labor code pd 442 as amended - adfap.comadfap.com/conventions/resources/hiring and firing...

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The Bishop is the only juridical entity, parishes are not recognized as juridical entities. Parish Priests (PP for brevity) are alter egos of the Bishop. The act of the PP binds the Bishop, therefore it is very crucial to take note of the following: LABOR CODE PD 442 as amended I Hiring of Employees: a. Determine the need to hire. Created need vs. real need. b. Basis of Minimum Wage: DOLE Rules Implementing Wage Order No. RTWPB-XI-12 i. Sector: Service. Service establishment: one principally engaged in the service to individuals. Employing more than ten (10) workers P209 basic wage plus COLA-P15 =P224/minimum wage. ii. How to compute: applicable daily rate x 365 =Equivalent Monthly rate 12 Where 365 days/year = 302 ordinary working days 51 rest days 10 regular holidays 2 special holidays 365 total equivalent no. of days/yr NOTE: We may opt not to pay the 51 rest days, that means: P265 X 314 days / 12 months = P6,934.16 A. Benefits mandated by law: 1. Service Incentive Leave (SIL for brevity): i. Five (5) days with pay to be given to an employee who has rendered at least one (1) year of service except to domestic helpers and persons in the personal service of another; ii. One year means service within 12 months, whether continuous or broken, reckoned from the date the employee started working. Includes authorized absences, unworked rest days, and paid regular holidays; iii. The SIL may be used for sick and vacation leave purposes. The unused SIL is commutable to its money equivalent at the end of the year. Note: Vacation leave and sick leave are not mandatory benefits. In the absence of a policy, practice takes the nature of the law. Thus, benefits given can no longer be diminished. Some parishes might give

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Page 1: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

The Bishop is the only juridical entity, parishes are not recognized as juridical entities. Parish Priests (PP for brevity) are alter egos of the Bishop. The act of the PP binds the Bishop, therefore it is very crucial to take note of the following:

LABOR CODE PD 442 as amended

I Hiring of Employees:

a. Determine the need to hire. Created need vs. real need. b. Basis of Minimum Wage: DOLE Rules Implementing Wage Order

No. RTWPB-XI-12 i. Sector: Service. Service establishment: one principally

engaged in the service to individuals. Employing more than ten (10) workers P209 basic wage plus COLA-P15 =P224/minimum wage.

ii. How to compute: applicable daily rate x 365 =Equivalent Monthly rate 12 Where 365 days/year = 302 ordinary working days 51 rest days 10 regular holidays 2 special holidays 365 total equivalent no. of days/yr

NOTE: We may opt not to pay the 51 rest days, that means: P265 X 314 days / 12 months = P6,934.16

A. Benefits mandated by law:

1. Service Incentive Leave (SIL for brevity):

i. Five (5) days with pay to be given to an employee who has rendered at least one (1) year of service except to domestic helpers and persons in the personal service of another;

ii. One year means service within 12 months, whether continuous or broken, reckoned from the date the employee started working. Includes authorized absences, unworked rest days, and paid regular holidays;

iii. The SIL may be used for sick and vacation leave purposes. The unused SIL is commutable to its money equivalent at the end of the year.

Note: Vacation leave and sick leave are not mandatory benefits. In the absence of a policy, practice takes the nature of the law. Thus, benefits given can no longer be diminished. Some parishes might give vacation leave and sick leave, this may cause confusion to the other employees belonging to other parishes. 2. 13th Month pay:

iv. Given to rank and file employees only; v. 13th month pay does not include allowances and

monetary benefits not considered or integrated as part of the regular or basic salary.

Page 2: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

vi. Exempted: employers of household helpers. vii. To be paid not later than 24 December of each year.

