This is an internal HR governance document for Kaizen Executive Resources Management Corp. and its client Peich (Lunarx). It establishes the statutory attendance, performance and corrective action policy for employees under the Labor Code of the Philippines and DOLE Department Order No. 147-15. The document is addressed to company management and staff who need to understand the legal due process…
This is an internal HR governance document for Kaizen Executive Resources Management Corp. and its client Peich (Lunarx). It establishes the statutory attendance, performance and corrective action policy for employees under the Labor Code of the Philippines and DOLE Department Order No. 147-15. The document is addressed to company management and staff who need to understand the legal due process requirements for disciplinary actions.
The policy begins by repealing previous operational practices such as automatic summary suspensions or immediate terminations without a written Notice to Explain. It introduces the Twin-Notice Rule and outlines the statutory due process workflow in two steps: issuance of a Notice to Explain within 24-48 hours of infraction detection, followed by an administrative hearing or conference when needed. Preventive suspension rules are also defined.
The document distinguishes between gross negligence and habitual negligence under Article 297(b) of the Labor Code, explaining that valid dismissal requires both conditions unless a single incident causes severe operational collapse. Ordinary negligence and first-time lapses are handled through progressive discipline with written warnings and retraining. Standardized attendance rules cover AWOL, abandonment of work, and critical delivery-day absences.
A corrective action matrix provides specific penalties for each offense category across four offense levels, including unexcused absence, gross and habitual neglect, insubordination, breach of trust, and abandonment of work. The matrix shows progressive escalation from written warnings through suspensions to termination, with a 12-month reset period. Performance quota management is also addressed, including legal requirements for termination due to quota failure and the Performance Improvement…
The final sections include a summary in Filipino covering due process rights, AWOL rules, report submission requirements, and performance quota procedures. The document concludes with institutional governance sign-off pages for Kaizen management, Peich (Lunarx) authorized officials, and employee acknowledgment of receipt and understanding.