NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
of tir 1 rtn■:}>
23 APR 25 PI 51
SENATE
S. No. 2088
RECEIVED BV
Introduced by Senator MARK A. VILLAR
AN ACT
REFORMING THE NATIONAL APPRENTICESHIP PROGRAM AND 
PROVIDING STANDARDS FOR THE TRAINING AND EMPLOYMENT OF 
APPRENTICES, AND REGULATORY STANDARDS FOR ACCREDITATION OF
APPRENTICESHIP PROGRAMS
EXPLANATORY NOTE
Technology has transformed the qualifications required by entrepreneurs and 
businesses from their employees. As business processes and corporate dynamics 
continuously evolves due to digitalization, there is an apparent mismatch between 
the skills acquired by graduates in schooling and the skills demanded by employers 
from job seekers.
Apprenticeship plays an important factor in bridging this gap between 
education and employment. Thru various existing apprenticeship programs, 
employment seekers were able to immerse to the reality of the work they intend to 
join. A meaningful immersion opportunity is necessary and will be achieved by 
enacting a law that shall reform existing national apprenticeship program.
This bill seeks to provide standards for the training and employment of 
apprentices, and will provide guidelines that will make apprenticeship more available 
to entrepreneurs. By enacting this bill, existing national apprenticeship program shall 
be enhanced towards the development of skilled manpower while recognizing the 
indispensible role of private enterprises in the training, development and 
employment of their apprentices. This bill will encourage jobseekers to undergo 
apprenticeship by providing compensation and opportunity for permanency after the


completion of the said program. Finally, this bill will promote the creation of 
apprenticeship programs to entrepreneurs as it provides incentives from the taxable 
income.
If the purpose of this bill is achieved, employment will be sustained and 
productivity will be ensured, benefitting both employers and employees that will 
ultimately redound to the improvement of the country's economy.
In view hereof, immediate passage of this bill is earnestly sought.
MARK A. VILLAR


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 2088
S5ena!c
'ODffifr oUhf
23 APR 25 PI 51
)8V
Introduced by Senator MARK A. VILLAR
AN ACT
REFORMING THE NATIONAL APPRENTICESHIP PROGRAM AND 
PROVIDING STANDARDS FOR THE TRAINING AND EMPLOYMENT OF 
APPRENTICES, AND REGULATORY STANDARDS FOR ACCREDITATION OF
APPRENTICESHIP PROGRAMS
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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 Act of2023'.
Sec 2. Declaration of Policy. - It is hereby declared the policy of the state to 
establish a reformed apprenticeship program that will ensure the availability of 
qualified manpower in critical and in-demand skills through the participation of 
employers, workers and government and non-government agencies.
Sec. 3. State of Objectives. -The purpose of this Act are the following:
a) To help meet the demand of the economy for trained human resource;
b) To have a national apprenticeship program that includes on and off the- 
job training components with tripartite involvement;
c) To promote full employment of youth and young workers through training 
and development;
d) To enhance existing standards for the training, development and 
employment of apprentices;


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e) To recognize indispensible role of private enterprises in training and
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development;
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f) To strengthen advocacy of the apprenticeship training program to
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encourage enterprise and young worker's participation;
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g) To increase productivity and competitiveness of enterprises by ensuring
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availability of skilled human resources; and
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h) To harness Corporate Social Responsibility (CRS) towards the development
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of skilled manpower to meet the requirements of the industries.
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Sec. 4. Definition of Terms. - For purposes of this Act, the following terms
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shall mean:
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a) Apprenticeship is training within employment with compulsory related
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theoretical instructions involving a contract between an apprentice and an
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employer on an approved apprenticeable occupation;
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b) Apprentice is a person undergoing training for an approved apprenticeable
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occupation during an established period assured by an apprenticeship
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contract;
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c) Apprenticeship Contract is an agreement wherein a prospective employer
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binds itself to train the apprentice who in turn accepts the terms of
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training for the recognized apprenticeable occupation and emphasizing the
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rights, duties and responsibilities of each party.
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d) Apprenticeable Occupation is an occupation and emphasizing the rights,
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duties and responsibilities of each party.
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e) Authority refers to the Technical Education and Skills Development
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Authority (TESDA);
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f) Board show refer to the TESDA Board;
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g) Certificate of JVET Program Registration is a document issued by TESDA
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granting an authority to an 
enterprise to offer a program 
in an
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apprenticeable occupation;
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h) Competency Assessment \s the process of gathering and judging evidence
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in order to decide whether 
a person has achieved a standards 
of
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competency or competence;


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i) 
Training Rian is the specification for the apprenticeship program for the 
specific enterprise which described all the learning experience a student 
undergoes, generally including the competencies to be acquired within the 
program, the underpinning knowledge, theories and principles and the 
assessment arrangement;
j) Competency Standard is a written specification of the knowledge, skills, 
attitude and values required for the performance of a job, occupation or 
trade and the corresponding standards of performance required for these 
in the workplace;
k) Enterprise is a participating establishment that directly engages an 
apprentice based on an approved Apprenticeship Program;
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Unit(s) of Competency are units of competency standard. Each unit has 
elements, performance criteria, range of variables and evidence guides; 
and
m) Cluster of Competencies are groupings of competencies leading to 
Certificate of Competency; and
n) Qualification is a group of competencies packaged from the supermarket 
of competency. It represents a clear meaningful set-up in the workplace 
and is aligned with the Philippine TVET Qualifications Framework 
descriptor. Depending on the breadth, depth and scope of competency, a 
qualification may fall under National Certificate Level I, II, III, IV or V.
Sec. 5. Qualifications of an Apprentice. - To qualify as an apprentice, a 
person shall:
a) Be at least fifteen (15) years of age;
b) Possess good moral character, vocational aptitude and capacity for 
apprenticeship as determined by the enterprise; and
c) Possess 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.
Sec. 6. Aptitude Testing of Applicants. - Consonant with the minimum 
qualifications of apprentice-applicants required under this Chapter, the bipartite


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plant apprenticeship committees shall have primary responsibility for providing
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appropriate aptitude examinations in the selection of apprentices.
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Sec. 7. Training of Apprentices. - Only enterprises with programs registered
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with TESDA may enter into apprenticeship contracts and train apprentices in
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approved apprenticable occupations.
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Sec. 8. Apprenticeship Training Program Content and Deiivery. - All
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qualifications with Training Regulations (TRs) promulgated by the TESDA Board are
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automatically classified as apprenticeable. To meet the immediate requirements of
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enterprises for skilled workers, the TESDA Board shall approve new apprenticeable
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occupations endorsed by the appropriate Regional Technical Education and Skills
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Development Committee (RTESDC) upon consultation with workers' group and
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industry representatives.
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The apprenticeship program shall emphasize the needs for theoretical
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instruction. The enterprise may seek partnership with a TVET institution in the
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design and delivery of the theoretical instruction.
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Sec. 9. Apprenticeship Period. -The apprenticeship period shall be based on
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the duration of training required in the Training Regulations and on the complexity
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of the skills to be learned by the apprentices.
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Sec. 10. Apprenticeship Program Registration. - Registration of program can
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be for a qualification, for cluster of competencies or for a bundled qualification as
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contained in the Training Regulations. A Letter of Application stating the intention
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and the Certificate of Undertaking and the Taking Plan shall be submitted to TESDA
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for approval. A Certificate of TVET Program Registration shall be issued to the
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enterprise to signify authorization for specific qualification or competency clusters.
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An apprenticeship program maybe approved on a No-Training Regulations
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basis provided that the applicant enterprise can show proof of the demand for such
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skill.
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TESDA shall provide technical assistance to the applying and implementing
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enterprises to be able to comply with the provisions of this section.
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Enterprise found offering Apprenticeship programs which are not registered
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with TESDA shall be subjected to program closure proceedings without prejudice to
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the filling of administrative, criminal or civil liabilities.


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Sec. 11 Contents of Apprenticeship Contract - Apprenticeship contract shaii
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conform with the ruies issued by TESDA and shaii inciude:
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a) The nature, syliabus, timetable and purpose of training;
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b) The period of training depending on the approved training regulations;
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c) Training allowances prescribed by industry subsector through tripartite
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consultations which in no case shall start below seventy-five percent
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(75%) of the applicable minimum wage;
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d) A schedule of training allowance payment;
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e) Training hours;
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0 The process for the termination of apprenticeship; and
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g) The general rights and obligations of both parties.
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Sec. 12. Signing of apprenticeship contract - Every apprenticeship contract
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shall be signed by enterprise owner of his/her authorized representative, or the
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authorized representative of any of the recognized organizations, associations or
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groups and the apprentice.
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An apprenticeship contract with a minor shall be signed in his/her behalf by
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his/her parent of guardian, or if the latter is not available by an authorized
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representative of the TESDA, and the same shall be binding during its lifetime,
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subject to the right of the apprentice to terminate the same after a month's notice.
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Every apprenticeship contract entered into under this Title shall be approved
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by the bipartite plant apprenticeship committee involving the firm owner and
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representatives of the firm workers, and copies thereof shall be furnished the firm
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owner and the apprentice.
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Sec. 13. Apprenticeship Schemes. - Enterprises with approved apprenticeship
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program may choose from any of the following apprenticeship scheme which may
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use the Dual Training System approach:
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a) Apprenticeship involving a company and an identified training institution;
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b) Apprenticeship involving a group of companies and a training institution;
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c) Apprenticeship involving an industry training center and a company or a
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group of companies; or


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d) Other schemes to be established by the TESDA in consultation with
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enterprise owners, labor and training institutions and subject to the
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approval of the TESDA Board.
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Sec. 14. Apprenticeship Administration. - The TESDA Board shall be
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responsible for setting up the overall apprenticeship policy and standards. The
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TESDA Secretariat shall be responsible for apprenticeship administration, monitoring
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and evaluation of on and off-the-job training.
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Sec. 15. Investigation of vioiation of apprenticeship contract - The bipartite
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plant apprenticeship committee, upon complaint of any interest party or motu
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propio, shall have initially responsibility for settling differences arising out of
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apprenticeship contracts. In case it is not able to settle such differences, the TESDA
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Secretariat or its unauthorized representative shall investigate and render a decision
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pursuant to pertinent rules and regulations as may be prescribed by the TESDA
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Board.
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Sec. 16. Appeai to the TESDA Board. -The decision of the TESDA Secretariat
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may be applied by any aggrieved person to the TESDA Board within five (5) days
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from receipt of the decision. The decision of the TESDA Board shall be final and
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executory.
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Sec. 17. Termination of Apprenticeship. -
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I. Valid cause to terminate the Apprenticeship contract:
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1. By the empioyer:
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a) Habitual absenteeism in the on-the-job training and related
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theoretical instructions;
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b) Willful disobedience to company rules or insubordination to lawful
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order or superior;
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c) Poor physical condition, permanent disability or prolonged illness
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which incapacities the apprentices from working;
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d) Theft or malicious destruction of company property and/or
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equipment;
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e) Poor efficiency or performance on the job or in the classroom for
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a prolonged period despite warnings duly given to the
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apprentices; and


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f) Engaging in violence or other forms of group misconduct inside 
the employer's premises.
2. By the apprentice:
a) Substandard or deleterious working condition within the 
employer's premises;
b) Repeated violations by the employer of the terms of the 
apprenticeship agreement;
c) Cruel and inhuman treatment by the employer of his 
subordinates;
d) Personal problem which in the opinion of the apprentice shall 
prevent him from a satisfactory performance of his job; and
e) Bad health and continuing illness.
II. Procedures of termination of apprenticeship:
1. Apprenticeship Committee Level
a) The party (employer or apprentice) interested in terminating the 
contract may do so, first, by notifying the Apprenticeship 
Committee;
b) The Committee confers with both parties and mediates and/or 
settles the differences between them;
c) If mediation and/or settlement is not possible, the Committee 
advises the complainants to apply for said termination with the 
Apprenticeship Division of the Regional Office concerned.
2. Regional Level
a) The complainant verbally presents his/her case to the 
Apprenticeship Division. If to the judgment of the Division the 
complaint merits consideration, he/she is made to duly accomplish 
an "Application for Termination of Apprenticeship" form.
b) The Division verifies as to the veracity and validity of the claim 
within five (5) days from receipt thereof -
1. By calling both parties (employer and apprentice) for 
conference; or


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2. By sending a representative to the employer's concern
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for the purpose.
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3. In case grounds for approval exist -
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a. The investigating officer (field representative)
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initiate the application; and
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b. The Chief of the Apprenticeship Division
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verified the same.
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c The application is then immediately forwarded
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to the Regional Director for appropriate action;
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after which a copy of the acted application is
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furnished each the applicant and the second
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party; these processes to be completed within
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three (3) days from receipt of the document by
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the office of said Regional Director.
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d. A copy of each approved application is
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furnished the Bureau of Apprenticeship to be
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forwarded to the said Office together with the
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Monthly Performance 
Report of the
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Apprenticeship Division.
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3. Agency Level
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If either of the Parties is not satisfied with the decision of the Regional
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Director, he/she may, within the reglementary period of five (5) days
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from receipt of the document, appeal the case to the TESDA Director
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General whose decision shall be final and unappealable.
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Sec. 18. Competency Assessment and Certification. - The apprentices shall,
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within the apprenticeship period, undergo competency assessment for qualifications
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with Training Regulations. A National Certificate shall be issued to all those who
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demonstrated achievement of the competency standards.
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Sec. 19. Training Certificate. - A Training Certificate shall be issued by the
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authorized enterprise to signify completion of the apprenticeship program in
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accordance with the approved training design. The Certificate shall contain a list of


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units of competency acquired and shall be comparable to completion of a training
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program in a TVET institution.
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Sec. 20. Compulsory Apprenticeship. - When the national security or
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particular requirements of economic development so demand, the President of the
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Republic of the Philippines shall require compulsory training of apprentices in certain
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trades, occupations, jobs or employment levels where shortage of trained manpower
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is deemed critical as determined by the TESDA Board.
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Sec. 21. Apprenticeship Training Fund. - There shall be an apprenticeship
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training fund which shall be derived from the apprenticeship fee paid by every firm
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owner in industries employing workers in apprenticeable trades. Workers who are
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graduates of apprenticeship programs shall likewise pay a one-time apprenticeship
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fee upon employment as contribution to the apprenticeship training fund.
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The apprenticeship fee rates and guidelines to be applied shall be approved
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by the TESDA Board after a public hearing with the management and labor sectors.
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The fee shall be collected and paid through the Social Security System (SSS) and
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transferred to the Apprenticeship Training Fund to be administered by TESDA. The
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apprenticeship fee rate may be Increased by the TESDA Board subject to the
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requirements of public hearing.
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The Apprenticeship Training Fund shall be deemed distinct and separate from
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the TESDA Development Fund under Section 31 of RA 7796 or the TESDA Law, and
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as such, shall not be subject to its Implementing Rules and Regulations. Such
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apprenticeship fund may be used to defray expenses of the trainees in the institution
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or training center as well as other expenses to be approved by the TESDA Board to
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improve implementation of the program.
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Sec. 22. Incentives. - An additional deduction from the taxable income
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equivalent to one-half (1/2) of the value of labor training expenses incurred for
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developing the productivity and efficiency of apprentices shall be granted to the
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person or enterprise organizing an apprenticeable program and shall be exempt from
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the payment of apprenticeship fee. Provided, That such program Is duly recognized
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by TESDA: Provided, further. That such deduction shall not exceed ten percent
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(10%) of direct labor wage: Provided, finaiiy. That the person or enterprise who
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wishes to avail himself or itself of this incentive should pay his apprentices the


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minimum wage. Micro-cottage and small enterprises or those with less than 100
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employees shall also be exempt from the payment of the apprenticeable fee.
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Sec. 23. Exemption from Probationary Employment: System of Equivalency. -
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Certified apprenticeship graduates shall be exempted from probationary
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employment. They shall be employed as regular workers if chosen to be retained by
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the enterprise.
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Apprenticeship graduates shall likewise be awarded equivalent unit credits in
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the formal system of education that can be used in pursuing tertiary degree courses
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subject to the integrated policies and guidelines on equivalency and adult education
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acceleration program of the TESDA, CHED and DepEd.
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Sec. 24. Implementing Rules and Regulations. -The TESDA Board shall issue
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the Implementing Rules and Regulations within ninety (90) days after the effectivity
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of this Act.
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Sec. 25. Transitory Provision. - All existing apprenticeship programs and
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Training Regulations shall be valid until after the TESDA has conducted an
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assessment and revalidation for consistency with the provisions of this Act and its
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implementing rules and regulations.
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Sec. 26. Repealing Clause. - Pertinent provisions of Presidential Decree 442
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or the Labor Code of the Philippines as amended, Executive Order No. Ill series of
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1986, RA 7796 or the TESDA Act of 1994 and all other laws, decrees, executive
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orders and rules and regulations contrary to or inconsistent with the provisions of
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this Act are hereby repealed or modified accordingly. Any law. Presidential Decree or
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issuance. Executive Order, Letter of Instruction, rule or regulation inconsistent with
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the provisions of this Act is hereby repealed or modified accordingly.
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Sec. 27. Separability Clause. - If any provision of this Act is held invalid or
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unconstitutional, the same shall not affect the validity and effectivity of the other
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provisions hereof.
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Sec. 28. Effectivity. - This Act shall take effect fifteen (15) days from the date
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of its complete publication in the Official Gazette or in two (2) newspaper of general
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circulation.
Approved,
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