Book Two is the part of the Labor Code that has been most thoroughly overtaken by later law. It runs from Article 43 to Article 81 in two Titles: a national manpower development programme built around a body that no longer exists, and the rules on apprentices, learners and workers with disabilities — which do still matter, and which are still the source of the 75-per-cent training wage that employers cite.
Part of the Labor Code of the Philippines, all seven Books.
⚠ Title I is impliedly inoperative. DOLE’s own renumbered edition records that Title I (Articles 43–56) “was substantively modified and superseded by R.A. No. 7796, The TESDA Act of 1994, therefore, impliedly inoperative.” The National Manpower and Youth Council named throughout those articles was abolished and the Technical Education and Skills Development Authority (TESDA) created in its place. The text is reproduced below because the Code still prints it, and because each article maps to a TESDA Act section that took over its function — that mapping is given article by article.
⚠ Title II, Chapters I and II are expressly repealed. Republic Act No. 12063, the Enterprise-Based Education and Training (EBET) Framework Act, approved 7 November 2024, repealed Book Two, Title II, Chapters 1 and 2 of Presidential Decree No. 442 — that is, the entire apprenticeship chapter (Articles 57–72) and the entire learners chapter (Articles 73–77). It also repealed R.A. No. 7686, the Dual Training System Act of 1994. Enterprise-based training is now governed by the EBET framework administered by TESDA. The repealed articles are reproduced below as a record of the Code’s text and because older contracts, cases and commentary refer to them, but they no longer state the governing rule — see what replaced them.
Chapter III (Articles 78–81) was not repealed and remains part of the Code, though it must be read with R.A. No. 7277, the Magna Carta for Disabled Persons, as amended by R.A. No. 9442. Throughout Title II, note also that R.A. No. 7610 as amended by R.A. No. 9231 sets the minimum working age at 15, not the 14 printed in Article 59.
Direct Answer
Book Two does two separate jobs. Title I (Articles 43–56) created a national manpower plan, a skills-standards system, training centres and industry boards, all administered by the National Manpower and Youth Council — every one of which is now TESDA’s, under the TESDA Act of 1994. Title II (Articles 57–81) regulated three categories of trainee-workers — but two of those three chapters have since been repealed. Apprentices (Articles 57–72) and learners (Articles 73–77) were governed by the Code until R.A. No. 12063 (2024) repealed both chapters and replaced them with the enterprise-based education and training framework under TESDA. Only Chapter III survives in the Code: workers whose earning capacity is impaired by age, disability or injury (Articles 78–81), whose employment terms are now governed principally by the Magna Carta for Disabled Persons.
Book Two was not renumbered. Articles 43 to 81 carry the same numbers they always had, so there are no bracketed original numbers on this page.
What Took Over Title I
Republic Act No. 7796, the TESDA Act of 1994, absorbed Title I function by function. DOLE’s edition footnotes the correspondence, and it is worth having in one place:
| Labor Code | Subject | What now governs |
|---|---|---|
| Art. 43 | Statement of objective | Sec. 3, TESDA Act — statement of goals and objectives |
| Art. 44 | Definitions | Expanded by Sec. 4, TESDA Act |
| Art. 45 | The Council and its composition | Repealed — Sec. 5 (creation of TESDA) and Sec. 7 (TESDA Board) |
| Art. 46 | National manpower plan | Superseded by Sec. 10 — TESDA Secretariat |
| Art. 47 | National Manpower Skills Center | Absorbed by Secs. 19 and 20 — TESDA committees and skills development centers |
| Art. 48 | Skills standards | Transferred by Sec. 22 — national trade skills standards |
| Art. 49 | Administration of training programs | Superseded by Sec. 23 |
| Art. 50 | Industry boards | Read with Sec. 26 |
| Art. 51 | Employment service functions | “Council” now means TESDA; the Bureau of Employment Services was replaced by the Bureau of Local Employment (Sec. 3, E.O. No. 797) |
| Art. 52 | Incentive scheme | Superseded by Sec. 27 |
| Art. 53 | Council Secretariat | Superseded by Sec. 10 |
| Art. 54 | Regional offices | Superseded by Sec. 14(g) — Regional TESDA Offices |
| Art. 55 | Consultants and research | Reproduced with modifications as Sec. 17 |
| Art. 56 | Rules and regulations | Superseded by Sec. 36 |
What Replaced the Apprenticeship and Learners Chapters
Republic Act No. 12063, the Enterprise-Based Education and Training Framework Act, was approved on 7 November 2024. Its repealing clause (Section 36) expressly repeals R.A. No. 7686 (the Dual Training System Act of 1994), Book Two, Title II, Chapters 1 and 2 of Presidential Decree No. 442, and Section 34(A)(1)(a)(v) of the National Internal Revenue Code of 1997.
