Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETHHNTH CONGRESS
Second Regular Session
HOUSH BILL No.  86£ 0
Introduced by Representative Jaime R. Fresnedi
EXPLANATORY NOTE
This bill seeks to address the problem of employability and competitiveness of
K to 12 graduates. It proposes to create education and employment linkage councils at
the national and local levels  to address the seeming disconnect between the products
of our basic education system and the needs of the industry or the labor market.
Through the ten years that the K to  12 Program was implemented,  it has been
reported that many employers still prefer jumpstarting the careers of college graduates,
rather than hiring those who finished the Senior High School (SHS) program. This is
evidenced by a study made by Philippine Business for Education (PBEd), wherein only
14 out of 70 of the top companies in the country would hire SHS graduates. According
to   the   Philippine   Chamber   of   Commerce   and   Industry's   Human   Resources
Development Foundation,  Inc.  (PCCI  HRDF),  the  hesitation  to  hire  SHS  graduates
maybe due to the fact they still lack the adequate skills and sufficient training that should
have been provided by the K to  12 Program.1   In a separate  study  conducted by the
Philippine Institute of Development Studies (PIDS) in 2020, an alarming rate of only
20% of these fresh graduates were able to join the work force immediately, while 70%
went on to continue their way through college.2
Clearly, a link seems to be missing between how we teach and develop our basic
education leamers in order that those who choose not to pursue a college degree and
decide to join the work force after graduating in Senior High School will be able to enter
the labor market. It is in this respect that this bill is being proposed.
1 "Special  Report: Jobs a  Hit or Miss for Senior High School Graduates," GOVPH, accessed July 18, 2023, https://www.deped.gov.ph/2018/04/07/special-report-jobs-a-hit-
or-in.Iss-for-senic7r-high-school-graduates/.
2  "Revisiting  K to  12  Program Anew,"  Phil.ippine  Institute for  Development Studies  (PIDS), accessed July 18,  2023,  https://www.p.ids.gov.ph/deta.ils/news/in-the-
news/revisiting-k-to-12-program-anew.


Aside from the creation of education and employment linkage councils at the
national  and  local   levels,  the  bill  also  provides  for  the  institutionalization  of  a
consultation  mechanism  among  the  stakeholders.   Provisions  on  work  immersion
programs,  labor market demand forecasting and the development of a national skills
database are also among the more important proposals in this bill.
In view of the foregoing, the passage of this bill is earnestly sought.
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE 0F REPRHSENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
HOUSEB|LLNo.8640
Introduced by Representative Jaime R. Fresnedi
AN ACT
T0  ENHANCE  THE  HMPLOYABILITY AND  COMPETITIVENESS  OF  K TO  12
GRADUATES THROUGH THE CREATION OF EDUCATION AND EMPLOYMENT
LINKAGE     COUNCILS     AT     THE     NATIONAL     AND     LOCAL     LEVELS,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be  it  enacted by  the  Senate  and the  House  Of Representatives  Of the  Philippines  in
Congress assembled:
SECTION  ONE.    Sfoorf  r7t/e.  -  This  Act  shall  be  known  as  the   "Edwccz/z.o77  cz77c7
Employment Linkage Councils Act. "
Sec. 2.  Dec/crrcr/7.o# a/Po/z.c);. -It is the policy of the State to establish, maintain, and
support a complete, adequate, and integrated system of education relevant to the needs of the
people  and  society.  It  is  likewise  the  policy  of the  State  to  ensure  that  graduates  of basic
education   shall   be   empowered   individuals   equipped   with   the   knowledge,   skills   and
competencies acquired through a program that is rooted on sound educational principles and
geared towards excellence and find gainful employment either through the labor market or as
entrepreneurs.
Towards these ends, the government shall establish mechanisms that will provide the
environment for the fulfillment of these declared policies of the State.
