Title
Reorganization of Ministry of Labor and POEA
Law
Executive Order No. 797
Decision Date
May 1, 1982
Executive Order No. 797 reorganizes the Ministry of Labor and Employment in the Philippines, establishing it as the primary entity for labor and employment matters, creating the Philippine Overseas Employment Administration, and abolishing and transferring functions of various bureaus and offices within the Ministry.

Law Summary

Leadership and Organizational Structure

  • The Ministry is headed by a Minister appointed by the President.
  • Deputy Ministers may be appointed to assist the Minister, with clear substantive roles but excluding primarily administrative tasks.

Creation of the Bureau of Local Employment

  • A new Bureau of Local Employment is established by merging the Bureau of Apprenticeship and domestic employment functions of the Bureau of Employment Services.
  • This Bureau inherits the assets and personnel of the abolished units.

Creation and Powers of the Philippine Overseas Employment Administration (POEA)

  • The POEA is created to take over functions from the Overseas Employment Development Board, National Seamen Board, and overseas employment functions of the Bureau of Employment Services.
  • Its responsibilities include the promotion and monitoring of overseas employment of Filipino workers, considering domestic manpower needs.
  • It holds exclusive jurisdiction over disputes involving overseas Filipino workers’ employer-employee relations, including money claims.
  • The POEA Board consists of the Minister (Chairman), the Administrator, and a third member appointed by the President, serving a renewable two-year term.
  • The Administration is internally organized into subdivisions: welfare services, placement and market development, and regulation.
  • Advisory Boards for Overseas Employment and Seamen, largely composed of private sector members, provide advice to the Administration.
  • The Regional Labor Office for the Middle East and Africa is incorporated under the Administration.

Renaming and Expanded Functions of the Bureau of Working Conditions

  • The Bureau of Labor Standards is renamed as the Bureau of Working Conditions.
  • It assumes the functions of the Institute of Occupational Health and Safety.

Composition of the Ministry Proper

  • The Ministry includes the Office of the Minister, Planning Service, Labor Statistics Service, Financial and Management Service, Administrative Service, Information and Publication Service, International Labor Affairs Service, and Legal Service.
  • Deputy Ministers are part of the Office of the Minister.

Supervision and Control by the Ministry

  • The Ministry supervises bureaus such as Local Employment, Labor Relations, Working Conditions, Rural Workers, Women and Minors, and the Institute of Labor and Manpower Studies.
  • It administratively supervises entities including the National Labor Relations Commission, National Wages Council, POEA, and Overseas Workers Welfare Fund.

Policy and Program Coordination Attachment

  • The Employees Compensation Commission is attached to the Ministry for policy and program coordination.

Abolishment and Transfer of Certain Entities

  • Several entities are abolished, with their functions, personnel, and resources transferred to appropriate Ministry units. These include:
    • Bureau of Employment Services
    • Bureau of Apprenticeship
    • Free Legal Assistance Office
    • National Seamen Board
    • Overseas Employment Development Board
    • Population/Family Planning Office

Regional Offices

  • The Ministry may establish regional offices under the Office of the Minister.
  • Each regional office is headed by a Regional Director, assisted by an Assistant Regional Director as needed.
  • Labor conciliators and Med-Arbiters in these offices are compensated two salary grades below National Labor Relations Commission Arbiters.
  • Minister has authority over regional reassignments to enhance service.

Overseas Offices

  • Overseas offices may be established subject to Presidential approval.
  • The Labor Attaché has supervisory authority over Ministry personnel abroad, including POEA staff.

Authority to Reorganize Internal Structure

  • The Minister may reorganize Ministries' internal offices and units as enumerated.

Powers to Issue Implementing Rules and Staffing

  • The Ministry may issue rules and regulations, subject to budget office approval regarding staffing and compensation.
  • Personnel from abolished agencies may be appointed to new positions; those not appointed are considered laid off.

Layoff and Reappointment Provisions for Presidential Appointees and Career Executive Service Officers

  • Presidential appointees of bureaus and other supervised or administered entities are laid off unless reappointed by the President.
  • Career Executive Service Officers may be reassigned or reappointed; otherwise, assigned to the Career Executive Service Board.
  • Those not placed within six months shall be laid off.

Benefits for Laid-Off Personnel

  • Individuals laid off are entitled to benefits and gratuities provided under existing laws.

Continuity of Functions of Present Incumbents

  • Current incumbents continue their usual functions until appropriate implementing orders are issued.

Funding Provisions

  • Necessary funds shall be made available from applicable appropriations subject to Presidential and budgetary approval.

Repeal of Inconsistent Laws and Provisions

  • Existing laws and orders inconsistent with this Executive Order are repealed or modified accordingly.

Severability Clause

  • Any unconstitutional portion shall not nullify the remaining provisions, provided they can still stand independently.

Effectivity

  • The Executive Order takes effect immediately upon issuance.

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