I.

THE CONSTITUTION AND PROTECTION TO LABOR

ARTICLE II
Section 9. The State shall promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that provide adequate social
services, promote full employment, a rising standard of living, and an improved quality of life for all.cralaw
Section 10. The State shall promote social justice in all phases of national development.cralaw
Section 11. The State values the dignity of every human person and guarantees full respect for human
rights.cralaw
Section 13. The State recognizes the vital role of the youth in nation-building and shall promote and protect their
physical, moral, spiritual, intellectual, and social well-being. It shall inculcate in the youth patriotism and
nationalism, and encourage their involvement in public and civic affairs.cralaw
Section 14. The State recognizes the role of women in nation-building, and shall ensure the fundamental equality
before the law of women and men.cralaw
Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and
promote their welfare.cralaw
Section 20. The State recognizes the indispensable role of the private sector, encourages private enterprise, and
provides incentives to needed investments.cralaw
ARTICLE III
ARTICLE III
BILL OF RIGHTS
Section 1. No person shall be deprived of life, liberty, or property without due process of
law, nor shall any person be denied the equal protection of the laws.

Section 4. No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of
the people peaceably to assemble and petition the government for redress of grievances.cralaw
Section 8. The right of the people, including those employed in the public and private sectors, to form unions,
associations, or societies for purposes not contrary to law shall not be abridged.
ARTICLE XIII
SOCIAL JUSTICE AND HUMAN RIGHTS
Section 1. The Congress shall give highest priority to the enactment of measures that protect and enhance the
right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural
inequities by equitably diffusing wealth and political power for the common good.

To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its
increments.cralaw
Section 2. The promotion of social justice shall include the commitment to create economic opportunities based
on freedom of initiative and self-reliance.

LABOR
Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and
promote full employment and equality of employment opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful
concerted activities, including the right to strike in accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making
processes affecting their rights and benefits as may be provided by law.cralaw

The State shall promote the principle of shared responsibility between workers and employers and the preferential
use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance
therewith to foster industrial peace.cralaw
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just
share in the fruits of production and the right of enterprises to reasonable returns to investments, and to
expansion and growth.cralaw

WOMEN
Section 14. The State shall protect working women by providing safe and healthful working conditions, taking into
account their maternal functions, and such facilities and opportunities that will enhance their welfare and enable
them to realize their full potential in the service of the nation.
II. RECRUITMENT AND PLACEMENT
MIGRANT WORKERS ACT RA 8042
II. ILLEGAL RECRUITMENT
Sec. 6. DEFINITIONS. - For purposes of this Act, illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, procuring workers and includes referring, contact
services, promising or advertising for employment abroad, whether for profit or not, when undertaken
by a non-license or non-holder of authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philippines. Provided, that such non-
license or non-holder, who, in any manner, offers or promises for a fee employment abroad to two or
more persons shall be deemed so engaged. It shall likewise include the following acts, whether
committed by any persons, whether a non-licensee, non-holder, licensee or holder of authority.
(a) To charge or accept directly or indirectly any amount greater than the specified in the schedule of
allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor Code;
(d) To induce or attempt to induce a worker already employed to quit his employment in order to offer
him another unless the transfer is designed to liberate a worker from oppressive terms and conditions
of employment;
(e) To influence or attempt to influence any persons or entity not to employ any worker who has not
applied for employment through his agency;
(f) To engage in the recruitment of placement of workers in jobs harmful to public health or morality
or to dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by his
duly authorized representative;
(h) To fail to submit reports on the status of employment, placement vacancies, remittances of foreign
exchange earnings, separations from jobs, departures and such other matters or information as may be
required by the Secretary of Labor and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified
by the Department of Labor and Employment from the time of actual signing thereof by the parties up
to and including the period of the expiration of the same without the approval of the Department of
Labor and Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or member of
the Board of any corporation engaged in travel agency or to be engaged directly on indirectly in the
management of a travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under the Labor Code and its implementing rules
and regulations;
(l) Failure to actually deploy without valid reasons as determined by the Department of Labor and
Employment; and
(m) Failure to reimburse expenses incurred by the workers in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take place
without the worker's fault. Illegal recruitment when committed by a syndicate or in large scale shall be
considered as offense involving economic sabotage.
Illegal recruitment is deemed committed by a syndicate carried out by a group of three (3) or more
persons conspiring or confederating with one another. It is deemed committed in large scale if
committed against three (3) or more persons individually or as a group.
The persons criminally liable for the above offenses are the principals, accomplices and accessories. In
case of juridical persons, the officers having control, management or direction of their business shall
be liable.
III. JURISDICION, REMEDIES, ACTIONS AND PROCEEDINGS
[REPUBLIC ACT NO. 10361]

AN ACT INSTITUTING POLICIES FOR THE PROTECTION
AND WELFARE OF DOMESTIC WORKERS

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

ARTICLE I

GENERAL PROVISIONS

SECTION 1. Short Title. This Act shall be known as the Domestic Workers Act or Batas
Kasambahay.

