APPRENTICES and LEARNERS

What laws are applicable?

R.A. No. 7796 [Technical Education and Skills Development Act (TESDA) of 1994] and its
Implementing Rules and Regulation (Promulgated: August 25, 1994)

P.D. No. 442 (Labor Code of the Philippines)

E.O. No. 111 issued on December 24, 1986

Statement of objectives.

To help meet the demand of the economy for trained manpower;

To establish a national apprenticeship program through the participation of employers,

workers and government and non-government agencies; and

To establish apprenticeship standards for the protection of apprentices.

Definition of Terms.
Apprenticeship - training within employment with compulsory related theoretical instruction
involving a contract between an apprentice and an employer on an approved apprenticeable
occupation [RA 7796, Sec.4 (j)]
Apprentice - is a person undergoing training for an approved apprenticeable occupation during an
apprentice agreement [RA 7796, Sec.4 (k)]
Apprenticeship agreement is a contract wherein a prospective employer binds himself to train
the apprentice who in turn accepts the terms of training for a recognized apprenticeable occupation
emphasizing the rights, duties and responsibilities of each party [RA 7796, Sec.4 (l)]
*No apprenticeship training will commence until Apprenticeship agreement has been forged
between the enterprise and the apprentice (applies also on learnership)
Apprenticeable Occupation is an occupation officially endorsed by a tripartite body and approved
to be apprenticeable by TESDA [RA 7796, Sec.4 (m)]

Intended Beneficiaries:

1. Any person duly registered with the appropriate government authorities with ten (10) or more
regular workers is qualified to join the program.
>The number of apprentices for each participation enterprise shall not be more than 20% of
its total regular workforce.
2. Any unemployed person 15 years old and above may apply for apprenticeship with any
participation enterprise.

Qualifications of apprentice:
1. Be at least 15 years of age [as amended by RA 7610*], provided that if he is below 18 years,
he shall not be eligible for hazardous occupation;
2. Possess vocational aptitude and capacity for appropriate tests; and
3. Possess the ability to comprehend and follow oral and written instructions
4. Physically fit for occupation
Note: Trade and industry associations may recommend to the Secretary of Labor appropriate
educational requirements for different occupations.
*Special Protection of Children Against Abuse, Exploitation and Discrimination Act]
Employment of apprentices, when applicable?
1. Only employers in the highly technical industries may employ apprentices; and
2. Only in apprenticeable occupations approved by the Secretary of Labor
What is a highly technical industry?
It is a trade, business, enterprise, industry or other activity, which is engaged in the application of
advanced technology.
How long is the apprenticeship period?
It shall not be less than 4 months but not more than 6 months.
However, the participating employer has the option to hire the apprentice even prior to the
completion of the apprenticeship period.

Benefits of Apprentices:
Apprentices are entitled to receive a wage not less than 75% of the prevailing minimum wage and
benefits such as social security and health benefits, and overtime pay.
An apprentice can work overtime provided there are no regular workers to do the job and the time
spent on overtime work is duly credited to his training hours.

Apprentice without Compensation:

The Secretary of Labor and Employment may authorize the hiring of apprentices without
compensation whose training on the job is required by:
1.

the school or

2. training program curriculum or

3. as requisite for graduation or board examination. (Art. 97, Labor Code)
Incentives to Participating Enterprises
Participating enterprises are entitled to the following:
1. Payment of 75% of the prevailing minimum wage to apprentice; or
2. An additional deduction from taxable income of one-half (1/2) of the value of labor training
expenses incurred for developing the productivity and efficiency of apprentices
>Requisite of Deductibility:
a. Program is duly recognized by the DOLE;
b. deduction shall not exceed ten (10%) percent of direct labor wage: and
c. the person or enterprise who wishes to avail himself or itself of this incentive
should pay his apprentices the minimum wage

Who shall sign apprenticeship agreement?

