AMENDING FURTHER REPUBLIC ACT NUMBERED ONE THOUSAND EIGHT HUNDRED TWENTY-SIX, AS AMENDED, OTHERWISE KNOWN AS THE “NATIONAL APPRENTICESHIP ACT OF 1957”

WHEREAS, a need exists for the optimum exploitation of
employment generating measures currently available to the Government so
that their potentials for contributing to the solution of the country’s
unemployment problem may be fully realized;

WHEREAS, the economic growth of this country also depends to
a large extent upon the availability of a labor force that is both
well-trained and adequate in number to meet the manpower requirements of
the various levels of employment;

WHEREAS, apprenticeship, being both a training and
employment generating device, is among the existing measures which could
contribute to the attainment of the foregoing objectives if the law on
apprenticeship could be liberalized and freed from its traditionalist
and restrictive provisions; and

WHEREAS, it is accordingly in the national interest,
pursuant to Section 9, Article II of the New Constitution, to align
apprenticeship as an instrument of employment generation and manpower
development to the overall manpower policy of the New Society as well as
the reforms introduced by the Integrated Reorganization Plan as adopted
by and under Presidential Decree No. 1;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and General
Order No. 1, dated September 22, 1.972, as amended, and in order to
effect the desired changes and reforms in the economic and social
structures of our society, do hereby order and decree the further
amendment of Republic Act No. 1826, as amended, as follows:

SECTION 1. Section one of Republic Act Numbered One Thousand
Eight Hundred and Twenty-Six is hereby amended to read as follows:

“SECTION 1. This Act shall be known as the ‘National
Apprenticeship Act.’

SEC. 2. Section two of the same Act is hereby amended to
read as follows;

“SEC. 2. In order to assist in meeting the progressively
increasing demand for trained labor necessary for the economic and
social development of the Philippines and to increase productivity, it
is hereby declared to be the policy of the Government, (1) to establish a
national apprenticeship system through the participation of employers
and workers and interested governmental and non-governmental agencies;
(2) to provide for the establishment and furtherance of apprenticeship
standards to safeguard and promote the welfare of apprentices; and (3)
to extend apprenticeship to and make it available for the training of
needed manpower in the widest possible range of trades, occupations as
well as levels of employment, subject to the criteria prescribed under
this Act for apprenticeable trades and occupations.”

SEC. 3. Section two-A of the same Act is hereby repealed.

SEC. 4. Section three of the same Act is hereby repealed
and in lieu thereof the following provision shall be substituted:

“SEC. 3. Pursuant to the integrated reorganization plan
and such implementing orders as may be promulgated thereunder, there is
hereby created in the Department of Labor a ‘Bureau of Apprenticeship,’
hereinafter referred to as the Bureau, under a Director, who at the time
of his appointment by the President should have had specialized
training in apprenticeship administration, planning, programming and
adequate experience in apprenticeship legislation for not less than five
years.

“The Secretary of Labor shall appoint such clerical, technical
and professional assistants as may be necessary to the proper operation
of this Bureau, and no person shall be appointed technical or
professional assistant unless he has had adequate training for the
performance of his duties.”

SEC. 5. Section three-A of the same Act is hereby repealed.

SEC. 6. Section four of the same Act is hereby amended
to read as follows:

“SEC. 4. The Bureau of Apprenticeship shall perform the
following duties and functions, subject to the Integrated Reorganization
Plan, aside from such other responsibilities as are assigned to it
under this Act:

“(a) Evaluate trades, occupations and jobs under the following
general categories: (1) crafts, (2) operative activities, (3)
technical, (4) nautical, (5) commercial, (6) clerical, administrative
and other semi-professional work, (7) technological, (8) supervisory,
and (9) managerial, to determine their apprentice-ability and issue from
time to time an updated list of those activities that meet the criteria
prescribed in this Act: Provided, That such lists shall be
submitted to the Secretary of Labor for approval before release;
“(b) Implement and supervise duly approved apprenticeship standards and
carry out the apprenticeship methods envisioned by this Act. The Bureau
shall in this connection formulate model training standards for all
trades, occupations and jobs that are accorded recognition as
apprenticeable to serve as guides in the organization of appropriate
apprenticeship programs. The Bureau may require any industry, firm,
trade or professional association, or other entities public or private
to extend technical assistance, cooperation and advice in the
preparation of such standards;
“(c) Develop and formulate apprenticeship policies, rules, regulations
and plans;
“(d) Promote the purposes of this Act by bringing employers and workers
together and assisting them in working out appropriate apprenticeship
programs;
“(e) Conduct research and evaluate statistics on matters affecting
apprenticeship and compile and disseminate such research currently; “(f)
Provide technical and advisory services to apprenticeship committees,
employers, associations of employers, employees, associations of
employees, and other interested parties, in the development, maintenance
and operation of apprenticeship programs;
“(g) Provide services for the review and appraisal of proposed
apprenticeship programs and apprenticeship agreements;
“(h) Maintain a register of apprentices, apprenticeship agreements, and
apprenticeship programs;
“(i) Maintain currently a record of all apprenticeship committees and
training committees and all employers operating under approved
apprenticeship programs;
“(j) Approve, disapprove, suspend, revoke or terminate plant
apprenticeship programs and apprenticeship agreements, and issue
certificates of completion of apprenticeship;
“(k) Act as a clearinghouse for the operation of apprenticeship programs
in different areas, industries and occupations;
“(l) Disseminate such information regarding apprenticeship as may be
necessary to bring about a better understanding of the purposes of this
Act and to arouse public interest in apprentice training; and
“(m) Protect and promote the welfare of apprentices.

SEC. 7. Section four-A of the same Act is hereby amended to
read as follows:

“SEC. 4-A. It shall be unlawful for an employer to enter
into an apprenticeship agreement or otherwise employ at subminimum wages
a worker as an apprentice unless he has an apprenticeship program
approved by, and registered with, the Bureau, as evidenced by a
certificate of registration.

“Any violation of the provisions of this Section shall be
punished by a fine of not less than three hundred pesos nor more than
two thousand pesos, or by imprisonment of not less than thirty days nor
more than one year, or both such fine and imprisonment, in the
discretion of the court.

“If the violation is committed by a firm, association, or
corporation, the penalty shall be imposed on the officer or officers
thereof who are responsible for the violation.”

SEC. 8. The same Act is hereby amended by adding the
following sections immediately after Section four-A thereof, which read
as follows:

“SEC. 4-B. Any firm, employer group or association,
industry organization, or civic group wishing to organize an
apprenticeship program may choose from any of the following
apprenticeship schemes as the training venue for its apprentices:

“(a) Apprenticeship conducted entirely by and within the
sponsoring firm, establishment or entity;
“(b) Apprenticeship entirely within a Department of Labor Training
Center or other public training institution duly approved by the Bureau;
or
“(c) Initial broad 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.

“SEC. 4-C. Any of the apprenticeship schemes recognized
in Section 4-B hereof may be undertaken or sponsored by a single
employer or firm or by a group or association thereof, or by a civic
organization. Actual training of apprentices may be undertaken:

“(a) In the premises of the sponsoring employer in the case of
individual apprenticeship programs;
“(b) 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
“(c) In a Department of Labor Training Center or other public training
institutions duly approved by the Bureau.

“The employer concerned shall not be responsible for injury or
illness sustained by the apprentice when training is conducted outside
his premises; he shall however share in the enforcement of discipline
and proper attendance of the apprentice regardless of the actual situs
of training.”

SEC. 9. Section five of the same Act is hereby amended to
read as follows:

“SEC. 5. Any employer or other entity with an approved
apprenticeship program may enter into an apprenticeship agreement with a
qualified apprentice-applicant. An apprenticeship agreement shall
contain:

“(a) The full names of the contracting parties;
“(b) The date of birth of the apprentice;
“(c) A statement of the trade, occupation or job in which apprenticeship
will be undertaken, and the dates on which apprenticeship will begin
and end, respectively;
“(d) A statement showing the approximate number of hours to be spent by
the apprentice in work and the number of hours to be spent in
supplementary theoretical instruction: Provided, That the hours
of work of the apprentice shall not exceed the maximum number of hours
of work prescribed by law for a worker of the age and sex of the
apprentice: Provided, further. That overtime work for apprentice may be
permitted by the Bureau if hours thus spent shall be credited towards
earlier completion of training;
“(e) A schedule of the work processes of the trade or occupation in
which the apprentice shall be trained and the approximate time to be
spent on the job in each process;
“(f) A graduated scale of wages to be paid the apprentice, subject to
the provisions of Section 6-A hereof, and a statement of whether or not
the required school time shall be compensated;
“(g) A statement fixing a period probation of not more than the first
five hundred hours of work and of the supplementary theoretical
instruction involved during the same period during which time the
apprenticeship agreement may, at the request of either party in writing,
be terminated without inquiry by the Bureau for cause that is prima
facie valid;
“(h) A provision that an employer who is unable to fulfill his
obligation under the agreement, may, with the consent of the apprentice
and with the approval of the Bureau, transfer such contract to any other
employer who is willing to assume the said obligation;
“(i) Such additional terms and conditions not contrary to law which
the parties may mutually agree upon or the Bureau determines are
necessary and proper to effectuate the purposes of this Act; and
“(j) A clause providing that there shall be no liability on the part of
the employer for an injury or illness sustained by an apprentice if his
training is being conducted outside of the premises of the employer.”

