[REPUBLIC ACT NO.

 10801]
AN ACT GOVERNING THE OPERATIONS AND ADMINISTRATION OF THE OVERSEAS
WORKERS WELFARE ADMINISTRATION

TITLE, POLICY AND OBJECTIVES.

CHAPTER I
SECTION 1. Short Title. – This Act shall be known as the “Overseas Workers Welfare
Administration Act”.

SEC. 2. Declaration of Policy. – It is the policy of the State to afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment opportunities for all. Towards this
end, it shall be the State’s responsibility to protect the Overseas Filipino Workers (OFWs).

The Overseas Workers Welfare Administration (OWWA) shall be one of the principal agencies of the
State to serve and promote the rights, interest and welfare of the OFWs and their families.
Welfare assistance, services, and programs provided by the OWWA shall be gender-responsive, taking
into consideration the different impacts of labor migration to men and women.

SEC. 3. Objectives. – This Act is enacted to provide guidelines on matters concerning the OWWA, its
mandate, purposes and objectives, membership, collection of contributions, and a ailment of benefits and
services. This Act also embodies the policies on fund management, programs and services administration.

NATURE, SCOPE AND FUNCTIONS OF THE OWWA

CHAPTER II

SEC. 4. Nature of the OWWA. – The OWWA is a national government agency vested with the special
function of developing and implementing welfare programs and services that respond to the needs of its
member-OFWs and their families. It is endowed with powers to administer a trust fund to be called the
OWWA Fund. Being a chartered institution, the OWWA shall not fall under any of the following
categories: government instrumentalities with corporate powers (GICPs), government corporate entities
(GCEs), government financial institutions (GFIs) and/or government-owned or -controlled corporations
(GOCCs).
The OWWA shall be an attached agency of the Department of Labor and Employment (DOLE). Its
officials and employees are covered by the Salary Standardization Law.

SEC. 5. Scope. – This Act shall apply to the OWWA, the OWWA Secretariat, the OWWA Fund, to its
member-OFWs and those who will avail of the voluntary membership program of the OWWA, and to
overseas recruitment/manning agencies/employers who are duly registered with the Philippine Overseas
Employment Administration (POEA).

SEC. 6. Functions. – The OWWA shall exercise the following functions:

a) To protect the interest and promote the welfare of member-OFWs in all phases of overseas
employment in recognition of their valuable contribution to the overall national development
effort;
b) To facilitate the implementation of the provisions of the Labor Code of the Philippines
(Presidential Decree No. 442, as amended) and the Migrant Workers and Overseas Filipinos Act
of 1995 (Republic Act No. 8042, as amended), concerning the responsibility of the government to
promote the well-being of OFWs. Pursuant thereto, and in furtherance thereof, it shall provide
legal assistance to member-OFWs;
c) To provide social and welfare programs and services to member-OFWs, including social
assistance, education and training, cultural services, financial management, reintegration, and
entrepreneurial development services;
d) To provide prompt and appropriate response to global emergencies or crisis situations affecting
OFWs and their families;
e) To ensure the efficiency of collections and the viability and sustainability of the OWWA Fund
through sound, judicious, and transparent investment and management policies;
f) To undertake studies and researches for the enhancement of the social, economic, and cultural
well-being of member-OFWs and their families;
g) To develop, support and finance specific projects for the welfare of member-OFWs and their
families; and
h) To ensure the implementation of all laws and ratified international conventions within its
jurisdiction.
 REPUBLIC ACT NO. 8042
AN ACT TO INSTITUTE THE POLICIES OF OVERSEAS EMPLOYMENT AND ESTABLISH
A HIGHER STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF
MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND
FOR OTHER PURPOSES.

Provides comprehensive measures for the increased protection of Filipino migrant workers.
Section 2 states that the Philippines does not promote overseas employment as a means to sustain
economic growth and national development, and recognizes the particular vulnerability of women
migrant workers. As a result, the State will only seek to deploy Filipinos abroad who are skilled, and who
will work in countries where existing labour laws protect the rights of migrant workers. Such countries
must also be signatories to multilateral conventions on the protection of migrant workers, and have
concluded a bilateral agreement with the Philippines on such matters. Nevertheless, the government
encourages the deployment of Filipinos by local service contractors and managing agencies (2)(i).

