Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
PROVIDING FOR A REVISED NATIONAL APPRENTICESHIP PROGRAM, 
CLARIFYING THE STANDARDS FOR TRAINING AND ENGAGEMENT OF 
APPRENTICES AND ACCREDITATION OF APPRENTICESHIP PROGRAMS, 
REPEALING FOR THE PURPOSE CHAPTERS I AND II OF TITLE II, BOOK ll 
OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE 
KNOWN AS THE LABOR CODE OF THE PHILIPPINES, 
AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
In 2016, President Rodrigo Roa Duterte signed the Executive Order 5 
which adopts the five-year long-term vision entitled AmBisyonNatin 2040 as a 
guide for development planning. The AmBisyonNatin 2040 initiated by the 
National Economic and Development Authority (NEDA) represents the 
aspirations of the Filipino people and describes the kind of life that people want 
to live, as well as how the country will look like by 2040. 
According to the studies supporting the AmBisyonNatin 2040, 79% of 
Filipinos aspire for a simple and comfortable life which includes having 
opportunities for good quality employment without leaving the country. 
One of the challenges hindering the country from achieving the vision is 
unemployment. As of March 2022, the Philippine Statistics Authority recorded 
that the unemployment rate in the country is at 5.8 percent. While there are 
thousands of jobs available for Filipinos, many of them do not possess the 
required qualifications for these opportunities. 
This bill seeks address the job-skill mismatch in the country and reform 
the existing national apprenticeship program by providing the youth with the 
appropriate skills and access to employment. A worker who is at least 15 years 
July 11, 2022
8:00 am
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of age is qualified to be an apprentice. The proposed apprenticeship law 
recognizes the advantages of work-based training which allows our young 
workers to learn from experienced workers. 
The proposal also sets the duration of the training according to the 
complexity of the skills to be learned by the apprentices, thus expanding the 
maximum training period of six (6) months under the existing 
apprenticeship programs. The proposed apprenticeship program provides 
young apprentices with the opportunity to earn while they learn as they are 
entitled to a training allowance which should not be below 75 percent. 
The bill also introduces a provision on the issuance of training certificates 
to apprentices who have completed the apprenticeship program comparable 
to the completion of a training program in a Technical-Vocational Education 
and Training institution, and the award of equivalent unit credits in the 
formal system of education. The apprentice may use the National Certificate 
should he desire to pursue tertiary education. 
As for the participating enterprises, they are entitled to get an 
additional deduction from the taxable income equivalent to one half of the value 
of training expenses incurred for developing the productivity and efficiency of 
apprentices. 
This initiative will not only increase the employability of the youth but 
will also provide Philippine enterprises with a mechanism to ensure a 
continuous supply of skilled workers. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
REP. PM VARGAS   
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
PROVIDING FOR A REVISED NATIONAL APPRENTICESHIP PROGRAM, 
CLARIFYING THE STANDARDS FOR TRAINING AND ENGAGEMENT OF 
APPRENTICES AND ACCREDITATION OF APPRENTICESHIP PROGRAMS, 
REPEALING FOR THE PURPOSE CHAPTERS I AND II OF TITLE II, BOOK ll 
OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE 
KNOWN AS THE LABOR CODE OF THE PHILIPPINES, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:  
SECTION 1. Short Title. - This Act shall be known as the "National 
Apprenticeship Program Act."  
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the 
State to establish an apprenticeship program that will ensure the availability 
of qualified human resource in critical, in-demand and hard-to-fill 
occupations through the participation of employers, workers and 
government agencies and non-government agencies.  
SECTION 3. Statement of Objectives. - This Act aims to: 
a) Help meet the demand of the economy for best-fit. competitive and
trained human resource;
b) Have a national apprenticeship program that includes on and off-the-
job training components with tripartite involvement;
c) Promote full employment of youth and young workers through training
and development;
d) Enhance existing standards for the training, development and
employability of apprentices;
e) Recognize the indispensable role of private enterprises in training and
development
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f) Strengthen advocacy of the apprenticeship training program to 
encourage enterprise and young workers' participation; 
g) Increase productivity and competitiveness of enterprises by ensuring 
availability of skilled human resource; and harness Corporate Social 
Responsibility (CSR) towards the development of skilled human 
resource to meet the requirements of the industries. 
 
SECTION 4. Definition of Terms. - For purposes of this Act, the following 
terms are hereby defined:  
 
a) Apprentice refers to a person undergoing training for an approved 
apprenticeable occupation during an established period assured by an 
apprenticeship contract; 
b) Apprenticeable Occupation refers to an occupation specified by an industry 
and approved for apprenticeship by TESDA subject to the criteria set under 
Section 9 hereof; 
c) Apprenticeship means training within an enterprise with compulsory related 
theoretical instructions involving a contract between an apprentice and an 
enterprise on an approved apprenticeable occupation; 
d) Apprenticeship Contract means an agreement wherein an enterprise binds 
itself to train the apprentice who in turn accepts the terms of training for the 
recognized apprenticeable occupation. The Apprenticeship contract also 
contains the rights, duties and responsibilities of each party; 
e) Authority refers to the Technical Education and Skills Development Authority 
or TESDA; 
f) Bipartite Enterprise Apprenticeship Committee refers to a group 
within the enterprise composed of the labor and the management 
responsible for monitoring the program Implementation. settling 
differences between management and apprentices and recommending 
measures for effective implementation; 
g) Board refers to the TESDA Board; 
h) Certificate of Competency means a document issued by the Authority 
to individuals who were assessed as competent in a single unit or 
cluster of related units of competency; 
i) Certificate of Apprenticeship Program Registration refers to a 
document issued by TESDA granting an authority to an enterprise to 
offer a program in an apprenticeable occupation; 
j) Cluster of Competencies refers to a group of competencies as defined 
in the Training Regulations that corresponds to a Certificate of 
Competency. A cluster of units of competency includes the basic, 
common, and core competency that can be offered as registered 
program; 
k) Competency Assessment refers to the process of determining the 
competency of a person undergoing apprenticeship based on 
established standards of competency; 
l) 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 for those in the workplace; 
m)  Enterprise refers to a participating establishment or organization 
or the Government that directly engages an apprentice based on an 
approved Enterprise Apprenticeship Program; 
n) Industry Board/Body refers to industry organizations recognized by 
the Authority according to set guidelines; 
o) Methods of Competency Assessment refers to the different 
means/ways of gatherings the required evidences and making 
judgment whether the competency has been achieved; 
p) National Certificate refers to a document issued to individuals who 
have demonstrated achievement of all the required units of 
competency of national qualification defined under the 
promulgated Training Regulations; 
q) On-the-job Training refers to a course of study designed to provide 
practical experiences applying previously studied theories and aims 
to provide students an opportunity to understand economic, 
social and cultural realities by allowing them to interact and relate with 
the community; 
r) Qualification refers to a formal certification that a person has 
successfully achieved learning outcomes relevant to the identified 
academic. industry or community requirements. A qualification 
confers official recognition of value in the labor market and in further 
education and training; 
s) Training Plan refers to an Enterprise Apprenticeship Program 
which described all the learning experience an apprentice must 
undergo, generally including the competencies to be acquired within 
the program, the underpinning knowledge and skills, theories and 
principles and the methods of competency assessment; 
t) Training Regulation refers to the package of competency standard, 
national qualification, training standards, and assessment and 
certification arrangements. These regulations spell out the parameters 
for ensuring the quality in delivery of a Technical-Vocational Education 
and Training (TVET) program. They also serve as the bases for 
competency assessment and certification, registration and delivery of 
TVET programs. and development of curriculum and assessment 
instruments; 
u) Unit of Competency refers to an activity that comprises a 
manageable component of work. In competency standards, each unit 
of competency is described in terms of elements, performance criteria, 
range of variables and evidence guide. 
 
SECTION 5. Apprenticeable Occupation. - An apprenticeable occupation 
is one which is specified by the industry Board/Body, approved by the 
TESDA Board and which must:  


 
a) Involve skills that are customarily learned through a structured, 
systematic program of on-the-lob supervised learning and involves the 
progressive attainment of manual, mechanical or technical skills and 
knowledge which in accordance with the industry standard for the 
occupation, would require the completion of at least six (6) months of 
on-the-lob and off-the job learning); 
b) Be clearly identified and commonly recognized throughout an 
industry;  
c) Require related theoretical instruction to supplement the on-the-lob 
learning. 
 
