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REPUBLIC ACT NO. 7323

AN ACT TO HELP POOR BUT DESERVING STUDENTS PURSUE THEIR EDUCATION BY ENCOURAGING THEIR EMPLOYMENT DURING SUMMER AND/OR CHRISTMAS VACATIONS, THROUGH INCENTIVES GRANTED TO EMPLOYERS, ALLOWING THEM TO PAY ONLY SIX PER CENTUM OF THEIR SALARIES OR WAGES AND THE FORTY PER CENTUM THROUGH EDUCATION VOUCHERS TO BE PAID BY THE GOVERNMENT, PROHIBITING AND PENALIZING THE FILING OF FRAUDULENT OR FICTITIOUS CLAIMS AND FOR OTHER PURPOSES

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

     Section 1. Any provision of law to the contrary notwith-standing, any person or entity employing at least fifty (50) persons may during the summer and/or Christmas vacations employ poor but deserving students fifteen (15) years of age but not more than twenty-five (25) years old, paying them a salary or wage not lower than the minimum wage provided by law and other applicable labor rules and regulations.

     For purposes of this Act, poor but deserving students refer to those whose parents' combined incomes, together with their income, if any, do not exceed Thirty six thousand pesos (P36,000) per annum. Employment should be at the Labor Exchange Center of the Department of Labor and Employment (DOLE).

     Section 2. Sixty per centum (60%) of said salary or wage shall be paid by the employer in cash and forty per centum (40%) by the Government in the form of a voucher which shall be ap-plicable in the payment for his tuition fees and books in any educational institution for secondary, tertiary, vocational or technological education. The amount of the education voucher shall be paid by the Government to the educational institution concerned within thirty (30) days from its presentation to the officer or agency designated by the Secretary of Finance.

     The voucher shall not be transferable except when the payee thereof dies or for a justifiable cause stops in his duties in which case it can be transferred to his brothers or sisters. If there be none, the amount thereof shall be paid his heirs or to the payee himself, as the case may be.

     Section 3. The Secretary of Labor and Employment, the Secretary of Education, Culture and Sports and the Secretary of Finance shall issue the corresponding rules and regulations to carry out the purposes of this Act.

     The Secretary of Labor and Employment shall be the Project Director of this program.

     Section 4. Any person or entity who shall make any fraudulent or fictitious claim under this Act, regardless of whether payment has been made, shall upon conviction be punished with imprison-ment of not less than six (6) months and not more than one (1) year and a fine of not less than Ten thousand pesos (P10,000), without prejudice to the prosecution and punishment for any other offense punishable under the Revised Penal Code or any other penal statute.

     In case of partnerships or corporations, the managing partner, general manager, or chief executive officer, as the case may be, shall be criminally liable.

     Section 5. The amount necessary to carry out the purposes of this Act is hereby authorized to be appropriated in the General Appropriations Act for 1992 and the subsequent annual general appropriations acts.

     Section 6. This Act shall take effect after its publication in the Official Gazette or in at least two (2) national newspapers of general circulation.

     Approved, March 30, 1992.

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     2. Implementing Rules of R.A. 7323

RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT 7323 (SPES)

     Pursuant to the authority granted to the Secretary of Labor and Employment, Secretary of Education, Culture and Sports and Secretary of Finance under Section 3 of Republic Act No. 7323, the following rules and regulations are hereby promulgated and issued for the guidance of all concerned.

RULE I: Preliminary Provisions

     Section 1. Title. - This issuance shall be known as the Rules and Regulations Implementing R.A. No. 7323 entitled "An Act to Help Poor But Deserving Students Pursue Their Education by Encouraging Their Employment During Summer and/or Christmas Vacations, Through Incentives Granted to Employers, Allowing Them to Pay Only Sixty Per Centum of Their Salaries or Wages and the Forty Per Centum Through Education Vouchers to be Paid by the Government, Prohibiting and Penalizing the Filing of Fraudulent or Fictitious Claims, and For Other Purposes".

     Section 2. Construction. - These Rules and Regulations shall be liberally construed to carry out the objectives of R.A. 7323.

     Section 3. Definition of Terms. - As used in these Rules and Regulations:

     (a) "Act" refers to Republic Act No. 7323.

     (b) "DOLE" refers to the Department of Labor and Employment.

     (c) "DECS" refers to the Department of Education, Culture and Sports.

