Objectives:

To establish reasonable and necessary controls to ensure adequate attendance, regulate work time and to
maximize business and production needs

Scope:
This policy applies to all employees of Flexisource IT and its associated entities.

Key Guidelines:
To ensure adequate staffing, positive employee morale, and to meet expected productivity standards
throughout the organization, and employees will be held accountable for adhering to their workplace schedule

Provision:
All employees are expected to report to work on time every day that they are scheduled to work and to maintain
a satisfactory record of attendance. If an employee is unable to report to work, they are expected to directly
notify their supervisor at least thirty (30) minutes before their start time or the soonest possible time.

Immediate superior has discretion to evaluate extraordinary circumstances of a tardiness, absence or failure to
clock-in or clock-out and determine whether or not to count the incident as an exception. Human Resources will
be available to advise supervisors regarding the evaluation of extenuating circumstances.

The immediate superior is responsible for communicating work schedules to subordinates. Employees are
expected to be at their work station in a fit condition and ready to work at starting time.

In the event of absence or tardiness from an assigned work schedule, the employee is required to report the
absence to the immediate superior. When reporting absence, the employee must directly inform his or her
supervisor, or other designated individual as specified by management. In the event the employee cannot reach
a supervisor or manager, the absence should be reported to the Human Resource Department. The employee
must inform at least thirty (30) minutes of scheduled start time or the soonest possible time. It is the
responsibility of the supervisor to inform the Human Resource for any violation of attendance (e.g., Tardiness,
absences, notification, leave).

The company reserves the right to require an employee to submit a physician’s certificate in the event of
repeated absences for the medical reasons or in the event of medical absences of two or more days.

An employee’s absence will be considered excused if covered by policy and the employee provides proper and
timely notification deemed satisfactory to the supervisor or manager. Timely notification means calling in on the
day of absence in case of emergency or sick leave or providing advance notice for absences which can be
anticipated. Anticipated leave is defined as vacation leave.

An employee’s absence will be deemed unexcused when an employee fails to inform, gives a late notice, fails to
give advance notice for an absence which could be anticipated, exceeds the number of length of absences (leave
without pay)/ exceeds granted leave by the Supervisor or Manager. Unexcused absentees are subject to
corrective discipline or termination as defined in policies on code of discipline.

Habitual absenteeism is defined as three or more instances of unexcused absence in a calendar month or a
pattern of absences (Sick leave) within a three-month period. Such habitual absenteeism is subject to
corrective discipline.

Excessive absences, or lateness and excessive patterns of absences or lateness may lead to disciplinary action,
up to and including termination. In the event an employee is absent for one (1) day up to four (4) days without
prior notice or approval or notification, such absence is viewed as absence without official leave and will be
subject for disciplinary procedure. Absences for more than four (4) consecutive days without any communication
with the supervisor or Human Resource, the company will consider it as job abandonment and have voluntarily
resigned your position. Only reasonable explanation (e.g., Medical Condition / Major Accident) will be accepted
by the management to be re-employ.

Excessive tardiness shall be subjected to corrective discipline or termination. Excessive tardiness is defined as
five (5) or more instance of tardiness in a calendar month and is subject to corrective discipline including
termination.

An employee’s request to leave work early may be considered by the supervisor or manager. Approval of such
absences / undertime should be based upon the urgency of the reason for absence / undertime and department
staffing needs.

Lunch Period

The scheduling of lunch/meal period will be determined and assigned by the immediate head. It may vary
depending on the needs of each department.

Employees may not “work through lunch period” in order to arrive late; leave early; or to work extra time, unless
authorized in advance by the immediate head. It is an employee’s responsibility to take fully allotted time for lunch
period and not to perform any work unless specifically directed to do so due to business operations. In that event
lunch period will be either be rescheduled or be compensated for the time that you worked. Employees are
strongly encouraged to leave their work areas during this period to avoid performing or the appearance of
performing any work during a regularly scheduled lunch period.

Failure to adhere to the same without prior approval by the immediate head may result in corrective action.

Rest Breaks

FSTi provides rest breaks in accordance with the law. The scheduling of any rest breaks will be determined and
assigned by the immediate head.

Rest breaks running between five (5) to fifteen (15) minutes shall be considered as compensable working time.

Rest breaks can be combined but cannot be substituted for lunch periods to receive payment for a lunch period.
Employees cannot extend their work schedules to justify taking longer rest breaks; request additional time off,
longer lunch periods; or extra pay in exchange for foregoing a rest break.

Absent & Tardiness:

An employee is deemed absent when he / she is unavailable for work as assigned/scheduled and such time off
was not scheduled / approved in advance as required by the company. Likewise, working for less than two (2)
hours within the day is considered as absent for the whole day (Subject to the contract the employee agreed
on).

Grace Period:
Except for those who have already a flexible work schedule and those, from the nature of their work, attendance
is strictly adhere, a grace period of Ten (10) minutes only is given to all employee.

Under special circumstances, when the management declares a WFH (if applicable to employees) for reasons
like Mass Strike, Typhoon, floods across Metro Manila, for purposes of Company Policies (and not for payroll
purposes), company will allow thirty minutes (30) grace period so employee will not be considered late (for
Sanction – but considered late for payroll purpose).
Abandonment of employment:
1. Where an employee is absent from work for a continuous period of five (5) working days without advice to the
immediate head or Human Resource, or without apparent good cause, will be tag as “Job Abandonment"; the
company, on the next day will send two (2) to three (3) certified letter of termination, explaining the company’s
position and asking the employee to contact his/her superior if there are circumstances that could potentially
change the employer’s action (e.g., medical condition / major accident); one to the employee's last known
permanent mailing address asking the employee to inform the Company of the reasons for the unauthorized
absence from work. If the employee's last known current address is different from his / her last known
permanent address, another copy of the letter will be sent to the last known current address of the employee
bearing the same letter / reason. The last letter will be to the employee's last known email addresses. Prior with
this, the supervisor should attempt to contact the employee on the first and succeeding day of his/her absence.
Human Resource will attempt to contact the said employee and his / her emergency contact person starting on
the fourth-day the employee is absent up to five-day.

If the employee has been contacted, he/she will need to submit a letter of explanations within five (5) calendar
days why no disciplinary action should be impose, failure to do will waive his/her right to be heard and appeal for
final judgement; likewise, if there is no restraining condition on the part of the employee, he/she must present
him/herself to the office of human resource on the following day after the contact was made; if the employee
can't make it, employee may send a representative.

Nonetheless, he/she still needs to submit his/her explanation (Signed) thru postal mail and thru the official email
of human resource (hr_flexisourceit.com.au); non-signed letter will not be honor. Company certified letter
(modify-employee was contacted) will still be mailed and emailed for documentation purposes.

2. The company may send a certified letter to the employee's last known mailing and email address before the
expiration of five days of the initial unauthorized absence if the company suspects that the employee has
abandoned his/her employment for good.

3. If there is no response to the company letter within ten (10) working days after the letters were sent (thru LBC
or other fast post mail), the employee will be terminated, and no appeal will be entertained. This will take effect
retroactively from the close of business on the last day the employee actually attended work, was on approved
leave or was absent from work.

4. If the employee does not establish, to the satisfaction of the management, that he / she was absent for
reasonable cause or if the employee did not respond within the specified days, the management may terminate
the employment.

Half Day
An employee will be considered to report to work half day under the following conditions (Subject to employee's
contract):

1. If the employee report to work after 4 hours pass their regular schedules – will still have 1-hour break.
2. If the employee report to work after 5 hours pass their regular schedules (No 1-hour break anymore)
3. If the employee works for only 4 hours (excluding overtime).

*If the employee will log-in / log-out one (1) minute to fifty-nine (59) before the said rule, it will still be considered
half day, otherwise, it will considered late / undertime (Tardiness).

Overtime
As provision under the Labor Code of the Philippines, Article 87, states “that an overtime work is a work
performed beyond eight (8) hours a day provided that the employee is paid an additional compensation
equivalent to his / her regular wage plus at least twenty-five percent (25%) thereof”. Likewise, working on rest
day or holiday is considered overtime with higher premium pays as prescribe by law.
Overtime work shall only be allowed on exceptional cases to accomplish temporary increases in the workload
and fulfill urgent job requirements. Accordingly, all concerned employees must accomplish the required output
within the overtime hours rendered and must comply with all policies and guidelines covering such work.

An employee may avail of the overtime work under the following conditions:
1. When there is an urgent work to be performed (To be determined by his / her supervisor or manager.
2. Where the completion or continuation of the work started before the eighth hour is necessary to prevent
serious obstruction or prejudice to the business or operations of the employer.
3. When advised by the client.
4. Other reason provided by law and other company polices.

Overtime is pre-authorized, should be at least sixty (60) minutes worked in excess of the eight hours per day.
Code Description First 8 Hours Excess of 8 Hours
REG Regular Overtime --- 1.25
SPCL Special Overtime/Sunday OT Rest Day OT 1.30 1.69
SPHP Special Holiday Pay 0.30 1.69
RHOP Regular Holiday Pay 1.00 2.60
RHOT Regular/Legal Holiday Overtime 2.00 2.60
ND Night Differential (10PM to 6AM) 0.10 ---
RDHOT OT on Rest Day falls on Regular Holiday 2.60 3.38
RDSPCL OT on Rest Day falls on Special Holiday 1.50 1.95

Provisions:
• Employee need to seek prior approval before rendering overtime work at least an hour prior in engaging in
overtime work. Employee must notify the immediate superior that he / she must perform an overtime work for
a specific valid reason.

• The immediate superior will decide if the overtime is in fact necessary. The immediate superior then will seek
the approval of the client first then the management (Country Manager) for the final approval of the overtime
the employee requested.

• Management will then decide whether to approve the request or reject it (if client approved it first).
Management have the prerogative to decide for how many hours the employee may render an overtime work
or to let it an open hour (depending on the necessity of the work to be perform and depending on the approved
hours by the client).

• The immediate immediate superior will be accountable for the output of their direct report who will render
overtime. The immediate immediate superior shall also ensure the accuracy of information filed in the Overtime
Authorization Form and that the actual overtime hours are correctly reflected. Any unauthorized changes in the
form and incorrect excess hours reflected in the employee’s attendance shall be their accountability.

• There would be two copies of overtime form that will be submitted by the employee who renders OT, one for
HR and the other to their respective immediate superior. This will be used as a reference to monitor the actual
time-in and time-out of all personnel rendering overtime work. This would also serve as a copy in case there
would be any dispute with the total number of hours’ work rendered by the employee with payroll.

• Employees required to render overtime work shall observe punctuality. In view of this, all supervisors /
managers shall be responsible in validating and certifying the actual OT hours rendered. The minimum number
of minutes that an employee can charge overtime pay is 60 minutes. Anything lower than 60 minutes may not
be charged as overtime.
• One hour will be deducted to the overtime rendered by the employee in case the overtime exceeds four hours.
This is for the employee to be force to take breaks (e.g., Breakfast / lunch / dinner) and such he / she will not be
too exhaust in continuing his/ her work.

• Under in no circumstance will an employee with tardiness (late or undertime) on any particular day will be
allowed to offset the time of tardiness by rendering overtime work within the day or any particular day. It shall
likewise be automatically deducted as tardiness unless it has prior approval from the manager. Exemption to this
guideline shall be reported immediately to Human Resource for proper adjustment with prior approval from the
management.

• Managers, considered overtime exempt, are not entitled to overtime pay. As professionals with a higher level
of accountability, they are expected to give the time and energy necessary to fulfill the requirements of their
respective positions and are, therefore, not compensated for work outside the normal eight-hour schedule.

• Managers who will render overtime work for official business, upon the approval of the management, in place
of overtime pay, are entitled to receive an allowance for hours rendered beyond the regular eight hours work
schedule which is equivalent to Php. 100.00 for every two (2) hours rendered.

• In no instance that an overtime work shall exceed eight (8) working hours.

Undertime:
No undertime will be allowed without the approval of the immediate superior. Undertime without prior approval
shall merit NTE. Undertime should be notified at least two (2) hours before the undertime (if not emergency).

Immediate superior should then notify the client and the management that the employee will be making
undertime that day.

Official Business
Employee who will need to go out of office for official business must have prior approval from the immediate
superior first then the immediate superior shall then request for approval from the management.

No employee shall be allowed to go on Official business without the prior approval indicating the time and
location of the particular task to do outside the office.

Offset:
As general rule and in accordance with the labor law of the Philippines in Article 88 which states that, “Undertime
not offset by overtime. Undertime work on any particular day shall not be offset by overtime work on any other
day. Permission given to the employee to go on leave on some other day of the week shall not exempt the
employer from paying the additional compensation required in this Chapter”.

Night Shift:
Under Article 86 of the labor code of the Philippines, “Every employee shall be paid a night shift differential of
not less than ten percent (10%) of his/her regular wage for each hour of work performed between ten o’clock in
the evening and six o’clock in the morning”.

This is regardless of work schedules and type of work to be perform, unless otherwise stated in the contract that
night shift differential pay is already included in employees’ monthly basic pay.

Employees will be paid an additional premium pay as required by law on top of their basic pay, and on top and
additional premium pay of overtime work (in case employee is in overtime work during the said hours).

Tardiness:
An employee is deemed to have committed tardiness under the following conditions:
1. Fails to report for work at the assigned/scheduled work time (for a maximum of two and a half hours, otherwise
will be considered half day).

2. Leaves work prior to the end of assigned/scheduled work time without prior supervisory approval and with
leave credits still available (Should not exceed two and a half hours ahead of scheduled time off, otherwise it will
be considered half day).

3. Takes an extended meal or break period without approval

Grace Period:
A grace period will be given only on instances where:
1. There is a strong typhoon
2. The management activates WFH
A maximum of 30 minutes grace period will be given.

Time Clocks & Failure to Clock in / out:

Employees who are required to go to the office are required to follow established guidelines for recording their
actual hours worked. A missed clock in/out is a violation of this policy and includes:
• Failure to clock in/out on their designated time clock (e.g. biometrics / logbook) at the beginning and/or end
of their assigned shift;
• Failure to accurately and timely report time worked.
• Clocking in/out early (or late) of assigned shift without prior approval.

Working from home

The company gives its consent for a work at home for employees who cannot come to office but needs to do
urgent matters at work in such a way that would save productivity and cost effectiveness.

General

• Work from home is encouraged for departments to use when the results are beneficial in improving
productivity and / or cost effectiveness of the employee rather than being tag absent.
• Work at home cannot be avail anytime nor every time the employee feels, instead employee needs to get the
approval of the supervisor. The employee needs to inform their superior including the HR at least a day before
availing of the work from home. It can be avail in the day itself provided that there is a good reason for it (e.g.
extended work hour of at least 7 hours or working beyond 12 midnight, flood, stay at home cases such as taking
care of sick family member). Employee requiring outside activity such as programs will only have a maximum of
two hours including the travel to be allowed work from home provided that before the employee go outside an
after the he /she return home to work again, he / she must email the supervisor & HR once each time. There will
be “30” work from home to be use by all employee regardless of the status in the company.
• A maximum of two employees in the same department can avail of it (the superior is the responsible person
in making sure it is being followed) but there should be at least one employee to do the work at the office,
otherwise, one or none can avail of it.
• Work at home can only be given with proper justification / valid reason why employees cannot come to the
office to perform his / her duties and responsibilities. Reasons such as sickness or need something to attend to
is invalid. Flood and recuperating, family member is sick or doing night duties in the office that are beyond 12
midnight (11PM is subject for approval) might be a possible reason but still subject for approval. Submission of
proof of documents might be require depending on the reason the employee will give.
•Employees should file their work from home, stating why they cannot attend the office.
• Work from home can be avail twice a month only and for a maximum of three consecutive days and upon the
discretion of the approving manager / supervisor. Prolong work from home can be given provided there is a good
reason for it. The management reserves the right to refuse if it is in the best interest of the company.
• An employee who have already availed all of his / her work from home but is needed to do work while cannot
attend the office may be allow to do work from home given that the work that the employee will do is vital in
the operations of the company.
• Employees who does not have valid reason to do work from home, or was in leave and he or she is required to
do some work while outside office is only subject to offset rules for a maximum of 4 hours and depending how
long the work he / she had done but only and only if it is very necessarily that the employee does a work from
home and that not doing so might compromise the integrity of the company or its processes.
Requirements: All these are required.

• Employee must have a strong internet connection.

• Employee must have his / her own laptop (if company laptop was not with the employee)
• Employee must have an app that connect the line in the office to his / her mobile phone (So all people can
communicate with the employee (other staff, staff from AU and Clients) This is only applicable to employees
who are dealing with external customer since they are expected to receive calls from these customers,
employees dealing with internal customer / employee is not required but must use slack and be active in slack.
• Approved form from the superior (Stating why he / she cannot come to work)

Monitoring work at home participants

• Department Managers / supervisors are responsible for defining the means of monitoring each work at home
position deployed in the department.

Other condition

• Employee availing work from home should email the HR and the superior of the time in and time off.

•Employee must send an email to the superior and HR at 12pm AEST and 3pm AEST, failure to do so might
invalidate the Work from home (12pm invalidate the morning shift and 3pm invalidate the afternoon shift). It will
be the responsibility of the employee to send the email, no need for the supervisor or the HR to remind.

• All email sent by the employee to the supervisor and the HR should be in the proper format, the same when
sending email to customers. No email should be made in the mobile phone.

• The management / manager / supervisor may require or ask the employee to come to the office even after the
approval particularly when the situation calls for it. The employee should be available any time when the needs
arise that he / she require to come to the office immediately.

Flexible Work / Work from home:

As indicated in employee's contract / approved by the Country Manager.

Work from home guidelines:

- It is not an entitlement and is always subject for the approval of the immediate head (which the are
subjected for the following guidelines):
Bad weather
Flooded areas on way to work
Mass action / Civil disturbance
 Mild illness (to avoid spreading of illness
(Generally, employees with illness is not permitted to work unless urgent matter require and
employee is willing to do work from home)
Health issue if not feasible to work in the office
- All necessary equipment and data are in the hand / reach of the employee
- Strong internet connection
- Log in and log out should be emailed to hr@flexisourceit.com.au and to their immediate head’s email
with the following template:
Subject: Log in DD/MM/YY
Black body message is fine as long as all the needed detail is in the subject matter
- Log in and log out is based on the actual the email is sent (Time stamped)
- Daily status report is mandatory
- Employee should send email every two hours about status of the work both to HR and immediate head.

Work from home will not be considered for the following reason:
- Sickness
- Going outside of employee’s house.

Critical Work Days:

Critical work days are observed to make sure that an employee does not in any way go over the allotted
scheduled leaves/time off.

AII critical work days are properly communicated by the management ahead of time and are as follows:
• Before, During and After Payday
• Before and After Rest day
• Before and After a Scheduled and Approved Leave/s
• Before and After Declared Philippine Holiday/s / Swap holidays

The employee who fails to report for work on the above critical work days will be endorsed to Human Resource
for proper disciplinary action, if warranted. If the absence is due to sickness or emergency matters, the burden
of proof will lie to the employee and subject to the rules and procedures of the specific absence (e.g., Sick leave,
emergency leave).

Leave Without Pay (LWOP):

The leave without pay can only commence if the employee has no paid leaves or was in violation of company’s
leave notice rule.

Probationary employees are only allowed to have leave without pay of six (6) days. By management prerogative
and upon informing the superior and Human Resource (and approval by the client) and Country Manager, for at
least Twenty-Eight (28) days prior to the date of leave exceeding the six days allowed, the employee may be
allowed another three (3) days of leave without pay (for a maximum of ten days) during the probationary period
but employee may be subject for disciplinary sanction. Exceeding the maximum allowable leave without pay by
the probationary employee may subject him / her for termination procedure; a five (5) working days-notice of
termination will be serve.

Exception is when the employee has already informed the Recruitment Team, or the Superior ahead before
hiring the candidate that he/she have planned leaves already that exceed the five (5) days rule.

For regular employees, in connection with the paid leaves, are only allowed to have a maximum allowable leave
without pay of five (5) days. Only Prolonged sickness and or hospitalization will the regular employee be given
consideration in exceeding the five-day rule, but in no instances that it will exceed ten (10) days of leave without
pay. Another exception is when the leave without pay is in consideration for, if the employee suffers a disease
which will require him / her long days of rest and the employee has no paid leaves left.

A regular employee who exceed the five-day rule may be subject for disciplinary action including termination.

Other Condition:
 The management / manager / supervisor may require or ask the employee to come to the office / require
to work even after the approval of plan leave particularly when the situation calls for it. Employee who
come to office / who work when required during his/her plan leave, leave credit will be prorated/ return.
 Plan leave can only be retracted once for the same leave and should be inform at least three (3) days
before the actual leave, otherwise the plan leave will still be deducted to the employee’s leave credit.
All retracted leaves are still subject to comply with the leave policy.

Ma. Michelle Arcenal

Country Manager

Repealing Clause:
All memoranda, rules and regulations or policies contrary or inconsistent with the provisions of this Policy are hereby repealed, amended, or
modified accordingly.

Review and Revision

Flexisource IT and its associated entities aims to review this document as required and reserves the right to rescind or amend this policy at
any time. V.1.0 May 3, 2018