1. EXECUTIVE ORDER NO.

 51, Series of 2018 IMPLEMENTING ARTICLE 106 OF THE LABOR CODE OF

2. THE PHILIPPINES, AS AMENDED, TO PROTECT THE RIGHT TO SECURITY OF TENURE OF ALL
WORKERS BASED ON SOCIAL JUSTICE IN THE 1987 PHILIPPINE CONSTITUTION.

Article 106, Labor Code:

ART. 106. Contractor or subcontractor.  - Whenever an employer enters into a contract with
another person for the performance of the former’s work, the employees of the contractor and
of the latter’s subcontractor, if any, shall be paid in accordance with the provisions of this Code.

In the event that the contractor or subcontractor fails to pay the wages of his employees in
accordance with this Code, the employer shall be jointly and severally liable with his
contractor or subcontractor to such employees to the extent of the work performed under the
contract, in the same manner and extent that he is liable to employees directly employed by
him.

The Secretary of Labor and Employment may, by appropriate regulations, restrict or prohibit the
contracting-out of labor to protect the rights of workers established under this Code. In so
prohibiting or restricting, he may make appropriate distinctions between labor-only contracting
and job contracting as well as differentiations within these types of contracting and determine
who among the parties involved shall be considered the employer for purposes of this Code, to
prevent any violation or circumvention of any provision of this Code.

There is "labor-only" contracting where the person supplying workers to an employer does not
have substantial capital or investment in the form of tools, equipment, machineries, work
premises, among others, and the workers recruited and placed by such person are performing
activities which are directly related to the principal business of such employer. In such cases, the
person or intermediary shall be considered merely as an agent of the employer who shall be
responsible to the workers in the same manner and extent as if the latter were directly
employed by him.

EXECUTIVE ORDER NO. 51, Series of 2018

 Signed May 1, 2018 by Pres. Rodrigo Duterte
 Took effect fifteen days after its publication

What is this Order all about?

This order absolutely prohibits illegal contracting or subcontracting. As provided under Section 2
of the Order, “Contacting or Subcontracting, when undertaken to circumvent the worker’s right
to security of tenure, self-organization and collective bargaining, and peaceful concerted
activities, is hereby strictly prohibited pursuant to the 1987 Constitution.”

Why is it prohibited?
In relation to Section 18, Article II of the 1987 Constitution, wherein it provided that the State
affirms labor as a primary social economic force, and the policy of the government to protect
the workers’ right to security of tenure, this Order was issued.

As provided under this Order, Security of Tenure refers to the right of employees not to be
dismissed or removed without just or authorized cause, and observance of due process
consistent with the Constitution, Labor Code, and prevailing Jurisprudence.
Who are covered under this Order?
Under Section 1 of this Order, it shall apply to all parties including cooperative engaged in
contracting and subcontracting arrangement.

Who may implement this Order?

As provided under Section 2 of this Order, the Secretary of Labor and Employment may declare
activities to be contracted out, in consultation with the National Tripartite Industrial Peace
Council as under Article 290 (c) of the Labor Code.

Powers of the Secretary of Labor and Employment

Section 4 of this Order enumerates the powers of the Secretary of Labor and Employment or
his/her duly authorized representatives in implementing the provisions of this Order. It states
that “[In relation] with Article 128 of the Labor Code, the Secretary of Labor and Employment,
through his/her duly authorized representatives and deputized labor and employment
representatives, shall conduct inspection and establishments so to ensure compliance with all
labor laws, including this Order.”

They shall have:

a) full access to employer’s records and premises as well as to any personnel at any time of
the day or night whenever work is being undertaken therein, and the right to copy
therefrom;
b) the power to question any employee and investigate any fact, condition, or matter
which
may be necessary to determine violations or which may aid in the enforcement of the
Labor Code, as amended, and other relevant labor law, order, or rules and regulations;
c) the power to issue compliance orders after due hearing to give effect to the labor
standards provisions of the Labor Code, and other labor legislation, rules and
regulations, in relation to the visitorial power of the Secretary of Labor and Employment
in Article 128 (b).

Compliance orders affirmed by the Secretary of Labor and Employment shall be

immediately executory unless restrained by an appropriate court.

