of ECEIVED

pareSEP

EIGHTEENTH CONGRESS OF THE REPUBLIC)
OF THE PHILIPPINES )
First Regular Session

HOUSE OF REPRESENTATIVES,
44ig

HB. NO.

Introduced by MICHAEL T. DEFENSOR

EXPLANATORY NOTE

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION AND
SKILLS DEVELOPMENT (DTESD), DEFINING ITS MANDATE, POWERS AND
FUNCTIONS, REPEALING REPUBLIC ACT NO. 7796, OTHERWISE KNOWN AS
THE TESDA ACT OF 1994 AND APPROPRIATING FUNDS THEREFOR

Republic Act No. 7796 or the TESDA Act of 1994 approved on August 25, 1994 paved the way
for the creation of the Technical Education and Skills Development Authority (TESDA). Sec.
2 of the law specifically mandated TESDA to carry out the government efforts in providing
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 the
country’s development goals and priorities.

By virtue of this Act, 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) were integrated into TESDA. The merger of these entities was based on the
recommendation of the Congressional Commission on Education (EDCOM) that had
undergone a nationwide review of the state of the Philippine education and training system in
1991.

‘Twenty-five (25) years hence, TESDA has been the leading authority in ensuring that technical
education and skills development (TESD) is relevant, efficient, accessible, and of high quality.
However, the agency has been facing enormous challenges due to changes in the local and
global environment that the organization needs to focus on. There are limitations to what
‘TESDA can do which can be addressed if it will be elevated into a line Department of the
government. TESDA must address the need for modern facilities and equipment in order to be
at par with the requirements of the challenge posed by the Fourth Industrial Revolution and
other advancements that may happen in the future, It must also be bestowed with the police
powers to impose sanctions and penalties to erring TESD implementers.

The Bill seeks to repeal R.A. 7796 or the TESDA Act of 1994 and to strengthen the powers and
organizational function of TESDA by elevating it into a Department. The proposed Department
shall be the primary policy formulation, planning, coordinating, implementing, regulating and
administrative entity of the government for technical education and training and


certification policies, plans and programs. It shall be headed by a Secretary, four (4)
Undersecretaries and four (4) Assistant Secretaries.

Carrying out the functions of the new Department shall be done by the various bureaus, service
offices and Regional/ Provincial/ District Offices. Implementation of direct training programs
will be done by the technology institutions.

With the proposed legislative measure, TESDA will be strengthened as an implementing and
regulatory institution of the Technical and Vocational Sector of the country’s trifocal education
system. The agency will have a better capacity to fulfill its vision as the transformational leader
in the technical education and skills development of the Filipino workforce.

‘The immediate passage of this bill is earnestly sought.

MICHAEV/MIKE” T. DEFENSOR
Representétive
ANAKALUSUGAN PARTY-LIST


EIGHTEENTH CONGRESS OF THE REPUBLIC)

OF THE PHILIPPINES )
First Regular Session
HOUSE OF REPRESENTATIVES
wp.no.44i0
Introduced by

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION AND
SKILLS DEVELOPMENT, DEFINING ITS POWERS AND FUNCTIONS, REPEALING
REPUBLIC ACT NO. 7796, OTHERWISE KNOWN AS THE 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 of 2019.”

SECTION 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.

SECTION 3. Objectives. — The objectives of this Act are:

a) Promote and strengthen the quality of technical education and skills development
programs to attain global competitiveness and inclusive growth;

b) 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) Encourage critical and creative thinking by disseminating the scientific and technical
knowledge base of manpower development programs;

d) 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;


Develop the capacities of stakeholders to participate in the planning and delivery of

quality technical education and skills development systems;

£) Inculcate desirable values through the development of moral character with emphasis
on work ethics, self-discipline, self-reliance and nationalism;

g) Strongly support the implementation of the Philippine Qualification Framework Act
(R.A. 10968), the Ladderized Education Program (R.A. 10647) and the Dual Training
System (R.A. 7686); and other laws, decrees and orders on education;

h) Maximize retums 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) Help 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.

©)

SECTION 3. 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;

©) 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;

Apprenticeable Occupation refers to an occupation officially endorsed by a tripartite
body and approved for apprenticeable by the Authority;

d)

) 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 terms of flexible entry and
exit between technical-vocational and higher education programs in the post-secondary
school educational system;

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;

8)

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 Authority;

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;

)) nas 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
ii. skilled workers who have become highly competent in their trade or craft
as attested by industry

kj

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;

1) 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;

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

0)

training:

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;

@ 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;

1) 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;

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;

SECTION 4. 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) hereinafter referred to as DTESD.

