RULE III : Training and Development

SECTION 1. Responsibility of the NMYC for training and development. — The NMYC shall provide, through its Secretariat, instructor training, entrepreneurship development, training in vocations, trades and other fields of employment, and assist any employer or organization in developing training schemes under such rules and regulations as the Council may establish for this purpose.

SECTION 2. Integration of training programs. — The Council shall coordinate all manpower training schemes, apprenticeship and learnership programs, particularly the setting of skills standards. It may regulate existing manpower training programs of the government and the private sector to make them conform with the national development programs.

SECTION 3. Obligation to report. — All manpower training programs, whether in the government or in the private sector shall be reported to the Council in a form to be prescribed by it.

SECTION 4. Application for NMYC assistance. — Any person or entity, private or public, that is engaged or desires to engage in training may request the NMYC for assistance by filing with its Director-General an appropriate project proposal.

SECTION 5. Requirements of training program proposal. — The training program proposal shall be submitted in the form prescribed by the NMYC. The proposal shall include, among others the following:

(a) Objectives of training;

(b) Type of training, whether for basic skills training, further training, instructor training, cooperative settlement training, entrepreneurship training, vocational preparation training, and special projects training;

(c) Training schedules and program of activities;

(d) Educational background of the trainee;

(e) Course content or syllabus;

(f) Personnel requirements (training staff);

(g) Estimate of supplies and materials required;

(h) Training facilities and equipment;

(i) Cost estimates and budgetary allocation.

SECTION 6. Actions on application for training assistance. — The Director-General shall approve or disapprove the application within ninety (90) calendar days from submission thereof.

SECTION 7. Criteria for approval. — The applicant shall qualify for assistance if he can establish to the satisfaction of the Director-General that the project for which training assistance is being sought falls under NMYC priorities, is feasible, is labor-intensive, has the built-in-capacity for job creation and placement, and that the applicant is in a position to comply with the minimum requirements set by NMYC on training facilities, training staff, course syllabus and training methodology.

SECTION 8. Allowable training expenses. — The training assistance of NMYC shall be in the form of personal services, travelling expenses, equipment, training tools, training supplies and materials, and a reasonable amount for contingencies.

SECTION 9. Termination of training project. — The Director-General may terminate any training program or project should evaluation prove that the training center/project has not complied with any of the requirements of the approved project proposal or should there be violation of any of the provisions of the relevant Memorandum Agreement.

SECTION 10. Incentive scheme. — An additional deduction from taxable income of one-half of the value of labor training expenses incurred for developing or upgrading the productivity and efficiency of unskilled labor or for management development programs shall be granted to the person or enterprise concerned, provided such training program is approved by the Council and provided further that such deduction shall not exceed 10 percent of direct labor wage.

There shall be a review of the said scheme two years after its implementation.

SECTION 11. Coverage of the incentive scheme. — Subject to the limitations prescribed by law and these Rules, training expenses incurred in connection with organized manpower training programs may be deducted from the taxable income of the person or enterprise concerned, provided such training programs shall have been submitted to the NMYC for evaluation and approval except those covered by the apprenticeship program. Training programs undertaken by training institutions and/or associations operating for profit shall not qualify under this incentive scheme.