III. HUMAN RESOURCE DEVELOPMENT A. Policies, Objectives and Concepts 1) CONSTITUTION Art. II, Section 17.

The State shall give priority to education, science and technology, arts, culture, and sports to foster patriotism and nationalism, accelerate social progress, and promote total human liberation and development. Art. XII, Section 12. The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive. Art. XII, Section 14. The sustained development of a reservoir of national talents consisting of Filipino scientists, entrepreneurs, professionals, managers, high-level technical manpower and skilled workers and craftsmen in all fields shall be promoted by the State. The State shall encourage appropriate technology and regulate its transfer for the national benefit. The practice of all professions in the Philippines shall be limited to Filipino citizens, save in cases prescribed by law. Art. XIII, Section 3 (par. 1). The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. xxx Art. XIV, Section 1. The State shall protect and promote the right of all citizens to quality education at all levels, and shall take appropriate steps to make such education accessible to all. Art. XIV, Section 2. The State shall: 1. Establish, maintain, and support a complete, adequate, and integrated system of education relevant to the needs of the people and society; 2. Establish and maintain, a system of free public education in the elementary and high school levels. Without limiting the natural rights of parents to rear their children, elementary education is compulsory for all children of school age; 3. Establish and maintain a system of scholarship grants, student loan programs, subsidies, and other incentives which shall be available to deserving students in both public and private schools, especially to the under-privileged; 4. Encourage non-formal, informal, and indigenous learning systems, as well as self-learning, independent, and out-of-school study programs particularly those that respond to community needs; and 5. Provide adult citizens, the disabled, and out-of-school youth with training in civics, vocational efficiency, and other skills. Art. XIV, Section 4(1). The State recognizes the complementary roles of public and private institutions in the educational system and shall exercise reasonable supervision and regulation of all educational institutions. LABOR CODE Art. 3. Declaration of basic policy. The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work. Art. 12. Statement of objectives. It is the policy of the State: a. To promote and maintain a state of full employment through improved manpower training, allocation and utilization; xxx 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. 2) RA 7796 (1994): RULES AND REGULATIONS IMPLEMENTING THE TESDA ACT OF 1994 Sec. 2. Declaration of Policy. It is hereby declared the policy of the State to provide relevant, accessible, high quality and efficient technical education and skills development in support of the development of high quality Filipino middle-level manpower responsive to and in accordance with Philippine development goals and priorities. The State shall encourage active participation of various concerned sectors, particularly private enterprises, being direct participants in and immediate beneficiaries of a trained and skilled work force, in providing technical education and skills development opportunities. Sec. 3. Statement of Goals and Objectives. It is the goal and objective of this Act to:

a) Promote and strengthen the quality of technical education and skills development programs to attain international competitiveness. b) Focus technical education and skills development on meeting the changing demands for quality middle-level manpower; c) Encourage critical and creative thinking by disseminating the scientific and technical knowledge base of middle-level manpower development programs; d) Recognize and encourage the complementary roles of public and private institutions in technical education and skills development and training systems; and e) Inculcate desirable values through the development of moral character with emphasis on work ethic, self-discipline, self-reliance and nationalism. Sec. 8. Powers and Functions of the Board. The Authority shall primarily be responsible for formulating, continuing, coordinated and fully integrated technical education and skills development policies, plans and programs taking into consideration the following: a) the State policy declared herein of giving new direction and thrusts to efforts in developing the quality of Filipino human resource through technical education and skills development; b) the implementation of the above-mentioned policy requires the coordination and cooperation of policies, plans, and programs of different concerned sectors of Philippine society; c) equal participation of representatives of industry groups, trade associations, employers, workers and government shall be made the rule in order to ensure that urgent needs and recommendations are readily addressed; and d) improved linkages between industry, labor and government shall be given priority in the formulation of any national-level plan. 3) GOVERNANCE, ORGANIZATION AND OPERATION OF TESDA: SECTION 5. Technical Education and Skills Development Authority; Creation. To implement the policy declared in this Act, there is hereby created a Technical Education and Skills Development Authority (TESDA), hereinafter referred to as the Authority, which shall replace and absorb the National Manpower and Youth Council(NMYC), the Bureau of Technical and Vocational Education (BTVE) and the personnel and functions pertaining to technical-vocational education in the regional offices of the Department of Education, Culture and Sports (DECS) and the apprenticeship program of the Bureau of Local Employment of the Department of Labor and Employment. SECTION 6. Composition of the Authority. The Authority shall be composed of the TESDA Board and TESDA Secretariat. SECTION 7. Composition of the TESDA Board. The TESDA Board shall be composed of the following: The Secretary of Labor and Employment Chairperson Secretary of Education, Culture and Sports - Co-Chairperson Secretary of Trade and Industry - Co-Chairperson Secretary of Agriculture - Member Secretary of Interior and Local Government - Member Director-General of the TESDA Secretariat - Member In addition, the President of the Philippines shall appoint the following members from the private sector: two (2) representatives, from the employer/industry organization, one of whom shall be a woman; three (3) representatives, from the labor sector, one of whom shall be a woman; and two (2) representatives of the national associations of private technical-vocational education and training institutions, one of whom shall be a woman. As soon as all the members of the private sector are appointed, they shall so organize themselves that the term of office of one-third (1/3) of their number shall expire every year. The member from the private sector appointed thereafter to fill vacancies caused by expiration of terms shall hold office for three (3) years.

The President of the Philippines may, however, revise the membership of the TESDA Board, whenever the President deems it necessary for the effective performance of the Boards functions through an administrative order. The TESDA Board shall meet at least twice a year, or as frequently as may be deemed necessary by its Chairperson. In the absence of the Chairperson, a Co-Chairperson shall preside. In case any member of the Board representing the Government cannot attend the meeting, he or she shall be regularly represented by an undersecretary or deputy-director general, as the case may be, to be designated by such member for the purpose. The benefits, privileges and emoluments of the Board shall be consistent with existing laws and rules. SECTION 8. Powers and Functions of the Board. supra SECTION 9. Power to Review and Recommend Action. The Authority shall review and recommend action to concerned authorities on proposed technical assistance programs and grants-inaid for technical education or skills development, or both, including those which may be entered into between the Government of the Philippines and other nations, including international and foreign organizations, both here and abroad. SECTION 10. The TESDA Secretariat. There is hereby created a Technical Education and Skills Development Authority Secretariat which shall have the following functions and responsibilities: a) to establish and maintain a planning process and formulate a national technical education and skills development plan in which the member-agencies and other concerned entities of the Authority at various levels participate; b) to provide analytical inputs to policy decision-making of the Authority on allocation of resources and institutional roles and responsibilities as shall be embodied in annual agencies technical education and skills development plans, in accordance with the manpower plan for middle-level skilled workers as approved by the Authority; c) to recommend measures, and implement the same upon approval by the Authority, for the effective and efficient implementation of the national technical education and skills development plan; d) to propose to the Authority the specific allocation of resources for the programs and projects it shall undertake pursuant to approved national technical education and skills development plan; e) to submit to the Authority periodic reports on the progress and accomplishment of work programs of implementation of plans and policies for technical educational and skills development; f) to prepare for approval by the Authority an annual report to the President on technical education and skills development; g) to implement and administer the apprenticeship program as provided for in Section 18 of this Act; h) to prepare and implement upon approval by the Authority a program for the training of trainers, supervisors, planners and managers as provided for in Section 23 of this Act; i) to enter into agreement to implement approved plans and programs and perform activities as shall implement the declared policy of this Act; and j) to perform such other functions and duties as may be assigned by the Board. SECTION 11. Director-General. The TESDA Secretariat shall be headed by a Director-General, who shall likewise be a member of the TESDA Board. The Director-General shall be appointed by the President of the Philippines and shall enjoy the benefits, privileges ad emoluments equivalent to the rank of Undersecretary.

As Chief Executive Officer of the TESDA Secretariat, the Director General shall exercise general supervision and control over its technical and administrative personnel. SECTION 12. Deputy Director-General. The Director-General shall be assisted by two (2) Deputy Directors-General to be appointed by the President of the Philippines on recommendation of the TESDA Board. One to be responsible for Vocational and Technical Education and Training and one to be responsible for Policies and Planning. The Deputy Directors-General shall enjoy the benefits, privileges and emoluments equivalent to the rank of Assistant Secretary. SECTION 13. Chief of Services for Administration. The Director-General shall also be assisted by a Chief of Services for Administration who shall be a Career Civil Service Official to be appointed by the TESDA Board. SECTION 14. Structural Organization and Personnel. The TESDA Secretariat, in addition to the offices of the Director-General, Deputy Director-General and Chief of Services for Administration shall be composed of the following offices to be headed by an Executive Director to be appointed by the Director-General and shall have the rank and emoluments of Director IV. a. Planning Office (PO) The Planning Office shall be under the Office of the Deputy DirectorGeneral and shall have the following functions: 1) to design and establish planning processes and methodologies which will particularly enhance the efficiency of resource allocation decisions within the technical education and skills development sector; 2) to lead in the preparation and periodic updating of a national plan for technical education and skills development which shall become the basis for resource allocation decisions within the sector; 3) to conduct researches, studies and develop information systems for effective and efficient planning and policy-making within the sector; 4) to develop and implement programs and projects aimed at building up planning capabilities of various institutions within the sector; and 5) to perform such other powers and functions as may be authorized by the Authority. b) Skills Standards and Certification Office (SSCO). The Skills Standards and Certification Office shall be under the office of the Deputy Director-General and shall have the following functions: 1) to develop and establish a national system of skills standardization, testing and certification in the country; 2) to design, innovate and adopt processes and methodologies whereby industry groups and workers guilds take note on progressively the responsibility of setting skills standards for identified occupational areas, and the local government units actively participate in promoting skills standards, testing and certification; 3) to establish and implement a system of accrediting private enterprises, workers associations and guilds and public institutions to serve as skills testing venues; 4) to conduct research and development on various occupational areas in order to recommend policies, rules and regulations for effective and efficient skills and standardization, testing and certification system in the country; and 5) to perform such other duties and functions as may be authorized. c) National Institute for Technical Vocational and Education Training (NITVET). The National Institute for Technical Vocational and Education Training to be under the office of the Deputy Director-General and shall have the following functions: 1) to serve as the research and development arm of the government in the field of technicalvocational education and training; 2) to develop curricula and program standards for various technical-vocational education and training areas; 3) to develop and implement an integrated program for continuing development of trainors, teachers and instructors within the technical education and skills development sector; 4) to develop programs and projects which will build up institutional capabilities within the sector; and 5) to perform such other powers and functions as may be authorized.

d) Office of Formal Technical Vocational Education and Training (OFFVET). The Office of Formal Technical Vocational Education and Training to be under the office of the Deputy Director-General and shall have the following functions: 1) to provide policies, measures and guidelines for effective and efficient administration of formal technical-vocational education and training programs implementing by various institutions in the country; 2) to establish and maintain a system for accrediting, coordinating integrating, monitoring and evaluating the different formal technicalvocational education and training program vis-avis the approved national technical education and skills development plan; 3) to establish and maintain a network of institutions engaged in institutionalized technicalvocational education and training, particularly with local government units; and 4) to perform such other duties and functions as may be authorized. e) Office of the Non-Formal Technical-Vocational Education and Training (ONFTVET). The Office of the Non-Formal TechnicalVocational Education and Training to be under the Office of the Deputy Director-General and shall have the following functions: 1) to provide direction, policies and guidelines for effective implementation of non-formal, community-based technicalvocational education and training; 2) to accredit, coordinate, monitor and evaluate various nonformal technical-vocational education and training programs implemented by various institutions particularly, by local government units; 3) to establish and maintain a network of institutions including local government units, nongovernment organizations implementing non-formal, community-based technical-vocational education and training; 4) to perform such other powers and functions as may be authorized. f) Office of Apprenticeship (OA). The Office of Apprenticeship shall be under the Office of the Deputy Director-General and shall have the following functions: 1) to provide direction, policies and guidelines on the implementation of the Apprenticeship system; 2) to accredit, coordinate, monitor and evaluate all apprenticeship schemes and program implemented by various institutions and enterprises; 3) to establish a network of institutions and enterprises conducting apprenticeship schemes and programs; 4) to perform such other powers and functions as may be authorized. g) Regional TESDA Offices. The Regional TESDA Offices shall be headed by Regional Directors with the rank and emoluments of Director IV to be appointed by the President. The Regional TESDA Offices shall be under the direct control of the Director-General and shall have the following functions: 1) to serve as Secretariat to Regional Technical Education Skills Development (TESDA) Committees; 2) to provide effective supervision, coordination and integration of technical education and skills development programs, projects and related activities in their respective jurisdiction; 3) to develop and recommend TESDA programs for regional and local-level implementation within the policies set by the Authority; 4) to perform such other duties and functions as may be deemed necessary. SECTION 15. The Provincial TESDA Offices. The Provincial Offices shall be headed by Skill Development Officers who shall have the rank and emoluments of a Director III. The Provincial TESDA Offices shall be under the direct control of the Director-General and shall have the following functions: 5) to serve as Secretariat to Provincial TESDA Committees; 6) to provide technical assistance particularly to local government units for effective supervision, coordination, integration and monitoring of technical-vocational education and training programs within their localities; 7) to review and recommend TESDA programs for implementation within their localities; and