     (d) "DOF" refers to the Department of Finance.

     (e) "Program" refers to the scheme of assisting poor but deserving students find employment during summer and/or Christmas vacations.

     (f) "Entity" refers to any person, natural or juridical, employing at least 50 workers as defined herein.

     (g) "Student" refers to any person at least 15 years of age but not more than 25 years old who is either enrolled in any institution for secondary, tertiary, vocational or technological institution or intending to be enrolled in any of these schools.

     (h) "Labor Exchange Center" refers to any employment service unit of the DOLE or other units under its technical supervision which are involved in the facilitation of employment.

RULE II: Coverage

     Section 1. These rules shall apply to:

     (a) Poor but deserving students who are at least 15 years of age but not more than twenty-five years old who are enrolled or intending to enroll in any educational institution for secondary, tertiary, vocational or technological education; and

     (b) Participating persons or entities who have employed at least 50 workers at any given time during the past twelve (12) months. For this purpose, employed workers refer to all regular, seasonal, temporary, casual and workers of contracted out services of persons or entities. Participating entities shall include private establishments, national and local government units, government-owned or controlled corporations, labor unions and other similar organizations and associations, among others.

RULE III: Eligibility and Requirements for Employment

     Section 1. Qualifications. - Any student may apply for employment under the Program provided he/she meets the following qualifications:

     (a) At least 15 years of age but not more than 25 years old;

     (b) Enrolled during the school year/term or enrolled during the school year/term immediately preceding the summer vacation or who has dropped out of school and who intends to continue his/her education; and

     (c) The combined net income after tax of parents, including his/her income, if any, does not exceed Thirty-six thousand (P/36,000.00) pesos per annum.

     (d) At least garnered an average passing grade during the school year/term referred to above.

     Section 2. Student Dependents of Displaced or Would-be-Displaced Workers. - Any student dependent or drop out, dependent of workers who are displaced or about to be displaced due to business closures or work stoppages arising from economic or non-economic reasons, may also qualify under this Program provided he/she meets the qualifications required in subsections (a), (b) and (d) of the preceding section.

     Section 3. Requirements for Employment. - In support of his/her qualifications, the following documents shall be required from the student:

     (a) Copy of birth or baptismal certificate or joint certi-fication of at least two persons who can attest to the date of birth of the student-applicant;

     (b) Certification by the School Registrar as to (1) his/her last enrollment, and (2) his/her passing average grade; and

     (c) Certified true copy of the latest income tax return (ITR) of his/her parents or certification from the Barangay Chairman in the locality where his/her family or certification from employer/union president as the employment status of his/her parents.

RULE IV: Program Implementation

     Section 1. Program Administration. - The administration of this Program shall be lodged in the DOLE and its implementing units in the regions.

     Section 2. Role of DECS. - The DECS shall coordinate with DOLE in the promotion of this Program among students and administrators of all secondary, tertiary, vocational or technological institutions. The DECS shall ensure that the vouchers presented by students and its application will be honored by all concerned schools and monitored accordingly.

     Section 3. Role of DOF. - The DOF shall designate an officer or agency to administer the financial requirements of this Program. The Financial Management Service Division at the DOLE Regional Offices are hereby deputized for this purpose.

     Section 4. Where to Apply for Employment. - Any qualified student may apply for employment assistance under this Program in any employment service unit of the DOLE Regional Offices. For this purpose, the DOLE Regional Offices shall mobilize the NMYC Training/Placement Centers, Public Employment Service Offices (PESOs) and the Community Employment Centers (CECs) of local government units which are under its technical supervision to assist in the employment needs of students in the provincial and city/municipal levels. The Secretary of Labor and Employment or the DOLE Regional Directors may deputize unions, non-government organizations and employers groups for the purpose of processing SPES participants who shall coordinate such activities to the former.

     Section 5. Availment Procedure. - The student shall apply in person to the nearest labor exchange center of DOLE, NMYC Training/Placement Centers, PESOs/CECs operated by local govern-ment units, or other duly deputized entities mobilized for this purpose. The student shall submit himself/herself to a preliminary interview and screening to determine his/her qualifications. The student's qualifications are then matched with the requirements of vacancies of participating persons or entities. If the stu-dent is qualified to a vacancy, he/she is referred for consideration by the Employer. The Employer will either accept or deny his/her application. In case his/her application is denied, the student may return to the public employment office for referral to other vacancies of participating entities where he/she may qualify.

