REPUBLIC OF THE PIIILIPPINES
HOUSE OF REPRESENTATIVES
QtJEZON CITY
NINETEEr\ITI+ CoNGREsS
First Regular Session
HOUSEBILLNo.      5158
TIME;in
BY:ul'm_
`SiS,Nky«*2#
Introduced by
REPRESENTATIVE AITY. GERVILLE ``|INKY BITRICS" R. LUISTRO
EXPLANATORY NOTE
Apprenticeship,  particularly  a  structured  one,  is  a program  that provides
opportunityforapprenticestoexperiencerealworkingconditiousunderasupervised
setting.  It also fachitates recognition of work dynamics, including work practices and
ethics  that  are  essential  in  acquiring  relevant  working  knowledge.    At  certain
circumstances, apprenticeship opens doors for employment; At times, it offers rooms
for improvement. Through this program, an apprentice is particularly trained by a
trainor  (i.e., supervisor, leaming and development specialists,  etc.) to acquire the
necessary skillset in doing a certain task.
This bill seeks to reform the national apprenticeship program under Chapters
1andHofTitleHofPresidentialDecreeNo.442ortheLaborCodeofthePhflippines.
Itshallprovideouryouthwithskinsandaccesstoemploymentandthereafterprovide
enterprises with a mechanism to ensure a continuous supply of skilled workers.  It
willalsounlockthepotentialofouryounggenerationandimprovetheircompetence
which, in effect, will increase employability.
Further, this proposed measure includes the role of the Technical Education
and Skills Development Authority (TESDA) who shall be the primary authority in
implementing the apprenticeship program. It shall set the breadth, length, and extent
of the training according to skill difficulty. It shall likewise provide certification once
the training has been completed by the apprentice.
More  so,  this  bin  also  proposes  to  provide  protection  of  the  welfare  of
apprentices through provisions of allowances, and disabihity or accident insurance
coverage as they undergo the apprenticeship program.


A  proposal  similar  to  this  measure  was  filed  on  the  18th  Congress  by
RepresentativesMichaelEdagarY.Aglipay,LuisRaymund``LRay"F.Villafuerte,and
Alfred Vargas. This bin was primarfty referenced to their proposal.


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY
NINETEm`ITTI CoNG RESS
First Regular Session
HouSEBILLNo.     5158
Introduced by
REPRESENTATIVE AT". GERVILLE "JINKY BITRICS" R. LUISTRO
AN ACT PROVIDING FOR A REVISED NATIONAL APPRENTICESHIP
PROGRAM,REPEALINGFORTHEPURPOSECHAPTERSIAND11OFTITLE11,
BOOK 11 OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE
KNOWN AS THE LABOR CODE OF THE PHILIPPINES
Beitep?ct.edbythesenateandtheHouseofRepresentativesofthephilippinesincongress
assembled:
SECTION 1.
Program Act.
Short Title. - This Act shall be known as the "National Apprenticeship
''
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-fin  occupations  through  the
participation of employers, workers and  government agencies and non-government
agencies.
SECTION3.Statementofobjectives.-ThisActaimsto:
a)  Help meet the demand of the economy for trained human resource;
b)  Have a national apprenticeship program that includes on- and off-the- job
training components with tripartite involvement;
c)   Promote 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 of human resource;
f)   Strengthen     advor=acy     of    the     apprenticeship     training    program     to


encourage the participation of enterprises and young workers;
g)  Increase   productivity   and   competitiveness   of   enterprises   by   ensuring
availability of skined human resource; and
h)  harness Corporate Social Respousibflity (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
apprentic eship contract;
b)  Apprenticeship  means  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 specified by an industry
and approved for apprenticeship by the Technical and Skills  Development
Authority (TESDA);
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)   Bipartite    Enterprise    Apprenticeship    Committee    refers    to    a    group
established  by  the  enterprise  composed  of  representatives  of  labor  and
management  responsible  for  monitoring  program  implementation,  settling
differences   between   management   and   apprentices,   and   recommending
measures for effective program implementation;
f)   Certificate   of   Competency   means   a   document   issued   by   TESDA   to
individuals   who   were   assessed   as   competent   in   a   cluster   of  related
competencies;
g)  Certificate of rvET Program Registration refers to a document issued by
TESDA  granting  an  authority  to  an  enterprise  to  offer  a  program  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, still constitutes an
employable package and can be awarded a Certificate of Competency;
i)   Competency Assessment refers to a document issued by the TESDA to
individuals  who   are   assessed   as  competent  in  a  cluster  of  related


