I.

COMPENSATION

PAYDAY
Employee salaries are paid on the 10th and 25th of each month. Payment of salaries shall be
through direct credit to the payroll/ATM accounts of individual personnel. Should payday fall
on a weekend or national holiday (not applicable to Company holidays), it shall be advanced
to the latest workday. All salary information should be treated as confidential.

For resigning employees, salary for the last month’s pay period shall be withheld pending
clearance. Any outstanding balances due to COMPANY and / or liabilities of the Employee member
shall be automatically deducted from the salary and other receivables.

13th MONTH PAY

Employees’ 13th month pay is pro-rated throughout the year. Payment of the 13th month pay is
given on or before December 15.

PAYROLL & PAYSLIP

Salaries and applicable benefits shall be paid out twice a month based on cut-off dates
determined by the Accountant, preferably through Automatic Teller Machine (ATM)
deposits directly to the employees’ ATM account;

Computation for the semi-monthly payment shall include input from the following:
 Daily attendance monitoring;
 Leaves granted, e.g., leaves for sickness, vacation, study, maternity, paternity,
emergency, etc.;
 Withholding tax due following the BIR withholding tax table and other applicable
taxes (see below);
 Unexcused absences;
 Fringe and De Minimis benefits;
 Deductions allowed by law, e.g., SSS, Pagibig, PhilHealth;
 Adjustments in compensation rates where applicable; and
 Authorized deductions for advances, fines and similar items;

PAYROLL SCHEDULE (APPROXIMATION)

 Three working days before the payroll date, Accounting submits the completed
computation of the semi-monthly payroll to the Director for random checking;
 One working day before the payroll date, the Director gives instruction to the paying
bank to credit the corresponding ATM amounts to each eligible employee;
PAYROLL ADJUSTMENTS
When employee members receive their payslip, they must review their personal information,
earnings, and deductions for the payroll period and encouraged them to send an email to the
payroll master if they have questions/queries. If a situation arises that necessitates an
adjustment, such adjustment may occur on the subsequent payday.

Adjustments (such as Failure to Time In / Time Out) should be filed on a timely basis. The
Accounting Department, HR, and/or the Approver may request for supporting / original
documents as proof. Leave Forms (Official Business Trip, Vacation Leave, Personal Leave)
must be filed and approved prior to taking such leave. Unapproved leaves and/or undertime
shall be subject to salary deduction.

OVERTIME
As provided in the Philippine labor laws, work hours during an ordinary work day are eight
(8) hours within the same twenty four (24) hour period. The additional compensation required
to be paid for work rendered shall be paid as follows:

 Work performed in excess of eight (8) hours during ordinary working days: plus
twenty five percent (25%) of the Employee member’s hourly rate.
 Work performed in excess of eight (8) hours during a scheduled rest day, a special day,
or a regular holiday. Plus thirty percent (30%) of the hourly rate on said days.

The provisions of overtime do not apply to managerial employees nor to other officers or
members of managerial staff.

EMPLOYEE CONTRACTS / APPOINTMENTS

Employees hired/employed/appointed by COMPANY will individually sign a contract.

For probationary Employee members, a performance evaluation will be conducted at least

once during the probationary period.

After serving a probationary period of 180 days and pending completion of Company
requirements, Employee members may be considered for permanent employment, without
prejudice to outstanding Employee employees who may be recommended for permanency by
the HR Head after a shorter period. He/She shall be so informed in writing before the end of
the probationary period. An employment contract shall be issued to permanent employees.
An Amendment to this contract may be issued to reflect any changes in position, duties and
responsibilities, remuneration or benefits.

The employee may or may not accept the Amendment. Should the employee accept, he/she is
expected to personally sign his/her Amendment at the office of the HR Head by the date

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specified. Failure to sign, shall be interpreted as a lack of interest to continue appointment /
employment with COMPANY.

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 II. WORKDAYS / HOURS / SCHEDULE

SCHEDULED WORK HOURS

Core working hours and regular business operations for Employee members shall be five (5)
days a week, from Monday through Friday, 9:00 a.m. to 6:00 p.m., except when stated
otherwise in the Employee member’s contract or on particular days when announced or if the
exigencies of work so require.

The Company reserves the right to change work schedules and assign employees to special
schedules as it deems necessary for effective operations. However, management will adhere to
relevant provisions of the Philippine Labor Code.

LUNCH BREAK
Lunch breaks are limited to one (1) hour daily. Employee members shall be allowed to take
their lunch breaks at a time convenient to the department and during hours pre-approved by
their respective immediate supervisors. Lunch break is not flexi-time and will be staggered
accordingly to ensure that each department’s personnel are in their post at all times.

