Creation of Technical Education and Skills Development Authority

Policy, goals, and objectives

The State policy is to provide relevant, accessible high quality and efficient technical education and skills development to produce high quality Filipino middle-level manpower responsive to Philippine development goals and priorities (Section 2).
The State shall encourage active participation of concerned sectors, particularly private enterprises, as direct participants and immediate beneficiaries of a trained and skilled workforce providing technical education and skills development opportunities (Section 2).
The Act’s goals include attaining international competitiveness through quality technical education and skills development programs (Section 3).
The Act’s goals include focusing technical education and skills development on meeting changing demands for quality middle-level manpower (Section 3).
The Act’s goals include inculcating desirable values through moral character emphasizing work ethic, self-discipline, self-reliance and nationalism (Section 3).

Core definitions established

“Skill” means the acquired and practiced ability to carry out a task or job (Section 4).
“Skills Development” is the process of systematically providing learning opportunities to acquire or upgrade (or both) ability, knowledge, and behavior patterns required as qualifications for a job or range of jobs in an occupational area (Section 4).
“Technical Education” refers to education at post-secondary and lower tertiary levels as non-degree programs preparing technicians, para-professionals and other middle level workers through general education, theoretical, scientific and technological studies, and related job skills training (Section 4).
“Trade” means any group of interrelated jobs or any occupation recognized as craft or artisan nature requiring specific qualifications acquired through work experience and/or training (Section 4).
“Middle-Level Manpower” refers to those with practical skills and knowledge 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 or craft as attested by industry (Section 4).
“Private Enterprises” include industrial, agricultural, or agro-industrial establishments engaged in production, manufacturing, processing, repacking or assembly of goods, including service-oriented enterprises (Section 4).
“Trainers” are persons who direct practice of skills for immediate task improvement (Section 4).
“Trainors/trainers” are persons providing training to trainers to develop their capacities for imparting required attitudes, knowledge, skills and behavior patterns for specific jobs or related occupations (Section 4).
“Trainees” are participants in vocational, administrative, or technical training programs to acquire and develop job-related skills (Section 4).
“Apprenticeship” training is within employment with compulsory related theoretical instructions involving a contract between an apprentice and an employer on an approved apprenticeable occupation (Section 4).
“Apprentice” is a person undergoing training for an approved apprenticeable occupation during an established period assured by an apprenticeship agreement (Section 4).
“Apprenticeship Agreement” is a contract where a prospective employer binds itself to train an apprentice and the apprentice accepts terms of training for a recognized apprenticeable occupation, emphasizing rights, duties and responsibilities of each party (Section 4).
“Apprenticeable Occupation” is an occupation endorsed by a tripartite body and approved for apprenticeship by the Authority (Section 4).
“Learners” are persons hired as trainees in semi-skills and other industrial occupations which are non-apprenticeable; learnership programs must be approved by the Authority (Section 4).
“User-Led” or “Market-Driven Strategy” promotes strengthened linkages between educational/training institutions and industry to ensure appropriate skills and knowledge are provided (Section 4).
“Dual System/Training” is a delivery system requiring alternately training in school and in the production plant, with school training providing theoretical foundation and guidance, and in-plant training developing skills in actual work conditions (Section 4).
“Levy Grant System” is a legal contribution from participating employers (often as a percentage of payroll) turned over or rebated to enterprises offering employee training programs (Section 4).

Establishment and absorption of TESDA

A Technical Education and Skills Development Authority (TESDA) is created to implement the Act’s declared policy (Section 5).
The Authority replaces and absorbs 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 (Section 5).

