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Presidential Decree 442 Senate Bill 1392 House Bill No.

5303
“Apprenticeship Training System “Revised Apprenticeship Program
Act of 2017” Act

Objective To help meet the demand of the To establish an apprenticeship To establish reformed
economy for trained manpower. program that will ensure the apprenticeship program that will
To establish a national availability of qualified human ensure the availability of qualified
apprenticeship program through resource in critical, in-demand, and manpower in the field of critical
the participation of employers, hard-to-fill occupations and in-demand technical skills
workers and government and non- through active participation of all
government agencies workers, enterprises government
To establish apprenticeship agencies and NGOs concerned
standards for the protection of
apprentices.
Qualifications of an Apprentice a. Be at least 15 years of age a. Be at least 15 years of age, a. Be at least 15 years of age
b. Must possess vocational provided, that an b. b. Must possess vocational
aptitude and capacity for apprentice below 18 years aptitude and capacity for
appropriate tests of age shall not be exposed appropriate tests
c. Must possess the ability to to dangerous and c. Must possess the ability to
comprehend oral and hazardous occupations comprehend oral and
written instructions b. Must possess vocational written instructions
aptitude and capacity for
appropriate tests
c. Must possess the ability to
comprehend oral and
written instructions
Aptitude Testing of Applicants Any person to be engaged The Bipartite plant apprenticeship
as apprentice shall undergo committee shall have the primary
the appropriate aptitude responsibility of providing
exams which shall be appropriate aptitude examinations
administered by the BEAC. in selection of apprentices.
Contents of Apprenticeship a. Wage rates of apprentices a. Compentencies that will be a. Nature, syllabus, timetable,
Contract shall conform to the rules acquired within the and purpose of training
apprenticeship program
issued by the Secretary of based on the Training Plan b. Period of training,
Labor and Employment and the method of depending on the approved
b. Period of apprenticeship competency assessment training regulations
shall not exceed 6 months. b. The period of training c. Training allowances
c. Wage rates shall not be depending on the approved prescribed by the industry,
below 75% of the Training Plan which in no case shall start
applicable minimum wage c. Training Allowance, which below 75% of the
in no case shall be below applicable minimum wage:
No enterprise shall be allowed to 75% of the applicable provided, however, that
engage apprentices more than 20% minimum wage. contributions
of the total number of its regular d. Schedule of training
employees. allowance payment
e. An undertaking from the
enterprise that it shall
provide a disability and/or
accident insurance policy in
favor of the apprentice
during the apprenticeship
period
f. The general rights and
obligations of both parties,
grounds for termination of
the contract and the
process for the termination
of the apprenticeship
contract.