 
Provided, however, that apprenticeship does not include On-The- 
Job Training (OPT) required by education and training Institutions as part of 
their curriculum.  
SECTION 6. 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, provided, that the period 
shall not be less than six months.  
SECTION 
7. 
Apprenticeship 
Program 
Registration. 
– 
The 
Apprenticeship Program shall be submitted for approval to, and registered 
with, TESDA. If may be: 
a) For a qualification; 
b) For cluster of competencies; or 
c) For a bundled set of qualifications as contained in the Training 
Regulations as applicable, or based on industry specific standards. 
 
The application for registration shall include. among others, the 
Certificate of Undertaking, the Training Plan and the ration of the Bipartite 
Enterprise Apprenticeship Committee. 
 
A Certificate of Apprenticeship Program Registration shall be issued to the 
enterprise to signify authorization for specific qualification or competency 
clusters. 
 
Prior to registration, an enterprise shall execute an undertaking to:  
 
i. Implement the Apprenticeship Program with fairness, honesty 
and good faith; 
ii. Ensure that it will not employ any practice that will violate, impair 
or abuse the rights of apprentices; and  
iii. Submit material information on its Apprenticeship Program, 
including regulatory compliance and apprenticeship contracts, 
to an industry association which shall make such information 
available to the public. 


TESDA shall provide technical assistance to the applying and 
implementing enterprises to be able to comply with the provisions of 
this Section.  
SECTION 8. Bipartite Enterprise Apprenticeship Committee. - There 
shall be established a Bipartite Enterprise Apprenticeship Committee. The 
Committee shall be responsible for monitoring the program implementation, 
settling 
differences 
between 
management 
and 
apprentices 
and 
recommending measures for effective program implementation.  
For unionized enterprises, the employees' representative shall come 
from the existing labor unions, while employees' representatives. In non-
unionized enterprises, the representative shall be elected by the employees of 
the enterprise.  
SECTION 9. Apprenticeship Training Program Content and Delivery. - 
All existing qualifications with Training Regulations (‘TRs) shall undergo 
mandatory review by the TESDA Board before they are reclassified as 
apprenticeable. All Training Regulations shall be based on set criteria, which 
must include, but not be limited to (a) priority needs of the industry/sector; (b) 
nationwide application in terms of public interest/welfare: (c) employment 
generation and investment opportunities; and (d) need for standardization 
and certification. 
To meet the immediate requirements of enterprises for skilled 
workers. the TESDA Board may approve apprenticeable occupations 
endorsed by the Industry board/body 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 
recognized education and training institution in the design and delivery of 
theoretical instruction.  
SECTION 
10. Training of 
Apprentices. 
– 
Only 
enterprises 
with 
Apprenticeship 
Programs 
registered 
with 
TESDA 
can 
enter 
into 
apprenticeship contracts and train apprentices in approved apprenticeable 
occupations. 
The enterprises shall be responsible for the following: 
a) Ensure that the necessary abilities and knowledge for the apprentice to 
achieve the purpose of the training are imparted to the apprentice and 
shall provide such training systematically in accordance with an 
approved Training Plan; 
b) Appointment the training officer to implement the Training Plan; 
c) Make available, free of charge, the consumable materials and basic 
hand tools and equipment necessary for the training; 
d) Allow the apprentice to attend in-school training and to sit for the 
competency assessment; 


e) Require the apprentice to keep an update report book and inspect  
such books; 
f) Ensure that the apprentice is encouraged to develop personality; 
g) Ensure that the apprentice is protected from physical or moral  
danger; and 
h) Entrust to the apprentice such fobs as are related to the purpose of the 
training and are commensurate with the apprentice's capable. 
SECTION 11. Qualifications of an Apprentice. – To qualify as an 
apprentice, a person shall: 
a) Be at least fifteen (15) years of age, provided, that an apprentice below 
eighteen (18) years of age shall not be exposed to dangerous or 
hazardous occupations; 
b) Possess good moral character, vocational aptitude and capacity for 
apprenticeship as determined by the enterprise; and  
c) Possess the ability to comprehend and follow oral and written 
instructions.  
Trade industry and labor organizations may recommend to TESDA 
appropriate educational requirements for different occupations. 
SECTION 12. Aptitude Testing of Applicants. – Any person to be engaged as 
apprentice shall undergo the appropriate aptitude examinations which shall 
be administered by the Bipartite Enterprise Apprenticeship Committee. 
SECTION 
13. 
Signing 
of 
Apprenticeship 
Contract. 
– 
Every 
apprenticeship contract shall be signed by the enterprise owner or their 
authorized representative and the apprentice. 
Provided, an apprenticeship contract with an apprentice of below 
eighteen (18) years old shall be signed in his/her behalf by his/her parent or 
guardian. subject to the right of the apprentice to terminate the same after 
thirty (30) days" prior notice. 
Every apprenticeship contract entered into under this Section shall be 
approved by the Bipartite Enterprise Apprenticeship Committee and copies 
thereof shall be furnished the management and the apprentice. 
No enterprise shall be allowed to engage apprentices more than twenty 
percent (20%) of the total number of Its regular employees, provided, that the 
TESDA Board may, upon recommendation of the industry Board/Body may 
increase the cap, if necessary; Provided Further, that any person who shall be 
engaged as an apprentice in excess of the threshold herein provided shall be 
considered as a regular employee of the enterprise concerned.  
SECTION 
14. 
Contents 
of 
Apprenticeship 
Contract 
– 
The 
Apprenticeship contract shall conform with the rules issued by TESDA and shall 
include: 


a) Competencies that will be acquired within the apprenticeship 
program based on the Training Plan and the method of competency 
assessment;  
b) The period of training depending on the approved Training Plan;  
c) Training allowance. which is no case shall be below seventy-five percent 
(75%) of the applicable minimum wage, provided, that the allowance shall 
be increased in an amount to be set by the TESDA Board upon 
recommendation of the recognized industry Board/Body based on 
acquired competency of the apprentice: Provided Further, that 
contributions to the training allowance by government agencies and/or 
non-governmental organizations shall be considered in computing the 
said seventy-five percent (75%); 
d) A schedule of training allowance payment; 
e) An undertaking from the enterprise that it shall provide a disability 
and/or accident insurance policy in favor of the apprentice during 
the apprenticeship period; and 
f) The general rights and obligations of both parties, grounds for 
termination of the contract and the process for the termination of the 
apprenticeship contract. 
 
 
The approved training plan shall be attached in the contract.  
 
SECTION 15. Apprenticeship Schemes. – Enterprises with approved 
apprenticeship program may choose from any of the following apprenticeship 
schemes:  
 
a) Involving a company or group of companies and an identified education 
and training institution; 
b) Conducted entirely by a company with demonstrated capacity to 
conduct theoretical instruction; 
c) Other schemes to be established by the TESDA in consultation with 
enterprise management. labor and training institutions and subject to 
the approval of the TESDA Board;  
SECTION 16. Competency Assessment and Certification. – The 
apprentice shall undergo competency assessment for qualifications within 
the apprenticeship period and shall be issued the appropriate competency 
certificate after he/she has demonstrated achievement of the competency 
standards.  
SECTION 17. Training Certificate and System of Equivalency. – A 
Training Certificate shall be issued by the authorized enterprise to signify 
completion of the apprenticeship program in accordance with the approved 
training program. The Certificate shall contain a list of the units of competency 
acquired and shall be comparable to completion of a training program in a 
Technical-Vocational Education and training institution. 
Apprenticeship graduates shall likewise 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, standards and guidelines 


