Enterprise-Based Education and Training (EBET) Framework Act

Senate Bill (SB) 2491 or the National Apprenticeship Program Act of 2023 has been considered in the consolidated bill, SB 2587 or the Enterprise-Based Education and Training (EBET) Framework Act. The House and the Senate shall soon concur on the passing of the measure into a law. SB 2587 has recently been passed into third reading last August 12, 2024 and has been received by the House on August 14, 2024.

In the House, the counterpart bill HB 7400 titled “Enterprise-Based Education and Training (EBET) Program Act” has been passed in third reading last March 21, 2023, and was sent to the Senate the following day. On March 5, 2024, HB 7400 has been considered under SB 2587 by the Senate. Although SB 2587 and HB 7400 are generally similar, there are certain nuances between the two bills that are yet to be reconciled as the House and the Senate concur on the final version of the bill.

For instance, HB 7400 specifies in its objectives that the EBET program will specifically be for “middle-level manpower,” or “those who have acquired practical skills and knowledge through formal or non-formal education and training equivalent to at least a secondary education but preferably at post-secondary education with a corresponding degree of diploma, or skilled workers who have become highly competent in their trade or craft as attested by the industry.” However, in SB 2587, there is no single mention of the EBET program as only for “middle-level manpower.”

Second, the two bills are also different in their definition of “apprenticeship.” SB 2587 has a more specific meaning for apprenticeship, which “refers to an EBET Program that covers higher levels of competencies covered by National Certificates (NC) 3 and above and shall be for trainees that are at least 18 years old.” In contrast, HB 7400 has a broader definition of apprenticeship, which “refers to a training and employment program involving a contract between an apprentice and an employer on an approved apprenticeable occupation and generally aims to provide a mechanism that will ensure availability of qualified skilled workers based on industry requirements.”

Both bills are, however, similar in many provisions, for instance, both aim to rationalize the different forms of industry-based training arrangements (e.g., apprenticeship, learnership, dual training, etc.), both bills note that enterprises who will register as a provider of an EBET program can enjoy certain tax exemptions; and there will also be training allowance provided for apprentices. Finally, among other similarities, the two versions of the bill have the provision where the President can require apprenticeship under the pretense of national security or economic development demands.

The measures related to apprenticeship continue to record developments that suggest that the measure’s passage into law remains viable under the Marcos Jr. administration. This is particularly important as SB 2587 is seen to address the issue not only of unemployment, but more so, underemployment in the country. In recent data, the Philippine Statistics Authority reported that underemployment stood at 12.1 percent in June 2024, compared to 9.9 percent in May 2024. Senator Joel Villanueva, as he urged the passing of the bill, said that “This bill, a priority measure of the administration, aims to boost the skills workforce through general EBET training, apprenticeship and upskilling, which duration shall vary depending on the complexity of the skills and competencies to be learned by a trainee.”