The shape of the replacement, in outline:
- One framework, several modalities. Enterprise-based education and training covers general EBET programmes for lower and mid-level competencies, apprenticeship for the higher competency levels, and upskilling of existing employees — who keep their full wages and benefits as regular employees.
- TESDA administers it, including registration and approval of programmes, policy-setting, quality assurance and monitoring.
- A written EBET agreement is required, and the Act specifies what it must contain: the training plan, hours of training per day and per week, the period of training, the training allowance and other benefits, a payment schedule of at least twice a month, the process of termination, and the parties’ general rights and obligations.
- The 75% figure survived, but under a different statute. For apprenticeship, the training allowance must not be lower than 75% of the applicable minimum wage rate, with annual increases for programmes running longer than a year.
- A trainee is not an employee — until the Act says otherwise. An EBET trainee is generally not considered an employee, but becomes a regular employee where the enterprise trains the same person twice consecutively, hires them before the programme is completed, or exceeds the statutory cap on the proportion of trainees in its workforce.
Read the Act and its implementing rules before relying on any of this. The summary above states the framework’s shape, not its detail, and the EBET rules are administered by TESDA rather than by the Code. Where an arrangement began before the repeal, existing programmes remain valid until TESDA has assessed and revalidated them under the Act’s transitory provision.
On This Page
Title I — National Manpower Development Program · 43 · 44 · 45 · 46 · 47 · 48 · 49 · 50 · 51 · 52 · 53 · 54 · 55 · 56
Title II, Ch. I — Apprentices · 57 · 58 · 59 Qualifications · 60 · 61 Agreements and wage · 62 · 63 · 64 · 65 · 66 · 67 · 68 · 69 · 70 · 71 · 72
Ch. II — Learners · 73 · 74 · 75 Agreement · 76 · 77
Ch. III — Handicapped Workers · 78 · 79 · 80 · 81
Amendment and Status Table · Sources
Title I — National Manpower Development Program (Articles 43 to 56)
Status note for the whole Title. Impliedly inoperative — see the mapping table above. Every reference below to “the Council” was to the National Manpower and Youth Council, whose functions are TESDA’s.
Chapter I — National Policies and Administrative Machinery for their Implementation
Article 43 — Statement of Objective
It is the objective of this Title to develop human resources, establish training institutions, and formulate such plans and programs as will ensure efficient allocation, development and utilization of the nation’s manpower and thereby promote employment and accelerate economic and social growth.
Article 44 — Definitions
As used in this Title:
(a) “Manpower” shall mean that portion of the nation’s population which has actual or potential capability to contribute directly to the production of goods and services.
(b) “Entrepreneurship” shall mean training for self-employment or assisting individual or small industries within the purview of this Title.
Article 45 — National Manpower and Youth Council; Composition
To carry out the objectives of this Title, the National Manpower and Youth Council, which is attached to the Department of Labor for policy and program coordination and hereinafter referred to as the Council, shall be composed of the Secretary of Labor as ex-officio chairman, the Secretary of Education and Culture as ex-officio vice-chairman, and as ex-officio members, the Secretary of Economic Planning, the Secretary of Natural Resources, the Chairman of the Civil Service Commission, the Secretary of Social Welfare, the Secretary of Local Government, the Secretary of Science and Technology, the Secretary of Trade and Industry and the Director-General of the Council. The Director General shall have no vote.
