Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
EXPANDING ENTERPRISE-BASED EDUCATION AND TRAINING, AND APPROPRIATING FUNDS 
THEREFOR 
EXPLANATORY NOTE 
Before the COVID-19 pandemic, there was a significant number of college graduates who end up being 
unemployed, underemployed, or landing jobs that do not optimize the use of their skills. The Philippine 
Statistics Authority cited an unemployment rate of 5.3% in January 2020—26.9  percent of which were 
college graduates. This indicates gaps leading to job-skills mismatch that need to be addressed to tap the 
full productive potential of the labor force. 
Enterprise-based education and training (EBET), at present, is the least participated training modality in 
the Philippines, with only 5.12% of the more than 12 million graduates of TVET from 2010-2018. This 
reported low enrollment rate, despite its potential to ensure the employability of workers and secure the 
future of industries, could be explained by the rigidity of the current system which discourages partnership 
with industries that can channel more young people to EBET.  
This measure is proposed to enhance the skills of the middle-level workforce of the entire nation by 
strengthening the participation of the private sector in technical-vocational education and training (TVET). 
This shall empower more companies, organizations, and other institutions to offer enterprise-based training 
programs compliant with standards that shall be formulated by TESDA. This measure shall establish a 
national enterprise-based training system and standards which shall ensure that the student/trainees will 
acquire the right competencies in an environment where their rights and safety are protected. 
On behalf of the people of Parañaque City’s Second District, and for the common good of the Filipino 
people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September 5, 2022
9:03 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
EXPANDING ENTERPRISE-BASED EDUCATION AND TRAINING, AND APPROPRIATING FUNDS 
THEREFOR 
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 “Enterprise-Based Education and Training 
(EBET) Act”. 
SEC. 2. Declaration of Policy. – It is hereby declared the policy of the State to enhance the skills of the 
middle-level workforce of the entire nation. The State seeks to strengthen middle-level manpower 
education and training in the country and to promote employment so that it can be assured of an ever-
growing supply of educated and competitive manpower equipped with the appropriate skills and desirable 
work habits and attitudes to meet the requirements, demands, and standards of the workplace both in the 
local and international market  
The State recognizes that apprenticeship and dual training will help develop and upgrade the skills of the 
student/trainee in a technologically changing world and in providing relevance in the training of a 
student/trainee by encouraging work experiences as a valid part and means of education and training. The 
recognition of the benefits of combining these two paths will greatly contribute to the creation of a pool of 
well-trained middle-level workforce in the country  
SEC. 3. Objectives. – This Act shall have the following objectives: 
a.
To help meet the demands of the economy for well-trained manpower through technical-vocational
education and training (TVET),
b.
To establish a national enterprise-based training system and standards that are competency-based,
including an on/off-the-job training program through the participation of employers. workers, and
government;
c.
To establish enterprise-based training standards that will ensure that the student/trainees will
acquire the right competencies in an environment where their rights and safety are protected, and,
d.
To broaden the opportunities, venues of education, and training towards greater access by all
workers.
SEC. 4. Definition of Terms. – As used in this Act: 
a.
Competency assessment refers to the process of gathering and judging evidence to decide whether
a person has achieved a standard or level of competency;
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b. Competency standards refer to the written specifications 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: 
c. Dual education and training refer to the combination of on and off-the-job training involving an 
enterprise and a training institution, 
d. Dual Training System refers to an instructional delivery system of technical and vocational 
education and training that combines in-plant training and in-school training based on a training 
plan collaboratively designed and implemented by an accredited dual system educational 
institution/training 
center and accredited dual system agricultural, industrial and business 
establishments with prior notice and advice to the concerned local government unit. Under this 
system, said establishments and the educational institution share the responsibility of providing 
the trainee with the best possible job qualifications, the former essentially through practical training 
and the latter by securing an adequate level of specific, general, and occupation-related theoretical 
instruction. The word "dual" refers to the two parties providing instruction while "system" means 
that the two instructing parties do not operate independently of one another, but rather in a well-
coordinated manner; 
e. Enterprise-Based Education and Training Fund refers to the amount of money made available to 
defray expenses of the trainees and other expenses related to the implementation of the 
Enterprise-Based Training Program; 
f. 
