rs 01 AUG 2013,

Republic of the Philippines Ke
HOUSE OF REPRESENTATIVES \
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2227

HOUSE BILL NO.

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay

EXPLANATORY NOTE

Youth unemployment has been one of the major concerns of the government. In
2009, half (50.8%) of the 2.83 million unemployed persons were young people,
indicating that the face of unemployment in the Philippines is getting younger. The
problem of high unemployment levels among the youth has been compounded by
inadequate employment opportunities in the formal economy, limited labor market
information and inadequate academic preparation, be it uneducated or educated, and
considering the mismatch between jobs and skills.

The government recognizes the importance of the apprenticeship programs in
providing the youth with skills and access to employment. On the other hand, industry
associations see the apprenticeship program as a mechanism that would ensure a
continuous supply of skilled workers. The number of enterprises participating in the
program and the number of enrolled apprentices, however, remains to be relatively small
and has been increasing at a very slow pace.

‘There is thus a need to institute further reforms and conduct massive advocacy on
the apprenticeship program to make them more attractive to both the enterprises and the
prospective apprentices, in a fervent bid to promote skills acquisition and youth
employment. Hence, passage of this important measure as a special law is eamestly

sought.

franarcine AGLIPAY
Representative, DIWA Party-list

Page | of 9

3s PN


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2227

House Bill No._*

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay

ANACT
REFORMING THE NATIONAL APPRENTICESHIP PROGRAM AND
PROVIDING REGULATORY STANDARDS FOR THE TRAINING AND
EMPLOYMENT OF APPRENTICES, AND FOR ACCREDITATION OF THE
PROGRAMS, THEREOF

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

SECTION 1. Short Title ~ This Act shall be known as the “Apprenticeship
Training System Act of 2013”,

SECTION 2. Declaration of Policy - 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 employers, workers, government agencies and non-
‘governmental organizations concemed

SECTION 3. Statement of Objectives ~ The aims of this Act shall include:

a To help meet the demand of the economy for trained human resource;

b. To have a national apprenticeship program that includes on and off the-job
training components with tripartite involvement,

c To promote full employment of young workers through training and
development;

d. To enhance existing standards for the training, development and employment
of apprentices.

To recognize indispensable role of private enterprises in training and
development;

f. To strengthen advocacy of the apprenticeship training program to encourage
enterprise and young workers" participation;
To increase productivity and competitiveness of enterprises by ensuring
availability of skilled human resource;

h. To hamess Corporate Social Responsibility (CSR) towards the development
of skilled manpower to meet the requirements of the industries.

Page 2 of 9


SECTION 4. - Definition of Terms — For purposes of this Act, the following
terms are hereby defined:

a. Apprenticeship ~ is training within an enterprise involving a contract
between an apprentice and an employer on an approved apprenticeable
occupation.

b, Apprentice — is a person undergoing training for an approved
apprenticeable occupation during an established period govemed by an
apprenticeship contract.

¢. Apprenticeship Contract- is an agreement wherein a prospective
employer binds himself or itself to train the apprentice who in turn accepts
the terms of training for the recognized apprenticeable occupation and the
rights, duties and responsibilities of each party.

4. Apprenticeable Occupation ~ is an occupation officially endorsed by a
tripartite body and approved for apprenticeship by TESDA.

e. Authority — refers to the Technical Education and Skills Development
Authority (TESDA).

f, Board ~ shall refer to the TESDA Board,

g. Certificate of TVET Program Registration ~ is a document issued by
TESDA granting an authority to an enterprise to offer a program in an
apprenticeable occupation,

h. Competency Assessment — is the process of gathering and judging
evidence in order to decide whether a person has achieved a standard of
competency

i, Training Plan ~ is the specification for the apprenticeship program for an
enterprise which describes all the learning experience a student undergoes,
generally including the competencies to be acquired within the program, the
underpinning knowledge, theories and principles and the assessment
arrangement.

J. Competency Standard ~ is a written specification of the knowledge, skills,
attitude and values required for the performance of a job, occupation ot
trade and the corresponding standard of performance required therefor in the
workplace.

k. Enterprise ~ is a participating establishment that directly engages an
apprentice based on an approved Apprenticeship Program

Unit(s) of Competency — are units of competency from competency
standard. Each unit has elements, performance criteria, range of variables
and evidence guides.

Page 3 of 9

KK


m. Cluster of Competencies — is the groupings of competencies leading to
Certificate of Competency,

n. Qualification — refers to a supermarket of competencies representing a clear
meaningful set-up in the workplace and aligning with the Philippine TVET
Qualifications Framework descriptor. Depending on the breadth, depth and
scope of competency, a qualification may fall under National Certificate
Level I, 11, III, IV or V.

SECTION 5. Qualifications of an apprentice ~ To qualify as an apprentice, a
person shall

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

©) Have the ability to comprehend and follow oral and written instructions

Trade, industry and labor organizations may recommend to TESDA appropriate
educational requirements for different occupations

SECTION 6, Aptitude Testing of Applicants - Consonant with the minimum
qualifications of apprentice-applicants required under this Chapter, the bipartite plant
apprenticeship committees shall have primarily responsibility for providing appropriate
aptitude examinations in the selection of apprentices.

SECTION 7, Training of Apprentices —Only enterprises with programs
registered with TESDA may enter into apprenticeship contracts and train apprentices in
approved apprenticeable occupations.

SECTION 8. ~ Apprenticeship Training Program Content and Delivery - All
qualifications with Training Regulations (TRs) promulgated by the TESDA Board are
automatically classified as apprenticeable. To meet the immediate requirements of
enterprises for skilled workers, the TESDA Board shall approve new apprenticeable
occupations endorsed by the appropriate Regional Technical Education and Skills
Development Committee (RTESDC) upon consultation with workers’ groups and
industry representatives,

The apprenticeship program shall emphasize the need for theoretical instructions
The enterprise may seek partnership with a TVET institution in the design and delivery,
thereof.

SECTION 9. Apprenticeship Period - The apprenticeship period shall be based
on the duration of training required in the Training Regulation and on the complexity of
the skills to be leamed by the apprentices.

SECTION 10. Apprenticeship Program Registration - Registration of
program can be for a qualification, for cluster of competencies or for a bundled
qualifications as contained in the Training Regulations, A Letter of Application stating
the intention and 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

Page 4 of 9

ae


An apprenticeship program maybe approved on a No-Training Regulations basis
provided that the applicant enterprise can show proof of the demand for such skill,

TESDA shall provide technical assistance to the applying and implementing
enterprises to be able to comply with the provisions of this section.

SECTION 11, Contents of Apprenticeship Contract- Apprenticeship contract
shall conform with the rules issued by TESDA and shall include:

‘A. the nature, syllabus, timetable and purpose of training;

B, the 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;

D. aschedule of training allowance payment,

E, training hours,

F, the process for the termination of apprenticeship; and

G. the general rights and obligations of both parties

SECTION 12. Signing of apprenticeship contract ~ Every apprenticeship
contract shall be signed by the enterprise owner or his/her authorized representative, or
the authorized representative of any of the recognized organizations, associations or
groups and the apprentice,

An apprenticeship contract with a minor shall be signed in his/her behalf by
his/her parent or guardian or, ifthe latter is not available by an authorized representative
of the TESDA, and the same 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 Title shall be approved by
the bipartite plant apprenticeship committee involving the firm owner and
representatives of the firm workers, and copies thereof shall be furnished the firm owner
and the apprentice.

SECTION 13, Apprenticeship Schemes - Enterprises with approved
apprenticeship program may choose from any of the following apprenticeship scheme
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 and a training institution;

©) 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 and subject to the approval of the
TESDA Board.

SECTION 14, Apprenticeship Administration — The TESDA Board st
responsible for setting up the overall apprenticeship policy and standards, The T
Secretariat shall be responsible for apprenticeship administration, monitoring and
evaluation of on and off-the-job training.

Page 5 of 9



SECTION 15. Investigation of violation of apprenticeship contract — The
bipartite plant apprenticeship committee, upon complaint of any interested party or motu
propio, shall have initial responsibility for settling differences arising out of
apprenticeship contracts. In case it is not able to settle such differences, the TESDA
Secretariat or its authorized representative shall investigate and render a decision
Pursuant to pertinent rules and regulations as may be prescribed by the TESDA Board.

SECTION 16, Appeal to the TESDA Board ~ The decision of the TESDA
Secretariat may be appealed by any aggrieved person to the TESDA Board within five
(5) days from receipt of the decision. The decision of the TESDA Board shall be final
and exeeutory.

SECTION 17, Termination of Apprenticeship — The following shall be the
grounds for the termination of apprenticeship:

1, Valid cause to terminate the Apprenticeship contract
1. By the employer:

a) habitual absenteeism in on-the-job training and related theoretical
instructions,

b) willful disobedience to company rules or insubordination to lawful order of a
superior;

©) poor physical condition, permanent disability or prolonged illness which
incapacitates the apprentices from working;

4) thefi or malicious destruction of company property and/or equipment;

©) poor efficiency or performance on the job or in the classroom for a prolonged
period despite warnings duly given to the apprentices; and

) engaging in violence or other forms of group misconduct inside the
employer's premises

2. By the apprentice.

a) substandard or deleterious working condition within the employer's premises:

b) repeated violations by the employer of the terms of the apprenticeship
agreement;

) cruel and inhuman treatment by the employer or his subordinates;

d) personal problem which in the opinion of the apprentice shall prevent him
from a satisfactory performance of his job; and

¢) bad health and continuing illness,

Il. Procedures/Rules on the termination of apprenticeship:
1. Apprenticeship Committee Level
a) The party (employer or apprentice) interested in terminating the contract may
do so, first, by notifying the Apprenticeship Committee;

b) The Committee confers with both parties and mediates and/or settles the
differences between them;

Page 6 of 9

me


shall,

¢) If mediation and/or settlement is not possible, the Committee advises the
complainants to apply for said termination with the Apprenticeship Division
of the Regional Office concerned.

2, Regional Level

a) The complainant yerbally presents his/her case to the Apprenticeship
Division. If to the judgment of the Division the complaint merits
consideration, he/she is made to duly accomplish an “Application for
‘Termination of Apprenticeship” form,

b) ‘The Division verifies as to the veracity and validity of the claim within five
(5) days from receipt thereof ~

1) by calling both parties (employer and apprentice) for
conference; or

2) _ by sending a representative to the employer's concern for
the purpose

3) incase ground for approval exist ~

i), the investigating officer (field representative) shall
initiate the application; and

ii) the Chief of the Apprenticeship Division shall
verily the same

iii) the application shall immediately be forwarded to
the Regional Director for appropriate action; after
which @ copy of the acted application shall be
furmished each applicant and the second party; this
process shall be completed within three (3) days
from receipt of the document by the Office of said
Regional Director.

iv) A copy of each approved application shall be
furnished the Bureau of Apprenticeship to be
forwarded to the said Office together with the
Monthly Performance Report of the Apprenticeship
Division,

3. Agency Level

If either of the Parties is not satisfied with the decision of the Regional
Director, he/she may, within the reglementary period of five (5) days from receipt
of the document, appeal the case to the TESDA Director General whose decision
shall be final and unappealable.

SECTION 18. Competency Assessment and Certification - The apprentices
within the apprenticeship period, undergo competency assessment for

qualifications with Training Regulations. A National Certificate shall be issued to all
those who demonstrated achievement of the competency standards,

SECTION 19. Training Certificate ~ 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

Page 7 of 9

&


units of competency acquired and shall be comparable to completion of a training
program in a TVET institution.

