BOOK TWO economic and social growth.

This manpower plan shall,

Human Resources Development Program after adoption by the Council, be updated annually and
TITLE I submitted to the President for his approval. Thereafter,
National Manpower Development Program 44 it shall be the controlling plan for the development of
CHAPTER I manpower resources for the entire country in
National Policies and Administrative Machinery for accordance with the national development plan. The
Their Implementation Council shall call upon any agency of the Government or
the private sector to assist in this effort.
ARTICLE 43. Statement of Objective. — It is the objective
of this Title to develop human resources, establish ARTICLE 47. National Manpower Skills Center.— The
training institutions, and formulate such plans and Council shall establish a National Manpower Skills Center
programs as will ensure efficient allocation, and regional and local training centers for the purpose of
development and utilization of the nation's manpower promoting the development of skills. The centers shall be
and thereby promote employment and accelerate administered and operated under such rules and
economic and social growth. regulations as may be established by the Council.

ARTICLE 44. Definitions. — As used in this Title: ARTICLE 48. Establishment and Formulation of Skills
a. "Manpower" shall mean that portion of the nation's Standards. — There shall be national skills standards for
population which has actual or potential capability to industry trades to be established by the Council in
contribute directly to the production of goods and consultation with employers' and workers' organizations
services. and appropriate government authorities. The Council
b. "Entrepreneurship" shall mean training for self- shall thereafter administer the national skills standards.
employment or assisting individual or small
industries within the purview of this Title. ARTICLE 49. Administration of Training Programs. — The
Council shall provide, through the Secretariat, instructor
ARTICLE 45. National Manpower and Youth Council; training, entrepreneurship development, training in
Composition. — To carry out the objectives of this Title, vocations, trades and other fields of employment, and
the National Manpower and Youth Council, which is assist any employer or organization in training schemes
attached to the Department of Labor for policy and designed to attain its objectives under rules and
program coordination and hereinafter referred to as the regulations which the Council shall establish for this
Council, shall be composed of the Secretary of Labor as purpose.
ex-officio chairman, the Secretary of Education and
Culture as ex-officio vice-chairman, and as ex-officio The Council shall exercise, through the Secretariat,
members, the Secretary of Economic Planning, the authority and jurisdiction over, and administer, on-going
Secretary of Natural Resources, the Chairman of the Civil technical assistance programs and/or grants-in-aid for
Service Commission, the Secretary of Social Welfare, the manpower and youth development including those
Secretary of Local Government, the Secretary of Science which may be entered into between the Government of
and Technology, the Secretary of Trade and Industry and the Philippines and international and foreign
the Director-General of the Council. The Director General organizations and nations, as well as persons and
shall have no vote. organizations in the Philippines.

