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

HOUSE OF REPRESENTATIVES
H.No. 1425

Introduced by Representative Raul C. Tupas

EXPLANATORY NOTE

ANACT PROVIDING FOR THE CREATION OF THE DEPARTMENT OF TECHNICAL
EDUCATION TRAINING AND CERTIFICATION (DepTeTC), DEFINING ITS POWERS
AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AMENDING REPUBLIC
ACT NO. 7796, OTHERWISE KNOWN AS THE TESDA ACT OF 1994, AND FOR
OTHER PURPOSES

The Technical Education and Skills Development Authority (TESDA) was
established through the enactment of Republic Act No. 7796 otherwise known as the
“Technical Education and Skills Development Act of 1994” with the aim to encourage the
full participation of and.mobilize the industry, labor, local government units and technical-
vocational institutions in the skills development of the country's human resources.

The said Act integrated the functions of the former National Manpower and Youth
Council (NMYC), the Bureau of Technical-Vocational Education of the Department of
Education, Culture and Sports (BTVE-DECS) and the Office of Apprenticeship of the
Department of Labor and Employment (DOLE) as a result of a national review of the state
of Philippine education and manpower development which was undertaken by the
Congressional Commission on Education back in 1994

TESDA has been the leading authority managing technical skills education in the
Philippines. Its major thrust is the formulation of a comprehensive development plan for
middle-level manpower based on the National Technical Education and Skills
Development Plan that includes apprenticeship, dual training system and other similar
schemes,

Under the new administration, TESDA is repositioning technical vocational
education and training (TVET) towards a two-pronged strategy: TVET for global
competitiveness and TVET for social equity. However, these strategies may not be realized
if educational equipment and materials are still among the primary problems that prevent
the progress of TESDA. More importantly, monitoring and evaluation is considered the
weakest point of TESDA. Presently, TESDA does not have power to impose sanctions and
the Training Regulations (TR) of the agency is being implemented as mere guidelines.

Itis imperative to review R.A. No. 7796 and empower the TESDA with the status of
an executive department. This bill seeks to create the Department of Technical Education


Training and Certification. The TESDA shall be subsumed under the said new Department.
This new Department shall be the primary policy formulation, planning, coordinating,
implementing, regulating and administrative entity of the government for technical
education, training, and certification policies, plans. and programs. It shall now be headed
by a Secretary with four (4) Undersecretaries and four (4) Assistant Secretaries, There will
be regional offices headed by Regional Directors. The existing TESDA Secretariat would
be enlarged and empowered more.

With this proposed measure, the TESDA will be strengthened as an institution. It
will have a better capacity to fulfill its mandate as the leading partner in the development
of the Filipino workforce with world-class competence and positive work values.

The immediate passage of this bill is earnestly sought.

RAUL -boabire TUPAS


10

Be

12

13

14

16

Ww

18

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

HOUSE OF REPRESENTATIVES
H.No. £425

Introduced by Representative Raul C. Tupas

AN ACT PROVIDING FOR THE CREATION OF THE DEPARTMENT OF TECHNICAL
EDUCATION TRAINING AND CERTIFICATION (DepTeTC), DEFINING ITS POWERS
AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AMENDING REPUBLIC
ACT NO. 7796, OTHERWISE KNOWN AS THE TESDA ACT OF 1994, AND FOR
OTHER PURPOSES

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 Training and Certification (DepTeTC).”

SECTION 2. Declaration of Policy and Objectives. - It is hereby declared the
policy of the State to provide relevant, accessible, 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.

The State shall encourage active participation of various concerned sectors, public
as well as private tech-voc institutions 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.