Employer may give ½ before the opening of the regular school year and the other half on or before the 24th of December of every year;

viii. Resigned or separated employee: an employee who has resigned or whose services are terminated at any time before the time of payment of the 13th month pay is entitled to his monetary benefit in proportion to the length of time he worked during the year reckoned from the time he started working during the calendar year up to the time of his resignation or termination from the service;

ix. The mandated 13th month pay need not be credited as part of regular wage of employees for purposes of determining contributions to the State Insurance Fund, SSS, Medicare etc…

3. Holiday Pay:

i. Does not apply to domestic helpers; ii. Every employee is entitled to his daily basic wage

for any unworked regular holiday. This means that the employee is entitled to at least 100% of his basic wage even if he did not report for work. Work performed on that day merits at least twice (200%) the basic wage of the employee;

iii. 10 regular holiday under Executive Order No. 203, to wit:

1. New Years Day January 1 2. Maundy Thursday Movable date 3. Good Friday Movable date 4. Araw ng Kagitingan April 9 5. Labor Day May 1 6. Independence Day June 12 7. National Heroes Day last Sunday of August 8. Bonifacio Day November 30 9. Christmas Day December 25 10. Rizal Day December 30

National Special Holidays: All Saints Day November 1 Last Day of the Year December 31 The principle of “no work no pay” applies and on such other special days as may be proclaimed as such by the President or by Congress.

4. Premium Pay: i. Refers to the additional compensation required by

law for worked performed within eight (8) hours on non-working days, such as rest days and special days;

ii. Does not apply to domestic servant; iii. For work performed: 30% of the daily rate of 100%

or a total of 130%.

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5. Separation Pay: i. Employees entitlement to separation pay depends

on the reason or ground for termination on his services;

ii. Just cause- may not be entitled to separation pay iii. Authorized cause- separation pay is due.

6. Overtime Work: i. Work performed beyond eight (8) hours

7. Retirement Pay: i. Employees shall be retired upon reaching the age of

60 years or more but not beyond 65 years old. ii. The minimum retirement pay shall be equivalent to

½ month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.

1. One half month shall include: a. 15 days salary on the latest salary rate; b. Cash equivalent of 5 days SIL c. ½ of the 13th month pay. d. Employer may add.

8. Maternity Benefits: i. All female employees whether married or unmarried

ii. 60 days normal delivery/miscarriage iii. 78 days-caesarian section iv. She should be an SSS member employed at the

time of delivery of miscarriage. Must have given the required notification to the SSS thru her employer and her employer must have paid at least three months of maternity contributions within the 12 month period immediately before the date of the contingency;

v. Maternity benefits like other benefits granted by the SSS are granted to employees in lieu of wages.

9. Paternity Leave: i. Granted to all married male employees regardless of

employment status ( regular, contractual, project basis) the purpose of which is to allow the husband to lend support to his wife during her period of recovery and/or in the nursing of her newborn child;

ii. Applies to the first four deliveries of the employee’s lawful wife with whom he is cohabiting;

iii. The leave shall be for seven (7) days with full pay; iv. Availment of the leave, may be after the delivery

without prejudice to an employers’ policy of allowing the employee to avail of the benefit before or during the delivery;

v. Said leave is not convertible to cash.

10. Night Shift Differential: i. Additional compensation of ten percent (10%) of an

employee’s regular wage for each hour of work performed between 10:00 PM and 6:00AM

11. Service Charges : i. Equal share in the 85% of the total service charge.

The remaining 15 % may be retained by management to answer for losses and breakages.

12. RA 8972 Solo Parent Leave

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i. Additional leave privileges of not more than 7 working days every year in addition to existing leave privileges;

ii. Solo parent i.d. must be issued and signed by the City Social Services Office to avail of this benefit.

Casual/Regular employees. Labor Code: Book VI Rule 1Section 5

a.Regular employment- Where an employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer except where the employment has been fixed for a specific project on undertaking the completion or termination of which has been determined at the time of the engagement of employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season. b. Employment shall be deemed casual in nature if it is not covered by

the preceding paragraph; provided that any employee who has rendered at least one year of service, whether such service is continuous or not, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.

c. An employee who is allowed to work after a probationary period shall

be considered a regular employee.

Labor Code: Section 6 : Probationary period:

a. not to exceed 6 months; b. terminate for a just cause or when authorized by existing laws,

or when he fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer;

c. employer to make known to the employee the standards under which he will qualify as a regular employee.

13. Hiring of Parish Staff/ Volunteers/ Helpers:

Parish Staff:

For parishes where financial resources are limited: a. Let the applicant personally write the Parish Priest, let

them copy the form attached ( refer to template of forms); b. Use the Appointment form in accepting the applicant and

attach the scope of work; c. honorarium shall be given in lieu of minimum age.

Honorarium is defined as –a voluntary special payment for services rendered.

