ARTICLE VII HRM Policy
ARTICLE VII HRM Policy
ARTICLE VII HRM Policy
1 ARTICLE VII
2
3 HUMAN RESOURCE MANAGEMENT POLICY
4
5 PURPOSE:
6
7 The purpose of this policy is to provide the management guidelines and
8 procedures in recruiting competent staff for the cooperative.
9
10 Section 1. Objectives
11
12 1.1 To hire competent individuals as needed to fill job vacancies in the
13 shortest time possible.
14
15 1.2 To ensure that the employees recruited possessed values that are aligned
16 to the core values of the cooperative.
17
18 Section 2. The Chairman of the Board/Coop Manager shall write a memorandum
19 that constitutes an employee requisition, seeking authority to hire in case
20 of vacancy. A vacancy may be the result of:
21 a. Resignation
22 b. Transfer
23 c. Maternity leave/leave without pay
24 d. Dismissal
25 e. Creation of new position/restructuring
26
27 Section 3. Responsibility of Recruitment
28
29 1.1. The decision of recruitment to recruit to fill up approved vacancies
30 rests with the Coop Manager, subject to the approval of the Board.
31
32 1.2. The Board of Directors which constitutes the Personnel Committee
33 is responsible for the overall coordination of staff recruitment and
34 providing the coop with relevant support and processing services.
35
36 Section 4. Recruitment from Within
37
38 1.1. Vacant positions will be advertised within the cooperative to provide
39 career development opportunities for staff through internal appointments,
40 transfers and promotions, where possible.
41
42 1.2. All staff may apply for any position advertised internally unless their
43 letter of offer specified a minimum time in their current position or
44 commitment to complete a specific project that prevents them from
45 applying this time.
46
2 1|Page
3
4
5 2|Page
6
7
8 3|Page
9
10
139 4. Probation
140
141 a. All newly appointed employees shall undergo a probationary period of
142 up to six (6) months.
143
144 b. During the probationary period, the service of an employee may be
145 terminated at any time by either party in accordance with existing
146 guidelines/government regulations.
147
148 c. The on-probation employee’s performance shall be evaluated 2
149 months before the expiration of the probationary period. He/she must
150 have at least a satisfactory performance rating. Otherwise, he/she will
151 not be recommended for regularization. However, in cases of excellent
152 performance and qualifications, the Board of Directors constituting the
153 Personnel Committee has the option to regularize the personnel at any
154 time without regard to probationary employment terms.
155
156 d. On successful completion of the probationary period, the employee will
157 be given a letter of confirmation as regular employee of the
158 cooperative upon BOD’s approval.
159
160 5. Promotion
161
162 a. The cooperative at its sole discretion may promote any suitable and
163 capable employee, depending on vacancy and/or the merit of
164 each case, to any position of the higher category, as it deems fit.
165
166 b. The cooperative shall inform employees of any vacancy for
167 interested party to apply but reserves the right to fill such vacancy
168 from outside the cooperative should no existing employee be found
169 suitable.
170
171 c. Any employee selected for promotion will be notified in writing and
172 require to serve in an “acting” capacity for period of three months,
173 which may be extended for three months at the sole discretion of
174 the Board of Directors.
175
176 d. While in an Acting Capacity, the employee concerned shall be
177 entitled to an incentive pay or allowance at the rate or amount to be
178 approved by the Board upon the recommendation of the Coop
179 Manager.
180
181 e. Upon confirmation of his/her promotion, the incentive
182 pay/allowance shall cease and the employee concerned shall
183 receive the salary and all other benefits attached to his/her new
184 position.
11 4|Page
12
13
185
186 f. An employee who is not confirmed in his appointment to a higher
187 post, will cease to be entitled to incentives pay/allowance and will
188 revert to his/her former position or any other suitable position
189 (carrying the same salary) without prejudice to his future prospects.
190
191 g. The cooperative’s selection of any employee for promotion shall be
192 final.
193
194 6. Non-Discrimination
195
196 a. The cooperative follows an absolute policy or non-discrimination
197 regarding race, color, religion, sex or national origin.
