FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 946 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
One of the potential contributors to the attainment of our country's developed and 
industrialized status is our labor sector. However, unemployment has steadily risen and 
the number of jobless Filipinos continuously sweeping society marking poverty and 
hardships. 
In the January 12, 2004 issue of the Philippine Star, it reported that per the 
records of the Department of Labor and Employment (DOLE), the number of jobless 
Filipino youths has reached 2.5 million. Overseas employment is likewise bleak citing 
that the number of registered Filipino migrant workers declined by eight percent (8 %) to 
31,543 in the first six months of 2003 compared to 129,022 covering the same period in 
2002. 
As such, there is a need to identify the type of skills training projects which must 
be conducted by the government. 
Projections in the drafted National Manpower Plan (NMP) revealed that about 1.3 
million young workers aged 15 to 24 years old will need pre-employment training within 
a span of five years. On the average, about 255,000 young workers will have to 
undergo pre'employment training. Twenty two percent (22%) of these are elementary 
graduates and twenty one percent (21 %) are high school graduates. 
A similar attention, although in a different degree of training, should also be given 
to workers who are dismissed due to financial failures or, poor performance of their 
company. Moreover, cases of displaced workers are expected to rise with the full 
implementation of the General Agreement on Tariffs and Trade (GATT).The advent of 
GATT means creation of job opportunities which demand skills rarely applied and 
practiced in our local industries. 
It is therefore imperative to formulate and implement strategies for skills training 
that will prepare workers for new skills adaptations, ensure their employment, and 
become world-competitive. 
In view of the foregoing, approval of this bill is earnestly 
"LITO" M. LAPID 
Senator 
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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regu/ar Session 
SENATE 
S. No. 946 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
INSTITUTIONALIZING SKILLS TRAINING AND RETRAINING FOR THE 
UNEMPLOYED, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Short Tit/e. - This Act shall be known as "Skills Training and 
Retraining Act of 2010." 
SEC. 2. 
Dec/aration of Policy. - It is the declared policy of the State to 
affirm labor as the primary social economic force. It is also the policy of the State to 
provide adult citizens, the disabled, and out-of-school youth with training in civics, 
vocational efficiency, and other skills, 
Toward this end, it is the policy of this Act to formulate mechanisms designed to: 
(a) 
Provide adequate and relevant skills training and retraining programs to 
address the requirements of the industry, and 
(b) 
Update the standard skills and introduce new crafts to prepare workers for 
their employment and re-employment. 
SEC. 3. 
Skills Bul/etin. - The Technical Education and Skills Development 
Authority (TESDA) in coordination with the Department of Trade and Industry (DTI) shall 
maintain an updated list of needed skills categorized according to industry. 
The list shall be made publicly available every month at the Technical Education 
and Skills Development Authority, Department of Trade and Industry, and Department 
of Labor and Employment (DOLE) and their respective regional offices to ensure the 
labor group of information. 
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SEC. 4. 
Retraining of Displaced Workers. - Skills upgrading opportunities 
shall be immediately extended by the TESDA to workers who were dismissed due \0 an 
inevitable shutdown of their company or business establishment. 
The TESDA shall orient the dismissed workers with the skills listed in the Skills 
Bulletin stated in Section 3 of this Act. 
Dismissed workers shall be required to present a notice of termination or any 
document that indicated their dismissal due to the shutdown, bankruptcy or other 
reasons which cause their company to cease business operations. The TESDA 
Secretariat, however, shall verify the name of the company or business establishment to 
circumvent false claim from the worker. 
SEC. 5. 
Appropriations for Reskilling of Displaced Workers. - The 
amount of One Hundred Million Pesos (Php100,OOO,OOO.OO) used for the funding of the 
reskilling of displaced workers for a span of three (3) years shall be appropriated 
beginning the year following approval of this Act. 
SEC. 6. 
Pre-employment Training for the Youth. - The TESDA shall 
formulate training programs that will equip out-of-school youths (OSYS) the necessary 
skills to prepare them for employment. Training fees shall cover only for the materials 
and equipment that will be utilized. 
The TESDA personnel involved in charging excessive fees to OSY trainees shall 
be subjected to disciplinary action. OSY trainees shall be encouraged to file their 
complaints to the TESDA administration. 
A company or business establishment which hired an OSY graduate shall duly 
recogni·ze the certificate awarded to the OSY graduate and shall observe the 
employment conditions agreed. The hired OSY shall likewise report any violation 
committed by the business establishment or company to the DOLE. 
SEC. 7. 
Training Women in Non-Traditional Trades. - The TESDA shall 
provide a discount of at least ten percent (10%) on training fees as incentive to women 
who are willing to unqergo training in non-traditional trades or women-applicants shall 
pay the said training fees upon employment. 
The Department of Labor and Employment through its job placement centers or 
public employment and service offices shall give priority in providing assistance to 
women who are graduates of non-traditional trades to find jobs. 
SEC. 8. 
Skills 
Training 
for 
Rural 
Non-Farm 
and 
Agricultural 
Productivity. -
In a joint effort, the Department of Science and Technology (DOST) 
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and the Department of Agriculture (DA) shall provide the latest and new technologies 
involved in agro-processing activities and farm-related activities. 
The TESDA in coordination with the DOST and the DA shall conduct the training 
in every region. 
SEC. 9. 
Appropriation. -
The amount of Two Hundred Million Pesos 
(Php200,OOO,OOO.OO) used for the funding of Skills Training for Rural Non-Farm and 
Agricultural Productivity for a span of four (4) years shall be appropriated. 
SEC. 10. 
Skills Training for Export Oriented Small and Medium Scale 
Enterprise (SMEs). - The DOLE through its livelihood programs shall give priority on 
training for workers that will be employed in export-oriented SMEs. 
The DOLE in coordination with the DTI shall provide pointers on the latest export 
champions to prepare prospective entrepreneurs on the kind of product to venture in. 
SEC. 11. 
Appropriation for Skills Training for Export Oriented Small and 
Medium Scale Enterprises (SMEs). - The amount of Sixty Five Million Pesos 
(Php65,OOO,OOO.OO) used for the funding of Skills Training for Export Oriented Small 
and Medium Scale Enterprise (SMEs) for a span of three (3) years shall be appropriated 
for the following year upon approval of this Act. 
SEC. 12. 
Penalties. - In the event that the aforementioned appropriations 
were not utilized in the manner stated in the given provisions, the guilty party shall be 
punished by a fine not exceeding Ten Thousand Pesos (php10,OOO.OO) or by 
imprisonment of not more than four (4) years, or both such fine and imprisonment. 
SEC. 13. 
Separability Clause. -
The prOVisions of this Act are hereby 
declared separable and in the event any of such provisions is declared unconstitutional, 
the other provisions which are not affected thereby shall remain in force and effect. 
SEC.' 14. 
Repealing Clause. - All other laws, decrees, executive orders, 
administrative orders, rules and regulations or parts thereof which we inconsistent with 
the provisions of this Act are hereby repealed, amended or modified accordingly. 
SEC. 15. 
Effectivity Clause. - This Act shall take effect after fifteen (15) 
days following its publication in two (2) national newspapers of general circulation. 
Approved, 
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