PART I

EMPLOYMENT PROCESSES

HIRING & SELECTION

A) EMPLOYMENT CLASSIFICATION

The Company hires employees depending on the job requirements and working arrangement, as
indicated below:

1. PROBATIONARY EMPLOYMENT. An employee who is hired for a regular position shall

undergo a probationary period of not more than six (6) months, during which time their
work performance and other employment considerations shall be assessed and, on the basis
of satisfactory performance, shall be made regular employees. 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.

2. REGULAR EMPLOYMENT. Prior to or at the end of the probationary period, an employee

who successfully met the standards and other employment considerations and who passed
the probationary status, is appointed regular employee of the Company

3. CONTRACTUAL / TEMPORARY EMPLOYMENT. An employees contracted by the

Company to render special services for a specified period of time such as relieving an
employee on maternity leave, hiring temporary personnel during peak seasons.

B) MANPOWER REQUESTS

It shall be the policy of the Company that all hiring shall require an approval from the Management
to ensure that all hiring are part of the Table of Organization/Organizational Chart and of the
approved budget for the year.

C) INTERNAL JOB POSTING

The Company may conduct internal job posting procedures to give chance to its existing
employees to signify interest and apply for vacant position before resorting to external hiring for
the required cases.

It shall be Management’s prerogative to determine qualifications and suitability of internal job

candidates/applicants to its existing positions. Management retains the right to directly hire from
outside the company if it deems that nobody from the company qualifies for its existing vacancies.

D) HIRING PROCESS

The Company shall undertake recruitment processes to properly identify and tap the best possible
candidate for its existing vacancies.

E) PRE-EMPLOYMENT REQUIREMENTS
Job candidates, who shall be considered for hiring, shall be requested to submit pre-employment
requirements in order to:

1. To assure the candidate’s identity.

2. To determine the employee’s character and ensure that he/she has no criminal records or
pending criminal case.

3. To determine past records with previous employers

The list of pre-employment requirements shall be provided on or before the joining date of the
newly-hired employee. The newly-hired employee is given thirty (30) days to complete the
requirements. Failure to do so may result to non-regularization of his/her employment.

F) EMPLOYMENT VERIFICATION & BACKGROUND CHECKING

The Company may conduct employment verification with the newly-hired employee’s previous
employer to ensure accuracy of information provided such as position, salary information, duration
of employment, reasons for leaving, records of past performance and to check if the employee left
the company with good records.

G) PERFORMANCE APPRAISAL REVIEW DURING PROBATIONARY PERIOD

A newly-hired employee shall undergo a maximum of six (6) months probationary period during
which time progress of the employee’s performance shall be reviewed and assessed every two (2)
months. The employee shall be given the results of his/her performance evaluation within three
(3) days from the date of evaluation.

H) REGULARIZATION

An employee who successfully passes the probationary period shall qualify for regularization.

A regular employee shall be entitled to company benefits, subject to entitlement requirements of

specific benefits.

PERSONNEL MOVEMENT

A) TRANSFER OF EMPLOYEES

Management reserves the right to temporarily transfer an employee to other positions,

departments, offices or areas of operations that it deems most beneficial to the company or if
needed by the exigencies of its operations, provided there is no demotion in rank or diminution of
salary or benefits. Thus, transfer to another position of the same level or higher than the current
position may be initiated by the Company.

An employee, who is temporarily 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 nor to an 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.

In principle, a transfer cannot be disobeyed by the employee as it may be used as insubordination

(disobeying a lawful order of the employer) and can be a ground for termination. This is the
difference between a promotion and a transfer, a promotion can be refused by the employee but a
transfer must be followed.

Permanent transfer to another position may also be at the instance and upon the request of the
employee subject, however, to the following considerations:

1. The position where the employee wishes to be transferred is vacant;

2. The employee is qualified for the position; and
3. The employee is acceptable to the department/ division where he/she wishes to be
transferred.

In cases of transfers initiated by the Management, the reason and need for the transfer shall be
explained fully to the employee affected.

B) JOB ROTATION

The Company may engage its employees into job rotation program to make for well-rounded
knowledge and skills of employees in line with its succession planning programs.

C) PROMOTION

As part of the Company’s developmental plan, deserving employees are given the opportunities to
grow with the Company and occupy higher positions.

All promotions within the Company are subject to the discretion of the Management.

The Company reserves its right to engage the services of any new employee for any position
regardless of the tenure of the employees already employed within the Company.

In the event of promotion within the Company, though, the employee shall be given an offer of
promotion in writing, stating the terms and conditions of the employee’s 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 supersede
any and all previous agreements between the Company and employee.

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.

Alternatively, 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.

TERMINATION OF EMPLOYMENT

A) RESIGNATION
An employee who wishes to resign from the Company shall be required to file a resignation letter
addressed to his/her immediate supervisor, copy furnished HRD, stating therein the reason for
resignation, which shall take effect at least thirty (30) days upon filing. This is to allow the
company sufficient processing time to recruit and train a suitable replacement for the position. In
the event the employee fails to render the notice period, the employee is liable to pay the
damages in the amount of fifty thousand Philippine Pesos (PhP50000). Management, however,
reserves the right to shorten/extend the notice as it deems appropriate.

