Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
|9th CONGRESS
First Regular Session
Hou';e `B`ili-No.  62 9 9
Introduced by Representative Reynante U. Arrogancia
EXPLANATORY NOTE
This bill seeks to reform the national apprenticeship program through the provision
of skills and access to employment for the youth and ensure that enterprises shall have a
continuous supply of skilled workers.
Apprenticeship  is  considered  as  one  of the  means  to bridge  the  school-to-work
transition for young people through acquisition of knowledge, skills and know how in a
specific occupation.  It allows the empowerment of youth and older workers who need to
acquire new or upgrade their skills.  Apprenticeship can also enhance the competitiveness
of enterprises and improve the skins set of its workers. An effective national apprenticeship
program can improve the prospects of employment among job seekers, competitiveness of
economies and the country's overall development.
This  bill  identifies  the  enterprises  with  registered  programs  with  the  Technical
Education  and  Skills  Development  Authority  (TESDA)  that  can  train  apprentices  in
industries with the maximum training period of six (6) months.   It also proposes for the
apprenticeship program registration and a detailed contract.   Furthermore,  the training
certificates  of  the  apprenticeship  who  completed  the  program  be  comparable  as  a
completion of a training program in a Technical Vocation Education and Training (TVET)
institution with the corresponding award of equivalent unit credits as formal education.
House Bills of similar nature have been filed in the 18th and earlier Congresses.
TE U. ARROGANCIA
firicfrfess:"#,%uezon


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City
19th CONGRESS
First Regular Session
House`Bifirio.    6299
Introduced by Representative Reynante U. Arrogancia
ANACT
PROVIDING FOR A REVISED APPRENTICESIHP PROGRAM, REPEALING
FOR THE PURPOSE CIIAPTERS I AND 11 0F TITLE 11 OF PRESIDENTIAL
DECREE No. 442, As AMENDED, oTlmRwlsE ItIN.OWN As THE LABOR
CODE OF TIIE PIELIPPINES
Be it enacted by the Senate and House Of Representatives Of the Philippines in Congress assembled:
SEcrJOIV J.  £tio#  rf'f/c.  -  This  Act  shall be  known  as  the  "Revised  Apprenticeship
Program Act" .
SEC. 2. Dcc/a/afi.o# a/Po/dy. - It is hereby declared the policy of the State to establish a
reformed apprenticeship program that will ensure the availability of qualified manpower
in the field of critical and in-demand technical skills through the active participation of all
workers,    enterprises,    government    agencies,    and    nongovemmental    organizations
concerned.
SEC. 3. Statement Of Objectives. -Thils Aict a:ms to..
a)   Help meet the demand of the economy for trained human resource;
b)   Have a national apprenticeship program that includes on-and off-the-job training
components with tripartite involvement;
c)   Promote the engagement of young workers through training and  development;
d)   Enhance existing standards for the training and development of apprentices;
e)   Recognize   the   indispensable   role   of  private   enterprises   in  the   training   and
development of human resource;
f)    Strengthen the advocacy on the apprenticeship training program to encourage the
participation of enterprises and young workers;


g)   Increase   productivity   and   competitiveness   of   enterprises   by   ensuring   the
availability of skilled human resource; and
h)   Harness   corporate   social   responsibility   towards   the   development   of  skilled
manpower to meet the requirements of industries.
SEC. 4. Definition Of Terl'ns. - Als used in this Alct..
(a)        Apprentice   refers   to   a   person   undergoing   training   for   an   approved
apprenticeable   occupation    during   an    established   period   governed   by   an
apprenticeship contract;
a)        Apprenticeship refers to a training within an enterprise involving a contract
between   an   apprentice   and   an   enterprise   on   an   approved   apprenticeable
occupation;
(c)        Apprenticeable occupation refers to an occupation officially endorsed by a
tripartite body and approved for apprenticesnip by the Technical Education and
Skills Development Authority (TESDA);
(d)        Apprenticeship contract refers to an agreement wherein an enterprise binds
itself to  train  the  apprentice  who  in  turn  accepts  the  terms  of training  for  the
recognized  apprenticeable  occupation.   It  also  contains  the  rights,   duties  and
responsibilities of each party;
(e)        Bipartite plant apprenticeship committee refers to a group established by the
enterprise composed of representatives of labor and management responsible  for
monitoring program implementation,  settling   differences between management
and     apprentices,     and    recommending     measures     for    effective     program
implementation;
(f)         Certificate  of competency refers to a document issued by the TESDA to
individuals who are assessed as competent in a cluster of related competencies;
(g)        Certificate   of  Technical-Vocational   Education   and   Training   (TVET)
Program  Registration  refers  to  a  document  issued  by  the  TESDA  granting  an
authority to an enterprise to offer a program in an apprenticeable occupation;
(h)        Cluster ofcompetencies refers to a group ofrelated competencies that, while
it  does  not  satisfy  the  requirements  of a  full  qualification,  stiu  constitutes  an
employable package and can be awarded a Certificate of Competency;