Effect of Violation of this Order

The PRINCIPAL engaged in any arrangement in violation of this Order shall be considered as a
DIRECT employer of the contractor’s or subcontractor’s workers for all purposes.

Inter-agency Cooperation
As provided under Section 6 of this Order, all government agencies in the Executive Branch are
directed to cooperate and extend to the Department of Labor and Employment all appropriate
assistance to carry out the objective of this Order.

Source: https://www.bworldonline.com/understanding-executive-order-51/
 AS WITH every Labor Day presidential pronouncement in the past, President Rodrigo R.
Duterte’s announcement of his Executive Order (EO) No. 51, regarding contractualization in the
workplace, prompted criticism among stakeholders — from the muted to the outright vocal,
especially by labor groups.
These stakeholders were already privy to the contents of EO 51, but it wasn’t until May 2,
following Mr. Duterte’s announcement, that Malacañang released the order, which continues to
stir discussion as to what it really means for contractuals.

Contractualization became a major election issue during Mr. Duterte’s 2016 campaign. After
some two years in office with drafts of the EO sitting on his desk, Mr. Duterte finally issued an
executive order that, at best, elicited mixed reactions.

But the Department of Labor and Employment (DoLE) has endeavored to tackle the
phenomenon of contractualization in line with EO 51’s provision on the agency’s monitoring
authority. Meanwhile, the Senate committee on labor and employment has completed the
proposed Security of Tenure and End of Endo Act of 2018 for consideration by the plenary.
Sought to explain EO 51, Director Benjo M. Benavidez of DoLE’s Bureau of Labor Relations said
the order just “reinforces existing provisions. So if you notice, there are provisions there in the
executive order that are already found in the Labor Code of the Philippines.”
“The very nature of an executive order is to execute and implement existing laws, rules, and
regulations. It (the EO) cannot amend or supplant existing provisions of law,” he added.
Mr. Benavidez also said EO 51 is still “a reinforcement because we added some provisions,”
referring to Section 4 of the order on DoLE’s inspection powers — which, to be sure, is
“consistent with Article 128 (Visitorial and Enforcement Power) of the Labor Code.”
He further cited another order which is more comprehensive in defining the working terms
under contractualization: Department Order (DO) No. 174, which Labor Secretary Silvestre H.
Bello III issued in March last year.

Besides labor-only contracting, “other prohibited contracting practices can be found in Section 6
of DO 174,” Mr. Benavidez said. “Some of the mentioned prohibited activities in the DO are
contractors/subcontractors repeatedly hiring employees after the end of a contract of short
duration… and employees of contractors/subcontractors doing the same job as the principal’s
regular employees.” — Gillian M. Cortez

3. DEPARTMENT ORDER NO. 174, SERIES OF 2017: RULES IMPLEMENTING ARTICLES 106 TO 109 OF
THE LABOR CODE, AS AMENDED

Prior Order: D.O. No. 18-A, Series of 2011 (precursor)

Guiding Principle
Non-permissible forms of contracting and subcontracting arrangements undermine the
Constitutional and statutory right to security of tenure of workers.

This Order is implemented in furtherance of the protection against illegal contracting or

subcontracting.
From DO18-A

Regulation of Labor-only Contracting

As provided under Section 4 of this Order, the Secretary of Labor and Employment shall be the
one to regulate contracting/subcontracting arrangements by absolutely prohibiting labor only
contracting, and restricting job contracting allowed under the Labor Code, as amended.

When is there Labor-Only Contracting?

As provided under Section 5 of this Order, there is Labor-only contracting when there is an
arrangement wherein:

(a) (i) The contractor or subcontractor does not have substantial capital; OR
(ii) The contractor/subcontractor does not have investments in the form of tools, equipment,
machineries, supervision, work, premises, among others; AND
(iii) The contractor/subcontractor’s employees recruited and placed are performing activities
which are directly related to the main business operation of the principal.

OR

(b) The contractor/subcontractor does not exercise the right to control over the performance of
the work of the employee.

Substantial Capital refers to paid- up capital stocks/shares of at least PHP 5 Million in the case
of corporations, partnerships and cooperatives. PHP 5 Million net worth in the case of a single
proprietorship (Sec. 3, [L], DOLE D.O. No. 174 S. 2017).