For parishes that can afford to hire regular workers:

1.Determine the need to hire; 2. Secure an application letter; 3. Interview the applicant; 4. Issue the corresponding Appointment.

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For Volunteers: 1. Let the volunteer write a letter, see attached form. 2. Issue the corresponding Appointment; 3. Schedule formal sending

For Helpers: Article 141 of the Labor Code: Employment of Helpers: ( ex. Cook, gardener, convent boy, laundry woman etc…) Note: A Priest being unmarried is presumed to have no household, thus the persons he employs ( drivers, cooks etc) are persons in the personal service of another. They administer to the personal comfort and convenience of the priest. Article 143: Minimum wage. The amount in the labor code is P650.00 thus, any agreement higher than that is all right. Article 146: Opportunity for education:

If the househelper is under the age of 18 years, the employer shall give him or her an opportunity for at least elementary education

BOOK VI

POST-EMPLOYMENT RULE I : Termination of Employment and Retirement Section 1 : applies to all including religious institutions… exc. Govt. Section 2 : terminate for just cause.

Section 7 : Termination of employment:

a. Termination for Just Cause NO termination pay. Article 282: Just Causes;

a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative;

b. Gross and habitual neglect by the employee of his duties; c. Fraud or willful breach by the employee of the trust

reposed in him; d. Commission of a crime or offense by the employee against

the person of his employer or any immediate member of his family.

Note: Issue memorandum so that you have basis to support your decision to terminate. Let the memo be received and make them part of his/her 201 files. If possible, forward a copy to the Chancery, each parish to have a folder for memo issued under this section, so that when parish priests are re-assigned, the documents remain intact.

Other authorized causes analogous to the foregoing-WITH termination pay.

Page 6: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

Article 283: Closure of establishment and reduction of personnel. Separation Pay: One month pay for every year of service:

a. installation of labor-saving device; b. redundancy; c. impossible to substitute for reasons not attributable to

employer ( ex pending court case and its taking long; d. position no longer exists. If NLRC rules for

reinstatement but the present set up is no longer feasible or it will further strain the relationship

Separation Pay: ½ or 1 month for every year of service whichever is higher:

e. closure or cessation of operation of the establishment or undertaking unless the closure is for the purpose of circumventing the provisions of the law;

f. retrenchment to prevent losses; but if due to serious losses or financial reverses –no pay; and

Article 284. Disease as a ground for termination.

Employee suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health and other employees.

Note: AUTHORIZED CAUSES: notice to the employee and DOLE at least one (1) month before the intended date of termination. To fast track , pay 1 month salary in lieu of notice. The 1 month salary serves as separation pay. But for JUST CAUSES, due process should be observed prior to termination. 1 month notice is not applicable. NOTE: Due process to be observed:

a. Send 1st Notice to the employee ( see attached form); b. Conduct investigation ; c. After the investigation, state the result of the investigation and

action taken; d. Notify the employee of the action taken and send him/her a

copy of the notice. Let the employee receive the notice, in case of refusal, indicate in the notice “refused to receive” and let a witness sign on the notice;

e. Submit to the DOLE the Notice of termination and fill up the prescribed form (see attached form)

Article 285: Termination by employee:

a. Notify the employer 1 month in advance otherwise the employee may be held liable for damages.

TITLE II Retirement from the service

a. Article 287 as amended by RA 7641: an employee may retire upon reaching the retirement age of 60 or more but not beyond 65 years old.

b. Amount of Retirement Pay: a. minimum shall be equivalent to ½ month salary for every year

of service, a fraction of at least 6 months being considered as one whole year.

b. ½ month shall include the following: a. 15 days salary based on the latest salary rate;

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b. Cash equivalent of 5 days of SIL c. 1/12 of the 13th month pay.

Note: Other benefits may be included in the computation of the retirement pay upon agreement of the employer and the employee

Prescription of Claims:

Article 291. Money claims. a. all money claims arising from the employer/employee

relationship shall be filed within 3 years from the time the cause of action accrued; otherwise they shall be forever barred.

OTHERS:

1. Put benefits in writing, example food, lodging, transportation allowance to form part of the salary:

a. employee must agree and sign; b. effects: even if the wage is lower, the benefits will enable the

employer to achieve the minimum wage; if the minimum wage is given then the benefits increases the wage.

