Republic of the Philippines RECEIVED A
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HOUSE OF REPRESENTATIVES

Quezon City, Philippines IME. Fa

EIGTHEENTH CONGRESS :
First Regular Session

HOUSE BILL NO. 2045

___ INTRODUCED BY REPRESENTATIVE ALFRED VARGAS.

EXPLANATORY NOTE

President Rodrigo Roa Duterte recently signed the Executive Order 5 which
adopts the 5 year long term vision entitled AmBisyanNatin 2040 as a guide for
development planning, The AmBisyonNatin 2040 initiated by the National Economic
and Development Authority, represents the aspirations of the Filipino people and
describes the kind of life that people want to live, as well as how the country will
look like by 2040.

According to the studies supporting the AmBisyonNatin 2040, 79% of
Filipinos aspire for a simple and comfortable life which includes having
opportunities for good quality employment without leaving the country
However. 413.5% of Filipinos are not fully confident that they can reach their

One of the challenges hindering the country from achieving the vision Is
unemployment. As of January 2017. the Philippine Statistics Authority recorded the
Philippine unemployment rate at 6.6 percent. While there are thousands of lobs
available for the Filipinos, many of them do not possess the required qualifications
for these opportunities

This bill seeks address the job-skill mismatch in the country and reform the
existing national apprenticeship program by providing the youth with the
appropriate skills and access 10 employment. A worker who is at least 15 years of
age is qualified to be an apprentice. The proposed apprenticeship law recognizes
the advantages of work-based training which allows our young workers to learn
from experienced workers

The proposal also sets ie duration of the training according to the
complexity of the skills to be learned by the apprentices. thus expanding. the
maximum training period of six months under the existing apprenticeship
programs.


The proposed apprenticeship program provides young apprentices with the
Opportunity to earn while they learn as they are entitled to a training allowance
which should not be below 75%.

The bill also introduces a provision on the issuance of training certificates to
apprentices who have completed the apprenticeship program comparable to the
completion of a training program in a Technical-Vocational Education and Training
institution, and the award of equivalent unit credits in the formal system of
education, The apprentice may use the National Certificate should he desire to
pursue tertiary education.

As for the participating enterprises, they are entitled to get an additional
deduction from the taxable income equivalent to one half of the value of training
expenses incurred for developing the productivity and efficiency of apprentices.

This initiative will not only increase the employability of the youth but
will also provide Philippine enterprises with a mechanism to ensure a
continuous supply of skilled workers, Thus, the immediate passage of this bill is earnestly
sought.

Rbf, ALFRED VARGAS
Fifth District, Quezon City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGTHEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2045

TATIVE ALFRED VARGAS

INTRODUCED BY REPRES

AN ACT
PROVIDING FOR A
PROGRAM, CLARIFYING

ATIONAL — APPRENTICESHIP
STANDARDS FOR TRAINING AND
ENGAGEMENT OF APPRENTICES AND ACCREDITATION OF
APPRENTICESHIP PROGRAMS, REPEALING FOR THE PURPOSE CHAPTERS
1 AND Il OF TITLE Hl, BOOK Il OF PRESIDENTIAL DECREE NO. 442, AS
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES, AND FOR OTHER PURPOSES

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

SE
Training

Short Title. - This Act shall be known as the "Apprenticeship

SEC. 2. Declaration of Policy. - it is hereby declared the policy of the
State to establish an apprenticeship program that will ensure the availability of
qualified human resource in critical, in-demand and hard-to-fill occupations through
the participation of employers, workers and government agencies and non-
government agencies.

See, 3. Statement of Objectives. - This Act aims to

(a) Help meet the demand of the economy for best-fit. competitive and trained
human resource;

(b) Have a national apprenticeship program that includes on and off-
the-job training components with tripartite involvement;

(©) Promote full employment of youth and young workers through training
and development

(4) Enhance existing standards for the training, development and
employability of apprentices;


(e)

f)

(g)

Recognize the indispensable role of private enterprises in training and
development:

Strengthen advocacy of the apprenticeship training program to
encourage enterprise and young workers’ participation:

Increase productivity and competitiveness of enterprises. by ensuring
availability of skilled human resource: and

Harness Corporate Social Responsibility (CSR) towards the
development of skilled human resource to meet the requirements of
the industries.

