Tesda Act of 1994

7/28/2019 Tesda Act of 1994

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RULES AND REGULATIONS IMPLEMENTINGTHE TESDA ACT OF 1994

[Republic Act No. 7796]Pursuant to Section 36 of the TESDA Act of 1994,

the TESDA Board hereby promulgates theImplementing Rules and Regulations of the Act,

as follows:

RULE IPOLICIES AND OBJECTIVES

SECTION 1. Title. - These Rules shall be known and cited as the

Rules and Regulations Implementing

the TESDA Act of 1994.

SEC. 2. Declaration of Policy. - It is the declared policy of the

State to provide relevant, accessible, high quality and efficienttechnical education and skills development in support of thedevelopment of high quality Filipino middle-level manpower responsive

to and in accordance with Philippine development goals and priorities.

Private Sector Participation. - The State shallencourage the active participation of variousconcerned sectors, particularly private enterprises,

being direct participants in and immediate beneficiaries of a trained and skilled workforce, in providing technical education and skills developmentopportunities.

SEC. 3. Statement of Goals and Objectives. - The goals and objectives

of TESDA Act of 1994 (hereinafter cited as Act) are as follows:

International Competitiveness. - To promote and strengthen the quality of technical education and skills development programs to attain international

competitiveness;

Quality Middle-Level Manpower. - To focustechnical education and skills development on meetingthe changing demands for quality middle-level manpower.

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Scientific and Technical Knowledge Base. - Toencourage critical and creative thinking bydisseminating the scientific and technical knowledge base of middle-level manpower development programs;

Roles of Public and Private Institutions. - Torecognize and encourage the complementary roles of public and private institutions in technicaleducation and skills development and trainingsystems; and

Desirable Values. - To inculcate desirable valuesthrough the development of moral character, withemphasis on work ethic, self-discipline, self-reliance and nationalism.

RULE IITECHNICAL EDUCATION AND SKILLS DEVELOPMENT PLAN

SEC. 1. Formulation of a Comprehensive Development Plan for Middle-

Level Manpower. - The Technical Education and Skills Development Authority (TESDA) shall formulate a comprehensive development plan for middle-level manpower based on a national employment plan or policiesfor the optimum allocation, development and utilization of skilled

workers for employment, entrepreneurship and technology development foreconomic and social growth, to be known as the National TechnicalEducation and Skills Development Plan.

SEC. 2. President's Approval. - This plan, after adoption by the

TESDA Board, shall be updated

periodically and submitted to the President of thePhilippines for approval. Thereafter, it shall be the plan for technical education and skills developmentfor the entire country within the framework of the National Development Plan.

SEC. 3. Assistance of Private Sector and the Academe. - The TESDA Board shall direct the TESDA

Secretariat to call on its member-agencies, the private sector and the academe to assist in the formulation of the plan.

SEC. 4. Reformed Industry-Based Training Program . - The comprehensive

plan shall provide for a

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reformed industry-based training program includingapprenticeship, dual training system and othersimilar schemes intended to:

provide maximum protection and welfare of the

worker-trainee;

improve the quality and relevance and socialaccountability of technical education and skillsdevelopment;

accelerate the employment-generation efforts ofthe government; and

expand the range of opportunities for upward

social mobility of the school-going population beyond the traditional higher levels of formaleducation.

SEC. 5. Review and Endorsement of Agencies' Budgets. - All government

and non-government agencies receiving financial and technicalassistance from the government shall be required to formulate theirrespective annual agency technical education and skills development

plans in line with the national technical education and skillsdevelopment plan. The budget to support such plans shall be subject toreview and endorsement to the Department of Budget and Management bythe TESDA.

SEC. 6. TESDA's Evaluation of Agencies' Programs. - The TESDA shall

evaluate the efficiency and

effectiveness of the agencies' skills development programs and schemes to make them conform with the quantitative and qualitative objectives of thenational technical education and skills development plan.

SEC. 7. Submission of Reports of TESDA . - In such form as the TESDA

may prescribe, the agencies mentioned in Section 5 hereof shall submitreports on how they have implemented their technical education and skills development plans annually to the TESDA or as often as it mayrequire.

RULE IIITESDA BOARD

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SEC. 1. Creation of the Technical Education and Skills Development

Authority . - To implement the

policy declared in the Act, a Technical Education and Skills Development Authority is created,

(hereinafter referred to as the Authority or TESDA). The Authority shall be composed of the TESDA Board asits governing body, and the TESDA Secretariat as itsexecutive arm. The TESDA shall replace and absorb the National Manpower and Youth Council (NMYC), theBureau of Technical and Vocational Education (BTVE)and the personnel and functions pertaining totechnical- vocational education in the regionaloffices of the Department of Education, Culture and Sports

(DECS), and the apprenticeship program of the Bureauof Local Employment of the Department of Labor and Employment.

SEC. 2. Composition of the TESDA Board .- The TESDA Board is composed

of the following:

The Secretary of Labor and Employment Chairperson Secretary of Education, Culture and Sports Co-Chairperson Secretary of Trade and Industry Co-Chairperson Secretary of Agriculture Member Secretary of Interior and Local Government Member Director General of the TESDA Secretariat Member

Private sector representatives appointed by thePresident:

Two (2) representatives from theemployer/industry organization, one of whom shall bea woman;

Three (3) representatives from the labor sector,one of whom shall be a woman; and

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To (2) representatives of national associations

of private technical-vocational education and training institutions, one of whom shall be a woman.

SEC. 3. Term of Office. - As soon as all the members of the private

sector are appointed, they shall so organize themselves thatthe term of office of one-third (1/3) of their numbershall expire every year. The members from the privatesector appointed thereafter to fill vacancies caused by expiration of terms shall hold office for three(3) years.

SEC. 4. Change of Membership. - The President of the Philippines may

revise the membership of the

TESDA Board through an administrative order wheneverthe President deems it necessary for the effective performance of the Board's functions.

SEC. 5. Meetings, Emoluments. - The TESDA Board shall meet at least

twice a year, or as frequently as may be deemed necessary by itsChairperson. In the absence of the Chairperson, a Co-Chairperson shall

preside. In case any member of the Board representing the Governmentcannot attend the meeting, he or she shall be regularly represented byan undersecretary or deputy-director general, as the case may be, to bedesignated by such member for the purpose.

The benefits, privileges and emoluments of the Board shall be consistent with existing laws and rules.

SEC. 6. Functions and Powers of the Board. -

Function. - The TESDA Board shall be primarily responsible for the

formulation of continuing, coordinated and fully integrated technicaleducation and skills development policies, plans and programs takinginto consideration the following:

1. The State policy declared in the Act of

giving new direction and thrusts to efforts indeveloping the quality of Filipino human resourcesthrough technical education and skills development.

2. The implementation of the above-mentioned policy requires the coordination and cooperation of policies, plans and programs of different concerned

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sectors of Philippine society;

3. Equal participation of representatives ofindustry groups, trade associations, employers,association of technical-vocational schools workers

and government shall be made the rule in order toensure that urgent needs and recommendations arereadily addressed; and

4. Improved linkages between industry, laborand government shall be given priority in theformulation of any national-level plan.