In addition, the President shall appoint the following members from the private sector: two (2) representatives of national organizations of employers; two (2) representatives of national workers’ organizations; and one representative of national family and youth organizations, each for a term of three (3) years.
⚠ Repealed. The first paragraph was repealed by Section 5 of R.A. No. 7796 (creation of TESDA) and the second by Section 7 (composition of the TESDA Board). The Council described here does not exist.
Article 46 — National Manpower Plan
The Council shall formulate a long-term national manpower plan for the optimum allocation, development and utilization of manpower for employment, entrepreneurship and economic and social growth. This manpower plan shall, after adoption by the Council, be updated annually and submitted to the President for his approval. Thereafter, it shall be the controlling plan for the development of manpower resources for the entire country in accordance with the national development plan. The Council shall call upon any agency of the Government or the private sector to assist in this effort.
Status note: superseded by Section 10 of the TESDA Act of 1994.
Article 47 — National Manpower Skills Center
The Council shall establish a National Manpower Skills Center and regional and local training centers for the purpose of promoting the development of skills. The centers shall be administered and operated under such rules and regulations as may be established by the Council.
Status note: Sections 19 and 20 of the TESDA Act absorbed this Article.
Article 48 — Establishment and Formulation of Skills Standards
There shall be national skills standards for industry trades to be established by the Council in consultation with employers’ and workers’ organizations and appropriate government authorities. The Council shall thereafter administer the national skills standards.
Status note: the task of establishing and implementing national standards was transferred to TESDA by Section 22 of the TESDA Act.
Article 49 — Administration of Training Programs
The Council shall provide, through the Secretariat, instructor training, entrepreneurship development, training in vocations, trades and other fields of employment, and assist any employer or organization in training schemes designed to attain its objectives under rules and regulations which the Council shall establish for this purpose.
The Council shall exercise, through the Secretariat, authority and jurisdiction over, and administer, on-going technical assistance programs and/or grants-in-aid for manpower and youth development including those which may be entered into between the Government of the Philippines and international and foreign organizations and nations, as well as persons and organizations in the Philippines.
In order to integrate the national manpower development efforts, all manpower training schemes as provided for in this Code shall be coordinated with the Council, particularly those having to do with the setting of skills standards. For this purpose, existing manpower training programs in the government and in the private sector shall be reported to the Council which may regulate such programs to make them conform with national development programs.
This Article shall not include apprentices, learners and handicapped workers as governed by appropriate provisions of this Code.
Status note: superseded by Section 23 of the TESDA Act. The last paragraph is the hinge to Title II: apprentices, learners and workers with impaired earning capacity are governed by the articles below, not by this Title.
Article 50 — Industry Boards
The Council shall establish industry boards to assist in the establishment of manpower development schemes, trades and skills standards and such other functions as will provide direct participation of employers and workers in the fulfillment of the Council’s objectives, in accordance with guidelines to be established by the Council and in consultation with the National Economic and Development Authority.
The maintenance and operations of the industry boards shall be financed through a funding scheme under such rates of fees and manners of collection and disbursements as may be determined by the Council.
Status note: read in relation to Section 26 of the TESDA Act.
Article 51 — Employment Service Training Functions
The Council shall utilize the employment service of the Department of Labor for the placement of its graduates. The Bureau of Employment Services shall render assistance to the Council in the measurement of unemployment and underemployment, conduct of local manpower resource surveys and occupational studies including an inventory of the labor force, establishment and maintenance without charge of a national register of technicians who have successfully completed a training program under this Act, and skilled manpower including its publication, maintenance of an adequate and up-to-date system of employment information.
