Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

4702

HOUSE BILL NO.

Introduced by Representative FRANCISCO JOSE F. MATUGAS II

EXPLANATORY NOTE

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION
AND SKILLS DEVELOPMENT (“DTESD”), DEFINING ITS MANDATE,
POWERS AND FUNCTIONS, REPEALING FOR THE PURPOSE 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”). Section 2 of the law specifically mandated
TESDA to carry out the government's 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 said law, 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 become 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 police powers to impose sanctions and penalties to erring TESD
implementers.


This Bill seeks to repeal R.A. 7796 and to strengthen the powers and
organizational functions 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 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 and 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 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.

FRANCISCO JOSE F. MATUGAS II
Surigao de Norte, First District
(Siargao Island)


PP
Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4702

Introduced by Representative FRANCISCO JOSE F. MATUGAS II

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION AND
SKILLS DEVELOPMENT (“DTESD”), DEFINING ITS MANDATE, POWERS
AND FUNCTIONS, REPEALING FOR THE PURPOSE REPUBLIC ACT NO.

1196, 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.”

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) 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;


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

(a) 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) Develop the capacities of stakeholders to participate in the planning and
delivery of quality technical education and skills development systems;

1) 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), the Dual
Training System (R.A. 7686), and other laws, decrees and orders on education;

(h) 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

@) 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.

SEC. 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 apprenticeship by the DTESD created in this Act;

(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 or 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.

10) 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;

(g) Leading Technology Center refers to a center 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 a person hired as a trainee in semi-skilled and other
industrial occupations which are non-apprenticeable. Learnership programs must be
approved by the DTESD created under this Act;

() 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;

(i)  Middle-Level Manpower refers to those: (a) 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 or diploma; or (b) skilled workers who have become highly
competent in their trade or craft as attested by 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;

@ 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;

(0) 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;

(») 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;

(qa) 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;

() Trainer refers to persons who direct the practice of skills towards
immediate improvement in some task;

(8) 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 or training institutions and

industry


to ensure that appropriate skills and knowledge are provided by the educational
system.

SEC. 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, 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.

SEC. 5. Powers and Functions. - The DTESD shall have the following powers and
functions:

(a) 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;

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

(©. 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;

(@) 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;

(0) 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;


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

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

( 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 appropriations 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) Toperform such other functions as maybe needed to achieve its goals and
objectives to the fullest and as may be provided by this Act.

SEC. 6. Composition. - The DTESD shall be composed of the Office of the
Secretary, and the various bureaus, services, regional and provincial or 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 staff.

SEC. 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 the efficient and effective performance of its
functions to achieve the objectives and mandate of this Act;

(c) Represent and effectively advocate technical education and skills
development (TESD) concerns in national and international bodies;

(4) Establish TESD policies and standards for the effective, efficient and
economical operation of the DTESD, in accordance with the programs of the

government;


(e) Mobilize resources and ensure prudent utilization of and access to TESD
investments and incentives according to national development plans and priorities;

(0) Designate and appoint officers and employees of the DTESD, excluding
the Undersecretary, Assistant Secretary, and Regional Directors, in accordance with
the 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 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, objectives, policies, plans, programs and projects;

Direct and manage the implementation of DTESD’s programs and services;
and

(k) Perform such other functions as may be authorized,

SEC. 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 areas of
responsibility.

SEC. 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.

SEC. 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.

SEC. 11. Regional Offices. - There shall be established, a Regional Office in each
region of the country to be headed by a 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 recommend TESD programs for local level implementation
within set policies;

(© Deploy policies to stakeholders;

(@) | Manage TESD resources in the region;

(e) Plan and implement policy inputs;

( Monitor and evaluate program implementation; and

(g) Perform such other functions as may be authorized.

SEC. 12. The Provincial or District Offices - The Provincial or District Office shall be
headed by a Provincial or District Director who shall have the rank and emoluments of
a Director III. The Provincial or District Office shall have the following functions:

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

(b) Provide technical assistance to the local government units for effective
supervision, coordination and integration of all technical education and training
programs within their localities;

() Review and recommend priority technical education and training
programs within their localities; and

(ad) Perform such other functions as may be authorized.

SEC. 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 TESD centers for the purpose of promoting
TESD. 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
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 provide
extension services in coordination with Regional Offices (ROs) or Provincial Offices
(POs);

© Undertake entrepreneurship development program;


(a) Conduct outreach programs in coordination with ROs/POs;

(©) Provide job linkages;

() Provide assessment and certification;

(g) Devise mechanisms for sustainable operation and development;

(bh) Monitor and evaluate program implementation; and

(i) Perform such other functions as may be authorized.

SEC. 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. Personnel in the
DTESD shall be appointed in accordance with civil service laws, rules, and regulations.

SEC. 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 classification plan.

SEC. 16. Consultants and Technical Assistance, Publication and Research. - In
pursuit of its objectives, the DTESD is hereby authorized to set aside a portion of its
appropriations 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. 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 policy 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, trai
country within the framework of the National Development Plan. The DTESD shall,
through its offices, call on public agencies, the private sector and academe to assist in

ing, and certification for the entire

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, relevance and social accountability of technical
education and training;

(©) Accelerate the employment generation effort of the government; and

(@ 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 NTESDP.

SEC. 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 policies, programs and projects. 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. 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.

SEC. 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”) with
regard to the assessment of technicians, master craftsmen and_ technologists.


SEC. 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.

SEC. 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.

SEC. 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.

SEC. 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
TESD 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. 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

ll


development schemes, competency standardization and certification and such other
functions in the fulfilment of the DTESD’s objectives.

SEC. 26. Inclusive Training Opportunities. - The DTESD shall likewise design
and implement a delivery system for community based TESD 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.

SEC. 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.

SEC. 28. The TESD Development Fund. - A Technical Education and Skills
Development Fund is hereby established, to be managed and administered by the
DTESD, the income of 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) Aone-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;

() 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

12


(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. 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.

SEC. 30. Placement Centers. - There shall be established a network of placement
centers or PLACERS in all the Provincial or 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. 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 of TESDA or 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. 32. Transitory Provision. — The Technical Education and Skills
Development Authority (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.

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. 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.

SEC. 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.

SEC. 85. 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. 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.

SEC. 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,