I. DEPLOYMENT
Sec. 4. Deployment of Migrant Workers
Sec 5. Termination or Ban on Deployment

II. ILLEGAL RECRUITMENT

(Defines and sets forth penalties for illegal recruitment of Filipinos for work overseas.)

Sect. 6. Definition.   For purposes of this Act, illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract
services, promising or advertising for employment abroad, whether for profit or not, when undertaken by
a non-licensee or non-holder of authority...It shall likewise include the following acts, whether committed
by any person, whether a non-licensee, non-holder, licensee or holder of authority:
a) To charge or accept directly or indirectly any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay
any amount greater than that actually received by him as a loan or advance;
b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor Code;
d) To engage in the recruitment or placement of workers in jobs harmful to public health or
morality...
e) To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by his
duly authorized representative;
f) To fail to submit reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as may
be required by the Secretary of Labor and Employment;
g) To substitute or alter to the prejudice of the worker, employment contracts approved and verified
by the Department of Labor and Employment.
h) To withhold or deny travel documents from applicant workers...
 i) Failure to reimburse expenses incurred by the worker in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take
place...Illegal recruitment when committed by a syndicate or in large scale shall be considered an
offense involving economic sabotage.

Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more
persons conspiring or confederating with one another. It is deemed committed in large scale if committed
against three (3) or more persons individually or as a group.

The persons criminally liable for the above offences are the principals, accomplices and accessories. In
case of juridical persons, the officers having control, management or direction of their business shall be
liable.

SEC. 7. PENALTIES -

(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less than
six (6) years and one (1) day but not more than twelve (12) years and a fine not less than two hundred
thousand pesos (P200,000.00) nor more than five hundred thousand pesos (P500,000.00).

(b) The penalty of life imprisonment and a fine of not less than five hundred thousand pesos
(P500,000.00) nor more than one million pesos (P1,000,000.00) shall be imposed if illegal recruitment
constitutes economic sabotage as defined herein.

Provided, however, that the maximum penalty shall be imposed if the person illegally recruited is less
than eighteen (18) years of age or committed by a non-licensee or non-holder of authority.

SEC. 8. PROHIBITION ON OFFICIALS AND EMPLOYEES. It shall be unlawful for any official - or
employee of the Department of Labor and Employment, the Philippine Overseas Employment
Administration, or the Overseas Workers Welfare Administration, or the Department of Foreign Affairs,
or other government agencies involved in the implementation of this Act, or their relatives within the
fourth civil degree of consanguinity or affinity, to engage, directly or indirectly, in the business of
recruiting migrant workers as defined in this Act. The penalties shall be imposed upon them.

SEC. 9. VENUE. A criminal action arising from illegal recruitment as defined herein shall be filed with
the Regional Trial Court of the province or city where the offense was committed or where the offended
party actually resides at the same time of the commission of the offense: Provided, That the court where
the criminal action is first filed shall acquire jurisdiction to the exclusion of other courts. Provided,
however, that the afore-stated provisions shall also apply to those criminal actions that have already been
filed in court at the time of the effectivity of this Act.

SEC. 10. MONEY CLAIMS. But with standing any provision of law to the contrary, the Labor Arbiters of
the National Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to
hear and decide, within ninety (90) calendar days after filing of the complaint, the claims arising out of an
employer-employee relationship or by virtue of any law or contract involving Filipino workers for
overseas deployment including claims for actual, moral, exemplary and other forms of damages.

The liability of the principal/employer and the recruitment/placement agency for any and all claims under
this section shall be joint and several. This provisions shall be incorporated in the contract for overseas
employment and shall be a condition precedent for its approval. The performance bond to be filed by the
recruitment/placement agency, as provided by law, shall be answerable for all money claims or damages
that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the
corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily
liable with the corporation or partnership for the aforesaid claims and damages.

