Republic Act No.

7796
TESDA ACT of 1994

Presented By:

Ms. Kristine C. Osano

Education Commission
In 1990, Congress passed Joint Resolution #2 creating the Education Commission. The EDCOM was co-chaired by Senator Edgardo Angara in the Senate and Cong. Carlos Padilla in the House of Representatives The main objective of EDCOM was to study the state of Philippine Education Findings
Education was under financed Education was mismanaged There was a match between industry needs and supply of trained manpower

EDCOMs Recommendations
Trifocalization of the management of the 3 levels of education
Basic Education DepEd Post-Secondary Non-Degree TESDA Higher Education - CHED

S3: Statement of Goals and Objectives

Promote and strengthen the quality of technical education and skills development programs to attain international competitiveness. Focus technical education and skills development on meeting the changing demands for quality middle-level manpower; Encourage critical and creative thinking by disseminating the scientific and technical knowledge base of middle-level manpower development programs; Recognize and encourage the complementary roles of public and private institutions in technical education and skills development and training systems; and Inculcate desirable values through the development of moral character with emphasis on work ethic, self-discipline, self-reliance and nationalism.

S4: Definition of Terms

Skills 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 are systematically provided with learning opportunities to acquire or upgrade, or both, their ability, knowledge and behavior pattern required as qualifications for a job or range of jobs in a given occupational area; Technical Education shall refer to the education 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 of general education, theoretical, scientific and technological studies, and related job skills training;

S4: Definition of Terms

Trade shall mean any group of interrelated jobs or any occupation
which is traditionally or officially recognized as craft or artisan in nature requiring specific qualifications that can be acquired through work experience and/or training; Middle-Level Manpower refers to those :
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 corresponding degree or diploma; or skilled workers who have become highly competent in their trade or craft as attested by industry.

S4: Definition of Terms

Private Enterprises refers to an economic system under which property of all kinds can be privately owned and in which individuals, alone or in association with another, can embark on a business activity. Trainers shall mean persons who direct the practice of skills towards immediate improvement in some task; Trainors/trainers shall mean persons who provide training to trainers aimed at developing the latters capacities for imparting attitudes, knowledge, skills and behavior patterns required for specific jobs, tasks, occupations or group of related occupations; Trainees shall mean persons who are participants in a vocational, administrative or technical training program for the purpose of acquiring and developing job-related skills;

S4: Definition of Terms

Apprenticeship training within employment with compulsory related theoretical instructions involving a contract between an apprentice and an employer on an approved apprenticeable occupation; Apprentice is a person undergoing training for an approved apprenticeable occupation during an established period assured by an apprenticeship agreement; Apprenticeship Agreement is a contract wherein a prospective employer binds himself to train the apprentice who in turn accepts the terms of training for a recognized apprenticeable occupation emphasizing the rights, duties and responsibilities of each party;

S4: Definition of Terms

Apprenticeable Occupation is an occupation officially endorsed by a tripartite body and approved for apprenticeship by the Authority; Learners refer to persons hired as trainees in semi-skilled and other industrial occupations which are non-apprenticeable. 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;

S4: Definition of Terms

Dual System/Training refers to a delivery of quality technical and vocational education which requires training to be carried out alternatively in two venues: In school and in the production plant. 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.

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S5: TESDA; Creation

To implement the policy declared in this Act, there is hereby created a Technical 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-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.

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S6: Composition of Authority

The Authority shall be composed of the TESDA Board and TESDA Secretariat.

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S7: Composition of TESDA Board

The TESDA Board shall be composed of the following: Ms. Rosalinda Baldoz, Chairperson
Secretary of Labor and Employment

Bro. Armin Luistro, Co-Chairperson

Secretary of Education, Culture and Sports

Mr. Gregory Domingo, Co-Chairperson

Secretary of Trade and Industry

Mr. Proceso Alcala, Member

Secretary of Agriculture

Mr. Manuel Roxas II, Member

Secretary of Interior and Local Government

Hon. Joel J. Villanueva, Member

Director-General of the TESDA Secretariat

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Ms. Rosalinda Baldoz

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Bro. Armin Luistro

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Mr. Gregory Domingo

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Mr. Proceso Alcala

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Mr. Manuel Roxas II

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Hon. Joel J. Villanueva

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In addition, the President of the Philippines shall appoint the following members from the private sector two (2) representatives, from the employer/industry organization, 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 the national associations of private technical-vocational education and training institutions, one of whom shall be a woman. As soon as all the members of the private sector are appointed, they shall so organize themselves that the term of office of one-third (1/3) of their number shall expire every year. The member from the private sector appointed thereafter to fill vacancies caused by expiration of terms shall hold office for three (3) years.

