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Republic of the Philippines . Ss
HOUSE OF REPRESENTATIVES ie) \\)
‘Quezon City, Metro Manila /NDEX®
SEVENTEENTH CONGRESS
Third Regular Session
+ 8575
House Bill No.__

Introduced by DIWA Party-list Representative Pepito M. Pico

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 appropriate skills fit to access an 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, remains to be relatively small and has very slow
growth.

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 development
as well. Hence, passage of this important measure as a special law is earnestly sought.

PEPITO M. PICO
Representative, DIWA Party-list

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

SEVENTEENTH CONGRESS
Third Regular Session

8575

House Bill No.

Introduced by DIWA Party-list Representative Pepito M. Pico

AN ACT
PROVIDING FOR A REVISED APPRENTICESHIP PROGRAM REPEALING FOR
THE PURPOSE CHAPTERS I AND I OF TITLE II 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 Representatives 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. - \t is hereby declared the policy of the State to
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 demands of the economy for trained human resource;

b. Have a national apprenticeship program that includes an 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;

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

£. 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

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of skilled human resource; and
h. Harness corporate social responsibility towards the development of skilled
manpower to meet the requirements of industries.

SECTION4. Definition of Terms. - AsusedinthisAct:

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

x

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

°

. 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);

. 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 responsite
for monitoring program implementation, setting differences between management
and apprentices, and recommending measures for effective program
implementation;

m

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

8. 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 standard 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

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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;

1. 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;

Pp

Training plan refers to the specification for the apprenticeship program of an
enterprise which describes all the arning experience a student undergoes generally
including the competencies to be acquired wihin 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 of an Apprentice. -Anapprenticeshall have
the following qualifications:

a. Atleast fifteen (15) years of age;

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

¢. Have 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.

SECTION. Aptitude Testing of Applicants. - Consistent with the minimum
qualifications of an apprentice under Section 5 hereof, the bipartite plant apprenticeship
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,

SECTIONS. Apprenticeship Training Program Content and Delivery.—
All qualifications with training regulations promubated by the TESDA Board are
automatically classified as apprenticeable. To meet the immediate requirements of
enterprises for skilled workers, the TESDA Board must approve new apprenticeable
occupains endorsed by the appropriate Regional Technical Education and Skills
Development Committee upon consultation with workers’ groups and industry
representatives.

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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 bass
proviied 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 ries 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
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;

£. 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 orgatization,
association or group or their authoted 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.

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SECTION 13. Apprenticeship Models. — Enterprises with approved
apprenticestp programs may choose from any of the following apprenticeship modes
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

d. 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 4. Apprenticeship Administration. - The TESDA Board shall
be responsible for setting up the overall apprenticeship poy and standards. The TESDA.
Secretariat shall be responsible for apprenticestip 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 complaintof any
intrested party, shall have initial responsibility for setting 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 nits and regulations as may be
prescribed by the TESDA Board.

SECTION16.Appeal to the TESDA Director General. - The decisionofthe
TESDA Regional Director may be appealed by any aggrieved person to the TESDA
Director Genel within five (5) days from receipt of the decion. The decision of the
TESDA Director General shall be final andexecutory.

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

a) By the enterprise:

Habitual absenteeism in on-the-job training and related theoretical instructions
activities:
Willful disobedience of company rules or insubordination of lawful order of a
superior;
Poor physical condition, prolonged illness. or permanent disability which
incapacitates the apprentice from working;
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.

Pop

oe.

b) By the arprentice:
L Substandard or harmful working condtion within the enterprise's premises;

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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 apprentte; and

5. Badhealth and continuing illness.

SECTION 18. Rules and Procedure on the Termination of the Apprenticeship

a) Apprenticeship 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 partes 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
for termination.

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

¢. 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.

. A copy of each approved application .shall be furnished to the concemed
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

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the authorized enterprise to sgnify completion of the apprenticeship program in
‘accordance with the approved training desig! | The certificate shall contain a list of the units
of competency acquired and shall be comparable to completion of a training program in
a 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 deduction from the gross income of
one-half (1/2) 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 wih less than one hundred (100) empbyees shall be exempt from paying the
apprenticeship 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).

SECTION 24. Insurance for Apprentices. - Every partcipating
enterprise, group or association, industry, organization, government institution or civic group
undertaking training in accordance with the provisions of this Act shall provide a disability or
accident insurance policy in favor of the trainee or apprentice during the apprenticeship period.

SECTION 25. Penalty Clause. - Enterprises found offering unregistered
apprenticeship programs shall be subjected to progam closure proceedings without
prejudice to the filing of administrative, criminal, or civil liabilities. The TESDA Board may
file the necessary civil or criminal case as may be deemed reasonable and appropriate and
after the deliberation of the TESDA Board pursuantto this Act for any of the following causes:

a, Fraud or deceit committed in connection with the appkation 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 ruks and regulations
shall be punished with a fine of not ss than One Thousand Pesos (P1,000.00) nor more than
Ten Thousand Pesos (P1000000), or imprisonmentof not ess than three months nor more
than three years, or both such fine and imprisonment at the discretion of the court.

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SECTION 26. Transitory Provision. - All existing apprenticeship programs
and training regulations shall be vail 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 Refamed Apprenticeship Program, the
Learership Programs hereby abolished.

SECTION28. Implementing Rules and Regulations. - The TESDA Board
shall issue the implementing rules and regulations wihin ninety (90) days after the effectivity
of this Act.

SECTION 29. Repealing Clause. - Chapters I and JI of Title II 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.

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,

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