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To provide guidelines for the effective implementation of Administrative Order (AO) No. 100 entitled, “Directing the Suspension of the Hiring of New Personnel for Purposes of Generating the Additional Funds for the Implementation of the 10% Across-the-Board Salary Increase for Fiscal Year 2000” dated 01 December 1999.

2.0       Coverage

2.1       These guidelines shall apply to all positions in all departments and agencies of the Executive Branch including government-owned and/or -controlled corporations (GOCCs) and state universities and colleges (SUCs).

2.2       The Legislative and Judicial Branches of Government, including Local Government Units, are encouraged to adopt these guidelines at their discretion.

3.0       Prohibition and Exemptions

3.1       General Prohibition. The hiring of new personnel whether on a permanent, temporary, substitute, co-terminous, contractual or casual status, is hereby suspended.

“Hiring of new personnel” as used in Section 2 of AO 100 refers to the first-time entry of personnel in the career and non-career service, involving the issuance of an original appointment/contract, or reemployment, whether on a permanent, temporary, substitute, co-terminous, contractual or casual status.

As used in this Circular, the definition of terminologies pertaining to employment status (i.e., permanent, temporary, substitute, co-terminous, contractual, and casual) and nature of appointment (i.e., original, promotion, transfer, reemployment, reappointment, reinstatement, renewal, change of status, demotion, upgrading/reclassification, reassignment, detail, secondment, job rotation and adjustments or movements of personnel involving changes in position title, rank or status) shall be in accordance with CSC Memorandum Circular (MC) No. 40, s. of 1998, as amended by MC 15, s. of 1999.

3.2       Exemptions. The following positions may be filled through the hiring of new personnel:

3.2.1 Positions in agencies with fiscal autonomy as provided for by law;
3.2.2 Key positions;
3.2.3 Teaching positions in schools and educational institutions;
3.2.4 Uniformed positions in the Department of the Interior and Local Government; and
3.2.5 Positions to be filled by personnel currently employed in the Executive Branch, by transfer or promotion.

4.0       Definition of Restriction/Exemptions

In the implementation/application of the restrictions/exemptions covered under Section 2 of AO 100, the following definitions/interpretations are hereby adopted:

However, agencies with fiscal autonomy are enjoined to fund their total Personal Services requirements, inclusive of the 10% salary increase in FY 2000, within the level of funds released to them.

4.2       Key Positions. Key positions refer to the following:

4.2.1 Secretary and other positions of Cabinet rank, the incumbents of which hold their positions at the pleasure of the President;

4.2.2 Undersecretary, Assistant Secretary, Bureau Director, Assistant Bureau Director, Regional Director, Provincial Director, and Chief of Department Service;

4.2.3 Heads of division level-organizational units; and

4.2.4 Other executive/managerial positions of equivalent rank to those in items 4.2.1, 4.2.2 and 4.2.3.

4.3       Teaching Positions. Teaching positions in schools and educational institutions refer to those in DECS-operated schools providing basic education (primary and secondary) and DOST-supervised Philippine Science High Schools.

It is understood that allied teaching and non-teaching positions in the aforesaid institutions are not exempted from the limitations in the filling of vacant positions.

4.4       Uniformed Positions. These are uniformed positions in the following agencies of the DILG:

4.5       Transfer and Promotion. Positions to be filled by personnel who are currently employed in the Executive Branch by transfer or promotion are likewise exempted. Within the context of AO 100, the terms “transfer” and “promotion” shall mean as follows:

4.5.1  “Transfer” refers to the movement of an employee from one position to another which is of equivalent rank, level or salary without break in the service involving the issuance of an appointment. Transfer may be from one department or agency to another, or from one organizational unit to another in the same department or agency.

Any movement from the non-career service to the career service shall not be considered a transfer.

Likewise, for purposes of AO 100, any transfer of personnel from the Legislative and Judicial Branches and from local government units to departments/agencies in the Executive Branch shall not be allowed.

4.5.2       “Promotion” refers to the advancement of an employee from one position to another with an increase in duties and responsibilities as authorized by law, and usually accompanied by an increase in salary. Promotion may be from one department or agency to another or from one organizational unit to another within the same department or agency.

4.6.      Reemployment of Personnel. Appointment of personnel by “reemployment” which is defined as the reappointment of a person who has been previously appointed to a position in the career or non-career service, but was separated therefrom as a result of reduction in force, reorganization, retirement, voluntary resignation or of any non-disciplinary actions such as dropping from the rolls (Section 4, Rule III, CSC MC 40, s. 1998, as amended by MC 15, s. 1999), is not exempted from the suspension in the hiring of new personnel provided under AO 100.

As this presupposes a gap in the service, personnel to be “reemployed” shall be treated as “ new entrants” to the career service from outside the Executive Branch, for purposes of AO 100.

4.7       Other Personnel Actions/Movements. Other personnel actions/movements, i.e., reappointment, reinstatement, renewal, change of status (from temporary to permanent), demotion, upgrading/reclassification, adjustments (change of item number only, salary adjustment, step-increment, and reinstatement to the same position), reassignment, datail, secondment, or job rotation, as defined under Section 4, Rule III of COS MC No. 40, s. 1998, as amended by MC 15, s. 1999. are not covered by restrictions provided under AO 100.

5.0       Non-Release of Funds

Except with respect to the requirements of the Judiciary, Congress of the Philippines, and positions exempted from the above prohibition, no amount shall be released for the purpose of hiring of new personnel.

6.0       Accountability

Heads of departments and agencies and other entities in the Executive Branch shall be accountable for the strict implementation of this Circular.

7.0        Effectivity

This Circular shall take effect immediately.

8.0       For Guidance.

Adopted: 17 Dec. 1999

(SGD.) BENJAMIN E. DIOKNO
Secretary