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Presdeη l and Cわ たfE
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27
SOCIAL SECUR:TY SYSTEM
East Avenue,Diliman,Quezon Cnガ
RE
: SSS RESTRUCTURINC PL̀
Dear Chairman Santos and PCEO De Quiros,
This pertains to the SSS letter dated 25 September 20151, requesting to consider the
SSS Reorganization of the Branch Operations Sector (BOS) and Medical Services Division
(MSD) as 'rationalization' rather than 'reorganization'. We understand from your letter that
in the course of implementing M.O. No. 2015-09 (Reorganization of the Branch Operations
Sector and Medical Division of SSS), SSS was advised by the CSC-NCR Office and Director
Claudia A. Tan of the CSC Field Otfice-SSS that there are significant distinctions between
'reorganization' and'rationalization', as follows:
(a) Reorganization is covered by R.A. 6656, while rationalization is covered by
E.O. No.366;
(b) Under reorganization, all positions are deemed vacant, while under
rationalization, there is no need to announce all positions as vacant;
a
(c) Under reorganization, reclassification and retitling of positions are not allowed,
while under a rationalization, these personnel actions are allowed; and
(d) Under reorganization, since all positions are deemed vacant, incumbents
need to re-apply for their positions, new appointments shall be issued, and the
applicants shall be assessed using the SSS Qualification Standards.
Meanwhile, under rationalization, incumbents of reclassified positions have a
vested right to the reclassified positions.
(e) CSC will approve the filling up of newly created positions in SSS, if SSS is
able to seek approval from GCG to treat its 'reorganization, as
'rationalization'.
We understand that the CSC NCR office informed SSS that it will not process any
appointments resulting from GCG MO No. 2015-09 until SSS first declares all positions
in the
branches as vacant, thus hindering the implementation of the MO. Notably, R.A.
No. 6656
does not expressly mention any limitations as to retitling, reclassification or filling
up of
positions, nor does it make any mention of all positions in ariagency
being
declared
as
vacant.
Even the lmplementing Rules and Regulations (lRR) of R.A. No. -ooso j-ssued
by csc does
n_ot expressly require that in a reorganization, ail positions
must first be declared as vacant.
we understand that the practice of declaring all positions as vacant under a reorganization
w-ere adopted by the implementing agencies based on conditions
that existed when R.A. No.
6656 was enacted in 1988.
1
officially received by the Governance commission on 29
september 2015
on the other hand, the "Gocc Governance Act of 2012" (R.A. No. .10149) is a rater
regulatory regime that gave the Governance commission authority to reorganile
coccs
based on new laws and jurisprudence, as wefl as cunent conditions of the g6vernmeni.
For
instance, the practice of declaring all positrons vacant has been declared ai unconsilitutionat
by the
courl in Mayor v. Macaraig, et al., (gg1), which involved tne reorgEnlation
-supreme
of the National Labor Relations commission (NLRC) puisuant to R.A. No. 6715. lne court
ruled:
Now, a recognized cause for severar or termination of emproyment of a Government
officer or employee is the abolition by law of his office as a result of reorganization
carried out by reason of economy or to remove redundancy of functions, oicrear and
explicit constitutionar mandate for such termination of emproyment. Abolition of an
office is obviously not the same as the decraration that that office is vacant.
while it is undoubtedly a prerogative of the legislature to abolish certain offices,
it cannot be conceded the power to simpry pronounce those offices vacant and
thereby effectivery remove the occupants or hordeF thereof from the civil
service. Such an act would constitute, on its face, an infringement of the
constitutional guarantee of security of tenure, and wilt have to be struck down
on that account. rt cannot be justified by the professed "need to professionarize the
higher levels of officialdom invested with adjudicatory powers and functions, and to
upgrade their qualifications, ranks, and salaries or emoluments.,,
x x x The inquiry therefore should be whether or not RA 6715 has worked such an
abolition of the petitioners' offices, expressry or impriedly. This is the onry mode by
which, under the circumstances, the petitioners' removal from their positions may be
defended and sustained.
