Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _1259

Introduced by HONORABLE LUIS RAYMUND F. VILLAFUERTE, JR.

EXPLANATORY NOTE

This jurisdiction has long recognized the importance of providing our labor force
with opportunities to improve their skills for a fee, especially in the highly
technical fields that require actual hands-on training and experience. Hence,
Presidential Decree No 442 or the Labor Code of the Philippines expressly
includes Chapters on Apprenticeship and Leadership opportunities for Filipinos.

Upon close review of Chapters, | and Il, Title Il of the Labor Code, we observe
that they no longer meet the needs and realities of our labor force. The proposed
bill therefore incorporates the involvement of the Technical Education and Skills
Development Authority (TESDA). As the country’s primary Technical Vocational
Education and Training (TVET) authority, TESDA regularly performs studies to
determine the most marketable technical skills for Filipinos, and develops
courses independently or in partnership with accredited bodies. TESDA also
maintains a database of certified workers, technology institutions and training
regulations. Through TESDA's involvement, the bill seeks to ensure that our
apprentice candidates are protected from exploitative and/or incompetent
training bodies and practices.


This bill also provides an insurance mechanism for apprentices who encounter
accidents resulting to injuries or disabilities in performance of their
apprenticeship or training tasks. It is the fervent hope of the bill to make
apprenticeship programs more attractive to candidates and industries alike to
reduce the mismatch between the skills and jobs available, and ultimately, to
increase the employment rate of the country.

In consideration of the foregoing premises, the passage of this bill is urgently sought.

yh

RAYMUND F. WILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 1259

Introduced by HONORABLE LUIS RAYMUND F. VILLAFUERTE, JR.

AN ACT PROVIDING FOR A REVISED APPRENTICESHIP
PROGRAM, REPEALING FOR THE PURPOSE CHAPTERS | AND
Hl OF TITLE Il OF
PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES

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 "Revised Apprenticeship
Program Act."

Section 2. Declaration of Policy. — It is hereby declared the policy of the State to
establish a reformed apprenticeship program that will ensure the availability of
qualified manpower in the field of critical and in-demand technical skills through
the active participation of all workers, enterprises, government agencies, and
nongovernmental organizations concerned.

Section 3. Statement of Objectives. — This Act aims to:


A. Help meet the demand of the economy for trained human resource;
Have a national apprenticeship program that includes on- and off-the job
training components with tripartite involvement;

C. Promote the engagement of young workers through training and
development;

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D. Enhance existing standards for the training and development of
apprentices;

E. Recognize the indispensable role of private enterprises in the training and
development of human resource;

F. Strengthen the advocacy on the apprenticeship training program to
encourage the participation of enterprises and young workers;

G. Increase productivity and competitiveness of enterprises by ensuring the
availability of skilled human resource; and

H. Hamess corporate social responsibility towards the development of skilled
manpower to meet the requirements of industries;

Section 4. Definition of Terms. — As used in this Act;

A. Apprentice refers to a person undergoing training for an approved
apprenticeship occupation during an established period governed by an
apprenticeship contract;

B. Apprenticeship refers to a training within an enterprise involving a contract
between an apprentice and an enterprise on an approved apprenticeable
occupation;

C. Apprenticeable occupation refers to an occupation officially endorsed by a
tripartite body and approved for apprenticeship by the Technical Education
and Skills Development Authority (TESDA);

D. Apprenticeship contract refers to an agreement wherein an enterprise
binds itself to train the apprentice who in turn accepts the terms of training
for the recognized apprenticeable occupation. It also contains the rights,
duties, and responsibilities of each party;


E. Bipartite plant apprenticeship committee refers to a group established by
the enterprise composed of representatives of labor and management
responsible for monitoring program implementation, setting 3 differences
between management and apprentices, and recommending measures for
effective program implementation.

F. Certificate of Competency refers to a document issued by the TESDA to
individuals who are assessed as competent in cluster related
competencies.

