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General Policies & Procedures

LABOR SERVICES DEPARTMENT Clark Development Corporation

 

 

OBJECTIVES

 

To assist the CDC in fulfilling its corporate mission of generating employment and livelihood opportunities;

To ensure the availability of both a skilled and semi-skilled workforce for manpower requirements through continuous training and human resources development programs;

To provide all CSEZ locators maximum assistance on their manpower concerns and programs;

To ensure the maintenance/sustenance of industrial peace within CSEZ by facilitating the implementation of the Philippine Labor Code as well as compliance with prevailing labor regulations and standards.

LSD has four (4) divisions namely, Placement and Evaluation Division, Industrial Relations Division, Safety & Health Division and Training & Development Division

 

PLACEMENT

AND

EVALUATION DIVISION

 

FUNCTIONS

 

POLICIES ON HIRING

The Division shall maintain the following policies/procedures:

 

POLICIES ON APPLICANT NOTIFICATION

Qualification screening among the applications present in the manpower pool may be done by the PD or by the locators’ HR official (upon submission of the REQUEST FOR MANPOWER). A maximum of four (4) qualified applicants may be notified for each actual need specified in the request. Notification may be done by choosing either of two (2) Options:

OPTION 1

  1. Upon submission of the Request for Manpower or after screening, the locator may choose option 1 wherein LSD shall notify the chosen applicants by sending an official CALL SLIP instructing an applicant to report for initial interview/testing on a specified date. Applicants shall be initially instructed to report to the PD for briefing/orientation on LSD procedures and services as well as on the locator’s company profile and labor standards before being directed to the venue specified by the locator. In no case, however, shall the interview date be set earlier than seven to ten business days from the day of screening to ensure adequate time for processing and delivery of the mail.

  2. Upon reporting to the PD, the applicants may also be initially screened/interviewed by the Placement personnel in accordance with any special qualifications/skills & other requirements set by the locator in its Request.

  3. As the applicants report to the locators, the latter may then conduct its usual recruitment/hiring procedure. The locator may process the applications for a maximum period of fourteen (14) days only, after which, all files which will no longer be considered for further evaluation or hiring must be returned for re-filing into the Manpower Pool. These files should be accompanied by a Summary Report on the status of all applicants referred for interview (LSD Form 002A). Locators may request to keep certain files if there is a need for further evaluation with the consent of the PD.

  4. Any application shall be given up to three (3) option 1 chances before being considered as Dead File.

OPTION 2

  1. A second option would be for the locators to notify the chosen applicants themselves either by mail or by telegram. Processing time would be substantially shorter at two to three working days depending on the volume of applicants to be processed for release.

  2. Applications released under Option 2 may be picked up at the PD by the locator for immediate processing. As with Option 1, the locator may keep the files for fourteen (14) days. Upon release, the files will be accompanied by an official List or Summary Report to be filled up by the locator upon returning the files (LSD Form 002B). This report requires the locators to indicate the status of each referred file as follows:

NA - Notified But Non-Appearance

NN - Not Notified

H - Appeared, Qualified & Hired

NH - Appeared, Not Qualified & Not Hired

FE - Appeared, For Further Evaluation

  1. Applicants shall be given up to four Option 2 chances only, excluding those in which they were not notified.

  2. LSD shall reserve the right not to receive any returned application without a properly accomplished Status Report. Consequently, no files may be released to locators with pending unreturned/unreceived applications.

Whether under Option 1 or Option 2, the final decision on hiring shall still lie with the locators. The locator is then, however required to report all newly hired employees to the LSD.

 

POLICIES ON DIRECT HIRING

 

INDUSTRIAL RELATIONS DIVISION

 

FUNCTIONS

 

GENERAL CDC POLICIES FOR CSEZ LOCATORS

CDC Labor Services Department stresses the observance of all standard labor policies and strictly 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 in addition to the above provisions and procedures in order to create and maintain stable working conditions, a strong business environment and promote industrial peace within the Zone:

PHILIPPINE LABOR STANDARDS LAWS

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:

HIRING OF PERSONNEL

As previously explained in the section regarding Placement and Recruitment, manpower shall be officially sourced from the LSD-Placement Division. However, locators may employ private manpower and service agencies only for its utility or janitorial needs and Security agencies for its security presonnel. 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.

EMPLOYMENT CONTRACTS

Issuance of working contracts to all employees regardless of status is not only customary but 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:

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.

EMPLOYMENT STATUS

An employee’s status should be appropriate to the nature of his or her work. Employees hired for a particular undertaking or project are considered PROJECT-HIRE or CONTRACTUAL employees. These must be distinguished from TRAINEES or APPRENTICES who are undergoing instruction for a particular trade, duly recognized by proper government agencies (i.e. TESDA). Those employees, however, whose duties are directly related to the company’s normal flow of operations or primary mode of business shall be classified as PROBATIONARY to be assessed for a period not exceeding 6 months before turning REGULAR or being separated from service.

As stated in Article 281 of the Labor Code of the Philippines, employees classified as probationary "shall be employed for a period not exceeding six (6) months from the day the employee started working." "An employee who is allowed to work after a probationary period shall be considered a regular employee" and shall be accorded all privileges of regular employment.

 

WAGES & COMPENSATION

LSD 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.

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:

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.

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.

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. This clearance shall serve as basis for CDC-LSD to consider the person for future opportunities at CSEZ.