Authority structure and governance

TESDA consists of the TESDA Board and the TESDA Secretariat (Section 6).
The TESDA Board is composed of:
- Secretary of Labor and Employment as Chairperson;
- Secretary of Education, Culture and Sports as Co-Chairperson;
- Secretary of Trade and Industry as Co-Chairperson;
- Secretary of Agriculture as Member;
- Secretary of Interior and Local Government as Member;
- Director-General of TESDA as Member;
- TESDA Secretariat as Member (Section 7).
The President shall appoint private sector members: two (2) representatives from the employer/industry organization (one woman), three (3) from the labor sector (one woman), and two (2) from national associations of private technical-vocational education and training institutions (one woman) (Section 7).
Private sector members must organize so that the term of office of one-third (1/3) of their number expires every year (Section 7).
A private sector member appointed to fill vacancies due to expiration of terms holds office for three (3) years (Section 7).
The President may revise TESDA Board membership whenever necessary for effective performance through an administrative order (Section 7).
The TESDA Board must meet at least twice a year or as frequently as deemed necessary by the Chairperson (Section 7).
In the absence of the Chairperson, a Co-Chairperson presides (Section 7).
When a Government member cannot attend, it must be through regular representation by an undersecretary or deputy-director general designated for the purpose (Section 7).
Board benefits, privileges and emoluments must be consistent with existing laws and rules (Section 7).

Board powers, Secretariat role

The Authority primarily formulates, continuously updates, coordinates, and fully integrates technical education and skills development policies, plans, and programs (Section 8).
Board formulation must take into account: the State policy giving new direction and thrust; coordination needs across sectors; rule for equal participation of industry, trade associations, employers, workers and government; and priority to improved industry-labor-government linkages in national-level planning (Section 8).
The Board shall promulgate policies, plans, programs and guidelines necessary for effective implementation, after due consultation with industry groups, trade associations, employers and workers (Section 8).
The Board may organize standing committees, subsidiary groups, or technical working groups for integration, coordination, and monitoring at national, regional, and local levels (Section 8).
The Board may enter into domestic and foreign contracts subject to existing laws, rules and regulations (Section 8).
The Board must restructure the entire sub-sector of institutions and programs for middle-level manpower through upgrading, merger and/or phase-out following a user-led strategy (Section 8).
The Board shall approve trade skills standards and trade tests established and conducted by private industries (Section 8).
The Board must establish and administer a system of accreditation for both public and private institutions (Section 8).
The Board shall establish, develop and support institutions’ trainers’ training and/or programs (Section 8).
The Board shall support and encourage increasing utilization of the dual training system under Republic Act No. 7686 (Section 8).
The Board may exact reasonable fees and charges for tests and trainings conducted and retain such earnings for its own use, subject to guidelines promulgated by the Authority (Section 8).
The Board shall allocate resources based on the Secretariat’s recommendations for approved programs and projects under the approved National Technical Education and Skills Development Plan (Section 8).
The Board may create an Advisory Committee chosen from the academe and private sector and must set aside a portion of appropriation for its operation when the Advisory Committee is created (Section 8).
The Authority shall perform other duties and functions necessary to carry out the Act’s provisions consistent with its purposes (Section 8).
The Authority must review and recommend action to concerned authorities on proposed technical assistance programs and grants-in-aid for technical education and skills development, including arrangements between the Government of the Philippines and other nations and international/foreign organizations, both here and abroad (Section 9).
The TESDA Secretariat establishes and maintains planning processes and formulates a national technical education and skills development plan with participation of member-agencies and other concerned entities (Section 10).
The Secretariat provides analytical inputs for policy decision-making on resource allocation and institutional roles, embodied in annual agencies plans aligned with the manpower plan for middle-level skilled workers approved by the Authority (Section 10).
The Secretariat recommends measures and implements them upon Authority approval for effective and efficient national plan implementation (Section 10).
The Secretariat proposes to the Authority the specific allocation of resources for programs and projects under the approved national plan (Section 10).
The Secretariat must submit periodic reports to the Authority on progress and accomplishment of implementation work programs (Section 10).
The Secretariat must prepare an annual report to the President for Authority approval (Section 10).
The Secretariat implements and administers the apprenticeship program provided in Section 18 (Section 10).
The Secretariat prepares and implements, upon Authority approval, a program for training of trainers, supervisors, planners and managers provided in Section 23 (Section 10).
The Secretariat may enter into agreements to implement approved plans and programs and perform activities to implement the policy of the Act (Section 10).
The Secretariat performs other functions and duties assigned by the Board (Section 10).