Itis the goal and objective of this Act to:

a. Promote and strengthen the quality of technical education and training

programs to attain global competitiveness;


10
a
12
13

14

2a
22
23
24
25
26
27
28
29
30
31
32

33

b. Focus technical education and training and certification on meeting the
changing demands for quality manpower particularly in support of the
industrialization 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 in technical education and skills development and training systems;

e. Inculcate desirable values through the development of moral character with
emphasis on work ethic, self-discipline, self-reliance and nationalism;

f. Strongly support the implementation of the Philippine Qualification Framework
(E.O. 83s, 2012), the Ladderized Education Program (R.A. 10647) and the Dual
Technical Training System (R.A. 7686);

g. Maximize returns to the country's investment in technical education and training
through an efficient graduates’ employment facilitation program within the
framework of the national employment service network system; and

h. 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 Training opportunities;

SECTION 3. Definition of Terms. — As used in this Act:

a. "Skill" shall mean the acquired and practiced ability to carry out a task or job;

b. "Skills Development" shall mean 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;


10
a
12
13

14

18
19
20
2a
22
23
24
25
26
27
28
29
30
31
32

33

c. “Technical Education” shall refer to the education process designed at upper

secondary and lower tertiary levels, aligned with the levels of the POF, 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" shall mean 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;

e, "Middle-Level Manpower" refers to those:

f.

who have acquired practical skills and knowledge through formal or non-
formal education and training equivalent to at least a secondary education
but preferably at post-secondary education with a corresponding degree of
diploma; or

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

"Private Enterprises" 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;

. "Trainers" shall mean persons who direct the practice of skills towards

immediate improvement in some task;

. “Training” is teaching or developing oneself or others, any skills and knowledge

that relate to specific useful competencies;


14
15
16
7
18
19
20
aa
22
23
24
25
26
27
28
29
30
31
32

33

"Trainors/trainers" shall mean persons who provide training to 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.

"Trainees" shall mean persons who are participants in a vocational,
administrative or technical training program for the purpose of acquiring and
developing job-related skills;

. "Apprenticeship" training within employment with compulsory related theoretical

instruction involving a contract between an apprentice and an employer on an
approved apprenticeable occupation;

"Apprentice" is a person undergoing training for an approved apprenticeable
occupation during an apprenticeship agreement;

"Apprenticeship Agreement’ is 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” is an occupation officially endorsed by a tripartite

body and approved for apprenticeable by the Authority;

"Learners" 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;

. "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;


10
cn
12
13
14
15

16

20
21
2
23
24
28
26
27
28
29
30
31

32

“Dual System/Training" refers to a delivery system of quality technical and
vocational education which requires training to be carried out alternately in two
venues: in-school and in the production plant. In- school training provides the
trainee the theoretical foundation, basic training, guidance and human
formation, while in-plant training develops his skills and proficiency in actual

work conditions as it continues to inculcate personal discipline and work values;

"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.

. "Leading Technology Centers" 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.

"Philippine Qualifications Framework (PQF)" is a 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.

. "Ladderized education" refers to the harmonization of all education and training

mechanisms that allow students and workers to progress between technical-
vocational programs 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 system.


10

2
13
14

15

7
18
19
20
21
22
23
24
25
26
27
28
29
30
31

32

SECTION 4. Creation of a Department of Technical Education and Training
(DepTeTC). - There is hereby created a Department of Technical Education and Training
(DepTeTC), hereinafter referred to as the Department, which shall replace and absorb the
Technical Education and Skills Development Authority (TESDA) created under Republic
Act No. 7796, as amended, and implement the policies of this Act.

SECTION 5. Jurisdiction of the Department. - The Department shall be the
primary policy formulation, planning, coordinating, implementing, regulating and
administrative entity of the Government for technical education, training and certification
agenda.

SECTION 6, Powers and Functions. - Other than the powers and functions of the
TESDA Board under Section 8 of R.A. 7796, the Department shall have the following
powers, functions and responsibilities:

a. Formulate and recommend national policies and guidelines and conduct in-
depth studies on all policy areas and options that will promote technical
education, training, and certification in consultation with the relevant
stakeholders;

b. Assess, review, harmonize and coordinate all technical education, training, and
certification 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
technical education, training, and certification 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.


a

12

13

14

15

16

7

18

19

20

21

22

2B

24

25

26

27

28

29

30

31

32

33

. 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;

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;

