Additional Guidelines Related to the Implementation of the Rationalization Program Under Executive Order 366

January 5, 2009 BIR MEMORANDUM TO : All Revenue Officials and Employees Concerned SUBJECT : Additional Guidelines Related to the Implementation of the Rationalization Program Under Executive Order 366 For the information and guidance of all concerned, please disseminate in all Bureau Offices the attached copy of DBM Circular Letter No. 2008-12 dated December 12, 2008 signed by Secretary Rolando G. Andaya, Jr. relative to the above-mentioned subject matter. You are enjoined to post the copy of this issuance in your Office Bulletin Board, or in a conspicuous place within your Office, to ensure that it shall be given the most extensive publicity possible. DSITEH (SGD.) CELIA C. KING Deputy Commissioner Resource Management Group ATTACHMENT DBM CIRCULAR LETTER NO. 12-08 December 12, 2008 TO : Heads of Departments and Agencies of the Executive Branch, Including Government-Owned and/or -Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), and All Others Concerned SUBJECT : Additional Guidelines Related to the Implementation 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 filling of vacant regular/permanent/itemized positions by Departments/Agencies/GOCCs/GFIs of the Executive Branch and the hiring of new casuals/contractuals, including personnel on consultancy/emergency/job order basis, while their respective Rationalization Plan has not yet been approved; 1.2 Extend the authority of Department Secretaries/Agency Heads to renew the appointments of personnel on casual/temporary status and the contracts of personnel under contractual/consultancy/emergency/job order basis for a specific period; 1.3 Prohibit the employment of affected personnel who opted to retire/be separated from the service under E.O. 366 in any agency of the Executive Branch, including in GOCCs/GFIs on a regular, contractual or casual status; and 1.4 Provide the guidelines on the hiring of personnel on consultancy/contract of service/job order basis by agencies whose Rationalization Plans have already been approved by the Department of Budget and Management (DBM), as well as the availment of the incentive package by affected personnel who have reached the compulsory retirement age. 2.0 Guidelines Moratorium on the Filling of Positions/Hiring of Personnel 2.1 The moratorium on the filling of regular/permanent/itemized positions, either through original appointment, promotion, transfer or reemployment, and the hiring of new casuals/contractuals, including personnel on consultancy/emergency/job order basis, shall continue to be implemented in all Departments/Agencies/GOCCs/GFIs of the Executive Branch whose Rationalization Plan has not yet been approved by this Department, consistent with Section 7 of Executive Order No. 366 and Section 13.a of its Implementing Rules and Regulations. The temporary suspension shall not apply to teaching positions, medical and allied medical items in hospitals and other medical facilities servicing agency 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. Authority to Renew Appointments/Contracts 2.2 Department Secretaries/Agency Heads shall be allowed to renew the appointments of personnel on casual/temporary status and the contracts of personnel under contractual/consultancy/emergency/job order basis for the period that the Department/Agency is undergoing rationalization activities, but not to go beyond one (1) month after the approval of the agency's Rationalization 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 timeframe, subject to pertinent budgetary, civil service, accounting and auditing rules and regulations and the following conditions: a. For National Government Agencies, the funds appropriated for the purpose are sufficient and the action would not entail additional budgetary release or realignment of non-Personal Services (PS) funds to PS; b. In the case of GOCCs, funds for the purpose shall be charged against internally-generated funds/project funds included in the Board-approved Corporate Operating Budget; c. The maximum number of personnel whose contracts/appointments would be renewed shall not exceed the actual employees at the start of the Department/Agency's rationalization efforts, as adjusted by the DBM-authorized hiring of new/additional personnel; and d. There shall be no new hiring and/or replacement of resigned/retired separated/terminated/regularized staff. 2.3 The renewal of appointments/contracts of personnel for projects with DBM-approved staffing pattern shall be limited to the existing number of authorized positions and to the set timeframe for hiring. Policy on Rehiring of Retired/Separated Personnel 2.4 Government personnel who opted to retire/be separated from the service as a result of the rationalization efforts of their Department/Agency shall not be appointed nor hired as casuals or contractuals in any agency of the Executive Branch, including in GOCCs/GFIs within a period of five (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. 2.5 The provision of consultancy services by government personnel who voluntarily retired/separated shall be governed by Section 7 of R.A. 6713 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. Policy on Hiring of Personnel on Contract of Service/Job Order Basis for Agencies with Approved Rationalization Plan 2.6 The outsourcing of certain services (e.g., utility, building and grounds maintenance, messengerial, security and transportation/mobility) by Departments/Agencies/GOCCs/GFIs with approved Plans shall be consistent 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. Policy on Affected Personnel Who Have Reached the Compulsory 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 Responsibility Clause It shall be the responsibility of the Department Secretaries and equivalent Agency Heads to strictly implement the provisions of this Circular Letter. In case of any violation of the provisions of E.O. 366, its Implementing Rules and Regulations and this Circular Letter, the official authorizing such action shall be held responsible for whatever expenses the government incurred for not strictly following the guidelines set forth. 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 publication in a newspaper of general circulation. (SGD.) ROLANDO G. ANDAYA, JR. Secretary