1 
NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
The creation of the Technical Education and Skills Development Authority (TESDA) on 
August 25, 1994, through the merger of the former National Manpower and Youth Council 
(NMYC), the Bureau of Technical Vocational Education of the then Department of Education, 
Culture and Sports (BTVE-DECS) and the Apprenticeship program of the Department of Labor 
and Employment (DOLE), was an offshoot of the trifocalization of education recommended by 
the 1991 Congresssional Education Commission or EDCOM.  
By virtue of Republic Act No. 7796 (TESDA Act of 1994),  the TESDA is mandated to 
ensure the delivery of relevant, accessible, high quality and efficient technical education and 
skills development and to develop high quality middle-level manpower responsive to the 
country’s development goals and priorities.  
However, after more than two decades of delivering relevant, accessible, and efficient 
technical education and skills development  thoughout ther country, TESDA has been 
encountering many challenges and limitations that affect the performance of its functions, 
delivery of technical-vocational education and training (TVET) programs, and fulfillment of its 
vision. One of these is the  need to sstrengthen its organizational structure and functions to 
keep pace with the advent of technology and the demands of  the Fourth Industrial Revolution 
(4IR).  
The frequent transfer of the TESDA from one office to another has also affected its 
functions, programs and projects, and delivery of educational services. From an attached 
agency of the Department of Labor and Employment, TESDA was transferred to the Office of 
the President and now, to the Department of Trade and Industry through executive order 
signed by President Duterte. 
Moreover, under the TESDA Charter, the TESDA Director-General shall enjoy the 
benefits, privileges ad emoluments equivalent to the rank of Undersecretary. However, the 
current and past two Presidents of the Philippines appointed the TESDA Director General with 
a Cabinet rank position or equivalent to a Secretary. 
By elevating the TESDA into a department, it shall be headed by a Secretary, four (4) 
Undersecretaries and four (4) Assistant Secretaries and attain self-determination to ensure 
permanence and continuity of mandated programs. This will also strengthen the implementing, 
regulatory, and policy-making functions of the agency, as well as make it more responsive and 
agile in the era of the 4IR and digital economy. 
The proposed Department of Technical Education and Skills Development (DTESD) 
will not only improve the resource/budget allocation for TVET programs, but will also ably 
represent the TVET sector as a whole, changing its “second class” perception. More 
importantly, the proposed DTESD will have a better capacity to fulfill its vision as the 
transformational leader in TVET in the country. 
The immediate passage of this bill is earnestly sought. 
 RUFUS B. RODRIGUEZ 
November 21, 2022
2:18 pm
6230


2 
NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
CREATING 
THE 
DEPARTMENT 
OF 
TECHNICAL 
EDUCATION 
AND 
SKILLS 
DEVELOPMENT , DEFINING ITS POWERS AND FUNCTIONS,  REPEALING FOR THE 
PURPOSE REPUBLIC ACT NO. 7796, OTHERWISE KNOWN AS THE TECHNICAL 
EDUCATION AND SKILLS DEVELOPMENT AUTHORITY OR TESDA ACT OF 1994, AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Department of Technical 
Education and Skills Development (DTESD) Act”. 
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 manpower responsive to and in accordance 
with Philippine development goals and priorities. 
The State shall encourage active participation of various concerned sectors, public as 
well as private technical-vocational institutions (TVIs) particularly private enterprises, being 
direct participants in and immediate beneficiaries of a technically educated and trained 
workforce, in providing technical education services and training opportunities. 
SEC. 3. Objectives. – The objectives of this Act are: 
a) To promote and strengthen the quality of technical education and skills
development programs to attain global competitiveness and inclusive growth;
b) To focus technical education and skills development on meeting the changing
demands for quality manpower particularly in support of the development thrust of
the country;
c) To encourage critical and creative thinking by disseminating the scientific and
technical knowledge base of manpower development programs;
d) To recognize and encourage the complementary roles of public and private
institutions, enterprises, local government units (LGUs) and civil society
organizations (CSOs) in technical education and skills development;
e) To develop the capacities of stakeholders to participate in the planning and delivery
of quality technical education and skills development systems;
6230


 
 
 
 
3 
 
f) To inculcate desirable values through the development of moral character with 
emphasis on work ethics, self-discipline, self-reliance and nationalism; 
 
g) To strongly support the implementation of the Philippine Qualifications Framework 
or the PQF Act (Republic Act No. 10968), the Ladderized Education Act (Republic 
Act No. 10647) and the Dual Training System Act (Republic Act No. 7686); and 
other laws, decrees and orders on education; 
 
h) To maximize returns to the country’s investment in technical education and skills 
development through an efficient graduates’ employment facilitation program 
within the framework of the national employment service network system; and 
 
i) To support in the poverty alleviation efforts by providing the marginalized and 
vulnerable segments of the country’s population access to income generating 
technical education and skills development opportunities. 
 
