DEPARTMENT ORDER NO, 202 To Repub... of the Philippines DEPARTMENT OF TRANSPORTATION O12 ALL OFFICIALS AND EMPLOYEES ALL PROJECT MANAGEMENT OFFICES/UNITS DOTr-CO, MRT-3, CAR and CARAGA SECTORAL OFFICES AND ATTACHED AGENCIES This Department Subject GUIDELINES FOR HIRING PERSONNEL UNDER Date CONTRACT OF SERVICE/JOB ORDER 17 May 2017 I. Mm, RATIONALE In recognition of the need to augment the Department of Transportation's manpower by the way of outsourcing personnel services in the exigency of the service, there is a need for a set of established guidelines on hiring Job Order (JO) and Contract of Service (COS) personne! in accordance with Department of Budget and Management (DBM), Civil Service Commission (CSC), and Commission on Audit (COA) rules and regulations, and other applicable laws. COVERAGE All personnel hired through JO and COS in the DOTr-Central Office, its Project Management Offices/Project implementation Units, MRT-3, CAR and Caraga Regional Offices, Sectoral Offices and Attached Agencies including their regional offices. DEFINITIONS 4. Contract of Service (COS) - refers to engagement of services of a person, private firm, NGO, or international organization to undertake a specific work of job requiring special or technical skills and expertise not available in the agency to be accomplished within a specific period. 2, Job Order (JO) ~ refers to the hiring of a worker for piece of work or intermittent job of short duration not exceeding six (6) months. The piece of work or job to be performed requires special or technical skills not available in the agency and the same is to be accomplishedVv. under the worker's own responsibility and with minimum supervision by the hiring agency. it will be paid on a daily or hourly basis. NATURE OF RELATIONSHIP There shail exist no_employer-employee relationship between the hiring agency and the person hired. The person engaged performs or accomplishes the specific work or job under the person's own responsibility and with minimum supervision by the hiring agency. PROVISIONS IN THE JOB ORDER OR CONTRACT OF SERVICES A. General Provisions ‘The following provisions must be stipulated in the contracts of both the JO or COS personnel: 1. That the services cannot be performed by a regular personnel, unless necessary in the exigency of the service; 2. That the person to be hired signified intent which was considered by the hiring agency; 3. That the person to be hired possesses the education, experience and skills or expertise required to perform the job; 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 shall perform functions of a specific position for a specific period of time to be indicated in the contract; 6. That the person to be hired may be allowed to travel locally if such travel is required in the performance and/or completion of official duties (such as conducting site visits and/or stakeholder consultations, or attending/facilitating meetings with relevant agencies, institutions or parties, or attending to any matter, whether in or outside Metro Manila as may be required by the Department or as may be necessary) and is stipulated in the Contract. Foreign travels, however, shall not be allowed. 7. That the person to be hired is not entitled to benefits enjoyed by the government employees such as PERA, ACA, RATA and other benefits such as mid-year bonus, productivity incentive, Christmas bonus and cash gifts pursuant to existing CSC, DBM and COA rules and regulations on the matter; 2.0. Gutitnes for ng Persons Unser Contact Servieo® Ore Pepe 2a 108. That the person to be hired may be allowed reimbursements, such as per diem, air fare, and terminal fee when local travel is necessary in the performance and/or completion of official duties (See Item 6 on this page), subject to accounting and auditing rules and regulations; 9. That the person to be hired shall not be entitled to honoraria and shall not be made to serve in the Bids and Awards Committee (BAC) and/or in any committee/body in any capacity; 10, That the person to be hired shal! not be entitled to both local and foreign training programs, seminars, conferences, and other similar gatherings that are facilitated, conducted, and/or sponsored by the Department and its agencies; 1L That the services to be rendered shail not be credited as government service and that the JOs/COS are not covered by the Civil Service Commission (CSC) rules and regulations but covered by the Commission on Audit (COA) rules and regulations; and 12. That there exists no employer-employee relationship between the hiring agency and the person hired. B, Specific Provisions In addition to the foregoing provisions, the following must be specifically stipulated in the contracts of either the JO or COS personnel: 1. For Job Order Personnel a. That the person to be hired has not reached the compulsory retirement age of sixty-five (65) years; b, That the personnel shall strictly observe the prevailing core working hours and shail render a full-time 8-hour service during weekdays and, if required, may render service on Saturdays, Sundays and holidays, subject to the approval of the Project Director/ Manage c. 