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PD 442 BOOK II

Article 42–81 · 40 provisions

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails.Read the official text ↗

Title I
Chapter I

Statement of Objective.

Article 42

ART. 42. Statement of Objective. - It is the objective of this Title to develop human resources, establish training institutions, and formulate such plans and programs as will ensure efficient allocation, development and utilization of the nation's manpower and thereby promote employment and accelerate economic and social growth.

Definition.

Article 43

ART. 43. Definition. — As used in this Title (a) "Manpower" shall mean that portion of the nation's population which has actual or potential capability to contribute directly to the production of goods and services; and "Entrepreneurship" shall mean training for self-employment or assisting individual or small industries within the purview of this Title.

National Manpower and Youth Council, Composition.

Article 44

ART. 44. National Manpower and Youth Council, Composition. - To carry out the objectives of this Title, the National Manpower and Youth Council, which is attached to the Department of Labor for policy and program coordination and hereinafter referred to as the Council, shall be composed of the Secretary of Labor as ex officio chairman, the Secretary of Education and Culture as ex officio vice-chairman, and us ex officio members: the Director-General of the National Economic and Development Authority; the Secretary of Agriculture and Natural Resources; the Secretary of Social Welfare; the Secretary of Local Government and Community Development; the Chairman of the National Science Development Board; the Secretary of Industry and the Executive Director of the Council. The Executive Director of the Council shall have no vote. In addition, the President shall appoint the following members from the private sector: two representatives of national organizations of employers; two representatives of national workers organizations; and two from national family and youth organizations, each for a term of three years. All Council members shall be entitled to per diems of one hundred pesos (P100) for each meeting and for not more than thirty {30) meetings within one (1) year and payment of the travelling expenses incurred in connection with their duties therein.

National Manpower Plan.

Article 45

ART. 45. National Manpower Plan. - The Council shall formulate a long-term national manpower plan for the optimum allocation, development and utilization of manpower for employment, entrepreneurship and economic and social growth. This manpower plan shall, after adoption by the Council, be updated annually and submitted to the President for his approval. Thereafter, it shall be the controlling plan £or the development of manpower resources for the entire country in accordance with the national development plan. The Council shall call upon any agency of the Government or the private sector to assist in this effort.

National Manpower Skills Center.

Article 46

ART. 46. National Manpower Skills Center. — The Council shall establish a National Manpower Skills Center and regional and local training centers for the purpose of promoting the development of skills. The centers shall be administered and operated under such rules and regulations as may be established by the Council.

Establishment and Formulation of Skills Standards.

Article 47

ART. 47. Establishment and Formulation of Skills Standards. — There shall be national skills standards for industry trades to be established by the Council in consultation with employers and workers organizations and appropriate government authorities. The Council shall thereafter administer the national skills standards.

Administration of Training Programs.

Article 48

ART. 48. Administration of Training Programs. — The Council shall provide through the Secretariat instructor training, entrepreneurship development, training in vocations, trades and other fields of employment, and assist any employer or organization in training schemes designed to attain its objectives under rules and regulations which the Council shall establish for this purpose. The Council shall exercise, through the Secretariat, authority and jurisdiction over, and administer, ongoing technical assistance programs and/or grants-in-aid for manpower and youth development including those which may be entered into between the Government of the Philippines and international and foreign organizations and nations, as well as persons and organizations in the Philippines. In order to integrate the national manpower development effort, all manpower training schemes as provided for in this Code shall be coordinated with the Council particularly those having to do with the setting of skills standards. For this purpose, existing manpower training programs in the Government and in the private sector shall be reported to the Council which may regulate such programs to make them conform with national development programs. This Article shall not include apprentices, learners and handicapped workers as governed by appropriate provisions of this Code.

Industry Boards.

Article 49

ART. 49. Industry Boards. — The Council shall establish industry boards to assist in the establishment of manpower development schemes, trades and skills standards and such other functions as will provide direct participation of employers and workers in the fulfillment of the Council's objectives, in accordance with guidelines to be established by the Council and in consultation with the National Economic and Development Authority.

