Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4376

Introduced by: REPRESENTATIVE PETER “SR. PEDRO” M. UNABIA

EXPLANATORY NOTE,

‘The severe lack of employment opportunities in our country has compelled our
people to find ways and means to gain practical experience on a particular job. Knowing
fully well how important it is for a prospective job applicant to have job experience or
formal training, many employers, both in the public and private sectors, take advantage of
the situation by engaging the services of a trainee or apprentice, which in most cases,
without providing monetary benefits.

Ironically, many trainees or apprentices even end up paying for the service
training they have rendered in exchange for a Certificate of Training. The most common
vietims are our poor nurses desiring to work abroad, who pay hospitals, including
government hospitals, instead of being paid for their services

This bill therefore seeks to put a quietus to this exploitative practice by
institutionalizing the granting of training allowance or stipend to our poor trainees or
apprentices, While we recognize the fact that there are still good employers, who provide
training benefits even without legal mandate, several employers take advantages of the
needs of our prospective job applicants by availing of their services for free or worse,
charge them a training fee.

In view of the foregoing reasons, the approval of this bill is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 48°76

Introduced by: REPRESENTATIVE PETER “SR, PEDRO” M. UNABIA

AN ACT
INSTITUTIONALIZING THE GRANTING OF MONTHLY ALLOWANt
TRAINEES OR APPRENTICES IN THE PUBLIC AND PRIVAT
AND PROVIDING PENALTIES FOR ANY VIOLATION THEREOF

Be it enacted by the Senate and the House of Representatives
of the Philippines in Congress assembled:

SECTION 1. Short Title. ~ This Act shall be known as the “Training Allowance
Institutionalization Act of 2013.”

SEC, 2. Declaration of Policy. — It is hereby declared the policy of the State to
recognize the necessity of deploying trainees or apprentices in the public and private
workplaces prior to their absorption in the regular workforce. Toward this end, the rights
and welfare of the trainees or apprentices must be protected by the government by
creating a working environment free from the exploitative practices of the prospective
employers.

SEC. 3. Definition of Terms. — As used in this Act, the following terms shall
mean.

a) Training Allowance refers to the fixed and regular allowance or
stipend to be paid to trainees or apprentices either on a monthly or
weekly basis for services rendered for the duration of the training or
apprenticeship program;

b) Trainee refers to any person, including apprentice or on-job trainee,
who is undergoing training to acquire the necessary theoretical or
practical experience in the workplace


SEC, 4, Training Allowance. ~ It is obligatory on the part of any employer both
in the public and private establishments, which engages the services of a trainee or
apprentice to pay a training allowance equivalent to the prescribed minimum wage in a
particular area

SEC. 5. Contract of Training. — No employer shall engage the services of a
trainee ot apprentice unless a Contract of Training containing therein the specific job and
workstation, training allowance or stipend, which in no case shall be lower than the
minimum wage in a particular area, and the period of training, which in no case shall be
more than six (6) months, otherwise the trainee or apprentice shall be automatically hired
as a regular employee or officer.

SEC, 5, Rules and Regulations. ~ The Department of Labor and Employment
(DOLE) shall issue the necessary rules and regulations to implement the provisions of
this Act.

SEC. 6, Penalty, — A penalty of imprisonment for six (6) months or a fine of not
exceeding One hundred thousand pesos (P100,000.00) or both at the discretion of the
court shall be imposed upon any person found guilty of violating this Act

If the offender is a corporation or government agency, the penalty or fine or both
at the discretion of the court shall be imposed upon the head of the Human Resource
Development or its equivalent office, which supervises the training

SEC. 7. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations which are inconsistent with the provision of this Act are hereby repealed,
amended or modified accordingly,

SEC. 8. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in any newspaper of general circulation

Approved,