OF @PRESENTATES

Republic of the Philippines
HOUSE OF REPRESENTATI
Quezon City, Metro Manila

SEVENTEENTH CONGRES:

First Regular Session
REGISTRATION UNIT

House Bill‘No. 353 BILLS AND INDEX SERVICE

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay - Villar

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

job and skill.

The government recognizes the importance of apprenticeship program 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, rem

s 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 earnestly sought.

boncecs 0. Valle
EMMELINE Y. AGLIPAY - VILLAR
Representative, DIWA Party-list

Page 1 of 10


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No,_ 393

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay — Villar

AN ACT
PROVIDING FOR A REVISED APPRENTICESHIP PROGRAM REPEALING FOR
‘THE PURPOSE CHAPTERS I AND II OF TITLE Il OF PRESIDENTIAL DECREE
NO, 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES

Be it enacted by the Senate and House of Represemtatives of the Republic of the Philippines in Congress
assembled:

SECTION 1._Short Title. - This Act shall be known as the "Revised Apprenticeship
Program Act”.

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State ta."
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 workers, enterprises, government agencies, and non-governmental
organizations concerned.

SECTION 3. Statement of Objectives. - This Act aims to:

a. Help meet the demand of the economy for trained human resource;

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;

€. Recognize the indispensable role of private enterprises in the training and
development of human resource;

f, Strengthen the advocacy on the apprenticeship training program to encourage the
participation of enterprises and young workers;

g. Increase productivity and competitiveness of enterprises by ensuring the
availability of skilled human resource; and

h, Harness corporate social responsibility towards the development of skilled
manpower to meet the requirements of industries.

SECTION 4. Definition of Terms. - As used in this Act:
a. Apprentice refers to a person undergoing training for an approved

Page 2 of 10


apprenticeable occupation during an established period governed by an
apprenticeship contract;

b. Apprenticeship refers to a training within an enterprise involving a contract
between an apprentice and an enterprise on an approved apprenticeable occupation;

c. Apprenticeable occupation refers to an occupation officially endorsed by a
tripartite body and approved for apprenticeship by the Technical Education and
Skills Development Authority (TESDA),

4. Apprenticeship contract refers to an agreement wherein an enterprise binds itself to
train the apprentice who in turn accepts the terms of training for the recognized
apprenticeable occupation. It also contains the rights, duties and responsibilities of
each party;

e. Bipartite plant apprenticeship committee refers to a group established by the
enterprise composed of representatives of labor and management responsible
for monitoring program implementation, settling differences between
management and apprentices, and

f Strengthen the advocacy on the apprenticeship training program to encourage
the participation of enterprises and young workers;

g Increase productivity and competitiveness of enterprises by ensuring the
availability of skilled human resource; and

hh. Harness corporate social responsibility towards the development of skilled
manpower to meet the requirements of industries.

SECTION4. Definition of Terms. - Asusedinthis Act:

a. Apprentice refers to a pewson undergoing training for an approved apprenticeable
occupation during an established period governed by an apprenticeship contract;

b. Apprenticeship refers to a training within an enterprise involving a contract
between an apprentice and an enterprise on an approved apprenticeable
occupation;

c. Apprenticeable occupation refers to an occupation officially endorse by a
tripartite body and approved for apprenticeship by the Technical Education and
Skills Development Authority (TESDA);

d. Apprenticeship contract refers to an agreement wherein an enterprise binds
itself to train the apprentice who in turn accepts the terms of training for the
recognized apprenticeable occupation. It also contains the rights, duties and
responsibilities of each party;

©. Bipartite plant apprenticeship committee refers to a group established by
the enterprise composed of representatives of labor and management responsible
for monitoring program implementation, settling differences. between
management and apprentices, and recommending measures for effective program
implementation;

£ Certificate of Competency refers to a document issued by the TESDA to
individuals who are assessed as competent in a cluster of related
competencies:

Page 3 of 10


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

h. Cluster of competencies refers to a group of related competencies that, while
it does not satisfy the requirements of a full qualification, still constitutes an
employable package and can be awarded a Certificate of Competency:

i Competency assessment refers to the process of gathering and judging
evidence in order to decide whether a person has achieved a standard of
competency; recommending measures or effective program implementation;

j. 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 standarl of performance required in the workplace;

k. Dual Training System refers to a delivery system of quality technical and
vocational education which requires training to be carried out alternately in two
venues: in school and in the production plant. In- school training provides the
trainee tlle theoretical foundation, basic training, guidance and human
formation. while in-plant training develops the trainee's skills and proficiency
in actual work conditions as it continues to inculcate personal discipline and
work values;

|. Enterprise refers to a participating establishment that directly engages an
apprentice based on an approved apprenticeship program;

m. Qualification refers to a package of competencies describing a particular
function or job role existing in an economic sector covering the work activities
required to undertake a particular job;

n. Training plan refers to the specification for the apprenticeship program of an
enterprise which describes all the karning experience a student undergoes
generally including the competencies to be acquired within the program, the
underpinning knowledge, theories and principles, and the assessment arrangement;

©. Unit of Competency refers to an activity that comprises a manageable component of
work described in terms of elements. performance criteria, range of variables and
evidence guide.