In addition, the President shall appoint the following In order to integrate the national manpower
members from the private sector: two (2) development efforts, all manpower training schemes as
representatives of national organizations of employers; provided for in this Code shall be coordinated with the
two (2) representatives of national workers' Council, particularly those having to do with the setting
organizations; and one representative of national family of skills standards. For this purpose, existing manpower
and youth organizations, each for a term of three (3) training programs in the government and in the private
years. sector shall be reported to the Council which may
regulate such programs to make them conform with
ARTICLE 46. National Manpower Plan. 48 — The Council national development programs.
shall formulate a long-term national manpower plan for
the optimum allocation, development and utilization of
manpower for employment, entrepreneurship and
This Article shall not include apprentices, learners and development offices and such other offices as may be
handicapped workers as governed by appropriate necessary.
provisions of this Code.
The Director-General shall have the rank and
ARTICLE 50. Industry Boards. — The Council shall emoluments of an undersecretary and shall serve for a
establish industry boards to assist in the establishment term of ten (10) years. The Executive-Directors of the
of manpower development schemes, trades and skills Office of Manpower Planning and Development, the
standards and such other functions as will provide direct Office of Vocational Preparation and the National
participation of employers and workers in the fulfillment Manpower Skills Center shall have the rank and
of the Council's objectives, in accordance with guidelines emoluments of a bureau director and shall be subject to
to be established by the Council and in consultation with Civil Service Law, rules and regulations. The Director-
the National Economic and Development Authority. General, Deputy Director-General and Executive
Directors shall be natural-born citizens, between thirty
The maintenance and operations of the industry boards and fifty years of age at the time of appointment, with a
shall be financed through a funding scheme under such master's degree or its equivalent, and experience in
rates of fees and manners of collection and national planning and development of human resources.
disbursements as may be determined by the Council. The Executive Director of the National Manpower Skills
Center shall, in addition to the foregoing qualifications,
ARTICLE 51. Employment Service Training Functions.— have undergone training in center management.
The Council shall utilize the employment service of the Executive Directors shall be appointed by the President
Department of Labor for the placement of its graduates. on the recommendations of the Secretary of Labor and
The Bureau of Employment Services shall render Employment.
assistance to the Council in the measurement of
unemployment and underemployment, conduct of local The Director-General shall appoint such personnel
manpower resource surveys and occupational studies necessary to carry out the objectives, policies and
including an inventory of the labor force, establishment functions of the Council subject to Civil Service rules. The
and maintenance without charge of a national register of regular professional and technical personnel shall be
technicians who have successfully completed a training exempt from WAPCO rules and regulations.
program under this Act, and skilled manpower including
its publication, maintenance of an adequate and up-to- The Secretariat shall have the following functions and
date system of employment information. responsibilities:
1. To prepare and recommend the manpower plan for
ARTICLE 52. Incentive Scheme. — An additional approval by the Council;
deduction from taxable income of one-half (1/2) of the 2. To recommend allocation of resources for the
value of labor training expenses incurred for implementation of the manpower plan as approved
development programs shall be granted to the person or by the Council;
enterprise concerned provided that such development 3. To carry out the manpower plan as the implementing
programs, other than apprenticeship, are approved by arm of the Council;
the Council and the deduction does not exceed ten 4. To effect the efficient performance of the functions
percent (10%) of the direct labor wage. cDHAES of the Council and the achievement of the objectives
There shall be a review of the said scheme two years of this Title;
after its implementation. 5. To determine specific allocation of resources for the
projects to be undertaken pursuant to approved
ARTICLE 53. Council Secretariat.— The Council shall have manpower plans;
a Secretariat headed by a Director-General who shall be 6. To submit to the Council periodic reports on progress
assisted by a Deputy Director-General, both of whom and accomplishment of work programs;
shall be career administrators appointed by the 7. To prepare for approval by the Council an annual
President of the Philippines on recommendation of the report to the President on plans, programs and
Secretary of Labor. The Secretariat shall be under the projects on manpower and out-of-school youth
administrative supervision of the Secretary of Labor and development;
shall have an Office of Manpower Planning and 8. To enter into agreements to implement approved
Development, an Office of Vocational Preparation, a plans and programs and perform any and all such
National Manpower Skills Center, regional manpower acts as will fulfill the objectives of this Code as well
 as ensure the efficient performance of the functions c. An "apprenticeable occupation" means any trade,
of the Council; and form of employment or occupation which requires
9. To perform such other functions as may be more than three (3) months of practical training on
authorized by the Council. the job supplemented by related theoretical
instruction.
ARTICLE 54. Regional Manpower Development d. "Apprenticeship agreement" is an employment
Offices.— The Council shall create regional manpower contract wherein the employer binds himself to train
development offices which shall determine the the apprentice and the apprentice in turn accepts the
manpower needs of the industry, agriculture and other terms of training.
sectors of the economy within their respective
jurisdictions; provide the Council's central planners with ARTICLE 59. Qualifications of Apprentice. — To qualify as
the data for updating the national manpower plan; an apprentice, a person shall:
recommend programs for the regional level agencies a. Be at least fourteen (14) years of age;
engaged in manpower and youth development within b. Possess vocational aptitude and capacity for
the policies formulated by the Council; and administer appropriate tests; and
and supervise Secretariat training programs within the c. Possess the ability to comprehend and follow oral
region and perform such other functions as may be and written instructions.
authorized by the Council.
Trade and industry associations may recommend to the
ARTICLE 55. Consultants and Technical Assistance, Secretary of Labor appropriate educational
Publication, and Research.— In pursuing its objectives, requirements for different occupations.
the Council is authorized to set aside a portion of its
appropriation for the hiring of the services of qualified ARTICLE 60. Employment of Apprentices.— Only
consultants, and/or private organizations for research employers in the highly technical industries may employ
work and publication. It shall avail itself of the services of apprentices and only in apprenticeable occupations
the Government as may be required. approved by the Minister of Labor and Employment.

