CLARK DEVELOPMENT CORPORATION

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					GENERAL POLICIES AND PROCEDURES                                                                                   1




Clark Development Corporation
Customer Service Department
0Industrial Relations Unit
 nd
2 Floor CDC Bldg. 2127 C.P. Garcia cor. E. Quirino St., Clark Field, Pampanga
Telefax No. (+6345) 599-2045 (Industrial Relations)
Tel. Nos. (+6345) 599-9000 local 641 (CSD Manager) 675 (Customer Support, Business Permits)
923 (Investor Support) 204 Industrial Relations Auxiliary Line

Contacts:

Mr. Franco A.L. Madlangbayan - Manager, Customer Service Department (FrancoMadlangbayan@clark.com.ph)
Mr. Ervyn Rivera – Assistant Manager (ErvynRivera@clark.com.ph)
Mr. Eduardo Pinlac, Jr. – Sr. Labor Relations Officer (EduardoPinlac@clark.com.ph)



I. MANDATE

To formulate and implement plans, projects and programs for the maintenance of industrial peace among workers
and competitiveness of employers throughout the Clark Special Economic Zone.

I.A. SECTIONS

I.A.1. LABOR STANDARDS & EDUCATION SECTION

To continuously improve working conditions, quality of employment, employment generation, human resources
development, labor management cooperation, quality and productivity; maintain applicable labor laws and
standards.

To provide effective labor education programs for increased awareness among employers and employees alike.
Propose and conduct training programs on labor standards, LMC and Human Resource Management

I.A.2. LABOR RELATIONS SECTION

To act as a quick action group for the preventive mediation/conciliation of labor disputes, maintenance of labor laws
and standards; become a source of labor related information, statistical and demographic data and act as
consultant on labor related matters while enacting partnerships with other relevant government and non-government
instrumentalities and organizations for the development of labor and sustainable industrial harmony

II. FUNCTIONS

II.A. The Industrial Relations Unit (IRU) of the Customer Service Department (CSD) shall formulate plans and
implement programs to promote industrial peace and productivity within the CSEZ. It shall assist as best as possible
in the amicable settlement of labor disputes between employees and management.

II.B. The IRU shall coordinate with authorized government agencies not limited to the Department of Labor and
Employment to efficiently monitor compliance with labor standards and other statutory regulations as well as jointly
generate programs to maintain industrial peace and enhance productivity.

II.C. The IRU shall receive and document concerns of CSEZ employees and management and assist in the
amicable settlement of such problems or disputes by verifying the veracity of such concerns, conducting preventive
mediation and recommending the proper and legal courses of action.


CLARK DEVELOPMENT CORPORATION                                CUSTOMER SERVICE DEPARTMENT – INDUSTRIAL RELATIONS
UNIT
GENERAL POLICIES AND PROCEDURES                                                                                   2


The IRU shall coordinate with both government and private agencies/organizations to make available relevant
training modules and forums on effective human resource management, labor laws and labor relations,
organizational development and develop competitiveness and social accountability among CSEZ locators.

II.D. The IRU shall become a relevant source of statistical data on employment generation, manpower and training
needs, compensation and benefit structures, demographic data on labor and other relevant information.


III. GENERAL CDC POLICIES FOR CSEZ LOCATORS

CDC Industrial Relations Unit stresses the observance of all standard labor policies and imposes fair and lawful
labor practice in the Zone. Upon the hiring of personnel, all CSEZ locators are expected to comply with the
following policies and procedures as well as all applicable laws contained in the Labor Code of the Philippines in
order to create and maintain stable working conditions, a strong business environment and promote industrial peace
within the Zone:

    III.A. PHILIPPINE LABOR LAWS & STANDARDS

    CDC fully recognizes the observance of all provisions, policies, and standards upheld by the Labor Code of the
    Philippines; compliance is therefore mandatory throughout the Clark Special Economic Zone. Following are
    basic provisions to be followed:

    Latest applicable Minimum Wage
    Holiday Pay
    Night Differential pay
    Rest days
    Service Incentive Leave
    Additional pay for Overtime Work
    Premium pay for Rest day/Special Holiday work
    13th Month Pay
    Working Hours
    Social Welfare benefits as defined by the Social Security System (SSS) , the Employees’ Compensation
       Commission (ECC) & Pag-IBIG Fund

    III.B. HIRING OF PERSONNEL

    Recruitment in CSEZ is liberalized meaning direct hiring of employees without sourcing them from CDC is
    allowed. Locators are however, encouraged to avail of the manpower pool of applicants offered free of charge
    by the CDC Customer Service Department Placement Office.

    Locators may employ private manpower and service agencies for its incidental manpower needs such as utility
    or janitorial needs and security agencies for its security personnel. In no case however, may a locator hire the
    services of agencies for positions directly related or integral to its main business or operation. This is
    considered as LABOR ONLY CONTRACTING which is prohibited by law. Other aspects of the hiring of
    personnel shall be governed by the provisions of the Labor Code on Contracting and/or Subcontracting and
    applicable DOLE Orders.