competencies;
j)   Competenry 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;
k)  Dual Training System refers to a delivery system of quality technical and
vocational education which requires training to be carried out altemately in
two  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;
1)   Enterprise  refers  to  a  participating  establishment  that directly engages an
apprentice based on an approved enterprise apprenticeship program;
in) 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
valueinthelabormarketandinfurthereducationandtraihing;
n)  Training Plan refers to the specification for the apprenticeship program of
an  enterprise  which  describes  all  the  learning  experience  a  student
undergoes generally including the competencies to be acquired within the
program,  the underpinning knowledge theories and principles,  and the
assessment arrangement;
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. Qualification 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 iustructious.
Trade,   industry   and   labor   orgarizatious   may   recommend   to   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  respousibhity  of  providing
appropriate aptitude examinations in the selection of apprentices.
SECTION 7.   Training of Apprentices.   Only enterprises registered with TESDA
may   enter   into   apprenticeship   contracts   and   train   apprentices   in   approved
apprentic eable occupations.
SECTION 8. Apprenticeship Training Program Content and Delivery.  All existing
qualifications  with  training  regulations  shall  undergo  mandatory  review  by  the
TESDA Board before they are reclassified as apprenticeable. AIl 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
Regional   Technical   Education   and   Skills   Development   Committee   upon
consultation with workers' groups and industry representatives.
The   apprenticeship   program   sham   emphasize   the   need   for   theoretical
instruction.   The  enterprise  may  seek  partnership  with  a  Technical-Vocational
Education and Training (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.
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, the certificate of undertaking, and the training
plan shall be submitted to TESDA for approval.
An apprenticeship program may be approved on a no-training regulations
basis provided that the applicant enterprise can show proof of the demand of
such skill.
The   TESDA   shall   provide   technical   assistance    to   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 TESDA and  shall include the


following,
a)  Nature, syllabus, timetable, and purpose of training;
b)  Period of training, depending on the approved training regulations;
c)  Training   allowances   prescribed   by   industry   subsectors   through
tripartite  cousultatious  which  in  case  shall  start  below  seventy-five
percent(75°/o)  of  the  applicable  mrfumum wage;  Provided,  however,
That contributions to the training allowance by government agencies
and/or non~govemmental organizations  (NGOs)  shall be considered
in computing the seventy-five percent (75 0/o)
d)  Schedule of training allowance payment;
e)  Training hours;
D   Process for the ternrination of apprenticeship; and
g)  General rights and obligations of both parties.
Section 12.  Signing of Apprenticeship Contract.  Every apprenticeship contract
shall be signed by the apprentice and the enterprise, recognized organization,
association or group or their authorized representatives.
Anapprenticeshipcontractwithapersonundereighteen(18)yearsofage
shall be signed by the parent or 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
thirty (30) days prior notice.
SECTION     13.     Apprenticeship     Models.     Enterprises     with     approved
apprenticeship programs may choose from any of the following apprenticeship
models which may use 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  TESDA  in  consultation  with
enterprise  owners,  labor  and  training  iustitutious,   subject  to  the
approval of the TESDA Board.
SECTION   14.     Apprenticeship   Administration.     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.
There shall be TESDA-recognized Industry Boards or Bodies which shall
determine  and  recommend  to  the  TESDA  Board  whether  an  occupation  is


