Entrepreneurial Activities by Gov't Employees Rules

Section 2 of Republic Act No. 6713 declares a state policy to promote a high standard of ethics in public service.
Section 2 of Republic Act No. 6713 requires public officials and employees to discharge duties with utmost responsibility, integrity, competence and loyalty, and to act with patriotism and justice, lead modest lives, and uphold public interest over personal interest.
The circular addresses entrepreneurial activities of government employees in light of the ethics policy under Republic Act No. 6713.
The circular recognizes that entrepreneurial activities may arise from urgent needs to augment income and cope with the rising cost of living.
The circular permits entrepreneurship only under strict conditions that preserve compliance with Republic Act No. 6713.

The circular covers entrepreneurial activities such as employment as real estate or insurance agents, direct selling of commodities and merchandise, operating retail stores, managing a farm, and contracting out specialized services.
Entrepreneurship may be allowed for government employees subject to the circular’s enumerated conditions.
The circular frames the permission as conditional: entrepreneurial activities must not violate Section 7 of Republic Act No. 6713 and must comply with related rules on conflicts, timing, and use of government resources.

Government employees must strictly observe Section 7, paragraphs (a), (b), and (c) of Republic Act No. 6713, which prohibit specified unlawful acts and transactions for public officials and employees.
Government employees must ensure that the conduct of business or economic ventures does not conflict or tend to conflict with their official functions.
Government employees must ensure that business or economic ventures are not done during office hours nor within the required 40-hour work week period.
Government employees must not use, in any manner, government resources, facilities, equipment and supplies in conducting their business or economic ventures.
The circular enjoins concerned persons to observe these conditions and relevant provisions of Republic Act No. 6713 and other existing Civil Service laws, rules, regulations on entrepreneurial activities.

Section 7(a) of Republic Act No. 6713 prohibits public officials and employees from directly or indirectly having a financial or material interest in any transaction requiring approval of their office.
Section 7(b) of Republic Act No. 6713 prohibits public officials and employees, during incumbency, from owning, controlling, managing, or accepting employment as officer, employee, consultant, counsel, broker, agent, trustee, or nominee in any private enterprise regulated, supervised or licensed by their office, unless expressly allowed by law.
Section 7(b)(2) of Republic Act No. 6713 prohibits public officials and employees from engaging in the private practice of their own profession during incumbency unless authorized by the Constitution or law, and provided such practice will not conflict or tend to conflict with official functions.
Section 7(b)(3) of Republic Act No. 6713 prohibits public officials and employees from recommending any person to any position in a private enterprise that has a regular or pending official transaction with their office.
Section 7(c) of Republic Act No. 6713 is incorporated by reference through the requirement of strict observance of Section 7, paragraphs (a), (b) and (c).

The Civil Service Commission enjoins all concerned to observe the conditions for entrepreneurial activities.
The circular requires observance of the prohibitions and restrictions under Republic Act No. 6713, including Section 7, paragraphs (a), (b), and (c).
The circular requires compliance with other existing Civil Service laws, rules, and regulations related to entrepreneurial activities.
Government employees must align any entrepreneurial activity with ethical public service requirements rooted in Republic Act No. 6713.