NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
S. No.
SENATE
1912
\a
of tl).: fei'ii-ptarp
23 FEB 21 P3:38
RLCEIVlD S’-
Introduced by Senator MANUEL "LITO" M. LAPID
AN ACT
PROVIDING FOR A REVISED NATIONAL APPRENTICESHIP PROGRAM 
REPEALING FOR THE PURPOSE CHAPTERS I AND II OF TITLE II, BOOK II 
OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN 
AS THE LABOR CODE OF THE PHILIPPINES
EXPLANATORY NOTE
The International Labor Organization defines apprenticeship as a unique form of 
technical vocational education and training, combining on-the-job training and off-the- 
job learning, which enable learners fron1 all walks of life to acquire the knowledge, 
skills and competencies required to carry out a specific occupation. They are regulated 
and financed by la'ws and collective agreements and policy decisions arising from social 
dialogue, and require a written contract that details the respective roles and 
responsibilities of the apprentice and the employer; they also provide the apprentice 
with remuneration and standard social protection coverage.1
The Philippines confronts significant hurdles in ensuring that the youth are 
properly incorporated into the labor force. The main challenges are to reduce 
unemployment among the youth, to enhance access to quality jobs or education, to 
improve youth skills development, to provide access to high-quality programs in order
1 https://www.ilo.org/global/topics/apprenticeships/pLiblications/toolkit/what/ilo-definition/lang-- 
en/index.htm


to make them more beneficial and appealing to employers, and to include important 
stakeholders in governance structures.
Ating ipinapanukala ang bagong National Apprentice Program upang siguraduhin 
na ang mga bagong henerasyon ng mga manggagawang Piiipino ay may sapat na 
kaaiaman, kasanayan at kakayahan na tangan sa kaniiang pagpasok sa labor force 
ng ating bansa. Sa gayon, tayo ay nakasisiguro na ang ating mga manggagawa ay 
nagtatagiay ng big it pa sa kinakaiiangan upang siia ay matanggap sa mga trabaho na 
makakatuiong sa kaniiang mga pamiiya na magkamit ng disenteng pamumuhay 
gayundin ang kauniaran ng bansa.
This measure seeks to reform the national apprenticeship program under 
Chapters I and II of Title II of Presidential Decree No. 442 otherwise known as the 
Labor Code of the Philippines. It seeks to promote youth employment and provide 
quality apprenticeship and vocational training program to our working population, 
finding innovative ways to encourage firms to hire young Filipino workers, to introduce 
early intervention measures and effective job-search assistance for different groups 
of workers and motivating entrepreneurship and business start-ups.
Furthermore, the Technical Education and Skills Development Authority (TESDA) 
will be the key authority in executing the apprenticeship program under this proposed 
law. It shall develop manpower and skills strategies, establish appropriate skill 
standards and tests, organize and monitor manpower policies and programs, and 
provide policy direction, recommendations and guidelines for resource allocation to 
TVET institutions in both the private and public sectors.
In view of the foregoing, early passage of this bill is earnestly sought.
rUEL "LI
Senator
. LAPID


,'rmN
Senate
4.V J
of tl}C .T't':’7
NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
23 FEB 21 P3 38
SENATE
S. No. ^91^
RLCEiVEu B',
Introduced by Senator Manuel "Lito" M. Lapid
1
2
3
4
5
AN ACT
PROVIDING FOR A REVISED NATIONAL APPRENTICESHIP PROGRAM 
REPEALING FOR THE PURPOSE CHAPTERS I AND II OF TITLE II, BOOK II 
OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN 
AS THE LABOR CODE OF THE PHILIPPINES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
6 
SECTION 1. Tide. — This Act shall be known as the "Revised National
7 
Apprenticeship Program Act"
8 
SECTION 2. Declaration of Policy. — It is hereby declared the policy of the
9 
State to establish a revised apprenticeship program that will promote youth
10 
employment and provide quality apprenticeship and vocational training program to
11 
our working population.
12
SECTION 3. Statement of Objectives. — This Act aims to:
13
a. Help meet the demand for trained human resources;
14
15
16
17
18
b. Have a national apprenticeship program that includes on- and off-the-job 
training components with tripartite involvement;
c. Promote the engagement of young workers through training and 
development;
d. Enhance existing standards for the training and development of apprentices;


