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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City DATE: AR 24 2017
SEVENTEENTH (17TH) CONGRESS i:
First Regular Session

House Bi No, 9483

Introduced by: Rep. Bernadette Herrera-Dy

“AN ACT TO STRENGTHEN TECHNICAL VOCATIONAL EDUCATION AND
TRAINING (TVET) IN THE PHILIPINES BY INCORPORATING
APPRENTICESHIP AND DUAL TRAINING AND RECOGNIZING THE
IMPORTANCE OF CONTINUOUS TRAINING OF THE UNEMPLOYED AND
EXPANDING THE PROVISION OF ENTERPRISE-BASED EDUCATION AND
TRAINING”

EXPLANATORY NOTE

The Technical Vocational Education and Training (TVET) provides education and
training opportunities to students and the Philippine labor force. It addresses skills training,
skills upgrade, and development of new competencies that enhances employability and
improves productivity.

A report from the Department of Education (DepEd) indicates that there is a huge
market that needs TVET. It is comprised primarily of high school graduates, secondary school
leavers, college undergraduates, and graduates who want to acquire competencies in different
occupational fields. Other potential enrollees are unemployed persons who are actively looking
for work, returning overseas Filipino workers (OFWs), and workers who were displaced due
to closure of establishments and retrenchments.!

Overtime time, there has been a steady rise of TVET enrollees who have been assessed,
certified, and employed.” These is notable in areas where there is active employer and TVET.
enrollee participation in both on-the-job and off-the-job trainings. This finding points to a
greater focus on private sector participation in skills development as an essential alternative
route to training and employment.

The alignment of TVE with employer demand is imperative. It is crucial to the
development of qualified workers and the reduction of potential skills shortages.

" http://www.tesda.gov. ‘ph/uploads/file/Phil%20T VET%20system%20-%20syjuco.pdf
7 ‘http://anesdoc-unesco.org/images/0023/002303/23033 le pdf


This bill is a response to the necessity of involving the private sector in the
provision of skills(1)to help meet the demand of the economy for well-trained manpower;
(2) to establish a national enterprise-based training system that is competency-based,
including an on-the-job and off-the-job training program through a tripartite participation
of employers, workers, and government; (3) to establish enterprise-based training
standards to ensure that our trainees will acquire the right competencies and for the
protection of the rights and safety of trainees; and (4) to broaden the opportunities, venues
of education, and training, towards greater access.

This bill can help the government continue to rise up and meet the changing
needs of the market, link with public and private sector partners, and put in place good
governance practices that can expand partnerships with industry associations and
companies through enterprise-based training. Ensuring that employers are fully engaged
in TVET also bridges the gap between institutional policy and the practical reality of
matching qualified workers with appropriate skill requirements.

This bill builds upon and borrows from Senate Bill No. 208 filed before the Senate of
the Philippines in the 17" Congress.

In view of the foregoing, its immediate passage is earnestly sought.


CeUAMVaUNe

BERNADETTE HERRERA-DYRepublic of the Philippines
HOUSE OF REPRESENTATIVES

‘Quezon City

SEVENTEENTH (17TH) CONGRESS
First Regular Session

Howse Bat No,» 488

Introduced by: Rep. Bernadette Herrera-Dy

AN ACT TO STRENGTHEN TECHNICAL VOCATIONAL EDUCATION AND
TRAINING (TVET) IN THE PHILIPINES BY INCORPORATING
APPRENTICESHIP AND DUAL TRAINING, RECOGNIZING THE

IMPORTANCE OF CONTINUOUS TRAINING OF THE UNEMPLOYED, AND

EXPANDING THE PROVISION OF ENTERPRISE-BASED EDUCATION AND

TRAINING

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

SECTION 1. Short Title —
Education and Training Act of 2017."

is Act shall be known as the "Enterprise-Based

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State
to enhance the skills of middle-level workforce of the entire nation. The State seek to
strengthen middle-level manpower education and training in the country and to promote
employment so that it can be assured an ever-growing supply of educated and skilled
globally competitive manpower equipped with appropriate skills and desirable work habits
and attitudes in accordance with the requirements that meet the demands and standards
of the workplace in the market. The policy recognizes two paths of education and
training, namely: for developing and upgrading the skills of studentitrainee in a
technologically changing world and for providing relevance in the training of
studentitrainee by encouraging work experiences as valid part and means of education
and training.

The recognition of the two paths of education and training will greatly contribute
to the creation of a dependable pool of well-trained middle-level workforce in the
country.