(i)         Competency  assessment  refers  to  the  process  of gathering  and judging
evidence   in  order  to   decide  whether  a  person  has   achieved  a  standard  of
competency;
0.)         Competency  standard refers  to  a  written  specification  of the  knowledge,
skills, attitude and values required for the performance of a job, occupation or trade
and the corresponding standard of performance required in the workplace;
(k)        Dual Training system refers to a delivery system of quality technical and
vocational education which requires training to be carried out altemately in two (2)
venues:  in  school  and  in  the  production  plant.  In-school  training  provides  the
trainee the theoretical foundation, basic training, guidance and human formation,
while in-plant training develops the trainee's skills and proficiency in actual work
conditions as it continues to inculcate personal discipline and work values;
(1)         Enterprise refers to a participating establishment that directly engages  an
apprentice based on an approved apprenticeship program;
(in)       Qualification refers  to  a package  of competencies  describing  a particular
function  or job  role  existing  in  an  economic  sector covering the  work  activities
required to undertake a particular job;
(n)        Training plan refers to the specification for the apprenticeship program of
an  enterprise  which  describes  all  the  leaming  experience  a  student  undergoes
generally  including  the  competencies  to  be  acquired  within  the  program,  the
underpinning knowledge, theories and principles, and the assessment arrangement;
and
(o)        Unit  of Competency  refers  to  an  activity  that  comprises  a  manageable
component of work described in terms of elements, performance criteria, range of
variables and evidence guide.
SEC. 5. Qualiifications Of an Af lprentice. -To qudify as an apprentice, a, person must..
a)   Be at least fifteen (15) years of age;
b)   Possess good moral character, vocational aptitude and capacity for apprenticeship
as determined by the enterprise; and
c)   Have the ability to comprehend and follow oral and written instructions.


Trade,  industry  and  labor  organizations  may  recommend  to  the  TESDA  appropriate
educational requirements for different occupations.
SEC. 6. 4pfr.f#dc rcsfi.#g a/J4£p/f.ca!#fs. - Consistent with the minimum qualifications of an
apprentice under Section 5 hereof, the bipartite plant apprenticeship committees shall have
the primary responsibility of providing appropriate aptitude examinations in the selection
of apprentices.
SEC.  7.  r"fli.#j'#g a/4pp#€#fr.cos.  -Only  enterprises  with  programs  registered  with  the
TESDA  may  enter  into  apprenticeship  contracts  and  train  apprentices  in  approved
apprenticeable occupations.
SEC.  8. Apprenticeship Training Program Content and Delivery. -A;Il qua.tiifl:+ca:hens wi+h
training regulations  promulgated by the  TESDA  Board  are  automatically  classified  as
apprenticeable. To meet the immediate requirements of enterprises for skilled workers, the
TESDA Board must approve new apprenticeable occupations endorsed by the appropriate
Regional  Technical  Education  and  Skills  Development  Committee  upon  consultation
with workers' groups and industry representatives.
The  apprenticeship  program  shall  emphasize  the  need  for  theoretical  instruction.  The
enterprise may seek partnership with a TVET institution in its desigri and delivery.
SEC. 9. 42p#c#fl.cesfe/P PgrJ.od. - The apprenticeship period shall be based on the duration
of training required in the training plan and on the complexity of the skills to be leaned
by the apprentices.
SEC.  10.  Agprenticeship  Program  Registration.  -The  registra,tion  o[  a,n  appre:rwiceship
program can be for a qualiflcation, a cluster of competencies, or bundled qualifications as
contained  in  the  training regulations.  A  letter  of application  stating  the  intention,  the
certificate  of undertaking,  and  the  training plan  shall be  submitted  to  the  TESDA  for
approval. A Certificate of TVET Program Registration shall be issued to the enterprise to
signify authorization for specific qualification or competency clusters.
An apprenticeship program may be approved on a no-training regulations basis provided
that the applicant enterprise can show proof of the demand for such skill.


