HOUSE OF REPRESENTATIVES
Quezon City
Nineteenth Congress
First Regular Session
HOUSE BILL NO._________
Introduced by Rep. Bernadette Herrera-Dy
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 THEREOF
Explanatory Note
It has been twenty-five (25) years since the Technical Education and Skills
Development Authority (TESDA) was created by virtue of Republic Act 7796. It is
the government agency tasked to manage and supervise technical education and
skills development (TESD) in the Philippines. It replaced and absorb the National
Manpower and Youth Council (NMYC), the Bureau of Technical and Vocational
Education
(BTVE)
and
the
personnel
and
functions
pertaining
to
technical-vocational education in the regional offices of the Department of
Education, Culture and Sports (DECS), and the apprenticeship program of the
Bureau of Local Employment of the Department of Labor and Employment
(DOLE).
With the changing times, there is a need for government to adapt. Since
TESDA manages and implements technical vocational education and training
(TVET) programs, it also has to keep up with the demands of different industries.
Earlier this year, TESDA prompted to increase its budget appropriation. With this,
TESDA Director-General Isidro Lapena argued that "you cannot give a job or a
livelihood without going through training." TESDA's mandate is relevant since
skills and training are essential to the workforce. To properly support such relevant
activities, there is a need to revamp the system. By elevating the authority into a
department, adequate budgetary support, personnel, and resources will be provided
to fUrther develop the projects and programs of TESDA.
July 6, 2022
8:52 am
1389


This measure seeks to repeal R.A. 7796 or the TESDA Act of 1994 and
transitions the authority into a department to strengthen the powers and
organizational function of TESDA. 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. The department shall also
have Bureaus, Service Offices, and Regional/Provincial/District Offices. The
proposed department 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.
Despite the abolishment of TESDA, all personnel and resources shall be
transferred to the proposed department. It shall undergo reorganization under
Republic Act No. 6656, otherwise known as the Reorganization Law. TESDA's
personnel shall continue to perform their respective duties and responsibilities and
receive their corresponding salaries and benefits until such time when the
organizational structure of the proposed department has been approved. It is seen
that the functions and capacity of TESDA will be enhanced once it becomes a
separate agency. Power and resources shall be centralized and a better form of
jurisdiction shall take place.
It is the duty of the state to provide access to relevant opportunities to the
country's workforce through technical education and skills development. To be
globally competitive and labor efficient, there is a need to centralize all efforts and
resources to manage and develop the country's labor force. To this end, the state
shall pursue a policy 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 thereof.
The passage of this measure is earnestly sought.
BERNADETTE HERRERA-DY


HOUSE OF REPRESENTATIVES
Quezon City
Nineteenth Congress
First Regular Session
HOUSE BILL NO._________
Introduced by Rep. Bernadette Herrera-Dy
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 THEREOF
Section 1. Short Title. This Act shall be known as the "Department of Technical
Education and Skills Development (DTESD) Act."
Section 2. Declaration ofPolicy. 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 workforce
responsive to and in accordance with Philippine development goals and priorities and
the National Technical Education and Skills Development Plan (NTESDP) 2018 -
2022. 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;
1389


b) Focus technical education and skills development on meeting the changing
demands for quality workforce 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 workforce 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;
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. For the purpose of this Act, the following terms will
mean:
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 bind 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.
e) Dual Training System - refers to an instructional delivery system of technical
and vocational education and training that combines in-plant training and in-
school
training
based
on
a
training
plan
collaboratively
designed
and
implemented by an accredited dual system educational institution/training center
and accredited dual system agricultural, industrial and business establishments
with prior notice and advice to the local government unit concerned. Under this
system,
said
establishments
and
the
educational
institution
share
the
responsibility of providing the trainee with the best possible job qualifications,
the former essentially through practical training and the latter by securing an
adequate level of specific, general and occupation-related theoretical instruction.
The word "dual" refers to the two parties providing instruction: the concept
"system" means that the two instructing parties do not operate independently of
one another, but rather coordinate their efforts.
f) Ladderized education - refers to the harmonization of all education and training
mechanisms that allow students and workers to progress between technical-
vocational and


