Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
Introduced by CIBAC Party-List Representative 
Eduardo “Bro. Eddie” C. Villanueva 
AN ACT 
STRENGTHENING TECHNICAL VOCATIONAL EDUCATION AND 
TRAINING (TVET) IN THE PHILIPINES BY INCORPORATING 
APPRENTICESHIP AND DUAL TRAINING SYSTEM, PROVIDING FOR 
CONTINUOUS TRAINING OF THE UNEMPLOYED, AND EXPANDING 
THE PROVISION OF ENTERPRISE - BASED EDUCATION AND 
TRAINING, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Based on a 2018 study conducted by the Philippine Institute for 
Development Studies (PIDS) through key informant interviews with 
Human Resource Managers/Officers in 26 firms, 24 out of 26 firms stated 
that they are willing to hire Senior High School (SHS) graduates. 1 
However, out of this number, 22 out of 26 companies have preconditions 
for hiring, such as requiring certain competencies or skills, improved work 
immersion, and offering only low positions. These indicate uncertainties 
in hiring SHS graduates. Profiles of the firms include a BPO company, a 
multi-industry company, a popular fast-food chain, and city government 
1  Aniceto C. Orbeta, Jr., et al. Philippine Institute for Development Studies, Senior High School and the Labor Market: 
Perspectives 
of 
Grade 
12 
Students 
and 
Human 
Resource 
Officers, 
accessible 
at 
https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1849_rev.pdf (last accessed July 4, 2022). 
July 25, 2022
8:00 am
2283


 
offices. This confirms a report conducted by JobStreet.com’s 2018 Fresh 
Graduate Report that only 24% of employers from manufacturing, 
professional services, retail machinery and equipment and BPO industries 
in the Philippines are ready to hire K-12 graduates.2 
 
PIDS likewise reported in 2020 that only a little over 20% of Senior 
High School Graduates participate in the labor market and more than 70% 
proceeded to pursue further studies.3 However, the study also revealed 
that K-12 graduates “have poorer outcomes in terms of labor force 
participation, employment, and underemployment rates.” 4  While it 
acknowledges that the study “merely scratched the surface of 
understanding the labor outcomes for SHS graduates,”5 there is a need to 
improve on existing programs to allow more access to opportunities and 
decent work for all, including K-12 graduates.  
 
Meanwhile, data on work-based training from the Technical 
Education and Skills Development Authority (TESDA) reinforce the 
observation that lack of training in authentic work environments deepen 
job-skills mismatch in the country. According to TESDA, enterprise-based 
training (i.e., Apprenticeship Program and Dual Training System) 
produced only 620,199 graduates or only 5.12% of the 12,110,210 
graduates of TVET from 2010-2018. In 2020, enterprise-based training 
enrollees and graduates number only 26,616 and 20,582, respectively.6 
 
It is indeed unfortunate that enterprise-based training is the least 
participated training modality in the Philippines despite its potential to 
ensure employability of workers and secure the future of industries. 
Apparently, the rigidity of the current system discourages partnership with 
industry that can channel more young people to TVET.  
 
 
2 Jobstreet.com Philippines, Fresh graduate hiring shows shift in demand and preferences, accessible at 
https://www.jobstreet.com.ph/career-resources/plan-your-career/fresh-graduate-hiring-shows-shifts-in-demand-and-
preferences-infographic (last accessed July 4, 2022). 
3 Aniceto C. Orbeta, Jr. and Maropsil V. Potestad, Philippine Institute for Development Studies, On the Employability of the 
Senior High School Graduates: Evidence from the Labor Force Survey, accessible at 
https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps2040.pdf (last accessed July 4, 2022). 
4 Id. 
5 Id. 
6 TESDA 2020 TVET Statistics Annual Report, accessible at 
https://www.tesda.gov.ph/Uploads/File/Planning2020/TVETStats/21.04.29_2020-Annual-TVET-Statistics_v-1.5.pdf (last 
accessed July 4, 2022). 