Such liabilities shall continue during the entire period or duration of the employment contract and shall
not be affected by any substitution, amendment or modification made locally or in a foreign country of
the said contract.

Any compromise/amicable settlement or voluntary agreement on money claims inclusive of damages

under this section shall be paid within four (4) months from the approval of the settlement by the
appropriate authority.

In case of termination of overseas employment without just, valid or authorized cause as defined by law
or contract, the workers shall be entitled to the full reimbursement of his placement fee with interest of
twelve percent (12%) per annum, plus his salaries for the unexpired portion of his employment contract or
for three (3) months for every year of the unexpired term, whichever is less.

Non-compliance with the mandatory periods for resolutions of cases provided under this section shall
subject the responsible officials to any or all of the following penalties:

a) The salary of any such official who fails to render his decision or resolutions within the
prescribed period shall be, or caused to be, withheld until the said official complies therewith;
b) Suspension for not more than ninety (90) days; or
c) Dismissal from the service with disqualifications to hold any appointive public office for five (5)
years.

Provided, however, that the penalties herein provided shall be without prejudice to any liability which any
such official may have incurred under other existing laws or rules and regulations as a consequence of
violating the provisions of this paragraph.

SEC. 11. MANADATORY PERIODS FOR RESOLUTION OF ILLEGAL RECRUITMENT CASES. The
preliminary investigations of cases under this Act shall be terminated within a period of thirty (30)
calendar days from the date of their filing. Where the preliminary investigation is conducted by a
prosecution officer and a prima facie case is established, the corresponding information shall be filed in
court within twenty four (24) hours from the termination of the investigation. If the preliminary
investigation is conducted by a judge and a prima facie case is found to exist, prosecution officer within
forty eight (48) hours from the date of receipt of the records of the case.
SEC. 12. PRESCRIPTIVE PERIODS. - Illegal recruitment cases under this Act shall prescribe in five (5)
years: Provided, however, that illegal recruitment cases involving economic sabotage as defined herein
shall prescribe in twenty (20) years.

SEC. 13. FREE LEGAL ASSISTANCE, PREFERENTIAL ENTITLEMENT PROGRAM. UNDER THE
WITNESS PROTECTION - A mechanism for free legal assistance for victims of illegal recruitment shall
be established within the Department of Labor and Employment including its regional offices. Such
mechanism must include coordination and cooperation with the Department of Justice, the Integrated Bar
of the Philippines, and other non-governmental organizations and volunteer groups.

The provisions of Republic Act No. 6981 to the contrary, notwithstanding, any person who is a victim of
illegal recruitment shall be entitled to the Witness Protection Program provided thereunder.

III. SERVICES
(Establishes government services to assist migrant workers, including an Emergency Repatriation Fund;
a Re-placement and Monitoring Center with the function of reintegrating returning Filipinos into the
economy; a Migrant Workers and Other Overseas Filipinos Resource Center, and a Shared Government
Information System for Migration.)

SEC 15. REPATRIATION OF WORKERS; EMERGENCY REPATRIATION FUND – The repatriation of

the worker and the transport of his personal belongings shall be the primary responsibility of the agency
which recruited or deployed the worker overseas. All costs attendant thereto shall be borne by or charged
to the agency concerned and/or its principal. Likewise, the repatriation of remains and transport of the
personal belongings of a deceased worker and all costs attendant thereto shall be borne by the principal
and/or local agency. However, in cases where the termination of employment is due solely to the fault of
the worker, the principal/employer or agency shall not in any manner be responsible for the repatriation of
the former and/or his belongings.

The Overseas Workers Welfare Administration (OWWA), in coordination with appropriate international
agencies, shall undertake the repatriation of workers in case of war, epidemic, disasters or calamities,
natural or man-made, and other similar events without prejudice to reimbursement by the responsible
principal or agency. However, in cases where the principal or recruitment agency cannot be identified, all
costs attendant to repatriation shall be borne by the OWWA.