198
199 b. The cooperative will take appropriate action to eliminate direct and
200 indirect discrimination. A direct discrimination is where certain
201 behavior, characteristics requirements and/or activities occur which
202 are based on assumptions (i.e. prejudices, biased attitudes and
203 beliefs) about an individual’s personal characteristics (i.e. sex, race,
204 etc.) and/or where a person receives less favorable treatment than
205 another person. Indirect discrimination results from practices,
206 which may appear to be neutral, but in reality, result in an individual
207 or group being differentially or adversely affected.
208
209
210 Section 8. EMPLOYEE CODE OF CONDUCT
211
212 1. Safeguarding information. Employees must not divulge records, plans
213 or other data (except as necessary in the course of the cooperative
214 business) to any outsiders without proper authorization. Any infraction
215 shall be dealt with the following sanctions:
216
217 First Offense: Suspension of 30 days
218 Second Offense: Dismissal
219
220 2. Handling of records. Employees must ensure all reports, vouchers, and
221 the like are factual and accurate; they must not destroy records except in
222 accordance with the cooperative’s prescribed procedures. Any infraction
223 shall be dealt with the following sanctions:
224
225 First Offense: Written reprimand
226 Second Offense: Suspension of 15 days
227 Third Offense: Suspension of 30 days
228 Fourth Offense: Dismissal
229
14 5|Page
15
16
17 6|Page
18
19
20 7|Page
21
22
322 11. Working Hours, Meal Breaks and Official Travels: The workdays of the
323 cooperative are from Mondays through Fridays and half day on Saturdays
324 with lunch break of an hour and a coffee/tea break of at most thirty (30)
325 minutes two hours before or after a meal break. Working hours will be as
326 follows:
327
328 Lending Operations Group: Monday to Friday- 9:00AM -6:00 PM; Saturday-
329 9:00AM -1:00 PM.
330 Water Refilling Group: Monday to Saturday (8:00 AM to 5:00 PM) provided,
331 personnel are allowed to extend duty hours to meet sales quota without
332 overtime but only on commission basis so as not to detriment coop cash
333 flows.
334
335 Moreover, all personnel are required to secure a Travel Assignment
336 Authority from concerned officers prior to any official travel. No personnel is
337 directed to go out of the field assignment without first securing TAA,
338 otherwise, he/she shall be marked absent.
339
340 Non-observance of the above-mentioned working hours, breaks and
341 travels without asking permission from concerned direct supervisors shall be
342 dealt with the following sanctions:
343
344 First Offense: Written or verbal reprimand
345 Second Offense: Suspension of 15 days
346 Third Offense: Suspension of 30 days
347
348 12. Dress Standards
349
350 a. A professional standard of business dress is required of all
351 employees, regardless of the level of client contact the
352 employee may have. The cooperative requires a professional
353 image to be projected at all times.
354
355 b. Uniform shall be provided to all employees to project an image
356 of professionalism. The following uniform standard will be
357 observed:
358
359 i. Wearing the cooperative’s office uniform is compulsory
360 except during the designated wash day. However,
361 during wash days employees are required to wear casual
362 decent attire. At all times, employees should match their
363 attire with appropriate footwear.
364 ii. Identification Card (ID) is considered as part of the
365 uniform and is deemed compulsory while in the work
366 place.
367
23 8|Page
24
25
26 9|Page
27
28
414 for personal use; personal study without prior approval from the Board;
415 rendering work outside office hours without prior consent and any other
416 similar activities as determined by the BOD). Any infraction shall be dealth
417 with the following sanctions:
418
419 First Offense: Written reprimand
420 Second Offense: Suspension of 15 days
421 Third Offense: Suspension of 30 days
422 Fourth Offense: Dismissal
423
424
425 Section 9. Salaries, Leaves, Benefits and Resignation/Termination
426
427 1. Salary
428
429 a. All employees shall be paid in accordance with the existing
430 minimum wage as prescribed by the Regional Tripartite Wage
431 and Regulatory Board (RTWRB) of the Department of Labor
432 and Employment (DOLE).
433
434 b. Annual increment is not automatic and is subject to the
435 satisfactory performance of the employee and the profitability of
436 the cooperative business which shall be determined by the
437 Board of Directors. The latter has the right to suspend the
438 necessary salary adjustments for personnel when the financial
439 condition of the cooperative is affected.
440
441 c. The Board of Directors shall exercise sole discretion to give
442 annual increment to regular employees.
