Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No.6406

Introduced by
REP. RAYMOND DEMOCRITO C. MENDOZA
Trade Union Congress Party (TUCP PARTYLIST)

EXPLANATORY NOTE

Data from the Department of Budget and Management (DBM) and the Civil Service
Commission (CSC) show that there are around 500,000 workers who are deployed
in various national government agencies (NGAs), state universities and colleges
(SUCs) and local government units (LGUs) who have no security of tenure and
benefits due to regular employees. They are working in the public service as
contractuals under “Job Order (JO)", “Contract of Service (COS)", and
“Memorandum of Agreement (MOA)" work arrangements. Aside from them, there
are around 78,000 casual employees in the government whose regularization is still
uncertain.

The present Administration promised to end contractualization and strengthen the
security of tenure of workers in the private sector. This policy must also extend to
public sector workers. Contractualization in the government is a serious concern.
Government workers are the ones who actually deliver public services. Their rights
and welfare must be protected and promoted so that they can deliver excellent
service to the people. Their right to security of tenure must be secured so that they
can also exercise their right to collective bargaining and so that they can have better
benefits and working conditions.

The government must be the model for promoting decent work and job security and
must begin by addressing the rampant labor contractualization in the public service
and provide security of tenure to “Job Order", “Contract of Service”, “Memorandum of
Agreement” and casual government workers. This is a matter of social justice that
must be prioritized by the government.

In view of the foregoing, the passage of this Bill is earnestly sought

Rep. [OND DI ICRITO C. MENDOZA


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
Second Regular Session

6406

House Bill No.

Introduced by
REP. RAYMOND DEMOCRITO C. MENDOZA
Trade Union Congress Party (TUCP PARTYLIST)

AN ACT
TO REGULARIZE AND TO PROVIDE SECURITY OF TENURE TO “JOB ORDER
(JO)”, “CONTRACT OF SERVICE (COS)”, “MEMORANDUM OF AGREEMENT
(MOA)” AND CASUAL GOVERNMENT WORKERS:

Be it enacted by the Senate and the House of Representatives of the Republic of the
Philippines in Congress assembled:

Section 1. Declaration of Policy. The State affirms labor as primary social
economic force. It shall protect the rights of workers and promote their welfare.

The State recognizes the right of public sector workers to security of tenure and to
self-organize and collectively bargain.

The State promotes the participation of public sector unions in decision-making
processes.

The State restricts the contractualization of labor in all its forms in public sector and
shall provide security of tenure and mandatory benefits to all contractual and casual
workers in the government

Section 2. Definition. For purposes of this Act, the following terms shall mean:
a. Individual Contract of Service/Job Order/Memorandum of Agreement

or Any Similar Agreement - shall refer to employment as herein
described, thus:


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1. The contract covers lump sum work or services such as janitorial,
‘security, or consultancy;

2. The job order covers piece work or intermittent job of short duration not
exceeding six months and pay is on daily basis;

3. The contract of service, job order and MOA are covered by relevant
provisions of the Civil Service Commission (CSC) and the Labor Code;

4. The employee involved in the contract of service, job order,
Memorandum of Agreement or any similar agreement shall enjoy
minimum social security benefits such as GSIS, Philhealth, Pag-ibig,
PERA, COLA and other statutory benefits;

5. Services rendered in view of aforesaid contract/agreement shall be
considered government service; and

6. Payment of salaries and benefits of contracts of service, job orders,
Memorandum of Agreement and similar agreement shall be drawn
from personnel services of the agency's/local government
unit's/GOCC's budget.

b. Institutional Contract of Service — shall refer to a contract of service
entered into between the hiring government agency and a private firm or
non-governmental agency through public bidding or negotiated contract,
subject to pertinent rules and regulations of the Civil Service Commission
(CSC) and the Commission on Audit (COA).

In an institutional contract of service, the contracted agency is engaged to
provide personnel who shall perform lump sum work or services incidental
to the hiring agency's functions and operations for a specific period of time
not exceeding six (6) months; provided that such contract of service shall
be entered into when the expertise and capacities are not internally
available or when it is impractical or more expensive for the hiring
government agency to directly undertake such service.

The personne! rendering the service remain the employees of the
contracted agency.

Section 3. Coverage. This Act applies to all employees, whose appointments are
other than regular or permanent, in national government agencies (NGAs),
government owned or controlled corporations (GOCCs) state universities and
colleges (SUCs) and local government units (LGUs).

Section 4. Execution of a Contract of Service, Job Order, Memorandum of
Agreement or Similar Agreement. The employment referred to in Section 2 (a)
requires the execution of the contract of service, job order contract, memorandum of
agreement or any similar agreement between the government agency concerned


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and the individual, in accordance with the rules and regulations of the CSC, COA
and the Labor Code.

With respect to institutional contracts of service defined in Section 2 (b), a contract of
service, memorandum of agreement or any similar agreement must be executed
between the hiring government agency and the contracted agency, also subject to
CSC, COA and Labor Code rules and regulations.

Section 5. Hiring and Selection. Hiring of personnel shall be based on merit and
fitness in the public service.

