Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO.

Introduced by Representatives FERDINAND MARTIN G. ROMUALDEZ,
YEDDA MARIE K. ROMUALDEZ, FERDINAND ALEXANDER A. MARCOS.
and JUDE A. ACIDRE

EXPLANATORY NOTE

Apprenticeship is recognized by many counties around the world, regardless of their differing
realities, capacities, and levels of development, for its potential in reducing skills mismatch, meeting skills
demand in rapidly-changing labor markets, providing cost-effective taining, promoting private sector
development, and smoothing transitions to the world of work. The growing interest in apprenticeship
systems also emerged from the context that its implementation gives a significant advantage of increasing
the employability of the youth!

The basic objective of the bill is to reform the national apprentice program by providing the youth
with skills and access to employment, and provide enterprises with a mechanism to ensure a continuous
supply of skilled workers

‘The proposed measure incorporates the involvement of the Technical Education and Skills
Development Authority (TESDA) as the primary Technical Vocational Education and Training ([VET)
authority. In addition, it sets the duration of training according to the complexity of the skills to be learned
and provides for the issuance of training completion certificates to formalize the program. Moreover, this
proposal expands the protection of apprentices through the provision of a training allowance and disability
and/or accident insurance

This bill builds upon the provisions and objectives of House Bills Numbered 275, 1259 and 2045
filed during the 18 Congress by Reps. Michael Edgar Y. Aglipay, Luis Raymund F. Villafuerte Jr. and
Alfred Vargas, respectively.

In view of the foregoing, the passage of this important measure is earnestly sought.

"11.0, 2012. The Youth Kimplnyment GesaeA Cal for Aeton, Reston and Conchass, Enterta aber conference, 1016 Sesin (neva


DINAND 6A] YEDDA MARIE K. ROMUALDEZ
Representative Representative
First District, Leyte Party-List, Tingog Sinirangan

FERDINAND MUN MARCOS JUDE ¥/ACIDRE
Representative Repldsentative

First District, locos Norte Party-List, Tingog Sinirangan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

20

HOUSE BILL NO.

Introduced by Representatives FERDINAND. MARTIN G. ROMUALDEZ,
YEDDA MARIE K. ROMUALDEZ, FERDINAND ALEXANDER A. MARCOS, and
JUDE A. ACIDRE

AN ACT
PROVIDING FOR A REVISED APPRENTICESHIP PROGRAM REPEALING FOR
‘THE PURPOSE CHAPTERS I AND II OF TITLE II OF PRESIDENTIAL DECREE
NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES

Beit enacted by the Senate and Howse of Representatives ofthe Repub of the Philppies in Congress asrembed:

SECTION 1. Short Title. - This Act shall be known as the "Revised Apprenticeship
Program Act”.

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to
establish a reformed apprenticeship program that will ensure the availability of qualified
manpower in the field of critical and in-demand technical skills through the active participation
of all workers, enterprises, government agencies, and non-governmental organizations
concerned.

SECTION 3. Statement of Objectives. - This Act aims to:

a. Help meet the demand of the economy for trained human resource;

b. Have a national apprenticeship program that includes on- and off- the- job tsaining
components with tripartite involvement;

¢. Promote the engagement of young workers through training and development;

d. Enhance existing standards for the training and development of apprentices;

¢. Recognize the indispensable role of private enterprises in the training and development
of human resource;

£ Strengthen the advocacy on the apprenticeship training program to encourage the
participation of enterprises and young workers;

g; Increase productivity and competitiveness of entexprises by ensuring the availability of

1


skilled human resource; and
h. Harness corporate social responsibility towards the development of skilled manpower
to meet the requirements of industries,

SECTION 4. Definition of Terms. - As used in this Act:

a. Apprentice refers to a person undergoing training for an approved apprenticeable
occupation during an established period governed by an apprenticeship contract;

b. Apprenticeship refers to a training within an enterprise involving a contract between an
apprentice and an enterprise on an approved apprenticeable occupation;

cc. Apprentcrable occupation refers to an occupation offically endorsed by a tripartite
body and approved for apprenticeship by the Technical Education and Skills
Development Authority (TESDA);

4. Apprenticeship contract refers to an agreement wherein an enterprise binds itself to
train the apprentice who in turn accepts the terms of training for the recognized
apptenticeable occupation. It also contains the rights, duties and responsibilities of
each party;

e. Bipartite plant apprentieship committee refers to a group established by the enterprise
composed of representatives of labor and management responsible for monitoring
progtam implementation, settling differences between management and
apprentices, and

