Chapter 1- Hiring

Section 1- Selection of Employees

The Company makes sure that only qualified, competent and skillful
applicants are accepted to join as members of the 7H MACHINE SHOP
CORPORATION.

The Company selects its employees based on merits, efficiency and

qualifications as determined by their education, experience, training, skill, moral
character, age and physical condition.

The Company shall not employ any person below eighteen (18) years of
age.

Section 2- Orientation of New Employees

The Company believes that initial impressions and information about the
Company go a long way in the formation of employee’s attitude towards the
Company. Thus, all new employees shall undergo orientation in his first few days
on the job and proper induction to Company policies and practices is part of the
total training process.

2.1 Procedures

2.1.a The Human Resource Department shall orient every new employee
with the following subjects prior to giving actual work assignments.

a. Company policies, practices, rules and regulations

b. Company Organization
c. Company responsibilities to the employee
d. Company benefits to employees
e. Government benefits to employees, e.g., SSS, PHILHEALTH,
EC
f. Health, Environment and Safety policies

2.1.b The department head or supervisor concerned shall orient the new
employee on the following subject matters:

a. General nature of the work in the section department and

Health, Environment and Safety practices in the department.
b. Relation of the department with other departments
c. Brief tour in the department or area of assignment
d. Introduction to supervisor and employee

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 Chapter 2- Types and Classification of Employees

Section 1- Types of Employees

1.a Casual Employee

A casual employee is one hired on a full time or part time basis for
a limited period of time strictly for occasional or specific tasks not
directly connected with the regular business of the company.
Casual employees are paid daily or on a piece-work basis.

1.b Temporary Employee

A temporary employee is one hired on a full time or part time basis

to perform specific task, job or project, or a temporary replacement
for a regular employee who is on leave. He is hired to perform
work directly connected with the regular operation or business of
the company but the duration of employment is limited to a definite
period of time. A temporary employee retains his employment
status until the project for which he was hired has been completed.

1.c Probationary Employee

A probationary employee is a hired employee, working full time on

established job during the probation period. Before such
probationary employee/ worker be elevated to regular status, he is
required to undergo a probationary employment period not
exceeding six (6) months reckoned from the date he or she actually
started working.

His status may be elevated to that of a regular employee subject to

the following terms and conditions:

That he/she satisfactorily meets the reasonable performance

requirements prescribed for the position to which he/she is
assigned and which requirements shall be made known to
him/her at the time of his/her engagement.

1.d Regular Employee

A regular employee is one who has passed satisfactorily the

probationary period and is judged by the company to be capable
and fit to hold a regular position in the company’s organization.

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 A regular employee is placed in the regular payroll of the company
and is assigned to perform work directly connected with the regular
operation of the company.

Section 2- Classification of Employees

2.a Managerial

Employees under this qualification have regular access to

confidential management documents and matters and/or trade
secrets. They have authority to recommend the hiring, firing and
disciplining employees.

2.b Supervisory

Employees under this classification are the frontline managers or

staff who exercise supervisory authority over branch offices or
departments.

2.c Section Heads

Employees under this classification are those who exercise direct

supervision over rank and file employees and drivers.

2.d Rank & File/ Clerical

Under this classification are those employees assigned to handle

office clerical jobs.

2.e Rank & File/ Technical

Under this classification are those employees assigned in the

maintenance shops and various areas of operations performing
non-clerical jobs.

2.f Commission-paid Employees

Under this category are persons whose compensation is in the form

of commission or allowances.

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 Chapter 3- Work Period and Time Register

Section 1- Working Hours

Standard working hours of the company is from ___ AM to ___NN and

___PM to ___PM, Mondays thru Sundays. However, some departments and
personnel may have different working hours as may be decided by their
Department Head/ Supervisor.

The company may, however, change the prevailing working hours if, in its
judgment, it shall find such change or changes advisable or necessary, either as
a permanent or temporary measure, to meet the requirements of efficient
operations.

Section 2- Use of Time Register

All employees, except those occupying supervisory and higher

management positions are required to use time cards, to indicate in the time
register recorder their daily time record both for Time In and Time Out.

Section 3- Time In and Time Out Schedule

3.a The prescribed time cards or attendance sheet should be used for
registering time worked.

3.b Punching IN of time cards should be done at ___AM and ___PM.

Punching OUT of time cards should be done at ___ and ___PM,

but not later than ten (10) minutes after the employees’ regular time
out period.

3.c Those employees who normally stay and take their lunch in the
work areas or otherwise could not go home during lunch break
must punch their time cards OUT not later than ten (10) minutes
after the employee’s time OUT period and not earlier than fifteen
(15) minutes before the start of the scheduled time IN.

Only time cards with the time IN and OUT entries that conform with
the above will be processed for payroll.

3.d Employees who are required to use punch cards but are assigned
or are working at areas where there are no time register, he/she
should indicate in his/her own handwriting his/her daily time IN and
time OUT in the prescribed Daily Time Record. The time record
shall be checked, verified and approved by his/her immediate
Supervisor or Department Head.

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 3.e Where an employee for a valid reason, forgets or fails to enter in
his or her time card his or her time IN or OUT with the use of the
time register, he or she should make the correct entry approved by
his or her Department head or Supervisor on the same day. The
Department Head or Supervisor will indicate his approval by signing
his initial over the entry made in the employee’s own handwriting.

Section 4- Certification of the Card Entries

At the end of each payroll and after verifying the accuracy of entries
contained therein, the employee must certify to its correctness by signing his/her
name provided in the card.

The Time Card must be countersigned by the Department Head or

Supervisor concerned to signify his approval and to serve as an authorization for
the payroll-in-charge to compute the employee’s pay for a particular period based
on the time register entries appearing in his/her time card.

Section 5- Basis of Payroll Computation

5.a Payroll computation is based on effective time worked by an

employee during his/her official working hours. Make-up to recover
time lost on tardiness will not therefore be recognized in payroll
computations.

5.b The Payroll-in-charge is authorized to process an employee’s pay

only if the employee’s time card bears his/her signature and the
approval of his/her Department Head/ Supervisor.

5.c Any employee who is required to use time register but does not
submit a time card will not be included in the payroll for that period
until such time that he/she submits a properly accomplished time
card approved by his/her Superior/ Department Head.

5.d All wage/ salaried employees must observe the cut-off dates in the
submission of time cards. For branch-based employees, cut-off
dates are every ___ day and ___ day of the month.

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 Chapter 4- Attendance

Section 1- Punctuality

Your attendance and punctuality is ascertaining not only the Company

efficiency but enhances also the employee’s own personal growth and
advancement within the organization. Attendance record and your punctuality in
your daily report for work will be substantially considered in rating your efficiency
or performance on the job.

As such, the Company is extremely particular of your being at your place

of work and begins operations at the starting time. In all cases, promptness will
be considered a plus factor in an employee’s merit rating while frequent
absences and/or tardiness will be treated as a serious negative factor.

Section 2- Absences

An employee who cannot report to work for acceptable reasons must

make prior arrangements and permission with the immediate supervisor by filing
his leave of absence in advance.

For leaves of up to three (3) days, the same must be filed at least one (1)
day before the intended leave.

For leaves in excess of three (3) days, the same must be filed at least
three (3) days before the intended leave.

Chapter 5- Vacation Leave Policy

Section 1- Policy

The company grants vacation leave with pay so that its employees will
benefit mentally, physically and psychologically by a period of rest and relaxation
every year and because its employees deserve such a leave as their earned
privilege for their continuous and satisfactory service to the company.

Section 2- Details of the Policy

2.a To grant vacation leave of ___ days to regular managerial and

supervisory personnel and ___ days to regular section heads, rank
and file- technical/ clerical employees, after one year of completed
service reckoned from the date of probationary employment.

2.b When an employee becomes eligible for vacation as provided for in

the proceeding paragraph, the company shall determine the date

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 when the employee can take such vacation in the light of
operational conditions.

However, vacation leaves can be granted at times requested by the

employee, but the final right to schedule, grant and change the
same is reserved to the company.

2.c The Department Heads and Section Supervisors shall schedule the
vacation of their respective employees and submit the same to the
Human Resource Department not later than __________ of each
year.

Any change of schedule has to be recommended by the

Department Head concerned, approved by the Human Resources
Department and/or by the Resident Manager.

2.e The Department Head or the immediate superior of the employee

should see to it that proper turn-over of functions to the employee
who will take the place of the vacationing employee is done before
the employee leaves on vacation.

2.f Employee’s leaving on vacation may, upon request, be allowed to

draw their vacation pay in advance.

2.g Employee’s leaving on vacation must file their application for leave
at least five 95) days prior to the start of the employee’s vacation
leave.

2.h Employee’s may file at least five (5) days of their total vacation
leave credits.

2.i Employee’s who are celebrating their birthday on working days may
file a one (1) day birthday leave deducted to their total vacation
leave credits.

2.j Employee’s who failed to avail their vacation leave credits within a
year means forfeiture of the same.

2.k Vacation Leave may be used for emergency leaves as defined

below.

Emergency shall mean any unforeseen circumstances or resulting

state, or death that calls for the immediate absence of an
employee, such as flood, typhoon and fire that directly involves the
house or residence of the employee himself.

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 Emergency leave for reasons of death shall be confined only to
cases involving the immediate members of the family of the
employee up to the second (2nd) civil degree of consanguinity or
affinity.

While emergency leave for reasons of accident may be allowed if it

involves any member of the family of the employee up to the first
(1st) civil degree of consanguinity or affinity.

Chapter 6- Sick Leave Policy

Section 1- Policy

The Company shall permit the incurrence of sick leave with pay to all
eligible employees whose absence from work is required because of personal
illness or injury in accordance with the limitations and regulations outlined in the
succeeding section.

Section 2- Details of the Policy

2.a To grant sick leave of ____ days to regular managerial and

supervisory personnel and ___ days to regular section head, rank
and file- technical/ clerical employees, after one (1) year of
completed service reckoned from the date of probationary
employment.

