AN ACT GOVERNING THE OPERATIONS AND ADMINISTRATION OF THE OVERSEAS WORKERS WELFARE ADMINISTRATION

Sixteenth Congress
Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-seventh day of July, two thousand fifteen.

REPUBLIC ACT No. 10801

AN ACT GOVERNING THE OPERATIONS AND ADMINISTRATION OF THE OVERSEAS WORKERS WELFARE ADMINISTRATION

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

CHAPTER I
TITLE, POLICY AND OBJECTIVES

SECTION 1. Short Title. – This Act shall be known as the “Overseas Workers Welfare Administration Act”.

SECTION 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 Filipino 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.

SECTION 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

SECTION 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.

SECTION 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).

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

CHAPTER III
DEFINITION OF TERMS

SECTION 7. Definition of Terms. – As used in this Act:

CHAPTER IV
MEMBERSHIP, CONTRIBUTION AND COLLECTION

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

SECTION 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.

SECTION 10. Power of the Board to Adjust the Membership Contribution. – Based on actuarial studies and taking into consideration the welfare and interest of the member-OFWs, the OWWA Board may adjust or modify the amount of membership contribution.

SECTION 11. Proof of Membership. – Upon payment of the required contribution, an OWWA member shall be issued an official receipt, an OWWA E-Card, identification card, or other proof of membership. No additional or extra charges shall be levied on the member-OFW.

The OWWA shall maintain a comprehensive database of member-OFWs, which shall be updated regularly.

SECTION 12. Separate Accounting of Land-Based and Sea-Based Members’ Contributions. – For a more effective financial management, the membership contributions of land-based and sea-based members shall be accounted for in two (2) separate books of accounts.

SECTION 13. Authorized Collecting Officers. –

SECTION 14. Reportorial Requirements. – The collecting officer, deputized collecting officer, or the accredited collecting agent shall prepare and submit the required monthly reports to the OWWA Central Office in the Philippines.

SECTION 15. Handling, Deposit and Remittance of Collection. – The OWWA shall ensure that the handling, deposit and remittance of collections shall be in accordance with the existing rules and regulations of the Commission on Audit (COA), Department of Budget and Management (DBM), and other concerned agencies.

SECTION 16. Sanctions for Erring Officers. – Corresponding administrative sanctions and other disciplinary measures, including recall from post, suspension, or separation from service, shall be imposed upon any officer who violates Sections 14 and 15 of this Act.

SECTION 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.

SECTION 18. Payment of Contribution or OWWA Fee by Employer. – Contributions to the OWWA Fund must be paid by the employers or principals, or in their default, by the recruitment/manning agency in the case of new hires. The POEA shall ensure that this stipulation is made an integral part of the overseas employment contract.

SECTION 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 V
THE OWWA BOARD OF TRUSTEES

SECTION 20. The OWWA Board of Trustees. – To carry out the purposes of this Act, the OWWA shall be directed and controlled by a Board of Trustees which shall act as its policy-making body. It shall be composed of the following members:

The Trustees holding office as members of the OWWA Board at the time of the effectivity of this Act shall continue to serve until the expiration of their term of appointments.

In case of vacancy in any of the appointive positions in the OWWA Board, the vacancy shall be filled by the subsequent nomination of the respective sector concerned, in the same manner as the selection of the predecessor. Such successor shall hold office for the unexpired term.

SECTION 21. Per Diem. – The members of the OWWA Board shall not receive any compensation but shall be provided with per diem at rates allowed under existing rules and regulations.

SECTION 22. Responsibilities and Powers of the Board of Trustees. – The Board shall exercise the following specific powers and duties:

CHAPTER VI
BOARD MEETINGS, PROXIES, AND RECORDS MANAGEMENT

SECTION 23. Schedule of Meetings. – The regular meetings of the Board shall be held every last Friday of the month. If a change of date becomes necessary, the meetings shall be held at the most convenient time set by the Board.

Special Board meetings and executive meetings may be scheduled as the need arises. Special Board meetings may be called upon by the Chairperson or upon the instance of five (5) members of the Board.

