SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF tHE PHilippiNES 
) 
First Regular Session 
) 
SENATE 
13 t.:' 
Senate Bill No. _~_....,,"-U"" 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Youth unemployment has been one of the major concerns of the 
government. In 2009, Mlf (50.8%) of tM 2.83 million unemployed persons Ware 
young people, indicating that the face of unemployment in the Philippines is 
getting younger. Due to inadequate employment opportunities in the formal 
economy, limited labor market information and inadequate academic preparation, 
the mismatch between jobs and skills compounds the problem of high 
Ynemployment level !;lmQng the YQyth !;lnd edlJC!;lted. 
The government recognizes the importance of the apprenticeship 
programs in providing the youth with skills and access to 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 been increasing at 
a very slow pace. 
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 employment. Hence, passage of this important measure as 
a special law is earnestly sought. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC) 
-i1!I1Utf' 
(~ffl~' "f IIt.fo'fT.t»r~ 
OF THE PHilippiNES 
) 
First Regular Session 
) 
'13 Jill -1 
P 1 :58 
SENATE 
Senate Bill No. 
136 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
. 
. 
1 
SECTION 1. 
Short Title. - This Act shall be known as the "Apprenticeship 
2 
Training Act of 2013". 
3 
4 
5 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the state to 
6 
establish a reformed apprenticeship program that wi» ensure the availabiltty of 
7 
qualified manpower in critic.al and in-demand skills through the participation of 
8 
employers, workers and government and non-government agencies. 
9 
10 
11 
SEC. 3. Statement of Objectives. - The aims of this Act include: 
12 
i3 
a. To help meet the demand of the economy for trained human resource; 
14 
15 
b. To have a national apprenticeship program that includes on and off 
16 
the-JOb training components with tripartite involvement; 
17 
18 
c. To promote full employment of youth and young workers through 
19 
training and development; 
. 
.. 
. 
20 
21 
d. To enhance existing standards for the training, development and 
22 
empioyment of apprentices; 
23 
24 
e. To recognize indispensable role of private enterprises in training and 
25 
development;· 
. 
. 
-
26 
27 
f. To strengthen advocacy of the apprenticeship training program to 
28 
encourage enterprise and young workers' participation; 
29 
30 
g. To increase productivity and competitiveness of enterprises by 
31 
ensuring availability of skilled human resource; and, 
1 


1 
2 
h. fo harness Corporate Social Responsibiilty (CSR) towards the 
3 
development of skilled manpower to meet the requirements of the 
4 
industries. 
5 
6 
7 
SEC. 4. Definition of Terms. = For purposes of this Act, the following terms 
8 
shall mean: 
9 
10 
1. Apprenticeship -
is trail'lil'lg withil'l employmel'lt with eompulsory 
11 
related the.oretical instructions. involving a contract between an 
12 
apprentice and an employer on an approved apprenticeable 
13 
occupation; 
14 
. 15 
2. Apprentice -
is a person undergoing training for an approved 
16 
apprenticeabfe occupation during an established period assured by 
17 
an apprenticeship contract; 
18 
19 
3. Apprenticeship Contract- is anagreement wherein a prospective 
20 
employer binds itself to train the apprentice who in turn accepts the 
21 
terms Of training fOr the recognized apprentiteable oCCupation arid 
22 
emphasizing the rights, duties and responsibilities of each party; 
23 
24 
4. Apprenticeable Occupation - is an occupation officially endorsed 
25 
by a tripartite body and approved for apprenticeship by TESDA; 
26 
27 
5. Authority -
refers to the Technical 
Education 
and 
Skills 
28 
Development Author1ty (TESDA); 
29 
30 
6. Board - shall refer to the TESDA Board; 
31 
32 
7. Certificate of TVET Program Registration - a document issued by 
33 
TESDA granting an authority to an enterprise to offer a program in an 
34 
apprenticeable occupation; . 
. 
. 
. 
3$ 
36 
8. CQmpetenc.y Ass.e.s.smeol - the PJQc.ess of gathering and judging 
37 
evidence in order to decide whether a person has achieved a 
38 
standard of competency or COmpetence; 
39 
40 
9. Training Plan - the specification for the apprenticeship program for 
41 
the specific enterprise which describes all the learning experience a 
42 ' 
student undergoes, generally including the competencies to be 
4;? 
