REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY

ey ore, 2.4 OCT 2016 04 00

Seventeenth Congress
First Regular Session

House Bill No, 8942

Introduced by AGRI PARTYLIST Representative Orestes T. Salon

EXPLANATORY NOTE

This bill seeks to reform the national apprenticeship program under the
Chapters I and II of the Title II of Presidential Decree No. 442 or the Labor
Code of the Philippines, by providing the youth with skills and access to
employment and provide enterprises with a mechanism to ensure a continuous
supply of skilled workers.

We recognize the potential of the youth sector in contributing economic
growth through its skills and access to employment. However, according to the
Philippine Statistics Authority, in April 2016, there is a 6.1% unemployment
rate in the country and 50.1% of this rate belongs to the age group 15-24 years
old. This problem is due to inadequate employment opportunities and academic
preparations for the job. In this light, industry associations view the
apprenticeship program as another mechanism that would help ensure a
continuous supply of skilled workers in the country.

This bill aims to expand the opportunities for the youth sector particularly
the students undergoing the apprenticeship program. Likewise, this bill shall
encourage more enterprises that will participate in the program.

This bill was formerly introduced by Former Rep. Cinchona Cruz-
Gonzales in the 16" Congress and was referred in the Committee on Labor and
Employment.

In view of the foregoing, ige of this bill is carnestl,

REP. OREST!
AGRI Partylist

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REPUBLIC OF THE PHILIPPINES.
HOUSE OF REPRESENTATIVES,
QUEZON CITY

Seventeenth Congress
First Regular Session

House Bill No, 83942

Introduced by AGRI PARTYLIST Representative Orestes T. Salon

AN ACT
PROVIDING FOR A REVISED APPRENTICESHIP PROGRAM,
REPEALING FOR THE PURPOSE CHAPTERS I AND II OF TITLE IL
OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives of the Republic of the

Philippines in Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the "Revised
Apprenticeship Program Act”.

SEC. 2. Declaration of Policy. - \t_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 non-governmental organizations concerned,


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SEC. 3. Statement of Objectives. - This Act aims 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;

¢) 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) Hamess corporate social responsibility towards the development of

skilled manpower to meet the requirements of industries.

SEC. 4. Definition of Terms. - As used in this Act:

a) Apprentice refers to a person undergoing taining for an approved
apprenticeable occupation during an established period governed by an
apprenticeship contract;

b) 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 apprenticeship by the Technical
Education and Skills Development Authority (TESDA);

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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

{) Certificate of Competency refers to a document issued by the TESDA
to individuals who are assessed as competent in a cluster of related
competencies;

2) 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 of competencies refers to a group of related competencies
that, while it does not satisfy the requirements of a full qualification,
still 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;

j) 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 workplac

k) Dual Training System refers to a delivery system of quality technical

and vocational education which requires training to be carried out
alternately in two (2) venues: in school and in the production plant.

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7 In- school training provides the trainee the theoretical foundation,

78 basic training, guidance and human formation, while in-plant training
79 develops the trainee's skills and proficiency in actual work conditions
80 as it continues to inculcate personal discipline and work values;

81 |) Enterprise refers to a participating establishment that directly engages
82 an apprentice based on an approved apprenticeship program;

83 m) Qualification refers to a package of competencies describing a
84 particular function or job role existing in an economic sector
85 covering the work activities required to undertake a particular job;

86 n) Training plan refers to the specification for the apprenticeship program
87 of an enterprise which describes all the karning experience a student
88 undergoes generally including the competencies to be acquired within
89 the program, the underpinning knowledge, theories and principles, and
90 the assessment arrangement;

91 0) Unit of Competency refers to an activity that comprises a manageable
92 component of work described in terms of elements, performance criteria,
93 range of variables and evidence guide.

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95 SEC. 5. Qualifications of an Apprentice. - To qualify as an
96 apprentice, a personmust:

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98 a) Beat least fifteen (15) years of age;

99 b) Possess good moral character, vocational aptitude and capacity for

100 apprenticeship as determined by the enterprise; and

101 c) Have the ability to comprehend and follow oral and written

102 instructions.

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104 Trade, industry and labor organizations may recommend to TESDA

105 appropriate educational requirements for different occupations.

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SEC. 6. Aptitude Testing of Applicants. - Consistent with the

minimum qualifi

tions of an apprentice under Section 5 hereof, the bipartite
plant apprentveship committees shall have the primary responsibility of
providing appropriate aptitude examinations in the selection of apprentices.

SEC. 7. Training of Apprentices. ~ 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.
~All qualifications with training regulations promigated 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 seck partnership with a Technical-
Vocational Education and Training (TVET) institution in its design and

delivery.
SEC. 9. Apprenticeship Period. - 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 learned by the apprentices.

SEC. 10. Apprenticeship Program Registration. - The registration



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of an apprenticeship program can be for a qualification, a cluster of
competencies, or bundled qualifications as contained in the taining
regulations. A letter of application stating the intention, the certificate of
undertaking, and the training plan shall be submitted to 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. — The
apprenticeship contract must conform with the rues ssued by the TESDA
and shall include the following:
a) Nature, syllabus, timetable, and purpose of training;
b) 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 non-governmental organizations shall
be considered in computing the seventy-five percent (75%);

d) Schedule of training allowance payment;

¢) Training hours;


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f) Process for the termination of apprenticeship; and

g) General rights and obligations of both parties.