1. By the apprentice, if of age, otherwise, by his parent or guardian, or in the latters absence,
by an authorized representative of DOLE; and

2. By the employer or his agent, or by an authorized representative of any of the recognized

organizations, associations or groups
Venue of apprenticeship programs
1. within the sponsoring firm, establishment or entity;
2. within a Department of Labor and Employment training center or other public training
institution; or
3. Initial training in trade fundamentals in a training center or other institution with subsequent
actual work participation within the sponsoring firm or entity during the final stage of training.
Apprenticeship programs can be undertaken or sponsored by:
1. The plant, shop or premises of the employer or firm concerned if the apprenticeship program is
organized by an individual employer or firm;
2. In the premises of one or several designated firms in the case of programs sponsored by a
group or association of employers or by a civic organization; or
3. In a Department of Labor and Employment training center or other public training institution.
Obligations of the Participating Enterprise:
1. Aptitude testing of applicant* (Art. 68, Labor Code)
2. Provide supplementary theoretical instruction to apprentices in cases where the program is
undertaken in the plant** (Art. 69, Labor Code)
3. Forge an Apprenticeship Agreement with qualified apprentice(s);
4. Provide training to apprentice(s);
5. Supervise and monitor the progress of the apprentice(s);
6. Issue Training Certificate to apprentice who successfully complete the program and pass
the assessment;
7. Pay the apprentice allowable wage and other benefits; and
8. Submit reports (Enrolment Report and Terminal Report) to TESDA Regional/Provincial
Office
9. *unless without adequate facilities for the purpose, DOLE shall perform the service free of
charge

10. ** If employer is not prepared to assume the responsibility, the same may be delegated to
an appropriate government agency.
Obligations of the Apprentices:
1. Forge an Apprenticeship Agreement with the participating enterprise;
2. Comply with the enterprise requirements (e.g. clearances, medical certificates, etc.); and
3. Abide with the stipulations in the Apprenticeship Agreement
LEARNERS
Definition
Learners are persons hired as trainees in semi-skilled and other industrial occupations which are
non-apprenticeable. Learnership programs must be approved by TESDA. (RA 7796, Sec. 4)
Duration of Learnership Agreement: It shall not exceed 3 months.
When learners may be hired?
1. No experienced workers are available;
2. The employment of learners is necessary to prevent curtailment of employment
opportunities; and
3. the employment does not create unfair competition in terms of labor costs or impair or lower
working standards. (Art. 74, Labor Code)
How much is the wage or salary rates of learners?
General Rule: It shall begin at not less than seventy-five percent (75%) of the applicable minimum
wage. (Art. 75, Labor Code)
Exception: Learners employed in piece or incentive-rate jobs during the training period shall be paid
in full for the work done. (Art. 76, Labor Code)
When learners become regular employees?
1. When there is a commitment from the employer to employ the learners if they so desire, as
regular workers upon completion of the learnership
2. All learners who have been allowed or suffered to work during the first two (2) months shall
be deemed regular employees if training is terminated by the employer before the end of the
stipulated period through no fault of the learners (Art. 75, Labor Code)

REMEDIES
Who may file complaint for investigation of violation of Apprenticeship Agreement?
1. Any interested person; or
2. upon its own initiative, the appropriate agency of the DOLE or its authorized
representative
What is the procedure in the termination of apprenticeship?
No person shall institute any action for the enforcement of any apprenticeship agreement or
damages for breach of any such agreement, unless he has exhausted all available administrative
remedies. (Art. 67, Labor Code)
Administrative remedies are as follows:
1. Mediation and/or settlement of disputes involving violation of apprenticeship agreement.
Through the Plant Apprenticeship Committee (PAC)
>The creation of PAC in the participating enterprise is necessary. It shall be composed of
management, labor and government representatives.
2. Decision on the dispute by PAC. In case of failure of PAC to settle the issue, TESDA
Provincial Office or its authorized representative shall refer the case to DOLE
Regional/Provincial Office which has jurisdiction over the concerned agency.
3. Appeal to the Secretary of DOLE within 5 days from the receipt of the decision. The decision
of the Secretary of Labor and Employment shall be final and executory.