Omnibus Rules Implementing the Labor Code - Book 2

7/31/2019 Omnibus Rules Implementing the Labor Code - Book 2

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OMNIBUS RULESIMPLEMENTING THE LABOR CODE

BOOK TWONational Manpower Developent Pro!ra

RULE IDefinition of Terms

SECTION 1. Definition of terms.

(a) "Council" refers to National Manpower and Youth Council.

(b) "Human resources development" refers to the process b which the actual and potential labor force is made to sstematicall

ac!uire reater #nowlede$ s#ills or capabilities for the nation%s sustained economic and social rowth.

(c) "Manpower" is that portion of the population which has actual or potential capabilit to contribute to the production of oods

and services.

(d) "National Manpower &lan" refers to the plan formulated b the Council on the sstematic determination of manpower

re!uirements and suppl of the sectors of the econom over a future period of time. 't shall embod policies and strateies on how

human resources can be improved in !ualit and productivit$ how the can be efficientl allocated to various emploments$ with a

view to acceleratin the attainment of the countr%s overall economic and social obectives.

(e) "rainin" is the sstematic development of the attitude*#nowlede*s#ill*behavior pattern re!uired for the ade!uate

performance of a iven ob or tas#.

(f) "rainin in vocation" refers to a rane of activities aimed at providin the s#ills$ #nowlede$ and attitudes re!uired for

emploment in a particular occupation$ roup$ roup of related occupations or functions in a field of economic activit.

() "+asic s#ills trainin" refers to the first stae of the learnin process of a vocational character for a iven tas#$ ob$ occupation or

roup of occupations$ aimed at developin the fundamental attitude*#nowlede* s#ill*behavior pattern to specified standards.

his covers an of the followin,

(-) "&reentr trainin" is a basic s#ills trainin for immediate entr into the wor#in environment.

(/) "0ccelerated trainin" is basic s#ills trainin of a shortterm nature for obs with a defined level of !ualifications. his usuall

refers to a rapid paced$ condensed vocational trainin to fill immediate manpower needs.

(h) "1urther trainin" refers to that part of vocational trainin which follows basic trainin$ usuall within the framewor# of a

trainin proram or scheme$ for reconi2ed !ualifications. his covers an or all of the followin,

(-) 3pradin trainin for supplementar s#ills and #nowlede in order to increase the versatilit and occupational mobilit of a

wor#er or to improve his standard of performance.

(/) 3pdatin trainin to improve the performance of people in their occupation in respect to modern developments4 new

materials$ tools$ processes.

(5) 6efresher process of further trainin in wor# currentl performed in order to improve ob performance. his also refers to

trainin to reain s#ills and #nowlede which ma have been partl forotten as a result of lenth interruptions in the performance

of an occupation.


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(7) 8peciali2ation trainin to consolidate$ deepen and broaden s#ills and #nowlede for a particular tas#$ function or aspect of a

wor#er%s occupation.

(9) 6etrainin for the ac!uisition of s#ills and #nowlede re!uired in an occupation other than the one for which the person

oriinall trained.

(i) ":ntrepreneurship trainin" refers to the trainin schemes to develop persons for selfemploment or for orani2in$ financin

and*or manain an enterprise.

() "Cooperative settlement trainin" refers to the trainin of a roup of oun people or farmer families in modern methods in

ariculture and cooperative livin and subse!uentl to orani2e and locate them in cooperative settlement.

(#) "'nstructor trainin" is aimed at developin capacities of persons for impartin attitudes$ #nowlede$ s#ills and behavior

patterns$ re!uired for specific obs$ tas#s$ occupations or roup of related occupations.