Status note — two bodies renamed. With the abolition of the NMYC and the creation of TESDA in its place, “Council” now refers to TESDA. The Bureau of Employment Services was replaced by the Bureau of Local Employment under Section 3 of E.O. No. 797.
Article 52 — Incentive Scheme
An additional deduction from taxable income of one-half (1/2) of the value of labor training expenses incurred for development programs shall be granted to the person or enterprise concerned provided that such development programs, other than apprenticeship, are approved by the Council and the deduction does not exceed ten percent (10%) of the direct labor wage.
There shall be a review of the said scheme two years after its implementation.
Status note: superseded by Section 27 of the TESDA Act. The parallel incentive for apprenticeship programmes is at Article 71.
Article 53 — Council Secretariat
The Council shall have a Secretariat headed by a Director-General who shall be assisted by a Deputy Director-General, both of whom shall be career administrators appointed by the President of the Philippines on recommendation of the Secretary of Labor. The Secretariat shall be under the administrative supervision of the Secretary of Labor and shall have an Office of Manpower Planning and Development, an Office of Vocational Preparation, a National Manpower Skills Center, regional manpower development offices and such other offices as may be necessary.
The Director-General shall have the rank and emoluments of an undersecretary and shall serve for a term of ten (10) years. The Executive-Directors of the Office of Manpower Planning and Development, the Office of Vocational Preparation and the National Manpower Skills Center shall have the rank and emoluments of a bureau director and shall be subject to Civil Service Law, rules and regulations. The Director-General, Deputy Director-General and Executive Directors shall be natural-born citizens, between thirty and fifty years of age at the time of appointment, with a master’s degree or its equivalent, and experience in national planning and development of human resources. The Executive Director of the National Manpower Skills Center shall, in addition to the foregoing qualifications, have undergone training in center management. Executive Directors shall be appointed by the President on the recommendations of the Secretary of Labor and Employment.
The Director-General shall appoint such personnel necessary to carry out the objectives, policies and functions of the Council subject to Civil Service rules. The regular professional and technical personnel shall be exempt from WAPCO rules and regulations.
The Secretariat shall have the following functions and responsibilities:
1. To prepare and recommend the manpower plan for approval by the Council;
2. To recommend allocation of resources for the implementation of the manpower plan as approved by the Council;
3. To carry out the manpower plan as the implementing arm of the Council;
4. To effect the efficient performance of the functions of the Council and the achievement of the objectives of this Title;
5. To determine specific allocation of resources for the projects to be undertaken pursuant to approved manpower plans;
6. To submit to the Council periodic reports on progress and accomplishment of work programs;
7. To prepare for approval by the Council an annual report to the President on plans, programs and projects on manpower and out-of-school youth development;
8. To enter into agreements to implement approved plans and programs and perform any and all such acts as will fulfill the objectives of this Code as well as ensure the efficient performance of the functions of the Council; and
9. To perform such other functions as may be authorized by the Council.
Status note: superseded by Section 10 of the TESDA Act, which creates the TESDA Secretariat and specifies its functions and responsibilities.
Article 54 — Regional Manpower Development Offices
The Council shall create regional manpower development offices which shall determine the manpower needs of the industry, agriculture and other sectors of the economy within their respective jurisdictions; provide the Council’s central planners with the data for updating the national manpower plan; recommend programs for the regional level agencies engaged in manpower and youth development within the policies formulated by the Council; and administer and supervise Secretariat training programs within the region and perform such other functions as may be authorized by the Council.
Status note: superseded by Section 14(g) of the TESDA Act, which expressly provides for Regional TESDA Offices.
Article 55 — Consultants and Technical Assistance, Publication, and Research
In pursuing its objectives, the Council is authorized to set aside a portion of its appropriation for the hiring of the services of qualified consultants, and/or private organizations for research work and publication. It shall avail itself of the services of the Government as may be required.
Status note: reproduced with modifications as Section 17 of the TESDA Act.