*In DO 18-A, it was only 3M.

Other Illicit Forms of Employment Arrangements
Section 6 of this Order also prohibits other illicit forms of employment arrangements, which are
as follows:

(a) where the principal farms out work to a “Cabo,” which is defined as a person/group/labor
group which, under the guise of a labor organization/cooperative/entity, supplies workers to
an employer, with or without any monetary consideration, whether in the capacity of an
agent of the employer or as an ostensible independent contractor;
(b) contracting out of job or work through an inhouse agency or in-house cooperative, which
merely supplies workers to the principal;

(c) contracting out of a job or work by reason of a strike/lockout whether actual or imminent;
(d) contracting out of a job or work being performed by union members, when such will
interfere with, restrain, or coerce employees in the exercise of their right to self
organization;
(e) requiring contractor’s/subcontractor’s employees to perform functions which are currently
being performed by the regular employees of the principal;
(f) requiring the contractor’s/subcontractor’s employees to sign, as a precondition to
employment or continued employment, an antedated resignation letter, a blank payroll, a
waiver of labor standards including minimum wages and social or welfare benefits, or a
quitclaim releasing the principal or contractor from liability as to payment of future claims,
or requiring the employee to become a member of a cooperative;
(g) repeatedly hiring by the contractor/subcontractor of employees under an
employment contract of short duration;
(h) requiring employees under a contracting/subcontracting arrangement to sign a contract
fixing the period of employment to a term shorter than the term of the Service Agreement,
unless the contract is divisible into phases for which substantially different skills are
required and this is made known to the employee at the time of engagement; and
(i) such other practices, schemes, or employment arrangements designed to circumvent the
right of workers to security of tenure.

Permissible Contracting Agreements

Section 8 provides for permissible contracting agreements:

(a) the contractor/subcontractor is engaged in a distinct and independent business and

undertakes to perform the job or work on its own responsibility, according to its own
manner and method;
(b) the contractor/subcontractor has substantial capital to carry out the job farmed out by the
principal on his account, manner, and method, investment in the form of tools, equipment,
machinery, and supervision;
(c) in performing the work farmed out, the contractor or subcontractor is free from the
control and/or direction of the principal in all matters connected with the performance of
the work except as to the results thereof; and
(d) the Service Agreement ensures compliance with all the rights and benefits for all the
employees of the contractor/subcontractor under the labor laws.

Security of Tenure and Rights under the Labor Code

Section 10 of this Order provided that the contractor’s/subcontractor’s employees shall be
entitled to security of tenure and all the rights and privileges under the Labor Code, which
includes:

(a) safe and healthful working conditions;

(b) labor standards, such as, but not limited to service incentive leave, rest days, overtime pay,
holiday pay, 13th month pay, and separation pay;
(c) retirement benefits under the SSS or retirement plans of the contractor/subcontractor;
(d) social security and welfare benefits; and
(e) self-organization, collective bargaining, and peaceful concerted activities, including the right
to strike.

Further, Section 11 of this Order also requires the execution of:

(1) an Employment Contract between the contractor/subcontractor and its employees, which
the former must furnish/inform the employee in writing on or before the first day of his/her
employment; and
(2) a Service Agreement between the contractor/subcontractor and the principal.

(Note that non-submission of the Service Agreement is a ground for the cancellation of the
contractor’s registration as provided for under Section11 of the Order.)

Section 12 Effect of Violation

In the event that there is a finding that the contractor/subcontractor is engaged in labor only
contracting or if there is a finding of violation of Section 10 and/or 11 of this Order, the principal
shall be deemed the direct employer of the contractor’s/subcontractor’s employees.

In other words, the contractor/subcontractor will be treated only as an agent of the principal,
who will then be liable to the employees, not only with the payment of wages, but also for all
their entitlements and benefits under the labor laws.

Procedure for registration

It shall be mandatory for all persons or entities acting as contractors to register with the DOLE
Regional Office where it principally operates. Failure to comply thereto creates a presumption
that the contractor is engaged in labor-only contracting.

