TATIVES,

Haadl oF & i
RECEIVED

Republic of the Philippines pare, 18 UL 2016

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS

warers7RATION UNIT
First Regular Session

BULLS aN) dOPX SERVICE

as
House Bilt No, 1649

Introduced by HON. LINABELLE RUTH R. VILLARICA
4™ DISTRICT, BULACAN

EXPLANATORY NOTE,

‘The improvement of employment opportunities in the formal economy and labor market

information as well as a correct matching between jobs and skills will effectively address the
soaring unemployment.

Presently, however, while the existing apprenticeship program is recognized as an
important instrument in minimizing the impact of unemployment which is at 6.5% as of July
2015, its participation by industry associations and apprentices is at a slow pace. This rate is at

its highest as compared to selected Asian countries like Singapore, South Korea, Thailand and
China,

This proposed bill seeks to institute further reforms in the apprenticeship program to
make it more attractive to both the private enterprises by ensuring a continuous supply of skilled

workers and for the prospective apprentices by promoting skills acquisition and employment.

Support for the enactment of this measure is earnestly requested.

Pilicbssanc

REP. LINABELLE RUTH R. VILLARICA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 1649

Introduced by HON. LINABELLE RUTH R. VILLARICA
4™ DISTRICT, BULACAN

AN ACT
REFORMING THE NATIONAL APPRENTICESHIP PROGRAM AND PROVIDING
STANDARDS FOR THE TRAINING AND EMPLOYMENT OF APPRENTICES, AND
REGULATORY STANDARDS FOR ACCREDITATION OF APPRENTICESHIP
PROGRAMS

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 “Apprenticeship Training,
Act”.

SEC. 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 critical and in-demand skills through the participation of employers, workers
and government and non-government agencies.

SEC. 3. Objectives. - This Act specifically aims to:

(a.) meet the demand of the economy for trained human resource;

(b.jestablish a national apprenticeship program that includes on and off on-the-job
training components with tripartite involvement;

(c.) promote full employment of young workers through training and development;

(d)enhance existing standards for the training, development and employment of
apprentices;

(e.)recognize the indispensable role of private enterprises in training and
development;


(f) strengthen the advocacy of the apprenticeship training program to encourage
enterprise and young workers’ participation;

(g.)inerease productivity and competitiveness of enterprises by ensuring availability
of skilled human resource; and

(h.)harness Corporate Social Responsibility (CSR) towards the development of
skilled manpower to meet the requirements of the industries. :

SEC. 4, Definition of Terms, ~ For purposes of this Act, these terms are defined as
follows: ;

(a.) Apprenticeship is training within employment with compulsory related theoretical
instructions involving a contract between an apprentice and an employer on an
approved apprenticeable occupation;

(b.) Apprentice is a person undergoing training for an approved apprenticeable
occupation during an established period assured by an apprenticeship contract;

(c.) Apprenticeship Contract is an agreement between a prospective employer who binds
himself to train an apprentice and who accepts the terms of training for the recognized
apprenticeable occupation;

(4) Apprenticeable Occupation is an occupation officially endorsed by a tripartite body
and approved for apprenticeship by the Techincal Education and Skills Development
Authority (TESDA);

(e.) Authority refers to the TESDA;
(f.) Board refers to the TESDA Board;

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

(h.) Competency Assessment is the process of determining whether or not a trainee has
achieved a standard of competency;

(i) Training Plan is the specifications for the apprenticeship program for a particular
enterprise which describes all the learning experiences of a trainee;

(j.) Competency Standard is a written specification of the knowledge, skills, attitudes and
values required for the performance of a job, occupation or trade and the
corresponding standard of performance required for these in the workplace;

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(k.) Enterprise is a participating establishment that directly engages an apprentice based
on an approved Apprenticeship Program;

(L) Unit(s) of Competency is a standard measurement to determine the performance of a
trainee;

(m) Cluster of Competencies are groupings of competencies leading to the
issuance of a Certificate of Competency; and

(n.) Qualification is a group of competencies packaged from the supermarket of
competency. It represents a clear meaningful set-up in the workplace and is aligned
with the Philippine TVET Qualifications Framewotk descriptor. Depending on the
breadth, depth and scope of competency, a qualification may fall under National
Certificate Level I, Il, I, IV or V.

SEC. 5. Qualifications of an Apprentice. ~ An apprentice shall:
(a.) Be at least thirty five (35) years of age;

(b.) Possess vocational aptitude and capacity for apprenticeship as determined by the
enterprise;

(c.) Be of good moral character;
(d.) Possess the ability to comprehend and follow oral and written instructions.

Trade, industry and labor organizations may recommend to TESDA the appropriate
educational requirements for different occupations.