SEC. 10. Section six of the same Act is hereby amended to
read as follows:

“SEC. 6. Every apprenticeship agreement shall be signed
by the employer or his agent, or by an authorized representative of any
of the organizations, associations, or groups recognized under Section
4-B hereof, and by the apprentice; and, if the apprentice is a minor, by
the minor’s parent or guardian: Provided, That a contract signed
in behalf of a minor shall be binding up to its stipulated date of
termination: Provided, further, That every apprenticeship
agreement entered into under this Act shall be ratified by the
appropriate apprenticeship committee, if any, and by the Bureau, and a
copy each thereof, shall be furnished both the employer and the
apprentice.”

SEC. 11. The same Act is hereby amended by adding the
following Sections immediately after Section 6 thereof, which read as
follows:

“SEC. 6-A. The wage rate for apprentices at the initial
stage shall be seventy-five percent of the statutory minimum wage and
their graduated wage scales or progressive wage increases shall take off
therefrom. However, if there are serious considerations why an employer
cannot meet the above requirements and upon presentation of adequate
proof to this effect, the Secretary of Labor, upon recommendation of the
Bureau, may authorize a lower initial rate for the particular program,
but such rate should not be less than fifty percent of the legal minimum
wage: Provided, That periodic wage increases for apprentices should be
uniform but scaled in a manner which at its later stages would not
surpass or otherwise disturb wage structures fixed by collective
bargaining agreements or otherwise in effect in the firm for journeymen
or regular workers in the same occupational classification as the
apprentice: Provided, further, That a reduced rate to the extent allowed
in this Section, shall be permitted upon petition by any employer whose
apprenticeship program is being carried on through an approved training
institution under Section 4-B, paragraphs (b) and (c) hereof: Provided,
finally, That the employer who has not been authorized to pay a reduced
initial wage rate may pay his apprentices a wage of not less than fifty
percent of the statutory minimum during the first month of employment,
the same being a period of orientation, and the seventy-five percent
initial rate fixed in this Section shall follow thereafter.

“SEC. 6-B. Any person who pays his apprentices wages at
less than the sub-minimum rates fixed for them in their apprenticeship
agreements shall be penalized with a fine of not less than five hundred
pesos nor more than three thousand pesos, with subsidiary imprisonment
in case of insolvency.”

SEC. 12. Section seven of the same Act is hereby amended to
read as follows:

“SEC. 7. Upon the complaint of any interested person or
upon its own initiative, the appropriate agency of the Department of
Labor or its authorized representatives shall investigate any violation
of the terms of an apprenticeship agreement made under this Act, and for
such purpose shall hold hearings, inquiries, and other proceedings
necessary to such investigation and issue subpoena and subpoena duces
tecum. The parties to such agreement shall, upon reasonable notice
thereof, be given a fair and impartial hearing. All such hearing and
investigations shall be made pursuant to such rules and procedures as
may be prescribed by the Bureau with the approval of the Secretary of
Labor.

“The decision of the authorized agency of the Department of
Labor shall be filed with the Secretary of Labor and copy thereof shall
be sent to the parties. Any person aggrieved by such decision or action
may appeal therefrom to the Secretary of Labor within fifteen days from
notice of the decision otherwise such decision shall become final and
binding on the parties.”

SEC. 13. Section eight of the same Act is hereby
amended to read as follows:

“SEC. 8. The appellate decision of the Secretary of Labor
shall be conclusive and final, if action thereon is not filed in court
within thirty days after the date of notice of such decision.

“No person shall institute any action for the enforcement of any
apprenticeship agreement, or damages for the breach of any such
agreement, made under this Act unless he shall first have exhausted all
administrative remedies provided by this Act.”

SEC. 14. Section nine of the same Act is hereby amended to
read as follows:

“SEC. 9. To ensure the effective implementation
of the policy laid down in Section two hereof:

“(A) Employers or entities with duly approved apprenticeship
programs shall have primary responsibility for providing appropriate
aptitude tests hr the selection of apprentices. However, if they do not
have adequate facilities for the purpose, the Department of Labor,
through its authorized agency, shall perform the service free of charge.