Procedure:
1. Filing and Processing of Application – As provided under Section 16, the application, with
all supporting documents, shall be filed in triplicate in the Regional Office where the
 applicant principally operates. No application for registration shall be accepted unless all the
requirements in the preceding Section are complied with.
2. Verification Inspection – As provided under Section 17, within two (2) working days upon
receipt of the application with complete supporting documents, the authorized
representative of the Regional Director shall conduct a verification inspection on the
facilities, tools, equipment, and work premises of the applicant.
3. Approval or Denial of the Application – As provided under Section 18, the Regional Office
shall deny or approve the application within three (3) working day after the verification
inspection. Applications that fail to meet the requirements set forth in Section 15 of these
Rules shall be denied.

Section 15 Requirements:
1. to file the verified application at the DOLE Regional Office in the region where it
seeks to principally operate; and
2. to provide in the application the following information:

a. name and business address of the applicant and areas it seeks to operate;
b. names and addresses of officers (if applicant is a corporation);
c. nature of business and industry of the applicant;
d. number of regular workers and total workforce;
e. list of clients and services provided, if any;
f. description of the phases of the contract;
g. proof of compliance with the substantial capital requirement.

4. Registration Fee – Payment of registration fee of One Hundred Thousand Pesos

(P100,000.00) shall be required upon approval of the application.
5. Return of documents - Upon registration, the Regional Office shall return one set of the
duly-stamped application documents to the applicant and retain one set for its file, and
transmit the remaining set to the Bureau of Working Conditions (BWC) within five (5) days
from registration.
6. Issuance of the Certificate of Registration

Validity of Certificate of Registration

As provided under Section 20 of this Order, the contractor shall be deemed registered only on
the
date of issuance of its Certificate of Registration. The Certificate of Registration shall be effective
for two (2) years, unless cancelled after due process. The same shall be valid in the region
where it is registered. (DO 18-A validity was for 3 years)

In case the contractor has Service Agreements or operates outside the jurisdiction of the
Regional
Office where it is registered, it shall request a duly authenticated copy of its Certificate of
Registration from the registering Regional Office and submit the same to the DOLE Regional
Office
where it seeks to operate together with a copy of its Service Agreement/s in the area, for
purposes
of monitoring compliance with these Rules.
Renewal of Certificate of Registration; Requirements thereof (DO 18-A registration fee was
only Php25,000).
Section 21 of this Order provides that all registered contractors shall apply for renewal of
their Certificates of Registration thirty (30) days before the expiration of their registration to
remain in the roster of legitimate service contractors. The applicant shall pay a registration
renewal fee of One Hundred Thousand Pesos (P100,000.00) to the DOLE Regional Office.
Copies of all the updated supporting documents in letters (a) to (e) of Section 15 hereof shall be
attached to the duly accomplished application form, including the following:

a) Certificate of membership and proof of payment of SSS, PhilHealth, BIR, ECC and Pag-IBIG
contributions for the last three (3) years, as well as loan amortization; and
b) Certificate of pending or no pending labor standards violation case/s with the National Labor
Relations Commission (NLRC) and Department of Labor and Employment (DOLE). The
pendency of a case will not prejudice the renewal of the registration, unless there is a
finding of violation of labor standards by the DOLE Regional Director.

Grounds for revocation of registration

Section 23 of D.O. No. 174 provides that the registration of a contractor or sub-contractor may
be cancelled or revoked on any of the following grounds, viz:

(a) misrepresentation of facts in the application;

(b) submission of falsified/tampered application or supporting documents to the application for
registration;
(c) non-submission of the Service Agreement between the principal and the contractor when
required to do so;
(d) non-submission of the required semi-annual report;
(e) final findings that the contractor has engaged in labor only contracting and/or other illicit
formed of employment arrangements;
(f) non-compliance with labor standards and working conditions;
(g) findings of violation of the rights of contractor’s employees and provisions of Service
Agreements and Employment Contracts;
(h) non-compliance with SSS, HDMF, Pag-IBIG, PhilHealth, and Employee Compensation
Commission (ECC) Laws;
(i) collecting any fees not authorized by law and other applicable rules and regulations; and
(j) violations of any provisions of the Labor Code.