See. 3.   Strengthening Multi-Stakeholder  Linkages  and Collaboration;  The  National
and Local Education and Employment Linkage Councils. -To ahignt:ha tralcks and stlairrds of
the K to  12  Basic  Education Curriculum under R.A. No.  10533  with the needs of the labor
market, a National Education and Labor Linkage Council (National Council) shall be created
composed of the Secretaries of the Department of Education (DepEd), Department of Labor
and  Employment,  Director  General  of the  Technical  Education  and  Skills  Development
Authority   (TESDA),   three   (3)   representatives   from  national   industry  partners,   one   (1)
representative each from a   national labor group, and the Union of Local Authorities of the
Philippines (ULAP).
Local Education and Labor Linkage Councils (Local Councils) shall likewise be formed
at the provincial, city and municipal levels to ensure that K to 12 SHS graduates are equipped
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with education, training and skills demanded by the industry partners. The Local Councils snall
be  composed  of the  Chairperson  of the  provincial,  city  or  municipal  local  school  boards
(LSBs), at least two (2) representatives from industry partners in the locality, a representative
of the TESDA provincial office, and a representative from a local employee organization or
association.
Every educational institution offering the SHS Program shall regularly consult with the
Local  Council at least twice a year to be guided by the actions of the council to establish a
mechanism for active collaboration and meaningful communication for the following puiposes :
a.    To provide information to the education institutions for the updating and alignment
of the work component of the SHS program with the market needs as identified by
the industry partners;
b.   To encourage industry partners to accept learners in Work Immersion Programs
(WIPs),   ensure   that  their   deployment   is   done   according   to   their  tracks   or
specialization   courses,   and   enable   them   to   acquire   specialized   skills   and
competencies to advance in their chosen path;
c.    To enable the LSBs to provide relevant data and information to the stakeholders,
increase their awareness of their mutual issues and concerns on the employability
of  SHS  graduates  in  the  locality,  and  give  local  incentives  to  recognize  best
practices on collaboration; and
d.    To assist and provide guidance in the crafting of WIPs of all education institutions
within a province, city or municipality and ensure that the curriculum is aligned
with  industry  needs,   learners  meet  the  minimum  requirements   of  the  work
immersion industry partners, and leamers develop competencies and acquire skills
that are industry-based to improve their work readiness and employability.
Sec.  4.    Work Jm7"ersz.o7c Progrczms.  - The WIPs that are mandated to be crafted by
education institutions shall develop in learners the competencies, skills, work ethic and values
relevant to pursuing further education or joining the world of work.  It shall be designed to
match the needs of the learners and the capabilities of the education institutions vis-a-vis the
demands of the work immersion industry partners.
The Schools Division Office of the DepEd shall approve the WIP as proposed in these
provinces,   cities   or   municipalities,   with   due   compliance   to   legal   and   administrative
prescriptions on the number of hours and delivery models, among others.
Sec. 5.   £c7bor A4crrhe/ Demcz#d Foreccrs/z.#g. -To align the WIP with market demand
and ensure that the knowledge, training  and skills  of K to  12  SHS  graduates match the in-
demand and projected in-demand jobs  of industry partners  in the locality, the  Councils are
hereby mandated to conduct labor market demand studies every three (3) years.
The  data  derived  from  such  demand  forecast  shall  serve  as  basis  for  the  work
components of the SHS Program, the WIPs, the trainings to be conducted, the resources to be
procured,  and  the  skills  to  be  developed  among  the  learners,  alnong  others.  The  demand
forecast will also allow education institutions to focus on employable skills as determined by
medium- to long- temi labor market demand.
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See.  6.    Sfo.//s Dcz/czbas'e.  - The DepEd, in collaboration with the National and Local
Councils,  shall  develop,  maintain  and  update  a  centralized  nationwide  database  of skills
information to serve as one-stop shop for all matters related to the employment of K to 12 SHS
graduates.  This  database  shall  help  strengthen  the  educational  institutions'  linkages  and
collaboration  with  industry  partners,  facilitating  the  meeting  of skills  demand  within  the
province, city, municipality, and the country as a whole.
The skills database shall register the demographic profile of learners including, but not
limited to, their educational background, track and strand completed in SHS, training, skills,
competencies, work immersion performance,  course taken after  SHS, work experience and
employment history. It shall also contain the profiles, demands, and vacancies, among others,
of industry partners. The Implementing Rules and Regulations shall prescribe the process to be
followed in ensuring that the Local Councils themselves provide and register such demographic
infomation as required to be included in the centralized database.
See. 7 .    Affirmative  Hiring  Of K to  12  SHS  Gradrates;  Civil  Service  Commission;
J#cJ#stry Pczr/#crs. -T he Department of Labor and Employment (DOLE), in coordination with
the DepEd, shall conduct studies and research for the crafting of strategies and guidelines to
minimize the impediments to K to 12 SHS employment, and promote the affirmative hiring of
K to 12 SHS graduates.
The  Civil  Service  Commission  (CSC)  is  hereby  mandated  to  review  the  eligibility
requirements  for  government  employment  and  revise  its  policies  to  integrate  the  K  to  12
qualifications in the CSC qualification standards to fulfill the employability of K to  12 SHS
graduates in the government sector. Such K to 12 qualification standards may include, among
others, one' s education as a SHS graduate, experience, training, and eligibility.
The industry partners are likewise enjoined to rethink and review their hiring policies
and job requirements to provide employment opportunities, such as entry-level positions, to K
to  12 SHS graduates.
See. 8.  Fully Deductible Training Expenses from Taxable Income; Additional Item Of
Ded2jc/z.o#.  - Industry partners  shall  be  allowed  an additional  item  of deduction from their
taxable income of the full value of training expenses incurred for the skills development of K
to 12 SHS graduates hired pursuant to this Act, hereby amending Sec. 34 (A) (1) (a) (v) of R.A.
No. 8424 or the National Internal Revenue Code of 1997, as amended by R.A. No.11534 or
"CREATE".
Sec.  9.    A4cz7?dcr/or);  Jzevz.ew  cz#d Jmpczc/ ,4sses'sme#/.  -  The  DepEd  shall  conduct  a
mandatory  review  of the  implementation  of this  Act  and  submit  an  assessment  report  to
Congress on its impact and effectiveness, not later than two (2) years from its effectivity and
every two (2) years thereafter.
Sec.  10.  4pf)rapJ'z.czfz.o7€f. -The amount necessary for the initial implementation of this
Act shall be charged against those authorized in the current appropriations of the DepEd, dole
and the TESDA. Thereafter, the amount necessary for its continued implementation shall be
included in the respective budgets of said agencies in the annual General Appropriations Act.
See.1\.   Implementing Rules and Regulations  (IRR). -V\J.Tthir\ ninety (90rty days frorrL
the effectivity  of this Act, the DepEd,  CSC,  DOLE,  TESDA,  and other public and private
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stakeholders, including industry partners, shall issue the rules and regulations implementing its
provisions. The IRR issued pursuant to this section shall take effect thirty (30) days after its
publication in a newspaper of general circulation.
Sec.   12.     Sapczrczbz./i.ty  C/czzjfe.   -  If  any  provision  of  this  Act  is  held  invalid  or
unconstitutional, the other provisions not so declared shall remain in force and effect.
Sec.   13.      Jzepecr/z.7?g   C/cr2A§e.   -   All   laws,   executive   orders,   presidential   decrees,
administrative  orders,  rules  and  regulations,   issuances,   or  parts  thereof  contrary  to   or
inconsistent with the provisions of this Act are hereby repealed or amended accordingly.
See.  14.  E/Tec/z.w.fy. -Notwithstanding the non-issuance of the IRR, this Act shall take
effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general
circulation.
Approved,
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