443
444 2. Bonus
445
446 a. An employee may be given bonus at the entire discretion of the
447 Board of Directors (BOD) on top of the mandatory 13 th month
448 pay.
449
450 b. An employee who resigns or leaves the cooperative may be
451 paid in full or proportionate bonus at the entire discretion of the
452 Board of Directors (BOD).
453
454 c. The following policy shall govern the grant of bonuses of the
455 cooperative:
456
458
29 10 | P a g e
30
31
459 The employee bonus policy of SPUD Multipurpose Cooperative explains how
460 the cooperative distributes bonuses to employees. Employees are to be rewarded
461 whenever possible, since they all contribute to the success of the cooperative. This
462 policy clarifies how the Board of Directors (BOD) resolves the giving of the bonus and
463 how the latter will calculate bonus amounts.
464
466 2.2.1 This policy applies to all regular full-time employees of the cooperative.
467 Contractual employees are not eligible for bonuses.
468
469 2.2.2 The BOD has the right to modify this policy and bonus plans at any time
470 without notice to the employees subject to the coop’s performance.
471
473
483
487
32 11 | P a g e
33
34
491
493
494 13.3.1a. SPUD Multipurpose Cooperative may award lump-sum bonus (one-time
495 bonus payments) to employees who show exemplary performance. “Excellent
496 performance” is defined as:
502 2.3.1b. Upon determination of the Board of Directors, that there are employees
503 worthy of commendation for excellent performance, the BOD shall:
504
505 Consider giving lump-sum bonuswhich shall not exceed 30% of their respective
506 basic monthly salaries.
507 Send a formal letter to the employee who showed exemplary performance
508 congratulating him/her and informing him/her that he/she will receive a bonus.
509 Coordinate with the Treasurer to arrange for paying bonuses on time. Employees
510 should receive their bonuses within one month after approval.
512
514
515 The BOD has the authority to decide on productivity year-end bonus for all
516 employees. The following provisions shall govern the grant of such.
517
518 2.3.2a. The productivity year-end bonus shall be given to employees not later
519 than the third week of December of every fiscal year.
520
35 12 | P a g e
36
37
521 2.3.2b. The concerned employee/s shall have at least Very Good performance
522 rating during the first semester performance evaluation to qualify for the bonus.
523
524 2.3.2c. The interim computation for the productivity bonus that will be given to
525 employee/s in December for every year shall be from January to November only.
526 However, the Treasurer shall recompute the bonus amount which the employee/s will
527 actually receive after the determination of actual net surplus by the external auditor.
528 Lacking amount shall be given to employee/s not later than seven (7) days after the
529 external auditor has reported to the BOD the results of the audit, however, should the
530 amount given to employee/s in December exceeded the actual bonus, the amount
531 equivalent to the excess shall be deducted from the immediate salary of the concerned
532 employee/s, provided the amount shall not exceed P 2,000.00.
533 2.3.2d. In case of refund by employees resulting from the overages in the
534 provision of bonus amount to the cooperative, it shall be observed that should the
535 refundable amount exceeds P 2,000.00, the same shall be deducted for two (2) salary
536 months.
537
538 2.3.2e. The grant of productivity year-end bonus is not automatic. The following
539 criteria shall be the basis in granting such:
540
30 pts
38 13 | P a g e
39
40
below 10%
10 pts
5 pts
5 pts
0 pts
541
542 A. Net Surplus - refers to the amount of revenue recognized after deducting certain
543 operating expenses.
544
549
553
41 14 | P a g e
42
43
557 factor. In this policy, the employees are being measured on the utilization of
558 administrative expenses only such as but not limited to office supplies; meetings
559 and conferences; power, light and water; travel and transportation; and
560 miscellaneous expense.
561
562 2.3.2f. Based on the stipulated points system, the following metrics shall serve
563 as basis in the grant of monetary equivalent to be given to the employees:
564
565
567
568 3.3.1 The cooperative rewards employees who have been serving the
569 cooperative with dedication and excellence. A milestone of five (5) years shall be
570 observed for the giving of this privilege.
571 3.3.2 The provision of this bonus shall be as follows:
572 5 years of service - P 1,500.00
573 10 years of service - P 3,000.00
574 15 years of service - P 4,500.00
575 20 years of service - P 6,000.00
576 25 years of service - P 7,500.00
577 30 years of service - P 10,000.00
578
579 3.3.2 A plaque of appreciation shall also be given to the concerned employee
580 on top of the monetary reward as specified above.
44 15 | P a g e
45
46
581
582 4. Resignation and Termination of Service
583
584 a. An employee intending to resign from the service of the
585 cooperative may do so after giving at least thirty (30) days prior
586 notice in writing to the cooperative.
587
588 b. By the same token, the cooperative may give similar notice if it
589 wishes to terminate the service of an employee with the
590 exception of those whose services are to be terminated
591 because of grounds of misconduct.
592
593 5. Gazetted Public Holiday
594
595 a. The cooperative shall grant its employees paid holiday on all
596 public holidays gazetted by the government in which the
597 employees are working.
598
599 b. All Sundays will be considered rest day except for those working
600 on a shift as determined by the Management duly approved by
601 the Board of Directors.
602
603 c. Any work done at the cooperative request on a gazetted public
604 holidays or Sundays shall be paid in accordance with the rates
605 specified in the labor code except for those personnel working
606 under a commission basis.
607
608
609 6. Vacation Leave
610
611 a. The regular employees shall be entitled to a 7 days’ annual
612 vacation leave.
613
614 b. Annual leave entitlements are calculated based on calendar
615 year and for the purpose of such calculation, half (1/2) day shall
616 be treated as one day.
617
618 c. Employees (other than those still under probation) may apply for
619 leave provided that such leave applied for, shall not hamper the
620 operation of the cooperative.
621
622 d. Leave applications of the Manager shall be approved by the
623 Board of Directors (BOD) thru the Chairman of the Board while
624 all other leave applications of employees shall be approved by
625 the Coop Manager provided that all leave application forms must
47 16 | P a g e
48
49
626 be submitted to the approving officers five (5) days prior to going
627 on leave except for emergencies or illness.
628
629 e. All approved leaves may be cancelled at any time when
630 exigencies of the service require.
631
632 7. Maternity/Paternity Leave
633
634 a. Subject to the provisions of the law that apply:
635
636 i. Female employees who have been employed for a period
637 not less than nine (9) months immediately preceding her
638 confinement will be granted one hundred five (105) days
639 maternity leave on full pay.
640 ii. Maternity leave will be granted after the 28 th week of
641 pregnancy and as far as possible, application of
642 maternity leave shall be made not less that two (2) weeks
643 prior to the date on which it is desired that maternity
644 leave shall commence.
645 iii. Leave on account of miscarriage prior to the 28 th week of
646 pregnancy will not be considered as maternity leave but
647 as normal sick leave.
648 iv. A female employee shall not be entitled to such paid
649 maternity leave if at the time of her confinement she has
650 five (5) or more surviving children.
651 v. All married male employees are eligible for 7 working
652 days up to four (4) child birth including miscarriage of
653 legitimate spouse to be availed within sixty (60) days
654 from delivery/miscarriage.
655
656 8. Emergency Leave
657
658 a. The Cooperative may at its absolute discretion, grant an
659 employee emergency leave (i.e. leave taken at short notice or
660 without notice) in the following cases:
661
662 i. In the event of flood or fire which affects the employee’s
663 family or property
664 ii. On the death of the employee’s brother, sister, uncle,
665 aunt, brother-in-law, sister-in-law, nephew or niece
666
667 b. Such leave shall be deducted from the employee’s annual leave
668 entitlement.
669
670 c. For probationary employees, he/she may be granted
671 emergency leave provided that it will be without pay.
50 17 | P a g e
51
52
672
673 9. Sick Leave
674
675 An employee shall be entitled to three (3) days sick leave. If the leave
676 exceeds one (1) day, such leave can only be granted if supported with
677 certification by a registered medical practitioner or government Medical Officer
678 and must inform the cooperative immediately.
679
680 Section 10. Official Travels, Retrenchment and Retirement
681
682 10.1. Official Travel
683
684 a. Employees required to travel on cooperative’s business can
685 travel choosing the most economical means of transportation.
686
687 b. An employee must seek prior approval before the travel.
688
689 c. Travel report should be submitted as pre-requisite to travel
690 reimbursement.
691
692 d. All personnel shall secure a Travel Assignment Authority (TAA)
693 before availing of any official travel except for the water refilling
694 business deliveries which only require Vehicle Trip Ticket.
695 e. All personnel shall use the biometrics during in between official
696 travels except for water refilling business deliveries using
697 Vehicle Trip Ticket provided time out and time in for deliveries
698 must be reflected on the trip ticket. (Example: Approved TAA
699 (9:00 AM - 3:00 PM, so the personnal shall use the biometrics
700 to time out at 9:00 AM, and when he/she arrives back at the
701 office, he/she has to Time in, so as a result, the employee has 2
702 Time-ins and 2 Time-outs which means the 2 nd time in and time
703 out would mean that in between hours shall be considered
704 official.
705
706 f. All DTRs generated by the biometrics shall be initially reviewed
707 by the immediate supervisor concerned particularly the Coop
708 Manager. This will also be reviewed by the Coop Treasurer to
709 ensure correctness of the entries and finally be attached as
710 supporting document of the Check Voucher that will be
711 prepared for approval by the Coop Board Chairman. A check
712 shall be prepared for the consolidated amount in the payroll
713 attachment based on a previous month’s attendance (salary on
714 the 15th is (previous month’s working days 1-15); salary on the
715 30th or 31st shall be (previous month’s working days 16-30/31).
716 This provision supersedes previous policy on the release of
53 18 | P a g e
54
55
56 19 | P a g e
57
58
763 rate not to exceed P800 per day shall prevail. Excess amount
764 shall be shouldered by the personnel concerned. Room sharing
765 is highly encouraged.
766
767 b. The rate or amount of transportation and subsistence allowance
768 shall be reviewed and updated by the cooperative to reflect
769 prevailing economic conditions. For the meantime, the rate for
770 subsistence for travel beyond 50 kilometers is fixed at P100.00
771 for breakfast; P 200 for lunch and dinner. In case free breakfast
772 is part of the accommodation, the allowance is deemed
773 excluded. Moreover, less than 50-kilometer travel can only avail
774 the transportation allowance subject for liquidation with no food
775 subsidy budget.
776
777 c. All official travels beyond the 5-kilometer radius but less than 50
778 kilometers can avail of a daily P100 per diem, while those
779 beyond the 50-kilometer radius, is entitled to a P200 daily per
780 diem. Within the 5-kilometer official travel cannot avail of any
781 per diem except for transportation allowance.
782
783 d. A day is defined by 24 hours. A fraction of less than five (5)
784 hours shall be regarded as a half-day.
785
786 e. All water refilling business deliveries are not entitled to any per
787 diem since this is the nature of its operations.
788
789 11. Retrenchment and Retirement/Separation Benefits
790
791 a. An employee whose service is to be terminated on the grounds
792 of redundancy , i.e., whose service is deemed not needed by
793 reason of any reorganization of the cooperative or loss of
794 business, shall be notified in writing at least thirty (30) days in
795 advance and shall be compensated in accordance with law.
796
797 b. SPUDMPC employees who will be separated from the service
798 due to retrenchment and/or retirement shall be entitled to
799 benefits under existing labor laws.
800
801 c. The following table presents the retirement and separation
802 benefits of the coop employees, viz:
803
Particulars Age/Years of Service Benefits
Retirement
Benefits
Compulsory Age of 65 100%
Optional Age of 60; At least 20 90%
59 20 | P a g e
60
61
years in service
Voluntary
Separation
Benefits >/=30 years 100%
25 to <30 years 80%
20 to <25 years 60%
15 to <20 years 40%
10 to <15 years 20%
<10 years 0%
Temporary Total >/=30 years 100%
Disability 25 to <30 years 80%
20 to <25 years 60%
15 to <20 years 40%
a) Temporary total
10 to <15 years 20%
disability lasting
<10 years 0%
continuously, not less
than 60 days or not
more than 120 days
c) Permanent or
complete paralysis of
one (1) limb
Involuntary Separation
Benefits
>20 years 100%
Permanent Total
15 years to <20 years 75%
Disability
10 years to <15 years 50%
5 years to <10 years 25%
1 year to <5 years 15%
<1 year 0%
804
62 21 | P a g e
63
64
805 d. The Length of service shall must mean the period from the date
806 hired up to the time of retirement, disability or death.
807
808 e. A fraction of at least six (6) months must be considered one (1)
809 year for purposes of determining the length of service.
810
816
65 22 | P a g e
66