SEC. 2. Declaration of Policies. It is hereby declared that:

(a) The State strongly affirms labor as a primary social force and is committed to respect, promote,
protect and realize the fundamental principles and rights at work including, but not limited to,
abolition of child labor, elimination of all forms of forced labor, discrimination in employment and
occupation, and trafficking in persons, especially women and children;

(b) The State adheres to internationally accepted working conditions for workers in general, and
establishes labor standards for domestic workers in particular, towards decent employment and
income, enhanced coverage of social protection, respect for human rights and strengthened social
dialogue;

(c) The State recognizes the need to protect the rights of domestic workers against abuse, harassment,
violence, economic exploitation and performance of work that is hazardous to their physical and
mental health; and

(d) The State, in protecting domestic workers and recognizing their special needs to ensure safe and
healthful working conditions, promotes gender-sensitive measures in the formulation and
implementation of policies and programs affecting the local domestic work.

SEC. 3. Coverage. This Act applies to all domestic workers employed and working within the country.

SEC. 4. Definition of Terms. As used in this Act, the term:

(a) Debt bondage refers to the rendering of service by the domestic worker as security or payment for
a debt where the length and nature of service is not clearly defined or when the value of the service is
not reasonably applied in the payment of the debt.

(b) Deployment expenses refers to expenses that are directly used for the transfer of the domestic
worker from place of origin to the place of work covering the cost of transportation. Advances or loans
by the domestic worker are not included in the definition of deployment expenses.

(c) Domestic work refers to work performed in or for a household or households.

(d) Domestic worker or Kasambahay refers to any person engaged in domestic work within an
employment relationship such as, but not limited to, the following: general househelp, nursemaid or
yaya, cook, gardener, or laundry person, but shall exclude any person who performs domestic work
only occasionally or sporadically and not on an occupational basis.

The term shall not include children who are under foster family arrangement, and are provided access
to education and given an allowance incidental to education, i.e. baon, transportation, school
projects and school activities.

(e) Employer refers to any person who engages and controls the services of a domestic worker and is
party to the employment contract.

(f) Household refers to the immediate members of the family or the occupants of the house that are
directly provided services by the domestic worker.

(g) Private Employment Agency (PEA) refers to any individual, legitimate partnership, corporation or
entity licensed to engage in the recruitment and placement of domestic workers for local employment.

(h) Working children, as used under this Act, refers to domestic workers who are fifteen (15) years old
and above but below eighteen (18) years old.

ARTICLE II

RIGHTS AND PRIVILEGES

SEC. 5. Standard of Treatment. The employer or any member of the household shall not subject a
domestic worker or kasambahay to any kind of abuse nor inflict any form of physical violence or
harassment or any act tending to degrade the dignity of a domestic worker.

SEC. 6. Board, Lodging and Medical Attendance. The employer shall provide for the basic necessities
of the domestic worker to include at least three (3) adequate meals a day and humane sleeping
arrangements that ensure safety.

The employer shall provide appropriate rest and assistance to the domestic worker in case of illnesses
and injuries sustained during service without loss of benefits.

At no instance shall the employer withdraw or hold in abeyance the provision of these basic necessities
as punishment or disciplinary action to the domestic worker.

SEC. 7. Guarantee of Privacy. Respect for the privacy of the domestic worker shall be guaranteed at
all times and shall extend to all forms of communication and personal effects. This guarantee equally
recognizes that the domestic worker is obliged to render satisfactory service at all times.

SEC. 8. Access to Outside Communication. The employer shall grant the domestic worker access to
outside communication during free time: Provided, That in case of emergency, access to
communication shall be granted even during work time. Should the domestic worker make use of the
employers telephone or other communication facilities, the costs shall be borne by the domestic
worker, unless such charges are waived by the employer.

SEC. 9. Right to Education and Training. The employer shall afford the domestic worker the
opportunity to finish basic education and may allow access to alternative learning systems and, as far
as practicable, higher education or technical and vocational training. The employer shall adjust the
work schedule of the domestic worker to allow such access to education or training without hampering
the services required by the employer.

SEC. 10. Prohibition Against Privileged Information. All communication and information pertaining to
the employer or members of the household shall be treated as privileged and confidential, and shall
not be publicly disclosed by the domestic worker during and after employment. Such privileged
information shall be inadmissible in evidence except when the suit involves the employer or any
member of the household in a crime against persons, property, personal liberty and security, and
chastity.

ARTICLE III

PRE-EMPLOYMENT

SEC. 11. Employment Contract. An employment contract shall be executed by and between the
domestic worker and the employer before the commencement of the service in a language or dialect
understood by both the domestic worker and the employer. The domestic worker shall be provided a
copy of the duly signed employment contract which must include the following:

(a) Duties and responsibilities of the domestic worker;

(b) Period of employment;

(c) Compensation;

(d) Authorized deductions;

(e) Hours of work and proportionate additional payment;

(f) Rest days and allowable leaves;

(g) Board, lodging and medical attention;

(h) Agreements on deployment expenses, if any;

(i) Loan agreement;

(j) Termination of employment; and

(k) Any other lawful condition agreed upon by both parties.

The Department of Labor and Employment (DOLE) shall develop a model employment contract for
domestic workers which shall, at all times, be made available free of charge to domestic workers,
employers, representative organizations and the general public. The DOLE shall widely disseminate
information to domestic workers and employers on the use of such model employment contract.

In cases where the employment of the domestic worker is facilitated through a private employment
agency, the PEA shall keep a copy of all employment contracts of domestic workers and shall be made
available for verification and inspection by the DOLE.

SEC. 12. Pre-Employment Requirement. Prior to the execution of the employment contract, the
employer may require the following from the domestic worker:

(a) Medical certificate or a health certificate issued by a local government health officer;

(b) Barangay and police clearance;

(c) National Bureau of Investigation (NBI) clearance; and

(d) Duly authenticated birth certificate or if not available, any other document showing the age of the
domestic worker such as voters identification card, baptismal record or passport.

