Introduced by Senator Magsaysay, 3r. 
EXPLANATORY NOTE 
One of the potential contributors to the attainment of our country's developed 
and industrialized status is labor. However, unemployment has steadily risen and the 
number of jobless Filipinos continuously sweeping society marking poverty and 
hardships. 
In the Jaquary 12, 2004 issue of the Philippine Star, it reported that per the 
records of the Department of Labor and Employment @OLE), the number of jobless 
Filipino youths has reached 2.5 million. 
Overseas employment is likewise bleak citing 
that the number of registered Filipino migrant workers declined by eight percent (8 %) to 
3 1,543 in the first six months of 2003 compared to 129,022 covering the same period in 
2002. 
As such, there is a need to iden@ the type of skills training projects which must 
be conducted. However, such endeavor should address the class of worker-trainee that 
will be catered. 
Projections in the drafted National Manpower Plan (NMP) revealed that about 
1.3 M young workers aged 15 to 24 years old will need preempfoytnent training within 
a span of five years. On the average, about 255,000 young workers will have to undergo 
prelemployment training. Twenty two percent of these are elementary graduates and 
twenty one percent are high school graduates. 
A similar attention, although in a different degree of training, should also be given 
to workers who are dismissed due to tinamial failures or, poor performance of their 
company. Moreover, cases of displaced workers are expected to rise with the full 
implementation of the General Agreement on Tariffs and Trade (GATT).The advent of 
GATT means creation of job opportunities which demand skills rarely apptied and 
practiced in our local industries. It is therefore imperative to formulate and implement 
strategies for skills training that will prepare workers for new skills adaptations, ensure 
their employment, and become world-competitive. 
' Approval of this bill is therdore emestly requested. 
A 


AN ACT 
INSTITUTIONALIw1yG SKILLS TRAXNING AM) RE-G, 
AND FOR 
OTHER PURPOSES 
Be It enactd by the Senute and &e House of Represtmtadfves in Congress assembled: 
SECTION, 1, $hod Title. - This Act shall be known as Skills Training and 
Retraining Act of2004. '' 
SEC. 2. Declaradon of Policy. - It is the declared policy of the State to i&rh 
labor as ti primiuy social economic force. It is atso the policy of the State to provide adult 
citizens, the disabled, atld out-of-school youth with training in civics, vocatiod efficiency, 
and other skills, 
Toward this end, it is the policy of this Act to formulate mechanisms designed to: 
(a) 
Provide adequate and relevant skills training and retraining programs to 
address the raquirements of the industry, and 
(b) 
Update the standard skills and introduce new cr&s to prepare workers for 
their employment and re-employment. 
SEC. 3. Saills &rlletin. - The Technical Education and Skills Development 
Authority (TESDA) in coordination with the Depmment of Trade and Industry shall 
maintain an updated list of needed skills catcgorized according to industry. 
The list shall be made publicly available every month at the Technical Education 
and Skills Development Authority, Department of Trade and Industry, and Department of 
Labar and Employment md their respective regional offices to ensure the labor group of 
Monnaticm. 
SEC 4. Reskilling of Displaced Wiwkm. - Skills upgradin8 opportunities shall 
be immediately extended by the TESDA to workers who were dismissed due to ah 
inevitable shutdown of their company or business establishment. 
The TESDA shail orient the dismissed workers with the skills listed in the Skills 
Bulletin stated in Section 3. 
Dismissed workera shall be required to present a notice of termination or any 
document that indicated their dismissal due to the shutdown, banktuptcy or other reasons 
whkh cause their company to cease business operations . The TESDA Secretariat, 
however, shall veri@ the name of the company or business establishment to circummnt 
false claim &om the workm 
SEC. 5. Appropriationsfor ReSainirg of Displaced Workem - The amount of One 
Hundred Million Pesos (P 100,000,000.00) used for the knding of the Reskilling of 


SEC, 6. Be-empbyment Trddng for the Youth - The TESDA shall formulate 
training programs that will equip out-of-school youths (OSYS) the necessary skills to 
prepare them for employment. T r W g  fees shall cover only for the materials and 
equipment that will be utilized. 
The TESDA personnel imolved in charging excessive fees to OSY trainees shall be 
subjected to disciplinary action. QSY trainees shdl be encouraged to file their complaints 
to the TIESDA administration. 
A company or business esthlishment which hired an OSY graduate shall duly 
recognize the certificate awarded to the OSY graduate and shall observe the employment 
conditions agreed. The hired QSY shall likewise report any violation committed by the 
business establishment or company to the DOLE 
SEC. 7. Training Women in No#-Traditio& Traks. - The TESDA shall provide 
a discount of at least ten percent (10%) on training fees as incentive to women who are 
willing to undergo training in non-traditional trades or women-applicants shall pay the said 
training fees upon employment. 
The Department of Labor and Employment through its job placement centers or 
public employment and service offices shall give priority in providing assistance to women 
who are graduates of non-traditional trades to find jobs. 
SEC. 8. Skills Training for Racral Mon-Farm aRd Agricultural Bod~&*d@. 
In a 
joint effort, the Department of Science and Technology (DOST) and the Department of 
Agriculture @A) shall provide the iatest and new technologies involved in agro- 
processing activities and fann-related activities. 
The TESDA in coordination with the DOST and the DA shall conduct the training 
in every region. 
SEC. 9. Appropriution for Skills Painirrg for Rurul Non-Famt urd Agricultwal 
Pr&ctfvi& - The amount of Two Hurrdred Million Pesos (F 200,000,000.00) used for 
the funding of Skills Training for Rural Non-Farm and Agriculturd Productivity for a sfian 
of four years shall be appropriated. 
SEC, 10. Skills Training for ExpoH Oriented Small and Medium Scale 
Enterprise (Sms). - The DOLE through its livelihood programs shall give priority on 
training for workers that will be employed in export-oriented SMEs. 
The DOLE in coordination with the DTI shall provide pointers on the latest export 
champions to prepare prospective entrepreneurs on the kind of product to venture in. 
SEC, 1 I. Appropriation for Skills TmiPrn for Elw;port orierrted Small imd 
Meddrcrrt Scale Entqdse (8's). 
- The amount of Sixty Five Millim Pesos 
(L)65,000,000.00) 
used for the hnding of Skills Training for Export Oriented Small and 
Medium Scale Enterprise (SMEs) for a span of three (3) years shall be appropriated for 
the following year upon approval ofthis act. 
SEC, 12, Penalties. - In the event that the gorementioned appropriations were 
not utilized in the manner stated in the given provisions, the guilty party shall be punished 
by a h e  not exceeding Ten Thousand pesos (Pl0,OOO.OO) or by imprisonment of not more 
than four (4) years, or both such fine and imprisonmefit. 


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1 
SEC 13. 
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~~~~~~. 
- The provisions ofthis Act are hereby decl~ed 
seprable and in the event any of such provisions is declared unconstitutional, the other 
provisions which are not affected thereby shall remain in force and effect. 
SEC. 14. 
Rqealhg c;lause. - All other laws, decrees, executive orders, 
administrative orders, rules and regulations or parts thereof which we inconsistent with 
the provisions of this Act are hereby repealed, amended or moditled accordingly. 
SEC. 15. E’mW@. 
- This Act shall take effect upon its publication in at least 
two (2) newspapera of general circulation, whichever comes earlier 
Approved,