ARTICLE 1: ETHICS AND PROFESSIONALISM

ARTICLE 1: ETHICS AND PROFESSIONALISM

Every officer and staff of the Federation shall embody the highest standards of ethical

and professional conduct in doing business towards the promotion of a healthy

organizational culture, effective operational performance, quality service to members

and stakeholders, and a model cooperative Federation of the country.

Section 1. Adhere to the Law. The Federation seeks to conduct its affairs duly in

compliance with both the letter and the spirit of all applicable laws, rules and

regulations.

Section 2. Upholding Members’ Rights and Interests. All officers and persons

having the authority and the power to direct the management of Cooperative Health

Management Federation have, among other things, the primary duty of protecting

the interests of the Federation and its general membership. The following are basic

rights of the members which shall be upheld by the Federation at all times: voting

rights; power of inspection; right to avail the products and services of the Federation;

right to information; and right to dividends, patronage refund and experience refund.

Section 3. Professional Standards. All officers and personnel of the Federation

shall perform and discharge their duties and responsibilities in accordance with the

following principles of professionalism:

3.1 Integrity. All officers and personnel of the Federation shall conduct

themselves in an honest and honorable manner, and their business dealings

shall always be fair-minded and shall inspire confidence from members and

stakeholders.

3.2 Independence and Objectivity. Performance of one’s duties and

responsibilities and decisions resulting therefrom shall always be based on

professional judgement and expert knowledge, without discrimination and

prejudice against anyone, and shall uphold the Federation’s interest over and

above personal interest.

3.3 Accountability. Every director, officer and staff of the Federation shall be

able to demonstrate and account for the complete execution of all the tasks he is

assigned and perform the duties required by his job. He shall be answerable

and/or liable for the sub-par or non- performance of his responsibilities.

3.4 Due Diligence. Work in the Federation, shall be carried-out with constant

and careful attention to achieve desired outcome. Diligence connotes

completeness, correctness, consistency, repeatability, and the ability to

demonstrate how conclusions were reached.

3.5 Transparency. Basic and relevant information about the Federation shall be

disclosed to all members and stakeholders to indicate that the organization is

being managed well, is functioning in an ethical manner, and is handling its

finances with efficiency and responsibility.

3.6 Confidentiality of Information. All information other than general business

knowledge, which when disclosed to the public may harm the organization and

its business relationships, shall be treated by all Federation personnel in their

course of professional work. Such information shall neither be communicated nor

disclosed to any unauthorized individual or entity, otherwise authorized by

competent authority.

3.7 Competency and Continuous Professional Development. All personnel of

the Federation shall have the basic knowledge and skills set necessary to

provide professional services competently. To maintain and further develop these

competencies, all personnel shall be kept abreast of current developments to

ensure that their particular expertise is constantly kept up-to-date with industry

standards and satisfactorily meet members’ demands and operational

requirements.

Section 4. Conflicts of Interest. An individual is considered to have a conflict of

interest when his personal or private interests impair his independence and

objectivity in the discharge of his professional responsibilities of the Federation, and

run counter to the best interests of the Federation. A conflict of interest may arise in

situations where (1) an individual has a personal financial interest, whether direct or

indirect, in official business transactions or arrangements entered into by the

Federation or in an entity doing business with the Federation; and (2) and individual

intents to exploit a business opportunity that rightfully belongs to the Federation.

Section 5. Judicious Use of Resources. All officers and personnel of the

Federation are to take care and assume responsibility over safeguarding and

conserving the resources of the Federation within reason, which consist of among

others: all physical properties of the Federation, including all fixtures; all marketing

studies, advertising or promotional materials member lists, logs or reports or any

other forms or surveys that are in the Federation’s possession; and, proprietary

software. The Federation’s assets, including funds, shall never be used for any

personal, unlawful, or improper purposes.

Section 6. Breaches and Violations of Ethical and Professional Standards. The

Federation shall never tolerate or condone any unlawful, unprofessional and

unethical activity of its directors, officers, and employees. All personnel of the

COOPERATIVE HEALTH MANAGEMENT FEDERATIONUnit 102 88 Malakas Suites, 88 Malakas St. Brgy. Pinyahan, Quezon City

+632-899-7663 / [email protected]

Federation are highly encouraged to challenge inappropriate behavior and report

any forms of misconduct or violations of the provisions of this Code committed by

fellow officers or employees. The Federation shall institutionalize a reporting system,

with protection from reprisal, for all personnel to convey to appropriate authority all

legitimate concerns about illegal, unethical, or questionable practices.

ARTICLE 2: EMPLOYMENT

2.1 Equal Employment Opportunity. The Federation is an equal opportunity

employer. It performs fair and equitable practices across its policies and procedures.

Cooperative Health Management Federation recruits, evaluates, hires, increases salary,

transfers or promotes without regard to color, race, sex, age, marital status, nationality,

or religion. The same is true when employees are recalled, lay-off, or terminated from

work.

2.2 Recruitment and Selection Process. Posting of vacant positions are done upon

approval of the Management. Internal hiring is preferred over external hiring. But when

no one qualifies for the open position, external hiring is done.

Incoming employees are hired based on their competencies to perform the work,

attitude, and ability to adapt to the organizational culture. CHMF only hires the most

qualified applicant from the pool by carefully reviewing each applicant’s credentials and

applicant’s performance in the selection procedure. The selection procedure includes

pre-assessment exam, series of interviews, and skills demonstration (for selected

positions only). Before hiring, employees are background checked and all data

presented are verified. Any falsification of documents or misrepresentations or material

omissions during the selection process shall make the applicant ineligible for the

position.

2.3 Hiring of Relatives. The Federation does not allow employment of relatives up to

the third degree of consanguinity (Father, Mother, Siblings, Spouse, or any In-Law

Relationships). This is to avoid possible biases in decision making and work cover-ups

that may lead to company losses. Employees who will be related with one another

through the sacrament of marriage or are known to be as common law partners must

discuss the matter with the Human Resources Unit Head. The couple must decide who

among them shall render voluntary resignation. In case nobody resigns, the employee

with least responsibility and/or length of stay in the company shall be terminated from

work within three months from date of marriage or date when it was known that they are

common law partners.

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2.4 New Employee Status. The first ninety (90) or one hundred eighty (180) calendar

days of an employee’s stay with the Federation are orientation periods. This is the time

that an employee is being familiarized and trained with his/her job responsibilities. At the

same time, the said ninety calendar days is a period of evaluation of an employee’s

capacity and fitness to the work and to the Federation. Benefits at this point compared

to an employee with a regular status differ. A couple of benefits are given once an

employee is already regularized. An employee in the orientation period can also be

terminated in case set performance standards are not met. Once an employee is

regularized, length of service will be retroactive to date of employment.

2.5 Orientation Period. The newly hired employee will be undergone an onboarding

process that will cover the following:

a. Organizational background

b. Administrative policies, rules and regulations

c. Compensation and Benefits Package for the Position

d. Code of Conduct

e. Performance Appraisal and Requirements for Regularization

The onboarding process is conducted by the Human Resource Department. The

incumbent shall also be introduced to the different personnel in each department and

shall be endorsed to his/her immediate supervisor. In cases that endorsements and

orientation are not properly 1disseminated the employee is highly encouraged to inform

the matter to the Human Resources Department.

2.6 2Employment Definitions.A. Regular Employees a probationary employee whose performance appraisal after

five (5) months of work shows satisfactory ratings shall be given an appointment for

regular status after the completion of his 6th month of probationary period. Although an

employee who displays exemplary performance may be regularized even before six

months period. A regular appointment may also be given to a contractual employee who

has rendered not less than 6 months of service and who has received satisfactory

ratings in a performance appraisal.

B. Probationary Employees have a pre-determine employment term usually six (6)

months. The employment contract specifies the exact duration of the engagement.

