1^/
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1298
of tl)f ©.-a fTni-p
25 AUG 27 P5:28
RECEIVtD BY:
Introduced by Senator Robinhood Padilla
AN ACT
PROMOTING SKILLS-BASED HIRING IN THE PRIVATE SECTOR BY 
REQUIRING CONSIDERATION OF COMPETENCY-FOCUSED RECRUITMENT 
PRACTICES FOR SKILLS-ORIENTED EMPLOYMENT POSITIONS
EXPLANATORY NOTE
It is a painful reality that a large portion of our population is unable to pursue 
or complete tertiary education due to systemic poverty. Many of our youth are forced 
to forego their dreams of higher education to become family breadwinners—taking on 
the responsibilities of helping to support their families and send younger siblings to 
school. This socio-economic burden robs them of formal credentials but not of 
capability.
Despite the absence of college degrees, countless Filipinos possess valuable 
practical skills, technical expertise, and real-world work experience—qualities that 
remain untapped due to the rigid hiring practices. These skilled individuals continue 
to be overlooked simply because they lack academic titles, even when such credentials 
are not directly relevant to the jobs for which they are applying to.
As of April 2025, the Philippine Statistics Authority (PSA) reported an 
unemployment figure of 2.06 million, placing the unemployment rate at 4.1%. A 
significant contributing factor to this persistent issue is the prevalence of unnecessarily 
high educational requirements and restrictive job qualifications in the private sector. 
In many instances, companies continue to require college diplomas for positions that


could be effectively performed by individuals with technical training or proven practical 
skills.
This mismatch between the hiring standards and actual job requirements 
creates a barrier not only for skilled workers but also for the country's economic 
development. According to the PSA, the services sector remains the top employer, 
accounting for 61.9% of the workforce—many of these roles do not inherently require 
a college degree but instead demand competence, reliability, and skill.
Globally, several countries have successfully implemented skills-based hiring 
systems, resulting in improved employment rates, more inclusive labor markets, and 
enhanced productivity. For instance, in countries like Germany, Canada, and 
Singapore, employers have adopted hiring frameworks that recognize vocational 
certifications, apprenticeship programs, and real-life experience as valid qualifications. 
These practices have helped bridge workforce gaps and provided fair opportunities to 
individuals from diverse educational backgrounds.
In this light, the proposed measure seeks to institutionalize skills-based hiring 
in the private sector by requiring companies to give due consideration to candidates' 
competencies, practical experience, and technical certifications—particularly in skills- 
oriented job positions. It encourages a hiring culture that is inclusive, merit-based, 
and aligned with actual job demands.
In view of the foregoing, the passage of this measure is earnestly sought.
ROBlNriOOD PADILLA
Senator


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 1298
Introduced by Senator Robinhood Padilla
senate
of tl)»’ es-'trftar^
25 AUG 27 P5:28
RECEIVED BV.
AN ACT
PROMOTING SKILLS-BASED HIRING IN THE PRIVATE SECTOR BY 
REQUIRING CONSIDERATION OF COMPETENCY-FOCUSED RECRUITMENT 
PRACTICES FOR SKILLS-ORIENTED EMPLOYMENT POSITIONS
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 " Trabaho Bataysa Gating
2 
at Kasanayan Act."
3 
Sec 2. Declaration of Policy. - Pursuant to the mandate of the 1987 Philippine
4 
Constitution, particularly Section 18 of Article II, and Section 3 of Article XIII, which
5 
uphold the dignity of labor and promote full employment and equality of employment
6 
opportunities for all, and in accordance with the Labor Code of the Philippines, it is
7 
hereby declared the policy of the State to ensure inclusive and fair access to
8 
employment opportunities.
9 
The State shall foster a labor market that values practical competencies,
10 
technical skills, and relevant experience as legitimate bases for employment in skill-
11 
oriented positions. The State likewise acknowledges the importance of inclusive hiring
12 
practices that reduce barriers to employment caused by overreliance on academic
13 
credentials.
14 
Sec 3. Statement of Objectives. - This Act seeks to:
15 
a. Promote equitable access to employment opportunities through skills-
16 
based hiring mechanisms;


