REPUBLIC ACT NO. 7686 - AN
ACT TO STRENGTHEN MANPOWER EDUCATION AND TRAINING IN THE PHILIPPINES BY
INSTITUTIONALIZING THE DUAL TRAINING SYSTEM AS AN INSTRUCTIONAL
DELIVERY SYSTEM OF TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING,
PROVIDING THE MECHANISM, APPROPRIATING FUNDS THEREFORE AND FOR OTHER
PURPOSES
Section 1. Short title. — This Act shall be known as the
"Dual Training System Act of 1994."
Sec. 2. Declaration of Policy. — It is hereby
declared the policy of the State to strengthen manpower education and
training in the country so that the latter may be assured of an ever
growing supply of an educated and skilled manpower equipped with
appropriate skills and desirable work habits and attitudes. The
Dual Training System, as successfully tested in some highly developed
countries, shall be adopted in duly accredited vocational and technical
schools, in cooperation with accredited agricultural, industrial and
business establishments, as one of the preferred means of creating a
dependable pool of well-trained operators, craftsmen and technicians
for the economy.
Sec. 3. Objectives. — This Act shall have the
following objectives:
a) encourage increasing utilization of the dual
system in technical and vocational education and training by both
public and private schools within the context of the existing education
system;
b) encourage increasing levels of investment in
technical and vocational education and training by both public and
private sectors specially in the rural areas;
c) enhance the employability and productivity of
graduates by equipping them with analytical and creative thinking and
problem-solving abilities; manipulative competencies which meet
occupational standards and requirements; values and attitudes with
emphasis on work ethics, quality orientation, discipline, honesty,
self-reliance and patriotism; and
d) strengthen training cooperation between
agricultural, industrial and business establishments and educational
institutions by designing and implementing relevant training programs
in close coordination with concerned local government units.
Sec. 4. Definition of Terms. — For purposes of
this Act, the following terms shall mean:
a) "Appropriate Authority" refers to the government
entity in-charge of formal technical and vocational education training.
b) "Dual Training System" refers to an instructional
delivery system of technical and vocational education and training that
combines in-plant training and in-school training based on a training
plan collaboratively designed and implemented by an accredited dual
system educational institution/training center and accredited dual
system agricultural, industrial and business establishments with prior
notice and advice to the local government unit concerned. Under
this system, said establishments and the educational institution share
the responsibility of providing the trainee with the best possible job
qualifications, the former essentially through practical training and
the latter by securing an adequate level of specific, general and
occupation-related theoretical instruction. The word "dual"
refers to the two parties providing instruction: the concept "system"
means that the two instructing parties do not operate independently of
one another, but rather coordinate their efforts.
c) "Trainee" refers to a person qualified to undergo
the dual training system for the purpose of acquiring and developing
job qualifications.
d) "Accredited Dual Training System Educational
Institution/Training Center" refers to a public or private institution
duly recognized and authorized by the appropriate authority, in
coordination with the business and industry, to participate in the dual
training system.
e) "Establishments" refer to enterprises and/or
services of agricultural, industrial, or business establishments.
f) "Accredited Dual Training System Agricultural,
Industrial and Business Establishments" hereinafter referred to as
agricultural, industrial and business establishments, refer to a sole
proprietorship, partnership, corporation or cooperative which is duly
recognized and authorized by the appropriate authority to participate
in the dual training system educational institution.
Sec. 5. Institutionalization of the Dual Training
System. — The dual training system, hereafter referred to as the
System, is hereby institutionalized in the Philippines in accordance
with the provisions of this Act.
Sec. 6. Coverage. — This Act shall apply to all
public and private educational institutions/training centers and
agricultural, industrial and business establishments duly accredited to
participate in dual training system.
Sec. 7. Planning and Coordination. — The
appropriate authority shall plan, set standards, coordinate, monitor,
and allocate resources in support of the implementation of the System.