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 percent (20%) of the hiring rate of the particular salary grade inclusive of taxes, subject to accounting and auditing rules and regulations; ‘2.0. re Guides fe Hing Pesonnel Under Contato Sevietob Oner Page 30402. For Contract of Service (COS) Personnel a. That the personnel shall receive a fixed rate based on the evaluation of qualifications as against educational attainment, relevant work experience, relevant training programs attended, and the extent of functions being performed; b. That the personnel shall strictly observe the prevailing core working hours and shall render a full-time 8-hour service during weekdays and, if required, may render service on Saturdays, Sundays and holidays, subject to the approval of the supervisor-official concerned; c. That the personnel may engage in other business activities not related to transportation. Nothing in the agreement shall be deemed or interpreted to constitute the personnel as a partner, agent or employee of the Department of Transportation; Vi. LIMITATIONS AND PROHIBITIONS 1. Only the Secretary, Undersecretaries and Assistant Secretaries are allowed to hire COS personnel depending on the needs of their respective offices. 2. JO, COS and other non-career personnel (contractuals, consultants and others holding non-career positions) shall not be designated or allowed to exercise control or supervision over regular and career personnel, 3. The following shall be prohibited from being issued JO or COS: ‘Those who have been previously dismissed from the service due to commission of an administrative offense; b. Those who are covered under the rules of nepotism; c Those who are hired to perform functions pertaining to vacant regular plantilla positions or those functions which are declared redundant or no longer relevant under an approved rationalization /reorganization plan; d. Those who have reached the compulsory retirement age of sixty-five (65) years (applies only to the Job Order personnel); and .. re Guideines fr Hing Personnel Unser Contactof Sericeliob Ortar Page sot 10vil. fe, Those who have been found to have used prohibited drugs and/or have violated RA 9165 (Comprehensive Dangerous Drugs Act of 2002), CSC Resolution No. 1700653, CSC MC No. 13, s. 2017, and Department Order No. 2016-021 (Drug-Free Workplace Program). PROCEDURES IN HIRING ‘The following shall be observed in the hiring of personnel under the Job Order scheme or Contract of Service: JOB ORDER PERSONNEL 1. The concerned unit heads shall propose and/or submit to the Secretary or his duly designated representatives (Sectoral Undersecretaries concerned), for approval, the organizational structures and staffing patterns of the project offices where the hiring of {0 personnel will be needed. 2, Based on the approved organizational structure and staffing pattern, the concerned unit heads shall request their respective Sectoral Undersecretaries for an authority to hire personnel. The request must be supported by a justification for hiring for each of the positions, the statement of functions to be performed, the fund source, and the Work Program of the concerned office reflecting the hiring of personnel for a specific or a particular program or activity. 3. Upon approval by the Sectoral Undersecretaries concerned, the concerned unit heads may start searching for qualified applicants. Qualified applicants may also come from active files to be considered for the position including those recommended by the unit heads. 4, Initial screening of applicants shall be conducted by the concerned unit heads or end-users, including interviews when necessary. 5. Interview of applicants in project sites, where appropriate, shall be done by the concerned Heads of the Project Management Offices; 6. The initial screening documents and applicants’ credentials shail be endorsed to the Personnel Division by the unit heads. Upon receipt thereof, the Personnel Department/Division shall further evaluate the applicants using the Qualification Standards, performance evaluation reports (in case of renewal), and other appropriate selection instruments to ensure fitness and competency in the position applied for. The Personnel Department/Division may also 1.0. re Guides or Hting Persone! Under Contact of Servicadob Orcer Page sot 0require the submission of the following documents as bases for evaluation: a. From the concerned units/offices - approved documents, such as the request for hiring, organizational structure, staffing pattern, work program, fund source, job description/statement of functions, and other pertinent documents; b. From the applicants - original or certified true copies of the following credentials as applicabie: ‘Transcript of Records, Diploma, Bar/Board examination results, professional licenses, Certificates of Employment from the HR units of their previous employers, Certificates of Training Completion, and the like; The Personnel Division shall send back to the concerned units/offices its evaluation findings, with recommendations as to who among the applicants will be hired/renewed; 8. The concerned units/offices shall prepare the Job Order Contract to be executed by and between the Area Manager/Project Manager/Director concerned, as the authorized contracting official or First Party, and the prospective personnel as the Second Party, with the Concerned Director/Assistant Secretary as the approving official. 