Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. JOY MYRA S. TAMBUNTING 
EXPLANATORY NOTE 
Prior to 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 jobs-skills mismatch that 
need to be addressed in order to tap the full productive potential of the labor force. 
Enterprise-based education and training (EBET), at present is 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 employability of workers 
and secure the future of industries, could be explained by the rigidity of the current system which 
discourages partnership with industry that can channel more young people to EBET.  
This measure is proposed with the goal of enhancing the skills of 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 to standards which 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. JOY MYRA S. TAMBUNTING 
2nd District, Parañaque City 
March 23, 2021
2:06 PM
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. JOY MYRA 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 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 lo 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,
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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; 
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 t11e 
implementation of 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 an 
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. Period 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 company or entities and a TVI; and 
c. EBET involving 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 entering into an agreement 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 in 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 responsib1l1ty of industry associations, labor groups, 
and the TESDA. A Plant EBET Committee shall be established in every participating enterprise to 
ensure that program implementation is in accordance with 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 pursuant to 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 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 allowable deduction from the gross income of the donor for purposes of computing the taxable 
income of the donor in accordance with 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 in accordance with 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 regulations 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 in a newspaper of general circulation. 
Approved,