Benefits to be received by employees under this classification are limited. To be exact,

they are also given the legally-mandated benefits and coverage under the Social

Security System (SSS), Philippine Health Insurance Corporation (PHIC), Home

Development Mutual Fund (HDMF), and 13th month pay on a pro-rated basis and other

statutory benefits. The Probationary period shall never exceed six (6) months.

2 Retrieved from the Labor Code of the Philippines, Department of Labor and Employment1



Before the end of the 5th month of probationary period, a performance appraisal shall be

conducted by the employee’s immediate superior and Department Head to determine if

he/she be to be promoted into regular status. If the employee’s performance is

considered below PAR, his/her employment will be terminated before the end of the

contract. But if his/her performance is considered satisfactory, he/she will be given a

regular appointment. Regular appointment shall be given only upon approval of the

Management.

C. Contractual Employees Contractual employees have a predetermined employment

term usually three (3) to six (6) months. The employment contract specifies the exact

duration of the engagement. The salary may be on a daily or monthly basis. Aside from

that, the employee is entitled to be given the legally-mandated benefits and coverage

under the Social Security System, PhilHealth, Home Development Mutual Fund, 13th

month pay on a pro-rated basis, and all other statutory benefits.

Section 3. Dress Code. Cooperative Health Management Federation requires that

employees dress neatly and appropriately at all times and that they maintain adequate

personal hygiene. The success of any company is reliant on the support and goodwill of

its personnel. For this reason, it is important that the Federation maintains a

professional image. As representatives of this company, employees must adhere to the

dress code policy.

The Federation urges employees to use common sense and sound judgment when it

comes to selecting their work attire. When in doubt, refer to the conservative and formal

side. To assist you, here are a few broad guidelines to follow:

A. All clothing should be clean, ironed and in good shape. Desist from opting for

clothes that display discernible tears, rips or holes, even if it is the current

fashion.

B. All employees should maintain an acceptable level of bodily hygiene to ensure

that interactions with other staff and clients remain positive and pleasant.

C. Work clothes should be professional, which means that it should not be too

revealing or casual.

D. Although we allow clothes with stamps, the latter should be inoffensive and

appropriate for the workplace.

E. We allow female staff to wear jewelry but we urge that staff please remove visible

body piercings during work hours.

F. Every Monday and Friday all personnel should wear their Coop integration

polo-shirt paired with black pants and black shoes.

G. Every Tuesday, Wednesday and Thursday all personnel must wear corporate

attire (e.g. dress, blouse and skirt, polo and slacks paired with black shoes

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H. Every Activities all personnel should wear GA (General Assembly) shirts paired

with any kind of pants (except ripped) and rubber shoes.

If the dress code policy contravenes the prescriptions of an employee’s faith or that it is

offensive to in any way, consideration may be given.

Section 4. Open Door Policy Cooperative Health Management Federation believes in

direct and open communication between management and its employees. The

open-door policy encourages open communication, feedback, and discussion of

employee concerns and work issues.

Department and Unit Heads are committed to lend an open ear and empathy to the

demands and needs of its personnel. In case an employee’s concern is not properly

addressed by the immediate supervisor he/she may approach any of the Human

Resources Personnel for immediate assistance. If so, the concern is still not settled, the

matter will be raised to the Management.

Section 5. Personnel 201 Files. All Employees of the Federation have their own 201

files. This file is kept confidential by the Human Resources Department and is to be

updated by the incumbent.

The following are the documents that is consolidated in each employee’s 201 file:

a. Application Letter (if there is any)

b. Curriculum Vitae or Resume (Updated Annually)

c. Photocopy of Birth certificate

d. Photocopy of Marriage contract (for married applicants)

e. Certificate of Employment (from previous employment)

f. Photocopy of Diploma

g. Photocopy of Transcript of Records

h. Certificate of Good Moral Character (if fresh graduate)

i. NBI Clearance

j. SSS (E1)/GSIS No.

k. HDMF no. (Member Data Form)

l. Philhealth no. (RF1)

m. TIN

n. Photocopy of PRC License (if necessary for the position)

o. Copy of Driver’s License (if there is any)

p. Pre-Employment Medical Exam Result

- Physical Examination, Eye Refraction, CBC, X-Ray, Urinalysis, and Fecalysis,

Swab Test

q. Duly filled-out CHMF application form

r. 3 pieces 1x1 ID picture



s. 1 piece of 4R whole body Picture (Formal Attire)

t. Contract of Employment

u. Appointment Papers

v. Copies of salary adjustment notices, promotions, transfers, new or additional job

assignment

When the employee has separated from employment:

a. Letter of resignation or Application for Retirement

b. Turnover Documents with signature of immediate head/supervisor

c. Notice of receipt of resignation or retirement

d. Exit interview result

e. Certificate of employment

f. Duly filled out clearance form

g. Computation of separation pay/retirement pay

h. Quit claim and waiver

All employees’ 201 files are kept in a fire proof cabinet with lock and only the Human

Resources Department personnel has the authority to open it and do file browsing. In

case an employee needs data from his/her file, an employee must fill-up and submit a

request form to provide with the proper documents.

On a yearly basis, employees are expected to submit an updated copy of their resume.

Aside from that, employees must report to the Human Resources Department any

significant changes on their personal information such as change in civil status,

residential address, telephone or cellphone numbers, additional dependents, new

seminars or training programs attended by the employees’, government examinations

passed, foreign travels made if these are work related, government position elected to

or appointed to, and any other significant events that they may want to have recorded in

their 201 file. Any change in information must be coordinated to the Human Resources

Department within one-week period of the time.

Section 6. Job Description. Newly hired personnel are given a job description upon

employment with the company. The job description identifies the essence of the job, the

significant elements of the position are clearly, completely and honestly described in

detail. This document will serve as a guide on an employee’s duties and responsibilities

as well as the Federation’s expectation on an employees’ work performance. It outlines

as indicators.

Each job description is carefully identified after thorough job analysis among subject

matter experts. In case of a newly created position (that is, if there was no incumbent

before), the Department/Unit head shall be responsible for creating the initial job

description, after a period of Six (6) months, the incumbent and the Department/Unit

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head shall both review and update if necessary the initial job description. In both

instances the approval of the Chief Executive Officer must be secured.

Section 7. Performance Appraisal Management The performance appraisal process

is used to inform employees of their status in the Federation and result of their

performance over a period of time. This is also used to discuss performance standards,

merit increases, and areas of improvements. The Human Resources Department Head

with its staff shall be responsible for monitoring the timing of appraisals, the issuance

and retrieval of appraisal forms, the implementation of pertinent guidelines on appraisal

process, and the implementation of salary increases or adjustment if there is any and is

approved by the Chief Executive Officer. The implementation of salary increases shall

be coordinated with the Accounting Department.

All probationary and contractual employees being considered for possible regularization

in the company shall be subjected to performance appraisal before any change of

employment status is finalized.

All regular employees, regardless of rank, shall be subjected to semi-annualperformance appraisal to make sure that they perform their job to the best of their

abilities. The performance appraisal shall be based on overall performance of their job

responsibilities including their attendance, attitude towards work, work relationship with

co-employees, and organizational fitness. The appraisal shall also be the basis of any

merit increases to be given by the Management.

A rank and file employee or supervisor shall be appraised by his immediate supervisor

(direct supervisor or Department/Unit Head), subject to the final approval of the Chief

Executive Officer. On the other hand, a Department/Unit Head shall be appraised by the

Chief Executive Officer. The Chief Executive Officer shall forward all approved appraisal

forms to the Human Resources Unit Head for implementation of salary adjustment, if

any, and for safekeeping in the employee 201 file.

Salary adjustment shall be given only upon recommendation of immediate supervisor

and approval of Human Resources Unit Head and Chief Executive Officer. The salary

adjustment shall become effective on the date specified on the new contract.

While performance appraisal is done every semester, performance management is

done throughout the year. All supervisors and managers handling at least one

subordinate shall be responsible for effectively managing the year-round performance of

their staff, constantly adhering to the accepted levels and parameters of satisfactory

performance. The supervisor or manager should not wait for the time of performance

appraisal to come before correcting the mistakes, below par performance, or negative



attitudes of their staff. These management actions of control should be done as soon as

the symptoms arise.