Establish, develop and support institutions’ trainors’ training and/or programs;

Exact reasonable fees and charges for such tests and trainings conducted and
retain such earnings for its own use, subject to guidelines promulgated by the
Department;

Allocate resources for the programs and subjects it shall undertake pursuant to
approved National Technical Education and Training Plan;

Determine and approve systematic funding schemes such as the Levy and
Grant scheme for technical education and training 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 Department is hereby authorized to set aside a portion of its

appropriation for its operation; and

. Promulgate rules and regulations for the implementation on its policies and

related laws;

. To perform such other functions as maybe needed to achieve its goals and

objectives fo the fullest and as may be provided by this Act.


1

10
1
12
13
14

15

21
22
23
24
25
26
27
28
29
30
31

32

SECTION 7. Power to Review and Recommend Action. - The Department shall
review and recommend action to concerned authorities on proposed technical assistance
programs and grants-in-aid for technical education or training, or both, 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,

SECTION 8. Composition. - The Department shall be headed by a Secretary. The
Department proper shall be composed of the Office of the Secretary, the Offices of
Undersecretaries, and Assistant Secretaries and Regional and Assistant Regional
Directors.

The TESDA Board created under Sections 6 and 7 of R.A. 7796 is hereby
abolished.

SECTION 9. Secretary of Technical Education, Training and Certification. —
The Secretary shall be appointed by the President of the Republic of the Philippines,
subject to confirmation by the Commission on Appointments. The Secretary shall have the
following functions:

a. Provide executive direction and supervision over the entire operations of the

Department and its attached agencies;

b. Establish policies and standards for the effective, efficient and economical
operation of the Department, in accordance with the programs of the
government;

c. Review and approve request for financial and manpower resources of all
operating offices of the Department;

d. Designate and appoint officers and employees of the Department, excluding the
Undersecretaries and Assistant Secretaries, Regional and Assistant Regional
Directors, in accordance with the Civil Service laws, rules and regulations;


10
a
12
13
14
15
16

7

20
2a

22

24
25
26
27
28
29
30
31

32

e. Coordinate with LGUs, other government agencies and public and private
interest groups, including non-government organizations (NGOs) and people's
organizations (POs) on Department policies and initiatives;

f. Prepare and submit to the President through the Department of Budget and
Management (DBM) an estimate of the necessary expenditures of the
Department during the next fiscal year.

g. Undertake consultations with other members of the Cabinet and officers of the
government relating to technical education, training, and certification
development concerns;

h. Advise the President on the promulgation of executive and administrative orders
and formulation of regulatory and legislative proposals on matters pertaining to
technical education, training, and certification development;

i, Promulgate rules, regulations and other issuances in carrying out the
Department's mandate, objective, policies, plans, programs and projects; and

j. Perform such other functions as may be provided by law or assigned by the
President.

SECTION 10. Undersecretaries. - The Secretary shall be assisted by four (4)
Undersecretaries who shall be appointed by the President upon recommendation of the
Secretary: Provided, That two (2) of the Undersecretaries shall be career officers.

SECTION 11. Assistant Secretaries. - The Secretary shall be assisted by four (4)
Assistant Secretaries who shall be appointed by the President upon recommendation of
the Secretary: Provided, That two (2) of the Assistant Secretaries shall be career officers.

SECTION 12. Qualifications. - No person shall be appointed Secretary,
Undersecretary, or Assistant Secretary of the Department unless he or she is a resident of


14
15
16
7
18
19
20
2a
22
23
24
25
26
27
28
29
30
31
32

33

the Philippines, of good moral character, of proven integrity, and with at least seven (7)

years of relevant experience.

SECTION 13. Bureaus, Services, and Personnel. - The Department in addition

to the offices ofthe Secretary, Undersecretaries and Assistant Secretaries shall be

composed of the following Bureaus/Services to 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 a Director IV.