ARTICLE 56. Rules and Regulations.— The Council shall ARTICLE 61. Contents of Apprenticeship Agreements. —
define its broad functions and issue appropriate rules Apprenticeship agreements, including wage rates of
and regulations necessary to implement the provision of apprentices, shall conform to the rules issued by the
this Code. Minister of Labor and Employment. The period of
apprenticeship shall not exceed six months.
TITLE II Apprenticeship agreements providing for wage rates
Training and Employment of Special Workers below the legal minimum wage, which in no case shall
CHAPTER I start below 75 per cent of the applicable minimum wage,
Apprentices may be entered into only in accordance with
apprenticeship programs duly approved by the Minister
ARTICLE 57. Statement of Objectives. — This Title aims: of Labor and Employment. The Ministry shall develop
1. To help meet the demand of the economy for trained standard model programs of apprenticeship.
manpower;
2. To establish a national apprenticeship program ARTICLE 62. Signing of Apprenticeship Agreement. —
through the participation of employers, workers and Every apprenticeship agreement shall be signed by the
government and non-government agencies; and employer or his agent, or by an authorized
3. To establish apprenticeship standards for the representative of any of the recognized organizations,
protection of apprentices. associations or groups and by the apprentice.

ARTICLE 58. Definition of Terms.— As used in this Title: An apprenticeship agreement with a minor shall be
a. “Apprenticeship" means practical training on the job signed in his behalf by his parent or guardian or, if the
supplemented by related theoretical instruction. latter is not available, by an authorized representative of
b. An "apprentice" is a worker who is covered by a the Department of Labor, and the same shall be binding
written apprenticeship agreement with an individual during its lifetime.
employer or any of the entities recognized under this
Chapter.
Every apprenticeship agreement entered into under this of the decision. The decision of the Secretary of Labor
Title shall be ratified by the appropriate apprenticeship and Employment shall be final and executory.
committees, if any, and a copy thereof shall be furnished
both the employer and the apprentice. ARTICLE 67. Exhaustion of Administrative Remedies. —
No person shall institute any action for the enforcement
ARTICLE 63. Venue of Apprenticeship Programs. — Any of any apprenticeship agreement or damages for breach
firm, employer, group or association, industry of any such agreement, unless he has exhausted all
organization or civic group wishing to organize an available administrative remedies.
apprenticeship program may choose from any of the
following apprenticeship schemes as the training venue ARTICLE 68. Aptitude Testing of Applicants. — Consonant
for apprentice: with the minimum qualifications of apprentice-
applicants required under this Chapter, employers or
a. Apprenticeship conducted entirely by and within the entities with duly recognized apprenticeship programs
sponsoring firm, establishment or entity; shall have primary responsibility for providing
b. Apprenticeship entirely within a Department of appropriate aptitude tests in the selection of
Labor and Employment training center or other apprentices. If they do not have adequate facilities for
public training institution; or the purpose, the Department of Labor and Employment
c. Initial training in trade fundamentals in a training shall perform the service free of charge.
center or other institution with subsequent actual
work participation within the sponsoring firm or ARTICLE 69. Responsibility for Theoretical Instruction. —
entity during the final stage of training. Supplementary theoretical instruction to apprentices in
cases where the program is undertaken in the plant may
ARTICLE 64. Sponsoring of Apprenticeship Program. — be done by the employer. If the latter is not prepared to
Any of the apprenticeship schemes recognized herein assume the responsibility, the same may be delegated to
may be undertaken or sponsored by a single employer or an appropriate government agency.
firm or by a group or association thereof or by a civic
organization. Actual training of apprentices may be ARTICLE 70. Voluntary Organization of Apprenticeship
undertaken: Programs; Exemptions. —
(a) In the premises of the sponsoring employer in the a. The organization of apprenticeship program shall be
case of individual apprenticeship programs; primarily a voluntary undertaking by employers;
b. When national security or particular requirements of
(b) In the premises of one or several designated firms in economic development so demand, the President of
the case of programs sponsored by a group or association the Philippines may require compulsory training of
of employers or by a civic organization; or apprentices in certain trades, occupations, jobs or
employment levels where shortage of trained
(c) In a Department of Labor and Employment training manpower is deemed critical as determined by the
center or other public training institution. Secretary of Labor and Employment. Appropriate
rules in this connection shall be promulgated by the
ARTICLE 65. Investigation of Violation of Apprenticeship Secretary of Labor and Employment as the need
Agreement. — Upon complaint of any interested person arises; and
or upon its own initiative, the appropriate agency of the c. Where services of foreign technicians are utilized by
Department of Labor and Employment or its authorized private companies in apprenticeable trades, said
representative shall investigate any violation of an companies are required to set up appropriate
apprenticeship agreement pursuant to such rules and apprenticeship programs
regulations as may be prescribed by the Secretary of
Labor and Employment. ARTICLE 71. Deductibility of Training Costs. — An
additional deduction from taxable income of one-half
ARTICLE 66. Appeal to the Secretary of Labor and (1/2) of the value of labor training expenses incurred for
Employment. — The decision of the authorized agency of developing the productivity and efficiency of apprentices
the Department of Labor and Employment may be shall be granted to the person or enterprise organizing
appealed by any aggrieved person to the Secretary of an apprenticeship program: Provided, That such program
Labor and Employment within five (5) days from receipt is duly recognized by the Department of Labor and
Employment: Provided, further, That such deduction
shall not exceed ten (10%) percent of direct labor wage: ARTICLE 76. Learners in Piecework. — Learners
and Provided, finally, That the person or enterprise who employed in piece or incentive-rate jobs during the
wishes to avail himself or itself of this incentive should training period shall be paid in full for the work done.
pay his apprentices the minimum wage.
ARTICLE 77. Penalty Clause. — Any violation of this
ARTICLE 72. Apprentices without Compensation. — The Chapter or its implementing rules and regulations shall
Secretary of Labor and Employment may authorize the be subject to the general penalty clause provided for in
hiring of apprentices without compensation whose this Code.
training on the job is required by the school or training
program curriculum or as requisite for graduation or CHAPTER III
board examination. Handicapped Workers