£ Certificate of Competency refers to a document issued by the TESDA to individuals
who are assessed as competent in a cluster of related competencies;

g, Centficate of TVET Program Registration refers to a document ssued by the TESDA
gmnting an authority to an enterprse to offer a program in an apprenticeable
‘occupation;

h. Cluster of competencies refers to a group of related competencies that, while it does
not satisfy the requirements of a full qualificatbn, still constitutes an employable
package and can be awarded a Certificate of Competency:

i Competency assessment refers to the process of gathering and judging evidence in
‘order to decide whether a person has achieved a standard of competency;
recommending measures or effective program implementation;

j. Competency standard refers to a written specification of the knowledge, skills, attrude
‘and values requied for the performance of a job, occupation or trade and the
corresponding standand of performance required in the workphce;

k. Dual Training System refers to a delivery system of quality technical and vocational
education which requires training to be carried out alternately in two venues: in
school and in the production plant. In- school training provides the trainee tle
theoretical foundation, basic training, guidance and human formation. while in-
plant training develops the trainee’s skills and proficiency in actual work
conditions as it continues to inculcate personal discipline and work values;

1. Enterprise wefers to a participating establishment that directly engages an apprentice
based on an approved apprenticeship program;

m.Qualifcation refers to a package of competencies describing a particular function
or job role existing in an economic sector covering the work activities requized to
undertake a particular job;

n. Training plan refers to the specification for the apprenticeship program of an
enterprise which desctbes all the karning experience a student undergoes generally
including the competencies to be acquited wihin the progam, the underpinning
knowledge, theories and principles, and the assessment arrangement;

0. Unit of Competency refers to an actwvity that comprises a manageable component of work

2


described in terms of elements. performance criteria, range of variables and evidence
guide.
SECTION 5. Qualifications of an Apprentice.

To qualify as an apprentice, a person

must:
a. Beat kast fifteen (15) years of age;
b. Possess good moral character, vocational aptitude and capacity for apprenticeship
as determined by the enterprise; and
c. Have the abiity to comprehend and follow oral and written instructions.

Trade, industry and hbor organizations may recommend t TESDA appropriate
educational requirements for different occupatioos.

SECTION 6. Aptitude Testing of Applicants. ~ Consistent with the minimum
qualifications of an apprentice under Section 5 haeof, the bipartte phnt apprentceshp
committees shall have the primary responsibilty of providing appropriate aptitude
examinations inthe selection ofapprentices.

SECTION 7. Training of Apprentices. - Only enterprises. with programs
registered with the TESDA may enter into apprenticeship contracts and train apprentices in
approved apprenticeable occupations.

SECTION 8. Apprenticeship Training Program Content and Delivery. —
All qualifications with training regutions promupated by the TESDA Board are
automatically classified as apprenticeable. To meet the immediate requirements of
enterprises for skilled workers, the TESDA Board must approve new apptenticeabl
occupabns endorsed by the appropriate Regional Technical Education and Skills
Development Committee upon consultation with workers’ groups and industry
representatives.

The apprenticeship program shal emphasize the need for theoretical instruction, The
enterprise may seek partnershp with a TechnicalVocational Education and Training (IVET)
institution in its design and delivery.

SECTION 9. Apprenticeship Period. —The apprenticeship period shall be
based on the duration of training required in the training plan and on the complexity of
the skills to be learned by the apprentices.

SECTION 10. Apprenticeship Program Registration. ~The registration of an
apprenticeship program can be for a qualification, a cluster of competencies, or bundled
qualifications as contained in the training regulations. A letter of application stating the
intention, the certificate of undertaking, and the training plan shall be submitted to TESDA
for approval. A Certificate of TVET Program Reggtration shall be issued to the enterprise
to signify authorization for specific qualification or competency clusters.

An apprenticeship program may be approved on a no-training regulations bass
prowied that the applicant enterprise can show proof of the demand for such skill.

The TESDA shall provide technical assistance to applying and implementing
enterprises to be able to comply with the provisions of this section.


SECTION 1. Contents of the Apprenticeship Contract. — ‘The apprenticeship
contract must conform with the ks ssued by the TESDA and shall inchde the following:

a. Nature, syllabus, timetable, and purpose of trainings

b, Petiod of training, depending on the approved training regulations;

c. Training allowances prescribed by industry subsectors through tripartite
consultations which in no case shall start below seventy-five percent (75%) of
the applicable minimum wage; Provided, however, That contributions to the
training allowance by government agencies and/or non-governmental
organizations shall be considered in computing the seventy-five percent (75%);

d. Schedule of training allowance payment;

¢. Training hours;

£. Process for the termination of apprenticeship; and

g. General rights and obligations of both parties.

