Republic of the Philippines CITY OF SANTA ROSA

Province of Laguna

OFFICE OF THE SANGGUNIANG PANLUNGSOD

EXCERPT FROM THE MINUTES OF THE 2nd REGULAR SESSION OF SANGGUNIANG PANLUNGSOD OF THE CITY OF SANTA ROSA, LAGUNA HELD ON MONDAY, JANUARY 14, 2013 AT SANGGUNIANG PANLUNGSOD SESSION HALL, CITY OF SANTA ROSA, LAGUNA.

Presents:

Absent:

1. Hon. ARNEL DC. GOMEZ - City Vice-Mayor, Presiding Officer

2. Hon. LUISITO B. ALGABRE - SP Member

3. Hon. MYTHOR C. CENDANA - SP Member 4. Hon. LAUDEMER A. CARTA - SP Member

5. Hon. Ma. THERESA C. AALA - SP Member 6. Hon. PETRONIO C. FACTORIZA - SP Member 7. Hon. RAYMOND RYAN F. CARVAJAL - SP Member 8. Hon. ANTONIA T . LASERNA - SP Member 9. Hon. ERIC T. PUZON - SP Member 10. Hon. PAULINO Y. CAMACLANG, JR. - SP Member 11. Hon. EDWARD FERNANDITO S. TIONGCO - SP Member 12. Hon. RODRIGO B. MALAPITAN - SP Member, ABC President

1. Hon. I NA CLARIZA B. CARTAGENA - SP Member, SK President

********************* ORDINANCE NO. 1876-2012

(Authored and Motioned by SP Mem. LUISITO B. ALGABRE and seconded By SP Mem. Cendana)

AN ORDINANCE CREATING, INSTITUTING, AND APPROVING POLICI ES ON THE IMPLEMENTATION OF FLY-NOW WORK ABROAD PAY-LATER PROGRAM FOR SKILLED WORKERS AND PROFESSIONALS, APPROPRIATING AND ALLOCATING FUNDS, AND FOR OTHER PURPOSES (AS PROVIDED FOR UNDER THE APPROVED RESOLUTION NO. 13-2011).

WHEREAS, The City recognizes the role of our Overseas Filipino Workers as the primary economic force of the country and as the "Bagong Bayani" of the nation.

WHEREAS, The City is aware that there are many skilled and professional citizens of the City who are desiring to work abroad but lack the financial capability to shoulder the placement fees and other expenses related to employment abroad;

WHEREAS, The City, in order to help its cit izens who wish to work abroad, hereto establishes the FLY NOW PAY LATER PROGRAM.

WHEREFORE, BE IT ORDAINED by the Sangguniang Bayan of Santa Rosa, Laguna this 14th of January, 2012 that the City Ordinance No. 1876-2012 is hereby read as follow :

Section 1. Declaration of Policy. It is the policy of the state and the City of Santa Rosa to Section to afford full protection to labor, local and overseas, and promote full employment and equality of employment opportunities for all.

Section 2. Coverage. FLY NOW-PAY LATER PROGRAM covers all bona fide, qualified, skilled workers and professionals and residents of Santa Rosa, Laguna with approved application to travel and work abroad (from legitimate domestic and international travel agency) who are financially incapacitated to finance job placement fee and or plane fare and other related documentation expenses.

'5/F City Govern01ent Center, J.P Rizal Blvd., City of Santa Rosa, Laguna - Te/. No. (049) 530-0015 Local 5100-5104

"Serbisyong Makatao, Lungsod na Makabagon

DEFINITION OF TERMS

Section 3. Definition of Terms. For purposes of this Ordinance, the following terms shall mean:

1. Agency - shall refer to a employment or recruitment agency duly licensed and authorized by the Philippine Overseas Employment Administration to recruit workers for work abroad;

2. Beneficiary - applicant-worker or worker who has been qualified by an agency to work abroad; also called a hired worker;

3. City - shall refer to the City of Santa Rosa; 4. DFA - shall refer to the Department of Foreign Affairs; 5. Employment Contract - shall refer to an individual written agreement

between the foreign principal/employer and the worker which is in accordance with the master employment contract issued by the POEA;

6. Government - shall refer to the Republic of the Philippines; 7. Help Desk - shall refer to PESO team composed of staff the objective of which

is to facilitate in the availment of the Program; 8. License - shall refer to the document issued by the Philippine Overseas

Employment Agency authorizing a person, partnership or corporation to operate a private employment agency for deployment of workers abroad;

9. Loan - shall refer to the loan extended and granted by the City to the for the benefit of the qualified overseas Filipino worker;

