Lesson 2

Dual Training System

Learning Objectives:

After reading this INFORMATION SHEET, you should be able to:

 define dual training system;

 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

Excerpts 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 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.

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
 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.

Nature of Dual Training System in the Philippines

Dual system education programs combine school-based (theoretical training) and
work-based (practical training) education. This is intended to address the job-skills
mismatch and guarantee that students will gain adequate knowledge and practical
skills that will enhance their employability. Such an approach is operationalized in
the form of apprenticeships, on-the-job trainings, and internships, among others.
Many highly developed countries like Australia, Germany, and Switzerland have
successfully adopted this approach in their vocational education systems and have
benefited remarkably from it.

Germany has one of the most esteemed and modeled-after training systems. The
Government of Germany identifies shared responsibility between government,
employers, and trade unions as one of its key strengths in ensuring quality
education while also responding to the emerging needs of the economy. Australia,
which has adopted the dual training system approach, likewise highlights shared
responsibility among stakeholders as the key to a successful and efficient Technical
and Vocational Education and Training (TVET) system. Aside from industry
engagement, effective regulation, and a quality training market, its notable strength
is its qualifications system, which “meets both industry’s needs (employment skills
match) and individuals’ needs (portable skills to move across the labor market and
support lifelong learning). Given its success in maintaining low youth
unemployment levels.

The Dual Training System Act of 1994. The law mandates the Technical Education
and Skills Development Authority (TESDA) to promote, coordinate, and administer
the dual training system and provides tax incentives to encourage the participation
of companies in the DTS.

Issues and Challenges

Despite many initiatives and government programs, reducing unemployment
continues to be a major challenge in the Philippines. Job-skills mismatch is often
cited as one of the reasons for high unemployment, especially among the youth.
Particularly, graduates are not equipped with the skills and competencies needed
by industries. On the other hand, many businesses are also not aware of the
qualifications that they need. Reforms were instituted in basic education in 2013
through the K to 12 Program, to strengthen the relevance of the curriculum and
better prepare high school graduates, whether they want to seek college education
or employment. The Technical–Vocational–Livelihood (TVL) track introduced in
senior high school was particularly designed to equip learners with job-ready skills.
However, as with any newly implemented initiative, K to 12 Program
implementation is facing birth pains or challenges in terms of lack of resources (i.e.,
infrastructure, teachers, classrooms, materials). The TVL track is particularly facing
gaps in facilities (for practical learning, skills development), needed human
resources (assessors for national certificates), and limited companies willing to
engage/support student immersion programs.

Proposed Solutions
The DTS is being promoted by the Government, because such an approach
specifically addresses the issue of job-skills mismatch, given that it promotes
partnerships among Technical Vocational Institutions (TVIs). Such collaboration
enables schools and TVIs not only to determine the skills needs of industries, but
also to foster linkages that will encourage companies to directly employ
students/graduates and/or support their partner schools and institutions (through,
e.g., curriculum development, sharing of knowledge and facilities, investment in
resources).

Local studies in the Philippines affirm that dual training systems and other TVET
modalities that promote industry partnerships result in high employment rates.4
Further, a cost-benefit study also shows that DTS produces positive spillover
effects, because DTS-trained workers are more productive.5 However, despite these
benefits, DTS accounts for only a very small portion of trainees in the TVET sector
in the Philippines.6 Promoting DTS as a mode of TVET delivery continues to be a
challenge, despite existing laws and incentives intended to scale it up.

Examples of Good Practices in the Philippines

In the Philippines, several government–academe–industry collaborative initiatives
and innovative programs have brought promising results in TVET. K to 12 Plus
Project When a TVL track was rolled out as part of the K to 12 basic education
reform in the Philippines, the K–12 Plus Project was initiated by the Philippine
Chamber of Commerce and Industry (PCCI). It supports the K to 12 Program of the
Government by introducing these features:

 conduct of industry needs assessments

 bundling of competencies to make the graduates attractive to employers,

 training supervisors in companies to become qualified in-company trainers,

and

 increasing immersion in companies from 80 hrs. to up to 1,000 hrs.

With the goal of preparing students for high-quality jobs in the labor market, the K
to 12 Plus Project provides Level III and Level IV Skills Certificate programs that
last from six months to two years. It is also working on a ladderized arrangement
to allow its students/graduates to work and enable them to pursue higher
education later on, should they want to.

An important and strong feature of the K to 12 Plus Project is its facilitation of

linkages among government, training centers, and industries. They have engaged
with key industry chambers and associations (e.g., Philippine Chamber of
Commerce and Industry, Human Resources Development Foundation, Cebu
Chamber of Commerce and Industry, German–Philippine Chamber of Commerce
and Industry, and Mindanao Microfinance Council) and German partners German
Society for International Cooperation (GIZ) and German Confederation of Skilled

Dual Training System Implication for the Future

Because of rapid changes in the skills and employment landscape due to the digital
revolution, TVET also needs to evolve to become even more responsive to the needs
of the economy. Particularly, training systems need to be flexible enough in terms of
updating curriculum and adopting new and up-to-date technologies. This also
entails capacitating trainers to enable them to swiftly adjust and foster the needed
competencies among learners. Scaling up successful and innovative DTS models
will be crucial in ensuring flexible training systems because of their strengths and
features that facilitate expeditious sharing of labor market information, expertise,
and/or resources.