Page 8: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

FOR PARISHES WITH LIMITED FINANCIAL RESOURCES:

1. Let the applicant write a letter; 2. issue the appointment:

Letter: Name of Parish Priest Name of Parish Address of Parish Dear ____________, I am aware of the limited financial resources of the parish and I would like to help as a volunteer on an irregular basis. I am willing to accept allowance that the parish is able to give. I will serve as a volunteer and will not hold the parish for any other financial liability and I do this on my own volition with the noble intention to help my parish. I hope that you will accept my offer to serve as a volunteer. Respectfully yours, Name of volunteer

[draft for parish staff]

APPOINTMENT

In consideration of your application as volunteer of this parish dated __________you are hereby appointed as [ state position ] and as such you will be receiving an honorarium in the amount of _________ per month. Please be informed that the Parish is purely dependent on donations, thus operating not as a profit institution. Your work, however, will not be dependent on the receipt of allowance. Consequently, for any of your conduct contrary to what the Bishop stand for morally and doctrinally in the Catholic Church, you cannot expect to retain your position by reason of this appointment. See separate cover for the scope of your undertaking. Should you accept the terms and conditions of this appointment, affix your signature below. Done this ___ day of ___________, Davao City, Philippines. Conforme: [name of parish] ____________________ by: ____________________ Witnessed by: _____________________ _________________________

Page 9: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

FOR OTHER PARISHES WITH FINANCIAL CAPABILITY:

[draft for parish staff]

APPOINTMENT

You are hereby appointed as [ state position ] and as such you will be receiving salary in the amount of _________ per month. The [name of parish] will provide benefits required by law, to include, 13th month pay, SSS enrollment, enrollment in the State Insurance Fund.

Consequently, for any of your conduct contrary to what the Bishop stand for morally and doctrinally in the Catholic Church, you cannot expect to retain your position by reason of this appointment. As for your job description, see attached paper. Should you accept the terms and conditions of this appointment, affix your signature below. Done this ___ day of ___________, Davao City, Philippines. Conforme: [name of parish] _____________________ by: ____________________ Witnessed by: _____________________ _________________________

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[draft for parish helpers]

APPOINTMENT You are hereby appointed as [ state position: cook, convent boy, laundrywoman, gardener, driver ] and as such you will be receiving a salary in the amount of _________ per month. Should you accept the terms and conditions of this appointment, affix your signature below. Done this ___ day of ___________, Davao City, Philippines. Conforme: [name of parish] _____________________ by: ____________________ Witnessed by: _____________________ _________________________

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FOR VOLUNTEERS

1. Let the volunteer prepare the letter; 2. Issue the corresponding appointment

Letter: Date Name of Parish Priest/Program Director Name of Parish/ Center Apostolate Address of Parish/Center Apostolate Dear ______________ I am volunteering my services free of charge for ( state name of activity or project ).

I commit myself to perform my mission to the best of my ability with full knowledge that the (parish/center) will not be liable for any financial consideration and that my services will only be for a limited period. Thank you very much. Truly yours, Name of volunteer

[draft for parish/center volunteers]

VOLUNTEER AGREEEMENT I,_____________,of legal age, resident of _____________ am volunteering my services for fee for the [state what program, activity, project) as I am covered by the Church doctrines, discipline, and rules, the violation of which merits my own canonical sanction. I will not hold the [state name of parish or center apostolate] from any financial liability since I am volunteering my services free from any form of remuneration.

I bind myself whole heartedly to comply with the mission assigned to me and I give to the [name of parish if parish. Name of pastoral director if screening of volunteers is centralized] its right to pre-terminate this volunteer agreement.. This volunteer agreement shall cease upon the completion of the [state the program, activity, project] or when pre-terminated by the Spiritual Director. It is with the best of intentions that I offer my services and am respectfully requesting that [name of parish priest/pastoral director] accept my offer to serve for free. Done this ___ day of ___________, Davao City, Philippines. Name and signature of the volunteer: Accepted by: [name of parish/pastoral director] ________________ Witnessed by: __________________ _______________________