8) to perform such other duties and functions as may be authorized. Furthermore, the TESDA Secretariat may be further composed by such offices as may be deemed necessary by the Authority. The Director-General shall appoint such personnel necessary to carry out the objectives, policies and functions of the Authority subject to Civil Service laws, rules and regulations. SECTION 16. Compliance with the Salaries Standardization Law. The compensation and emoluments of the officials and employees of the Authority shall be in accordance with the salary standardization law and other applicable laws under the national compensation and classification plan. SECTION 17. Consultants and Technical Assistance, Publication and Research. In pursuing its objectives, the Authority is hereby authorized to set aside a portion of its appropriation for the hiring of services of qualified consultants, and private organizations for research work and publication in the field of technical education and skills development. It shall avail itself of the services of other agencies of the Government as may be required. SECTION 18. Transfer of the Apprenticeship Program. The Apprenticeship Program of the Bureau of Local Employment of the Department of Labor and Employment shall be transferred to the Authority which shall implement and administer said program in accordance with existing laws, rules and regulations. SECTION 19. Technical Education and Skills Development Committees. The Authority shall establish Technical Education and Skills Development Committees at the regional and local levels to coordinate and monitor the delivery of all skills development activities by the public and private sectors. These committees shall likewise serve as the Technical Education and Skills Development Committees of the Regional and local development councils. The composition of the Technical Education and Skills Development Committees shall be determined by the Director-General subject to the guidelines to be promulgated by the Authority. SECTION 20. Skills Development Centers. The Authority shall strengthen the network of national, regional and local skills training centers for the purpose of promoting skills development. This network shall include skills training centers in vocational and technical schools, technical institutes, polytechnic colleges, and all other duly accredited public and private dual system educational institutions. The technical education and skills development centers shall be administered and operated under such rules and regulations as may be established by the Authority in accordance with the National Technical Education and Skills Development Plan. SECTION 21. Formulation of a Comprehensive Development Plan for Middle-Level Manpower. The Authority shall formulate a comprehensive development plan for middle-level manpower based on a national employment plan or policies for the optimum allocation, development and utilization of skilled workers for employment entrepreneurship and technology development for economic and social growth. This plan shall, after adoption by the Authority, be updated periodically and submitted to the President of the Philippines for approval. Thereafter, it shall be the plan for technical education and skills development for the entire country within the framework of the National Development Plan. The Authority shall direct the TESDA Secretariat to call on its member agencies, the private sector and the academe to assist in this effort. The comprehensive plan shall provide for reformed industry-based training program including apprenticeship, dual training system and other similar schemes intended to: a) promote maximum protection and welfare of the worker/trainee; b) improve the quality and relevance and social accountability of technical education and skills development; c) accelerate the employment-generation efforts of the government; and d) expand the range of opportunities for upward social mobility of the school-going population beyond the traditional higher levels of formal education. All government and non-government agencies receiving financial and technical assistance from the government shall be required to formulate their respective annual agency technical education and skills development plan in line with the national technical education and skills development plan. The budget

to support such plans shall be subject to review and endorsement by the Authority to the Department of Budget and Management. The Authority shall evaluate the efficiency and effectiveness of agencies skills development program and schemes to make them conform with the quantitative and qualitative objectives of the national technical education and skills development plan. SECTION 22. Establishment and Administration of National Trade Skills Standards. There shall be national occupational skills standards to be established by TESDA-accredited industry committees. The Authority shall develop and implement a certification and accreditation program in which private industry groups and trade associations are accredited to conduct approved trade tests, and the local government units to promote such trade testing activities in their respective areas in accordance with the guidelines to be set by the Authority. The Secretary of Labor and Employment shall determine the occupational trades for mandatory certification. All certificates relating to the national trade skills testing and certification system shall be issued by the Authority through the TESDA Secretariat. SECTION 23. Administration of Training Programs. The Authority shall design and administer training programs and schemes that will develop the capabilities of public and private institutions to provide quality and cost-effective technical educational and skills development and related opportunities. Such training programs and schemes shall include teachers trainors training, skills training for entrepreneur development and technology development, cost effective training in occupational trades and related fields of employment, and value development as an integral component of all skills training programs. SECTION 24. Assistance to Employers and Organizations. The Authority shall assist any employer or organization engaged in skills training schemes designed to attain its objectives under rules and regulations which the Authority shall establish for this purpose. SECTION 25. Coordination of All Skills Training Schemes. In order to integrate the national skills development efforts, all technical education and skills training schemes as provided for in this Act shall be coordinated with the Authority particularly those having to do with the setting of trade skills standards. For this purpose, existing technical education and skills training programs in the Government and in the private sector, specifically those wholly or partly financed with government funds, shall be reported to the Authority which shall assess and evaluate such programs to ensure their efficiency and effectiveness. SECTION 26. Industry Boards. The Authority shall establish effective and efficient institutional arrangements with industry boards and such other bodies or associations to provide direct participation of employers and workers in the design and implementation of skills development schemes, trade skills standardization and certification and such other functions in the fulfillment of the Authoritys objectives. SECTION 27. Incentives Schemes. The Authority shall develop and administer appropriate incentives schemes to encourage government and private industries and institutions to provide highquality technical education and skills development opportunities. SECTION 28. Skills Development Opportunities. The Authority shall design and implement an effective and efficient delivery system for quality technical education and skills development opportunities particularly in disadvantaged sectors, with new tools of wealth creation and with the capability to take on higher value-added gainful activities and to share equitably in productivity gains. SECTION 29. Devolution of TESDAs Training Function to Local Governments. In establishing the delivery system provided for in the preceding Section, the Authority shall formulate, implement and finance a specific plan to develop the capability of local government units to assume ultimately the responsibility for effectively providing community-based technical education and skills development opportunities: Provided, however, That there shall be formulated and implemented, an effective and timely retraining of TESDA personnel that would be affected by the devolution to ensure their being retained if the concerned local government units would not be able to absorb them.