: The DTESD shall be the primary policy formulation, planning, coordinating,
implementing, regulating and administrative entity of the Government for technical education and
skills development agenda.

ponte 5. Powers and Functions. - The DTESD shall have the following powers and
ictions:


Formulate and recommend national policies and guidelines and conduct in-depth studies
onall policy areas and options that will promote technical education and skills development
in consultation with the relevant stakeholders;

b) Assess, review, harmonize and coordinate all technical education and skills development
policies and programs to ensure overall consistency and implementation of the national
policies;

c) Organize and constitute various standing committees, subsidiary groups, or technical
working groups for efficient integration, coordination and monitoring of technical
education and skills development programs at the national, regional, and local levels;

4) Enter into, make, execute, perform and carry-out domestic and foreign contracts subject to
existing laws, rules and regulations;

e) 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;

f) Approve training standards and assessment packages as established and conducted by
private industries;

g) Establish and administer a system of accreditation of both public and private institutions;

h) Establish, develop and support institutions trainers’ training and/or programs;

i) 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;

j) Allocate resources for the programs and projects it shall undertake pursuant to the approved
National Technical Education and Skills Development (NTESDP);

k) Determine and approve systematic funding schemes such as the Levy and Grant scheme
for technical education and skills development purposes.

1) 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;

m) To 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;

n) Promulgate rules and regulations for the implementation of its policies and related laws;

and,
0) To perform such other functions as maybe needed to achieve its goals and objectives to the
fullest and as may be provided by this Act.

SECTION 6. Composition. - The DTESD shall be composed of the Office of the Secretary, and
the various bureaus, services, regional and provincial/district offices. The Office of the Secretary
shall house the Office of the DTESD Secretary, the Offices of the Undersecretaries, the Offices of
the Assistant Secretaries, and their immediate support stafT.

SECTION 7. Powers and Functions of the Secretary.

The Secretary shall have the following 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;

©) Represent and effectively advocates technical education and skills development (TESD)
concems in national and international bodies;

d) Establish TESD policies and standards for the effective, efficient and economical operation

of the DTESD, in accordance with the programs of the government;

Mobilize resources and ensures prudent utilization of and access to TESD investments and

incentives according to national development plans and priorities;

f) Designate and appoints officers and employees of the DTESD, excluding the
Undersecretary and Assistant Secretary, Regional Directors, in accordance with the Civil
Service Laws, rules and regulations;

2) Undertake consultations with other members of the Cabinet and officers of the government
relating to TESD concerns;

h) Advise the President 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;

k) Perform such other functions as may be authorized.

SECTION 8. Undersecretaries and Assistant Secretaries. - The Secretary shall be assisted by
four (4) Undersecretaries and four (4) Assistant Secretaries who shall be 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 area of responsibility.

SECTION 9. 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.

SECTION 10. 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.

SECTION 11. Regional Office — There shall established 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. 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;

©) 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.

SECTION 12. 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. The

Provincial/District office shall have the following functions;

a) Serve as secretariat to the Provincial Technical Education and Skills Development
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;

©) Review and recommends priority technical education and training programs within their
localities; and

4) Perform such other functions as may be authorized.

SECTION 13. 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 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 DTESD in accordance with the National
Technical Education and Skills Development Plan.

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);

©) Undertake entrepreneurship development program;

4) Conduct outreach programs in coordination with ROs/POs;

©) 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.

SECTION 14, Structure and Staffing Pattern, - Subject to the approval of the DBM, the
DTESD through the Secretary shall determine its organizational structure, staffing, pattern,


qualification standards, and placement of personnel in the DTESD shall be appointed in
accordance with the civil service law, rules, and regulations.

SECTION 15. 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.

SECTION 16. Consultants and 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.

SECTION 17. 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 of the Philippines 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;

©) 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 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.

SECTION 18. 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.

SECTION 19. 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.

SECTION 20. 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 Philippine Qualifications Framework (PQF), the DTESD shall
closely collaborate with the Professional Regulation Commission (PRC) as regards to the
assessment of technicians, master craftsman and technologists.

SECTION 21. 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.

SECTION 22. Assistance of 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.

SECTION 23. Accreditation and Regulation of Technical Education and Skills Development
Programs. - All technical education and skills development programs 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.

SECTION 24, Coordination of All Technical Education and Skills Development Schemes. — In
order to integrate the national technical education and skills development efforts, all technical
education and skills 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.

SECTION 25. 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 fulfilment of the DTESD’s
objectives.

SECTION 26. 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, 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.

SECTION 27. 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.

SECTION 28. 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) Anannual 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;

©) 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:

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.

SECTION 29. 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.

SECTION 30. 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.

SECTION 31. 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.

SECTION 32. Transitory Provision. — The Technical Education and Skills Development
(TESDA) created under Republic Act No. 7796 is hereby abolished; and all personnel and
resources therein shall be transferred to the DTESD.

The TESDA Board created under Section 6 and 7 of R.A. 7796 is likewise abolished.

hy ool ‘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.

SECTION 33. 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.

SECTION 34. 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.

SECTION 35. 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.

SECTION 36. Repealing Clause. - All laws, decrees, executive orders, rules and regulations,
issuances of parts thereof inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SECTION 37. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved.