SEVENTEENTH CONGRESS 
)
OF THE REPUBLIOF THE PHILIPPINES 
)
First Regular Session 
)
Senate Bill No. 1392
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Prepared and submitted by the Committee on Labor, Employment and Human 
________Resources Development with Sen. Joel Villanueva as author
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AN ACT PROVIDING FOR A REVISED NATIONAL APPRENTICESHIP 
PROGRAM, CLARIFYING THE STANDARDS FOR TRAINING AND 
ENGAGEMENT OF APPRENTICES AND ACCREDITATION OF 
APPRENTICESHIP PROGRAMS, REPEALING FOR THE PURPOSE 
CHAPTERS I AND II OF TITLE II, BOOK II 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 House of Representatives of the Philippines 
in Congress assembled:
SECTION 1. Short Title. -  This Act shall be known as the "Apprenticeship 
Training System Act of 2017”.
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.
SEC. 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;
(c) 
Promote full employment of youth and young workers through training and 
development;
(d) 
Enhance existing standards for the training, development and employability of 
apprentices;
(e) 
Recognize the indispensable role of private enterprises in training and 
development;


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(f) 
Strengthen advocacy of the apprenticeship training program to encourage 
enterprise and young workers’ participation;
(g) 
Increase productivity and competitiveness of enterprises by ensuring availability 
of skilled human resource; and
(h) 
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) 
Apprentice refers to a person undergoing training for an approved 
apprenticeable occupation during an established period assured by an 
apprenticeship contract.
(b) 
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.
(c) 
Apprenticeship means a training within an enterprise with compulsory 
related theoretical instructions involving a contract between an apprentice and 
an enterprise on an approved apprenticeable occupation.
(d) 
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.
(e) 
Authority refers to the Technical Education and Skills Development Authority 
or TESDA.
(f) 
Bipartite Enterprise Apprenticeship Committee refers to a group within the 
enterprise composed of the labor and the management responsible for 
monitoring the 
program 
implementation, 
settling 
differences 
between 
management and apprentices and recommending measures for effective 
implementation.
(g) 
Board refers to the TESDA Board.
(h) 
Certificate of Competency means a document issued by the Authority to 
individuals who were assessed as competent in a single unit or cluster of 
related units of competency.
(i) 
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.
(j) 
Cluster of Competencies refers to a group of competencies as defined in the 
Training Regulations that corresponds to a Certificate of Competency. A


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cluster of units of competency includes the basic, common, and core 
competency that can be offered as a registered program.
(k) 
Competency Assessment refers to the process of determining the 
competency of a person undergoing apprenticeship based on established 
standards of competency.
(l) 
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.
(m) Enterprise refers to a participating establishment or organization or the 
Government that directly engages an apprentice based on an approved 
Enterprise Apprenticeship Program.
(n) 
Industry Board/Body refers to industry organizations recognized by the 
Authority according to set guidelines.
(o) 
Methods of Competency Assessment refers to the different means/ways of 
gathering the required evidences and making judgment whether the 
competency has been achieved,
(p) 
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.
(q) 
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.
(r) 
Qualification refers to a formal certification that a person has 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.
(s) 
Training Plan refers to an Enterprise Apprenticeship Program which 
describes 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.
(t) 
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.


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(u) 
Unit of Competency refers to an activity that comprises a manageable 
component of work. 
In competency standards, each 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:
(a) 
Involve skills that are customarily learned through a structured, systematic 
program of on-the-job 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-job and off-the-job learning;
(b) 
Be clearly identified and commonly recognized throughout an industry;
(c) 
Require related theoretical instruction to supplement the on-the-job learning.
Provided, however, that apprenticeship does not include On-The-Job Training (OJT) 
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 learned 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. It 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 creation of the Bipartite Enterprise 
Apprenticeship Committee.
A Certificate 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


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(c) 
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 every 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 employees 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;
(b) 
Appoint the training officer to implement the Training Plan;
(c) 
Make available, free of charge, the consumable materials and basic hand tools 
and equipment necessary for the training;
(d) 
Allow the apprentice to attend in-school training and to sit for the competency 
assessment;


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(e) 
Require the apprentice to keep an updated report book and inspect such 
books;
(f) 
Ensure that the apprentice is encouraged to develop personality;
(g) 
Ensure that the apprentice is protected from physical or moral danger; and
(h) 
Entrust to the apprentice such jobs as are related to the purpose of the training 
and are commensurate with the apprentice’s capabilities.
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 (18) years of age shall not be exposed to dangerous or hazardous 
occupations;
(b)
(c) 
Possess the ability to comprehend and follow oral and written instructions.
Possess good 
moral 
character, 
vocational 
aptitude and capacity for 
apprenticeship as determined by the enterprise; and
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:


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(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 in 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
(e) 
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
(f) 
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 to the approval of the 
TESDA Board.
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.


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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 
(CHED) 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 Appprenticeship Contract shall be terminated on any of the grounds 
stipulated thereunder, subject to the rules on due process. The Notice of Termination 
shall be filed with the Bipartite Enterprise Apprenticeship Committee 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).


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SEC. 21. Violation of Labor Standards and Other Labor-Related Law s- 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 or 
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, jobs or employment levels where shortage of trained human 
resources deemed critical as recommended by the TESDA Board.
SEC. 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 be 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 causes;
(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 Board shall, 
after consultation with the National Tripartite Industrial Peace Council (NTIPC) 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.
SEC. 28. Sunset Provision. -  Four (4) years after the effectivity of this Act, the 
TESDA Board shall conduct a review of its implementation and submit a report to 
Congress within thirty (30) days after the conclusion of the review.


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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 II 
(Learners), Title II, Book II and other pertinent provisions of Presidential Decree 442, 
or the Labor Code of the Philippines, as amended. Executive Order No. 111, series 
of 1986, RA 7796 or the TESDA Act of 1994, and all other laws, decrees, executive 
orders and rules and regulations contrary to or inconsistent with the provisions of this 
Act are hereby repealed or modified accordingly.
SEC. 31. Effectivity. -  This Act shall take effect after fifteen (15) days from the 
date of its full and complete publication in the Official Gazette or in two (2) 
newspapers of general circulation.
Approved.
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