REST DAYS
Unless otherwise established in the individual employment contract, Saturday and Sunday are
normally non-working days for all employees of COMPANY. On occasion, if the Company
has lost substantial time through cancellation of office, make-up days may be held beyond core
weekday working hours, on days previously designated as Company vacation days or in-
service days or on Saturdays at the discretion of the Director or HR Head.

HOLIDAYS
The Company observes the following regular holidays of the Republic of the Philippines.

New Year’s Day 1 January

Araw ng Kagitingan 9 April
Maundy Thursday Date announced annually
Good Friday Date announced annually
Labor Day 1 May
Independence Day 12 June
National Heroes Day 29 August
Eidul Adha 5 October
Bonifacio Day 30 November
Christmas Day 25 December
Rizal Day 30 December

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Certain special non-working holidays may be observed. Presently, these are:

Chinese New Year Date announced annually

Edsa Revolution 25 February
Eid’l Fitr Date announced annually
Ninoy Aquino Day 21 August
All Saints’ Day 1 November
Taguig Day 8 December
Christmas Eve 24 December
New Year’s Eve 31 December

If the declared date changes or is cancelled subsequently, the Director or HR Head or the city
government proclamation will prevail.

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 III. ATTENDANCE AND TIME KEEPING

GENERAL GUIDELINES ON ATTENDANCE AND PUNCTUALITY

All COMPANY employee are required to be prompt in reporting to work, to be regular in their
attendance, and to complete assigned tasks in a timely fashion.

ATTENDANCE POLICY
Employee members’ punctual attendance and presence in their assigned areas of work is
crucial to the successful, smooth, effective, and orderly operation of the Company. The
Company recognizes that certain absences are justified, but it frowns upon tardiness, absences,
and undertime taken for slight reasons. Employees who find it necessary to be late or
suddenly absent, at isolated incidents, must notify the HR and respective supervisor, not a
colleague, as soon as possible by phone.

The Company requires that all contemplated absences must be applied for online and
approved by the HR or immediate supervisor prior to taking these absences. Unannounced
absence or failure to report to work without prior approval shall be treated as “absence
without leave” (AWOL). In such cases, the leave shall be without pay and subject to
disciplinary action.

TIME KEEPING
To ensure compliance with COMPANY’s practice on attendance and punctuality, employees
are required to register personally and individually their time of arrival through the use of the
biometrics machine located at the Reception area. Employee members must register by 9:00
a.m. each morning or at their scheduled arrival time.

TARDINESS
Tardiness is defined as coming to work late, the failure to arrive at a time set, lack of
punctuality, or not arriving on time to scheduled events or to his/her assigned work area,
including return from breaks and meal periods. This definition inevitably implies that
Employee members may, in one working day, incur tardiness more than once.

A grace period of five (5) minutes from the start time stipulated in the contract shall be given.

The total accumulated tardiness will be recorded and routinely forwarded to the HR / for
evaluation. Habitual and excessive tardiness is subject to disciplinary action and may lead to
termination.

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After 9:15 a.m., the tardy will be subject to the late penalty provisions stipulated in the
paragraph above and subject to the appropriate deductions in pay (beginning at 9:00 a.m.).

UNDERTIME
Undertime is defined as working time that is less than the full time or the required minimum
which is usually incurred by one who leaves from work earlier than the usual core work
schedule or who leaves between a given working day. Prior approval from the HR or
immediate supervisor is required before an employee can go undertime. Undertime may be
filed in one (1) hour increments and will be deducted from payroll.

NO OFFSETTING OF UNDERTIME with OVERTIME WORK

In no case shall undertime work on any particular day be offset by overtime work rendered on
any other day. Unauthorized undertime is not chargeable against any available Leave credits.
Instead it is subject to salary deduction and disciplinary action. Deductions for unauthorized
undertime shall be calculated on an hourly basis, rounded up.

OVERTIME WORK
Permission to render overtime work shall be given only upon express approval by the
Employee member’s immediate supervisor and HR or Immediate supervisor; and in case of
specific task(s), project(s), activity(ies) that are absolutely necessary and/or required – for
which set deadlines cannot be met without resorting to overtime work. Hence, as a rule,
permission for overtime work shall not be granted beyond regular working hours if said work
involves mere completion of jobs/assignments that are part of the regular functions or
responsibilities of the Employee member concerned and could have been reasonably
completed during regular working hours. Overtime work shall only be compensated when
properly and duly permitted based on the conditions set in the Employee Policy Manual. An
Overtime Form shall be duly filed online for this purpose.

