NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
S. B. No. 2587
^iDfficp of I ? ji. . t'l .i
24 MAR-5 P3:10
Ri;cEivi;D ev
(In substitution of Senate Bill No. 363 taking into consideratio
House Bill No. 7400)
Prepared and submitted jointly by the Committees on Higher, Technical and Vocational 
Education; Labor, Employment and Human Resources Development; Ways and 
Means; and Finance with Senators Viilanueva, Escudero, Gatchaiian, Villar (C.), and 
Tulfo as authors thereof
AN ACT
STRENGTHENING THE ENTERPRISE-BASED EDUCATION AND TRAINING 
FRAMEWORK AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Enterprise-Based
2 
Education and Training (EBET) Framework Act."
3 
Sec. 2. Declaration of Policy. - Articie XIII, Section 3 of the 1987
4 
Constitution provides that the State shall "promote full employment and equality of
5 
employment opportunities for all." Toward this end, it is hereby declared the policy of
6 
the State to enhance the skills of the workforce with active participation of the private
7 
sector, and to meet the evolving skills and competencies requirement of the rapidiy
8 
changing world of work.
9 
For this purpose, the State shall strengthen, rationalize, and harmonize the
10 
EBET framework in the country as an effective modality to address jobs-skill mismatch,
11 
unemployment, underemployment, and other labor challenges, and to ensure an ever-
12 
growing supply of globally competitive, educated, and highly skilled human resource
1


1 
in accordance with the demands and standards of the labor market. In addition, the
2 
State shall also develop and strengthen the entrepreneurial know-how of individuals,
3 
recognizing that entrepreneurship is a key driver of job generation.
4 
In order to achieve this, the EBET framework shall be available to individuals
5 
who intend to develop and upgrade their skills in a technologically changing worid in
6 
preparation for potential employment, and to currently employed workers who intend
7 
to upskill for career progression.
8 
Sec. 3. Statement of Objectives. - This Act shaii have the following
9 
objectives:
10 
a) To provide Filipino workers with opportunities to gain new skills and
11 
competencies or upskill for career advancement, allowing them to secure
12 
quality empioyment and/or obtain entrepreneurial know-how;
13 
b) To meet the demands of the labor market for human resources that are
14 
well-trained and adaptable to the ever-evolving skilis and competencies
15 
requirement of the rapidly changing world of work, with a view to
16 
addressing jobs-skills mismatch and strengthening the development of
17 
higher levels of competencies;
18 
c) 
To engage the private sector as an indispensable partner in the
19 
development of modules and competency standards in technical-vocationai
20 
education and training (TVET), and in carrying out EBET programs; and
21 
d) 
To strengthen, rationalize, and harmonize programs, such as
22 
apprenticeship, iearnership, and the dual training system, under an EBET
23 
framework, which shaii be competency-based and industry-driven, and with
24 
due regard to the rights and occupationai safety and heaith of trainees,
25 
through the active participation of employers, trainees, technicai-vocationai
26 
institutions, and the government.
27 
Sec. 4. Definition of Terms. - As used in this Act, the foiiowing terms shaii be
28 
defined as follows:
29 
a) "Competency Assessment" refers to the process of gathering and
30 
evaiuating evidence to determine whether a person can perform to the
31 
standards in the workplace based on the defined competency standards;


1 
b) "Competency Standards" refers to a specification of the knowledge,
2 
skills, attitudes, and values required for the effective performance of a job,
3 
occupation, or trade;
4 
c) "Enterprise" refers to any individual, partnership, corporation, or other
5 
entity organized and existing under Philippine laws, excluding government
6 
agencies and instrumentalities, government-owned 
and 
controlled
7 
corporations, and local government units;
8 
d) "Enterprise-Based Education and Training Program" or "Program"
9 
refers to a technical-vocational education and training delivered in the
10 
enterprise, which may be stand-alone or linked with a technical-vocational
11 
institution. Theoretical instruction shall be a mandatory component of all
12 
EBET Programs;
13 
e) "Qualification" refers to a formal certification that a person has
14 
successfully achieved specific learning outcomes relevant to the identified
15 
academic, industry, or community requirements. A qualification confers
16 
official recognition of value in the labor market and in further education and
17 
training; and
18 
f) "Training Plan" refers to a document which describes the expected
19 
learning outcomes to be acquired within the Program based on set
20 
competency standards, learning experiences a trainee must undergo, and
21 
the methods and arrangement of competency assessment.
22 
Sec. 5. Coverage. - This Act shall be applicable to all EBET Programs, but
23 
excluding the following:
24 
a) Training programs administered by the Commission on Higher Education
25 
(CHED), Department of Education (DepEd), and the Department of Labor
26 
and Employment (DOLE): Provided, That a student enrolled in an
27 
educational institution who is required to undertake an internship as part
28 
of an academic requirement may participate in registered EBET Programs
29 
to fulfill such requirement; Provided, further. That the Technical Education
30 
and Skills Development Authority (TESDA) and CHED or DepEd shall issue
31 
the necessary rules and regulations for this purpose; and