SEC. 6. Aptitude Testing of Applicants. ~ Pursuant to the minimum qualifications of
apprentice-applicants required under this Act, the bipartite plant apprenticeship committees
shall have the primary responsibility for providing the appropriate aptitude examinations in
the selection of apprentices.

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

SEC. 8. Content and Delivery of Apprenticeship Training Program. — All qualifications
with Training Regulations (TRs) promulgated by the TESDA Board are automatically
classified as apprenticeable. To meet the immediate requirements of enterprises for skilled
workers, the TESDA Board shall approve new apprenticeable occupations endorsed by the


appropriate Regional Technical Education and Skills Development Committee (RTESDC)
upon consultation with worker’s groups and industry representatives.

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

SEC. 9. Apprenticeship Period. ~ The apprenticeship period shall be based on the
duration of training required in the Training Regulation and the complexity of the skills to be
earned by the apprentice.

SEC. 10. Apprenticeship Program Registration. ~ Registration of program can be for a
qualification, for cluster of competencies or for a bundled qualification as contained in the
Training Regulations. A Letter of Application stating the intention and the Certificate of
Undertaking and the Training Plan shall be submitted to TESDA for approval. Program
Registration shall be issued to the enterprise to signify authorization for specific qualification
of competency clusters.

‘An apprenticeship program may be approved on a No-Training Regulations basis
Provided, That the applicant enterprise can show proof of the demand for such skill.

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

Enterprises found offering apprenticeship programs which are not registered with TESDA
shall be subjected to program closure proceedings without prejudice to the filing of

administrative, criminal or civil liabilities.

SEC. 11. Contents of Apprenticeship Contract. ~ Apprenticeship Contracts shall concur
with the rules issued by TESDA and shall include:

(a.) The nature, syllabus, trimetable and purpose of training;

(b.) The period of training depending on the approved training regulations;

(c.) Training allowances as prescribed by the industry subsectors through tripartite
consultations which in no case shall start below seventy five percent (75%) of the
applicable minimum wages

(d.) A schedule of training allowance payment;

(e.) Training hours;

(£) The process for the termination for apprenticeship; and

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(g.) The general rights and obligations of both parties.

SEC. 12. Signing of Apprenticeship Contract. ~ Every apprenticeship contract shall be
signed by the enterprise owner or his/her authorized representative, or the authorized
representative of any of the recognized organizations, associations or groups and the
apprentice.

‘An apprenticeship contract with a minor shall be signed in his/her behalf by his/her parent
or guardian, or if the latter is not available by authorized representative of the TESDA, and
the same shall be binding during its lifetime, subject to the right of the apprentice to
terminate the same after a notice of one (1) month.

Every apprenticeship contract entered into under this Act shall be approved by the
bipartite plant apprenticeship committee involving the firm owner and representatives of the
firm workers, and copies thereof shall be furnished the firm owner and apprentice.

13, Apprenticeship Schemes. ~ Enterprises with approved apprenticeship program
may choose from any of the following apprenticeship schemes 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.

SEC. 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.

SEC. 15. Investigation of Violation of Apprenticeship Contract. - The bipartite plan
apprenticeship committee, upon complaint of any interested party or motu proprio, shall have
initial responsibility for settling differences arising out of apprenticeship contracts. In case it
is not able to settle such differences, the TESDA Secretariat or its authorize representative
shall investigate and render a decision pursuant to pertinent rules and regulations as may be
prescribed by the TESDA Board.


SEC. 16. Appeal to the TESDA Board. ~ The decision of the TESDA Secretariat may be
appealed by any aggrieved person to the TESDA Board within five (5) days from receipt of
the decision, The decision of the TESDA Board shall be final and executory.

SEC. 17. Termination of Apprenticeship. —

I. Valid cause to terminate the Apprenticeship Contract:

1. By the employer:

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

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

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

(d.) Theft of malicious destruction of company property and/or equipment;

(e.)Poor efficiency or performance on-the-job or in the classroom for a prolonged
period despite wamings duly given to the apprentices; and

(£.) Engaging in violence or other forms of group misconduct inside the employer's
premises.

2. By the apprentice:
(a.) Substandard or deleterious working condition within the employer/s premises;

(b.) Repeated violations by the employer of the terms of the apprenticeship agreement;
(c.) Cruel and inhuman treatment by the employer or his subordinates;

(d.)Personal problem which in the opinion of the apprentice shall prevent him from a
satisfactory performance of his job; and

(c.) Bad health an continuing illness.
Il. Procedures of termination of apprenticeship:

1. Apprenticeship Committee Level:


(a.) The party (employer or apprentice) interested in terminating the contract may do so,
first, by notifying the Apprenticeship Committee;

(b.) The Committee confers with both parties and mediates and/or settles the differences
between them;

(c.)If mediation and/or settlement is not possible, the Committee advises the
complainants to apply for said termination with the Apprenticeship Division of the
Regional Office concerned.

