Title
Amendments to Labor Code on Employment Services
Law
Presidential Decree No. 1691
Decision Date
May 1, 1980
Presidential Decree No. 1691 amends provisions of the Labor Code of the Philippines to establish new institutions within the Ministry of Labor, including the Bureau of Employment Services, Overseas Employment Development Board, and National Seamen Board, to address employment programs, overseas employment, and seamen regulations.

Questions (PRESIDENTIAL DECREE NO. 1691)

The BES is primarily responsible for developing and monitoring a comprehensive employment program, including formulating employment promotion plans; establishing a registration/licensing system for private recruitment/placement (local and overseas) to secure best terms for Filipino contract workers and ensure compliance; developing employment programs for disadvantaged groups; establishing a registration/work permit system for regulating alien employment; building a labor market information system; developing vocational guidance and testing systems; and maintaining a central registry of skills (except seamen).

The Minister of Labor may impose and collect fees based on rates recommended by the BES. These fees are deposited in the National Treasury as a special account of the General Fund for promoting the BES objectives, subject to Section 40 of PD 1177.

The regional offices of the Ministry of Labor have original and exclusive jurisdiction over all such matters or cases (including money claims) involving employer-employee relations arising out of or by virtue of any law or contracts involving Filipino workers for overseas employment, except seamen. The BES may also exercise such power in the National Capital Region when the Minister of Labor deems it appropriate.

The decisions are appealable to the National Labor Relations Commission (NLRC) upon the same groups provided in Article 223. NLRC decisions are final and inappealable.

An Overseas Employment Development Board is created to undertake, in cooperation with relevant entities and agencies, a systematic program for overseas employment of Filipino workers beyond domestic needs and to protect their rights to fair and equitable employment practices.

It must: promote overseas employment through comprehensive market promotion and development; secure the best terms and conditions of employment for Filipino contract workers in government-to-government arrangements and ensure compliance; recruit and place workers for overseas employment in government-to-government arrangements and other sectors as policy dictates; and act as secretariat for the Board of Trustees of the Welfare and Training Fund for Overseas Workers.

It must develop and maintain a comprehensive program for Filipino seamen employed overseas.

Provide free placement services for seamen; regulate and supervise shipping company agents/representatives in hiring seamen for overseas employment and secure the best terms of employment while ensuring compliance for contract seamen workers; and maintain a complete registry of all Filipino seamen.

The National Seamen Board has original and exclusive jurisdiction over all matters or cases including money claims involving employer-employee relations arising out of or by virtue of laws or contracts involving Filipino seamen for overseas employment. Decisions are appealable to the NLRC on the same grounds provided in Article 223. NLRC decisions are final and inappealable.

The Minister of Labor may suspend or cancel any license or authority to recruit employees for overseas employment for violations of rules and regulations issued by the Minister of Labor, the Overseas Employment Development Board, and the National Seamen Board, or for violations of provisions of the Labor Code and other applicable laws, General Orders, and Letters of Instructions.

After due notice and hearing, based on findings of labor regulation officers or industrial safety engineers made in the course of inspection, the Minister of Labor (or authorized representatives) may order compliance and issue writs of execution except when the employer contests the findings and raises issues that cannot be resolved without considering evidentiary matters not verifiable in the normal course of inspection.

Labor Arbiters have original and exclusive jurisdiction over: unfair labor practice cases; unresolved issues in collective bargaining (including wages, hours, and other terms/conditions); all money claims of workers including non-payment/underpayment of wages, overtime, separation pay and other benefits by law or agreement (except employees’ compensation, social security, medicare, and maternity benefits); cases involving household services; and all other claims arising from employer-employee relations unless expressly excluded by the Code.

The Commission (NLRC) has exclusive appellate jurisdiction over all cases decided by Labor Arbiters, compulsory arbitrators, and voluntary arbitrators in appropriate cases provided in Article 263.

Non-lawyers may appear only if they represent themselves or if they represent their organization or members thereof.

No. No attorney’s fees, negotiation fees, or similar charges of any kind may be imposed on any individual member arising from collective bargaining negotiations or conclusion of the collective agreement. Exception: attorney’s fees may be charged against union funds in an amount agreed upon by the parties. Any contrary agreement is null and void.

All disputes/grievances/matters arising from implementation or interpretation of a collective bargaining agreement, including disciplinary actions imposed or to be imposed on members of the contracting union, must be threshed out in accordance with the grievance procedure provided in the agreement.


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