(l) ";ocational preparation trainin" refers to a rane of trainin activities primaril aimed at the outh and coverin an or all of

the followin,

(-) 1irst introduction to wor# of a vocational character coverin a rane of occupational activities4

(/) &reparin the outh for choosin an occupation or a line of trainin4

(5) 0c!uaintin the outh with different materials$ tools$ machines$ procedures and elementar theoretical #nowlede relevant to a

roup of occupations4

(7) &rovidin the outh with wor#in methods and standards e


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RULE IIFunctions and Areas of Responsibilit

SECTION 1!1unctions of the Council. he Council shall ta#e chare of the trainin and development of human resources$

institutions$ and formulate such interated plans$ policies$ prorams$ and proects that will ensure efficient and proper allocation$

accelerated development and optimum utili2ation of the nation%s manpower$ and thereb promote emploment and accelerate

economic and social rowth.

SECTION "!National manpower plan. he Council shall,

(a) 1ormulate a lon term plan which shall be the controllin plan for the development of manpower resources for the entire

countr4

(b) Carr out the approved manpower plan$ and promulate policies and standards for manpower and outh development

calculated to develop and uprade occupational s#ills of the labor force.

SECTION #! 0dministration of trainin prorams. o interate national manpower development efforts$ the Council shall

coordinate all manpower trainin schemes$ e


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SECTION 1*! :mploment promotion schemes. he Council shall adopt emploment promotion schemes to channel

unemploed outh to meet manpower shortaes or other occupations.

SECTION 11!Director=eneral authori2ed to enter into areements. he Director=eneral$ actin on behalf of the Council$ shall

enter into areements necessar to implement manpower prorams$ and act upon nominations of &hilippine citi2ens for trainin in

other countries.

SECTION 1"!Coordination of emploment service. he Council shall coordinate emploment service activities with the +ureauof :mploment 8ervices particularl in the measurement of unemploment and underemploment$ the conduct of local

manpower resources surves and occupational studies includin an inventor of the labor force$ and the establishment as well as

maintenance without chare of a national reister of technicians and other s#illed manpower who have successfull completed

trainin prorams under the Council$ includin its periodic publication$ and the maintenance of an ade!uate and uptodate sstem

of emploment information.

SECTION 1#!National standards of trade s#ills. he Council shall establish and implement a national standards of trade s#ills$

testin and certification.

SECTION 1$. 0dministration of technical assistance prorams. he Council shall e


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RULE IIITrainin+ and De,elopment

SECTION 1!6esponsibilit of the NMYC for trainin and development. he NMYC shall provide$ throuh its 8ecretariat$

instructor trainin$ entrepreneurship development$ trainin in vocations$ trades and other fields of emploment$ and assist an

emploer or orani2ation in developin trainin schemes under such rules and reulations as the Council ma establish for this

purpose.

SECTION "!'nteration of trainin prorams. he Council shall coordinate all manpower trainin schemes$ apprenticeship and

learnership prorams$ particularl the settin of s#ills standards. 't ma reulate ebliation to report. 0ll manpower trainin prorams$ whether in the overnment or in the private sector shall be

reported to the Council in a form to be prescribed b it.

SECTION $!0pplication for NMYC assistance. 0n person or entit$ private or public$ that is enaed or desires to enae in

trainin ma re!uest the NMYC for assistance b filin with its Director=eneral an appropriate proect proposal.

SECTION %!6e!uirements of trainin proram proposal. he trainin proram proposal shall be submitted in the form

prescribed b the NMYC. he proposal shall include$ amon others the followin,

(a) >bectives of trainin4

(b) pe of trainin$ whether for basic s#ills trainin$ further trainin$ instructor trainin$ cooperative settlement trainin$

entrepreneurship trainin$ vocational preparation trainin$ and special proects trainin4

(c) rainin schedules and proram of activities4

(d) :ducational bac#round of the trainee4

(e) Course content or sllabus4

(f) &ersonnel re!uirements (trainin staff)4

() :stimate of supplies and materials re!uired4

(h) rainin facilities and e!uipment4

(i) Cost estimates and budetar allocation.

