Memorandum Order No. 20-1711

20-1711
MEMORANDUM ORDER NO. ________

Series of 2020
SUBJECT: UPDATED GUIDELINES ON HIRING OF CONTRACT OF SERVICE (COS),

JOB ORDER (JO) AND INDIVIDUAL CONSULTANTS
Pursuant to the Commission on Audit (COA) and Department of Budget and Management
(DBM) Joint Circular No. 2, series of 2020 issued on October 20, 2020, the following updated
internal guidelines on the hiring of Contract of Service (COS), Job Order (JO), and Individual
Consultants shall be adopted in the Department of Trade and Industry.
1. Coverage
This Memorandum Order shall cover the hiring of COS, JO, and Individual Consultants for
all DTI Offices in the Central and Regional Offices.
2. Definition of Terms
2.1. Contract of Service refers to the engagement of the services of an individual,
private firm, or another government agency as consultant, learning service provider,
or technical expert to undertake special project or job within a specific period.
2.2. Contractor or Service provider refers to an individual, private firm, or another
government agency that is duly registered by authorized government agencies to
provide consultancy services in their field of expertise.
2.3. Institutional Contract of Service refers to a contractor or service provider duly
recognized by authorized government agencies to provide services such as
janitorial, security, and other support services.
2.4. Job Order refers to piece of work (pakyaw) or intermittent, or emergency jobs and
other manual/trades and crafts services such as carpentry, plumbing, electrical, and
the likes. These jobs are of short duration and for a specific piece of work.
3. General Guidelines
3.1. Institutional Contract of Service
As a general rule, Institutional COS should be availed and contracted for lump sum
work or services to perform janitorial, security, clerical, and other support functions,
subject to RA 9184 and its Implementing Rules and Regulations (IRR), and existing
budgeting, accounting, and auditing rules and regulations.
3.2. Individual Contract of Service
3.2.1. Individual COS may be hired as consultants/contractors for a maximum of
one (1) year, renewable at the option of the Head of Procuring Entity (HOPE),
subject to provisions of RA 9184 and its IRR and existing budgeting,
accounting, and auditing rules and regulations.
3.2.2. Offices that are hiring individual COS must ensure that the work or job of the
COS is not part of the regular functions of their permanent staff. The individual
COS’ expertise should not be available in the current plantilla of the
office. Further, the COS should not supervise any regular and career
employees.
FFICE OFFICE OF THE UNDERSECRETARY FOR MANAGEMENT SERVICES GROUP
5/F Trade and Industry Building (632) 791-3242/791-3376 (632) 890-4870

361 Senator Gil J. Puyat Avenue, 1200 Makati City, Philippines www.dti.gov.ph [email protected]
3.2.3. HRAS shall monitor the compliance of the offices in the Central Office, as
necessary, while the Finance and Administrative Division in Regional Offices
shall monitor compliance of their respective Regional Offices. HRAS/FAD
shall review contracts to monitor compliance based on the nature of duties /
tasks / work given to COS workers. Furthermore, concerned AOs shall notify
non-compliant units upon receipt of signed contracts, ultimately requesting
correction and adherence to guidelines set forth.
3.3. Job Order
JO’s may be hired for manual work paid to an agreed amount for the piece of work
or on a daily basis, subject to existing budgeting, accounting, and auditing rules and
regulations.
4. Limitations
4.1. Hiring of COS shall be limited to consultants, learning service providers and other
technical experts to undertake projects for a specific period. The project or job
should not be part of the regular functions of our employees or the expertise is not
available in our plantilla, or it is impractical or more expensive to directly undertake
the service provided by the COS.
4.2. Hiring of JO workers shall be limited to emergency or intermittent work, other trades
and crafts, and manual tasks.
4.3. COS and JO workers should not perform functions of regular employees. They
should not be designated to supervisory positions which exercise control over regular
and career employees.
4.4. The services of the COS and JO workers are not covered by Civil Service laws, rules
and regulations.
5. Transitory Provisions
5.1. Offices may engage new and renew existing COS/JO workers until 31 December
2022. Thereafter, the engagement of COS/JO workers shall be in accordance with
the provisions of the COA/DBM Joint Circular No 2.
5.2. The existing qualified COS/JO workers shall be considered for permanent positions
subject to CSC rules and regulations and DTI’s Merit Selection Plan.
5.3. Offices are required to regularly review their staffing and request for creation of
additional permanent positions or contractual personnel.
5.4. Existing DTI policies on Compensation Rates, COS/JO qualifications, hiring/renewal
documentation, and payment policies will continue to be enforced.
6. Sanctions
The Head of Office/Bureau and/or responsible officers found to violate the provisions of
these rules and regulations may be charged before the proper administrative bodies
(Office of the Ombudsman, Office of the President or CSC) for violation of the existing Civil
Service Laws and rules of serious nature or conduct prejudicial to the best interest of the
service.

7. Effectivity
This order shall take effect immediately and shall remain in full force and effect unless
sooner revoked. All other issuances or parts thereof inconsistent herewith are hereby
modified, amended, or superseded accordingly.
19 November 2020, Makati City.

Issued on ____
IRENEO V. VIZMONTE
Undersecretary, MSG


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20-1711

MEMORANDUM ORDER NO. ________

SUBJECT: UPDATED GUIDELINES ON HIRING OF CONTRACT OF SERVICE (COS),

FFICE OFFICE OF THE UNDERSECRETARY FOR MANAGEMENT SERVICES GROUP

5/F Trade and Industry Building (632) 791-3242/791-3376 (632) 890-4870

FFICE OFFICE OF THE UNDERSECRETARY FOR MANAGEMENT SERVICES GROUP

5/F Trade and Industry Building (632) 791-3242/791-3376 (632) 890-4870

19 November 2020, Makati City.

FFICE OFFICE OF THE UNDERSECRETARY FOR MANAGEMENT SERVICES GROUP

5/F Trade and Industry Building (632) 791-3242/791-3376 (632) 890-4870

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