Trabaho Batay Sa Galing at Kasanayan Act

Sellate Office of the stinctarp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session 25 AUG 27 P5:28 SENATE RECEIVED BY: S. No. 1298 Introduced by Senator Robinhood Padilla AN ACT PROMOTING SKILLS-BASED HIRING IN THE PRIVATE SECTOR BY REQUIRING CONSIDERATION OF COMPETENCY-FOCUSED RECRUITMENT PRACTICES FOR SKILLS-ORIENTED EMPLOYMENT POSITIONS EXPLANATORY NOTE It is a painful reality that a large portion of our population is unable to pursue or complete tertiary education due to systemic poverty. Many of our youth are forced to forego their dreams of higher education to become family breadwinners-taking on the responsibilities of helping to support their families and send younger siblings to school. This socio-economic burden robs them of formal credentials but not of capability. Despite the absence of college degrees, countless Filipinos possess valuable practical skills, technical expertise, and real-world work experience-qualities that remain untapped due to the rigid hiring practices. These skilled individuals continue to be overlooked simply because they lack academic titles, even when such credentials are not directly relevant to the jobs for which they are applying to. As of April 2025, the Philippine Statistics Authority (PSA) reported an unemployment figure of 2.06 million, placing the unemployment rate at 4.1%. A significant contributing factor to this persistent issue is the prevalence of unnecessarily high educational requirements and restrictive job qualifications in the private sector. In many instances, companies continue to require college diplomas for positions that

could be effectively performed by individuals with technical training or proven practical skills. This mismatch between the hiring standards and actual job requirements creates a barrier not only for skilled workers but also for the country's economic development. According to the PSA, the services sector remains the top employer, accounting for 61.9% of the workforce-many of these roles do not inherently require a college degree but instead demand competence, reliability, and sKill. Globally, several countries have successfully implemented skills-based hiring systems, resulting in improved employment rates, more inclusive labor markets, and enhanced productivity. For instance, in countries like Germany, Canada, and Singapore, employers have adopted hiring frameworks that recognize vocational certifications, apprenticeship programs, and real-life experience as valid qualifications. These practices have helped bridge workforce gaps and provided fair opportunities to individuals from diverse educational backgrounds. In this light, the proposed measure seeks to institutionalize skills-based hiring in the private sector by requiring companies to give due consideration to candidates competencies, practical experience, and technical certifications- particularly in skills- oriented job positions. It encourages a hiring culture that is inclusive, merit-based, and aligned with actual job demands. In view of the foregoing, the passage of this measure is earnestly sought. ROBINHOOD PADILLA Senator

Senate 'ifice of the Ecretary TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session 25 AUG 27 P5:28 SENATE RECEIVED BY: S. No. 1298 Introduced by Senator Robinhood Padilla AN ACT PROMOTING SKILLS-BASED HIRING IN THE PRIVATE SECTOR BY REQUIRING CONSIDERATION OF COMPETENCY-FOCUSED RECRUITMENT PRACTICES FOR SKILLS-ORIENTED EMPLOYMENT POSITIONS 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 " Trabaho Batay sa Galing

2 at Kasanayan Act."

Sec 2. Declaration of Policy. - Pursuant to the mandate of the 1987 Philippine

4 Constitution, particularly Section 18 of Article II, and Section 3 of Article XIII, which 5 uphold the dignity of labor and promote full employment and equality of employment opportunities for all, and in accordance with the Labor Code of the Philippines, it is 7 hereby declared the policy of the State to ensure inclusive and fair access to 8 employment opportunities. The State shall foster a labor market that values practical competencies, technical skills, and relevant experience as legitimate bases for employment in skill- oriented positions. The State likewise acknowledges the importance of inclusive hiring practices that reduce barriers to employment caused by overreliance on academic credentials.

Sec 3. Statement of Objectives. - This Act seeks to:

a. Promote equitable access to employment opportunities through skills- based hiring mechanisms;

b. Encourage private sector employers to adopt recruitment and selection practices that recognize competencies, certifications, and work experience as valid qualifications; c. Collaborate with relevant agencies, such as but not limited to, Department of Labor and Employment (DOLE) and Technical Education and Skills Development Authority (TESDA), to establish validated metrics and standards for skill-based employment; and d. Contribute to a more inclusive and efficient labor market by aligning job qualifications with actual work requirements.

Sec 4. Definition of Terms. - As used in this act, the following terms shall mean:

a. Skills-Based Hiring - A recruitment and employment approach that evaluates candidates primarily based on their demonstrated competencies, practical experience, and technical skills, rather than solely on formal educational credentials; b. Skills-Based Employment - refers to occupations where technical skills, trade proficiency, or job-specific competencies are the primary requirements for satisfactory job performance; and c. Skills-Oriented Positions - Roles that require a defined set of practical skills and knowledge, typically associated with technical or manual work, including but not limited to janitorial services, drivers, maintenance workers, electricians, messengers, machine operators, and similar positions.

Sec 5. Scope of Application. - This Act shall apply to all private sector employers

operating in the Philippines who hire for skills-oriented positions, including but not limited to: a. Janitorial, sanitation, and housekeeping services; b. Building and equipment maintenance; c. Motor vehicle drivers (including company, delivery, and logistics drivers); d. Office messengers; e. Technical trades (e.g., electricians, welders, Heat, Ventilation, and Air Conditioning [HVAC] technicians); f. Construction Workers;

g. Salon Stylist and/or Technicians; h. Machine or equipment operators; and i. Other positions identified by TESDA or the DOLE as skills-based.

Sec 6. Skill-Based Hiring Process. - Private sector employers covered by this

5 Act shall: a. Include skills and competencies as minimum qualifications in job postings; b. Utilize practical assessments, standardized tests, job simulations or TESDA-recognized assessments to evaluate candidates' competencies; C. Ensure that job applicants are not disqualified solely on the basis of lacking a college diploma or formal academic degree if they meet the essential skills requirements; and d. Maintain documentation of hiring procedures showing the use of competency-based evaluations.

Sec 7. DOLE Partnership and Development of Metrics. - The DOLE, in

coordination with the TESDA, shall: a. Develop standardized metrics and assessment tools to validate candidates' skills and competencies for each skills-oriented position; b. Maintain an accessible database of certified skilled workers accessible to jobseekers and employers; c. Provide capacity-building programs for employers and human resource practitioners on skills-based recruitment and employment; and d. Monitor compliance and report findings annually to Congress.

Sec 8. Incentive for Employer Compliance. - To encourage compliance and

promote best practices, the following incentives may be made available to compliant private sector employers: a. Priority access to government training subsidies or partnership programs; b. Possible tax deductions or incentives for documented expenditures related to the implementation of skills-based recruitment (subject to regulations issued by the Department of Finance and Bureau of Internal Revenue); and

c. Access to government-certified talent pools and training support.

Sec 8. Implementing Rules and Regulations. - Within ninety (90) days from the

effectivity of this Act, the DOLE, in coordination with TESDA, and other concerned agencies and stakeholders, shall promulgate the necessary rules and regulations to 5 effectively implement the provisions of this Act.

Sec. 9. Separability Clause. - If any provision of this Act shall be held

unconstitutional or invalid, the other provisions not otherwise affected shall remain in full force and effect.

Sec. 10. Repealing Clause. - All laws, decrees, orders, issuances, and rules and

regulations, or parts thereof inconsistent with the provisions of this Act are hereby 4 repealed or modified accordingly.

Sec. 11. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,