Procedure and remedy in relation to filing a complaint against a contractor/subcontractor

The proceedings before the Regional Office shall be summary in nature.

Procedure:
1. Complaints against the contractor or subcontractor based on any of the abovementioned
grounds shall be filed in writing and under oath with the DOLE Regional Office that issued
the
certificate of registration. The complaint shall contain the following:

(a) names and addresses of the complainant/s;

 (b) name and address of the contractor;
(c) Grounds for filing the complaint;
(d) when and where the action complained of happened;
(e) amount of claim, if any; and
(f) the relief sought.

2. Upon receipt of the complaint, the Regional Director shall direct, with notice to the
complainant to file a verified answer/counter affidavit within seven (7) working days without
extension, incorporating therein all pertinent documents in support of his or her defense,
with proof of service of a copy to the complainant. Failure to file an answer/counter affidavit
shall constitute a waiver on the part of the respondent. No motion to dismiss shall be
entertained;
3. The Regional Director or his or her duly authorized representative may conduct a
clarificatory hearing within seven (7) calendar days within which to file a verified
answer/counter affidavit, and may avail himself of all reasonable means to ascertain the
facts of the case, including conduct of inspection, where appropriate, and examination of
informed persons;
4. Within the said seven (7) calendar days period, the contractor shall make necessary
corrections/rectifications on the violations that are immediately rectifiable upon its initiative
in order to be fully compliant;
5. The conduct of hearings shall be terminated within ten (10) calendar days from the first
scheduled clarificatory hearing;
6. The Regional Director shall resolve the case within seven (7) working days from the date of
the last hearing. If there is no necessity to conduct a hearing, the case shall be resolved with
seven (7) working days from receipt of the verified answer/counter affidavit;

As provided in the Order, any motion for reconsideration from the Order of the Regional
Director shall be treated as an appeal.

Appeal
As provided under Section 25, the Order of the Regional Director is appealable to the Secretary
within ten (10) working days from receipt of the copy of the Order. The appeal shall be filed with
the Regional Office which issued the cancellation Order. The Office of the Secretary shall have
thirty (30) working days from receipt of the records of the case to resolve the appeal. The
Decision of the Secretary shall be final and executory after ten (10) days from the receipt thereof
by the parties. No motion for reconsideration of the Decision shall be entertained.

Effects of Cancellation once granted

1. A final Order of cancellation shall divest the contractor of its legitimate status to engage in
contracting/subcontracting. Such Order of cancellation shall be a ground to deny registration
an application for renewal of registration to a contractor under the Rules.
2. No contractor whose registration is cancelled under these Rules or any of its officers shall be
allowed to operate, and apply for new registration as contractor under either the same or
different name.
3. The cancellation of the registration of the contractor for engaging in labor-only contracting
or for violation of any of the provisions of these Rules involving a particular service
agreement
 will not, however, impair the validity of existing legitimate job-contracting arrangements the
contractor may have entered into with other principal prior to the cancellation of its
registration. Any valid and subsisting Service Agreement shall be respected until its
expiration;
thereafter, contracting with a delisted contractor shall make the principal direct employer of
all employees under the Service Agreement pursuant to Articles 106 and 109 of the Labor
Code, as amended.

As provided under Section 27 of this Order, it shall be unlawful for the principal, contractor, or
any party privy to the contract or services provided to refuse to pay or reduce the wages and
benefits, and discharge, or in any manner discriminate against the worker who has filed any
complaint on any labor standards violation, or has instituted any proceedings with regard to the
payment of wages.

As provided under Section 30, a region based tripartite monitoring team on the observance of
labor standards in contracting and subcontracting arrangements shall be constituted
as a subcommittee of the Regional Tripartite Industrial Peace Council (RTIPC) within fifteen
(15) days from the effectivity of these Rules.

It shall submit a quarterly regional monitoring report to the DOLE Secretary and to the National
Tripartite Industrial Peace Council (NTIPC). The Bureau of Working Conditions (BWC) shall ensure
the implementation of this provision, and shall conduct capacity building to the members of the
regional tripartite monitoring team.

