Senate
of liu- fc'f i't
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
SENATE
S. No. 2491
23 NOV 21 A 9 39
RECEIVED BY;
Prepared by the Committees on Labor, Employment and Human Resources 
Development; and Ways and Means, with Senators Padilla, Villar, C., Revilla, Lapid, 
Villar, M., Villanueva, and Estrada as authors thereof.
AN ACT
ESTABLISHING A NATIONAL APPRENTICESHIP PROGRAM
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 "National
2 
Apprenticeship Program Act of2023".
3 
Sec. 2. Declaration of Policy. -It is hereby declared the policy of the State
4 
to establish a national apprenticeship program that will ensure the availability of
5 
qualified workforce in the field of critical and in-demand technical skills through
6 
the active participation of all stakeholders including but not limited to workers,
7 
enterprises, government agencies, and non-governmental organizations
8 
concerned.
9 
Sec. 3. Statement of Objectives. -This Act aims to:
10 
a. help meet the demand of the economy for quality, trained, skilled and
11 
competent workforce in highly technical occupations;
12 
b. establish a national apprenticeship program and enhance existing
13 
standards for the training and development 
of apprentices with
14 
multipartite involvement;
15 
c. promote the engagement of workers through training and
16 
development;
17 
d. recognize the indispensable role of enterprises in the training and


1 
development of the Filipino workforce;
2 
e. strengthen career development support program, including guidance
3 
and counseling services and other advocacy activities in the
4 
apprenticeship training program to encourage the participation of
5 
enterprises and workers;
6 
f. increase productivity and competitiveness of enterprises by ensuring
7 
the availability of skilled workforce;
8 
g. harness corporate social responsibility towards the development of a
9 
skilled workforce to meet the requirements of industries;
10 
h. impart professional skills, knowledge and qualifications which are
11 
necessary to engage in a form of skilled occupational activity;
12 
i. match skills supply to the fast-changing labor market needs; and
13 
j. promote gender equality and social inclusion.
14 
Sec. 4. Definition of Terms. - As used in this Act:
15 
a. Apprentice refers to a person undergoing education and training for an
16 
approved apprenticeable occupation during 
an established period
17 
governed by an apprenticeship agreement;
18 
b. Apprenticeabie Occupation refers to a highly technical occupation
19 
requiring specialized technical skills and must 
satisfy any of the
20 
following:
21 
i. occupation related to the priority sectors identified in the
22 
Philippine Development Plan (PDP) or by the Industry Boards as
23 
defined in this Act;
24 
ii. new and emerging occupation; and
25 
iii. in-demand and hard-to-fill occupation.
26 
c. Apprenticeship refers to any form of education and training that is
27 
governed by an apprenticeship agreement and enables an apprentice to
28 
acquire the competencies required to train in an occupation with training
29 
allowance consisting of both on-the-job and off-the-job training that leads
30 
to a recognized qualification;
31 
d. Apprenticeship agreement refers to a contract wherein a prospective
32 
enterprise binds itself to train the apprentice who in turn accepts the


1 
terms/conditions of the training for the recognized apprenticeabie
2 
occupation emphasizing the rights, duties and responsibiiities of each
3 
party;
4 
e. Bipartite Enterprise Apprenticeship Committee refers to a group estabiished
5 
by the enterprise composed of representatives of iabor and management
6 
responsible for settling differences arising from the apprenticeship
7 
agreement;
8 
f. Board refers to the Technical Education and Skills Development Authority
9 
(TESDA) Board;
10 
g. Certificate of Competency refers to a document issued by the TESDA to
11 
individuals who are assessed as competent in a cluster of related
12 
competencies;
13 
h. Certificate of Technical-Vocational Education and Training Program
14 
Registration (CTPR) refers to a document issued by the TESDA granting
15 
authority to an enterprise to offer a program in an apprenticeabie
16 
occupation;
17 
i. Cluster of units of competency refers to a group of competencies as defined
18 
in the Training Regulations that corresponds to a Certificate of
19 
Competency. A cluster of units of competency includes the basic, common
20 
and core competencies that can be offered as a registered program;
21 
j. Competency assessment refers to the process of collecting evidence to
22 
determine the acquired knowledge, skills and attitude of an individual in
23 
accordance with the standard performance expected at the workplace;
24 
k. Competency standard refers to a written specification of the knowledge,
25 
skills, attitude and values required for the performance of a job, occupation
26 
or trade and the corresponding standard of performance required in the
27 
workplace;
28 
I. Enterprise refers to a participating establishment that directly engages an
29 
apprentice based on an approved apprenticeship program;
30 
m. Hazardous workplace refers to a specific area within an establishment
31 
where a worker is exposed to potential risks of disabling injury, illness or
32 
death, but may exclude other areas within the same establishment where


