Dear PAO,

I am a Contract of Service worker in the government. My superior informed me that my contract will not be renewed next year. I have been connected with this agency for 10 years now. May I know if my contract can be terminated without any cause? If my services are terminated, will I be entitled to GSIS benefits? Thank you.

Vincent

Dear Vincent,

The answer to your query is found in Civil Service Commission (CSC) Resolution 021430, dated Nov. 12, 2002, entitled “Clarification on Policy Guidelines for Contracts of Service.” The resolution defines the engagement of personnel under Contract of Service (COS) such as the hiring of individuals or consultants to perform specific tasks or undertake special projects, regardless of whether the funding for such engagement is sourced internally from the agency or externally from other funding institutions. (Section 1[a]) Personnel hired under a COS are generally contracted to provide services such as, but not limited to, janitorial work, security services, and professional consultancy.

As clarified by the Supreme Court in Mark Abadilla vs Philippine Amusement and Gaming Corp., GR 258658, June 19, 2024, penned by Associate Justice Ramon Paul Hernando, “[w]orkers under contracts of services and job orders are not considered to have rendered service for the government … and do not enjoy the benefits enjoyed by government employees.” Clearly, the service rendered by COS workers is not considered government service, and no employer-employee relationship exists between the government and COS workers. Consequently, COS workers do not enjoy security of tenure and are bound by the terms of their contracts. Their services may be terminated upon the expiration of the contract or when their services are no longer required by the government agency they are affiliated with.

Furthermore, COS workers are not entitled to the benefits provided by the Government Service Insurance System (GSIS) upon termination of their service. Section 3 of Republic Act (RA) 8291, otherwise known as Revised Government Service Insurance Act of 1977, states that “[m]embership in the GSIS shall be compulsory for all employees receiving compensation who have not reached the compulsory retirement age, irrespective of employment status except … contractuals who have no employer and employee relationship with the agencies they serve.”

In your case, unfortunately, the agency that engaged your services is under no legal obligation to renew your contract upon its expiration. Despite having served as a COS worker for 10 years, such length of service is not considered government service for purposes of employment status, as no employer-employee relationship exists between you and the government agency. Moreover, considering that you are not a compulsory member of the GSIS, you are not eligible to receive benefits provided to GSIS members upon termination of their government service.

We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

We appreciate your trust and support.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected].