EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Rufus B. Rodriguez _
3740

House Bill No. ____

~ introduced by Representati

EXPLANATORY NOTE

Employers play a large part in ensuring the success of skills development
activities through both on-the-job and off-the job training. They should be able to
participate in technical vocational education and training (TVET). This will guarantee that
there will be an adequate supply of skills that businesses need right now and that there
will be a proper matching of qualified workers with the available job demands.

Data shows that many Filipino youth have now changed their outlook about TVET
From 2010-2015, TVET graduates in all delivery modes in the Philippines reached
9,958,974 individuals. However, enrolment in enterprise-based training is only at 408,882
oF 4.11%.

This bill seeks to help meet the demand for well-trained manpower; to establish @
national enterprise-based training system and ‘standards; and to broaden the
opportunities, venues of education and training towards greater access.

Engaging the business community in education and training will help reach out to
as many people, especially the youth, who are seeking for jobs and other opportunities.

in view of the foregoing, immediate passage of this bill is earnestly requested

a Ae


EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

~~ introduced by Representative Rufus B. Rodriguez

House Bill No.

AN ACT
EXPANDING ENTERPRISE-BASED EDUCATION AND TRAINING, AND
APPROPRIATING FUNDS THEREFOR

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 "Enterprise-Based Education
and Training (EBET) Act.”

SEC. 2. Declaration of Policy. - \t is hereby declared the policy of the State to enhance
the skills of middle-level workforce of the entire nation. The State seeks to strengthen
middle-level manpower education and training in the country and to promote
employment so that it can be assured of an ever-growing supply of educated and
competitive manpower equipped with the appropriate skills and desirable work habits
and attitudes to meet the requirements, demands, and standards of the workplace
both in the local and international market.

The State recognizes that apprenticeship and dual training will help develop and
upgrade the skills of the studenttrainee in a technologically changing world and
in providing relevance in the training of a student/trainee by encouraging work
experiences as a valid part and means of education and training. The recognition of
the benefits of combining these two paths will greatly contribute to the creation of a
pool of well-trained middle-level workforce in the country.

SEC. 3. Objectives. - This Act shall have the following objectives:

(a) To help meet the demands of the economy for well-trained manpower
through technical-vocational education and training (TVET)

(b) To establish a national enterprise-based training system and standards that are
competency-based, including an on/off-the-job training program through the
participation of employers, workers, and government

(©) To establish enterprise-based training standards that will ensure that the
studentitrainees will acquire the right competencies in an environment where their
rights and safety are protected; and,

(d) To broaden the opportunities, venues of education, and training towards greater
access by all workers.

SEC. 4. Definition of Terms. - As used in this Act

(a) Competency assessment refers to the process of gathering and judging
evidence to decide whether a person has achieved a standard or level of
competency;

(b) Competency standards refer tothe written specifications of the knowledge, skills,
attitudes and values required for the performance of a job, occupation or trade
and the corresponding standard of performance required for these in the workplace:

() Dual education and training refer to the combination of on and off-the-job

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training involving an enterprise and a training institution,

(@) Dual Training System refers to an instructional delivery system of technical and
Vocational education and training that combines in-plant training and in-school
training based on a training plan collaboratively designed and implemented by an
aecredited dual system educational institution/training center and accredited dual
System agricultural, industrial and business establishments with prior notice and
‘ladvice to the concerned local govemment unit. Under this system, said
@stablishments and the educational institution share the responsibility of providing
the trainee with the best possible job qualifications, the former essentially through
practical training and the latter by securing an adequate level of specific, general and
Sccupation-related theoretical instruction. The word “dual” refers to the two parties
providing instruction while “system means that the two instructing parties do not
operate independently of one another, but rather in a well-coordinated manner,

(©) Enterprise-Based Education and Training Fund refers to the amount of money
made available to defray expenses of the trainees and other expenses related to
the implementation of Enterprise-Based Training Program,

(0 Enterprise-based education and training qualifications refer to the required set of skils
and aptitudes that a studentitrainee must possess before admission to the enterprise-
based education and training:

(@) (9) Enterprise-based studentfrainee refers to a person qualified to undergo training
for an approved enterprise-based education and training in an established period
as provided for by the enterprise-based education and training agreement;

(h) (h) Enterprise-based training agreement between enterprise and studenttrainee refers
to. a contract emphasizing the rights, duties and responsibilities of each party
wherein an enterprise binds itself to train the trainee who in tum accepts the
terms of education and training for an enterprise-based training qualification;

() Nominal duration of education and training refers to the estimated number
of training hours; and

() Period of education and training refers to the duration when the training
commences and terminates.

SEC. 5. Establishment of Enterprise-Based Education and Training Programs.- Enterprise-
based education and training programs (EBET) refer to practical training programs with
compulsory related theoretical instructions conducted onioft-he-job being implemented within
companies, the duration of which, shall be based on the complexity of the competencies
to be leamed in the specific qualification
A registered enterprise, group or association, industry, organization, government
institution or civic group wishing to organize the EBET program shall choose from
any of the following training schemes:
(2) EBET involving a company or entity and an identified technical-vocational
institution (TV1);
(b) EBET involving a group of company or entities and a TVI, and
(c) EBET involving an industry training center and company or entity or a group of
companies or entities:

SEC. 6. EGET Application. - An enterprise, group or association, industry, organization
goverment oF civic group wishing to organize an EBET program shall have its program
registered with the TESDA before entering into an agreement with students/trainees.
‘This Act shall apply to all work-related or workplace-related training in any of the
following modalities:(a) Apprenticeship; (b) Learnership; (c)_ On-the-Job-Training; (4)
Practicum; (e) Work Appreciation Program; (f) Dual Training System; and, (9) Intemship.

