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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The State shall, in pursuit of poverty reduction through decent jobs, sustainable enterprises and economic transformation, ensure an environment that encourages more employment and entrepreneurship opportunities, provide comprehensive support to existing and emerging businesses, particularly to the micro, small and medium enterprises (MSMEs), and improve the employability, productivity and competitiveness of Filipino workers.
On September 27, 2023, President Ferdinand Marcos signed into law the Republic Act No. 11962 or the “Trabaho Para sa Bayan Act,” which seeks to address various labor challenges in the country, leading toward a sustainable and inclusive development of the “New Philippines.”
The law focuses on improving the employability and competitiveness of Filipino workers through upskilling and reskilling initiatives, and support for MSMEs and industry stakeholder.
In order to carry out the policies of this Act, the “Trabaho Para sa Bayan Plan,” as provided herein, shall serve as the State’s master plan on employment generation and recovery to realize short-term and long-term goals and visions for the country. It shall have the following objectives:
- To stimulate national and local economic growth and development through various means, including, but not limited to, aligning investment and other incentives provided by law to the creation of more decent employment and other work opportunities to address unemployment, underemployment, youth unemployment, rising precarity and informality of working arrangements, reintegration of Overseas Filipino Workers (OFWs), and other challenges in the labor market;
- To promote the employability, competitiveness, wellness, and productivity of workers through efficient, effective, and timely delivery of industry-relevant skills training and enhancement programs, reintegration pathways, active labor market activities, and other services to allow workers to gain access to and maximize opportunities in the labor market;
- To provide support and incentives to businesses, whether existing or emerging particularly MSMEs, including increased access to financing and capital, to promote self-reliance, spur employment generation, and ensure the security and protection of employment; and
- To incentivize employers, industry stakeholders, and other private sector organizations that offer training, technology, knowledge and skills transfer, upskilling and reskilling enterprise-based training, such as apprenticeship, work immersion, or on-the-job training, and other similar activities.
Coverage: This Act shall apply to national, regional, and local government units (LGUs), without prejudice to the right of the Bangsamoro Government and its component LGU to adopt and implement projects and programs for labor and employment, consistent with national policies, laws, rules, and regulations.
The Trabaho Para sa Bayan Inter-Agency Council (TBP-IAC) created under shall formulate success measures, key performance indicators, and action components, including:
(a) Providing support for the establishment, business continuity, and growth of MSMEs, including start-ups and cooperatives, through increased access to financing, capital, and other incentives, transition of informal MSMEs to formality, and other support mechanisms;
(b) Skilling, upskilling, and reskilling the workforce, including industry-relevant skills and core skills, to improve their employability and competitiveness and to foster lifelong learning, taking into consideration the nuanced needs of workers from marginalized or vulnerable sectors;
(c) Encouraging and providing incentives to employers and other private sector organizations, including industry stakeholders, that offer training, technology, knowledge and skills transfer, upskilling and reskilling, enterprise-based training, such as apprenticeship, work immersion, or on-the-job training, recognition of prior learning and experience, and other similar activities geared towards the improvement of the workforce.
(d) Empowering the workforce on their rights and obligations under the Philippine Constitution, Presidential Decree No. 442 or the Labor Code of the Philippines, as amended, and other rules and regulations, including the right to self-organization, freedom of association, and collective bargaining, through orientations, seminars, and similar modes;
(e) Identifying priority sectors, key and emerging industries, and other activities with high employment potential for various purposes, such as encouraging domestic and foreign direct investments, implementing targeted interventions and subsidies and providing support to create value-adding supply chain;
(f) Expanding the implementation of active labor market policies, information, and programs, including employment facilitation and reintegration support for OFWs, and utilizing innovative means to improve accessibility and efficiency in delivering such services;
(g) Enhancing tripartism and social dialogue among workers, employers, and the government, and increasing the participation and representation of marginalized and vulnerable sectors in various labor issues and concerned;
(h) Addressing youth unemployment by, among others, identifying challenges in the school-to-work transition of new entrants in the labor market, including challenges confronting youth not engaged in education, employment or training (NEET);
(i) Providing standards for training and employment of apprentices, and formulating guidelines for the creation of apprenticeship programs and other enterprise-based education and training modalities to improve productivity and efficiency in the workforce;
(j) Establishing effective and inclusive grievance redress mechanisms to provide an accessible and credible channel for complaints and exact accountability to those liable for obligations and commitments;
(k) Providing support to, and promoting the welfare of, all workers in new forms of work arrangements, such as freelance work, whether in-person or through online platforms or gig economy;
(l) Formulating integrated plans and incentives to encourage and facilitate the transition of workers and enterprises from the informal to formal economy through enabling interventions, such as, but not limited to, business registration, financial literacy programs, and enrollment in social protection programs, such as the Social Security System (SSS), Philippine Health Insurance Corporation (PhilHealth), and the Home Development Mutual Fund (Pag-IBIG);
(m) Promoting the adoption of ethical and fair recruitment standards and practices to protect the rights of migrant workers, promote decent work, and enhance the global competitiveness of Filipino workers;
(n) Promoting access to and utilization of digital infrastructure in doing business among MSMEs and informal economic units to overcome the digital divide; and
(o) Contributing to the implementation of the full-cycle and comprehensive national reintegration program for documented and undocumented OFWs.
Establishment of TPB-IAC Working Groups: The creation of working groups shall be in line with the objectives and targets as may be indicated in the TPB Plan, and shall work on developing and/or enhancing employment generation and recover in specific industries and emerging sectors, such as, but not limited to, health services, construction, tourism, agriculture, information technology and business process management, and manufacturing, as well as working groups in thematic areas.
Government Job Provision: The Civil Service Commission (CSC), Commission on Audit (COA), and DBM, in consultation with relevant government agencies and LGUs, shall conduct an analysis and review of the existing hiring policies and standards of the government, including, but not limited to, the skills and competencies required, streamlining and improving the process of recruitment and selection, and identifying the appropriate manpower needs of the government.
Reporting Requirements: The TPB-IAC shall submit reports every January and July of each year to the Office of the President, Senate of the Philippines, and the House of Representatives on the following:
- Timeliness and status of implementation and accomplishments of each action component in the TPB Plan;
- Evaluation of policies, plans, programs, and projects of relevant government agencies;
- Recommendations for possible policy interventions to improve and address identified labor market challenges in the TPB Plan; and
- Other information that may be relevant.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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