The Dual Training System Act: R.A. No. 7686, R.A. No. 10869 or the Jobstart Philippines Act | Apprentices and learners | Working conditions for special workers | LABOR STANDARDS

Overview and Legislative Framework

In the Philippines, labor standards and social legislation governing special categories of workers—specifically apprentices, learners, and job entrants—are defined and refined through various statutes. Among these are Republic Act (R.A.) No. 7686, also known as the "Dual Training System Act of 1994," and R.A. No. 10869, known as the "JobStart Philippines Act." These laws collectively aim to integrate theoretical learning with hands-on training, improve employability, enhance job matching, and establish a policy framework that assists young Filipinos and new entrants to the labor force to develop the necessary competencies and qualifications for gainful employment.

I. R.A. No. 7686 (The Dual Training System Act of 1994)

1. Purpose and Policy Goals:
   Enacted to institutionalize a system of vocational and technical education that combines in-plant training and in-school theoretical instruction, the Dual Training System (DTS) Act promotes a harmonized and partnership-driven approach to skills development. The law’s underlying objective is to produce skilled workers who meet industry standards, thereby fostering higher productivity and encouraging broader private sector participation in workforce development.

2. Concept of the Dual Training System (DTS):
   The DTS is modeled on systems prevalent in countries like Germany, adapting them to the Philippine context. It involves a contractual arrangement among three key parties:

   • The Accredited Dual Training System Educational Institution (DTS Institution): A school or training center that imparts theoretical knowledge and foundational skills.
   • The Accredited Training Establishment (ATE): A company or enterprise that provides practical, on-the-job training (OJT) aligned with the theoretical component delivered by the educational institution.
   • The Student/Trainee: An apprentice or learner who splits his/her time between the classroom (for concepts and principles) and the workplace (for hands-on experience).

   The training typically follows a structured curriculum jointly developed by the educational institution and the participating enterprise. It ensures that trainees acquire not only technical know-how but also work ethics, discipline, and values consistent with industry practices.

3. Accreditation and Standards:
   The Technical Education and Skills Development Authority (TESDA) is the primary regulatory and oversight body entrusted with:

   • Establishing and enforcing accreditation standards for DTS institutions and ATEs.
   • Setting the minimum requirements for training curricula, including the ratio of theoretical to practical training hours.
   • Monitoring compliance to ensure that the quality of training meets both educational and industry standards.

4. Contractual Arrangements and Conditions:
   The trainee under DTS is not considered a regular employee. Instead, the arrangement is governed by a training contract approved by TESDA. Key contractual conditions include:

   • A defined training period, usually not exceeding three (3) years.
   • Payment of a training allowance (often a percentage of the minimum wage) by the training establishment, taking into consideration the trainee’s productive work output.
   • Provision for social protection: While not considered employees for purposes of tenure, trainees are often covered by certain social benefits, e.g., insurance against accidents.

5. Advantages and Incentives for Enterprises and Schools:
   The law provides incentives, including:

   • Tax deductions on training expenses for participating companies.
   • Potential government subsidies for accredited educational institutions.
   • Access to a pool of well-trained future employees, reducing recruitment and initial training costs.

6. Benefit to Trainees:
   DTS participants gain industry-relevant skills, improving their employability and career prospects. They earn theoretical credentials recognized by TESDA and practical experience valued by employers. This system addresses the mismatch between educational output and labor market needs by ensuring that what is learned is directly applicable to the workplace.

II. R.A. No. 10869 (The JobStart Philippines Act of 2016)

1. Purpose and Policy Direction:
   The JobStart Philippines Act aims to enhance the employability of young Filipinos and other unemployed individuals through a full-cycle employment facilitation service, including life skills training, technical training, and paid internships. It is part of the government’s strategy to address unemployment, underemployment, and job-skills mismatch.

2. Key Components of JobStart Philippines:

   • Registration and Profiling: Jobseekers, typically youth and those with limited work experience, register with Public Employment Service Offices (PESOs). They undergo assessment and profiling to identify their skills, aptitudes, and job preferences.
   • Life Skills Training (LST): Before engagement with an employer, participants receive life skills training that covers personal development, work ethics, financial literacy, interpersonal communication, and problem-solving.
   • Technical Training and Paid Internship: After LST, participants may be matched with employers for technical training specific to the industry. This leads to a paid internship, where the participant works closely with the employer, receives a stipend or allowance, and gains real-world exposure.

   Unlike a typical dual training program that explicitly splits learning between a school and a company, JobStart’s focus is on streamlined career guidance, employability enhancement, and short-term internships that often result in regular employment.

3. Role of Stakeholders:

   • Department of Labor and Employment (DOLE) and PESOs: They administer the program, coordinate with employers, and provide job matching services.
   • Employers: They partner with the government and are provided incentives (such as partial government subsidies for training costs, or reimbursements for training allowances) to mentor and train JobStart participants. Employers benefit by potentially integrating well-prepared interns into their workforce.
   • Participants: They gain meaningful work experience, a structured learning environment, and improved prospects for long-term, stable employment.

4. Incentives and Compliance:

   • The JobStart Act grants participating employers support for training costs and allowances during the internship period.
   • It ensures compliance with labor standards, requiring that interns be treated fairly and given the proper environment to learn and contribute productively.
   • The program helps address both frictional and structural unemployment by bringing together government facilitation, employer participation, and trainee development.

5. Impact on Apprentices and Learners:

   • While not a traditional apprenticeship model, the JobStart Philippines Act complements existing apprenticeship and learnership laws by providing a structured, government-assisted pathway into gainful employment.
   • By focusing on jobseekers who may not yet have the advantage of lengthy vocational training or post-secondary education, it fills gaps left by other training systems and expands the range of options for unemployed youth.

III. Comparative Aspects Between the Dual Training System (R.A. No. 7686) and the JobStart Philippines Act (R.A. No. 10869)

1. Nature of Training:

   • DTS (R.A. 7686): Structured long-term program combining theoretical and practical training. Heavy involvement of accredited schools and training centers in conjunction with enterprises.
   • JobStart (R.A. 10869): Shorter, more flexible program emphasizing job readiness, soft skills, and rapid job placement through short-term technical training and paid internship arrangements.

2. Institutional Involvement:

   • DTS: TESDA-accredited educational institutions and companies form an integral partnership.
   • JobStart: Primarily driven by DOLE through PESOs, with direct employer partnerships and life skills training providers.

3. Target Beneficiaries:

   • DTS: Individuals seeking to master a trade or technical skill through a formal combination of classroom-based learning and on-the-job training.
   • JobStart: Broad range of young jobseekers and the unemployed who need immediate preparation for and exposure to the labor market, focusing on rapid employability.

4. Outcome and Integration into Employment:

   • DTS: Generally produces skilled workers with TESDA certification, facilitating future full employment. The trajectory is typically longer and more technical, resulting in mid-level skilled professionals.
   • JobStart: Designed as an accelerated bridge to immediate employment. While it may not produce deeply specialized skills as DTS does, it significantly improves soft skills, overall employability, and job readiness within a shorter timeframe.

IV. Legal and Regulatory Considerations

1. Implementation and Oversight Authorities:

   • DTS under R.A. 7686: Regulated by TESDA. TESDA sets standards, approves training curricula, accredits institutions, and monitors compliance.
   • JobStart under R.A. 10869: Implemented by DOLE in coordination with local government units (LGUs) and PESOs, with support from TESDA or other training providers for upskilling and life skills training.

2. Rights and Protections of Trainees:

   • Both programs ensure that trainees or interns are not exploited as cheap labor. Regulations often mandate allowances, clear contractual terms, and safe working conditions.
   • Under DTS, the training allowance is stipulated in the training contract, while in JobStart, a stipend or allowance is provided during the internship period.
   • Both laws ensure that participants are given opportunities for acquisition of skills, with checks and balances against unjust treatment or discrimination.

3. Interaction with Existing Labor Standards:

   • Trainees under DTS and interns under JobStart are not regular employees. Hence, standard rules on security of tenure generally do not apply. However, minimum standards regarding occupational safety, health, and basic rights are upheld.
   • Both laws complement the Labor Code provisions on apprenticeship and learnership (Articles 59-77 of the Labor Code, as amended) by creating tailored pathways that address specific labor market gaps.

V. Strategic Importance and Future Directions

1. Addressing Skills Mismatch:

   • The Dual Training System and JobStart Act each address the persistent problem of skills mismatch in the Philippines: DTS does so by closely aligning curriculum with industry needs, and JobStart does so by rapidly bridging unemployed youth with job opportunities and preparing them with essential employability skills.

2. Industry Engagement:

   • Both laws promote private sector involvement. DTS relies heavily on industry partnerships for the practical training component, while JobStart encourages employers to participate in nurturing new talent pools, supported by government facilitation and incentives.

3. Continuous Improvement and Expansion:

   • Implementation agencies regularly refine program guidelines. TESDA updates accreditation and quality standards for DTS, while DOLE and PESOs continuously improve the JobStart program to increase coverage, improve matching technology, and expand employer participation.
   • Both systems are expected to evolve to meet emerging labor market trends, incorporate digital learning tools, and align with new occupational standards in a rapidly changing economy.

Conclusion

The Dual Training System Act (R.A. No. 7686) and the JobStart Philippines Act (R.A. No. 10869) represent robust policy instruments embedded within the Philippines’ labor law and social legislation framework. By catering to different segments of the workforce—those needing structured technical education through DTS, and those seeking immediate employment readiness through JobStart—these laws collectively enhance the continuum of workforce development. They provide mechanisms for securing industry-relevant skills, bridging educational outcomes with labor market demands, and fostering a more inclusive, employable, and adaptive Filipino labor force.