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

(a)

(b)

Apprentice refers to a person undergoing taining for an approved
apprenticeable occupation during an established period assured. by an
apprenticeship contract

Apprenticeable Occupation refers to an occupation specified by an
industry and approved for apprenticeship by TESDA. subject. to the
criteria set under Section 9 hereof

Apprenticeship means training within an enterprise with
compulsory related theoretical instructions involving a contract between
an apprentice and an enterprise on an. approved apprenticeable
occupation

Apprenticeship Contract means an agreement wherein an
Enterprise binds itself to train the apprentice who in turn accepts the
terms of training for the recognized apprenticeable occupation. The
Apprenticeship contract also contains the rights, duties” and
responsibilities of each party.

Authority refers 10 the Technical Education and Skills
Development Authority or TESDA.

Bipartite | Enterprise Apprenticeship Committee refers to a
group within the enterprise composed of the labor and. the

fanagement responsible for monitoring the program
Implementation. settling differences between management and
apprentices and recommending measures for effective

implementation,

Board refers to the TESDA Board

Certificate of Competency means a document issued by the


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Authority to individuals who were assessed as competent in a single
unit or cluster of related units of competency

Certificate of Apprenticeship Program Registration refers to a
document issued by TESDA granting an authority to an enterprise
to offer a program in an apprenticeable occupation

Cluster of Competencies refers to a group of competencies as
defined in the Training Regulations that corresponds to a
Certificate of Competency. A cluster of units of competency
includes the basic, common, and core competency that can be
offered as registered program

Competency Assessment refers to the process of determining the
competency of a person undergoing apprenticeship based on
established standards of competency

Competency Standard refers to a written specification of the
knowledge, skills, attitude and values required For the performance
of a Job, occupation or trade and the corresponding standard of
performance required for those in the workplace.

Enterprise refers to a participating establishment or organization
or the Government that directly engages an apprentice based on an
approved Enterprise Apprenticeship Program

industry Board/Body refers to industry organizations recognized
by the Authority according to set guidelines.

Methods of Competency Assessment refers to the different
means/ways of gatherings the required evidences and making
judgment whether the competency has been achieved.

National Certificate refers to a document issued to individuals
who have demonstrated achievement of all the required units of
competency of national qualification defined under the
promulgated Training Regulations.

On-the-job Training refers to a course of study designed to
provide practical experiences applying previously studied theories
and aims to provide students an opportunity to understand
economic, social and cultural realities by allowing them to interact
and relate with the community

Qualification refers to a formal certification that a Person has


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successfully achieved learning outcomes relevant to the identified
academic. industry or community requirements. A qualification
confers official recognition of value in the labor market and in
further education and training,

Training Plan refers to an Enterprise Apprenticeship Program
which described all the learning experience an apprentice must
undergo, generally including the competencies to be acquired within
the program, the underpinning knowledge and skills, theories and
Principles and the methods of competency assessment

Training Regulation refers to the package of competency
standard, national qualification, training standards, and assessment

and certification arrangements. These spell out the parameters for
ensuring the quality in delivery of a Technical-Vocational Education and
Training (TVET) program. They also serve as the bases for competency
assessment and certification, registration and delivery of TVET
programs. and development of curriculum and assessment instruments,

Unit of Competency refers to an activity that comprises a
manageable component of work. In competency standards, cach unit
of competency is described in terms of elements, performance criteria,
range of variables and evidence guide

SEC. 5. Apprenticeable Occupation. - An apprenticeable occupation is one
which is specified by the industry Board/Body, approved by the TESDA Board and

which must

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(b)

(c]

Involve skills that are customarily learned through a structured,
systematic program of on-the-lob supervised learning and involves the
Progressive attainment of manual, mechanical or technical skills and
knowledge which in accordance with the industry standard for the
occupation, would require the completion of at least six (6) months of
on-the-lob and off-the job learning);

Be clearly identified and commonly recognized throughout an
industry;

Require related theoretical instruction to supplement the on-the-lob
leaning

Provided, however, that apprenticeship does not include On-The-Job
Training (OPT) required by education and training Institutions as part of their

curriculum,

SEC. 6. Apprenticeship Period. - The apprenticeship period shall be based


on the duration of training required in the Training Plan and on the complexity of
the skills to be learmed by the apprentices, provided, that the period shall not be less
than six months.