CLARK DEVELOPMENT CORPORATION                                CUSTOMER SERVICE DEPARTMENT – INDUSTRIAL RELATIONS
UNIT
GENERAL POLICIES AND PROCEDURES                                                                                   3


   III.C. EMPLOYMENT CONTRACTS

   Issuance of working contracts to all employees regardless of status is not only customary but also lawful. Every
   employee must receive his/her Contract of Employment on or before the first day of work and his/her Certificate
   of Appointment upon confirmation to a new position or status. All contents and provisions of the contract must
   be clearly explained and understood by the employee. Contracts must contain at least the following essential
   information:

    Name and Position (Job Title) of employee
    Effectivity and duration of contract or probationary period
    Employment status
    Salary and additional benefits
    Basic duties or job description
    Basic company policies, etc.

   Regardless of contract provisions however, the status of employment of any worker as well as his/her right to
   security of tenure shall be governed by the Labor Code of the Philippines.

   III.D. PRE-EMPLOYMENT ORIENTATION

   It is highly advisable to hold a comprehensive pre-employment seminar on company policies as well as safety
   and health standards before an employee starts work. This will minimize disciplinary violations and preserve
   employee safety as well as foster employee dedication to corporate policies and values. It is also important to
   issue an Employee Manual duly received by every employee for reference purposes.

   III.E. EMPLOYMENT STATUS

   III.E.1. Employees performing functions which are usually necessary or desirable to the usual trade or business
   of the company shall be considered REGULAR employees.

   III.E.2. New employees may be given a maximum of 6 months PROBATIONARY employment period for
   training and familiarization. This must be covered by a probationary contract containing the requirements for
   employment and the reasonable standards to qualify for regular status. Employees hired without
   Probationary Contracts shall be considered Regular employees from their first day of employment.

   III.E.3. CASUAL employees may be hired for jobs, which are not part of the main business of an enterprise.
   However, casual employees hired for at least 1 year (whether continuous or broken) shall become Regular
   employees.

   III.E.4 SEASONAL and PROJECT employees may be hired for particular and pre-determined periods or
   projects, provided that this is not meant to circumvent the right to security of tenure and regular employment.

   III.E.5. APPRENTICES or trainees for trades requiring particular skills may be hired according to applicable
   standards and requirements set by the Technical Education and Skills Development Authority (TESDA). No
   other type of “trainees” may be employed.

   III.E.6. CONTRACTUAL employees as those employed by independent Contractors or Sub-contractors. Such
   contractors must be duly registered with the Regional Branch of the Department of Labor and Employment
   (DOLE). All labor laws governing contracting and sub-contracting shall be immediately applicable.


   III.F. WAGES & COMPENSATION

   IRU recognizes and enforces the existing Minimum Wage Law and any future provisions or amendments as
   applied to all CSEZ locators. All state mandated benefits, premiums, allowances, incentives and the like shall
   also be strictly enforced and regularly monitored through routine Labor Standards inspections.

   III.G. PAY SLIPS & PAY RECORDS

   Employees shall be issued an official pay slip representing each pay period. Payslips must contain basic
   information pertaining to the computation of the employee’s salary such as:

    Basic pay
    No. of hours worked for the period

CLARK DEVELOPMENT CORPORATION                                CUSTOMER SERVICE DEPARTMENT – INDUSTRIAL RELATIONS
UNIT
GENERAL POLICIES AND PROCEDURES                                                                                   4



    Overtime and Premium pay
    Allowances
    Salary Deductions
    Withholding Tax, Pag-IBIG Fund contributions, SSS Contributions, etc.

   III.H. PERFORMANCE APPRAISAL

   Performance evaluation is an invaluable tool in assessing an employee’s level of knowledge and competence
   as well as measuring potential for possible retention/regularization of probationary employees. This is also used
   for evaluating an employee for possible promotion, transfer or separation. A performance appraisal system,
   when consistently applied, will provide a factual and objective basis for making such decisions.

   III.I. TERMINATION AND DISMISSAL

   Although generally unwanted, disciplinary action, even dismissal from duty is sometimes the necessary
   recourse for some companies. It is therefore essential to set valid, consistent and lawful guidelines and
   principles for such courses of action.

       Code of Conduct & Due Process

       Termination for cause or from willful violation of company policies may be considered as valid only with the
       presence of a generally acknowledged Code of Conduct or Code of Discipline; either of which must be duly
       explained and fully understood by each employee.

       Any account of a violation of these governing rules, if to serve as the principal basis for disciplinary action
       must be properly documented and made known to the person concerned. A report such as this should fully
       relate the actual occurrence of the violation while taking into account possible mitigating circumstances
       surrounding the incident as well as the testimony of any witnesses. Upon notice, the person concerned
       must be given reasonable opportunity to explain his/her side of the event.

       Essentially, any disciplinary action should be applied as a corrective measure rather than as punishment. In
       this regard, the degree or severity of the disciplinary action to be given must obviously coincide with the
       rules indicated in the Code of Conduct but more importantly, recognize the principles of validity, sufficient
       evidence, consistency and appropriateness in order to serve as just cause for imposing such an action.