SECTION 24. Proceedings of the Board. – The proceedings of the Board shall be governed by the following rules:

The minutes of the meeting shall contain the attendance, business arising from the minutes of the previous meeting, agreements reached, corresponding resolutions, other items noted or discussed, and instructions issued by the Board.

All minutes of meetings and Board Resolutions, tape recordings, and other documents pertaining to the business of the Board shall be kept and archived pursuant to standard records management systems, procedures and shall be made accessible to the public at all times.

CHAPTER VII
OWWA SECRETARIAT

SECTION 25. The OWWA Secretariat. – The OWWA Secretariat shall be the implementing arm of the OWWA.

SECTION 26. Duties and Responsibilities of the OWWA Secretariat. – The OWWA Secretariat shall perform and assume the following duties and responsibilities:

SECTION 27. The OWWA Administrator. – The management and supervision of the OWWA shall be vested in the Administrator. As the Chief Executive Officer of the Secretariat, the Administrator shall oversee the overall operations of the Secretariat, which shall include the general supervision and control of all its personnel and resources, and the assumption of full responsibility and accountability thereof.

The Administrator must possess good leadership and managerial skills, and shall be appointed by the President of the Philippines. The Administrator shall report to the President, through the Secretary of the DOLE, and shall perform the duties and functions stated in this Act and all the necessary and related functions of the office of the Administrator, subject to the policies and rules prescribed by the OWWA Board.

SECTION 28. The Deputy Administrators. – Two (2) Deputy Administrators shall assist the Administrator in the management and supervision of operations of the OWWA. There shall be one (1) Deputy Administrator for Administration and Fund Management, and one (1) Deputy Administrator for Operations. They shall also be appointed by the President upon the recommendation of the Administrator. They must also possess good leadership and managerial skills. The Board may assign specific functional responsibilities to the Deputy Administrators.

SECTION 29. Regional and On-site Welfare Offices. – The OWWA shall maintain Regional and On-site Welfare Offices under the Philippine Overseas Labor Offices (POLOs) of the DOLE.

CHAPTER VIII
PERSONNEL AND STAFFING PATTERN

SECTION 30. Authority of the Board to Reorganize the Administration. – Notwithstanding the provisions of existing laws, the OWWA Board shall conduct a management audit within one hundred twenty (120) days from the effectivity of this Act and submit to the DBM a proposed reorganization plan of the OWWA not later than one (1) year after the audit, subject to the limitations provided under this Act and based on the following criteria:

SECTION 31. Qualifications Upgrading Program. – The OWWA Board shall design and establish a qualifications upgrading program for the staffing of the OWWA, in coordination with the DOLE and the Civil Service Commission (CSC), within one hundred twenty (120) days from the effectivity of this Act: Provided, That those who are already in the service from the effectivity of this Act shall have, not later than five (5) years, obtained the required academic degree and/or qualifications counted from the implementation of the qualifications upgrading program: Provided, further, That those who are already in the service from the effectivity of this Act shall have, not later than one (1) year, obtained the necessary CSC qualification required for the position they are currently holding: Provided, finally, That said personnel have obtained at least a satisfactory performance rating.

SECTION 32. New Structure and Staffing Pattern. –

SECTION 33. General Qualifications for Appointment. – The general qualifications for appointment of OWN A personnel shall be in accordance with the minimum qualification standards requirements set by the CSC. The OWWA may hire experts in actuarial studies, information technology, finance and investment, and such other fields as may be deemed necessary in the implementation of its programs and services.

CHAPTER IX
OWWA BENEFITS AND SERVICES

SECTION 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.

SECTION 35. Benefits and Services to OFWs. –

SECTION 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.

CHAPTER X
THE OWWA TRUST FUND

SECTION 37. The OWWA Fund. – The Welfare Fund for Overseas Workers created under Letter of Instruction No. 537 and Presidential Decree No. 1694, as amended by Presidential Decree No. 1809, is hereinafter referred to as the OWWA Fund. The OWWA Fund is a private fund held in trust by the OWWA. Being a trust fund, no portion thereof or any of its income, dividends or earnings shall accrue to the general fund of the National Government. Neither shall any amount or portion thereof be conjoined with government money, nor revert to the National Government. In the same manner, it is exempted from the “one fund doctrine” of the government.

