Brandon M.

Banasan 2-JD

Proposed Changes in TESDA Law

TESDA Law House Bill Senate Bill

Objectives 1. Attain international Additional: The same with House Bill
competitiveness 1. Promote full
2. Meet the changing employment of youth
demands for quality and young workers
middle-level 2. Enhance existing
manpower; standards for the
3. Disseminating the training, development
scientific and technical and employability
knowledge base of 3. To strengthen
middle-level advocacy of the
manpower apprenticeship training
development program to encourage
programs; enterprise and young
4. Roles of public and worker’s participation
private institutions in
technical education
and skills development
and training systems;
and
5. Inculcate desirable
values through the
development of moral
character
Apprenticeship The apprenticeship period Same with TESDA Law Based on the duration of
period shall not be less than four training required in the
(4) months and not more Training Regulation and on
than six months. the complexity of the skills
to be learned
Qualification Be at least 15 years of Same with TESDA Law Be at least 15 years of age
age, provided, that an
apprentice below 18 years
of age shall not be
exposed to dangerous or
hazardous occupations
Contents of 1. Wage rates of 1. Competencies that will 1. The nature, syllabus,
Apprenticeship apprentices be acquired within the timetable and purpose of
Contract 2. The period of apprenticeship program training;
apprenticeship shall 2. The period of training 2. The period of training
not exceed six months. depending on the depending on the
3. Apprenticeship approved Training Plan approved training
agreements providing 3. Training allowance, regulations;
for wage rates below which in no case shall 3. Training allowances
the legal minimum be below seventy-five which in no case shall
wage, which in no percent (75%) of the start below seventy-five
case shall start below applicable minimum percent (75%) of the
75 percent of the wage applicable minimum
 applicable minimum
wage, may be entered
into only in accordance 5. An undertaking from the
with apprenticeship
programs duly
approved by the
Secretary of Labor and
Employment.
4. The Department shall
develop standard
model programs of
apprenticeship.
Investigation The appropriate agency of The bipartite plant
of violation of the Department of Labor
apprenticeship and Employment or its
agreement authorized representative
shall investigate any
violation of an
apprenticeship agreement
pursuant to such rules and In case it is not able to
regulations as may be
prescribed by the
Secretary of Labor and
Employment.
Incentives to Additional deduction from
Participating taxable income of one half
Companies (1/2) of the value of labor
training expenses incurred
for developing the
productivity and efficiency
of apprentices/learners
Administrating Employers or entities with
the Aptitude duly recognized
Testing of apprenticeship programs
Applicants *If they do not have
adequate facilities for the
purpose, the Department
of Labor and Employment
shall perform the service
4. A schedule of training wage;
allowance payment 4. Schedule of training
allowance payment;
enterprise that it shall 5. Training hours
provide a disability 6. The process for the
and/or accident termination of
insurance policy in favor apprenticeship; and
of the apprentice during 7. The general rights and
the apprenticeship obligations of both
period parties.
6. The general rights and
obligations of both
parties, grounds and
process for the
termination of contract
Same with House Bill
apprenticeship committee
shall have initial
responsibility for settling
differences arising out of
apprenticeship contracts.
settle such differences, the
TESDA Secretariat or its
authorized representative
shall investigate and
render a decision pursuant
to pertinent rules and
regulations as may be
prescribed by the TESDA
Board.
Same with TESDA Law Additional:
Exempt from the payment
of apprenticeship fee
Bipartite Enterprise Same with House Bill
Apprenticeship Committee
Section 17 of Proposed Senate Bill provides valid causes to terminate the Apprenticeship contract

By the employer:

1. Habitual absenteeism in on-the-job training and related theoretical instructions;

2. Willful disobedience to company rules or insubordination to lawful order of a superior;
3. Poor physical condition, permanent disability or prolonged illness which incapacitates the
apprentices from working;
4. Theft or malicious. destruction of company property and/or equipment;
5. Poor efficiency or performance on the job or in the classroom for a prolonged period despite
warnings duly given to the apprentices; and
6. Engaging in violence or other forms of group misconduct inside the employer's premises.

By the apprentice:

1. Substandard or deleterious working condition within the employer's premises;

2. Repeated violations by the employer of the terms of the apprenticeship agreement;
3. Cruel and inhuman treatment by the employer or his subordinates;
4. Personal problem which in the opinion of the apprentice shall prevent him from a satisfactory
performance of his job; and
5. Bad health and continuing illness.