Dear PAO,
My daughter has been employed under a Contract of Service (COS) by a government agency since January 2024. I noticed that she has not been receiving any government bonuses, cash gifts, leave benefits, or other basic benefits despite working for the government. May I know the reason for this?
Abraham
Dear Abraham,
Pursuant to the Civil Service Commission Memorandum Circular No. 40, Series 1998 (CSC MC. No. 40, s. 1998) on Revised Omnibus Rules on Appointments and Other Personnel Actions, dated 14 December 1998, job order (JO) and contract of service (COS) workers are not considered government employees, but independent contractors whose nature of employment are based on their respective individual contracts. Their engagement by government agencies does not create an employer-employee relationship. Hence, JO/COS workers are generally not covered by the Civil Service Law and any services rendered therefrom do not constitute as government service.
In reference, Section 1 and 2, Rule XI of the aforesaid memorandum explicitly defined the nature, status, and entitlements of JO/COS workers, to wit:
“SEC. 1. Contracts of Services/Job Orders, as distinguished from those covered under Sec. 2 (e) and (f), RULE III of these Rules, need not be submitted to the Commission. Services rendered thereunder are not considered government services.
“SEC. 2. Contracts of Services/Job Orders refer to employment described as follows:
“a. The contract covers lump sum work or services such as janitorial, security, or consultancy services where no employer-employee relationship exist;
“b. The job order covers piece work or intermittent job of short duration not exceeding six months on a daily basis;
“c. The contracts of services and job orders are not covered by Civil Service Law, Rules and Regulations, but covered by COA rules;
“d. The employees involved in the contracts or job orders do not enjoy the benefits enjoyed by government employees, such as PERA, COLA and RATA.”
Moreover, the Joint Circular issued by the Civil Service Commission (CSC), Commission on Audit (COA), and Department of Budget and Management (DBM) under CSC-COA-DBM Joint Circular No. 1, S. 2017, dated 15 June 2017, reinforced that job order or contract of service workers are not employees of the government, and consequently, do not receive the same benefits as regular government employees.
In Mark Abadilla, et al. vs. PAGCOR [G.R. No. 258658, June 19, 2024], the Supreme Court, speaking through Honorable Associate Justice Ramon Paul L. Hernando, reiterated:
“In CSC-COA-DBM Joint Circular No. 1, it was expressly stated that contract of services or job order workers are not covered by Civil Service laws and rules. Accordingly, Section 7.4 of the CSC-COA-DBM Joint Circular No. 1 states:
“7.4 The services of the contract of service and job order workers are not covered by Civil Service law and rules thus, not creditable as government service. They do not enjoy the benefits enjoyed by government employees, such as leave, PERA, RATA and thirteenth month pay. (Emphasis supplied)
“In jurisprudence, We emphasized that CSC-COA-DBM Joint Circular No. 1 clarified the earlier guidelines set forth by the CSC. We likewise reiterated that there is no employer-employee relationship between the government and job order workers, and that the latter’s services are not considered government service. For these reasons, job order employees are not covered by Civil Service law, rules, and regulations.”
In fine, given that your daughter is being employed as a COS worker since January 2024, she is not considered an employee of the government, and, therefore, cannot receive the same benefits and emoluments endowed to government employees.
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
We appreciate your trust and support.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net