SECTION 20, Compulsory Apprenticeship - 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

SECTION 21, Apprenticeship Training Fund- There shall be established an
apprenticeship training fund which shall be derived from the apprenticeship fee paid by
every firm owner in industries employing workers in apprenticeable trades. Workers who
are graduates of apprenticeship programs shall likewise pay a one-time apprenticeship
fee upon employment as contribution to the apprenticeship training fund.

‘The apprenticeship fee rates and guidelines to be applied shall be approved by the
TESDA Board after a public hearing with the management and labor sectors. The fee
shall be collected and paid through the Social Security System (SSS) and transferred 10
the Apprenticeship Training Fund to be administered by TESDA. The apprenticeship fee
rate may be increased by the TESDA Board subject to the requirements of public
hearing,

The Apprenticeship Training Fund shall be deemed distinct and separate from the
DA Development Fund under Section 31 of R.A. 7796 or the TESDA Law, and as
such, shall not be subject to the Implementing Rules and Regulations of the latter. Such
apprenticeship fund may be used to defray expenses of the trainees in the institution or
training center as well as other expenses to be approved by the TESDA Board to improve
implementation of the program,

SECTION 22. Incentives - An additional deduction from the taxable income
equivalent to one-half (1/2) of the value of labor training expenses incurred — for
developing the productivity and efficiency of apprentices shall be granted to the person
or enterprise organizing an apprenticeable program and shall be exempt from the
payment of apprenticeship fee. Provided, That such program shall be duly recognized by
TESDA, Provided, further, That such deduction shall not exceed ten percent (10%) of
direct labor wage; and, Provided, finally, ‘That the person or enterprise who wishes to
ayail himself or itself of this incentive should pay his apprentices the minimum wage
Micro-cottage and small enterprises or those with less than 100 employees shall also be
exempt from the payment of the apprenticeable fee

SECTION 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 to the integrated policies and guidelines on
equivalency and adult education acceleration program of the TESDA, CHED and
DepEd.

SECTION 24. Implementing Rules and Regulations ~The TESDA Board shall

issue the Implementing Rules and Regulations within ninety (90) days after the
effectivity of this Act.

Page 8 of 9


SECTION 25. Penalty Clause. Any violation of the provisions of this Act or its
implementing rules and regulations shall be subject to the general penalty provided for in
the Labor Code as amended_

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 and or criminal cases as may be
deemed reasonable and appropriate and after deliberation of the TESDA Board pursuant
to this Act for any of the following causes:

‘* Fraud or deceit committed in connection with the application for the opening
of apprenticeship programs; and

* Failure to comply with conditions or obligations prescribed under this Act or
its implementing rules and regulations.

SECTION 26. Transitory Provision ~ All existing apprenticeship programs and
‘Training Regulations shall be valid until after the TESDA shall have conducted an
assessment and revalidation for consistency with the provisions of this Act and its
Implementing Rules and Regulations.

SECTION 27. Abolition of the Learnership Program ~ To rationalize and
ensure the effective implementation of the reformed apprenticeship program, the
leamnership program is hereby abolished

SECTION 28. Repealing Clause - Pertinent provisions of P.D. 442 or the Labor
Code of the Philippines as amended, Executive Order No. 111 series of 1986, R.A. No.
7796 or the TESDA Act of 1994 and all other laws, decrees, executive orders and rules
and regulations contrary to or inconsistent with the provisions of this Act are hereby
repealed or modified accordingly. Any law, Presidential Decree or issuance, Executive
Order, Letter of Instruction, rule or regulation inconsistent with the provisions of this Act
is hereby repealed or modified accordingly.

SECTION 29. 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,

SECTION 30. Effectivity - This Act shall take effect after fifteen (15) days
from the date of its full and complete publication in the Official Gazette or in two (2)
newspapers of general circulation

Approved.

Page 9 of 9