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DEPARTMENT ORDER NO. 2012-10

POLICY GUIDELINES FOR THE HIRING OF PERSONNEL UNDERCONTRACT OF SERVICES/JOB ORDER

In recognition of the need to augment the Department's manpower complement by wayof outsourcing personnel services in the exigency of the service, a clear definition of thevarious conditions whereby employment of such job order personnel may be availed ofis imperative so as to put the practice in its proper perspective given the scarceresources of the government, in accordance with OP Memo Circular No.1, s. 2010 andits implementing guidelines; the pertinent DBM and Civil Service rules and regulationsand the usual government rules and regulations:

A. Jobs/Functions to be Directly Outsourced:

In general, hiring of personnel under individual contract of services/job order maybeallowed for the following jobs/functions:

1. For jobs that require special or technical skills and the same is notavailable in the agency, to be accomplished within a specific period notexceeding one (1) year, such as the hiring of consultants subject to RepublicAct 9184 and personnel engaged to perform work for special projects;

2. For piece work or an intermittent job of short duration not exceeding six (6)months and pay is on a daily basis, and the job to be performed is to beaccomplished under the worker's own responsibility and with minimumsupervision by the hiring agency;

2. For jobs where the functions to be performed are clerical or administrativein nature, or where the work is performed by the regular personnel but suchservices are needed in the exigency of the service and it is not feasible forthe agency to hire said services under a casual or contractual appointment.

3. For functions performed by driver/chauffeur and utility worker; or

4. For jobs requiring frontline and vital services in the Department, as maybe necessary.

B. Prohibitions:

1. Those who have been previously dismissed from the service due to commissionof an administrative offense;

2. Those who are covered under the rules of nepotism;

3. Those who are being hired to perform functions pertaining to vacant regularplantilla positions or those functions which were declared redundant or no longerrelevant under the approved Rationalization Plan; and

4. Those who have reached the compulsory retirement age of sixty-five (65), exceptthat of consultancy services.

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C. Provisions in the Contract of Services or Job Order:

The following provisions must be stipulated in the Contract of Services or Job Order:

1. That the services cannot be performed by a regular personnel; unlessnecessary in the exigency of the service.

2. That the person to be hired signified intent which was considered by the hiringagency;

3. The person to be hired possesses the education, experience and skills requiredto perform the job required;

4. That the person to be hired has not been previously dismissed from the serviceby reason of an administrative case; or

5. That the person to be hired has not reached the compulsory retirement age ofsixty-five (65) years;

6. That the person to be hired shall perform functions of a specific position for aspecific period of time (to be specified/indicated);

7. That the compensation of the person to be hired corresponds to the salarygrade of the position/job to be contracted out on a monthly basis, notexceeding twenty (20%) of the hiring rate of the particular salary gradeinclusive of taxes, subject to accounting and auditing rules and regulations;

(Note: For purposes of consistency and cost-effectiveness and depending onthe availability of funds, drivers/chauffeurs of the officials shall be paid thehiring rate for SG-4, SG-5 or SG-6 plus twenty percent (20%); thecompensation for other positions to be contracted out shall be based on thehiring rate of the particular salary grade plus five percent (5%).

8. That the person to be hired is not entitled to benefits enjoyed by governmentemployees such as PERA, ACA, RATA, and other benefits such as mid-yearbonus, productivity incentive, Christmas bonus, and cash gifts.;

9. That the person to be hired shall be entitled to year-end bonus equivalent toone (1) month compensation on a pro-rated basis following the practice underPhilippine Labor Laws;

10. That the person to be hired has no relationship within the third degree ofconsaguinity or affinity with the contracting officer and the appointing authority;

11. That the services to be rendered shall not be credited as government serviceand that the contract of the service and job order are not covered by the CivilService Commission rules and regulations but covered by COA rules andregulations;

12. That there exists no employer-employee relationship between the hiringagency and the person hired;

D. Procedures in Hiring:

1. The concerned unit head with endorsement from the Undersecretary /concerned shall submit to the Secretary a request for authority to hirepersonnel under contract of service/job order. The request must be supportedby a justification for hiring and the statement of functions to be performed, aswell as, the Annual Work Program of the concerned office reflecting the hiringof job order or contract of service personnel for a specific or a particularprogram or activity;

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2. Human Resource Development (HRD) must be furnished with a copy of therequest to be able to start searching for qualified applicants. Qualifiedapplicants from the active files to be considered for the position including thosewho are recommended by the end-user/s, shall undergo basic qualifying/psychological exams;

3. Preliminary interview of the applicant by the HRD and in-depth interview by theend-user shall be conducted. Interview of applicants in Regional Offices shallbe done by the concerned Regional Directors;

4. Once the Secretary approves the recommendations submitted by the HRD/RO,a Contract of Services shall be prepared by the HRD (Head Office or Regional /Office). The prospective appointee shall be required to accomplish thePersonal Data Sheet Form in triplicate copies;

5. A certification of Availability of Funds (CAF)· and a duly signed Obligation /Request (OBR) must support the contract;

6. Said contract shall be endorsed to Legal Service for review prior to the /'signature of the appointing authority;

7. The prospective appointee shall be requested to undergo physical and medicalexaminations by a government medical officer to ensure fitness to the job andshall be required to submit the following documents: NBI clearance, TaxIdentification Number (TIN), if any, and Pag-ibig member's Data Form (MDF), ifany;

8. Once the contract is signed by the appointing authority, the job-order orcontract of service personnel may already assume the position.

