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SCHEDULE 1
EMPLOYEE RIGHTS – DEDICATED STAFF IN PHILIPPINES
1. HOURS
a. The Dedicated Staff work for nine (9) hours a day (inclusive of meal breaks), five (5) days a week.
b. Hours work include all time during which the Dedicated Staff are required to be on duty or to be at a prescribed workplace. Outsourced, as part of its policy, adheres to a fifteen (15) minute grace period at the beginning of their shift. During that grace period, the Dedicated Staff would not be considered tardy. Tardiness shall be counted upon the lapse of the grace period.
2. MEAL BREAK
a. The Dedicated Staff are given a one (1) hour meal break per day, and two (2) short fifteen (15) minute breaks.
b. The one (1) hour meal break shall not be deemed compensable, while the two (2) short fifteen minute breaks are deemed compensable under the Implementing Rules and Regulations of the Labor Code of the Philippines.
3. HOLIDAYS
a. Dedicated Staff are entitled to take standard Philippine holidays as provided under Regular Public Holidays in the Philippines This includes all other national or city holidays that may be declared by the Philippine Government.
b. The Philippine Government may announce unplanned and/or movable holidays. The Client will be notified at least seven (7) days in advance upon declaration of the Philippine Government.
c. If the Client requires the Dedicated Staff to report for work on a holiday, the Client shall be invoiced the corresponding premium pay.
d. If the Client does not require the Dedicated Staff to report for work on a holiday, the same shall still be invoiced as a worked day in compliance with Philippine Labor Laws.
e. The holiday schedule of the Client’s country shall not be considered in determining whether Dedicated Staff should work or not.
4. LEAVES
a. Company policy leaves
i. Standard Leave Policy
- Within the first year of the Dedicated Staff, the Dedicated Staff are entitled to ten (10) sick days and ten (10) vacation days.
- The following year, the staff are afforded ten (10) sick days and ten (10) vacation days.
- After two (2) years of service, the Dedicated Staff are entitled to ten (10) sick days, and fifteen (15) vacation days.
- The paid leaves are in addition to the holidays provided under Clause C of this Schedule.\
- These company leaves are considered as paid leaves which are invoiced to the client annually at the day rate should these leaves be unused, which shall likewise be applicable for Dedicated Staff who leave at the middle of the year.
ii.Policy on Mandatory Time Off. Mandatory time off or forced leaves due to non-operating business days and/or holidays of the client, or any analogous causes, or upon request of the client, shall not be applicable to Outsourced and the dedicated staff.
iii. Leave Cash Conversion
iv. Outsourced provides its Dedicated Staff with a standard policy on unused earned leave conversion to cash yearly for a maximum of five (5) vacation days and five (5) sick days. In the event that the Dedicated Staff opts to convert said unused earned leaves to cash, the Client is invoiced on an annual basis within the first quarter of the calendar year.
v. However, if the Client opts to have its Dedicated Staff exhaust all of their leave days within the year instead of converting unused leave to cash, this shall be communicated to Outsourced in writing prior to the placement of the Dedicated Staff.
vi. Once the Client has chosen the preferred leave policy, it will remain in effect for the duration of the Contract, unless otherwise modified, revised, amended or agreed to in writing by both parties.
b. Statutory leaves
The following leaves may be availed by the Dedicated Staff based on the foregoing circumstances:
1. Maternity leave
a. Philippine labor laws provide that any Dedicated Staff who fall pregnant are entitled to One Hundred Five (105) calendar days maternity leave. In case of a miscarriage, the Dedicated Staff is entitled to sixty (60) calendar days maternity leave.
b. The Dedicated Staff shall remain assigned to the Client during her maternity leave and shall not be dismissed or her services terminated during this period.
c. Outsourced will cover the salary of the Dedicated Staff during this period for any maternity leave taken during her first year of service. Any maternity leave taken after the first year of service will be invoiced to the Client, less the standard amount of Seventy Thousand Pesos (P70,000.00) subsidized by the Philippine Government.
2. Paternity leave
a. A seven (7) day paternity leave may be availed by a married male Dedicated Staff, allowing him to assist in the childbirth, recovery and nurturing of their child.
b. Paternity leave may only be availed for the first four (4) deliveries or miscarriages of his wife, with whom he is married and cohabiting with.
c. An additional seven (7) day paternity leave may be granted by his spouse during the latter’s maternity leave.