Based on experience, in-company training alone can guarantee 
higher employment rates. For example, the training program conducted 
by the Semiconductor and Electronics Industries in the Philippines 
Foundation, Inc. (SEIPI) in 2015 for Electronics Backend Operations 
recorded 96.64% employment rate. 
This experience points to the need to strengthen private sector 
participation in TVET through enterprise-based training to not only resolve 
job-skills mismatch but also to ensure adequate supply of relevant skills 
that our industries need to respond to the Fourth Industrial Revolution 
(4IR). In fact, many countries across the globe have already shifted to 
work-based training as a way to train their workers. 
This proposed measure aims to incorporate the existing EBT 
programs administered by TESDA and expand the provision of training 
programs being implemented within companies which can be a mix of 
workplace training and classroom-based learning. 
The bill defines “Enterprise-Based Training Program” as a mix of 
practical training and related theoretical instructions conducted on-and-off 
the job. It involves an agreement between a trainee and an enterprise on 
an approved enterprise-based training qualification. Unlike the current 
set-up, training duration depend on the complexity of the competencies to 
be learned in a specific qualification.  
The bill shall apply to all work-related education and training, 
regardless of the following seven (7) modalities: (a) Apprenticeship; (b) 
Learnership; (c) On-the-Job Training (OJT); (d) Practicum; (e) Work 
Appreciation Program; (f) Dual Training System; and (g) Internship. The 
foregoing can help better prepare our workers to changing market 
demands and to benefit from innovation and new technologies, especially 
automation and artificial intelligence. This bill will likewise address the 
need for an improved work immersion for SHS students and increase the 
confidence of companies in hiring such graduates, giving our young 
people chances to land into jobs. 


 
To encourage more enterprises to provide enterprise-based 
education and training, enterprises shall be granted incentives, including 
an additional deduction from gross income equivalent to seventy-five 
percent (75%) of the training expenses incurred, and fully exempting 
donations and other contributions made to a participating training 
institution from donor’s tax, with the said donation likewise deductible from 
gross income. 
 
This bill can help the government continue to rise and meet the 
changing needs of the market, triggered by the 4th Industrial Revolution, 
and put in place good governance mechanisms that can expand 
partnership with industry associations and companies through enterprise-
based training. More importantly, this bill can address the complaints of 
employers that Filipino graduates are not job-ready. 
 
The immediate passage of this bill is earnestly sought. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
Introduced by CIBAC Party-List Representative 
Eduardo “Bro. Eddie” C. Villanueva 
AN ACT 
STRENGTHENING TECHNICAL VOCATIONAL EDUCATION AND 
TRAINING (TVET) IN THE PHILIPINES BY INCORPORATING 
APPRENTICESHIP AND DUAL TRAINING SYSTEM, PROVIDING FOR 
CONTINUOUS TRAINING OF THE UNEMPLOYED, AND EXPANDING 
THE PROVISION OF ENTERPRISE - BASED EDUCATION AND 
TRAINING, AND FOR OTHER PURPOSES 
  Be it enacted by the Senate and House of Representatives of the 
1 
Philippines in Congress assembled:
2 
3 
SECTION 1. Short Title. – This Act shall be known as the 
4 
“Enterprise-Based Education and Training to Employment Act.” 
5 
6 
SECTION 2. Declaration of Policy. – It is hereby declared the 
7 
policy of the State to enhance the skills of the workforce of the entire 
8 
nation and to meet the requirements of more advanced and evolving 
9 
technologies and higher level competencies.  The State seeks to 
10 
strengthen manpower education and training in the country and to 
11 
promote employment so that it can be assured an ever-growing supply of 
12 
an educated and skilled globally competitive manpower equipped with 
13 
appropriate skills and desirable work habits and attitudes in accordance 
14 
2283


 
with the requirements that meet the demands and standards of the 
1 
workplace in the market.   
2 
 