~c:;qyireQ within the prQgr~m, the YI1Qerpinning knQw!egge, theQri~l} 
44 
and principles and the assessment arrangement; 
45 
46 
10.Competency Standard -
iii written specification of the knowledge, 
47 
skills, attitude and values required for the performance of a job, 
48 
occupation or trade and the corresponding standard of performance 
49 
required for these in the workplace; 
50 
51 
11. Enterprise - a participating establishment that directly engages an 
52 
apprentice based on an approved Apprenticeship Program; 
53 
54 
12. Unit(s) of Competency - are units of competency from competency 
55 
standard. Each unit has elements, performance criteria, range of 
56 
variables and evidence guides; 
57 
2 


1 
13. Cluster of Competencies - groupings of competencies leading to 
2 
Certificate of Competency; and, 
3 
4 
14.Qualification -
a group of competencies packaged from the 
5 
supermarket of competency. It represents a clear meaningful set-up 
6 
in the workplace and 
is aligned with the Philippine WET 
7 
Qualifications Framework descriptor. Depending on the breadth, 
s. 
depth and scope of competency, a qualification may fall under 
9 
National Certificate Leve", II, III, IV or V. 
10 
11 
12 
SEC. 5. Qualifications of an Apprentice. - To qualify as an apprentice, a person 
13 
shall: 
14 
15 
a) Be at least fifteen (15) years of age; 
16 
b) Possess good moral character, vocational aptitude and capacity for 
17 
apprenticeship as aetermined by the enterprise; ana 
18 
0) Possess the ability to comprehend and follow oral and written 
19 
instructions. 
20 
21 
Trade, industry and labor organizations may recommend to TESDA appropriate 
22 
educational requirements for different occupations. 
23 
24 
25 \ S.EC. 6. 
Aptitude. Testing Qf AP-R/icJwts .. -
CQnsQnant with. the minimum 
26 
qualifications of apprentice-applicants required under this Chapter, the bipartite 
27 
plant apprenticeship committees shall have primarily responsibility for prOViding 
28 
appropriate aptitude examinations in the selection of apprentices. 
29 
30 
31 
SEC-. 7. Training of Apprentices. - Only enterprises with programs registered 
n 
with TEeOA m\ily enter into §RPrentiGel:ihip Gontr§Gtl:i §nQ tr§in §Pprenti(!el:i in 
33 
approved apprenticeable occupations. 
34 
35 
36 
SEC. 8. 
Apprenticeship Training Program Content and Delivery. -
All 
37 
qualifications 
with Training Regulations (TRs) promulgated by the TESDA 
38 
Board are automaticaiiy ciassified as apprentlceabie. To meet the immediate 
39 
requirements. of enterprises. for skilled. workers; the. TESDA Board shall. approve 
40 
new apprenticeable occupations endorsed by the appropriate Regional Technical 
41 
Education and Skills Development Committee (RTESDC) upon consultation with 
42 
workers' groups and industry representatives. 
43 
44 
The apprenticeship program shall emphasize the need for theoretical instruction. 
45 
The enterprise may seek partnership with a WET institution in the assign and 
46 
delivery of the theoretical instruction. 
47 
48 
49 
SEC. 9. Apprenticeship Period. - The apprenticeship period shall be based on 
50 
the duration of training required in the Training Regulation and on the complexity 
51 
afthe skills to be learned by the apprentices. 
s2 
53 
54 
SEC. 10. 
Apprenticeship Program Registration. - Registration of program can 
55 
be fOr a qualification, fOr cluster Of competencies or for a bundled qualifications 
S6 
as contained in the Training Regulations. A letter of Application stating the 
57 
intention and the Certificate of Undertakin!;! and the Trainin!;! Plan shall be 
3 


1 
submitted to TESDA for approval. A Certificate of TVET Program Registration 
2 
shall be issued to the enterprise to signify authorization for specific qualification 
3 
or competency clusters. 
4 
5 
An apprenticeship program maybe approved on a No-Training Regulations basis 
6 
provided that the applicant enterprise can show proof of the demand for such 
7 
skill, 
8 
9 
TESDA shall provide technical assistance to the applying and implementing 
10 
enterprises to be able to comply with the pr"Ovisions of this section. 
