Dual Training System

INFORMATION SHEET 4.1-2

Learning Objectives:

After reading this INFORMATION SHEET, you should

be able to:
1. define dual training system;
2. enumerate the objectives of the dual training
system Act of 1994;
 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 published in 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 Philippine 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 conomy.
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
b) 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" herein
after 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 he 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 not
with standing, 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 EmployEmployee 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.