SECTION 38. Purpose of the OWWA Fund. – The OWWA Fund can only be used for the purposes for which it was created, that is, to serve the welfare of member-OFWs and their families which shall include the financing of core programs and services of the OWWA.

No funds shall be withdrawn from the OWWA Fund to respond, aid, supplement, or in any manner augment any required expenditure by other government agencies.

SECTION 39. Source of the OWWA Fund. – The OWWA Fund is the sum total of the amounts under the management and fiscal administration of the OWWA Board and the Secretariat, including the twenty-five US dollars (US$25.00) contributions that shall accrue to the Fund as fees, investment and interest income, and income from other sources.

SECTION 40. Disbursement of the OWWA Fund. – Any provision of existing law to the contrary notwithstanding, all incomes generated by the OWWA shall, upon their collection, be retained by the OWWA and disbursed at the discretion of the Board for providing services and other benefits of the OWWA general membership and their families.

SECTION 41. Trustees of the Fund. – The Board is designated as the trustee of the OWWA Fund. It is bound by a fiduciary duty to manage the Fund with extraordinary diligence and with utmost skill, care and judiciousness.

SECTION 42. Transparency. – The OWWA Fund shall be managed with full transparency and full public disclosure. The OWWA shall make available all records of how the funds are utilized, disbursed, and invested, in accordance with existing laws.

SECTION 43. Reporting of the OWWA Fund Collection and Utilization. – Within fifteen (15) days after receipt of audited reports from the COA, the OWWA Board of Trustees shall submit to the Congress and the President of the Philippines a report showing the total collections of, and the disbursements from, the OWWA Fund and shall publish the electronic copy of the report and make them available online, in a format that is searchable, accessible and useful to the public.

CHAPTER XI
INVESTMENT ADMINISTRATION: SAFEGUARDS

SECTION 44. Safeguards of the OWWA Fund; Acquired Assets; Unredeemed Investments. –

SECTION 45. General Investment Policy. – Upon approval of the Board, all OWWA investments shall be placed only in government securities and bonds which provide optimum earnings, liquidity and protection of the Fund. Portfolio management of investible funds shall be outsourced to GFIs.

SECTION 46. Examination and Valuation of the Funds. – The OWWA shall make a periodic actuarial examination and valuation of its funds in accordance with accepted actuarial principles.

CHAPTER XII
FISCAL AND BUDGET POLICY: MANAGEMENT OF OWWA FUND

SECTION 47. Budget for Benefits and Services. – The annual budget for benefits and services to OWWA members and their families shall be sourced from the OWWA funds.

SECTION 48. Budget Preparation and Approval. – In preparing the annual budget for benefits and services, the OWWA shall follow the national government budget system, format and cycle.

The Board shall approve the annual budget, by a majority vote of all its members.

SECTION 49. Reenacted Budget. – In case the proposed annual budget sourced from the OWWA Fund has not been approved by the Boar d at the start of the year, the OWWA shall operate within the budget level of the previous year allocated on a month-to-month basis. All savings realized in the previous year shall be deducted from the current year’s budget.

SECTION 50. Budget Realignment. – Realignment of funds sourced from the OWWA Fund including adjustments in targets shall be submitted to the Board for approval. Similarly, in the event that extraordinary circumstances may occur which require sourcing of additional funds from the OWWA Fund beyond the coverage of the approved budget, the same shall be submitted to the Board for approval.

SECTION 51. Branch Accounting System; Financial Reports; Auditing Procedures; Annual Reports. – The OWWA Regional Units shall maintain their respective books of accounts which shall be consolidated by the central office.

The OWWA shall install sound internal control and monitoring systems and submit quarterly prescribed Financial Statements to the COA, such as income statement, balance sheet, and cash flow as prescribed in post auditing reports by the COA.