Non-inclusion of Contractors/Subcontractors in the Construction Industry

Despite its broad and encompassing coverage, D.O. No. 174 excludes from its provisions the
contracting/subcontracting arrangements in the Construction Industry, which are covered by the
Philippine Construction Accreditation Board (PCAB), as provided under Section 33 of this
Order.

Other Industries not included (covered by a separate regulation of the DOLE, or other
government agency:

1. BPO/KPO. It does not contemplate to cover information-technology enabled services

involving an entire or specific business process such as Business Process Outsourcing (BPO)
or Knowledge Process Outsourcing (KPO) (DOLE D.O. No. 01, s. 2017).
2. Private Security Agency. Except for the registration requirement as provided in DO No. 174,
s. 2017, contracting or subcontracting arrangement in the private security industry shall be
governed by DO No. 150, s. 2016.
3. Other Contractual Relationships. DO No. 174. S. 2016 does not contemplate to cover
contractual relationship such as in contract of sale or purchase, contract of lease, contract of
carriage, contract growing/growership agreement, toll manufacturing, contract of
management, operation and maintenance and such other contracts governed by the Civil
Code and special laws.

4. REPUBLIC ACT No. 10801, AN ACT GOVERNING THE OPERATIONS AND ADMINISTRATION OF THE
OVERSEAS WORKERS WELFARE ADMINISTRATION of 2016.
Chapter I.

Sec. 2. Declaration of Policy. – It is the policy of the State to afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment opportunities for all. Towards this
end, it shall be the State’s responsibility to protect the Overseas Fili
pino Workers (OFWs).

The Overseas Workers Welfare Administration (OWWA) shall be one of the principal agencies of the
State to serve and promote the rights, interest and welfare of the OFWs and their families.

Welfare assistance, services, and programs provided by the OWWA shall be gender-responsive, taking
into consideration the different impacts of labor migration to men and women.

Sec. 3.  Objectives. – This Act is enacted to provide guidelines on matters concerning the OWWA, its
mandate, purposes and objectives, membership, collection of contributions, and availment of benefits
and services. This Act also embodies the policies on fund management, programs and services
administration.

Chapter II. NATURE, SCOPE AND FUNCTIONS OF THE OWWA

Sec. 4. Nature of the OWWA. – The OWWA is a national government agency vested with the special
function of developing and implementing welfare programs and services that respond to the needs of
its member-OFWs and their families. It is endowed with powers to administer a trust fund to be called
the OWWA Fund. Being a chartered institution, the OWWA shall not fall under any of the following
categories: government instrumentalities with corporate powers (GICPs), government corporate
entities (GCEs), government financial institutions (GFIs) and/or government-owned or -controlled
corporations (GOCCs).

The OWWA shall be an attached agency of the Department of Labor and Employment (DOLE). Its officials
and employees are covered by the Salary Standardization Law.

Sec. 5. Scope. – This Act shall apply to the OWWA, the OWWA Secretariat, the OWWA Fund, to its
member-OFWs and those who will avail of the voluntary membership program of the OWWA, and to
overseas recruitment/manning agencies/employers who are duly registered with the Philippine
Overseas Employment Administration (POEA).

Sec. 6. Functions. – The OWWA shall exercise the following functions:

(a) To protect the interest and promote the welfare of member-OFWs in all phases of overseas
employment in recognition of their valuable contribution to the overall national development effort;

(b) To facilitate the implementation of the provisions of the Labor Code of the Philippines (Presidential
Decree No. 442, as amended) and the Migrant Workers and Overseas Filipinos Act of 1995 (Republic Act
No. 8042, as amended), concerning the responsibility of the government to promote the well-being of
OFWs. Pursuant thereto, and in furtherance thereof, it shall provide legal assistance to member-OFWs;

(c) To provide social and welfare programs and services to member-OFWs, including social assistance,
education and training, cultural services, financial management, reintegration, and entrepreneurial
development services;

(d) To provide prompt and appropriate response to global emergencies or crisis situations affecting
OFWs and their families;

(e) To ensure the efficiency of collections and the viability and sustainability of the OWWA Fund through
sound, judicious, and transparent investment and management policies;

(f) To undertake studies and researches for the enhancement of the social, economic, and cultural well-
being of member-OFWs and their families;

(g) To develop, support and finance specific projects for the welfare of member-OFWs and their families;
and

(h) To ensure the implementation of all laws and ratified international conventions within its jurisdiction.