1 
e. Recognize the indispensable role of private enterprises in the training and
2 
development of human resource;
3 
f. Strengthen career guidance and counseling services and other advocacy
4 
activities on the apprenticeship training program to encourage the
5 
participation of enterprises and young workers;
6 
g. Increase productivity and competitiveness of enterprises by ensuring the
7 
availability of skilled human resource; and
8 
h. Harness corporate social responsibility towards the development of skilled
9 
manpower to meet the requirements of industries.
10 
SECTION 4. Definition of Terms. — As used in this Act:
11 
a. Apprentice refers to a person undergoing training for an approved
12 
apprenticeable occupation during an established period governed by an
13 
apprenticeship contract;
14 
b. Apprenticeable occupation refers to an occupation officially endorsed by a
15 
tripartite body and approved for apprenticeship by the Technical Education and
16 
Skills Development Authority (TESDA);
17 
c. Apprenticeship refers to a training within an enterprise involving a contract
18 
between an apprentice and an enterprise on an approved apprenticeable
19 
occupation;
20 
d. Apprenticeship contract refers to an agreement wherein an enterprise binds
21 
itself to train the apprentice who in turn accepts the terms of training for the
22 
recognized apprenticeable occupation. It also contains the rights, duties and
23 
responsibilities of each party;
24 
e. Apprenticeship fee refers to the fees being paid by the Enterprise participating
25 
in the apprenticeship program;
26 
f. Bipartite plant apprenticeship committee refers to a group established by the
27 
enterprise composed of representatives of labor and management responsible
28 
for monitoring program implementation, settling difference between
29 
management and apprentices;


1 
g. Board refers to the TESDA Board;
2 
h. Certificate of competency refers to a document issued by the TESDA to
3 
individuals who are assessed as competent in a cluster of related competencies;
4 
i. Certificate of TVETprogram registration refers to a document issued by the
5 
TESDA granting an authority to an enterprise to offer a program in an
6 
apprenticeable occupation;
7 
j. duster of competencies refers to a group of related competencies that, while
8 
it does not satisfy the requirements of a full qualification, still constitutes an
9 
employable package and can be awarded a Certificate of Competency;
10 
k. Competency assessment refers to the process of gathering and judging
11 
evidence in order to decide whether a person has achieved a standard of
12 
competency, recommending measures or effective program implementation;
13 
I. Competency standard refers to a written specification of the knowledge, skills,
14 
attitude and values required for the performance of a job, occupation or trade
15 
and the corresponding standard of performance required in the workplace;
16 
m. Duai training system refers to a delivery system of quality technical and
17 
vocational education which requires training to be carried out alternately in two
18 
venues: in school and in the production plant. In-school training provides the
19 
trainee with the theoretical foundation, basic training, guidance and human
20 
formation, while in-plant training develops the trainee's skills and proficiency in
21 
actual work conditions as it continues to inculcate personal discipline and work
22 
values;
23 
n. Enterprise refers to all participating establishments like group or association,
24 
industry, organization, government institution or civic group undertaking
25 
trainings in accordance with the provisions of this Act;
26 
o. Qualification refers to a package of competencies describing a particular
27 
function or job role existing in an economic sector covering the work activities
28 
required to undertake a particular job;


1 
p. Training pian refers to the specification for the apprenticeship program of an
2 
enterprise which describes all the learning experience a student undergoes
3 
generally including the competencies to be acquired within the program, the
4 
underpinning knowledge, theories and principles, 
and the assessment
5 
arrangement; and
6 
q. Unit of competency refers to an activity that 
comprises 
a manageable
7 
component of work described in terms of eiements, performance criteria, range
8 
of variables and evidence guide.
9 
SECTION 5. Qualifications of an Apprentice. — To qualify as an apprentice a
10 
person must:
11 
a. Be at ieast fifteen (15) 
years of age;
12 
b. Possess good moral character, vocational 
aptitude 
and capacity for
13 
apprenticeship as determined by the enterprise; and
14 
c. Have the ability 
to comprehend and 
foilow 
oral and written
15 
instructions.
16 
Trade, industry and labor organizations may recommend 
to 
TESDA
17 
appropriate educationai requirements for different occupations.
18 
SECTION 6. Aptitude Testing of Applicants. — Consistent with the minimum
19 
qualifications of an apprentice under Section 5 hereof, the bipartite plant
20 
apprenticeship committees shall have the primary responsibility of providing
21 
appropriate aptitude examinations in the selection of apprentices.
22 
SECTION 7. Training of Apprentices. — Only enterprises with programs
23 
registered with the TESDA may enter into apprenticeship contracts and train
24 
apprentices in approved apprenticeable occupations.
25 
SECTION 8. Apprenticeship Training Program Content and Delivery. — All
26 
qualifications with training reguiations promulgated by the Board are automatically
27 
classified as apprenticeable. To meet the immediate requirements of enterprises for
28 
skilied workers, the Board must approve new apprenticeable occupations endorsed


1 
by the appropriate Regional Technical Education and Skills Development Committee
2 
upon consultation with workers' groups and industry representatives.
3 
The apprenticeship program shall emphasize the need for theoretical
4 
instruction. The enterprise may seek partnership with a Technical-Vocational
5 
Education and Training (TVET) institution in its design and delivery.
6 
SECTION 9. Apprenticeship Period. — The apprenticeship period shall be based
7 
on the duration of training required in the training plan and on the complexity of the
8 
skills to be learned by the apprentices.
9 
SECTION 10. Apprenticeship Program Registration. — The registration of an
10 
apprenticeship program can be for a qualification, a cluster of competencies, or
11 
bundled qualifications as contained in the training regulations. A letter of application
12 
stating the intention, the certificate of undertaking, and the training plan shall be
13 
submitted to TESDA for approval. A Certificate of TVET Program Registration shall be
14 
issued to the enterprise to signify authorization for specific qualification or competency
15 
clusters.
16 
An apprenticeship program may be approved on a no-training regulations basis:
17 
Provided, That the applicant enterprise can show proof of the demand for such skill:
18 
Provided, further. That it shall not exceed twenty percent (20%) of the total number
19 
of regular employees. The TESDA shall provide technical assistance to applying and
20 
implementing enterprises to be able to comply with the provisions of this section.
21 
SECTION 11. Contents of the Apprenticeship Contract. — The apprenticeship
22 
contract must conform with the rules issued by the TESDA and shall include the
23 
following:
24 
a. Nature, syllabus, timetable, and purpose of training;
25 
b. Period of training, depending on the approved training regulations;
26 
c. Training allowances prescribed by industry subsectors through tripartite
27 
consultations which in no case shall start below seventy-five percent (75%) of
28 
the applicable minimum wage: Provided, however. That contributions to the


1 
training allowance by government agencies and/or non-governmental
2 
organizations shall be considered in computing the seventy-five percent (75%);
3 
d. Schedule of training allowance payment;
4 
e. Training hours;
5 
f. Process for the termination of apprenticeship; and
6 
g. General rights and obligations of both parties.
7 
SECTION 12. Signing of the Apprenticeship Contract. — Every
8 
apprenticeship contract shall be signed by the apprentice and the enterprise,
9 
recognized organization, association or group or their authorized representatives.
10 
An apprenticeship contract with a person under eighteen (18) years of age shall
11 
be signed by the parent or guardian of said person or if the latter is not available, by
12 
an authorized representative. The contract shall be binding during its lifetime, subject
13 
to the right of the apprentice to terminate the same after a month's notice.
14 
Every apprenticeship contract entered into under this Act shall be approved by
15 
the bipartite plant apprenticeship committee involving the firm owner and
16 
representatives of the firm workers. Copies of the apprenticeship contract shall be
17 
furnished to the firm owner and the apprentice.
18 
SECTION 13. Apprenticeship Models. — Enterprises with approved
19 
apprenticeship programs may choose from any of the following apprenticeship models
20 
which may use the Dual Training System approach:
21 
a. Apprenticeship involving a company and an identified training institution;
22 
b. Apprenticeship involving a group of companies and a training institution;
23 
c. Apprenticeship involving an industiy training center and a company or a group
24 
of companies; or
25 
d. Other schemes to be established by the TESDA in consultation with enterprise
26 
owners, labor and training institutions subject to the approval of the Board.