The TESDA shall provide technical assistance to applying and implementing enterprises
to be able to comply with the provisions of this section.
SEC.   11.  Contents  Of the  Apprenticeship  Contract.  -Tt\e  appren+iceship  contra;ct  must
conform with the rules issued by the TESDA and shall include the following:
(a)        Nature, syuabus, timetable, and purpose of training;
®        Period of training, depending on the approved training regulations;
(c)        Training    allowances    prescribed    by    industry    subsectors    through    tripartite
consultations  which  in  no  case  shall  start  below  seventy-five  percent  (75%)  of  the
applicable   minimum  wage:   Provided,   however,   That  contributions  to   the  training
allowance  by  government  agencies  and/or  nongovemmental  organizations  shau  be
considered in computing the seventy-five percent (750/o);
(d)        Schedule of training allowance payment;
(e)         Training hours ;
(f)         Process for the termination of apprenticeship; and
(g)        General rights and obligations ofbotb parties.
SEC.  12.  Signing Of the Agprenticeship Contract. -Every appreaticeship coritlact shall be
signed by the apprentice and the enterprise, recognized organization, association or group
or their authorized representatives.
An apprenticeship contract with a person under eighteen (18) years of age shall be signed
by the parent or guardian of said person or, if the latter is not available, by an authorized
representative. The contract shall be binding during its lifetime, subject to the right of the
apprentice to terminate the same after a month's notice.
Every  apprenticeship  contract  entered  into  under  this  Act  shall  be  approved  by  the
bipartite plant apprenticeship committee involving the firm owner and representatives of
the firm workers. Copies of the apprenticeship contract shall be furnished the firm owner
and the apprentice.
SEC. Jj. 4#re#f¥.ces#IP A4lodc/s. -Enterprises with approved apprenticeship programs may
choose from any of the following apprenticeship models which may use the Dual Training
System approach:
(a)        Apprenticeship involving a company and an identified training institution;


a)        Apprenticeship involving a group of companies and a training institution;
(c)        Apprenticeship involving an industry training center and a company or a group of
companies; or
(d)        Other  schemes  to be  established by the  TESDA  in  consultation with  enterprise
owners,labor and training institutions subject to the approval of the TESDA Board.
SEC.  /4. .4pprc#fr.cesfrf¢ .4d"i.#f'sf#flf!.o#.    -    The TESDA Board shall be responsible for
setting up the overall apprenticeship policy and standards. The TESDA Secretariat shall
be responsible for apprenticeship administration,  monitoring and evaluation of on- and
off-the-j ob training.
SEC.   15.  Investigation  Of  Violation  Of  Apiirenticeship  Contract.  -  The  Brpa;rfu+c  P\a;nl
Apprenticeship Committee, motu proprio or upon complaint of any interested party, shall
have initial responsibility for settling differences arising out of apprenticeship contracts. In
case  it  is  not  able  to  settle  such  differences,   the  TESDA  Provincial  Director  shall
investigate  and submit a recommendation to the TESDA  Regional  Director who  shall
render a decision pursuant to pertinent rules and regulations as may be prescribed by the
TESDA Board.
SEC.  16. Agpeal to the TESDA Director General.   -The decision oF the TESDA Regional
Director may be appealed by any aggrieved person to the TESDA Director General within
five (5) days from receipt of the decision. The decision of the TESDA Director General
shall be final and exeoutory.
SEC.  /7.  Tc/7#I.#¢fr.o# a/4pp##fr.cesAfzJ.  -Valid  causes  to  terminate  the  apprenticeship
contract:
(a)         BytheEntexprise:
(1)        Habitual absenteeism in on-the-job training and    related   theoretical   instructions
activities;
(2)        Willful  disobedience  of company  rules  or  insubordination  of lawful  order  of a
superior;
(3)        Poor   physical   condition,   prolonged   illness,   or   permanent   disability   which
incapacitates the apprentice from working;