Enterprise-based education and training qualifications refer to the required set of skills and 
aptitudes that a student/trainee must possess before admission to the enterprise-based education 
and training; 
g. Enterprise-based student/trainee refers to a person qualified to undergo training for approved 
enterprise-based education and training in an established period as provided for by the enterprise-
based education and training agreement; 
h. Enterprise-based training agreement between enterprise and student/trainee refers to a contract 
emphasizing the rights, duties, and responsibilities of each party wherein an enterprise binds itself 
to train the trainee who in tum accepts the terms of education and training for an enterprise-based 
training qualification; 
i. 
Nominal duration of education and training refers to the estimated number of training hours and 
j. 
The periodic of education and framing refers to the duration when the training commences and 
terminates. 
SEC. 5. Establishment of Enterprise-Based Education and Training Programs. – Enterprise-based 
education and training programs (EBET) refer to practical training programs with compulsory related 
theoretical instructions conducted on/off the job being implemented within companies, the duration of 
which, shall be based on the complexity of the competencies to be learned in the specific qualification.  
A registered enterprise, group or association, industry, organization, government institution, or civic group 
wishing to organize the EBET program shall choose from any of the following training schemes: 
a. EBET involving a company or entity and an identified technical-vocational institution (TVI); 
b. EBET involving a group of companies or entities and a TVI; and 
c. EBET involves an industry training center and company or entity or a group of companies or 
entities: 
SEC. 6. EBET Application. – An enterprise, group or association, industry, organization, government, or 
civic group wishing to organize an EBET program shall have its program registered with the TESDA before 
agreeing with students/trainees.  
This Act shall apply to all work-related or workplace-related training in any of the following modalities (a) 
Apprenticeship; (b) Learnership; (c) On-the-Job-Training; (d) Practicum; (e) Work Appreciation Program; 
(f) Dual Training System; and (g) Internship.  


SEC. 7. EBET Agreement. – EBET agreements shall conform with the rules issued by the TESDA and 
shall include the following· 
a. Nature and purpose of training; 
b. Curriculum; 
c. Period of training; 
d. Training allowance equivalent to seventy-five percent (75%) of the existing minimum wage, which 
shall be paid in cash or kind or both; 
e. Schedule of training allowance payments; 
f. 
Process of termination of enterprise-based training; and 
g. General rights and obligations of both parties 
Every EBET agreement shall be signed by the employer or an agent of the employer or by an authorized 
representative of any of the recognized organizations, associations, government institutions, or civic 
groups, and by the student/trainee.  
An EBET agreement with a minor shall be signed on the minor's behalf by the parent or guardian. Provided, 
That if the latter is not available, an authorized representative of TESDA shall sign on behalf of the minor 
student/trainee, and the same shall be binding within the period specified in the agreement  
SEC. 8. EBET Qualifications – Any applicant for student/trainee under the enterprise-based education 
and training (EBET) to be conducted by the TESDA must have the following qualifications 
a. Must be at least a high school graduate or its equivalent; 
b. Possesses vocational aptitude and capacity for EBET as established through appropriate aptitude 
tests provided free of charge by enterprises, groups or associations, industry organizations, 
government institutions, and civic groups with duly recognized enterprise-based training programs 
or by the TESDA, 1n case they do not have adequate facilities for the purpose; and 
c. Possesses the ability to comprehend and follow oral and written instructions. 
Industry associations and labor groups may recommend to the TESDA the appropriate or additional 
educational requirements for different occupations. 