higher education programs, or vice- versa. It opens opportunities for career and
educational advancement to students and workers. It creates a seamless 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 workforce 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 Workforce - 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 earners 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 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 - 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. Adoption and Application of the National Technical Education and Skills
Development Plan (NTESDP) 2018 — 2022. This Act shall be in line with the National
Technical Education and Skills Development Plan (NTESDP) 2018 - 2022. The aim of
NTESDP is to galvanize and strengthen the TVET sector through a Two-Pronged
Strategic Thrust:
(1) Global Competitiveness and Workforce Readiness; and
(2) Social Equity for Workforce Inclusion and Poverty Reduction.
All appropriate actions and measures as well as revisions in the national development
plan in order to cater to the provisions of this Act shall be stipulated in the
Implementing Rules and Regulations of this Act.


Section 5. Creation of the Department of Technical Education and Skills Development.
In line with the government's actions towards the development of the country's technical
education and skills development, a Department of Technical Education and Skills
Development (DTESD) shall be created, hereinafter referred to as DTESD.
Section 6. Mandate. 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 7. 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 workforce 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) 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) 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 8. 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 9. 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;
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 10. Powers and Functions of Undersecretaries and Assistant Secretaries. The
Secretary shall be assisted by four (4) Undersecretaries and four (4) Assistant Secretaries
who shall be appointed by the President upon recommendation of the Secretary:
Provided, that the two (2) Undersecretaries and the two (2) Assistant Secretaries shall be
career officers. The Undersecretaries and Assistant Secretaries shall assist the Secretary
in the performance of his powers and functions to achieve the objectives of this Act. The
Undersecretaries and Assistant Secretaries shall be given specific areas of responsibility.
Section 11. Qualifications. 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. The Secretary must have at least ten (10) years
of relevant experience. The Undersecretary and Assistant Secretary must have at least
five (5) years relevant experience.
Section 12. 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 13. 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 14. 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 Ill. 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 15. 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 as provided in Section 4 of this Act.
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 16. Organizational Structure. 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 17. 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 18. Technical and Research Assistance. 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 and/or the academe 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 19. Formulation of a Comprehensive Development Plan for Middle-Level
Workforce.The DTESD shall formulate a comprehensive development plan for
middle-level workforce 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 a 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 20. Technical Education and Skills Development Committees. The DTESD shall
establish Technical Education and Skills Development Committees at the regional and
local levels to coordinate and monitor the delivery of all training activities by the public
and private sectors, and recommend policies, programs, and projects in accordance with
the National Technical Education and Skills Development Plan as provided in Section 4
of this Act. This committee shall likewise serve as the Technical Education and Skills
Development Committees of the regional and local development councils.
Section 21. Promotion of Enterprise-Based Training Programs. 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 22. Establishment and Administration ofNational 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
and the National Development Plan of the 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 23. Assistance ofEmployers 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 24. 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 25. Coordination ofAll 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.
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 DTESDs objectives.
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 26. Inclusivity. 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 in all processes, 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, and 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 in all the Provincial/District Offices to cater specifically to the job placement of
graduates of TESDA 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 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 workforce 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 bc included in
the General Appropriations 6 Act.
Section 34. Implementing Rules and Regulations. Within ninety (90) days from the
effectivity of
this Act, the DTESD, in consultation with appropriate government
agencies and other stakeholders, shall promulgate the necessary rules and regulations to
implement this Act.
Section 35. Separability Clause. If, for any reason or reasons, any part of the provision
of this Act 11 shall be held to be unconstitutional or invalid, other parts or provisions
hereof which are not 12 affected thereby shall continue to be in full force and effect.
Section 36. Repealing Clause. All laws, decrees, orders, rules, and regulations, or parts
thereof, inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly.


Section 37. Effectivity Clause. This Act shall take effect after fifteen (15) days following
its publication in the Official Gazette and at least two (2) newspapers of general
circulation.
Approved,