SECTION 12 Signing of the Apprenticeship Contract. — Every apprenticeship
contract shall be signed by the apprentice and the enterprise, recognized orgarzation,
association or group or their authotzed representatives.

An apprenticeship contract with a person under eighteen (18) years of age shall be
signed by the parent or guardian of sal person or, if the latter is not avaible by an
authorized representative. The contract shall be binding during its lifetime, subject to. the
ght of the apprentice to terminate the same after a month's notice

Every apprenticeship contract entered into under this Act shall be approved by the
bipartite plant apprenticeship committee involving the firm owner and representatives of
the firm workers, Copies of the apprenticeship contract shall be furnished the firm owner and
the apprentice.

SECTION 1 Apprenticeship Models. — Enterprises with approved
apprentices programs may choose from any of the following apprenticeship modes
which may we the Dual Training System approach:

a. Apprenticeship involving a company and an identified training institution;

b. Apprenticeship involving a group of companies arid a training institution;

c. Apprenticeship involving an industry training center and a company ot a group of
companies; or

d. Other schemes to be established by the TESDA in consultation with enterprise
owners, labor and training institutions subject to the approval of the TESDA
Board.

SECTION 44 Apprenticeship Administration. — ‘The'TESDA Board shall be
response for setting up the overall apprenticeship poky and standards. The TESDA
Secretariat shall be responsble for apprentices administration, monitoring and evahation
of on and off-the-job training,

SECTION 15 Investigation of Violation of Apprenticeship Contract. ~
The Bipartte Plant Apprenticeship Committee, mofv proprio ot upon comphint of any
interested party, shall have inital responsibility for setting differences arising out of
apprenticeship contracts. In case it is not able to settle such differences, the TESDA

4


Provincial Director shall investigate and submit a recommendation to the TESDA Regional
Director who shall render a decision pursuant to pertinent ruks and regulations as may be
prescribed by the TESDA Board.

SECTION 16 Appeal to the TESDA Director General. ~ The decision of the
TESDA Regional Diector may be appealed by any aggrieved person to the TESDA
Director General within five (6) days from receipt of the dedion. The decison of the
‘TESDA Director General shall be final andexecutory.

SECTION 17. Termination ofApprenticeship. -

Valid causes to terminate the apprenticeship contmet:

a. By te enterprise:

1. Habitual absentecism in on-the-job training and related theoretical instructions
activities:

2. Willful disobedience of company rules or insubordination of lawful order of a
superior;

3. Poor physical condition, prolonged illness. or permanent disability which
incapacitates the apprentice from working;

4. Theft or malicious destruction of company property or equipment;

5. Inefficiency, or poor performance on the job or in the classroom for a prolonged
period despite warnings duly given to the apprentice; and

6. Engaging in violence or other forms of misconduct inside the enterprise's
premises.

. By the apprentice:

1.Substandard or harmful working condion within the enterprise's premises;

2. Repeated viohtions by the enterprise of the terms of the apprenticeship agreement;

3. Crueland inhuman treatment;

4. Personal ptoblm which in the opinion of the apprentice shall prevent the
satisfactory performance of the job by the apprentée; and

5. Badhealth and continuing ilhess.

SECTION 18. Rules and Procedure on the Termination of the
Apprentice ship. -
a Apprenticeship Committee Level
1. The enterptise or apprentice interested in terminating the contract may do so by
notifying first the Bpartite Pant Apprenticeship Committee.
2. The Committee confers with both partes and mediates the differences between them.
3. If mediation or settlement is not possible, the Committee advises the complainants to
apply for the termination at the Regional Office concemed.
b, Regional Level
1, The complainant verbally presents the case to the TESOA Regional Office. If the
complaint merits consideration, the complainant is made to duly accomplish an
Application for Termination of Apprenticeship form.
2. The concerned unit or division of the TESDA Regional Office verifies the
veracity and validity of the claim within five (5) days from its receipt by:
a. Calling both the enterprise and the apprentice for a conference; of
b. Sending a representative to the enterprise for that purpose.
3. In case a ground for approval exists


a. The investigating officer (field representative) shall initiate the application for
termination.
b. The chief of the concerned unit or division of the TESDA Regional Office
shall verify the same.
¢. The application for termination shall immediately be forwarded to the
Regional Director for appropriate action, after which a copy of the acted
upon application shall be furnished the applicant and the second party. This
process shall be completed within three (3) days from receipt of the
document by the office of the concerned Regional Director.
d. A copy of each approved application shall be furnished to the concerned
office of the TESDA.
& Agency Level
1. If either of the parties is not satisfied with the decision of the Regional Director
the case may be appealed, within the reglementary period of five (5) days from
receipt of the document, to the TESDA Director-General whose decision shall
be final and unappealable.

