Amending Further Republic Act Numbered One Thousand Eight Hundred Twenty-Six, As Amended, Otherwise Known As The "National Apprenticeship Act Of 1957"

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 173 April 12, 1973

AMENDING FURTHER REPUBLIC ACT NUMBERED ONE THOUSAND EIGHT HUNDRED TWENTY-SIX, AS AMENDED, OTHERWISE KNOWN AS THE "NATIONAL APPRENTICESHIP ACT OF 1957"

WHEREAS, a need exists for the optimum exploitation of employment generating measures currently available to the Government so that their potentials for contributing to the solution of the country's unemployment problem may be fully realized;

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;

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;

WHEREAS, it is accordingly in the national interest, pursuant to Section 9, Article II of the New Constitution, to align apprenticeship...

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Summary of Presidential Decree No. 173

Establishes a national apprenticeship system (Section 2):
- Participation of employers, workers, government and non-government agencies
- Establishes apprenticeship standards to promote welfare of apprentices
- Extends apprenticeship to wide range of trades, occupations and employment levels

Creates Bureau of Apprenticeship under Department of Labor (Sections 3, 4):
- Headed by a Director with specialized training and experience
- Evaluates trades and occupations for apprenticeability and issues list (Section 4a)
- Implements and supervises apprenticeship standards and programs (Section 4b)
- Develops policies, rules, regulations and plans for apprenticeship (Section 4c)
- Promotes apprenticeship by bringing employers and workers together (Section 4d)
- Conducts research and evaluates statistics on apprenticeship (Section 4e)
- Provides technical and advisory services (Section 4f)
- Reviews and appraises proposed apprenticeship programs and agreements (Section 4g)
- Maintains register of apprentices, agreements and programs (Sections 4h, 4i)
- Approves, suspends, revokes or terminates programs and agreements (Section 4j)
- Acts as clearing house for apprenticeship programs (Section 4k)
- Disseminates information to promote understanding of apprenticeship (Section 4l)
- Protects and promotes welfare of apprentices (Section 4m)

Regulates apprenticeship agreements (Sections 4A, 5):
- Unlawful to employ apprentice without approved program (Section 4A)
- Penalty of 300 to 2,000 pesos fine or 30 days to 1 year imprisonment (Section 4A)
- Agreement must contain details like trade, duration, work hours, wage schedule, probation period, etc. (Section 5)

Wage provisions for apprentices (Sections 6A, 6B):
- Initial wage 75% of minimum wage, can be reduced to 50% with approval (Section 6A)
- Periodic wage increases should not disturb wage structure for regular workers (Section 6A)
- Penalty of 500 to 3,000 pesos fine for underpaying apprentices (Section 6B)

Apprenticeship schemes and training venues (Sections 4B, 4C):
- Within sponsoring firm, public training institution, or combination (Section 4B)
- Can be sponsored by single employer, group of employers or civic organization (Section 4C)

Definitions of key terms like "apprentice", "apprenticeship", "apprenticeable occupation" (Section 10)

Compulsory apprenticeship in critical shortage areas (Section 11):
- President can require compulsory training in certain trades or occupations
- Not more than 5% of workforce or 10% of unskilled workers in factories
- Tax deduction for portion of training costs

Promotion of youth apprenticeship and job placement assistance (Sections 11A, 11B)