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FORM FOR EMPLOYEES HIRED BASED ON GRANTS/ OR PROGRAMS SUBSIDIZED BY THE DIOCESE: DATE NAME ADDRESS Dear Ms. _______________, Warmest Greetings! I am pleased to offer you a short tem appointment to the staff of (name of project or program or center). We expect to need your services for __ months during the period _________to ______________ in the ( state address) Your Terms of Reference or Job description are attached. By signing this letter of appointment you agree to carry out your appointment in accordance with you Terms of Reference or Job Description. Your remuneration will be at the rate of ___ per month. In the event the ( center, project etc) finds it necessary to cancel the assignment or project or to shorten its duration, the ( name of center ,project) reserves the right to adjust the Terms of Reference or Job description as necessary. Your appointment will terminate at the end of the period unless it is extended or a new appointment is made. Yours, truly, ____________________ Name of the Spiritual Director I accept: _____________________ Name of employee And date signed

Page 13: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

APPOINTMENT LETTER FOR THE BISHOP’S DRIVER. You may use this for the Parish Priest’s drivers. DATE Name of Applicant Address of applicant Dear _____________, In consideration of your application letter dated _______I wish to formalize your appointment on probation as ( personal driver) of (Bishop________ or Fr. ______________). As such, you will be his personal service, reporting to him directly or to his duly designated assistant, and be apprised by them of your schedule, your duties and responsibilities. This appointment covers a monthly compensation of P___________. You will be on probation from ____________to ________________, or a period of six (6) months. Thereafter, should you be found fit for such a confidential appointment, you will become the permanent driver of the (Bishop, Parish Priest). You tenure, however, is co-terminus with the Bishop’s/ Parish Priest’s engagement with the Diocese of Davao/Parish of ______. Consequently, for any of your conduct contrary to what the Bishop/Parish Priest stands for morally and doctrinally in the Catholic Church, you cannot expect to retain your position by reason of this appointment. If you are in agreement with this appointment, kindly sign your conforme in the space provided below. God Bless, I remain In our Lord, ________________ Name of Bishop/s rep or Parish Priest’s rep Position

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TERMINATION PROCEDURE: This is the first Notice:

[draft] Name of Parish

Memorandum To : name of employee From : parish priest Subject : Serious Misconduct Date : ______________ You are hereby directed to explain and submit in writing your answer pertaining to the complaint of Serious Misconduct that transpired on [state details] _________________ Parish Priest Note: After the investigation, you come out with your report on the action taken: This is your second notice:

[draft] Name of Parish

Memorandum To : name of employee From : parish priest Subject : Investigation held last __________ Date : ______________ Based on the investigation conducted last ________ it was learned that (state briefly the details and the side of the employee), it is the decision of this (state the decision, the action/ recommendation- if suspension, reprimand, or dismissal and the reasons supporting the decision). __________ Parish priest Note: if for just cause, then termination pay is not required and the employee may be terminated upon service of this notice. If for other causes, ex. Redundancy- we need to send the notice. Termination will take effect after one month from receipt of the notice to terminate service. If we want to fast track then we pay one (1) month salary, that takes the place of the one month notice. NOTE: We will submit the notice of termination to DOLE and we will fill out the form.

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(LETTER HEAD)

SEAPARATION CLEARANCE This is to certify that ______________________ is cleared of all money and property responsibilities with the ____________________ as of ________________________. ______________________________ Admin/Personnel Manager = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = I hereby acknowledge to have received from _________________ the amount of ____________________________ (P_______) representing full payment and settlement of all my wages/salaries. 13th month pay and other employment benefits up to ( state date). _______________________ Employee’s Signature over Printed Name Note: photocopy the checks, and vouchers and make the employee sign them as received.

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LETTER TO DOLE FORCLOSURE OF BUSINESS DUE TO FINANCIAL REVERSES: LETTERHEAD Date The Regional Director DOLE-Regional Office No. XI Sir We write on behalf of the _______________a duly registered Philippine corporation, operating a radio station in _________________. For the past-years the __________ has suffered losses in its operations/ financial reverses causing impairment of the company’s capital. In view of the above development, we regret to advise that _______________management will cease operations within the next ___ weeks and will affect the jobs of approximately ___ employees, including management personnel. By provisions of Article 283 of the Labor Code, we shall commence separation of the services of all employees to take effect on ______________. All employees, prior to separation, will be given the required 30-day notice under the Labor Code, or, alternatively, in order to help them during this period, management may grant a salary advance equivalent to 30 days, in lieu of notice. This way, they will have at least one month’s pay as they seek employment elsewhere. Because of extreme financial crisis, and unavailability of enough fund to pay in full the above-stated financial assistance, management shall grant said assistance in staggered fashion. An amount equivalent to 50% of total benefits shall be paid immediately upon separation and the remaining balance of 50% shall be paid on or before six (6) months from date of separation. Likewise a skeleton crew, possibly consisting of accounting, credit and collection personnel may be maintained to process payments for company receivables or to pay outstanding company obligations. Management shall furnish your office in due time a list of employees/workers separated. On behalf of management of the _____________- we take this opportunity to thank your office for the invaluable assistance you have rendered for the company in the interest of industrial peace. Very truly yours, _____________________ By: ______________________