SEC. 7. EBET Agreement.- EBET agreements shall conform with the rules issued by
the TESDA and shall include the following


(a) Nature and purpose of training;

(b) Curriculum;

(c) Period of training;

(@) Training allowance equivalent to seventy-five percent (75%) of the existing
minimum wage, which shall be paid in cash or inkind or both;

(e) Schedule of training allowance payments,

(f) Process of termination of enterprise-based training; and

(g) General rights and obligations of both parties

Every EBET agreement shall be signed by the employer or an agent of the
employer or by an authorized representative of any of the recognized organizations,
associations, government institutions or civic groups, and by the studentirainee.

‘an EBET agreement with a minor shall be signed on the minor's behalf _by
the parent or guardian: Provided, That if the latter is not available, an authorized
representative of TESDA shall sign on behalf of the minor studentitrainee, and the
same shall be binding within the period specified in the agreement

SEC. 8. EBET Qualifications. - Any applicant for studenvtrainee under the enterprise-
based education and training (EBET) to be conducted by the TESDA must have the
following qualifications:

(@) Must be at least a high school graduate or its equivalent;

(b) Possesses vocational aptitude and capacity for EBET as established through
appropriate aptitude tests provided free of charge by enterprises, groups or
‘associations, industry organizations, government institutions and civic groups with
duly recognized enterprise-based training programs, or by the TESDA, in case they
do not have adequate facilities for the purpose, and

(0) Possesses the ability to comprehend and follow oral and written instructions.

Industry associations and labor groups may recommend to the TESDA the
appropriate or additional educational requirements for different occupations

SEC. 9. Responsibility for Theoretical Instruction. - Compulsory theoretical instructions
shall be part of the EBET program. In cases where the program is undertaken in the
plant, theoretical instructions may be given by the enterprise. If the latter is not
prepared to assume the responsibility, the same may be delegated to an
appropriate government agency.

SEC. 10. EBET Administration. - The TESDA Board shall set the overall policy for EBET.
The responsibility for enterprise-based training administration, monitoring and
evaluation of the on/off-the-job training shall be the concern of the TESDA
Secretariat. The identification and prioritization of _enterprise-based training
qualifications and the development of competency standards and curricula shall
be the joint responsibility of industry associations, labor groups, and the TESDA. A
Plant EBET Committee shall be established in every participating enterprise to
ensure that program implementation is in accordance with the approved policies of the
TESDA Board.

SEC. 11. Investigation of Violations of EBET Agreement. The Industry Coordinator,
upon complaints of any interested party or motu proprio, shall have the initial
responsibility of settling differences arising from EBET agreements. In case the Industry
Coordinator is not able to settle such differences, the TESDA secretariat or its
authorized representative shall investigate and render a decision pursuant to pertinent
rules and regulations.


SEC. 12, Appeal.- The decision of the TESDA Secretariat may be appealed by any
aggrieved person to the TESDA Board within five (5) working days from the receipt of
the decision. The decision of the TESDA Board shall be final and executory.

SEC. 13. Exhaustion of Administrative Remedies. - No person shall institute ony action for
the enforcement of any EBET agreement or payment of damages for breach of any
guch agreement, unless all available administrative remedies have been exhausted

SEC. 14. Compulsory Participation in EBET Program. - Enterprises shall be required to
provide the appropriate EBET program under the following circumstance’

(a) When national security or the requirements of | econonmc development so
Yemand. the President of the Philippines shall require EBET in certain trades,
Secupations, jobs or employment levels where the supply of trained manpowet
iS deemed critical, as determined by the TESDA Board, upon the
recommendation of its secretariat.

(6) In private companies which employ foreign technicians in enterprise-based training
occupations.

SEC. 15, Tax Exemptions. - All grants, bequests, endowments, donations, and contributions
made to the participating training institution to be used actually, directly and exclusively by the
participating training institution shall be exempt from donors tax and the sare shall be allowed
poriwabie deduction from the gross income of the donor for purposes of computa the
a ne income of the donor in accordance with the provisions of the National intemal Revenue
Code of 1997, as amended

SEC. 16, Exemption from Probationary Employment. - Certified EBET graduates shal! be
exempted from the rules applicable to probationary employment. They shall be employed as
reguiar workers if chosen to be retained by the participating enterprise, group or
‘association, industry organization, government institution or civic group.

EBET graduates shall likewise be awarded equivalent unit credits in the formal
system of education and which can be used in pursuing higher degree coNrion, subject
whe integrated policies and guidelines of equivalency and the adult education
teceleration program of the TESDA, Commission on Higher Education, and the
Department of Education.

SEC. 17. Insurance Coverage and Protection of Trainees. - Every participating enterprise,
group or association, industry organization, government institution and. civic group
undertaking training in accordance with the provisions of this Act shall provide life
aeiertaident. insurance coverage for every trainee: Provided, That the premium payments
‘of said insurance policy shall be bone by the establishment

SEC. 18. Implementing Rules and Regulations. - Within ninety (90) days after the effectivity
of this Act, the TESDA, in consultation with relevant stakeholders, shall issue the necessary
tules and regulations for the effective implementation of this Act.

SEC. 19. Separability Clause. — In the event any of the provisions of this Act is declared
unconstitutional, the validity of the other provisions shall not be affected by such declaration.

SEC. 20. Repealing Clause. - All laws, decrees, orders, rules and regulations or parts
thereof inconsistent with this Act are repealed or modified accordingly.

SEC. 21. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation
Approved,