Revised National Apprenticeship Program Act

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session JUL 17 P4:00 SENATE RECI S. No._ 705 Introduced by Senator MANUEL "LITO" M. LAPID PROVIDING FOR A REVISED NATIONAL APPRENTICESHIP PROGRAM REPEALING FOR THE PURPOSE CHAPTERS I AND II OF TITLE II, BOOK II OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES EXPLANATORY NOTE The International Labor Organization defines apprenticeship as a unique form of technical vocational education and training, combining on-the-job training and off-the- job learning, which enable learners from all walks of life to acquire the knowledge, skills and competencies required to carry out a specific occupation. They are regulated and financed by laws and collective agreements and policy decisions arising from social dialogue, and require a written contract that details the respective roles and responsibilities of the apprentice and the employer; they also provide the apprentice with remuneration and standard social protection coverage.1 The Philippines confronts significant hurdles in ensuring that the youth are properly incorporated into the labor force. The main challenges are to reduce unemployment among the youth, to enhance access to quality jobs or education, to improve youth skills development, to provide access to high-quality programs in order * https://www.ilo.org/global/topics/apprenticeships/publications/toolkit/what/ilo-definition/lang- en/index.htm

to make them more beneficial and appealing to employers, and to include important stakeholders in governance structures. Ating ipinapanukala ang bagong National Apprentice Program upang siguraduhin na ang mga bagong henerasyon ng mga manggagawang Pilipino ay may sapat na kaalaman, kasanayan at kakayahan na tangan sa kanilang pagpasok sa labor force ng ating bansa. Sa gayon, tayo ay nakasisiguro na ang ating mga manggagawa ay nagtataglay ng higit pa sa kinakailangan upang sila ay matanggap sa mga trabaho na makakatulong sa kanilang mga pamilya na magkamit ng disenteng pamumuhay gayundin ang kaunlaran ng bansa. This measure seeks to reform the national apprenticeship program under Chapters I and II of Title II of Presidential Decree No. 442 otherwise known as the Labor Code of the Philippines. It seeks to promote youth employment and provide quality apprenticeship and vocational training program to our working population, finding innovative ways to encourage firms to hire young Filipino workers, to introduce early intervention measures and effective job-search assistance for different groups of workers and motivating entrepreneurship and business start-ups. Furthermore, the Technical Education and Skills Development Authority (TESDA) will be the key authority in executing the apprenticeship program under this proposed law. It shall develop manpower and skills strategies, establish appropriate SKill standards and tests, organize and monitor manpower policies and programs, and provide policy direction, recommendations and guidelines for resource allocation to TVET institutions in both the private and public sectors. In view of the foregoing, early passage of this bill is earnestly sought.

TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session JUL 17 P4:00 SENATE RECEIVCO 5" S. No. 705 Introduced by Senator Manuel "Lito" M. Lapid AN ACT PROVIDING FOR A REVISED NATIONAL APPRENTICESHIP PROGRAM REPEALING FOR THE PURPOSE CHAPTERS I AND II OF TITLE II, BOOK II OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Title. — This Act shall be known as the "Revised National

7 Apprenticeship Program Act"

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the

9 State to establish a revised apprenticeship program that will promote youth employment and provide quality apprenticeship and vocational training program to our working population.

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

a. Help meet the demand for trained human resources; b. Have a national apprenticeship program that includes on- and off-the-job training components with tripartite involvement; c. Promote the engagement of young workers through training and development; d. Enhance existing standards for the training and development of apprentices;

e. Recognize the indispensable role of private enterprises in the training and development of human resource; f. Strengthen career guidance and counseling services and other advocacy activities on the apprenticeship training program to encourage the participation of enterprises and young workers; g. Increase productivity and competitiveness of enterprises by ensuring the availability of 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. Apprenticeable occupation refers to an occupation officially endorsed by a tripartite body and approved for apprenticeship by the Technical Education and Skills Development Authority (TESDA); C. Apprenticeship refers to a training within an enterprise involving a contract between an apprentice and an enterprise on an approved apprenticeabie occupation; d. 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 apprenticeable occupation. It also contains the rights, duties and responsibilities of each party; e. Apprenticeship fee refers to the fees being paid by the Enterprise participating in the apprenticeship program; f. Bipartite plant apprenticeship committee refers to a group established by the enterprise composed of representatives of labor and management responsible difference between for monitoring program implementation, settling management and apprentices;

