Palace amends MC1, extends term of contractual gov't workers to yearend

Malacañang took back its controversial memorandum circular (MC) that removed all contractual and casual employees from their positions effective June 30 and instead extended their term until the end of the year.

Memorandum Circular No. 3

This came almost a month after Executive Secretary Vic Rodriguez signed MC No. 1 on June 30 which stated that the following were deemed separated from service, and all positions held by them in the departments, offices, agencies, and bureaus of the Executive Department are declared vacant:

  • All Presidential appointees who are coterminous
  • All Presidential appointees occupying positions created over the authorized staffing pattern
  • All non-Career Executive Service Officials (CESO) occupying Career Executive Service (CES) positions
  • Contractual and casual employees

Based on Memorandum Circular No. 3, all affected officers-in-charge (OICs), non-CES officials occupying CES positions, and contractual or casual employees shall continue to perform their duties until December 31, 2022, or they are replaced, whichever comes first.

"All officials and employees covered by this Memorandum Circular are mandated to lawfully perform their duties and functions, and submit bi-monthly performance reports to their respective heads... otherwise, they will be held accountable," the new memorandum read.

In signing the MC, Rodriguez said there was a need to amend and supplement the original memorandum circular to ensure the continuous and effective delivery of government services.

"There is a need to supplement MC No. 1 in order to ensure that no new contract, project, or disbursement of extraordinary funds is made by a department, agency, bureau, and office until the appointment is made by the President," the Palace official wrote in the new memorandum.

Based on the MC, affected OICs of departments, offices, agencies, instrumentalities, and bureaus are not allowed to enter into new contracts or projects or disburse extraordinary funds.

The same applies to government-owned or -controlled corporations (GOCCs), government instrumentalities with corporate powers, government corporate entities, and government financial institutions until they have new sets of appointive directors and have elected chief executive officers.

Freeport and special economic zone authorities likewise cannot enter into new contracts or projects or disburse extraordinary funds.