   Other reasons for separation of employees such as retrenchment or lay-off shall be governed by specific
   provisions set forth in the Labor Code of the Philippines.

   III.J. EMPLOYMENT CLEARANCE

   Upon resignation or the end of an employee’s contract, and having no further obligation or accountability from
   the company or having had no derogatory record, he/she shall be given an official employment clearance and/or
   Certificate of Employment upon his/her request. All salaries and benefits of the employee shall be given
   immediately upon separation and clearance from the company.


   IV. OTHER POLICIES

   IV.A. LABOR STANDARDS INSPECTIONS

   The Department of Labor and Employment’s designated officials, accompanied by the CSD-IRU staff shall
   conduct yearly inspections on labor standards compliance. However, on its own, IRU shall routinely conduct
   periodic on-site labor standard inspections among all the CSEZ locators as well as in the event of any report or
   complaint of non-compliance with existing labor laws. Locators have the right to deny accommodating any
   agencies if their visits are not properly coordinated with IRU. Inspectors shall be given lawful access to any
   relevant records, which could serve as basis for assessing Labor Code/Labor Standard compliance. Examples
   of such records may be the following:

    Employee roster and Employee payroll
    Timesheets and Attendance records
    Contracts and Appointment records
    Payslips
    SSS and BIR records, etc.

CLARK DEVELOPMENT CORPORATION                                CUSTOMER SERVICE DEPARTMENT – INDUSTRIAL RELATIONS
UNIT
GENERAL POLICIES AND PROCEDURES                                                                                    5


    In the course of its routine inspections, IRU shall identify and document any labor violations or any form of non-
    compliance with Labor Standards. An official citation or Notice of Inspection Results shall be issued to the
    locator. The locator shall be given reasonable time to effect all necessary changes or rectifications, after which,
    IRU shall conduct a follow up inspection. If no changes or corrections have been made upon follow up, a formal
    Notice or Memorandum shall be issued by CSD-IRU, duly noted by the concerned CDC Departments. The
    Memorandum shall include any sanctions or courses of action decided upon by Clark Development Corporation.
    The same shall be forwarded to the Department of Labor and Employment.

IV.B. SUBMISSION OF REPORTORIAL REQUIREMENTS

    EMPLOYMENT REPORTS

    In order to constantly monitor the status of employment within CSEZ, all locators are required to submit a
    comprehensive monthly REPORT ON EMPLOYMENT (ROE) and REPORT ON SEPARATED EMPLOYEES
    (ROSE) representing all current and newly separated employees including manpower and security agency
    employees and/or construction workers. This report shall include specific information regarding employees’
                                                                                                                  th
    gender, domicile, status of employment. Likewise locators are required to submit This report is due on the 10
    day of the month following the end of each month.

IV.C. POLICIES GOVERNING FOREIGN NATIONALS

CDC Customer Service Department shall ensure that the entry of all foreign nationals in the CSEZ for employment
and/or investment purposes are governed by policies and procedures consistent with the Philippine Immigration Act
(PIA), Executive Orders, Rules and Regulations and other issuances by the National Government. To simplify the
processing the issuance of visas and work permits in the CSEZ, CDC-CSD-IRU shall assist foreign nationals by
formally endorsing their visa application with the Department of Justice (DOJ), Bureau of Immigration (BI) and the
Department of Labor and Employment (DOLE).

    IV.C.1. ALIEN EMPLOYMENT PERMITS (AEP) AND ALIEN EMPLOYMENT REGISTRATION
    CERTIFICATES (AERC)

    Foreign nationals contracted for employment inside the CSEZ shall apply for Alien Employment Permits (AEPS)
    and the Alien Employment Registration Certificates (AERC) through CSD-IRU. CSD-IRU shall endorse said
    applications documents to the Department of Labor and Employment for evaluation and approval.

    IV.C.2. EXECUTIVE ORDER NO. 464

    Under Executive Order No. 464, foreign nationals, not categorized as “restricted” as determined by the
    Department of Foreign Affairs, visiting the Clark Special Economic Zone (CSEZ) for business and/or tourism
    purposes may be allowed to enter all ports of entry of the CSEZ and stay therein without visa for a maximum
    period of fourteen (14) days; provided that upon arrival, they present their passports, Certificates of Identity or
    travel documents valid for at least six (6) months beyond the intended stay inside the Zone and confirmed
    onward flight tickets.

    IV.C.3. VISAS

       CSD Customer Support Unit issues endorsement letters to locators’ foreign nationals to expeditiously avail
        of SPECIAL CLARK WORKING VISA or SPECIAL CLARK INVESTORS VISA from the Bureau of
        Immigration and Deportation

       Prior to the issuance of an endorsement letter the following documents shall be submitted to CSD:
                   Letter request addressed to the CSD Manager
                   Photocopies of Passport
                   Employment Contract or Secretary’s Certificate
                   CDC Certificate of Registration
                   CDC Certificate of Tax Exemption
                   Lease/Sublease Agreement
                   Alien Employment Permit




CLARK DEVELOPMENT CORPORATION                                 CUSTOMER SERVICE DEPARTMENT – INDUSTRIAL RELATIONS
UNIT