SEC. 9. Responsibility for Theoretical Instruction – Compulsory theoretical Instructions shall be part 
of the EBET program in cases where the program is undertaken in the plant, theoretical instructions may 
be given by the enterprise. If the latter is not prepared to assume the responsibility, the same may be 
delegated to an appropriate government agency  
SEC. 10. EBET Administration. – The TESDA Board shall set the overall policy for EBET. The 
responsibility for enterprise-based training administration, monitoring, and evaluation of the on/off-the-job 
training shall be the concern of the TESDA Secretariat the identification and prioritization of enterprise-
based training qualifications and the development of competency standards and curricula shall be the joint 
responsibility of the industry associations, labor groups, and the TESDA. A Plant EBET Committee shall be 
established in every participating enterprise to ensure that program implementation is by the approved 
policies of the TESDA Board. 
SEC. 11. Investigation of Violations of EBET Agreement. – The Industry Coordinator, upon 
complaints of any interested party or motu proprio shall have the initial responsibility of settling differences 
arising from EBET agreements. In case the Industry Coordinator is not able to settle such differences, the 
TESDA secretariat or its authorized representative shall investigate and render a decision under pertinent 
rules and regulations 


SEC. 12. Appeal. – The decision of the TESDA Secretariat may be appealed by any aggrieved person to 
the TESDA Board within five (5) working days from the receipt of the decision. The decision of the TESDA 
Board shall be final and executory.  
SEC. 13. Exhaustion of Administrative Remedies. – No person shall institute any action for the 
enforcement of any EBET agreement or payment of damages for breach of any such agreement, unless all 
available administrative remedies have been exhausted.  
SEC. 14. Compulsory Participation in EBET Program. – Enterprises shall be required to provide the 
appropriate EBET program under the following circumstances: 
a. When national security or the requirements of economic development so demand, the President of 
the Philippines shall require EBET in certain trades, occupations, jobs, or employment levels where 
the supply of trained manpower is deemed critical, as determined by the TESDA Board, upon the 
recommendation of its secretariat. 
b. In private companies which employ foreign technicians in enterprise-based training occupations. 
SEC. 15. Tax Exemptions – All grants, bequests, endowments, donations, and contributions made to 
the participating training institution are to be used actually. directly and exclusively by the participating 
training institution shall be exempt from donor's tax and the same shall be allowed as an allowable 
deduction from the gross income of the donor for purposes of computing the taxable income of the donor 
by the provisions of the National Internal Revenue Code of 1997, as amended  
SEC. 16. Exemption from Probationary Employment. – Certified  EBET graduates shall be exempted 
from the rules applicable to probationary employment. They shall be employed as regular workers if chosen 
to be retained by the participating enterprise, group or association, industry organization, government 
institution or civic group.  
EBET graduates shall likewise be awarded equivalent unit credits in the formal system of education and 
which can be used in pursuing higher degree courses, subject to the integrated policies and guidelines of 
equivalency and the adult education acceleration program of the TESDA, Commission on Higher Education, 
and the Department of Education.  
SEC. 17. Insurance Coverage and Protection of Trainees. – Every  participating enterprise, group or 
association, industry organization, government institution and civic group undertaking training by the 
provisions of this Act shall provide life and accident insurance coverage for every trainee: Provided, That 
the premium payments of said insurance policy shall be borne by the establishment  
SEC. 18. Implementing Rules and Regulations. – Within ninety (90) days after the effectivity of this 
Act the TESDA, in consultation with relevant stakeholders, shall issue the necessary rules and regulation s 
for the effective implementation of this Act.  
SEC. 19. Separability Clause. – In the event any of the provisions of this Act is declared unconstitutional, 
the validity of the other provisions shall not be affected by such declaration.  
SEC. 20. Repealing Clause. – All laws, decrees, orders, rules, and regulations or parts thereof 
inconsistent with this Act are repealed or modified accordingly.  
SEC. 21. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the Official 
Gazette or a newspaper of general circulation. 
Approved,