3 
The policy recognizes two paths of education and training, namely: 
4 
for developing and upgrading the skills of student/trainee in a 
5 
technologically changing world, and for providing relevance in the training 
6 
of student/trainee by encouraging work experiences as valid part and 
7 
means of education and training.  The recognition of the two paths of 
8 
education and training shall greatly contribute to the creation of a 
9 
dependable pool of well-trained workforce in the country. 
10 
 
11 
SECTION 3. Statement of Objectives. – This Act shall have the 
12 
following objectives: 
13 
 
14 
a) 
To help meet the demand of the economy for well-trained manpower 
15 
through Technical Vocational Education and Training; 
16 
 
17 
b) 
To establish a national enterprise-based training system and 
18 
standards that is competency-based, including an on- and off-the-job 
19 
training program, through the participation of employers, workers, 
20 
and government; 
21 
 
22 
c) 
To establish enterprise-based training standards to ensure that the 
23 
trainees will acquire the right competencies and for the protection of 
24 
the rights and safety of the trainees; and 
25 
 
26 
d) 
To broaden the opportunities, venues of education and training of 
27 
Filipino workers towards greater access. 
28 
 
29 
SECTION 4. Definition of Terms. – As used in this Act, the following 
30 
terms shall have the following definitions: 
31 
 
32 
a) 
“Enterprise-Based Training Program” means practical training 
33 
with related compulsory theoretical instructions conducted on-and-off 
34 
the job involving an agreement between a trainee and an enterprise 
35 
on an approved enterprise-based training qualification. The duration 
36 


 
of the program shall be based on the complexity of the competencies 
1 
to be learned in the specific qualification; 
2 
 
3 
b) 
An “Enterprise-Based Trainee/Student” is a person undergoing 
4 
training for an approved enterprise-based education and training 
5 
qualification in an established period assured by an enterprise-based 
6 
education and training agreement; 
7 
 
8 
c) 
“Enterprise” is a group or association, industry organization, single 
9 
proprietorship, government instrumentalities or civic group or any 
10 
entity duly registered and organized, whether or not for profit, 
11 
regardless of the product or services it produces or provides;  
12 
 
13 
d) 
“Enterprise-Based Training Agreement Between Enterprise and 
14 
Trainee” is a contract wherein an enterprise binds itself to train a 
15 
trainee, who in turn accepts the terms of education and training for 
16 
an enterprise-based training qualification, emphasizing the rights, 
17 
duties and responsibilities of each party; 
18 
 
19 
e) 
“Enterprise-Based Education and Training Qualification” is a 
20 
qualification approved for enterprise-based education and training by 
21 
the Technical Education and Skills Development Authority (TESDA) 
22 
Board;  
23 
 
24 
f) 
“Enterprise-Based Education and Training Fund” is a fund to be 
25 
used to defray the expenses of the trainees and other expenses 
26 
related to the implementation of the Enterprise-Based Training 
27 
program; 
28 
 
29 
g) 
“Competency Standards” are written specifications of the 
30 
knowledge, skills, attitudes and values required for the performance 
31 
of a job, occupation or trade and the corresponding standard of 
32 
performance required for these in the workplace; 
33 
 
34 
h) 
“Competency Assessment” is the process of gathering and 
35 
evaluating evidence to determine whether a person can perform to 
36 


 
the standards in the workplace based on the defined competency 
1 
standards;  
2 
 
3 
i) 
“Dual Education and Training” refers to the combination of on- and 
4 
off-the-job training involving an enterprise and a training institution; 
5 
 
6 
j) 
“Period of Education and Training” refers to the time when the 
7 
training commences and terminates; 
8 
 
9 
k) 
“Nominal Duration of Education and Training” is the estimated 
10 
number of training hours; 
11 
 
12 
l) 
“Qualification” refers to a package of competencies describing a 
13 
particular function or job role existing in an economic sector, covering 
14 
work activities required to undertake a particular job. 
15 
 