G. Certificate of Technical-Vocational Education and Training (TVET)
Program Registration refers to a document issued by the TESDA granting
an authority to an enterprise of offer in an apprenticeable occupation;

H. Cluster of competencies refers to a group of related competencies that,
while it does not satisfy the requirements of a full qualification, stil
constitutes an employable package and can be awarded a Certificate of
Competency;

L.Competency assessment refers to the process of gathering and judging
every evidence in order to decide whether a person has achieved a
standard of competency;

J. Competency standard refers to a written specification of the knowledge,
skills, attitude and values required for the performance of a job, occupation
or trade and the corresponding standard of performance required in the
workplace;

K. Dual Training System refers to a delivery system of quality technical and
vocational education which requires training to be carried out alternately in
two (2) venues: in school and in the production plant. In-school training
provides the trainee the theoretical foundation, basic training, guidance
and human formation, while in-plant training develops the trainee’s skills
and proficiency in actual work conditions as it continues to inculcate
personal discipline and work values;


L. Enterprise refers to a participating establishment that directly engages an
apprentice based on an approved apprenticeship program;

M. Qualification refers to a package of competencies describing a
particular function or job role existing in an economic sector covering the
work activities required to undertake a particular job;

N. Training plan refers to the specification for the apprenticeship program of
an enterprise which describes all the leaming experience a student
undergoes generally including the competencies to be acquired within the
Program, the underpinning knowledge, theories and principles, and the
assessment arrangement; and

O.Unit of Competency refers to an activity that comprises a manageable
component of work described in terms of elements, performance criteria,
range of variables and evidence guide.

Section 5. Qualifications of an Apprentice. — To qualify as an apprentice, a
person must:

A. Be at least fifteen (15) years of age;

B. Possess good moral character, vocational aptitude and capacity for
apprenticeship as determined by the enterprise; and

C. Have the ability to comprehend and follow oral and written instructions.
Trade, industry and labor organizations may recommend to the TESDA
appropriate educational requirements for different occupations.

Section 6. Aptitude Testing of Applicants. — Consistent with the minimum
qualifications of an apprentice under Section 5 hereof, the bipartite plant
apprenticeship committees shall have the primary responsibility of providing
appropriate aptitude examinations in the selection of apprentices.


Section 7. Training of Apprentices. — Only enterprises with programs registered
with the TESDA may enter into apprenticeship contracts and train apprentices in
approved apprenticeable occupations.

Section 8. Apprenticeship Training Program Content and Delivery. — All
qualifications with training regulations promulgated by the TESDA Board are

automatically classified as apprenticeable. To meet the immediate requirements
of enterprises for skilled workers, the TESDA Board must approve new
apprenticeable occupations endorsed by the appropriate Regional Technical
Education and Skills Development Committee upon consultation with workers’
groups and industry representatives.

The apprenticeship program shall emphasize the need for theoretical instruction.
The enterprise may seek partnership with a TVET institution in its design and
delivery.

Section 9. Apprenticeship Period. — The apprenticeship period shall be based
on the duration of training required in the training plan and on the complexity of
the skills to be learned by the apprentices shall not exceed two (2) years

The Training plan, which should be approved by TESDA, should be the
controlling basis for the duration of the training program.

Section 10. Apprenticeship Program Registration. — The registration of an
apprenticeship program can be for a qualification, a cluster of competencies, or
bundled qualifications as contained in the training regulations. A letter of
application stating the intention, certificate of undertaking, and the training plan
shall be submitted to the TESDA for approval. A Certificate of TVET Program
Registration shall be issued to the enterprise to signify authorization for specific
qualification or competency clusters.

An apprenticeship program may be approved on a no-training regulations basis
provided hat the applicant enterprise can show proof of the demand for such skill

The TESDA shall provide technical assistance of applying and implementing
enterprises to be able to comply with the provisions of this section.


Section 11. Contents of the Apprenticeship Contract. — The apprenticeship
contract must conform with the rules issued by the TESDA and shall include the
following:

A. Nature, syllabus, timetable, and purpose of training;

2

. Period of training, depending on the approved training regulations;

C. Training allowances prescribed by industry subsectors through tripartite
consultations which in no case shall start below seventy-five percent
(75%) of the applicable minimum wage: Provided, however, That
contributions to the training allowance by government agencies and/or
non-govemmental organizations shall be considered in computing the
seventy-five percent
(75%);

D. Schedule of training allowance payment;

m

. Training hours;

m

. Process for the termination of apprenticeship; and

G. General rights and obligations of both parties.

Section 12. Signing of the Apprenticeship Contract. — Every apprenticeship
contract shall be signed by the apprentice and the enterprise, recognized
organization, association or group or their authorized representatives.