(4)        Theft or malicious destruction of company property or equipment;
(5)        Inefficiency,  or poor performance on the job or in the classroom for a prolonged
period despite warnings duly given to the apprentice; and
(6)        Engaging in violence or other forms of misconduct inside the enteaprise's premises.
a)        By the Apprentice:
(1)        Substandard or harmful working condition within the enterprise's premises;
(2)        Repeated violations by the enterprise of the terms of the apprenticeship agreement;
(3)        Cruel and inhumane treatment;
(4)        Personal  problem  which  in  the   opinion  of  the  apprentice   shall  prevent  the
satisfactory performance of the job by the apprentice; and
(5)        Health concerns and continuing illness.
SEC.18. Rules and     Procedures on the Termil`ration of the Apprenticeship. -
(a)        Apprenticeship committee Level:
(1)        The enterprise or apprentice interested in terminating the contract may do so by
notifying first the Bipartite Plant Apprenticeship Committee;
(2)        The  committee  confers with both parties  and mediates  the  differences between
them; and
(3)        If mediation or settlement is not possible, the committee advises the complainants
to apply for the termination at the Regional Office concerned.
a)        Regional Level :
(1)        The complainant verbally presents the case to the TESDA Regional office. If the
complaint   merits   consideration,   the   complainant   is   made   to   duly   accomplish   an
Application for Termination of Apprenticeship form;
(2)        The concerned unit or division of the TESDA Regional office verifies the veracity
and validity of the claim within five (5) days from its receipt by:
(i)         Calling both the enterprise and the apprentice for a conference; or
(ii)        Sending a representative to the enterprise for that purpose.
(3)        In case a ground for approval exists:
(i)         The  investigating  officer  (field  representative)  shall  initiate  the  application  for
termination;


(ii)        The chief of the concerned unit or division of the TESDA Regional office shall
verify the same;
(iii)       The application for termination shall immediately be  forwarded to the Regional
Director for appropriate action, after which a copy of the acted upon application shall be
furnished the applicant and the second party. This process shall be completed within three
(3) days from receipt of the document by the office of the concerned Regional Director;
and
(iv)       A copy of each approved application shall be furnished the concerned office of the
TESDA.
(c)         Agency Level:
If either of the parties is not satisfied with the decision of the Regional Director, the case
may  be  appealed  within  the  reglementary  period  of five  (5)  days  from  receipt  of the
document   to   the   TESDA   Director   General,   whose   decision   shall   be   final   and
unappealable.
SEC.  J9.  Co"pefc#ey ,4sscs§fflc#f a#d  Ce#rJ}cof!.o#.  -  The  apprentices  shall,  within  the
apprenticeship period, undergo competency assessment for qualifications to the training
regulations.   A   national   certiflcate   shall   be   issued   to   all   those   who   demonstrated
achievement of the competency standards.
SEC.  20.  Tr¢f.#I.#g Cc#/J}cofg.  -  A  training  certificate  shall be  issued by  the  authorized
enterprise  to  signify completion  of the  apprenticeship program  in  accordance  with the
approved training design.  The certificate shall contain a list of the units of competency
acquired  and  shall  be  comparable  to  completion  of  a  training  program  in  a  TVET
institution.
SEC.   2J.   Coowp#/sory  ,4pp#tJ#fi.cesAip.   -   When   the   national   security   or   particular
requirements of economic development so demand, the President of the Republic of the
Philippines shall require compulsory training of apprentices in certain trades, occupations,
jobs  or  employment  levels  where  shortage  of trained  manpower  is  deemed  critical  as
determined by the TESDA Board.


