Republic of the PhilippinesDEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS

July 23, 2013

MEMORANDUM CIRCULAR ,NO. 2013-41

For UndersecretariesAssistant SecretariesHeads of Sectoral Offices and Attached Agencies

and CorporationsHead Executive AssistantService DirectorsRMC ChairmenDivision ChiefsThis Department

For your information and dissemination, transmitted herewith is:

SUBJECTNATURE DATE

July22,2013DBM-Circular LetterNo. 2013-5

"GUIDELINES ON THE FILLING OFPOSITIONS AND THE HIRING OFPERSONNEL FOR AGENCIESWHOSE RATIONALIZATION PLAN(RP) IS YET TO BE APPROVED BYTHE DEPARTMENT OF BUDGETAND MANAGEMENT (DBM), THOSEWHOSE PLAN WAS WITHDRAWN,RETURNED WITHOUT ACTION ORNOT SUBJlIlITTED WITHIN THEDEADLINE, AND THOSE WITHAPPROVED PLAN"

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ROWEN ~OGUEDirector (KVQU1

Administrative Service

THE COLUMBIA TOWERBRGY_ WACK-WACK, ORTIGAS AVENUE1555 MANDALUYONG CITY, PHILIPPINES

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J .~CIRCULAR LETfER 1 b \ •.~.'"•."itrl \ #::.r:~ ..~

NO._~2.•.•.0.a..13..a....;;.- ••••5L:-July 22, 2013Date: ../

SUBJECT

H~ADS OF DEPARTMENTS AND AGENCIES OF THE EXECUTIVEBRANCH, INCLUDING GOVERNMENT-OWNED AND/OR-CONTROLLED CORPORATIONS (GOCCS), GOVERNMENTFINANCIAL INSTITUTIONS (GFIs}, AND All OTHERSCONCERNED

:' GUIDELINES ON THE -=IlLING OF POSITIONS AND THE HIRINGOF PERSONNEL FOR AGENCIES WHOSE RATIONAUZAlION.PLAN (RP) ISYEf TO BE APPROVED BY THE DEPARTMENT OFBUDGET AND MANAGEMENT (OBM), THOSE WHOSE PLAN WASWITHDRAWN, RETURNED WITHOUT ACTION OR NOTSUBMITIED WltHlN· THE DEADLINE, AND THOSE WITHAPPROVED PLAN I

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This Circular Letter Is being issued to provide the policies and quidelines on the filllngof positions and the hiring of temporary/casual/contractualjcontract of service/joborder personnel and consultants for the followlnq Departments/Agencies:

a. Whose Plan is yet to be approved by the DBM;b. .Whose Plan was withdrawn, returned without action or not submitted within the

deadline; andc. Whose Plan has been approved by the DBM.

2.0 Guidelines

Hereunder are the specific policies and guidelines to be implemented inDepartments/Agencies concerned:

2-1 ForAqencies WhoseJ?lan Is Yet to be Allproved by the DOM

2.1.1 The. moratorium on the filling of 'regular/permanent/itemized positions,either through original appointment, promotion, transfer orreemployment, and the hiring of new casuals/contractuals, includingpersonnel on a con5ultancYlemer~DCY /contract of service/job orderbasis, shall continue to be implemented until their respective RP isapproved.

The temporary suspension shalt not apply to teaching positions, medicaland allied medical items in hospttats.and other medical facilities servicingagency clients, as well as to uniformed positions in the Departments ofNational Detense, the Interior and Local Government, Transportation andCommunications, and Environment and Natural Resources.

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2.1.'2 Department Secretaries/Agency Heads shall continuallv be allowed torenew the appointments of personnel on casual/temporarv status and thecontracts of personnel under contractual/consultancy/contract ofservice/job order basis for the period that the Pian of theDepartment/Agency is not yet approved, but not to go beyond one (.t)month after the approval of the agency"sRPr except thosepersonnel whose authorized period of hiring should not go beyond30 June 2013 and those with specific deliverabies for a!:.et tlmeframe,subject to pertinent budgetary, civil service, accountinq and auditing rulesand requlatlons, and the following condttions..'

a, The funds appropriated for the purpose are sufficient and the actionwould not entail additional budgetary release or the realignment ofnon-Personnel Services (PS) funds to PS;

b. The maximum number of personnel whose contracts/appointmentswould be renewed shall not exceed the actual employees at the startof the Department/ Agencts rationalization efforts, i3S adjusted by theDBM-authorlzed hiring of new/additional personnel; and

c. There shall be no new hiring and/ replacement of resigned/retired!separated/terminated/ reg ularized staff.

The renewal of appointments/contracts of personnel for projects withDBM-approved staffing pattern shall be limited to the existing number ofauthorized positions and to the set tlmeframe for hiring.

2.2 PQrAqencies Whose Plan Was Bt;tumed WithgutActkmLWitI!.drawn orNot •.'tubmitteq WIthin the DClldline

2.2.1 Agencies whose RP was returned without action, withdrawn or not.submitted on or before 28 February 2013 to the DBM are no longercoveredby the Rationalization Program.

2_2.2 However/ the filling of positions and the hiring of contractual/casualpersonnel in said Agencies shall be covered by the provisions of.Adminlstratlve Order (AO) No. 103 (DirectIng the ContinuedAdoption of Austerity Measures in Government) dated31 August 2004.

2..2..3 Speclflcallv, fifty percent (50%) of tha PS savings of said Agencies thatwill be realized from funded vacant/vacated regular positions could beused for filling of positions without seeking DBtv'! authority, consistent withSection 3.3.:1 of the Clvl/ Service Commission-DBMJoint Circular(YC) No. 3 (Continued Adoption of Austerity Measures Throughthe Non~Filling of Vacant Positions) dated 14 December ,2004, whichcontains the guidelines on the implementation of Section 2 of AO 103,

The Agency Heads shall have the discretion as. to which positions will befilled provided the total cost thereof shall not exceed 50% of the PSsavings.

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2.2.4 ~~ot-eover, the aforementioned Agencies shall reduce at lea/it tenpercent (10%) of the cost of services of their consultants, technicalassistants, contractual and casual employees, in accordance with item 1af Section 1,b of AO 103 .

.2.3 For Agencies With Apprars:d. Re

2.3_1 Departments/AgenCi€s/GOCCs/GFIS with approved RP are no longercovered by the moratorium on the filling of positions/hiring of personnel.-

Hence, said Agencies could fill their vacan positions without requestingauthority from the DBM..

2-3;2 In addltion, Departments/Agencies/GOCCs/GFIS whose Plan has alreadybeen approved by the DBM are allowed to outsource certain services, thruthe hiring of consultants/job order/contract of service personnel, whereno employer-employee relationship exists; provided it is consistent withthe following:

a. Overall policy under the approved RP on services/areas which couldbe outsourced (e.g., utility! building and grounds maintenance,messengerial, security, transportation/mobility, and informationtechnology);

b. Agency policy on which other services to outsourcs: andc. Pertinent budgetary, civil service, accounting and auditing rules and .

regulations.

The Agencies should likewise ensure that the hiring of consu'tants/loborder/contract of service personnel would contribute to the attainment oftheir objectives and would not adversely affect the lrnplernentatlon oftheir regular programs/projects and the achlevement of their worktargets.

Agencies which have cctermmus with the incumbent (CT1). positions areprohibited from hIring personnel whose functions are similar to thosebeing performed by the incumbents of the m items.

2.3.3 As provided under Section 4 of EO 77 dated 08MilY 2012rAgencies with approved Plan shall not be allowed additional regularpositions for at least five (5) years, except the following:

a. Those to be created under the "scrap and build policy" where there tsno additional cost to the government;

b. populat!on~related items such as policemen, teachers, and medicaland allied medical positions for hospitals and similar facilities; and

c. For mandated new functions which cannot be absorbed by existingunits/positions, as determined by the DBM.

1 Amending Executive Order (EO) No. 637 (5. 2007) on the Basis of the Computation of the Incentives ofPersonnel Affected by tile Irrtplementation of the Rationalization Program Under EO No. 366 (s. 2004)

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PoliCy on the Rehicing Qf,Retiredl5eparated Personnel

2.4 Government personnel who opted to retire/be separated from the service as aresult of the rationalization efforts of their Department/Agency shall not beappointed nor hired as casuals or contractuals in any agency of the ExecutiveBranch, including in GOCCs/GFIs, for Cl period of five (5) years, except asteaching or medical staff in educational institutions and hospitals, or hired as aconsultant/contract of service/job order personnel where there is no employer-employee relationship, as the case may be; with reernployment in any Branch ofGovernf!'ent to be considered as new entry to the civil service.

3.0 Responsibility Clause

It shaH "be the responsibility of the Department Secretaries and equivalent AgencyHeads to strictly implement the provisions of this Circular Letter, including the laws,rules and regulations indicated herein. In case of any violation of the same, theofficial authorizing such action shall be held responsible for whatever expenses thegovernment incurred for not strictly following said issuances-

4.0 Applicability Clause

The provisions of this Circular Letter shall be applicable until revoked •.

5.0 Effectivity

This Circular Letter shall take effect upon its publtcation in a newspaper of qeneralcirculation. .

FLORENCXO S. ABADSecretary

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