RULE V: Payment of Salary

     Section 1. Procedure in the Payment of Salary or Wage of Employed Students. - At least sixty percent (60%) of the student-employee's salary which shall not be less than sixty percent (60%) of the applicable minimum wage shall be paid in cash by the Employer. The remaining forty percent (40%) of his/her salary shall be paid by the DOLE in the form of education voucher based on information to be provided by the Employer. The education vouch-er shall be presented by the student-employee to the educational institution where he/she is enrolled or where he/she intends to enroll to cover expenses for his/her tuition fees and books. In case the amount of the education voucher exceeds the amount presented by the educational institution for payment, the DOLE shall refund the balance amount in cash.

RULE VI: Terms and Conditions in the Employment of Students

     Section 1. Contract of Employment. - The employment of students under this Program shall be covered by an Employment Contract between the Employer and the student-employee.

     Section 2. Duties and Responsibilities of Employer. - In addition to other applicable labor rules and regulations, the Employer shall exercise the following duties and responsibilities towards the student-employee;

     (a) To pay in cash at least Sixty per centum (60%) of his/her salary;

     (b) To ensure that the student-employee will not be exposed to hazardous undertakings nor to allow the student-employee to work in night clubs, cocktail lounges, beerhouses, massage clinics, and bars of similar establishments;

     (c) To ensure that the student-employee below 18 years old shall not be required to work beyond 8 hours a day nor should it exceed 48 hours a week or render work during rest days;

     (d) To submit periodic reports to DOLE or its subsidiary units to include among others the following: number of students hired, date of hiring and termination of employment, the wage rate and the total cash wage or salary paid to the student-employee, number of hours worked and other pertinent information; and

     (e) To ensure that the employment of women and young workers shall be in accordance with the Labor Code and its Implementing Rules.

     Section 3. Duties and Responsibilities of Student-Employee. - The student-employee shall have the following duties and responsibilities. (a) To perform tasks and activities assigned by the Employer; (b) To strictly adhere to the rules and regulations imposed by the Employer; and (c) To use the education voucher for the purposes intended in the Act.

     Section 4. Duties and Responsibilities of DOLE. - It shall be the duty and responsibility of DOLE to ensure:

     (a) The payment of forty per centum (40%) of the salary of the student-employee in the form of a voucher which shall be applicable for the payment of his/her tuition fees and books; and

     (b) The payment of the amount of the education voucher to the educational institution concerned within thirty (30) days from its presentation to the Regional Office of DOLE; Provided, that the Regional Office of DOLE under whose jurisdiction the school of enrollment of the student-employee is located should pay the education voucher.

RULE VII: Non-Transferability of Education Voucher. - The educa-tion voucher shall not be transferable except in the following cases:

     (a) Death of the payee; or

     (b) When the student stops in his studies due to prolonged illness, incapacity, economic necessity and similar causes. In this case, the voucher can be transferred to his brothers or sisters. If the payee has no brother or sister, the amount of the voucher shall be paid his lawful heirs or to the payee him-self, as the case may be.

RULE VIII: Entitlement to Other Benefits and Incentives

     Section 1. Other Benefits and Incentives. - The student-employee shall be entitled to other monetary benefits and incentives provided under existing laws specifically SSS and Medicare contributions.

RULE IX: Special Provision

     Section 1. Effect on Regular Employee. - Nothing in these rules shall be construed to justify an Employer in terminating the services of regular employees to accommodate the student-employee or diminish the benefits of regular employee upon the effectivity of these rules.

RULE X: Penal Provisions

     Section 1. Filing of Fraudulent or Fictitious Claim. - Any person or entity who shall make any fraudulent or fictitious claim under this Act, regardless of whether payment has been made, shall upon conviction be punished with imprisonment of not less than six (6) months and not more than one (1) year and a fine of not less than Ten thousand pesos (P10,000.00) without prejudice to their prosecution and punishment for any other offense punishable under the Revised Penal Code or any other penal statute.

     In case of partnership or corporations, the managing partner, general manager, or chief executive officer, as the case may be shall be criminally liable.

RULE XI: Effectivity. - These rules and regulations shall take effect immediately.

     Signed this 5th day of March 1993 in Manila.

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