Title
Creation of Technical Education and Skills Development Authority
Law
Republic Act No. 7796
Decision Date
Aug 25, 1994
The TESDA Act of 1994 establishes the Technical Education and Skills Development Authority (TESDA) in the Philippines to provide high-quality technical education and skills development programs, with a focus on meeting the changing demands for middle-level manpower and encouraging the participation of private enterprises.

Questions (Republic Act No. 7796)

It is the “Technical Education and Skills Development Act of 1994” or “TESDA Act of 1994,” also referred to as Republic Act No. 7796.

To provide relevant, accessible, high-quality and efficient technical education and skills development to support development of high-quality Filipino middle-level manpower responsive to Philippine development goals and priorities; and to encourage active participation of concerned sectors, particularly private enterprises.

To: (1) promote and strengthen quality to attain international competitiveness; (2) focus on changing demands for quality middle-level manpower; (3) encourage critical/creative thinking via scientific and technical knowledge dissemination; (4) recognize complementary roles of public and private institutions; and (5) inculcate desirable values emphasizing work ethic, self-discipline, self-reliance and nationalism.

Technical Education is 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 middle-level workers through general education, theoretical/scientific/technological studies, and related job skills training.

Those who have acquired practical skills and knowledge through formal or non-formal education/training equivalent to at least secondary education but preferably post-secondary education with a corresponding degree or diploma, or skilled workers highly competent in their trade/craft as attested by industry.

TESDA replaces and absorbs the National Manpower and Youth Council (NMYC), the Bureau of Technical and Vocational Education (BTVE), the personnel/functions pertaining to technical-vocational education in DECS regional offices, and the apprenticeship program of the Bureau of Local Employment of the DOLE.

Board members include: 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 TESDA (Secretariat/Member). The President also appoints private sector members: two employer/industry representatives (one woman), three labor sector representatives (one woman), and two national associations of private TVET institutions (one woman).

They may be regularly represented by an undersecretary or deputy-director general designated by the government member for the purpose.

Examples include: (1) promulgate policies/plans/programs/guidelines for implementation; (2) organize committees/technical working groups; (3) enter into contracts (domestic and foreign) subject to law; (4) approve trade skills standards and trade tests conducted by private industries; (5) establish and administer accreditation; (6) establish trainors’ training programs; (7) administer levy/grant schemes; (8) allocate resources consistent with the National Technical Education and Skills Development Plan; among others.

TESDA must review and recommend action to concerned authorities on proposed technical assistance programs and grants-in-aid for technical education or skills development (including government-to-government or international/foundation/foreign agreements).

The Secretariat is headed by a Director-General, who is also a member of the TESDA Board. The Director-General is appointed by the President.

One Deputy Director-General is responsible for Vocational and Technical Education and Training; the other is responsible for Policies and Planning.

To coordinate and monitor delivery of all skills development activities by public and private sectors at regional and local levels, and to serve as the Technical Education and Skills Development Committees of the Regional and local development councils; with composition determined by the Director-General subject to guidelines.

Skills training centers in vocational and technical schools, technical institutes, polytechnic colleges, and other duly accredited public and private dual system educational institutions.

TESDA formulates and periodically updates a comprehensive plan based on national employment policies for optimum allocation/development/utilization of skilled workers. After adoption, it is submitted to the President for approval, and thereafter becomes the plan for technical education and skills development within the framework of the National Development Plan.

It refers to a legal contribution from participating employers (often as a percentage of payroll) turned over or rebated to enterprises offering employee training programs. Systematic funding schemes such as Levy and Grant are determined and approved by the TESDA Board under Section 8.

A TESDA Development Fund is established, managed/administered by TESDA, with income used exclusively for grants and assistance to training institutions, industries and LGUs for capability upgrading and training-related activities. The Board formulates guidelines; only earnings of private contributions are used unless stipulated by donor; no part of seed capital (including earnings) may underwrite administration expenses; and the Board appoints a reputable government-accredited investment institution as fund manager.

Within 2 months: President appoints private sector TESDA Board reps (in consultation with Sec. of DOLE and DepEd). Within 3 months after appointment: President appoints Director-General upon Board recommendation. Within 4 months after Director-General appointment: Board determines organizational structure and staffing pattern. Within 1 year after organization: Board commissions an expert group on funding schemes for the TESDA Development Fund.

15 days after its complete publication in two (2) newspapers of general circulation.


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