Dual Training System (DTS) Cost and Benefit Study

TESDA and Philippine Chamber of Commerce and Industry (PCCI) – Human

Resources Development Foundation conducted a study about the Cost and benefit
Analysis of the Dual Training System in The Philippines. Dualtech and its partner
companies were among the DTS stakeholders that provided empirical data as
follows:

 DTS trainees provide long term benefits that includes recruitment costs (ads,
personnel), productivity difference, and orientation cost.
 Combined short and long term benefits is bigger than the overall costs by Php
3,500 per trainee.
 For firms in the DTS program lasting for more than 12 months, the short
term benefit accounts for about 51% of the average cost per trainee per month.
 It is beneficial for firms to engage in training programs that are a bit longer
than the usual three months because of relatively higher benefits
 The non-monetary benefits include the positive image for the firm for helping
young members of society, potential increase in the welfare of the trainees
(higher salary and higher probability of being employed)
 DTS program produces substantial positive spillover effects on the DTS-
trained workers – the trainees become more productive.

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:

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;

encourage increasing levels of investment in technical and vocational

education and training by both public and private sectors especially in the
rural areas;

(a) 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

(b) strengthen training cooperation between agricultural,

industrial and business establishments and educational
institutions by designing and implementing relevant training
programs in close coordination with concerned local
government units.

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
center and accredited dual system agricultural, industrial and
business establishments with prior notice and advice to the
local government unit concerned. Under this system, said
establishments and the educational institution share the
responsibility of providing the trainee with the best possible
job qualifications, the former essentially through practical
training and the latter by securing an adequate level of
specific, general and occupation-related theoretical
instruction. The word "dual" refers to the two parties
providing instruction: the concept "system" means that
the two instructing parties do not operate independently
of one another, but rather coordinate their efforts;

(a) "Trainee" refers to a person qualified to undergo the dual

training system for the purpose of acquiring and developing job
qualifications;

(b) "Accredited dual training system educational

institution/training center" refers to a public or private
institution duly recognized and authorized by the appropriate
authority, in coordination with business and industry, to
participate in the dual training system;

(c) "Trainee" refers to a person qualified to undergo the dual

training system for the purpose of acquiring and developing job
qualifications;

(d)"Accredited dual training system educational

institution/training center" refers to a public or private
 institution duly recognized and authorized by the appropriate
authority, in coordination with 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 centers 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 center shall

establish an industrial coordinating office which shall supervise
the in-plant training: provided that the industrial establishment
shall be required to furnish the educational institution with the
necessary information for the purpose of supervision.

The industrial coordinating office shall be headed by an industrial

coordinator with at least an officer-level rank. The industrial
coordinator may be assisted by such other personnel as may be
necessary for the effective discharge of the functions of the office.

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 program in a
particular agricultural, industrial or business establishment shall be
given priority of employment in that agricultural, industrial or business
establishment. The appropriate authority shall keep a roll of these
successful trainees for purposes of identifying them for employment.

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 labor expenses but in no case to
exceed twenty-five million pesos (P25, 000,000) a year.

Donations for the operation of the system shall be deductible from the
taxable income of the donors.

The Department of Finance shall issue the necessary rules and regulations
for the purpose of tax incentives provided herein.

Section 10. Obligations of accredited agricultural, industrial and

business establishments. The agricultural, industrial and business
establishments shall:
(a) ensure that the necessary abilities and knowledge for
the trainee to achieve the purpose of his training are
imparted to him and shall provide such training
systematically in accordance with an 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

center the daily allowance of the trainee; and

(g) allow the trainee the necessary time off for his in-school training.

Section 11. Obligations of the trainee. A trainee shall exert every

effort to acquire the abilities and knowledge necessary for him to
achieve the purpose of his training. Towards this end, he shall:

(a) carefully perform the jobs entrusted to him as part of his

training;

(b) take part in training programs for which he has been

granted time off under this Act;

(c) follow the instruction given to him as part of his

training by the training officer or any other person entitled
to give him such instructions;

(d) observe rules of behavior in the training premises;

(e) use tools, instruments, machines and other equipment with due
care;

(f) not reveal any business 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 centers. The educational institutions/training
centers that have entered into a memorandum of agreement with
agricultural, industrial or business establishments to undertake training
shall:

(a) design, implement and evaluate jointly the training plan with
the

accredited establishments;

(b) provide specific, general and occupation-related

theoretical
instruction;
(c) appoint industrial coordinators to supervise the in-plant
training;
(d) pay the trainee his daily allowance; and
(e) perform such other tasks and activities as may be
necessary and in furtherance of the objectives of the
training.

Section 14. Signing of memorandum of agreements by the

accredited dual training system agricultural, industrial and
business establishments, the accredited dual training system,
educational institution/training center and the trainee. Before
an individual establishment begins with an accredited education
institution/training center and the trainee or his representative, the
individual establishment shall provide the accredited educational
institution/training center and the trainee with a copy of the signed
agreement.

The memorandum of agreement shall set forth, among others, the

 following:

(a) the training plan;

(b) the nature and objective of the training;

(c) the commencement and duration of the training period,

including the total number of in-school and in-plant
training hours;

(d) the normal daily training hours;

(e) the trainee's allowance and the rate to be applied, which

in no case shall start below seventy-five (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 center is hereby authorized to retain as a revolving
fund the amount paid to it by the agricultural, industrial and business
establishments representing the actual dual training expenses. The fund
shall be used to improve the operation of the dual training system.

Section 17. Implementing rules. The appropriate authority and the

Department of Finance, upon prior consultation with the business and
industry concerned, shall issue the necessary rules and regulations for the
effective implementation of this Act within a period of ninety (90) days after
its effectivity. Any violation of this section shall render the concerned
officials liable under R.A. No. 6713, otherwise known as the "Code of
Conduct and Ethical Standards for Public Officials and Employees" and
other existing administrative and/or criminal laws.

Section 18. Other exemption from taxes and duties. Any donation,
contribution, bequest, subsidy or financial aid which may be made for the
operation of the system shall constitute 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 t h e 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.