Article 56 — Rules and Regulations
The Council shall define its broad functions and issue appropriate rules and regulations necessary to implement the provision of this Code.
Status note: superseded by Section 36 of the TESDA Act.
Title II — Training and Employment of Special Workers (Articles 57 to 81)
Chapter I — Apprentices (Articles 57 to 72)
⚠ This entire Chapter was repealed by Section 36 of R.A. No. 12063 (2024). The text below is a record of what the Code said; the governing rules for apprenticeship are now in the EBET framework. Status notes on individual articles describe their history up to the repeal.
Article 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.
Article 58 — Definition of Terms
As used in this Title:
(a) “Apprenticeship” means practical training on the job supplemented by related theoretical instruction.
(b) 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.
(c) 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.
(d) “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.
Status note — superseded definitions. These have been superseded by paragraphs (j) to (m) of Section 4 of the TESDA Act, which define apprenticeship as training within employment with compulsory related theoretical instruction under a contract on an approved apprenticeable occupation; an apprentice as a person undergoing training for an approved apprenticeable occupation during an established period assured by an apprenticeship agreement; an apprenticeship agreement as the contract setting out each party’s rights, duties and responsibilities; and an apprenticeable occupation as one officially endorsed by a tripartite body and approved for apprenticeship by the Authority.
The three-month line in (c) is the boundary with learnership. More than three months of practical training makes an occupation apprenticeable; three months or less puts it in the learner rules at Article 73.
Glossary: Apprentice → · Internship →
Article 59 — Qualifications of Apprentice
To qualify as an apprentice, a person shall:
(a) Be at least fourteen (14) years of age;
(b) Possess vocational aptitude and capacity for appropriate tests; and
(c) 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.
⚠ The age in (a) is out of date and must not be relied on. Section 12 of R.A. No. 7610, the Special Protection of Children Against Abuse, Exploitation and Discrimination Act, as amended by Section 2 of R.A. No. 9231, provides that except in exceptional cases, children below fifteen (15) years of age shall not be employed. The Code still prints “fourteen”; the operative minimum age is fifteen, subject to the narrow exceptions and conditions in that Act.
Related guide: child labour law and RA 9231 →
Article 60 — Employment of Apprentices
Only employers in the highly technical industries may employ apprentices and only in apprenticeable occupations approved by the Minister of Labor and Employment.
Status note: as amended by Section 1 of E.O. No. 111 (1986). Two limits worth noticing: apprenticeship is confined to highly technical industries, and only in occupations approved as apprenticeable. An arrangement labelled “apprenticeship” outside those bounds is not one.
Article 61 — Contents of Apprenticeship Agreements
Apprenticeship agreements, including wage rates of apprentices, shall conform to the rules issued by the Minister 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 per cent of the applicable minimum wage, may be entered into only in accordance with apprenticeship programs duly approved by the Minister of Labor and Employment. The Ministry shall develop standard model programs of apprenticeship.
Status note: as amended by Section 1 of E.O. No. 111 (1986). This was the article behind the “75% training rate” — and it is repealed. While it stood, three conditions travelled together and all had to hold: the period could not exceed six months; the rate could not start below 75% of the applicable minimum wage; and a sub-minimum rate was lawful only under a duly approved apprenticeship programme. The 75% floor did not disappear with the repeal — it moved. Under R.A. No. 12063 an apprenticeship training allowance must not be lower than 75% of the applicable minimum wage rate, with annual increases for programmes running longer than a year. The six-month cap and the “duly approved programme” condition in this Article are no longer the operative terms; the EBET rules and TESDA registration are.
Glossary: Minimum wage → · Paid below minimum wage: what to do →
Article 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 or, 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.
Article 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:
(a) Apprenticeship conducted entirely by and within the sponsoring firm, establishment or entity;
(b) Apprenticeship entirely within a Department of Labor and Employment training center or other public training institution; or
(c) 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.
Article 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:
(a) In the premises of the sponsoring employer in the case of individual apprenticeship programs;
(b) 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
(c) In a Department of Labor and Employment training center or other public training institution.
Article 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.
Article 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.
Five days. This is one of the shortest appeal periods in the Code — shorter than the ten calendar days for an NLRC appeal under Article 229.
Article 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.
Article 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.
Article 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.
Article 70 — Voluntary Organization of Apprenticeship Programs; Exemptions
(a) The organization of apprenticeship program shall be primarily a voluntary undertaking by employers;
(b) 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
(c) Where services of foreign technicians are utilized by private companies in apprenticeable trades, said companies are required to set up appropriate apprenticeship programs.
Paragraph (c) connects to the pre-employment rules in Book One: a company bringing in foreign technicians must also build an apprenticeship programme, so the skill is transferred locally.
Article 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.
The last proviso is the trade-off. An employer may pay apprentices 75% under Article 61, or claim the training-cost deduction here — but the deduction is available only to an employer paying its apprentices the full minimum wage.
Article 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.
Status note: unpaid training is lawful only where the on-the-job training is required by the curriculum or as a requisite for graduation or a board examination, and only with the Secretary’s authorization. DOLE’s edition adds that where a student causes injury to a third person in the course of a task done on behalf of the school, the school can be held liable for damages under Article 2180 of the Civil Code.
Chapter II — Learners (Articles 73 to 77)
⚠ This entire Chapter was repealed by Section 36 of R.A. No. 12063 (2024), together with Chapter I. Learnership as the Code defined it no longer exists as a separate statutory arrangement; enterprise-based training now runs under the EBET framework.
Note on other training programmes. DOLE’s 2022 edition pointed to two statutes outside the Code that also governed training arrangements: R.A. No. 7686, the Dual Training System Act of 1994 — also repealed by R.A. No. 12063 — and R.A. No. 7323, the Special Program for Employment of Students, as amended by R.A. No. 10917 (2016), which was not repealed and still operates.
Article 73 — Learners Defined
Learners are persons hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable and which may be learned through practical training on the job in a relatively short period of time which shall not exceed three (3) months.
Status note: superseded by paragraph (n) of Section 4 of the TESDA Act, which defines learners the same way but adds that learnership programmes must be approved by the Authority.
Article 74 — When Learners May Be Hired
Learners may be employed when no experienced workers are available, the employment of learners is necessary to prevent curtailment of employment opportunities, and the employment does not create unfair competition in terms of labor costs or impair or lower working standards.
Three conditions, all of them required. Learnership is not a general hiring channel: no experienced workers available, necessity to prevent curtailment of employment opportunities, and no unfair competition in labour costs or lowering of working standards.
Article 75 — Learnership Agreement
Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include:
(a) The names and addresses of the learners;
(b) The duration of the learnership period, which shall not exceed three (3) months;
(c) The wages or salary rates of the learners which shall begin at not less than seventy-five percent (75%) of the applicable minimum wage; and
(d) A commitment to employ the learners if they so desire, as regular employees upon completion of the learnership. All learners who have been allowed or suffered to work during the first two (2) months shall be deemed regular employees if training is terminated by the employer before the end of the stipulated period through no fault of the learners.
The learnership agreement shall be subject to inspection by the Secretary of Labor and Employment or his duly authorized representative.
Paragraph (d) was the provision learners most needed to know, and the idea behind it survived the repeal. Under this Article, a learner allowed or suffered to work during the first two months became a regular employee if the employer ended the training early through no fault of the learner. R.A. No. 12063 carries a comparable protection in different form: an EBET trainee becomes a regular employee where the enterprise trains the same person twice consecutively, hires them before the programme is completed, or exceeds the statutory cap on trainees in its workforce. Read either with Article 295 on regular employment.
Glossary: Regular employment → · Probationary employment →
Article 76 — Learners in Piecework
Learners employed in piece or incentive-rate jobs during the training period shall be paid in full for the work done.
No 75% discount on piece rates. Where a learner is on piece or incentive rates, the work done is paid in full.
Article 77 — Penalty Clause
Any violation of this Chapter or its implementing rules and regulations shall be subject to the general penalty clause provided for in this Code.
The general penalty clause is Article 303 in Book Seven.
Chapter III — Handicapped Workers
A note on this Chapter and its language. The Code’s own heading and text use “handicapped workers”, and they are reproduced here unchanged because that is what the statute says. Current Philippine law uses “persons with disability”, and DOLE’s edition records that R.A. No. 7277 (1992), the Magna Carta for Disabled Persons, as amended by R.A. No. 9442, has affected certain provisions of this Chapter. Read every article below with that Act, not on its own.
Article 78 — Definition
Handicapped workers are those whose earning capacity is impaired by age or physical or mental deficiency or injury.
Status note: Section 4(a) of R.A. No. 7277 defines “disabled persons” as those suffering from restriction of different abilities, as a result of a mental, physical or sensory impairment, to perform an activity in the manner or within the range considered normal for a human being. Note that the Code’s Article 78 is broader in one respect — it includes impairment of earning capacity by age or injury — and narrower in that it is framed entirely around earning capacity.
Article 79 — When Employable
Handicapped workers may be employed when their employment is necessary to prevent curtailment of employment opportunities and when it does not create unfair competition in labor costs or impair or lower working standards.
⚠ This framing has been overtaken. Section 5 of R.A. No. 7277 provides that no disabled person shall be denied access to opportunities for suitable employment, and that a qualified disabled employee shall be subject to the same terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied person. It further reserves five percent (5%) of all casual, emergency and contractual positions in the Departments of Social Welfare and Development, Health, and Education, Culture and Sports, and in other government agencies, offices or corporations engaged in social development, for disabled persons. Article 79 treats employment as something permitted in limited circumstances; R.A. No. 7277 treats it as a right of access.
Article 80 — Employment Agreement
Any employer who employs handicapped workers shall enter into an employment agreement with them, which agreement shall include:
1. The names and addresses of the handicapped workers to be employed;
2. The rate to be paid the handicapped workers which shall not be less than seventy five (75%) percent of the applicable legal minimum wage;
3. The duration of employment period; and
4. The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by the Secretary of Labor or his duly authorized representative.
⚠ The 75% rate in paragraph 2 cannot be read on its own. Section 5 of R.A. No. 7277 entitles a qualified disabled employee to the same compensation as a qualified able-bodied person doing the same work. The sub-minimum rate contemplated here cannot be applied to a worker who is qualified for the job and performing it on the same terms as anyone else.
Article 81 — Eligibility for Apprenticeship
Subject to the appropriate provisions of this Code, handicapped workers may be hired as apprentices or learners if their handicap is not such as to effectively impede the performance of job operations in the particular occupations for which they are hired.
Status note — superseded. DOLE records that this Article is superseded by Section 7 of R.A. No. 7277, which provides that disabled persons shall be eligible as apprentices or learners provided their handicap is not such as to effectively impede the performance of job operations in the particular occupation for which they are hired, and provided further that after the lapse of the period of apprenticeship, if found satisfactory in job performance, they shall be eligible for employment. That last clause — the right to employment on satisfactory performance — has no counterpart in Article 81.