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S8: Powers and Functions of the Board

The Authority shall primarily be responsible for formulating, continuing, coordinated and fully integrated technical education and skills development policies, plans and programs taking into consideration the following: the State policy declared herein of giving new direction and thrusts to efforts in developing the quality of Filipino human resource through technical education and skills development; the implementation of the above-mentioned policy requires the coordination and cooperation of policies, plans, and programs of different concerned sectors of Philippine society;

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S8: Powers and Functions of the Board

equal participation of representatives of industry groups, trade associations, employers, workers and government shall be made the rule in order to ensure that urgent needs and recommendations are readily addressed; and improved linkages between industry, labor and government shall be given priority in the formulation of any nationallevel plan.

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S8: Powers and Functions of the Board

The Board, shall have the following powers: promulgate, after due consultation with industry groups, trade associations, employers, workers, policies, plans, programs and guidelines as may be necessary for the effective implementation of this Act; organize and constitute various standing committees, subsidiary groups, or technical working groups for efficient integration, coordination and monitoring technical education and skills development programs at the national, regional, and local levels; enter into, make, execute, perform and carry-out domestic and foreign contracts subject to existing laws, rules and regulations;

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S8: Powers and Functions of the Board

restructure the entire sub-sector consisting of all institutions and programs involved in the promotion and development of middle-level manpower through upgrading, merger and/or phase-out following a user-led strategy; approve trade skills standards and trade tests as established and conducted by private industries; establish and administer a system of accreditation of both public and private institutions; establish, develop and support institutions trainers' training and/or programs;
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S8: Powers and Functions of the Board

lend support and encourage increasing utilization of the dual training system as provided for by Republic Act No. 7686; exact reasonable fees and charges for such tests and trainings conducted and retain such earnings for its own use, subject to guidelines promulgated by the Authority; allocate resources, based on the Secretariats recommendations, for the programs and projects it shall undertake pursuant to approved National Technical Education and Skills Development Plan;

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S8: Powers and Functions of the Board

determine and approve systematic funding schemes such as the Levy and Grant scheme for technical education and skills development purposes; create, when deemed necessary, an Advisory Committee which shall provide expert and technical advice 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 hereby authorized to set aside a portion of its appropriation for its operation; and perform such other duties and functions necessary to carry out the provisions of this Act consistent with the purposes of the creation of TESDA.

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S9: Power to Review and Recommend Action

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

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S10: The TESDA Secretariat

There is hereby created a TESDA Secretariat which shall have the following functions and responsibilities: to establish and maintain a planning process and formulate a national technical education and skills development plan in which the member-agencies and other concerned entities of the Authority at various levels participate; to provide analytical inputs to policy decision-making of the Authority on allocation of resources and institutional roles and responsibilities as shall be embodied in annual agencies technical education and skills development plans, in accordance with the manpower plan for middle-level skilled workers as approved by the Authority;

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S10: The TESDA Secretariat

to recommend measures, and implement the same upon approval by the Authority, for the effective and efficient implementation of the national technical education and skills development plan; to propose to the Authority the specific allocation of resources for the programs and projects it shall undertake pursuant to approved national technical education and skills development plan; to submit to the Authority periodic reports on the progress and accomplishment of work programs of implementation of plans and policies for technical educational and skills development; to prepare for approval by the Authority an annual report to the President on technical education and skills development;

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S10: The TESDA Secretariat

to implement and administer the apprenticeship program as provided for in Section 18 of this 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 shall implement the declared policy of this Act; and to perform such other functions and duties as may be assigned by the Board.

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S11: Director-General
The TESDA Secretariat shall be headed by a DirectorGeneral, who shall likewise be a member of the TESDA Board. As Chief Executive Officer of the TESDA Secretariat, the Director-General shall exercise general supervision and control over its technical and administrative personnel.

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S12: Deputy Director-General

The Director-General shall be assisted by two (2) Deputy Directors-General to be appointed by the President of the Philippines on recommendation of the TESDA Board. The Deputy Directors-General shall enjoy the benefits, privileges and emoluments equivalent to the rank of Assistant Secretary.

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S13: 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 to be appointed by the TESDA Board.

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S14: Structural Organization and Personnel

Planning Office (PO)
to design and establish planning processes and methodologies which will particularly enhance the efficiency of resource allocation decisions within the technical education and skills development sector; to lead in the preparation and periodic updating of a national plan for technical education and skills development which shall become the basis for resource allocation decisions within the sector; to conduct researches, studies and develop information systems for effective and efficient planning and policy-making within the sector; to develop and implement programs and projects aimed at building up planning capabilities of various institutions within the sector; and to perform such other powers and functions as may be authorized by the Authority.

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S14: Structural Organization and Personnel

Skills Standards and Certification Office (SSCO)
to develop and establish a national system of skills standardization, testing and certification in the country; to design, innovate and adopt processes and methodologies whereby industry groups and workers guilds take note on progressively the responsibility of setting skills standards for identified occupational areas, and the local government units actively participate in promoting skills standards, testing and certification; to establish and implement a system of accrediting private enterprises, workers associations and guilds and public institutions to serve as skills testing venues; to conduct research and development on various occupational areas in order to recommend policies, rules and regulations for effective and efficient skills and standardization, testing and certification system in the country; and to perform such other duties and functions as may be authorized.

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S14: Structural Organization and Personnel

National Institute for Technical Vocational and Education Training (NITVET)
to serve as the research and development arm of the government in the field of technicalvocational education and training; to develop curricula and program standards for various technical-vocational education and training areas; to develop and implement an integrated program for continuing development of trainers, teachers and instructors within the technical education and skills development sector; to develop programs and projects which will build up institutional capabilities within the sector; and to perform such other powers and functions as may be authorized.

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S14: Structural Organization and Personnel

Office of Formal Technical Vocational Education and Training (OFFVET) to provide policies, measures and guidelines for effective and efficient administration of formal technical-vocational education and training programs implementing by various institutions in the country; to establish and maintain a system for accrediting, coordinating integrating, monitoring and evaluating the different formal technical-vocational education and training program vis-a-vis the approved national technical education and skills development plan; to establish and maintain a network of institutions engaged in institutionalized technicalvocational education and training, particularly with local government units; and to perform such other duties and functions as may be authorized.

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S14: Structural Organization and Personnel

Office of the Non-Formal Technical-Vocational Education and Training (ONFTVET)
to provide direction, policies and guidelines for effective implementation of non-formal, community-based technical-vocational education and training; to accredit, coordinate, monitor and evaluate various non-formal technical-vocational education and training programs implemented by various institutions particularly, by local government units; to establish and maintain a network of institutions including local government units, nongovernment organizations implementing non-formal, community-based technical-vocational education and training; to perform such other powers and functions as may be authorized.

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S14: Structural Organization and Personnel

Office of Apprenticeship (OA)
to provide direction, policies and guidelines on the implementation of the Apprenticeship system; to accredit, coordinate, monitor and evaluate all apprenticeship schemes and program implemented by various institutions and enterprises; to establish a network of institutions and enterprises conducting apprenticeship schemes and programs; to perform such other powers and functions as may be authorized.

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S15: The Provincial TESDA Offices

The Provincial Offices shall be headed by Skill Development Officers who shall have the rank and emoluments of a Director III. The Provincial TESDA Offices shall be under the direct control of the Director-General and shall have the following functions: chanroblespublishingcompany 1) to serve as Secretariat to Provincial TESDA Committees; 2) to provide technical assistance particularly to local government units for effective supervision, coordination,

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S15: The Provincial TESDA Offices

Functions: to serve as Secretariat to Provincial TESDA Committees; to provide technical assistance particularly to local government units for effective supervision, coordination, integration and monitoring of technicalvocational education and training programs within their localities; to review and recommend TESDA programs for implementation within their localities; and to perform such other duties and functions as may be authorized.

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S16: Compliance with the Salaries Standardization Law

The compensation and emoluments of the officials and employees of the Authority shall be in accordance with the salary standardization law and other applicable laws under the national compensation and classification plan.

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S17: Consultants and Technical Assistance, Publication and Research

In pursuing its objectives, the Authority is hereby authorized to set aside a portion of its appropriation for the hiring of services of qualified consultants, and private organizations for research work and publication in the field of technical education and skills development. It shall avail itself of the services of other agencies of the Government as may be required.

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S18: Transfer of Apprenticeship Program

The Apprenticeship Program of the Bureau of Local Employment of the Department of Labor and Employment shall be transferred to the Authority which shall implement and administer said program in accordance with existing laws, rules and regulations.

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S19: Technical Education and Skills Development Committees

The Authority shall establish Technical Education and Skills Development Committees at the regional and local levels to coordinate and monitor the delivery of all skills development activities by the public and private sectors.

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S20: Skills Development Centers

The Authority shall strengthen the network of national, regional and local skills training centers for the purpose of promoting skills development.

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S21: Formulation of a Comprehensive Development Plan for MiddleLevel Manpower

The Authority shall formulate a comprehensive development plan for middle-level manpower based on a national employment plan or policies for the optimum allocation, development and utilization of skilled workers for employment entrepreneurship and technology development for economic and social growth.

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S21: Formulation of a Comprehensive Development Plan for MiddleLevel Manpower

The comprehensive plan shall provide for 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 social accountability of technical education and skills development; accelerate the employment-generation efforts of the government; and expand the range of opportunities for upward social mobility of the school-going population beyond the traditional higher levels of formal education.

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S22: Establishment and Administration of National Trade Skills Standards

There shall be national occupational skills standards to be established by TESDA-accredited industry committees.

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S23: Administration of Training

The Authority shall design and administer training programs and schemes that will develop the capabilities of public and private institutions to provide quality and cost-effective technical educational and skills development and related opportunities.

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S24: Assistance to Employers and Organizations

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

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S25: Coordination of All Skills Training Schemes

In order to integrate the national skills development efforts, all technical education and skills training schemes as provided for in this Act shall be coordinated with the Authority particularly those having to do with the setting of trade skills standards.

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S26: 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 Authoritys objectives.

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S27: Incentives Schemes

The Authority shall develop and administer appropriate incentives schemes to encourage government and private industries and institutions to provide high-quality technical education and skills development opportunities.

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S28: Skills Development Opportunities

The Authority shall design and implement an effective and efficient delivery system for quality technical education and skills development opportunities particularly in disadvantaged sectors, with new tools of wealth creation and with the capability to take on higher value-added gainful activities and to share equitably in productivity gains.

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S29: Devolution of TESDAs Training Function to Local Government

In establishing the delivery system provided for in the preceding Section, the Authority shall formulate, implement and finance a specific plan to develop the capability of local government units to assume ultimately the responsibility for effectively providing communitybased technical education and skills development opportunities.

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S30: Skills Olympics

To promote quality skills development in the country and with the view of participating in international skills competitions, the Authority, with the active participation of private industries, shall organize and conduct annual National Skills Olympics.

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S31: The TESDA Development Fund

A TESDA Development Fund is hereby established, to be managed/administered by the Authority, the income from which shall be utilized exclusively in awarding of grants and providing assistance to training institutions, industries, local government units for upgrading their capabilities and to develop and implement training and training-related activities.

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S31: The TESDA Development Fund

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 which should be part of the study on financing in conjunction with letter (D) of Section 34; donations, grants, endowments, and other bequests or gifts, and any other income generated by the Authority.

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S31: The TESDA Development Fund

The TESDA Board 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: unless otherwise stipulated by the private donor, only earnings of private contributions shall be used; and no part of the seed capital of the fund, including earnings, thereof, shall be used to underwrite expenses for administration.

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S32: Scholarship Grants

The Authority shall adopt a system of allocation and funding of scholarship grants which shall be responsive to the technical education and skills development needs of the different regions in the country.

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S33: TESDA Budget

The amount necessary to finance the initial implementation of this Act shall be charged against the existing appropriations of the NMYC and the BTVE.

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S34: Transitory Provisions

appoint the private sector representatives of the TESDA Board within two (2) months after the approval of this Act appoint the Director-General within three (3) months after the appointment of the private sector representatives the Board shall convene to determine the organizational structure and staffing pattern of the Authority within four (4) months after the appointment of the Director-General the Board shall commission an expert group on funding schemes for the TESDA Development Fund within one (1) year after the organization of the Authority The personnel of the existing National Manpower and Youth Council (NMYC) of the Department of Labor and Employment and the Bureau of Technical and Vocational Education (BTVE) of the Department of Education, Culture and Sports, shall, in a holdover capacity, continue to perform their respective duties and responsibilities and receive their corresponding salaries and benefits until such time when the organizational structure and staffing pattern of the Authority shall have been approved by the Board:

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S35: Automatic Review

Every five (5) years, after the effectivity 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 and to both Houses of Congress.

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S36: Implementing Rules and Guidelines

The TESDA Board shall issue, within a period of ninety (90) days after the effectivity of this Act, the rules and regulations for the effective implementation of this Act.

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S37: Repealing Clause

All laws, presidential decrees, executive orders, presidential proclamation, rules and regulations or parts thereof contrary to or inconsistent with this Act are hereby repealed or modified accordingly.

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S38: Separability Clause

If any provision of this Act is declared unconstitutional, the same shall not affect the validity and effectivity of the other provisions hereof.

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S39: Effectivity Clause

This Act shall take effect fifteen (15) days after its complete publication in two (2) newspapers of general circulation.

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