Republic of the Philippines: {>
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
‘Second Regular Session

House BiLLNo, 8665 _

Introduced by HONORABLE LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

This jurisdiction has long recognized the importance of providing our labor force with
opportunities to improve their skills for a fee, especially in the highly technical fields
that require actual hands-on training and experience. Hence, Presidential Decree No
442 or the Labor Code of the Philippines expressly includes Chapters on
Apprenticeship and Leamership opportunities for Filipinos.

Upon close review of Chapters | and Il, Title Il of the Labor Code, we observe that
they no longer meet the needs and realities of our labor force. The proposed bill
therefore incorporates the involvement of the Technical Education and Skills
Development Authority (TESDA). As the country’s primary Technical Vocational
Education and Training (TVET) authority, TESDA regularly performs studies to
determine the most marketable technical skills for Filipinos, and develops courses
independently or in partnership with accredited bodies. TESDA also maintains a
database of certified workers, technology institutions and training regulations.
Through TESDA's involvement, the bill seeks to ensure that our apprentice
candidates are protected from exploitative and/or incompetent training bodies and
practices.

This bill also provides an insurance mechanism for apprentices who encounter
accidents resulting to injuries or disabilities in performance of their apprenticeship or
training tasks. Itis the fervent hope of the bill to make apprenticeship programs more
attractive to candidates and industries alike to reduce the mismatch between the


skills and jobs available, and ultimately, to increase the employment rate of the
country.

In consideration of the foregoing premises, the passage of this bill is urgently sought.

Luis ake JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 6665

Introduced by HONORABLE LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT PROVIDING FOR A REVISED APPRENTICESHIP PROGRAM,
REPEALING FOR THE PURPOSE CHAPTERS | AND Il OF TITLE Il 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 Philippines in Congress
assembled:

Section 1. Short Title. - This Act shall be known as the “Revised Apprenticeship
Program Act.”

Section 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 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 demand of the economy for trained human resource;

B. Have a national apprenticeship program that includes 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;

F. 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 of skilled human resource; and

H. Hamess corporate social responsibility towards the development of skilled
manpower to meet the requirements of industries;

Section 4. Definition of Terms. ~ As used in this Act;
A. Apprentice refers to a person undergoing training for an approved
apprenticeship occupation during an established period governed by an
apprenticeship contract;

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

C. Apprenticeable occupation refers to an occupation officially endorsed by a
tripartite body and approved for apprenticeship by the Technical Education
and Skills Development Authority (TESDA);

D. 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;

E. Bipartite plant apprenticeship committee refers to a group established by the
enterprise composed of representatives of labor and management
responsible for monitoring program implementation, setting 3 differences
between management and apprentices, and recommending measures for
effective program implementation.


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

. Certificate of Technical-Vocational Education and Training (TVET) Program
Registration refers to a document issued by the TESDA granting an authority
to an enterprise of offer in an apprenticeable occupation;

. 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;

Competency assessment refers to the process of gathering and judging every
evidence in order to decide whether a person has achieved a standard of
competency;

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;

. Dual Training System refers to a delivery system of quality technical and
vocational education which requires training to be carried out alternately in
two (2) venues: in school and in the production plant. In-school training
provides the trainee the 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;

. Enterprise refers to a participating establishment that directly engages an
apprentice based on an approved apprenticeship program;

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;


N. Training plan refers to the specification for the apprenticeship program of an
enterprise which describes 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; and

©. 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.

Section 5. Qualifications of an Apprentice. - To qualify as an apprentice, a
person must:

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. Have the ability to comprehend and follow oral and written instructions. Trade,
industry and labor organizations may recommend to the TESDA appropriate
educational requirements for different occupations.

Section 6. 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 responsibility of providing
appropriate aptitude examinations in the 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.

Section 8. Apprenticeship Training Program Content and Delivery. - All
qualifications with training regulations promulgated 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
‘occupations endorsed by the appropriate Regional Technical Education and Skills
Development Committee 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 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 shall not exceed two (2) years.

The Training plan, which should be approved by TESDA, should be the controlling
basis for the duration of the training program.

Section 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, certificate of undertaking, and the training plan shall be
submitted to the 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 basis
provided hat the applicant enterprise can show proof of the demand for such skill

The TESDA shall provide technical assistance of applying and implementing
enterprises to be able to comply with the provisions of this section.

Section 11. Contents of the Apprenticeship Contract. - The apprenticeship
contract must conform with the rules issued 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;

C. 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-govemmental
organizations shall be considered in computing the seventy-five percent
(75%);

i]

Schedule of training allowance payment;
E. Training hours;
F. Process for the termination of apprenticeship; and

G. General rights and obligations of both parties.

Section 12. Signing of the Apprenticeship Contract. - Every apprenticeship
contract shall be signed by the apprentice and the enterprise, recognized
organization, association or group or their authorized representatives.

