EMPLOYEES HANDBOOK

Personnel Policies and Benefits

1 Employees Status

1.1 Probation

Newly-hired employees are made to undergo a probationary period

of not more than six (6) months. A probationary employment contract
containing the terms and conditions of the engagement as well as the job
description is issued to the newly-hired employee. Likewise, said
employee is given an orientation with regard to the work standards of the
Company as well as his assigned duties and responsibilities.

1.2 Regular Appointment

Prior to or at the end of the probationary period, the employee will

be issued a regular appointment by the Company if he has performed
satisfactorily and has passed the Company’s requirements for a regular
appointment.

All regular employees who have served the required period for
entitlement as maybe specified are eligible for the benefits prescribed in
this Section.

1.3 Transfer To Another Position

Temporary transfer to another position of the same level as higher

than the current position may be initiated by the Company, if needed by
the exigencies of its operations. Permanent transfer may also be

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considered at the instance of the Company or if requested by the
employee based on the following conditions:

a. The Position where the employee wishes to be transferred is

vacant;
b. He is qualified for the position; and
c. He is acceptable to the department where he wishes to transferred.

1.4 Promotion

All promotions within the Company are within the discretion of the
Management, and the Company reserves its right to engage the services
of any new employee for any position regardless of the tenure of
employees already employed within the Company.

In the event of promotions within the Company, the employee shall

be given an offer of promotion in writing, stating the terms and conditions
of the employees new designation. Acceptance of the offer in writing
should be made within one (1) week from the first day the higher position
was formally offered. Acceptance of this offer by the employee shall
supercede any and all previous agreements between the Company.

Where no acceptance is made within the prescribed period, the

offer may be made to another qualified employee. However, if the
Company determines that the exigencies of the operations and the best
interest of the entire Company requires it, a lateral hire from outside the
Company may be made.

An employee who applies for a higher position shall, if deemed

necessary, undergo a maximum probationary period of three (3) months
with no extension. If he fails, he shall revert to his former position.

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 An employee who is temporary transferred to a higher position or is
required to discharge temporarily the duties and responsibilities pertaining
to that higher position is not entitled to a promotion or adjustment in salary.
However, exceptional performance may, at the discretion of the Company,
be rewarded with a bonus or an allowance may be given during the
temporary assignment.

1.5 Resignation

a. Notice of Resignation
The Company requires thirty (30) days written notice in advance
from any employee who intends to resign. Should there be no
compliance with the notice requirement, the employee may be
considered terminated for cause on the ground of abandonment
instead of resigned. Terminal leaves are not granted as a matter of
policy because it renders the notice requirement migatory and
meaningless. Such leaves need the approval of the Company.

b. Clearance
To be cleared of any accountability with the Company, the resigning
employee shall:
i) turn-in to the Assistance Finance Manager all items and
supplies issued to him for his use while in the Company’s
employ, such as:
1. Keys to drawers, lockers and office equipment;
2. Unused office supplies;
3. Staff Manual;
4. Office ID;
5. Working papers and correspondence files
ii) return all books borrowed from the Library; and

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 iii) settle any outstanding account with the Company

After all the above matters have been settled, the employee will be
issued his clearance papers, and will receive his last pay, together with his
earned but unavailed leaves and proportionate 13 th month pay (net of his
dummy salary at the time he was hired and net of all his advances/loans),
if any. If his loans or advances are more than the amount due him, no
clearance will be issued until he settles his outstanding accounts. A
promissory note may be required to be submitted by the resigning
employee together with a collateral if deemed necessary.

2. Compensation and Other Employee Benefits

2.1 Salaries

Salaries are paid semi-monthly (15th and 30th of each month).

Employee’s net pay is directly credited to his account with the bank where
the Company has a payroll account.

The employee’s pay may be withdrawn on the banking day

coinciding with the payroll date. However, before any savings or current
account withdrawal is made, the employee should get his payslip, which
shows the amount of net pay credited to his account, from the payroll
clerk.

All savings and current accounts are subjected to regular banking

regulations.

2.2 Computation of Salaries

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 Actual hours worked by the employee for a particular pay period is
computed based on the entries in his time card after review and upon
approval by the Personnel Officer.

2.3. Bonuses

the Company gives the following bonuses:

2.3.1. 13th Month Pay

A 13th Month Pay is given by the Company towards the end

of the year as prescribed by PD 851. Pursuant to the law, this
benefit is one-twelfth (1/12) of the employee’s salary for the year.
An employee shall not be entitled to a 13 th month pay unless he has
served the Company for at least one (1) month during the
applicable year.