g. Board refers to the TESDA Board; h. Certificate of competency refers to a document issued by the TESDA to individuals who are assessed as competent in a cluster of related competencies; i. Certificate of TVET program registration refers to a document issued by the TESDA granting an authority to an enterprise to offer a program in an apprenticeable occupation; j. Cluster of competencies refers to a group of related competencies that, while it does not satisfy the requirements of a full qualification, still constitutes an employable package and can be awarded a Certificate of Competency; k. 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; 1. Competency standard refers to a written specification of the knowledge, skills, attitude and values required for the performance of a job, occupation or trade and the corresponding standard of performance required in the workplace; m. 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 with the 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; n. Enterprise refers to all participating establishments like group or association, industry, organization, government institution or civic group undertaking trainings in accordance with the provisions of this Act; o. Qualification refers to a package of competencies describing a particular function or job role existing in an economic sector covering the work activities required to undertake a particular job;

p. Training plan refers to the specification for the apprenticeship program of an enterprise which describes all the learning experience a student undergoes generally including the competencies to be acquired within the program, the underpinning knowledge, theories and principles, and the assessment arrangement; and q. Unit ofcompetency refers to an activity that comprises a manageable component of work 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. Be at least 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 ability to comprehend and follow oral and written instructions. Trade, industry and labor organizations may recommend to TESDA appropriate educational requirements for different occupations.

SECTION 6. Aptitude Testing of Applicants. — Consistent with the minimum

qualifications of an apprentice under Section 5 hereof, the bipartite plant apprenticeship committees shall have the primary responsibility of providing appropriate aptitude examinations in the selection of apprentices.

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 regulations promulgated by the Board are automatically 27 classified as apprenticeable. To meet the immediate requirements of enterprises for 28 skilled workers, the Board must approve new apprenticeable occupations endorsed

1 by the appropriate Regional Technical Education and Skills Development Committee 2 upon consultation with workers' groups and industry representatives. The apprenticeship program shall emphasize the need for theoretical 4 instruction. The enterprise may seek partnership with a Technical-Vocational Education and Training (TVET) institution in its design and delivery.

SECTION 9, Apprenticeship Period. - The apprenticeship period shall be based

7 on the duration of training required in the training plan and on the complexity of the 8 skills to be learned by the apprentices.

SECTION 10. Apprenticeship Program Registration. - The registration of an

10 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 Registration 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 basis: Provided, That the applicant enterprise can show proof of the demand for such skill: Provided, further, That it shall not exceed twenty percent (20%) of the total number of regular employees. The TESDA shall provide technical assistance to applying and implementing enterprises to be able to comply with the provisions of this section.

SECTION 11. Contents of the Apprenticeship Contract. - The apprenticeship

contract must conform with the rules issued by the TESDA and shall include the following: a. Nature, syllabus, timetable, and purpose of training; b. Period 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; e. Training hours; f. Process for the termination of apprenticeship; and g. General rights and obligations of both parties. SECTION 12. Signing of the Apprenticeship Contract. - Every 8 apprenticeship contract shall be signed by the apprentice and the enterprise, 9 recognized organization, association or group or their authorized representatives. An apprenticeship contract with a person under eighteen (18) years of age shall 11 be signed by the parent or guardian of said person or if the latter is not available, by 12 an authorized representative. The contract shall be binding during its lifetime, subject 13 to the right 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 17 furnished to the firm owner and the apprentice.

SECTION 13. Apprenticeship Models. - Enterprises with approved

19 apprenticeship programs may choose from any of the following apprenticeship models 20 which may use the Dual Training System approach: a. Apprenticeship involving a company and an identified training institution; b. Apprenticeship involving a group of companies and a training institution; C. Apprenticeship involving an industry training center and a company or 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 Board.

SECTION 14. Apprenticeship Administration. — The Board shall be

2 responsible for setting up the overall apprenticeship policy and standards. The TESDA 3 Secretariat shall be responsible for apprenticeship administration, monitoring and 4 evaluation of on and off-the-job training.

SECTION 15. Investigation of Violation of Apprenticeship Contract. - The

6 Bipartite Plant Apprenticeship Committee, motu proprio or upon complaint of any 7 interested party, shall have initial responsibility for settling differences arising out of 8 apprenticeship contracts. In case it is not able to settle such differences, the TESDA 9 Provincial Director shall investigate and submit a recommendation to the TESDA 10 Regional Director who shall render a decision pursuant to pertinent rules and regulations as may be prescribed by the Board.

SECTION 16. Appeal to the TESDA Director General. - The decision of the

TESDA Regional Director may be appealed by any aggrieved person to the TESDA Director General within five (5) days from receipt of the decision. The decision of the 15 TESDA Director General shall be final and executory.