11 
12 
Enterprises found offering Apprenticeship programs which are not registered with 
13 
TESDA shall be subjected to program closure proceedings without prejudice to 
14 
the filing of administrative, criminal or civil liabilities. 
15 
16 
17 
SEC. 11. Contents of Appffmticeship Contract. - Apprelltieeship colltract shall 
18 
conform with the rules issued by TESDA and shall include: 
19 
20 
A. The nature, syllabus, timetable and purpose oftraining; 
21 
B. The period of training dependihg 01'1 the approved training 
22 
regulations; 
23 
C. Training allowances prescribed by industry subsectors through 
24 
tripartite oonsultations whioh in no case shall start below seventy-
25 
five percent (75%) Qf the applicable minimum wage; 
26 
D. A schedule of training allowance payment; 
27 
E Training hours; 
28 
F. The process for the termination of apprenticeship; and, 
29 
G. The general rights and obligations of both parties. 
30 
31 
32 
SEC. 12. Signing of apprenticeship contract. - Every apprenticeship contract 
33 
shall be signed by the enterprise owner or his/her authorized representative, or 
34 
the authorized representative of any of the recognized organizations, 
35 
associations or groups and the apprentice. 
36 
37 
An apprenticeship contract with a minor shall be signed in his/her behalf by 
38 
his/her parent or guardian or, if the latter is not available by an authorized 
39 
representative of the TESDA, and the same shall be binding during its lifetime, 
40 
subject to the right of the apprentice to terminate the same after a month's notice. 
41 
42 
Every apprenticeship contract entered into under this Title shall be. approved by 
43 
the bipartite plant apprenticeship committee involving the firm owner and 
44 
representatives of the firm workers, and COPieS thereof Shall be furniShed the firm 
45 
owner and the apprentice. 
46 
47 , 
48 
SEC. 13. Apprenticeship Schemes: - Enterf>fises wittt 8f>f>fOved 8f>f>I'enticeship 
49 
program may choose from any of the following apprenticeship scheme which 
50 
may use the Dual Training System approach: 
51 
52 
a) Apprenticeship involving a company and an identified traininl:! 
53 
institution; 
. 
54 
b) AppreritiCeShip ilivolvirig a group of coriipanies and a trairiirig 
5~ 
inlltitytiQn; 
56 
c) Apprenticeship involving an industry training center and a company or 
57 
a group of companies; or 
4 


1 
d) Other schemes to be established by the TESDA in consultation with 
2 
enterprise owners, labor and training institutions and subject to the 
3 
approval of the TESDA Board. 
4 
5 
6 
SEC. 14. 
Apprenticeship Administration. -
The TESDA Board shall be 
7 
responsible for setting up the overall apprenticeship policy and standards. The 
8 
TESDA Secretariat shall be responsible for apprenticeship administration, 
9 
monitoring and evaluation of on and off-the-job training. 
10 
11 
12 
SEC. 15. Investigation of violation of apprenticeship contract. - The bipartite 
13 
plant apprenticeship committee, upon complaint of any interested party or motu 
14 
propio, shall have initial responsibility for settling differences arising out of 
15 
apprenticeship contracts. In case it is not able to settle such differences, the 
16 
TESDA Secretariat or its authorized representative shall investigate and render a 
17 
decision pursuant to pertinent rules and regulations as may be prescribed by the 
18 
TESDA Board. 
19 
20 
21 
SEC. 16. Appeal to the TESDA Board. - The deciSion of the TESDA Secretariat 
22 
may be appealed by any aggrieved person to the TESDA Board within five (5) 
23 
days from receipt of the decision. The decision of the TESDA Board shall be final 
24 
and executory. 
25 
26 
27 
SEC. 17. Termination of Apprenticeship. -
28 
29 
I. 
Valid cause to terminate the Apprenticeship contract: 
30 
31 
1. By the employer: 
n 
33 
a) Habitual absenteeism in on-the-job training and related theoretical 
34 
instructions; 
35 
b) Willful disobedience to company rules or inSUbordination to lawful 
36 
order of a superior; 
37 
c) Poor physical condition, permanent disability or prolonged illness 
38 
which incapacitates the apprentices from working; 
39 
d) Theft or malicious. destruction of company property andlor equipment; 
40 
e) Poor efficiency or performance on the job or in the classroom for a 
41 
prolonged period despite warnings duly given to the apprentices; and 
42 
f) Engaging in violence or other forms of gmup misconduct inside the 
43 
employer's premises. 
44 
45 
2: By the apprentice: 
46 
47 
a) Substandard or deleterious working condition within the employer's 
48 
premises; 
49 
b) Repeated violations by the employer of the terms of the apprenticeship 
50 
agreement; 
51 
c) Cruel and inhuman treatment by the employer or his subordinates; 
52 
d) Personal pFOolem which in the opinion of the apprentice shall prevent 
53 
him from a satisfactory pe.rformance of his job; and 
54 
e) Bad health and continuing illness. 
55 
56 
II. 
Procedures of termination of apprenticeship: 
57 
5 


1 
1. Apprenticeship Committee Level 
2 
3 
a) The party (employer or apprentice) interested in terminating the 
4 
contract may do so, first, by notifying the Apprenticeship Committee; 
5 
b) The Committee confers with both parties and mediates and/or settles 
6 
the differences between them; 
7 
c) If mediation and/or settlement is not possible, the Committee advises 
8 
the complainants to apply for said termination with the Apprenticeship 
9 
Division of the Regional Office concerned. 
10 
11 
2. Regional Level 
12 
13 
a) The complainant verbally presents his/her case to the Apprenticeship 
14 ' 
Division. If to the judgment of the Division the complaint merits 
15 
consideration, he/she is made to duly accomplish an "Application for 
16 
Termination of Apprenticeship" form .. 
17 
18 
b) The Division verifies as to the veracity and validity of the claim within 
19 
five (5) days from receipt thereof-
20 
21 
1) By calling 
both 
parties (employer and 
apprentice) for 
22 
conference; or 
23 
2) By sending a representative to the employer's concern for- the 
24 
purpose. 
25 
3) In case grounds for approval exist -
26 
27 
1) 
The investigating officer (field representative) initiate 
28 
the application; and 
29 
2) 
The Chief of the Apprenticeship Division verified the 
30 
same. 
31 
3) 
The application is then immediately forwarded to the 
32 
Regional Director for appropriate action; after which a 
33 
copy of the acted application is furniShed each the 
34 
applicant and the second party; these processes to be 
35 
completed within three (3) days from receipt of the 
36 
document by the Office of said Regional Director. 
37 
4) 
A copy of each approved application is furnished the 
38 
6ure~y of Apprentic(?Ship to be forw~rded to the s?id 
39 
Office together with the Monthly Performance Report of 
40 
the Apprenticeship Division. 
41 
42 
3. Agency Level 
43 
44 
If either of the Parties is not satisfied with the decision of the Regional 
45 
Director, he/she may, within the reglamentary: period of five (5) days from 
46 
receipt of the document, appeal the case to the TESDA Director General 
47 
whose decision shall be final and unappealable. 
48 
49 
50 
SEC. 18. Competency Assessment and Certification. - The apprentices shaH, 
51 
within the apprenticeship period, undergo competency assessment for 
52 
qualifications with Training Regulations. A National Certificate shall be issued to 
53 
all those who demonstrated achievement of the competency standards, 
54 
55 
56 
SEC. 19. Training Certificate. - A Training Certificate shall be issued by the 
57 
authorized enterprise to signify completion of the apprenticeship program in 
6 


1 
accordance with the approved training design. The Certificate shall contain a list 
2 
of the units of competency acquired and shail be comparable to completion of a 
3 
training program in a TVET institution. 
4 
5 
6 
SEC. 20. Compulsory Apprenticeship. - When the national security or particular 
7 
requirements of economic development so demand, the President of the 
8 
Republic of the Philippines shall require compulsory training of apprentices in 
9 
certain trades, occupations, jobs or employment levels where shortage of trained 
10 
manpower is deemed critieal as determined by the TESDA Board. 
11 
12 
13 
SEC. 21. 
Apprenticeship Training Fund. - There shall be an apprenticeship 
14 
training fund which shall be derived from the apprenticeship fee paid by every 
15 
firm owner in industries employing workers in apprenticeable trades. Workers 
16 
who are graduates of apprenticeship programs shall likewise pay a one-time 
17 
apprenticeship fee upon employment as contribution to the apprenticeship 
18 
training fund. 
19 
20 
The apprenticeship fee rates and guidelines to be applied shall be approved by 
21 
the TESDA Board after a publio hearing with the management and labor sectOrs. 
22 
The fee shall be collected and paid through the Social Security System (SSS) 
23 
and transferred to the Apprenticeship Training Fund to be administered by 
24 
TE:SDA. The apprenticeship fee rate may be increased by the TE:SDA Board 
25 
subject to the requirements of public hearing. 
26 
27 
The Apprenticeship Training Fund shall be deemed distinct and separate from 
28 
the TESDA Development Fund under Section 3t of RA 7796 or the TESDA law, 
29 
and as such, shall not be subject to its Implementing. Rules and Regulations. 
30 
Such apprenticeship fund may be used to defray expenses of the trainees in the 
:31 
institution or training center as welf as other expenses to be approved by the 
32 
TESDA Board to improve implementation of the program. 
33 
34 
35 
SEC. 22. 
Inoentives. -
An additional deduction from the taxable income 
'36 , equivalent to one-half (1/2) of the value of labor training expenses incurred for 
37 
developing the productivity and efficiency of apprentices shall be granted to the 
38 
person or enterprise organizing an apprentlceable program and shall be exempt 
3~ 
from the payment of apprenticeship fes. Provided, That such program is duly 
40 
recognized by TESDA. Provided, further, That such deduction shall not exceed 
41 
ten .percent (10%) of direct labor wage; and, Provided, finally, That the person or 
42 
enterprise who WisheS to avail himself or itself of this incentive should pay hiS 
43 
~pprentice~ the minim\Jm W1;1ge, Micrg-CQtt1;1ge 1;1n<:l ~m1;111 enterpri~e~ Qr thQ~e 
44 
with less than 100 employees shall also be exempt from the payment of the 
45 
apprenticeable fee. 
46 
47 
48 
SEC. 23. Exemption from Probationary Employment: System of Equivalency. -
49 
Certified apprenticeship graduates shall be exempted from probationary 
50 
employment. They shall be employed as regular workers jf chosen to be retained 
51 
by the enterprise. 
52 
53 
Apprenticeship graduates shalf Hkewise be awarded equivalent unit credits ill the 
54 
formal system of education that can be used in pursuing tertiary degree courses 
55 
subject to the integrated policies and guidelines on equivalency and adult 
56 
education acceleration program of the TESDA, CHED and DepEd. 
57 
7 


1 
SEC. 24. Implementing Rules and Regulations. - The TESDA Board shall issue 
2 
the impiementing Rules and Reguiations within ninety (90) days after the 
3 
effectivity ofthis Act. 
4 
5 
6 
SEC. 25. 
Transitory Provision. -
All existing apprenticeship programs and 
7 
Training Regulations shall be valid until after the TESDA has conducted an 
8 
assessment and revalidation for consistency with the provisions of this Act and 
9 
its Implementing Rules and Regulations. 
10 
11 
12 
SEC. 25, Repealing Clause. - Pertinent provisions of Presidential Decree 44·2 or 
13 . the Labor Code of the Philippines as amended, Executive Order No. 111 series 
14 
of 1986, RA 77.96 or the TESDA Act of 1S94 and all other laws, decrees, 
15 
executive orders and rules and regulations contrary to or inconsistent with the 
16 
provisions of this Act are hereby repealed or modified accordingly. Any law, 
17 
Presidential Decree or issuance, Executive Order, Letter of Instruction, rule or-
18 
regulation inconsistent with the provisions of this· Act is hereby repealed or 
19 
modified accordingly. 
20 
21 
22 
SEC. 26. Separability Clause. - If any provision of this Act is held invalid or 
23 
unconstitutional, the same shall not affect· the vaHdity and effectivity of- the other· 
24 
provisions hereof. 
25 
26 
27 
SEC. 27. Effectivity. - This Act shall take effect after fifteen (15) days from the 
28 
date of its full and complete publication in the Official Gazette or in two (2) 
29 
newspapers of general circulation. 
30 
31 
32 
33 
34 
35 
Approved, 
8