1 
SECTION 14. Apprenticeship Administration. — The Board shall be
2 
responsible for setting up the overall apprenticeship policy and standards. The TESDA
3 
Secretariat shall be responsible for apprenticeship administration, monitoring and
4 
evaluation of on and off-the-job training.
5 
SECTION 15. Investigation of Violation of Apprenticeship Contract — The
6 
Bipartite Plant Apprenticeship Committee, motu proprio or upon complaint of any
7 
interested party, shall have initial responsibility for settling differences arising out of
8 
apprenticeship contracts. In case it is not able to settle such differences, the TESDA
9 
Provincial Director shall investigate and submit a recommendation to the TESDA
10 
Regional Director who shall render a decision pursuant to pertinent rules and
11 
regulations as may be prescribed by the Board.
12 
SECTION 16. Appeal to the TESDA Director General. — The decision of the
13 
TESDA Regional Director may be appealed by any aggrieved person to the TESDA
14 
Director General within five (5) days from receipt of the decision. The decision of the
15 
TESDA Director General shall be final and executory.
16 
SECTION 17. Termination of Apprenticeship. — Valid causes to terminate the
17 
apprenticeship contract:
18 
a. By the enterprise:
19 
1. Habitual absenteeism in on-the-job training and related theoretical
20 
instructions activities;
21 
2. Willful disobedience of company rules or insubordination of lawful order
22 
of a superior;
23 
3. Poor physical condition, prolonged illness or permanent disability which
24 
incapacitates the apprentice from working;
25 
4. Theft or malicious destruction of company property or equipment;
26 
5. Inefficiency, or poor performance on the job or in the classroom for a
27 
prolonged period despite warnings duly given to the apprentice; and


1 
6. Engaging in violence or other forms of misconduct inside the enterprise's
2 
premises.
3 
b. By the apprentice:
4 
1. Substandard or harmful working condition within the enterprise's
5 
premises;
6 
2, Repeated violations by the enterprise of the terms of the
7 
apprenticeship agreement;
8 
3. Cruel and inhuman treatment;
9 
4. Personal problem which in the opinion of the apprentice shall prevent
10 
the satisfactory performance of the job by the apprentice; and
11 
5. Bad health and continuing illness.
12 
SEC. 18. Rules and Procedure on the Termination of the Apprenticeship. —
13 
a. Apprenticeship Committee Level
14 
1. The enterprise or apprentice interested in terminating the contract may
15 
do so by notifying first the Bipartite Plant Apprenticeship Committee.
16 
2. The Committee confers with both parties and mediates the differences
17 
between them.
18 
3. If mediation or settlement is not possible, the Committee advises the
19 
complainants to apply for the termination at the Regional Office
20 
concerned.
21 
b. Regional Level
22 
1. The complainant verbally presents the case to the TESDA Regional
23 
Office. If the complaint merits consideration, the complainant is made
24 
to duly accomplish an Application for Termination of Apprenticeship
25 
form.


1 
2. The concerned unit or division of the TESDA Regional Office verifies the
2 
veracity and validity of the claim within five (5) days from its receipt by:
3 
i. Calling both the enterprise and the apprentice for a conference;
4 
or
5 
ii. Sending a representative to the enterprise for that purpose
6 
3. In case a ground for approval exists:
7 
i. The investigating officer (field representative) shall initiate the
8 
application for termination;
9 
ii. The chief of the concerned unit or division of the TESDA
10 
Regional Office shall verify the same;
11 
iii. The application for termination shall immediately be forwarded to
12 
the Regional Director for appropriate action, after which a copy
13 
of the acted upon application shall be furnished the applicant and
14 
the second party. This process shall be completed within three
15 
(3) days from receipt of the document by the office of the
16 
concerned Regional Director; and
17 
iv. A copy of each approved application shall be furnished to then
18 
concerned office of the TESDA.
19 
c. Agency Level
20 
1. If either of the parties is not satisfied with the decision of the Regional
21 
Director the case may be appealed, within the reglementary period of
22 
five (5) days from receipt of the document to the TESDA Director-
23 
General whose decision shall be final and unappealable.
24 
SECTION 19. Competency Assessment and Certification. — The apprentices
25 
shall, within the apprenticeship period, undergo competency assessment for
26 
qualifications to the training regulations. A national certificate shall be issued to all
27 
those who demonstrated achievement of the competency standards.


1 
SECTION 20. Training Certificate. - - A training certificate shall be issued by the
2 
authorized enterprise to signify completion of the apprenticeship program in
3 
accordance with the approved training de r^gn. The certificate shall contain a list of the
4 
units of competency acquired and shah be comparable to completion of a training
5 
program in a TVET institution.
6 
SECTION 21. Compuisory Apprenticeship. — When the national security or
7 
particular requirements of economic development so demand, the President of the
8 
Republic of the Philippines shall require compulsory training of apprentices in certain
9 
trades, occupations, jobs or employment levels where shortage of trained manpower
10 
is deemed critical as determined by the Board.
11 
SECTION 22. Incentives to Enterprise. — An additional deduction from the
12 
gross income of one-half (1/2) of the labor training expenses incurred from
13 
developing the productivity and efficiency of apprentices shall be granted to the
14 
person or enterprise organizing an apprenticeship program: Provided, That said
15 
employer shall be exempt from the payment of the apprenticeship fee and that such
16 
program shall be recognized by the TESDA: Provided, further,
17 
That such deduction shall not exceed ten percent (10%) of the training allowance
18 
of the apprentices: Provided, fmaiiy. That the enterprise that wishes to avail of this
19 
incentive shall pay its apprentices the minimum wage. Micro- cottage and small
20 
enterprises with less than one hundred (100) employees shall be exempt from paying
21 
the apprenticeship fee.
22 
SECTION 23. System of Equivaiency. — Apprenticeship graduates shall be
23 
awarded equivalent unit credits in the formal system of education that can be used in
24 
pursuing tertiary degree courses subject to the integrated policies and guidelines on
25 
equivalency and Adult Education Acceleration Program of the
26 
TESDA, the Commission on Higher Education and the Department of
27 
Education.
28 
SECTION 24. Exemption from Probationary Empioyment — Certified
29 
apprentices shall be exempted from probationary employment: Provided, That they
30 
are employed in occupations requiring the same skills and qualifications standards
10


1 
which they shall have obtained upon passing the competency assessment as provided
2 
under Section 19 of this Act.
3 
SECTION 25. Insurance for Apprentices. — Every participating enterprise only
4 
as defined under the term enterprise as provided in this Act shall provide a disability
5 
or accident insurance policy from an accredited insurance company in favor of the
6 
trainee or apprentice during the apprenticeship period.
7 
SECTION 26. Penalty Clause. — Enterprises found offering unregistered
8 
apprenticeship programs shall be subjected to program closure proceedings without
9 
prejudice to the filing of administrative, criminal, or civil liabilities. The Board may file
10 
the necessary civil or criminal case as may be deemed reasonable and appropriate
11 
and after the deliberation of the Board pursuant to this Act for any of the following
12 
causes:
13 
a. Fraud or deceit committed in connection with the application for the opening
14 
of apprenticeship programs; and
15 
b. Failure to comply with conditions or obligations prescribed under this Act or its
16 
implementing rules and regulations.
17 
Any violation of the provisions of this Act or its implementing rules and
18 
regulations shall be punished with a fine of not less than One thousand pesos
19 
(P1,000.00) not more than Ten thousand pesos (P10,000.00).
20 
SECTION 27. Abolition of the Learnership Program. — To rationalize and ensure
21 
the effective implementation of the Revised National Apprenticeship Program, the
22 
Learnership Program is hereby abolished.
23 
SECTION 28. Transitory Provision. — All existing apprenticeship programs and
24 
training regulations shall be valid until after the TESDA has conducted an assessment
25 
and revalidation for consistency with the provisions of this Act and its implementing
26 
rules and regulations.
11


1 
SECTION 29. Implementing Rules.:// id Regulations. — The Board shall issue the
2 
implementing rules and regulations within ninety (90) days after the effectivity of this
3 
Act.
4 
SECTION 30. Separability Cause. ■■■■ If any provision of this Act is held invalid
5 
or unconstitutional, the same shall not affect the validity and effectivity of the other
6 
provisions hereof.
7 
SECTION 31. Repealing Cause. — Chapters I and II of Title II, Book II of
8 
Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the
9 
Philippines are hereby repealed. Executive Order No. Ill series of 1986, R.A. No.
10 
7796 or the "TESDA Act of 1994" and all other laws, presidential
11 
decrees, issuances, executive orders, letters of instruction, and rules and
12 
regulations contrary to or inconsistent with the provisions of this Act are hereby
13 
repealed or modified accordingly.
14 
SECTION 32. Effectivity. — This Act shall take effect fifteen (15) days after its
15 
publication in the Official Gazette ox in a newspaper of general circulation.
16
Approved,
12