Creation of a Welfare and Training Fund for Overseas Workers in the Department of Labor

May 1, 1977

LETTER OF INSTRUCTIONS NO. 537

TO : The Secretary of Labor

In view of the national policy to protect the interest and promote the welfare of Filipino overseas workers in recognition of their valuable contribution to the overall development effort and in order to facilitate the implementation of the provisions of the Labor Code, as amended, concerning the responsibility of the Department of Labor and its bureaus and attached agencies to promote the well-being of such workers, you are hereby instructed to create a Welfare and Training Fund for Overseas Workers in the Department of Labor, the main objectives and purposes of which are:

1. To provide social and welfare services to Filipino overseas workers, including insurance coverage, social work assistance, legal assistance, placement assistance, cultural services, remittance services, and the like.

2. To provide skills and career development services to Filipino overseas workers and their replacements in order to insure adequate supply of manpower for the national economy as well as for export.

3. To undertake studies and researches for the enhancement of their social, economic and cultural wellbeing.

4. To develop, support and finance specific projects for the benefit of Filipino overseas workers.

The Fund shall be financed from:

1. All earnings of the OEDB from travel services and Welfare Fund collections.

2. All Welfare Fund collections of the BES.

3. All Welfare Fund collections of the NSB.

4. All Training Fund collections of the BES, the OEDB and the NSB.

5. Donations and other contributions from employers served by the BES, the OEDB and the NSB.

6. Other donations, contributions, and other sources of income as may be determined by the Board of Trustees of the Fund.

The BES, the OEDB and the NSB are hereby directed to collect contributions for the Welfare and Training Fund for Overseas Workers in accordance with rules and regulations promulgated by the Secretary of Labor.

For the administration of the Fund, a Board of Trustees to be composed of the Secretary of Labor as Chairman, the Undersecretary of Labor as Vice Chairman, the Executive Director of the OEDB, the Executive Director of the NSB, the Director of the BES, the Director General of the NMYC and two representatives of the construction industry is hereby established. The Board shall be assisted by a secretariat, the composition and functions of which shall be determined by it.

The Board shall promulgate rules and regulations for the implementation of these instructions. cd i

The Fund shall be attached to the Department of Labor for policy and program coordination. The Commission on Audit shall assign a representative to audit the Fund.

DONE in the City of Manila, this 1st day of May, 1977.