3. Leaves

3.1. Leave Credits

The leave credits of each employee are stated in their employment

contract. These leave credits are to be used in any manner as the
employee sees fit (i.e. vacation or sick leave) and are earned on a year-to-
year basis. Unearned leaves cannot be taken in advance. No more than
five (5) leave credits may be carried over to the next year.

In addition, unused leaves cannot be converted into its cash

equivalent. However, in cases where the Company would require an
employee to forego a scheduled leaves, the employee shall be paid the
cash value of such leave, unless the same is rescheduled and taken

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within the year. The employee who has been required by the Company to
forego a scheduled leave shall submit the form provided therefore
indicating therein the rescheduled leave to the Company for approval.

Not later than one month before their intended leave date, all
employees desiring to avail of their leave credits are required to submit
their proposed schedules of leave to the Personnel Officer who shall
review the same in order to avoid overlapping of leaves and to see it that
the operations of the Company are not affected. Thereafter, the summary
of the proposed schedules of leave is submitted to the Company for
approval. The employee shall be informed if his/her leave is approved.

Any unexcused absence incurred outside the scheduled leave will

be treated as absence without official leave (AWOL) and the
corresponding salary deduction and penalty shall be imposed.

An employee who absents himself with or without prior notification

cannot assume that simply on his say so, the absence is automatically
charged against his leave credits. The Company shall exercise its
discretion to consider the absence as chargeable to leave credits,
excused absence but not chargeable to leave credits, or unexcused
absence (AWOL) depending on the justification.

Even with prior verbal notice, a written justification must be

submitted to Personnel within forty-eight (48) hours after the employee
reports back to work, otherwise the employee shall be considered as
having waived his right to be heard. In such event the absence shall be
considered AWOL.

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3.3. Maternity Leave

Any pregnant female employee who has rendered an aggregate

service of at least six (6) months for the last twelve (12) months
immediately preceding the expected date of delivery or complete abortion
or miscarriage, shall be entitled to maternity leave.

3.3.1. In case of delivery

The employee shall receive the SSS Maternity Benefit

before she goes on maternity leave. Such benefit shall not be
considered as cash advances for internal purposes but shall be the
Company’s compliance with the SSS requirement. Therefore, this
shall not be deducted from the employee’s salary. During her
maternity leave, she shall continue to receive her compensation.

Upon reporting back for work, the employee must submit to

Personnel a copy of the birth certificate of the child and the
operating room record (for caesarian operation) to enable the
Company to claim reimbursement from the SSS. Should the
employee fail to comply with the requirements resulting in the
Company’s failure to claim for reimbursement, the amount
equivalent to the SSS Maternity Benefit shall be deducted from the
employee’s pay.

3.3.2. In case of abortion/miscarriage

The employee shall receive the SSS Maternity Benefit upon

approval by the SSS of the Sickness Notification Form. This SSS
Maternity Benefit shall not be considered a cash advance for
internal purposes but shall be the Company’s compliance with the

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 SSS requirement. Therefore, this shall not be deducted from the
employee’s salary. During her maternity leave, she shall continue
to receive her compensation. Only one (1) abortion per year shall
be considered under this benefit. The employee shall submit a
medical certificate and the operating room record to enable the
Company to claim reimbursement from the SSS. The SSS
Maternity Benefit shall be deducted from the employee’s salary for
succeeding abortions within the year or if the employee fails to
submit her medical records.

3.3.3 In case of reporting for work before the expiration

of the maternity leave

As a general rule, no employee shall be allowed to report

back for work prior to the exhaustion of her maternity leave.
However, should the exigencies of the service require the recall of
an employee from her maternity leave, the employee must submit
to Personnel a certification from her OB-Gyne that she is fit to work.
In this case, the Company shall give its written approval for the
recall.

The employee who is required to report for work earlier than

the expiration of her maternity leave shall be paid her salary for the
actual work performed in addition to the salary pertaining to her
maternity leave.

3.4. Emergency Leave

In case an employee is unable to report for work for emergency

reasons including, among others, sudden illness, he is not only required to
call the Company, but in addition, he must advise the Company of:

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 a. his pending work;
b. location of papers, documents and other materials that he is
handling; and
c. any verbal instructions previously conveyed to him by his
superior/s.

Emergency leave shall be charged to the employee’s leave credits, if any,

otherwise, the same shall be without pay.

Before or immediately after going on emergency leave, the employee is

required to submit to the Company a written excuse indicating therein with
sufficient particularity the reason for the emergency leave. When the employee
has a record of excessive absences, or the alleged reason appears doubtful, the
Company can inquire into, and assess the validity of the reason to determine
whether or not the employee should be excused.

3.5. Absences Without Official Leave (AWOL)

Since absences result in the disruption of work and unscheduled re-

assignment of personnel, all employees must report for work every working day.
Disciplinary action shall be imposed upon anyone found guilty of excessive
unauthorized or unexcused absences.

