Legal basis, policy, and purpose
- Section 1 grounds the authorization to appoint local hires on Section 24 of Republic Act No. 7157 (Philippine Foreign Service Act of 1991), allowing chiefs of mission/principal officers to appoint alien or locally hired employees for embassies and consulates, with preference to Filipino citizens, and limiting transfer outside the country where originally appointed.
- Section 2 declares the objective to streamline and facilitate (1) recruitment of staff support services in areas covered by Foreign Service Posts, (2) formulation of employment contracts, and (3) implementation of internationally-accepted labor standards and benefits for locally-hired personnel.
Key definitions and covered “local hires”
- Section 3 defines “Local Hires” as persons of any nationality directly recruited by the Post in the host country to provide staff support services.
- Local hires are compensated under employment contracts based on (1) local labor laws, (2) relevant rules and regulations in the host country, and (3) issuances of the Department of Foreign Affairs.
- The concept of “Posts” refers to areas covered by Foreign Service Posts where local hires are employed under these guidelines (Section 2).
Core recruitment and staffing controls
- Section 5 requires Posts that need a new local hire item in the staffing pattern to submit to OPAS specified information: (1) request and justification, (2) description of duties and functions, (3) qualifications (plus any additional qualifications beyond Section 6), (4) cost-benefit analysis between Philippine-based and locally-hired personnel, and (5) other relevant information.
- Section 5 provides that OPAS and the Office of Fiscal Management recommend creation of a new local hire item for consideration of the Undersecretary for Administration.
- Section 6 requires applicants to meet all enumerated qualifications, subject to position-specific exceptions stated in the provision (e.g., work experience and training in lieu of formal education for certain positions).
Qualifications and disqualifications
- Section 6 requires applicants to have:
- Relevant work experience and a college degree, except for positions where experience and training may be considered in lieu of formal education (Section 6.1).
- For Translator, Interpreter and Writer, fluency in spoken and written English and in the language of the host country (Section 6.2).
- Legal status in the host country (Section 6.3).
- A police clearance certificate from the host country; and if a Filipino citizen, an NBI clearance (Section 6.4).
- Passing the appropriate examination and background check conducted by the Post (Section 6.5).
- Age of at least twenty (20) years and not older than sixty four (64) years old at the start or renewal of employment contracts, without prejudice to local age requirements (Section 6.6).
- Physical fitness to assume job responsibilities shown by physician certification and results of the appropriate medical examination in the host country (Section 6.7).
- Section 6 also requires possession of additional competencies determined by the concerned Post for the available position.
- Section 6 provides that Philippine citizens applying for local hire positions receive preference if they possess all qualifications under Section 6 and none of the disqualifications under Section 7.
- Section 7 disqualifies applicants who are:
- Relatives within the third degree of consanguinity or affinity of the Head of Post or the appointing authority (Section 7.1).
- Without legal status in the host country (Section 7.2).
- Wards at MWOFRC (Section 7.3).
- Former local hires terminated for cause of Philippine embassies, consulates, missions, and attached agencies abroad (Section 7.4).
- Relatives within the third degree of consanguinity or affinity and private staff of Foreign Service Personnel at Post, except in emergency cases authorized by the Secretary of Foreign Affairs or authorized representative (Section 7.5).
Mandatory submission and appointment process
- Section 8 requires that after selection for initial appointment, the Post submit to the Department for processing:
- Proposed employment contract (Section 8.1).
- Personal History Statement (Section 8.2).
- Sworn Statement by the local hire that the person does not fall under any disqualification under Section 7 (Section 8.3).
- Police clearance (foreign nationals) and Police and NBI clearance (Filipino citizens) (Section 8.4).
- Physician’s Certification on state of health and fitness to work (Section 8.5).
- Section 8 requires each local hire to submit updated documents under Section 8.4 and Section 8.5 every five (5) years after initial appointment.
- Section 9 requires that all initial appointments of local hires be made with prior authorization from the Secretary of Foreign Affairs or authorized representative.
- Section 9 sets the initial appointment period as a fixed period of six (6) months, unless a different minimum period is required under local labor laws or regulations.
- Section 10 allows renewal subject to evaluation of (1) availability of funds, (2) performance, and (3) applicable local labor laws and regulations.
Employment contracts, passports, and visas
- Section 11 requires Posts to formulate local hire contracts guided by the model employment contract recommended by the Department, and the model must be customized to incorporate local labor law requirements and the Order’s provisions.
- Section 11 requires submission of the proposed employment contract to the Department for approval in accordance with Section 8.
- Section 12 prohibits issuance of official passports to local hires of Philippine citizenship, except when possession is necessary for duties involving Assistance to Nationals and/or security-related functions, subject to approval by the Secretary of Foreign Affairs or authorized representative.
- Section 12 provides that local hires allowed to use official passports under this exception are not entitled to benefits accorded to regular Foreign Service personnel.
- Section 13 states that the Department and Posts shall not facilitate visa or work permit applications of local hires or their family members unless Post intervention is required by the Foreign Ministry and other host-country authorities for identification, accreditation, or other official purpose.
Labor law inputs and benefit standards
- Section 4 requires Posts to submit to the Department the English version of host-country labor laws and regulations covering:
- Monetary benefits: salary and required increases; overtime pay; holiday pay; separation pay; retirement pay; social security and pension benefits; compensation for work-related injury or illness; medical benefits; leave benefits; monetization of leave credits; terminal leave benefits; and other monetary benefits required by law.
- Non-monetary benefits: weekly day-off; probationary period; compensatory time off; and other non-monetary benefits.
- Other conditions of employment: hours of work; salary deductions required by law; security of tenure; grounds and procedure for termination of services; and other relevant laws and regulations.
