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Executive Orders

Reorganizing the Ministry of Labor and Employment and For Other Purposes

Executive Order No. 126

EXECUTIVE ORDER NO. 126 January 31, 1987

REORGANIZING THE MINISTRY OF LABOR AND EMPLOYMENT AND FOR OTHER PURPOSES

RECALLING that the reorganization of the government is mandated expressly in Article II, Section I (a), and Article III of the Freedom Constitution;

HAVING IN MIND that pursuant to Executive Order No. 5 (1986), it is directed that necessary and proper changes in the organizational and functional structures of the government, its agencies and instrumentalities, be effected in order to promote efficiency and effectiveness in the delivery of public services;

CONSIDERING that it has become necessary to introduce critical structural and functional changes in the Ministry of Labor and Employment to make it more responsive to the urgent demands of national economic recovery;

BELIEVING that the same Ministry has to streamline its operations by rationalizing its functions, structure and organization to make it more efficient and effective in undertaking its principal mission of translating the declared policy of the state on labor into meaningful program on employment promotion, manpower development and...

Reorganizing the Ministry of Labor and Employment

Declaration of Policy (Sec. 3): The State shall afford protection to labor, promote full employment, ensure equal work opportunities, and regulate worker-employer relations. It shall assure workers' rights to self-organization, collective bargaining, security of tenure, and humane working conditions.

Mandate and Objectives (Sec. 4):
- Promote gainful employment opportunities and optimize manpower utilization.
- Advance workers' welfare by providing just and humane working conditions.
- Maintain industrial peace by promoting harmonious and stable employment relations.

Powers and Functions (Sec. 5):
- Formulate policies, plans, and programs for manpower development, training, allocation, and utilization.
- Protect interests of local and overseas workers by securing equitable employment terms and providing social services.
- Regulate employment of aliens, including registration/work permit system.
- Formulate wage and income policy guidelines.
- Recommend adjustments in wage structures.
- Provide safe, decent, and improved working conditions, especially for women and young workers.
- Maintain harmonious and stable labor relations system.
- Uphold workers' and employers' right to organize and promote free collective bargaining.
- Ensure fair and expeditious settlement of labor disputes through various modes.

Minister of Labor and Employment (Sec. 6):
- Advise the President on executive orders, regulations, and legislative proposals related to labor and employment.
- Formulate policies, guidelines, rules, and regulations to carry out Ministry policies, plans, programs, and projects.
- Issue orders, directives, rules, and regulations to carry out labor and employment policies, plans, programs, and projects.
- Provide overall direction, supervision, and control over all offices under the Ministry.
- Coordinate with other government offices, labor organizations, employers associations, and other groups.
- Evaluate the Ministry's policy, plan, program, and project accomplishments.
- Prepare reports for the President and public.
- Delegate authority for performance of any function to Ministry officers and employees.
- Exercise other powers and functions assigned by the President or provided by law.

Deputy Ministers (Sec. 8): Up to four Deputy Ministers appointed by the President shall assist the Minister within their assigned functional areas of responsibility.

Assistant Ministers (Sec. 9): Up to four Assistant Ministers appointed by the President shall assist the Minister and Deputy Ministers within their assigned functional areas.

Structural Organization (Sec. 10): The Ministry shall consist of the Ministry proper (Office of the Minister, Deputy and Assistant Ministers, Services, and Staff Bureaus) and its Regional Offices.

Services (Secs. 11-17):
- Planning Service: Planning, programming, project development, evaluation, and management information system.
- Administrative Service: Records management, supplies, equipment, collections, disbursements, building administration and maintenance, security, and custodial work.
- Human Resource Development Service: Training, education, development, personnel programs, selection, placement, performance evaluation, employee relations, and welfare.
- Financial and Management Service: Budgetary, financial, management improvement, and internal control matters.
- Legal Service: Legal advice, opinions on labor laws, assisting in suits involving the Ministry, and acting as principal counsel.
- International Labor Affairs Service: Monitoring and implementing international labor obligations, courtesies, and facilities, providing staff support and policy guidelines for overseas labor officers, and serving as an instrumentality for technical cooperation programs.
- Information and Publications Service: Public relations programs, disseminating information on labor and employment, and answering public queries.

Bureaus (Sec. 18):
- Bureau of Local Employment
- Bureau of Women and Young Workers
- Bureau of Rural Workers
- Bureau of Labor Relations (except functions absorbed by National Mediation and Conciliation Board)
- Bureau of Working Conditions

Attached Agencies (Sec. 19):
- National Wages Council
- Philippine Overseas Employment Administration
- Employees' Compensation Commission (reorganized to include Executive Director as ex-officio member)
- National Manpower and Youth Council
- National Labor Relations Commission
- Overseas Workers' Welfare Administration (renamed from Welfare Fund for Overseas Workers' Administration)
- Maritime Training Council
- National Maritime Polytechnic

Center for Labor Studies (Sec. 20): A newly created Center for Labor Studies shall absorb the research and publication functions of the abolished Institute of Labor and Manpower Studies.

Bureau of Labor and Employment Statistics (Sec. 21): A newly created Bureau of Labor and Employment Statistics shall absorb the functions of the abolished Labor Statistics Service.

National Conciliation and Mediation Board (Sec. 22): A newly created National Conciliation and Mediation Board shall absorb the conciliation, mediation, and voluntary arbitration functions of the Bureau of Labor Relations.

Transfer (Sec. 23): The National Productivity Commission is transferred from the National Economic Development Authority and attached to the Ministry.

Regional Offices (Sec. 24): The Ministry is authorized to establish Regional Offices in each administrative region, headed by a Regional Director.

New Structure and Pattern (Sec. 25): The new position structure and staffing pattern shall be approved by the Minister within 120 days. Incumbents whose positions are not included or who are not reappointed shall be separated from service and receive benefits.

Prohibition Against Reorganizational Change (Sec. 26): No change in the reorganization shall be valid except upon prior approval of the President.

Funding (Sec. 27): Funds needed shall be taken from funds available in the Ministry.

Implementing Authority of Minister (Sec. 28): The Minister shall issue necessary rules, regulations, and issuances for effective implementation.

Transitory Provisions (Sec. 29): Rules for abolition/transfer of entities/functions, including transfer of appropriations, funds, records, equipment, facilities, assets, liabilities, and personnel.

Change of Nomenclatures (Sec. 30): In case of a new Constitution providing for a presidential form of government, the Ministry shall be called Department of Labor and Employment, and the titles of Minister, Deputy Minister, and Assistant Minister shall be changed to Secretary, Under Secretary, and Assistant Secretary, respectively.

Notice or Consent Requirement (Sec. 31): If any reorganizational change requires notice to or consent of creditors pursuant to any agreement, such requirement shall be complied with prior to implementation.

Separability Clause (Sec. 32): If any portion is declared unconstitutional, other portions shall remain in effect.

Repealing Clause (Sec. 33): All inconsistent laws, ordinances, rules, regulations, and issuances are repealed or modified accordingly.

Effectivity (Sec. 34): This Executive Order shall take effect immediately upon approval.

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