Question & AnswerQ&A (Republic Act No. 7686)
The short title of Republic Act No. 7686 is the "Dual Training System Act of 1994."
The policy of the State is to strengthen manpower education and training in the Philippines to ensure a growing supply of educated and skilled manpower equipped with appropriate skills, work habits, and attitudes, adopting the Dual Training System in cooperation with accredited establishments.
The Dual Training System refers to an instructional delivery system of technical and vocational education and training combining in-plant training and in-school training based on a training plan collaboratively designed and implemented by accredited educational institutions and agricultural, industrial, or business establishments.
A trainee is a person qualified to undergo the dual training system for acquiring and developing job qualifications.
The Appropriate Authority plans, sets standards, coordinates, monitors, and allocates resources to support the implementation of the Dual Training System.
No, the trainee is considered a trainee of both the accredited educational institution and the establishment, not an employee, provided the union or workers have been informed in advance.
Participating establishments can deduct 50% of the system expenses paid to the accredited educational institution for their trainees from their taxable income, subject to limits (not exceeding 5% of direct labor expenses or 25 million pesos per year). Donations for the system are also deductible.
They must provide systematic training according to an approved training plan, appoint training officers, supply necessary materials and tools free of charge, allow trainees to attend in-school training, encourage trainee development, entrust suitable jobs, pay daily allowances, and allow time-off for schooling.
Trainees must exert efforts to acquire skills, perform jobs carefully, participate in training programs, follow instructions, observe rules, take care of tools and equipment, keep trade secrets confidential, and maintain updated records.
It is a binding agreement between the establishment, the accredited educational institution, and the trainee that outlines the training plan, duration, daily hours, allowance, rights, obligations, trainee status, conditions for termination, and evaluation system.
Every establishment must sign a life and/or accident insurance policy for the trainee, with the trainee or their beneficiaries as recipients, and pay for the premiums.
The office supervises the in-plant training and is headed by an industrial coordinator who manages the coordination between the institution and industrial establishments for effective training supervision.
Yes, they are authorized to retain a revolving fund from the amounts paid by establishments to improve the operation of the dual training system.
No, nothing in the Act shall be construed to diminish or reduce any privileges already enjoyed under existing laws, decrees, or executive orders.
Donations for the system are deductible and exempt from donor's tax. Essential equipment imported for dual training private educational institutions are exempt from taxes and duties, subject to certification and conditions under the National Internal Revenue Code.