Every accredited educational institution/training center shall
establish an industrial coordinating office which shall supervise the
in-plant training: provided, that, the industrial establishment shall
be required to furnish the educational institution with the necessary
information for the purpose of supervision.
The industrial coordinating office shall be headed by an industrial
coordinator with, at least, an officer level rank. The industrial
coordinator may be assisted by such other personnel as may be necessary
for the effective discharge of the functions of the office.
Sec. 8. Status of Trainee. — For the duration of
the training under the System, the trainee is to be considered not an
employee of the business/industrial establishment but rather a trainee
of both the Accredited Dual Training System Educational Institution and
the agricultural, industrial and business establishments: provided,
that, the union or the workers of the latter have been duly informed in
advance of such agreement.
A trainee who has successfully completed a training program in a
particular agricultural, industrial or business establishment shall be
given priority of employment in that agricultural, industrial or
business establishment. The appropriate authority shall keep a
roll of these successful trainees for purposes of identifying them for
employment.
Sec. 9. Incentives for Participating
Establishments. — To encourage agricultural, industrial and business
establishments to participate in the System, they shall be allowed to
deduct from their taxable income the amount of fifty percent (50%) of
the actual system expenses paid to the Accredited Dual Training System
Educational Institution for the establishment's trainees: provided,
that such expenses shall not exceed five percent (5%) of their total
direct labor expenses but in no case to exceed Twenty-five million
pesos (P25,000,000) a year.
Donations for the operation of the System shall be deductible from the
taxable income of the donors.
The Department of Finance shall issue the necessary rules and
regulations for the purpose of tax incentives provided herein.
SECTION 10. Obligations of Accredited Agricultural,
Industrial and Business Establishments. — The agricultural, industrial
and business establishments shall:
a) ensure that the necessary abilities and knowledge
for the trainee to achieve the purpose of his training are imparted to
him and shall provide such training systematically in accordance with
an approval training plan;
b) appoint the training officer to implement the
training plan;
c) make available, free of charge, the consumable
materials and basic hand tools and equipment necessary for his
training;
d) allow the trainee to attend his in-school training
and to sit for his examinations;
e) require the trainee to keep his report book
up-to-date and inspect such books;
f) ensure that the trainee is encouraged to develop
his personality and that he is protected from physical or moral danger;
g) entrust to the trainee such jobs as are related to
the purpose of his training and are commensurate with his capabilities;
h) pay to the accredited educational
institution/training center the daily allowance of the trainee; and
i) allow the trainee the necessary time-off for his
in-school training.
SECTION 11. Obligations of the Trainee. — A trainee
shall exert every effort to acquire the abilities and knowledge
necessary for him to achieve the purpose of his training. Towards
this end, he shall:
a) carefully perform the jobs entrusted to him as
part of his training;
b) take part in training programs for which he has
been granted time-off under this Act;
c) follow the instruction given to him as part of his
training by the training officer or any other person entitled to give
him such instructions;
d) observe rules of behavior in the training
premises;
e) use tools, instruments, machines, and other
equipment with due care;
f) not reveal any business nor trade secrets that
have come to his knowledge in the course of his training;
and
g) keep his record books up-to-date.
SECTION 12. Obligations of the Accredited Educational
Institutions/ Training Centers. — The educational institutions/training
centers that have entered into a memorandum of agreement with
agricultural, industrial or business establishments to undertake
training shall:
a) design, implement, and evaluate jointly the
training plan with the accredited establishments;
b) provide specific, general, and occupation-related
theoretical instruction;
c) appoint industrial coordinators to supervise the
in-plant training;
d) pay the trainee his daily allowance; and
e) perform such other tasks and activities as may be
necessary and in furtherance of
the objectives of the training.
SECTION 13. Non-diminution of Incentives. — Nothing
in this Act shall be construed to diminish or reduce any privilege
already enjoyed by the parties concerned under existing laws, decrees,
or executive orders.