2.b The sick leave with pay stipulated herein shall be granted for actual
illness or injury which, in all cases, must be certified by the
Physician. Provided further, that if the illness or injury of the
employee resulting in disability arises out of or in connection with
his/ her employment, the foregoing provision on Sick Leave with
Pay shall not apply but shall be covered by the provision of Title 11,
Book IV of the New Labor Code, specially the provisions of the
Employees Compensation Commission (ECC).

2.c It is required of the employee to notify his immediate superior or the

office about his illness at least during the first hour of work of the
day by telephone or he should send someone to personally notify
his immediate superior or the office of his predicament.

Sick leave availed more than two (2) consecutive days require the
employee to submit a medical certificate. Upon reporting back to
work, the employee is required immediately to accomplish the
Company Sick Leave Form.

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 2.d Unused sick leave credits as of December of the preceding year
are convertible to cash the following year. The schedule 0of
conversion shall be at the Company’s discretion.

Section 3- Hospitalization Guarantee

The Company shall issue guarantee for hospitalization expenses of a

regular employee and/or any member of his/her family up to the 1 st civil degree of
consanguinity or affinity up to an amount of _________ Pesos. Any guarantee in
excess thereof shall be subject to the Company’s discretion and approval.

Chapter 7- Overtime and Holiday Work

Section 1- Policy

Employees maybe required to work in excess of their normally assigned

schedule work hours whenever, in the opinion of the company, such overtime
work is necessary.

Section 2- Details of the Policy

2.a No employee shall render overtime, nor shall he/she be paid

therefore, unless such overtime shall, prior to the beginning thereof,
have been approved by his/her Department Head.

2.b Accomplished overtime slip must indicate the following:

a. Purpose of the overtime work

b. Date overtime rendered and estimated hours of overtime
requested
c. Actual time and number of hours of overtime rendered
d. Signature of the employee and approval of the Department
Head.

Only overtime slip having complied with the above data will be
computed and paid of overtime pay.

Section 3- Overtime Computation

The basic hourly rate of an employee is computed by dividing his/her

basic daily rate by eight (8) hours or by the number of his/her regularly scheduled
working hours in one day.

Section 4- Overtime and/or Holiday Premium Rate

4.a Overtime pay as distinguished from Premium Pay

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 Overtime Pay is additional compensation for work rendered by the
employee in excess of the normal eight (8) hours scheduled
working time whether rendered on a regular working day, rest day,
special and regular holidays.

While premium pay is an additional compensation for work

rendered on the first eight hours of work on rest day, special and
regular holidays.

4.b Employees who are required or permitted to work overtime shall be

paid in accordance with the provisions of the New Labor Code.

4.c Regular holidays as used herein, shall exclusively refer to the

following eleven (11) regular holidays prescribed by Republic Act
No. 9492, namely:

New Year’s Day -January 1

Holy Thursday -Movable date
Holy Friday -Movable date
Eidul Fitr -Movable date
Araw ng Kagitingan -April 9 or Monday nearest thereto
Labor Day -May 1 or Monday nearest thereto
Independence Day -June 12 or Monday nearest thereto
National Heroes Day -Last Sunday of August
Bonifacio Day -Nov. 30 or Monday nearest thereto
Christmas Day -Dec. 25
Rizal Day -Dec. 30 or Monday nearest thereto

And other days that may be declared through legislation or

Presidential Proclamation.

Chapter 8- Miscellaneous Provisions

Section1- Personnel Records

All personnel records shall be centrally kept at the HR Department. A

duplicate of these personnel records shall be kept in their respective departments
where the employee is assigned.

Section 2- Company ID

Upon reaching regular employment status, an employee shall be issued a

Company Identification Card.

Temporary company ID may be issued to non-regular employees.

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 In the event that an employee opts to resign from the Company or is
separated from service for whatever reasons, he or she is required to surrender
the Company ID card to the company through the Human Resource Department.

Section 3- Code of Conduct

All employees are expected to adhere to and abide by the rules of conduct
set by the Company. No one in the Company is above these rules. Courtesy is
to be observed at all times.

Respect for authority and protection of Company property is expected of

you. Actions that prove inimical to Company’s integrity and interests are never
allowed (i.e. theft, destruction of property, receiving or demanding money or in
kind for services or favors rendered.)

For further reference, please see the Schedule of Disciplinary Actions

stipulated in this manual for any infraction/ deviation committed against the
Company’s rules and regulations.

Section 4- Proper Attire

To promote the company’s image, an employee is expected to wear

proper attire and be well-groomed whenever reporting for work.

This way, you and the Company will attain the public’s healthy esteem.
Wearing of sleeveless shirts, slippers and short pants during office hours are
strictly prohibited.

Section 5- Office Decorum

5.a Station

Employees shall remain at their respective places of assignment

and shall not distract the attention of other employees from their
work by engaging in unnecessary conversations.

All work shall be done quietly. Misbehavior, boisterousness, and

use of profane language have no place in the company, loafing
around either inside or outside the Company’s premises during
working hours is strictly prohibited.

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 5.b Personal Matters

Attending to personal matters, during office hours is prohibited.

Employees should conduct their personal affairs outside of the
Company premises and not during working hours.

5.c Smoking

Smoking is absolutely disallowed within the company premises.

5.d Visitors

Receiving private visitors during working hours is not allowed

except for emergency reasons.

5.e Telephone Calls

Personal telephone calls, either incoming or outgoing, greatly

interferes with the business of the Company and is not to be made
except when absolutely essential. Telephone calls are to be
answered promptly. Upon lifting the phone, give your name and
Department. Converse in a low, modulated, courteous voice.
Transact whatever business or instructions briefly and accurately.

5.f Personal Business

Employees shall not sell merchandise of any kind, lottery,

sweepstakes and other tickets or engage in any form of personal
business during working hours.

5.g Contributions

There shall be no solicitation for voluntary contributions for any

purpose, except those specifically authorized by appropriate
officers.

Section 6- Health Sanitation

Each employee is required to observe the following health and sanitation

rules to protect and safeguard his own health and those of his fellow employees:

a. Proper Health rules should be observed with respect to the use of

handkerchief and cuspidors;
b. The comfort and sanitary facilities should be used properly and
maintained clean and in good order at all times;

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 c. All refuse and rubbish should be placed or thrown into the appropriate
containers;
d. A presentable and neat appearance of the office premises should be
kept at all times;
e. All employees are required to undergo physical and dental check-up
by the Doctor and Dentist, respectively, once a year. The HR
Department shall coordinate with the Department Heads in preparing
a schedule of employees’ visit to the doctor/ dentist for this annual
check-up.

Section 7- Paternity Leave

When your wife gives birth, the Company extends seven (7) days leave
with pay to regular employees as required under the law.

Section 8- Training and Development

The Company supports training of employees to keep them abreast of the

recent development in their profession and line of work. Local training covers
sending employees to seminars and symposia sponsored by respective
professional organization.

Section 9- Transfer of Financial or Property Accountability

When an officer or employee resigns or is transferred from one position to

another, a clearance must first be obtained from the HR Department before
leaving his position and assuming the new one. This clearance must contain a
complete statement of the financial and property accountability of the position he
is to leave, and the incoming officer or employee must duly acknowledge the
receipt of the same.

Section 10- Confidential Information

Every employee is expected to keep strict confidence all confidential

matters concerning the business and affairs of the company. He should refer to
his Department head, for reply, all questions addressed to him on such matters.

Section 11- Taking Company Properties Outside

Any office furniture/ equipment or office supplies to be taken out of the

Company building or for delivery to suppliers for repairs or to be returned for one
reason or another must be accompanied with a written authority slip duly signed
by the Department Head/ Supervisor.

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Section 12- Using up Old Forms

When changing forms, consideration must be given to the amount of stock

on hand, if possible, the change should be postponed until such stock is
exhausted.

Section1 3- Energy Conservation

The excessive use of electric current in an office is mostly due to the

improper handling of lights and electric machines. Lights should not be turned on
unless actually necessary. Electrical machines should not be left plugged.

The last employee to leave the office at the close of the day should see to
it that all lights and electric machines are turned off. Every employee should
endeavor to contribute to our national goal of reducing costly energy
consumption.

Section 14- Closing of Day’s Work

Each employee should arrange to have all computers, office equipment

and machines properly covered, and filing cabinets locked and cleared of papers.

Under no circumstances should letters, telegrams, and cables, documents

or other records e left on an unoccupied desk or a desk whose occupant is away
for the day.

Section 15- Reported Loss of Cash, Equipment and other Valuables

Any suspicion on the loss of cash, equipment and other valuables should
be reported immediately to the Supervisor/ Department Head who will take
proper steps to institute recovery of the lost articles. The employee who
discovered the loss should confirm the notice immediately in the form of written
report.

Section 16- Reporting of Articles Found

Articles of value found in the company premises should be turned over

promptly by the employee concerned to his Department Head, who shall take
steps to have the article returned to the rightful owner as soon as possible.

Section 17- Fire and Robbery

In case of fire or robbery in the premises of the Company, the first officer
or employee who notices it should at once give the necessary alarm and should
exercise efforts as far as circumstances would permit to save the loss or
destruction of company funds and properties.

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Section 18- Marriage, Childbirth, Change of Address

When an employee marries, he should give a written advice to the HR

Department so that this can be reflected in his employment records. The same
holds true every time an employee has an additional child/ dependent, changes
his address and telephone number.

Section 19- Issuance/ Releasing of Checks

Issuance of check payments will be every Thursdays and releasing of

checks will be every Fridays only Checks not issued on the said schedule will be
accommodated on the following week.

Section 20- Conference Room

The requisitioning department must file a request to use the conference

room one day before the schedule. Request form must be signed by the
requesting employee, recommended by the Supervisor/ Department Head and
approved by the Human Resource Department.

Section 21- Payroll Account

All probationary and regular employees’ payroll accounts are deposited in

the company’s authorized bank. As well as withdrawals of payrolls are thru
company’s authorized bank.

Section 22- Liquidation

All unliquidated travel advances, current and IOU’s must be liquidated

within three (3) days from release. Failure to liquidate the same will mean an
automatic charging of the whole amount to the employee’s personal account and
the schedule in personal account charges will apply.

