Title II

TRAINING AND EMPLOYMENT OF SPECIAL WORKERS

Chapter I
APPRENTICES
Art. 57. Statemet !" !#$e%ti&e'. This Title aims:
1. To help meet the demand of the economy for trained manpower;
2. 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.
Art. 5(. !efinition of Terms. "s used in this Title:
1. #"pprenticeship# means practical training on the $ob supplemented by related theoretical
instruction.
2. "n #apprentice# is a worker who is covered by a written apprenticeship agreement with
an individual employer or any of the entities recogni%ed under this &hapter.
. "n #apprenticeable occupation# means any trade, form of employment or occupation
which re'uires more than three () months of practical training on the $ob supplemented by
related theoretical instruction.
*. #"pprenticeship agreement# is an employment contract wherein the employer binds
himself to train the apprentice and the apprentice in turn accepts the terms of training.
Art. 5). +ualifications of apprentice. To 'ualify as an apprentice, a person shall:
1. ,e at least fourteen (1*) years of age;
2. -ossess vocational aptitude and capacity for appropriate tests; and
. -ossess the ability to comprehend and follow oral and written instructions.
Trade and industry associations may recommend to the .ecretary of /abor appropriate
educational re'uirements for different occupations.
Art. *+. 0mployment of apprentices. 1nly employers in the highly technical industries may
employ apprentices and only in apprenticeable occupations approved by the .ecretary of
/abor and 0mployment. ("s amended by .ection 1, 02ecutive 1rder 3o. 111, !ecember 2*,
1456)
Art. *,. &ontents of apprenticeship agreements. "pprenticeship agreements, including the
wage rates of apprentices, shall conform to the rules issued by the .ecretary of /abor and
0mployment. The period of apprenticeship shall not e2ceed si2 months. "pprenticeship
agreements providing for wage rates below the legal minimum wage, which in no case shall
start below 78 percent of the applicable minimum wage, may be entered into only in
accordance with apprenticeship programs duly approved by the .ecretary of /abor and
0mployment. The !epartment shall develop standard model programs of apprenticeship. ("s
amended by .ection 1, 02ecutive 1rder 3o. 111, !ecember 2*, 1456)
Art. *-. .igning of apprenticeship agreement. 0very apprenticeship agreement shall be signed
by the employer or his agent, or by an authori%ed representative of any of the recogni%ed
organi%ations, associations or groups and by the apprentice.
"n apprenticeship agreement with a minor shall be signed in his behalf by his parent or
guardian, if the latter is not available, by an authori%ed representative of the !epartment of
/abor, and the same shall be binding during its lifetime.
0very apprenticeship agreement entered into under this Title shall be ratified by the
appropriate apprenticeship committees, if any, and a copy thereof shall be furnished both the
employer and the apprentice.
Art. *.. 9enue of apprenticeship programs. "ny firm, employer, group or association, industry
organi%ation or civic group wishing to organi%e an apprenticeship program may choose from
any of the following apprenticeship schemes as the training venue for apprentice:
1. "pprenticeship conducted entirely by and within the sponsoring firm, establishment or
entity;
2. "pprenticeship entirely within a !epartment of /abor and 0mployment training center or
other public training institution; or
. :nitial training in trade fundamentals in a training center or other institution with
subse'uent actual work participation within the sponsoring firm or entity during the final stage
of training.
Art. */. .ponsoring of apprenticeship program. "ny of the apprenticeship schemes recogni%ed
herein may be undertaken or sponsored by a single employer or firm or by a group or
association thereof or by a civic organi%ation. "ctual training of apprentices may be
undertaken:
1. :n the premises of the sponsoring employer in the case of individual apprenticeship
programs;
2. :n 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 organi%ation; or
. :n a !epartment of /abor and 0mployment training center or other public training
institution.
Art. *5. :nvestigation of violation of apprenticeship agreement. ;pon complaint of any
interested person or upon its own initiative, the appropriate agency of the !epartment of /abor
and 0mployment or its authori%ed representative shall investigate any violation of an
apprenticeship agreement pursuant to such rules and regulations as may be prescribed by the
.ecretary of /abor and 0mployment.
Art. **. "ppeal to the .ecretary of /abor and 0mployment. The decision of the authori%ed
agency of the !epartment of /abor and 0mployment may be appealed by any aggrieved
person to the .ecretary of /abor and 0mployment within five (8) days from receipt of the
decision. The decision of the .ecretary of /abor and 0mployment shall be final and e2ecutory.
Art. *7. 02haustion of administrative remedies. 3o person shall institute any action for the
enforcement of any apprenticeship agreement or damages for breach of any such agreement,
unless he has e2hausted all available administrative remedies.
Art. *(. "ptitude testing of applicants. &onsonant with the minimum 'ualifications of
apprentice-applicants re'uired under this &hapter, employers or entities with duly recogni%ed
apprenticeship programs shall have primary responsibility for providing appropriate aptitude
tests in the selection of apprentices. :f they do not have ade'uate facilities for the purpose, the
!epartment of /abor and 0mployment shall perform the service free of charge.
Art. *). <esponsibility for theoretical instruction. .upplementary theoretical instruction to
apprentices in cases where the program is undertaken in the plant may be done by the
employer. :f the latter is not prepared to assume the responsibility, the same may be delegated
to an appropriate government agency.
Art. 7+. 9oluntary organi%ation of apprenticeship programs; e2emptions.
1. The organi%ation of apprenticeship program shall be primarily a voluntary undertaking by
employers;
2. =hen national security or particular re'uirements of economic development so demand,
the -resident of the -hilippines may re'uire compulsory training of apprentices in certain
trades, occupations, $obs or employment levels where shortage of trained manpower is
deemed critical as determined by the .ecretary of /abor and 0mployment. "ppropriate rules in
this connection shall be promulgated by the .ecretary of /abor and 0mployment as the need
arises; and
. =here services of foreign technicians are utili%ed by private companies in apprenticeable
trades, said companies are re'uired to set up appropriate apprenticeship programs.
Art. 7,. !eductibility of training costs. "n additional deduction from ta2able income of one-half
(1>2) of the value of labor training e2penses incurred for developing the productivity and
efficiency of apprentices shall be granted to the person or enterprise organi%ing an
apprenticeship program: -rovided, That such program is duly recogni%ed by the !epartment of
/abor and 0mployment: -rovided, further, That such deduction shall not e2ceed ten (1?@)
percent of direct labor wage: and -rovided, finally, That the person or enterprise who wishes to
avail himself or itself of this incentive should pay his apprentices the minimum wage.
Art. 7-. "pprentices without compensation. The .ecretary of /abor and 0mployment may
authori%e the hiring of apprentices without compensation whose training on the $ob is re'uired
by the school or training program curriculum or as re'uisite for graduation or board
e2amination.
Chapter II
LEARNERS
Art. 7.. /earners defined. /earners are persons hired as trainees in semi-skilled and other
industrial occupations which are non-apprenticeable and which may be learned through
practical training on the $ob in a relatively short period of time which shall not e2ceed three ()
months.
Art. 7/. =hen learners may be hired. /earners may be employed when no e2perienced
workers are available, the employment of learners is necessary to prevent curtailment of
employment opportunities, and the employment does not create unfair competition in terms of
labor costs or impair or lower working standards.
Art. 75. /earnership agreement. "ny employer desiring to employ learners shall enter into a
learnership agreement with them, which agreement shall include:
1. The names and addresses of the learners;
2. The duration of the learnership period, which shall not e2ceed three () months;
. The wages or salary rates of the learners which shall begin at not less than seventy-five
percent (78@) of the applicable minimum wage; and
*. " commitment to employ the learners if they so desire, as regular employees upon
completion of the learnership. "ll learners who have been allowed or suffered to work during
the first two (2) months shall be deemed regular employees if training is terminated by the
employer before the end of the stipulated period through no fault of the learners.
The learnership agreement shall be sub$ect to inspection by the .ecretary of /abor and
0mployment or his duly authori%ed representative.
Art. 7*. /earners in piecework. /earners employed in piece or incentive-rate $obs during the
training period shall be paid in full for the work done.
Art. 77. -enalty clause. "ny violation of this &hapter or its implementing rules and regulations
shall be sub$ect to the general penalty clause provided for in this &ode.