16 
SECTION 5.  Trainee Entry Requirements for Qualifications of an 
17 
Enterprise Based Education and Training. – To qualify as an 
18 
enterprise-based student/trainee, a person shall: 
19 
 
20 
a) 
Be at least a high school graduate or its equivalent; 
21 
 
22 
b) 
Possess vocational aptitude and capacity for enterprise-based 
23 
training as established through appropriate testing; and 
24 
 
25 
c) 
Possess the ability to comprehend and follow oral and written 
26 
instructions. 
27 
 
28 
Industry associations and labor groups may recommend to the 
29 
TESDA 
appropriate 
educational 
requirements 
for 
the 
different 
30 
occupations. 
31 
 
32 
SECTION 6.  Aptitude Testing of Applicants. – Consonant with the 
33 
minimum qualifications of the enterprise-based trainee applicant required 
34 
under this Act, the enterprises with duly recognized enterprise-based 
35 
training programs shall have the primary responsibility of providing 
36 
appropriate aptitude tests in the selection of trainees. If they do not have 
37 


 
adequate facilities for the purpose, the TESDA may perform the service 
1 
free of charge. 
2 
 
3 
SECTION 7.  Scope of Training and Coverage of Venues. – An 
4 
enterprise that desires to organize and implement an enterprise-based 
5 
training program shall have its program registered with TESDA before it 
6 
enters into an agreement with the trainees. 
7 
 
8 
This Act shall apply to all work-related education and training 
9 
regardless of the following seven (7) modalities: (a) Apprenticeship; (b) 
10 
Learnership; (c) On-the-Job Training (OJT); (d) Practicum; (e) Work 
11 
Appreciation Program; (f) Dual Training System; and (g) Internship. 
12 
 
13 
SECTION 8.  Contents of Enterprise-Based Training Agreement. 
14 
– An Enterprise-Based Training Agreement shall conform to the rules 
15 
issued by the TESDA, which shall include, but not be limited to, the 
16 
following provisions:  
17 
 
18 
a) 
Nature and purpose of training; 
19 
 
20 
b) 
Curriculum;  
21 
 
22 
c) 
Period of training; 
23 
 
24 
d) 
Training allowance equivalent to seventy-five percent (75%) of 
25 
the existing minimum wage;  
26 
 
27 
e) 
Schedule of training allowance payments; 
28 
 
29 
f) 
Process of termination of enterprise-based training; and 
30 
 
31 
g) 
General rights and obligations of both parties. 
32 
 
33 
SECTION 9. Signing of Enterprise-Based Training Agreement. 
34 
– Every enterprise-based education and training agreement shall be 
35 
signed by the enterprise and by the student/trainee; Provided, That if the 
36 
trainee is a minor, the agreement shall be signed in his behalf by his 
37 


 
parent or guardian, and shall in all cases comply with Republic Act No. 
1 
7610, as amended, otherwise known as the “Special Protection of 
2 
Children Against Abuse, Exploitation and Discrimination Act.”  
3 
 
4 
SECTION 10.  Enterprise-based Education and Training 
5 
Arrangements. – Enterprises that desire to organize and implement an 
6 
enterprise-based education and training program shall choose from any 
7 
of the following enterprise-based training schemes, which shall use the 
8 
dual education and training approach: 
9 
 
10 
a) 
Enterprise-based education and training involving a company and an 
11 
identified technical vocational institution; or 
12 
 
13 
b) 
Enterprise-based education and training involving a group of 
14 
companies and a technical vocational institution; or 
15 
 
16 
c) 
Enterprise-based education and training involving an industry training 
17 
center and a company or a group of companies. 
18 
 
