Security of Tenure in Govt. Reorganization

Removal allowed only for valid cause after due notice and hearing.
Valid cause includes bona fide reorganization that abolishes or renders positions redundant, mergers, divisions, or consolidations to meet service exigencies.
Other lawful causes under Civil Service Law apply.
Evidence of bad faith in removal includes:
- Increase in positions while removing incumbents.
- Replacement of incumbents by less qualified personnel.
- Creation of new offices performing substantially same functions as abolished ones.
- Reclassification preserving same functions.
- Violation of prescribed order of separation.

Layoff order:
1. Casual employees with less than 5 years of service.
2. Casual employees with 5 or more years.
3. Temporary employees.
4. Permanent employees.
Within categories, the least qualified in performance and merit are laid off first, disregarding length of service.

Permanent employees are given preference for appointment to comparable new positions or next lower rank if comparable positions are insufficient.
No recruitment of new employees until all qualified permanent, temporary, and casual employees have been appointed.
Exception for policy-determining, confidential, or highly technical positions.

Permanent employees meeting qualifications have preference for appointment to positions in other agencies.

Creation of a Placement Committee to assist appointing authority in personnel selection.
Committee composed of:
- Two (2) members appointed by the department/agency head.
- Representative of the appointing authority.
- Two (2) employee-elected members from career service.
- Representative of registered employee association if majority exists.
Approved staffing pattern made known to all employees who may apply for positions.
Committee considers applications in placement decisions.

List of personnel appointed to authorized positions communicated to all employees.
Aggrieved employees may appeal to appointing authority within 30 days.
Further appeal to Civil Service Commission within 10 days if dissatisfied.
Civil Service Commission decision is final and executory.

Employees separated in violation must be reinstated or reappointed without loss of seniority and with back pay.
Entitlement to separation pay, retirement, and other benefits under existing laws, payable within 90 days.
If not entitled to benefits, separation gratuity of one month salary per year of service granted.
Separation payments have priority from savings of concerned department or agency.

Heads of government bodies who willfully violate the law face:
- Fine up to P10,000.
- Imprisonment of 3 to 5 years.
- Both fine and imprisonment at court discretion.
- Permanent disqualification from public office.

Authorized reorganization schemes to be implemented within periods specified by law.
For 1987 executive branch reorganization, 90 days from approval of this Act to implement plans.
Civil Service Commission to promulgate implementing rules and regulations.

Laws inconsistent with this Act are repealed or modified accordingly.
Rights and benefits under the Act retroactive to June 30, 1987.
Invalidity of any part does not affect the rest of the Act.
Act takes effect 15 days after publication in at least two newspapers of general circulation.