For this purposes, there is hereby created and established an emergency repatriation fund under the
administrative control and supervision of the OWWA, initially to consist of one hundred million pesos
(P100, 000,000.00), inclusive of outstanding balances.

SEC. 16. MANDATORY REPATRIATION OF UNDERAGE MIGRANT WORKERS. – Upon discovery or

being informed of the presence of migrant workers whose actual ages fall below the minimum age
requirement for overseas deployment, the responsible officers in the foreign service shall without delay
repatriate said workers and advise the Department of Foreign Affairs through the fastest means of
communication available of such discovery and other relevant information
Sec. 17. Establishment of Re-placement and Monitoring Center
Sec. 18. Functions of the Re-placement and Monitoring Center
Sec. 19. Establishment of A Migrant Workers and Other Overseas Filipinos Resource Center
Sec. 20. Establishment of a Shared Government Information System for Migration
Sec. 21. Migrant Workers Loan Guarantee Fund
Sec. 22. Rights and Enforcement Mechanism Under International and Regional Human Rights Systems

IV. GOVERNMENT AGENCIES

Sec. 23. Role of Government Agencies
a) Department of Foreign Affairs
b) Department of Labor and Employment
b.1) Philippine Overseas Employment Administration
b.2) Overseas Workers Welfare Administration

V. THE LEGAL ASSISTANT FOR MIGRANT WORKERS AFFAIRS

(Creates a position within the Department of Foreign Affairs of a Legal Assistant for Migrant Workers
and establishes a Legal Assistance Fund, both with the purpose of rendering aid to Filipinos in distress
abroad)

Sec. 24. Legal Assistant for Migrant Workers Affairs

Sec. 25. Legal Assistance Fund
Sec. 26. Uses of the Legal Assistance Fund

VI. COUNTRY – TEAM APPROACH

Sec 27. Priority Concerns of Philippine Foreign Service Posts
Sec 28. Country-Team Approach

VII. DEREGULATION AND PHASE-OUT

Sec. 29. Comprehensive Deregulation Plan on Recruitment Activities
Sec. 30. Gradual Phase-out of Regulatory Functions

VIII. PROFESSIONAL AND OTHER HIGHLY-SKILLED FILIPINOS ABROAD

Sec. 31. Incentives to professionals and other Highly-Skilled Filipinos Abroad
ECONOMIC SABOTAGE

Economic sabotage means destroying the economy of the nation that may cause chaos, destabilization,
poverty and other difficulties that might experience of the people who sojourn in the particular country.
Poor countries are easy to conquer by the other hostile nations.

Some terrorists might employ economic sabotage in order for the nation will weak. If the nation is weak,
the above-mentioned possibility might arise. Countries use their money to buy, build high powered
weapons those can destroy the place, people in a second, milliseconds and the likes. They get their money
from the tax of the people.

The countries which have poor in business, the people who sojourn in the country are poor which
signifies that the country has poor in terms of tax which signifies poor in power, more businesses more
tax, more money to build public infrastructure for the convenience of the people and much money to buy
weapons to defend the country in case of trouble.

Economic sabotage is a type of tactics used by some terrorists, enemy of the country to destroy the
nations without the awareness of the government as a whole that the country is falls little by little.

No one can realize if the nation was subjected into economic sabotage if the effect of the act was not yet
severed, the severity of the effect of the economic sabotage might enter in the mind of the government as
a whole that their nations was under the sabotage of the terrorist and other countries those have plans to
destroy the country.

Fake products may not consider economic sabotage if the volume is minute but if the productions of fake
products are metric tons might manifestation of economic sabotage. Sometimes the manufacturers think
only to get money from the fake products without their awareness those fake products can destroy the
nations. We can call this as "innocent economic sabotage" due to they have no idea those products can
destroy the nations other than intentional.