SEC.12. Signing of the Apprenticeship Contract. Every
apprenticeship contract shall be signed by the apprentice and the
enterprise, recognized orgarization, 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. 13. Apprenticeship Models. — Enterprises with approved
apprenticestip 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;

b. Apprenticeship involving a group of companies arid a training
institution;

c. Apprenticeship involving an industry training center and a
company or a group of companies; or

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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. 14. Apprenticeship Administration. - 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-job training.

SEC. 15. Investigation of Violation of Apprenticeship Contract.
~The Bipartite Plant Apprenticeship Committee, motu proprio or upon
complaintof 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 ries and regulations as may be prescribed by
the TESDA Board

SEC. 16, Appeal 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 decsion. The decision of the TESDA Director General shall be final
andexecutory.

SE!

17. Termination of Apprenticeship. - Walid causes to
terminate the apprenticeship contract:
a) By the enterprise:
1. Habitual absenteeism in on-the-job training and related
theoretical instructions activities;


221 2. Willful disobedience of company rules or

222 insubordination of lawful order of a superior;

223 3. Poor physical condition, prolonged illness or permanent
224 disability which incapacitates the apprentice from

225 working;

226 4. Theft or malicious destruction of company property or
27 equipment;

228 5. Inefficiency, or poor performance on the job or in the
229 classroom for a prolonged period despite warnings duly
230 given to the apprentice; and

231 6. Engaging in violence or other forms of misconduct

232 inside the enterprise's premises.

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234 b) By the apprentice:

235 1. Substandard or harmful working condtion within the

236 enterprise's premises;

237 2. Repeated violations by the enterprise of the terms of the
238 apprenticeship agreement;

239 3. Cruel and inhuman treatment;

240 4. Personal problem which in the opinion of the apprentice
2ar shall prevent the satisfactory performance of the job by the
242 apprentice; and

243 5. Bad health and continuing illness.

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245 SEC.18. Rules and Procedure on the Termination of the

246 © Apprenticeship -

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248 a) Apprenticeship Committee Level
249 1) The enterprise or apprentice interested in terminating the

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contract may do so by notifying first the Bipartite Plant
Apprenticeship Committee.

2) The Committee confers with both partes and mediates the
differences between them.

3) If mediation or settlement is not possible, the Committee advises
the complainants to apply for the termination at the Regional Office

concerned.

b) Regional Level
1) The complainant verbally presents the case to the TESOA
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,

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after which a copy of the acted upon application shall be
furnished the applicant and the second party party. This
process shall be completed within three (3) days from
receipt of the document by the office of the concerned
Regional Director.
iv) A copy of each approved application .shall be
furnished to 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. 19. Competency Assessment and Certification. - The
apprentices shall, within the apprenticeship period, undergo competency
assessment for qualifications to the training regulations. A national certificate
shall be issued to all those who demonstrated achievement of the competency
standards.

SEC. 20. Training Certificate. - A training certificate shall be
issued by the authorized enterprise to sgnify completion of the
apprenticeship program in -accordance with the approved training desigl 1.
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. 21. Compulsory Apprenticeship. - When the national security
or particular requirements of economic development so demand, the

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President of the Republic of the Philippines shall require compuéory 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. Incentives.- Anadditional deduction from the gross income
of one-half (V/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 wih less than one hundred (100)

employees shall be exempt from paying the apprenticeship fee.

SEC. 23. System of Equivalency.- Apprenticeship graduates shall be
awarded equivalent unit credits in the formal system of education that can
be used in pursuing tertiary degree courses subject fo the integrated policies
and guidelines on equivalency and Adult Education Acceleration Progam of
the TESDA, the Commission on Higher Education (CHED) and the
Department of Education (DepEd).

SEC. 24. Insurance for Apprentices. - 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

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trainee or apprentice during the apprenticeship period.

SEC. 25. Penalty Clause. - 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
b) Failure to comp with conditions or obligations prescribed under

this Act or its implementing rules and regulations.

Any violation of the provisbns of this Act or its implementing rules
and regulations shall be punished with a fine of not kss than One Thousand
Pesos (P1,000.00) nor more than Ten Thousand Pesos (P10,000.00), or
imprisonmentof not less than three months nor more than three years, or both

such fine and imprisonment at the discretion of the court.

SEC. 26. Transitory Provision. - All existing apprenticeship
programs and training regulations shall be valid until after the TESDA have
conducted an assessment and revalidation for consistency with the provisions of

this Actand its implementing rules and regutions.

SEC. 27. Abolition of the Learnership Program. - To
rationalize and ensure the effective implementation of the Reformed

Apprenticeship Program, the Learnership Program is hereby abolished.

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SEC. 28. Implementing Rules and Regulations. - The TESDA
Board shall issue the implementing rules and regulations within ninety (90)
days after the effectivity of this Act.

SEC. 29. Repealing Clause. - Chapters 1 and JI of Title II 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, R.A. No. 7796 or the "TESDA Act of 1994" and all other
laws. presidential decrees, issuances, executive orders, letters of
instruction, and rules and regulations contrary to or inconsistent with the

provisions of this Act are hereby amended accordingly.

SEC. 30. Separability Clause. — 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. 31. Effectivity. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in a newspaper of general

circulation.

Approved,

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