However, Section 12(a), (b), (c) and (d) shall be standard requirements when the employment of the
domestic worker is facilitated through the PEA.

The cost of the foregoing shall be borne by the prospective employer or agency, as the case may be.

SEC. 13. Recruitment and Finders Fees. Regardless of whether the domestic worker was hired
through a private employment agency or a third party, no share in the recruitment or finders fees
shall be charged against the domestic worker by the said private employment agency or third party.

SEC. 14. Deposits for Loss or Damage. It shall be unlawful for the employer or any other person to
require a domestic worker to make deposits from which deductions shall be made for the
reimbursement of loss or damage to tools, materials, furniture and equipment in the household.

SEC. 15. Prohibition on Debt Bondage. It shall be unlawful for the employer or any person acting on
behalf of the employer to place the domestic worker under debt bondage.

SEC. 16. Employment Age of Domestic Workers. It shall be unlawful to employ any person below
fifteen (15) years of age as a domestic worker. Employment of working children, as defined under this
Act, shall be subject to the provisionsof Section 10(A), paragraph 2 of Section 12-A, paragraph 4 of
Section 12-D, and Section 13 of Republic Act No. 7610, as amended, otherwise known as the Special
Protection of Children Against Child Abuse, Exploitation and Discrimination Act.

Working children shall be entitled to minimum wage, and all benefits provided under this Act.

Any employer who has been sentenced by a court of law of any offense against a working child under
this Act shall be meted out with a penalty one degree higher and shall be prohibited from hiring a
working child.

SEC. 17. Employers Reportorial Duties. The employers shall register all domestic workers under their
employment in the Registry of Domestic Workers in the barangay where the employers residence is
located. The Department of the Interior and Local Government (DILG) shall, in coordination with the
DOLE, formulate a registration system for this purpose.

SEC. 18. Skills Training, Assessment and Certification. To ensure productivity and assure quality
services, the DOLE, through the Technical Education and Skills Development Authority (TESDA), shall
facilitate access of domestic workers to efficient training, assessment and certification based on a duly
promulgated training regulation.

ARTICLE IV

EMPLOYMENT TERMS AND CONDITIONS

SEC. 19. Health and Safety. The employer shall safeguard the health and safety of the domestic
worker in accordance with laws, rules and regulations, with due consideration of the peculiar nature of
domestic work.

SEC. 20. Daily Rest Period. The domestic worker shall be entitled to an aggregate daily rest period of
eight (8) hours per day.

SEC. 21. Weekly Rest Period. The domestic worker shall be entitled to at least twenty-four (24)
consecutive hours of rest in a week. The employer and the domestic worker shall agree in writing on
the schedule of the weekly rest day of the domestic worker: Provided, That the employer shall respect
the preference of the domestic worker as to the weekly rest day when such preference is based on
religious grounds. Nothing in this provision shall deprive the domestic worker and the employer from
agreeing to the following:

(a) Offsetting a day of absence with a particular rest day;

(b) Waiving a particular rest day in return for an equivalent daily rate of pay;

(c) Accumulating rest days not exceeding five (5) days; or

(d) Other similar arrangements.

SEC. 22. Assignment to Nonhousehold Work. No domestic worker shall be assigned to work in a
commercial, industrial or agricultural enterprise at a wage rate lower than that provided for
agricultural or nonagricultural workers. In such cases, the domestic worker shall be paid the applicable
minimum wage.

SEC. 23. Extent of Duty. The domestic worker and the employer may mutually agree for the former to
temporarily perform a task that is outside the latters household for the benefit of another household.
However, any liability that will be incurred by the domestic worker on account of such arrangement
shall be borne by the original employer. In addition, such work performed outside the household shall
entitle the domestic worker to an additional payment of not less than the existing minimum wage rate
of a domestic worker. It shall be unlawful for the original employer to charge any amount from the said
household where the service of the domestic worker was temporarily performed.

SEC 24. Minimum Wage. The minimum wage of domestic workers shall not be less than the following:

(a) Two thousand five hundred pesos (P2,500.00) a month for those employed in the National Capital
Region (NCR);

(b) Two thousand pesos (P2,000.00) a month for those employed in chartered cities and first class
municipalities; and

(c) One thousand five hundred pesos (P1,500.00) a month for those employed in other municipalities.

After one (1) year from the effectivity of this Act, and periodically thereafter, the Regional Tripartite
and Productivity Wage Boards (RTPWBs) shall review, and if proper, determine and adjust the minimum
wage rates of domestic workers.

SEC 25. Payment of Wages. Payment of wages shall be made on time directly to the domestic worker
to whom they are due in cash at least once a month. The employer, unless allowed by the domestic
worker through a written consent, shall make no deductions from the wages other than that which is
mandated by law. No employer shall pay the wages of a domestic worker by means of promissory
notes, vouchers, coupons, tokens, tickets, chits, or any object other than the cash wage as provided
for under this Act.

The domestic worker is entitled to a thirteenth month pay as provided for by law.

SEC. 26. Pay Slip. The employer shall at all times provide the domestic worker with a copy of the pay
slip containing the amount paid in cash every pay day, and indicating all deductions made, if any. The
copies of the pay slip shall be kept by the employer for a period of three (3) years.

