Policy and purpose
- The Letter of Instructions mandates Government support for the development of the Filipino overseas construction industry.
- It requires complementary policies that align the export of Filipino construction workers with the Government’s concern for protection and welfare of workers.
- It targets recurring incidents where Filipino construction workers are recruited by or for foreign contractors under conditions inconsistent with the development of the overseas construction industry and lacking safeguards for workers’ well-being.
- It requires clear assignment of responsibilities among government agencies regulating overseas construction company operations and implementing workers’ welfare policies.
- It directs measures to anticipate and prevent similar recruitment and welfare problems in the export of workers in industries other than construction.
Covered activities and priority industries
- The Letter of Instructions applies to the exportation of Filipino construction workers.
- It restricts exportation to ensure that the export process is consistent with worker protection and welfare.
- It also directs measures to anticipate abuses that use tourism travel as a means to obtain overseas employment.
- It addresses exportation beyond construction by requiring preventive measures in industries other than construction.
Licensing and eligibility to export workers
- Only Filipino construction companies may export Filipino construction workers, effective this date.
- The Ministry of Labor and the Overseas Construction Board are tasked to determine the appropriate rules and regulations to implement this export restriction.
- The Ministry of Labor shall process construction workers for overseas employment only if the workers are employed by companies registered with the Overseas Construction Board.
One-year registration transition for existing exporters
- Companies that are registered with the Bureau Employment Services, Ministry of Labor but not registered with the Overseas Construction Board may continue exporting Filipino construction workers.
- Such companies must register with the Overseas Construction Board within one (1) year from the date of the Letter of Instructions.
Contract upgrading for labor-supply subcontractors
- The Overseas Construction Board, in consultation with the Ministry of Labor, shall establish and implement rules requiring “labor supply only” Filipino subcontractors in overseas projects to upgrade their contracts.
- Contract upgrading must occur within a reasonable period, not exceeding two (2) years from the date of the Letter of Instructions.
- Upgrading means taking on additional responsibility in project implementation, including providing materials, equipment, management, and other added responsibilities, rather than supplying labor only.
Limits on recruitment and placement—foreign government employment
- The Overseas Employment Development Board must limit its recruitment and placement of Filipino construction workers to placements where workers will be employed by foreign government in projects supervised and administered by such governments.
- Workers must be placed specifically as employees of the foreign governments.
Anti-abuse measures against tourism travel employment
- The Minister of Labor, the Minister of Foreign Affairs, the Minister of Tourism, the Minister of Finance, and the Officer-in-Charge of the Travel Processing Center must form a Committee.
- The Committee must establish measures to inhibit the abuse of tourism travel as a means to obtain overseas employment contrary to the purpose and intent of the Letter of Instructions.
Corporate-group development of overseas worker export
- The Ministry of Labor must establish measures to develop the exportation of Filipino workers in corporate groups rather than as individuals.
- The corporate-group development requirement applies to other industries such as mining, hotel administration, and ports/stevedoring operations (in addition to the construction industry framework).
Implementation responsibilities and coordination
- The Ministry of Labor is responsible for processing construction workers for overseas employment under the registration requirement tied to the Overseas Construction Board.
- The Overseas Construction Board is responsible for setting and implementing rules on contract upgrading and for defining implementing regulations with the Ministry of Labor.
- The Overseas Employment Development Board is responsible for limiting recruitment and placement to foreign government employment arrangements as prescribed.
- The Committee composed of specified Ministers and the Travel Processing Center Officer-in-Charge is responsible for anti-abuse measures related to tourism travel.
- The Ministry of Labor is responsible for measures to develop corporate-group exportation in other industries.
Named officials and agencies
- The Letter of Instructions directs actions involving the Ministry of Labor, Ministry of Foreign Affairs, Ministry of Tourism, Ministry of Finance, Overseas Construction Board, Overseas Employment Development Board, Bureau Employment Services (Ministry of Labor), and the Travel Processing Center.
- It designates the Officer-in-Charge of the Travel Processing Center as part of the Committee tasked to inhibit tourism-travel abuses.