2. Regional Level:
(a.) The complainant verbally presents his/her case to the Apprenticeship Division, If to
the judgment of the Division the complaint merits consideration, he/she is made to

accomplish an “Application for Termination of Apprenticeship” form;

(b,) The Division verifies as to the veracity and validity of the claim within five (5) days
from receipt thereof ~

1.) By calling both parties (employer and apprentice) for conference; or
2.) By sending a representative to the employer's concern for the purpose;
3.) In case the grounds for approval exist ~

1) The investigating officer (field representative) initiate the application; and

2) The Chief of the Apprenticeship Division verified the same;

3) The application is then immediately forwarded to the Regional Director for
appropriate action; after which a copy of the acted application is furnished
each the applicant and the second party; these processes are to be completed
within three (3) days from receipt of the document by the Office of said
Regional Director;

4) A copy of each approved application is furnished the Bureau of

‘Apprenticeship to be forwarded to the said Office together with the Monthly

Performance Report of the Apprenticeship Division.

3. Agency Level:

If either of the Parties is not satisfied with the decision of the Regional
Director, he/she may, within the reglementary period of five (5) days from receipt of


the document, appeal the case to the TESDA Director General whose decision shall
be final and unappealable.

SEC. 18. Competency Assessment and Certification. ~ The apprentices shall within
the apprenticeship period, undergo competency assessment for qualifications with Training
Regulators, A National Certificate shall be issued to all those who demonstrated achievement
of the competency standards.

SEC. 19. 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 the completion of a training program in a TVET
institution.

SEC. 20. 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 apprenticeship in certain trades, occupations,
jobs or employment levels where shortage of trained manpower is deemed critical as
determined by the TESDA Board.

SEC. 21. Apprenticeship Training Fund, - There shall be an apprenticeship training
fund which shall be derived from the apprenticeship fee paid by every firm owner in
industries employing workers in apprenticeable trades, Workers who are graduates of
apprenticeship programs shall likewise pay a one-time apprenticeship fee upon employment
as contribution to the apprenticeship training fund.

‘The apprenticeship fee rates and guidelines to be applied shall be approved by the
TESDA Board after a public hearing with the management and labor sectors. The fee shall
be collected and paid through the Social Security System (SSS) and transferred to the
Apprenticeship ‘Training Fund to be administered by TESDA. The apprenticeship fee rate
may be increased by the TESDA Board subject to the requirements of public hearing.

The Apprenticeship Training Fund shall be deemed distinct and separate from the
TESDA Development Fund under Section 31 of R.A. 7796, otherwise known as the TESDA
law, and as such, shall not be subject to its Implementing Rules and Regulations, Such
apprenticeship fund may be used to defray expenses of the trainees in the institution or
training center as well as other expenses to be approved by the TESDA Board to improve the
implementation of the program.

SEC. 22. Incentives. — An additional deduction from the taxable income equivalent to
one half (1/2) of the value of labor training expenses incurred for developing the productivity
and efficiency of apprentices shall be granted to the person or enterprise organizing an
apprenticeable program and shall be exempt from the payment of apprenticeship fee.
Provided, That such program is duly recognized by TESDA. Provided, further, That such

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deduction shall not exceed ten percent (10%) of the direct labor wage; and, Provided, finally,
That the person or enterprise who wishes to avail himself or itself of this incentive should pay
his apprentices the minimum wage. Micro-cottage and small enterprises or those with less
than 100 employees shall also be exempt from the payment of the apprenticeable fee.

SEC. 23. Exemption from Probationary Employment: System of Equivalency. ~
Certified apprenticeship graduates shall be exempted from probationary employment. They
shall be employed as regular workers if chosen to be retained by the enterprise.

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 and guidelines on equivalency and adult education acceleration program
of TESDA, CHED and DepEd.

SEC. 24, Implementing Rules and Regulations. - The TESDA Board shall issue the
implementing rules and regulations to implement the provisions of this Act within ninety (90)
days after its effectivity.

SEC. 25. Transitory Provisions. ~ 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.

SEC. 26. Repealing Clause. — The pertinent provisions of Presidential Decree No. 442
or the Labor Code of the Philippines, as amended, Executive Order No, 111, series of 1986,
R.A, No, 7796, otherwise known as the TESDA law and all other laws, decrees, executive
orders, rules and regulations, letters of instruction contrary to or inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 27, 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.

SEC. 28. Effectivity. ~ This Act shall take effect after fifteen (15) days from the date
of its complete publication in the Official Gazette or in two (2) newspapers of general
circulation.

Approved,