Powers. - The TESDA Board shall have the following powers:

1. Approve and promulgate, after dueconsultation with industry groups, tradeassociations, associations of technical-vocationalschools, employers and workers, the NationalTechnical Education and Skills Development Plan for middle-level manpower and the policies, programs and guidelines as may be necessary for the effectiveimplementation of the plan and of the Act;

2. Organize and constitute various standing

committees, subsidiary groups, or technical workinggroups for efficient integration, coordination and monitoring technical education and skillsdevelopment programs at the national, regional, and local levels;

3. Enter into, make, execute, perform and carryout domestic and foreign contracts subject toexisting laws, rules and regulations;

4. Restructure the entire sub-sector consistingof all institutions and programs involved in the promotion and development of middle-level manpowerthrough upgrading, merger and/or phase-out followinga user-led strategy;

5. Approve trade skills standards and trade

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tests as established and conducted by privateindustries;

6. Establish and administer a system ofaccreditation of both public and private

institutions;

7. Establish, develop and support trainors'training and/or programs;

8. Lend support and encourage increasingutilization of the dual training system as provided for by republic Act No. 7686;

9. Exact reasonable fees and charges for such

tests and trainings conducted and retain suchearnings for the use of the TESDA, subject toguidelines promulgated by the TESDA Board;

10. Allocate resources, based on the TESDA Secretariat's recommendations, for the programs and projects it shall undertake pursuant to an approved National Technical Education and Skills DevelopmentPlan;

11. Determine and approve systematic fundingschemes such as the Levy-and-Grant scheme fortechnical education and skills development purposes;

12. Create, when deemed necessary, an AdvisoryCommittee which shall provide expert and technicaladvice to the Board to be chosen from the academe and the private sector: Provided, that in case the Advisory Committee is created, the Board is herebyauthorized to set aside a portion of its

appropriation for its operation;

13. Create such offices as it may deem necessaryto carry out objectives, policies and functions ofthe TESDA;

14. Review and approve annual and other reports

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to the President on technical education and skillsdevelopment;

15. Manage and administer the TESDA DevelopmentFund and formulate is implementing guidelines; and

16. Perform such other duties and functionsnecessary to carry out the provisions of the Act.

RULE IV TESDA SECRETARIAT

SEC. 1. TESDA Secretariat. - The TESDA Secretariat, created under

Sec. 10 of the Act, is composed of the Offices mentioned in

this Rule.

SEC. 2. Functions and Responsibilities of the TESDA Secretariat. -

The Secretariat shall have the following functions and responsibilities:

To establish and maintain a planning process and formulate a national technical education and skillsdevelopment plan in consultation with the memberagencies and other concerned of the TESDA at various

levels;

To provide analytical inputs to policy and decision-making of the TESDA on allocation ofresources and on institutional roles and responsibilities as shall be embodied with theagencies annual technical education and skillsdevelopment plans, in accordance with the manpower plan for middle-level skilled workers as approved bythe TESDA Board;

To recommend measures and implement the same uponapproval by the TESDA Board, for the effective and efficient implementation of the national technicaleducation and skills development plan;

To propose to the TESDA Board the specific

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allocation of resource for the programs and projectsit shall undertake pursuant to the approved nationaltechnical education and skills development plan;

To submit the TESDA Board periodic reports on the

progress and accomplishment of work programs and onthe implementation of plans and policies fortechnical education and skills development;

To prepare for approval by the TESDA Board anannual report to the president on technical educationand skills development;

To implement and administer the apprenticeship program;

To prepare and implement, upon approval by theTESDA Board, programs for the training of trainers,supervisors, planners and managers;

To enter into agreements to implement plans and programs approved by the TESDA Board and perform activities as shall implement the declared policy ofthe Act;

To propose to the TESDA Board the policies and guidelines for the organization and constitution ofthe regional and local Technical Education and SkillsDevelopment Committees, industry boards and technical working groups, as may be deemed necessary, and aftertheir approval, to implement such policies and guidelines; Provided, that the Director-General,shall determine the composition of these bodiessubject to the guidelines adopted by the TESDA Board for the purpose;

To review and endorse to the Department of Budgetand Management in accordance with the guidelinesapproved by the TESDA Board the annual agencytechnical education and skills development plans ofall government and non-government agencies receivingfinancial technical assistance from the government;

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Upon proper delegation of authority from the

TESDA Board, the TESDA Secretariat, thru theDirector- General, shall also:

1. Review and recommend action to concerned authorities proposed technical assistance programsand grants-in-aid-programs for the technicaleducation and skills development, or both, includingthose which may be entered into between theGovernment of the Philippines and other nations,including international and foreign organizations both here and abroad.

2. Develop and administer appropriate incentive

schemes to government and private industries and institutions to provide high quality technicaleducation and skills development opportunities;

3. Set policies for technical education and skills development programs for regional and local-level implementations.

4. Direct and approve institutionalarrangements with industry boards and such other

bodies or associations for the direct participationof employers and workers in technical education and skills evelopment including trade skillsstandardization and testing, apprenticeship and dualtraining system.

5. Hire the services of qualified consultantsand private organizations for research work and publication in the field of technical education and skills development and also avail itself of the

services of other agencies of the Government as mayberequired.

To perform such other functions and duties as maybe assigned by the TESDA Board.

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DIRECTOR GENERAL SEC. 3. Director-General. - The TESDA Secretariat shall be headed by

a Director-General, who shall

likewise be a member of the TESDA Board. The

Director-General shall enjoy the benefits, privilegesand emoluments equivalent to the rank ofUndersecretary. As chief Executive Officer of theTESDA Secretariat, the Director-General shallexercise general supervision and control over itstechnical and administrative personnel.

SEC. 4. Deputy Directors-General. - The Director-General shall be

assisted by two (2) Deputy Directors-General, one to beresponsible for Vocational and Technical Education

and Training and one to be responsible for Policiesand Planning.

The Deputy Directors-General shall enjoy the benefits, privileges and emoluments equivalent to therank of Assistant Secretary.

SEC. 5. Chief of Services for Administration. - The Director-General

shall also be assisted by a Chief of Services for Administration who shall be a Career Civil Service

Official.

SEC. 6. Appointment of TESDA Officials and Personnel. - The President

shall appoint the Director-General, and the two Deputy Directors-General, upon recommendation of the TESDA Board. The President shallalso appoint the heads of the regional offices. The Chief of Servicesfor Administration shall be appointed by the TESDA Board. The Director-General shall appoint an Executive-Director for each of the Officesunder the two Deputy Directors-General who shall have the rank and emoluments of Director IV. The Director-General shall also appoint such

personnel as may be necessary to carry out the objectives, policies and functions of the TESDA subject to Civil Service laws, rules and regulations.

SEC. 7. Compliance with the Salaries Standardization Law . - The

composition and emoluments of the officials and employees ofthe TESDA shall be in accordance with the salarystandardization law and other applicable laws underthe national compensation and classification plan.

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SEC. 8. Continuous Assessment and Study. - The TESDA Secretariat

shall conduct continuous assessment and study of the nature, behaviorand the use of the country's stock of human resources and study areasdirectly or indirectly related to technical education and skillsdevelopment. This, it shall do by:

engaging directly in studies, researches and surveys; and

engaging the services of duly recognized and competent individuals, groups of individuals,schools, universities or research institutions,through contracts, grants or any appropriatearrangement.

Documents, materials or whatever output or

results obtained from the activities above shall form part of the property of the TESDA.

SEC. 9. Automatic Review; Recommendations to the President and

Congress. - Every five (5) years,

after the effectivity of the Act, an independentreview panel composed of three (3) persons appointed by the President shall review the performance of theTESDA and shall make recommendations based on its findings to the President and to both Houses of

Congress.

OFFICES OF THE TESDA SECRETARIAT

SEC. 10. The Planning Office (PO). - The PO shall:

design and establish planning processes and methodologies which will particularly enhance theefficiency of resource allocation decisions withinthe technical education and skills developmentsector;

lead in the preparation and periodic updating ofa national plan for technical education and skillsdevelopment which shall become the basis for resourceallocation decisions within the sector;

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conduct researches, studies and developinformation systems for effective and efficient planning and policy making within the sector;

develop and implement programs and projects aimed

at building up planning capabilities of variousinstitutions within the sector; and

perform such other powers and functions as may beauthorized.

SEC. 11. Skills Standards and Certification Office (SSCO). - The SSCO

shall:

develop and establish a national system of skills

standardization, testing and certification in thecountry;

design, innovate and adopt processes and methodologies whereby industry groups and workers'guilds take on progressively the responsibility ofsetting skills standards for identified occupationalareas, and the local government units actively participate in promoting skills standards, testingand certification;

establish and implement a system of accrediting private enterprises, workers' associations and guildsand public institutions to serve as skills testingvenues;

conduct research and development on variousoccupational areas in order to recommend policies,rules and regulations for effective and efficientskills standardization, testing and certification

system in the country; and

perform such other duties and functions as may beauthorized.