Unauthorized or unexcused absence refers to:

a. Failure of employee to report for work on any working day without prior
approval of the Company;

b. Undertiming without prior approval of the Company;

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 c. Failure to return to work after expiration of authorized leave of
absence;

d. Failure to submit the prescribed form on absence/emergency leave to

the Personnel.

e. Misrepresentation of the reason for the absence;

f. Where the Personnel Officer has determined that the reason for the
leave is insufficient or baseless.

Unauthorized or unexcused absence cannot be applied against unused

leave credits and is automatically deducted from the employee’s pay. This is
apart from the imposition of disciplinary action on the employee.

The following schedule of penalties shall be applied for any unauthorized

or unexcused absence committed within a period of one (1) year:

Category “A” Offense Penalty

(Cumulative but non-consecutive absences)

1st Offense (1 absence) No penalty

2nd Offense (2 absences) 1st Written Warning
3rd Offense (3 absences) 2nd Written Warning
4th Offense (4 absences) 5 days Suspension
5th Offense (5 absences) 10 days Suspension
6th Offense (6 or more absences) DISMISSAL
Category “B” Offense Penalty

(Cumulative but consecutive absences)

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1st Offense (2 absences) 5 days Suspension
nd
2 Offense (3-5 absences) 10 days Suspension
3rd Offense (6 or more absences) DISMISSAL

3.8 Medical and Dental Benefits

Likewise, all employees are covered by sickness and hospitalization

benefits under the Social Security Act, the Philippine Medical Care Act and the
State Insurance Fund. The Company shall assist the employee in availing
themselves of the benefits under these laws.

3.9 Training/Seminars

Employees may on certain occasions be required to attend training/seminars

which will improve the quality of their performance and service to the Company. The

cost of the seminar shall be shouldered by the Company. An employee may be

excused from attending the training/seminar only when a prior written request therefore

is made by the employee concerned provided a good justification is given and the

Company approves the same. The employee attending the seminar should give a

report of what he has learned and determine ways to impart to colleagues the new

ideas which could be of use for added service to the Company.

4. Work Schedule

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4.1. Regular Working Days and Hours

The Company follows an 8-hour work schedule from Mondays to Fridays.

All employees must observe his official time schedule as approved by the

Company. Any request for change in such official time schedule shall be done in

writing with the clearance of the Company.

4.2 Work Suspension

In the event work has to be suspended due to floods, typhoons and similar

calamities, the following rules shall apply:

a. Only announcements or declarations from the Company, the Office of the

President or Malacañang shall be recognized as official.

b. If the announcement suspending work is issued the day before, or before the

start of office hours, the employee who does not report for work shall be

excused and paid his regular rate chargeable against his accrued or future

leave credits pursuant to Policy Instructions No. 16 of the Department of

Labor and Employment (DOLE).

c. If the employee has already reported for work and the announcement

suspending work is made before or during office hours, the employee who

goes home after the announcement shall be excused and paid his regular

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 rate chargeable against his accrued or future leave credits pursuant to Policy

Instructions No. 16 of the DOLE.

d. If an employee is specifically requested to work after the announcement

was made, his pay shall be as follows:

i. for work that is less than eight (8) hours – regular rate plus 25%

premium pay pursuant to Policy Instructions No. 16 of the DOLE;

ii. for work rendered beyond eight (8) hours – regular rate plus 25%

premium pay and regular overtime rate.

An employee who is requested to work must be authorized by the

Company, otherwise, he will not receive the above pay.

e. If an employee reports for work after the announcement is issued and he

is requested to stay on and work, his tardiness up to the time of

announcement will be excused subject however to pay deduction. His pay

for the time thereafter shall be in accordance with the preceding

provisions.

4.3 Tardiness

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 All employees are required to report for work on time. An employee is

considered tardy if he reports after ten (10) minutes had elapsed from his official

starting time of returns late to his work station after coffee/lunch breaks.

However, if an employee is required by the Company to be at a specific place

outside the office prior to his official starting time, he is not considered tardy. A

written explanation must be submitted to the Company who shall determine

whether the reason is valid or not. When the reason is determined not valid, the

tardiness shall be considered unexcused.

An employee is allowed only twenty (20) excused tardiness a year.

Tardiness in excess of twenty (20), even if excused, shows a lack of interest in

one’s work or gross negligence, under Article 282 (B) of the Labor Code, gross

and habitual negligence of an employee’s duties is a just cause for dismissal.

For every excused or unexcused tardiness incurred by the employee, a

corresponding salary deduction shall be made equivalent to the actual time

covered by the excused/unexcused tardiness. This is simply based on the

principle of “no work”, “no pay”. Apart from this, the following schedule of

penalties shall apply to unexcused tardiness incurred during one year period.

