Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL No. 4417

Introduced by Representative JOEY SARTE SALCEDA

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

EXPLANATORY NOTE

The creation of the Technical Education and Skills Development Authority (TESDA)
paved the way in providing millions of Filipnos with 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. In 2018 alone, there are more than 2 million who benefitted in the agency’s various
Technical and Vocational Education and Training (TVET) program.

For twenty-five (25) years, after the passage of Republic Act No. 7796 or the TESDA
Act which was enacted on August 25, 1994, continues to be in the forefront in ensuring that
Filipinos have access to technical education and skills development (TESD) that is not only
relevant and efficient, but also accessible and of high quality. Despite many progress and lives
changed, the agency is facing various and enormous challenges in order to adapt to the ever-
changing local and global environment that the organization needs to focus on. In order to meet.
world standards, TESDA must address the need for modern facilities and equipment to level
with the requirements in addressing the challenges created by the 4IR (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. These
are among the limitations to what TESDA can do which can be ultimately addressed if the
agency will be elevated into a line Department of the government.

This proposed Bill seeks to repeal R.A. 7796 or the TESDA Act of 1994 and to reinforce
the powers and organizational function of TESDA by turning it into a Department. The
proposed Department shall become 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.


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. This measure is made in the interest of the Filipinos who
wants to regain new skills and improve their well-being, and will be achieved in greater
capacity 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.

JOEY SARTE SALCEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. 4417

Introduced by Representative JOEY SARTE SALCEDA

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;

Encourage critical and creative thinking by disseminating the scientific and

technical knowledge base of manpower development programs;

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;

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

f) Inculcate desirable values through the development of moral character with

emphasis on work ethics, self-discipline, self-reliance and nationalism;

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;

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) 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.

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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;

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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 for apprenticeable by the Authority;

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

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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;

Middle-Level Manpower refers to those:
i. 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

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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

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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;

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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;

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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,

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.

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

a)

b)

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4)

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;

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

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

private industries;

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;

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

and,

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.

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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 staff.

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;

c) Represent and effectively advocates technical education and skills development

(TESD) concerns in national and international bodies;

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 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;

d)


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, 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;

c) Deploy policies to stakeholders;

d) Manage TESD resources in the region;

¢) 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

4d) 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);

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.

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. - \n
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

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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) 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

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

10


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.

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.

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