The OWWA Secretariat shall submit a monthly fund utilization report to the Board, copies of which shall be made available to Congress. It shall also submit an Annual Report on its overall performance for the previous year within the first sixty ‘ (60) days of the following year to the OWWA Board, the Congress and the President of the Philippines, through the DBM.

SECTION 52. Chart of Accounts. – The OWWA shall adopt the appropriate and standard chart of accounts as prescribed by the COA

CHAPTER XIII
APPROPRIATION FROM THE NATIONAL GOVERNMENT

SECTION 53. Appropriation from the National Government. – The amount needed to carry out the initial implementation of this Act shall be charged against the current operative budget sourced from the internal funds of the OWWA. Thereafter, such lump sum representing the responsibility of the National Government for the continued operations and maintenance of the OWWA shall be included in the annual General Appropriations Act (GAA).

Congress shall annually appropriate the necessary amount to meet the funding requirement for personal services (PS) and the maintenance and other operating expenses (MOOE) of the OWWA. Nothing in this Act shall prevent the National Government from allocating funds for the operation or implementation of any of the programs or services stated herein, including the budget for capital outlay (CO).

CHAPTER XIV
MISCELLANEOUS PROVISIONS

SECTION 54. Rebates for Long-time Members. – In recognition of the contribution of long-time members to the OWWA Fund, the OWWA shall develop and implement a program for the grant of rebates or some form of financial assistance to OFWs who have been members of the OWWA for at least ten (10) years and who, along with their families, have not availed of any service or benefit from the OWWA. The provision and the amount of rebates shall be based on actuarial study commissioned by the OWWA for this purpose.

SECTION 55. Procurement System. – The OWWA procurement system shall be governed by Republic Act No. 9184, also known as the “Government Procurement Reform Act”.

SECTION 56. Exemption from Tax, Legal Process and Lien. – All laws to the contrary notwithstanding, the OWWA and all its assets and properties, all contributions collected and all accruals thereto and income or investment earnings therefrom as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee, charge, or customs or import duty. All benefit payments made by the OWWA shall likewise be exempt from all kinds of taxes, fees or charges, and shall not be liable to attachments, garnishments, levy or seizure by or under any legal or equitable process, either before or after receipt by the person or persons entitled thereto, except to pay any debt of the member to the OWWA. No tax measure of whatever nature enacted shall apply to the OWWA, unless this section is expressly, specifically and categorically revoked or repealed by law and a provision is enacted to substitute or replace the exemption referred to herein. Any tax assessment imposed against the OWWA shall be null and void.

SECTION 57. Transitory Provision. – All facilities, equipment, supplies, records, files, appropriations and funds under the OWWA, as organized under Letter of Instruction No. 537 and Presidential Decree No. 1694, as amended by Presidential Decree No. 1809, and renamed under Executive Order No. 126, series of 1987, shall remain with the OWWA.

Current officials and employees of the OWWA shall continue to draw their salaries, benefits and emoluments from the OWWA Fund until such time, but not later than one (1) year from the effectivity of this Act, that the corresponding funds from the National Government shall have been appropriated and released to the OWWA.

SECTION 58. Implementing Rules and Regulations. – Within ninety (90) days from the effectivity of this Act, the present OWWA Board shall promulgate the rules and regulations implementing the provisions of this Act. The implementing rules and regulations issued pursuant to this section shall take effect fifteen (15) days after its publication in two (2) newspapers of general circulation.

SECTION 59. Separability Clause. – If any provision of this Act is declared unconstitutional, the remainder of this Act or any provision not affected thereby shall remain in full force and effect.

SECTION 60. Repealing Clause. – Letter of Instruction No. 537, Presidential Decree No. 1694 and Presidential Decree No. 1809 are hereby repealed. All other laws, decrees, executive orders, rules and regulations inconsistent with the provisions of this Act are likewise repealed.

SECTION 61. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,

This Act which is a consolidation of House Bill No. 4990 and Senate Bill No. 2955 was finally passed by the House of Representatives and the Senate on February 2, 2016.

Approved: MAY 10 2016

(Sgd.) BENIGNO S. AQUINO, III
President of the Philippines