SEC. 27. Prohibition on Interference in the Disposal of Wages. It shall be unlawful for the employer to
interfere with the freedom of any domestic worker to dispose of the latters wages. The employer shall
not force, compel or oblige the domestic worker to purchase merchandise, commodities or other
properties from the employer or from any other person, or otherwise make use of any store or services
of such employer or any other person.

SEC 28. Prohibition Against Withholding of Wages. It shall be unlawful for an employer, directly or
indirectly, to withhold the wages of the domestic worker. If the domestic worker leaves without any
justifiable reason, any unpaid salary for a period not exceeding fifteen (15) days shall be forfeited.
Likewise, the employer shall not induce the domestic worker to give up any part of the wages by force,
stealth, intimidation, threat or by any other means whatsoever.

SEC. 29. Leave Benefits. A domestic worker who has rendered at least one (1) year of service shall be
entitled to an annual service incentive leave of five (5) days with pay: Provided, That any unused
portion of said annual leave shall not be cumulative or carried over to the succeeding years. Unused
leaves shall not be convertible to cash.

SEC. 30. Social and Other Benefits. A domestic worker who has rendered at least one (1) month of
service shall be covered by the Social Security System (SSS), the Philippine Health Insurance
Corporation (PhilHealth), and the Home Development Mutual Fund or Pag-IBIG, and shall be entitled to
all the benefits in accordance with the pertinent provisions provided by law.

Premium payments or contributions shall be shouldered by the employer. However, if the domestic
worker is receiving a wage of Five thousand pesos (P5,000.00) and above per month, the domestic
worker shall pay the proportionate share in the premium payments or contributions, as provided by
law.

The domestic worker shall be entitled to all other benefits under existing laws.

SEC. 31. Rescue and Rehabilitation of Abused Domestic Workers. Any abused or exploited domestic
worker shall be immediately rescued by a municipal or city social welfare officer or a social welfare
officer from the Department of Social Welfare and Development (DSWD) in coordination with the
concerned barangay officials. The DSWD and the DILG shall develop a standard operating procedure for
the rescue and rehabilitation of abused domestic workers, and in coordination with the DOLE, for
possible subsequent job placement.

ARTICLE V

POST EMPLOYMENT

SEC. 32. Termination of Service. Neither the domestic worker nor the employer may terminate the
contract before the expiration of the term except for grounds provided for in Sections 33 and 34 of this
Act. If the domestic worker is unjustly dismissed, the domestic worker shall be paid the compensation
already earned plus the equivalent of fifteen (15) days work by way of indemnity. If the domestic
worker leaves without justifiable reason, any unpaid salary due not exceeding the equivalent fifteen
(15) days work shall be forfeited. In addition, the employer may recover from the domestic worker
costs incurred related to the deployment expenses, if any: Provided, That the service has been
terminated within six (6) months from the domestic workers employment.

If the duration of the domestic service is not determined either in stipulation or by the nature of the
service, the employer or the domestic worker may give notice to end the working relationship five (5)
days before the intended termination of the service.

The domestic worker and the employer may mutually agree upon written notice to pre-terminate the
contract of employment to end the employment relationship.

SEC. 33. Termination Initiated by the Domestic Worker. The domestic worker may terminate the
employment relationship at any time before the expiration of the contract for any of the following
causes:

(a) Verbal or emotional abuse of the domestic worker by the employer or any member of the
household;

(b) Inhuman treatment including physical abuse of the domestic worker by the employer or any
member of the household;

(c) Commission of a crime or offense against the domestic worker by the employer or any member of
the household;

(d) Violation by the employer of the terms and conditions of the employment contract and other
standards set forth under this law;

(e) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the
household; and

(f) Other causes analogous to the foregoing.

SEC. 34. Termination Initiated by the Employer. An employer may terminate the services of the
domestic worker at any time before the expiration of the contract, for any of the following causes:

(a) Misconduct or willful disobedience by the domestic worker of the lawful order of the employer in
connection with the formers work;

(b) Gross or habitual neglect or inefficiency by the domestic worker in the performance of duties;

(c) Fraud or willful breach of the trust reposed by the employer on the domestic worker;

(d) Commission of a crime or offense by the domestic worker against the person of the employer or any
immediate member of the employers family;

(e) Violation by the domestic worker of the terms and conditions of the employment contract and other
standards set forth under this law;

(f) Any disease prejudicial to the health of the domestic worker, the employer, or member/s of the
household; and

(g) Other causes analogous to the foregoing.

SEC. 35. Employment Certification. Upon the severance of the employment relationship, the
employer shall issue the domestic worker within five (5) days from request a certificate of employment
indicating the nature, duration of the service and work performance.

ARTICLE VI

PRIVATE EMPLOYMENT AGENCIES

SEC. 36. Regulation of Private Employment Agencies (PEAs). The DOLE shall, through a system of
licensing and regulation, ensure the protection of domestic workers hired through the PEAs.

The PEA shall be jointly and severally liable with the employer for all the wages, wage-related
benefits, and other benefits due a domestic worker.

The provision of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the
Philippines, on qualifications of the PEAs with regard to nationality, networth, owners and officers,
office space and other requirements, as well as nontransferability of license and commission of
prohibited practices, shall apply.

In addition, PEAs shall have the following responsibilities:

(a) Ensure that domestic workers are not charged or levied any recruitment or placement fees;

(b) Ensure that the employment agreement between the domestic worker and the employer stipulates
the terms and conditions of employment and all the benefits prescribed by this Act;

(c) Provide a pre-employment orientation briefing to the domestic worker and the employer about
their rights and responsibilities in accordance with this Act;

(d) Keep copies of employment contracts and agreements pertaining to recruited domestic workers
which shall be made available during inspections or whenever required by the DOLE or local
government officials;

(e) Assist domestic workers with respect to complaints or grievances against their employers; and

(f) Cooperate with government agencies in rescue operations involving abused or exploited domestic
workers.

ARTICLE VII

SETTLEMENT OF DISPUTES

SEC. 37. Mechanism for Settlement of Disputes. All labor-related disputes shall be elevated to the
DOLE Regional Office having jurisdiction over the workplace without prejudice to the filing of a civil or
criminal action in appropriate cases. The DOLE Regional Office shall exhaust all conciliation and
mediation efforts before a decision shall be rendered.

Ordinary crimes or offenses committed under the Revised Penal Code and other special penal laws by
either party shall be filed with the regular courts.

ARTICLE VIII

SPECIAL PROVISIONS

SEC. 38. Information Program. The DOLE shall, in coordination with the DILG, the SSS, the PhilHealth
and Pag-IBIG develop and implement a continuous information dissemination program on the provisions
of this Act, both at the national and local level, immediately after the enactment of this law.

SEC. 39. Araw Ng Mga Kasambahay. The date upon which the President shall approve this Domestic
Workers Act shall be designated as the Araw ng mga Kasambahay.

ARTICLE IX

PENAL AND MISCELLANEOUS PROVISIONS

SEC. 40. Penalty. Any violation of the provisions of this Act declared unlawful shall be punishable with
a fine of not less than Ten thousand pesos (P10,000.00) but not more than Forty thousand pesos
(P40,000.00) without prejudice to the filing of appropriate civil or criminal action by the aggrieved
party.

SEC. 41. Transitory Provision; Non-Diminution of Benefits. All existing arrangements between a
domestic worker and the employer shall be adjusted to conform to the minimum standards set by this
Act within a period of sixty (60) days after the effectivity of this Act: Provided, That adjustments
pertaining to wages shall take effect immediately after the determination and issuance of the
appropriate wage order by the RTWPBs: Provided, further, That nothing in this Act shall be construed
to cause the diminution or substitution of any benefits and privileges currently enjoyed by the
domestic worker hired directly or through an agency.

SEC. 42. Implementing Rules and Regulations. Within ninety (90) days from the effectivity of this Act,
the Secretary of Labor and Employment, the Secretary of Social Welfare and Development, the
Secretary of the Interior and Local Government, and the Director General of the Philippine National
Police, in coordination with other concerned government agencies and accredited nongovernment
organizations (NGOs) assisting domestic workers, shall promulgate the necessary rules and regulations
for the effective implementation of this Act.

ARTICLE X

FINAL PROVISIONS

SEC. 43. Separability Clause. If any provision or part of this Act is declared invalid or unconstitutional,
the remaining parts or provisions not affected shall remain in full force and effect.

SEC. 44. Repealing Clause. All articles or provisions of Chapter III (Employment of Househelpers) of
Presidential Decree No. 442, as amended and renumbered by Republic Act No. 10151 are hereby
expressly repealed. All laws, decrees, executive orders, issuances, rules and regulations or parts
thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 45. Effectivity Clause. This Act shall take effect fifteen (15) days after its complete publication
in the Official Gazette or in at least two (2) national newspapers of general circulation.
IV. HUMAN RESOURCE DEVELOPMENT
TESDA LAW
REPUBLIC ACT NO. 7796

AN ACT CREATING THE TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY, PROVIDING FOR
ITS POWERS, STRUCTURE AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Technical Education and Skills Development Act of
1994" or the "TESDA Act of 1994".

SEC. 2. Declaration of Policy. - I t 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.cralaw

The State shall encourage active participation of various concerned sectors, particularly private
enterprises, being direct participants in and immediate beneficiaries of a trained and skilled
workforce, in providing technical education and skills development opportunities.cralaw

SEC. 3. Statement of Goals and Objectives. - It is the goal and objective of this Act to:

Promote and strengthen the quality of technical education and skills development programs to attain
international competitiveness;

Focus technical education and skills development on meeting the changing demands for quality
middle-level manpower;

Encourage critical and creative thinking by disseminating the scientific and technical knowledge
base of middle-level manpower development programs;

Recognize and encourage the complementary roles of public and private institutions in technical
education and skills development and training systems; and

Inculcate desirable values through the development of moral character with emphasis on work ethic,
self-discipline, self-reliance and nationalism.