SEC. 12. National Institute for Technical Vocational Education and

Training (NITVET). - The NITVET shall:

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serve as the research and development arm of thegovernment in the field of technical-vocationaleducation and training;

develop curricula and program standards for

various technical-vocational education and trainingareas;

develop and implement an integrated program forcontinuing development of trainors, teachers and instructors within the technical education and skillsdevelopment sector;

develop programs and projects which will build upinstitutional capabilities within the sector; and


SEC. 13. Office of Formal Technical Vocational Education and

Training (OFTVET). - The OFTVET shall:

provide policies, measures and guidelines foreffective and efficient administration of formaltechnical-vocational education and training programs

implemented by various institutions in the country;

establish and maintain a system for accrediting,coordinating, integrating, monitoring and evaluatingthe different formal technical-vocational educationand training programs vis-à-vis the approved nationaltechnical education and skills development plan;

establish and maintain a network of institutionsengaged in institutionalized technical-vocational

education and training, particularly with localgovernment units; and


SEC. 14. Office of the Non-formal Technical Vocational Education and

Training (ONFTVET). - The ONFTVET shall:

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provide direction, policies and guidelines foreffective implementation of non-formal community- based technical-vocational education and training;

accredit, coordinate, monitor and evaluate

various non-formal technical-vocational educationand training programs implemented by variousinstitutions, particularly by local government units;

establish and maintain a network of institutionsincluding local government units, non-governmentorganizations implementing non-formal community-based technical-vocational education and training; and


SEC. 15. Office of Apprenticeship (OA). - The OA shall:

provide direction, policies and guidelines on theimplementation of the apprenticeship system;

accredit, coordinate, monitor and evaluate allapprenticeship schemes and programs implemented by

various institutions and enterprises;

establish a network of institutions and enterprises conducting apprenticeship schemes and programs; and


REGIONAL AND PROVINCIAL TESDA OFFICES SEC. 16. Regional TESDA Offices. - The TESDA shall establish

regional offices headed by Regional

Directors with the rank and emoluments of DirectorIV. The offices shall be under the direct control of

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the Director-General and shall:

serve as Secretariat to Regional TESDA Committees;

supervise, coordinate and integrate, thru itsProvincial TESDA Offices, all technical education and skills development programs, projects and related activities in their respective jurisdiction;

develop and recommend TESDA programs for regionaland local level implementation within the policiesset by the TESDA; and

perform other duties and functions as may beauthorized.

SEC. 17. Provincial TESDA Offices. - The TESDA shall also establish

Provincial Offices headed by Skill Development Offices withthe rank and emoluments of a Director III. Theseoffices shall be under the direct control of theDirector-General and shall:

serve as Secretariat to Provincial TESDA

Committees;

provide technical assistance particularly tolocal government units for effective supervision,coordination, integration and monitoring oftechnical-vocational education and training programs within their localities; and

review and recommend TESDA programs forimplementation within their localities; and

perform such other duties and function as may beauthorized.

SEC. 18. Additional Offices. - The TESDA Secretariat may be further

composed by such offices as may be deemed necessary by the

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TESDA Board.

RULE V TESDA COMMITTEES

SEC. 1. Technical Education and Skills Development Committees. - The

TESDA shall establish

Technical Education and Skills Development Committeesat the regional and local levels to coordinate and monitor the delivery of all technical education and skills development activities of the public and private sectors. The TESDA Board is authorized to setaside a portion of the appropriation of the TESDA forthe operation of the TESDA Committees.

SEC. 2. TESDA Committees' Relations to Local Development Councils. -

The TESDA Committees shall establish linkages with theappropriate regional and local development councilsin order that they may likewise serve as theTechnical Education and Skills Development Committeesof the said development councils.

SEC. 3. Composition of TESDA Committees. - The composition of the

Technical Education and Skills

Development Committees shall be determined by theDirector-General subject to the guidelines promulgated by the TESDA Board.

RULE VIPROGRAMS AND ACTIVITIES

SEC. 1. Programs and Activities in Technical Education and skills

Development. - The TESDA shall accredit, coordinate,integrate, monitor and evaluate all the differentformal and non-formal technical-vocational education and training programs pursuant to the goals and objectives of the Act. Encouraging the active participation of the privatesector, including industry groups, tradeassociations, employers and workers, and particularly private enterprises, the TESDA shall promote and

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strengthen the quality of these technical educationand skills development programs:

middle-level manpower development programs;

vocational, administrative or training programsfor the purpose of acquiring and developing job-related skills;

programs and projects which will build upinstitutional capabilities within the sector;

technical education and skills development programs at national, regional and local levels;

formal technical-vocational education and training programs implemented by various institutionsin the country;

non-formal community based technical-vocationeducation and training programs;

training programs and schemes focused on skillstraining for entrepreneur development and technologydevelopment, cost-effective training in occupational

trades and related fields of employment and valuedevelopment as an integral component of all skillstraining programs;

training programs and schemes that includeteacher's trainors' training and for the continuingdevelopment of trainors, teachers and instructors within the technical education and skills developmentsector; and

programs for the training of supervisors, planners and managers.

SEC. 2. User-Led or Market-Driven Strategy. - adopting a user-led or

market driven strategy, the TESDA shall promote stengthened linkages between educational/training institutions

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and industry to ensure that appropriate skills and knowledge are provided by the educational system.

SEC. 3. Apprenticeship and Learnership Prorgrams. - Using the above-

mentioned strategy, in

accordance with existing laws, rules and regulations,the TESDA shall implement and administer reformed industry-based apprenticeship and learneship programs which have been transferred from the Department ofLabor and Employment to the TESDA by the Act.

SEC. 4. Dual Training System. - Also using the strategy mentioned in

Section 2 hereof, the TESDA shall implement Republic Act No. 7686

otherwise known as the "Dual Training System Act. Of 1994" and lend support and encourage increasing utilization of thedual training system as provided for in the aforementioned Act.

SEC. 5. Administration of Training Programs. - The TESDA shall design

and administer training

programs and schemes that will develop thecapabilities of public and private institutions to provide quality and cost-effective technicaleducation and skills development and related opportunities.

SEC. 6. Establishment and Administration of National Trade Skills

Standards. - There shall be national occupational skillsstandards to be established by TESDA - accredited industry committees. The TESDA shall develop and implement a certification and accreditation program in which private groups and trade associations areaccredited to conduct approved trade tests, and thelocal government units to promote such trade testingactivities in their respective areas in accordance with the guidelines to be set by the TESDA. The

Secretary of Labor and Employment shall determine theoccupational trades for mandatory certification. All certificates relating to thenational skills testing and certification system shall be issued by the TESDA through its Secretariat.

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SEC. 7. Industry Boards. - The TESDA shall establish effective and

efficient institutional arrangements with industry boards and such other bodies or associations to provide direct participation of employers and workers in the designand implementation of skills development schemes,

trade skills standardization and certification and such other functions in the fulfillment of theTESDA's objectives.

SEC. 8. Skills Development Centers. - The TESDA shall strengthen the

network of national, regional and local skills trainingcenters for the purpose of promoting skillsdevelopment.

This network shall include skills training centers in

vocational and technical schools, technicalinstitutions, polytechnic colleges, and all otherduly 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 beestablished by the TESDA in accordance with the National Technical Education and Skills Development Plan.

SEC. 9. Coordination of All Skills Training Schemes. - In order tointegrate the national skills development efforts, all technicaleducation and skills training schemes as provided for in the Act shall

be coordinated with the TESDA particularly thosehaving to do with the setting of trade skillsstandards. For this purpose, existing technicaleducation and skills training programs in theGovernment and in the private sector, specificallythose wholly or partly financed with governmentfunds, shall be reported to the TESDA which shallassess and evaluate such programs to ensure theirefficiency and effectiveness.

SEC. 10. Skills Development Opportunities. - The TESDA shall design

and implement an effective and

efficient delivery system for quality technicaleducation and skills development opportunities particularly in disadvantaged sectors, with new tools

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of wealth creation and with the capability to take onhigher value-added gainful activities and to shareequitably in productivity gains.

SEC. 11. Devolution of TESDA's Training Function to Local

Governments. - In establishing the delivery system provided forin the preceding Section, the TESDA shall formulate,implement and finance a specific plan to develop thecapability of local government units to assumeultimately the responsibility for effectively providing community-based technical education and skills development opportunities: Provided, however,that there shall be formulated and implemented aneffective and timely retraining of TESDA personnelthat would be affected by the devolution to ensure

their being retained if the concerned localgovernment units would not be able to absorb them.