On the other hand, the supervisors or managers should not also delay the giving of

recognition or positive reinforcements whenever they observe better-than-average

performance or significant achievements of their respective staff.

In case an employee has any issues or concerns with his/her immediate head’s

performance management and/or result of your performance appraisal, an employee

may raise this to the Human Resources Unit Head for some review and action.

Section 8. Merit System. There shall be NO across-the-board salary increases, unless

mandated by the Chief Executive Officer. Henceforth, the company of Merit increase

shall be followed. An employee’s salary increase will depend on how satisfactory an

employee has done his/her job, as shown by the result of his/her performance

appraisal. In case of serious disagreement between an employee and his/her supervisor

or department/unit head on the outcome of performance appraisal, the arbiter of the

dispute shall be the Human Resources Department Head and Chief Executive Officer

whose decision shall be deemed final. The Management implements the merit system

in advancing the career of deserving employees by way of promotion to higher levels of

authority, with corresponding increase in compensation.

Employees from supervisor up are expected to continuously expand their knowledge by

enrolling in Masteral or Doctoral programs related to their position or at least attend

short courses or extensive seminars.

Aside from that, the company recognizes employees who strive hard to improve

themselves by furthering their studies which later on will be beneficial to the company.

In view thereof, the following shall be granted to employees and be added to an

employee’s monthly compensation.

1. Passed a Board Exam - 2,500.00 pesos

2. Masteral Degree (Non-Thesis) - 2,500.00 pesos

3. Masteral Degree (With Thesis) - 5,000.00 pesos

4. Doctoral Degree (Non-Thesis) - 7,500.00 pesos

5. Doctoral Degree (With Thesis) - 10,000.00 pesos

6. Post Graduate Studies - one-month basic salary

In addition to that, an employee who attends a training with a written examination and

passed the said exam with a grade of 90% and higher shall be entitled to receive a

1000.00 pesos one-time bonus.

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Section 9. Lateral Transfer. The Management has the prerogative to implement a

lateral transfer of any employee, regardless of the position, rank, status, age, length of

service or geographical location. This prerogative may be exercised for the good of the

service and to suit the short-range or long-term strategic goals of the Federation. The

Management may explain but need not depend on itself in making such a lateral

transfer.

A lateral transfer may or may not entail a salary adjustment. If the employee is

transferred to a new position with approximately the same level of responsibilities as

that of his/her former position, then there will be no salary adjustment. However, if the

new position carries with it a significantly higher level of responsibility or has greater

sensitivity, the Management may approve a salary adjustment. The salary adjustment

may become effective at least six (6) months to one (1) year after the assumption of the

new position.

A lateral transfer may be implemented with the affected employee still performing all or

part of his/her former job responsibilities in a concurrent capacity. The Management

shall, after a reasonable period of the time, decide if the employee can perform both

functions effectively and efficiently. An employee, who refuses a lateral transfer, or

additional job responsibility, may be charged with insubordination resulting in

suspension or dismissal.

Section 10. Promotion. The Management implements the merit system in advancing

the career of deserving employees by way of promotion to higher levels of authority,

with corresponding increase in compensation.

Employees from supervisor up are expected to continuously expand their knowledge by

enrolling in Masteral or Doctoral programs related to their position or at least attend

short courses or extensive seminars.

Promotions shall be earned by the employees themselves, as shown by sustained high

levels of performance, capacity for higher responsibilities, and maturity in

decision-making, positive attitude towards work and willingness to leave his comfort

zone. Merit will be given to employees with higher studies and wide industry knowledge

and exposure. It is important to take note that promotion will be based on ability and

capacity and not on longevity.

A rank and file level employee may be promoted to supervisory position, or managerial

level, provided such position exists in the Organizational Structure. If no such position

exists, the Human Resources Department Head may recommend to the Management

the creation of such position if it is deemed justified. A supervisory or managerial

position need not have a subordinate reporting directly to it for such to be considered as

supervisory or managerial job.

All employees for promotion shall undergo six (6) months to one (1) year developmental

training for the Management to see whether the person is fit for the position. In case of



Promotion, the promoted employee may either get the entry level rate for the new

position, or one or two steps higher if his/her former rate (prior to the promotion) is

already at the level of entry rate for the higher position. An employee being offered a

promotion reserves the right to refuse the intended promotion, for whatever personal or

professional reason. When this happens, the offer of promotion shall be withdrawn

without prejudice to the career of the concerned employee. However, the Management

also reserves the right to offer the intended promotion to another employee if the latter

is found qualified for the position.

ARTICLE 3. WORKING CONDITIONS3

Section 1. Working hours. According to the Labor Code of the Philippines, “All

employees who are covered by the provisions of the law must not work for over 8 hours

a day. He/She is worthy of a one (1)-hour lunch break daily without fail”

Working hours include the duration in which the employee is required to work at the

workplace or may it be a work from home set up. In addition to that, the core working

hours in the Federation must be from 8:00 am to 5:00 pm, Monday to Friday. An

employee may opt to report to the office on a Saturday if he/she has pending work

responsibilities. In this case, the core working hours are observed.

Section 2. Absenteeism. Refers to the non-presence of an employee at his or her job.

This may extend beyond what is deemed acceptable by the realm of days that an

employee is away from the office may it be due to scheduled vacations, occasional

sickness and emergency situations.

2.1 Leave of Absence. As provided by law and as the rules prescribed in Rule XVI of

Executive Order No. 292 which states that leave of absence is a right granted to

employees not to report for work may it be with or without pay. An employee shall be

entitled to file for leave of absence using the prescribed leave form from the Human

Resources Department. Failure to file the leave application within the specific time

period (prior on the day of reporting), it shall be considered unauthorized; hence, be

disapproved by the head of the Department and/or by his/her duly authorized personnel.

Unauthorized/disapproved leave of absence may result in deduction of salary, leave

credits and may be a ground for disciplinary action or even termination.

Section 3. Leave Credits. A regular employee who rendered work during the

prescribed core working hours shall be entitled to leave credits in which every month

he/she is granted with cumulative leave of 1.25 days. He/She must also be granted 15

3 Retrieved from the Omnibus Rules of Leave, Civil Service Commission

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days sick leave credits and vacation leave credits annually (as cited in Office Order No.

2011-20, Employee Guide On Leave of Absences of Department of Transportation and

Communications).

3.1 Sick Leave. Granted to employees on account of sickness. Application of sick leave

must be filed upon return to work. Sick leave filed in advanced or exceeding two (2)

days shall be accompanied by a clearance and medical certificate from the Federation’s

Medical Director or other Physicians. Failure to file the sick leave application shall be

considered unauthorized and disapproved by the head of the Department and/or by

his/her duly authorized personnel. This may result to salary deduction, leave credits and

may be a ground for disciplinary action.

3.2 Vacation Leave. Granted to employees on account of personal reasons. The

approval of such is based on the necessity of the service. For filing of one (1) day

vacation leave, an employee must submit a vacation leave application (1) day before

the said appointment; two (2) days vacation, an employee must submit a vacation leave

application one (1) week before the said appointment; more than three (3) days of

vacation leave, an employee must submit a vacation leave application form one (1)

month before the said appointment to the Human Resources Department.

*The Management is requiring that every after official leave (i.e. Vacation Leave (VL),

Sickness Leave (SL) or Emergency Leave); Employees must secure an approval from

the Medical Director that he/she is fit to work within the premises of CHMF; Attachment

such as medical clearance (from the Medical Director) or certification must be submitted

to the Human Resource Department prior on the day of reporting.

3.3 Official Business Transaction. Granted to employees, who are assigned to do

business outside the office premises. An employee must secure an Official Business

Form (OB Form) before actually proceeding to the business fieldwork transaction. OB

Form must be requested to the Human Resources Department and shall be a basis of

the Daily Time Record.