SECTIONS. Qualifications ofan Apprentice. -Toqualify asanapprentice, a
person must:

a. Beat least fifteen (15) years of age:

b. Possess good moral character, vocational aptitude and capacity for
apprenticeship as determined by the enterprise; and

Cc. Have the ability to comprehend and follow oral and written instructions.

Trade, industry and labor organizations may recommend to TESDA appropriate

Page 4 of 10


educational requirements for different occupations.

SECTION 6. Aptitude Testing of Applicants. - Consistent with the minimum
qualifications of an apprentice under Section 5 hereof, the bipartite plant apprentizestip
committees shall have the primary responsibilty of providing appropriate aptitude
examinations inthe selection of apprentices.

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

SECTION 8. Apprenticeship Training Program Content and Delivery.
— All qualifications with trairing regulations promukated by the TESDA Board are
automatically classified as apprerticeable. To meet the immediate requirements of
enterprises for skilled workers, the TESDA Board must approve new apprenticeable
occupais endorsed by the appropriate Regional Technical Education and Skills
Development Committee 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 Technical-Vocational Education and Training
(TVET) institution in its design and delivery

SECTION 9. 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 learned by the apprentices

SEC. 10. Apprenticeship Program Registration. ~ The registration of an
apprenticeship program can be for a qualification, a cluster of competencies, or bundled
qualifications as contained in the training regulations. A letter of application stating the
intention, 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.

An apprenticeship program may be approved on a no-training regulations basis
provided that the applicant enterprise can show proof of the demand for such skill

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

SECTION 1. Contents of the Apprenticeship Contract. — The

apprenticeship contract must conform with the rues ssued by the TESDA and shall
include the following:

a. Nature, syllabus, timetable, and purpose of training:

b, Period of training, depending on the approved training regulations:

¢, 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: Provided, however, That contributions to the

Page 5 of 10


training allowance by government agencies and/or non-governmental
organizations shall be considered in computing the seventy-five percent (75%):
d. Schedule of training allowance payment;
e. Training hours;
f. Process for the termination of apprenticeship, and
g. General rights and obligations of both parties

SECTION 2. Signing ofthe Apprenticeship Contract. Every apprenticeship
contract shall be signed by the apprentice and the enterprise, recognized orgarvation,
association or group or their authoized representatives.

An apprenticeship contract with a person under eighteen (18) years of age shall be
signed by the parent or guardian of said person or, if the latter is not available by an
authorized representative. The contract 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 Act shall be approved by the
bipartite plant apprenticeship committee involving the firm owner and representatives
of the firm workers. Copies of the apprenticeship contract shall be furnished the firm owner
and the apprentice.

SECTION 13. Apprenticeship Models. — Enterprises with approved
apprenticestip programs may choose from any of the following apprenticeship models
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 arid a training institution;

c. Apprenticeship involving an industry training center and a company or a group
of companies; or

4d. Other schemes to be established by the TESDA in consultation with enterprise
owners, labor and training institutions subject to the approval of the TESDA
Board.

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

SECTION 15. Investigation of Violation of Apprenticeship Contract. —
The Bipartite Plant Apprenticeship Committee, motu proprio or upon complaint of any
interested party, shall have initial responsibility for settling differences arising out of
apprenticeship contracts. In case it is not able to settle such differences, the TESDA
Provincial Director shall investigate and submit a recommendation to the TESDA Regional
Director who shall render a decision pursuant to pertinent ribs and regulations as may be
prescribed by the TESDA Board.

SECTION 16. Appeal to the TESDA Director General. - The decision of
the TESDA Regional Director may be appealed by any aggrieved person to the
TESDA Director General within five (5) days from receipt of the decsion. The decision
of the TESDA Director General shall be final andexecutory.

Page 6 of 10


SECTION 17. Termination of Apprenticeship. -
Valid causes to terminate the apprenticeship contract

a. By the enterprise:

1, Habitual absenteeism in on-the-job training and related theoretical instructions
activities:

2. Willful disobedience of company rules or insubordination of lawful order of a
superior,

3. Poor physical condition, prolonged illness. or permanent disability which
incapacitates the apprentice from working;

4. Theft or malicious destruction of company property or equipment;

Inefficiency, or poor performance on the job or in the classroom for a

prolonged period despite warnings duly given to the apprentice: and

6. Engaging in violence or other forms of misconduct inside the enterprise's
premises.

b. By the apprentice:

L Substandard or harmful working condtion within the enterprise's premises:

2, Repeated violations by the enterprise of the terms of the apprenticeship
agreement;

3. Cruel and inhuman treatment;

4. Personal problem which in the opinion of the apprentice shall prevent the
satisfactory performance of the job by the apprentice; and

5. Bad health and continuing illness,

SECTION 18, Rules and Procedure on the Termination of the
Apprenticeship -

a.Appremticeship Committee Level

1. The enterprise or apprentice interested in terminating the contract may do so by
notifying first the Bipartite Plant Apprenticeship Committee.