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DEED OF DONATION KNOW ALL MEN BY THESE PRESENTS: This DEED of DONATION made and executed in the City of Davao, Philippines, this ____day of _____________ made and executed by and between:

_____________,( name of donot), of legal age, Filipino, Married/single, with residence and postal address at

____________________and herein after called the DONOR; THE ROMAN CATHOLIC BISHOP OF DAVAO INC., a corporation sole duly organized and existing under Philippines laws with office at 247 Florentino Torres Street, Davao City, Philippines, herein represented by ARCHBISHOP FERNANDO R. CAPALLA, herein after called the DONEE and:

W I T N E S S E T H : That the DONOR is the owner in fee simple of that certain real property with all the improvements thereon situated in the Barangay of ______Municipality/city of ____________, Province of_______________Philippines covered by Transfer Certificate of Title No. T-____________of the Registry of Deeds of______________y and more particularly described as follows:

( Technical Description of the Property)

That for and in consideration of the love and affection which the

DONOR has for the DONOR, the said DONOR by these presents transfers and conveys, by way of DONATION, unto the said DONEE, its assigns, and successors-in-interest, the above-described real property, with all the improvements thereon, free from all liens and encumbrances.

That the DONOR, does hereby state, for the purpose of giving full

effect to this donation, that he/she has reserved for himself/herself in full ownership sufficient property to support him/her in a manner appropriate to his/her needs;

That the DONEE does hereby accept this donation of the above-

described real property and does hereby express its gratitude for the kindness and liberality of the DONOR;

IN WITNESS WHEREOF, the DONOR and the DONEE have hereunto set

their hands this ___ day of _________________, Year ______ in the municipality/city of ______________, Province of _________________ Philippines.

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_______________________ (signature of DONOR over name)

ACCEPTED: ______________________________________ Archbishop Fernando R. Capalla THE ROMAN CATHOLIC Tin Number: 191-182-530 BISHOP OF DAVAO, INC.

Signed in the presence of:

_____________________________ _____________________________ Fr. Jose Junar N. dela Victoria and Archdiocesan Oeconomus

ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES CITY OF DAVAO BEFORE ME, this ___ day of ____________ 200_, in the City of Davao personally appeared____________________ with ______________and ____________ with _______________ known to me to be the same persons who executed the foregoing instrument consisting of ___ pages, including the page on which this acknowledgment is written, each and every page of which has been signed by the parties along the margins, and they acknowledged to me that the same is their free act and deed. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my notarial seal, the day, year and place above written Doc No. ____; Page No. ____; Book No. ____; Series of 200_

SECURITY SERVICE CONTRACT

KNOW ALL MEN BY THESE PRESENTS: This Contract made and executed this ______ day of ________ at _____________City, by and between: ______________________________________, a security agency duly licensed and existing under and in accordance with Philippine Laws, with principal address at ________________________________________, represented herein by its Manager, ________________ hereinafter referred to as the AGENCY:

- and –

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THE ROMAN CATHOLIC BISHOP OF DAVAO, INC. a corporation sole organized and existing under and by virtue of the laws of the Republic of the Philippines with office address at _____________, represented herein by ________, hereinafter referred to as the CLIENT. WITNESSETH- That: WHEREAS, the CLIENT desires to engage the services of the AGENCY for the purpose of maintaining peace and order at its premises located at the____________by protecting and guarding its properties at said place from theft, robbery, arson, destruction or damage as well as protecting and safeguarding its officers, directors, employees, visitors and guests from assault, harassment, threat or intimidation, as well as enforcing and implementing its rules, policies and regulations relative to the maintenance of security and safety thereat. WHEREAS, the AGENCY is duly licensed and bonded security guard agency operating under the provisions hereinafter set forth, and the parties mutually agree as follows:

1. Place and Location: The AGENCY shall provide security guard services to the

CLIENT located at the___________________________, respectively and any other place and area that the CLIENT and the AGENCY may agree to later. A detailed description of the premises to be covered by this security service contract is hereto attached and made a part of this contract.