1 
b) Training programs for regulated professions as provided by iaw: Provided,
2 
That such training programs may be aiiowed to be registered as EBET
3 
Programs; Provided, further. That the EBET Program shaii be aligned with
4 
the appropriate competencies that must be iearned by the trainee;
5 
Provided, finaiiy. That TESDA, CHED, and the Professionai Regulation
6 
Commission (PRC) shaii issue the necessary rules and regulations for this
7 
purpose.
8 
Sec. 6. Common Entry Requirements for All EBET Programs. - For
9 
purposes of this Act, a trainee shaii either be a new entrant to the labor force or an
10 
employed worker who opts to undergo training through an EBET Program to acquire
11 
new skiiis, upgrade skills, and/or obtain entrepreneurial know-how.
12 
To participate in an EBET Program, a trainee shaii:
13 
a) Be at least fifteen (15) years old, subject to the provisions of Presidentiai
14 
Decree No. 442 or the "Labor Code of the Phiiippines," as amended, and
15 
the prohibition on the empioyment of minors and against worst forms of
16 
chiid labor under Republic Act No. 7610 or the "Speciai Protection of
17 
Children Against Abuse, Exploitation and Discrimination Act," as amended
18 
by Republic Act No. 9231; and
19 
b) Possess the appropriate aptitude and capacity to understand and foiiow
20 
oral and written instructions.
21 
Notwithstanding the foregoing, enterprises may set appropriate educationai
22 
requirements for an EBET trainee to quaiify for a certain EBET Program.
23 
An enterprise may aiso require additionai quaiifications that shaii be appiicabie
24 
to its employed workers who are intending to upskiii for job promotion.
25 
Sec. 7. EBET Program Registration. - Aii EBET Programs shaii be registered
26 
with TESDA prior to its implementation and before an enterprise enters into an EBET
27 
Agreement, as provided under Section 9 of this Act.
28 
For this purpose, TESDA shaii issue the appropriate rules and regulations for
29 
the registration of EBET Programs, which shaii inciude, but not be limited to, the
30 
submission of a Training Pian and proof of arrangement with a technicai-vocationai
31 
institution, if any.


1 
In the preparation of an EBET Program for registration, an enterprise shall have
2 
the option to either design its Program in accordance with laws, rules, and regulations
3 
or customize it in accordance with its specific needs and capacity, subject to the
4 
requirements under this Act.
5 
Sec. 8. Duration of the EBET Program. - The duration of an EBET Program
6 
shall be based on the complexity of the competencies to be learned based on the
7 
Training Plan, but in no case shall exceed three (3) years.
8 
In setting the duration of an EBET Program, TESDA shall consider the
9 
competency standards, training methodology, sequencing of modules, assessment
10 
and/or certification arrangements, and other relevant factors.
11 
Sec. 9. Contents of EBET Agreement. - An enterprise shall enter into an
12 
EBET Agreement with a trainee prior to the start of the Program. The EBET Agreement
13 
shall include, but not be limited to, the following:
14 
a) 
Nature and purpose of training;
15 
b) 
Curriculum and training design;
16 
c) Hours of training per day and per week;
17 
d) 
Period of training;
18 
e) Training allowance, in accordance with applicable law;
19 
0 
Other benefits as may be provided by the enterprise;
20 
g) 
Schedule of training allowance payments, if applicable;
21 
h) 
Process of termination of EBET Agreement; and
22 
i) General rights and obligations of both parties.
23 
If an enterprise chooses to partner with a technical-vocational institution to
24 
undertake the theoretical instruction as outlined in the Training Plan, the enterprise
25 
shall have the responsibility of ensuring that the terms and conditions of its Agreement
26 
with the technical-vocational institution is in accordance with the requirements and
27 
rules and regulations of TESDA.
28 
If the trainee is between fifteen (15) and eighteen (18) years old, the
29 
Agreement shall be signed by the minor's parent or guardian: Provided, That the
30 
Agreement shall conform to protections for minors as provided under Presidential
31 
Decree No. 442, as amended. Republic Act No. 7610, as amended, and other relevant
32 
laws, rules, and regulations.