It is immediately apparent that there is no express aborition in RA 6715 of the
petitioners' positions. so, justification must be sought, if at alr, in an implied abolition
thereof, i.e., that resurting from an irreconcirabre inconsistency between the nature,
duties and functions of the petitioners' offices under the ord rures and those
corresponding thereof under the new law.
The Governance commission met with csc-NCR and SSS last 13 November 2015.
the above ruling however, we understand from GSC-NCR that csc has not yet
D-espite
officially changed lts practice of requiring all positions in a reorganization to be declared vacant
as a prerequisite to processing any appointments, even for iniumbents whose positions were
merely retitled but othenivise not affected.
Although organizational changes and creation or changing of positions is under the
jurisdiction of the Governance commission pursuant to R.A. No. .tot+g,
appointments to such
positions remain within the exclusive jurisdiction of cSC pursuant to Seciion 2, Article
lX of
the 1987 Constitution. Thus pending a revisit by CSC of its practice and internal guidelines
on
processing appointments resulting from a reorganization, attached for your
referince is GCG
Mo No. 2015-09 (Re-lssued) renaming the organizational change as ,,Restructuring,,
instead of "Reorganization." According to the csc-NCR office, the chinge in term
would allow
sss to process appointments resulting from the GCG Mo without havlng to first oecLie
alt
positions as vacant and thereby unnecessarily cause uncertainty
on the s--ecurity oitenure ot
incumbents who are clearly not affected by the GCG MO.
under the "Restructuring, new positions and recrassified positions (invorving
a
s|bstantial change in duties) must still adhere to the rules and
regulations ot tfre biviiService
Commission (CSC) on qualification standards. Retitled positionslwith
no suostantiai
in duties) wilr arso have to be registered with csc foilowing 'tneir appiicanie' cnange
rurel-ano
regulations. Accordingry, we crarify the terms of GCG Memoiandum
oioer zot s_og (nelssued) as follows.
2
Mayor v. Macaraig,194 SCRA672 (1991)
1.
2.
3,
Retained and refilled positions are not deemed vacant. lncumbents may
continue to occupy said positions.
lncumbents of abolished positions are subject to the rures on removar and
separation of employees.
NEWCREATED
positions are vacant. Applicants are subject
recruitment process of SSS.
4.
to
the
positions, insofar as the reclassification entails a
modification in the Job Grade, are vacant and the positions recrassified
are deemed ABoLISHED. lncumbents of reclassified positions must re_
apply for these positions.
RECLASStFtED
.we trust that the foregoing will enable sss to immediately process the necessary
appointments with cSC for its new branches and improve service delivery to its members.
FoR YoUR INFoRMATIoN AND GUIDANcE.
Very truly yours,
″
―
RAINIER B BUTALID
―
Cc:
DBM Secretary FLORENCiO B ABAD
DOF Secretary CESAR V PUR:SIMA
CSC Chairperon AL:CiA DELA ROSA‐
BALA
CSC NCR Ofrce
CSC Director CLAUDlA A TAN,CSC Field Omce.Sss
Commissioner
12/1/2015
￨
REPUBLIC OF THE PHILIPPINES
DEPARTMENT OFBUDGET AND MANAGEMENT
General Solano St San Miguel,Manila
ACKNOWLEDGEMENT RECE:P丁
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GOVERNANCE COMMIssloN
FOR GOVLRNMENT Oヽ VNED OR CONTROLLED(iORPo島 ハ
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R鷺 剛 呈NGCu
F,Cnibank cmer,8741 Pas∞ De Roxas,Makati Cny,Ph‖
ippines 1226
HON.JUAN BosANTOS
2
C力 arirman
乙2015
HON.EMiL:OS.DE QU:ROS,JR.