An employee who can present legitimate invoices after the 3 rd day due to
sickness or official business for more than three days that hinders the employee
from reporting to the office as soon as he can is exempted.

Section 23- Employee’s Transactions

All requests, such as cash advances or any other needs or services that
the company is usually providing must be made by the employee himself, hence,
all offices must not entertain any request initiated by the employee’s wife or
children.

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 In case the employee cannot personally come to the office due to
exigency of work, on travel or assigned outside of base, he must give an
authorization letter to any member of his family to transact the said request for
and in his behalf, specifically indicating therein the nature of his request.

All requests shall be evaluated and approval shall rest upon the judgment
of the approving officer of the offices.

Section 24- Complaints, Gripes and Suggestions

Any employee is free to approach his immediate Supervisor on any matter

he may wish to seek confirmation, clarification or suggestion.

Chapter 9- Performance Appraisal Program

Section 1- Objective

The objective of a Performance Appraisal Program is to adopt a uniform

treatment and assessment of individual personnel based on defined criteria, by
rating system, so as to arrive at an objective and realistic evaluation of an
employee’s job performance. This evaluation will be used as basis for
management decisions on:

1.a The regularization of an employee in the present position.

1.b The transfer of an employee to another job that will suit his
capability.

1.c The awarding of merit pay increase to an employee for superior

performance demonstrated on his job.

1.d The promotion or upgrading of an employee to a higher position.

1.e The termination of an employee’s services for his consistent failure

to meet the requirements of the job assigned to him or for his lack
of potentials to handle any available job in the company.

Section 2- How to Accomplish Performance Appraisal

2.a The Performance Appraisal shall be accomplished in the prescribed

form by the immediate superior, who will be identified as Rater, on
all employees under his immediate or direct control and
supervision.

2.b Such appraisal will be accomplished at least once a year in the

case of annual evaluation, or every time an employee is considered

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 for regularization in his present position, for transfer to another
position, for promotion, for termination or for other purposes
required by management.

2.c From the Rater, the Performance Evaluation Form will be reviewed
and accomplished by the Department Head who will be identified
as the Endorser. The completed Performance Evaluation will then
be submitted for review to the Performance Evaluation and Review
Committee and then to the Chief Executive Officer for approval.

Section 3- Rating System

For the purpose of grading employees’ job performance, the rating system
designed by the Performance Appraisal Review Committee duly approved by the
Chief Executive Officer shall be adopted.

Section 4- Discussion with the Employee

The important part of this program is interview. It gives management the

opportunity to discuss ratings with the employees, to give the, advice, and to
suggest improvements on their weak points and all performance. Through
interviews, the employees are updated of their standing in the organization as
well as future advancement.

Section 5- Formulating Recommendation

5.a After the appraisal is discussed with the employee, the completed
forms should be forwarded by the Department Head for his review
and concurrence.

It is rather necessary that the employees should acknowledge on

the appraisal form that the same was discussed with him by his
supervisor, indicating the points discussed.

5.b On the basis of the rating and interview, the direct supervisor and/or
the Head should formulate his own recommendation for an
Employee’s development or whatever appropriate and necessary
actions needed.

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 Chapter 10- Separation, Employee
Resignation, Retirement and Death
Benefits

The Company hereby agrees to grant all regular employees the following
separation and retirement benefits:

Section 1- Separation Pay

1.1 Separation pay for rank and file employees

1.1.a For separation at the instance of the company or for

separation due to sickness- ___% or ___ month per year of
service.

1.1.b For voluntary resignation- ___% or ___ month salary for

every year of service.

1.1.c For termination from service with cause- None

1.2 Managerial, Supervisory and Section Heads

1.2.a For section heads, for separation at the instance of the

Company or for separation due to sickness- ___% of the
monthly salary per year of service.

1.2.b For supervisory, for separation at the instance of the

Company or for separation due to sickness- ___% of the
monthly salary for every year of service.

1.2.c For comptroller up to the president levels, for separation at

the instance of the Company or for separation due to
sickness- ___% of the monthly salary for every year of
service.

Section 2- Employee Resignation

2.1 Resignation Letter

Any employee who wishes to render resignation must submit his

resignation letter addressing it to his direct supervisor/ department
head with copy furnished to Human Resource Department, at least
one month before effectivity of his last working day.

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 Should the resignation letter be submitted less than the required
30-day notice and if employee stops working before the effectivity
of his resignation, the Company shall be entitled to damages.

2.1 Exit Interview

On the last working day of the resigning employee, he will be

requested to submit for exit interview by the Human Resources
Department.

Section 3- Retirement

3.1 Retirement Age

Upon reaching the age of 60 or 30 years of service, whichever

comes first, the company shall grant a retirement pay computed as
follows:

3.1.a For rank and file employees- a retirement pay equivalent to

___ moth pay salary per year of service or ___%.

3.1.b For Section Heads- a retirement pay equivalent to ___% of

the monthly salary per year of service.