SEC. 7. Apprenticeship Program Registration. -The Apprenticeship
Program shall be submitted for approval to, and registered with, TESDA. If may be

(a) For a qualification
(b) For cluster of competencies: or

(c) For a bundled set of qualifications as contained in the Training
Regulations as applicable, or based on industry specific standards

The application for registration shall include. among others, the Certificate of
Undertaking, the Training Plan and the ration of the Bipartite Enterprise
Apprenticeship Committee.

A Centficate of Apprenticeship Program Registration shall be issued to the
enterprise to signify authorization for specific qualification or competency clusters

Prior to registration, an enterprise shall execute an undertaking to:

(a) Implement the Apprenticeship Program with fairness, honesty and
good faith

(b) Ensure that it will not employ any practice that will violate, impair
or abuse the rights of apprentices, and

(Submit material information on its Apprenticeship Program,
including regulatory compliance and apprenticeship contracts, to an
industry association which shall make such information available
to the public

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

SEC. 8. Bipartite Enterprise Apprenticeship Committee. - There shall be
established In even enterprise applying for an Apprenticeship Program. a Bipartite
Enterprise Apprenticeship Committee composed of labor and management, The
Committee shall be responsible for monitoring the program implementation, settling
differences between management and apprentices and recommending measures for
effective program implementation

For unionized enterprises, the employees’ representative shall come from the
existing labor unions, while employees’ representatives In non-unionized enterprises
shall be elected by the employces of the enterprise


SEC. 9. Apprenticeship Training Program Content and Delivery. - All
existing qualifications with Training Regulations (“TRs) shall undergo mandatory
review by the TESDA Board before they are reclassified as apprenticeable. All Training
Regulations shall be based on set criteria, which must include, but not be limited to (a)
priority needs of the industry/sector, (b) nationwide application in terms of public
interest/welfare: (c) employment generation and investment opportunities; and (d)
need for standardization and certification.

To meet the immediate requirements of enterprises for skilled workers
the TESDA Board may approve apprenticeable occupations endorsed by the
Industry board/body upon consultation with workers’ groups and. industry
representatives.

The apprenticeship program shall emphasize the need for theoretical
instruction. The enterprise may seek partnership with a recognized education and
training institution in the design and delivery of theoretical instruction

SEC. 10. Training of Apprentices. - Only enterprises with Apprenticeship
Programs registered with TESDA can enter Into apprenticeship contracts and train
apprentices in approved apprenticeable occupations

‘The enterprises shall be responsible for the following:

(a) Ensure that the necessary abilities and knowledge for the
apprentice to achieve the purpose of the training are imparted to the
apprentice and shall provide such training systematically in accordance
with an approved Training Plan:

(6) Apia-ointment the training officer to implement the Training Plan;

() Make available, free of charge, the consumable materials and basic
hand tools and equipment necessary for the training:

(4) Allow the apprentice to attend in-school training and to sit for the
competency assessment

(©) Require the apprentice to keep an update report book and inspect
such books

(0 Ensure that the apprentice is encouraged to develop personality

(g) Ensure that the apprentice is protected from physical or moral
danger, and

(i) Entrust to the apprentice such fobs as are related to the purpose of

the training and are commensurate with the apprentice's
capable


SEC. 11. Qualifications of an Apprentice. to qualify as an apprentice, a
person shall;

(a) Be at least fifteen (15) years of age, provided, that an apprentice
below eighteen (1.8) years of age shall not be exposed to dangerous or
hazardous occupations.

