0.5 AUG 2014
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Republic of the Philippines poi
HOUSE OF REPRESENTATIVES 4
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

4817

HOUSE BILL NO.

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

EXPLANATORY NOTE

One of the potential contributors to the attainment of our country's developed and
industrialized status is labor. However, unemployment has steadily risen and the number
of jobless Filipinos is continuously sweeping society, thus causing widespread poverty and
hardship, especially among the marginalized sectors.

Among the targets of the Millennium Development Goals is to eradicate extreme poverty
and hunger and it aims to achieve full and productive employment and decent work for all,
including women and young people.

As per the current labor statistics of the Philippine Statistics Authority (Labstat Updates,
Vol. 18 No. 7, March 2014), the January 2014 unemployment rate at 7.5% was up
marginally by 0.4 percentage point from last year. This figure is not statistically different
from the rate recorded in January 2013 at 7.1%. In absolute terms, the total number of
unemployed persons stood at 2.969 million - upped by 193,000 from last year. The
magnitude of unemployed persons has remained stagnant at less than three million since
2006.

This bill aims to institutionalize skills training and retraining in order to provide
employment to marginalized workers. It seeks to provide adequate and relevant skills
training and retraining programs to address the requirements of the industry; and update
the standard skills and introduce new crafts to prepare workers for their employment and
re-employment.

‘The proposal provides for the reskilling of displaced workers, particularly those who were
dismissed due to financial failures or poor performance of their company which is
important as cases of displaced workers are expected to rise with the full implementation
of the Department of Education’s K-12 program in 2016. It also caters for the training
needs of the out-of-school youth and women, and skills training for rural non-farm and
agricultural productivity, including for training programs for those who might be employed
in export-oriented small and medium scale enterprises.

The bill aims to formulate and implement strategies for skills training that will prepare
workers for new skills adaptations, ensure their employment, and become globally
competitive.

Hence, approval of this measure is earnestly requested.

ANGELINA “HELEN” D.L. TAN, M.D.
4th District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILLNO.__

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT
INSTITUTIONALIZING SKILLS TRAINING AND RETRAINING

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 “Skills Training and Retraining
Act."

SEC. 2. Declaration of Policy. - It is the declared policy of the State to affirm labor as a
ary social economic force. It is also the policy of the State to provide adult citizens, the
disabled, and out-of-school youth with training in civics, vocational efficiency, and other
skills.

‘Toward this end, it is the policy of this Act to formulate mechanisms designed to:

(a) Provide adequate and relevant skills training and retraining programs to address the
requirements of the industry; and
(b) Update the standard skills and introduce new crafts to prepare workers for their
employment and re-employment.

SEC. 3. Skills Bulletin. - The Technical Education and Skills Development Authority (TESDA)
in coordination with the Department of Trade and Industry shall maintain an updated list
of needed skills categorized according to industry.

The list shall be made publicly available every month at the Technical Education and Skills
Development Authority, Department of Trade and Industry, and Department of Labor and
Employment and their respective regional offices to ensure the labor group of information.

SEC 4. Reskilling of Displaced Workers. - Skills upgrading opportunities shall be immediately
extended by the TESDA to workers who were dismissed due to an inevitable shutdown of
their company or business establishment.

The TESDA shall orient the dismissed workers with the skills listed in the Skills Bulletin
stated in Section 3.

Dismissed workers shall be required to present a notice of termination or any document
that indicated their dismissal due to the shutdown, bankruptcy or other reasons which
caused their company to cease business operations. The TESDA Secretariat, however, shall
verify the name of the company or business establishment to circumvent false claim from
the worker.

SEC. 5. Appropriations for Retraining of Displaced Workers. - The amount of One Hundred


Million Pesos (P100,000,000.00) used for the funding of the Reskilling of Displaced
Workers for a span of three (3) years shall be appropriated beginning the year following
the approval of this Act.

SEC. 6. Pre-employment Training for the Youth. - The TESDA shall formulate training
programs that will equip out-of-school youths (OSYS) the necessary skills to prepare them
for employment. Training fees shall cover only for the materials and equipment that will be
utilized,

The TESDA personnel involved in charging excessive fees to OSY trainees shall be subjected
to disciplinary action. OSY trainees shall be encouraged to file their complaints to the
TESDA.

A company or business establishment, which hired an OSY graduate shall duly recognize
the certificate awarded to the OSY graduate and shall observe the employment conditions
agreed. The hired QSY shall likewise report any violation committed by the business
establishment or company to the DOLE

7. Training of Women in Non-Traditional Trades. -The TESDA shall provide a discount
of at least ten percent (10%) on training fees as incentive to women who are willing to
undergo training in non-traditional trades or women-applicants shall pay the said training
fees upon employment.

The Department of Labor and Employment through its job pla
employment and service offices shall give priority in providing a
are graduates of non-traditional trades to find jobs.

ement centers or public
rance to women who

SEC. 8. Skills Training for Rural Non-Farm and Agricultural Productivity. ~ In a joint effort,
the Department of Science and Technology (DOST) and the Department of Agriculture (DA)
shall provide the latest and new technologies involved in agro- processing activities and
farm-related activities.

The TESDA in coordination with the DOST and the DA shall conduct the training in every
region.

SEC.9. Appropriation for Skills Training for Rural Non-Farm and Agricultural Productivity. -
‘The amount of Two Hundred Million Pesos (P200,000,000.00) used for the funding of Skills
Training for Rural Non-Farm and Agricultural Productivity for a span of four years shall be
appropriated.

SEC. 10. Skills Training for Export Oriented Small and Medium Scale Enterprise (SMEs). - The
DOLE, through its livelihood programs, shall give priority on training for workers that will
be employed in export-oriented SMEs.

The DOLE in coordination with the DTI shall provide pointers on the latest export
champions to prepare prospective entrepreneurs on the kind of product to venture in.

SEC. 11. Appropriation for Skills Training for export Oriented Small and Medium Enterprise. -
The amount of Sixty Five Million Pesos (P65,000,000.00) used for the funding of Skills
Training for Export Oriented Small and Medium Scale Enterprise for a span of three (3)
years shall be appropriated for the following year upon approval of this Act.

SEC. 12. Penalties. - In the event that the aforementioned appropriations were not utilized
in the manner stated in the given provisions, the guilty party shall be punished by a fine not
exceeding Ten Thousand pesos (P10,000.00) or by imprisonment of not more than four
(4)years or both such fine and imprisonment.


SEC. 13. Separability Clause. ~ The provisions of this Act are hereby declared separable and
in the event any of such provisions is declared unconstitutional, the other provisions, which
are not affected thereby shall remain in force and effect.

SEC.14. Repealing Clause, - All other laws, decrees, executive orders, administrative
orders, rules and regulations or parts thereof which are inconsistent with the provisions of
this Act are hereby repealed, amended or modified accordingly.

SEC. 15. Bffectivity. - This Act shall take effect upon its publication in at least two (2)
newspapers of general circulation.

Approved,