SEC. 22. J#ce#f!.wcs. -An additional deduction from the gross income of one-half (1 /2) of
the labor training expenses incurred from developing the productivity and efficiency of
apprentices  shall  be  granted  to  the  person  or  enterprise  organizing  an  apprenticeship
program:   Provided,   That  the  employer  shall  be  exempt  from  the  payment  of  the
apprenticeship fee and that such program shall be recognized by the TESDA: Provided,
further, That such deduction shall not exceed ten percent (10%) of the training allowance
of the  apprentices:  Provided,  finally,  That  the  enterprise  that  wishes  to  avail  of this
incentive shall pay its apprentices the minimum wage. Micro-cottage and small enterprises
with   less   than   one   hundred   (100)   employees   shall   be   exempt   from   paying   the
apprenticeship fee.
SEC. 2j. Sysfg" a/Eq#f'va/c#ey. - Apprenticeship graduates shall be awarded equivalent
unit credits in the formal system of education that can be used in pursuing tertiary degree
courses  subject  to  the  integrated  policies  and  guidelines  on  equivalency  and  Adult
Education Acceleration Program of the TESDA, the Commission on Higher Education
(CHED) and the Department of Education (DepED).
SEC. 24. Jas#/¢#ce/a/ 4pprt?#fr.cos. -Every participating enterprise, group or association,
industry,  organization,  government  institution  or  civic  group  undertaking  training  in
accordance with the provisions of this Act shall provide a disability or accident insurance
policy in favor of the trainee or apprentice during the apprenticeship period.
SEC. 25. Pe#¢/fy C/ausc. -Enterprises found offering unregistered apprenticeship programs
shall  be  subjected  to  program  closure  proceedings  without  prejudice  to  the  filing  of
administrative, criminal, or civil liabilities.
The  TESDA  Board  may  file  the  necessary  civil  or  criminal  case  as  may  be  deemed
reasonable and appropriate and after the deliberation of the TESDA Board pursuant to
this Act for any of the following causes:
(a)       Fraud or deceit committed in connection with the application for the opening of
apprenticeship programs ; and
a)        Failure to comply with conditions or obligations prescribed under this Act or its
implementing rules and regulations.


Any violation of the provisions of this Act or its implementing rules and regulations shall
be punished with a fine of not less than one thousand pesos (P 1,000.00) nor more than ten
thousand pesos (Plo,000.00), or imprisonment of not less than three (3) months nor more
than three (3) years, or both such fine and imprisonment, at the discretion of the court.
SEC.  26.   r"#sf.fory  ProtJI.sf.o#.  -  All  existing  apprenticeship  programs   and  training
regulations  shall  be  valid  until  after  the  TESDA  has  conducted  an  assessment  and
revalidation for consistency with the provisions of this Act and its implementing rules and
regulations.
SEC. 27. Abolition Of the Leamership Program. -To rattondize alnd ensure the effective
implementation  of the  Reformed Apprenticeship  Program,  the  Leamership  Program is
hereby abolished.
SEC.  28.  Implementing  Rules  and  Regulations.  -  Tt\e  TESDA  Board  shall  issue  the
implementing rules and regulations within ninety (90) days after the effectivity of this Act.
SEC. 29. Rquc¢/f.#g a/arse. -Chapters I and 11 of Title 11 of Presidential Decree No. 442,
as amended, otherwise known as the Labor Code of the Philippines, are hereby repealed.
Executive Order No.111, series of 1986, Republic Act No.  7796 or the "TESDA Act of
1994"  and  all  other  laws,  presidential  decrees,  issuances,  executive  orders,  letters  of
instniction,  and rules and regulations contrary to or inconsistent with the provisions of
this Act are hereby amended accordingly.
SEC.   jo.   Scpartzb/./dy   C/a#sc.   -   If  any   provision   of  this   Act   is   held   invalid   or
unconstitutional,  the  same  shall  not  affect  the  validity  and  effectivity  of  the  other
provisions hereof.
SEC. 3J. Ejgrectl.vf.fy. - This Act shall take effect fifteen ( 15) days after its publication in the
Official Gazette or in a newspaper of general circulation.
Approved,