Sec. 30. Skills Olympics. To promote quality skills development in the country and with the view of participating in international skills competitions, the Authority, with the active participation of private industries, shall organize and conduct annual National Skills Olympics. The Authority, through the TESDA Secretariat, shall promulgate the necessary rules and guidelines for the effective and efficient conduct of Annual National Skills Olympics and for the countrys participation in international skills Olympics. Sec. 31. The TESDA Development Fund. A TESDA Development Fund is hereby established, to be managed/administered by the Authority, the income from which shall be utilized exclusively in awarding of grants and providing assistance to training institutions, industries, local government units for upgrading their capabilities and to develop and implement training and training-related activities. The contribution to the fund shall be the following: e) a one-time lump sum appropriation from the National Government; f) an annual contribution from the Overseas Workers Welfare Administration Fund, the amount of which should be part of the study on financing in conjunction with letter (D) of Section 34; g) donations, grants, endowments, and other bequests or gifts, and h) any other income generated by the Authority. The TESDA Board shall be the administrator of the fund, and as such, shall formulate the necessary implementing guidelines for the management of the fund, subject to the following: a) unless otherwise stipulated by the private donor, only earnings of private contributions shall be used; and b) no part of the seed capital of the fund, including earnings, thereof, shall be used to underwrite expenses for administration. The Board shall appoint a reputable government-accredited investment institution as fund manager, subject to guidelines promulgated by the Board. Sec. 32. Scholarship Grants. The Authority shall adopt a system of allocation and funding of scholarship grants which shall be responsive to the technical education and skills development needs of the different regions in the country. 4) CONCEPTS AND DEFINITIONS: SECTION 4. Definition of Terms. As used in this Act: a) Skill shall mean the acquired and practiced ability to carry out a task or job; b) Skills Development shall mean the process through which learners and workers are systematically provided with learning opportunities to acquire or upgrade, or both, their ability, knowledge and behavior pattern required as qualifications for a job or range of jobs in a given occupational area; c) Technical Education shall refer to the education process designed at post-secondary and lower tertiary levels, officially recognized as non-degree programs aimed at preparing technicians, paraprofessionals and other categories of middle-level workers by providing them with a broad range of general education, theoretical, scientific and technological studies, and related job skills training; d) Trade shall mean any group of interrelated jobs or any occupation which is traditionally or officially recognized as craft or artisan in nature requiring specific qualifications that can be acquired through work experience and/or training; e) Middle-Level Manpower refers to those : 1) who have acquired practical skills and knowledge through formal or non-formal education and training equivalent to at least a secondary education but preferably a post-secondary education with a corresponding degree or diploma; or 2) skilled workers who have become highly competent in their trade or craft as attested by industry. f) Private Enterprises refers to an economic system under which property of all kinds can be privately owned and in which individuals, alone or in association with another, can embark on a business activity. This includes industrial, agricultural, or agro-industrial establishments engaged in the production, manufacturing, processing, repacking or assembly of goods including service-oriented enterprises;

g) Trainers shall mean persons who direct the practice of skills towards immediate improvement in some task; h) Trainors/trainers shall mean persons who provide training to trainers aimed at developing the latters capacities for imparting attitudes, knowledge, skills and behavior patterns required for specific jobs, tasks, occupations or group of related occupations; i) Trainees shall mean persons who are participants in a vocational, administrative or technical training program for the purpose of acquiring and developing job-related skills; j) Apprenticeship training within employment with compulsory related theoretical instructions involving a contract between an apprentice and an employer on an approved apprenticeable occupation; k) Apprentice is a person undergoing training for an approved apprenticeable occupation during an established period assured by an apprenticeship agreement; l) Apprenticeship Agreement is a contract wherein a prospective employer binds himself to train the apprentice who in turn accepts the terms of training for a recognized apprenticeable occupation emphasizing the rights, duties and responsibilities of each party; m) Apprenticeable Occupation is an occupation officially endorsed by a tripartite body and approved for apprenticeship by the Authority; n) Learners refer to persons hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable. Learnership programs must be approved by the Authority. o) User-Led or Market-Driven Strategy refers to a strategy which promotes strengthened linkages between educational/training institutions and industry to ensure that appropriate skills and knowledge are provided by the educational system; p) Dual System/Training refers to a delivery of quality technical and vocational education which requires training to be carried out alternatively in two venues: In school and in the production plant. Inschool training provides the trainee the theoretical foundation, basic training, guidance and human formation, while in-plant training develops his skills and proficiency in actual work conditions as it continues to inculcate personal discipline and work values; q) Levy Grant System refers to a legal contribution from participating employers who would be beneficiaries of the program (often as a percentage of the payroll) which is subsequently turned over or rebated to enterprises offering employee training programs. LABOR CODE Art. 44. Definitions. As used in this Title: a. "Manpower" shall mean that portion of the nations population which has actual or potential capability to contribute directly to the production of goods and services. xxx B. Training and Employment of Special Workers 1) APPRENTICES LCP, Art. 58. Definition of Terms. As used in this Title: 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. RA 7794. Sec. 4(k) supra NITTO ENTERPRISES, petitioner,-versus-NATIONAL LABOR RELATIONS COMMISSION and ROBERTO CAPILI, respondents. Facts: Petitioner Nitto Enterprises, a company engaged in the sale of glass and aluminum products, hired Roberto Capili sometime in May 1990 as an apprentice machinist, molder and core maker as evidenced by an apprenticeship agreement 2for a period of six (6) months from May 28, 1990 to November 28, 1990 with a daily wage rate of P66.75 which was 75% of the applicable minimum wage. On August 2, 1990, Roberto Capili who was handling a piece of glass which he was working on, accidentally hit and injured the leg of an office secretary who was treated at a nearby hospital. Further, Capili entered a workshop within the office premises which was not his work station. There, he operated

one of the power press machines without authority and in the process injured his left thumb. The following day he was asked to resign. Three days after, , private respondent formally filed before the NLRC Arbitration Branch, National Capital Region a complaint for illegal dismissal and payment of other monetary benefits. The Labor Arbiter rendered his decision finding the termination of private respondent as valid and dismissing the money claim for lack of merit. On appeal, NLRC issued an order reversing the decision of the Labor Arbiter. The NLRC declared that Capili was a regular employee of Nitto Enterprises and not an apprentice. Consequently, Labor Arbiter issued a Writ of Execution ordering for the reinstatement of Capili and to collect his back wages. Petitioner, Nitto Enterprises filed a case to the Supreme Court. Issue: Whether or not NLRC correctly ruled that Capili is a regular employee and not an apprentice of Nitto Enterprises. . Held: NO. The apprenticeship agreement between petitioner and private respondent was executed on May 28, 1990 allegedly employing the latter as an apprentice in the trade of "care maker/molder. However, the apprenticeship Agreement was filed only on June 7, 1990.Notwithstanding the absence of approval by the Department of Labor and Employment, the apprenticeship agreement was enforced the day it was signed. The act of filing the proposed apprenticeship program with the Department of Labor and Employment is a preliminary step towards its final approval and does not instantaneously give rise to an employer-apprentice relationship 2) LEARNERS Art. 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. RA 7796, Section 4(n) n) Learners refer to persons hired as trainees in semi-skilled and other industrial occupations which are nonapprenticeable. Learnership program must be approved by the Authority. 3) WHEN EMPLOYMENT OF APPRENTICES AND LEARNERS ALLOWED 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. 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. RA 7796, Section 4(m) m) Apprenticeable Occupation is an occupation officially endorsed by a tripartite body and approved for apprenticeship by the Authority. 4) CONDITIONS OF EMPLOYMENT 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. 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.

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Art. 281. Probationary employment. Probationary employment shall not exceed six (6) months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee. Art. 75. Learnership agreement. Any employer desiring to employ learners shall enter into a learnership agreement with them, which agreement shall include: The names and addresses of the learners; The duration of the learnership period, which shall not exceed three (3) months; 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 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. Art. 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. RA 7277, Section 7. Apprenticeship . Subject to the provision of the Labor Code as amended, disabled persons shall be eligible as apprentices or learners; Provided, That their handicap is not much as to effectively impede the performance of job operations in the particular occupation for which they are hired; Provided, further, That after the lapse of the period of apprenticeship if found satisfactory in the job performance, they shall be eligible for employment. 5) ENFORCEMENT 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. C. Training and Employment of Persons with Disabilities 1) RECALL DEFINITION OF SOCIAL JUSTICE Const., Art. XIII, Sec. 3. Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.

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The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. 2) POLICIES RA 7277 Sec. 2. Declaration of Policy The grant of the rights and privileges for disabled persons shall be guided by the following principles: (a) Disabled persons are part of Philippine society, thus the State shall give full support to the improvement of the total well-being of disabled persons and their integration into the mainstream of society. Toward this end, the State shall adopt policies ensuring the rehabilitation, self-development and self-reliance of disabled persons. It shall develop their skills and potentials to enable them to compete favorably for available opportunities. (b) Disabled persons have the same rights as other people to take their proper place in society. They should be able to live freely and as independently as possible. This must be the concern of everyone the family, community and all government and nongovernment organizations. Disabled persons' rights must never be perceived as welfare services by the Government. (c) The rehabilitation of the disabled persons shall be the concern of the Government in order to foster their capacity to attain a more meaningful, productive and satisfying life. To reach out to a greater number of disabled persons, the rehabilitation services and benefits shall be expanded beyond the traditional urban-based centers to community based programs, that will ensure full participation of different sectors as supported by national and local government agencies. (d) The State also recognizes the role of the private sector in promoting the welfare of disabled persons and shall encourage partnership in programs that address their needs and concerns. (e) To facilitate integration of disabled persons into the mainstream of society, the State shall advocate for and encourage respect for disabled persons. The State shall exert all efforts to remove all social, cultural, economic, environmental and attitudinal barriers that are prejudicial to disabled persons. Sec. 5. Equal Opportunity for Employment. No disable person shall be denied access to opportunities for suitable employment. 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. Five percent (5%) of all casual emergency and contractual positions in the Departments of Social Welfare and Development; Health; Education, Culture and Sports; and other government agencies, offices or corporations engaged in social development shall be reserved for disabled persons. Sec. 6. Sheltered Employment If suitable employment for disabled persons cannot be found through open employment as provided in the immediately preceding Section, the State shall endeavor to provide it by means of sheltered employment. In the placement of disabled persons in sheltered employment, it shall accord due regard to the individual qualities, vocational goals and inclinations to ensure a good working atmosphere and efficient production. Sec. 9. Vocational Rehabilitation. Consistent with the principle of equal opportunity for disabled workers and workers in general, the State shall take appropriate vocational rehabilitation measures that shall serve to develop the skills and potentials of disabled persons and enable them to compete favorably for available productive and remunerative employment opportunities in the labor market. The State shall also take measures to ensure the provision of vocational rehabilitation and livelihood services for disabled persons in the rural areas. In addition, it shall promote cooperation and coordination between the government and nongovernmental organizations and other private entities engaged in vocational rehabilitation activities. The Department of Social Welfare and Development shall design and implement training programs that will provide disabled persons with vocational skills to enable them to engage in livelihood activities or obtain gainful employment. The Department of Labor and Employment shall likewise design and conduct training programs geared towards providing disabled persons with skills for livelihood.

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Sec. 32. Discrimination on Employment. No entity, whether public or private, shall discriminate against a qualified disabled person by reason of disability in regard to job application procedures, the hiring, promotion, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment. The following constitute acts of discrimination: (a) Limiting, segregating or classifying a disabled job applicant in such a manner that adversely affects his work opportunities; (b) Using qualification standards, employment tests or other selection criteria that screen out or tend to screen out a disabled person unless such standards, tests or other selection criteria are shown to be jobrelated for the position in question and are consistent with business necessity; (c) Utilizing standards, criteria, or methods of administration that: (1) have the effect of discrimination on the basis of disability; or (2) perpetuate the discrimination of others who are subject to common administrative control. (d) Providing less compensation, such as salary, wage or other forms of remuneration and fringe benefits, to a qualified disabled employee, by reason of his disability, than the amount to which a nondisabled person performing the same work is entitled; (e) Favoring a non-disabled employee over a qualified disabled employee with respect to promotion, training opportunities, study and scholarship grants, solely on account of the latter's disability; (f) Re-assigning or transferring a disabled employee to a job or position he cannot perform by reason of his disability; (g) Dismissing or terminating the services of a disabled employee by reason of his disability unless the employer can prove that he impairs the satisfactory performance of the work involved to the prejudice of the business entity: Provided, however, That the employer first sought to provide reasonable accommodations for disabled persons; (h) Failing to select or administer in the most effective manner employment tests which accurately reflect the skills, aptitude or other factor of the disabled applicant or employee that such tests purports to measure, rather than the impaired sensory, manual or speaking skills of such applicant or employee, if any; and (i) Excluding disabled persons from membership in labor unions or similar organizations. 3) COVERAGE AND DEFINITION RA 7277 Sec. 3. Coverage. This act shall cover all disabled persons and, to the extent herein provided, departments, offices and agencies of the national government or nongovernment organizations involved in the attainment of the objectives of this act. Sec. 4. Definition of terms. For purposes of this act, these terms are defined as follows: (a) disabled persons are those suffering from restriction or 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; (b) impairment is any loss, diminution or aberration of psychological, physiological, or anatomical structure or function; (c) disability shall mean 1) a physical or mental impairment that substantially limits one or more psychological, physiological or anatomical function of an individual or activities of such individual; 2) a record of such an impairment; or 3) being regarded as having such an impairment; (d) handicap refers to a disadvantage for a given individual, resulting from an impairment or a disability, that limits or prevents the function or activity, that is considered normal given the age and sex of the individual;