A. Planning Bureau (P.B.)

vi.

vii.

viii,

Designs and establishes planning processes and methodologies which
will particularly enhance the efficiency of resource allocation decisions
within the technical education and training sector;

Orchestrates the formulation of the National Technical Education and
Training Plan/Sectoral Plan/Regional/Provincial and maintains annual
periodic review and updating of the plans;

Orchestrates legislative liaisoning and coordination;

Maintains existing and establishes new frameworks to optimize the roles
of the sub-national TET Committees;

Conducts fora, researches, studies and develops labor and education
and training market information and knowledge management systems
for effective and efficient planning and policy making within the sector;
Prepares and issues Labor Market Intelligence Reports (LMIR) on a
regular basis;

Conducts Impact Evaluation Studies (IES) of Technical Education
Training and Certification programs;

Initiates and mobilizes external TETC financing from local and
international bodies in support of the broad investments and
development programs under the NTETP and the corporate plan;
Designs and develops special projects for foreign assistance

B. Partnerships and Employment Facilitation Bureau (PEFB)

10


10
a
12
13
14
15
16
a7
18
19
20
2a
22
23
24
25
26
27
28
29
30
31
32

33

vi

vii.

vill

Establishes and maintains effective and efficient institutional arrangements
with partners and stakeholders to provide direct participation in the various
functions of the Department and access to TETC programs and services;
Develops and implements placement schemes designed for the effective
utilization of TET graduates either through wage and self-employment using
partnership and linkages with various employers and industries within the
framework of the national employment service network;

Provides technical assistance and training support to the network of
DepTETC employment facilitation centers all over the country;

Establishes and maintains linkages with industry groups, employers,
workers, academe, civil society organizations/NGOs, NGAs, LGUs, basic
sectors and national and international networks and organizations related to
TE and T;

Conducts studies on Public-Private Partnerships (PPP) and similar
arrangements in aid of policy making;

Engages partners/stakeholders in the identification and prioritization of the
skills needs of the basic sectors for skills training and employment
opportunities;

Develops and administer systems and procedures in the monitoring and
evaluation of programs related to partnerships, linkages and placement
services;

Performs such other functions as may be authorized.

C. Incentives and Scholarship Bureau

ii.

Develops and implements incentive schemes and packages to encourage
the participation of employers and workers in technical education and
Training in industry;

Develops and implements scholarship and grant packages designed to
provide access to the Department's clientele particularly the unemployed,
underemployed, the working poor and the marginalized;

Develops and administer systems and procedures in the monitoring and
evaluation of programs related to incentive and scholarship administration;

u


10
uw
12
13

14

23
24
25
26
27
28
29
30
a1
32

33

iv.

Performs such other functions as may be authorized.

D. National Institute for Technical Education and Training (NITET)

vi.

vii.

vil,

Recommends policies and guidelines for the maintenance and enhancement
of the efficiency and effectiveness in the management and operations of the
TETC delivery in schools, centers, enterprises and communities within
acceptable standards set;

Serves as the technology research and development arm of the government
in the field of TET;

Develops, orchestrates the implementation of continuing development
programs for trainers, teachers and instructors, partners/stakeholders in the
TET sector;

Develops and orchestrates the implementation of a national career guidance
program and system;

Conducts studies and researches, formulates policies and guidelines for the
Optimum/sustainable utilization of existing specialized _ training
centers/institutions (e.g. KorPhil, TTCTCE, TWC, LSI and other centers of
technical excellence;

Identifies appropriate venues, from the network of public and private TET
providers, as laboratory and pilot-testing/incubation sites in the development
of training regulation, competency standards, assessment tools, curricula,
learning materials, mock-ups and simulators;

Promote and conduct an annual national skills competition and handles the
participation of the country in international skills tilts;

Performs such other functions as may be authorized

E. Qualification and Standards Bureau (QSB)

Conducts research and development on various occupational areas in order
to recommend policies, rules and regulations for effective and efficient
competency standardization, assessment and certification system in the

country;

12


12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31

32

fli,

vi.

vii.