(b) Possess good moral character, vocational aptitude and capacity for
apprenticeship as determined by the enterprise: and

() Possess 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

SEC. 12. Aptitude Testing of Applicants. - Any person to be engaged as
apprentice shall undergo the appropriate aptitude examinations which shall be
administered by the Bipartite Enterprise Apprenticeship Committee

SEC- 13. Signing of Apprenticeship Contract. - Every apprenticeship
contract shall be signed by the enterprise owner or his/her authorized
representative and the apprentice

An apprenticeship contract with an apprentice of below eighteen (18)
years old shall be signed in his/her behalf by his/her parent or guardian. subject to
the right of the apprentice to terminate the same after thirty (30) days" prior notice.

Every apprenticeship contract entered into under this Section shall be
approved by the Bipartite Enterprise Apprenticeship Committee and copies thereof
shall be furnished the management and the apprentice

No enterprise shall be allowed to engage apprentices more than twenty
percent (20%) of the total number of Its regular employees, provided, that the
TESDA Board may, upon recommendation of the industry Board/Body may Increase
the cap, If necessary; provided further, that any person who shall be engaged as
an apprentice in excess of the threshold herein provided shall be considered as a
regular employee of the enterprise concerned.

SEC. 14. Contents of Apprenticeship Contract - The Apprenticeship
contract shall conform with the rules issued by TESDA and shall include:

(a) | Competencies that will be acquired within the apprenticeship program
based on the Training Plan and the method of competency
assessment;

(b) The period of training depending on the approved ‘Training Plan;


(c) Training allowance. which is no case shall be below seventy-five percent
(75%) of the applicable minimum wage, provided, that the allowance
shall be increased in an amount to be set by the TESDA Board upon
recommendation of the recognized industry Board/Body based on
acquired competency of the apprentice: provided further, that
contributions to the training allowance by government agencies and/or
non-governmental organizations shall be considered in computing the
said seventy-five percent (75%);

(d) A schedule of training allowance payment and

(c) An undertaking from the enterprise that it shall provide a
disability and/or accident insurance policy in favor of the
apprentice during the apprenticeship period, and

(8) The general rights and obligations of both parties, grounds for
termination of the contract and the process for the termination of the
apprenticeship contract.

‘The approved training plan shall be attached in the contract

SEC. 15. Apprenticeship Schemes. - Enterprises with approved
apprenticeship program may choose from any of the following apprenticeship
schemes

(a) Involving a company or group of companies and an identified
education and training institution,

(b) Conducted entirely by a company with demonstrated capacity to
conduct theoretical instruction;

(c) Other schemes to be established by the TESDA in consultation with
enterprise management. labor and training institutions and subject
the approval of the TESDA Hoard;

SEC. 16. Competency Assessment and Certification. - The apprentice
shall undergo competency assessment for qualifications within the
apprenticeship period and shall be issued the appropriate competency certificate after
he/she has demonstrated achievement of the competency standards

SEC. 17. Training Certificate and System of Equivalency. - A Training
Certificate shall be issued by the authorized enterprise to signify completion of the
apprenticeship program in accordance with the approved training program. The
Certificate shall contain a list of the units of competency acquired and shall be
comparable to completion of a training program in a Technical-Vocational Education


and training institution,

Apprenticeship graduates shall likewise 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, standards and guidelines on equivalency
and adult education acceleration program of the TESDA, Commission on
Higher Education (CUED) and the Department of Education (DepEd)

SEC. 18. Apprenticeship Administration. - TESDA shall be responsible
for the implementation of the apprenticeship program as provided for in this Act.

For this purpose, TESDA shall conduct a regular compliance audit of enterprises
with registered apprenticeship program.

The TESDA Board shall set up the overall apprenticeship policy and
standards,

The TESDA Secretariat shall be responsible for apprenticeship
administration, monitoring and evaluation of the training

There shall be TESDA recognized Industry Boards/Bodies which shall
determine and recommend to the TESDA Board whether an occupation is
apprenticeable and perform such other function as may be necessary.