CHAPTER II ARTICLE 78. Definition.— Handicapped workers are

Learners those whose earning capacity is impaired by age or
physical or mental deficiency or injury.
ARTICLE 73. Learners Defined. — Learners are persons
hired as trainees in semi-skilled and other industrial ARTICLE 79. When Employable. — Handicapped workers
occupations which are non-apprenticeable and which may be employed when their employment is necessary
may be learned through practical training on the job in a to prevent curtailment of employment opportunities and
relatively short period of time which shall not exceed when it does not create unfair competition in labor costs
three (3) months. or impair or lower working standards. CHTAIc

ARTICLE 74. When Learners may be Hired. — Learners ARTICLE 80. Employment Agreement. — Any employer
may be employed when no experienced workers are who employs handicapped workers shall enter into an
available, the employment of learners is necessary to employment agreement with them, which agreement
prevent curtailment of employment opportunities, and shall include:
the employment does not create unfair competition in 1. The names and addresses of the handicapped
terms of labor costs or impair or lower working workers to be employed;
standards. 2. The rate to be paid the handicapped workers which
shall not be less than seventy five (75%) percent of
ARTICLE 75. Learnership Agreement. — Any employer the applicable legal minimum wage;
desiring to employ learners shall enter into a learnership 3. The duration of employment period; and
agreement with them, which agreement shall include: 4. The work to be performed by handicapped workers.
a. The names and addresses of the learners;
b. The duration of the learnership period, which shall The employment agreement shall be subject to
not exceed three (3) months; inspection by the Secretary of Labor or his duly
c. The wages or salary rates of the learners which shall authorized representative.
begin at not less than seventy-five percent (75%) of
the applicable minimum wage; and ARTICLE 81. Eligibility for Apprenticeship.— Subject to
d. A commitment to employ the learners if they so the appropriate provisions of this Code, handicapped
desire, as regular employees upon completion of the workers may be hired as apprentices or learners if their
learnership. All learners who have been allowed or handicap is not such as to effectively impede the
suffered to work during the first two (2) months shall performance of job operations in the particular
be deemed regular employees if training is occupations for which they are hired.
terminated by the employer before the end of the
stipulated period through no fault of the learners.

The learnership agreement shall be subject to inspection

by the Secretary of Labor and Employment or his duly
authorized representative.