Published — July 20, 2017
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of your own lawyer to address your legal concerns, if any.
Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
Read also: Frequently Asked Questions on Contracting and Subcontracting
When hiring new employees, among the many factors that can strongly affect the management’s decision on whether to accept or reject a candidate are the basic skills and work experiences that such candidate brings on the table. Since said factors are of paramount importance to many employers, the Philippine government implemented the Kasanayan at Hanapbuhay Program, which is essentially an apprenticeship and employment program where apprentices are trained to speed up the matching of jobseekers with available jobs, among other purposes.
Why engage the services of apprentices?
To begin with, the law defines an apprentice as a worker who is covered by a written apprenticeship agreement with an employer. To qualify as an apprentice, one must be at least 14 years of age, and possesses vocational aptitude and capacity for appropriate tests. He should also have the ability to comprehend and follow instructions, whether verbal or written [Labor Code, Arts. 58 & 59].
Employers who organize an apprenticeship program and employ the services of apprentices enjoy certain benefits, as they are given by law the option to avail either of the following:
- To pay their apprentices below the minimum wage rates, but in no case should it fall below 75% of the prevailing minimum rate [Labor Code, Art. 61]; or
- To avail additional deduction from their taxable income one-half (1/2) of the value of labor training expenses incurred for developing the productivity and efficiency of apprentices. Such deduction, however, should not exceed 10% of the direct labor wage [Labor Code, Art. 71].
Given the additional incentives of organizing an apprenticeship program, employing the services of apprentices has become an attractive option for many enterprises, especially those who are engaged on businesses requiring the presence of a skill-based workforce. But how do employers engage in apprenticeship?
Registering an apprenticeship program
Under the Guidelines in the Implementation of the Kasanayan at Hanapbuhay Program [D.O. No. 68-04], any enterprise with 10 or more regular workers is qualified to join the program. However, as a limitation, the number of apprentices should not exceed 20% of the enterprise’s total regular workforce. This prevents the employers from abusing the program by constituting a workforce composed substantially, if not entirely, of mere apprentices, which could effectively enable an employer to evade its obligation to comply with the minimum wage law.
To be sure, no enterprise shall be allowed to hire apprentices unless its apprenticeship program is registered and approved by the Technical Education and Skills Development Authority (“TESDA”). To register the program, the employer should submit to any of TESDA’s local offices the following requirements:
- Letter of application;
- Certification that the number of apprentices to be hired shall not be more than 20% of its total workforce;
- Skills training outline.
However, it is important to note that not all occupations may be the subject of an apprenticeship program. Only employers in highly technical industries may hire apprentices, and only in apprenticeable occupations. Such apprenticeable occupations refer to any trade, form of employment or occupation which requires more than three months of practical training on the job supplemented by related theoretical instruction [Labor Code, Arts. 58(c) & 60].
Apprenticeship agreement, selection and training of apprentices
Consistent with the minimum qualifications of an apprentice as required by law (see above), employers with duly recognized apprenticeship programs shall have primary responsibility for providing appropriate aptitude tests in selecting the apprentices that they would be hiring. If the employer does not have adequate facilities for that purpose, the Department of Labor and Employment (“DOLE”) may even perform the service for the enterprise, free of charge [Labor Code, Art. 68].
The apprenticeship period shall not be less than 4 months but not more than 6 months. However, the participating employer has the option to hire the apprentice even prior to the completion of the apprenticeship period.
The Guidelines also provide that no apprenticeship training will commence until an Apprenticeship Agreement has been forged between an enterprise and an apprentice. Therefore, a prospective enterprise should first bind itself to train the apprentice who, in turn, accepts the terms of training for a recognized apprenticeable occupation emphasizing the rights, duties and responsibilities of each party.
Clearly, apprenticeship as a labor law concept is intended to benefit both the employers and their workers by reducing job mismatch, generating more employment opportunities, promoting speedy hiring and increasing work efficiency by enhancing skills through training. Though our present laws are still evolving to curb the undesirable practice of many companies who take in apprentices to save on labor costs but are hardly concerned with training at all [see Explanatory Note, S. No. 380], it cannot be denied that apprenticeship, when done right, plays a vital role in achieving for our country a developed manpower resource. Thus, it would now be up to the employers to implement the State’s noble purpose on apprenticeship as part of their corporate social responsibility.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding employment of apprentices, learners, handicapped and other special workers, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.