RULE VIITECHNICAL AND VOCATIONAL SCHOOLS

AND TRAINING CENTERS SEC. 1. Public Technical and Vocational Schools. - The public

technical and vocational schools whose

budgets are included in the TESDA budget per theannual General Appropriations Act, including those funded by local governments, shall be under thesupervision of the TESDA. The pertinent DECS Orders and Memoranda shall continue to apply to said schoolsuntil they are modified or revoked by the TESDA Board.

SEC. 2. Private Technical and Vocational Schools. - The private

technical and vocational schools shall be subject to reasonable

supervision of the TESDA, in accordance with the 1992 Manual of Regulations for Private Schools, particularly its Article IV, Supervision and Regulation of Private Schools and Article V. Accreditation, until the aforementioned regulationsare modified or revoked by the TESDA Board.

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SEC. 3. Training Center. - In its supervision of public and private

training centers, the TESDA shall ensure that appropriateskills and knowledge are provided to industry bythese training centers.

RULE VIIIPROMOTION, ASSISTANCE, SCHOLARSHIP GRANTS

AND INCENTIVES SEC. 1. Skills Olympics. - To promote quality skills development in

the country and with the view of participating ininternational skills competitions, the TESDA, withthe active participation of private industries, shallorganize and conduct annual National Skills Olympics.

The TESDA, through its Secretariat, shall promulgatethe necessary rules and guidelines for the effectiveand efficient conduct of Annual National SkillsOlympics and for the country's participation ininternational skills olympics.

SEC. 2. Assistance to Employers and Organizations. - The TESDA shall

assist any employer or

organization engaged in skills training schemesdesigned to attain its objectives under rules and

regulations which the TESDA shall establish for this purpose.

SEC. 3. Scholarship Grants. - The TESDA shall adopt a system of

allocation and funding of scholarship grants which shall beresponsive to the technical education and skillsdevelopment needs of the different regions in thecountry.

SEC. 4. Incentives Schemes. - The TESDA shall develop and administer

appropriate incentive schemes

to encourage government and private industries and institutions to provide high-quality technical education and skills developmentopportunities.

RULE IXFINANCING FOR TECHNICAL EDUCATION

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AND SKILLS DEVELOPMENT SEC. 1. TESDA Budget. - The amount necessary to finance the initial

implementation of the Act shall be charged against theexisting appropriations of the NMYC and the BTVE.

Thereafter, such funds as may be necessary for thecontinued implementation of the Act shall be included in the annual General Appropriations Act.

SEC. 2. The TESDA Development Fund. - A TESDA Development Fund is

established, to be

managed/administered by the TESDA, the income from which shall be utilized exclusively in awarding of grants and providing assistance to schools, traininginstitutions, industries, local government units for

upgrading their capabilities, and to develop and implement technical education and skills development programs. The Fund shall be set up through:

a one-time lump sum appropriation from the National Government;

an annual contribution from the Overseas Workers Welfare Administration Fund, the amount of whichshould be part of the study on financing provided for

in Section 4 of this Rule;

donations, grants, endowments, and other bequestsor gifts; and

any other income generated by the TESDA.

SEC. 3. Administrator and Fund Manager. - The TESDA Board shall be

the administrator of the Fund, and as such, shall formulatethe 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 tounderwrite expenses for administration. The Board shall appoint a reputable government-accredited

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investment institution as Fund manager, subject toguidelines promulgated by the Board.

SEC. 4. Expert Group on Funding Scheme. - Within one (1) year after

the organization of the TESDA,

the TESDA Board shall commission an expert group onfunding schemes for the TESDA Development Fund, theresults of which shall be used as the basis forappropriate action by the Board.

SEC. 5. Levy and Grant Scheme. - The TESDA may determine and approve

systematic funding schemes for technical education and skillsdevelopment purposes such as a levy and grant scheme whereby thereshall be legal contributions from participating employers who would be

beneficiaries of the employee training programs (often as a percentageof the payroll) which contributions are subsequently turned over orrebated to enterprise offering such program.

SEC. 6. Fees and Charges. - The TESDA may exact reasonable fees and

charges for such tests and

trainings it may conduct and retain such earnings forits own use, subject to guidelines promulgated by theTESDA Board.

SEC. 7. Instructional Improvement Fund . - The instructional

improvement fund in public

technical-vocational schools and institutions shall

be used for the expansion, upgrading or maintenance

of school facilities, particularly machinery,equipment and other learning resources.

RULE XDEFINITION OF TERMS

SEC. 1. Definition of Terms Under the Act. -

"Apprentice" is a person undergoing training foran approved apprenticeable occupation during anestablished period assured by an apprenticeshipagreement.

"Apprenticeship" is training within employment with compulsory related theoretical instructionsinvolving a contract between an apprentice and an

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employer on an approved apprenticeable occupation.

"Apprenticeship Agreement" is a contract whereina prospective employer binds himself to train theapprentice who in turn accepts the terms of training

for a recognized apprenticable occupation,emphasizing the rights, duties and responsibilitiesof each party.

"Apprenticeable Occupation" is an occupationofficially endorsed by a tripartite body and approved for apprenticeship by the Authority.

"Dual System/Training" refers to a deliverysystem of quality technical and vocational education

which requires training to be carried out alternatelyin two venues: In school and in the production plant.In school training provides the trainee thetheoretical foundation, basic training, guidance and human formation, while in-plant develops his skillsand proficiency in actual work conditions as itcontinues to inculcate personal discipline and workvalues.

"Learners" refer to persons hired as trainees in

semi-skilled and other industrial occupations whichare non-apprenticeable. Learnership programs must beapproved by the Authority;

"Levy-and-Grand System" refers to a legalcontribution (often a percentage of the payroll) from participating employers who would be beneficiaries ofa vocational or technical education or training program which is subsequently turned over or rebated to enterprises offering employee training programs;

"Middle-Level Manpower" refers to those:

1. who have acquired practical skills and knowledge through formal or non-formal education and training equivalent to at least a secondary education but preferably a post-secondary education with a

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corresponding degree or diploma; or

2. skilled workers who have become highlycompetent in their trade or craft as attested byindustry;

"Private Enterprise" refers to an economic system under which property of all kinds can be privatelyowned and in which individuals, alone or inassociation with another, can embark on a businessactivity. This includes industrial, agricultural,agro-industrial or service establishments engaged inthe production, manufacturing, processing, repacking,assembly, or production of goods.

" Skill" means the acquired and developed abilityto carry out a task of job;

"Skills Development" means the process through which learner and workers are systematically provided with learning opportunities to acquire or upgrade, or both, their ability, knowledge and behavior patternrequired as qualifications for a job or range of jobsin a given occupational area.

"Technical Education" refers to the education process designed at post-secondary and lower tertiarylevels, officially recognized as non-degree programsaimed at preparing technicians, para-professionalsand other categories of middle-level workers by providing them with a board range of generaleducation, theoretical, scientific and technologicalstudies, and related job skills training.

"Trade" means any group of interrelated jobs or

nay occupation which is traditionally or officiallyrecognized as craft or artisan in nature requiringspecific qualifications that can be acquired through work experience and/or training.

"Trainees" are participants in a vocational,administrative or technical training program for the

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purpose of acquiring and developing job-related skills;

"Trainers" are persons who direct the practice ofskills towards immediate improvement in some task.

"Trainor/Trainers" are persons who providetraining to trainers aimed at developing the latter'scapacities for imparting attitudes, knowledge, skillsand behavior patterns required for specific jobs,tasks, occupations or group of related occupations.

"User-Led" or "Market-Driven Strategy" refers toa strategy which promotes stengthened linkages between educational/training institutions and

industry to ensure that appropriate skills and knowledge are provided by the educational system. Market-Driven Strategy relies principally on marketforces to determine supply/demand ratios includingthe pricing of training and education.

RULE XITRANSITORY AND FINAL PROVISIONS

SEC. 1. Private Sector Representatives. - Within two (20 months afterthe approval of the Act, the

President shall, in consultation with the Secretaryof labor and Employment and the Secretary ofEducation, Culture and sports, appoint the privatesector representatives of the TESDA Board.