Establishes and implements a system of accrediting experts from private
enterprises, group of workers’ associations and public institutions for the
development/updating of competency standards, curriculum exemplars;

In collaboration with industry bodies, develops and establishes a national
system of competency standardization and development for TET in the
country;

Facilitates the development, validation and evaluation of competency
standards in identified appropriate venues from the network of public and
private TET providers;

Maintains the Philippine TVET Qualifications Framework (PTQF) as part of
the Philippine Qualifications Framework (PQF);

Responsible for international benchmarking and comparability of standards
with other economies/countries; and

Performs such other powers and functions as may be authorized.

F. Accreditation and Certification Bureau (ACB)

ili,

vi

vii.

Develops, maintains and manages the national assessment and certification
program, systems and procedures;

Establishes and maintains the implementation of a quality-assured system of
accrediting trainers, assessors and assessment centers in partnership with
industries, training centers/institutions;

Establishes and maintains a system of registering, accrediting TET
programs/providers in the schools, centers, enterprises and communities;
Undertakes compliance review and rating system of TESD programs
implemented by various TVIs;

Keeps custody of pertinent assessment and certification records and
maintains a registry of Certified Workers, Trainers, and Accredited
Competency Assessors and Accredited Competency Assessment Centers;
Maintains a compendium of registered TESD programs;

Conduct researches/studies to ensure quality delivery and implementation of
assessment and certification and program registration;

13


10
cu
12
13
14
15

16

19
20
2
22
23
24
25
26
27
28
29
30
31
32

33

viii,

G.

Develops mechanisms to continuously ensure integrity of the assessment and
certification and program registration; and
Performs such other functions as may be authorized

Administrative Service (AS)

Provides overall policies, systems, programs and guidelines in the area of
human resource management and development, procurement management,
legal management, building and facilities maintenance, records management
and cash management;

Establishes a monitoring and reporting system on administrative services;
Orchestrates the implementation, review and redevelopment of HRD Plan in
support of the Corporate Plan and the NTTDP;

Leads in the establishment and implementation of integrated HR systems;
Provides administrative, general and legal services; and

Performs such other functions as may be authorized.

Financial and Management Service (FMS)

Orchestrates and supports the implementation of the agency quality
management systems (QMS);

Provides overall policies, systems, programs and guidelines on the
management and utilization of Department's financial resources;
Establishes a monitoring and reporting system on the management and
utilization of Department's financial resources; and

Performs such other functions as maybe authorized.

Internal Control and Quality Management Service

Develops and implements internal performance and process standards to
ensure personnel and organizational efficiency and effectiveness;
Monitors and ensure the maintenance of the ISO status of the Department

and/or its sub divisions;

14


15
16
Ww
18
19
20
aa
22
23
24
25
26
27
28
29
30
31

32

iii, Performs other functions as maybe authorized;

SECTION 14. Regional Offices. - The Regional Offices shall be headed by
Regional Directors with the rank and emoluments of Director IV to be appointed by the
President. The Regional Offices shall be under the direct control of the Secretary and shall

have the following functions:

a. Directs implementation of technical education, training, and certification
programs, projects and related activities in the region;

b. Develops and recommends technical education, training, and certification
programs for local level implementation within set policies;

c. Deploys policies to stakeholders;

d. Manages technical education, training, and certification resources in the region;

e. Plans and implements policy inputs; and

f. Performs other functions as may be authorized.

SECTION 15, The Provincial / District Offices. - The Provincial/District Offices
shall be headed by Provincial/District Directors who shall have the rank and emoluments

of a Director Ill. The Provincial Offices shall have the following functions:

a. Serves as secretariat to the Provincial technical education and training

Committees;
b. Provides technical assistance to the LGUs for effective supervision,

coordination, integration of all technical education and training programs within

their localities;