apprenticeableandperformsuchotherfunctionasmaybenecessary.
SECTION 15. Investigation of Violation of Apprenticeship Contract.  The Bipartite
Plant Apprenticeship Committee, "of% prap7i.o or upon complaint of any interested
party,   shall   have   initial   respousibifty   for   settling   differences   arising   out   of
apprenticeship contracts.   In case it is not able to settle such differences, the TESDA
Provincial Director  shall investigate  and  submit a recommendation to  the TESDA
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)  day from  the  receipt of the  decision.    The  decision of the
TESDADirectorGeneralshaubefinalandexecutory.
SECTION  17.    Termination  of  Apprenticeship.    Valid  Causes  to  terminate  the
apprenticeship contract:
a)   By the enterprise:
1)  Habitual absenteeism in the 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
whichincapacitatestheapprenticefromworking;
4)  Theft or malicious destruction of company property or equipment;
5)   Inefficiency, or poor performance on-the-job or in the classroom for a
prolongedperioddespitewarningsdulygiventotheapprentice;and
6)   Engaging   in   violence   or   other   forms   of   misconduct   inside   the
enterprise' s prenrises.
b)   By the apprentice:
1)  Substandard  or  harmful  working  condition  within  the  enteaprise's
premises;
2)   Repeated violations by the enterprise of the terms of the apprenticeship
agreement;
3)  Personal problem which in the opinion of the apprentice sha]] prevent
thesatisfactoryperformanceofthejobbytheapprentice;and
4)   Bad health and continuing illness.
SECTION 18.  Rules and Procedure on the Termination of the Apprenticeship.
A) At the 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.
3)   If  mediation  or  settlement  is  not  possible,  the  Committee  advises  the
complainantstoapplyfortheterminationattheRegionalOfficeconcemed.
8)  At the Regional Level:
1)   The complainant verbally presents case to the TESDA Regional Office.   If
the  complaint  merits  consideration,  the  complainant  is  made  to  duly
accomphihanApphcationforTerminationofApprenticeshipform;
2)   The concerned unit or division of the TESDA Regional Office verifies the
veracityandvalidityoftheclaimwithin five(5)daysfromitsreceiptby:
a)  Calling both the enterprise and the apprentice for a conference; or
b)  Sending a representative to the enterprise for that purpose.
3)   In case a ground for approval exists:
a)   The  investigating  officer   (field  representative)   shall  initiate  the
application for termination.
b)  The chief of the concerned unit or division of the TESDA Regional
Office shall verify the same.
c)   The appHcation of termination shall immediately be forwarded to the
Regional Director for appropriate action, after which a copy of the
acted  upon  application  shall  be  furnished  the  applicant  and  the
second party.  This process sham be completed within three (3) days
fromreceiptofthedacumentbytheofficeoftheconcernedRegional
Director.
d)  A  copy  of  each  approved  application  shall  be  furnished  to  the
concerned office of the TESDA.
C) Agency Level
1)  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  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 sham 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   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,  orcupatious,  lobs  or employment levels  where shortage of trained
humanresourcesdeemedcriticalasrecommendedbytheTESDABoard.
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
andefficiencyofapprenticesshaHbegrantedtothepersonorenteapriseorganizing
an  apprenticeship  program:  Prot7ided,  That  the  employer  shall  be  exempt  from
payment of the apprenticeship fee and that such program shall be recognized by the
TESDA:ProrJ£.dedrtyrfker,Thatsuchdeductionshaunotexceedtenpercent(100/o)of the
training allowance of the apprentices: Prou2.did j7t¢Jly, That the enterprise that wishes
to avafl of this incentive shall pay in apprentices the minimum wage.  Mcrouottage
and small enterprises with less than one hundred (100) employees sham be exempt
from paying apprenticeship fee.
SECTION 23.   System of Equivalency.   Apprenticeship graduates sham be awarded
equlvalentunitcreditsintheformalsystemofeducationthatcanbeusedinpursuing
tertiary   degree   courses   subject   to   the   integrated   policies   and   guidelines   on
equivalency   and   Adult   Education   Acceleration   Program   of   the   TESDA,   the
CommissiononHigherEducation(CHED)andDepartmentofEducation(DepEd).
SECTION 24.   Insurance for Apprentices.   Every participating enterprise, group or
association,industry,organization,governmentiustitutionorcivicgroupundertaking
training in accordance with the provisions of this  Act sham provide a disabELty or
accident   insurance   potty   in   favor   of  the   trainee   or   apprentice   during   the
apprenticeship perio d.
SECTION    25.    Penalty    Clause.        Enterprises    found    offering    tmregistered
apprenticeship programs shall be subjected to program closure prcx=eedings without
prejudice to filing Of administrative, criminal, or civil liabihties.   The TESDA Board
may  ffle  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  comection  with  the  application  for  the
opening of apprenticeship programs; and
b)  Failure to comply with conditions or obhigatious 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  that  one  Thousand  Pesos
a?1,000.00) nor more than Ten Thousand Pesos a'10,000.00), or imprisonment of not
less  than  three  (3)  months  nor  more  than  three  (3)  years,  or  both  such  fine  and
imprisonment at the discretion of the court.


SECTION  26.  Transitory  Provision.  AIl  existing  apprenticeship  programs  and
trairingregulatiousshallbevaliduntilaftertheTESDAhasconductedanassessment
andrevahdationforcousistencywiththeprovisiousofthisActanditsimplementing
rules and regulations.
SECTION 27.  Abolition of the Learnership Program  To rationafize and ensure the
effectiveimplementationoftheReformedApprenticeshipProgram,theLeamership
Program is hereby abolished.
SECTION 28. Implementing Rules and Regulations. The TESDA Director General
shall, in consultation with the National Tripartite Industrial Peace Councfl (NTIPC)
and other relevant stakeholders, issue the implementhg rules and regulations within
ninety(90)daysaftertheeffertivityofthisAct.
SECTION 29.  Repealing Clause.  Chapters I and 11 of Presidential Decree No. 442,
as  amended,  otherwise  known  as  the  Labor Code  of the  Philippines  are  hereby
repealed.  Executive Ctrder No. 111, Series of 1986, R.A. No. 7706 or the TESDA Act
of 1994, and an other laws, presidential decrees, issuances, executive orders, letters
of  instruction,  and  rules  and  regulations  contrary  to  or  inconsistent  with  the
provisiousofthisActareherebyamendedaccordingly.
Chapter I (Apprentices) and Chapter 11 qjeamers), Title H, Book 11 and other
pertinentprovisiousofPresidentialdecree442,ortheLaborCodeofthePhilippines,as
amended, are hereby repealed.  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
repealedormodifiedaccordingly.
SECTION 30.   Separability Clause.   If any provision of this Act is held invalid or
unconstitutional, the same sham not affect the validity and effectivity of the other
provisions hereof.
SECTION  31.  Effectivity.  -  This  Act  sham  take  effect  fifteen  (15)  days  after  its
publicationintheOfficialGazetteorinanewspaperofgeneralcirculation.
Approved,