SEC. 4. Definition of Terms. - As used in this Act:

"Skill" shall mean the acquired and practiced ability to carry out a task or job;

"Skills Development" shall mean the process through which learners and workers are systematically
provided with learning opportunities to acquire or upgrade, or both, their ability, knowledge and
behavior pattern required as qualifications for a job or range of jobs in a given occupational area;

"Technical Education" shall refer to the education process designed at post-secondary and lower
tertiary levels, officially recognized as non-degree programs aimed at preparing technicians, para-
professionals and other categories of middle-level workers by providing them with a broad range of
general education, theoretical, scientific and technological studies, and related job skills training;

"Trade" shall mean any group of interrelated jobs or any occupation which is traditionally or officially
recognized as craft or artisan in nature requiring specific qualifications that can be acquired through
work experience and/or training;

"Middle-Level Manpower" refers to those:

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 at post-secondary education with a
corresponding degree of diploma; or

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

"Private Enterprises" refers to an economic system under which property of all kinds can be privately
owned and in which individuals, alone or in association with another, can embark on a business
activity. This includes industrial, agricultural, or agro-industrial establishments engaged in the
production, manufacturing, processing, repacking or assembly of goods including service-oriented
enterprises;

"Trainers" shall mean persons who direct the practice of skills towards immediate improvement in
some task;

"Trainors/trainers" shall mean persons who provide training to trainers aimed at developing the
latter's capacities for imparting attitudes, knowledge, skills and behavior patters required for specific
jobs, tasks, occupations or group of related occupations.

"Trainees" shall mean persons who are participants in a vocational, administrative or technical
training program for the purpose of acquiring and developing job-related skills;

"Apprenticeship" training within employment with compulsory related theoretical instruction
involving a contract between an apprentice and an employer on an approved apprenticeable
occupation;

"Apprentice" is a person undergoing training for an approved apprenticeable occupation during an
apprenticeship agreement;

"Apprenticeship Agreement" is a contract wherein a prospective employer binds himself to train the
apprentice who in turn accepts the terms of training for a recognized apprenticeable occupation
emphasizing the rights, duties and responsibilities of each party;

"Apprenticeable Occupation" is an occupation officially endorsed by a tripartite body and approved
for apprenticeable by the Authority;

"Learners" refers to persons hired as trainees in semi-skilled and other industrial occupations which
are non-apprenticeable. Learnership programs must be approved by the Authority;

"User-Led" or "Market-Driven Strategy" refers to a strategy which promotes strengthened linkages
between educational/training institutions and industry to ensure that appropriate skills and knowledge
are provided by the educational system;

"Dual System/Training" refers to a delivery system of quality technical and vocational education
which requires training to be carried out alternately in two venues: in-school and in the production
plant. In- school training provides the trainee the theoretical foundation, basic training, guidance and
human formation, while in-plant training develops his skills and proficiency in actual work conditions as
it continues to inculcate personal discipline and work values;

"Levy Grant System" refers to a legal contribution from participating employers who would be
beneficiaries of the program (often as a percentage of the payroll) which is subsequently turned over
or rebated to enterprises offering employee training programs.cralaw

SEC. 5. Technical Education and Skills Development Authority; Creation. - To implement the policy
declared in this Act, there is hereby created a Technical Education and Skills Development Authority
(TESDA), hereinafter referred to as the Authority, which shall replace and absorb 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.cralaw

SEC. 6. Composition of the Authority. - The Authority shall be composed of the TESDA Board and the
TESDA Secretariat.cralaw

SEC. 7. Composition of the TESDA Board. - The TESDA Board shall be composed of the following:

The Secretary of Labor and Employment
Chairperson
Secretary of Education, Culture and Sports
Co-Chairperson
Secretary of Trade and Industry
Co-Chairperson
Secretary of Agriculture Member
Secretary of Interior and Local Government
Member
Director-General of the TESDA Secretariat
Member

In addition, the President of the Philippines shall appoint the following members from the private
sector:

two (2) representatives, from the employer/industry organization, one of whom shall be a woman;
three (3) representatives, from the labor sector, one of whom shall be a woman; and two (2)
representatives of the national associations of private technical-vocational education and training
institutions, one of whom shall be a women. As soon as all the members of the private sector are
appointed, they shall so organized themselves that the term of office of one-third (1/3) of their
number shall expire every year. The member from the private sector appointed thereafter to fill
vacancies caused by expiration of terms shall hold office for three (3) years.cralaw

The President of the Philippines may, however, revise the membership of the TESDA Board, whenever
the President deems it necessary for the effective performance of the Board's functions through an
administrative order.cralaw

The TESDA Board shall meet at least twice a year, or as frequently as may be deemed necessary by
its Chairperson. In the absence of the Chairperson, a Co-Chairperson shall preside. In case any member
of the Board representing the Government cannot attend the meeting, he or she shall be regularly
represented by an undersecretary or deputy-director general, as the case may be, to be designated by
such member for the purpose.cralaw

The benefits, privileges and emoluments of the Board shall be consistent with existing laws and
rules.cralaw

SEC. 8. Powers and Functions of the Board. - 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:

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;

The implementation of the above-mentioned policy requires the coordination and operation of
policies, plans, and programs of different concerned sectors of Philippine society;

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

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. lend 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 subjects 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 Committee 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.cralaw

SEC. 9. Power to Review and Recommend Action. - The Authority shall review and recommend action
to concerned authorities on proposed technical assistance programs and grants-in-aid for technical
education or skills development, or both, including those which may be entered into between the
Government of the Philippines and other nations, including international and foreign organizations,
both here and abroad.cralaw

SEC. 10. The TESDA Secretariat. - There is hereby created a Technical Education and Skills
Development Authority Secretariat which shall have the following functions and responsibilities:

To establish and maintain a planning process and formulate a national technical education and skills
development plan in which the member-agencies and other concerned entities of the Authority at
various levels participate;

To provide analytical inputs to policy decision-making of the Authority on allocation of resources and
institutional roles and responsibilities as shall be embodied in annual agencies technical education and
skills development plans, in accordance with the manpower plan for middle-level skilled worker as
approved by the Authority;