Terminal leaves are not granted as a matter of policy because it renders the notice requirement
nugatory and meaningless. Thus, an employee serving the notice period, will not be allowed to go
on leave except for medical emergency situations. In such case, the employee will be required to
submit relevant supporting documents which will be subject to validation .An employee who
remains on leave without authorization for three or more days while serving notice period will be
considered as AWOL and will be subject to applicable disciplinary action.

In most cases, the last working day and the separation date are one and the same. However, there
may be cases when the last working day is different from the separation date. This happens when
the end of the notice period of the employee falls on his/her rest day. In such cases, last working
day refers to the last day the employee is paid his daily rate (basic pay + allowances, etc.) while
separation date refers to the date the employee is no longer an employee of the company in which
case, his/her other benefits shall also be ceased.

An employee who resigned from work shall turn over all property and monetary accountabilities
with the HRD. Likewise, he/she shall be required to accomplish the clearance form, which can be
secured from HRD.

To be cleared of any accountability with the Company, the resigning employee shall:

i) turn-in to HRD all items and supplies issued to him/her for his/her use while in the
Company’s employ, such as:
1. Keys to drawers, lockers and office equipment;
2. Unused office supplies;
3. Employee Handbook;
4. Office ID;
5. Working papers and correspondence files;
ii) return all other Company property; and
iii) settle any outstanding account with the Company.

Processing of clearance will have to be undertaken by the employee on or before the effectivity of
his resignation.

After all the above matters have been settled, the employee will be issued his/her clearance
papers, and will receive his/her last pay, together with his/her earned but un-availed leaves and
proportionate 13th month pay (net of all his/her 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.

B) TERMINATION FOR JUST CAUSE

In accordance with the law, the Company may terminate the employment of an employee on the
following grounds:
 1. Serious misconduct or Willful disobedience by the employee of the lawful orders of
his/her employer or representative in connection with his/her work;
2. Gross and Habitual Neglect by the employee of his/her duties;
3. Fraud or willful breach by the employee of the trust reposed in him/her by his/her
employer or duly authorized representative;
4. Commission of a crime or offense by the employee against the person of his/her
employer or any immediate member of his/her family or his/her duly-authorized
representative;
5. Violation of the provisions of this Handbook; and
6. Other causes analogous to the foregoing.

In addition, a probationary employee can also be terminated due to his/her failure to qualify in
accordance with the standards of the Company made known to the employee at the time of his/her
engagement.

The Company adheres to the procedure to be observed in cases of termination for just cause,
consistent with its Code of Discipline, as discussed here under:

1. Notice to the Employee to Show Cause

A written notice must be served upon the employee specifying the ground/s for his termination
and providing the employee a period of at least two (2) days but not exceeding seven (7) days
within which the employee can explain his/her side.

2. Hearing and/or Conference

The Company shall schedule a hearing/conference within five (5) days from its receipt of the
employee’s written explanation. During the hearing/ conference, the employee concerned, with
his/her legal counsel, if he/she so desires, is given an opportunity to respond to the charge,
elaborate and/or clarify matters he/she raised in his/her written explanation and to present his/her
evidence or rebut the evidence against him/her. The Company is also given the opportunity to
make clarificatory questions during the hearing.

3. Notice of Termination of the Employee

Within forty eight (48) hours from the conduct of the hearing, a written notice shall then be served
to the employee indicating that, upon due consideration of all the circumstances, grounds have
been established to justify the sanction indicated or the termination of his employment. The
termination shall take effect within ten (10) days from receipt of the termination notice by the
employee concerned.

An employee who is terminated for just causes from work shall turn over all property and
monetary accountabilities with the HRD on the day the termination is served. Likewise, he/she
shall be required to accomplish the clearance form, which can be secured from HRD. Processing
of clearance will have to be undertaken by the employee on the effectivity of his/her termination.
All compensation and benefits due to the employee shall only be released once the employee has
been cleared from all property and monetary accountabilities with the company.
 C) RETIREMENT

Retirement is a type of separation wherein an employee, upon reaching the retirement age as
defined by the local labor law, retires from the Company.

Under Article 287 of the Labor Code, as amended by RA 7641, the compulsory retirement age is
set at 65 years old while the optional retirement age is 60 provided that the employee has
rendered at least 5 years of service in the Company.

An employee who has retired is entitled to a retirement pay equivalent to at least one-half (1/2)
month salary for every year of service, a fraction of at least six (6) months being considered as
one whole year.

D) DEATH OF AN EMPLOYEE

Separation upon death occurs in the unfortunate event of an employee’s demise while in the
services of the company.

In case of death of employee, the HRD should be notified of such incident, who will then undertake
the necessary actions to assist the family of said employee. Proceeds of all benefits entitlement,
including last salary shall be paid to the legal beneficiaries of the former employee, upon
submission of the necessary documents such as death certificate, marriage contract, etc.

E) TERMINATION FOR AUTHORIZED CAUSES

Termination for authorized causes is a type of separation initiated by the company due to
redundancy, retrenchment, installation of labor-saving devices, business cessation, or due to an
employee’s disease whose continued employment is prohibited by law or prejudicial to the
employee’s health as well as the health of other employees.

Termination for authorized causes requires the Company to provide a written notice to the
employee and to the appropriate Regional Office of the Department of Labor and Employment
(DOLE) at least thirty (30) days before the effectivity of the termination specifying the ground(s)
for termination.

