Workers Protection and Skills Development on Digital Economy Job Distribution

TWENTIETH CONGRESS OF THE ) " RECEIVED REPUBLIC OF THE PHILIPPINES E BAL 1 5 2025* First Regular Session NO TIME: BY: SENATE BILLS Z JNDEX S. No. 649 Introduced by Senator MARK A. VILLAR AN ACT ENHANCING WORKERS' PROTECTION AND SKILLS DEVELOPMENT IN COURSE OF DIGITAL ECONOMY JOB DISRUPTION EXPLANATORY NOTE In 2024, the Philippine digital economy accounted for 8.5% of the country's Gross Domestic Product (GDP), which is a 7.6% increase from the previous year. A research from the Philippine Institute for Development Studies (PIDS) further forecasted that the digital economy will sustain robust growth in 2025, with a projected expansion of 15% to 20%. This manifests the need to meet the demand for skilled workers who will turn the gears for the industry's continuous expansion. Consequently, the rights and welfare of these workers must be protected. As such, this bill aims to safeguard workers' interests and promote their professional growth during the rapidly-changing digital landscape brought about by advancements in science, technology, and e-commerce in the Philippines. This measure seeks to heip Filipino workers effectively navigate the challenges resulting from job displacement and disruption caused by the emergence of this nascent sector. By addressing the challenges posed by the digital economy, this bill aims to ensure that Filipino workers remain competitive in the global job market and contribute to national economic growth. It is imperative that the Philippine government proactively addresses potential job displacement and even mismatch issues, and actively seeks opportunities to enhance workers' capabilities in the face of technological advancements. In light of the foregoing, approval of this bill is sought. MARK A. VILLAR RDC

THE TWENTIETH CONGRESS OF THE ) PHILIP PE EVED LL 1 5 2025 ₴ First Regular Session TIME: 2:14 pm BY: SENATE BALLE & INDEX S. No. Introduced by Senator MARK A. VILLAR AN ACT ENHANCING WORKERS' PROTECTION AND SKILLS DEVELOPMENT IN COURSE OF DIGITAL ECONOMY JOB DISRUPTION Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Declaration of Policy - It is the policy of the State to ensure the

2 welfare and protection of workers, recognizing their vital role in nation-building. The 3 State shall provide support for workers at risk due to technological advancements, 4 promote upskilling and reskilling, and facilitate career transition in the digital economy.

Sec. 2. Creation of the National Task Force on Digital Economy Job Disruption

6 A National Task Force on Digital Economy Job Disruption (Task Force) shall be created, 7 composed of the Department of Labor and Employment (DOLE), the Department of 8 Information and Communications Technology (DICT), the Technical Education and 9 Skills Development Authority (TESDA), and other pertinent agencies, to develop and implement programs and initiatives related to this Act.

Sec. 3. Early Warning System - The Task Force shall establish an Early Warning

System to identify industries at high risk of digital disruption and assess the potential impact on workers' employment. This system shall provide vital information for preparing intervention measures and updating policies.

Sec. 4. Safety Nets and Financial Assistance - A Workers' Adjustment Program

(WAP) shall be established to provide financial assistance to workers affected by digital disruption. The WAP shall include wage compensation, unemployment benefits, and temporary income support.

Sec. 5. Upskilling and Reskilling Initiative - The Task Force, in collaboration with

2 the private sector, shall design and implement a comprehensive upskilling and 3 reskilling program focused on digital skills and emergent technologies. These programs shall include: a. Digital skills assessments for workers to identify opportunities for skill development. b. Development of industry-specific training and certification programs, which cater to the needs and requirements of the digital economy. c. Financial assistance and scholarships for workers seeking to upgrade or acquire new skills through technical and vocational training, short-term courses, or formal education.

Sec. 6. Support for Career Transition - The Task Force shall develop a career

13 transition support system to help workers find new opportunities in the digital economy, which shall include: a. Career counseling and job placement services. b. Establishment of an online platform to connect workers with job opportunities, training programs, and mentorships. c. Collaboration with employers and industry groups to develop strategies for the seamless integration of displaced workers in the rapidly changing digital economy.

Sec. 7. Stakeholder Consultation and Collaboration - The Task Force shall

maintain regular consultation and cooperation with stakeholders, including labor unions, employers' organizations, and industry associations, to ensure that the policies and programs are effective and meet the needs of workers and businesses.

Sec. 8. Annual Report to Congress - The Task Force shall submit an annual

report on the implementation of this Act, the status of displaced workers, and the progress of skills development and job transition programs.

Sec. 9 Funding. - The necessary funding for the implementation of this Act shall

be sourced from the DOLE, DICT, TESDA's share in the annual General Appropriations 30 Act (GAA).

Sec. 10. Implementing Rules and Regulations. - The DOLE, DICT, TESDA, and

1 the other relevant instrumentalities and stakeholders, shall develop the implementing 2 rules and regulations, within sixty (60) days from the effectivity of this Act.

Sec. 11. Separability Clause. -Any portion or provisions of this Act that may be

4 declared unconstitutional or invalid and shall not have the effect of nullifying other 5 portions or provisions hereof as long as such remaining portions or provisions can still 6 subsist and be given effect in their entirety.

Sec. 12. Repealing Clause. - All laws, presidential decrees, executive orders,

memoranda, circulars, and other issuances, or parts thereof, which are inconsistent 9 with the Act, are hereby repealed or modified accordingly.

Sec. 13. Effectivity Clause. -This Act shall take effect fifteen (15) days after its

publication in at least two (2) newspapers of general circulation. Approved,