The Rationalization Plan for all departments under the Executive Branch, pursuant to Executive Order No. 366, s. 2004, is submitted to the Department of Budget and Management for review and thereafter submission to the President of the Philippines for approval.
E.O. No. 366 also provides:
"SEC. 6. Timetable for the implementation of the Rationalization Program. The DBM, together with the Civil Service Commission (CSC), shall coordinate the implementation of the Program. They are authorized to prepare a timetable for its implementation, including the phasing of activities and availment of the incentive package as provided under Section 10 of this Order.
"SEC. 7. Prohibition on Hiring/Rehiring of Personnel During Plan Preparation. Except for newly created agencies, the hiring of additional personnel (permanent, temporary, contractual or casual), and the renewal of contracts/appointments of all employees hired on contractual, casual, or temporary basis is hereby prohibited during the preparation of the Rationalization Plan.
"SEC. 8. Options for Personnel Who May Be Affected by the Rationalization of the Functions and Agencies of the Executive Branch. Personnel who may be affected by the rationalization of the functions and agencies of the Executive Branch shall have the option to:
8.1 Remain in government service, if with permanent appointment attested by the CSC. Those with temporary appointment attested by the CSC; may opt to remain but are guaranteed tenure up to the expiration of their appointment only; or
8.2 Avail of the retirement/separation benefits as herein provided.
"SEC. 9. Personnel Who Would Opt to Remain in Government Service. Affected personnel with permanent or temporary appointment who would opt to remain in government service shall be placed in other agencies by the CSC where additional personnel are required. However, the position of the transferred personnel in the recipient agency shall be co-terminus with the incumbent. Such affected personnel shall not suffer any diminution in pay, except certain allowances that used to be given corresponding to the performance of specific functions which would no longer form part of their new functions.
Personnel who would choose to remain in government service but would later object to his/her new job assignment shall be deemed separated/retired and shall be paid retirement, separation or unemployment benefit, whichever is applicable under existing retirement/separation laws, without the incentives provided herein.
On the other hand, Republic Act No. 6656 (An Act to Protect the Security of Tenure of Civil Service Officers and Employees in the Implementation of Government Organization) provides:
"Section 4. Officers and employees holding permanent appointments shall be given preference for appointment to the new positions in the approved staffing pattern comparable to their former position or in case there are not enough comparable positions, to positions next lower in rank.
No new employees shall be taken in until all permanent officers and employees have been appointed, including temporary and casual employees who possess the necessary qualification requirements, among which is the appropriate civil service eligibility, for permanent appointment to positions in the approved staffing pattern, in case there are still positions to be filled, unless such positions are policy-determining, primarily confidential or highly technical in nature.
"Section 5. Officers and employees holding permanent appointments shall be given preference for appointment in other agencies if they meet the qualification requirements of the positions therein.
"Section 9. All officers and employees who are found by the Civil Service Commission to have been separated in violation of the provisions of this Act, shall be ordered reinstated or reappointed as the case may be without loss of seniority and shall be entitled to full pay for the period of separation. Unless also separated for cause, all officers and employees, who have been separated pursuant to reorganization shall, if entitled thereto, be paid the appropriate separation pay and retirement and other benefits under existing laws within ninety (90) days from the date of the effectivity of their separation or from the date of the receipt of the resolution of their appeals as the case may be: provided, that application for clearance has been filed and no action thereon has been made by the corresponding department or agency. Those who are not entitled to said benefits shall be paid a separation gratuity in the amount equivalent to one (1) month salary for every year of service. Such separation pay and retirement benefits shall have priority of payment out of the savings of the department or agency concerned."
We hope to have enlightened you on this matter.