In cases of installation of labor-saving devices or redundancy, the employee is entitled to receive

the equivalent of one (1) month pay or one (1) month for every year of service, whichever is
higher.

In cases of retrenchment, business cessation or due to an employee’s disease whose continued

employment is prohibited by law or prejudicial to the employee’s health as well as the health of
other employees, the employee is entitled to receive the equivalent of one (1) month pay or one-
half (1/2) month pay for every year of service, whichever is higher.

An employee serving the notice period under this type of separation, will be allowed to go utilize
their vacation leave credits to provide them opportunities to find another organization. Sick leave
credits cannot be utilized for the same reason.

An employee who is terminated from this type of separation shall turn over all property and
monetary accountabilities with the HRD on the effectivity of their termination. Likewise, he/she
shall be required to accomplish the clearance form, which can be secured from HRD. Processing
of clearance will have to be undertaken by the employee on or before the effectivity of his
termination. All compensation and benefits due to the employee, including the required separation
pay, shall only be released once the employee has been cleared from all property and monetary
accountabilities with the company.

PART II

HOURS OF WORK

A) OFFICIAL WORKING DAYS AND HOURS

1.1 The Company follows a six (6) day working week which may include Saturday and/or Sunday,
subject to at least one (1) rest days being provided to the employees in a span of seven (7) days

The working hours are defined as eight (8) hours per day.

The working hours exclude the one hour break for lunch which is provided every day.

An employee may be required to render additional hours of work on rest days or holidays, at the
discretion of the Management. The employee required to do so shall be entitled to premium pay
and/or holiday pay in accordance with the rates as provided by the Labor Code of the Philippines.

Work schedule and timings may vary across the company, and all employees are expected to
adhere to their work schedule/ shift defined for their respective team.

1.2 For the drivers they have six (6) working days in a week which may include Saturday and/or
Sunday, subject to at least one (1) rest days being provided to the employees in a span of seven
(7) days.

The working hours are defined as twelve (12) hours per day.

The working hours may include the one hour break for lunch which is provided every day.

B) ATTENDANCE POLICIES

The Company expects its employees to report for work on time in accordance with their official
working schedule.

Further, the Company adopts the flexible work policy as a means to facilitate a supportive and
productive work environment that is responsive to the changing professional and personal needs
of the workforce. This arrangement provides alternative work options to all employees of the
Company, regardless of classification, for when they do business. The core business hours
defined above is from:

For admin and Receptionist: 9am to 6pm/ 10am to 7pm

For the Housekeeping: 6am-3pm/12pm to 9pm/9pm to 6am
For the Drivers:9am to 9pm/ 3pm to 3am/7pm to 7am
and all employees are expected to render the working hours defined above; however the
company shall give the a 15 minutes grace period.

In case of any non-adherence to working hours and the flexible work policy by the employee,
corrective action may be initiated as per the Company’s Code of Discipline. Moreover, should the
Company find abuse on the flexible work policy, it may withdraw the adoption of such
arrangement at any given time.

C) TARDINESS

Tardiness shall mean reporting for work past the official working time.

An employee is allowed only ten (10) excused tardiness a year, reckoned from the first working
day of the calendar year. 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.

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 Verbal Warning

2nd Offense Written warning
3rd Offense 2nd Written warning
4th Offense DISMISSAL

Tardiness cannot be compensated or offset with overtime work.

D) UNDERTIME

Under-time shall mean leaving one’s work before the end of the official working time. The
Company discourages its employees from going under-time, unless it is extremely necessary and
emergency in nature.

Under highly exceptional cases, and only upon securing proper approval from Management, an
employee may be allowed to leave before the end of official working time, for any of the following
valid reasons:

1. Emergency cases such as medical or immediate family concerns, or

2. Other valid reasons shall be determined on a case-to-case basis, which should not affect
the operations of the company.

Management reserves the right to disapprove under-time requests, as it deems appropriate. No

employee under any circumstances is authorized to go on under-time on his own, without securing
proper approval

E) ABSENCES
Absences shall mean failure to report for work during official working days. An employee who will
not be able to report for work shall be required to notify his immediate superior at least tw o (2)
hours before the shift.

An employee who intends to go on leave of absence shall be required to secure approval at least
two (2) week before the intended leave of absence.

An employee who went on sick leave shall be required to file an application for leave within
twelve (12) hours upon reporting for work.

The following shall be considered as unauthorized or unexcused absences:

1. Failure to inform the immediate superior of her/his absence two hours prior to his shift.
2. Failure on the part of the employee to observe the filing requirement for leave of absence.
3. Failure of employee to report for work on any working day without prior approval of the
Company
4. Under-time without prior approval of the Company.
5. Failure to return to work after expiration of authorized leave of absence
6. Misrepresentation of the reason for the absence.
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

nd
2 Offense (2 absences) 1st Written Warning
rd
3 Offense (3 absences) 2nd Written Warning
4th Offense (4 absences) 3 days Suspension
th
5 Offense (5 absences) 7 days Suspension
6th Offense (6 or more absences) DISMISSAL

Category “B” Offense Penalty

(Cumulative but consecutive absences)

1st Offense (2 absences) 5 days Suspension

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

F) MEAL BREAKS

An employee shall be entitled to the following meal breaks:

1. Morning Shift Brunch– one (1) hour

2. Afternoon Shift Lunch –one (1) hour
3. Night Shift Dinner - one (1) hour

G) OVERTIME RULES & REQUIREMENTS

The Company shall allow an employee to render overtime to finish important tasks which cannot
be completed within eight (8) hours duty and so as not to hamper the operations of the company,
provided the following conditions are met:

1) All overtime work shall require prior overtime authorization, duly approved by the
Management. Overtime work rendered without the duly approved overtime authorization
shall not be compensable.

2) An employee shall be required to complete the eight (8) hours regular duty before they can
be allowed to render overtime.

H) WORK DURING HOLIDAYS/ REST DAYS.

The employee may also be required to report during his/her scheduled rest days or legal holidays
or special holidays based on business requirements, at the discretion of the Company. An
employee working during his/her rest day/s or holidays are entitled to premium pay and/or holiday
pay in accordance with the rates provided in the applicable law and the Company policy as
discussed hereunder.

I) OVERTIME, REST DAY & HOLIDAY PAY COMPUTATION

An employee working on extended hours is entitled to overtime pay. The overtime pay rate is
calculated as an enhance percentage of the hourly basic pay (not including allowances). Hourly
rate is computed as: (basic pay/26 working days)/8.

For the purposes of overtime pay computation, the employee would be paid proportionately for the
time he/she has worked beyond the eight (8) hours of regular work.

The employee is eligible for additional payout for overtime work depending on the type of day
he/she is required to report/ extend:

First 8 Beyond 8
Type of Overtime hours hours

Regular Overtime - 125%

Special Holiday or Rest

Day 130% 169%

Special Holiday on Rest

Day 150% 195%

Legal Holiday 200% 260%

Legal Holiday on Rest

Day 260% 338%

J) NIGHT SHIFT DIFFERENTIAL

For work shift timings between 10pm to 6am, the employee is entitled to a night differential pay of
not less than 10% of his/her regular hourly rate. Hourly rate is computed as: (basic pay/22
working days)/8.
Night differential pay may also differ depending on the type of day the employee rendered the
night shift.

Type of Overtime First 8 Beyond 8

hours hours

Regular Overtime 10% 137.50%

Special Holiday or Rest 143% 185.90%

Day

Special Holiday on Rest 165% 214.50%

Day

Legal Holiday 120% 286%

Legal Holiday on Rest Day 286% 371.80%

K) PAYROLL CUT-OFF

The Company observes the following payroll cut off:

PAYROLL CUT-OFF DATE PAY-OUT DATE

1st of the month to 15th of the month 10th of the month

16th to 30th of the month 25th of the month

L) OFFICIAL BUSINESS TRIPS

The official time in and out of all employees shall be registered thru the biometrics machine.
Employees who go out on official business and who have no official time in or time out on specific
dates shall file for an exception approval of all dates he/she was out on official business every
end of the week and submits the same for payroll purposes.

M) WORK SUSPENSION

In the event work has to be suspended due to floods, typhoons and similar calamities, the
following rules shall apply:

1. Only announcements or declarations from the Company, the Office of the President
or Malacañang shall be recognized as official.

2. 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/her regular rate chargeable against his/her accrued or future leave credits.

3. 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/her regular rate chargeable against
his/her accrued or future leave credits.
 4. If an employee is specifically requested to work after the announcement was made,
his/her pay shall be as follows:

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

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/she will not receive the above pay.

5. If an employee reports for work after the announcement is issued and he/she is
requested to stay on and work, his/her tardiness up to the time of announcement will
be excused. His/her pay for the time thereafter shall be in accordance with the
preceding provisions.

PART III

COMPANY RULES & REGULATIONS

A) COMPANY ID

The Company issues company IDs to ensure that only authorized personnel can be allowed access
inside the company premises.

1. All employees shall be required to wear company-issued ID at all times within the company
premises.

1. Lost IDs must be reported immediately to HRD so that a replacement card can be made and
issued.

1. Employees shall not be allowed to tamper or alter the company ID card in anyway.

B) DRESS CODE

All employees should adhere to the professional image of the Company and are expected to wear
appropriate clothing, including company ID while in the work premises during working hours.
Wearing slipper inside the premises is prohibited.

C) EMPLOYMENT OF RELATIVES

Management may give opportunities for job employment to relatives of employees, provided they
will not be reporting directly with each other.

1. A relative is a person who is related by blood or marriage, or whose relationship with the
employee is similar to that of persons who are related by blood or marriage.

1. Immediate family members include spouse, in-laws, step relatives, domestic partner,
parent, child or stepchild, sister or brother.
 1. Relatives of employees may only be hired if they will not be working directly for or
supervising a relative, and/or if they are working in different departments.

1. No special treatment shall be extended to relatives and immediate family members. They
will be treated as professionals.

1. Special cases may arise in which case employment is determined at the discretion of
Management.

D) EQUAL EMPLOYMENT OPPORTUNITIES

The Company is an equal opportunity employer and makes employment decisions on the basis of
merit. We want to have the best available people in every job. Therefore, the Company does not
discriminate, and does not permit its employees to discriminate against other employees or
applicants because of race, color, religion, sex, sexual orientation, gender identity or expression,
pregnancy, marital status, national origin, citizenship, veteran status, ancestry, age, genetic
characteristic, or any other consideration made unlawful by applicable laws.

E) OPEN DOOR POLICY

In order to encourage open communication, feedback and discussion about matters of importance
to employees, the company adopts an “Open Door” Policy, whereby every manager is available to
every employee for any concern.

F) LOSS OF COMPANY PROPERTIES

Employees may be issued certain tools, equipment or gadgets in order to perform the job. These
items belong to the company but are placed in the employee’s care and custody. The employee
shall be held accountable for any damage or loss of these properties.

G) USE OF OFFICIAL COMPANY LOGO

To maintain a consistent brand entity and enhance marketplace recognition, the company’s official
logo shall be the only logo to be used on all communications representing the company, both
internal and external.

H) COMPETITION & FAIR DEALING

The Company commits to a fair dealing and competition in all its business transactions and
ensures that employees adhere to this standard.

1. Avoid taking unfair advantage of anyone through manipulations, concealment, abuse of

privileged information, misrepresentation of material facts, or any unfair dealing practice.

1. Deal fairly with the Company’s customers, service providers, suppliers, competitors and
employees.

1. Avoid making false and misleading statement or representation to anyone about the
company, its customers, competitors, suppliers and trade partners.
 1. Avoid reciprocal dealing (x-deal or barter of some trade ) with a prospective supplier or
trade partner.

I) CONFLICT OF INTEREST

We all must avoid conflicts of interest. A conflict of interest exists when a personal interest or
activity interferes or appears to interfere with the duties that you perform at, or owe to the
Company. A conflict of interest may unconsciously influence even the most ethical person and the
mere appearance of a conflict may cause an employee’s acts or integrity to be questioned.

J) NON-DISCLOSURE & CONFIDENTIALITY

All employees shall be required to keep all information in strict and utmost confidence and shall
not disclose in any manner whatsoever any such information to any person or entity, including but
not limited to: intellectual and proprietary or confidential information owned by or licensed to the
Company.

All employees shall strictly abide by all other restrictions on the use and disclosure of such
information which the Company may establish from time to time.

K) HARASSMENT & REPORTING PROCEDURE

The most productive and satisfying work environment is one in which work is accomplished in a
spirit of mutual trust and respect. Harassment is a form of discrimination that is offensive, impairs
morale, undermines the integrity of employment relationships and causes serious harm to the
productivity, efficiency and stability of our organization.

Harassment in employment, including sexual, racial, and ethnic harassment, as well as any other
harassment forbidden by law, is strictly prohibited by the Company. Employees who violate this
policy are subject to discipline, including possible termination.

Grievance Procedure

Any employee who believes he or she is being harassed, or any employee, who becomes aware of
harassment, should promptly notify his or her supervisor. If the employee believes that the
supervisor is the harasser, the supervisor's supervisor should be notified. If an employee is
uncomfortable discussing harassment with his or her supervisor, the employee should contact
HRD.

Upon notification of a harassment complaint, a confidential and impartial investigation will be

promptly commenced and will include direct interviews with involved parties and where necessary
with employees who may be witnesses or have knowledge of matters relating to the complaint.
The parties of the complaint will be notified of the findings and their options.

Non-retaliation
This policy also expressly prohibits retaliation of any kind against any employee bringing a
complaint or assisting in the investigation of a complaint. Such employees may not be adversely
affected in any manner related to their employment.

Disciplinary Action

The company views harassment and retaliation to be among the most serious breaches of
workplace behavior. Consequently, appropriate disciplinary or corrective action, ranging from a
warning to termination, can be expected.

L) GOOD HOUSEKEEPING

Employees are expected to keep their working area neat and clean, and use the services and
facilities provided appropriately. Employees are encouraged to report to the Management any
repairs or improvements that may be required.

Deliberate destruction of or negligence in caring for office equipment shall be penalized

accordingly.

M) PERSONNEL RECORDS / UPDATING

The company keeps a personnel file on each employee. The contents of an employee's file, except
for letters of reference and certain other limited kinds of information, are open for his or her
inspection, upon request, at reasonable times. An employee may request and receive from the
company a copy of anything in his or her file that has been signed by them. Employees may
contact HRD if they wish to review their personnel file or to make copies of documents signed by
them.

N) BLOGGING & SOCIAL MEDIA

Blogging and social media websites shall be kept strictly personal. At no time shall the company-
related information be dispersed or discussed, without proper approval from Management.

O) INTERNET USAGE POLICIES

Use of the Internet by employees is permitted and encouraged where such use supports the goals
and objectives of the business. However, access to the Internet is a privilege and all employees
must adhere to the policies concerning Computer, Email and Internet usage.

Violation of these policies could result in disciplinary and/or legal action leading up to and
including termination of employment. Employees may also be held personally liable for damages
caused by any violations of this policy.

P) VOICE MAIL, EMAIL & COMPUTER FILES

Company provided voice mail, E-mail and computers are to be used for business purposes only,
and may not be used for personal business. These systems are maintained by the company in
order to facilitate company business. Therefore, all messages sent, received, composed and/or
stored on these systems are the sole property of the company.
Company computers should not be used to access online databases or Internet services unless
such access is for work related purposes. The company understands that on occasion, employees
may need to conduct personal business using computing resources. Such use must be limited to
break time and does not excessively use computing and network resources.

Employees are prohibited from using passwords without prior company authorization and
registration. The existence of a password on voicemail, email or computer systems is not intended
to indicate the messages or other communications will remain private.

Employees are prohibited from loading any software onto a company provided computer where
such action would violate the software license. Employees are prohibited from loading any
software onto a company provided computer without the express approval of their manager or
supervisor.
The email system should not be used to send (upload) or receive (download) copyrighted
materials, trade secrets, proprietary information, or similar matter without prior authorization from
the company.

TRAVEL & EXPENSES POLICY

The Company recognizes the need for employees to periodically travel away from the area on
Company business and related matters/activities. These activities include but are not limited to
visits to other Company sites, service providers, trade shows, sales meetings, conferences, and
seminars. This policy establishes uniform requirements and guidelines for travel authorizations
and expense authorizations/reporting.

PART IV

COMPENSATION AND OTHER COMPANY BENEFITS

SALARIES

Salaries are paid semi-monthly, in accordance with the provisions of the Labor Code. The
employee’s net pay is directly credited to his/her cash where the Company has a payroll account.

13 TH MONTH PAY
The Company grants payment of 13th month pay towards the end of the year as prescribed by
labor laws. Pursuant to the said 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/she has served the
Company for at least one (1) month during the applicable year.

The 13th Month Pay is computed as: (Total amount of basic pay paid) x 12
number of months of the employee

SOCIAL SECURITY SYSTEM

The Social Security System (SSS) provides a package of benefits in the event of death, disability,
sickness, maternity, and old age. Basically, the Social Security System (SSS) provides for a
replacement of income lost on account of the aforementioned contingencies.

The monthly contribution of an employee is based on his/her compensation. (Please see table
hereunder for the SSS 2018 Contribution Table).

Range of Gross Employ Employee’s Total Employ Total

Monthly er Compensati Employer ee Contributi
Compensation Share on Program Contributi Share on
on
1,000-1,249.99 73.70 10.00 83.70 36.30 120.00
1,250-1,749.99 110.50 10.00 120.50 54.50 175.00
1,750-2,249.99 147.30 10.00 157.30 72.70 230.00
2,250-2,749.99 184.20 10.00 194.20 90.80 285.00
2,750-3,249.99 221.00 10.00 231.00 109.00 340.00
3,250-3,749.99 257.80 10.00 267.80 127.20 395.00
3,750-4,249.99 294.70 10.00 304.70 145.30 450.00
4,250-4,749.99 331.50 10.00 341.50 163.50 505.00
4,750-5,249.99 368.30 10.00 378.30 181.70 56000
5,250-5,749.99 405.20 10.00 415.20 199.80 615.00
5,750-6,249.99 442.00 10.00 452.00 218.00 670.00
6,250-6,749.99 478.80 10.00 488.80 236.20 725.00
6,750-7,249.99 515.70 10.00 525.70 254.30 780.00
7,250-7,749.99 552.50 10.00 562.50 272.50 835.00
7,750-8,249.99 589.30 10.00 599.30 290.70 890.00
8,250-8,749.99 626.20 10.00 636.20 308.80 945.00
8,750-9,249.99 663.00 10.00 673.00 327.00 1,000.00
9,250-9,749.99 699.80 10.00 709.80 345.20 1,055.00
9,750-10,249.99 736.70 10.00 746.70 363.30 1,110.00
10,250- 773.50 10.00 783.50 381.50 1,165.00
10,749.99
10,750- 810.30 10.00 820.30 399.70 1,220.00
11,249.99
11,250- 847.20 10.00 857.20 417.80 1,275.00
11,749.99
11,750- 884.00 10.00 894.00 436.00 1,330.00
12,249.99
12,250- 920.80 10.00 930.80 454.20 1,385.00
12,749.99
12,750- 957.70 10.00 967.70 472.30 1,440.00
13,249.99
13,250- 994.50 10.00 1,004.50 490.50 1,495.00
13,749.99
13,750- 1,031.3 10.00 1,041.30 508.70 1,550.00
14,249.99 0
14,250- 1,068.2 10.00 1,078.20 526.80 1,605.00
 14,749.99 0
14,750- 1,105.0 30.00 1,135.00 545.00 1,680.00
15,249.99 0
15,250- 1,141.8 30.00 1,171.80 563.20 1,735.00
15,749.99 0
15,750-over 1,178.7 30.00 1,208.70 581.30 1,790.00
0

EMPLOYEE’S COMPENSATION PROGRAM

The Employees’ Compensation Program (ECP) is a government program designed to provide a

compensation package to public and private sector employees or their dependents in the event of
work-related sickness, injury, disability, or death.

PHILHEALTH BENEFITS

The National Health Insurance Program (NHIP), formerly known as Medicare, is a health insurance
program for SSS members and their dependents whereby the healthy subsidize the sick who may
find themselves in need of financial assistance when they get hospitalized.

The Philippine Health Insurance Corporation or PhilHealth is the mandated administrator of the
Medicare program (now known as NHIP) under the National Health Insurance Act of 1995
(Republic Act 7875).

Effective January 2018, unless otherwise adjusted, the monthly contribution of an employee shall
be at the rate of 2.75% computed straight based on the monthly basic salary, to be equally shared
by the employee and the Company, based on the table below:

Basic Monthly Employer Share Employee Share Total Monthly

Salary Premium
10,000.00 and 137.50 137.50 275.00
below
10,000.01- 137.51-549.99 137.51-549.99 275.02-1,099.99
39,999.99
40,000-over 550.00 550.00 1,100.00

PagIBIG FUND

Being a member of the Pag ibig Fund (also known as HDMF or Home Development Mutual Fund) is
a mandatory requirement for all employees covered by the SSS and GSIS, private employees,
household helpers, seafarers, OFW and those who are listed below.