2. Functions and Duties of Guards:

The guards are to maintain peace and order at the

aforementioned premises to watch, safeguard, and protect the property of the CLIENT from theft, robbery, arson and destruction, damage and other similar hazards; to protect directors, officers, employees, visitors and guests of the CLIENT from assault, harassment, threat or intimidation, to make an inventory of stocks brought in and taken out from the premises and to enforce and implement functions related to the security and safety and other duties which are considered necessary and inherent considering the nature of the business of the CLIENT.

3. Guarding System: The AGENCY shall adopt a guarding system in the premises

and area coverage of the CLIENT for ‘TWENTY –FOUR HOURS” (24 hours) from Mondays to Sundays and all other holidays.

As required by the CLIENT, the security guards to be

assigned by the AGENCY shall consist initially of __________ ( ) guards who shall each render eight (8) hours of work per day. The names and personal data of the security guards to be assigned are hereto attached and made part of this contract.

It is understood that this number may be increased or

decreased upon the sole option of the CLIENT, depending upon the security situation or exigency of the services, giving the AGENCY at least FIVE (5) days written notice.

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4. Qualifications of Guards: a) of good moral character and reputation, courteous, alert and

no criminal or police records

b) physically and mentally fit and not less than 21 years of age

and at least five feet four inches in height;

c) duly licensed and properly screened and cleared by the PNP

SUSIA, and other government agencies issuing clearances for

employment; d) in proper uniform and armed with rifle, shotgun, pistol or

revolver, with sufficient ammunitions at all times during the tour of

duty; e) possess all other qualifications required by Republic Act No.

5487, as amended.

5. Compensation: For and in consideration of the services rendered by the

AGENCY to the CLIENT, the latter agrees to pay directly to the AGENCY a monthly services fee of ____________________________ Pesos (P _______), Philippine Currency, inclusive of the Cost of Living Allowance (COLA) per day per guard for every eight (8) hours per month duty inclusive of the standard Agency fee or Agency share, payable every 5th and 20th day of each month. If the scheduled pay day falls on a Saturday, Sunday or Holiday, the compensation shall be released on a working day immediately preceding the Saturday, Sunday or Holiday. The rates are provided in the attached schedule.

As required by the CLIENT, all the security guards assigned

to the CLIENT must be enrolled by the AGENCY with the SSS, PhilHealth and PAG-IBIG. The AGENCY shall furnish to the CLIENT copies of the proof of payment of salaries/wages and benefits of security guards mandated by law and remittances of SSS, PhilHealth and PAG-IBIG. Contributions of the previous month which must be received and stamped by the office of the Provincial Labor Officer, Department of Labor and Employment Office, PhilHealth, and the nearest SSS Office, which will be included in the presentation of the billing of the AGENCY to the CLIENT. Failure on the part of the AGENCY to comply with the requirement of proof of payment of wages and benefits shall be a ground for the CLIENT not to pay the billings for the succeeding months.

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6. Supervision and Control: The AGENCY shall exercise discipline, supervision, control

and administration over its guards in accordance with laws, ordinances and pertinent governmental rules and regulations as well as the rules and policies laid down by the CLIENT on the matter. Notwithstanding the foregoing, security guards assigned to the CLIENT

Page 21: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

shall at all times comply with reasonable lawful orders of the CLIENT and its duly authorized representatives.

7. Equipment and Uniform:

The guards shall be equipped with duly licensed firearms,

ammunitions, nightstick uniforms, _______ hand held radios with ______ radio base, _________ motorcycles and other paraphernalia for security purposes required under existing rules and regulations.

8. Liability to Guards and Third Parties:

The AGENCY is NOT an agent/employee of the CLIENT and the

guards to be assigned by the AGENCY to the CLIENT are not employees of the latter as they are for all intents and purposes employees of the AGENCY. Accordingly the CLIENT shall not be responsible for any and all claims for personal injury or death caused to any of the guards, or injury suffered to any third party, where such injury or death arises out of or in the course of the performance of the guards duties.

