j HOUSE REPRESENTATIVES
i RECEIVED
republic ofthe Pitppines | Dove 09 AUG 201

HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS | e063 iri,
BILLS AND inst xy)

Tue

iNT

ERVICE

First Regular Session
2740

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE PETER 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 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 victims are our poor nurse 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 wore, 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

SEVENTEENTH CONGRESS

First Regular Session

HOUSE BILL NO.* ‘7!

INTRODUCED BY REPRESENTATIVE PETER M. UNABIA

AN ACT
INSTITUTIONALIZING THE GRANTING OF MONTHLY ALLOWANCE TO
TRAINEES OR APPRENTICES IN THE PUBLIC AND PRIVATE SECTORS AND
PROVIDING PENALTIES FOR ANY VIOLATION THEREOF

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 “Training
allowance Institutionaiization Act of 2013.”

SECTION 2. Deciaration 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.

SECTION 3. Definition of Terms.- As used in this Act, the following terms
‘shail 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.

SECTION 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.



SECTION 5. Contract of Training. — No employer shall engage the services
of a trainee or apprentice unless a Contract of Training containing therein the
specific job and work station, 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.

SECTION 6. Rules and Regulations. - The Department of Labor and
employment (DOLE) shall issue the necessary rules and regulations to implement
the provisions of this Act.

SECTION 7. Penalty. — A penalty of imprisonment for sic (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.

SECTION 8. 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.

SECTION 9. Effectivity Clause. — This Act shall take effect fifteen (15) days
after its publication in any newspaper of general circulation

Approved,