Section 4. Record of Attendance. This records the time an employee spends in the

office. An employee is required to use the prescribed attendance recording system

(Daily Monitoring Report using fingerprint and manual writing of time-in and time-out).

This will include the time an employee arrives at the office in the morning, lunch breaks,

official business transaction and departure from the office. This will properly address the

monitoring of how many hours an employee worked. In case of errors in log in and out

occurred, an employee must immediately report it to the Human Resource Department

and file a notice of explanation, stating the reason for the biometric error and time

entries; logging in errors must be reported on the same day of incident. On the other



hand, logging out errors are to be reported on or before 10:00 AM on the next day of

reporting.

Section 5. Tardiness. Cooperative Health Management Federation believes that a key

factor to productivity and employee responsibility is good employee attendance. Thus,

tardiness is strictly discouraged. An employee is considered habitually tardy, regardless

of the number of minutes spent in the office per day, when he/she incurs a total of 120

minutes tardiness per month. This may be a ground for disciplinary action. An

explanation of tardiness shall be forwarded to the Human Resources Department.

Section 6. Data Privacy. This focuses on how the Federation collects, uses and/or

disclose personal data in regards with the connection of an employee to Cooperative

Health Management Federation. Data Privacy aims to comply with all the requirements

of the data protection law, particularly; Data Privacy Act of 2012 (DPA). The strike of

balance between personal privacy and the necessary information needed in pursuing

legitimate actions to carry out responsibilities as healthcare maintenance organization

provider, employer and as contracting party is observed.

Personal data may include information such as written records, photographic, video,

images, digital material and biometric data.

ARTICLE 4. DISCIPLINE (CODE OF CONDUCT)

Section 1. OFFENSES AGAINST SAFETY, HEALTH, SECURITY & PUBLIC ORDEROF ADMINISTRATION. To foster the responsible use of resources given to us

stewards, our behavior should show proper concern and care for our welfare, that of

others, for properties we own or those placed under our care and the general public

whom we directly or indirectly influence. The following do not conform to the foregoing:

1.1 Unauthorized possession and carrying of firearms, explosives, or otherdeadly weapon while on company premises (Gross Penalty)

1.2 Entering restricted areas without permission. (Light Penalty)

1.3 Creating or contributing to unsafe and unsanitary conditions insidecompany premises. (Light Penalty)

1.4 Violation or failure to follow a general safety rule and/or practice.

Walking, running in the work areas. (Light Penalty)

1.5 Littering inside the company premises and immediate surrounding area.

(Light Penalty)

1.6 Unauthorized and/or unjustified use of fire protection equipment. (Light

Penalty)

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1.7 Operating and/or tampering of switches, controls, installations,machines or equipment without authorization. (Gross Penalty)

1.8 Failure to report immediately a personal injury occurring on companytime or property. (Type B)

1.9 Willful disregard of office directive relating to sanitary conditions,

cleanliness, and orderliness of the office, security of office supplies, and

equipment or performing any act contributing to unsanitary condition or practice

on company premises or job sites (Light Penalty)

1.10 Reporting for work while having a serious contagious disease which

may endanger the health of other employees, knowing about it, yet failing to

report or willfully withholding information thereof from company authorities.

(Grave Penalty) If the contagious disease is not of a serious nature, Gross

penalty will be tantamount.

1.11 Failure to undergo Annual Physical Examination Employee are

responsible to submit their Annual Physical Examination result conducted by

DOH accredited clinic. (Habitual Penalty)

1.12 Scuffling, “horsing around,” or throwing things or otherwise wastingtime during work hours. (Habitual Penalty)

1.13 No Smoking/E-Cigarettes in Smoke-free workplaces. Pursuant to

Section 6 of Republic Act No. 9211 which specifically prohibits indoor smoking

and protects people against second hand smoke, this company policy is hereby

issued to protect its employees and clients against the hazard brought about by

smoking. (Habitual Penalty)

Section 2. Offenses against authority. An encompassing trait to elicit the correct

behavior under this category is that of respect for Authority coupled with our correct

understanding of unity, subsidiary and responsibility. The following do not conform to the

foregoing:

2.1 Refusal to follow written or verbal instructions from superior inconnection with works. An employee willfully disobeys or disregards a

superior's legitimate directive. Abusive language by employees toward

supervisors and others can also be considered insubordination. (Gross Penalty)

2.2 Deviation or unauthorized changing schedule. Deviation from approved

itinerary/coverage plan/time schedule/work assignment and/or Changing

schedule day-off or rest day without prior permission. (Light Penalty)

2.3 Refusing to accept job assignments without justifiable reason. (Habitual

Penalty)

2.4 Any act constituting disrespect and disregard of authority of companysuperiors and officers. (Grave Penalty)

I. A hostile response, expressed either verbally, via email or through

body language, is not appropriate.

II. Sabotaging your superior by bad-mouthing them to others.



2.5 Any act which constitutes resistance, threat, intimidation, or assaultagainst a person of authority in the company or any of his agents. (Grave

Penalty)

I. Causing or attempting to cause bodily harm or death; (Including

stalking, bullying, or other abusive or aggressive behavior);

II. Acting or attempting to sabotage, destroy, violently damage, or

deface real or personal property at the workplace.

III. Unusual, bizarre, or meaning behavior or statements that a

reasonable person would interpret as carrying the potential for

violent acts.

2.6 Willful disobedience of (or refusal to follow) Policies, Procedures,and/or Rules and Regulations. (Gross Penalty)

2.7 Company Uniform. Failure to wear prescribed company uniform or

office-based attire during official time (Light Penalty)

I. CHMF Blue Uniform, Close shoes, Pants (Monday & Friday)

II. Corporate formal attire, Close shoes (Tuesday to Thursday)

III. Strictly no wearing of sandals, slippers, ripped jeans and mini skirt

Section 3. Offenses decency, good customs and ethics:3.1 Liquor or other intoxicating drugs or beverages. Cooperative Health

Management Federation adopts this alcohol-free workplace policy and program

to ensure a safe and healthful workplace. In this regard, all employees shall

abide by the terms and conditions of this policy. The company explicitly prohibits

the following:

I. Use, possession, solicitation or sale of alcohol in the workplace; or

(Gross Penalty)

II. Impairment or under the influence of alcohol which may cause

adverse effects on employee’s work performance, safety of

co-employees or Company’s reputation. (Gross Penalty)

3.2 Sexual Harassment. Any and all act constituting sexual harassment and/or

any motives committed against co-employees regardless of position, rank, or

gender.

I. Persistently telling smutty jokes to a co- employee who has

indicated that he/ she finds them offensive; (Gross Penalty)

II. Taunting a co-employee with constant talk of sex or sexual

innuendoes; (Capital Penalty)

III. Displaying offensive pictures or publications in the workplace,

without permission of the person; (Gross Penalty)

IV. Asking co-employee intimate questions on his/ her sexual activities

in front of others; (Grave Penalty)

15

V. Making offensive hand or body gestures at a co- employee

(Obscene gestures made using the face, lips, tongue, or other body

parts; (Grave Penalty)

VI. Making obscene phone calls to a co- employee during and

outside work hours, etc.; (Grave Penalty)

VII. Pinching, unnecessarily brushing up against a co- employee’s

body; (Gross Penalty)

VIII. Requesting for dates or favors in exchange for a job, favorable

working conditions, or assignments, etc.; (Capital Penalty)

IX. Touching a co-employee in sensitive parts of his/ her body to

threats of a sexual nature and actual sexual assault; (Capital

Penalty)

X. Directing or inducing another to commit any act of sexual

harassment as herein defined, or who cooperates in the

commission thereof by another without which it would not have

been committed shall also be liable under these rules. Penalty shall

likewise be imposed on the person who employed inducement or

cooperated. (Capital Penalty)

XI. 3.3 Discourteous, rude, impertinent acts towards company officials,immediate supervisors, or clients or their representatives.