on equivalency and adult education acceleration program of the TESDA, 
Commission on Higher Education (CHED) and the Department of Education 
(DepEd). 
SECTION 18. Apprenticeship Administration. – TESDA shall be 
responsible for the implementation of the apprenticeship program as provided 
for in this Act. For this purpose, TESDA shall conduct a regular compliance 
audit of enterprises with registered apprenticeship program. 
The TESDA Board shall set up the overall apprenticeship policy 
and standards. 
The TESDA Secretariat shall be responsible for apprenticeship 
administration, monitoring and evaluation of the training. 
There shall be TESDA recognized Industry Boards/Bodies which 
shall determine and recommend to the TESDA Board whether an 
occupation is apprenticeable and perform such other function as may be 
necessary. 
SECTION 19. Violation and Termination of Apprenticeship Contract – 
The Bipartite Enterprise Apprenticeship Committee shall have 
authority to settle differences arising out of apprenticeship contracts 
upon complaints of any interested person or upon its own initiative. 
In the event that the Bipartite Enterprise Apprenticeship Committee 
shall be unable to settle such differences. the TESDA Secretariat or its 
authorized representative shall investigate and render a decision 
pursuant to pertinent rules and regulations as may be prescribed by 
the TESDA Board. 
The decision of the TESDA Secretariat or its authorized 
representative may be appealed by any aggrieved person to the TESDA 
Director General within five (5) days from the receipt of the decision. The 
decision of the TESDA Director General shall be final and executory. 
The rules and procedures on the termination of Apprenticeship 
Contract shall be promulgated by the TESDA Board. 
The Apprenticeship Contract shall be terminated on any of the 
grounds stipulated thereunder, subject to the rules on due process. 
The Notice of Termination shall be filed with the Bipartite Enterprise 
Apprenticeship Committee for conciliation and settlement of issues. In the 
absence of settlement or agreement, the same shall be elevated to the 
TESDA Secretariat or its authorized representative pursuant to the 
pertinent rules and regulations of the TESDA Board.  
 
SECTION 20. Violation of this Act. – Any violation of the provisions of this Act 
shall be under the jurisdiction of TESDA through its regional offices. If 
the violation constitutes deficiency of labor standards and other labors laws, 


TESDA through its regional offices, shall endorse the same to the 
appropriate regional offices of the Department of Labor and Employment 
(DOLE).  
 
SECTION 21. Violation of Labor Standards and Other Labor-Related 
Laws. – Any violation of general labor standards, occupational safety 
and health standards and other labor-related laws shall be under the 
jurisdiction of the DOLE through its regional offices, pursuant to Article 
128 of the Labor Code of the Philippines, as amended. 
 
SECTION 22. Compulsory Apprenticeship - When the national security of 
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, lobs or employment levels where 
shortage of trained human resources deemed critical as recommended by the 
TESDA Board.  
 
SECTION 23. Incentives. - An additional deduction from the taxable Income 
equivalent to one-half (1/2) of the value of training expenses Incurred for 
developing the productivity and efficiency of apprentices’ program shall be 
granted to the person or enterprise organizing an apprenticeship program; 
provided. that such program is duly recognized by TESDA: provided further, that 
such deduction shall not exceed ten percent (10%) of direct labor wage; and 
provided finally, that the person or enterprise who wishes to avail of this 
incentive shall pay the apprentices Training Allowance equivalent to the 
applicable minimum wage. 
 
SECTION  
24. 
Exemption from Probationary 
Employment. – 
Certified apprentices shall be exempted from probationary employment in the 
event that they are employed in occupations requiring the same skills and 
qualifications standards which they shall have obtained upon passing the 
competency assessment as provided under Section 16 of this Act. 
SECTION 25. Penalty Clause. – The TESDA Secretariat shall have the power to 
initiate program 
closure 
proceedings 
of 
enterprises 
found 
offering 
unregistered apprenticeship programs without prejudice to the filing of 
administrative, criminal or civil liabilities, which may include any of the following: 
 
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.  
 
SECTION 26. Implementing Rules and Regulations. - The TESDA 
Director General shall, after consultation with the National Tripartite 
Industrial Peace Council (NTIPC) and other relevant stakeholders issue the 
implementing rules and regulations within ninety [90) days after the effectivity of 
this Act. 


SECTION 27. 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 28. Sunset Provision. – Four (4) years after the effectivity of this Act, 
the TESDA Board shall conduct a review of its implementation and submit a 
report to Congress within thirty (30) days after the conclusion of the review.  
SECTION 29. 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 30. Repealing Clause. - Chapter I (Apprentices) and Chapter II 
(Learners), Title II, Book II and other pertinent provisions of Presidential decree 
442, or the Labor Code of the Philippines, as amended, Executive Order No. 1111, 
Series of 1986, RA7796 or the TESDA Act of 1994 and all other laws, decrees, 
executive orders and rules and regulations contrary to or in consistent with 
the provisions of this Act are hereby repealed or modified accordingly. 
SECTION 31. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation. 
Approved,