COMPULSORY OVERTIME WORK

COMPANY may require Employee member to render overtime work, with corresponding
overtime pay as provided by law, in cases where operational requirements and/or emergency
circumstances. Whenever possible, advance notice shall be given to the Employee member of
the need to render overtime work. However, the absence of such advance notice shall not be
grounds for any Employee member to refuse to render overtime work whenever necessary, as
determined and required by the HR / Immediate supervisor. An Overtime Form shall be duly
filed for this purpose.

OVERTIME AUTHORITY

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Requests for permission, by the Employee member, to render overtime work with pay shall be
made only when such work is urgent and absolutely necessary. Necessity of rendering
overtime work shall be determined by the Employee member’s immediate supervisor or
department head concerned. All such requests shall require prior approval of the HR /
Immediate supervisor. Said request for permission to render overtime work shall state the
duration of the overtime, and justification or indication of the urgency and necessity of
overtime work. Overtime work overlapping over the employee’s normal one (1) hour lunch
break shall not be counted in calculating overtime pay. In the case of overtime rendered after
5:00 p.m., overtime work overlapping over the employee’s one (1) hour dinner break shall not
be counted in calculating overtime pay.

BASIS OF OVERTIME PAY

The duly approved request for overtime work shall be cross-checked with the Employee
member’s daily time record, which shall serve as basis for his/her overtime compensation,
provided that the overtime work is duly authorized.

PERMISSION TO LEAVE DURING WORK HOURS

Employee members who must leave COMPANY premises during work hours must obtain
approval from their immediate supervisor or HR. Failure to do so shall be sufficient ground
for disciplinary action.

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 III. BENEFITS

COMPANY complies with all mandatory provisions of Philippine labor laws and standards.
Personnel benefits may either be government-mandated benefits or COMPANY initiated
benefits.

VACATION LEAVE (VL)

Employee who have passed their probationary period are granted twelve (12) days of Vacation
Leave which accumulate at a rate of one (1) day per completed month of service. Employee, as
a general rule, shall consume their VL days within one (1) year. Should the Employee
member’s hire date not coincide with the foregoing period, VL days shall be pro-rated
accordingly. VL days may only be filed in half (½) day or full day increments. All unused VL
days shall be converted to cash after January 31st of the respective Company year and paid on
the 10th January payroll period.

Vacation leaves require 5 days notification and approval from immediate supervisor or HR to
assure the smooth operation of the Company. COMPANY shall have the prerogative to
schedule the period and/or number of days of a Employee member’s vacation leaves. This
shall depend on the needs and requirements of the normal operations of the department or
office to which said Employee member belongs.

SICK LEAVE (SL)

Sick leave means temporary absence from work due to disability caused by actual illness or
injury. Accordingly, sick leave days are to be extended only to a staff member who is actually
sick and/or injured and who is incapable of discharging his/her duties. Sick leave may also be
used for doctor/dentist appointments when it is not possible to schedule them during non-
working hours. Sick leave used for medical / health care provider appointments, which are
elective and not medically urgent, must be scheduled in advance and requires at least 2 days
notification prior to taking it.

The Company recognizes the fact that, unfortunately, its employees may become ill from time
to time. It frowns upon those who apparently become sick frequently. Frequency of ‘short
time’ illnesses will be taken into consideration in the performance evaluation.

Employee who have passed their probationary period are granted ten (10) days Sick Leave
which accumulate at a rate of one (1) day per completed month of service during the year. SL
days may only be filed in half (½) day or full day increments. Employee are encouraged to roll
over all unused sick leave days to the following year. The maximum sick leave accumulation
is twenty (20) days. Sick leave days earned in excess of twenty (20) days will be converted to
its cash equivalent at the end of the Company year and paid during the 10th January payroll

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period. Only a maximum of ten (10) days unused sick leave credits can be converted to cash at
the end of the Company year.

All sick leave credits shall be converted to cash upon the termination of the Employee
member’s employment at COMPANY should the same be for the reason of his/her retirement,
resignation or honorable dismissal.

FILING OF PERSONAL / VACATION / SICK or OTHER LEAVE

Usage of Vacation, and Sick Leaves require prior approval from the HR and/or Immediate
supervisor. All Employee members applying for VL / SL must file the pertinent Leave of
Absence Form.

For sudden illness, the HR and immediate Supervisor / Department Head (NOT colleague)
must be notified directly of such illness not later than the first day of illness. Upon return to
work, Sick Leave must be immediately filed. When a Employee member has been out on SL
for two (2) or more consecutive work days, he / she is required to submit a medical certificate
from a health care provider or doctor certifying the medical necessity for the absence. In some
circumstances, the employee may be required to submit a fit to return to work certification
from the treating physician prior to reporting back to the workplace.

ABSENCE WITHOUT OFFICIAL LEAVE (AWOL)

Unannounced or unexcused absence or failure to report to work without prior approval shall
be treated as absence without leave or AWOL and subject to disciplinary action detailed in
Annex C.
BEREAVEMENT / COMPASSIONATE LEAVE
When death occurs in the immediate family, full-time employees are granted five (5) days
bereavement / compassionate leave with no deduction in salary. The term “immediate family”
shall refer to the employee’s legal spouse, legitimate child(ren), parents or parents-in-law, or
sibling(s). This benefit does not apply to grandparents, aunts, uncles, other in-laws, step
siblings, etc. A copy of the death certificate of the deceased immediate family will be
requested by the HR Department.

Bereavement/compassionate leave need not be taken immediately or for consecutive days.

However, all five (5) days must be taken within a period of thirty (30) days from the death of
the employee’s immediate family member. Bereavement leave shall be non-cumulative and
non-commutative.

OFFICIAL BUSINESS LEAVE (OBL) or TRIP

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All Employee taking leaves for the completion of official, Company-sanction business such as
seminars, conferences or inter-Company league events, must complete and submit an Official
Business Trip form that should be approved by the HR before the OBL takes place.

MATERNITY LEAVE
Maternity Leave benefits shall be those provided under the applicable Philippine Social
Security Systems (SSS) Act.

The leave shall commence at any time from one (1) month prior to the anticipated due date to
the actual date itself. Decisions regarding unpaid extended maternity leave will be based
upon the needs of the Company. The paid maternity leave applies only to the first four (4)
complete deliveries.

Notice of pregnancy and due date must be submitted to the Immediate supervisor or HR as
soon as pregnancy is confirmed or at least sixty (60) days from date of conception, supported
by proof of pregnancy such as a medical certificate, laboratory test result or ultrasound report.
COMPANY, in turn, shall submit the maternity notification to the SSS upon receipt thereof.

PATERNITY LEAVE
In accordance with the Philippine Paternity Leave Act, any married male employee shall be
entitled to a paternity leave of seven (7) working days with full pay for the first four (4)
deliveries of the legitimate spouse with whom he is cohabiting. Deliveries shall include
childbirth or any miscarriages.

The paternity benefits set forth herein may be enjoyed by the qualified employee before,
during or after the delivery by his wife; provided, that the total number of days shall not
exceed seven (7) working days for each delivery. Provided, further, that his benefit shall be
availed of not later that sixty (60) days after the date of said delivery. Paternity leave shall not
be convertible to cash. Those wishing to go on paternity leave must complete a leave form
online for approval by the HR before the employee goes on leave.

LEAVE OF ABSENCE WITHOUT PAY (SHORT TERM)

Leave of absence without pay occurs when a tenured employee has consumed all of his/her
leave entitlement within the earned period of leave benefit.

Written requests for short term leave of absence without pay – no more than two (2) weeks –
must be filed with the HR at least one (1) month before the leave is to take effect. Such leaves
may typically be used to attend important family ceremonies, take classes, or to assist children
settling into colleges or universities. The granting of this request is at the discretion of the HR

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and such permissions will reflect the Company’s belief that the primary responsibility of the
employee is to be at work to ensure the smooth and effective operation of the Company.

A Employee member who goes on leave (short term) without prior permission from the
Company, or who overextends the period of approved leave without first securing authority
from the HR, or who refuses to be recalled from an approved leave, shall be considered on
absence without official leave (AWOL) and shall be subject to corrective action.

MEDICAL INSURANCE
COMPANY will provide full-time Employee members with medical insurance on such terms
and conditions as the Company may secure. Employees will be responsible for any insurance
deductible, co-insurance, or expenses in excess of the policy limits, as well as for items not
covered in the policy.

Pre-existing medical conditions may be specifically excluded in the medical insurance

provided unless recognized and agreed by the insurance company. Failure to declare pre-
existing conditions, falsification or misrepresentation of medical fitness upon initial
employment may result in forfeiture of medical benefits and/or termination of the
employment contract.

Upon the employee’s termination / resignation / separation, the Health Card should be
surrendered to the Human Resource Office. No clearance shall be issued unless the Health
Card is returned.

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