SEC. 4. Definition of Terms. – As used in this Act: 
 
a) Apprenticeship refers to the training within employment with compulsory related 
theoretical instruction involving a contract between an apprentice and an employer 
on an approved apprenticeable occupation; 
 
b) Apprentice refers to a person undergoing training for an approved apprenticeable 
occupation during an apprenticeship agreement; 
 
c) Apprenticeship Agreement refers to 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; 
 
d) Apprenticeable Occupation refers to an occupation officially endorsed by a tripartite 
body and approved as apprenticeable by the Department; 
 
e)  Dual Training System refers to an instructional delivery system of technical and 
vocational education and training that combines in-plant training and in-school 
training based on a training plan collaboratively designed and implemented by an 
accredited dual system educational institution/training center and accredited dual 
system agricultural, industrial and business establishments with prior notice and 
advice to the local government unit concerned. Under this system, said 
establishments and the educational institution share the responsibility of providing 
the trainee with the best possible job qualifications, the former essentially through 
practical training and the latter by securing an adequate level of specific, general 
and occupation-related theoretical instruction. The word “dual” refers to the two 
parties providing instruction: the concept “system” means that the two instructing 
parties do not operate independently of one another, but rather coordinate their 
efforts. 
 
f) Ladderized education refers to the harmonization of all education and training 
mechanisms that allow students and workers to progress between technical-
vocational and higher education programs, or vice-versa. It opens opportunities for 
career and educational advancement to students and workers. It creates a 
seamless and borderless education and training system that will allow transfers in 


 
 
 
 
4 
 
terms of flexible entry and exit between technical-vocational and higher education 
programs in the post-secondary school educational system; 
 
g) Leading Technology Center refers to centers that provide high quality and efficient 
technical education, training and certification in support of the development of high 
quality Filipino manpower responsive to and in accordance with Philippine 
development goals and priorities; 
 
h) Learner refers to persons hired as trainees in semi-skilled and other industrial 
occupations which are non-apprenticeable. Learnership programs must be 
approved by the Department;  
 
i) 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; 
 
j) Middle-Level Manpower refers to 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; 
 
k) Philippine Qualifications Framework (PQF) refers to the national policy which 
describes the levels of educational qualifications and sets the standards for 
qualifications outcomes. It is a quality assured national system for the 
development, recognition and award of qualifications based on standards of 
knowledge, skills, and values acquired in different ways and methods by learners 
and workers of a certain country; 
 
l) Private Enterprise 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; 
 
m) Skill refers to the acquired and practiced ability to carry out a task or job; 
 
n) Skills Development refers to 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; 
 
o) Technical Education refers to the education process designed at upper secondary 
and lower tertiary levels, aligned with the levels of the PQF, with the pathways to 
higher education through the credit transfer system based on learning outcomes 
aimed at preparing technicians, technologists, para-professionals and other 
categories of workers and/or entrepreneurs by providing them with a broad range 
of general education, theoretical, scientific and technological studies, and related 
job skills training; 
 


 
 
 
 
5 
 
p) Trade refers to 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; 
 
q)  Trainee refers to persons who are participants in a vocational, administrative or 
technical training program for the purpose of acquiring and developing job-related 
skills; 
  
r) Trainer refers to persons who direct the practice of skills towards immediate 
improvement in some task; 
 
s) Training refers to teaching or developing oneself or others, any skills and 
knowledge that relate to specific useful competencies; 
 
t) Trainer’s training refers to training trainers aimed at developing the latter’s 
capacities for imparting attitudes, knowledge, skills and behavior patterns required 
for specific jobs, tasks, occupations or group of related occupations; and 
 
u) 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. 
 
SEC. 5. Creation and Mandate of the Department of Technical Education and 
Skills Development. – There is hereby created a Department of Technical Education and 
Skills Development (DTESD), which shall be the primary policy formulation, planning, 
coordinating, implementing, regulating and administrative entity of the government for 
technical education and skills development (TESD) agenda. 
 
SEC. 6. Powers and Functions. – The DTESD shall have the following powers and 
functions: 
 
a) Formulate a roadmap for Philippine TESD and set the general directions for education 
and training policies and standards that shall be embodied in a National Technical 
Education and Skills Development Plan (NTESDP); 
 
b) Formulate and recommend national policies and guidelines and conduct in-depth 
studies on all policy areas and options that will promote technical education and skills 
development in consultation with the relevant stakeholders, and address job mismatch 
between technical vocational education and training (TVET) and industry 
requirements; 
c) Assess, review, harmonize and coordinate all TESD policies and programs to ensure 
overall consistency and implementation of the national policies; 
d) Organize and constitute various standing committees, subsidiary groups, or technical 
working groups for efficient integration, coordination and monitoring of TESD programs 
at the national, regional, and local levels; 
e) Enter into, make, execute, perform and carry-out domestic and foreign contracts 
subject to existing laws, rules and regulations; 
f) Restructure the entire sub-sector consisting of all institutions and programs involved 
in the promotion and development of middle-level manpower through upgrading, 
merger and/or phase-out following a user-led strategy; 
g) Approve training standards and assessment packages as established and conducted 
by private industries; 


 
 
 
 
6 
 
h) Establish and administer a system of accreditation of both public and private technical 
vocational institutions; 
i) Establish, develop and support institutions trainers’ training and/or programs; 
j) Exact reasonable fees and charges for such assessment and trainings conducted and 
retain such earnings for its own use, subject to guidelines promulgated by the DTESD; 
k) Allocate resources for the programs and projects it shall undertake pursuant to the 
approved NTESDP; 
l) Determine and approve systematic funding schemes such as the levy and grant 
scheme for technical education and skills development purposes. 
m) Create, when deemed necessary, an Advisory Committee which shall provide expert 
and technical advice to the Secretary to be chosen from the academe and the private 
sector. Provided, That in case the Advisory Committee is created, the DTESD is 
hereby authorized to set aside a portion of its appropriation for its operations; 
n) Review and recommend action to concerned authorities on proposed technical 
assistance programs and grants-in-aid for technical education and skills development, 
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; 
o) Promulgate rules and regulations for the implementation of its policies and related 
laws; and 
p) Perform such other functions as maybe needed to achieve its goals and objectives to 
the fullest and as may be provided by this Act. 
 
SEC. 7. Composition. -  The DTESD shall be composed of the Office of the Secretary, 
and the various bureaus, services, regional and provincial/district offices.  
 
SEC. 8. Powers and Functions of the Secretary. The Secretary shall have the 
following powers and functions: 
 
a) Provide executive direction and supervision over the entire operations of the DTESD; 
b) Organize the DTESD for its efficient and effective performance of its functions to 
achieve the objectives and mandate of this Act;  
c) Establish TESD policies and standards for the effective, efficient and economical 
operation of the DTESD, in accordance with the programs of the government; 
d) Represent and advocate TESD concerns in national and international bodies; 
e) Mobilize resources and ensures prudent utilization of and access to TESD investments 
and incentives according to national development plans and priorities;  
f) Designate and appoint officers and employees of the DTESD, including regional and 
provincial directors, but excluding the Undersecretaries and Assistant Secretaries, in 
accordance with  Civil Service laws, rules and regulations; 
g) Undertake consultations with other members of the Cabinet and officers of the 
government relating to TESD concerns; 
h) Advise the President of the Philippines on the promulgation of executive and 
administrative orders and formulation of regulatory and legislative proposals on 
matters pertaining to TESD; 
i) Promulgate rules, regulations and other issuances in carrying out the DTESD’s 
mandate, objective, policies, plans, programs and projects;  
j) Direct and manage the implementation of DTESD’s programs and services; and 
k) Perform such other functions as may be authorized. 
 
SEC. 9. Undersecretaries and Assistant Secretaries. - The Secretary shall be 
assisted by four (4) Undersecretaries and four (4) Assistant Secretaries who shall be 


 
 
 
 
7 
 
appointed by the President upon recommendation of the Secretary: Provided, that the two (2) 
Undersecretaries and the two (2) Assistant Secretaries shall be career officers. 
 
The Undersecretaries and Assistant Secretaries shall assist the Secretary in the 
performance of his powers and functions to achieve the objectives of this Act.  The 
Undersecretaries and Assistant Secretaries shall be given specific areas of responsibility. 
 
SEC. 10. Qualifications and Appointments. – The person appointed as Secretary, 
Undersecretary, or Assistant Secretary of the DTESD must be a citizen and a resident of the 
Philippines, of good moral character, of proven integrity, and with at least five (5) years 
relevant experience. 
 
SEC. 11. Bureaus, Services, and Personnel. – The bureaus under the Office of 
the Secretary of DTESD shall be headed by an Executive Director to be appointed by the 
President upon the recommendation of the Secretary. The Executive Directors shall have 
the rank and emoluments of Director IV. 
 
SEC. 12. Regional Office – There shall be stablished a Regional Office in each region 
of the country to be headed by the Regional Director with the rank and emoluments of Director 
IV and appointed by the President upon the recommendation of the Secretary.  The Regional 
Office shall have the following functions: 
 
a) Direct implementation of TESD programs, projects and related activities in the 
region; 
b) Develop and recommends TESD programs for local level implementation 
within set policies; 
c) Deploy policies to stakeholders; 
d) Manage TESD resources in the region; 
e) Plan and implement policy inputs;  
f) Monitor and evaluate program implementation; and 
g) Perform such other functions as may be authorized. 
 
SEC. 13. The Provincial/District Offices- The Provincial/District Office shall be 
headed by a Provincial/District Director who shall have the rank and emoluments of a Director 
III and appointed by the President upon the recommendation of the Secretary. The 
Provincial/District office shall have the following functions: 
 
a) Serve as secretariat to the Provincial TESD Committees; 
b) Provide technical assistance to the local government units for effective supervision, 
coordination, integration of all technical education and training programs within their 
localities; 
c) Review and recommends priority technical education and training programs within 
their localities; and 
d) Perform such other functions as may be authorized. 
 
SEC. 14. Technical Education and Training Centers. - The DTESD shall absorb 
and enhance existing Technical Education and Training Centers  and establish a network of 
national, regional and local technical education and skills development centers for the purpose 
of promoting technical education and skills development. This network shall include leading 
training technology centers, training centers in technical-vocational schools, including TESDA-
administered and supervised TVIs, including arts and trades schools/colleges and polytechnic 
institutes, and all other duly accredited public and private dual system educational institutions. 


 
 
 
 
8 
 
The TESD centers shall be administered and operated under such rules and regulations as 
may be established by the DTESD in accordance with the NTESDP. 
 
These centers and schools shall have the following functions: 
 
a) Provide responsive formal and non-formal TESD programs; 
b) Conduct applied research and development programs and provides extension 
services in coordination with Regional Offices (ROs)/Provincial Offices (POs); 
c) Undertake entrepreneurship development program;  
d) Conduct outreach programs in coordination with ROs/POs; 
e) Provide job linkages; 
f) Provide assessment and certification; 
g) Devise mechanisms for sustainable operation and development;  
h) Monitor and evaluate program implementation; and 
i) Perform such other functions as may be authorized. 
 
SEC. 15. Structure and Staffing Pattern. - Subject to the approval of the 
Department of Budget and Management (DBM), the DTESD shall determine its 
organizational structure, staffing, pattern, qualification standards, and placement of 
personnel in the DTESD in accordance with the civil service rules, and regulations. 
 
SEC. 16. Compliance with the Salary Standardization Law. - The compensation 
and emoluments of the officials and employees of the DTESD shall be in accordance with the 
Salary Standardization Law and other applicable laws under the national compensation and 
clarification plan. 
 
SEC. 17. Consultancy, Technical Assistance, Publication, and Research. - In 
pursuance of its objectives, the DTESD 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 training. It shall avail itself 
of the services of other agencies of the government, as may be required. 
 
