LEAVE RULES AND FILING PROCEDURES (MANDATORY)

To ensure uninterrupted operations, fair leave allocation, and accurate payroll processing, all employees are required to strictly comply with the following leave application and coordination rules.

Prior Notice Requirement (“Inform First” Rule)

Before filing a formal leave application in the Company HR System, employees must first notify their immediate supervisor through the official communication channel.

• Planned / Vacation Leave Notification must be made at least three (3) calendar days in advance.
• Sick or Emergency Leave Notification must be made at least two (2) hours before the start of the shift, except in cases where the employee is medically or physically incapacitated.

Failure to provide timely notice may result in the leave being disapproved or reclassified as Leave Without Pay (LWOP).

Mandatory Filing & Approval Timeline

• All leave applications must be filed in the HR system within twenty-four (24) hours from the employee’s return to work.
• Employees are responsible for ensuring that their leave is reviewed and approved within the same 24-hour period.

Late Filing

• Late filing of leave applications may be accepted only if submitted within the applicable payroll cut-off period.
• Leaves filed after payroll cut-off or after payroll processing has been completed shall be automatically tagged as - Unexcused Absence / LWOP, regardless of reason.

Back-dated leave applications will not be accepted once payroll cut-off has passed.

Payroll Cut-Off Compliance

Cut-off Periods

• 1st–15th of the month → Paid on the 20th
• 16th–end of month → Paid on the 5th of the following month

All leaves must be filed and approved before payroll cut-off to be included in the current salary computation.

Absences occurring on the cut-off date itself must be filed immediately.

Unauthorized Absences

Any absence taken without:

prior notice, or

proper filing within the required timeline

shall be classified as an Unauthorized Absence and may be treated as Abandonment of Post for that day, subject to salary deduction and disciplinary action under the Code of Discipline.

Approved Leaves Only (“No Approval, No Leave” Rule)

Only leaves that are:

• officially filed, and
• approved through the Company HR system shall be recognized as valid. Unfiled or unapproved absences shall be considered Unexcused, regardless of the employee’s remaining leave balance, and may result in disciplinary action.

Leave Deduction Order

Once approved, leave credits shall be deducted in the following order:

Statutory Service Incentive Leave (SIL) – First 5 Days

• The first five (5) approved leave days of the calendar year shall be charged against Statutory SIL.
• Only unused SIL credits are eligible for cash conversion, in accordance with law.

Company-Granted Leave – Remaining 25 Days

• All subsequent approved leaves (Vacation Leave, Sick Leave, Emergency Leave, Calamity Leave) shall be deducted from the Company-Granted Leave Pool.
• These credits are non-convertible, non-transferable, and subject to a “Use It or Lose It” policy.

Exclusion from Final Pay

• Company-granted leave credits are discretionary benefits and shall not form part of Final Pay or Separation Pay upon resignation or termination.

Monthly Accrual & Leave Banking Rule

To promote responsible leave usage and operational stability, leave credits are earned monthly.

Monthly Accrual

• Employees earn 2.5 leave days per completed month (30 days ÷ 12 months).
• Credits become available only after the completion of each month of service.
• For newly regularized employees, accrual begins on the effective date of regularization.

Accumulation (“Banking”)

• Unused monthly leave credits are accumulated and carried forward within the same calendar year.

Usage Limits & Excess Leave Policy

• Employees may not use more leave days than their currently accumulated balance.
• Leaves taken in excess of the monthly 2.5-day accrual or available banked balance shall be automatically deducted as: Undertime, or Leave Without Pay (LWOP)

Employees are expected to actively monitor and manage their leave balances to avoid salary deductions.

Advance Leave (Exceptional Cases Only)

Advancement of future leave credits may be allowed only in extreme emergencies, subject to: written request, and approval by the President.

Leave Coordination & “Buddy System”

To ensure continuous office operations, employees with overlapping or support-critical roles (e.g., Admin, Accounting, Payroll) are required to coordinate their leave schedules with their designated departmental “buddy.”

Physical Presence Requirement

• At least one employee must be physically present in the department at all times to support operational, financial, and logistical needs.
• Leave or WFH requests that result in zero (0) physical presence in a department shall be automatically denied.

Priority Rule

If scheduling conflicts arise:

• Priority shall be given to the employee who filed first, or
• the employee with a verified emergency.

Joint Liability

Failure to coordinate resulting in an unattended department shall result in:

• the shift being tagged as Unauthorized Absence (No Pay) for all involved employees, and
• disciplinary action for Neglect of Duty.

Application to WFH

These coordination rules apply equally to Work-From-Home arrangements. WFH requests shall be denied if they leave the physical office unattended, and joint liability applies in cases of uncoordinated remote work.

Prohibition on WFH as a Substitute for Exhausted Leave Credits

Work-From-Home (WFH) arrangements shall not be used as a substitute for leave, undertime, or Leave Without Pay (LWOP) when an employee’s leave credits are insufficient or exhausted.

Policy Guidelines

• Employees with insufficient or exhausted leave credits (including fractional balances such as 0.5 day) are not permitted to file WFH for the purpose of avoiding salary deductions.
• WFH is granted solely based on operational necessity and job suitability, not as an alternative to leave or as a compensation mechanism.
• Filing WFH immediately following, preceding, or in place of a leave day due to insufficient credits may be subject to review and validation by Management.

Validation of Actual Work Performed

• Management reserves the right to verify actual work output, availability, and real-time participation during any WFH day.
• Failure to demonstrate: active engagement, measurable deliverables, or reasonable responsiveness during the shift shall result in the day being reclassified as Undertime or Leave Without Pay (LWOP).

Abuse and Misrepresentation

• Any attempt to misrepresent WFH status to obtain paid time without actual work performed shall be treated as: Willful Misrepresentation, and Abuse of Company Benefits, which may result in disciplinary action, including revocation of WFH privileges or further sanctions under the Code of Discipline.

Employee Responsibility

Employees are expected to manage their leave credits responsibly and plan absences accordingly.

WFH privileges are based on trust and accountability; misuse of this privilege undermines operational integrity and will not be tolerated.