I. Commission of offense by the employee against the person of his

employer or any immediate member of his family or his

duly-authorized representative. (Capital Penalty)

I. Inflicting physical injury on any employee or person, or having in

fact inflicted physical injury while within or outside company

property or premises or job sites where such outside incident has

relation to work or company activities. (Grave Penalty)

II. Any act constituting threat, intimidation, or coercion against any

person, or in any manner unduly interfering with or obstructing

plant or company operations or other employees from performing

their work while within company property or premises or job sites.

(Grave Penalty)

III. Fighting or actually engaging another in a fight while within or

outside company property or premises or job sites provided such

outside incident has relation to work or has arisen while inside

company premises. Persistently telling smutty jokes that are found

offensive by others within office premises. (Gross Penalty)

IV. Any form of bullying that will inflict on an employee’s

self-awareness/ validation thus may be related to work or any



forms of bullying (e.g. body shaming, smart shaming, etc.) (Grave

Penalty)

V. Psychological Abuse which include acts or omissions causing or

likely to cause mental or emotional suffering that may lead an

employee to mental breakdown, anxiety, trauma and depression.

(Grave Penalty)

Section 4. Offenses against company interest and policies:4.1 Malingering/ feigning illness. Malingering or feigning illness to avoid doing

assigned work or reporting for work. (This includes absence due to Sick Leave

but employee is neither at home nor at any medical institution) (Gross Penalty)

4.2 Falsification of Company records or documents. Falsification of

documents relating to personal records or data or misrepresentation of any

information concerning personal circumstances and qualification. Unauthorized

alteration of personnel or company records and/or using said falsified records for

personal gain or benefit. (Capital Penalty)

4.3 Incompetency. Failure to follow written or oral instructions made by

Company superiors, as well as Company memorandum and circulars, or failure

to perform assigned work due to negligence. (Gross Penalty)

4.4 Habitual Tardiness. This is defined as ten or more instances of tardiness or

combined tardiness resulting in a total loss of 120 minutes or more within one

month. (Gross Penalty)

4.4 Absence without official leave.A. An employee who wishes to be absent on a certain date or dates

must file an application for leave of absence for approval of his immediate

superior and Department Head, at least two (2) days before his intended

leave(s) of absence.

B. If, because of extraordinary circumstances like sudden serious

illness of the employee or an immediate member of his family, preventing him or

her to secure prior leave of absence, the employee or his representative must

telephone, text, e- mail, or submit a written notice within the first 4 hours of his or

her shift to his or her superior or Department Head or any other person

authorized by the company to approve or disapprove the absence retroactively.

I. Unauthorized single day absent (Light Penalty)

II. Excessive absenteeism (2-3 working days) (Habitual Penalty)

III. Abandonment of Work (7 consecutive days of absent) (Capital Penalty)

Section 5. OFFENSES AGAINST PROPERTY:

17

5.1 Theft, robbery or appropriation for personal gain. Benefit or profit of any

the property of the company or of a fellow employee or a client or customer of the

company, regardless of the amount involved. (Capital Penalty)

5.2 Swindling or malversation (Estafa) of funds or property of the company or

of a fellow employee or of a client or of a customer of the company. (Capital

Penalty)

5.3 Obtaining supplies or materials on fraudulent orders. (Capital Penalty)

NOTE: This implicates any other person conniving or in collusion with the

employee doing it.

5.4 Unauthorized substitutions of company material or equipment with

another or of poorer quality, or of lesser value. (Capital Penalty)

5.5 Alteration or removal, without authorization, of any property of the company,

government or of other employees resulting in irreparable damage thereto.

(Capital Penalty) If damage is repairable, the penalty is mitigated to Grave

Penalty.

5.6 Using company time, material and/or equipment to do unauthorized work

within or outside premises, for personal gain which includes using company time

and facilities in personal dealership, selling, and other non-work-related activities.

(Gross Penalty)

5.7 Neglecting or refusing after due demand or notice, or as provided by

existing policies without justifiable reason, to remit, pay, reimburse, or liquidate

any money, collection or cash advance, or return and/or deliver goods, stocks, or

other properties entrusted to him by the company, or received by him from a

customer or client or business associate or affiliate or their representative for his

administration, or under any other obligation to make delivery of, or return the

same. (Habitual Penalty)

5.8 Malicious or willful destruction or misuse of company property or that of

any employee, any client or customer of the company. If the destruction,

damage, or misuse is committed through recklessness or imprudence, the same

shall be classified as Grave Penalty offense.

In order to effectively implement the provisions of this Code, offenses that call

for/ merit disciplinary action are classified under five types of heading: Light Penalty,

Habitual Penalty, Gross Penalty, Grave Penalty, and Capital Penalty. This

classification is made in accordance with the disciplinary action that the offense

merits. The corresponding disciplinary actions for each of the above are the following:

Employees who will be committing light penalties have different level of

offenses. At first the incumbent will be given a written warning regarding the

misconduct. Second, if the offender is still committing the same charges he/she will be

given a stern warning reprimand with corresponding warning for suspension. At the

third level offense, the incumbent shall be given a two (2) working day suspension.



Fourth level offense is four (4) working day suspension. If the offender committed the

same charges on the fifth time six (6) working day suspension shall be considered.

The sixth level offense is comprised by a fifteen (15) working day suspension with

warning for dismissal. Lastly, the seventh level offense is ground hearing or dismissal.

Habitual Penalties have five levels of offenses. Stern Warning Reprimand with

warning for suspension is due for first level offense. Next is four (4) working day

suspension is given to second level offense. If the offender committed the same

charges on the third time, six (6) working day suspension is given. Fifteen (15) working

day suspension with warning for dismissal will be given for fourth level offense. Lastly,

hearing or dismissal is given for the seventh level offense.

Gross Penalties have 3 levels of offenses. First is nine (9) working day

suspension is given for the misconduct. Next is fifteen (15) working day suspension

with warning for dismissal when gross penalty is committed for the second time.

Hearing or Dismissal is given for the third level offense of gross penalty.

Employees who will be committing Grave Penalties are given thirty (30) working

day suspension with warning for dismissal. Particularly, hearing or dismissal is due for

the second commitment of grave penalties.

Capital Penalties is the uttermost penalty that an employee can be charged off.

Automatically hearing or dismissal shall be given to the incumbent.

Despite the schedule of penalties, a penalty of dismissal may be commuted by

the President to suspension of thirty (30) days, depending on the mitigating

circumstances present in each case. In the same manner, a penalty may be

increased depending on the aggravating circumstances present.

NOTE: Notice of explanation must be delivered one day after the offense hasbeen committed, thus giving the offender a right to explain. The person incharge will study the explanation given within five days before serving theNotice of Decision.

ARTICLE 5. SALARY AND WORKING HOURS4

Computing Pay for Work Done on

I. A Regular Day (basic daily rate = monthly rate x number of months in a year (12)

/ total working days in a year)

II. A Special Day (130% x basic daily rate)

III. A Special Day, which is also a scheduled Rest Day (150% x basic daily rate)

4 As cited from the Workers’ Statutory Monetary Benefits, Department of Labor and Employment

19

IV. A Regular Holiday (200% x basic daily rate)

V. A Regular Holiday, which is also a scheduled Rest Day (260% x basic daily rate)

Computing Night Shift Premium where Night Shift is a Regular Work

I. Ordinary Day (110% x basic hourly rate)

II. Rest Day, Special Day or Regular Holiday (110% of regular hourly rate)

Computing Overtime

I. On Ordinary Days

○ Number of hours in excess of 8 hours (125% x hourly rate)

II. On a Rest Day, Special Day, or Regular Day

○ Number of hours in excess of 8 hours (130% x hourly rate)

III. On a Night Shift

○ Ordinary Day (110% x basic hourly rate)

○ Rest Day, Special Day or Regular Holiday (110% x overtime hourly rate)