3.1.c Supervisory personnel- a retirement pay equivalent to ___%

of the monthly salary per year of service.

3.1.d Comptroller up to President levels- a retirement pay

equivalent to ___% of the monthly salary per year of service.

Section 4- Death

4.1 Beneficiary

In the event of the death of the employee, he shall conclusively be

presumed to have appointed as beneficiary or beneficiaries, the
persons the following, in the order of preference:

a. Legitimate spouse and children

b. Grandchildren or parents of the employees

c. Brothers and sisters.

4.2 Death Benefits

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 The Company shall grant cash assistance to the family of the
employee to assist the family in the burial and other attendant
expenses, according to the following schedule:

Cause of Death

Employee’s Level Natural Work- Connected

a. Rank & File P ___________ P ____________

b. Section Heads P ___________ P ____________

c. Dept. Heads/ Managers P ___________ P ____________

d. Asst. Vice President P ___________ P ____________

e. Vice President P ___________ P ____________

f. President P ___________ P ____________

4.3 Donation for death of a family member

In the event of death of an immediate member of the family of the

regular employee, the Company shall grant the amount of
_______________ (P ________ ) as donation. Immediate family
members refer to: children and legitimate spouse of the married
regular employee and parents of a single unmarried employee.

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 Chapter 11- Discipline Penalty Chart

Section 1- Introduction

a. To promote consistency in the observance of work rules and

regulations

b. To outline Company’s position on Disciplinary Policies

c. The Discipline Penalty Chart provides supervisors handy reference

toward consistent and fair imposition of penalties on different kinds of
offenses.

d. Offenses not covered here shall be evaluated on a case-to-case

basis and will be handled with the same degree of consistency and
fairness as in the case presented hereof.

e. Existing laws and/or provisions of the Labor Code, which are in one
way or another contrary to this Disciplinary Penalty Chart, shall
govern.

f. Questions related to these matters shall be referred to and

entertained by the HR Department.

Section 2- Definition of Terms

a. Verbal Warning

Otherwise known as oral admonition, is an interview between the

supervisor and the employee regarding the employee’s conduct,
performance, or his failure to observe rules, regulations and
administrative instruction. It is intended to increase an employee’s
efficiency by effecting a change in his conduct, work attitudes and
habits.

b. Written Warning

It is imposed upon the employee for unruly and unbecoming conduct

depending upon the weight of the offense and/or its repeated
occurrence, the degree of which is such that verbal warning will not
suffice. The letter of written warning or the notice of Disciplinary
Action for such will contain:

1. Specific description of the misconduct or inadequate

performance, including time, date and circumstances.

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 2. A statement of past deficiencies or violations, if any.

3. A statement that the employee may reply in writing if he feels

the warning is unwarranted.

4. The specific rule or regulation being violated.

c. Suspension

Suspension is disciplinary leave without pay imposed on the employee

as a disciplinary measure. An employee may be suspended for
violation of a company rule or regulations, the degree of which is such
that verbal and written warning will not suffice or after verbal and
written warning, the employee goes on violating company rules.

d. Dismissal

Dismissal is the most severe type of adverse action. Before it is

initiated, the facts and circumstances in an individual case must be
carefully analyzed and must support the conclusion that the employee
has clearly demonstrated his unwillingness or refusal to conform to the
rules of conduct. Normally, progression of disciplinary measure will be
applied to rehabilitate an employee before determination is made to
dismiss him. However, certain violations are enough to warrant
dismissal for a first and second offense.

Section 3- Responsibilities

a. All supervisory and management personnel may initiate disciplinary

actions to any offending employee under his charge.

b. The supervisor is responsible for maintaining the discipline among

his employees and enforce all company rules and regulations in his
area.

b.1 Maintain a working atmosphere conducive to employee

management relations and deficient free work production.

b.2 Keep employees informed of the rules, regulations and

standard of conduct.
b.3 Take all possible steps to prevent situations which may lead
to disciplinary actions.

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 b.4 Gather and analyze all the facts and carefully consider
circumstances before taking disciplinary actions.

b.5 Constructively admonish employees individually and in

private whenever necessary.

c. Human Resource Department

Shall provide advice and assistance to supervisors and department

heads and employees on disciplinary actions. The HR Department will
ensure that the proposed disciplinary actions are consistent with law,
regulations, policy and company-wide practices.

Chapter 12- Omissions/ Infractions

A. Offenses and their Corresponding Penalties

Offenses 1st Offense 2nd Offense 3rd Offense

Minor Offense Verbal Reprimand Written Reprimand Suspension for 3
days/ Dismissal.
Thereafter,
suspension for 3
days, 5 days, 7
days, and
dismissal for each
further violations,
respectively
Moderate Offense Suspension for 5 Suspension for 10 Suspension for 15
days days days. Thereafter,
dismissal for the
next violation.
Major Offense Suspension for 15 Suspension for 15 Dismissal
days, Suspension days, Suspension
for 30 days OR for 45 days OR
Dismissal, Dismissal,
depending on the depending on the
gravity of the gravity of the
violation violation

B. Table of Offenses

I. Proper Conduct and Behavior

Minor Offenses

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1. Failure to accomplish and submit Daily Time Record
2. Tardiness
3. Failure to wear the prescribed uniform or attire while on duty.
4. Unauthorized absence from work place during scheduled work
hours.
5. Wasting time/loitering/loafing or sleeping during working hours.
6. Receiving personal visitors or making personal telephone calls
during working hours except for emergency reasons.
7. Entering the store premises outside of office hours without prior
authorization from the line supervisor or without justifiable reason.
8. Entering restricted areas without authority.
9. Failure to comply and maintain sanitation standards.
10. Taking part in any gambling, lottery or any other game of
chance.
11.Reporting for work while under the influence of liquor.
12. Drinking liquor within Company premises, except on
occasions and in locations authorized by the Company.
13. Distribution, viewing or reading pornographic materials, or
playing electronic games within Company premises.
14. Failure to maintain clean, personal hygiene and good
grooming.
15. Unauthorized use of cellular phone during work hours.
16. Failure to notify management of any change of address or
other changes in personal date within seven (7) days from its
occurrence.
17. Eating while on duty.
18. Bringing of strong/unpleasant smelling food or substances.

Moderate Offenses

1. Carelessness resulting to bodily harm and/or injury to co-

employees.
2. Insult, discourtesy, rudeness, or any act of unlawful aggression
to any co-employee or Company client within the Company
premises or during Company sponsored activities or occasions.
3. Absence without official leave, which is defined as failure to
notify one’s supervisor of inability to report for work within the
first thirty (30) minutes of the working day.
4. Malingering or feigning illness.
5. Threatening, intimidating or coercing other employees of the
Company, clients and other parties doing business with the

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 Company which may or may not adversely affect the
Company’s interest.
6. Fighting or attempting bodily harm on any person except in self-
defense while in the Company premises or while performing
work for the Company inside or outside the Company premises
or during Company sponsored activities or occasions.
7. Unauthorized use of Company facilities and supplies for
personal use or other purposes not in relation with the
Company’s official transaction.
8. Failure to observe Company safety rules and regulations.

Major Offenses.
1. Willful holding back, slowing down, hindering or limiting work
output.
2. Engaging in indecent, lewd and immoral acts while in the
Company premises or while performing work for the Company
inside or outside the premises or during Company-sponsored
activities or occasions, which can give occasion for scandal or
loss of confidence in the Company.
3. Causing grave physical, mental and emotional injury to any
employee of the Company within Company premises at any
time.
4. Malicious mischief resulting in injury to persons or destruction
of Company property or any other property for which the
Company may be held liable.
5. Inciting or participating in an illegal strike or disorder of any
kind.
6. Willful disrespect or insult to superiors.
7. Usurping or misrepresenting authority to Company officers that
may cause damage to the Company.
8. Rumor-mongering or circulating untrue or confidential
information affecting the interests of the Company, its directors,
stockholders, officers or employees.
9. Use or possession of prohibited drugs and paraphernalia,
improvised or otherwise.
10. Selling or inducing any employee or person to take prohibited
drugs.
11. Willful disobedience to the lawful orders of superiors in
connection with assigned duties and responsibilities.
12. Unauthorized use/possession of firearms or any
prohibited/deadly weapons/banned/hazardous objects within
Company premises or during Company-sponsored activities.

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 13. Failure to disclose actual or suspected violation of law,
regulation or Davao Helen’s Pawnshop Corporation’s ethical
standards.

II. Work Responsibilities

Minor Offenses

1. Negligence in the performance of assigned tasks or dereliction of

duty without loss of the Company or exposure to risk of loss.

Moderate Offenses

1. Attending to personal matters for gain during working hours.

2. Improper or incorrect use of equipment or its parts, or any form of
negligence which leads to damage or potential damage to said
property.
3. Putting up unauthorized posters, messages, propaganda on the
walls, bulleting boards, Company e-mail or similar places within
the Company premises.
4. Unauthorized removing of Company memos, posters from
Company bulletin boards.
5. Unwillingness to work overtime when required, whenever
demand for overtime work is sanctioned by law.
6. Abuse of, or acting in excess of one’s authority or discretion not
resulting in any loss or damage.
7. Failure to comply with the reportorial requirements of the
Company with government agencies involving payment of
penalty not exceeding P5,000.
8. Negligence in the performance of assigned tasks or dereliction of
duty resulting to loss to the Company in the amount not
exceeding P100,000.
9. Furnishing of incorrect or misleading data to employers or
persons duly authorized to ask, receive or secure such
information, as a consequence of the employee’s neglect or
failure to conduct the proper research, investigation or verification
of facts.
10. Requiring subordinates or co-employees to perform work for
personal interest during working hours.