1 
such risks are not present. The following are considered hazardous
2 
workplace:
3 
(1) Where workers are exposed to dangerous environmental elements,
4 
contaminants or work conditions including ionizing radiation, chemicals,
5 
fire, flammable substances, noxious components and the like;
6 
(2) Where the workers are engaged in construction work, logging, fire
7 
fighting, mining, quarrying, blasting, stevedoring, dock work, deep-sea
8 
fishing and mechanized farming;
9 
(3) Where the workers are engaged in the manufacture or handling of
10 
explosives and other pyrotechnic products;
11 
(4) Where the workers use or are exposed to power-driven or explosive
12 
powder-actuated tools; and
13 
(5) Where the workers are exposed to biological agents such as bacteria,
14 
fungi, viruses, protozoans, nematodes, and other parasites.
15 
n. Highly technical occupation refers to a position with a complex program
16 
characterized by all of the following:
17 
(1) Involves skills that are customarily learned through a structured,
18 
systematic program of supervised on-the-job training;
19 
(2) Involves the progressive attainment of manual, mechanical or technical
20 
skills and knowledge which, in accordance with the industry standards
21 
for the occupation, would require the completion of at least six (6)
22 
months of on- and off-the-job training;
23 
(3) Requires related instruction to supplement the on-the-job training.
24 
0. In-demand and hard-to-fiH occupation refers to an active job vacancy
25 
advertised recurrently by the companies which are having difficulty filling
26 
up a vacancy or taking longer time to be filled;
27 
p. Industry Association refers to an organization of independent business
28 
units in the same branch of industry, which conducts activities
29 
cooperatively aimed at improving the welfare of the group;
30 
q. Industry Board refers to an independent body established in priority
31 
industries to provide direct participation of employers and workers in the
32 
design and implementation of skills development schemes, trade skills


1 
standardization and certification and such simiiar functions;
2 
r. Labor Organization refers to any union or association of empioyees which
3 
exists in whoie or in part for the purpose of coilective bargaining or of
4 
deaiing with empioyers concerning terms and conditions of empioyment;
5 
s. New and emerging occupation refers to occupation that is not inciuded in
6 
the current occupational classification system, and has the potential for
7 
growth to become important in the future;
8 
t. Off-the-Job training refers to theoretical vocational training undertaken
9 
away from the actual workplace. It is usually only part of a whole training
10 
program, in which it is combined with on-the-job training;
11 
u. On-the-job training refers to a practical approach to acquiring
12 
competencies and skills needed for a job in the actual workplace;
13 
V. Quaiification refers to a package of competencies describing a particular
14 
function or job role existing in an economic sector covering the work
15 
activities required to undertake a particular job;
16 
w. Trade refers to any group of interrelated jobs or any occupation which is
17 
traditionally or officially recognized as craft or artisan in nature requiring
18 
specific qualifications that can be acquired through work experience and/or
19 
training; and
20 
X. Training pian refers to the specification for the apprenticeship program of
21 
an enterprise which describes all the learning experiences an apprentice
22 
undergoes generally including the competencies to be acquired within the
23 
program, the underpinning knowledge, theories and principles, and the
24 
assessment arrangements.
25 
Sec. 5. Apprenticeship Modeis. - Enterprises with approved
26 
apprenticeship programs shall choose from any of the following apprenticeship
27 
models:
28 
a. Apprenticeship involving a company and an identified training institution;
29 
b. Apprenticeship involving a group of companies and a training institution;
30 
c. Apprenticeship involving an industry training center and a company or a
31 
group of companies; or,
32 
d. Other schemes to be established by the TESDA in consultation with


