Republic of the Philippines

ISABELA STATE UNIVERSITY

Angadanan, Isabela

COLLEGE OF EDUCATION
Bachelor of Technical Vocational Teacher Education

Chapter 2: Dual Training System

I. Introduction

These chapters explain and define dual training system, it also includes the objectives of the
dual training system act 1994.

II. Objectives
At the end of the chapter, the students’ should be able to:
1. Define Dual Training system
2. Enumerate the objectives of the dual training system act 1994

III. Discussion Proper/Learning Contents

The Dual Training system in the Philippines is a training modality that is

guided by Republic Act No. 7686. This Act provides legal guidelines in its
implementation.
In this lesson, you will be provided by the relevant policies and
guidelines of Work-based Learning using the dual training system modality.

The dual training system in the Philippines

Exerpts from Tek-Bok BUZZ/Manila Bulletin/ May 7, 2010 as publishedin
the TESDA website
Adaptation from the German model
One of the more preferred training modality for enterprise-based
training in the Philippines today is the dual training system (DTS) being
implemented by TESDA.
The DTS, as its name suggests, is a training modality that
combines theoretical and practical training. It is called dual training
because learning takes place alternately in two venues: the school or
training center and the company or workshop.
In DTS, the school and workplace share the responsibility of
providing trainees with well-coordinated learning experiences and
opportunities.
This close cooperation between the school and the company
ensures that the trainees are fully equipped with employable skills,
work knowledge, and attitudes at the end of the training.
 The general and occupation-related theoretical instruction
provided by the school is complemented by on-the-job training in the
workplace. Trainees under the DTS spend at least 40 percent of the
training/learning time in school and 60 percent for practical training in
the company.
Dual approach in training
The dual approach in education and training has been put to
work in such country programs as apprenticeship, on-the-job training,
supervised industry training, practicum and internship.
The German model of the DTS was first introduced in the
Philippines in the 1980s through a joint project of the Southeast Asian
Science Foundation and the Hanns Seidel Foundation in the pioneer
school- Dualtech Training Center.
The Dualtech experience was replicated in select public and
private technical schools nationwide by the then Bureau of Technical
and Vocational Education in 1991.
In February 1994, President Fidel V. Ramos signed into law
Republic Act No. 7686 or the Dual Training System Act of 1994 which
calls for the institutionalization of the DTS in accredited public and
private educational institutions, training centers, and agricultural,
industrial and business establishments.
Under the DTS Law, TESDA is mandated to promote, coordinate,
and administer the dual training system. The school-industry
partnership component of the system is a vital determinant of program
success and effectiveness. They start working together in making the
training plan and determining the best way by which the trainee can
learn as much knowledge and skills during the training period.
Two training venues
In school, the trainee learns basic trade theory, work values,
good citizenship, safety and related theory subjects in mathematics,
drawing and social sciences.
At the company or workshop, the trainees learn job skills through
practical exercises using state of the art technology. Aside from
technical skills, the trainees also learn good work habits and how to get
along well with others.
The many benefits for the trainee, school or training institution,
and the company made the DTS click as a training modality.
The trainees’ access to the expertise and resources available
and the well-coordinated delivery of instructional activities in both
learning venues guarantees quality and relevant training.
DTS graduates are equipped with up-to-date and appropriate
work knowledge, skills and attitudes making them highly competitive
and “wanted”in the labor market.
The companies’ participation in drawing up the DTS training plan
helps ensure that the workers being trained are the type and quality that
industry requires. Optimum use of school and company facilities and
resources allows the admission of more trainees- mostly from poor
families who have no means of attending vocational training courses in
fee-charging schools and training centers.
 The provisions of the Republic Act 7686 called the Dual Training
System Act of 1994 will enlighten you with how government and the
industry help in the industry training. Read the provisions carefully so that
you will have a guide in making your training plan required in the
succeeding lessons.

REPUBLIC ACT NO. 7686

February 25, 1994

DUAL TRAINING SYSTEM ACT OF 1994

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 THEREFOR AND FOR OTHER
PURPOSES.

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
businessestablishments, the accredited dual training
system, educationalinstitution/training centre and the
trainee.Before an individual establishment begins with an accredited
education institution/trainingcentre and the trainee or his representative,
the individual establishmentshall provide the accredited educational
institution/training centre and thetrainee 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 fundthe
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
ormodified 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.