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PRESIDENTIAL DECREE NO. 173
PRESIDENTIAL DECREE NO. 173
- AMENDING FURTHER REPUBLIC ACT NUMBERED ONE THOUSAND EIGHT HUNDRED
TWENTY-SIX, AS AMENDED, OTHERWISE KNOWN AS THE "NATIONAL APPRENTICESHIP
ACT OF 1957"
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chanroblesvirtualawlibrary
WHEREAS, a
need exists for the optimum exploitation of employment generating
measures currently available to the Government so that their potential
for contributing to the solution of the country's unemployment problem
may be fully realized;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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, 1972, 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:cralaw:red
Section 1. Section one of Republic Act Numbered One
Thousand eight hundred and twenty-six is hereby amended to read as
follows:cralaw:red
"Sec. 1. This Act shall be known as the "National
Apprenticeship Act." chanroblesvirtualawlibrary
Section 2. Section two of the same Act is hereby
amended to read as follows:cralaw:red
"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."
Section 3. Section two-A of the same Act is hereby
repealed.
Section 4. Section three of the same Act is hereby
repealed and in lieu thereof the following provision shall be
substituted:cralaw:red
"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."
Section 5. Section three-A of the same Act is hereby
repealed.
Section 6. Section four of the same Act is hereby
amended to read as follows:cralaw:red
"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:cralaw:red
"(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 apprenticeability 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;chanroblesvirtualawlibrary
"(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;chanroblesvirtualawlibrary
"(c) Develop and formulate apprenticeship policies,
rules, regulations and plans;chanroblesvirtualawlibrary
"(d) Promote the purposes of this Act by bringing
employers and workers together and assisting them in working out
appropriate apprenticeship programs;chanroblesvirtualawlibrary
"(e) Conduct research and evaluate statistics on
matters affecting apprenticeship and compile and disseminate such
research currently;chanroblesvirtualawlibrary
"(f) Provided technical and advisory services to
apprenticeship committees, employers, association of employers,
employees, associations of employees, and other interested parties, in
the development, maintenance and operation of apprenticeship programs;chanroblesvirtualawlibrary
"(g) Provide services for the review and appraisal of
proposed apprenticeship programs and apprenticeship agreement;chanroblesvirtualawlibrary
"(h) Maintain a register of apprentices,
apprenticeship agreements, and apprenticeship programs;chanroblesvirtualawlibrary
"(i) Maintain currently a record of all
apprenticeship committees and training committees and all employers
operating under approved apprenticeship programs;chanroblesvirtualawlibrary
"(j) Approve, disapprove, suspend, revoke or
terminate plant apprenticeship programs and apprenticeship agreements,
and issue certificates of completion of apprenticeship;chanroblesvirtualawlibrary
"(k) Act as a clearing house for the operation of
apprenticeship programs in different areas, industries and occupations;chanroblesvirtualawlibrary
"(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.
Section 7. Section four-A of the same Act is hereby
amended to read as follows:cralaw:red
"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
responsible for the violation."
Section 8. The same Act is hereby amended by adding
the following Sections immediately after Section four-A thereof, which
read as follows:cralaw:red
"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:cralaw:red
"(a) Apprenticeship conducted entirely by and within
the sponsoring firm, establishment or entity;chanroblesvirtualawlibrary
"(b) Apprenticeship entirely within a Department of
Labor training center or other public training institution duly
approved by the Bureau; or chanroblesvirtualawlibrary
"(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." chanroblesvirtualawlibrary
"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:cralaw:red
"(a) In the premises of the sponsoring employer in
the case of individual apprenticeship programs;chanroblesvirtualawlibrary
"(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 institution 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."
Section 9. Section five of the same Act is hereby
amended to read as follows:cralaw:red
"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:cralaw:red
"(a) The full names of the contracting parties;chanroblesvirtualawlibrary
"(b) The date of birth of the apprentice;chanroblesvirtualawlibrary
"(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;chanroblesvirtualawlibrary
"(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 apprentices may
be permitted by the Bureau if hours thus spend shall be credited
towards earlier completion of training; chanroblesvirtualawlibrary
"(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;chanroblesvirtualawlibrary
"(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;chanroblesvirtualawlibrary
"(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;chanroblesvirtualawlibrary
"(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;chanroblesvirtualawlibrary
"(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.
Section 10. Section six of the same Act is hereby
amended to read as follows:cralaw:red
"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. chanroblesvirtualawlibrary
Section 11. The same Act is hereby amended by adding
the following Sections immediately after Section 6 thereof, which read
as follows:cralaw:red
"Sec. 6-A. The wage rate for apprentices at the
initial stage shall be seventy-five per cent 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
structure 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 per cent of the
statutory minimum during the first month of employment, the same being
a period of orientation, and the seventy-five per cent initial rate
fixed in this Section shall follow thereafter. chanroblesvirtualawlibrary
"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." chanroblesvirtualawlibrary
Section 12. Section seven of the same Act is hereby
amended to read as follows:cralaw:red
"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 (15) days from
notice of the decision otherwise such decision shall become final and
binding on the parties." chanroblesvirtualawlibrary
Section 13. Section eight of the same Act is hereby
amended to read as follows:cralaw:red
"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."
Section 14. Section nine of the same Act is hereby
amended to read as follows:cralaw:red
"Sec. 9. To ensure the effective implementation of
the policy laid down in Section two hereof:cralaw:red
"(A) Employers or entities with duly approved
apprenticeship programs shall have primary responsibility for providing
appropriate aptitude tests in 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." chanroblesvirtualawlibrary
Section 15. Section ten of the same Act is hereby
amended to read as follows:cralaw:red
"Sec. 10. As used in this Act:cralaw:red
"(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;chanroblesvirtualawlibrary
"(e) The term "employer" includes any person acting
directly or indirectly in the interest of an employer in relation to an
employee or apprentice;chanroblesvirtualawlibrary
"(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. chanroblesvirtualawlibrary
"(g) The term "person" includes an individual
partnership, association, corporation, business trust, legal
representatives or any organized group of persons."
Section 16. Section eleven of the same Act is hereby
amended to read as follows:cralaw:red
"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 per cent of the labor force or ten per cent 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."
Section 17. The same Act is hereby amended by adding
the following Sections immediately after Section eleven thereof, which
read as follows:cralaw:red
"Sec. 11-A. In its 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. chanroblesvirtualawlibrary
"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."
Section 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.
Section 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.
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