1 
If the trainee is currently employed by the enterprise implementing the EBET
2 
Program, the Agreement shall ensure that the trainee is given the same treatment as
3 
that of comparable employees working at the enterprise, including security of tenure
4 
and non-diminution of benefits. Nothing in this Act shall be construed to diminish
5 
existing benefits under present laws, the employment agreement between the parties,
6 
company policies, and collective bargaining agreements.
7 
Sec. 10. Grievance Mechanism. - There shall be an EBET Committee
8 
established in every enterprise implementing an EBET Program, composed of
9 
representatives from the employees and management. For unionized enterprises, the
10 
employees' representative shall come from the existing labor unions. For non-
11 
unionized enterprise, the employees' representative shall be elected by the employees
12 
of the enterprise, or from the members of the Labor-Management Council, if any.
13 
The EBET Committee shall have the responsibility of settling differences upon
14 
the filing of a complaint by an aggrieved party.
15 
Notwithstanding the preceding paragraph, TESDA may take cognizance of
16 
complaints pertaining to any violation of the EBET Agreement or pertaining to the
17 
registration of the EBET Program. The National Labor Relations Commission (NLRC)
18 
and the National Conciliation and Mediation Board (NCMB) shall continue to have
19 
jurisdiction over complaints properly falling within their jurisdiction.
20 
Sec. 11. Mandatory Implementation of the EBET Program. -
21 
a) When national security or particular requirements of economic
22 
development so demand, the President of the Philippines may require
23 
compulsory EBET in certain sectors where shortage of trained human
24 
resource is deemed critical; and
25 
b) Where foreign nationals with valid employment permits are employed, the
26 
enterprise shall be encouraged to set up appropriate EBET Programs as a
27 
tool for technology transfer.
28 
Sec. 12. Donations to Technical-Vocational Institutions. - Enterprises
29 
implementing EBET Programs shall be granted the following incentives:
30 
a) Donations, contributions, bequests, subsidies, or financial aid actually paid
31 
or made to a technical-vocational institution implementing theoretical


1 
instructions for EBET Programs within the taxable year shall be fully
2 
deductible from the gross income of the donor; and
3 
b) Donations, contributions, bequests, subsidies, or financial aid actually paid
4 
or made to a technical-vocational institution implementing theoretical
5 
instructions for EBET Programs shall be exempt from donor's tax.
6 
For this purpose, technical-vocational institutions shall not be required to obtain
7 
accreditation, notwithstanding any law to the contrary.
8 
Donations, contributions, bequests, subsidies, or financial aid made under this
9 
Section shall be exempt from taxes and duties: Provided, That the importation of these
10 
items shall be subject to the following qualifications:
11 
a) That the articles to be imported shall be certified by the appropriate
12 
authority; and
13 
b) That the articles to be imported shall be actually, directly, and exclusively
14 
used in connection with the conduct of the registered EBET Program. Any
15 
unauthorized use shall subject the technical-vocational institution to
16 
payment of taxes and duties thereon.
17 
The Department of Finance (DOF), Bureau of Internal Revenue (BIR), Bureau
18 
of Customs (BOC), and TESDA, in consultation with relevant stakeholders, shall
19 
formulate the necessary rules and regulations to implement the provisions of this
20 
Section, which shall include streamlined processes to encourage broader participation
21 
of enterprises.
22 
Sec. 13. Deductible Training Expense. - Notwithstanding any law to the
23 
contrary, an enterprise implementing an EBET Program shall be qualified to avail of
24 
an additional deduction from taxable income equivalent to seventy-five percent (75%)
25 
of the training expenses incurred: Provided, That such expenses shall not exceed five
26 
percent (5%) of their total direct labor expenses, or shall not exceed Twenty-Five
27 
Million Pesos (Php25,000,000.00) a year, whichever is lower. The enterprise shall
28 
secure the proper certification from TESDA for this purpose.
29 
The DOF, TESDA, and BIR, in consultation with relevant stakeholders, shall
30 
formulate the necessary rules and regulations to implement the provisions of this
31 
Section, which shall include streamlined processes to encourage broader participation
32 
of enterprises.


