To: Undersecretaries
Assistant Secretaries
Bureau Directors
Directors of Services/Centers and Heads of Units
Regional Directors
Schools Division/City Superintendents

1. Enclosed is DBM Circular Letter No. 2006-2 dated January 5, 2006 of the Department of Budget and Management, entitled, “Moratorium on the Filling of Regular Positions and Authorizing Department/Agency Heads to Renew Appointments/Contracts”.
2. In this connection, Department Heads are authorized to renew the appointments of personnel on casual/temporary status and the contracts of personnel under contractual/consultancy/emergency/job orders basis, subject to pertinent budgetary accounting and auditing rules and regulations and the following conditions:
   1. Renewal of appointments/contracts shall be for the period that the Department/Agency is undergoing rationalization activities up to the time that its Rationalization Plan, is approved by the Department of Budget or until June 30, 2006, whichever comes earlier;
   2. The maximum number of personnel whose contracts/appointments would be renewed/rehired shall not exceed the actual employees at the start of the Department/Agency’s rationalization efforts; and
   3. There shall be no new hiring and/or replacement of resigned/retired/ separated/terminated/regularized staff.
3. Wide dissemination of this Order is desired.

Encl.: As stated
Reference: None
Allotment: 1—(D.O. 50-97)

To be indicated in the Perpetual Index under the following subjects:
APPOINTMENT, EMPLOYMENT, REAPPOINTMENT OFFICIALS
EMPLOYEES POLICY
LEGISLATIONS

DO_s2006_05