9. Responsibility:

The AGENCY shall assume full responsibility and hereby agrees and binds itself to indemnify the CLIENT for any loss, damage, destruction and injury that may be incurred to the CLIENT, occurring within the guarded premises, attributable to the negligence, fault, laxity and unfaithful acts of misconduct of the AGENCY or its assigned security guards or resulting in theft, pilferage, robbery, arson and other unlawful acts of third persons, except when such losses or damages is clearly established to be due to fortuitous and unforeseen events or acts of God or orders of. the CLIENT beyond the scope of this contract. Provided, further that such losses, damages or injuries shall be reported to the AGENCY or to its duly authorized representative within TWENTY FOUR HOURS (24) from the date of discovery by the CLIENT or its personnel, to enable the AGENCY to investigate the matter. The AGENCY is not precluded from pursuing legal action against the culprits, if it so desires. To ensure the faithful performance by the AGENCY of the obligations under this Agreement, the AGENCY binds itself to post a Surety Bond in favor of the CLIENT in the amount of _________________________(P ______) PESOS. The Surety Bond must be updated regularly, the premiums of which shall be shouldered by the AGENCY; The AGENCY shall be solely liable for any lawful claims of its guards assigned with the CLIENT for separation pay, back wages, service leave pay, holiday pay and/or other money claims arising from employer-employee relations, and to pay for final judgment containing a monetary award. 11. Replacement of Any Guards: The CLIENT may recommend/suggest that a guards be changed or replaced at any time for any reason whatsoever. The judgment of

Page 22: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

the CLIENT on such matters shall be final and binding and should the AGENCY refuse, the former may consider the same a valid cause for the termination of this Contract. 12. Terms and Contract: This Contract shall take effect on _______________ and shall be for a period of one (1) year from said date. Either party, however, may terminate this Contract with or without cause at any time by written notice given to the other party not later than thirty (30) days prior to the intended date of termination. The CLIENT may renew this Contract for the same period by notifying AGENCY in writing of such intent not later than one (1) month, prior to the expiration date of this Contract. In the event this Contract is not renewed after its expiration this contract shall continue on a month to month basis, and either party may terminate the contract by written notice to the other party not later than three (3) days prior to the intended date of termination. 13. Judicial or Extra Judicial Expenses All Judicial and extra-judicial expenses which will or may be incurred in prosecuting persons responsible for unlawful acts or any and all acts prejudicial to the company’s interest shall be shouldered by the CLIENT. The AGENCY should however, first get the CLIENT’S approval before its files any case for the CLIENT. If no written approval is given by the CLIENT to pursue the case, expenses shall be solely shouldered by the AGENCY. However, all judicial and extra-judicial expenses in connection with cases instituted against the guards by third persons while in the performance of its duties shall be for the account(s) of the AGENCY. Provided, further that the CLIENT may at its option decide to shoulder aforesaid expenses if in its opinion, such act(s) of the security guards ultimately rebounds to the company’s benefit. 14. Venue Venue of any action arising from the enforcement, interpretation of violation of the provisions of this contract shall be in the courts of _______________. IN WITNESS WHEREOF, the parties have hereunto set their hands at the place and on the date first above stated.

Page 23: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees

_____________________________________ Agency

By: ________________________ General Manager

ROMAN CATHOLIC BISHOP OF DAVAO, INC. Client

By____________________ Oeconomus

SIGNED IN OUR PRESENCE:

________________________ and _________________________ REPUBLIC OF THE PHILIPPINES) _____________________________) SS. On this ______ day of , 2009 personally appeared: Name Evidence of Identity Date Fr. Junar dela Victoria _________________ ____________ __________________ _________________ ____________ both known to me and to me known to be the same persons who executed the foregoing Security Service Contract consisting of five(5) pages including this page duly signed by the parties and their instrumental witnesses and they acknowledged to me that the same is their free and voluntary act and deed. WITNESS MY HAND AND SEAL, this____ day of __________ 2009 at Davao City, Philippines. Doc. No._______; Page No._______; Book No.______; Series of 2009.

Page 24: LABOR CODE PD 442 as amended - adfap.comadfap.com/Conventions/Resources/Hiring and Firing labor2.pdf · ten (10) workers P209 basic wage plus COLA-P15 ... Given to rank and file employees