SEC. 2. Appointment of the Director-General. - Within three (3)

months after the appointment of the private sectorrepresentatives, the President shall, upon the

recommendation of the Board, appoint the Director-General.

SEC. 3. Organizational Structure and Staffing Pattern. - Within four

(4) months after the appointment of the Director-General, theBoard shall convene to determine the organizationalstructure and staffing pattern of the TESDA.

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SEC. 4. Personnel of Absorbed Agencies. - The personnel of the

existing National Manpower and Youth Council (NMYC) of theDepartment of Labor and Employment and the Bureau ofTechnical and Vocational Education (BTVE) of the Department of

Education, Culture and Sports, shall, in a holdover capacity continue to perform their respective dutiesand responsibilities and receive their corresponding salaries and benefits until such time when theorganizational structure and staffing pattern of theTESDA shall have been approved by the Board:Provided, That the preparation and approval of thesaid 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, as clarified in Sections 5, 6,and 7 of this Rule.

SEC. 5. Holdover Capacity in Respective Duties and Responsibilities.

- A position is composed of a set of duties and responsibilities. Thus even if the title of said position is changed or the salary therefor is upgraded, the absorbed personnel who is performingthe duties and responsibilities shall continue to

hold such position and receive the appropriate upgraded salary of said retitled position, in a holdovercapacity.

SEC. 6. Respecting and Insuring Security of Tenure. - As long as the duties and responsibilities of his position are needed by the TESDA, the absorbed personnel concerned shall not be forced to resignand be dismissed without just cause and without due

process. If new and higher positions are created,the absorbed personnel who meets the qualificationstandards of the new position shall be given preference in the filling up of said position.

SEC. 7. Respecting Seniority Rights. - In filling up new positions,

there shall be an open competition among the absorbed

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personnel taking into consideration theirqualifications, performance and eligibility. If theabsorbed personnel has to be retired under the provision of the next succeeding section, it is understood that his other previous service in the

government shall be included or considered in the computation of his retirement benefits.

SEC. 8. Separation or Retirement Benefits. - Those personnel whose

positions are not included in the

new staffing pattern approved by the TESDA Board 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.

SEC. 9. Consultation with Commission on HigherEducation and the Appropriate Department of Basic Education. - Upon the consultation of the TESDA Board, the TESDA may work out with the Commission onHigher Education and the appropriate Department forBasic Education a system of cooperation and program management with respect to educational institutionsoffering basic tertiary and post secondary programs paying special attention to delineation of programs,

functions, responsibilities, personnel and facilities.

SEC. 10. Existing Policies and Projects in Force Until Revoked. -

All policies and projects of the agencies replaced and absorbed by the TESDA involving technical education and skillsdevelopment programs shall remain in force unless oruntil modified or revoked by these Rules or by theTESDA.

SEC.11. Permits and Certificates. - All permits and certificates ofrecognition issued by the agencies replaced and absorbed bythe TESDA prior to these Rules affecting technicaleducation and skills development shall continue to bein force and in effect. However, further action onsuch permits and certificates shall henceforth beundertaken by the TESDA.

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SEC.12. Separability Clause. - If any provision of these Rules is

held invalid or unconstitutional, any other provision not soaffected shall continue to be valid and effective.

SEC. 13. Repealing Clause. - Any law, presidential decree, executive

order, letter of instruction, and its rules and regulations, or any part thereof, which is inconsistent with any of the provisions of the Act and these Rules is hereby repealed or amended accordingly.

SEC.14. Effectivity Clause. - These Rules shall take effect fifteen

(15) days after its publication in the Official Gazette or in anewspaper of general circulation.

SEC.15. Issuances on Policies and Guidelines AfterEffectivity of the Rules. - The TESDA Board shall, after due consultations are required by Section8,

paragraph 1 of the Act, promulgate from time to time issuances on policies and guidelines for theeffective implementation of these Rules and Regulations.

Done in Manila, Republic of the Philippines, this18th day of January 1995.

GOVERNMENT SECTOR

(SGD.) MA. NIEVES R. CONFESOR Chairperson Secretary of Labor and Employment Secretary of Education, Culture and Sports

(SGD.) ROBERTO S. SEBASTIAN Member Secretary of Agriculture

Secretary of Interior & LocalGovernment

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(SGD.) RICARDO T. GLORIA Co-Chairperson

(SGD.) RAFAEL M. ALUNAN Member

(SGD.) RIZALINO S. NAVARRO Co-Chairperson Secretary of Trade and Industry

EMPLOYER/INDUSTRY SECTOR

(SGD.) JOSELITO S. SANDEJAS, JR.

Member

(SGD.) ZENAIDA G. GORDON Member

LABOR SECTOR

(SGD.) ISIDRO ANTONIO C. ASPER Member

(SGD.) CONCEPCION G. FLORES-DODD Member

IBARRA A. MALONZO Member

TECHNICAL EDUCATION AND TRAINING SECTOR

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(SGD.) FR. PRECIOSIO D. CANTILLAS Member

(SGD.) DR. TERESITA U. QUIRINO Member

The foregoing Implementing Rules and Regulations ofthe TESDA Act of 1994 was published on February 13,1995 in The Philippine Star.

REPUBLIC ACT NO. 7796

AN ACT CREATING THE TECHNICAL EDUCATION AND SKILLSDEVELOPMENT AUTHORITY, PROVIDING FOR ITS POWERS,

STRUCTURE AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of

Representatives of the Philippines in Congressassembled:

SECTION 1. Title. - This Act shall be known as the "Technical

Education and Skills Development Act of 1994" or the "TESDA Act of

1994".

SEC. 2. Declaration of Policy. - I t is hereby declared the policy of

the State to provide relevant, accessible, high quality and efficient technical education and skills developmentin support of the development of high qualityFilipino middle-level manpower responsive to and inaccordance with Philippine development goals and priorities.

The State shall encourage active participation ofvarious concerned sectors, particularly private enterprises, being direct participants in and

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immediate beneficiaries of a trained and skilled workforce, in providing technical education and skills development opportunities.

SEC. 3. Statement of Goals and Objectives. - It is the goal and

objective of this Act to:

Promote and strengthen the quality of technicaleducation and skills development programs to attaininternational competitiveness;

Focus technical education and skills developmenton meeting the changing demands for quality middle-level manpower;

Encourage critical and creative thinking bydisseminating the scientific and technical knowledge base of middle-level manpower development programs;

Recognize and encourage the complementary rolesof public and private institutions in technicaleducation and skills development and trainingsystems; and

Inculcate desirable values through the

development of moral character with emphasis on workethic, self-discipline, self-reliance and nationalism.

SEC. 4. Definition of Terms. - As used in this Act:

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

"Skills Development" shall mean the process

through which learners and workers aresystematically provided with learning opportunitiesto acquire or upgrade, or both, their ability,knowledge and behavior pattern required asqualifications for a job or range of jobs in a givenoccupational area;

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"Technical Education" shall refer to theeducation process designed at post-secondary and lower tertiary levels, officially recognized as non-degree programs aimed at preparing technicians, para- professionals and other categories of middle-level

workers by providing them with a broad range ofgeneral education, theoretical, scientific and technological studies, and related job skillstraining;

"Trade" shall mean any group of interrelated jobsor any occupation which is traditionally orofficially recognized as craft or artisan in naturerequiring specific qualifications that can beacquired through work experience and/or training;

"Middle-Level Manpower" refers to those:

1.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 acorresponding degree of diploma; or

2.skilled workers who have become highly

competent in their trade or craft as attested byindustry;

"Private Enterprises" refers to an economicsystem under which property of all kinds can be privately owned and in which individuals, alone or inassociation with another, can embark on a businessactivity. This includes industrial, agricultural, oragro-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 insome task;

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"Trainors/trainers" shall mean persons who provide training to trainers aimed at developing thelatter's capacities for imparting attitudes,knowledge, skills and behavior patters required forspecific jobs, tasks, occupations or group of related

occupations.