3. Parental leave for Solo Parents. A solo parent is entitled to seven (7) days paid leave a year. A solo parent is defined as one who gave birth to a child, or is in custody of their child, who does not have a partner or spouse by reason of death, imprisonment, legal separation, annulment, abandonment.
4. Leave for victims of violence against women. Dedicated Staff who are victims of violence against women, as defined under Republic Act No. 9262, are entitled to up to ten (10) days paid leave.
5. Special leave benefits for women. In the event that a female Dedicated Staff member requires surgery involving gynecological disorders, said Dedicated Staff is entitled to a special leave of two (2) months with pay, as prescribed under Republic Act No. 9710).
5. PREMIUM PAY
Outsourced invoices the Client the corresponding rates should the Dedicated Staff be required to work under the following circumstances:
- Work on a holiday
a. 200% of the standard charge out rate per day, if the Dedicated Staff work on a regular holiday, and at 130% of the standard charge out rate per day if the Dedicated Staff work on a special non-working holiday.
b. Should two (2) holidays fall on one calendar day (ex. Maundy Thursday or Good Friday and Day of Valor), 300% of the standard charge out rate per day if the Dedicated Staff works on said day. If not, 200% of the standard charge out rate shall apply. - Overtime work
a. Overtime work rates apply if the Dedicated Staff perform work or services above the part-time or full-time hours agreed upon, which shall be invoiced at 125% for each hour of overtime worked.
b. Overtime shall only be performed following a written request and approval from the client. - Night Shift differential
a. Night shift differential rates apply for work or services performed during the night time in Manila, Philippines. Night shift differential applies for any work performed between 10:00 PM and 6:00 AM, Manila time.
b. Night shift differential is invoiced 110% for hours falling within the night shift hours. - Work on a rest day
a. Dedicated Staff are entitled to two (2) rest days per week. Any work performed during the Dedicated Staff’s rest day shall be invoiced 130% of the standard charge out rate per day. - SECURITY OF TENURE
a. The Dedicated Staff are entitled to security of tenure and may only be dismissed with just and valid cause and observance of due process.
b. Outsourced properly observes due process, through the assistance of the Client in the following manner:
i. Report on the performance, behavior, or action of the Dedicated Staff to be forwarded to Outsourced;
ii. The report shall contain a brief and concise narration of the incident which brought about the report, together with documentary proof;
iii. Outsourced, through its Human Resources Department (HR), shall issue the necessary Notice to Explain to the Dedicated Staff, giving the staff an opportunity to explain themselves.
1. In case of performance issues, the Dedicated Staff shall also be placed under Performance Improvement Plan (PIP) for not more than thirty (30) calendar days.
2. The Dedicated Staff placed under PIP shall be given an opportunity to improve their performance based on parameters and/or guidelines provided by the Client.
3. Prior to the expiration of the PIP, Outsourced shall request feedback from the Client in relation to the Dedicated Staff’s performance.
4. Should the Dedicated Staff improve their performance, the Dedicated Staff shall remain assigned to the Client.
5. In case the Dedicated Staff fail to reach the parameters, or worsen their performance, the Dedicated Staff’s services shall be terminated.
iv. Upon submission of the written explanation, the HR shall assess the Client’s report and the Dedicated Staff’s explanation and render a decision whether or not to impose disciplinary action or dismissal of employment of the Dedicated Staff.
c. Redundancy
i. Redundancy exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. In the case of this Agreement, since the Dedicated Staff are engaged by Outsourced due to the Client’s requirements or specifications, any termination of this Agreement shall be categorized as redundancy.
ii. In case of redundancy, the Client is required to provide written notice to Outsourced sixty (60) calendar days prior to the intended termination thereof, and the terms under Clause 11.3, 11.4, and 11.6 hereof shall apply as necessary.
iii. The staff shall be paid redundancy pay equivalent to one month pay for every year of service started, i.e., less than 1 year service (1 month redundancy pay), 1 year to 2 years (2 month redundancy pay), and so forth.