1 
industries, enterprises and other stakeholders.
2 
Sec. 6. Qualifications of an Apprentice. - To qualify as an apprentice, a
3 
person must:
4 
a. Be at least fifteen (15) years of age; provided that those who are at least
5 
fifteen (15) but not more than eighteen (18) years of age shall not be
6 
eligible for apprenticeship in-hazardous workplace;
7 
b. Pass the aptitude tests designed and approved by TESDA to determine the
8 
readiness for apprenticeship;
9 
c. Have the ability to comprehend and follow oral and written instructions;
10 
and
11 
d. Submit a recent "Fit-to-Work Certificate" from a recognized health clinic or
12 
licensed physician.
13 
Provided, however, That an apprentice shall not be precluded from
14 
participating in other apprenticeship programs of TESDA.
15 
Trade, industry and labor organizations may recommend to TESDA
16 
appropriate educational requirements for different occupations.
17 
Sec. 7. Non-Discrimination of Apprentice. - The apprentices and their
18 
application, education and training shall be treated without distinction or
19 
discrimination on account of class, age, sex, gender, language, ethnicity, religion,
20 
ideology, disability, education, and status.
21 
Sec. 8. Determination ofApprenticeabie Occupation. - The TESDA Director-
22 
General shall issue an initial list of apprenticeable occupations, in consultation with
23 
stakeholders.
24 
The Technical Education and Skills Development Committees in the
25 
regional level as created under Republic Act No. 7796, otherwise known as the
26 
"TESDA Act of 1994", shall endorse new apprenticeable occupation based on the
27 
regional skills priorities through the conduct of skills mapping and validation from
28 
the industry boards or industry associations and other concerned stakeholders in
29 
the area to be approved by the TESDA Director General. The consultation with
30 
the industry shall be conducted every three (3) years: Provided, however, That
31 
consultation may be called to discuss the urgent need for additional
32 
apprenticeable occupations based on new and emerging skills.


1 
Sec. 9. Apprenticeship Program Registration. - Applying any of the
2 
apprenticeship modeis, an enterprise may appiy for the registration of an
3 
apprenticeship program for a qualification, a cluster of units of competencies, or
4 
endorsed new apprenticeabie occupation or bundled qualifications by submitting
5 
the following requirements:
6 
a. letter of application stating the intention of the enterprise to implement an
7 
apprenticeship program;
8 
b. certificate of undertaking; and
9 
c. training plan which shall contain the following:
10 
i. competencies to be acquired;
11 
ii. 
assessment and certification arrangement; and
12 
iii. 
training modaiities.
13 
The apprenticeship program shall emphasize the need for theoretical
14 
instruction. The theoretical instruction may be delivered within the enterprise or
15 
with a partner training institution. The enterprise may have a partnership with a
16 
training institution in its design, delivery and monitoring of the training plan.
17 
A Certificate of TVET Program Registration (CTPR) shall be issued to the
18 
enterprise to signify authorization to deliver the training for specific qualifications,
19 
a cluster of units of competencies, or endorsed new apprenticeabie occupation or
20 
bundled qualification.
21 
Sec. 10. Aptitude Testing of Appiicants. -TESDA shall develop an aptitude
22 
testing instrument for this program. Consistent with the minimum qualifications
23 
of an apprentice under Section 6 of this Act, the enterprise shall administer the
24 
aptitude examination in the selection of apprentices.
25 
Sec. 11. Apprenticeship Agreement. - No apprenticeship program shall
26 
commence unless an apprenticeship agreement has been signed by the enterprise
27 
and the apprentice.
28 
The apprenticeship agreement shall include but not limited to the
29 
following:
30 
a. Objectives, nature, syllabus, timetable, and location of the training;
31 
b. Period of training based on the approved training plan;
32 
c. Rate, schedule and frequency of release of training allowances as provided


1 
for in Section 12 of this Act;
2 
d. Training hours;
3 
e. Rights and obiigations of both parties; and
4 
f. Provision of Occupationai Safety and Heaith (OSH) standards on addressing
5 
safety and heaith hazards and mental health programs, as reasonably
6 
necessary, including the physical and mental well-being of the apprentice
7 
while undergoing apprenticeship.
8 
An apprenticeship agreement with a person under eighteen (18) years of
9 
age shall be signed by the parent or guardian of said person or if the latter is not
10 
available, by a duly authorized representative. A copy of the duly notarized
11 
apprenticeship agreement shall be submitted by the enterprise to TESDA prior to
12 
the start of the program.
13 
Sec. 12. Training Aiiowance. - The apprentice shall receive a training
14 
allowance which shall in no case be lower than seventy-five percent (75%) of the
15 
applicable minimum wage rates: Provided, however, That apprentices with
16 
programs exceeding six (6) months shall be entitled to a commensurate increase
17 
subject to evaluation of productivity to be conducted by the enterprise.
18 
Training hours shall not exceed eight (8) hours a day, subject to an
19 
additional twenty-five percent (25%) of the hourly rate for every hour in excess
20 
of eight (8) hours for programs that require additional training hours. In no case
21 
shall the overtime period be more than two (2) hours per day.
22 
The training hours of minors shall not exceed forty (40) hours per week.
23 
In no case shall they be allowed to render overtime.
24 
The time spent in off-the-job training shall be part of the total number of
25 
training hours. The frequency of the release of the training allowance shall be at
26 
least twice a month.
27 
Sec. 13. Training of Apprentices. - Only enterprises with apprenticeship
28 
programs registered with TESDA may enter into apprenticeship agreements and
29 
train apprentices in approved apprenticeable occupations.
30 
No enterprise shall be allowed to engage apprentices more than twenty
31 
percent (20%) of the total number of its employees: Provided, That the TESDA
32 
may, upon recommendation of the Industry Board or Industry Association,