Director-General, deputies, and offices

TESDA Secretariat is headed by a Director-General who is also a member of the TESDA Board (Section 11).
The Director-General is appointed by the President of the Philippines and enjoys benefits, privileges and emoluments equivalent to the rank of Undersecretary (Section 11).
The Director-General, as Chief Executive Officer of the Secretariat, exercises general supervision and control over technical and administrative personnel (Section 11).
The Director-General is assisted by two (2) Deputy Directors-General appointed by the President upon recommendation of the TESDA Board (Section 12).
One Deputy Director-General is responsible for Vocational and Technical Education and Training, and one is responsible for Policies and Planning (Section 12).
Deputy Directors-General enjoy benefits equivalent to the rank of Assistant Secretary (Section 12).
The Director-General is also assisted by a Chief of Services for Administration, a Career Service Official appointed by the TESDA Board (Section 13).
The TESDA Secretariat has offices under an Executive Director appointed by the Director-General with the rank and emoluments of Director IV (Section 14).
The Planning Office (PO) designs and establishes planning processes and methodologies for efficient resource allocation decisions; prepares and periodically updates the national technical education and skills development plan; conducts research and develops information systems for planning and policy-making; develops and implements programs/projects building planning capabilities; and performs other powers/functions authorized by the Authority (Section 14).
The Skills Standards and Certification Office (SSCO) develops and establishes a national skills standardization, testing and certification system; designs processes for industry groups and workers’ guilds’ progressively responsible setting of skills standards and LGU participation; accredits private enterprises, workers’ associations and guilds, and public institutions as skills testing venues; conducts R&D on occupational areas to recommend policies and rules; and performs other authorized duties (Section 14).
The National Institute for Technical Vocational and Education Training (NITVET) serves as the government’s R&D arm for technical-vocational education and training; develops curricula and program standards; develops and implements an integrated continuing development program for trainers, teachers and instructors; develops programs/projects building institutional capabilities; and performs other authorized powers/functions (Section 14).
The Office of Formal Technical Vocational Education and Training (OFFVET) provides policies, measures and guidelines for administering formal TVET programs; establishes and maintains accreditation, coordination, integration, monitoring and evaluation systems for formal TVET programs vis-à-vis approved national plans; establishes and maintains a network of institutions engaged in institutionalized TVET with LGUs; and performs other authorized duties (Section 14).
The Office of Non-Formal Technical-Vocational Education and Training (ONFTVET) provides direction, policies and guidelines for non-formal community-based TVET; accredits, coordinates, monitors and evaluates non-formal TVET programs implemented by institutions, particularly LGUs; establishes and maintains a network of institutions including LGUs and NGOs implementing non-formal community-based TVET; and performs other authorized powers/functions (Section 14).
The Office of Apprenticeship (OA) provides direction and policies for apprenticeship system implementation; accredits, coordinates, monitors and evaluates apprenticeship schemes and programs; establishes a network of institutions and enterprises conducting apprenticeship schemes and programs; and performs other authorized powers/functions (Section 14).
Regional TESDA Offices are headed by Regional Directors of the rank and emoluments of Director IV appointed by the President and under the direct control of the Director-General (Section 14).
Regional Offices serve as Secretariat to Regional Technical Education Skills Development Committees; supervise, coordinate and integrate programs/projects in their jurisdictions; develop and recommend TESDA programs for regional/local implementation within Authority policies; and perform other duties as deemed necessary (Section 14).
Provincial TESDA Offices are headed by Skill Development Officers of the rank and emoluments of Director III under the direct control of the Director-General (Section 15).
Provincial Offices serve as Secretariat to Provincial TESDA Committees; provide technical assistance to LGUs for supervision, coordination, integration and monitoring of local TVET programs; review and recommend TESDA programs for local implementation; and perform other duties authorized by the Authority (Section 15).
TESDA Secretariat may be composed of additional offices as deemed necessary by the Authority, and the Director-General appoints necessary personnel subject to Civil Service laws, rules and regulations (Section 15).
TESDA officials’ and employees’ compensation and emoluments must comply with the Salaries Standardization Law and other applicable laws under the national compensation and classification plan (Section 16).