Presideη f and cゎ たfExecυ flive Ottcer fPcEOリ
SOCIAL SECUR:TY SYSTEM(SSs)
East Avenue,Diliman,QuezOn ctty
RE
Dear Chairman Santos and PCEO De euiros,
This pertains to the SSS letter dated 25 September 20151,
requesting to consider the
!!^S-Reorganization gltn: Branch operations sector (Bos) and Medical Services Division
(MSD) as 'rationalization' rather than 'reorganizationl
We'understand from your letter that
in the course of implementing M.o. No z0ls-09 (Reorganization
of the Branch operations
Sector and Medical Division ot sss), sss was ad;i;;
6v tn" csc-NCR Office and Director
Claudia A' Tan of the CSC Field office-SSS that there
are significant distinctions between
'reorganization' and,rationatization,, as follows:
(a) Reorganization is covered by R.A. 6656, while rationalization
is covered by
E.O. No. 366;
(b) Under reorganization, all positions are deemed vacant,
while under
'
a
rationalization, there is no need to announce all positions
as r."rnt;
(c) Under reorganization, reclassification and retifling of positions
are not allowed,
while under a rationalization, these personnel ac"tions
are attoweo; anO
(d) Under reorganization, since all positions are deemed
vacant, incumbents
need to re-apply for their positions, new appointments
shall be issued,
and the
applicants shall be assessed using ine ssS eualification
sianoaros,
Meanwhile' under rationalization, incuirbents of reclassified positions
have a
vested right to the reclassified positions.
(e) CSC will approve the filling up of newly created positions
in SSS, if SSS is
able to segk approvar from GCG to treat its ,reorganiiation,
as
'rationalization'.
we understand that the csc NCR office informed SSs that it will
not process any
appointments resulting from GCG Mo No. 2015-09 until
sss tirst oeclares aiipositions in the
branches as vacant, thus.hindering the implementation
of the Mo. Notabt, h.n. ruo. ooso
does not expressly. mention any limitations as to retifling, reclassification'or
filling up of
positions, nor does it.make any mention of all positions
in-.n .g"n.y being declared as vacant.
Even the lmplementing Rules and Regulations (tRRj
or n.n.-rrro.'ooso i-..r"J by csc does
not expressly require..that in a reorgariization, ail poiition.
must first be declared as vacant.
we understand that the practice oideclaring all
as vacant under a reorganization
iositions
were adopted by the implementing agencies-based
on tonoition. that existed when R.A. No.
6656 was enacted in 199g.
1
officially received by the Governance commission on
29 september 2015
i鷲
署聾尊∬
il市曇
舅
iI
upgrade their qua‖ lcat ons,ranks,and sa
占λ
端報:'m聴;剰鼻
靭
聾脳事
撻∬♀
憾忌
撒1鮮 鮒
j尉 麟
鮮
嶋 週[抵
献 11蝋
冨ざ酬
8:e面
2
Mayor v. Macaraig,194 SCRA 672 (1991).
y On he secuny dね nuЮ d
l
2.
3.
4.
neta)neo and refrtled positions are not deemed
vacant. rncumbents may
continue to occupy said positions.
lncumbents of abo_/rshed positions are subject
to the rules on removal and
separation of employees.
NEWrcREATED positions^
vacant. Applicants
recruitment process of SSS.
"re
are subject to
the
RECLA.StFtED positions, insofar as the
reclassification entails a
modification in the Job Grade, are vacant and
the positions ,""lr."ifi"i
are deemed ABoLTsHED. tncumbenGJileclassifiei positions
,;:
apply for these positions.
;uJ
we trust that the foreqoing wi, enabre sss to immediatery process
csc for iti nei branches ,no irpior" r"rice derivery to itsthe necessary
appointments with
members.
FoR YoUR INFoRMATIoN AND GUIDANcE,
Very truly yours,
一
″
RA:NiER B.BuTALID
一
Cc:
群灘 j棚鶉鐙BM
CSC Director CLAUD:A A TAN,CSC Fie:d Ofrcesss
Commissioner