Press Release
August 15, 2016


Neophyte senator Joel Villanueva has filed Senate Bill No. 208 or the "Enterprise-Based Education and Training Act of 2016" which seeks to strengthen Technical Vocational Education and Training (TVET) in the country by incorporating apprenticeship and "dual training" in the business sector.

The TVET is a program initiated by Technical Education and Skills Development Authority (TESDA) that gives dual training which is a combination of on- and off-the-job training involving an "Enterprise-Based Agreement" between enterprise and trainee wherein an enterprise binds itself to train the trainee who in turn accepts the terms of education and training qualifications approved by the TESDA Board.

"Employers' participation in TVET is a precondition to the success of skills development activities. Engaging the business sector in education and training will ensure adequate supply of skills that businesses need right now," Villanueva explained.

Despite records showing that more than 9 million TVET graduates have been employed from 2010 to 2015, enrollment in enterprise-based training lagged behind at only 408,882 or 4.11%.

"With the steady rise in TVET outputs in the Philippines, greater private sector participation in skills development is not only essential but also imperative to provide alternative route to training and employment."

The bill also mandates participating enterprise, group or association, industry organization, government institution or civic group to hire their training graduates as regular employees if they choose to retain them.

Villanueva added that he is putting a cap in the length of the apprenticeship to ensure that the program will not be abused by enterprises.

"We want to make sure that this program will not be used to underpay or contractualize our workers. Thus, the period of training shall conform with the rules issued by TESDA which covers a minimum of four months and a maximum of six months depending on the nature of the industry," said Villanueva, Chairman of Senate Committee on Labor, Employment and Human Resources Development.

On the other hand, participating industries shall be granted incentives including: an additional deduction from taxable income equivalent to 50% of the training expenses incurred; donations, contributions, bequest, subsidy paid to a participating institution within the taxable year shall be deductible for income tax purposes in an amount not to exceed 5% of their taxable business income; and an exemption from donor's tax.

"The government's partnerships with industry associations in the last six years prove that skills development activities can be a nexus where the pursuit of public and private needs intersect. Engaging the business community in education and training will help us reach out to as many people, especially the youth, who are seeking jobs and opportunities," Villanueva said.

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