Section
1. Short title. This Act shall be known as the "Dual
Training System Act of 1994".
Section
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.
Section
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
programmes in close coordination with concerned local government units.
Section 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
centre 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 centre" refers
to 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;
(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.
Section 5.
Institutionalization of the dual training system. The dual
training system, hereinafter referred to as the system, is hereby
institutionalized
in the Philippines in accordance with the provisions of this Act.
Section
6. Coverage. This Act shall apply to all public and
private educational institutions/training centres and agricultural,
industrial
and business establishments duly accredited to participate in the dual
training system.
Section
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 centre 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.
Section
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 an agreement.
A trainee
who has successfully completed a training programme 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.
Section
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 (50) per cent of the system expenses paid to the
accredited
dual training system educational institution for the establishment's
trainees:
provided that such expenses shall not exceed five (5) per cent
of
their total direct labour 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 approved 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 centre 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 programmes 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 behaviour in the training premises;
(e) use
tools, instruments, machines and other equipment with due care;
(f) not
reveal any business or 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
centres.
The educational institutions/training centres 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
centre
and the trainee. Before an individual establishment begins
with
an accredited education institution/training centre and the trainee or
his representative, the individual establishment shall provide the
accredited
educational institution/training centre 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 (75) per cent 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 Sections 10, 11 and 12;
(g) the
definition of the status of the trainee according to Section 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 centre 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 an 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 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 accumulate the necessary rules and regulations to
implement
the provisions of this section.
Section
19. Appropriations. For the 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.
Section
20. Separability clause. If for any reason any
provision
of this Act is declared invalid or unconstitutional, the rest shall not
be affected thereby.
Section
21. Repealing clause. All laws, decrees, orders,
rules
and regulations or parts thereof inconsistent with this Act are hereby
repealed or modified accordingly.
Section
22. Effectivity. This Act shall take effect after
completion
of its publication in the Official Gazette or in two (2)
newspapers
of general circulation.
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