FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
Senate Bill No. 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
The National Statistics Office said that two regions recorded a double-digit 
jobless rate, namely, National Capital Region (NCR) at 13.1 percent and Central Luzon 
at 11.5 percent. Apparently, unemployment is still a big problem in our country. 
As such, there is a need to identify the type of skills training projects which must 
be conducted. However, such endeavor should address the class of worker-trainee that 
will be catered. 
Projections in the drafted National Manpower Plan (NMP) revealed that about 
1.3M young workers aged 15 to 24 years old will need pre-employment training within a 
span of five years. On the average, about 255,000 young workers will have to undergo 
pre-employment training. Twenty two percent of these are elementary graduates and 
twenty one percent are high school graduates. 
A similar attention, although in a different degree of training, should also be given 
to workers who are dismissed due to financial failures or poor performance in their 
company. It is therefore imperative to formulate and implement strategies for skills 
training that will prepare workers for new skills adaptations, ensure their employment, 
and become world-competitive, 
Approval of this bill is therefore earnestly requested. 
"ILLY 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
__I.,.- 
S E N A T E  
Senate Bill No. 1x1 
INTRODUCED BY SEN. MANNY VJLLAR 
AN ACT 
INSTITUTIONALIZING SKILLS TRAINING AND RETRAINING 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as "Ski//s Training and 
SEC. 2. Declaration of Policy. - It is the declared policy of the State to affirm 
labor as a primary social economic force. It is also the policy of the State to provide 
adult citizens, the disabled and out-of-school youth with training in civics, vocational 
efficiency and other skills. 
Retraining Act of 2007. " 
Toward this end, it is the policy of this Act to formulate mechanisms designed to: 
(a) Provide adequate and relevant skills training and retraining programs to 
(b) Update the standard skills and introduce new crafts to prepare workers for 
SEC. 3. 
Skill Bulletin. - The Technical Education and Skills Development 
Authority (TESDA) in coordination with the Department of Trade and Industry shall 
maintain an updated list of needed skills categorized according to industry. 
The list shall be made publicly available every month at the Technical Education 
and Skills Development Authority, Department of Trade and Industry, and Department 
of Labor and Employment and their respective regional offices to ensure the labor group 
the information. 
SEC. 4. Reskilling of Displaced Workers. - Skills upgrading opportunities shall 
be immediately extended by the TESDA to workers who were dismissed due to an 
inevitable shutdown of their company or business establishment. 
address the requirements of the industry, and 
their employment and re-employment. 
The TESDA shall orient the dismissed workers with the skills listed in the Skills 
Bulletin stated in Section 3. 
Dismissed workers shall be required to present a notice of termination or any 
document that indicated their dismissal due to the shutdown, bankruptcy or other 
reasons which cause their company to cease business operations. 
The TESDA 
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Secretariat, however, shall verify the name of the company or business establishment to 
circumvent false claim from the worker. 
SEC. 5. Appropriations for Reskilling of Displaced Workers. - The amount of 
One Hundred Million Pesos (P 100,000,000.00) used for the funding of the Reskilling of 
Displaced Workers for a span of three (3) years shall be appropriated beginning the 
year following approval of this Act. 
SEC. 6. Pre-employment Training for the Youth - The TESDA shall formulqte 
training programs that will equip out-of-school youths (OSY) the necessary skills to 
prepare them for employment. Training fees shall cover only for the materials and 
equipment that will be utilized. 
The TESDA personnel involved in charging excessive fees to OSY trainees shall 
be subjected to disciplinary action. OSY trainees shall be encouraged to file their 
complaints to the TESDA administration. 
A company or business establishment which hired an OSY graduate shall duly 
recognize the certificate awarded to the OSY graduate and shall observe the 
employment conditions agreed. The hired OSY shall likewise report any violation 
committed by the business establishment or company to the DOLE 
SEC. 7. Training Women in No-Traditional Trades. -The TESDA shall provide 
a discount of at least ten percent (10%) on training fees as incentive to women who are 
willing to undergo training in non-traditional trades or women-applicants shall pay the 
said training fees upon employment. 
The Department of Labor and Employment through its job placement centers or 
public employment and service offices shall give priority in providing assistance to 
women who are graduates of non-traditional trades to find jobs. 
SEC. 8. Skills Training for Rural Non-Farm and Agricultural Productivity.- 
In a joint effort, the Department of Science and Technology (DOST) and the Department 
of Agriculture (DA) shall provide the latest and new technologies involved in agro- 
processing activities and farm-related activities. 
The TESDA in coordination with the DOST and the DA shall conduct the training 
in every region. 
SEC. 9. Appropriation for Skills Training for Rural Non-Farm and 
Agricultural 
Productivity - 
The amount of Two Hundred Million Pesos 
(P200,000,000.00) used for the funding of Skills Training for Rural Non-Farm and 
Agricultural Productivity for a span of four years shall be appropriated. 
SEC. I O .  Skills Training for Export Oriented Small and Medium Scale 
Enterprise (SMEs). - The DOLE through its livelihood programs shall give priority on 
training for workers that will be employed in export-oriented SMEs. 
The DOLE in coordination with the DTI shall provide pointers on the latest export 
champions to prepare prospective entrepreneurs on the kind of product to venture in. 
SEC. 11. Appropriation for Skills Training for Export Oriental Small and 
Medium Scale Enterprise (SMEs). - The amount of Sixty Five Million Pesos 
(P65,000,000.00) used for the funding of Skills Training for Export Oriented Small and 
Medium Scale Enterprise (SMEs) for a span of three (3) years shall be appropriated for 
the following year upon approval of this act. 
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SEC. 12. Penalties. - In the event that the aforementioned appropriations were 
not utilized in the manner stated in the given provisions, the guilty party shall be 
punished by a fine not exceeding Ten Thousand pesos (PfO,OOO.OO) or by imprisbnment 
of not more than four (4) years, or both such fine and imprisonment. 
SEC 13. Separability Clause. - The provisions of this Act are hereby declared 
separable and in the event any of such provisions is declared unconstitutional, the other 
provisions which are not affected thereby shall remain in force and effect. 
Repealing Clause. - All other laws, decrees, executive orders, 
administrative orders, rules and regulations or parts thereof which we inconsistent with 
the provisions of this Act are hereby repealed, amended or modified accordingly. 
SEC. 15. Effectivity. - This Act shall take effect upon its publication in at least 
two (2) newspaper of general circulation, whichever comes earlier 
SEC. 14. 
Approved, 
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