Employment Service Training Functions.

Article 50

ART. 50. Employment Service Training Functions. — The Council shall utilize the employment service of the Department of Labor for the placement of its graduates. The Bureau of Employment Services shall render assistance to the Council in the measurement of unemployment and underemployment, conduct of local manpower resource surveys and occupational studies including an inventory of the labor force, establishment and maintenance without charge of a national register of technicians who have successfully completed a training program under this Act, and skilled manpower including its periodic publication, maintenance of an adequate and up-to-date system of employment information.

Incentive Scheme.

Article 51

ART. 51. Incentive Scheme. — An additional deduction from taxable income of one-half (Vi) of the value of labor training expenses incurred for developing or upgrading the productivity and efficiency of unskilled labor or for management development programs shall be granted to the person or enterprise concerned provided such training program is approved by the Council and provided that such deduction shall not exceed 10% of direct labor wage.

Council Secretariat.

Article 52

ART. 52. Council Secretariat. — To carry out the objectives of this Title, the Council shall have a Secretariat headed by an Executive Director appointed by the President on recommendation of the Council. The Executive Director shall be assisted by one Deputy Executive Director who shall be a career administrator likewise to be appointed by the President on recommendation of the Council. The Secretariat shall have an Office of Manpower Planning and Development, a National Manpower Skills Center, regional manpower development centers, and such other offices as may be deemed necessary. The Executive Director shall have the rank and emoluments of an undersecretary and shall serve for a term of ten (10) years. The directors of the Office of Manpower Planning and Development and the Skills Center shall have the rank and emoluments of a bureau director and shall be subject to Civil Service Law, rules and regulations. The Executive Director, Deputy Executive Director, and Directors shall be natural-born citizens, from 30 to 50 years of aye at the time of appointment, have a master's degree or its equivalent, and experience in national planning and development of human resources. The Director of the Skills Center shall, in addition to the foregoing qualifications, have undergone training in center management. Directors shall be appointed by the President on recommendation of the Council. The Executive Director shall appoint such personnel necessary to carry out the objectives, policies and functions of the Council subject to Civil Service rules. The Secretariat shall have the following functions and responsibilities: To prepare and recommend the manpower plan for approval by the Council; To recommend allocation of resources for the implementation of the manpower plan as approved by the Council; To carry out the manpower plan as the implementing arm of the Council; To effect the efficient performance of the functions of the Council and the achievement of the objectives of this Title; To determine specific allocation of resources for projects to be undertaken pursuant to approved manpower plans; To submit to the Council periodic reports on progress and accomplishment of work programs; To prepare for approval by the Council an annual report to the President on plans, programs and projects on manpower and out-of-school youth development; To enter into agreements to implement approved plans and programs and perform any and all such acts as will fulfill the objectives of this Code as well as ensure the efficient performance of the functions of the Council; and To perform such other functions as may be authorized by the Council.

Regional Manpower Development Centers.

Article 53

ART. 53. Regional Manpower Development Centers. — The Council shall create regional manpower development centers which shall determine the manpower needs of industry, agriculture and other sectors of the economy within their respective jurisdictions; provide the Council central planners with the data for updating the National Manpower plan; recommend programs for the regional level agencies engaged in manpower and youth development within the policies formulated by the Council; perform such other duties as may be assigned by the Council; administer and supervise Secretariat training programs within the region; and perform such other functions as may be authorized by the Council.

Consultants and Technical Assistance, Publication and Research.

Article 54

ART. 54. Consultants and Technical Assistance, Publication and Research. — In pursuing its objectives, the Council is authorized to set aside a portion of its appropriation for the hiring of the services of qualified consultants, and/or private organizations for research work publication. It shall avail itself of the services of other agencies of the Government as may be required.

Rules and Regulations.

Article 55

ART. 55. Rules and Regulations. — The Council shall define its broad functions and issue appropriate rules and regulations necessary to implement the provisions of this Code.