‘SEC, 3. Statement of Objectives — This Act shall have the following objectives:

a. To help meet the demand of the economy for well-trained manpower through
Technical Vocational Education and Trainis


. To establish a national enterprise-based training system and standards that is

competency-based, including an on and off-the job training program through the
participation of employers, workers, and government;

. Toestablish enterprise-based training standards to ensure that the trainees will

acquire the right competencies and for the protection of the rights and safety
of the trainees.

|. To broaden the opportunities, venues of education, and training towards greater

access for all workers.
SEC. 4. Definition of Terms. — As used in this Act:

. “Enterprise-Based Training Program" means practical training with compulsory

related theoretical instructions conducted on and off- the job involving an agreement
betwee trainee and an enterprise on an approved enterprise-based training
qualification. The duration of the program shall be based on the complexity of
the competencies to be leamed in the specific qualification,

“Enterprise-Based Trainee/Student" is a person undergoing training for an
approved enterprise-based education and training qualification in an established
period assured by an enterprise-based education and training agreement.

- "Enterprise" is any entity organized with profit or non-profit aims, regardless of the

nature of the product or service it provides, and includes any group or association,
industry organization, organization companies, association of single proprietorships,
leagues or groups of government instrumentalities or local government units, or civic
and non-profit groups of whatever nature and kind.

enterprise, group or association, industry organization, government institution or
civic group

"Enterprise-Based Training Agreement Between Emerprise and Trainee" is a
contract 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
emphasizing the rights, duties and responsibilities of each party.

. "Emerprise-Based Education and Training Qualification" is a qualification

approved for enterprise-based education and training by the TESDA Board.
Qualification refers to the whole range of competencies a person possesses.

“Enterprise-Based Education and Training Fund" is a fund to be used to defray
expenses of the trainees and other expenses related to the implementation of
Enterprise-Based Training program.

"Competency Standards" are 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.


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h. "Competency Assessment" is the process of gathering and judging evidence in
order to decide whether a person has achieved a standard of competency of
competence objective.

i. "Dual Education and Training" refers to the combination of on and off-the-job
training involving an enterprise and a training institution.

i. "Period of Education and Training” states when the training commences and
terminates.

k. "Nominal Duration of Education and Training" is the estimated number of
training hours.

SEC. 5. Minimum Trainee Entry Requirements for Qualifications of an
Enterprise-Based Education and Training - To qualify as an enterprise-based
student/trainee, a person shall, at a minimum:

a. Be at least a high school graduate or its equivalent;

b. Possess vocational aptitude and capacity for enterprise-based training as established
through appropriate testing; and

¢. Possess the ability to comprehend and follow oral and written instructions.

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

SEC. 6. Aptitude Testing of Applicants — Consonant with the minimum
qualifications of the enterprise-based trainee applicant required under this Act, the
enterprises, groups or associations, industry organizations, government institutions or civic
groups with duly recognized enterprise-based training programs shall have the primary
responsibility for providing appropriate aptitude tests in the selection of trainees. If they
do not have adequate facilities for the purpose, the TESDA may perform the service
free of charge.

SEC. 7. Scope of Training and Coverage of Venues — An enterprise, group
or association, industry organization, government or civic group wishing to organize an
enterprise-based training program shall have its program registered with TESDA before
it enters into an agreement with the trainees.

This Act shall apply to all work related or workplace related training regardless
of the following seven (7) modalities: (a) Apprenticeship; (b) Leamership; (c) On the
Job Training (OJT); (d) Practicum; (e) Work Appreciation Program; (f) Dual Training
System; (g) Internship.

SEC. 8. Contents of Enterprise-Based Training Agreement. — Enterprise-Based
Training Agreements shall conform to the rules issued by the TESDA and shall include
the following:

a. Nature and purpose of training;


b. Curriculum;
©. Period of training;

4. Training allowance equivalent to seventy-five percent (75%) of the existing
minimum wage which can be paid in cash or kind or in both;

©. Schedule of training allowance payments;
£. Process of termination of enterprise-based training; and
g- General rights and obligations of both parties.

SEC. 9. Signing of Enterprise-Based Training Agreement — Every enterprise-
based education and training agreement shall be signed by the employer or his agent,
or by an authorized representative of any of the recognized organizations, associations,
government institutions or civic groups, and by the student/trainee.

An enterprise-based training agreement with a minor shall be signed on his
behalf by his parent or guardian or, if the latter is not available, by an authorized
representative of TESDA, and the same shall be binding during its lifetime.

SEC. 10. Enterprise-based Education and Training Arrangements — A
registered enterprise, group or association, industry organization, govement institution
or civic group wishing to organize the enterprise-based education and training program
shall choose from any of the following enterprise-based training schemes, which shall
uuse the dual education and training approach:

a. Enterprise-based education and training involving a company or entity and an
identified technical vocational institution;

b. Enterprise-based education and training involving a group of companies/entities
and a technical vocational institution;

¢. Enterprise-based education and training involving an industry training center and
 company/entities or a group of companies/entities;

SEC. 11. Responsibility for Theoretical Instruction — Compulsory theoretical
instructions shall be part of enterprise-based education and training program. In cases
where the program is undertaken in the plant, theoretical instructions may be given by
the enterprise. Ifthe latter is not prepared to assume the responsibility, the same may
be delegated to an appropriate government agency.