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

"Apprenticeship" training within employment withcompulsory related theoretical instruction involvinga contract between an apprentice and an employer on

an approved apprenticeable occupation;

"Apprentice" is a person undergoing training foran approved apprenticeable occupation during anapprenticeship agreement;

"Apprenticeship Agreement" is a contract whereina prospective employer binds himself to train theapprentice who in turn accepts the terms of trainingfor a recognized apprenticeable occupation

emphasizing the rights, duties and responsibilitiesof each party;

"Apprenticeable Occupation" is an occupationofficially endorsed by a tripartite body and approved for apprenticeable by the Authority;

"Learners" refers to persons hired as trainees insemi-skilled and other industrial occupations whichare non-apprenticeable. Learnership programs must be

approved by the Authority;

"User-Led" or "Market-Driven Strategy" refers toa strategy which promotes strengthened linkages between educational/training institutions and industry to ensure that appropriate skills and knowledge are provided by the educational system;

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"Dual System/Training" refers to a delivery

system of quality technical and vocational education which requires training to be carried out alternatelyin two venues: in-school and in the production plant.

In- school training provides the trainee thetheoretical foundation, basic training, guidance and human formation, while in-plant training develops hisskills and proficiency in actual work conditions asit continues to inculcate personal discipline and work values;

"Levy Grant System" refers to a legalcontribution from participating employers who would be beneficiaries of the program (often as a

percentage of the payroll) which is subsequentlyturned over or rebated to enterprises offeringemployee training programs.

SEC. 5. Technical Education and Skills Development Authority;

Creation. - To implement the policy

declared in this Act, there is hereby created aTechnical Education and Skills Development Authority (TESDA), hereinafter referred to as the Authority, which shall replace 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-vocationaleducation in the regional offices of the Departmentof Education, Culture and Sports (DECS) and theapprenticeship program of the Bureau of LocalEmployment of the Department of Labor and Employment.

SEC. 6. Composition of the Authority . - The Authority shall be

composed of the TESDA Board and the TESDA Secretariat.

SEC. 7. Composition of the TESDA Board . - The TESDA Board shall be

composed of the following:

The Secretary of Labor and Employment Chairperson Secretary of Education, Culture and Sports Co-Chairperson

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Secretary of Trade and Industry Co-Chairperson Secretary of Agriculture Member Secretary of Interior and Local Government Member

Director-General of the TESDA Secretariat Member

In addition, the President of the Philippines shallappoint the following members from the privatesector:

two (2) representatives, from the employer/industryorganization, one of whom shall be a woman; three (3)representatives, from the labor sector, one of whom

shall be a woman; and two (2) representatives of thenational associations of private technical-vocationaleducation and training institutions, one of whom shall be a women. As soon as all the members of the private sector are appointed, they shall so organized themselves that the term of office of one-third (1/3)of their number shall expire every year. The memberfrom the private sector appointed thereafter to fillvacancies caused by expiration of terms shall hold office for three (3) years.

The President of the Philippines may, however, revisethe membership of the TESDA Board, whenever thePresident deems it necessary for the effective performance of the Board's functions through an administrative order.

The TESDA Board shall meet at least twice a year, oras frequently as may be deemed necessary by its Chairperson. In the absence of the Chairperson, a

Co-Chairperson shall preside. In case any member ofthe Board representing the Government cannot attend the meeting, he or she shall be regularly represented by an undersecretary or deputy-director general, asthe case may be, to be designated by such member forthe purpose.

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The benefits, privileges and emoluments of the Board shall be consistent with existing laws and rules.

SEC. 8. Powers and Functions of the Board. - The Authority shall

primarily be responsible for

formulating, continuing, coordinated and fullyintegrated technical education and skills development policies, plans and programs taking intoconsideration the following:

The State policy declared herein of giving newdirection and thrusts to efforts in developing thequality of Filipino human resource through technicaleducation and skills development;

The implementation of the above-mentioned policyrequires the coordination and operation of policies, plans, and programs of different concerned sectors ofPhilippine society;

Equal participation of representatives ofindustry groups, trade associations, employers, workers and government shall be made the rule inorder to ensure that urgent needs and recommendationsare readily addressed; and

Improved linkages between industry, labor and government shall be given priority in theformulation of any national-level plan.

The Board, shall have the following powers:

1. promulgate, after due consultation withindustry groups, trade associations, employers, workers, policies, plans, programs and guidelines as

may be necessary for the effective implementation ofthis Act;

2. organize and constitute various standingcommittees, subsidiary groups, or technical workinggroups for efficient integration, coordination and monitoring technical education and skills development

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programs at the national, regional, and local levels;

3. enter into, make, execute, perform and carry-out domestic and foreign contracts subject to

existing laws, rules and regulations.

4. restructure the entire sub-sector consistingof all institutions and programs involved in the promotion and development of middle-level manpowerthrough upgrading, merger and/or phase-out followinga user-led strategy;

5. approve trade skills standards and tradetests as established and conducted by private

industries;

6. establish and administer a system ofaccreditation of both public and privateinstitutions;

7. establish, develop and support institutions'trainors' training and/or programs;

8. lend support and encourage increasing

utilization of the dual training system as provided for by Republic Act. No. 7686;

9. exact reasonable fees and charges for suchtests and trainings conducted and retain suchearnings for its own use, subject to guidelines promulgated by the Authority;

10. allocate resources, based on theSecretariat's recommendations for the programs and

subjects it shall undertake pursuant to approved National Technical Education and Skills DevelopmentPlan;

11. determine and approve systematic fundingschemes such as the Levy and Grant scheme fortechnical education and skills development purposes;

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12. create, when deemed necessary, an Advisory

Committee which shall provide expert and technicaladvice to the Board to be chosen from the academe and the private sector: Provided, That in case the

Advisory Committee is created, the Board is herebyauthorized to set aside a portion of itsappropriation for its operation; and

13. perform such other duties and functionsnecessary to carry out the provisions of this Actconsistent with the purposes of the creation ofTESDA.

SEC. 9. Power to Review and Recommend Action. - The Authority shall

review and recommend action to concerned authorities on proposed technicalassistance programs and grants-in-aid for technical education or skills development, or both, includingthose which may be entered into between the Government of the Philippines and other nations,including international and foreign organizations, both here and abroad.

SEC. 10. The TESDA Secretariat. - There is hereby created a

Technical Education and Skills

Development Authority Secretariat which shall havethe following functions and responsibilities:

To establish and maintain a planning process and formulate a national technical education and skillsdevelopment plan in which the member-agencies and other concerned entities of the Authority at variouslevels participate;

To provide analytical inputs to policy decision- making of the Authority on allocation of resourcesand institutional roles and responsibilities as shall be embodied in annual agencies technical educationand skills development plans, in accordance with the manpower plan for middle-level skilled worker asapproved by the Authority;

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To recommend measures, and implement the sameupon approval by the Authority, for the effective and efficient implementation of the national technicaleducation and skills development plan;

To propose to the Authority the specificallocation of resources for the programs and projectsit shall undertake pursuant to approved nationaltechnical education and skills development plan;

To submit to the Authority periodic reports onthe progress and accomplishment of work programs ofimplementation of plans and policies for technicaleducation and skills development;

To prepare for approval by the Authority anannual report to the President on technical educationand skills development;

To implement and administer the apprenticeship program as provided for in Section 18 of his Act;

To prepare and implement upon approval by the Authority a program for the training of trainers,supervisors, planners and managers as provided for in

Section 23 of this Act;

To enter into agreement to implement approved plans and programs and perform activities as shallimplement the declared policy of this Act; and to perform such other functions and duties as may beassigned by the Board.

SEC. 11. Director-General. - The TESDA Secretariat shall be headed by

a Director-General, who shall

likewise be a member of the TESDA Board. TheDirector-General shall be appointed by the Presidentof the Philippines and shall enjoy the benefits, privileges and emoluments equivalent to the rank of Undersecretary.

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As Chief Executive Officer of the TESDA Secretariat,the Director-General shall exercise general supervision and control over its technical and administrative personnel.

SEC. 12. Deputy Directors-General. - The Director-General shall be

assisted by two (2) Deputy Directors-General to be appointed by the President of the Philippines on recommendationof the TESDA Board. One to be responsible for Vocational and Technical Education and Training and one to be responsible for Policies and Planning.

The Deputy Directors-General shall enjoy the benefits, privileges and emoluments equivalent to therank of Assistant Secretary.