To recommend measures, and implement the same upon approval by the Authority, for the effective
and efficient implementation of the national technical education and skills development plan;

To propose to the Authority the specific allocation of resources for the programs and projects it shall
undertake pursuant to approved national technical education and skills development plan;

To submit to the Authority periodic reports on the progress and accomplishment of work programs of
implementation of plans and policies for technical education and skills development;

To prepare for approval by the Authority an annual report to the President on technical education
and skills development;

To implement and administer the apprenticeship program as provided for in Section 18 of his Act;

To prepare and implement upon approval by the Authority a program for the training of trainers,
supervisors, planners and managers as provided for in Section 23 of this Act;

To enter into agreement to implement approved plans and programs and perform activities as shall
implement the declared policy of this Act; and to perform such other functions and duties as may be
assigned by the Board.cralaw

SEC. 11. Director-General. - The TESDA Secretariat shall be headed by a Director-General, who shall
likewise be a member of the TESDA Board. The Director-General shall be appointed by the President of
the Philippines and shall enjoy the benefits, privileges and emoluments equivalent to the rank of
Undersecretary.cralaw

As Chief Executive Officer of the TESDA Secretariat, the Director-General shall exercise general
supervision and control over its technical and administrative personnel.cralaw

SEC. 12. Deputy Directors-General. - The Director-General shall be assisted by two (2) Deputy
Directors-General to be appointed by the President of the Philippines on recommendation of the TESDA
Board. One to be responsible for Vocational and Technical Education and Training and one to be
responsible for Policies and Planning.cralaw

The Deputy Directors-General shall enjoy the benefits, privileges and emoluments equivalent to the
rank of Assistant Secretary.cralaw

SEC. 13. Chief of Services for Administration. - The Director-General shall also be assisted by a Chief of
Services for Administration who shall be a Career Civil Service Official to be appointed by the TESDA
Board.cralaw

SEC. 14. Structural Organization and Personnel. - The TESDA Secretariat, in addition to the offices of
the Director-General, Deputy Director-General and Chief of Services for Administration shall be
composed of the following offices to be headed by an Executive Director to be appointed by the
Director-General and shall have the rank and emoluments of Director IV.cralaw

Planning Office (PO) - The Planning Office shall be under the Office of the Deputy Director-General
and shall have the following functions:

1. To design and establish planning processes and methodologies which will particularly enhance the
efficiency of resource allocation decisions within the technical education and skills development
sector;

2. To lead in the preparation and periodic updating of a national plan for technical education and
skills development which shall become the basis for resource allocation decisions within the sector;

3. To conduct researchers, studies and develop information systems for effective and efficient
planning and policy making within the sector;

4. To develop and implement programs and projects aimed at building up planning capabilities of
various institutions within the sector; and

5. To perform such other powers and functions as may be authorized by the Authority.

Skills Standards and Certification Office (SSCO) - The Skills Standards and Certification Office shall be
under the office of the Deputy Director-General and shall have the following functions:

1. To develop and establish a national system of skills standardization, testing and certification in
the country;

2. To design, innovate and adopt processes and methodologies whereby industry groups and
workers' guilds take note on progressively the responsibility of setting skills standards for identified
occupational areas, and the local government units actively participate in promoting skills standards,
testing and certification;

3. To establish and implement a system of accrediting private enterprises, workers' associations and
guilds and public institutions to serve as skills testing venues;

4. To conduct research and development on various occupational areas in order to recommend
policies, rules and regulations for effective and efficient skills standardization, testing and
certification system in the country; and

5. To perform such other duties and functions as may be authorized.

National Institute for Technical Vocational and Education Training (NITVET) - The National Institute
for Technical Vocational and Education Training to be under the office of the Deputy Director-General
and shall have the following functions:

1. To serve as the research and development arm of the government in the field of the technical-
vocational education and training;

2. To develop curricula and program standards for various technical-vocational education and
training areas;

3. To develop and implement an integrated program for continuing development of trainors,
teachers and instructors within the technical education and skills development sector;

4. To develop programs and project which will build up institutional capabilities within the sector;
and
5. To perform such other powers and functions as may be authorized.

Office of Formal Technical Vocational Education and Training (OFTVET) - The Office of Formal
Technical Vocational Education and Training to be under the office of the Deputy Director-General and
shall have the following functions:

1. To provide policies, measures and guidelines for effective and efficient administration of formal
technical-vocational education and training programs implemented by various institutions in the
country;

2. To establish and maintain a system for accrediting, coordinating, integrating, monitoring and
evaluating the different formal technical-vocational education and training programs vis--vis the
approved national technical education and skills development plan;

3. To establish and maintain a network of institutions engaged in institutionalized technical-
vocational education and training, particularly with local government units; and

4. To perform such other duties and functions as may be authorized.

Office of the Non-Formal Technical-Vocational Education and Training (ONFTVET) - The Office of the
Non-Formal Technical-Vocational Education and Training to be under the office of the Deputy Director-
General and shall have the following functions:

1. To provide direction, policies and guidelines for effective implementation of non-formal
community-based technical-vocational education and training;

2. To accredit, coordinate, monitor and evaluate various non-formal technical-vocational education
and training programs implemented by various institutions particularly, by local government units;

3. To establish and maintain a network of institutions including local government units, non-
government organizations implementing non-formal, community-based technical-vocational education
and training;