MATERNITY LEAVE AND OTHER BENEFITS

Any pregnant female employee who has paid at least three (3) months contributions for the last
twelve (12) months immediately preceding the expected date of delivery or complete abortion or
miscarriage and has given notification to SSS within the first month of pregnancy, up to a
maximum of four (4) pregnancies, shall be entitled to maternity leave, as provided for under the
SSS Law and its implementing rules and regulations, to wit:

Caesarean Section 78 calendar days

Normal Delivery &

Miscarriage 60 calendar days
During the maternity leave, SSS grants a daily cash allowance equivalent to 100% of average daily
salary credit (not actual daily salary) multiplied by applicable number of ML days (the “SSS
Maternity Benefit”). The average daily salary credit is based on a table provided by SSS.

A) 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.

Upon reporting back for work or within one (1) month thereafter, the employee must submit to the
HRD 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
succeeding salaries.

B) 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 SSS requirement. Therefore, this shall
not be deducted from the employee’s salary. Upon reporting back for work or within one (1)
month thereafter, 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 miscarriages within the year or if the
employee fails to submit her medical records.

C) 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 HRD a certification from her
OB-Gynecologist 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.

Once the employee presents copies of the requirements needed by the SSS, the Company shall
advance maternity benefit allowance in full, within thirty (30) days from the filing of maternity
leave application.

PATERNITY LEAVE

Paternity Leave entitles every married male employees company-paid leave for seven (7) working
days with full pay, consisting of basic salary and all allowances and other monetary benefits, for
the first four (4) deliveries, miscarriages or abortion of his lawful spouse with whom he is
cohabiting.
The employee shall notify his immediate supervisor of the pregnancy and expected date of
delivery of his lawful spouse. Employee must submit a copy of 1) Marriage Certificate and 2)
Ultrasound Report of the legal spouse.

Paternity leave may be applied two (2) weeks before, during or two weeks after child birth or
miscarriage of the lawful spouse, provided that the total number of days shall not exceed seven
(7) working days for each delivery.

After availment of the paternity leave benefit, the employee must submit within fifteen (15) days a
copy of the birth certificate of the newly-born child, acknowledging paternity therein, or medical
certificate in case of miscarriage or abortion.

PARENTAL LEAVE FOR SOLO PARENTS

In accordance to Republic Act 8972, any solo parent or individual left alone with the responsibility
of parenthood, as defined by law, shall be granted by the Company parental leave of not more than
seven (7) working days every year in addition to leave privileges under existing labor laws. This
benefit allows a solo parent to perform parental duties and responsibilities where physical
presence is required.

The Solo Parent leave shall be provided to the employee, provided that:

1. He/she has rendered at least one (1) year of service, whether continuous or broken;
2. He/she has notified his/her employer that he/she will avail himself /herself of it, within a
reasonable period of time; and
3. He/she has presented to his/her employer a Solo Parent Identification Card, which may be
obtained from the Department of Social Welfare and Development office of the city or
municipality where he/she resides.

MAGNA CARTA (SPECIAL LEAVE) FOR WOMEN

In accordance to Republic Act 9710,all female employees shall be entitled to a special leave
benefit, maximum of two (2) months with full pay based on gross monthly compensation following
surgery due to gynecological reasons.

To be eligible, female employees must have rendered continuous aggregate employment of at

least six (6) months for the last twelve (12) months. Availament of leave benefit is in accordance
to List of Surgical Operations for Gynecological Disorders which includes estimated period of
recuperation.

A female employee who may need to use this leave shall inform her immediate supervisor at least
two (2) weeks prior to her scheduled operation. She will be required to submit medical
certifications to support her leave application.

LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN AND THEIR CHILDREN

In accordance to Republic Act 9262, victims of violence against women and children, as defined
therein, shall be entitled to take a company-paid leave up to ten (10) days in addition to other paid
leaves under existing labor laws, which can be extended as the need arises, as specified in the
prosecution order issued by the barangay or the court. Employee is required to submit
certification from the barangay chairman or barangay councilor or prosecutor, that an action
relative to the matter is pending.
In the event that the leave benefit is not availed of, it shall not be convertible to cash and shall not
be cumulative.

VACATION, EMERGENCY & SICK LEAVE CREDITS

An employee is entitled to five (5) days of paid leaves. Credits are earned on a pro-rata basis
starting from the month of joining of the employee, and eligible for use upon regularization. Leave
credits can be used for vacation, sick and emergency purposes.

In addition, unused leaves cannot be converted into its cash equivalent.

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

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 with or without prior notification cannot assume that simply on his/her
say so, the absence is automatically charged against his/her 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 AWOL depending on the justification.

EMERGENCY LEAVE

In case an employee is unable to report for work for emergency reasons including, among others,
sudden illness, he/she is not only required to call the Company, but in addition, he/she must also
advise the Company of:

a. his/her pending work;

b. location of papers, documents and other materials that he/she is handling; and
c. any verbal instructions previously conveyed to him/her by his/her 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.
 PART VI

CODE OF DISCIPLINE & DUE PROCESS PROCEDURES

PROGRESSIVE DISCIPLINE

The Table of Discipline follows the principle of progressive discipline—that is a stiffer disciplinary
action is applied every time the same violation is committed by the employee. While it is
corrective in nature, the employee is expected to improve his compliance and prevent the same
violation from being committed.

