Reorganizing the Ministry of Labor and Employment, Creating the Philippine Overseas Employment Administration, and for Other Purposes

Case Overview and Summary

Summary of Executive Order No. 797:

Reorganizing the Ministry of Labor and Employment (Sec. 1)
• Primary policy, programming, coordinating and administrative entity for labor and employment
• Primary function: develop employment opportunities, protect workers, promote industrial peace

Minister of Labor and Employment (Sec. 2)
• Appointed by the President
• Assisted by Deputy Ministers appointed by the President
• Authorized to determine and assign functional areas of responsibility to Deputy Ministers

Bureau of Local Employment (Sec. 3)
• Assumes functions of Bureau of Apprenticeship and domestic employment functions of Bureau of Employment Services
• Absorbs applicable functions, appropriations, records, equipment, property, and personnel of abolished units

Philippine Overseas Employment Administration (Sec. 4)
• Assumes functions of Overseas Employment Development Board, National Seamen Board, and overseas employment functions of Bureau of Employment Services
• Absorbs applicable functions, appropriations, records, equipment, property, and personnel of abolished units
• Formulates and undertakes systematic program for promoting and monitoring overseas employment of Filipino workers, considering domestic manpower requirements and protecting their rights (Sec. 4a)
• Has original and exclusive jurisdiction over cases involving employer-employee relations arising out of laws or contracts involving Filipino workers for overseas employment, including seamen (Sec. 4a)
• Governed by a three-man Board composed of the Minister as Chairman, the Administrator, and a third member appointed by the President for a term of two years (Sec. 4b)
• Principal subdivisions established along major functional areas of welfare services, placement and market development, and regulation, each headed by a Director appointed by the President (Sec. 4c)
• Advisory Board for Overseas Employment and Advisory Board for Seamen created with private sector composition to advise the Administration (Sec. 4d)
• Regional Labor Office for the Middle East and Africa forms part of the Administration (Sec. 4e)

Bureau of Working Conditions (Sec. 5)
• Formerly Bureau of Labor Standards
• Assumes functions of the abolished Institute of Occupational Health and Safety

Ministry Proper (Sec. 6)
• Composed of Office of the Minister, Planning Service, Labor Statistic Service, Financial and Management Service, Administrative Service, Information and Publication Service, International Labor Affair Service, and Legal Service
• Deputy Ministers form part of the Office of the Minister

Bureaus and Offices under the Ministry's Supervision and Control (Sec. 7)
• Bureau of Local Employment
• Bureau of Labor Relations
• Bureau of Working Conditions
• Bureau of Rural Workers
• Bureau of Women and Minors
• Institute of Labor and Manpower Studies

Entities under the Ministry's Administrative Supervision (Sec. 8)
• National Labor Relations Commission
• National Wages Council
• Philippine Overseas Employment Administration
• Welfare Fund for Overseas Workers

Corporation Attached to the Ministry for Policy and Program Coordination (Sec. 9)
• Employees Compensation Commission

Abolished Entities (Sec. 10)
• Bureau of Employment Services
• Bureau of Apprenticeship
• Free Legal Assistance Office
• National Seamen Board
• Overseas Employment Development Board
• Population/Family Planning Office
• Their functions, appropriations, records, equipment, property, and personnel transferred to appropriate units of the Ministry

Regional Offices (Sec. 11)
• Ministry-wide regional offices under supervision and control of Office of the Minister
• Headed by Regional Director assisted by Assistant Regional Director
• Regional Director has supervision and control over Ministry's activities in the region
• Abolition of Arbitration Branches, Field Services Divisions, and Labor Relations Divisions in regional offices
• Positions of Conciliators and Med-Arbiters with starting rates of compensation equivalent to two salary ranges below Arbiters in National Labor Relations Commission
• Minister authorized to effect regional reassignment of Conciliators and Med-Arbiters

Offices Overseas (Sec. 12)
• Ministry shall have offices overseas to carry out responsibilities effectively, subject to prior approval by the President
• Labor Attache or equivalent shall have supervision over all other personnel of the Minister assigned to an embassy or foreign service post overseas, including those of the Philippine Overseas Employment Administration

Internal Reorganization (Sec. 13)
• Minister has authority to reorganize internal structure of various offices and units under the Ministry

Implementation (Sec. 14)
• Ministry authorized to issue orders, rules and regulations for implementation
• Requires approval of Office of Budget and Management for new staffing pattern, salary rates, organizational structure, and realignment of appropriations
• Minister may appoint qualified personnel of abolished entities to new staffing pattern, and those not appointed are deemed laid off

Presidential Appointees (Sec. 15)
• Presidential appointees of bureaus, offices, and other entities under the Ministry's supervision and control or administrative supervision are laid off, unless reappointed by the President
• Career Executive Service Officers may be reappointed or reassigned by the President upon recommendation of the Minister, or assigned to Career Executive Service Board for placement in other ministries or agencies
• Career Executive Service Officers assigned to Career Executive Service Board continue to receive salaries from available and applicable funds
• Those not placed in appropriate positions within six months after assignment to Career Executive Service Board shall be laid off

Benefits and Gratuities (Sec. 16)
• Those laid off under this Executive Order shall be entitled to all benefits and gratuities provided for under existing laws

Interim Arrangements (Sec. 17)
• Except as determined by the Minister, present incumbents of positions in reorganized units of the Ministry shall continue to exercise their usual functions, duties, and responsibilities, pending issuance of implementing orders

Funding (Sec. 18)
• Necessary amount shall be made available to the Ministry from any applicable appropriation item, subject to approval of the President upon recommendation of the Office of Budget and Management

Repealing Clause (Sec. 19)
• All laws, decrees, orders, proclamations, rules, regulations, or parts thereof, which are inconsistent with any provisions of this Executive Order are repealed or modified accordingly

Separability Clause (Sec. 20)
• Any portion or provision of this Executive Order that may be declared unconstitutional shall not have the effect of nullifying the other provisions, provided that such remaining portions can still stand and be given effect to accomplish the objectives

Effectivity (Sec. 21)
• This Executive Order shall take effect immediately