Computing 13th Month Pay

I. Total basic salary earned for the year exclusive of overtime, holiday, and night

shift differential pay divided by 12 = 13thmonth pay

Conditions of Employment and Benefits provided for Employees

I. Employment Conditions

A. Normal working hours shall not exceed eight (8) hours a day

B. Payment of overtime work shall consist of an addition of at least 25% of

the regular wage per hour worked or 30% thereof during holidays or rest

days

C. In the event of a bankruptcy or liquidation, workers shall be paid their full

salary before other creditors may establish any claim to a share in the

employer’s assets

II. Mandatory Benefits and Contributions

A. Companies are mandated by the Labor Code to give their regular

employees a thirteenth month pay equivalent to one (1) month of their

annual salary

B. Employees have a right to a weekly rest period of not less than 24

consecutive hours after every 6 consecutive normal work days

C. Withholding a portion of an employee’s monthly salary to remit as

contributions to government agencies is a requisite for employers, these

agencies are as follows:

■ Social Security System (SSS)

■ Home Development Mutual Fund (HDMF)



■ Phil health

D. Provision of holiday pay

E. Paternity and maternity leave benefits

a) Paternity Leave-All married male employees are eligible for

7 working days up to four (4) child birth including miscarriage

of legitimate spouse to be availed within sixty (60) days from

delivery/miscarriage.

b) Maternity Leave-Under R.A. 11210,

I. women who underwent live childbirth are entitled to

105 days maternity leave with full pay, with an option to

extend for 30 days without pay. On top of 105 days, solo

parents are entitled to 15 more days of maternity leave.

II. Meanwhile, women who suffered miscarriage or

emergency termination of pregnancy, or delivered stillbirth,

can avail of 60 days maternity leave with full pay.

F. Solo Parent Leave-Republic Act No. 8972 grants parental leave of seven

(7) work days with full pay every year, in addition to leave privileges under

existing laws, to solo parents.

I. Parental leave for solo parents is granted to any solo

parent or individual who is left alone with the responsibility of

parenthood due to:

II. Giving birth as a result of rape or, as used by the law,

other crimes against chastity;

III. Death of spouse;

IV. Spouse is detained or is serving sentence for a

criminal conviction for at least one (1) year;

V. Physical and/or mental incapacity of spouse as

certified by a public medical practitioner;

VI. Legal separation or de facto separation from spouse

for at least one (1) year: Provided that he/she is entrusted

with the custody of the children;

VII. Declaration of nullity or annulment of marriage as

decreed by a court or by a church: Provided, that he/she is

entrusted with the custody of the children;

21

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VIII. Abandonment of spouse for at least one (1) year;

IX. Unmarried father/mother who has preferred to keep

and rear his/her child/children, instead of having others care

for them or give them up to a welfare institution;

X. Any other person who solely provides parental care

and support to a child or children: Provided, that he/she is

duly licensed as a foster parent by the Department of Social

Welfare and Development (DSWD) or duly appointed legal

guardian by the court; and

XI. Any family member who assumes the responsibility of

head of family as a result of the death, abandonment,

disappearance, or prolonged absence of the parents or solo

parent: Provided that such abandonment, disappearance, or

prolonged absence lasts for at least one (1) year.

In order to be entitled to the leave, a solo parent employee should have

rendered at least one (1) year of service, whether continuous or broken. In

addition, the employee should notify his or her employer that he or she will avail

of the leave within a reasonable period of time. Finally, the solo parent employee

must present to the employer his or her Solo Parent Identification Card. Such a

card which may be obtained from the Department of Social Welfare and

Development (DSWD) located in the city where the employee resides. Note: In

the event that the parental leave is not availed of, it shall not be convertible to

cash.

ARTICLE 6. EDUCATION AND TRAININGA. SCHOLARSHIP

Section 1. STUDY LEAVE. Regular Employees who are covered by provisions of law,

may apply for study leave subject to the following conditions:

1.1 Study Leave is a leave of absence from work granted not exceeding six (6) months

with allowance for qualified employees to prepare for board or bar examinations. In the

case of master’s degree completion, not exceeding four (4) months shall be considered.

The leave shall be covered by an Educational Support Bond Agreement between

the Management and the concerned employee. No extension shall be granted if the

employee has already availed the maximum period of leave allowed herein. In case, the

employee needs more time to complete their studies, the number of days requested for

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their review/completion of their requirements shall be deducted from their vacation leave

credits.

1.2 The recipient of such leave shall be selected on the basis of the following:

1. The employee must have a Bachelor’s Degree that requires the passing of bar or

board examination for the practice of their profession.

2. The profession or field of study of the concerned employee must be relevant to

one’s position, or to the duties or responsibilities of the employee as determined

by the Management.

3. The employee must have a “Very Satisfactory” rating on performance appraisal

for the last two ratings immediately preceding the application.

4. The employee must also render at least two (2) years of service in the company

(as provided for under DOST Administrative Order No. 008).

5. The employee must have no record of administrative or criminal offenses.

6. The employee must have no ongoing local/foreign scholarship grant.

1.3 The service render obligation to the company is as follows:

Period of Study Leave Grant Service Render Obligation

One (1) Month 3 months after completion

Two (2) -Three (3) Months 4 months after completion

Four (4) - Six (6) Months 5 months after completion

Should the employee fail to render the complete service render obligation in this

sense, due to voluntary resignation, optional retirement, termination of service due to

one’s fault or other causes within one’s reason or control. The employee shall refund the

provided allowances and other benefits as computed on the following formula:

𝑅 = (𝑆𝑂𝑆 − 𝑆𝑅𝑂)/𝑆𝑅𝑂 * 𝑇𝐴𝐴Wherein:

R = Refund

SOS = Service Obligation Served

SRO = Service Render Obligation

TAA = Total Amount of Allowance

1.4. The Employee shall immediately inform the Management through writing if he/she

failed to take the board/bar examination or to complete the master’s degree for which

they were granted for the study leave. In this case, they shall also refund the provided

allowances and or other benefits which will be computed as the above-mentioned

23

formula. Furthermore, for causes that are within one’s reason or control the employee

will be warned that a repeated action will nullify his/her chance to apply for this leave.

Section 2. TULOY ARAL HANDOG NG KOOPERATIBANG PANGKALUSUGAN.Regular Employees who are covered by provisions of law, may apply subject to the

following conditions:

2.1 Tuloy Aral is a scholarship program that will allow an employee to enroll for a

Postgraduate or Masteral Degree. This may cover a full or half scholarship grant for a

maximum of four (4) years.

2.2 The recipient of such scholarship program shall be selected on the following:

1. A Bachelor’s Degree from a college or university of good standing

2. An employee must be of good moral character as attested by the last school

attended or by the present employer

3. The employee must have two (2) years of working experience in the company.

4. The profession or field of study of the concerned employee must be relevant to

one’s Bachelor’s Degree, position, or to the duties or responsibilities of the

employee as determined by the Management.

5. A performance appraisal rating of at least “Satisfactory” in the last two (2)

performance appraisal periods.

6. Absence of pending administrative or criminal offenses.

7. The employee must have no local/international scholarship grant.

8. The employee must have no current service render obligation

9. The employee must be willing to comply with the terms of the Educational

Support Bond Agreement and to carry out responsibilities as scholar/grantee (eg.

service render obligation)

Provided, further, an employee must maintain a passing mark to continue his/her

scholarship grant.


Period of Scholarship Grant Service Render Obligation

One (1)- Two (2) Years One (1) year after completion

Three (3)- Four (4) Years Two (2) years after completion




provided allowances and other benefits as computed on the following formula (as cited

in DOST Revised Admin Order No. 008 series of 2014):



𝑅 = (𝑆𝑂𝑆 − 𝑆𝑅𝑂)/𝑆𝑅𝑂 * 𝑇𝐹𝐴𝑅Wherein:

R= Refund

SOS= Service Obligation Served

SRO= Service Render Obligation

TFAR = Total Financial Assistance Received while on Scholarship

3.4. The Employee shall immediately inform the Management through writing if he/she

failed to finish the scholarship grant. In this case, they shall also refund the provided

allowances and or other benefits which will be computed as the above-mentioned

formula. Furthermore, for causes that are within one’s reason or control the employee

will be warned that a repeated action will nullify his/her chance to apply for this

scholarship grant.