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(e) rehabilitation is an integrated approach to physical, social, cultural, spiritual, educational and vocational measures that create conditions for the individual to attain the highest possible level of functional ability; (f) social barriers refer to the characteristics of institutions, whether legal, economic, cultural, recreational or other, any human group, community, or society which limit the fullest possible participation of disabled persons in the life of the group. Social barriers include negative attitudes which tend to single out and exclude disabled persons and which distort roles and inter-personal relationships; (g) auxiliary aids and services include: (1) qualified interpreters or other effective methods of delivering materials to individuals with hearing impairments; (2) qualified readers, taped tests, or other effective methods of delivering materials to individuals with visual impairments; (3) acquisition or modification of equipment or devices; and (4) other similar services and actions or all types of aids and services that facilitate the learning process of people with mental disability. (h) reasonable accommodation include 1) improvement of existing facilities used by employees in order to render these readily accessible to and usable by disabled persons; and 2) modification of work schedules, reassignment to a vacant position, acquisition or modification of equipment or devices, appropriate adjustments or modifications of examinations, training materials or company policies, rules and regulations, the provision of auxiliary aids and services, and other similar accommodations for disabled persons; (i) sheltered employment refers to the provision of productive work for disabled persons through workshops providing special facilities, income-producing projects or homework schemes with a view to giving them the opportunity to earn a living thus enabling them to acquire a working capacity required in open industry; (j) auxiliary social services are the supportive activities in the delivery of social services to the marginalized sectors of society; (k) marginalized disabled persons refer to disabled persons who lack access to rehabilitative services and opportunities to be able to participate fully in socioeconomic activities and who have no means of livelihood and whose incomes fall below the poverty threshold; (l) qualified individual with a disability shall mean an individual with a disability who, with or without reasonable accommodations, can perform the essential functions of the employment position that such individual holds or desires. However, consideration shall be given to the employer's judgment as to what functions of a job are essential, and if an employer has prepared a written description before advertising or interviewing applicants for the job, this description shall be considered evidence of the essential functions of the job; (m) readily achievable means a goal can be easily attained and carried out without much difficulty or expense. In determining whether an action is readily achievable, factors to be considered include (1) the nature and cost of the action; (2) the overall financial resources of the facility or facilities involved in the action; the number of persons employed at such facility; the effect on expenses and resources, or the impact otherwise of such action upon the operation of the facility; (3) the overall financial resources of the covered entity with respect to the number of its employees; the number, type and location of its facilities; and chan robles virtual law library

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(4) the type of operation or operations of the covered entity, including the composition, structure and functions of the work force of such entity; the geographic separateness, administrative or fiscal relationship of the facility or facilities in question to the covered entity. (n) public transportation means transportation by air, land and sea that provides the public with general or special service on a regular and continuing basis; (o) covered entity means an employer, employment agency, labor organization or joint-labor management committee; and (p) commerce shall be taken to mean as travel, trade, traffic, commerce, transportation, or communication among the provinces or between any foreign country or any territory or possession and any province. Sec. 6. Sheltered Employment If suitable employment for disabled persons cannot be found through open employment as provided in the immediately preceding section, the state shall endeavor to provide it by means of sheltered employment. In the placement of disabled persons in sheltered employment, it shall accord due regard to the individual qualities, vocational goals and inclinations to ensure a good working atmosphere and efficient production. 4) RIGHTS, PRIVILEGES AND PROTECTIONS RA 7277 Sec. 4 (g) (p) supra Sec. 6. Sheltered Employment If suitable employment for disabled persons cannot be found through open employment as provided in the immediately preceding Section, the State shall endeavor to provide it by means of sheltered employment. In the placement of disabled persons in sheltered employment, it shall accord due regard to the individual qualities, vocational goals and inclinations to ensure a good working atmosphere and efficient production. Sec. 7. Apprenticeship. Subject to the provisions of the Labor Code as amended, disabled persons shall be eligible as apprentices or learners: Provided, That their handicap is not as much as to effectively impede the performance of job operations in the particular occupation for which they are hired; Provided, further, That after the lapse of the period of apprenticeship, if found satisfactory in the job performance, they shall be eligible for employment. Sec. 8. Incentives for Employers. (a) To encourage the active participation of the private sector in promoting the welfare of disabled persons and to ensure gainful employment for qualified disabled persons, adequate incentives shall be provided to private entities which employ disabled persons. (b) Private entities that employ disabled persons who meet the required skills or qualifications, either as regular employee, apprentice or learner, shall be entitled to an additional deduction, from their gross income, equivalent to twenty-five percent (25%) of the total amount paid as salaries and wages to disabled persons: Provided, however, That such entities present proof as certified by the Department of Labor and Employment that disabled persons are under their employ: Provided, further, That the disabled employee is accredited with the Department of Labor and Employment and the Department of Health as to his disability, skills and qualifications. (c) Private entities that improve or modify their physical facilities in order to provide reasonable accommodation for disabled persons shall also be entitled to an additional deduction from their net taxable income, equivalent to fifty percent (50%) of the direct costs of the improvements or modifications. This Section, however, does not apply to improvements or modifications of facilities required under Batas Pambansa Bilang 344. Sec. 9 supra Sec. 33. Employment Entrance Examination. Upon an offer of employment, a disabled applicant may be subjected to medical examination, on the following occasions: (a) all entering employees are subjected to such an examination regardless of disability;

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(b) information obtained during the medical condition or history of the applicant is collected and maintained on separate forms and in separate medical files and is treated as a confidential medical record; Provided, however, That: (1) supervisors and managers may be informed regarding necessary restrictions on the work or duties of the employees and necessary accommodations; (2) first aid and safety personnel may be informed, when appropriate, if the disability may require emergency treatment; (3) government officials investigating compliance with this Act shall be provided relevant information on request; and (4) the results of such examination are used only in accordance with this Act. RA 9442
April 30, 2007 AN ACT AMENDING REPUBLIC ACT NO. 7277, OTHERWISE KNOWN AS THE "MAGNA CARTA FOR DISABLED PERSONS, AND FOR OTHER PURPOSES Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: Section 1. A new chapter, to be denominated as "Chapter 8. Other Privileges and Incentives" is hereby added to Title Two of Republic Act No. 7277, otherwise known as the "Magna Carta for Disabled Persons", with new Sections 32 and 33, to read as follows: "CHAPTER 8. Other Privileges and Incentives "Sec. 32. Persons with disability shall be entitled to the following: (a) At least twenty percent (20%) discount from all establishments relative to the utilization of all services in hotels and similar lodging establishments; restaurants and recreation centers for the exclusive use or enjoyment of persons with disability; (b) A minimum of twenty percent (20%) discount on admission fees charged by the theaters, cinema houses, concert halls, circuses, carnivals and other similar places of culture, leisure and amusement for the exclusive use or enjoyment of persons with disability; (c) At least twenty percent (20%) discount for the purchase of medicines in all drugstores for the exclusive use or enjoyment of persons with disability; (d) At least twenty percent (20%) discount on medical and dental services including diagnostic and laboratory fees such as, but not limited to x-rays, computerized tomography scans and blood tests, in all government facilities, subject to guidelines to be issued by the Department of Health (DOH), in coordination with the Philippine Health Insurance Corporation (PHILHEALTH); (e) At least twenty percent (20%) discount on medical and dental services including diagnostic and laboratory fees, and professional fees of attending doctors in all private hospitals and medical facilities, in accordance with the rules and regulations to be issued by the DOH, in coordination with the PHILHEALTH; (f) At least twenty percent (20%) discount on fare for domestic air and sea travel for the exclusive use or enjoyment of persons with disability; (g) At least twenty percent (20%) discount in public railways, skyways and bus fare for the exclusive use and enjoyment of persons with disability; (h) Educational assistance to persons with disability, for them to pursue primary, secondary, tertiary, post tertiary, as well as vocational or technical education, In both public and private schools, through the provision of scholarships, grants, financial aids, subsidies and other incentives to qualified persons with disability, including support for books, learning materials, and uniform allowance to the extent feasible: provided, that persons with disability shall meet minimum admission requirements;

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(i) To the extent practicable and feasible, the continuance of the same benefits and privileges given by the Government Service Insurance System (GSIS), Social Security System (SSS), and PAG-IBIG, as the case may be, as are enjoyed by those in actual service; (j) To the extent possible, the government may grant special discounts in special programs for persons with disability on purchase of basic commodities, subject to guidelines to be issued for the purpose by the Department of Trade and Industry (DTI) and the Department of Agriculture (DA); and (k) Provision of express lanes for persons with disability in all commercial and government establishments; in the absence thereof, priority shall be given to them. The abovementioned privileges are available only to persons with disability who are Filipino citizens upon submission of any of the following as proof of his/her entitlement thereto: (I) An identification card issued by the city or municipal mayor the barangay captain of the place where the person with disability resides; (II) The passport of the persons with disability concerned; or (III) Transportation discount fare Identification Card (ID) issued by the National Council for the Welfare of Disabled Persons (NCWDP). The privileges may not be claimed if the persons with disability claims a higher discount as may be granted by the commercial establishment and/or under other existing laws or in combination with other discount program/s. The establishments may claim the discounts granted in sub-sections (a), (b), (c), (e), (f) and (g) as tax deductions based on the net cost of the goods sold or services rendered: provided, however, That the cost of the discount shall be allowed as deduction from gross income for the same taxable year that the discount is granted: provided, further, That the total amount of the claimed tax deduction net of value-added tax if applicable, shall be Included in their gross sales receipts for tax purposes and shall be subject to proper documentation and to the provisions of the National Internal Revenue Code (NIRC), as amended." "Sec. 33. Incentives. - Those caring for and living with a person with disability shall be granted the following incentives; (a) persons with disability shall be treated as dependents under Sec. 35(A) of the National Internal Revenue Code, as amended and as such, individual taxpayers caring for them shall be accorded the privileges granted by the code Insofar as having dependents under the same section are concerned; and (b) Individuals or nongovernmental institutions establishing homes, residential communities or retirement villages solely to suit the needs and requirements of persons with disability shall be accorded the following: (i) Realty tax holiday for the first five years of operation; and (ii) Priority in the building and/or maintenance of provincial or municipal roads leading to the aforesaid home residential community or retirement village. Sec. 2. Republic Act No. 7277 is hereby amended by inserting a new title, chapter and section after Sec. 38 to be denominated as Title 4, chapters 1 and 2 and Sections 39, 40, 41 and 42 to read as follows: "Title Four Prohibitions on Verbal, Non-verbal Ridicule and VilificationAgainst Persons with Disability "CHAPTER 1. Deliverance from Public Ridicule. "Sec. 39. Public Ridicule . - For purposes of this Chapter, public ridicule shall be defined as an act of making fun or contemptuous initiating or making mockery of persons with disability whether in writing or in words, or in action due to their impairment/s. "Sec. 40. No individual, group or community shall execute any of these acts of ridicule against persons with disability in any time and place which could intimidate or result in loss of self-esteem of the latter. "CHAPTER 2. Deliverance from Vilification