- Section 4 requires Posts to indicate whether each labor benefit is (1) must be complied with by diplomatic and consular missions, (2) may be adopted at mission discretion, (3) not allowed to be applied, or (4) must follow the relevant law/regulation of the Sending State.
- Section 4 requires Posts to indicate whether a benefit applies only to host-country citizens, host-country permanent residents, or citizens of the Sending State of the mission.
- Section 4 requires Posts to consult host-country labor and other concerned officials on local labor laws affecting hiring and to submit to OPAS a report on consultation outcomes.
- Section 4 authorizes Posts to request authority from the Department to hire consultants on employment laws to ensure contract compliance with host-country labor laws.
- Section 4 requires prompt submission to the Department of updates, revisions, or amendments to the submitted host-country labor laws and regulations.
Benefits: general rule, pay, leave, and incentives
- Section 14 provides the general rule that benefits the host country does not require foreign missions to provide to their local hires shall not be granted unless authorized by the Department.
- Section 15 requires the salary rate criteria for a local hire to include:
- Minimum wage law or regulation of the Receiving State (Section 15.1).
- Prevailing rates for comparative positions in the Receiving State (Section 15.2).
- Qualifications of the prospective local hire (Section 15.3).
- Duties and responsibilities (Section 15.4).
- Duration of work (full time or part time) (Section 15.5).
- Salary rates of the Post’s incumbent locally-hired personnel (Section 15.6).
- Section 15 allows Posts to recommend salary increases for deserving local hires based on performance at the end of each calendar year for the Department’s consideration.
- Section 16 requires local hires to pay all taxes due on salary and other monetary benefits unless local law/regulation requires the Post to deduct and remit those taxes.
- Section 16 provides that failure to pay taxes required under local law or regulation is a ground for non-renewal of the employment contract.
- Section 17 provides that leave entitlements are based on host-country labor laws but must not exceed 30 days vacation leave and 30 days sick leave for each year of service, pursuant to Section 80 of Republic Act No. 7157.
- Section 18 requires enrollment by the Post of local hires in a Social Security, Retirement or Pension plan required by local labor law, regulation, or Philippine law.
- Section 18 provides that after enrollment, accumulated vacation and sick leave credits shall not be converted to TLB, unless those leave credits were accrued before effectivity of the Order.
- Section 18 requires monetization of vacation and sick leave credits accumulated before enrollment in the Social Security/Retirement/Pension plan according to a schedule issued by OFM at the end of each calendar year.
- Section 18 provides that for countries with no plan or where a local hire cannot qualify, vacation and sick leave credits after effectivity may be converted to Terminal Leave Benefits up to a combined maximum of 120 days, without prejudice to leave credits accumulated under Philippine law before effectivity.
- Section 19 provides that bonuses (including 13th month pay, 14th month pay, mid-year bonus, year-end bonus, holiday bonus, performance bonus, cash gifts, and incentive pay) shall be granted only if required by local law or regulation.
- Section 20 requires prior authorization from the Department for compliance with any required overtime payment for overtime service rendered, when local labor law/regulation requires overtime payment.
- Section 20 provides that compensatory time off (CTO) may be granted in lieu of overtime payment if CTO is not prohibited by local labor law or regulation.
Performance, separation, and personnel coverage
- Section 21 requires each Post to use the Department’s Individual Performance Commitment and Review Form (IPCRF) for local hires.
- Section 22 requires Posts, when considering pre-termination or non-renewal, to comply with local labor laws on prior notification and to seek prior approval of the Department, unless immediate termination is required due to exigencies in service and justified under local labor laws.
- Section 22 requires, for termination due to the local hire’s retirement, submission to the Department for review of at least 12 months prior to retirement:
- Local retirement laws/rules/regulations on retirement, duration of prior notice, procedural requirements, separation pay, and other relevant provisions (Section 22.1).
- Draft notice of separation due to retirement (Section 22.2).
- Draft computation of retirement benefits in accordance with Section 17 of the Order (Section 22.3).
- Section 23 extends the Order’s provisions to local hires of overseas offices, service attaches, or representatives of other Philippine government agencies (partner agencies).
Prohibitions, disputes, and transitory rules
- Section 24 makes it unlawful, under RA 8042 (Migrant Workers and Overseas Filipinos Act of 1995), for local hires or their relatives within the fourth civil degree of consanguinity or affinity to directly or indirectly engage in the business of recruiting migrant workers.
- Section 25 requires that disputes in implementation of the employment contract, host-country laws/regulations, and Department issuances be resolved case-to-case considering circumstances of the Post, availability of funds, and the interests of the involved parties.
- Section 26 provides transitory treatment for existing fixed-period contracts: their terms and conditions are respected until expiration.
- Section 26 provides that if fixed-period employment continues after expiration, the terms and conditions under the Order apply to the new contract.
- Section 26 provides that if an existing contract that started as fixed period is already considered an indefinite-period contract under host-country labor law at effectivity, it must be amended in accordance with the Order and the applicable labor rules on amending employment contracts.
- Section 26 requires every Post with local hires to submit to the Department within 30 days from effectivity its customized employment contract applying the Order’s terms and conditions, applicable host-country labor laws/regulations, and financial implications if any.
Repeal, separability, and related issuances
- Section 27 repeals or amends Department Order No. 38-91, Department Order No. 19A-95, Foreign Service Circular No. 99-07, CIR-1445-OPAS-2010, and any other Department Orders, Circulars, and Regulations contrary to or inconsistent with the Order.
- Section 28 provides separability: if any part is declared contrary to law or unconstitutional, the remaining parts continue in full force and effect.