SWINDLING OR ESTAFA

Legal Basis

Republic Act No. 10951 is the law adjusting the amount or the value of property and damage on which a
penalty is based, and the fines imposed under the Revised Penal Code. RA 10951 has amended the
provisions under Act No. 3815, or otherwise known as the Revised Penal Code (“RPC”).

The penalty for Estafa is basically dependent on the value of the damage or prejudice caused by the
perpetrator. RA 10951 increased the amount of fraud which is the basis of penalty and the fine imposed
for the crime of Estafa under Article 315 of the RPC. Under this law, swindling or Estafa shall be
punished as follows:

a) If the amount of the fraud does not exceed Forty thousand pesos (₱40,000), the penalty of arresto
mayor in its medium and maximum periods shall be imposed. (2 months and 1 day to 6 months)
 b) If the amount of the fraud is over Forty thousand pesos (₱40,000) but does not exceed One
million two hundred thousand pesos (₱1,200,000), the penalty of arresto mayor in its maximum
period to prisión correccional in its minimum period shall be imposed. (4 months and 1 day to 2
years and 4 months)
c) If the amount of the fraud is over One million two hundred thousand pesos (₱1,200,000) but does
not exceed Two million four hundred thousand pesos (₱2,400,000), the penalty of prisión
correccional in its minimum and medium periods shall be imposed. (6 months and 1 day to 4
years and 2 months)
d) If the amount of the fraud is over Two million four hundred thousand pesos (₱2,400,000) but
does not exceed Four million four hundred thousand pesos (₱4,400,000), the penalty of prisión
correccional in its maximum period to prisión mayor in its minimum period shall be imposed. (4
years, 2 months, and 1 day to 8 years)
e) If the amount of the fraud exceeds Four million four hundred thousand pesos (₱4,400,000), the
penalty of prisión mayor in its minimum period shall be imposed, adding one year for each
additional Two million pesos (₱2,000,000); but the total penalty which may be imposed shall not
exceed twenty years. (6 years and 1 day to 8 years)

However, any person who shall defraud another by means of false pretenses or fraudulent acts as defined
under Article 315 paragraph 2(d) of the RPC, to wit:

“d) By postdating a check, or issuing a check in payment of an obligation when the offender had no funds
in the bank, or his funds deposited therein were not sufficient to cover the amount of the check.”

This type of Estafa shall be punished by:

a) If the amount of the fraud does not exceed Forty thousand pesos (₱40,000), the penalty of prisión
mayor in its minimum period shall be imposed. (6 years and 1 day to 8 years)
b) If the amount of the fraud is over Forty thousand pesos (₱40,000) but does not exceed One
million two hundred thousand pesos (₱1,200,000), the penalty of prisión mayor in its medium
period shall be imposed. (8 years and 1 day to 10 years)
c) If the amount of the fraud is over One million two hundred thousand pesos (₱1,200,000) but does
not exceed Two million four hundred thousand pesos (₱2,400,000), the penalty of prisión mayor
in its maximum period shall be imposed. (10 years and 1 day to 12 years)
d) If the amount of the fraud is over Two million four hundred thousand pesos (₱2,400,000) but
does not exceed Four million four hundred thousand pesos (₱4,400,000), the penalty of reclusion
temporal in its minimum and medium periods shall be imposed. (12 years and 1 day to 17 years
and 4 months)
e) If the amount of fraud is over Four million four hundred thousand pesos (₱4,400,000) but does
not exceed Eight million eight hundred thousand pesos (₱8,800,000), the penalty of reclusion
temporal in its maximum period shall be imposed. (17 years and 4 months and 1 day to 20 years)
f) If the amount exceeds Eight million eight hundred thousand pesos (₱8,800,000), the penalty shall
be reclusion perpetua.
The crime of Other Deceits under Article 318

The penalty of arresto mayor (1 month and 1 day to 6 months) and a fine of not less than the amount of
the damage caused and not more than twice such amount shall be imposed upon any person who shall
defraud or damage another by any other deceit not mentioned under Article 315-317.

Moreover, any person who, for profit or gain, shall interpret dreams, make forecasts, tell fortunes, or take
advantage of the credulity of the public in any other similar manner, shall suffer the penalty of arresto
mayor (1 month and 1 day to 6 months) or a fine not exceeding Forty thousand pesos (₱40,000).
 Title I

NATIONAL MANPOWER DEVELOPMENT PROGRAM Chapter I

NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR

IMPLEMENTATION

Art. 43. Statement of objective. It is the objective of this Title to develop human resources, establish
training institutions, and formulate such plans and programs as will ensure efficient allocation,
development and utilization of the nation’s manpower and thereby promote employment and accelerate
economic and social growth.

Art. 44. Definitions. As used in this Title:

a) “Manpower” shall mean that portion of the nation’s population which has actual or potential
capability to contribute directly to the production of goods and services.
b) “Entrepreneurship” shall mean training for self-employment or assisting individual or small
industries within the purview of this Title.

Art. 45. National Manpower and Youth Council; Composition. To carry out the objectives of this Title,
the National Manpower and Youth Council, which is attached to the Department of Labor for policy and
program coordination and hereinafter referred to as the Council, shall be composed of the Secretary of
Labor as ex-officio chairman, the Secretary of Education and Culture as ex-officio vice-chairman, and as
ex-officio members, the Secretary of Economic Planning, the Secretary of Natural Resources, the
Chairman of the Civil Service Commission, the Secretary of Social Welfare, the Secretary of Local
Government, the Secretary of Science and Technology, the Secretary of Trade and Industry and the
Director-General of the Council. The Director General shall have no vote. In addition, the President shall
appoint the following members from the private sector: two (2) representatives of national organizations
of employers; two (2) representatives of national workers’ organizations; and one representative of
national family and youth Organizations, each for a term of three (3) years.

Art. 46. National Manpower Plan. The Council shall formulate a long-term national manpower plan for
the optimum allocation, development and utilization of manpower for employment, entrepreneurship and
economic and social growth. This manpower plan shall, after adoption by the Council, be updated
annually and submitted to the President for his approval. Thereafter, it shall be the controlling plan for the
development of manpower resources for the entire country in accordance with the national development
plan. The Council shall call upon any agency of the Government or the private sector to assist in this
effort.
Art. 47. National Manpower Skills Center. The Council shall establish a National Manpower Skills
Center and regional and local training centers for the purpose of promoting the development of skills. The
centers shall be administered and operated under such rules and regulations as may be established by the
Council.

Art. 48. Establishment and formulation of skills standards. There shall be national skills standards for
industry trades to be established by the Council in consultation with employers’ and workers’
organizations and appropriate government authorities. The Council shall thereafter administer the national
skills standards.

Art. 49. Administration of training programs. The Council shall provide, through the Secretariat,
instructor training, entrepreneurship development, training in vocations, trades and other fields of
employment, and assist any employer or organization in training schemes designed to attain its objectives
under rules and regulations which the Council shall establish for this purpose. The Council shall exercise,
through the Secretariat, authority and jurisdiction over, and administer, on-going technical assistance
programs and/or grants-in-aid for manpower and youth development including those which may be
entered into between the Government of the Philippines and international and foreign organizations and
nations, as well as persons and organizations in the Philippines. In order to integrate the national
manpower development efforts, all manpower training schemes as provided for in this Code shall be
coordinated with the Council, particularly those having to do with the setting of skills standards. For this
purpose, existing manpower training programs in the government and in the private sector shall be
reported to the Council which may regulate such programs to make them conform with national
development programs. This Article shall not include apprentices, learners and handicapped workers as
governed by appropriate provisions of this Code.

Art. 50. Industry boards. The Council shall establish industry boards to assist in the establishment of
manpower development schemes, trades and skills standards and such other functions as will provide
direct participation of employers and workers in the fulfillment of the Council’s objectives, in accordance
with guidelines to be established by the Council and in consultation with the National Economic and
Development Authority. The maintenance and operations of the industry boards shall be financed through
a funding scheme under such rates of fees and manners of collection and disbursements as may be
determined by the Council.

