Labor Code: Book II — Human Resources Development; Title I — National Manpower Development Program (September 12, 2023)

Book II — Human Resources Development; 

Title I — National Manpower Development Program 

Chapter I — National Policies and Administrative Machinery for their Implementation


Q: What government agency is responsible for the country's technical education planning and development?

Q: What is TESDA? What is it supposed to accomplish? What is the measure of its accomplishment?


Notes:

History

  • Implementation of the National Manpower Development Program was the responsibility of the National Manpower and Youth Council. 
  • But the NMYC has been replaced and its functions were absorbed by the TESDA - Technical Education and Skills Development Authority - created under R.A. No. 7796,  known as the "TESDA Act of 1994." 
  • Hence, Title I of this Book 11 of the Code, comprising Articles 43-56, is now inoperative or substantively modified, although its repeal is not explicit and the TESDA law itself is not made part of the Labor Code. 

The TESDA is an integrated and integrating Authority.

  • It took over the functions of:
    • the NMYC
    • the Bureau of Technical and Vocational Education,
    • the regional offices of DECS in the field of technical-vocational education, and
    • the apprenticeship program of the Bureau of Local Employment of DOLE. 
  • Its integrating role is evident in R.A. No. 7796. 
  • The Authority is composed of the:
    • TESDA Board
      • The board has representatives from government, the private sector, and the vocational schools.
      • Originally 13, the membership was increased to 19 by Administrative Order No . 180 (March 20, 1995) 
      • Three cabinet secretaries (DOLE, DECS, DTI) co-chair the Board.
    • TESDA Secretariat

Salient Points of TESDA Law

Policy (Sec. 2, RA. No. 7796)

It is hereby declared the policy of the State to provide relevant, accessible, high quality and efficient technical education and skills development in support of the development of high quality Filipino middle-level manpower responsive to and in accordance with Philippine development goals and priorities.

“Middle-Level Manpower”

  1. 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
  2. skilled workers who have become highly competent in their trade or craft as attested by industry;

Goals (Sec. 3, RA. No. 7796)

It is the goal and objective of this Act to:
  • a) Promote and strengthen the quality of technical education and skills development programs to attain international competitiveness;
  • b) Focus technical education and skills development on meeting the changing demands for quality middle-level manpower;
  • d) Recognize and encourage the complementary roles of public and private institutions in technical education and skills development and training systems; and
  • e) Inculcate desirably values through the development of moral character with emphasis on work ethic, self-discipline, self-reliance and nationalism.
  • c) Encourage critical and creative thinking by disseminating the scientific and technical knowledge base of middle-level manpower development programs;

Powers and Function of the Board (Sec. 3, RA. No. 7796)

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:

  • a) 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;
  • b) the implementation of the above-mentioned policy requires the coordination and cooperation of policies, plans, and programs of different concerned sectors of Philippine society;
  • c) 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
  • d) improved linkages between industry, labor and government shall be given priority in the formulation of any national-level plan.
The Board, shall have the following powers:
  • 1) 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;
  • 2) 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;
  • 3) enter into, make, execute, perform and carry-out domestic and foreign contracts subject to existing laws, rules and regulations;
  • 4) 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;
  • 5) approve trade skills standards and trade tests as established and conducted by private industries;
  • 6) establish and administer a system of accreditation of both public and private institutions;
  • 7) establish, develop and support institutions’ trainors’ training and/or programs;
  • 8) end support and encourage increasing utilization of the dual training system as provided for by Republic Act No. 7686;
  • 9) 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;
  • 10) allocate resources, based on the Secretariat’s recommendations, for the programs and projects it shall undertake pursuant to approved National Technical Education and Skills Development Plan;
  • 11) determine and approve systematic funding schemes such as the Levy and Grant scheme for technical education and skills development purposes;
  • 12) create, when deemed necessary, an Advisory Committees 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
  • 13) perform such other duties and functions necessary to carry out the provisions of this Act consistent with the purposes of the creation of TESDA.
TESDA Activities and Programs

Transfer of the Apprenticeship Program. (Sec. 18, RA. No. 7796) 
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.

Technical Education and Skills Development Committees. (Sec. 19, RA. No. 7796)  
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, These committees shall likewise serve as the Technical Education and Skills Development Committees of the Regional and local development councils. The composition of the Technical Education and Skills Development Committees shall be determined by the Director-General subject to the guidelines to be promulgated by the Authority.

Skills Development Centers. (Sec. 20, RA. No. 7796)  
The Authority shall strengthen the network of national, regional and local skills training centers for the purpose of promoting skills development.