‘An apprenticeship contract with a person under eighteen (18) years of age shall
be signed by the parent of guardian of said person or, if the latter is not available,
by an authorized representative. The contract shall be binding during its lifetime,
subject to the right of the apprentice to terminate the same after a month's notice.

Every apprenticeship contract entered into under this Act shall be approved by
the bipartite plant apprenticeship committee involving the firm owners and


representatives of the firm workers. Copies of the apprenticeship contract shall
be furnished the firm owner and the apprentice.

Section 13. Apprenticeship Models. — Enterprises with approved apprenticeship
programs may choose from any of the following apprenticeship models which
may use the Dual Training System Approach:

(A) Apprenticeship involving a company and an identified training
institution;

(B)Apprenticeship involving a group of companies and a training institution;

(C)Apprenticeship involving an industry training center and a company or a
group of companies; or

(D) Other schemes to be established by the TESDA in consultation with
enterprise owners, labor and training institutions subject to the approval of
the TESDA Board.

Section 14. Apprenticeship Administrations . - The TESDA Board shall be
responsible for setting up the overall apprenticeship policy and standards. The
TESDA Secretariat shall be responsible for apprenticeship administration,
monitoring and evaluation of on- and off-the-job training.

Section 15. Investigation of Violation of Apprenticeship Contract. — The
Bipartite Plant Apprenticeship Committee, motu proprio or upon complaint of any
interested party, shall have the initial responsibility of settling differences arising
out of apprenticeship contracts.

In case it is not able to settle such difference, the TESDA Provincial Director
shall investigate and submit a recommendation to the TESD Regional Director
Who shall render a decision pursuant to pertinent rules and regulations as may
be prescribed by the TESDA Board.

Section 16. Appeal to the TESDA Director General. — The decision of the
TESDA


Regional Director may be appealed by any aggrieved person to the TESDA
Director General within five (5) days from receipt of the decision. The decision of
the TESDA Director General shall be final and executory.

Section 17. Termination of Apprenticeship. — Valid causes to terminate the
apprenticeship contract:

A. By the enterprise:

(1.) Habitual absenteeism in on-the-job training and related theoretical
instructions activities;

(2.) Willful disobedience of company rules or insubordination of lawful order of
a superior;

(3.) Poor physical condition, prolonged illness, or permanent disability which
incapacitates the apprentice from working;

(4.) Theft or malicious destruction of company property or equipment;

(5.) Inefficiency, or poor performance on the job, or in the classroom for a
prolonged period despite warning duly given to the apprentice; and

(6.) Engaging in violence or other forms of misconduct inside the enterprise's
premises.

B. By the Apprentice:

(L) Substandard or harmful working condition within the enterprise's premises;

(2.) Repeated violations by the enterprise of the terms of the apprenticeship
agreement;

(3.) Cruel and inhumane treatment;


(4.) Personal problem which in the opinion of the apprentice shall prevent the
satisfactory performance of the job by the apprentice; and

(5.) Bad health and continuing illness.

Section 18. Rules and Procedure on the Termination of the Apprenticeship.
A. Apprenticeship Committee Level:

(1.) The enterprise or apprentice interested in terminating the contract may do
so by notifying first the Bipartite Plant Apprenticeship Committee;

(2.) The Committee confers with both parties and mediates the differences
between them; and

(3.) If mediation or settlement is not possible, the Committee advises the
complainants to apply for the termination at the Regional Office concerned

B. Regional Level:

(1.) The complainant verbally presents the case to TESDA Regional Office. If
the complaint merits consideration, the complainant is made to duly
accomplish an Application for Termination of Apprenticeship form;

(2.)The concerned unit of division of the TESDA Regional Office verifies the
veracity and validity of the claim within five (5) days from receipt by:

i. Calling both the enterprise and the apprentice for a conference; or ii
Sending a representative to the enterprise for that purpose.

(3.)In case a ground for approval exists:


i. The investigating officer (field representative) shall initiate the application
for termination; ii. The chief of the concerned unit of division of the TESDA
Regional Office shall verify the same;
il, The application for termination shall immediately be forwarded to the
Regional Director for appropriate action, after which a copy of the
acted 10 upon application shall be furnished the applicant and the second
party. This process shall be completed within three (3) days from receipt of
the document by the office of the concerned Regional Director; and iv. A
copy of each approved application shall be furnished the concerned office
of the TESDA.