Section 3. TRAINING (I L.C.P. § 1992.)3.1 Regular Employees who are covered by provisions of law, are eligible for training

and development. This will be offered to employees to match their current work position

and enhance his/her competencies. The company shall shoulder the monetary fees

(e.g. training fees, allowance, accommodation, transportation allowance).

3.2 The recipient of such training shall be selected on the following basis:

1. The employee must have two (2) years of working experience in the company.

2. The employee must have a “Very Satisfactory” rating on performance appraisal

for the last two ratings immediately preceding the application.

3. The employee is promoted or has been predesignated.

4. The employee must have no current service obligation.

5. The employee must be willing to comply with the terms of the Training Bond

Agreement and to carry out responsibilities as grantee (e.g. service render

obligation)


Cost of Training Bonding Period

Php 5,000.00 to 15,000.00 3 months after completion



Php 45,001.00 to 60,000.00 1 year of completion

Php 60,001 to 75,000.00 1 year and 3 months after completion

Php 75,001 to 90,000.00 1 year and 6 months after completion

25

Php 90,001.00 to 105,000.00 1 year and 9 months after completion

Php 105,001.00 to 120,000 2 years of completion

Note: Above cost of Php 120,000.00 with Php 15,000.00 cost range iscorresponding to 3 months additional bonding period.




provided allowances and other benefits as computed on the following formula:

Given:

Training Cost : Php 15,000.00

Bonding Period : 6 months

Date of Resignation : February 25, 2016

Formula:

Step 1

Training Cost / Bonding Period = A

Step 2

A x Remaining Months in the Bonding Period = B

B = Amount to be paid by the resigning employee

Computation:

Php 15,000.00 / 3 months = Php 5,000.00

Php 5,000.00 x 1 months = Php 5,000.00

ARTICLE 7. RESIGNATION5

Employment with Cooperative Health Management Federation is voluntary and subject

for termination by the employee or the Federation at will, with or without cause and with

or without notice. Nothing in this policy shall be interpreted that may cause conflict,

eliminate or to modify in any way the employment status of Cooperative Health

Management Federation’s employees.

Section 1. Resignation6 as defined by San Miguel Properties v. Gucaban, the Supreme

Court, “the formal pronouncement or relinquishment of a position or office — is the

voluntary act of an employee who is in a situation where he believes that personal

6 G.R. No. 153982, 18 July 20115 Retrieved from Article 285 of Presidential Decree 442



reasons cannot be sacrificed in favor of the exigency of the service, and he has then no

other choice but to disassociate himself from employment.” The intent to be dismissed

in one’s position must be in accordance with the overact of relinquishment; hence the

acts of the employee must be considered before and after the alleged dismissal to

terminate the employment.

Nevertheless, a text message, verbal or a written notice signifying the intent to be

dismissed effectively is an inappropriate process of resignation under the Philippine

Labor Laws.

As stated in Article 285 of Presidential Decree 442, as amended otherwise known as

the Labor Code of the Philippines, the employee may terminate his/her employment

with or without cause by serving a written notice at least one (1) month advance.

The law also states that the employer may hold liable for damages when there is no

submitted notice of resignation.

Hechanova vs. Matorre, the Supreme court, explained that the thirty (30) day notice is

for the benefit of the employer to have enough time to hire another employee if

necessary and to provide proper turn-over of the tasks that the resigning employee is

handling. Hence, as part of the Federation prerogative, the Management has the right to

move the effectivity date of the resignation.

“The following grounds under Art. 285 of the Labor Code are considered just causes

allowing the employee to resign immediately:

1. Serious insult by the employer or his representative on the honor and person of the

employee;

2. Inhuman and unbearable treatment accorded the employee by the employer or his

representative;

3. Commission of a crime or offense by the employer or his representative against the

person of the employee or any of the immediate members of his family; and

4. Other causes are analogous to any of the foregoing.”

As held in Intertrod Maritime, Inc. vs. NLRC, 7“Once an employee resigns and his

resignation is accepted, he no longer has any right to the job. If the employee later

changes his mind, he must ask for approval of the withdrawal of his resignation from his

employer, as if he were re-applying for the job. It will then be up to the employer to

7 G.R. No. 81087, 19 June 1991

27

determine whether or not his service would be continued. If the employer accepts said

withdrawal, the employee retains his job. If the employer does not, as in this case, the

employee cannot claim illegal dismissal for the employer has the right to determine who

his employees will be. To say that an employee who has resigned is illegally dismissed,

is to encroach upon the right of employers to hire persons who will be of service to

them.”

Section 2. Death of an Employee. A termination due to the death of an employee will

be made effective as of the date of death.

Section 3. Final Pay. This refers to the sum or totality monetary budget given to

employees who resign or are discharged will be paid through the last day of work,

including any unused leave credits, outstanding loans, advances or other agreements

the employee has with the company, in regards with the laws. In the case of an

employee’s death; the final pay due to that employee will be paid to the deceased

employee’s estate or as otherwise required under the law.

ARTICLE 8. TERMINATION8

In pursuant to the Article 5 of the Labor Code of the Philippines, the following Rules are

governing the utilization of the just and authorized causes of termination of employment

under Articles 297-299 of the Labor Code, as amended, are herby as follows:

.

Section 1.Guiding principles. This Rule shall be deemed to all parties of work

employment status where there is an employer-employee relationship. This shall

include subcontractors/contractor arrangements with the Federation. No employee shall

be terminated from work except for just or authorized cause upon observance of the

due process.

Section 2. Employer-Employee Relationship. To determine the employer-employee

relationship exist, the following shall be deemed: (1) the selection and engagement of

employee (2) the payment of wages (3) the power of dismissal (4) the power to control

the employee’s conduct.

Section 3. Grounds for Employee Termination. As per the standards of due process

stated in Article 299 (b) of the Labor Code, as amended, and settled jurisprudence on

the matter, must be observed as follows:

3.1 Termination of Employee Based on Just Cases as defined in the Article 297 of the

Labor Code, as amended, two written notices must be provided by the employee

containing:

8 As cited from the Labor Code of the Philippines, Department of Labor and Employment



(a) The first written notice must provide the specific cause or grounds as provided in

Article 297 of the Labor Code, as amended as stated in this policy.

(b) Detailed and specific narration of the facts and circumstances that will serve as a

basis for the proper sanction of the employee. General narration shall not suffice

for the basis of the sanction, and;

(c) A directive provided by the incumbent containing a written explanation within a

reasonable period.

“Reasonable period” shall be construed as a period of at least five (5) calendar days

from the receipt of the notice to give an employee the opportunity to study the

accusation, consult or be presented by his/her representative if he/she so desires, as

provided in Article 299 (b) of the Labor Code as amended.

After the first notice, the employer is deemed to provide the employee an ample

opportunity( written or verbal) to answer the charges against him/her and submit

evidence in support of his/her defense, whether in a hearing, conference or some other

fair, just and reasonable way. A formal hearing may only occur and becomes mandatory

when requested by the employee through writing or substantial evidentiary disputes

exist or a company rule or practice requires it, or when similar circumstances arise to

justify it.

(d) After justifying the termination of the employee, the employer must serve the

employee a written notice of termination indicating that: (1) all circumstances and

factors involving the charge have been carefully considered and (2) the grounds

have been justify and established the severance of their employment

The foregoing notices shall be directed personally to the employee or to the employee’s

last known address.

Section 4. Standards on Just Causes. According to Department Order No. 147-150

series of 2015 of the Department of Labor and Employment. An employer may

terminate an employee for any of the following reasons:

A. Serious misconduct- refers to the transgression of some established and

definite rule of action, a forbidden act, a dereliction of duty, willful in character

and implies wrongful intent and not mere error in judgement.

