Apprenticeship; On-the-Job Training (OJT)

Question: Anybody knows any statutory requirements for hiring OJTrainees?

This is posted for discussion purposes. This is not a complete listing of all applicable provisions and any additions are most welcome (for tips on how to do online legal research, go here). Let’s start with Book II, Title II, Chapter I (Apprentices) of the Labor Code:

Art. 57. Statement of objectives. This Title aims:

1. To help meet the demand of the economy for trained manpower;

2. To establish a national apprenticeship program through the participation of employers, workers and government and non-government agencies; and

3. To establish apprenticeship standards for the protection of apprentices.

Art. 58. Definition of Terms. As used in this Title:

1. “Apprenticeship” means practical training on the job supplemented by related theoretical instruction.

2. 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.

3. 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.

4. “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.

Art. 59. Qualifications of apprentice. To qualify as an apprentice, a person shall:

1. Be at least fourteen (14) years of age [N.B. the Implementing Rules says 15 years old, which is supported by R.A. 7610, as amended by R.A. 7658);

2. Possess vocational aptitude and capacity for appropriate tests; and

3. 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.

Art. 60. Employment of apprentices. Only employers in the highly technical industries may employ apprentices and only in apprenticeable occupations approved by the Secretary of Labor and Employment. (As amended by Section 1, Executive Order No. 111, December 24, 1986)

Art. 61. Contents of apprenticeship agreements. Apprenticeship agreements, including the wage rates of apprentices, shall conform to the rules issued by the Secretary of Labor and Employment. The period of apprenticeship shall not exceed six months. Apprenticeship agreements providing for wage rates below the legal minimum wage, which in no case shall start below 75 percent of the applicable minimum wage, may be entered into only in accordance with apprenticeship programs duly approved by the Secretary of Labor and Employment. The Department shall develop standard model programs of apprenticeship. (As amended by Section 1, Executive Order No. 111, December 24, 1986)

Art. 62. 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, if the latter is not available, by an authorized representative of the Department of Labor, and the same shall be binding during its lifetime.

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.

Art. 63. 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 apprentice:

1. Apprenticeship conducted entirely by and within the sponsoring firm, establishment or entity;
2. Apprenticeship entirely within a Department of Labor and Employment training center or other public training institution; or
3. 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.

Art. 64. 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:

1. In the premises of the sponsoring employer in the case of individual apprenticeship programs;
2. 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
3. In a Department of Labor and Employment training center or other public training institution.

Art. 65. 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 and Employment 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 and Employment.

Art. 66. Appeal to the Secretary of Labor and Employment. The decision of the authorized agency of the Department of Labor and Employment may be appealed by any aggrieved person to the Secretary of Labor and Employment within five (5) days from receipt of the decision. The decision of the Secretary of Labor and Employment shall be final and executory.

Art. 67. 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.

Art. 68. Aptitude testing of applicants. Consonant with the minimum qualifications of apprentice-applicants required under this Chapter, employers or entities with duly recognized 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 and Employment shall perform the service free of charge.

Art. 69. 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.

Art. 70. Voluntary organization of apprenticeship programs; exemptions.

1. The organization of apprenticeship program shall be primarily a voluntary undertaking by employers;

2. 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 and Employment. Appropriate rules in this connection shall be promulgated by the Secretary of Labor and Employment as the need arises; and

3. Where services of foreign technicians are utilized by private companies in apprenticeable trades, said companies are required to set up appropriate apprenticeship programs.

Art. 71
. 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, That such program 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: and Provided, finally, That the person or enterprise who wishes to avail himself or itself of this incentive should pay his apprentices the minimum wage.

Art. 72. Apprentices without compensation. The Secretary of Labor and Employment may authorize the hiring of apprentices without compensation whose training on the job is required by the school or training program curriculum or as requisite for graduation or board examination.

26 thoughts on “Apprenticeship; On-the-Job Training (OJT)

  1. Hermogenes

    Hello po. How can I file a complaint or a lawsuit to a Company that requires my student to pay for On the Job training? Is paying for your OJT an illegal act by this companies to exploit our students here in Philippines? Please advise. Thank you very much.

    Reply
  2. edwin

    If understood this correctly, 6 months is the maximum time for OJT? and they do get some kind of compensation? A friend is on training right now and his company says he is required to do this for 1 year, under a two hundred pesos (200 pesos) allowance per month and nothing else. He is currently based in Zamboanga as a Seaman. He graduated BS Marine Transportation.

    Reply
  3. Denis

    Good day everyone,
    I am a foreign student taking up Naval Architecture here in the Philippines, please I have an issue and I will like someone to clarify things for me. My enquiry is, is it possible for one to graduate from a professional course – naval architecture – without having a proper OJT? The school denied us of a proper OJT, and they took us -foreign students- to a welding institution instead of a shipyard or something related to ship building, and I’m in my final year, still with no OJT. Please I need help.

    Reply
  4. Gem

    Hi. I just have a question. My cousin is currently working at a company in Laguna. TESDa accredited siya at doon mismo sila dineploy ng TESDA. However recently yung group leader nila sa assigned station nila is abusing his power. There are times na bigla na lang sinisigawan ang pinsan ng walang rason. Pinagiintan ba. And not just him, even his co-ojt/apprentice. They are verbally and physically abused since he doesn’t have any rest day and even on Labor day they are required to report and work. What actions can he do to stop the abusing? Can DOLE do something about this? Thank you for answering. It will be a big help.

    Reply
  5. Leila

    My son who is a BS Maritime Transportaion student finshed his 3rd year college and has to undergo a.n apprenticeship as a requirment to graduate. He went aboard a local maritime industry for 17 months. We were informed about the contract he has signed,which was supposedly 15 months.he started on July 2016 and should have been a given a released order on sept 2017. He was then released on December 2017 which means he overstayed in the shipping co for 2 months.Upon release he was issued a clearance and a certification by the cadet officer that he has completed his apprenticeship. He wants to apply for an international company because his apprenticeship in that local shipping industry lacks gross tonnage a requirement for his graduation. A requiremnt for his international placement is the Sea Service Training certificate he has to obtain from the shipping company he came from but to his dismay the company is demanding him to pay 25000.00 for not finishing his contract when he was already given a certificate by the cadet officer that he has finsihed his training. He is now in Manila at the office of the shipping company to claim the sea service training certificate but is adviced to stay as a utility worker without any compensation that once he signs in according to the admin there is no way he can back out in return for the said certificate.He has to stay for 3 years in the company for him to be lined up for international placement. Is this right for the company to let him pay the amount of 25000.00 for his certificate? Can DOLE do something on this?

    Reply
  6. Aaron

    Good day po 5th Architecture student po ako, and nag pa part time/ apprentice po ako sa isang company almost 1 year. Ask ko lang po kung allowance pa din po ba or minimum wage na po ba ang dapat. Thanks po

    Reply
  7. cora

    hi ask q lang po,nag oojt po aq sa resto bar ng 8hrs.wla pong allowance or free meal,taz ung trainee supervisor lagi po kaming pinapagalitan kht wla po kming ginagawa.actually ung anak q po ung nag tratarining senior high plang po xia,tama po ba ung ganun

    Reply
  8. cora

    tama po ba ung ganun 8hours ojt w/out alowance at free meal,taz ung ojt training supervisor laging pinapagalitan ung mga ojt

    Reply

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