Page | 1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. __________ 
__________________________________________________________________________ 
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  
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 much 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. 
July 1, 2022
8:00 am
643


Page | 2 
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 


Page | 1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
Nineteenth Congress 
First Regular Session 
HOUSE BILL NO. __________ 
__________________________________________________________________________ 
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 2022.” 
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;
643


Page | 2  
 
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; 
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; 
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 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-


Page | 3  
 
vocational and higher education programs, or vice-versa. It opens opportunities for 
career and educational advancement to students and workers. It creates a seamless 
and borderless education and training system that will allow transfers in terms of 
flexible entry and exit between technical-vocational and higher education programs 
in the post-secondary school educational system; 
 
g) Leading Technology Center refers to 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;  
 
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; 
 
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; 
 
l) 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; 
 
o) 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 


Page | 4  
 
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; 
 
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; 
  
r) 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; 


Page | 5  
 
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; 
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. 
l) 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,  
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;  


Page | 6  
 
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; 
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 be an 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; 
 


Page | 7  
 
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 


Page | 8  
 
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. 


Page | 9  
 
 
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 


Page | 10  
 
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 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 


Page | 11  
 
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,