An apprenticeship contract with a person under eighteen (18) years of age shall be
signed by the parent of 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 owners and
representatives of the firm workers. Copies of the apprenticeship contract shall be
furnished the firm owner and the apprentice.


Section 13. Apprenticeship Models. - Enterprises with approved apprenticeship
Programs may choose from any of the following apprenticeship models 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 and 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 14. Apprenticeship Administration. - The TESDA Board shall be
responsible for setting up the overall apprenticeship policy and standards. The
TESDA Secretariat shall be responsible for apprenticeship 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 complaint of any
interested party, shall have the initial responsibility of settling differences arising out
of apprenticeship contracts.

In case it is not able to settle such difference, the TESDA Provincial Director shall
investigate and submit a recommendation to the TESD Regional Director who shall
render a decision pursuant to pertinent rules and regulations as may be prescribed
by the TESDA Board.

Section 16. Appeal to the TESDA Director General. - The decision of the TESDA
Regional Director may be appealed by any aggrieved person to the TESDA Director


General within five (5) days from receipt of the decision. The decision of the TESDA
Director General shall be final and executory.

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

A. By the enterprise.
(1.) Habitual absenteeism in on-the-job training and related theoretical
instructions activities;

(2.) Willful disobedience of company rules or insubordination of lawful order of a
superior,

(3.) Poor physical condition, prolonged illness, or permanent disability which
incapacitates the apprentice from working;

(4.) Theft or malicious destruction of company property or equipment,

(6.) Inefficiency, or poor performance on the job, or in the classroom for a
prolonged period despite waming duly given to the apprentice; and

(6.) Engaging in violence or other forms of misconduct inside the enterprise's
premises.

B. By the Apprentice:
(1.) Substandard or harmful working condition within the enterprise’s premises;

(2.) Repeated violations by the enterprise of the terms of the apprenticeship
agreement;

(3.) Cruel and inhumane treatment;


(4.) Personal problem which in the opinion of the apprentice shall prevent the
‘satisfactory performance of the job by the apprentice; and

(5.) Bad health 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 parties and mediates the differences
between them; and

(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 TESDA Regional Office. If the
complaint merits consideration, the complainant is made to duly accomplish

an Application for Termination of Apprenticeship form;

(2) The concemed unit of division of the TESDA Regional Office verifies the
veracity and validity of the claim within five (5) days from receipt by:

i. Calling both the enterprise and the apprentice for a conference; or
ii. Sending a representative to the enterprise for that purpose.

(3.) In case a ground for approval exists:


i. The investigating officer (field representative) shall initiate the
application for termination;

ii, The chief of the concerned unit of division of the TESDA Regional
Office shall verify the same;

ili, The application for termination shall immediately be forwarded to the
Regional Director for appropriate action, after which a copy of the acted
10 upon application shall be furnished the applicant and the second
party. This process shall be completed within three (3) days from
receipt of the document by the office of the concerned Regional
Director; and

iv. A copy of each approved application shall be furnished the concemed
office of the TESDA.

C. 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 the 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 the
authorized enterprise to signify completion of the apprenticeship program in
accordance with the approved training design. 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 compulsory 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 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 with less than one hundred (100) employees shall be exempt from
paying the apprenticeship fee.

Section 23. System of Equivalency. - Apprenticeship 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 Program of the TESDA, the Commission on Higher
Education (CHED) and the Department of Education (DepEd).

Section 24. Insurance for Apprentices. — Every participating 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 in 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 program 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 pursuant to this Act for
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. Any violation of the provisions of this
Act or its implementing rules and regulations shall be punished with a fine of
not less than one thousand pesos (P 1,000.00) nor more than ten thousand
pesos (P 10,000.00) or imprisonment, at the discretion of the court.

Section 26. 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.

Section 27. Abolition of the Learnership Program. ~ To rationalize and ensure
the effective implementation of the Reformed Apprenticeship Program, the
Leamership Program is hereby abolished.

Section 28. Implementing Rules and Regulations. - The TESDA Board shall
issue the implementing rules and regulations within ninety (90) days after the
effectivity of this Act.

Section 29. Repealing Clause. — Chapters | and II of Title II of the 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, Republic
Act 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
of inconsistent with the provisions of this Act are hereby amended accordingly.

Section 30. Separability Clause. - |f 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 the
Publication in the Official Gazette or in a newspaper of general circulation.

Approved,