SEC. 12. Enterprise-Based Education and Training Administration - The
overall policy for enterprise-based education and training shall be the function of the
TESDA Board. The responsibility for enterprise-based training administration, monitoring
and evaluation of on and off-the-job training shall be the concem 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

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responsibility of industry associations, labor groups, and TESDA. The Plant Enterprise-
Based Education and Training Committee shall be established in every participating
enterprise to ensure that program implementation is in accordance with approved policies.

SEC. 13. Investigation of Violation of Enterprise-Based Training Agreement—
The Industry Coordinator, upon complaints of any interested party or motu propio, shall
have the initial responsibility for settling differences arising from enterprise-based training
agreements. Incase it 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. 14. Appeal to the TESDA Secretariat - The decision of the TESDA
Secretariat may be appealed by any aggrieved person to the TESDA Board within five
(5) days from receipt of the decision. The decision of the TESDA Board shall be final and
executory.

SEC. 15. Exhaustion of Administrative Remedies. — No person shall institute any
action for the enforcement of any enterprise-based training agreement or damages for
breach of any such agreement, unless he has exhausted all available administrative
remedies.

SEC. 16. Conditions as Exemptions for Voluntary Participating Organization of
Enterprise-Based Training Program:

a. When national security or particular requirements of economic development
so demand, the President of the Philippines may require compulsory enterprise-
based education and training in certain trades, occupations, jobs or
employment levels where storage of trained manpower is deemed critical as
determined bythe TESDA Board upon the recommendation of its Secretariat.

b. Where services of foreign technicians are utilized by private companies in
enterprise-based training occupations, such companies are required to set-up
appropriate enterprise-based education and training programs.

SEC. 17. Enterprise-based Education and Training Fund. — An Enterprise-
Based Education and Training Program Fund shall be established to defray the expenses
of the trainees and other expenses related to the implementation of the enterprise-based
training program. The fund shall be derived from the following:

@. One percent (1%) of passport fees collected from departing Overseas Filipino
Workers (OFWs);

b. One-time fee paid by the graduates of the enterprise-based training program upon
employment to be paid through the SSS; and

¢. Donations, grants and endowments specifically for the enterprise-based training
Programs.


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SEC. 18. Enterprise-based Education and Training Incentives. - Participating
Enterprises, Groups or Associations, Industry Organizations or Civic Groups participating in
the enterprise-based training program shall be granted the following incentives:

a. An additional deduction from taxable income equivalent to fifty percent (50%)
of the training expenses incurred provided that such expenses shall not exceed
five percent (5%) of their total direct labor expenses but in no case exceed
twenty-five million pesos (25,000,000) a year;

b. Donations, contributions, bequest, subsidy or final aid actually paid or made
to a participating training institution within the taxable year shall also be
deductible for income tax purposes in an amount not to exceed five percent
(5%) of the taxable business income of the participating enterprise, group or
association, industry organization or civie group computed without the benefit
of deduction; and

¢. Exemption from donor's tax, provided, however, that not more than thirty
percent (30%) of said donations shall be used by the training institution for
administration purposes.

SEC. 19. Exemption from Probationary Employment; System of Equivalency.
— Certified enterprise-based training graduates shall be exempted from the rules applicable to
probationary employment. They shall be employed as regular workers if chosen to be retained
by the participating enterprise, group or association, industry organization, government
institution or civic group.

Enterprise-Based Training graduates shall likewise be awarded equivalent unit
credits in the formal system of education and which can be used in pursuing tertiary
degree courses, subject to the integrated policies and guidelines of equivalency and adult
education acceleration program of TESDA, Commission on Higher Education (CHED)
and Department of Education (DepEd).

SEC. 20. Insurance Coverage and Protection of Trainees - Every participating
enterprise, group or association, industry organization, government institution or civic
group undertaking training in accordance with the provisions of this Act shall sign a
life and/or accident insurance policy.

SEC. 21. Responsibility for Work Site Safety - Every agricultural, industrial,
medical and business establishment undertaking training in accordance with the provisions
of this Act, shall sign a fife and/or accident insurance policy on the life of the trainee
as insured and the spouse, children or parents of the trainee as the beneficiaries thereof:
Provided, that the agricultural, industrial and business establishments shall pay for the
premium of said insurance policy.

SEC. 22, Repealing Clause, — All laws, decrees, orders, rules and regulations
or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 23. Effeetivity. - This Act shall take effect after completion of its
publication in the Official Gazette or in two (2) newspapers of general circulation.


wee

Approved.