Policy implementation planning, standards, training systems

The Authority must 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 (Section 21).
After adoption by the Authority, the plan must be updated periodically and submitted to the President for approval (Section 21).
After Presidential approval, the plan becomes the plan for technical education and skills development for the entire country within the framework of the National Development Plan (Section 21).
The Authority directs the TESDA Secretariat to call on member-agencies, private sector and academe for assistance in this effort (Section 21).
The comprehensive plan must 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 worker-trainees;
- improve quality, relevance, and social accountability of technical education and skills development;
- accelerate government employment-generation efforts; and
- expand opportunities for upward social mobility beyond traditional higher formal education levels (Section 21).
Government and non-government agencies receiving financial and technical assistance from the government must formulate annual agency technical education and skills development plans aligned with the national plan (Section 21).
Budgets supporting such plans are subject to review and endorsement by the Authority to the Department of Budget and Management (Section 21).
The Authority evaluates the efficiency and effectiveness of agencies’ skills development programs and schemes to conform with the quantitative and qualitative objectives of the national plan (Section 21).
National occupational skills standards must be established by TESDA-accredited industry committees (Section 22).
TESDA must develop and implement a certification and accreditation program accrediting private industry groups and trade associations to conduct approved trade tests, and accrediting local government units to promote trade testing activities in their areas in accordance with Authority guidelines (Section 22).
The Secretary of Labor and Employment determines the occupational trades for mandatory certification (Section 22).
Certificates relating to the national trade skills testing and certification system are issued by the Authority through the TESDA Secretariat (Section 22).
The Authority designs and administers training programs and schemes to develop capabilities of public and private institutions to provide quality and cost-effective technical education and skills development (Section 23).
Training programs and schemes include:
- teacher’s trainors’ training;
- skills training for entrepreneur development and technology development;
- cost-effective training in occupational trades and related employment fields; and
- value development as an integral component of all skills training programs (Section 23).
The Authority assists any employer or organization engaged in skills training schemes designed to attain its objectives, under Authority rules and regulations (Section 24).
The Authority coordinates all technical education and skills training schemes under the Act, particularly those involving trade skills standards setting (Section 25).
Existing technical education and skills training programs in government and private sectors that are wholly or partly financed with government funds must be reported to the Authority for assessment and evaluation to ensure efficiency and effectiveness (Section 25).
The Authority establishes industry boards and effective institutional arrangements to ensure direct participation of employers and workers in design and implementation of skills development schemes, trade skills standardization and certification, and other functions fulfilling Authority objectives (Section 26).
The Authority develops and administers incentive schemes encouraging government and private industries and institutions to provide high-quality technical education and skills development opportunities (Section 27).
The Authority designs and implements an effective and efficient delivery system for quality technical education and skills development opportunities, particularly in disadvantaged sectors, with wealth-creation tools, capability for higher value-added gainful activities, and equitable sharing in productivity gains (Section 28).
The Authority must formulate, implement and finance a specific plan to develop LGU capability to ultimately assume responsibility for providing community-based technical education and skills development opportunities (Section 29).
When devolving training functions, the Authority must ensure effective and timely retraining of TESDA personnel affected by the devolution so they are retained if concerned LGUs cannot absorb them (Section 29).

Committees, centers, and training delivery

The Authority establishes Technical Education and Skills Development Committees at regional and local levels to coordinate and monitor skills development activities by public and private sectors (Section 19).
These committees serve as the Technical Education and Skills Development Committees of the Regional and local development councils (Section 19).
The Director-General determines committee composition subject to Authority-promulgated guidelines (Section 19).
The Authority strengthens the network of national, regional and local skills training centers to promote skills development (Section 20).
The network includes skills training centers in vocational and technical schools, technical institutes, polytechnic colleges, and other duly accredited public and private dual system educational institutions (Section 20).
Skills training centers are administered and operated under rules and regulations established by the Authority in accordance with the National Technical Education and Skills Development Plan (Section 20).