4. To perform such other powers and functions as may be authorized.

Office of Apprenticeship (OA) - The Office of Apprenticeship shall be under the office of the Deputy
Director-General and shall have the following functions:

1. To provide direction, policies and guidelines on the implementation of the apprenticeship
system;

2. To accredit, coordinate, monitor and evaluate all apprenticeship schemes and program
implemented by various institutions and enterprises;

3. To establish a network of institutions and enterprises conducting apprenticeship schemes and
programs;

4. To perform such other powers and functions as may be authorized.

Regional TESDA Offices - The Regional TESDA Offices shall be headed by Regional Directors with the
rank and emoluments of Director IV to be appointed by the President. The Regional TESDA Offices shall
be under the direct control of the Director-General and shall have the following functions:

1. To serve as Secretariat to Regional Technical Education Skills Development (TESDA) Committee;

2. To provide effective supervision, coordination and integration of technical education and skills
development programs, projects and related activities in their respective jurisdictions;

3. To develop and recommend TESDA programs for regional and local-level implementation within
the policies set by the Authority.

4. To perform such other duties and functions as may be deemed necessary.cralaw

SEC. 15. The Provincial TESDA Offices. - The Provincial Offices shall be headed by Skill Development
Officers who shall have the rank and emoluments of a Director III.cralaw

The Provincial TESDA Offices shall be under the direct control of the Director-General and shall have
the following functions:

1. To serve as Secretariat to Provincial TESDA Committees;

2. To provide technical assistance particularly to local government units for effective supervisions,
coordination, integration and monitoring of technical-vocational education and training programs
within their localities;

3. To review and recommend TESDA Programs for implementation within their localities; and

4. To perform such other duties and functions as may be authorized. Furthermore, the TESDA
Secretariat maybe further composed by such offices as may be deemed necessary by the Authority. The
Director-General shall appoint such personnel necessary to carry out the objectives, policies and
functions of the Authority subject to civil service laws, rules and regulations.cralaw

SEC. 16. Compliance with the Salaries Standardization Law. - The compensation and emoluments of
the officials and employees of the Authority shall be in accordance with the salary standardization law
and other applicable laws under the national compensation and classification plan.cralaw

SEC. 17. Consultants and Technical Assistance, Publication and Research. - In pursuing its objectives,
the Authority is hereby authorized to set aside a portion of its appropriation for the hiring of services
of qualified consultants, and private organizations for research work and publication in the field of
technical education and skills development. It shall avail itself of the services of other agencies of the
Government as may be required.cralaw

SEC. 18. Transfer of the Apprenticeship Program. - 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.cralaw

SEC. 19. Technical Education and Skills Development Committees. - 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 compositions 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.cralaw

SEC. 20. Skills Development Centers. - 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.cralaw

SEC. 21. Formulation of a Comprehensive Development Plan for Middle-Level Manpower. - 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 the 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:

Promote maximum protection and welfare of the worker-trainee;

Improve the quality and relevance and social accountability of technical education and skills
development;

Accelerate the employment-generation effort of the government; and

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.cralaw

SEC. 22. Establishment and Administration of National Trade Skills Standards. - 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 TESDA Secretariat.cralaw

SEC. 23. Administration of Training Programs. - The Authority shall design and administer training
programs and schemes the 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.cralaw

SEC. 24. Assistance to Employers and Organizations. - 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.cralaw

SEC. 25. Coordination of All Skills Training Schemes. - 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.cralaw

SEC. 26. Industry Boards. - 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.cralaw

SEC. 27. Incentives Schemes. - 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.cralaw

SEC. 28. Skills Development Opportunities. - 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.cralaw

SEC. 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.cralaw

SEC. 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 internationals skills
olympics.cralaw

SEC. 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 one-time lump sum appropriation from the National Government;

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;

Donations, grants, endowments, and other bequests or gifts, and 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 institutions as fund
manager, subject to guidelines promulgated by the Board.

SEC 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.cralaw

SEC 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.cralaw

SEC 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.cralaw

Within (3) months after the appointment of the private sector representatives, the President shall,
upon the recommendation of the Board, appoint the General-Director.

Within (4) months after the appointment of the Director General, the Board shall convene to
determine the organizational structure and staffing pattern of the Authority.

Within (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.

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: Provide, 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 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.cralaw

SEC 35. Automatic review. - Every five (5) years, after the affectivity 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 shall review
the performance of the Authority and shall make the recommendations, based on the findings to the
President and to both Houses of Congress.cralaw

SEC. 36. Implementing Rules and Guidelines. - The TESDA board shall issue, within a period of ninety
(90) days after the affectivity of this Act, the rules and regulations for the effective implementation of
this Act. The TESDA Board shall submit tot he committees on Education, Arts and Culture of both
Houses of Congress copies of the implementing rules and guidelines within (30) days after its
promulgation. Any violation of this Section shall render the official/s concerned liable under R. A. No.
6713, otherwise knownas the "Code of Conduct and Ethical Standards for Public Officials and
Employees" and other existing administrative and/or criminal laws.cralaw

SEC. 37. Repealing Clause. - All laws, presidential decrees, executive orders, presidential
proclamations, rules and regulations or part thereof contrary to or inconsistent with this Act are
hereby repealed or modified accordingly.cralaw

SEC. 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.

SEC. 39. Effectivity. - This Act shall take effect fifteen (15) days after its complete publication in two
(2)newspapers of general circulation.