10. Master Employment Contract - shall refer to the model employment agreement submitted by the foreign principal for verification and approval which contains the terms and conditions of employment of each worker hired by such principal;

11. Overseas Employment - shall refer to employment of a Filipino worker outside the Philippines covered by a valid employment contract;

12. Overseas or Migrant Filipino Worker - shall refer to a person who is to be engaged, is engaged or has been engaged in a remunerated activity in a state of which he or she is not a citizen or on board a vessel navigating the foreign seas other than a government ship used for military or non-commercial purposes or on an installation located offshore or on the high seas; to be used interchangeably with migrant worker. (Sec. 2, R.A. 10022)

13. PESO - shall refer to the City's Public Employment and Safety Office; 14. Placement Fee - shall refer to the amount charged by a private employment

agency from a worker for its recruitment and placement services; 15. POEA - shall refer to the Philippine Overseas Employment Administration; 16. Private Employment Agency - shall refer to any person, partnership or

corporation engaged in the recruitment and placement of workers for a fee, which is charged, directly or indirectly, from the workers or employers or both;

17. Program - shall refer to Fly-Now-Pay-Later scheme of the City; 18. Special Recruitment Authority - shall refer to the authority granted to an

agency to conduct recruitment outside its registered business address approved by the POEA;

19. Valid Employment Contract - shall refer to an individual written agreement between the foreign principal/employer and the worker which is based on the master employment contract approved by the POEA;

20. Verification - shall refer to the act performed by a Philippine Overseas Labor Officer, or any other officer designated by the Secretary of Labor and Employment in the Philippine Embassy or Consulate, in reviewing and verifying the recruitment documents of foreign principals, including the employment contracts of Filipino nationals, with the view to establish the existence of the employing person, company or project, its capability to hire workers at the acceptable rates, and at desirable working conditions in conformity with the minimum standards prescribed by the Administration and taking into consideration the labor laws and legislations of the host government.

THE REQUIRMENTS FOR AVAILMENT

Section 4. Qualified Beneficiaries. To be a qualified beneficiary of the program, the applicant must be a Filipino Citizen, of good moral character, and a resident of Santa Rosa for at least two (2) years.

Section 5. Documentary Requirements. An applicant must submit the following requirements before the PESO:

a. Residence Certificate from the Barangay where he resides; b. Certificate of Good Moral Character from the Barangay where he resides; c. Employment Contract duly approved/ validated by POEA; d. Police and NBI clearance; e. Certified True Copy of Birth Certificate; f. Latest Income Tax Return or Certificate of Exemption from filing ITR g. Dully accomplished Application Form h. Latest BIR Form 2316 (Withholding Tax Certificate) or Income Tax Return of

Co-Borrower; i. Photocopy of GSIS or SSS Identification Card of applicant and Co-Borrower; j . Photocopy of the Passport of the Applicant k. Master Employment Contract between the applicant and the employment

agency

Section 6. Others. - The beneficiary shall disclose the principal address, telephone number, and manager, of the employment agency where he applied.

SCREENING,PROCESSESSING, DUTIES AND RESPONSIBILITIES OF THE PESO

Section. 7. Reception of Application and Interview. The City's PESO shall receive all the application and documents of the applicant and shall conduct a preliminary interview of the applicant to determine the following:

l. To determine that the applicant's employment is through a licensed and authorized employment and recruitment agency. For this purpose, the PESO shall coordinate with the POEA to verify that the employment and recruitment agency mentioned by the applicant in the interview and application form is duly authorized and licensed by the POEA.

2. To determine that the applicant is qualified under Sec. 2 and 4. 3. To determine the completeness of the documentary requirements stated in

Sec. 5.

Section 8. Screening and Processing of Application. After verification that all the requirements are complete, the PESO shall segregate the application forms and documents based on the residence of the applicant. Considering the limited funds appropriated for this program, the selection of the beneficiary will be based on the following rules of preference:

a. For the first batch of beneficiaries, one beneficiary will be chosen coming from each barangay of the City. If there are two or more applicants from the same barangay, the first-come-first-served rule will be implemented. After choosing the first batch of beneficiary, and it appears that there is enough budget or fund available for the program, then a second and subsequent batches of beneficiaries shall be chosen; and

b. There shall be only one beneficiary per family until full payment of the loan.

Section 9 . Notice of Award. Upon determining the beneficiaries, the PESO will immediately issue a Notice of Award to the beneficiaries and a copy of the LOAN AGREEMENT, hereto attached as Annex "D", to the beneficiaries. Qualified applicant must confirm his acceptance of the award within 10 days after receipt of Notice Of Award, and must submit a duly filled-up and notarized copy of the LOAN AGREEMENT. (Rule on Document Submission must be strictly observed).

Section 10. Releasing of Loan. Upon submission of the Loan Agreement, and the post-dated checks by the co-borrower, the PESO will coordinate with the City Treasury for the release of the loan to the beneficiary. For this purpose, there is created a special fund in the amount of Seventy Thousand pesos (Php. 70,000.00), which will be used exclusively for the grant of loan under this program. The City Treasury shall make sure that the fund for this program will not be diverted and used for other purposes. The cheque must be addressed and paid to the licensed travel agency.

LIMITS AND CONDITIONS OF THE LOAN

Section 11. Limits of the Loan. The loan to be granted under this program will be limited only to a maximum of Seventy Thousand Pesos (P70, 000.00) per beneficiary, and shall cover only placement fees to be paid by the beneficiary to the employment or recruitment agency and plane tickets, if not shouldered by the principal employer.

Section 12. Conditions of the Loan. The loan will be subject to the following conditions:

1. The loan must be paid by the beneficiary on equal monthly installments, except from the first month of his deployment, based on the period of his employment contract;

2. In case of pre-termination of the employment contract without the fault of the beneficiary, the terms and conditions of payment of the unpaid portion of the loan will be subject to reconstruction, based on the present income and employment of the beneficiary here in the Philippines. For this purpose, the department head of the PESO is given the authority to negotiate and approve the reconstruction of the loan upon such terms and conditions taking into consideration the financial capability and employment of the beneficiary;

3. If the pre-termination of the employment contract is due to the fault and bad faith of the beneficiary, i.e., termination of employment with just or authorized cause, no reconstruction of loan will be allowed and the beneficiary must pay the whole unpaid amount of the loan;

4. The loan will be subject to 6% per anum interest. 5. Failure of the beneficiary to pay four consecutive monthly installments,

without demand, will make the whole amount of the loan due and demandable and the City is given the right and authority to demand payment from the co-borrower. For this purpose, the co-borrower is required to issue post-dated checks, equivalent to the monthly installments of the loan, in the name of the City of Santa Rosa, due every 20th day of the month;

6. If the beneficiary failed to pay the monthly installments due for four consecutive months and the checks issued by the borrower bounced for whatever reason, the City reserves the right to file the necessary legal action against the beneficiary and the co-borrower.

Section 13. Payment of the Loan. Payment of the loan will be made through the post-dated checks issued by the co-borrower, which the City, through the Treasury, will encash every due date thereof. For this purpose, the Treasury is authorized to create a separate account for the payments made under this program which shall redound exclusively to the special fund stated in sections 9 and 13 of this Ordinance.

ALLOCATION AND APPROPRIATION OF FUND

Section 14. Appropriation. - The amount of One million pesos (Php. 1,000,000.00) necessary to carry out the provisions of this Ordinance shall be appropriated immediately to be generated from the Mayor's discretionary fund and or whatever source that are available in the City's Treasury. The Local Finance Committee together with the City Budget Office shall include in a yearly basis the appropriation of study program in the City's Annual Budget.

FINAL PROVISIONS

Section 15. Implementing Rules and Regulations. - The PESO and the City Treasury, shall promulgate the implementing rules and regulations within ninety (90) days after the effectivity of this Ordinance.

Section 16. Repealing Clause. - All other city ordinance, resolutions and rules and regulations inconsistent with the provisions of this Ordinance are hereby repealed or modified accordingly.

Section 17. Separability Clause. - Any portion or provision of this Ordinance that may be declared unconstitutional or invalid shall not have the effect of nullifying other portions or provisions hereof as long as such remaining provisions can still subsist and be given effect.

Section. 18. Effectivity Clause. - This Ordinance shall take effect thirty (30) days after its approval by the Sanggunian Panlalawigan and publication in the news paper of General Circulation.

FINAL ORDER: The Secretary of the Sangguniang Panglunsod is given the task to furnish copies of this Ordinance to all concerned Departments (Treasury, PESO, and other concerned Departments).

UNANIMOUSLY APPROVED.

CERTIFICATION:

I hereby certify to the correctness of the above quoted resolution.

Attested :

ARNEL oH oMEZ City Vice-Mayor &

Presiding Officer

CYNTHl~. GOMEZ f Sangguniang Panlijngsod Secretary

Approved:

~i~ City Mayor

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'SIF City Govern{Jlent Center. J.P Rizal Blvd., City of Santa Rosa, Laguna - Tel. No. (049) 530-0015 Local 5100-5104 ·

·"Serbisyong Makatao, Lungsod na Makabago"