Guidelines for PEZA Evolution from EPZA

Section 11 of Republic Act No. 7916 requires the Philippine Economic Zone Authority (PEZA) to evolve from the Export Processing Zone Authority (EPZA) created under Presidential Decree No. 66.
Executive Order No. 282 is issued to establish guidelines and regulations to ensure the smooth transition of EPZA into PEZA.

Section 1 provides that all powers, functions, and responsibilities of EPZA under its charter and Presidential Decree No. 66, as amended, that are consistent with Republic Act No. 7916, shall be assumed and exercised by PEZA.
Section 1 mandates that EPZA shall hereafter be referred to as PEZA.

Section 2 orders the transfer to PEZA of all funds, unexpended appropriations, properties, equipment, assets, records, choses in action, and other rights of EPZA and other export processing and/or special economic zones under its control and supervision.
Section 2 directs the PEZA Director-General to constitute a special committee to conduct a complete accounting, physical inventory, and audit.
Section 2 requires the special committee, with the assistance of the Commission on Audit, to determine and ascertain the amount, value, description, and nature of the transferred items.
Section 2 requires the audit to include liability or accountability, if any, of personnel responsible for safekeeping, custody, management, or administration.
Section 2 sets the deadline: the accounting, inventory, and audit must be conducted as soon as practicable, but not later than ninety (90) days from the effectivity of Executive Order No. 282.

Section 3(a) provides that lawful and binding contracts, agreements, obligations, and liabilities entered into by EPZA prior to the effectivity of Executive Order No. 282 remain in full force and effect.
Section 3(a) mandates recognition of such existing undertakings unless they are terminated, modified, or amended for lawful cause by the PEZA Board.
Section 3(a) requires the PEZA Board action to be upon recommendation of the Director-General.

Section 4(a) requires the Director-General, with approval of the PEZA Board, to determine and prescribe the organizational structure, staffing pattern, and personnel complement of PEZA.
Section 4(a) allows all permanent personnel of EPZA (or any government office within the ecozone) to continue performing duties and responsibilities and receiving corresponding salaries and benefits in a holdover capacity unless separated from government service.
Section 4(a) provides that services of temporary, casual and/or contractual personnel are deemed terminated after receipt of thirty (30) days notice, unless renewed and subject to the terms of Section 4.

Section 5(a) provides that permanent officers and employees of EPZA and its export processing/special economic zones whose positions are not included or incorporated under the new PEZA organizational structure and staffing pattern, or whose services are not retained, are entitled to separation pay and retirement and other benefits under the applicable benefits regulations.
Section 5(a) extends the same benefits to permanent officers and employees who voluntarily opt to retire.
Section 5(a) sets a minimum separation pay: it shall not be less than one and one-fourth (1 1/4) months for every year of service.

Section 6(a) provides that affected government-owned industrial estates and similar bodies referred to under Section 46 of Republic Act No. 7916 continue operations under their respective organic charters until PEZA sets in place the mechanism for their absorption.
Section 6(a) mandates that members of the boards of these industrial estates and similar bodies, unless otherwise directed by the PEZA Board, shall continue in office in hold-over capacity for forty five (45) days from the date of Executive Order No. 282 to wind up affairs and ensure smooth transition.
Section 6(a) allows the Chief Executive Officer or Administrator, together with management-level personnel, and such number of personnel who directly assist management as identified by the CEO or Administrator (with concurrence of the PEZA Director-General), to continue in holdover capacity to perform duties and receive salaries and benefits under the terms of the preceding sections.