Republic of the Philippines
HOUSE OF REPRESENTATIVE!
Constitution Hills, Quezon City \,

EIGHTEENTH CONGRESS
First Regular Session

House Bill No,_4309

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

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.

aw . OW,

ERIC OLIVAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 4383

Introduced by: REPRESENTATIVE ERIC L. OLIVAREZ

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;

f) 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 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.

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;

c) Apprenticeship Agreement refers to a contract wherein
a prospective employer binds himself to train the
apprentice who in turn accepts the terms of training
for a recognized apprenticeable occupation
emphasizing the rights, duties and responsibilities of
each party;

d) Apprenticeable Occupation refers to an occupation
officially endorsed by a tripartite body and approved
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


8)

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.

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;

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;

Levy Grant System refers to a legal contribution from
participating employers who would be beneficiaries of
the program (often as a percentage of the payroll)
which is subsequently turned over or rebated to
enterprises offering employee training programs;


j) Middle-Level Manpower refers to those:

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

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;

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;

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;

0)

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;

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.

SECTION 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 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;

d) 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;

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,

j


o) 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 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;

d) 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;

Undertake consultations with other members of the

Cabinet and officers of the government relating to TESD

concerns;

8


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;

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;

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

d) 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. - 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;

c) Accelerate the employment generation effort of the
government; and

d) Expand the range of opportunities for upward social
mobility of the school going population beyond the
traditional higher levels of formal education. All
government and non-government agencies receiving


financial and technical assistance from the government
shall be required to formulate their respective annual
agency technical education and training plan. The budget
to support such plan shall be subject to review 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 fulfillment 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;

c) Donations, grants, endowments, and other bequests or
gifts, and any other income generated by the DTESD.

The Secretary shall be the administrator of the fund, and
as such, shall formulate the necessary implementing


20

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


21

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


22

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.