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"Sec. 41. Vilification. - For purposes of this chapter, vilification shall be defined as: (a) the utterance of slanderous and abusive statements against a person with disability; and/or (b) An activity in public which incites hatred towards serious contempt for, or severe ridicule of persons with disability." "Sec. 42. Any individual, group or community is hereby prohibited from vilifying any person with disability which could result into loss of self-esteem of the latter."
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Sec. 3. Sec. 46 of Republic Act No. 7277 is hereby amended to read as follows: "Sec. 46. Penal Clause. (a) Any person who violates any provision of this Act shall suffer the following penalties: (1) For the first violation, a fine of not less than Fifty thousand pesos (P50,000.00) but not exceeding One hundred thousand pesos (P100,000.00) or imprisonment of not less than six months but not more than two years, or both at the discretion of the court; and (2) For any subsequent violation, a fine of not less than One hundred thousand pesos (P100,000.00) but not exceeding Two hundred thousand pesos (P200,000.00) or imprisonment for not less than two years but not more than six years, or both at the discretion of the court.
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(b) Any person who abuses the privileges granted herein shall be punished with imprisonment of not less than six months or a fine of not less than Five thousand pesos (P5,000.00), but not more than Fifty thousand pesos (P50,000.00), or both, at the discretion of the court. (c) If the violator is a corporation organization or any similar entity, the officials thereof directly involved shall be liable therefore. (d) If the violator is an alien or a foreigner, he shall be deported immediately after service of sentence without further deportation proceedings. Upon filing of an appropriate complaint, and after notice and hearing the proper authorities may also cause the cancellation or revocation of the business permit, permit to operate, franchise and other similar privileges granted to any business entity that fails to abide by the provisions of this Act."
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Sec. 4. The title of Republic Act No. 7277 is hereby amended to read as the "Magna Carta for Persons with Disability", and all references on the said law to "disabled persons" shall likewise be amended to read as "persons with disability".
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Sec. 5. The Department of Social Welfare and Development, the National Council for the Welfare of Disabled Persons, and the Bureau of Internal Revenue, in consultation with the concerned Senate and House committees and other agencies, organizations, establishments shall formulate an agencies, organizations, establishments shall formulate an implementing rules and regulations pertinent to the provisions of this Act within six months after the effectivity of this Act.
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Sec. 6. This Act shall take effect fifteen (15) days after its publication in any two newspapers of general circulation.

BERNARDO, et al. v NLRC & FEBTC FACTS: Complainants numbering 43 are deaf-mutes who were hired on various periods from 1988 to 1993 by respondent Far East Bank and Trust Co. as Money Sorters and Counters through a uniformly worded agreement called "Employment Contract for Handicapped Workers".

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The uniform employment contracts of the petitioners stipulated that they shall be trained for a period of 1 month, after which the employer shall determine whether or not they should be allowed to finish the 6-month term of the contract. Furthermore, the employer may terminate the contract at any time for a just and reasonable cause. Unless renewed in writing by the employer, the contract shall automatically expire at the end of the term. According to FEBTC, the employment contracts were prepared in accordance with Art. 80 of the LC. Disclaiming that complainants were regular employees, FEBTC maintained that complainants who are a special class of workers the hearing impaired employees were hired temporarily under special employment arrangement which was a result of overtures made by some civic and political personalities to the respondent Bank. due to "pakiusap" the idea of hiring handicapped workers was acceptable to them only on a special arrangement basis there have been no separate items in the respondent Bank plantilla for sortes or counters there is no position either in the respondent or in any other bank in the Philippines which deals with purely counting and sorting of bills in banking operations The Labor Arbiter and NLRC ruled against the employees. ISSUE: WON the employees are or have become regular employees? YES, but only the employees, who worked for more than six months and whose contracts were renewed are deemed regular

RATIO: The facts, viewed in light of the Labor Code and the Magna Carta for Disabled Persons, indubitably show that the petitioners, except 16 of them, should be deemed regular employees. The stipulations in the employment contracts indubitably conform with the Art. 80 of the LC. Succeeding events and the enactment of RA No. 7277 (the Magna Carta for Disabled Persons), however, justify the application of Art. 280 of the LC. Because FEBTC entered into the contract with a total of 56 handicapped workers and renewed the contracts of 37 of them - the renewal of the contracts and the hiring of others lead to the conclusion that their tasks were beneficial and necessary to the bank. More important, these facts show that they were qualified to perform the responsibilities of their positions. Sec. 5 of the Magna Carta for Disabled Persons mandates that a qualified disabled employee should be given the same terms and conditions of employment as a qualified able-bodied person The fact that the employees were qualified disabled persons necessarily removes the employment contracts from the ambit of Art. 80. Since the Magna Carta accords them the rights of qualified able-bodied persons, they are thus covered by Art. 280 of the LC. The test of an employee is regular is whether the particular activity performed by the employee is usually necessary or desirable in the usual business or trade of the employer. Without a doubt, the task of counting and sorting bills is necessary and desirable to the business of FEBTC. The contract signed by petitioners is akin to a probationary employment, during which the bank determined the employees' fitness for the job. When the bank renewed the contract after the lapse of the six-month probationary period, the employees thereby became regular employees. The other grounds cited by FEBTC (that merely "accommodated" employees; that it did not go out of its way to recruit petitioners; that its plantilla did not contain their positions; and the petitioners were informed from the start that they could not become regular employees) cannot stand -- well-settled is the rule that the character of employment is determined not by stipulations in the contract, but by the nature of the work performed. 5) Enforcement RA 7277 SECTION 44. Enforcement by the Secretary of Justice

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(a). Denial of Right 1) Duty to Investigate the Secretary of Justice shall investigate alleged violations of this Act, and shall undertake periodic reviews of compliance of covered entities under this Act. (b) Potential Violations If the Secretary of Justice has reasonable cause to believe that 1) any person or group of persons is engaged in a pattern of practice of discrimination under this Act; or 2) any person or group of persons has been discriminated against under this Act and such discrimination raises and issue of general public importance, the Secretary of Justice may commence a legal action in any appropriate court. SECTION 45. Authority of Court The court may grant any equitable relief that such court considers to be appropriate, including, to the extent required by this Act: (a). granting temporary, preliminary or permanent relief; (b). providing an auxiliary aid or service, modification of policy, practice or procedure, or alternative method; and (c) making facilities readily accessible to and usable by individuals with disabilities. SECTION 46. Penal Clause (a) Any person who violates any provision of this Act shall suffer the following penalties: 1). for the first violation, a fine of not less than Fifty thousand pesos (P 50,000.00) but not exceeding One hundred thousand pesos(P 100,000.00) or imprisonment of not less than six (6) months but not more than two (2) years, or both at the discretion of the court; and 2). for any subsequent violation, a fine of not less than One hundred thousand pesos (P 100,000.00) but not exceeding Two hundred thousand pesos (P 200,000.00) or imprisonment for less than two (2) years but not more than six (6) years, or both at the discretion of the court. (b). Any person who abuses the privileges granted herein shall be punished with imprisonment of not less than six (6) months or a fine of not less than Five thousand pesos (P 5,000.00) but not more than Fifty thousand pesos (P 50,000.00), or both, at the discretion of the court. (c). If the violator is a corporation, organization or any similar entity, the officials thereof directly involved shall be liable therefor. (d). If the violator is an alien or a foreigner, he shall be deported immediately after service of sentence without further deportation proceedings.

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