Legal basis and referenced measures
- The Order grounds its labor-protection and welfare orientation on Article II of the 1987 Philippine Constitution.
- It also anchors State policy in Article 3 of the Labor Code (P.D. 442).
- It cites Department Order No. 6, Series of 1998 as prescribing guidelines for a comprehensive program package for displaced workers and providing employment facilitation assistance.
- It cites Administrative Order No. 185, Series of 1998 as establishing the DOLE GATT-Assisted Rural Works program to provide wage employment to displaced workers through public works projects.
- The Order directs its financial control rules for certain situations in COA Circular 96-003.
- The Order ties a revocation/rescission mechanism to Article 1191 of the Civil Code of the Philippines.
Program policy, rationale, and objectives
- The Rural Works Program operates as a temporary work job placement in community-based labor-intensive projects to ease adverse effects of the economic crisis.
- The Program is designed to respond to employment impacts from reforms connected to the country’s GATT-WTO, trade liberalization, and globalization commitments.
- The Program aims to generate productive infrastructure in rural areas while encouraging community participation to enhance sustainability and foster community ownership.
- The Program includes social infrastructure but gives it less priority than productive infrastructure.
- The Program is a joint undertaking of DOLE and Program proponents, and line agencies may coordinate with proponents to implement their rural works programs.
- The Program uses a cost-sharing approach for labor at a 60%-40% arrangement (DOLE counterpart and proponent counterpart) to minimize cost while maximizing benefits for displaced workers.
- DOLE shall continually allocate funds so the Program can ultimately cover all regions of the country.
- The Program objectives are:
- To provide temporary wage employment for displaced workers through placement in community-based works projects to meet basic daily needs and cope with the economic crisis until alternative employment is found (Objective 1).
- To harness displaced workers’ skills through community-based works (Objective 2).
- To collaborate and coordinate with LGUs, NGOs, POs, socio-civic organizations, organizations of producers, and/or trade unions to mitigate unemployment effects (Objective 3).
Coverage, clientele, and eligible projects
- The Program shall be implemented nationwide.
- Initial implementation shall be in selected provinces in Regions IX, X, XI, XII and CARAGA.
- The target clientele consists of workers who suffered diminution or loss of income from displacement and/or less working hours due to impacts of the economic crisis.
- The target clientele must desire immediate employment for income and livelihood, must show willingness to participate, and must have capacity to handle manual labor.
- Eligible funded projects include:
- Economic/productive infrastructure projects, such as rehabilitation of farm-to-market roads, irrigation canals, construction or reconstruction of wooden bridges, post harvest facilities, and water pumps.
- Social infrastructure projects, such as repair and maintenance of common public facilities, cleanliness, beautification, and eco-tourism projects.
- Agro-forestry projects, such as communal planting, replanting (including reforestation), and seeding undertakings.
- Economic/productive infrastructure projects receive priority emphasis over other rural works projects under the Program.
Express definitions under the Order
- Displaced Workers are workers who suffered diminution or loss of income due to displacement from work and/or less working hours brought about by the impact of the economic crisis and/or El Niño/La Niña phenomena.
- Local Government Units (LGUs) are territorial and political subdivisions of the State exercising autonomy for self-reliant development and effective partnership in attaining national goals, including provinces, cities, and municipalities created by law based on indicators of viability such as income, population, and land area, and projected capacity to provide services.
- Non-Government Organizations (NGOs) are non-stock, non-profit private voluntary organizations committed to socio-economic development and established primarily for service.
- Peoples Organizations (POs) are self-help groups of basic sector and/or disadvantaged groups composed of members sharing a common bond of interest who voluntarily join to achieve a lawful common social or economic end; cooperatives are considered as POs for purposes of this definition.
- Socio-civic Organizations are non-profit organizations aimed at developing the social and cultural aspects of people in the community.
- Proponents are the prospective employers of displaced workers acting as social partners of DOLE in Program implementation, including LGUs, NGOs, POs, socio-civic organizations, organizations of producers, employers’ organizations, trade unions, and other organizations of workers.
- Public Employment Service Offices (PESOs) are multi-service facilities providing information and assistance designed to link skills with jobs.
- Labor-Intensive projects are rural works implemented by proponents employing more workers rather than using equipment usually in the agricultural setting.
- Community-based works are projects identified by the community to be undertaken by displaced workers found in the community.
- Productive Infrastructure are projects sustainable enough for the community to regularly collect tolls or fees after completion.
- Social Infrastructure are projects meant to address social needs of the community without pecuniary returns.
- Project Cost refers to the 60% DOLEs counterpart in the wages and salaries of displaced workers participating in labor-intensive projects.
Implementation workflow and responsibilities
- DOLE-RO promotional activities are undertaken through selected PESOs, using strategies that include:
- meetings with prospective proponents;
- assisting communities develop project ideas; and
- media campaigns.
- DOLE-RO selects the provincial site based on:
- high incidence of unemployment caused by the current economic crisis;
- willingness of the community and proponents to participate; and
- presence of a PESO.
- A DOLE-RO Project Management Team (DOLE-RO PMT) is created, composed of representatives from different DOLE divisions, and performs:
- evaluation of project proposals from LGUs, NGOs, and POs;
- technical assistance extension to proponents as needed;
- endorsement of feasible proposals to the DOLE-RO Regional Director for approval;
- status notification to proponents; and
- monitoring of project implementation based on approved proposals.
- The proponent prepares and submits the project proposal to the DOLE-RO PMT for evaluation.
- The DOLE-RO PMT evaluates feasibility; if feasible, it endorses the proposal to the DOLE-RO Regional Director for approval, and it notifies the proponent upon approval.