SEC. 13. Chief of Services for Administration. - The Director-

General shall also be assisted by a Chief of Services for Administration who shall be a Career Civil ServiceOfficial to be appointed by the TESDA Board.

SEC. 14. Structural Organization and Personnel. - The TESDA

Secretariat, in addition to the offices of the Director-General,Deputy Director-General and Chief of Services for Administration shall be

composed of the following offices to be headed by anExecutive Director to be appointed by the Director-General and shall have the rank and emoluments of Director IV.

Planning Office (PO) - The Planning Office shall be under the Office of the Deputy Director-General and shall have the following functions:

1. To design and establish planning processes

and methodologies which will particularly enhance theefficiency of resource allocation decisions withinthe technical education and skills developmentsector;

2. To lead in the preparation and periodicupdating of a national plan for technical education

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and skills development which shall become the basisfor resource allocation decisions within the sector;

3. To conduct researchers, studies and developinformation systems for effective and efficient

planning and policy making within the sector;

4. To develop and implement programs and projects aimed at building up planning capabilitiesof various institutions within the sector; and

5. To perform such other powers and functionsas may be authorized by the Authority.

Skills Standards and Certification Office (SSCO)

- The Skills Standards and Certification Office shall be under the office of the Deputy Director-Generaland shall have the following functions:

1. To develop and establish a national system of skills standardization, testing and certificationin the country;

2. To design, innovate and adopt processes and methodologies whereby industry groups and workers'

guilds take note on progressively the responsibilityof setting skills standards for identified occupational areas, and the local government unitsactively participate in promoting skills standards,testing and certification;

3. To establish and implement a system ofaccrediting private enterprises, workers'associations and guilds and public institutions toserve as skills testing venues;

4. To conduct research and development onvarious occupational areas in order to recommend policies, rules and regulations for effective and efficient skills standardization, testing and certification system in the country; and

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5. To perform such other duties and functionsas may be authorized.

National Institute for Technical Vocational and Education Training (NITVET) - The National Institute

for Technical Vocational and Education Training to beunder the office of the Deputy Director-General and shall have the following functions:

1. To serve as the research and development arm of the government in the field of the technical-vocational education and training;

2. To develop curricula and program standardsfor various technical-vocational education and

training areas;

3. To develop and implement an integrated program for continuing development of trainors,teachers and instructors within the technicaleducation and skills development sector;

4. To develop programs and project which will build up institutional capabilities within thesector; and

5. To perform such other powers and functionsas may be authorized.

Office of Formal Technical Vocational Educationand Training (OFTVET) - The Office of FormalTechnical Vocational Education and Training to beunder the office of the Deputy Director-General and shall have the following functions:

1. To provide policies, measures and guidelines

for effective and efficient administration of formaltechnical-vocational education and training programsimplemented by various institutions in the country;

2. To establish and maintain a system foraccrediting, coordinating, integrating, monitoringand evaluating the different formal technical-

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vocational education and training programs vis-à-visthe approved national technical education and skillsdevelopment plan;

3. To establish and maintain a network of

institutions engaged in institutionalized technical-vocational education and training, particularly with local government units; and

4. To perform such other duties and functionsas may be authorized.

Office of the Non-Formal Technical-VocationalEducation and Training (ONFTVET) - The Office of the Non-Formal Technical-Vocational Education and

Training to be under the office of the DeputyDirector-General and shall have the followingfunctions:

1. To provide direction, policies and guidelines for effective implementation of non-formalcommunity-based technical-vocational education and training;

2. To accredit, coordinate, monitor and

evaluate various non-formal technical-vocationaleducation and training programs implemented byvarious institutions particularly, by localgovernment units;

3. To establish and maintain a network ofinstitutions including local government units,non-government organizations implementing non-formal,community-based technical-vocational education and training;

4. To perform such other powers and functionsas may be authorized.

Office of Apprenticeship (OA) - The Office of Apprenticeship shall be under the office of theDeputy Director-General and shall have the following

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functions:

1. To provide direction, policies and guidelines on the implementation of theapprenticeship system;

2. To accredit, coordinate, monitor and evaluate all apprenticeship schemes and program implemented by various institutions and enterprises;

3. To establish a network of institutions and enterprises conducting apprenticeship schemes and programs;

4. To perform such other powers and functions

as may be authorized.

Regional TESDA Offices - The Regional TESDA Offices shall be headed by Regional Directors withthe rank and emoluments of Director IV to beappointed by the President. The Regional TESDA Offices shall be under the direct control of theDirector-General and shall have the followingfunctions:

1. To serve as Secretariat to RegionalTechnical Education Skills Development (TESDA)Committee;

2. To provide effective supervision,coordination and integration of technical educationand skills development programs, projects and related activities in their respective jurisdictions;

3. To develop and recommend TESDA programs for

regional and local-level implementation within the policies set by the Authority.

4. To perform such other duties and functionsas may be deemed necessary.

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SEC. 15. The Provincial TESDA Offices. - The Provincial Offices

shall be headed by Skill Development Officers who shall have the rankand emoluments of a Director III.

The Provincial TESDA Offices shall be under the

direct control of the Director-General and shall havethe following functions:

1. To serve as Secretariat to Provincial TESDA Committees;

2. To provide technical assistance particularly tolocal government units for effective supervisions,coordination, integration and monitoring oftechnical-vocational education and training programs

within their localities;

3. To review and recommend TESDA Programs forimplementation within their localities; and

4. To perform such other duties and functions as may be authorized. Furthermore, the TESDA Secretariat maybe further composed by such offices as may bedeemed necessary by the Authority. The Director-General shall appoint such personnel necessary to

carry out the objectives, policies and functions ofthe Authority subject to civil service laws, rulesand regulations.

SEC. 16. Compliance with the Salaries Standardization Law . - The

compensation and emoluments of the officials and employeesof the Authority shall be in accordance with thesalary standardization law and other applicable lawsunder the national compensation and classification plan.

SEC. 17. Consultants and Technical Assistance, Publication and

Research. - In pursuing its objectives, the Authority is herebyauthorized to set aside a portion of its appropriation for the hiringof services of qualified consultants, and private organizations forresearch work and publication in the field of technical education and skills development. It shall avail itself of the services of otheragencies of the Government as may be required.

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SEC. 18. Transfer of the Apprenticeship Program. - The

Apprenticeship Program of the Bureau of Local

Employment of the Department of Labor and Employmentshall be transferred to the Authority which shallimplement and administer said program in accordance

with existing laws, rules and regulations.

SEC. 19. Technical Education and Skills Development Committees. -

The Authority shall establish Technical Education and SkillsDevelopment Committees at the regional and locallevels to coordinate and monitor the delivery of allskills development activities by the public and private sectors. These committees shall likewiseserve as the Technical Education and SkillsDevelopment Committees of the Regional and local

development councils. The compositions of theTechnical Education and Skills development Committeesshall be determined by the Director-General subjectto the guidelines to be promulgated by the Authority.

SEC. 20. Skills Development Centers. - The Authority shall

strengthen the network of national, regional and local skillstraining centers for the purpose of promoting skillsdevelopment. This network shall include skills

training centers in vocational and technical schools,technical institutes, polytechnic colleges, and allother 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 beestablished by the Authority in accordance with the National Technical Education and Skills DevelopmentPlan.

SEC. 21. Formulation of a Comprehensive Development Plan for Middle-Level Manpower. - The Authority shall formulate a comprehensivedevelopment plan for middle-level manpower based on a nationalemployment 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 shallafter adoption by the Authority be updated periodically and submitted to the President of the Philippines for approval. Thereafter, it shall

be the plan for the technical education and skills development for theentire country within the framework of the National Development Plan.

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The Authority shall direct the TESDA Secretariat to call on its member-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:

Promote maximum protection and welfare of the worker-trainee;

Improve the quality and relevance and socialaccountability of technical education and skillsdevelopment;

Accelerate the employment-generation effort ofthe government; and

Expand the range of opportunities for upward social mobility of the school-going population beyond the traditional higher levels of formaleducation. All government and non-government agenciesreceiving financial and technical assistance from thegovernment shall be required to formulate theirrespective annual agency technical education and skills development plan in line with the nationaltechnical education and skills development plan. The budget to support such plans shall be subject to

review and endorsement by the Authority to theDepartment of Budget and Management. The Authorityshall evaluate the efficiency and effectiveness ofagencies skills development program and schemes to make them conform with the quantitative and qualitative objectives of the national technicaleducation and skills development plan.