19 
SECTION 11.  Responsibility for Theoretical Instruction. – 
20 
Compulsory theoretical instructions shall be part of enterprise-based 
21 
education and training program.  In cases where the program is 
22 
undertaken in the plant, theoretical instructions may be given by the 
23 
enterprise. If the latter is not prepared to assume the responsibility, the 
24 
same may be delegated to an appropriate government agency or to an 
25 
identified technical vocational institution. 
26 
 
27 
SECTION 12.  Enterprise-Based Education and Training 
28 
Administration. – The overall policy-setting for enterprise-based 
29 
education and training shall be the function of the TESDA Board. The 
30 
responsibility for enterprise-based training administration, monitoring and 
31 
evaluation of on- and off-the-job training shall be the concern of the 
32 
TESDA Secretariat. The identification and prioritization of enterprise-
33 
based training qualifications and the development of competency 
34 
standards and curricula shall be the joint responsibility of industry 
35 
associations, labor groups, and TESDA.   
36 
 
37 


 
SECTION 13.  Enterprise-Based Education and Training 
1 
Committee. – There shall be established in every enterprise 
2 
implementing an enterprise-based training program an Enterprise-Based 
3 
Education and Training Committee composed of labor and management. 
4 
For unionized enterprises, the employees’ representative shall come from 
5 
the existing labor unions, while employees’ representatives in non-
6 
unionized enterprises shall be elected by the employees of the enterprise. 
7 
 
8 
The Committee shall be responsible for monitoring the program 
9 
implementation, settling differences between management and trainees, 
10 
and recommending measures for effective program implementation.   
11 
 
12 
In case the Enterprise-Based Education and Training Committee 
13 
shall not be able to settle such differences, the TESDA Secretariat or its 
14 
duly deputized and authorized representative shall investigate and render 
15 
a decision pursuant to pertinent rules and regulations. 
16 
 
17 
SECTION 14.  Appeal to the TESDA Board. –  The decision of the 
18 
TESDA Secretariat may be appealed by any aggrieved person to the 
19 
TESDA Board within five (5) days from receipt of the decision. The 
20 
decision of the TESDA Board shall be final and executory. 
21 
 
22 
SECTION 15.  Exhaustion of Administrative Remedies. – No 
23 
person shall institute any action for the enforcement of any enterprise-
24 
based training agreement or damages for breach of any such agreement, 
25 
unless he has exhausted all available administrative remedies. 
26 
 
27 
SECTION 16. Mandatory Implementation of Enterprise-Based 
28 
Education and Training Program. –   
29 
 
30 
(a) When national security or particular requirements of economic 
31 
development so demand, the President of the Philippines may 
32 
require compulsory enterprise-based education and training in 
33 
certain trades, occupations, jobs or employment levels where 
34 
storage of trained manpower is deemed critical, as determined 
35 
by the TESDA Board upon the recommendation of its 
36 
Secretariat; 
37 


 
 
1 
(b) Where services of foreign technicians are utilized by private 
2 
companies in enterprise-based training occupations, such 
3 
companies shall be required to set-up appropriate enterprise-
4 
based education and training programs. 
5 
 
6 
SECTION 17.  Enterprise-based Education and Training Fund. – 
7 
An Enterprise-Based Education and Training Program Fund shall be 
8 
established to defray the expenses of the qualified trainees in the course 
9 
of taking the education and training program.  The fund shall be derived 
10 
from the following: 
11 
 
12 
a) 
One-time fee paid by the graduates of the enterprise-based 
13 
training program upon employment, to be paid through the Social 
14 
Security System;  
15 
 
16 
b) 
Donations, 
grants 
and 
endowments 
specifically 
for 
17 
implementation of enterprise-based training programs; and 
18 
 
19 
c) 
Such amounts as may be appropriated in the General 
20 
Appropriations Act under the budget of TESDA.  
21 
 
22 
SECTION 
18. 
Enterprise-based 
Education 
and 
Training 
23 
Incentives. – Enterprises participating in the enterprise-based training 
24 
program shall be granted the following incentives: 
25 
 