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Major Offenses

1. Engaging in outside employment without the Company’s written

permission. The “outside employment” herein proscribed is the
employer-employee relationship between a Davao Helen’s
Pawnshop Corporation employee on the one hand, and an
employer other than Davao Helen’s Pawnshop Corporation, on
the other where such relationship is contemporaneous with the
employee’s employment with Davao Helen’s Pawnshop
Corporation, and the performed by such employee for the other
employer competes, or conflicts, or impairs or otherwise
adversely affects the performance of his official duties with
Davao Helen’s Pawnshop.
2. Demanding or accepting directly or indirectly money or anything
of value or any offer thereof consideration of any act or service in
relation to any Company transaction.
3. Unauthorized intervention in any matter pending with the
Company in which the employee, his spouse or any of his
relatives up to the 3rd degree of consanguinity or affinity, or his
friends has/have a direct interest and this fact has not been
previously disclosed and approved in accordance with the
provisions of this Code relating to Conflict of Interest.
4. Favoring or giving preference to transactions involving one’s
personal interest or that of one’s family, friends and relatives
within the 3rd degree of consanguinity or affinity to the prejudice
of the Company.
5. Negligence in the performance of one’s duty, or dereliction of
duty, resulting to loss to the Company in the amount exceeding
P100,000.
6. Gross negligence in the performance of one’s duty, or gross
dereliction of duty whether or not there is financial loss to the
Company.
7. Offering or receiving money or other valuable consideration in
exchange for a job, position or better working condition.
8. Conduction personal activities within the Company premises that
may impair, compete and conflict with the performance of his
official duties with the Company.
9. Engaging, directly or indirectly, in financial transactions as a
result of, or primarily relying upon insider information.
10. Having direct or indirect financial interest in businesses that
conflict or appear to conflict with his duties and responsibilities
as an employee of the Company.
11. Solicitation of personal business from clients.

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 12. Borrowing from any Company client or encouraging other
employees to borrow from any Company client.
13. Unauthorized disclosure/divulging of the Company’s secrets,
confidential information or matters.
14. Intentionally destroying, vandalizing, sabotaging or damaging
the Company’s property or any property for which the Company
may be held liable including equipment and/or devices.
15. Failure to comply with reportorial requirements of the Company
with government agencies involving payment of penalty in
excess of P5,000.
16. Failure to inform or advise higher authority or superior of any
inducement, instructions or order from an employee, a superior
or other high-ranking officer, or clients/suppliers/other parties to
commit any violation of Company’s rules, procedures, policies or
ethical standards, laws or regulations.
17. Unwillingness to a lawful and reasonable transfer to an assigned
branch.
18. Losing or misplacing Company records which cause prejudice to
the Company.
19. Dereliction of duty by an officer or supervisor who has
knowledge of the existence of a condition, situation or
circumstance which is, or could be prejudicial or detrimental to
the Company or that an offense will be committed, is being
committed or has been committed by his subordinates, or by
others in his area of responsibility, duty who did not take
preventive or corrective action either before, during or
immediately after the commission of the offense.
20. After having access to pertinent information, failure to report
immediately any loss or pilferage from which the Company has
suffered, or any fraud, deceit or other forms of dishonesty or
negligence.

Section 1- Definition of Terms

a. Work Attendance

An employee must be at his place of work and ready to work at the

starting time and will work until quitting time, except during authorized rest
periods (lunch time and coffee break).

The employee’s time card or time sheet shall be sufficient evidence of

employee’s tardiness provided the time card or time sheet is signed and
approved by the employee’s immediate superior.

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 a.1 Tardiness

Tardiness exceeding ___ minutes but not more than ___ shall be subject
to pay deductions.

Tardiness exceeding ___ will considered absence without pay.

a.2. Absences

To ensure efficient company operations, all employees are required to

report to work during their scheduled working days. As such, any employee who
may take a leave of absence for any compelling reasons outside of the
schedules of company provided vacation and sick leave benefits must file their
leave of absence in advance. Should an employee, for any compelling reasons,
intend to leave his work area for any period of time, he must ask prior
permission.

b. Neglect of Duty

An employee is hired because they are competent to perform their jobs

and he has the required requisite skills and knowledge to enable him to do so
and that he will do the work of the company with diligence and in a careful
manner.
Negligence is the absence of or failure to exercise slight care or diligence,
or the entire absence of care. It evinces a thoughtless disregard of consequence
without exerting any effort to avoid them.

c. Conduct and Behavior

Every employee shall conduct himself in a manner consistent with

decorum and good discipline.

d. Dishonesty, Loss of Confidence

The fraud must be committed against the employer or its representative

and in connection with the employee’s work. The act is a willful breach by the
employee of the trust reposed in him by his employer or duly authorized
representative.

e. Insubordination

It is the employer’s prerogative to prescribe reasonable rules and

regulations necessary or proper for the conduct of its business, to provide certain
disciplinary measures to implement said rules and to assure that the same be
complied with. The rules, orders, regulations or instructions must be reasonable

29
and lawful, sufficiently known to the employee and in connection with the duties
by which the employee has been engaged to discharge.

f. Conflict of Interest

Having any participation or involvement, direct or indirect, in any

transaction involving any person, firm, corporation or any business enterprise
with which the Company, directly or indirectly, has commercial relationship,
where such participation or involvement is of a nature detrimental to the
Company.

g. Use of Company Property

Operating, without previous authority, the special tools and equipment of

the company of which requires specialized skills or training to which the
employee has not been specifically assigned.

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