SEC. 22. Establishment and Administration of National Trade Skills

Standards. - There shall be national occupational skills

standards to be established by TESDA-accredited industry committees. The Authority shall develop and implement a certification and accreditation program in which private industry groups and trade associations are accredited to conductapproved trade tests, and the local government unitsto promote such trade testing activities in their

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respective areas in accordance with the guidelines to be set by the Authority. The Secretary of Labor and Employment shall determine the occupational tradesfor mandatory certification. All certificatesrelating to the national trade skills testing and

certification system shall be issued by the Authoritythrough the TESDA Secretariat.

SEC. 23. Administration of Training Programs. - The Authority shall

design and administer training programs and schemes the willdevelop the capabilities of public and privateinstitutions to provide quality and cost-effectivetechnical 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 inoccupational trades and related fields of employment,and value development as an integral component of allskills training programs.

SEC. 24. Assistance to Employers and Organizations. - The Authority

shall assist any employer or organization engaged in skillstraining schemes designed to attain its objectivesunder rules and regulations which the Authority shall

establish for this purpose.

SEC. 25. Coordination of All Skills Training Schemes. - In order to

integrate the national skills development efforts, alltechnical education and skills training schemes as provided for in this Act shall be coordinated withthe Authority particularly those having to do withthe setting of trade skills standards. For this purpose, existing technical education and skillstraining programs in the Government and in the

private sector, specifically those wholly or partlyfinanced with government funds, shall be reported tothe Authority which shall assess and evaluate such programs to ensure their efficiency and effectiveness.

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SEC. 26. Industry Boards. - The Authority shall establish effective

and efficient institutional

arrangements with industry boards and such other bodies 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 Authority's objectives.

SEC. 27. Incentives Schemes. - The Authority shall develop and

administer appropriate incentive

schemes to encourage government and privateindustries and institutions to provide high-qualitytechnical education and skills development

opportunities.

SEC. 28. Skills Development Opportunities. - The Authority shall

design and implement an effective and efficient deliverysystem for quality technical education and skillsdevelopment opportunities particularly indisadvantaged sectors, with new tools of wealthcreation and with the capability to take on highervalue-added gainful activities and to share equitablyin productivity gains.

SEC. 29. Devolution of TESDA's Training Function to Local

Governments. - In establishing the delivery system provided forin the preceding Section, the Authority shallformulate, implement and finance a specific plan todevelop the capability of local government units toassume ultimately the responsibility for effectively providing community-based technical education and skills development opportunities: Provided, however,That there shall be formulated and implemented, aneffective and timely retraining of TESDA personnelthat would be affected by the devolution to ensuretheir being retained if the concerned localgovernment units would not be able to absorb them.

SEC. 30. Skills Olympics. - To promote quality skills development in

the country and with the view of participating ininternational skills competitions, the Authority,

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with the active participation of private industries,shall organize and conduct annual National SkillsOlympics. The Authority, through the TESDA Secretariat, shall promulgate the necessaryrules and guidelines for the effective and efficient

conduct of Annual National Skills Olympics and forthe country's participation in internationals skills olympics.

SEC. 31. The TESDA Development Fund. - A TESDA Development Fund is

hereby established, to be

managed/administered by the Authority, the incomefrom which shall be utilized exclusively in awarding of grants and providing assistance to traininginstitutions, 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 one-time lump sum appropriation from the National Government;

An annual contribution from the Overseas Workers Welfare Administration Fund, the amount of whichshould be part of the study on financing in

conjunction with letter (D) of Section 34;

Donations, grants, endowments, and other bequestsor gifts, and any other income generated by the Authority.

The TESDA Board shall be the administrator ofthe fund, and as such, shall formulate thenecessary implementing guidelines for the managementof the fund, subject to the following:

a) unless otherwise stipulated by the privatedonor, only earnings of private contributions shall be used; and b) no part of the seed capital of thefund, including earnings, thereof, shall be used tounderwrite expenses for administration.

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The Board shall appoint a reputablegovernment-accredited investment institutions as fund manager, subject to guidelines promulgated by theBoard.

SEC 32. Scholarship Grants. - The authority shall adopt a system of

allocation and funding of

scholarship grants which shall be responsive to thetechnical education and skills development needs of the different regions in the country.

SEC 33. TESDA Budget. - The amount necessary to finance the initial

implementation of this Act shall be charged against theexisting appropriations of the NMYC and the BTVE.Thereafter, such funds as may be necessary for the

continued implementation of this Act shall beincluded in the annual General Appropriations Act.

SEC 34. Transitory Provisions. - a) Within two (2) months after the

approval of this Act, the President shall, in consultation with the Secretary of Labor and Employment and theSecretary of Education, Culture and Sports, appointthe private sector representatives of the TESDA Board.

Within (3) months after the appointment of the private sector representatives, the President shall,upon the recommendation of the Board, appoint theGeneral-Director.

Within (4) months after the appointment of theDirector General, the Board shall convene todetermine the organizational structure and staffing pattern of the Authority.

Within (1) year after the organization of the Authority, the Board shall commission an expertgroup on funding schemes for the TESDA DevelopmentFund, as provided in Section 31, the results of whichshall be used as the basis for appropriate action bythe Board.

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The personnel of the existing National Manpowerand Youth Council (NMYC) of the Department of Laborand Employment and the Bureau of Technical and Vocational Education (BTVE) of the Department ofEducation, Culture and Sports, shall, in a holdover

capacity, continue to perform their respective dutiesand responsibilities and receive their correspondingsalaries and benefits until such time when theorganizational structure and staffing pattern of the Authority shall have been approved by the Board:Provide, That the preparation and approval of thesaid new organizational structure and staffing pattern shall, as far as practicable, respect and ensure the security of tenure and seniority rightsaffected government employees. Those personnel whose

positions are not included in the new staffing pattern approved by the Board or who are notreappointed or who choose to be separated as a resultof the reorganization shall be paid their separationor retirement benefits under existing laws.

SEC 35. Automatic review. - Every five (5) years, after the

affectivity of this Act, an independent review panel composed of three(3) persons appointed by the President shall review the performance of

the authority and shall make recommendations, based on

its findings to the President shall review the

performance of the Authority and shall make therecommendations, based on the findings to the President and to both Houses of Congress.

SEC. 36. Implementing Rules and Guidelines. - The TESDA board shall

issue, within a period of ninety (90) days after theaffectivity of this Act, the rules and regulationsfor the effective implementation of this Act. TheTESDA Board shall submit tot he committees onEducation, Arts and Culture of both Houses ofCongress copies of the implementing rules and guidelines within (30) days after its promulgation. Any violation of this Section shall render theofficial/s concerned liable under R. A. No. 6713,otherwise knownas the "Code of Conduct and EthicalStandards for Public Officials and Employees" and other existing administrative and/or criminal laws.

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SEC. 37. Repealing Clause. - All laws, presidential decrees,

executive orders, presidential proclamations, rules and regulations or part thereof contrary to orinconsistent with this Act are hereby repealed or modified accordingly.

SEC. 38. Separability Clause. - If any provision of this Act is

declared unconstitutional, the same shall not affect thevalidity and effectivity of the other provisionshereof.

SEC. 39. Effectivity. - This Act shall take effect fifteen (15) days

after its complete publication in two (2)newspapers of generalcirculation.

Approved:

(SGD.) JOSE DE VENECIA, JR. Speaker of the HouseOf Representatives

(SGD.) EDGARDO J. ANGARA

President of the Senate

This Act, which is a consolidation of Senate Bill No.1283 and House Bill No. 12194, was finally passed bythe Senate and the House of Representatives on August23, 1994.

(SGD.) CAMILO L. SABIO Secretary General House of Representatives

(SGD.) EDGARDO E. TUMANGAN Secretary of the Senate

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Approved: August 25, 1994

FIDEL V. RAMOS President of the Philippines

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