Participation of public sector unions in the hiring and selection process must be
ensured at all times.

Section 6. Prohibitions. The following provisions cannot be contained in the
contract of service, job order contract, Memorandum of Agreement or similar
agreements:

a. The employee performs work or a regular function that is necessary and
essential to the agency, government unit concerned or work also performed
by regular personnel of the hiring agency;

b. The employee is required to report to the office and render service during the
agency's prescribed office hours from 8:00am to 5:00 pm or for forty (40 )
hours per week;

There is no employee-employer relationship;

|. The employee is not entitled to the minimum social security benefits such as
GSIS, Pag-Ibig, Philhealth and other statutory benefits;

. The employee's conduct and performance shall be under the direct control

and supervision of the government agency concerned;

f. The employee's performance shall be evaluated by the government agency;
and

g. The employee cannot join trade union/association/federation/confederation.

ao

Section 7. Other Prohibitions. The following are prohibited from being hired under
a contract of services, job order contract, Memorandum of Agreement and similar
agreement :

a. Those who have been previously dismissed from the service due to
commission of an administrative and/or criminal offense;

b. Those who are covered under the rules of nepotism;

c. Those who are being hired to perform functions pertaining to core functions of
the agency or a vacant regular plantilla position; and

d. Those who have reached the compulsory retirement age, except as to
consultancy services.


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Section 8. Submission of Contract of Service /Memorandum of Agreement/Job
Order Contract and similar agreement for Review. The contract of service, Job
Order contract, Memorandum of Agreement or any similar agreement, including but
not limited to consultancy services, shall be submitted to the CSC Regional Office
(CSCRO) having jurisdiction over the government agency and local government
units for review of its stipulations within thirty (30) days from its signing or execution,
whichever comes first, which shall be the date indicated on the said instrument. The
CSCRO, with the full participation of the public sector union (PSU) representative (s)
duly named by the public sector union, shall jointly review the contracts.

Section 9. No Rendition of Service. No service shall be rendered under the
contract of service, Job Order contract, Memorandum of Agreement or similar
agreement pending its joint review by the CSCRO and PSU.

Section 10. Findings of the Regional Office and the Public Sector Union. \n
case where the findings of the CSCRO and PSU show that the contract of service,
Memorandum of Agreement , Job Order contract and any similar agreement contain
prohibited provisions, the CSCRO shall direct the agency concerned to comply with
the guidelines provided herein and/or be held administratively liable without prejudice
to subsequent filing of pertinent case for criminal liability.

Section 11. Effects of Non-Submission of Contract of Service/Memorandum of
Agreement /Job Order Contract or similar agreement. Failure of submission of
the contract of service, Job Order contract, Memorandum of Agreement or similar
agreement for joint review by CSCRO and PSU shall invalidate the same without
prejudice to the filing of pertinent charge for Neglect of Duty against the Human
Resource Management Office of the hiring agency and the Approving Officer.

Section 12. Contract of Service/Job Order Contract/Memorandum of
Agreement and Similar Agreement Subject for CSC Audit. As far as practicable,
all contracts of service, job order contracts, Memorandum of Agreement and similar
agreements, including but not limited to Consultancy Services shall be subject to
audit by the CSCRO with the full participation of the public sector union insofar as
compliance with these guidelines, and to pertinent Civil Service rules and
regulations.

Section 13. Conversion of Status. The status of employees who have worked as
Job Order Contract, Contract of Service or Memorandum of Agreement, shall be
converted to Casual Employee status, entitling them to the same benefits enjoyed by
the latter.

The status of casual employees who have worked for a period of at least five (5)
years of continuous service shall be converted to a Regular employee status,
entitling them to the same benefits enjoyed by the latter, subject to compliance with

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eligibility requirements. For this purpose, the agency shall provide all the support
and the necessary review classes for the CSC exams to said employees.

Security of tenure shall be provided to all workers under existing contracts of service,
job order contracts, Memorandum of Agreement and similar agreements, including
casual employees, who have worked for a period of at least five (5) years of
continuous service but lack the eligibility requirement.

Section 14. Effects on Existing Contracts of Service, Job Order Contracts,
Memorandum of Agreement and similar agreements, including but not limited
to Consultancy Services. All existing contracts of service, job order contracts,
Memorandum of Agreement and similar agreements, including but not limited to
consultancy services which are in any way inconsistent with this Act shall be
modified to conform under this Act.

Section 15. Implementing Rules and Regulations. The Civil Service Commission,
with full participation of public sector union, will draft and issue the Implementing
Rules and Regulations for this Act within one (1) year from its effectivity.

Section 16. Separability Clause. |f, for any reason, part of this Act shall be
rendered unconstitutional or invalid, other parts or provisions hereof which are not
thereby affected shall continue to be in effect and full force.

Section 17. Repealing Clause. All orders, rules and regulations, issuances or any
part thereof inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.

Section 18. Effectivity Clause. This Act shall take effect fifteen (15) days after
publication in the Official Gazette or in at least (2) newspapers of general circulation.

Approved,