NINETEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session
HOUSE OF REPRESENTATIVES
lntroduced by Representative Rufus B. Rodriguez
House Bill No.
EXPLANATORY NOTE
This bill was filed during the 18h Congress and was approved by the House of
Representatives.
Employers play a large part in ensuring the success of skills development activities
through both on-the-job and offthe job training. They should be able to participate in
technical vocational education and training (TVET). This will guarantee that there will be
an adequate supply of skills that businesses need right now and that there will be a proper
matching of qualified workers with the available job demands.
This bill seeks to help meet the demand for well{rained manpower; to establish a
national enterprise-based training system and standards; and to broaden the opportunities,
venues of education and training towards greater access.
Engaging the business community in education and training will help reach out to
as many people, especially the youth, who are seeking for jobs and other opportunities.
In view of the foregoing, immediate passage of this bill is earnestly requested.
RU
.RO
GUEZ
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Data shows that many Filipino youth have now changed their outlook about TVET.
From 20'10-20'15, TVET graduates in all delivery modes in the Philippines reached
9,958,974 individuals. However, enrolment in enterprise-based training is only at 408,882
or 4.11o/o.
July 8, 2022
3:03 pm
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NINETEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regu/ar Session
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HOUSE OF REPRESENTATIVES
lntroduced by Representative Rufus B. Rodriquez
SECTION 1. ShorT 7ifle- - This Act shall be known as the "Ente4prlse-Based Education and
Training (EBET) Program Act."
SEC. 2. Declaration of Policy. - lt is hereby declared the policy of the State to enhance the
skills of the country's middle-level workforce. To this end, the State seeks to strengthen
middle-level manpower education and training programs to ensure the steady supply of
educated and competitive manpower equipped with the appropriate skills and desirable work
habits and attitudes to meet the requirements, demands, and standards ofthe workplace both
in the local and international market.
The State recognizes that apprenticeship, learnership, dual training, and other forms of
industry-based training arrangement will help develop and upgrade the skills of the student
trainee in a world where technology is rapidly changing, as well as provide them opportunities
to acquire relevant knowledge and training within the setting of a business enterprise or
industry. The State further recognizes that this mode of knowledge-acquisition will greatly
contribute to the creation of a pool of welFtrained middle-level workforce in the country.
sEc.3.
a)
Objectives. - This Act shall have the following objectives:
To produce well{rained and better equipped manpower capable of responding to the
skill requirements and demands of employers and the industries;
To rationalize the manpower training system by consolidating apprenticeship, dual
training, on{he-job training programs and all other forms of industry-based training
arrangement;
To establish a competency and enterprise-based training system involving the active
cooperation of employers, workers, industry, and the government;
To institute enterprise-based training standards that shall ensure the acquisition by
students and trainees of the right competencies in an environment where their rights
are protected and their safety is ensured; and
To broaden the opportunities, venues of education and training towards greater
access by all workers,
b)
c)
d)
SEC. 4. Definition of Terms. - As used in this Act:
a) Apprenticesh,p refers to a training and employment program involving a contract
between an apprentice and an employer on an approved apprenticeable occupation
and generally aims to provide a mechanism that will ensure availability of qualified
skilled workers based on industry requirements;
b) Competency assessmenf refers to the process of gathering and judging evidence to
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House Bill No. _
AN ACT
ESTABLISHING AN ENTERPRISE.BASED EDUCATION AND TRAINING PROGRAM AND
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
e)
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decide whether a person has achieved a standard or level of competency;
c) 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;
d) Dual education and training refer to the combination of onthe-job training involving
an enterprise and a training institution;
e) Dual training system refers to the delivery of technical-vocational education and
training that combines in-plant and in-school training based on a plan collaboratively
designed and implemented by an accredited dual system educational institution or
training center and an accredited dual system agricultural, industrial, or business
establishments with prior notice and advice to the concerned local government unit.
Under this system, the student trainee shall be provided with the best possible learning
experience, under the shared responsibility of a business establishment which provides
practical training, and an educational institution which provides the required specific,
general and occupation-related theoretical instruction. The dual nature of the training
system requires that the two (2) instructing parties operate in a well-coordinated and
symbiotic manner.
f) Enterprise-based competencies refer to the knowledge, skills and attitudes or values
necessary for competent performance in the workplace that are required from a student
trainee before admission to the EBET program;
g) Enterprise-based education and training program refers to a practical work-related or
workplace-related training program with compulsory related theoretical instructions
conducted onthe-job and implemented within companies, which includes, among
others, any of the following modalities: a) Apprenticeship; b) Leamership; c) Onthe-Job-
Training; d) Practicum; e) Work Appreciation Program; f) Dual Training System; g)
lnternship; and h) ln-Company Training;
h) Enterprise-based studenl 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 training agreement;
i) Enterpise-based training agreement refets to a contract between an enterprise and a
student trainee emphasizing the rights, duties and responsibilities of each party wherein
an enterprise binds itself to train the student trainee who in turn accepts the terms of
education and training;
j\ Leamership refers to a practical training, work-based or on-the-lob program for
approved learnable occupations, for a period not exceeding three (3) months. Only
companies whose learnership programs are approved and registered by the Technical
Education and Skllls Development Authority (TESDA) can hire learners;
k\ Nominat duration of education and training refers to the estimated number of training
hours; and
l) Peiod of education and training refers to the duration when the training commences
and terminates.
sEc. 5. Estabrish ment and coverage of an EBET Program. There shall be established an
EBET Program that shall cover practical work-related or workplace-related training programs
with compulsory related theoretical instructions and shall include training modalities or
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schemes to be grouped as follows: a) EBET by enterprises, which include apprenticeship,
learnership, in-company trainins; b) EBET by TVls and enterprises, which include dual training
system, practicum, on-the-job training, internship, and supervised industry training; and c)
EBET by government agencies, which include work appreciation program, and government
internship program.
All EBET programs established pursuant to this Act shall apply to all work-related or
workplace-related trainings conducted on the job and shall be implemented within enterprises,
firms or companies. The duration of the EBET Programs shall be based on the complexity of
the specific competencies to be learned.
A registered enterprise, group or association, industry, organization, government
institution or civic group that intends or participate in the dual training system and organize an
EBET program shall choose from any of the following training schemes:
a) EBET involving a company or entity and an identified technical-vocational
institution (TVl);
b) EBET involving a group of companies 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. Registration of an EBET Program. - An enterprise, group, association, industry,
organization, civic society, or government agency or instrumentality that intends to organize
an EBET Program shall register such program with the TESDA before entering into an
agreement with student trainees.
The TESDA shall establish a registration mechanism and assign an office that shall
process all EBET program applications, including the applications for registration of civic
groups, associations, organizations, industries, TVET providers, and government institutions
which desire to participate in the EBET Program created under this Act.
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SEG. 7. EBET A greements. - All EBET agreements shall conform with the rules to be issued
by the TESDA and shall include the following:
a) Nature and purpose of training;
b) Training programs;
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 EBET; 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 participating organizations, associations,
government institutions or civic groups, and by the student trainee.
An EBET agreement with a student trainee who is 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 the TESDA shall sign on behalf of the student trainee who is a minor, and
the same shall be binding within the period specified in the agreement: Provided, fufther, That
a student trainee who is a minor shall be excluded from high risk, dangerous or hazardous
occupations.
SEC. 8. Qua/ifications of EBET student trainees. - An applicant for student trainee under
the EBET Program to be conducted by the TESDA must have the following qualifications:
a) At least a high school graduate or its equivalent;


b) Possesses vocational aptitude and capacity as may be 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, in case they do not have adequate
facilities for the purpose; and
c) Possesses the ability to comprehend and follow oral and written instruc{ions
lndustry associations and labor groups may recommend to the TESDA the appropriate
or additional educational requirements for different occupations.
SEC. 9. Responsibility for lheoretical lnstruction. - Compulsory theoretical instructions
shall be part of the EBET Program. ln cases where the program is undertaken in the plant,
theoretical instructions may be delegated to an institution or to a registered TVET provider
which has an applicable program or an existing Memorandum of Agreement or Understanding
with the TESDA.
SEC, '10. EBET Administration. - The TESDA Board shall set the overall policy for the EBET
Program. 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 industry associations,
labor groups, and the TESDA. A Plant EBET Gommittee 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. lnvestigation of Vlolations of EBET Agreemenf. - An lndustry Coordinator to be
designated by the TESDA for each type of industry shall be tasked lo, motu proprio, or upon
complaint of any interested party, bear the responsibility of settling differences arising from
EBET agreements. ln case the lndustry 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 Adminlstrative Remedi*. - 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.
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SEC. 14. Compulsory Participation in the 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 the implementation of the EBET
Program 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; and
b) ln private companies which employ foreign technicians in enterprise-based training
occupations.
SEC. 15. Tax Exemptions. -All grants, bequests, endowments, donations, and contributions
made to and to be used actually, directly and exclusively by the participating training institution
shall be exempt from donor's tax and the same shall be considered as allowable deduction
from the gross income for purposes of computing the taxable income of the donor in


accordance with the provisions of the National lnternal Revenue code of 'tgg7, as amended.
The importation of all new machineries and equipment used in the EBET Program shall
be exempted from customs duties in accordance with the provisions of Republic Act No.
10863, otherwise known as the" Customs Modemization and Taiff Act'.
SEC, 16. Award of Equivalent Unit Credits. - An EBET graduate shall be awarded
equivalent unit credits in the formal system of education 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. lnsurance 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: Provrded, That the premium payments of said insurance policy
shall be borne by the establishment.
SEC. 18. Appropriations. The initial amount for the implementation of this Act shall be
charged against the current year's appropriations of the TESDA. Thereafter, such amount
shall be included in the annual General Appropriations Act.
SEC. 19. lmplementing Rules and Regulations. - Within ninety (90) days after the effectivity
of this Act, the TESDA shall, in consultation with relevant stakeholders, issue the necessary
rules and regulations for the effective implementation of this Act.
SEC. 20. Separability Crause, - ln the event any of the provisions of this Act is declared
unconstitutional, the validity ofthe other provisions shall not be affected by such declaration.
SEC. 21. Repealing Clause. - All laws, decrees, orders, rules and regulations or parts thereof
inconsistent with this Act are repealed or modified accordingly.
SEC. 22. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazefte or in a newspaper of general circulation.
Approved
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