Chapter III.
Sec. 7. Definition of Terms. – As used in this Act:

(a) Compensation refers to the basic pay or salary received by an officer or employee of the OWWA,
pursuant to the official appointment, excluding per diems, bonuses, overtime pay, honoraria, allowances
and any other emoluments received that are not integrated into the basic pay under existing laws;

(b) Contribution or membership fee refers to the amount paid to the OWWA by the employer or by an
OFW in accordance with the provisions of this Act;

(c) Dependent refers to any of the following:

(1) The legal spouse;

(2) The legitimate, illegitimate, legitimated, and legally adopted child, who is unmarried, not
gainfully employed, and not over the age of majority, or is over the age of majority but
incapacitated and incapable of self-support due to a mental or physical defect; and

(3) The parents who rely primarily upon the member-OFWs for support;

(d) Non-active OWWA member refers to an OFW whose OWWA membership has expired;

(e) Non-OWWA member  refers to an undocumented OFW and who has not availed of the voluntary
membership of the OWWA;

(f) OWWA member refers to an OFW with a paid contribution or membership fee;

(g) Overseas Filipino Worker (OFW)  refers to a person who is to be engaged, is engaged, or has been
engaged in a remunerated activity in a State of which the person is not a citizen, or on board a vessel
navigating the foreign seas other than a government ship used for military or noncommercial purposes,
or on an installation located offshore or on the high seas; and

(h) Voluntary OWWA member  refers to the OFW who has availed of the voluntary membership of the
OWWA at job sites or through electronic registration.

CHAPTER IV. MEMBERSHIP, CONTRIBUTION AND COLLECTION

Sec. 8. Registration of Membership. – Membership in the OWWA may be obtained in two (2) ways:

(a) By compulsory registration upon processing of employment contracts of OFWs at the POEA; and

(b) By voluntary registration of OFWs at job sites, or through electronic registration.

Sec. 9. Amount of Contribution and Effectivity of Membership. – Membership in the OWWA, either
through the compulsory or voluntary coverage, shall be effective upon payment of membership
contribution in the amount of twenty-five US dollars (US$ 25.00) or its equivalent in the prevailing
foreign exchange rates. Such membership shall be considered active until the expiration of the OFWs
existing employment contract or after two (2) years from contract effectivity, whichever comes first.

In case of voluntary registration, membership shall be considered active until the expiration of the OFWs
existing employment contract or after two (2) years from the date of voluntary registration, whichever
comes first.

The OWWA shall be allowed to collect a subsequent membership contribution from the member-OFW
only after every two (2) years from the last membership contribution made.

xxx

Sec. 17. Prohibition Against Discrimination on Membership.  – No OFW shall be denied membership to

the OWWA by reason of age, gender, religious belief, or political affiliation. The OWWA shall take
affirmative steps to enhance the access of OFWs to its programs and services.

xxx

Sec. 19. Penalty for Violation by Recruitment/Manning Agency.  – Violation by a recruitment/manning

agency of the preceding section shall constitute an offense punishable by revocation of its license and all
its officers and directors shall be perpetually disqualified from engaging in the business of
recruitment/placement of overseas workers. Such penalty is without prejudice to any other liability
which the officers and directors may have incurred under existing laws, rules and regulations.

Chapter IX. OWWA BENEFITS AND SERVICES

Sec. 34.  Guiding Principles.  – Pursuant to its mandate, the OWWA shall provide gender-responsive
reintegration programs, repatriation assistance, loan and credit assistance, on-site workers assistance,
death and disability benefits, health care benefits, education and skills training, social services, family
welfare assistance, programs and services for women migrant workers and other appropriate programs
that provide timely social and economic services.
Nothing in this Act shall be construed as a limitation or denial of the right of an OFW to avail of any
benefit plan which may be adopted in the employment contract, or offered voluntarily by employers, or
by the laws of the receiving country, over and above those provided under this Act.

Sec. 35. Benefits and Services to OFWs.