Skills Olympics and scholarships

The Authority organizes and conducts annual National Skills Olympics with active participation of private industries to promote quality skills development and international skills competition participation (Section 30).
The Authority, through the TESDA Secretariat, promulgates necessary rules and guidelines for annual National Skills Olympics conduct and participation in international skills olympics (Section 30).
The Authority adopts a system for allocating and funding scholarship grants responsive to technical education and skills development needs of different regions (Section 32).

TESDA Development Fund and budget

A TESDA Development Fund is established to be managed/administered by the Authority (Section 31).
Fund income must be utilized exclusively for awarding grants and providing assistance to training institutions, industries and local government units for upgrading capabilities and for developing and implementing training and training-related activities (Section 31).
Fund contributions include:
- a one-time lump sum appropriation from the National Government;
- an annual contribution from the Overseas Workers Welfare Administration Fund, with the amount part of a 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 (Section 31).
The TESDA Board administers the fund and formulates implementing guidelines for management (Section 31).
Implementing guidelines must comply with: unless otherwise stipulated by private donors, only earnings of private contributions may be used; and no part of the fund’s seed capital (including earnings) may be used to underwrite administration expenses (Section 31).
The Board appoints a reputable government-accredited investment institution as fund manager subject to Board-promulgated guidelines (Section 31).
Initial implementation financing is charged against existing appropriations of the NMYC and the BTVE (Section 33).
Funding for continued implementation is included in the annual General Appropriations Act (Section 33).

Apprenticeship transfer and administration

The Apprenticeship Program of the Bureau of Local Employment of the Department of Labor and Employment is transferred to the Authority for implementation and administration in accordance with existing laws, rules and regulations (Section 18).
The TESDA Secretariat implements and administers the apprenticeship program under Section 18 (Section 10).
The OA provides direction, policies, accreditation, coordination, monitoring and evaluation for apprenticeship schemes and programs (Section 14).

Implementing rules, consultants, research

The Authority is authorized to set aside a portion of its appropriation for hiring qualified consultants and private organizations for research work and publication in the field of technical education and skills development and to avail itself of other government agency services required (Section 17).
The TESDA Board must issue rules and regulations for effective implementation within ninety (90) days after effectivity (Section 36).
The TESDA Board must submit copies of implementing rules and guidelines to the Committees on Education, Arts and Culture of both Houses of Congress within thirty (30) days after promulgation (Section 36).
Any violation of Section 36 renders the concerned officials liable under Republic Act No. 6713, the “Code of Conduct and Ethical Standards for Public Officials and Employees,” and other existing administrative and/or criminal laws (Section 36).

Transitory provisions and timelines

Within two (2) months after approval of the Act, the President appoints the private sector representatives of the TESDA Board in consultation with the Secretary of Labor and Employment and the Secretary of Education, Culture and Sports (Section 34).
Within three (3) months after private sector representatives are appointed, the President appoints the Director-General upon recommendation of the Board (Section 34).
Within four (4) months after the appointment of the Director-General, the Board convenes to determine TESDA organizational structure and staffing pattern (Section 34).
Within one (1) year after organization of the Authority, the Board commissions an expert group on funding schemes for the TESDA Development Fund under Section 31, and the results form the basis for appropriate Board action (Section 34).
Personnel of the existing NMYC and BTVE continue in a holdover capacity to perform their duties and receive salaries and benefits until approval of TESDA’s organizational structure and staffing pattern by the Board (Section 34).
The Board’s preparation and approval of the new structure and staffing pattern must, as far as practicable, respect and ensure security of tenure and seniority rights of affected government employees (Section 34).
Personnel whose positions are not included in the new staffing pattern, or who are not reappointed or choose separation due to reorganization receive separation or retirement benefits under existing laws (Section 34).

Review, repeals, and separability

An automatic review must occur every five (5) years after effectivity, with an independent review panel of three (3) persons appointed by the President to review Authority performance and make recommendations to the President and both Houses of Congress (Section 35).
All laws, presidential decrees, executive orders, presidential proclamations, rules and regulations or parts thereof contrary to or inconsistent with the Act are repealed or modified accordingly (Section 37).
If any provision is declared unconstitutional, the remaining provisions remain valid and effective (Section 38).