SEC. 19. Violation and Termination of Apprenticeship Contract - The
Bipartite Enterprise Apprenticeship Committee shall have authority to settle
differences arising out of apprenticeship contracts upon complaints of any
interested person or upon its own initiative, In the event that the Bipartite
Enterprise Apprenticeship Committee shall be unable 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

The decision of the TESDA Secretariat or its authorized representative
may be appealed by any aggrieved person to the TESDA Director General within
five (5) days from the receipt of the decision. The decision of the TESDA Director
General shall be final and executory

The rules and procedures on the termination of Apprenticeship Contract
shall be promulgated by the TESDA Board.

The Apprenticeship Contract shall be terminated on any of the grounds
stipulated thereunder, subject to the rules on due process. The Notice of
Termination shall be flied with the Bipartite Enterprise Apprenticeship
Commitiee for conciliation and settlement of issues. In the absence of settlement
or agreement, the same shall be elevated to the TESDA Secretariat or its
authorized representative pursuant to the pertinent rules and regulations of the
TESDA Board


SEC. 20. Violation of this Act. - Any violation of the provisions of this Act
shall be under the jurisdiction of TESDA through its regional offices. If the
violation constitutes deficiency of labor standards and other labors laws, TESDA
through its regional offices, shall endorse the same to the appropriate regional
offices of the Department of Labor and Employment (DOLE)

SEC. 21, Violation of Labor Standards and Other Labor-Related Laws.
- Any violation of general labor standards, occupational safety and health
standards and other labor-related laws shall be under the jurisdiction of the
DOLE through its regional offices, pursuant to Article 128 of the Labor Code of
the Philippines, as amended

SEC, 22. Compulsory Apprenticeship - When the national security of
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, lobs or employment levels where shortage of trained human
resources deemed critical as recommended by the TESDA Hoard.

°. 23. Incentives. - An additional deduction from the taxable Income
equivalent to one-half (1/2) of the value of training expenses Incurred for
developing the productivity and efficiency of apprentices program shall be granted
to the person or enterprise organizing an apprenticeship program; provided. that
such program is 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 avail of this incentive shall pay the apprentices
Training Allowance equivalent to the applicable minimum wage.

SEC, 24. Exemption from Probationary Employment. - Certified
apprentices shall Iw exempted From probationary employment in the event that they
are employed in occupations requiring the same skills and qualifications standards
which they shall have obtained upon passing the competency assessment as provided
under Section 16 of this Act_

SEC. 25. Penalty Clause. The TESDA Secretariat shall have the power to
initiate program closure proceedings of enterprises found offering unregistered
apprenticeship programs without prejudice to the filing of administrative. criminal
or civil liabilities, which may include any of the following anises,

(a) Fraud or deceit committed in connection with the application for
the opening of apprenticeship programs; and

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


SEC, 26. Implementing Rules and Regulations. - The TESDA
Chairperson shall, after consultation with the National Tripartite industrial Peace
Council (Nil PC) and other relevant stakeholders. issue the Implementing rules and
regulations within ninety [90) days after the effectivity of this Act_

SEC. 27. Transitory Provision. - All existing apprenticeship programs and
Training regulations shall be valid until after the TESDA has conducted an assessment
and revalidation for consistency with the provisions of this Act and its implementing
rules and regulations.

SEC213, Sunset Provision. - Four (4) years after the effectivity of this Act. the
TESDA Road shall conduct a review of its Implementation and submit a report to
Congress within thirty (30) days after the conclusion of the review

SEC. 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.

SEC 30. Repealing Clause. - Chapter I (Apprentices) and Chapter Il
(Learners), Title Il, Book Il and other pertinent provisions of Presidential decree 442,
or the Labor Code of the Philippines, as amended, Executive Order No. 1111, Series of
1986, RA7796 or the TESDA Act of 1994 and all other laws, decrees, executive orders
and rules and regulations contrary to or in consistent with the provisions of this Act
are hereby repealed or modified accordingly

SEC. 31, Effectivity. - This Act shall take effect afier fifteen (15) days
from the date of its full and complete publication in the Official Gazette or In two
(2) newspapers of general circulations

Approved,