Offense (No. of Tardiness) Penalty

1st Offense Written reminder

2nd Offense Written warning

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3rd Offense 2nd Written warning

4th Offense 3rd Written warning

5th-9th Offense 1 Day Suspension per offense

10th-14th Offense 2 Days Suspension per offense

15th-19th Offense 5 Days Suspension per offense

20th Offense DISMISSAL

Tardiness cannot be compensated or offset with overtime work.

In computing the number of tardiness incurred by the employee for the

purpose of imposing the graduated penalties, the reckoning period shall be the

first working day of the calendar year.

No penalty of dismissal shall be imposed upon any employee without first

giving him the opportunity to be heard.

4.5 Undertime

Undertime will not be considered as tardiness and/or AWOL only under

the following conditions:

a. When the employee calls up the Company before his official time in the

morning and subsequently submits a written explanation immediately

upon such employee’s arrival.

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 b. When the employee’s reason has been determined by the Personnel

Officer to be valid and justifiable.

c. His time card is initialed by the supervisor or the Personnel Officer, as the

case may be.

4.6 Overtime

An employee may be required by the Company to render overtime work

from time to time. Where overtime work has been rendered, the employee

should fill up an overtime request form to be signed by Company.

For purposes of the computing the equivalent daily and hourly rates of the

employees, the following formulas shall be used:

Monthly Rate x 12

274 days = daily rate

Daily Rate

8 hours = hourly rate

The overtime rates are, as follows:

a. Work beyond 8 hours from Mondays to 1.25%

Fridays and beyond 4 hours on Saturdays

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b. First 8 hours of work on Sundays 1.30%
c. Work beyond 8 hours on Sundays 1.69%
d. First 8 hours of work on special holidays 1.30%
e. Work beyond 8 hours on special holidays 1.69%
f. First 8 hours of work on legal holidays 2.00%
g. Work beyond 8 hours on legal holidays 2.60%
h. First 8 hours of work on legal holidays falling 2.60%

on a Sunday
5 Evaluation of Employee’s Performance

It is the policy of the Company to give merit increases to employees in order that

the Company may reward deserving employees for their meritorious performance.

An increase in salary will be granted in accordance with the following policies:

a. It is discretionary on the part of the Company whether to grant merit increases

in any given year or any period of time.

b. A merit increase is based solely on the meritorious performance of a

particular employee ascertained by the Company taking into consideration,

among others, the results of a formal evaluation and the recommendation of

the Company. Giving merit increases is not mandatory on the Company nor

is it automatically granted on the basis of length of service.

6. Rules on Discipline

6.1 Orderliness

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 All employees are expected to maintain the office in a clean and orderly

condition. Deliberate destruction of or negligence in caring for office equipments

shall be penalized accordingly.

6.2 Decorum

All employees should conduct themselves with utmost courtesy and

respect in regard to their superiors, clients and guests of the Company.

Likewise, each employee should treat all other employees with respect and they

must help and cooperate with each other. Teamwork is imperative to the

Company and all employees are expected to be able to work as professional

teams at all times.

6.3 Personal Calls

Incoming/outgoing personal calls except emergency calls are disallowed.

Likewise, personal inter-office calls are not allowed. “Telebabad” is prohibited.

6.4 Personal Visits

Occasions may arise when relatives or friends may want to visit an

employee during office hours. Unless an emergency is involved, personal

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visitors should be entertained during coffee or lunch break with Company

approval.

6.5 Policy on Dishonesty

Anyone who commits an act of dishonesty against the Company shall be

dismissed.

Specific acts which are considered dishonest shall include, but not limited,

to the following:

a. Dishonesty in time-logging;

b. falsification of time reports (particularly on overtime), petty cash vouchers

and/or other documents;

c. tampering of receipts or invoices;

d. charging overtime pay when in fact the employee did not do any overtime

or any other office-related work;

e. misrepresentation such as seeking reimbursement on fictitious payments

to third persons;

f. misappropriation of funds/assets of the Company, clients, and/or co-

employees;

g. “moonlighting”;

h. misstatement of reasons for tardiness/undertime/absences;

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 i. unauthorized disclosure of client’s affairs and records; the Company

information, files and records;

j. unauthorized taking out of the Company books, records, files and

documents; client’s records, files and documents.

An employee suspected of an act of dishonesty shall be duly notified of his

offense and the specific acts constituting the same and required to submit a written

explanation to the Company within seventy-two (72) hours from receipt of notice. If he

so desires, he may appear before an investigating panel to be formed by the Company;

otherwise, a decision shall be rendered on the basis of his written explanation.

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