Title II
Chapter I

Statement of Objectives.

Article 56

ART. 56. Statement of Objectives. — This Title aims: 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.

Article 57

ART. 57. Definition of Terms. — As used in this Title: "Apprenticeship" means practical training on the job supplemented by related theoretical instruction; An "apprentice" is a worker who is covered by a written apprenticeship agreement with an individual employer or any of the entities recognized under this Chapter; An "apprenticeable occupation" means any trade, form of employment or occupation which requires more than three (3) months of practical training on the job supplemented by related theoretical instruction; and "Apprenticeship agreement" is an employment contract wherein the employer binds himself to train the apprentice and the apprentice in turn accepts the terms of training.

Qualifications of Apprentice.

Article 58

ART. 58. Qualifications of Apprentice. — To qualify as an apprentice, a person shall: Be at least fourteen (14) years of age; Possess vocational aptitude and capacity for apprenticeship as established through appropriate tests; and Possess the ability to comprehend and follow oral and written instructions. Trade and industry associations may recommend to the Secretary of Labor appropriate educational requirements for different occupations.

Who May Employ Apprentices.

Article 59

ART. 59. Who May Employ Apprentices. — Employers may enter into apprenticeship agreements or otherwise employ apprentices only in apprenticeable trades and occupations approved by the Secretary of Labor.

Contents of Apprenticeship Agreements.

Article 60

ART. 60. Contents of Apprenticeship Agreements. — Apprenticeship agreements including wage rates of apprentices shall conform with applicable rules and regulations issued by the Secretary of Labor. Apprenticeship agreements providing for wage rates below the legal minimum wage may be entered into only in accordance with apprenticeship programs duly approved by the Department of Labor. The Department shall develop standard model programs of apprenticeship.

Signing of Apprenticeship Agreement.

Article 61

ART. 61. Signing of Apprenticeship Agreement. —Every apprenticeship agreement shall be signed by the employer or his agent, or by an authorized representative of any of the recognized organizations, associations or groups, and by the apprentice. An apprenticeship agreement with a minor shall be signed in his behalf by his parent or guardian and the same shall be binding up to the stipulated termination of the contract. Every 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.

Venue of Apprenticeship Programs.

Article 62

ART. 62. Venue of Apprenticeship Programs. — 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 apprentices: Apprenticeship conducted entirely by and within the sponsoring firm, establishment or entity; Apprenticeship entirely within a Department of Labor training center or other public training institution; or 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.

Sponsoring of Apprenticeship Program.

Article 63

ART. 63. Sponsoring of Apprenticeship Program. — Any of the apprenticeship schemes recognized herein 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: In the premises of the sponsoring employer in the case of individual apprenticeship programs; 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 In a Department of Labor training center or other public training institution.

Investigation of Violation of Apprenticeship Agreement.

Article 64

ART. 64. Investigation of Violation of Apprenticeship Agreement. — Upon complaint of any interested person or upon its own initiative, the appropriate agency of the Department of Labor or its authorized representative shall investigate any violation of an apprenticeship agreement pursuant to such rules and regulations as may be prescribed by the Secretary of Labor.

Appeal to the Secretary of Labor.

Article 65

ART. 65. Appeal to the Secretary of Labor. — The decision of the authorized agency of the Department of Labor may be appealed by any aggrieved person to the Secretary of Labor within five (5) days from receipt of the decision. The decision of the Secretary of Labor shall be final and executory.

Exhaustion of Administrative Remedies.

Article 66

ART. 66. Exhaustion of Administrative Remedies. — 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.

Aptitude Testing of Applicants.

Article 67

ART. 67. Aptitude Testing of Applicants. — Consonant with the minimum qualifications of apprentice-applicants required under this Chapter, employers or entities with duly approved apprenticeship programs shall have primary responsibility for providing appropriate aptitude tests in the selection of apprentices. If they do not have adequate facilities for the purpose, the Department of Labor shall perform the services free of charge.

Responsibility for Theoretical Instruction.

Article 68

ART. 68. Responsibility for Theoretical Instruction. — Supplementary theoretical instruction to apprentices in cases where the program is undertaken in the plant may be done by the employer. If the latter is not prepared to assume the responsibility, the same may be delegated to an appropriate government agency.

Voluntary Organization of Apprenticeship Programs; Exceptions.

Article 69

ART. 69. Voluntary Organization of Apprenticeship Programs; Exceptions. — The organization of apprenticeship programs shall be primarily a voluntary undertaking of employers. When national security or 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 shortage of trained manpower is deemed critical as determined by the Secretary of Labor. Appropriate rules in this connection shall be promulgated by the Secretary of Labor as the need arises. The number of apprentices to be compulsorily employed, in the case of factories and other industrial enterprises, shall depend upon the exigencies of the situation.

Deductibility of Training Costs.

Article 70

ART. 70. Deductibility of Training Costs. — 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 shall be granted to the person or enterprise organizing an apprenticeship program provided such program is duly recognized by the Department of Labor: Provided, further, That such deduction shall not exceed 10% of direct labor wage: And provided, finally, That the person or enterprise who wishes to avail of this incentive should pay his apprentices the minimum wage.

Apprentices Without Compensation.

Article 71

ART. 71. Apprentices Without Compensation. — The Secretary of Labor may authorize the hiring of apprentices without compensation whose training on the job is required by the school or training program curriculum or as a requisite for graduation or board examination.

Chapter II

Learners Defined.

Article 72

ART. 72. Learners Defined. — Learners are persons hired as trainees in semiskilled and other industrial occupations which are non-apprenticeable and which may be learned through practical training on the job in a relatively short period of time which shall not exceed three (3) months.

When Learners May Be Hired.

Article 73

ART. 73. When Learners May Be Hired. — Learners may be employed when no experienced 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.

Learnership Agreement.

Article 74

ART. 74. Learnership Agreement. — Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include: The names and addresses of the learners; The duration of the learnership period, which shall not exceed three (3) months; The wages or salary rates of the learners which shall begin at not less than seventy-five percent (75%) of the applicable minimum wage; and A commitment to employ the learners, if they so desire, as regular employees upon completion of the learnership. 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 learner. The learnership agreement shall be subject to inspection by the Secretary of Labor or his duly authorized representative.

Learners in Piecework.

Article 75

ART. 75. Learners in Piecework. — Learners employed in piece or incentive rate jobs during the training period shall be paid in full for the work done.

Penalty Clause.

Article 76

ART. 76. Penalty Clause. — Any violation of this Chapter or its implementing rules and regulations shall be subject to the general penalty clause provided for in this Code.

Chapter III

Definition.

Article 77

ART. 77. Definition. — Handicapped workers are those whose earning capacity is impaired by age or physical or mental deficiency or injury.

When Employable.

Article 78

ART. 78. When Employable. — Handicapped workers may be employed when their employment is necessary to prevent curtailment of employment opportunities and when it does not create unfair competition in labor costs or impair or lower working standards.

Employment Agreement.

Article 79

ART. 79. Employment Agreement. — Any employer who employs handicapped workers shall enter into an employment agreement with them, which agreement shall include: The names and addresses of the handicapped workers to be employed; The rate to be paid the handicapped workers which shall be not less than seventy-five percent (75%) of the applicable legal minimum wage; The duration of employment period; and The work to be performed by handicapped workers. The employment agreement shall be subject to inspection by the Secretary of Labor or his duly authorized representatives.

Eligibility for Apprenticeship.

Article 80

ART. 80. Eligibility for Apprenticeship. — Subject to the appropriate provisions of this Code, handicapped workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they are hired.

Penalty Clause.

Article 81

ART. 81. Penalty Clause. — Violation of any provision of this Chapter or its implementing rules and regulations shall be subject to the general penalty clause provided for in this Code.

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Provisions on this page are reproduced verbatim from official open data. See the attribution line.

Source: Official Gazette of the Republic of the Philippines — Philippine laws are public documents (works of the government).