OPERATION OF 
THE 
PESO 
OFFICE, 
AND 
QUALIFICATION 
STANDARDS FOR THE PESO PERSONNEL; 
([fje)Extend [[facilitate such] other packageS of employment 
services [to the provisions of employment assistance] to 
[clients of] the LGU, NGO, or SUC concerned, including 
the conduct of job fairs, CAREER ADVISE, ETC. [and 
other activities]; and 
([h]f)[Undertake] 
Monitor, 
assess, 
and 
evaluate 
the 
PERFORMANCE 
OF 
THE 
PESO 
NETWORK, 
INCLUDING THE JOB PLACEMENT OFFICES AT THE 
SUC AND NGO [the PESO program implementation]. 
[For their part the LGUs, NGOs, CBOs, or SUCs shall 
extend the following assistance and services as may be 
necessary in the promotion of employment within their 
respective areas of jurisdiction.] FOR THEIR PART, 
PERSONS 
WHO 
ARE 
SEEKING 
EMPLOYMENT, 
PARTICULARLY 
THE 
UNEMPLOYED, 
SHALL 
REGISTER 
AT 
THE 
PESO 
FOR 
EMPLOYMENT 
FACILITATION 
ASSISTANCE. 
THE 
ESTABLSIHMENTS, ON THE OTHER HAND, SHALL 
SUBMIT THEIR JOB V ACANICES AS WELL AS 
APPLICANTS HIRED TO THE PESO TO ENSURE THE 
AVAILABILITY OF ACCURATE INFORMATION ON 
4 


SUPPLY AND DEMAND FOR SKILLS IN THE LABOR 
MARKET. 
IT 
SHALL 
BE 
THE 
RESPONSIBILITY 
OF 
THE 
CONCERNED LGU TO: 
(A) OPERATE AND MAINTAIN THE PESO; 
(B) ENSURE COMPLIANCE WITH THE OPERATIONAL 
STANDARDS SET BY THE DOLE; 
(C) EXTEND SUCH ASSISTANCE AND SERVICES AS MAY 
BE 
NECESSARY 
IN 
THE 
PROMOTION 
OF 
EMPLOYMENT WITHIN THE AREA OF JURISDICTION; 
AND 
(D)SUBMlT TO THE DOLE PERIODIC PERFORMANCE/ 
ACCOMPLISHMENT REPORTS." 
SEC. 4. Section 9 of the same law shall be amended to read as follows: 
"SECTION 9. Funding. [The amount necessary for the initial 
implementation of this Act shall be charged against the 
existing appropriation of the DOLE and its operating agencies. 
Thereafter, the amount needed for the full implementation of 
this Act shall be included in the budget of the DOLE in the 
succeeding General Appropriations Act.] 
THE ANNUAL BUDGETARY REQUIREMENTS OF ITS 
PESO 
SHALL 
BE 
INCLUDED 
IN 
THE 
ANNUAL 
BUDGETARY APPROPRIATION OF THE LGD. THE SUC 
AND NGO SHALL PROVIDE THE RESOURCES FOR THE 
OPERATION OF THEIR JOB PLACEMENT OFFICES. 
FUNDS FOR THE PROVISION OF TECHNICAL 
ASSISTANCE, TRAINING AND SUPERVISION OF THE 
PESO SHALL BE INCLUDED IN THE BUDGET OF THE 
DOLE IN THE GENERAL APPROPRIATION ACT. 
SEC. 5. Implementing rules and regulations. - The secretary of labor and 
employment shall issue the necessary rules and regulations for the effective 
implementation of this act within ninety (90) days after its effectivity. 
5 


SEC 6. 
Repealing clause. -
All laws, decrees, executive orders, 
proclamations, rules and regulations or any part thereof, which are 
inconsistent with the provisions of this act, are hereby deemed repealed 
or modified accordingly. 
SEC 7. Separability clause. - If for any reason, any section or provision 
of this act or any part thereof, or the application of such section, 
provision or portion is declared invalid or unconstitutional, the 
remainder thereof shall not be affected by such declaration. 
SEC 8. Effectivity. - This act shall take effect after fifteen (15) days from 
the date of its publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
Approved, 
6