ru:piJi)LIC Of, n I[ PHIUPPTNCS

Departmentof Budget and Management

Building I, Gcnc:m) Solano Street,' 5.m Mi9uct Manila

No.. ~~008"t~
December 12,

2008.'

TO

HEADS OF DRPARTMENTS AND AGENCIES OF THE

EXECUTIVE
BRANCH,
INCLUDING
GOVERNMENT-"OWNED AND/OR -CONTROLLED CORPORATIO~S
(GOCCs), GOVERNMENT
FINANCIAL
INSTITVTIONf
(GFIs), AND ALL OTHERS CONCERNED
'

SUBJECT

ADDITIONAL
GUIDELTh~S
RELATED
TO
THE
L'VIPLE:M:ENTATION OF
THE
RATIONALIZATION
PROGRAM: UNDER EXECUTIVE ORDER 366

1.0 Purpose
This Circular Letter is being issued to:
1.1

Reiterate the continuing moratorium on the tilling of vacant regular/permanent/

itemized positions by Departments/Agendes/GOCCs/GFIs
of the 'Executi\E'

Branch and the hiring of new casuals/contractuals, including personnel .on

cousultancy/cmcrgency/job order basis, while their respective Rationalization
Pian has not yet been approved;
"

1.2

Extend

the

authority of Department Secretaries/ Agency Beads to renew the

appointments' of personnel on casual/temporary

status and the contracts of
personnel under cOlltmctual/consultancy/emcrgency(job
order basis for ~1
specific: period;

, J.3

1.4

Prohibit the employment of affected personnel who opted to retire/be separated.

iY01Tl. the service under EO 366 in any agency of the Executive Branch,
including in GOCCs/GFls On a regular, contractual or casual status; and
'
<

Provide the guidelines on the hiring of.personnel

consultancy/contract 'of

OIl

service/job order basis by agencies whose Rationalization

Plans have alreadv

beC:I1 approved by the Department of Budget and Management (DBM), as \~eil

as the availment of the incentive package by affected personnel who hcU1E'
reached the compulsory retirement age.

.... -..,-..- .

2.0

<':;uiddincs
Moratorium on tlw Filling
2.1

ThL~ morutoriurn

through

hiring

011

or P(1lilion~Hiring o{Pers{)IIlU!/
the tWing or regulnr/pcrmauent/itcmized

positions, ciihcr

(.\rigim!1 :.\f1pointmem, promotion, transfer or-reemployment,

and the
of new casuals/coutractuals,
including personnel on con~ull:mi.'Y

continue to be implemented
in .al j
of the Executive Branch \..rho.~e.
R~l.t\om~liz"ti()n Plan has not yet been approved by this Department, consistent
with Section 7 of Executive Order No. 366 and Section 13.a of its

emergency/job

order

basis,

shall

Dcpartmeuts/ Agcncies/GOCCslGFls

Implementing Rules and Regulations.

The temporary suspension

shall not apply to teaching positions, medical and

allied medical itemsin hospitals and other medical facilities servicing agenc;.
clients, as well as to uniformed positions in the Departments of National
Defense,
the Interior and Local Government,
Transportation
and
Communications, and Environment and Natural Resources. However, medical
and allied medical positions which primarily provide service to agency.

personnel are covered by the moratorium.

Authoritv to Renew AppointtJ.len.tsIContracls

2.2

Secretaries/Agency
Heads shall be allowed to renew the
appointments of personnel on casual/temporary status and the contracts of
personnel under contract\.lal/consultancy/emergcncy/job
order basis for the
period that the Department/ Agency is undergoing rationalization activities, hut
not to g() heyondone
(1) month after the approval of the agency's
Rationalizatiou Plan or 30 June 2009, whichever comes earlier, except those
personnel whose authorized period of hiring should not go beyond' 31:
December 2008 and those with specific deliverables for a set timefrarne, subject
Department

to pertinent

budgetary,

civil

service,

accounting

and

auditing

rules

and

regulations and the {(.)l1owing conditions:

a.

For National

Government

Agencies,

tho funds appropriated

for the purpose

arc sufficient and the action would not entail additional budgetary release
Or realignment of non-Personal Services (PS) funds

b. In the case

or

GOCCs,

funds

for the purpose

internally-generated funds/project
Corporate Operating Budget;

c. The maximum number

to PS;

shall

he charged

against

funds included in the Board-approved:

of personnel whose contracts/appointments

would

be renewed shall not exceed the actual employees at the start of the
DepartrnentJAgency'srati.onalization
efforts, as adjusted by the DR'vfauthorized hiring of new/additional personnel; and
""'-.;,

.,.
~

-d.

:~h,dl

TilnL'

\l'l>ltnltL'd/ll'!'!l

~~.3 The renewal

Ill'

1)1l

11L''yV

1iI1:1k'd/r(~gu]

(){"appOltlllnc"llts/eontracts

and to the set timeframe

Policy ol11?ehiring o(RetiredlSepal'ated

2.4

r~~plHccl1wnl

rr.

or personnel

appl'ovL'd S/aftiIlg pattern shall be limited

positions

or

biring<lnd/o('
nri zed ~;I~\

rcsignedhctircd,'

with l.)1~r\1-

[or projects

to the existing number 0(' authorized

for hiring,

Personnel

Government personnel who opted to retire/bo separated from the service as i!

result of the rationalization

efforts of their Department/Agency shall not be

appointed nor hired L~$ casuals or contractuals in any agency of the Executive
Brunch, including in GOCCs/GFIs within a period of live (5) years, except in'
teaching positions in educational institutions and in medical and allied medical
items in hospitals.
Reemployment in any Branch of Government shall be
considered

as new entry to the civil service,

The provision

of consultancy

services

by

government

personnel

who

voluntarily retired/separated shall be governed by Section 7 of RA 671 J or the

'Code of Conduct and Ethical Standards for Public Officials and Employees
dated 20 February 1989 which provides that. he/she cannot practice his/her
profession in connection with any matter before the office he/she used to be
with for a period of one (1) year upon retirement/separation.

Policv on Hiring ofPerS0Jl11el on Contract ofService/Joh

with Al!proved Rationalization Plall

2.6

Order Basis

(or Agellcie.

The outsourcing

of certain services (e.g., utility, building and grounds.

messengerial,
security
and
transportation/mobility)
by'
Departm.ents/Agencies/OOCCs/GFIs
with approved Plans shall be consistent.
maintenance,

with their policy on which services to outsource,

as. prescribed

in their

respective approved Plan.

Agencies, however, may explore other areas for outsourcing provided that the
funds appropriated for the 'purpose are sufficient and the action would not entail,
additional

budgetary

release.

PoJicv on Affected PersQl1nel Who Have Reached the Compul~(JrJ' Retirement Age
2.7

In case an affected personnel reaches the compulsory retirement age of 65

before the approval of his/her agency Rationalization Plan, he/she must retire
on the date of his/her compulsory retirement without incentive.

3.0

Reapons ibitity

Clause

1\ ~h,;\! he the responsihility

l lcuds to strictly

o!' the provisions

or

the provisions

Sccrc.t<.'!rics

Ilnd equivalent

I\gr:ncy ...

or

this Circular Letter. In case

4liiy
Rulesand
Regulations apd .
this Circular Letter, the official ~ltlthorizing such action shall he held responsible for
whatever expenses the government incurred for not strictly following t.he guidelines
set fort h.

viulatiun

implement

of 111(; Dcpartmen!
or

FO 3(i(j, Its Implementing

4.0

Applicability Clause

"':

The provisions oftlJis Circular Letter shall be applicable until revoked.

5.0

<

Effectivity

This Circular Letter shall take effect upon its publication in a newspaper of general
circulation.

ROL~O

G. ANDAYA,JR.

Secretary

:- .... ,':.~

...

"._"

.-.