SEC. 18. Formulation of a Comprehensive Development Plan for Middle Level 
Manpower. - The DTESD shall formulate a comprehensive development plan for middle 
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 be updated 
periodically and submitted to the President for approval. Thereafter, it shall be the plan for the 
technical education, training, and certification for the entire country within the framework of 
the National Development Plan. The DTESD shall direct through its offices to call on public 
agencies, the private sector and academe to assist in this effort. The comprehensive plan shall 
provide for a 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 
training; 
c)  Accelerate the employment generation effort 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 training plan. The budget to support such plan shall be subject to review 


 
 
 
 
9 
 
and endorsement by the DTESD to the DBM. The DTESD shall evaluate the efficiency 
and effectiveness of agencies skills development program and schemes to make them 
conform to the quantitative and qualitative objectives of the national technical 
education and skills development plan. 
 
SEC. 19. Technical Education and Skills Development Committees. - The DTESD 
shall establish Technical Education and Skills Development Committees at the regional and 
local levels to coordinate and monitor the delivery of all training activities by the public and 
private sectors, and recommend policy, program and project. This committee 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 Secretary. 
 
SEC. 20. Enterprise-Based Training Program. - The DTESD shall promote 
Enterprise-Based Training as a major mode of training rather than an employment 
arrangement and shall see to it that it is not subject to abuse by unscrupulous entities.  
 
SEC. 21. Establishment and Administration of National Training Standards. - 
There shall be national training standards to be established by DTESD-accredited industry 
committees. The DTESD shall develop and implement a certification and accreditation 
program in which private industry groups and trade associations are accredited to conduct 
approved assessment packages, and the local government units to promote such assessment 
in their respective areas in accordance with the guidelines set by the DTESD.  
 
The Secretary shall determine the occupational trades for mandatory certification. All 
certificates relating to the national training standards and certification system shall be issued 
by the DTESD through its Regional and Provincial Offices.  
 
In consonance with the PQF, the DTESD shall closely collaborate with the Professional 
Regulation Commission (PRC) as regards to the assessment of technicians, master craftsman 
and technologists. 
 
SEC. 22. Administration of Training Programs. - The DTESD 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 education and skills 
development and related opportunities. Such training programs and schemes shall include 
teachers’/trainers’ training in occupational trades and related fields of employment, and value 
development as an integral component of all technical education and training programs.  
 
SEC. 23. Assistance to Employers and Organizations. - The DTESD shall assist 
any employer or organization engaged in technical education and training schemes design to 
attain its objectives under rules and regulations established by the DTESD for this purpose. 
 
SEC. 24. Accreditation and Regulation of TESD Programs. - All TESD shall be duly 
accredited by the DTESD before it is offered to the public by any public, private entity or non-
government organization.   
 
Non-compliance with the accreditation requirements of the DTESD shall form part of 
the bases for the possible suspension or cancellation of the entities’ license to operate issued 
by competent authorities. 
 
SEC. 25. Coordination of All TESD Schemes. – In order to integrate the national 
technical education and skills development efforts, all technical education and skills 


 
 
 
 
10 
 
development schemes as provided for in this Act shall comply with national standards as 
determined by the DTESD particularly those having to do with competency standards. For this 
purpose, existing technical education and skills development programs in the Government 
and in the private sector, specifically those wholly or partly financed with government funds, 
shall be reported to the DTESD which shall assess and evaluate such programs to ensure 
their efficiency and effectiveness.  
 
Noncompliance with the above-mentioned standards as well as reportorial 
requirements shall be disqualified from any form of government assistance in the field of 
technical education and skills development. 
 
SEC. 26. Enterprise-Based Partnerships and Linkages. - The DTESD shall 
establish effective and efficient institutional arrangements with industry bodies and such other 
organizations or associations to ensure direct participation of employers and workers in the 
design and implementation of technical education and skills development schemes, 
competency standardization and certification; and such other functions in the fulfillment of the 
DTESD’s objectives.  
 
SEC. 27. Inclusive Training Opportunities. - The DTESD shall likewise design and 
implement a delivery system for community based technical education and skills development 
opportunities for the marginalized and disadvantaged sectors of the population, including the 
beneficiaries of Pantawid Pamilyang Pilipino Program (4Ps) as provided under Republic Act 
No. 11310 or the Pantawid Pamilyang Pilipino Program Act, providing them 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 eventually leading to poverty alleviation and reduction. 
 