LABOR STANDARDS INSPECTIONS

The Department of Labor and Employment’s designated officials, accompanied by the CDC-LSD staff shall conduct once a year inspections on labor standards compliance. However, on its own, LSD shall routinely conduct periodic on-site labor standard inspections among all the CSEZ locators as well as in the event of any report of non-compliance with existing labor laws. Locators have the right to deny accommodating any agencies if their visits are not properly coordinated with LSD. 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:

In the course of its routine inspections, LSD shall identify and document any labor violations or any form of non-compliance with Labor Standards. An official citation or Notice of Inspection Results (LSD Form 007) shall be issued to the locator. The locator shall be given fourteen (14) days to effect all necessary changes or rectifications, afterwhich, LSD 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 LSD, duly noted by the concerned CDC Departments. The Memorandum shall include any sanctions or courses of action decided upon by Clark Development Corporation

 

SUBMISSION OF REPORTORIAL REQUIREMENTS

Employment Masterlist

In order to constantly monitor the status of employment within CSEZ, all locators are required to submit a comprehensive EMPLOYMENT MASTERLIST (LSD Form No. 004) representing all current employees including manpower and security agency employees and/or construction workers. This masterlist shall include specific information regarding employees’ gender, domicile, status of employment upon hiring, as well as LSD status. The Employment Masterlist is to be submitted to LSD-IRD upon start up of operations at CSEZ.

Report on Newly Hired and Separated Employees

In the succeeding month after the submission of the Employment Masterlist, locators are also required to submit periodic reports on employment status (i.e. NEWLY HIRED EMPLOYEES-LSD Form No. 005A & SEPARATED EMPLOYEES-LSD Form 005B) highlighting all movements within the company including New Hires, Separations, Promotions, Transfers and the like. These reports are due on the 15th of every month.

CSEZ locators are enjoined to fill-out all pertinent information contained in these forms in order to come up with an accurate Monthly Manpower Update.

 

POLICIES GOVERNING FOREIGN NATIONALS

CDC Labor Services 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-LSD 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).

Visas

Letter request addressed to the LSD Manager

Photocopies of Passport

Employment Contract or Secretary’s Certificate

CDC Certificate of Registration

CDC Certificate of Tax Exemption

Lease/Sublease Agreement

alien Employment Permits (AEPS) 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 LSD. LSD shall endorse said applications documents to the Department of Labor and Employment for evaluation and approval.

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.

 

OTHER SERVICES

LASER CARD CERTIFICATION

Locators’ regular employees who wish to avail of the $100/month shopping privilege may fill-up the Certification of Employment & Address (LSD Form No. 008) duly signed by the HRD Manager. However, only regular employees who are permanently assigned at CSEZ and are not qualified as permanent "residents" pursuant to EO 250* may avail of this privilege.

* residents of Angeles City, Mabalacat, Porac, Bamban and Capas

    1. the HR/Personnel Manager and

    2. another officer who may also be designated and authorized by the highest ranking officer of the locator.

(LSD reserves the right to approve or disapprove Certification of Employment & Address forms)

REFERRAL OF STUDENTS FOR ON-THE-JOB TRAINING IN THE CSEZ

As a matter of policy, students desiring to undergo on-the-job training must first coordinate with the LSD thru a Letter of Intent signed by the school head. This is done in order to centralize procedures on OJT with LSD as well as for the locators’ own security.

LSD, upon receipt and review of a Letter of Intent, may issue endorsements for various schools requesting for on-the-job training at CSEZ with the requested or appropriate company. The endorsement, however, shall reiterate no employer-employee relationship between locators and student. LSD shall conduct a comprehensive briefing with the student-trainees before official referral to the locator.

REFERRAL OF EMPLOYEE-TRAINEES FOR TRAINING ABROAD

LSD shall issue a Certification of CSEZ Employment to locators to facilitate the training of their employees abroad. Only LSD-referred employees (i.e. sourced from LSD Placement Division) shall be issued the said certifications.

Locators may request for such certifications by submitting a request letter and a list of all employees they wish to train abroad. LSD shall verify from its records if the employee was indeed registered and officially referred to the requesting locator by the LSD-Placement Division. Upon verification, LSD shall release the Certification of CSEZ Employment.

 

 

 

SAFETY & HEALTH DIVISION

 

FUNCTIONS

 

 

 

TRAINING AND

DEVELOPMENT DIVISION

 

FUNCTIONS

SERVICES OFFERED

CONDUCT OF SKILLS TRAINING PROGRAMS

CONDUCT OF CAREER DEVELOPMENT PROGRAMS

Career development programs for CSEZ locators shall be coordinated by the Training Division with government agencies such as TESDA, DTI, DOST, etc., who are providing trainings and seminars related to the human resource development requirements of locators. CSEZ locators will be notified of the schedule of these programs.

CONSULTANCY AND JOB SERVICES (WELDING & LATHE MACHINING)

The Metal workshop of the TC, assisted by the German Development Service (GDS), accepts consultancy work and offers services in welding and lathe machining especially among locators with production requirements related to these trade areas. Interested locators may directly coordinate their requirements with the TC.

USE OF DORMITORIES AND TRAINING FACILITIES

To generate income, the TC offers its dormitory and training room facilities for a token fee. Interested parties must fill-out a reservation slip (MSDSC Form 002) and pay a reservation fee equivalent to 50% of the total rent.

ASSISTANCE IN THE PROCESSING OF APPRENTICESHIP & LEARNERSHIP PROGRAMS

The Training Division, in coordination with the Technical Education and Skills Development Authority (TESDA), shall assist locators in the application, processing and implementation of Apprenticeship and Learnership Programs.