(a) Reintegration of OFWs. – The reintegration of OFWs, taking into consideration the needs of women
migrant workers, shall be one of the core programs of the OWWA. In this regard, and for purposes of
policy and program coordination, the National Reintegration Center for OFWs created under Republic
Act No. 10022 shall be an attached office of the OWWA. It shall be headed by an Executive Director
who shall be under the supervision of the OWWA Administrator.

To be able to sustain the viability of this program, not less than ten percent (10%) of OWWA’s collection
of contribution for the immediately preceding year shall be allocated annually for the reintegration
program,

(b) Repatriation Assistance. – Consistent with the provisions of Republic Act No. 8042, as amended, the
OWWA shall assist the Department of Foreign Affairs in providing OFWs with services necessary to
facilitate repatriation, as may be required.

(c) Loan and Other Credit Assistance. – The OWWA shall provide low-interest loans to member-OFWs. It
shall have the authority to hire experts in finance or banking to assist in implementing the said loan
programs.

(d) Workers Assistance and On-site Services. – The OWWA shall sustain and maintain assistance to
member-OFWs in all its overseas and regional offices. Services shall be gender-responsive and shall
include information regarding the names, occupation/job categories and addresses of the member-
OFWs; legal assistance providing guidance and information on protection of migrant rights, including the
prevention of gender-based violence; developing materials for the predeparture orientation seminars;
conducting psycho-social counseling services; conciliation services; appropriate services and
intervention for victims of gender-based violence, and outreach missions, among others. The OWWA
shall likewise make competent representations with employers, agents, and host government
authorities to assist member-OFWs in obtaining relief from grievances and work-related issues,
including claims for unpaid wages, and illegal recruitment cases among others.

(e) Social Benefits. – A member-OFW shall be covered with the following social benefits:

(1) Death and Disability Benefits:

(i) Death Benefits. – A member shall be covered with life insurance for the duration of
his or her employment contract. The coverage shall include one hundred thousand
pesos (P100,000.00) for natural death and two hundred thousand pesos (P200,000.00)
for accidental death;

(ii) Disability and Dismemberment Benefits. – Disability and dismemberment benefits

shall be included in a member’s life insurance policy, as provided for in the impediment
schedule contained in the OWWA Manual of Systems and Procedures. The coverage is
 within the range of two thousand pesos (P2,000.00) to fifty thousand pesos
(P50,000.00);

(iii) Total Disability Benefit. – In case of total permanent disability, a member shall be
entitled to one hundred thousand pesos (P100,000.00); and

(iv) Burial Benefit. – A burial benefit of twenty thousand pesos (P20,000.00) shall be
provided in case of the member’s death.

Based on actuarial studies, the Board may increase the amount of the abovementioned benefits.

(2) Health Care Benefits. – Within two (2) years from the effectivity of this Act, the OWWA shall
develop and implement health care programs for the benefit of member-OFWs and their
families, taking into consideration the health care needs of women as provided for in Republic
Act No. 9710, or the Magna Carta of Women, and other relevant laws.

(3) Education and Training Benefits. – A member, or the member’s designated beneficiary, may
avail any of the following scholarship programs, subject to a selection process and accreditation
of participating institutions:

(i) Skills-for-Employment Scholarship Program. – For technical or vocational training

scholarship;

(ii) Education for Development Scholarship Program. – For baccalaureate programs; and

(iii) Seafarers’ Upgrading Program. – To ensure the competitive advantage of Filipino

seafarers in meeting competency standards, as required by the International Maritime
Organization (IMO), International Labor Organization (ILO) conventions, treaties and
agreements, sea-based members shall be entitled to one upgrading program for every
three (3) membership contributions.

The annual scholarship lists of all these programs shall be submitted to the Board.

Sec. 36. New Programs, Interactive Website and Extension of Services.  – The OWWA shall continue to
develop and implement new programs to meet new OFW needs and requirements as they arise, and to
assess the effectiveness of existing services and benefits in serving the welfare of OFWs.

The OWWA shall also maintain an interactive website to collect OFW feedbacks, comments, suggestions,
and complaints on existing programs and services.

The OWWA may also extend appropriate programs or services to non-members, as may be determined
by the Board.