9. A Certification of Availability of Funds (CAF) and a duly signed Modified Obligation Request and Status (MORS) form must support the contracts. 10. The prospective personnel/Second Party shall be required to undergo physical/medical examination and drug test by a government medical officer to ensure fitness to the job and shall be required to submit NBI Clearance and Tax Identification Number (TIN). 11. Only when the contract is signed by the appointing authority can the JO personnel report for work and assume the position, B. CONTRACT OF SERVICE PERSONNEL 1. The end-user (Undersecretary/Assistant Secretary) submits a request to the Secretary or his duly designated representative for approval for the hiring of COS personnel by establishing/identifying the need of the office for such hiring including the qualification standards for hiring (Education, ‘Training, Work Experience, Expertise required), the functions 0.0. Guldins or Hig Parsomel Under Contact of Service! Order age of 10vill. (obligations) to be performed, the actual deliverables, the specific duration of the required services, and other considerations. Upon receipt of the approval to hire, the end-user searches for qualified applicants and conducts initial screening and interview. 3, After which, the end-user endorses the following documents to the Personnel Division for evaluation: a) the approval by the Secretary or his authorized representative; b) the qualification standards for the position (education, training, experience, and expertise requirements); c) the name of the recommendee and personal qualifications; d) duration or period of contract; e) proposed monthly rate, etc.; and f) functions and deliverables. 4, The Personnel Division requests for funds earmarking from the Finance and Management Service (FMS). 5. While waiting for the release of funds earmarking, the Personnel Division evaluates the qualifications of the proposed hiree using the approved qualification standards. The Personnel Division may require from the proposed hiree the submission of the additional documents as bases for evaluation. 6. Once the proposed hiree is determined to be qualified, the Personnel Division prepares the Contract of Service and routes the same to the contracting and approving parties concerned. 7. Only when the contract is signed by the appointing authority can the COS personnel report for work and assume the position. ATTENDANCE MONITORING AND PROCESSING OF PAYMENT FOR SERVICES RENDERED 1. The JO and COS personnel may differ in the way their attendance is monitored by virtue of the nature of services they render; however, the remuneration of their services shall be based on the agreed compensation between the personnel concerned and the contracting and approving authorities, 2. The JO personnel shall report to work on the prescribed work hours in order to perform the assigned tasks efficiently and effectively, and shall submit duly signed Daily Time Record (DTR), together with the Accomplishment Report, to support the claim for payment of services based on the prescribed submission schedule. Any absences, tardiness and under time incurred shall be deducted against the salary based on the number of working days/hours as per schedule agreed upon. 1.0. re Guidlines for Hing Personnel Under Contacto Servie/4o Oraer Page rot 103. On the other hand, dhe COS personnel shall submit an Accomplishment Report, together with Certificates of Services Rendered and Actual Deliverables with proofs of accomplishment as attachments, and a copy of certified true copy of contract for every month of salary being claimed for payment. Except for the contract, all documents shall be certified correct by the Contracting Party or the Undersecretary/Assistant Secretary where the personnel reports. 4, The Comptrollership Service, the Finance and Management Service, and the signatories to the Disbursement Voucher and the MORS shail process payment of remuneration of the JO/COS personnel within five (5) working days upon receipt of all documentary requirements. 5. The remuneration shall be uploaded to the J0/COS personnel’s respective Land Bank of the Philippines (LBP) accounts on the 5 day of the processing period. 