15


6
7

8

10
SE
2
43
14
15
16
7
18
19
20
24
22
23
24
25
26
27
28
29
30
a1

32

c. Reviews and recommends priority technical education and training programs
within their localities; and

d. Performs such other functions as may be authorized

SECTION 16, Schools and Centers. - The Technical Education and Training
delivery of the Department composed of leading technology centers, demonstration as well
as regular Institutions shall have the following functions:

a. Provide demonstration of leading training technology or regular technical
education and training programs relevant to the needs of the economy as well
as specific groups considered as marginalized and/or vulnerable in accordance
with the national technical education, training, and certification agenda;

b. Conducts applied research and development programs and provides extension
services in coordination with ROs/POs;

c. Conducts outreach programs in coordination with ROs/POs;

d. Initiates resource and income-generation programs; and

e. Performs such other functions as may be authorized

SECTION 17. Compliance with the Salary Standardization Law. - The
compensation and emoluments of the officials and employees of the Department shall be
in accordance with the salary standardization law and other applicable laws under the
national compensation and classification plan.

SECTION 18. Consultants and Technical Assistance, Publication and
Research. - In pursuing its objectives, the Department 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 skills

16


10

cn

13
14
15
16
v7
18
19
20
21
22
23
24
25
26
27
28
29
30
31

32

development. It shall avail itself of the services of other agencies of the Government as
may be required.

SECTION 19. Formulation of a Comprehensive Development Plan for Middle-
Level Manpower. - The Department shall formulate a comprehensive development plan
for middle-level 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 Department
shall direct through its offices to call on public agencies, the private sector and the
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 skills development plan in line with the
national technical education and training plan, The budget to support such plans
shall be subject to review and endorsement by the Department to the DBM. The
Department shall evaluate the efficiency and effectiveness of agencies skills
development program and schemes to make them conform to the quantitative

7


10
crt
12
13

14

21
22
23
24
25
26
27
28
29
30
a1
32

33

and qualitative objectives of the national technical education and skills

development plan.

SECTION 20. Technical Education and Training Committees. - The
Department shall establish Technical Education and Training Committees at the regional
and local levels to coordinate and monitor the delivery of all training activities by the public
and private sectors. These committees shall likewise serve as the Technical Education
and Training Development Committees of the Regional and local development councils.
The compositions of the Technical Education and Training Committees shall be

determined by the Secretary of DepTeTC.

SECTION 21. Apprenticeship Program. - The Department shall promote
apprenticeship 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 22. Technical Education and Training Centers. - The Department
shall establish and/or cause the establishment of a network of national, regional and local
skills training centers for the purpose of promoting skills development. This network shall
include leading training technology centers, skills 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
Training centers shall be administered and operated under such rules and regulations as
may be established by the Department in accordance with the National Technical
Education and Training Plan.

SECTION 23. Establishment and Administration of National Training
Standards, - There shall be national training standards to be established by Department-
accredited industry committees. The Department 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 to be set by the Department. The Secretary shall determine
the occupational trades for mandatory certification. All certificates relating to the national

18


10
ve
12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32

33

training standards and certification system shall be issued by the Department through its
Regional and Provincial Offices. In consonance with the Philippine Qualification
Framework (PQF), the Department shall closely collaborate with the Professional
Regulation Commission (PRC) as regards to the assessment of technicians, master
craftsman and technologists.

SECTION 24, Administration of Training Programs. - The Authority shall design
and administer training programs and schemes the 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
teacher's trainors' training, skills training for entrepreneur development and technology
development, cost-effective training in occupational trades and related fields of
employment, and value development as an integral component of all skills training
programs.

SECTION 25. Assistance to Employers and Organizations. - The Authority shall
assist any employer or organization engaged in skills training schemes designed to attain
its objectives under rules and regulations which the Authority shall establish for this
purpose.

SECTION 26. Accreditation and Regulation of Technical Education and
Training Programs. - All technical education and training programs shall be duly
accredited by the Department before it is offered to the public by any public, private entity
or non-government organization. Noncompliance with the accreditation requirements of
the Department shall be form part of the bases for the possible suspension or cancellation
of the entities’ license to operate issued by competent authorities.

