RMC No. 56-2017: Publishes the full text of Joint Circular No. 1 issued by CSC, COA Chairperson and DBM Secretary entitled “Rules and Regulations Governing Contract of Services and Job Order Workers in the Government”

Key points

1. Coverage. The Joint Circular covers National Government Agencies, GOCCs with original charters, State Universities and Colleges, and Constitutional bodies that use Contract of Service and Job Order workers.
2. Institutional contract of service. This is for lump sum work such as janitorial, security, consultancy and other support functions, for a maximum of one (1) year under RA No. 9184. Workers remain employees of the contractor, who is responsible for their discipline and for compensation and benefits under labor law.
3. Individual contract of service. The term is a maximum of one year, renewable at the option of the Head of the procuring entity but not beyond the Head’s own term. It is limited to consultants, learning service providers and technical experts for special projects not part of regular functions, or where expertise is unavailable or direct undertaking is impractical or more expensive.
4. Job order workers. They are paid by agreed contract amount for the piece of work or by daily wage. Hiring is limited to emergency or intermittent work, such as clearing debris after disasters, and manual trades not part of regular functions.
5. Restrictions and pay. These workers may not perform functions in the job descriptions of regular employees or be designated to supervise regular employees. They are not covered by Civil Service law, are not creditable as government service, and do not get leave, PERA, RATA and thirteenth month pay. Contract of service individuals get prevailing market rates and may enroll in SSS, PhilHealth and PAG-IBIG as self-employed members. Job order workers get the wage of comparable government positions plus a premium of up to 20%.
6. Transition and priority. Agencies may renew existing individual contracts until December 31, 2018, after which hiring follows the Joint Circular. Existing qualified workers get priority in hiring by contractors where practicable, and in appointment to vacant agency positions if they meet eligibility and qualification requirements.

Who is affected

• National Government Agencies
• GOCCs with original charters
• State Universities and Colleges
• Constitutional bodies
• Contract of Service and Job Order workers

Deadlines and effectivity

• Institutional contract of service: maximum of one (1) year
• Existing individual contracts may be renewed until December 31, 2018