SECTION 14. Signing of Memorandum of Agreements by
the Accredited Dual Training System Agricultural, Industrial and
Business Establishments, the Accredited Dual Training System
Educational Institution/Training Center, and the Trainee. — Before an
individual establishment begins with an accredited education
institution/training center and the trainee or his representative, the
individual establishment shall provide the accredited educational
institution/training center and the trainee with a copy of the signed
agreement.
The memorandum of agreement shall set forth, among others, the
following:
a) the training plan;
b) the nature and objective of the training;
c) the commencement and duration of the training
period, including the total number of in-school and in-plant training
hours;
d) the normal daily training hours;
e) the trainee's allowance and the rate to be
applied, which in no case shall start below seventy-five percent (75%)
of the applicable minimum daily wage for days spent in the
establishments;
f) the rights and obligations of the parties
concerned in addition to those provided in Section s 10, 11, and 12;
g) the definition of the status of the trainee
according to Sec. 8 of this Act;
h) the conditions for the termination of the training
agreement;
i) the performance, monitoring and evaluation system;
and
j) such other essential particulars as would mutually
benefit all parties concerned.
SECTION 15. Insurance Coverage of the Trainee. —
Every agricultural, industrial and business establishment undertaking
training, in accordance with the provisions of this Act, shall sign a
life and/or accident insurance policy on the life of the trainee with
the insured and the spouse, children or parents of the trainee as the
beneficiaries thereof: provided, that, the agricultural, industrial and
business establishments shall pay for the premiums of said insurance
policy.
SECTION 16. Revolving Fund. — Any law, rule or
regulation to the contrary notwithstanding, the Accredited Dual
Training System Educational Institution/Training Center is hereby
authorized to retain as a revolving fund, the amount paid to it by the
agricultural, industrial and business establishments representing the
actual dual training expenses. The fund shall be used to improve
the operation of the dual training system.
SECTION 17. Implementing Rules. — The appropriate
authority and the Department of Finance, upon prior consultation with
the business and industry concerned, shall issue the necessary rules
and regulations for the effective implementation of this Act within a
period of ninety (90) days after its effectivity. Any violation
of this Section shall render the concerned officials/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 18. Other Exemption from Taxes and Duties. —
Any donation, contribution, bequest, subsidy, or financial aid which
may be made for the operation of the System shall constitute as
allowable deduction from the income of the donors for income tax
purposes and shall be exempt from donor's tax, subject to such
conditions as provided under the National Internal Revenue Code, as
amended. Essential equipment, apparatus and materials imported by
accredited dual training private educational institutions shall be
exempt from taxes and duties: provided, that, the importation of these
items shall be subject to the following qualifications:
a) that the importation shall be certified by the
appropriate authority;
b) that they should be actually, directly, and
exclusively used in connection with the dual training system and any
unauthorized use shall subject the accredited dual training private
educational institutions to payment of taxes and duties due thereon;
and
c) that they are not available locally in sufficient
quantity of comparable quality, and at reasonable prices;
Provided, however, that taxes and duties pertaining to the importations
of accredited government and dual training educational institutions are
deemed automatically appropriated.
The Department of Finance shall formulate the necessary rules and
regulations to implement the provisions of this section.
SECTION 19. Appropriations. — For this initial
implementation of this Act, an amount of One million pesos (P1,000,000)
shall be charged against the current year's appropriation of the
contingency fund. Thereafter, such sums as may be necessary for
its continued implementation, shall be included in the annual General
Appropriations Act.
Sec. 20. Separability Clause. — If for any reason
any provision of this Act is declared invalid or unconstitutional, the
rest shall not be affected thereby.
Sec. 21. Repealing Clause. — All laws, decrees,
orders, rules and regulations or parts thereof inconsistent with this
Act are hereby repealed or modified accordingly.
Sec. 22. Effectivity. — This act shall take effect
after completion of its publication in the Official Gazette or in two
(2) newspapers of general circulation.
Approved: February 25,
1994
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