QuestionsQuestions (Republic Act No. 7686)
It is known as the “Dual Training System Act of 1994.”
To strengthen manpower education and training so there is an ever-growing supply of educated and skilled manpower; to adopt the Dual Training System in duly accredited vocational and technical schools in cooperation with accredited establishments.
Among others: (1) encourage increased utilization of the dual system; (2) encourage increased investment in TVET, especially in rural areas; (3) enhance employability and productivity (analytical/creative thinking, problem-solving, manipulative competencies, values/work ethics); and (4) strengthen training cooperation with local government units and establishments.
An instructional delivery system combining in-plant training and in-school training based on a training plan collaboratively designed and implemented by an accredited educational institution/training center and accredited establishments, with prior notice and advice to the concerned LGU; the two instructing parties coordinate rather than operate independently.
A person qualified to undergo the dual training system to acquire and develop job qualifications.
A public or private institution duly recognized and authorized by the appropriate authority, in coordination with business and industry, to participate in the dual training system.
The trainee is considered not an employee of the business/industrial establishment but rather a trainee of both the accredited educational institution/training center and the participating establishments (with prior notice to workers/union of the latter).
Priority of employment in that same agricultural, industrial, or business establishment. The appropriate authority must keep a roll of successful trainees for identification.
A tax deduction equal to 50% of system expenses paid to the educational institution for trainees, subject to caps: not exceeding 5% of total direct labor expenses and not exceeding P25,000,000 a year; and donations for system operation are also deductible.
Provide training systematically per an approved training plan; appoint a training officer; provide consumable materials/basic hand tools/equipment free of charge; allow in-school training and examinations; require keeping report book up-to-date; protect trainee from physical/moral danger and encourage personality development; entrust related jobs commensurate with capability; pay the daily allowance to the educational institution/training center; and allow time-off for in-school training.
Exert effort to acquire knowledge/abilities; perform entrusted jobs carefully; attend training programs for which time-off is granted; follow instructions of the training officer or authorized persons; observe rules of behavior; use tools/equipment with due care; do not reveal business/trade secrets; and keep record books up-to-date.
Jointly design, implement, and evaluate the training plan; provide theoretical instruction (specific, general, occupation-related); appoint industrial coordinators to supervise in-plant training; pay the trainee daily allowance; and perform other necessary tasks in furtherance of objectives.
Before an establishment begins with an accredited institution/training center and the trainee (or representative), the establishment must provide the institution and trainee a copy of the signed agreement. The MOA must include items such as the training plan, training purpose/nature, commencement/duration and hours, normal daily hours, allowance not below 75% of the applicable minimum daily wage, rights/obligations, trainee status, termination conditions, performance/monitoring/evaluation system, and other essential particulars.
Every participating establishment must sign a life and/or accident insurance policy on the trainee, with insured plus spouse/children/parents as beneficiaries; the establishment pays the premiums.
The accredited educational institution/training center may retain as a revolving fund the amount paid by establishments representing actual dual training expenses; it shall be used to improve the operation of the dual training system.
Violation of Section 17 renders concerned official/s liable under RA 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees) and other existing administrative and/or criminal laws.
Section 18: donations/contributions/bequests/subsidies for operation of the system are deductible and exempt from donor’s tax subject to NIRC conditions; essential equipment/apparatus/materials imported by accredited dual training private educational institutions may be exempt from taxes/duties if certified, exclusively used for dual training, and not available locally in sufficient comparable quantity/quality at reasonable prices; certain taxes/duties for accredited government/dual training educational institutions are automatically appropriated. Section 19: initial implementation funded by P1,000,000 from the current year’s contingency fund; later amounts included in annual GAA.