In the Philippine civil service, a lateral transfer is a movement of an employee from one position to another which is of equivalent rank, level, or salary, without a break in service. For employees within Local Government Units (LGUs), this process is governed by the rules of the Civil Service Commission (CSC) and the Department of Budget and Management (DBM).
Understanding these rules is crucial for career mobility and ensuring that your years of service and earned increments are preserved.
I. Legal Definition and Nature of Transfer
Under CSC Memorandum Circular No. 14, s. 2018 (the ORAOHRA), a transfer is defined as the movement of an employee from one position to another which is of equivalent rank, level, or salary.
- Intra-agency: Movement from one department to another within the same LGU (e.g., from the Office of the Mayor to the Sangguniang Bayan).
- Inter-agency: Movement from one LGU to another LGU, or from a National Government Agency (NGA) to an LGU.
Key Rule: A transfer requires the consent of the employee. Unlike a "reassignment," a transfer cannot be forced upon a permanent employee.
II. Salary Rules and the "No Salary Reduction" Principle
One of the most common concerns is whether a transfer results in a pay cut.
- Equivalent Salary Grade: A lateral transfer must involve a position with the same Salary Grade (SG). For example, an Administrative Officer II (SG 11) can transfer to another Administrative Officer II (SG 11) position.
- Salary Rate: The employee shall receive the same salary rate they were receiving in their former position.
- The LGU Income Class Limitation: It is important to note that LGUs have different salary scales based on their income classification (Special, 1st Class, to 6th Class).
- If you move from a 1st Class Municipality to a 5th Class Municipality, your salary may decrease because the 5th Class LGU has a lower salary ceiling for the same Salary Grade. This is a rare exception to the "no reduction" rule, dictated by the Local Government Code of 1991.
III. Step Increments and Length of Service
The treatment of step increments is governed largely by CSC-DBM Joint Circular No. 1, s. 2012.
- Preservation of Steps: When an employee transfers laterally, they usually carry over their earned Step Increment. If you were at SG 11, Step 3 in your old LGU, you should be appointed to SG 11, Step 3 in the new LGU.
- Length of Service: For the purpose of the next step increment based on "Length of Service" (which occurs every three years of continuous satisfactory service), the service is considered uninterrupted.
- Example: If you have served 2 years at Step 3 in LGU-A and then transfer to LGU-B, you only need to serve 1 more year in LGU-B to qualify for Step 4.
IV. Required Clearances and Documentation
To ensure the transfer is legal and valid, the following documents are typically required:
| Document | Purpose |
|---|---|
| Notice of Appointment | Issued by the Appointing Authority of the receiving LGU. |
| Clearance from Money & Property Accountabilities | Proof that the employee has no outstanding debts or unreturned equipment in the old LGU. |
| Service Record | Updated record showing all previous positions and step increments. |
| Certificate of Last Salary Received | To ensure the new LGU matches the previous pay and step. |
| Performance Rating | Usually requires at least a "Satisfactory" rating for the last two rating periods. |
V. Important Limitations
- The 3-Month Rule: An employee who has been transferred cannot be transferred again within three (3) months from the date of the first transfer, unless there is an emergency or high-level exigency of service.
- The Election Ban: Transfers are generally prohibited during the "Election Period" (usually 45 days before an election) unless prior exemption is granted by the COMELEC.
- Probationary Period: Generally, a lateral transfer of a permanent employee does not require a new probationary period. The employee retains their permanent status.
VI. Frequently Asked Questions
Can an LGU refuse my transfer? An "effective" transfer requires a "Release" or clearance from the head of the current LGU. While they cannot legally chain you to the desk, they can delay the process if there are pending accountabilities or if the employee has a pending administrative case.
Do I lose my leaves? No. Under the Omnibus Rules on Leave, your accumulated leave credits (vacation and sick leave) are transferable to the new LGU. You must request a "Certification of Leave Credits" from your previous HR office.
Would you like me to draft a sample Letter of Intent for Lateral Transfer or a Request for Transfer of Leave Credits based on these guidelines?