3. Upskilling

Upskilling

Concept

Upskilling under the Enterprise-Based Education and Training (EBET) framework concerns training that enables an employed worker to acquire or upgrade skills for career progression. The framework seeks to make training accessible to individuals who intend to upgrade their skills for potential employment or career advancement. (Sec. 6, Rep. Act No. 12063)¹ (Sec. 2, Rep. Act No. 12063)²

Governing provisions

Republic Act No. 12063 addresses an employed worker’s participation in an EBET Program, the agreement required before training starts, and the wages and benefits due under an upskilling program. As with every EBET Program, theoretical instruction is mandatory. (Sec. 6, Rep. Act No. 12063)¹ (Sec. 12, Rep. Act No. 12063)³ (Sec. 13, Rep. Act No. 12063)⁴ (Sec. 4, Rep. Act No. 12063)⁵

Requisites / Rules

• An employed worker may opt to undergo an EBET Program to acquire new skills, upgrade skills, or obtain entrepreneurial know-how. A trainee must have the appropriate aptitude and capacity to understand and follow oral and written instructions. (Sec. 6, Rep. Act No. 12063)¹
• An enterprise may set appropriate educational requirements for a particular EBET Program. It may also require additional qualifications applicable to its employed workers who intend to upskill for job promotion. (Sec. 6, Rep. Act No. 12063)¹
• The program must be registered with TESDA before implementation and before the enterprise enters into an EBET Agreement. Registration requirements include a Training Plan and proof of arrangement with a technical-vocational institution, if any. (Sec. 9, Rep. Act No. 12063)⁶
• Before the program starts, the enterprise and trainee must enter into an EBET Agreement. Among its required contents are the Training Plan, training hours and period, training allowance, benefits, payment schedule, termination process, and the parties’ general rights and obligations. (Sec. 12, Rep. Act No. 12063)³

Distinctions

An upskilling trainee is entitled to the full wages and benefits enjoyed by a regular employee of the enterprise, including overtime pay and night shift differential. This differs from the training-allowance rules stated for general EBET and apprenticeship trainees. (Sec. 13, Rep. Act No. 12063)⁴

Key doctrines

When the trainee is already employed by the enterprise implementing the upskilling program, the EBET Agreement must ensure the same treatment as comparable employees, including security of tenure and non-diminution of benefits. Training under the program must not be treated as a reason to remove those protections. (Sec. 12, Rep. Act No. 12063)³

Exceptions

The rule limiting EBET trainees to 20% of an enterprise’s regular employees does not apply to an enterprise implementing an upskilling program for its employees. (Sec. 25, Rep. Act No. 12063)⁷

Bar tip

If the trainee is an existing employee, check both the upskilling wage-and-benefits rule and the agreement’s guarantees of comparable treatment, security of tenure, and non-diminution of benefits. (Sec. 13, Rep. Act No. 12063)⁴ (Sec. 12, Rep. Act No. 12063)³