“The giving of supplementary theoretical instruction to
apprentices under Section 4-B, paragraph (a) hereof may be undertaken by
the employer. However, if he is not prepared to assume this
responsibility, the same may be delegated by the Bureau to the
appropriate agency of the National Manpower and Youth Council or the
Department of Education and Culture. For this purpose, the Bureau, with
the approval of the Secretary of Labor, may enter into appropriate
arrangements or working agreements with said government agencies.”

SEC. 15. Section ten of the same Act is hereby amended to
read as follows:

“SEC. 10. As used in this Act:

“(a) The term ‘apprentice’ means a worker who is covered by a
written apprenticeship agreement with an individual employer or any of
the organizations, associations or groups recognized under Section 4-B
of this Act, which contract is duly registered with the Bureau.

“No person shall work or be engaged as apprentice unless he is
at least sixteen years of age; and shows his fitness for training by a
demonstration of his capacities and aptitude, and presentation of a
certificate of his physical fitness by a medical officer of the
Department of Labor or Department of Health or such others as may be
authorized by the Bureau. Completion of the high school course shall not
be an absolute requirement for entry into apprenticeship. Adequacy of
educational background shall be generally determined through the
applicant’s ability to comprehend and follow oral and written
instructions. Trade and industry associations, with the concurrence of
the Bureau, may however recommend to the Secretary of Labor higher
educational background requirements for the more technically demanding
occupations. Such recommendations, if approved by the Secretary of
Labor, shall be the educational requirement for apprenticeship in such
occupations. An employer may waive such requirement if the
apprentice-applicant convincingly demonstrates exceptional ability.

“(b) The term ‘apprenticeship’ means that system of training in
an apprenticeable occupation which consists of practical training on the
job supplemented by theoretical instruction. “(c) The term
‘apprenticeable occupation’ means any trade, form of employment or
occupation which is found suitable for more than three months of
practical training on the job in combination with supplementary
theoretical instruction. Such occupations can be the basis of
apprenticeship programs and the employment of apprentices. “(d) The term
’employ’ includes to suffer or permit to work; “(e) The term ’employer’
includes any person acting directly or indirectly in the interest of an
employer in relation to an employee or apprentice; “(f) The term
‘industry’ includes any trade or business, enterprise or branch or
branches thereof or any calling, service or employment in which
individuals are gainfully employed. “(g) The term ‘person’ includes an
individual partnership, association, corporation, business trust, legal
representatives or any organized group of persons.”

SEC. 16. Section eleven of the same Act is hereby amended
to read as follows:

“SEC. 11. The organization of apprenticeship programs
shall primarily be a voluntary undertaking of employers. However, when
national security or the particular requirements of economic development
so demand, the President of the Philippines may require compulsory
training of apprentices in certain trades, occupations, jobs or
employment levels where a shortage is deemed critical as determined by
the Secretary of Labor. Appropriate rules in implementation of this
emergency provision shall be promulgated when the need arises by the
Department of Labor. The number of apprentices to be compulsorily
employed, in the case of factories and other industrial enterprises,
shall not exceed five percent of the labor force or ten percent of the
total number of unskilled workers in the given establishment. A
percentage of the training costs of any apprenticeship program, whether
voluntarily or compulsorily undertaken, shall be deductible from the
income tax of the person or enterprise concerned at a rate or rates to
be determined and fixed by the appropriate government agencies if not
covered by existing laws and regulations.”

SEC. 17. The same Act is hereby amended by adding the
following Sections immediately after Section eleven thereof, which read
as follows:

“SEC. 11-A. In this nationwide promotion of
apprenticeship under this Act, the Bureau shall exert exceptional
efforts to secure the employment of the youth as apprentices in
preference over other categories of workers.

“SEC. 11-B. The Bureau shall supervise closely on-going
apprenticeship programs and have close liaison with the Bureau of
employment service of the Department of Labor as well as employer
associations, industry groups and other relevant organizations to assist
in the more effective placement of those graduate apprentices who are
not absorbed by their sponsoring firms upon completion of training.”

SEC. 18. Rules of procedure as well as rules and regulations
in implementation of this Decree shall be prepared by the Bureau and
the same shall become effective upon approval by the Secretary of Labor.

SEC. 19. All provisions of existing laws, orders and
regulations contrary to or inconsistent with this Decree are hereby
repealed.

Done in the City of Manila, this 12th day of April, in the
year of Our Lord, nineteen hundred and seventy-three.