1 
Sec. 14. Employment Status of EBET Trainees. - An EBET trainee shall
2 
not be considered an employee of the enterprise for the duration of the EBET Program.
3 
EBET graduates shall be given preference in the hiring of workers by the
4 
enterprise that implemented the EBET Program and shall be exempted from
5 
probationary employment therein when hired for a position requiring the competencies
6 
and qualifications which they shall have obtained in the EBET Program.
7 
EBET trainees may also be hired by the enterprise even before the completion
8 
of the EBET Program, which shall result in the automatic termination of the EBET
9 
Agreement between them: Provided, That such trainees shall likewise be exempt from
10 
probationary employment.
11 
For the avoidance of doubt, this Section shall not apply to trainees who are
12 
already regularly employed by the enterprise, who shall continue to enjoy their status
13 
as such.
14 
Sec. 15. System of Equivalency. - TESDA, in consultation with CHED and
15 
other relevant government agencies, shall ensure that EBET graduates shall be
16 
awarded equivalent unit credits in the formal system of education that can be used in
17 
pursuing tertiary degree courses, subject to the integrated policies and guidelines of
18 
equivalency and credit transfer by TESDA and CHED, in consultation with relevant
19 
stakeholders.
20 
Sec. 16. Insurance Coverage and Occupational Safety and Health
21 
Standards. - An enterprise implementing an EBET Program which belongs to a
22 
medium or high-risk industry, as determined by the DOLE, shall provide their trainees,
23 
free of charge, the appropriate life and/or accident insurance policy.
24 
Standards of occupational safety and health under Republic Act No. 11058 or
25 
"An Act Strengthening Compliance with Occupational Safety and Health Standards and
26 
Providing Penalties for Violations Thereof" shall likewise be observed in all EBET
27 
Programs.
28 
Sec. 17. Limitation on the Number of Trainees. - In determining the
29 
allowable number of EBET trainees in each enterprise, TESDA shall consider the
30 
capacity of the enterprise in implementing the EBET Program based on the Training
31 
Plan.


1 
Sec. 18. Roles of TESDA and DOLE. - TESDA shall be the primary agency
2 
responsible for the implementation of this Act. It shall set the policies and guidelines
3 
for the implementation of the EBET framework and shall be responsible for quality
4 
assurance and evaluation of registered EBET Programs.
5 
The TESDA and industry boards shall undertake the identification and
6 
prioritization of qualifications and the development and/or updating of competency
7 
standards, assessment tools, and curricula to ensure broader participation of all
8 
stakeholders in the implementation of EBET Programs.
9 
Pending the establishment of an industry board in a specific sector, TESDA shall
10 
undertake the development and/or updating of competency standards, assessment
11 
tools, and curricula.
12 
The DOLE shall ensure the compliance of enterprises with Republic Act No.
13 
11058 and general labor standards, where applicable.
14 
Sec. 19. Implementing Rules and Regulations. - Within ninety (90) days
15 
from the effectivity of this Act, TESDA shall, upon consultation with the DOLE, National
16 
Tripartite Industrial Peace Council (NTIPC), DOF, BIR, and other relevant
17 
stakeholders, issue the implementing rules and regulations for the effective
18 
implementation of this Act.
19 
Sec. 20. Reportorial Requirement. - Four (4) years after the effectivity of
20 
this Act and every four (4) years thereafter, the TESDA shall conduct a review of the
21 
implementation and accomplishments of this Act, including the employability,
22 
retention rates, and income levels of trainees post-training, and submit a report to the
23 
President of the Philippines and to the Congress not later than June 30 following the
24 
year of review. The report shall also include recommendations to address gaps in the
25 
law and/or the implementation of this Act.
26 
Sec. 21. Suppletory Application. - This Act shall have suppletory application
27 
to laws governing specific EBET Programs, including the dual training system under
28 
Republic Act No. 7686, otherwise known as the "Dual Training System Act of 1994."
29 
Sec. 22. Separability Clause. - If any provision of this Act is held invalid or
30 
unconstitutional, the same shall not affect the validity and effectivity of the other
31 
provisions hereof.


1 
Sec. 23. Repealing Clause. - Sections 9 and 18 of Republic Act No. 7686 are
2 
hereby repealed.
3 
All provisions of Presidential Decree No. 442, as amended, that are inconsistent
4 
with this Act are hereby repealed or modified accordingly.
5 
All laws, decrees, orders, rules, and regulations or parts thereof inconsistent
6 
with this Act are hereby repealed or modified accordingly.
7 
Sec. 24. Effectivity. - This Act shall take effect after fifteen (15) days
8 
following its publication in the Official Gazette or in a newspaper of general circulation.
Approved,
10