- Approval authority depends on project cost range:
- Project proposals less than 1M are approved by the DOLE-Regional Director.
- Project proposals more than 1M are subject to deliberation of the DOLE-GATT Task Force and approval by the Secretary.
- Upon approval, a Memorandum of Agreement (MOA) is executed between the DOLE-RO and the proponent and serves as the basis for:
- release of Program funds to the proponent; and
- monitoring of Program implementation.
- The MOA must include:
- Program shoulders 60% of the wage, and the proponent provides the remaining 40%;
- workers are paid based on the mandated (RTWPB) daily minimum wage; and
- displaced workers receive first priority in placement.
- The LGU through its PESO performs registration, recruitment, and selection of displaced workers, and workers listed in the DOLE roster of displaced workers are the priority beneficiaries.
- The proponent coordinates with the provincial PESO for job vacancies for the approved rural works project.
- Displaced workers register with the PESO for employment facilitation and assistance.
- The PESO manager screens displaced workers, matches skills with job requirements, issues job referrals duly certified by the Provincial Labor Employment Officer, and orients displaced workers on terms and conditions of employment.
- Employment is formalized through a job contract executed between the proponent (employer) and displaced workers.
- The job contract must state:
- specific tasks;
- duration of employment; and
- the corresponding minimum wage as mandated by the RTWPB.
- The job contract forms part of the basis for monitoring project implementation.
- Role assignments include:
- The PESO registers and screens displaced workers, issues job referrals, and orients displaced workers.
- The Proponent prepares and submits proposals, coordinates for job vacancies, facilitates job contracts, monitors implementation, prepares project completion and monthly progress reports required by DOLE-RO, and pays the 40% wage share.
- The DOLE-ROs ensure placement in approved projects, select target sites, facilitate MOA signing, prepare administrative and financial requirements, monitor implementation and submit monthly progress reports to the BRW, and pay the 60% wage share.
- The BRW oversees overall Program implementation.
- Program monitoring is performed by the DOLE-RO PMT in coordination with the proponent through monthly field visits to verify:
- activities match the approved proposal;
- displaced workers are absorbed; and
- compliance with MOA and job contract terms and conditions.
- A monthly progress report is submitted by the DOLE-RO to the BRW every 7th day of the succeeding reporting period.
- The proponent submits a project completion report to the DOLE-RO within one month after project completion.
- DOLE-RO consolidates completion records and submits a consolidated report to the Central Office.
- Program evaluation is performed upon completion: the DOLE-RO PMT assesses impact in terms of achievement of project objectives, effects on beneficiaries’ socio-economic way of life, and efficiency of service delivery.
Proponent requirements and financial releases
- Proponents must submit project proposals to the DOLE-RO PMT for evaluation.
- Proponents must coordinate with the provincial PESO for job vacancies for approved rural works projects.
- Proponents must facilitate job contract execution and monitor implementation.
- Proponents must prepare a project completion report and monthly progress reports required by DOLE-RO.
- Proponents must pay the 40% share of displaced workers’ wages.
- Proponents (except LGUs) must be registered or accredited by any government agency.
- Proponents must show proof of capability to pay the 40% wage share as determined and evaluated by the DOLE-RO.
- Funds are released through the following sequence:
- The DOLE-BRW, through the FMS, transfers grant funds to DOLE-ROs based on an allocation schedule.
- The RO-IMSD releases grant funds to the proponent based on the approved project proposal and a duly notarized MOA.
- A resolution from the Sangguniang Bayan of the participating LGU is attached to the MOA.
- Release of funds to the proponent must occur not later than ten (10) working days after the MOA signing.
- In line with COA Circular 96-003, assistance of PHP 300,000.00 or less per project may be released in full.
- For projects with funding requirements exceeding PHP 300,000.00, assistance may be released in tranches, with release scheduling dependent on project nature and phases and activities.
Financial control rules and penalties
- Funds must be used exclusively for the purpose reflected in the approved project proposal.
- Deviations require prior written application by the proponent and approval of the DOLE-RO.
- Unauthorized deviations are grounds for termination of the MOA, without prejudice to DOLE’s right to pursue legal action to protect government interests.
- If projects are not implemented within 2 months from fund release date, the DOLE-RO may deem the MOA revoked or rescinded without judicial action under Article 1191 of the Civil Code of the Philippines.
- In cases of revocation/rescission under the 2-month rule, the DOLE-RO immediately withdraws the funds.
- For unreasonable delay, the proponent may be charged a penalty of 1/10% of the total project cost per day.
- If unused funds for a particular portion or phase exceed 15% of the amount released, revision of the project schedule may be allowed upon prior written application and approval of the DOLE-RO, and the MOA must be amended accordingly.
- If unused funds do not exceed 15%, no MOA revision is needed, but the proponent must submit written justification for the delay; otherwise, DOLE-RO may withdraw unused funds with corresponding penalty charges.
- The proponent must keep a separate book of accounts for the project.
- The separate book of accounts must be open for inspection or audit by authorized DOLE officers.
- Upon project completion, the proponent must submit a Report of Disbursement with appropriate receipts and supporting documents.
- Any unused or unliquidated amount must be returned to the DOLE-RO.
Compliance mandate and disciplinary consequences
- All concerned must strictly comply with the Order’s provisions.
- Failure to comply subjects parties to disciplinary action under existing laws, rules, and regulations.
Program duration and adoption
- The Order is adopted on 29 Oct. 1998 and signed by DOLE Secretary Bienvenido E. Laguesma.
- The Order takes effect immediately.