SECTION 17. Termination of Apprenticeship. — Valid causes to terminate the

apprenticeship contract: a. By the enterprise: 1. Habitual absenteeism 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. b. By the apprentice: 1. Substandard or harmful working condition within the enterprise's premises; 2. Repeated violations by the enterprise of the terms of the apprenticeship agreement; 3. Cruel and inhuman treatment; 4. Personal problem which in the opinion of the apprentice shall prevent the satisfactory performance of the job by the apprentice; and 5. Bad health and continuing illness.

SEC. 18. Rules and Procedure on the Termination of the Apprenticeship. —

a. Apprenticeship Committee Level 1. The enterprise or apprentice interested in terminating the contract may do so by notifying first the Bipartite Plant Apprenticeship Committee. 2. The Committee confers with both parties 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 concerned. b. Regional Level 1. The complainant verbally presents the case to the TESDA 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: Calling both the enterprise and the apprentice for a conference; or il. Sending a representative to the enterprise for that purpose 3. In case a ground for approval exists: i. The investigating officer (field representative) shall initiate the application for termination; ii. The chief of the concerned unit or division of the TESDA Regional Office shali verify the same; iii. 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; and iv. A copy of each approved application shall be furnished to then concerned office of the TESDA. C. 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 regulations. 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

2 authorized enterprise to signify completion of the apprenticeship program in 3 accordance with the approved training design. The certificate shall contain a list of the 4 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 security or

7 particular requirements of economic development so demand, the President of the 8 Republic of the Philippines shall require compulsory training of apprentices in certain trades, occupations, jobs or employment levels where shortage of trained manpower is deemed critical as determined by the Board.

SECTION 22. Incentives to Enterprise. - An additional deduction from the

gross income of one-half (1/2) of the labor training expenses incurred from developing the productivity and efficiency of apprentices shall be granted to the person or enterprise organizing an apprenticeship program: Provided, That said employer shall be exempt from the payment of the apprenticeship fee and that such program shall be recognized 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 this incentive shall pay its apprentices the minimum wage. Micro- cottage and small enterprises with less 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 tertiary degree courses subject to the integrated policies and guidelines on equivalency and Adult Education Acceleration Program of the TESDA, the Commission on Higher Education and the Department of Education.

SECTION 24. Exemption from Probationary Employment. - Certified

apprentices shall be exempted from probationary employment: Provided, That they are employed in occupations requiring the same skills and qualifications standards

1 which they shall have obtained upon passing the competency assessment as provided 2 under Section 19 of this Act.

SECTION 25. Insurance for Apprentices. - Every participating enterprise only

4 as defined under the term enterprise as provided in this Act shall provide a disability 5 or accident insurance policy from an accredited insurance company in favor of the 6 trainee or apprentice during the apprenticeship period.

SECTION 26. Penalty Clause. - Enterprises found offering unregistered

8 apprenticeship programs shall be subjected to program closure proceedings without prejudice to the filing of administrative, criminal, or civil liabilities. The Board may file the necessary civil or criminal case as may be deemed reasonable and appropriate 11 and after the deliberation of the Board pursuant to this Act for any of the following causes. a. Fraud or deceit committed in connection with the application for the opening of apprenticeship programs; and b. Failure to comply with conditions or obligations prescribed under this Act or its implementing rules and regulations. Any violation of the provisions of this Act or its implementing rules and regulations shall be punished with a fine of not less than One thousand pesos (P1,000.00) not more than Ten thousand pesos (P10,000.00).

SECTION 27. Abolition of the Learnership Program. - To rationalize and ensure

the effective implementation of the Revised National Apprenticeship Program, the Learnership Program is hereby abolished.

SECTION 28. Transitory Provision. - All existing apprenticeship programs and

training regulations shall be valid until after the TESDA has conducted an assessment 25 and revalidation for consistency with the provisions of this Act and its implementing rules and regulations.

SECTION 29. Implementing Rules and Regulations. - The Board shall issue the

2 implementing rules and regulations within ninety (90) days after the effectivity of this 3 Act.

SECTION 30. Separability Clause. — If any provision of this Act is held invalid

5 or unconstitutional, the same shall not affect the validity and effectivity of the other 6 provisions hereof.

SECTION 31. Repealing Clause. — Chapters I and II of Title II, Book 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 repealed or modified accordingly.

SECTION 32. Effectivity. - This Act shall take effect fifteen (15) days after its

15 publication in the Official Gazette or in a newspaper of general circulation. Approved,