The following must be present to be a valid ground for termination:

1. Misconduct must be present.

2. The misconduct must be of such grave and aggravated character;

3. It must relate to the performance of the employee’s duties; and

4. There must be showing that the employee becomes unfit to continue

working for the employer.

29

B. Willful Disobedience or Insubordination- refers to the refusal to obey some order,

which a superior is entitled to give and have complied. It is a willful or intentional

disregard of the lawful and reasonable instructions of the employer.


1. Disobedience or insubordination must be present.

2. The disobedience or insubordination must be willful or intentional characterized

by an unjustified and perverse attitude;

3. The order violated must be reasonable, lawful, and made known to the

employee; and

4. The order must pertain to the duties which the employee has been engaged to

discharge.

C. Gross and Habitual Neglect of Duties- refers to the lack of diligence that an ordinary

prudent employee must possess.


1. Neglect of duty must be present.

2. The negligence must be both gross and habitual in character

D. Fraud or Willful Breach of Trust


1. There must be an act, omission or concealment

2. The act, omission or concealment justifies the loss of trust and confidence;

3. The employee concerned must be holding a position of trust and confidence;

4. The loss of trust and confidence should not be simulated;

5. It should not be used as a subterfuge for causes which are improper, illegal or

unjustified; and

6. It must be genuine and not mere afterthought to justify an earlier action taken in

bad faith

E. Commission of a Crime or Offense


1. There must be an act or omission punishable/prohibited by law; and

2. The act of omission was committed by the employee against the person of

employer, any immediate member of his/her family, or his/her duly authorized

representative

Section 5. Termination of Employment based on Authorized CausesAs stated in Department Order No. 147-150 series of 2015 of the Department of Labor

and Employment an Employee may be terminated due to authorized cases wherein this

refers to those circumstances enumerated and identified under Article 298 (Closure of

Establishment and Reduction of Personnel and 299 (Disease as Ground for

Termination) of the Labor Code, as amended. These causes are due to the necessity

and essential to the deliverance of business, changing of economic conditions and

illness of the employee.

The requirements of due process shall be deemed and be complied upon service of a

written notice to the employee and the appropriate Regional Office of the Department of



Labor and Employment at least thirty (30) days before the effectivity of the termination.

Thus, providing the ground/s for termination.

5.1. Standards on Authorized Causes. The Federation may terminate an employee for

any of the following grounds:

A. Installation of Labor-Saving Devices- refers to the introduction of labor-saving

machinery or devices in the workplace which results in reduction of number of

employees.


1. There must be introduction of machinery, equipment or other devices;

2. The introduction of must be conducted in good faith;

3. The purpose of introduction must be valid and aimed at saving cost, enhancing

the efficiency of production or services of the Federation

4. There is no other option available than to introduce machinery, equipment or

devices that will aid in providing smooth flow of services and products

5. A fair and reasonable criteria is considered in terminating employees

B. Retrenchment- refers to the economic ground for dismissing employees and resulting

in minimizing and avoiding business losses.


1. The retrenchment must be necessary and likely to prevent business losses;

2. The expected or actual losses are to be provided by the Federation containing

sufficient and convincing evidence;

3. A fair and reasonable criteria is considered in terminating employees

C. Closure or Cessation of Operation


1. A decision to close or cease operation of the enterprise is fully deemed by the

Federation

2. The decision was made in good faith

3. There is no other option available to the employer except to close or cease

operations

E. Disease


1. The employee must be suffering from any disease;

2. The continued employment of the employee is prohibited by the law or prejudicial

to his/her health as well as to the health of his/her colleagues in the workplace

3. There must be a certification by a public health authority that the disease is

incurable within a period of six (6) months even with proper medical treatment.

Section 6. Other Causes of Termination. The Federation may terminate an employee

based on reasonable and lawful grounds specified under this company policy.

31

Section 7. Payment of Separation Pay. This refers to the monetary budget given to

employees who are terminated due to installation of labor-saving devices, retrenchment,

closure or cessation of operations, and disease.

As stated in the Department Order No. 147-150 series of 2015 of the Department of

Labor and Employment, the following are the basis for the separation pay due to

termination:

6.1 An employee who is terminated due to installation of labor-saving devices are to be

paid by the Federation equivalent to at least one (1) month compensation or at least

one (1) month of pay for every year of service, whichever is higher, a fraction of six (6)

months is to be considered as one (1) whole year.

6.2 An employee who is terminated due to retrenchment shall be paid by the Federation

equivalent to at least one (1) month compensation or at least one-half (½) month pay for

every year of service, whichever is higher, a fraction of six (6) months is to be

considered as one (1) whole year.

6.3 An employee who is terminated due to closure or cessation of service not due to

serious business losses are then to pay a separation pay equivalent to one (1) month

pay or at least one-half (½) month pay for every year of service, whichever is higher, a

fraction of six (6) months is to be considered as one (1) whole year. Should the

company closure be due to serious business losses or financial reverses separation pay

is not provided.

6.4 An employee who is terminated due to disease shall be paid with an equivalent of at

least one (1) month salary or one-half (½) month salary for every year of service,

whichever is higher, a fraction of six (6) months is to be considered as one (1) whole

year.



References

105-Day Expanded Maternity Law 2018 (Phi) s.3 (PH).

Data Privacy Act of 2012 2011 (Phi) s.12 (PH).

Executive Order No. 292 1987 1992 (Phi) s. 7 (PH.). Retrieved from

https://www.officialgazette.gov.ph/1987/07/25/executive-order-no-292-s-1987/

Guidelines on the Implementation of Local Non-Degree Group Training Program of

DOST System 2016 (Phi) (PH).

N. (2020b, August 19). How To Avail of Parental Leave for a Solo Parent. Law Firm in

Metro Manila, Philippines | Corporate, Family, IP Law, and Litigation Lawyers.

https://ndvlaw.com/how-to-avail-of-parental-leave-for-a-solo-parent/#:%7E:text=Republi

c%20Act%20No.,existing%20laws%2C%20to%20solo%20parents

N. (2020, May 11). How to Resign Properly in the Philippines. Law Firm in Metro Manila,

Philippines | Corporate, Family, IP Law, and Litigation Lawyers.

https://ndvlaw.com/how-to-resign-properly-in-the-philippines/

Omnibus Rules on Leave 1998 (Phi) s.1998 (PH).

Philippines. (1992). The Labor Code of the Philippines (as amended by Republic acts

nos. 6715, 6725, and 6727): and its implementing rules and regulations, with

appendices. Quezon City, Metropolitan Manila, Philippines:Philippine Law Gazette,

Revised Integrated Policy on Time/Attendance Monitoring and Leave Administration

2011 (Phi) (PH).

Solo Parents Welfare Act of 2000 2000 (Phi) s.1-16 (PH).

Termination of Employment 1989 (Phi) art. 278-287 (PH). Retrieved from

https://blr.dole.gov.ph/2014/12/11/book-vi-post-employment/.

Department Order No. 147-15 2015 (Phi) (PH).,

User, S. (2020). Gov’t issues clarification on 105-day maternity leave. Civil Service

Commission.

http://www.csc.gov.ph/new-updates/1911-govtissuesclaificationon105maternityleave.htm

l

33

https://www.officialgazette.gov.ph/1987/07/25/executive-order-no-292-s-1987/

https://ndvlaw.com/how-to-avail-of-parental-leave-for-a-solo-parent/#:%7E:text=Republic%20Act%20No.,existing%20laws%2C%20to%20solo%20parents

https://ndvlaw.com/how-to-avail-of-parental-leave-for-a-solo-parent/#:%7E:text=Republic%20Act%20No.,existing%20laws%2C%20to%20solo%20parents

https://ndvlaw.com/how-to-resign-properly-in-the-philippines/

https://blr.dole.gov.ph/2014/12/11/book-vi-post-employment/

http://www.csc.gov.ph/new-updates/1911-govtissuesclaificationon105maternityleave.html

http://www.csc.gov.ph/new-updates/1911-govtissuesclaificationon105maternityleave.html

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