2. The Committee confers with both paries and mediates the differences between
them.

3. If mediation or settlement is not possible, the Committee advises the complainants to
apply for the termination at the Regional Office concemed.

b. Regional Level

1. The complainant verbally presents the case to the TESOA Regional Office. If
the complaint merits consideration, the complainant is made to duly
accomplish an Application for Termination of Apprenticeship form

2. The concerned unit or division of the TESDA Regional Office verifies the
veracity and validity of the claim within five (5) days from its receipt by

a. Calling both the enterprise and the apprentice for a conference; or
b. Sending a representative to the enterprise for that purpose.

3. In case a ground for approval exists
a. The investigating officer (field representative) shall initiate the application

Page 7 of 10


for termination.

b. The chief of the concerned unit or division of the TESDA Regional
Office shall verify the same.

c. The application for termination shall immediately be forwarded to the
Regional Director for appropriate action, after which a copy of the acted
upon application shall be furnished the applicant and the second party
party. This process shall be completed within three (3) days from receipt
of the document by the office of the concerned Regional Director.

d. A copy of each approved application .shall be furnished to the concerned
office of the TESDA.

e. Agency Level If either of the parties is not satisfied with the decision
of the Regional Director the case may be appealed, within the
reglementary period of five (5) days from receipt of the document, to the
TESDA Director-General whose decision shall be final and
unappealable

SECTION 19. Competency Assessment and Certification. - The apprentices
shall, within the apprenticeship period, undergo competency assessment for
qualifications to the training regulations. A national certificate shall be issued to all those
who demonstrated achievement of the competency standards.

SECTION 20. Training Certificate. ~ A training certificate shall be issued
by the authorized enterprise to sgnify completion of the apprenticeship program in
accordance with the approved training desig! 1. The certificate shall contain a list of the
units of competency acquired and shall be comparable to completion of a training
program ina TVET institution.

SECTION 21. Compulsory Apprenticeship. - When the national security or
particular requirements of economic development so demand, the President of the
Republic of the Philippines shall require compubory 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 22. Incentives. - An additional deduct ion from the gross income of
one-half (V2) of the labor training expenses incurred from developing the
productivity and efficiency of apprentices shall be granted to the person or enterprise
organizing an apprenticeship program: Provided, That the employer shall be exempt
from the payment of the apprenticeship fee and that such program shall be
recognized by the TESDA: Provided further, That such deduction shall not exceed
ten percent (10%) of the training allowance of the apprentices: Provided finally, That
the enterprise that wishes to avail of this incentive shall pay its apprentices the
minimum wage. Micro-cottage and small enterprises with less than one hundred (100)
employees shall be exempt from paying the apprenticestip 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 Progam of the TESDA, the Commission on
Higher Education (CHED) and the Department of Education (DepEd)

Page 8 of 10


a. Fraud or deceit committed in connection with the appation for the openingof
apprenticeship programs; and

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

Any violation of the provisons of this Act or its implementing rules and
regulations shall be punished with a fine of not ess than One Thousand Pesos (P1,000.00)
nor more than Ten Thousand Pesos (P1000000), or imprisonment of not less than three
months nor more than three years, or both such fine and imprisonment at the discretion of
the court.

SECTION 26. Transitory Provision. - All existing apprenticeship programs
and training regulations shall be vaiil until after the TESDA have conducted an assessment
and revalidation for consistency with the provisions of this Act and its implementing rules and
reguations

SECTION 27. Abolition of the Learnership Program. - To rationalize
and ensure the effective implementation of the Reformed Apprenticeship Program, the
LeamershipProgramishereby abolished.

SECTION 28. Implementing Rules and Regulations. - The TESDA
Board shall issue the implementing rules and regulations within ninety (90) days after the
effectivity of this Act.

SECTION 29. Repealing Clause. - Chapters | and J] of Title I! of Presidential
Decree No. 442. as amended, otherwise known as the Labor Code of the Philippines
are hereby repealed. Executive Order No. 111 series of 1986, R.A. No. 7796 or the
“TESDA Act of 1994" and all other laws. presidential decrees, issuances, executive
orders, letters of instruction, and rules and regulations contrary to or inconsistent with
the provisions of this Act are hereby amended accordingly.

SECTION 30. 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.

Page 9 of 10


SECTION 31. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,

Page 10 of 10