Art. 51. Employment service training functions. The Council shall utilize the employment service of the
Department of Labor for the placement of its graduates. The Bureau of Employment Services shall render
assistance to the Council in the measurement of unemployment and underemployment, conduct of local
manpower resource surveys and occupational studies including an inventory of the labor force,
establishment and maintenance without charge of a national register of technicians who have successfully
completed a training program under this Act, and skilled manpower including its publication,
maintenance of an adequate and up-to-date system of employment information.

Art. 52. Incentive Scheme. An additional deduction from taxable income of one-half (1/2) of the value of
labor training expenses incurred for development programs shall be granted to the person or enterprise
concerned provided that such development programs, other than apprenticeship, are approved by the
Council and the deduction does not exceed ten percent (10%) of the direct labor wage. There shall be a
review of the said scheme two years after its Implementation.

Art. 53. Council Secretariat. The Council shall have a Secretariat headed by a Director-General who
shall be assisted by a Deputy Director-General, both of whom shall be career administrators appointed by
the President of the Philippines on recommendation of the Secretary of Labor. The Secretariat shall be
under the administrative supervision of the Secretary of Labor and shall have an Office of Manpower
Planning and Development, an Office of Vocational Preparation, a National Manpower Skills Center,
regional manpower development offices and such other offices as may be necessary. The Director-
General shall have the rank and emoluments of an undersecretary and shall serve for a term of ten (10)
years. The Executive-Directors of the Office of Manpower Planning and Development, the Office of
Vocational Preparation and the National Manpower Skills Center shall have the rank and emoluments of a
bureau director and shall be subject to Civil Service Law, rules and regulations. The Director general,
Deputy Director-General and Executive Directors shall be natural-born citizens, between thirty and fifty
years of age at the time of appointment, with a master’s degree or its equivalent, and experience in
national planning and development of human resources. The Executive Director of the National
Manpower Skills Center shall, in addition to the foregoing qualifications, have undergone training in
center management. Executive Directors shall be appointed by the President on the recommendations of
the Secretary of Labor and Employment. The Director-General shall appoint such personnel necessary to
carry out the objectives, policies and functions of the Council subject to Civil Service rules.

The regular professional and technical personnel shall be exempt from WAPCO rules and regulations.
The Secretariat shall have the following functions and responsibilities:

a) To prepare and recommend the manpower plan for approval by the Council;
b) To recommend allocation of resources for the implementation of the manpower plan as approved
by the Council;
c) To carry out the manpower plan as the implementing arm of the Council;
d) To effect the efficient performance of the functions of the Council and the achievement of the
objectives of this Title;
e) To determine specific allocation of resources for the projects to be undertaken pursuant to
approved manpower plans;
f) To submit to the Council periodic reports on progress and accomplishment of work programs;
g) To prepare for approval by the Council an annual report to the President on plans, programs and
projects on manpower and out-of-school youth development;
h) To enter into agreements to implement approved plans and programs and perform any and all
such acts as will fulfill the objectives of this Code as well as ensure the efficient performance of
the functions of the Council; and
i) To perform such other functions as may be authorized by the Council.

Art. 54. Regional manpower development offices. The Council shall create regional manpower
development offices which shall determine the manpower needs of the industry, agriculture and other
sectors of the economy within their respective jurisdictions; provide the Council’s central planners with
the data for updating the national manpower plan; recommend programs for the regional level agencies
engaged in manpower and youth development within the policies formulated by the Council; and
administer and supervise Secretariat training programs within the region and perform such other functions
as may be authorized by the Council.

Art. 55. Consultants and technical assistance, publication and research. In pursuing its objectives, the
Council is authorized to set aside a portion of its appropriation for the hiring of the services of qualified
consultants, and/or private organizations for research work and publication. It shall avail itself of the
services of the Government as may be required.

Art. 56. Rules and regulations. The Council shall define its broad functions and issue appropriate rules
and regulations necessary to implement the provision of this Code.