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DEPARTMENT ORDER NO. 2012-10 POLICY GUIDELINES FOR THE HIRING OF PERSONNEL UNDER CONTRACT OF SERVICES/JOB ORDER
In recognition of the need to augment the Department's manpower complement by way of outsourcing personnel services in the exigency of the service, a clear definition of the various conditions whereby employment of such job order personnel may be availed of is imperative so as to put the practice in its proper perspective given the scarce resources of the government, in accordance with OP Memo Circular No.1, s. 2010 and its implementing guidelines; the pertinent DBM and Civil Service rules and regulations and the usual government rules and regulations:

A. Jobs/Functions to be Directly Outsourced:


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

1. For jobs that require special or technical skills and the same is not available in the agency, to be accomplished within a specific period not exceeding one (1) year, such as the hiring of consultants subject to Republic Act 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 be accomplished under the worker's own responsibility and with minimum supervision by the hiring agency; 2. For jobs where the functions to be performed are clerical or administrative in nature, or where the work is performed by the regular personnel but such services are needed in the exigency of the service and it is not feasible for the 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 may be necessary. B. Prohibitions: 1. Those who have been previously dismissed from the service due to commission of 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 regular plantilla positions or those functions which were declared redundant or no longer relevant under the approved Rationalization Plan; and 4. Those who have reached the compulsory retirement age of sixty-five (65), except that 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 necessary in the exigency of the service. by a regular personnel; unless

2. That the person to be hired signified intent which was considered by the hiring agency; 3. The person to be hired possesses the education, experience and skills required to perform the job required; 4. That the person to be hired has not been previously dismissed from the service by reason of an administrative case; or 5. That the person to be hired has not reached the compulsory retirement age of sixty-five (65) years; 6. That the person to be hired shall perform functions of a specific position for a specific period of time (to be specified/indicated); 7. That the compensation of the person to be hired corresponds to the salary grade of the position/job to be contracted out on a monthly basis, not exceeding twenty (20%) of the hiring rate of the particular salary grade inclusive of taxes, subject to accounting and auditing rules and regulations; (Note: For purposes of consistency and cost-effectiveness and depending the availability of funds, drivers/chauffeurs of the officials shall be paid hiring rate for SG-4, SG-5 or SG-6 plus twenty percent (20%); compensation for other positions to be contracted out shall be based on hiring rate of the particular salary grade plus five percent (5%). on the the the

8. That the person to be hired is not entitled to benefits enjoyed by government employees such as PERA, ACA, RATA, and other benefits such as mid-year bonus, productivity incentive, Christmas bonus, and cash gifts.; 9. That the person to be hired shall be entitled to year-end bonus equivalent to one (1) month compensation on a pro-rated basis following the practice under Philippine Labor Laws; 10. That the person to be hired has no relationship within the third degree of consaguinity or affinity with the contracting officer and the appointing authority; 11 . That the services to be rendered shall not be credited as government service and that the contract of the service and job order are not covered by the Civil Service Commission rules and regulations but covered by COA rules and regulations; 12. That there exists no employer-employee agency and the person hired; relationship between the hiring

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 hire personnel under contract of service/job order. The request must be supported by a justification for hiring and the statement of functions to be performed, as well as, the Annual Work Program of the concerned office reflecting the hiring of job order or contract of service personnel for a specific or a particular program or activity; 2 /

2. Human Resource Development (HRD) must be furnished with a copy of the request to be able to start searching for qualified applicants. Qualified applicants from the active files to be considered for the position including those who 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 the end-user shall be conducted. Interview of applicants in Regional Offices shall be 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 the Personal 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 medical examinations by a government medical officer to ensure fitness to the job and shall be required to submit the following documents: NBI clearance, Tax Identification Number (TIN), if any, and Pag-ibig member's Data Form (MDF), if any; 8. Once the contract is signed by the appointing authority, the job-order contract of service personnel may already assume the position. or

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E. Attendance Monitoring and Payment of Salaries:


1) A personnel hired on a contract of service/job order shall be required to report to the office observing a work schedule as may be required by his/her immediate supervisor to be able to perform his/her assigned tasks efficiently and effectively. A written advice on the chosen schedule, duly signed by the immediate supervisor and acknowledged by the individual concerned must be furnished the HRD or the respective Administrative Officer for the Regional Offices 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 Services Rendered to support the claim for payment of salaries covering the period of services rendered. Payment of salaries shall be done every 15th and 31 st of the month. 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 the ensuing month for the period covering 16 to 31 of the preceding month. Processing of the salaries shall be done through a general payroll. Individual vouchers shall be done for initial and last salary; and 4) Any absences, tardiness and under time incurred shall be deducted against hislher salary based on the number of working days/hours as per schedule agreed upon;

F. Other Compensation:
1) It is understood that the contracted individual is expected to deliver the required services/obligation as specified under the contract within the period covered. 3

As for drivers of the officials and staff drivers, they shall be entitled to meal allowance amounting to PiS0 per day, after rendering at least three (3) hours of 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; 2) Following the practice under Philippine Labor laws, the job-order or contract of service employee shall be paid year-end bonus equivalent to one (1) month compensation pro-rated in accordance with existing government guidelines which 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 local travel for the purpose of (a) undertaking official mission/tasks which cannot be performed by/or assigned to any other regular/permanent officlal and/or employee of the Department, and/or (b) performing tasks/activities necessary to be able to fulfil the obligations as contained in his/her contract of service. In both cases, the travel shall involve the minimum expenditure and is expected to bring immediate benefit to the Department; 4) The purpose of official local travel as herein provided shall be clearly and specifically stated in the approved travel request/order which shall likewise contain the corresponding entitlements, duly supported by an approved itinerary of travel to provide basis for payment of travel expenses (meals, hotel/lodging and incidental expenses), on reimbursement basis, based on the rates provided under the provisions for official local travel as prescribed by COA Circular No. 96-004 dated April 19, 1995 and Executive Order No. 298 dated March 23, 2004. 5) Said reimbursement of actual travel expenses, not to exceed the prescribed rates, including land transportation fares, shall be subject to the submission of receipts, bus tickets, and a Certificate of Travel Completed (Appendix B), together with other evidences/proof of travel completed including a Terminal Report. Procurement of air tickets, for such official travels shall be made thru canvass to establish the lowest cost offered thru send-bill arrangement with the airline company/travel agency; 6) He/she may be allowed to attend in-house and/or outside seminars/training programs of short duration (maximum of five (5) days) related to/or in connection with his/her task/functions, as recommended by his immediate supervisor and approved by the Undersecretary concerned, to enable him/her to be more efficient and effective in the rendition of the contracted service, provided that such attendance shall not hinder the operation of the workplace to which he/she is assigned. In case where the numbers of slots/participants are limited, priority, however, shall be given to regular employees of the Department.

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G. Renewal of Contract of Service:


1) A performance evaluation instrument shall be established by the HRD in coordination with the Management Division which shall serve as basis for the renewal of the contracts of the concerned personnel; 2) The performance evaluation form shall be accomplished by the concerned unit head and must be submitted with the corresponding recommendations to HRD one month prior to the termination of the contract; . 3) Result of the performance evaluation shall be attached to the request for renewal of the contract to the appointing authority thru the Undersecretary for Administration.

4) Renewal of contract of service/job order shall be subject to availability of funds as certified by the Department Chief Accountant. .This Order shall take effect immediately.

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