TABLE OF DISCIPLINARY SANCTION

Severity of Occurrence of Disciplinary Validity
Offences Description Offense Penalty Period
1st Offense Verbal Warning
2nd Offense Written Warning
Minor 6 Months
Final Written
Class I Disciplinary
3rd Offense Warning
Lapses
Not
4th Offense Dismissal Applicable
1st Offense Written Warning
Final Written 1 Year
Class II Misdemeanour 2nd Offense Warning

Not
3rd Offense Dismissal Applicable
Final Written Not
1st Offense Warning Applicable
Class III Misconduct
Not
2nd Offense Dismissal Applicable
Grave Not
Class IV
Offenses 1st Offense Dismissal Applicable

RESPONSIBILITIES

Immediate Superior
1. To report to HRD any violation committed by an employee
2. To implement corresponding action, with the assistance of HRD
3. To counsel employee/subordinate who committed the violation and encourage them to take
corrective action to prevent the same violation from happening again
HRD
1. To document all disciplinary sanctions
2. To assist the Managers/ Supervisors in the correct interpretation of company policies, as
well as Code of Discipline
3. To monitor on the progress of the employee
4. To assist the immediate superior in counselling the employee

DUE PROCESS PROCEDURES

Upon learning a violation committed by the employee, Management shall take the following due
process procedures:

1. Immediate Superior reports thru an Incident Report the employee’s violation to HRD within
twenty-four (24) hours upon discovery of the violation.

2. HRD reviews the report, and if found appropriate, issues necessary notice of explanation
letter (“NTE”) to the employee. HRD may, at its discretion, decide to not pursue to a formal
case to the employee. When that happens, a verbal discussion will just happen between
HRD, the employee concerned and the immediate supervisor.

3. In cases when the employee refuses to acknowledge receipt of the NTE, a witness who can
be any employee of the company, shall witness that the notice is being served but
employee refused to acknowledge receipt thereof.

4. In such case, HRD should write “refusal to acknowledge receipt of the notice as witnessed
by” then indicate name and signature of the witness, including date and time the notice is
served.

5. Employee is given at least two (2) days but not exceeding seven (7) days to comply with
the written explanation to explain why no disciplinary action should be taken against
him/her.

6. Employee submits the written explanation within the required period to HRD.

7. If no explanation was received after the deadline, HRD issues a Notice of Disciplinary
Action (“NDA”) and effects corresponding sanction. Note that further investigation and
administrative hearing(s) may be conducted to ensure fairness in the decision-making
process.

8. An NDA is issued to the Employee, duly acknowledged and received by the employee.

9. For cases involving suspension, the immediate superior schedules the suspension
immediately upon issuance of the NDA. The schedule of suspension should be viewed as a
penalty, so it is important that it is immediately issued so the employee will feel the effect
of his violation immediately upon commission thereof. This should not drag as it lessens the
effectiveness of the sanction. It goes without saying that “Justice delayed is justice
denied.” Same with disciplinary action, it should be effected close to the date of violation so
effect should be immediately felt by the employee concerned.

10. For record purposes, a duplicate copy of the notice is maintained in the employee’s 201
file.
MULTIPLE OFFENSES/VIOLATIONS

In cases where an employee has violated two or more offenses/violation at the same time, the
higher sanction shall applied.

GRIEVANCE PROCEDURE:
In case of disagreement on the disciplinary action interpretation or implementation, the
following level of hierarchy shall be observed to elevate the matter. Once it reached the
President, the decision shall be decided as final and executory.
1st Level - recommendatory
1. Immediate Superior
2. Department Head
3. HRD

2nd Level – final and executory

President

EMPLOYEE AGREEMENT FORM

The employee acknowledges that he/she has been given the opportunity to read and fully
understands the foregoing conditions set forth in this Employee Handbook. Employee also
acknowledges that he/she has been given a copy of this handbook for his/her personal file.
Employee agrees to abide and be bound by all policies and procedures set forth herein.

This handbook shall be governed by and construed under Philippine law and shall not be
modified in whole or in part except by an agreement in writing signed by the parties hereto. It
shall inure to the benefit of successors of the Company by way of merger, consolidation or
transfer of substantially all the assets of the Company. In case any one or more of the provisions
or part of a provision contained in this manual shall for any reason be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any
other provision or part of a provision of this agreement, but this agreement shall be construed as
if such invalid or illegal or unenforceable provision or part of a provision had never been
contained herein. If any term, time, or area set forth in this manual shall be deemed to be
excessive by a court of competent jurisdiction, such term or area shall not thereby be rendered
invalid, but shall be interpreted to be the maximum time or area which shall to the court seen
reasonable under the circumstances. The waiver of the breach of any term or condition of this
agreement shall not be deemed to constitute the waiver of any other or subsequent breach of the
same or any other terms or conditions.

I, ________________________________________, an employee of the PAXICA BRAND

MANAGEMENT CORP., have received this Employee Handbook on this day
_______________________, and agree to be bound by all the terms contained herein.

___________________________________
(Signature of Employee Above Printed Name)