Article 25Labor and Agrarian Laws and Social Legislation, p. 25

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

value-added gainful activities and to share equitably in

productivity gains.

SECTION

29.

Devolution

of

TESDA's

Training

Function to Local Governments . — 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, an 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.

SECTION 30. Skills Olympics . — 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.

SECTION 31. The TESDA Development Fund . — A

TESDA Development Fund is hereby established, to be

managed/administered

by the Authority, the income

from which shall be utilized exclusively in awarding of

grants and providing assistance to training institutions,

industries, local government units for upgrading their

capabilities and to develop and implement training and

training-related activities. The contribution to the fund

shall be the following:

a) a one-time lump sum appropriation from the

National Government;

b) an annual contribution from the Overseas Workers

Welfare Administration Fund, the amount of

which

should

be

part

of

the

study

on

financing in conjunction with letter (D) of

Section 34;

c)

donations,

grants,

endowments,

and

other

bequests or gifts, and

d) any other income generated by the Authority.

The TESDA Board shall be the administrator of the

fund,

and

as

such,

shall

formulate

the

necessary

implementing guidelines for the management of the

fund,

subject

to

the

following:

a)

unless

otherwise

stipulated by the private donor, only earnings of private

contributions shall be used; and b) no part of the seed

capital of the fund, including earnings, thereof, shall be

used to underwrite expenses for administration.

The

Board

shall

appoint

a

reputable

government-accredited investment institution as fund

manager,

subject to guidelines promulgated by the

Board.

SECTION 32. Scholarship Grants . — 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.

SECTION

33.

TESDA

Budget .

—

The

amount

necessary to finance the initial implementation of this Act

shall be charged against the existing appropriations of

the NMYC and the BTVE. Thereafter, such funds as may

be necessary for the continued implementation of this

Act

shall

be

included

in

the

annual

General

Appropriations Act.

SECTION 34. Transitory Provisions . — a) Within two

(2) months after the approval of this Act, the President

shall, in consultation with the Secretary of Labor and

Employment and the Secretary of Education, Culture and

Sports, appoint the private sector representatives of the

TESDA Board.

b) Within three (3) months after the appointment of

the private sector representatives, the President shall,

upon the recommendation of the Board, appoint the

Director-General.

c) Within four (4) months after the appointment of

the

Director-General,

the

Board

shall

convene

to

determine

the

organizational

structure

and

staffing

pattern of the Authority.

d) Within one (1) year after the organization of the

Authority, the Board shall commission an expert group on

funding schemes for the TESDA Development Fund, as

provided in Section 31, the results of which shall be used

as the basis for appropriate action by the Board.

e) The personnel of the existing National Manpower

and Youth Council (NMYC) of the Department of Labor

and

Employment

and the Bureau of Technical and

Vocational

Education

(BTVE)

of

the

Department

of

Education,

Culture

and

Sports,

shall,

in

a

holdover

capacity, continue to perform their respective duties and

responsibilities and receive their corresponding salaries

and benefits until such time when the organizational

structure and staffing pattern of the Authority shall have

been

approved

by

the

Board:

Provided ,

That

the

preparation and approval of the said new organizational

structure and staffing pattern shall, as far as practicable,

respect and ensure the security of tenure and seniority

rights of affected government employees.

Those personnel whose positions are not included in

the new staffing pattern approved by the Board or who

are not reappointed or who choose to be separated as a

result of the reorganization shall be paid their separation

or retirement benefits under existing laws.

SECTION 35. Automatic Review . — Every five (5)

years, after the effectivity of this Act, an independent

review panel composed of three (3) persons appointed by

the

President

shall

review

the

performance

of

the

Authority and shall make recommendations, based on its

findings to the President and to both Houses of Congress.

SECTION 36. Implementing Rules and Guidelines .

— The TESDA Board shall issue, within a period of ninety

(90) days after the effectivity of this Act, the rules and

regulations for the effective implementation of this Act.

The TESDA Board shall submit to the Committees on

Education, Arts and Culture of both Houses of Congress

copies of the implementing rules and guidelines within

thirty (30) days after its promulgation.

Any violation of this Section shall render the official/s

concerned liable under R.A. No. 6713 , otherwise known as

the " Code of Conduct and Ethical Standards for Public

Officials,

and

Employees "

and

other

existing

administrative and/or criminal laws.

SECTION

37.

Repealing

Clause .

—

All

laws,

presidential

decrees,

executive

orders,

presidential

proclamations, rules and regulations or parts thereof

contrary to or inconsistent with this Act are hereby

repealed or modified accordingly.

SECTION 38. Separability Clause . — If any provision

of this Act is declared unconstitutional, the same shall not

affect the validity and effectivity of the other provisions

hereof.

SECTION 39. Effectivity Clause . — This Act shall take

effect fifteen (15) days after its complete publication in

two (2) newspapers of general circulation.

Approved: August 25, 1994

Published in the Philippine Times Journal and the

Manila Times on August 31, 1994. Published in the Official

Gazette, Vol. 90 No. 42 page 6235 on October 17, 1994.

(An Act Creating the Technical Education and Skills

Development Authority, Providing for Its Powers,

Structure and for Other Purposes, Republic Act No. 7796,

[August 25, 1994])

© Compiled By RGL

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