E. Attendance Monitoring and Payment of Salaries:

1) A personnel hired on a contract of service/job order shall be required to reportto the office observing a work schedule as may be required by his/herimmediate supervisor to be able to perform his/her assigned tasks efficientlyand effectively. A written advice on the chosen schedule, duly signed by theimmediate supervisor and acknowledged by the individual concerned must befurnished the HRD or the respective Administrative Officer for the RegionalOffices for timekeeping purposes;

2) He/she shall be required to submit a duly-signed Daily Time Record (DTR)together with the Accomplishment Report and Certification of ServicesRendered to support the claim for payment of salaries covering the period ofservices rendered. Payment of salaries shall be done every 15th and 31st of themonth.

3) DTRs and supporting documents shall be submitted to the HRD after the 15th

day of the month for the period 1 to 15 days and the first working day of theensuing month for the period covering 16 to 31 of the preceding month.Processing of the salaries shall be done through a general payroll. Individualvouchers shall be done for initial and last salary; and

4) Any absences, tardiness and under time incurred shall be deducted againsthislher salary based on the number of working days/hours as per scheduleagreed upon;

F. Other Compensation:

1) It is understood that the contracted individual is expected to deliver the requiredservices/obligation as specified under the contract within the period covered.

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As for drivers of the officials and staff drivers, they shall be entitled to mealallowance amounting to PiS0 per day, after rendering at least three (3) hoursof service exceeding the eight (8) hour service during weekdays; on Saturdays,Sundays and holidays, they shall be entitled to the full amount of Pi50.00,regardless of the number of hours of service rendered;

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2) Following the practice under Philippine Labor laws, the job-order or contract ofservice employee shall be paid year-end bonus equivalent to one (1) monthcompensation pro-rated in accordance with existing government guidelineswhich is determined on a year to year basis, subject to availability of funds;

3) Contract of service or job-order personnel may be allowed to go on official localtravel for the purpose of (a) undertaking official mission/tasks which cannot beperformed by/or assigned to any other regular/permanent officlal and/oremployee of the Department, and/or (b) performing tasks/activities necessaryto be able to fulfil the obligations as contained in his/her contract of service. Inboth cases, the travel shall involve the minimum expenditure and is expected tobring immediate benefit to the Department;

4) The purpose of official local travel as herein provided shall be clearly andspecifically stated in the approved travel request/order which shall likewisecontain the corresponding entitlements, duly supported by an approveditinerary of travel to provide basis for payment of travel expenses (meals,hotel/lodging and incidental expenses), on reimbursement basis, based onthe rates provided under the provisions for official local travel as prescribed byCOA Circular No. 96-004 dated April 19, 1995 and Executive Order No. 298dated March 23, 2004.

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5) Said reimbursement of actual travel expenses, not to exceed the prescribedrates, including land transportation fares, shall be subject to the submission ofreceipts, bus tickets, and a Certificate of Travel Completed (Appendix B),together with other evidences/proof of travel completed including a TerminalReport. Procurement of air tickets, for such official travels shall be made thrucanvass to establish the lowest cost offered thru send-bill arrangement with theairline company/travel agency;

6) He/she may be allowed to attend in-house and/or outside seminars/trainingprograms of short duration (maximum of five (5) days) related to/or inconnection with his/her task/functions, as recommended by his immediatesupervisor and approved by the Undersecretary concerned, to enable him/herto be more efficient and effective in the rendition of the contracted service,provided that such attendance shall not hinder the operation of the workplaceto which he/she is assigned. In case where the numbers of slots/participantsare limited, priority, however, shall be given to regular employees of theDepartment.

G. Renewal of Contract of Service:

1) A performance evaluation instrument shall be established by the HRD incoordination with the Management Division which shall serve as basis for therenewal of the contracts of the concerned personnel;

2) The performance evaluation form shall be accomplished by the concerned unit Ihead and must be submitted with the corresponding recommendations to HRDone month prior to the termination of the contract; .

3) Result of the performance evaluation shall be attached to the request forrenewal of the contract to the appointing authority thru the Undersecretary forAdministration.

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4) Renewal of contract of service/job order shall be subject to availability of fundsas certified by the Department Chief Accountant.

.This Order shall take effect immediately.

11 April 20 12

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