Amendment and Status Table
| Provision | Status | Note |
|---|---|---|
| Articles 43–81 | Not renumbered | Book Two kept its original article numbers |
| Title II, Chapters I and II — Articles 57–77 | Repealed | Sec. 36, R.A. No. 12063 (7 November 2024), the EBET Framework Act — which also repealed R.A. No. 7686 |
| Title I — Articles 43–56 | Impliedly inoperative | Substantively modified and superseded by R.A. No. 7796, the TESDA Act of 1994 |
| Art. 45 — National Manpower and Youth Council | Repealed | Secs. 5 and 7, TESDA Act; the NMYC was replaced by TESDA |
| Art. 51 — Bureau of Employment Services | Body replaced | Bureau of Local Employment, Sec. 3, E.O. No. 797 |
| Art. 58 — Definitions | Superseded | Sec. 4(j)–(m), TESDA Act |
| Art. 59(a) — “fourteen (14) years of age” | Superseded | Minimum age is 15: Sec. 12, R.A. No. 7610, as amended by Sec. 2, R.A. No. 9231 |
| Arts. 60 and 61 | Amended | Sec. 1, E.O. No. 111 (1986) |
| Art. 73 — Learners defined | Superseded | Sec. 4(n), TESDA Act — learnership programmes need TESDA approval |
| Chapter III — Articles 78–81 | Affected throughout | R.A. No. 7277 (1992), Magna Carta for Disabled Persons, as amended by R.A. No. 9442 |
| Art. 79 — When employable | Overtaken | Sec. 5, R.A. No. 7277 — equal opportunity, equal compensation for a qualified disabled employee |
| Art. 81 — Eligibility for apprenticeship | Superseded | Sec. 7, R.A. No. 7277 — adds eligibility for employment on satisfactory performance |
Guides Covering These Articles
- Training arrangements: Apprentice · Internship
- Pay: Minimum wage · Statutory minimum wage · Paid below minimum wage: what to do
- Becoming regular: Article 295 and regular employment · Regular employment · Probationary employment
- Young workers: Child labour law and RA 9231
- Neighbouring Books: Book One — Pre-Employment · Book Three — Conditions of Employment
Continue Reading the Code
← Previous: Book One — Pre-Employment (Articles 12–42)
Next → Book Three — Conditions of Employment (Articles 82–161)
Sources
- Department of Labor and Employment, Labor Code of the Philippines, as Amended and Renumbered (2022 edition), Book Two, pages 17–26, including DOLE’s footnotes recording the TESDA Act correspondence, the repeal of Article 45, the superseding provisions of R.A. No. 7277, and the minimum-age correction. Published by DOLE at dole.gov.ph; the same edition is mirrored as a PDF by the International Labour Organization. Accessed 1 September 2026.
- Presidential Decree No. 442, as amended — lawphil.net
- Republic Act No. 12063 (2024), the Enterprise-Based Education and Training Framework Act, approved 7 November 2024 — Section 36 repeals Book Two, Title II, Chapters 1 and 2 of P.D. No. 442 and R.A. No. 7686. Text consulted at lawphil.net; also published by the Supreme Court E-Library. Consulted 1 September 2026. Note: this Act post-dates the 2022 DOLE edition, which therefore does not record the repeal.
- Republic Act No. 7796 (1994), the TESDA Act; Republic Act No. 7277 (1992), Magna Carta for Disabled Persons, as amended by Republic Act No. 9442; Republic Act No. 7610 as amended by Republic Act No. 9231; Republic Act No. 7686 (Dual Training System Act of 1994); Republic Act No. 7323 as amended by Republic Act No. 10917 (2016)
- Executive Order No. 111 (1986); Executive Order No. 797; Civil Code of the Philippines, Article 2180
Sources rechecked as of: September 1, 2026
Last materially reviewed: September 1, 2026
Educational content, not legal advice. This page reproduces statutory text, most of which no longer states the governing rule: an entire Title that DOLE’s own edition describes as impliedly inoperative, two chapters expressly repealed in 2024, and provisions whose age limits and wage rates have been overtaken by later statutes. Each is marked. It is not legal advice and does not create a lawyer-client relationship. Do not rely on Articles 57 to 77 as current law — for any live apprenticeship, learnership or on-the-job training arrangement, the governing instrument is R.A. No. 12063 and its implementing rules, administered by TESDA. LaborCode.ph is independent and is not a government website, tribunal, or law firm. For advice on an actual arrangement, consult a Philippine labor lawyer, DOLE, or TESDA.