SEC. 28. Skills Competitions. - To promote quality technical education and skills 
development in the country and with the view of participating in international skills 
competitions, the DTESD, with the active participation of private industries, shall organize and 
conduct annual skills competitions.  
 
The DTESD shall promulgate the necessary rules and guidelines for the effective and 
efficient conduct of national skills competitions and for the country’s participation in 
internationals skills competitions such as ASEAN and World Skills Olympics. 
 
SEC. 29. The TESD Development Fund. - A Technical Education and Skills 
Development Fund is hereby established, to be managed/administered by the DTESD, 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: 
 
a) A one-time lump sum appropriation from the National Government; 
b) An annual contribution from the Overseas Workers Welfare Administration Fund, 
the amount of which shall be determined by the Overseas Workers Welfare 
Administration and based on the study on financing capacity of the OWWA fund;  
c) Donations, grants, endowments, and other bequests or gifts, and any other income 
generated by the DTESD. 
 
The Secretary 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: 
 


 
 
 
 
11 
 
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 the administration of the Fund. 
 
The Secretary shall appoint a reputable government-accredited investment institution 
as fund manager, subject to existing government rules and regulations. 
 
SEC. 30. Technical Assistance, Incentives and Scholarship Grants. - The DTESD 
shall adopt a system of providing technical assistance, incentives and scholarship grants 
which shall be designed to encourage public and private sector and clientele participation in 
technical education and training activities along the priorities identified by the National 
Development Plan/Agenda. 
 
SEC. 31. Placement Centers. - There shall be established a network of placement 
centers or PLACERS in all the Provincial/District Offices to cater specifically to the job 
placement of graduates of TESD institutions. These Centers shall be financed and 
administered by the DTESD.  In coordination with the Department of Labor and Employment 
(DOLE), these centers shall be part of the National Employment Service Network of the DOLE.  
 
SEC. 32.  Separation and Retirement from Service. - Employees who are separated 
from service within six (6) months from the effectivity of this Act as a result of the 
abolition/reorganization under the provisions of this Act shall receive separation benefits to 
which they may be entitled under existing laws, orders and issuances:  Provided, that those 
who are qualified to retire under existing retirement laws shall be allowed to retire and receive 
retirement benefits to which they may be entitled under applicable laws, orders and issuances.  
 
SEC. 33. Transitory Provision. – The TESDA Secretariat created under Sections 10-
15 of R.A. 7796 shall comprise the initial manpower complement of the DTESD, Provided, 
that, no employee shall be terminated by virtue of this transfer.  
 
The laws and rules on government reorganization as provided under Republic Act No. 
6656, otherwise known as the Reorganization Law, shall govern the transfer and 
reorganization process of the DTESD. 
 
The Personnel of the TESDA shall, in a holdover capacity, continue to perform their 
respective duties and responsibilities and receive their corresponding salaries and benefits 
until such time when the organizational structure pattern of the DTESD shall have been 
approved. Provided, That the preparation and approval of the said new organizational 
structure and staffing pattern shall, as far as practicable, respect and ensure the security of 
tenure and seniority rights of affected government employees. Those personnel whose 
positions are not included in the new staffing pattern or who are not reappointed or who choose 
to be separated as a result of the reorganization shall be paid their separation or retirement 
benefits under existing laws. 
 
SEC. 34. Appropriations. - The amount needed for the initial implementation of this 
Act shall be taken from the current fiscal year’s appropriation of TESDA. Thereafter, the 
amount needed for the operation and maintenance of the DTESD shall be included in the 
General Appropriations Act.  
 
SEC. 35. Implementing Rules and Regulations. - The DTESD shall issue, within a 
period of ninety (90) days after the effectivity of this Act, the rules and regulations for the 
effective implementation of this Act.  


 
 
 
 
12 
 
 
SEC. 36. Separability Clause. - If, for any reason, any portion or provision of this Act 
shall be held unconstitutional or invalid, the remaining provisions not affected thereby shall 
continue to be in full force and effect.  
 
SEC. 37. Repealing Clause. - Republic Act No. 7796, otherwise known as the 
“TESDA Act of 1994,” is hereby repealed.  All laws, presidential decrees, executive orders, 
rules and regulations, issuances or parts thereof which are inconsistent with the provisions of 
this Act are repealed, amended or modified accordingly. 
 
SEC. 38.  Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of general circulation.   
 
Approved,