WHEREAS,
the overseas employment development of the Government undertaken
through the Ministry of Labor has generated an explosion of the
presence abroad of Filipino workers, now estimated to be around 1.7
million in 107 countries of the world;chanroblesvirtualawlibrary
WHEREAS, there is every indication that the overseas demand for
Filipino workers would continue to increase in the coming years;chanroblesvirtualawlibrary
WHEREAS, because of the volatile situation in many countries hosting
this labor force, the Government is continually under stress in efforts
to provide overseas Filipino workers adequate protection;chanroblesvirtualawlibrary
WHEREAS, in response to the distressed conditions of many of these
workers, the Government, under Letter of Instructions No. 537 issued on
May 1, 1977, authorized the creation in the Ministry of Labor of a
Welfare and Training Fund for Overseas Workers to be funded with
contributions from overseas employers of Filipino workers; chanroblesvirtualawlibrary
WHEREAS, it is deemed that the objectives and purposes of the Fund as
set forth in LOI No. 537 can best be served by now formalizing
operations into a comprehensive Welfare Fund. chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
Order and Decree:cralaw:red
Section 1. Welfare Fund for Overseas Workers. — There
is hereby created a "Welfare Fund for Overseas Workers," hereinafter
referred to as The Welfund which shall be used for the purpose of
providing social and welfare services to Filipino overseas workers,
including insurance coverage, legal assistance, placement assistance,
and remittance services.
Section 2. Fund Source. — All contributions to the
Welfare and Training Fund collected pursuant to Letter of Instructions
No. 537 issued on May 1, 1977 shall be transferred to the Welfund. Fees
and other charges may be imposed by the Overseas Employment Development
Board, the Bureau of Employment Services, and the National Seamen
Board, subject to the approval of the Minister of Finance. Such fees,
charges and other collections shall accrue to the Welfare and Training
Fund.
Section 3. Administration. — The Welfund shall be
administered by a Board of Trustees consisting of the Minister of Labor
as Chairman, the Deputy Minister of Labor as Vice-Chairman, and the
Executive Director of the Overseas Employment Development Board, the
Executive Director of the National Seamen Board, the Director of the
Bureau of Employment Services, the Administrator of the Welfund, and
one representative each from the management and labor sectors who shall
be appointed by the President, as members. chanroblesvirtualawlibrary
An Administrator shall be appointed by the President upon
recommendation of the Minister of Labor, who shall have the
qualifications, rank and compensation of a Bureau Director.
Section 4. Responsibility and Powers. — The Board of
Trustees of the Welfund shall have the following responsibilities and
powers:cralaw:red
a. To formulate and implement measures and programs
to attain the fund's objectives and purposes;chanroblesvirtualawlibrary
b. To enter into agreements and contracts in
connection with its operations and objectives;chanroblesvirtualawlibrary
c. To manage Fund resources subject to the provisions
of Sec. 5 hereof; and
d. To issue rules and regulations to carry out the
objectives and purposes of the Welfund and the provisions of this
Decree.
Section 5. Fund Management. — The Welfund shall be
recorded as Special Account in the General Fund and transactions in it
shall be subject to such rules and regulations as may be formulated by
the Minister of Finance, who shall act in consultation with the
Minister of Labor and the Minister of the Budget. A maximum of five per
cent (5%) of any investment income earned by the Fund may be utilized
for operational expenses, except as may be approved by the President.
Such operational expenses shall be subject to the usual budgetary
process established by Sec. 40 of P.D. No. 1177 and to the rules on
organization, compensation and honoraria determined for agencies of the
government under P.D. No. 985.
A fund staff shall be formed within the Office of the Minister of
Labor, whose compensation and operating expenses shall be charged to
fund income, subject to the limits provided under this Section.
Section 6. Repeal Clause. — Letter of Instructions
No. 537 and any and all laws, decrees, executive orders, rules and
regulations or parts thereof in consistent with this Decree are hereby
repealed and\or modified accordingly.
Section 7. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 1st day of May, in the year of Our Lord, nineteen hundred and
eighty.
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