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COMMISSION ON AUDIT MEMORANDUM NO.

80-229 December 26, 1979

TO : All COA Managers Including the General Counsel, COA Regional Directors;
Ministry, Bureau/Unit, Corporation, Provincial/City Auditors; and All Others
Concerned.

SUBJECT : Joint Memorandum Circular No. 2, s. 1979 of the Civil Service Commission,
Commission on Audit and the Ministry of the Budget

Guidelines on the Hiring of Casual/Emergency Employees, Consultants and


Other Contractual Personnel.

For the information and guidance of all concerned, quoted hereunder is the Joint
Memorandum Circular No. 2, s. 1979 of the Civil Service Commission, Commission on Audit
and Ministry of the Budget:

"Civil Service Commission


Commission on Audit
Ministry of the Budget

Joint Memorandum Circular No. 2, s. 1979

TO : All Heads of Ministries, Bureaus, and Agencies of the National Government,


including Government-owned and Controlled Corporations

SUBJECT : Guidelines on the Hiring of Casual/Emergency Employees Consultants and


other Contractual Personnel

It is observed that there has been a marked increase in the hiring of


casual/emergency, consultants, and other contractual personnel in the ministries, bureaus,
offices and agencies of the government. Under the present fiscal retrenchment policy of the
government, there is a need to regulate and/or control the hiring of such personnel without
impairing completion of vital projects and the delivery of essential services. In view thereof,
the following guidelines are hereby issued for your information and guidance:

1.0 Definition of Terms

As used in this Joint Memorandum Circular , the following terms shall be


construed thus:

1.1 Casual or Emergency Employees

Those who work for a short duration of time, seasonal and intermittent in
nature, the length of which depends upon the needs of the service for which an
appointment is issued and whose re-employment is not certain.
1.2 Contractual Personnel

Those whose employment is in accordance with a contract to undertake a


specific work or project requiring special or technical skills not available in
the employing agency, the contract of service to be accomplished within a
limited period which in no case shall exceed one year, and performs and
accomplishes the specific work or project under his own responsibility
with a minimum of direction and supervision from the hiring agency.
Technical skills means the expertise gained by an individual from an actual
performance or function of a specific piece of work on the basis of relevant
education characterized by specialization or special and practical knowledge of
the subject.

1.3 Consultants

Those personnel who are providing professional consultancy services


requiring highly specialized or technical expertise in the field of special
knowledge or training. Such services are rendered on a part-time or full-time
basis to be performed any time as demanded by the employing agency within
the duration of the project.

2.0 Guidelines on Hiring

In order to reduce to the minimum the hiring of casual or emergency employees,


consultants and other contractual personnel in the government service, the hiring
agency is enjoined to observe strictly the following rules and regulations:

2.1 Until the findings of the Personnel Effectiveness Audit Committee created
under LOI #806 show no necessity thereof, the hiring of casual or emergency
employees, consultants and other contractual personnel shall be allowed in
the following cases:

2.1.1 Where the activity/project/undertaking will be completed at a fixed date,


or where there is no fixed date of completion, prolonged delay in or
non-completion of the activity/project/ undertaking will:

2.1.1.1 Cause financial less or embarrassment to the government or


its instrumentalities; or

2.1.1.2 Negate or render useless the purpose thereof; or

2.1.1.3 Result in losses, damages or impairment to government


programs.

2.1.2 Where the work to be accomplished is very urgent but in utilizing the
regular staff, other functions of the agency will be unduly
prejudiced;
2.1.3 Where the service to be rendered is urgent and of short duration and
the service is to be terminated thereafter, which in no case shall
exceed one year;

2.2 Contractual employment, however, shall be made only under the following or
similar situations:

2.2.1 When the person proposed for contractual employment is an


acknowledged authority in his field of specialization;

2.2.2 Where the position proposed for the person does not belong to the open
career service; and

2.2.3 Where the person proposed for contractual employment is not


employed in other government agencies.

2.3 Hiring shall be in accordance with the limitations provided in Items 3.1 and
4 of Joint Memorandum Circular No. 1, series of 1979.

2.4 Consultants may be allowed not more than two part-time contracts with two
government agencies at any one time. In no case should consultants be
designated OIC(s), Executive Directors or assigned to similar line
supervisory positions wherein they exercise control over career personnel in
the hiring agency.

2.5 Consultants and other contractual personnel shall be paid not more than
120% of the minimum salary of an equivalent position in the National
Compensation Plan, as the aggregate of salaries, fees, honoraria, per
diems and allowances except as may be authorized by the Minister of the
Budget. However, they shall not be entitled to leave benefits.

2.6 The limitation on the hiring of casual/emergency employees, consultants


and other contractual personnel shall not apply to capital outlays.

2.7 Lump-sum appropriations for casual/emergency employees shall be limited to


non-technical positions only.

2.8 Submission of Appointments/Contracts

2.8.1 In the employment of casual or emergency employees, the hiring


agency shall submit to the Civil Service Commission certified true
copies of the appointments of such personnel except from agencies
where expressed authority has been granted by the Commission.

2.8.2 In contractual employment, the hiring agency shall provide all the
requirements set forth in CSC Memorandum Circular No. 11, s. 1979.

2.9 Submission of Position Description Form (PDF) to the Office of Compensation


and Position Classification (OCPC) Consistent with the provisions of LOI No.
29, the determination of the similarity of positions or the equivalent level of
responsibility and the corresponding salary range shall be undertaken by
the Office of Compensation and Position Classification, Ministry of the
Budget. For this purpose, at least three (3) copies of the duly
accomplished PDF prescribed in BC-CSC Form No. 1, together with the
contract or appointment, shall be forwarded to OCPC before the
appointments or employment contracts are processed.

2.10 In all cases, the hiring agency shall provide the following information which
shall be attached to the appointment of every appointee, namely:

2.10.1 a brief description of the activity/project/ program where appointee


may be assigned;

2.10.2 justification by the hiring agency for resorting to casual/emergency


appointment and contractual employment; and

2.10.3 a statement that funds are available and authorized for the hiring
of casual/emergency employees and for contractual personnel.

2.11 In addition to the above, the following information shall be attached to the
employment contracts of consultants and other contractual personnel:

2.11.1 A statement of the work experiences, educational background and


supporting papers, proofs of the expertise of the person
recommended;

2.11.2 A copy of the appointment/certification to show the occupation and


compensation in another agency, private or government, of the
person recommended for contractual appointment where applicable;

2.11.3 The number of hours of service to be rendered full-time or part-time;


and

2.11.4 Period of contractual appointment.

3.0 Submission of Quarterly Reports

The Personnel Officer/Administrative Officer of ministries, bureaus, offices, agencies,


and other entities of the national government concerned shall prepare and submit
to the Civil Service Commission a quarterly report on the employment of
casual/emergency employees, consultants and other contractual personnel in the
prescribed Form herein attached as Annex A and B.

4.0 Limitation on the Application of Funds

The lump sum appropriations provided in the Budget for the payment of skilled and
semi-skilled laborers shall not be used in the payment of salaries of consultants and
other contractual personnel.
5.0 Effectivity

This Memorandum Circular shall take effect immediately.

(SGD.) JACOBO C. CLAVE (SGD.) JAIME C. LAYA


Chairman (CSC) Minister (MB)

(SGD.) FRANCISCO S. TANTUICO, JR.


Chairman (COA)"

For strict compliance.

This Memorandum shall take effect immediately.

(SGD.) FRANCISCO S. TANTUICO, JR.


Acting Chairman