1 
b. Encourage private sector employers to adopt recruitment and selection
2 
practices that recognize competencies, certifications, and work
3 
experience as valid qualifications;
4 
c. Collaborate with relevant agencies, such as but not limited to,
5 
Department of Labor and Employment (DOLE) and Technical Education
6 
and Skills Development Authority (TESDA), to establish validated metrics
7 
and standards for skill-based employment; and
8 
d. Contribute to a more inclusive and efficient labor market by aligning job
9 
qualifications with actual work requirements.
10 
Sec 4. Definition of Terms. - As used in this act, the following terms shall mean:
11 
a. Skills-Based Hiring - A recruitment and employment approach that
12 
evaluates candidates primarily based on their demonstrated
13 
competencies, practical experience, and technical skills, rather than
14 
solely on formal educational credentials;
15 
b. Skills-Based Employment - refers to occupations where technical skills,
16 
trade proficiency, or job-specific competencies are the primary
17 
requirements for satisfactory job performance; and
18 
c. Skills-Oriented Positions - Roles that require a defined set of practical
19 
skills and knowledge, typically associated with technical or manual work,
20 
including but not limited to janitorial services, drivers, maintenance
21 
workers, electricians, messengers, machine operators, and similar
22 
positions.
23 
Sec 5. Scope of Appiication. - This Act shall apply to all private sector employers
24 
operating in the Philippines who hire for skills-oriented positions, including but not
25 
limited to:
26 
a. Janitorial, sanitation, and housekeeping services;
27 
b. Building and equipment maintenance;
28 
c. Motor vehicle drivers (including company, delivery, and logistics drivers);
29 
d. Office messengers;
30 
e. Technical trades (e.g., electricians, welders. Heat, Ventilation, and Air
31 
Conditioning [HVAC] technicians);
32 
f. Construction Workers;


1 
g. Salon Stylist and/or Technicians;
2 
h. Machine or equipment operators; and
3 
i. Other positions identified by TESDA or the DOLE as skills-based.
4 
Sec 6. Skill-Based Hiring Process. - Private sector employers covered by this
5 
Act shall:
6 
a. Include skills and competencies as minimum qualifications in job
7 
postings;
8 
b. Utilize practical assessments, standardized tests, job simulations or
9 
TESDA-recognized assessments to evaluate candidates' competencies;
10 
c. Ensure that job applicants are not disqualified solely on the basis of
11 
lacking a college diploma or formal academic degree if they meet the
12 
essential skills requirements; and
13 
d. Maintain documentation of hiring procedures showing the use of
14 
competency-based evaluations.
15 
Sec 7. DOLE Partnership and Development of Metrics. - The DOLE, in
16 
coordination with the TESDA, shall:
17 
a. Develop standardized metrics and assessment tools to validate
18 
candidates' skills and competencies for each skills-oriented position;
19 
b. Maintain an accessible database of certified skilled workers accessible to
20 
jobseekers and employers;
21 
c. Provide capacity-building programs for employers and human resource
22 
practitioners on skills-based recruitment and employment; and
23 
d. Monitor compliance and report findings annually to Congress.
24 
Sec 8. Incentive for Employer Compliance. - To encourage compliance and
25 
promote best practices, the following incentives may be made available to compliant
26 
private sector employers:
27 
a. Priority access to government training subsidies or partnership
28 
programs;
29 
b. Possible tax deductions or incentives for documented expenditures
30 
related to the implementation of skills-based recruitment (subject to
31 
regulations issued by the Department of Finance and Bureau of Internal
32 
Revenue); and


1 
c. Access to government-certified talent pools and training support.
2 
Sec 8. Implementing Rules and Regulations. - Within ninety (90) days from the
3 
effectivity of this Act, the DOLE, in coordination with TESDA, and other concerned
4 
agencies and stakeholders, shall promulgate the necessary rules and regulations to
5 
effectively implement the provisions of this Act.
6 
Sec. 9. Separability Clause. - If any provision of this Act shall be held
7 
unconstitutional or invalid, the other provisions not otherwise affected shall remain in
8 
full force and effect.
9 
Sec. 10. Repealing Clause. - All laws, decrees, orders, issuances, and rules and
10 
regulations, or parts thereof inconsistent with the provisions of this Act are hereby
11 
4 repealed or modified accordingly.
12 
Sec. 11. Effectivity. - This Act shall take effect fifteen (15) days after its
13 
publication in the Official Gazette or in at least two (2) newspapers of general
14 
circulation.
Approved,