SECTION 27. Coordination of All Skills Training Schemes - In order to
integrate the national skills development efforts, all technical education and skills training
schemes as provided for in this Act shall be coordinated with the Department particularly
those having to do with the setting of trade skills standards. For this purpose, existing
technical education and skills training programs in the Government and in the private
sector, specifically those wholly or partly financed with government funds, shall be reported

19


10
1
12
13
14

15

17
18
19
20
21
22
2B
24
25
26
27
28
29
30
31
32

33

to the Department which shall assess and evaluate such programs to ensure their
efficiency and effectiveness. Noncompliance with the above mentioned reportorial
requirements could disqualify erring entities for any form of government assistance in field
technical education and training.

SECTION 28. Enterprise Based Partnerships and Linkages. - The Department
shall establish effective and efficient institutional arrangements with industry bodies and
such other aggrupations or associations to provide direct participation of employers and
workers in the design and implementation of skills development schemes, trade skills
standardization and certification and such other functions in the fulfillment of the
Department's objectives.

SECTION 29. Inclusive Training Opportunities. - The Department shall likewise
design and implement a delivery system for community based technical education and
training 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 30. Skills Olympics. - To promote quality skills development in the
country and with the view of participating in international skills competitions, the
Department, with the active participation of private industries, shall organize and conduct
annual National Skills Olympics. The Department shall promulgate the necessary rules
and guidelines for the effective and efficient conduct of Annual National Skills Olympics
and for the country's participation in internationals skills
Olympics.

SECTION 31. The TET Development Fund. - A Technical Education and Training
Development Fund is hereby established, to be managed/administered by the Department,
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:

20


10
uu
12
13
14
15

16

20
2a
22
23
24
25
26
27
28
29
30
31

32

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 should be part of the study on financing in
conjunction with letter (D) of Section 34;

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

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 administration.

The Secretary shall appoint a reputable government-accredited investment
institution as fund manager, subject to existing government regulations.

SECTION 32. Technical Assistance, Incentives and Scholarship Grants. The
Department 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 33. 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 TET institutions. These Centers shall be financed and administered

2a


10
st
12
13
14
15
16
7
18
19
20
2a
22
23
24
25
26
27
28
29
30
31
32

33

by the Department but will form part of the National Employment Service Network of the
DOLE.

SECTION 34. Transfer of TESDA Secretariat. - The TESDA Secretariat created
under Section of R.A. 7996 shall comprise the manpower of the Department, 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 Department.

SECTION. 35. Structure and Staffing Pattern. - Subject to the approval of the
DBM, the Department shall determine its organizational structure, staffing pattern,
qualification standards, and placement of personnel in the Department, its division units,
services, and offices. Officers and employees of the department shall be appointed in

accordance with the civil service law, rules, and regulations.

SECTION. 36. 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 Executive Order No. 366, s. 2004: 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
and issuances.

SECTION. 37. Transition Period. - 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 and staffing pattern of the Department 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
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

2


10
1
12
13

14

18
19
20
2a
22
23
24
25
26
7
28

29

of the reorganization shall be paid their separation or retirement benefits under existing
laws.

SECTION. 38. Appropriation. - The amount needed for the initial implementation
of this Act shall be taken from the current fiscal year's appropriation of TESDA as specified
in Section 12 of this Act. Thereafter, the amount needed for the operation and maintenance
of the Department shall be included in the General Appropriations Act.

SECTION. 39. Implementing Rules and Regulations. - The Department 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. The Department shall submit to
concerned Committees of both Houses of Congress copies of the implementing rules and
guidelines within (30) days after its promulgation. Any violation of this Section shall render
the official/s concerned liable under R. A. No. 6713, otherwise known as the "Code of
Conduct and Ethical Standards for Public Officials and Employees" and other existing

administrative and/or criminal laws.

SECTION. 40. Separability Clause. - The provisions of this Act are hereby
declared to be separable, and in the event one or more such provisions are held
unconstitutional, the validity of the provisions shall not be affected thereby.

SECTION. 41. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, issuances or parts thereof inconsistent with the provisions of this Act are

hereby repealed or modified accordingly.

SECTION. 42. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) national newspapers of general circulation.

Approved,

23