SECTION 19. Competency Assessment and Certification. - The apprentices
shall, within the apprenticeship period, undergo competency assessment for qualifications
to the training reguktions. A national certificate shall be issued to all those who demonstrated
achievement of the competency standards,

SECTION 20. Training Certificate. - A training certificate shall be issued by
the authorized enterprise to gnify completion of the apprenticeship program in
‘accordance with the approved training desigl 1 The certificate shall contain a Ist of the units
of competency acquired and shall be comparable to completion of a training program in a
TVET institution.

SECTION 21 Compulsory Apprenticeship. - When the national securty ot
particulr requitements of economic development so demand, the President of the
Republic of the Phiippines shall require compubory training of apprentices in certain trades,
occupations, jobs or employment kvels where shortage of trained manpower is deemed
critical as determined by the TESDA Board.

SECTION 22. Incentives. — An additional deduction from the gross income of
one-half (1/2) of the bor tmining expenses incurred from developing the productivity
and efficiency of apprentices shall be granted to the person of enterprise organizing an
apptenticeshp program: Provided, That the employer shall be exempt from the payment of
the apprenticeship fee and that such program shall be mcognized by the TESDA:
Provided further, That such deduction shall not exceed ten percent (10%) of the training
allowance of the apprentices: Provided finally, That the enterprise that wishes to avail of ths
incentive shall pay its apprentices the minmum wage. Micro-cottage and small enterprises wih
kess than one hundred (100) employees shall be exempt from paying the apprenticeship fee

SECTION 23. System of Equivalency. — Apprenticeship graduates. shall be
awarded equivalent unit credits in the formal system of education that can be used in
pursuing tertiaty degree courses subject 0 the integmted polcies and guidelines on equivalency
and Adult Education Acceleration Progam of the TESDA, the Commission on Higher
Education (CHED) and the Department of Education (DepEd).


SECTION 24. Insurance for Apprentices. ~ Ewery participating enterprise,
group or association, industry, organization, government institution or civic group undertaking
training in accordance with the provisions of this Act shall provide a disability or accident
insurance policy in favor of the trainee or apprentice during the apprenticeship petiod.

SECTION 25. Penalty Clause. — Enterprises found offering unregistered
apprenticeship progmms shall be subjected to progam csure proceedings without
prejudice to the filng of administrative, criminal, or civil iabiities. The TESDA Board may file
the necessary civil or criminal case as may be deemed reasonable and appropriate and after
the deliberation of the TESDA Board pursuant to this Act for any of the following causes:

a. Fraud or deceit committed in connection with the appkation for the opening of
apprenticeship programs; and

b. Faiure to compl with conditions or obligations prescribed under this Act of its
implementing mikes and reguhtions.

Any vioation of the provisons of this Act or its implementing rules and regulations
shall be punished with a fine of not kss than One Thousand Pesos (P1,000.00) nor more than
Ten Thousand Pesos (P1000000), or imprsonmentof not less than three months nor more
than three years, or both such fine and imprisonment at the discretion of the court.

SECTION 26. Transitory Provision. ~ All existing apprenticeship programs
and training regulations shall be vaki unti after the TESDA have conducted an assessment and
revaldation for consistency with the provisions of this Act and its implementing rules and

rguitions,

SECTION 27. Abolition of the Learnership Program. ~ To rationalize
and ensure the effective implementation of the Reformed Apprenticeship Program, the
Learnership Programis hereby abolished.

SECTION 28. Implementing Rules and Regulations. - The TESDA
Board shall issue the implementing rules and regulations wihin ninety (0) days after the
effectivity of this Act.

SECTION 29. Repealing Clause. ~ Chapters I and II of Title II of Presidential
Decree No. 442. as amended, otherwise known as the Labor Code of the Philippines are
hereby repealed. Executive Order No. 111 series of 1986, R.A. No. 7796 or the "TESDA
‘Act of 1994" and all other laws. presidential decrees, issuances, executive orders, letters of
instruction, and rules and regulations contrary to or inconsistent with the provisions of this,
Act are hereby amended accordingly.

SECTION 30. Separability Clause. -1f any provision of this Act is held invalid
or unconstitutional, the same shall not affect the validity and effectivity of the other

provisions hereof.

SECTION 31. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,