Legal basis and war-finance rationale
- The President issued Executive Order No. 221 by virtue of powers vested under the Constitution and existing laws.
- The Order is grounded on the Secretary of Finance’s report that the outbreak of war in Europe may reduce government income due to decreased customs collections from reduced imports.
- The Order states it is advisable to take precautionary measures to keep the budget in balance and maintain stability of government finances.
- The measures are implemented through restrictions on staffing and compensation changes in government.
Core hiring freeze: vacant positions
- Executive Order No. 221 provides that no vacant positions shall be filled without prior approval of the President.
- The approval requirement applies to the act of filling any vacant position within the government service.
- Any proposed filling of a vacancy requires President-level approval before the position may be filled.
Salary freeze: increases in same position
- Executive Order No. 221 prohibits authorizing increases in salary in the same position.
- The salary-increase prohibition continues until further order.
- No authorization may issue for salary increases in the same position during the freeze period.
Exception for pending meritorious appointments/promotions
- Executive Order No. 221 recognizes meritorious cases of appointments and promotions submitted by the respective chiefs of bureaus or offices.
- The exception covers submissions made prior to September fourth, nineteen hundred and thirty-nine.
- Such meritorious cases will be given due consideration by the government.
- The exception relates specifically to appointments and promotions already submitted before September 04, 1939.