Creating the Middle East and Africa Regional Labor Office and for Other Purposes

Case Overview and Summary

Summary of Executive Order No. 787

Creation of the Middle East and Africa Regional Labor Office
- A Regional Labor Office for the Middle East and Africa ("Office") is created, attached to the Ministry of Labor and Employment for policy and program coordination. (Section 1)
- The Office headquarters shall be in Jeddah, Saudi Arabia with an operational support staff in Manila. (Section 1)
- The Office shall be the sole agency to coordinate all labor training, employment, and workers' welfare functions and operations, including labor attache activities in the Middle East and Africa. (Section 1)

Head of the Office
- The head of the Office shall have the rank of Deputy Minister and Ambassador (Chief of Division II). (Section 2)

Area of Coverage
- The Office shall cover the following countries: Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, UAE, Iraq, Jordan, Lebanon, Iran, North and South Yemen, Nigeria, Libya, Malta, and Cyprus, and such other areas designated by the President. (Section 3)

Functions and Jurisdiction of the Office
- Undertake and coordinate all labor, employment, and welfare service activities in the covered areas, including liaison with relevant agencies and entities in the host countries. (Section 4a)
- Promote Filipino manpower and expertise in consonance with a sound market development plan. (Section 4b)
- Protect the interests and promote the welfare of Filipino workers. (Section 4c)
- Maximize foreign exchange generation from Filipino workers and service companies. (Section 4d)
- Undertake cultural, welfare, information, and legal assistance to Filipino workers and companies. (Section 4e)
- Enter into contracts with the private sector, whether Filipino or foreign, for the promotion of Filipino manpower and services in the area. Any commission, fee, or other income shall be constituted into a revolving fund for the operational expenses of the Office. (Section 4f)
- Approve, endorse, process, and monitor the implementation of all contracts or agreements entered into by Filipino companies and their foreign principals/clients/partners or by workers and their employers in the covered areas. (Section 4g)
- Hear, try, and decide cases and all matters involving employer-employee relations, including money claims arising out of or by virtue of any law or contracts involving Filipino workers for overseas employment in the area, including disability or death claims. The decision of the Office shall be final and executory, subject only to appeal to the Minister of Labor and Employment, whose decision is final and unappealable. (Section 4h)
- Suspend or revoke authorities to participate and deploy workers of agencies or companies in the covered areas for violation of any provision of the Labor Code as amended and of this Order, and impose fines or other penalties on recruiters, contractors, principals, or workers. (Section 4i)
- Maintain a permanent and integrated Registry of all workers and companies employing Filipinos in the area of coverage, including all contracts entered into by these companies and workers. (Section 4j)

Assistance and Coordination with Pertinent Offices
- The Office may call upon, enlist the assistance, and coordinate with the following agencies and other offices as necessary: (Section 5)
- The overseas employment offices of the Ministry of Labor and Employment
- The Ministry of Foreign Affairs
- The Ministry of Tourism
- The Construction Industry Authority
- The Central Bank of the Philippines
- The Ministry of Justice
- The Manila International Airport Authorities
- The One-Stop Processing Center in the Ministry of Labor and Employment
- The Labor Assistance Center at the Manila International Airport

Funding, Staffing, and Compensation
- The Office shall initially be funded out of contributions from the Workers' Welfare Fund (WELFUND) of Seven Million Pesos (P7,000,000.00), which shall be released immediately by the Minister of the Budget. (Section 6a)
- Thereafter, the Welfund shall allocate one-fourth of the preceding year's incremental collections as an annual contribution to the operations of the Office. (Section 6a)
- The annual operating budget of the Office shall be included in the General Appropriations Act. (Section 6a)
- The Office shall prepare a staffing pattern for approval by the Minister of Labor and Employment, consistent with its functions and responsive to the requirements of the area services in accordance with existing Civil Service and OCPC rules. For those on foreign assignment, the appropriate foreign service guidelines shall apply. (Section 6b)

Release of Accrued Deposits to the Welfare Fund for Overseas Workers
- The Minister of the Budget shall immediately release from the National Treasury to the Welfare Fund for Overseas Workers the total accrued deposits to the National Treasury from welfare fund contributions of the Bureau of Employment Services, the Overseas Employment Development Board, and the National Seamen Board in accordance with Presidential Decrees 1694 and 1809. (Section 7)

Implementing Rules and Regulations
- The head of the Office shall prepare the implementing rules and regulations of this Order for approval by the Minister of Labor and Employment within thirty (30) days from its effectivity. (Section 8)

Audit Controls
- The Chairman of the Commission on Audit shall take steps to install adequate controls on the expenditure of the Welfare Fund as it relates to this Executive Order. (Section 9)

Effectivity
- This Order shall take effect immediately. (Section 10)