26 
a) 
An additional deduction from taxable income equivalent to 
27 
seventy-five (75%) of the training expenses incurred; Provided, 
28 
That such expenses shall not exceed five percent (5%) of their 
29 
total direct labor expenses or shall not exceed Twenty-Five 
30 
Million Pesos (Php25,000,000) a year, whichever is lower; 
31 
 
32 
b) 
Donations, contributions, bequests, subsidies, or financial aid 
33 
actually paid or made to a participating training institution within 
34 
the taxable year shall be fully deductible from gross income; and 
35 
 
36 


 
c) 
Donations, contributions, bequests, subsidies, or financial aid 
1 
actually paid or made to a participating training institution within 
2 
the taxable year shall be exempt from donor’s tax; Provided 
3 
however, That not more than thirty percent (30%) of said 
4 
donation shall be used by the training institution for 
5 
administration purposes. 
6 
 
7 
SECTION 19. Exemption from Probationary Employment; 
8 
System of Equivalency. – Certified enterprise-based training graduates 
9 
shall be exempted from probationary employment in the event that they 
10 
are employed in occupations requiring the same skills and qualifications 
11 
standards which they shall have obtained upon passing the appropriate 
12 
competency assessment.   
13 
 
14 
Enterprise-Based Training graduates shall also be awarded 
15 
equivalent unit credits in the formal system of education that can be used 
16 
in pursuing tertiary degree courses, subject to the integrated policies and 
17 
guidelines of equivalency and adult education acceleration program of 
18 
TESDA, Commission on Higher Education (CHED) and Department of 
19 
Education (DepEd). 
20 
 
21 
SECTION 20.  Insurance Coverage and Protection of Trainees. – 
22 
Every participating enterprise implementing an enterprise-based training 
23 
program in accordance with this Act shall provide their trainees, free of 
24 
charge, the appropriate life and/or accident insurance policy. 
25 
 
26 
SECTION 21. Limitation on the Number of Trainees. – No 
27 
enterprise shall be allowed to engage trainees more than twenty percent 
28 
(20%) of the total number of its regular employees; Provided, That the 
29 
TESDA Board may, upon recommendation of the industry association, 
30 
increase or decrease the cap, if necessary; Provided further, That any 
31 
person who shall be engaged as a trainee in excess of the threshold 
32 
herein provided shall be considered as a regular employee of the 
33 
enterprise concerned. 
34 
 
35 
SECTION 22.  Implementing Rules and Regulations. – Within 
36 
ninety (90) days from the effectivity of this Act, TESDA shall, upon 
37 


 
consultation with the Department of Labor and Employment, National 
1 
Tripartite Industrial Peace Council (NTIPC), Bureau of Internal Revenue 
2 
and other relevant stakeholders, issue the implementing rules and 
3 
regulations for the effective implementation of this Act. 
4 
 
5 
SECTION 23. Report to Congress. – Every four (4) years after the 
6 
effectivity of this Act, the TESDA Board shall conduct a review of its 
7 
implementation, accomplishments, and recommendations for further 
8 
improvement of the Enterprise-Based Education and Training, and other 
9 
relevant information, including employability and retention rates of 
10 
trainees post-training, and submit a report to Congress within thirty (30) 
11 
days after the conclusion of the review. 
12 
 
13 
SECTION 24. Repealing Clause. – All laws, decrees, orders, rules 
14 
and regulations or parts thereof inconsistent with this Act are hereby 
15 
repealed or modified accordingly. 
16 
 
17 
SECTION 25. Separability Clause. – If any provision of this Act is 
18 
held invalid or unconstitutional, the same shall not affect the validity and 
19 
effectivity of the other provisions hereof. 
20 
 
21 
SECTION 26. Effectivity. –  This Act shall take effect after 
22 
completion of its publication in the Official Gazette or in two (2) 
23 
newspapers of general circulation. 
24 
 
25 
Approved, 
26