1 
increase the cap, if necessary: Provided, further, That any person who shall be
2 
engaged as an apprentice in excess of the threshold herein provided shall be
3 
considered as a regular employee of the enterprise concerned if no such prior
4 
authority to increase the threshold have been granted by the TESDA.
5 
Sec. 14. Apprenticeship Period. -The apprenticeship period shall be based
6 
on the duration of training required in the training plan and on the complexity of
7 
the skills to be learned by the apprentices but shall not exceed three (3) years.
8 
Sec. 15. Impiementing Agency. - TESDA shall be responsible for setting
9 
up the overall apprenticeship policy and standards subject to the approval of the
10 
Board.
11 
TESDA, through the Office of Apprenticeship, shall have the following
12 
functions and responsibilities:
13 
a. Determine and issue the initial list of apprenticeable occupations and
14 
approve new apprenticeable occupations as endorsed by a multipartite
15 
body;
16 
b. Approve and certify apprenticeship programs applied for registration by
17 
enterprises;
18 
c. Issue policies and guidelines on the implementation of the apprenticeship
19 
programs;
20 
d. Coordinate with the Department of Labor and Employment (DOLE) relative
21 
to its inspectorate function to monitor compliance of enterprises with the
22 
apprenticeship program;
23 
e. Monitor the implementation of approved and certified apprenticeship
24 
programs by registered enterprises;
25 
f. Issue resolutions on complaints arising from the apprenticeship agreement;
26 
g. Validate and certify apprentices who successfully passed the assessment
27 
process;
28 
h. Conduct compliance audit on apprenticeship programs and implementors;
29 
and
30 
i. Cancel certificates of program registration of enterprises that fail to comply
31 
with the requirements.
32 
The Office of Apprenticeship shall be headed by a Director IV and shall


1 
have two (2) Divisions. It shali have regional and provincial offices to ensure the
2 
effective implementation of this Act.
3 
Sec. 16. Training Certificate. - A training certificate is to be issued by the
4 
authorized enterprise and its partner training institution to the apprentice upon
5 
completion of the apprenticeship program in accordance with the approved
6 
training plan. The certificate shall contain the number of hours spent in
7 
apprenticeship and the list of the competencies acquired consistent with the
8 
training plan. In the event that the apprentice is hired by the enterprise before
9 
the completion of the program, a training certificate shall likewise be issued to the
10 
apprentice.
11 
Sec. 17. Competency Assessment and Certification. - An apprentice shall
12 
undergo TESDA's national assessment and certification for qualifications with
13 
TESDA-promulgated Training Regulations. Successful candidates who
14 
demonstrated competence for the full or partial requirements of the qualifications
15 
shall be awarded a National Certificate (NC) or a Certificate of Competency (COC).
16 
For an apprenticeable occupation without an established TESDA National
17 
Certification system, an institutional assessment tool shall be developed by the
18 
enterprise or with its partner training institution. An appropriate industry
19 
certification shall be duly endorsed by the Industry Board to be recognized by
20 
TESDA before the implementation of any apprenticeship program.
21 
Sec. 18. Incentives to Enterprise. - Enterprises shall be allowed to deduct
22 
from their taxable income the amount of fifty percent (50%) of the labor training
23 
expenses incurred from developing the productivity and efficiency of
24 
apprentices: Provided, That such expenses shall not exceed ten percent (10%) of
25 
their total direct labor expenses.
26 
Sec. 19. System of Equivaiency. - Certified apprentices shall be awarded
27 
equivalent unit credits in the formal system of education that can be used in
28 
pursuing tertiary degree courses subject to the integrated policies and guidelines
29 
on equivalency and the Recognition of Prior Learning of the TESDA, the
30 
Commission on Higher Education and the Department of Education.
31 
Sec. 20. Exemption from Probationary Empioyment. - Certified apprentices
32 
shall be exempted from probationary employment: Provided, That they are
10