6. To expedite processing of compensation/remuneration of JO and COS personnel, the following timelines shall be strictly observed: a, JOB ORDER PERSONNEL 1. Personnel Division to release correct Daily Time Records (DTRs) to all personnel a day after the 15t and 30%/31s of the month; and 2. Immediate supervisors to sign DTRs and Accomplishment Reports (15% and 30/31 of the month) and submit the same to the Treasury Division within five (5) working days upon receipt of the same, together with other documentary requirements. Failure to submit said requirements to the Treasury Division within the 5-day lead time would mean non-inclusion in the payroll preparation and payment of salary shall be treated ona per individual basis. b. CONTRACT OF SERVICE PERSONNEL 1. Immediate supervisors of COS personnel shall sign and submit to the Administrative Service, through the Personnel Division, the Certification as to Services Rendered, List of Monthly Accomplishments and other documentary requirements within five (5) working days at the end of the outgoing month; and 2.0. re Guidelines ‘or rng Personne! Under Contact of Servicio Ord Pagan ct 302. Administrative Service to officially submit all requirements for salary/compensation claim to the Treasury Division for preparation of Disbursement Voucher and MORS. IX. RENEWAL AND TERMINATION OF JOB ORDER/CONTRACT OF SERVICE 1, The JO contract shail be for a period of six (6) months within a calendar year which may be renewed, if warranted. In contrast, the COS contract may be for one (1) month, three (3) months, or a maximum of 6 months within a calendar year depending on the nature and extent of functions and the required deliverables. 2. In the case of renewal of JO, the personnel's performance rating of at least Very Satisfactory (VS) for the last rating period as reflected in the Individual Performance Commitment Review (IPCR) form pursuant to the Strategic Performance Management System (SPMS) shall be attached to support the recommendation for renewal. 3, The JO or COS may be terminated at any time within the contract duration on the following grounds: () Lack of fund; (ii) Compietion or prolonged suspension of projects; (iii) Failure to deliver the outputs and deliverables within the specified period as required in the contract (for COS personnel only); (iv) Failure to perform any other obligations under the contract; (v) Gross misconduct; (vi) Engaging in unlawful deeds and misbehaviors before or during the implementation of the contract; (vii) Repeated violation of the terms of the JO/COS despite the issuance of at least three (3) written warnings covering the same offense; and (viii) Any instance of finding of prohibited drug use and/or violation of the provisions of the drug-free workplace policy. 4, Upon the termination of contract, the J0/COS personnel shall automatically turn over all assignments, accountabilities, and/or documents/records in his/her custody to the Contracting Party or to the office concerned as a requirement for the release of the last salary. X. OTHER PROVISIONS 1. There shall be no other agreements or understanding between the parties relating to other subject matters except those stipulated in 2.0 re GanSenas for Heng Personal Under Contact of Senacetico Orter Page sot 10the contract. No change or modification in the contract shall be valid unless the same is in writing and signed by the parties; and For JO personnel, a request to upgrade existing position may only be considered if a. ahigher position is available; b. the personal and professional qualifications sati requirements of the higher position; the personnel has already gained knowledge and skills in the job {as attested by immediate supervisor); and d. the personnel has been holding the present position for at least one (1) year with consistent VS performance ratings as evidenced by 2 IPCR forms. the However, such upgrading shall be done sparingly and only in the exigency of the service XI. FUNDING Payment for services rendered by these personnel shall be charged against the engineering and administrative overhead cost of construction management of a particular infrastructure project and/or from other sources to which these personnel are assigned, pursuant to the Special Provision of the DOTr Budget as embodied in the General Appropriations Act (GAA). XI. REPEALING CLAUSE All previous issuances that are inconsistent herewith, except pertinent provisions of Department Order No. 2006-15 dated 08 September 2006 (Policy Guidelines on Contracts of Services/job Orders) and Office Order No, 2006-31 dated 24 April 2006 (Guidelines in the Hiring of Consultants/ Technical Assistants and the Renewal of Their Contracts) are hereby repealed, superseded, or amended accordingly. XU EEFECTIVITY This order shall take effect immediately. ‘HUR Py TUGADE De y 9 a ae os ®t 1.0 re Guidelines for Hiking Parsonnel Under Cantactt Sanosicb Order Page tDer 10