CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR

1. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR Basic Labor Orientation Retail & Service Establishments

2. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR Applicable Labor Laws & Standards for Retail/Service Establishments Minimum Wage P213.50 (16 or more employees) P199.50 (less than 16 employees) Wage Order RB III-10 (August 20, 2004) +P15.00* COLA *To be integrated into the basic wage by August 20, 2005 Wage Order RB III-11 (June 16, 2005) +P20.00 COLA Definition of Retail Establishment: Principally engaged in the sale of goods to end users for personal or household use. A retail establishment that regularly engage in wholesale activities loses its retail character. Definition of Service Establishment: Principally engaged to in the sale of services in individuals for their own or household use and is generally recognized as such. Ex. Gas stations, barber shops, parlors, restaurants, gift shops, etc.

3. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR Possible Exemption from Latest Minimum Wage Order Wage Order No. RB III-11 Sec. 9. EXEMPTION. Upon application with and as determined by the Board, based on documents and other requirements in accordance with the applicable rules and regulations issued by the Commission, the following may be exempt from the applicability of this Wage Order: Retail and service establishments not employing more than 10 workers Distressed establishments, as defined in the NWPC Guidelines No. 01 Series of 1996 Procedure for filing of exemption (Refer to Implementing Guidelines)

4. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR Possible Exemptions from Basic Statutory Monetary Benefits Holiday Pay (Article 94) Retail and service establishments regularly employing less than 10 workers Premium Pay Workers paid by result, piece rate, takay, pakiao or task basis and other non-time work; Field personnel whose actual hours of work in the field cannot be determined with reasonable certainty Night Shift Differential (Article 86) Retail service establishments regularly employing not more than 5 workers Service Incentive Leave (Article 95) Those employed in establishments regularly employing less than 10 employees 13th month pay Employers of those who are paid on purely commission, boundary, or task basis, and those who are paid a fixed amount for performing specific work, irrespective of the time consumed in the performance thereof…xxx

5. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR • HOLIDAY & PREMIUM PAY BENEFITS • Amount of Legal Holiday Pay • If un-worked = 100% of basic pay • If worked = additional 100% to the basic pay • Overtime work during a legal holiday = 260% of basic hourly rate Amount of Special Holiday or Rest Day Pay • If un-worked = NO PAY • If worked = additional 30% to the basic pay • If on a special day which is also a rest day = additional 50% to the basic pay • Overtime work during a legal holiday = 130% of basic hourly rate Amount of Overtime Pay • Additional 25% in excess of 8 hours work on regular days • Additional 30% in excess of 8 hours work on holidays, rest days & special days Amount of Night Differential Pay • Additional 10% on hourly rate for work between 10:00PM to 6:00AM

6. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR List of Holidays National Legal Holidays National Special Holidays * For province of Pampanga only

7. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR Employment of Minors RA 7610 AN ACT PROVIDING FOR STRONGER DETERRENCE AND SPECIAL PROTECTION AGAINST CHILD ABUSE, EXPLOITATION AND DISCRIMINATION, AND FOR OTHER PURPOSES. (a) "Children" refers to person below eighteen (18) years of age or those over but are unable to fully take care of themselves or protect themselves from abuse, neglect, cruelty, exploitation or discrimination because of a physical or mental disability or condition; RA 7658 AN ACT PROHIBITING THE EMPLOYMENT OF CHILDREN BELOW 15 YEARS OF AGE IN PUBLIC AND PRIVATE UNDERTAKINGS, AMENDING FOR THIS PURPOSE SECTION 12, ARTICLE VIII OF R. A. 7610. "Sec. 12. Employment of Children. — Children below fifteen (15) years of age shall not be employed except:  (1)  When a child works directly under the sole responsibility of his parents or legal guardian and where only members of the employer's family are employed: Provided, however, That his employment neither endangers his life, safety, health and morals, nor impairs his normal development; Provided, further, That the parent or legal guardian shall provide the said minor child with the prescribed primary and/or secondary education…xxx

8. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR DEPARTMENT OF LABOR AND EMPLOYMENTDEPARTMENT ORDER NO. 4 (Series of 1999) SECTION 2. Policy. (a) The employment of a person below eighteen (18) years of age in an undertaking which is hazardous or deleterious in nature as identified in this Guidelines shall be prohibited. (b) The employment of children below fifteen (15) years of age in any undertakings is likewise prohibited, except only in employment that would not endanger their life, safety, health and morals, or impair their normal development, and in any event subject to the requirements of Republic Act No. 7658. SECTION 3. Coverage. - The following work and activities are hereby declared hazardous to persons below 18 years of age without prejudice to Section 14, Article VIII of Republic Act No. 7610; to DOLE Memorandum Circular No. 2, Series of 1998 (Technical Guidelines for Classifying Hazardous and Non-Hazardous Establishments, Workplaces and Work Processes) and to other work and activities that may subsequently be declared as such: 1. Work which exposes children to physical, psychological or sexual abuse, such as in: § lewd shows (stripteasers, burlesque dancers, and the like) § cabarets § bars (KTV, karaoke bars) § dance halls § bath houses and massage clinics § escort service § gambling halls and places …xxx

9. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR • CSD-IRU Policies & Procedures Report on Employment (monthly or whenever there is a change in employment) • Labor Standards Audit / Ocular Visit (Annual) (before expiration of PTO) • DOLE-CDC General Labor Standards Inspection (Annual) • (Establishments with less than 10 workers to be given orientation / technical support instead of inspection per DO 57.04) • Annual Surveys • Employment Generation Survey • Salary Structure Survey • Manpower & Training Needs Survey • Service & Performance Survey

10. CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR CSD-IRU Services Labor Education Seminar / Basic Labor Orientation Labor & IR / HR Advisory & Consultation Complaints Documentation & Grievance Desk Conciliation and Preventive Mediation Training & Organizational Development Support Labor-Management / Industrial Cooperation Support *Contractor / Service Accreditation (in process)

11. Customer Service Department INDUSTRIAL RELATIONS UNIT CONTACT INFORMATION Franco A.L. Madlangbayan (Manager, CSD) Ervyn Rivera (Asst. Manager – Industrial Relations) Eduardo Pinlac, Jr. (Sr. Labor Relations Officer) Ma. Rose Santos (Sr. Labor Standards Officer) Office address: Clark Development Corporation 2nd Floor, Bldg. 2127, C.P. Garcia Ave. Clark Special Economic Zone, Pampanga Tel Nos. (045)599-2045, 599-9000 locals 923 / 204 Telefax (045)599-9000 local 204 E-mail: ErvynRivera@clark.com.ph EduardoPinlac@clark.com.ph CUSTOMER SERVICE DEPARTMENT Industrial Relations Unit LABOR EDUCATION SEMINAR

12. Maraming Salamat Po.