1 
employed in the same enterprise and for the same occupation requiring the same
2 
skills and qualification standards.
3 
Sec. 21. Insurance for Apprentices. - Every enterprise implementing an
4 
apprenticeship program shall provide a disability or accident insurance policy from
5 
a registered insurance company in favor of the apprentice during the
6 
apprenticeship period.
7 
Sec. 22. Settlement of Differences and Investigation of Complaints. - The
8 
Bipartite Enterprise Apprenticeship Committee, motuproprio or upon complaint of
9 
any interested party, shall have the initial responsibility for settling differences
10 
arising out of an apprenticeship agreement. In case it is not able to settle such
11 
differences, the TESDA Provincial Director shall investigate and submit a
12 
recommendation to the TESDA Regional Director who shall render a decision
13 
pursuant to pertinent rules and regulations.
14 
Sec. 23. Appeal to the TESDA Director General. - The decision of the
15 
TESDA Regional Director may be appealed by any aggrieved person/party to the
16 
TESDA Director General within fifteen (15) days from receipt of the decision. The
17 
decision of the TESDA Director General shall be final and executory.
18 
Sec. 24. Violation of this Act. - Any violation of the provisions of this Act
19 
shall be under the jurisdiction of TESDA through its regional offices. If the
20 
violation constitutes deficiency of labor standards and other labor laws, TESDA,
21 
through its regional offices, shall endorse the same to the appropriate regional
22 
offices of the DOLE, pursuant to Article 128 of the Labor Code of the Philippines,
23 
as amended.
24 
Sec. 25. Termination of Apprenticeship. - The apprenticeship agreement
25 
shall be binding during its term. However, the apprentice or the enterprise may
26 
terminate the agreement for cause, or by mutual consent of the parties upon prior
27 
notice.
28 
Sec. 26. Prohibited Acts and Penalties. - The following acts are hereby
29 
prohibited:
30 
a) Commission of fraud or deceit in the application or registration and
31 
implementation of the apprenticeship program;
32 
b) Termination of the apprenticeship program without valid cause;
11


1 
c) Non-payment of training allowance or payment of training allowance below
2 
the prescribed amount;
3 
d) Assignment to hazardous workplaces and occupations not part of the
4 
apprenticeship program; and
5 
e) Non-compliance with any conditions or obligations prescribed under this
6 
Act or its implementing rules and regulations.
7 
Any person or enterprise who commits any of the prohibited acts provided
8 
in the above enumeration or violates any of the provision of this Act or its
9 
implementing rules and regulations, shall be fined by the DOLE, or upon
10 
recommendation of TESDA, in the amount of not less than Ten thousand pesos
11 
(P10,000.00) nor more than One hundred thousand pesos (P100,000.00).
12 
Further, the Director-General may also order the suspension or revocation of the
13 
CTPR granted to an enterprise.
14 
The penalties under this Section are without prejudice to other liabilities
15 
arising from existing civil, administrative, and criminal laws for the same act or
16 
violation.
17 
Sec. 27. Transitory Provision. - All existing programs and Training
18 
Regulations shall be valid until after the TESDA has conducted an assessment and
19 
revalidation for consistency with the provisions of this Act and its implementing
20 
rules and regulations.
21 
Sec. 28. Appropriations. - The funds necessary for the initial
22 
implementation of this Act shall be charged against the available funds of TESDA.
23 
Thereafter, the funding shall be included in the budget of TESDA under the annual
24 
General Appropriations Act.
25 
Sec. 29. Impiementing Ruies and Reguiations. - TESDA, in consultation
26 
with relevant stakeholders, shall issue the implementing rules and regulations
27 
within one hundred twenty (120) days after the effectivity of this Act.
28 
Sec. 30. Separability Clause. - If any provision of this Act is held invalid or
29 
unconstitutional, the same shall not affect the validity and effectivity of the other
30 
provisions hereof.
31 
Sec. 31. Repealing Clause. - Book II, Title II, Chapter I (Apprentices) of
32 
Presidential Decree 442, or the Labor Code of the Philippines, as amended, the
12


1 
relevant provisions of Republic Act No. 7796 or the "TESDA Act of 1994", Republic
2 
Act No. 7686 or the "Dual Training System Act of 1994" and all other laws,
3 
presidential decrees, issuances, executive orders, letters of instruction, and rules
4 
and regulations inconsistent with the provisions of this Act are hereby repealed or
5 
modified accordingly.
6 
Sec. 32. Effectivity. - This Act shall take effect after fifteen (15) days
7 
following the completion of its publication either in the Official Gazette, or in a
8 
newspaper of general circulation.
Approved,
13