C. Agency Level: If either of the parties is not satisfied with the decision of the
Regional Director, the case may be appealed within the reglementary
period of five (5) days from the receipt of the document to the TESDA
Director General, whose decision shall be final and unappealable.

Section 19. Competency Assessment and Certification. — The apprentices shall,
within the apprenticeship period, undergo competency assessment for
qualifications to the training regulations. A national certificate shall be issued to
all those who demonstrated achievement of the competency standards.

Section 20. Training Certificate. — A training certificate shall be issued by the
authorized enterprise to signify completion of the apprenticeship program in
accordance with the approved training design. The certificate shall contain a list
of the units of competency acquired and shall be comparable to completion of a
training program in a TVET institution.

Section 21. Compulsory Apprenticeship. — When the national security or
particular requirements of economic development so demand, the President of
the Republic of the Philippines shall require compulsory training of apprentices in
certain trades, occupations, jobs or employment levels where shortage of trained
manpower is deemed critical as determined by the TESDA Board.

Section 22. Incentives. — An additional deduction from the gross income of
one-half (1/2) of the labor training expenses incurred from developing the
productivity and efficiency of apprentices shall be granted to the person or
enterprise organizing an apprenticeship program:


Provided, That the employer shall be exempt from the payment of the
apprenticeship fee and that such program shall be recognized by the TESDA:
Provided, further, That such deduction shall not exceed 10% of the training
allowance of the apprentices: Provided, finally, That the enterprise that wishes to
avail of this incentive shall pay its apprentices the minimum wage. Micro-cottage
and small enterprises with less than one hundred (100) employees shall be
‘exempt from paying the apprenticeship fee.

Section 23. System of Equivalency. — Apprenticeship shall be awarded
equivalent unit credits in the formal system of education that can be used in
pursuing tertiary degree courses subject to the integrated policies and guidelines
on equivalency and Adult Education Acceleration Program of the TESDA, the
Commission on Higher Education (CH ED) and the Department of Education
(DepEd),

Section 24. Insurance for Apprentices. — Every participating enterprise, group or
association, industry, organization, govemment institution or civic group
undertaking training in accordance with the provisions of this Act shall provide a
disability or accident insurance in policy in favor of the trainee or apprentice
during the apprenticeship period.

Section 25. Penalty Clause. Enterprises found offering unregistered
apprenticeship programs shall be subjected to program closure proceedings
without prejudice to the filing of administrative, criminal, or civil liabilities. The
TESDA Board may file the necessary civil or criminal case as may be deemed
reasonable and appropriate and after the deliberation of the TESDA Board
pursuant to this Act for any of the following causes:

(A.)Fraud or deceit committed in connection with the application for the
‘opening of apprenticeship programs; and

(B.) Failure to comply with conditions or obligations prescribed under this Act
or its implementing rules and regulations. Any violation of the provisions of
this Act or its implementing rules and regulations shall be punished with a
fine of not less than one thousand pesos (P 1,000.00) nor more than ten

thousand pesos (P 10,000.00) or imprisonment, at the discretion of the
court.


Section 26. Transitory Provision. — All existing apprenticeship programs and
training regulations shall be valid until after the TESDA has conducted an
assessment and revalidation for consistency with the provisions of this Act and
its implementing rules and regulations.

Section 27. Abolition of the Leamership Program. — To rationalize and ensure
the effective implementation of the Reformed Apprenticeship Program, the
Leamership Program is hereby abolished.

Section 28. Implementing Rules and Regulations. — The TESDA Board shall
issue the implementing rules and regulations within ninety (90) days after the
effectivity of this Act.

Section 29. Repealing Clause. — Chapters | and II of Title Il of the Presidential
Decree No. 442, as amended, otherwise known as the Labor Code of the
Philippines, are hereby repealed. Executive Order No. 111, series of 1986,
Republic Act No. 7796 or the "TESDA Act of 1994" and all other laws,
presidential decrees, issuances, executive orders, letters of instruction and rules
and regulations contrary of inconsistent with the provisions of this Act are hereby
amended accordingly.

Section 30. Separability Clause. — If any provision of this Act is held invalid or
unconstitutional, the same shall not affect the validity and effectivity of the other
provisions hereof.

Section 31. Effectivity. — This Act shall take effect fifteen (15) days after the
publication in the Official Gazette or in a newspaper of general circulation.

Approved,