No enterprise shall be allowed to


engage apprentices more than 20%
of the total number of its regular
employees.
Apprenticeship Period Shall be based on the duration of Shall be based on the duration of
training required in the Training training required in the training
Plan and on the complexity of the plan and on the complexity of skills
skills to be learned by the to be learned by the apprentices
apprentices, provided, that the
period shall not be less than 6
months
Employment of Apprentices Only employers in the highly Only enterprises with Only enterprises with programs
technical industries may employ Apprenticeship Programs registered registered with the TESDA may
apprentices and only in with TESDA can enter into enter into apprenticeship contracts
apprenticeable occupations apprenticeship contracts and train and train apprentices in approved
approved by Secretary of Labor and apprentices in approved apprenticeable occupations
Employment apprenticeable occupations
Apprenticeship Models Enterprises with approved Enterprises with approved
apprenticeship program may apprenticeship programs may
choose from any of the following choose from any of the following
apprenticeship schemes: apprenticeship models which may
use Dual Training System Approach:
a. Involving a company or
group of companies and a. Apprenticeship involving a
identified education and company and an identified
training institution training institution
b. Conducted entirely by a b. Apprenticeship involving a
company with group of companies and a
demonstrated capacity to training institution;
conduct theoretical c. Apprenticeship involving an
instruction industry training Center and
c. Other schemes to be a company or a group of
established by the TESDA in companies; or
consultation with d. Other schemes to be
enterprise management, established by the TESDA in
labor and training consultation with
institutions and subject to enterprise owners, labor,
the approval of TESDA and training institutions
board. subject to the approval of
the TESDA Board.
Investigation of Violation of Upon complaint of any interested The Bipartite Enterprise The Bipartite Plant Apprenticeship
Apprenticeship Agreement person or upon its own initiative, Apprenticeship Committee shall Committee, motu proprio or upon
the appropriate agency of the DOLE have the authority to settle complaint of any interested party,
or its authorized representative differences arising out of shall have initial responsibility for
shall investigate any violation of an apprenticeship contracts upon settling differences arising out of
apprenticeship agreement pursuant complaints of any interested person apprenticeship contracts. In case it
to such rules and regulations as or upon its own initiative. If BEAC is not able to settle such
may be prescribed by the Secretary shall be unable to settle differences, the TESDA Provincial
of Labor and Employment differences, the TESDA Secretariat Director shall investigate and
or its authorized representative submit a recommendation to the
shall investigate and render a TESDA Regional Director who shall
decision pursuant to pertinent rules render a decision pursuant to
and regulations as may be pertinent rules and regulations as
prescribed by TESDA Board. may be Prescribed by the TESDA
Board
Appeal to the TESDA Director The Decision of the TESDA The Decision of the TESDA
General Secretariat or its authorized Secretariat or its authorized
representative may be appealed by representative may be appealed by
any aggrieved person to the TESDA any aggrieved person to the TESDA
Director General within 5 days from Director General within 5 days from
the receipt of the decision. The the receipt of the decision. The
decision of the TESDA Director decision of the TESDA Director
General shall be final and General shall be final and
executory. executory.
Compulsory Apprenticeship When the national security or When the national security or When the national security or
particular requirements of particular requirements of particular requirements of
economic development so demand, economic development so demand, economic development so demand,
the President of the Republic of the the President of the Republic of the the President of the Republic of the
Philippines shall require compulsory Philippines shall require compulsory Philippines shall require compulsory
training of apprentices in certain training of apprentices in certain training of apprentices in certain
trades, occupations, jobs or trades, occupations, jobs or trades, occupations, jobs or
employment levels where shortage employment levels where shortage employment levels where shortage
of trained manpower is deemed of trained manpower is deemed of trained manpower is deemed
critical as determined by the TESDA critical as determined by the TESDA critical as determined by the TESDA
Board. Board. Board.
Abolished the Learnership Program

Incentives An additional deduction from the An additional deduction from the An additional deduction from the
TAXABLE INCOME equivalent to ½ TAXABLE INCOME equivalent to ½ gross income of one-half (½) of the
of the value of training expenses of the value of training expenses labor training expenses incurred
incurred for developing the incurred for developing the from developing the productivity
productivity and efficiency of productivity and efficiency of and efficiency of apprentices shall
apprentices program shall be apprentices program shall be be granted to the person or
granted to the person or enterprise granted to the person or enterprise enterprise organizing an
organizing an apprenticeship organizing an apprenticeship apprenticeship program:
program. program.
Provided, that the employer shall
Such program must be duly Such program must be duly be exempt from the payment of the
recognized by TESDA recognized by TESDA apprenticeship fee and that such
program shall be recognized by
Deduction shall not exceed ten Deduction shall not exceed ten TESDA
percent 10% of direct labor wage percent 10% of direct labor wage
and that the person who wishes to and that the person who wishes to Deduction shall not exceed 10% of
avail of this incentive shall pay the avail of this incentive shall pay the the training allowance of the
apprentices Training Allowance apprentices Training Allowance apprentices.
equivalent to the applicable equivalent to the applicable
minimum wage. minimum wage. Enterprises that wishes to avail of
this incentive shall pay its
apprentices the minimum wage.
Micro-cottage and small enterprises
with less than 100 employees shall
be exempt from paying the
apprenticeship fee.

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