SECTION &!0ctions on application for trainin assistance. he Director=eneral shall approve or disapprove the application

within ninet (@A) calendar das from submission thereof.

SECTION '!Criteria for approval. he applicant shall !ualif for assistance if he can establish to the satisfaction of the Director

=eneral that the proect for which trainin assistance is bein souht falls under NMYC priorities$ is feasible$ is laborintensive$ has

the builtincapacit for ob creation and placement$ and that the applicant is in a position to compl with the minimum

re!uirements set b NMYC on trainin facilities$ trainin staff$ course sllabus and trainin methodolo.

SECTION (!0llowable trainin e


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SECTION )!ermination of trainin proect. he Director=eneral ma terminate an trainin proram or proect should

evaluation prove that the trainin center*proect has not complied with an of the re!uirements of the approved proect proposal or

should there be violation of an of the provisions of the relevant Memorandum 0reement.

SECTION 1*!'ncentive scheme. 0n additional deduction from ta


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RULE I-Industr .oards

SECTION 1!NMYC to establish industr boards. he Council shall establish industr boards to assist in the establishment of

manpower development schemes$ trades and s#ills standards and such other functions as will provide direct participation of

emploers and wor#ers in the fulfillment of the Council%s obectives in accordance with the uidelines to be established b the

Council in consultation with the National :conomic and Development 0uthorit.

he maintenance and operation of the 'ndustr +oards shall be financed throuh a fundin scheme under such rates of fees and

manner of collection and disbursement as ma be determined b the Council.

SECTION "!&reparator activities. 'n settin up such industr boards as ma be necessar$ the NMYC shall,

(a) :stablish in consultation with industr and appropriate overnment aencies an 'ndustr Classification 8cheme for the whole

econom4

(b) Determine priorit industries where 'ndustr +oards should be set up4 and

(c) :stablish criteria for determinin to which industr board a certain firm or establishment properl belons.

8:C'>N 5. &owers of the NMYC over the industr boards. he NMYC shall have the power and authorit,

(a) o determine the composition of the industr boards4

(b) o establish the scope of authorit$ functions and relationships of the boards visavis other aencies and orani2ations4 and

(c) o determine the mode of financin for the boards.


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RULE -National S/ills Standards

SECTION 1!:stablishment of s#ills standards. here shall be national s#ills standards for industr trades to be established b

the Council in consultation with emploers% and wor#ers% orani2ations and appropriate overnment authorities. he Council shall

thereafter administer the national s#ills standards.

SECTION "!>bectives. (a) o improve the level of s#ills of wor#ers in industr4

(b) o assist in the development of human resources b providin a precise means of assessin the s#illed manpower of the

countr$ both !ualitativel and !uantitativel4 and

(c) o improve industrial relations b providin common round for neotiations between emploers and wor#ers relatin to terms

and conditions of s#illed wor#ers.

SECTION #!Composition. here shall be set up a National Committee on rade 8#ills 8tandards$ estin and Certification$

composed of the Director=eneral as Chairman$ the Director of the National Manpower 8#ills Center$ the Director of the +ureau of

0pprenticeship$ and one representative each from industrial emploers$ industrial wor#ers$ Department of :ducation$ Culture and

8ports$ Department of rade and 'ndustr$ orani2ations of mechanical enineers$ electrical*electronic enineers$ and civil

enineers.

SECTION $!1unctions. he National Committee on rade 8#ills 8tandards$ estin and Certification shall have the followin

functions and responsibilities,

(a) o propose for the approval of the Council national trade s#ills standards for various trades and occupations4

(b) o approve trade tests appropriate to each national trade s#ill standards4

(c) o appoint trade committees of e


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RULE -IApprentices0ip Trainin+ and Emploment of Special or/ers

SECTION 1!>bectives. he promotion$ development$ and maintenance of apprenticeship prorams shall have the followin

obectives,

(a) o meet the needs of the econom for trainin manpower in the widest possible rane of emploment4

(b) o establish a national apprenticeship proram throuh the participation of emploers$ wor#ers$ overnment$ civic and other

roups4 and

(c) o establish apprenticeship standards for the protection of apprentices and upradin of s#ills.