This network shall include skills training centers in vocational and technical schools, technical institutes, polytechnic colleges, and all other duly accredited public and private dual system educational institutions. The technical education and skills development centers shall be administered and operated under such rules and regulations as may be established by the Authority in accordance with the National Technical Education and Skills Development Plan.

Formulation of a Comprehensive Development Plan for Middle-Level Manpower. (Sec. 21, RA. No. 7796)  
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. This plan shall, after adoption by the Authority, be updated periodically and submitted to the President of the Philippines for approval. Thereafter, it shall be the plan for technical education and skills development for the entire country within the framework of the National Development Plan. The Authority shall direct the TESDA Secretariat to call on its member-agencies, the private sector and the academe to assist in this effort.

The comprehensive plan shall provide for a reformed industry-based training program including apprenticeship, dual training system and other similar schemes intended to:

a) promote maximum protection and welfare of the worker-trainee;

b) improve the quality and relevance and social accountability of technical education and skills development;

c) accelerate the employment-generation efforts of the government; and

d) expand the range of opportunities for upward social mobility of the school-going population beyond the traditional higher levels of formal education.

All government and non-government agencies receiving financial and technical assistance from the government shall be required to formulate their respective annual agency technical education and skills development plan in line with the national technical education and skills development plan. The budget to support such plans shall be subject to review and endorsement by the Authority to the Department of Budget and Management.

The Authority shall evaluate the efficiency and effectiveness of agencies skills development program and schemes to make them conform with the quantitative and qualitative objectives of the national technical education and skills development plan.

Establishment and Administration of National Trade Skills Standards. (Sec. 22, RA. No. 7796)
There shall be national occupational skills standards to be established by TESDA-accredited industry committees. The Authority shall develop and implement a certification and accreditation program in which private industry groups and trade associations are accredited to conduct approved trade tests, and the local government units to promote such trade testing activities in their respective areas in accordance with the guidelines to be set by the Authority.

The Secretary of Labor and Employment shall determine the occupational trades for mandatory certification.

All certificates relating to the national trade skills testing and certification system shall be issued by the Authority through the TESD A Secretariat.

Administration of Training Programs. (Sec. 23, RA. No. 7796)
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 education and skills development and related opportunities. Such training programs and schemes shall include teacher’s trainors’ training, skills training for entrepreneur development and technology development, cost-effective training in occupational trades and related fields of employment, and value development as an integral component of all skills training programs.

Assistance to Employers and Organizations. (Sec. 24, RA. No. 7796)  
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.

Coordination of All Skills Training Schemes. (Sec. 25, RA. No. 7796)
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. For this purpose, existing technical education and skills training programs in the Government and in the private sector, specifically those wholly or partly financed with government funds, shall be reported to the Authority which shall assess and evaluate such programs to ensure their efficiency and effectiveness.

Industry Boards. (Sec. 26, RA. No. 7796)  
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 Authority’s objectives.

Incentives Schemes. (Sec. 27, RA. No. 7796)
The Authority shall develop and administer appropriate incentive schemes to encourage government and private industries and institutions to provide high-quality technical education and skills development opportunities.

Skills development Opportunities. (Sec. 28, RA. No. 7796)   
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.

Devolution of TESDA’s Training Function to Local Governments. (Sec. 29, RA. No. 7796)  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 community-based technical education and skills development opportunities: Provided, however, That there shall be formulated and implemented, and effective and timely retraining of TESDA personnel that would be affected by the devolution to ensure their being retained if the concerned local government units would not be able to absorb them.

Skills Olympics. (Sec. 30, RA. No. 7796)   
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. The Authority, through the TESDA Secretariat, shall promulgate the necessary rules and guidelines for the effective and efficient conduct of Annual National Skills Olympics and for the country’s participation in international skills Olympics.

Scholarship Grants. (Sec. 32, RA. No. 7796) 
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.

Performance Review
TESDA activities and programs, - and the creation of TESDA itself - are intended to:
  • upgrade the quality of the country's middle-level manpower, 
  • improve the workers' productivity, and 
  • thereby help the country's international competitiveness. 

TESDA's success or failure in these objectives will be evaluated periodically. 
Section 35 of the TESDA Act requires that TESDA' s performance be reviewed by an independent panel every five years after effectivity of the law in 1994. 

It appears that the law itself anticipates the need for TESDA to justify its continued existence.

Insignificant contribution to workers' employability and productivity should justify its abolition or the adoption of a more result-producing and result-accountable approach to manpower development.

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