SECTION "!Definition of terms.

(a) "0pprenticeship" means an trainin on the ob supplemented b related theoretical instructions involvin apprenticeable

occupations and trades as ma be approved b the 8ecretar of Babor and :mploment.

(b) "0pprentice" is a wor#er who is covered b a written apprenticeship areement with an emploer.

(c) "0pprenticeship areement" is a written emploment contract wherein the emploer binds himself to train the apprentice and

the latter in turn arees to wor# for the emploer.

(d) "0pprenticeable occupation" means an trade$ form of emploment or occupation approved for apprenticeship b the 8ecretar

of Babor and :mploment$ which re!uires for proficienc more than three months of practical trainin on the ob supplemented b

related theoretical instructions.

(e) "0pprenticeship standards" means the written implementin plans and conditions of an apprenticeship proram.

(f) "+ureau" means the +ureau of 0pprenticeship.

() ":mploer" means the individual firm or an other entit !ualified to hire apprentice under the Code.

(h) ">n the ob trainin" is the practical wor# e


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(b) 'n the premises of one or several firms desinated for the purpose b the orani2er of the proram if such orani2er is an

association of emploers$ civic roup and the li#e4 and

(c) 'n a Department of Babor and :mploment rainin Center or other public trainin institutions with which the +ureau has

made appropriate arranements.

SECTION %!>ntheob trainin to be e


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rade and industr associations ma$ however$ recommend to the 8ecretar of Babor and :mploment appropriate educational

!ualifications for apprentices in certain occupations. 8uch !ualifications$ if approved$ shall be the educational re!uirements for

apprenticeship in such occupations unless waived b an emploer in favor of an applicant who has demonstrated e


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(e) 0 schedule of the wor# processes of the trade*occupation in which the apprentice shall be trained and the appro


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SECTION "$!:nforcement of areement. No person shall institute an action for the enforcement of an apprenticeship

areement or for damaes for breach thereof$ unless he has e


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(a) echnical personnel in the plant$ trade or industr concerned4

(b) Babor and manaement representatives.

6epresentatives of cooperative$ civic and other roups ma also participate in such committees.

SECTION #"!Duties of apprenticeship committees. 0n apprenticeship committee at an level shall be responsible for the

followin duties,

(a) 0ct as liaison between the apprentice and the emploees4

(b) Mediate and*or settle in the first instance differences between the emploer and the apprentices arisin out of an apprenticeship

areement4

(c) Maintain a constant followup on the technical proress of the proram and of the apprentices in particular4

(d) 6ecommend to the 0pprenticeship Division of the 6eional >ffice concerned the issuance of certificates of completion to

apprentices.

SECTION ##!Creation of ad hoc advisor committees. he 8ecretar of Babor and :mploment ma create ad hoc committees

consistin of representatives of manaement$ labor and overnment on the national$ reional and local levels to advise and assist

him in the formulation of polic$ promotion of apprenticeship and other matters he ma deem appropriate to refer to them.

SECTION #$!3se of trainin centers. he Department ma utili2e the facilities and services of the National Manpower and

Youth Council$ the Department of :ducation$ Culture and 8ports and other public trainin institutions for the trainin of

apprentices.

SECTION #%!Coordination of trainin activities. he apprenticeship Division shall coordinate with the above trainin centers all

activities relatin to apprenticeship. he +ureau$ throuh the 0pprenticeship Division$ shall provide technical uidance and advice

to the centers.

SECTION #&!&riorit in use of trainin centers. &riorit in the use of trainin centers shall be iven to reconi2ed apprenticeship

prorams in s#ills which are hihl in demand in specific reions or localities as determined throuh surves. he +ureau shall

recommend to the 8ecretar of Babor and :mploment the establishment of priorities based on data supplied b the +ureau of

Bocal :mploment$ Babor 8tatistics 8ervice$ the National Manpower and Youth Council$ and its own fundins. he 8ecretar of

Babor and :mploment ma$ however$ also act on the basis of petitions presented b !ualified entities which are willin to bear the

costs of trainin.

SECTION #'. 'ssuance of certificates. 3pon completion of his trainin$ the apprentice shall be issued a certificate of completion

of apprenticeship b the 0pprenticeship Division of the 6eional >ffice concerned.

SECTION #(!Certificate of meritorious service. 0 certificate of meritorious service ma be awarded b the 8ecretar of Babor

and :mploment to apprenticeship committees or other entities which have rendered outstandin service to the cause of

apprenticeship.

SECTION #). Certificate$ evidence of s#ills. 0 certificate of completion of apprenticeship shall be evidence of the s#ills specified

therein in accordance with national s#ills standards established b the Department.

SECTION $*!0pprenticeship without compensation. he 8ecretar of Babor and :mploment throuh the 0pprenticeship

Division$ ma authori2e the hirin of apprentices without compensation whose trainin on the ob is re!uired b the school

curriculum as a prere!uisite for raduation or for ta#in a overnment board e


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SECTION $1. Compulsor apprenticeship. (a) hen rave national emerencies$ particularl those involvin the securit of the

state$ arise or particular re!uirements of economic development so demand$ the 8ecretar of Babor and :mploment ma

recommend to the &resident of the &hilippines the compulsor trainin of apprentices re!uired in a certain trades$ occupations$ obs

or emploment levels where shortae of trained manpower is deemed critical4

(b) here services of forein technicians are utili2ed b private companies in apprenticeable trades said companies are re!uired to

set up appropriate apprenticeship prorams.

SECTION $"!Certification from 0pprenticeship Division. 0n emploer desirin to avail of the ta< deduction provided under

the Code shall secure from the 0pprenticeship Division a certification that his apprenticeship proram was operational durin the

ta


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RULE -IILearners

SECTION 1! Definition of terms. (a) "Bearner" is a person hired as a trainee in industrial occupations which are non

apprenticeable and which ma be learned throuh practical trainin on the ob for a period not e


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RULE -III2andicapped or/ers

SECTION 1!Definition of terms. (a) "Handicapped wor#ers" are those whose earnin capacit is impaired b ae or phsical or

mental deficienc or inur.

(b) ":mploment areement" is the contract of emploment entered into between the emploer and the handicapped wor#er.

SECTION "!hen handicapped wor#ers ma be emploed. Handicapped wor#ers ma be emploed when their emploment is

necessar to prevent curtailment of emploment opportunities and when it does not create unfair competition in labor costs or

impair wor#in standards.

SECTION #!Contents of emploment areement. 0n emploer who hires a handicapped wor#er shall enter into an emploment

areement with the latter which shall include,

(a) he names and addresses of the emploer and the handicapped wor#er4

(b) he rate of pa of the handicapped wor#er which shall not be less than seventfive (F9G) percent of the leal minimum wae4

(c) he nature of wor# to be performed b the handicapped wor#er4 and

(d) he duration of the emploment.

SECTION $. Cop of areement to be furnished to Division. 0 cop each of the emploment areement shall be furnished b the

emploer to the handicapped wor#er and the 0pprenticeship Division involved. he 8ecretar of Babor and :mploment or his

dul authori2ed representative ma inspect from time to time the wor#in conditions of handicapped wor#ers to verif compliance

b the parties with their emploment areement.

SECTION %!:liibilit for apprenticeship. Handicapped wor#ers shall not be precluded from emploment as apprentices or

learners if their handicap is not such as to effectivel impede the performance of ob operations in the particular trade or occupation

which is the subect of the apprenticeship or learnership proram.

Omnibus Rules Implementing the Labor Code - Book 2

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