HR Manual

HERO CONSTRUCTION AND DEVELOPMENT CORPORATION

Human Resources Policy and Procedure Manual

I. Introduction

The HERO Human Resources Policy and Procedure Manual provides the policies and procedures for managing and developing staff. It also provides guidelines HERO will use to administer these policies, with the correct procedure to follow. HERO will keep HR policies current and relevant. The general guidelines and the policies stated in this manual are subject to change at any time at the sole discretion of the management. From time to time, any change in the policy will be updated and informed accordingly.

Any suggestions, recommendations or feedback on the policies and procedures specified in this manual are welcome. These policies and procedures apply to all employees unless otherwise stated.

II. Recruitment

A.Recruitment Policy

Talent acquisition focuses on searching appropriate candidates for positions that require specific qualifications such as:

•          “Head” - Knowledge

•          “Heart” - Attitude

•          “Hand” - Skills / Habits

B.Responsibilities

The HR Manager is responsible for the competency and awareness aspects of the implementation and management of this procedure unless noted otherwise.

Managers and supervisors are responsible for the implementation of this procedure within the scope of their responsibilities and must ensure that:

•all staff under their control are competent to undertake their tasks

•each role affecting management system outcomes is recorded in the Designation page of the ERP company portal

C.Guidelines

1.Job Opening Advertising

•Job requirements shall be developed for each position in the company affecting quality and documented in the ERP company portal Designation. Each record of designation defines the desired minimum requirements for each position, including the criteria listed in this policy.

2.The minimum requirements, specifically for project-based workers:

•Bio-data

•Police Clearance/NBI

•Barangay Clearance

•Recommendation Letter from HCDC Worker (as required by the management)

3.Job openings shall be posted on the company's website, social media pages, and hiring platforms for wider reach.

D.Applicant Screening

1.All HCDC personnel are hired on the basis of their ability to perform acceptable work. This is done by comparing the candidate’s resume, experience, application, etc. against the job description requirements.

2.It is not mandatory that candidates meet all requirements if the company can provide subsequent training or other actions to bring the candidate up to the requirements eventually.

3.Applicants must secure, completely fill-in and file an Application for Employment form, available through different channels as of job posting announcement.

4.A Human Resources staff may initially conduct an interview when a prospective employee is found fit to the required qualifications for the position. Further selection process may be conducted after considerations are met. Upon evaluation, Human Resources staff then classifies an applicant for a position.

E.Induction/Orientation

HERO will make sure all new employees feel welcome and are ready to start work safely and competently.

Guidelines

1.New employees for the HCDC undergo employee orientation, which includes ISO 9001 training, and training on the Quality Policy. Orientation training shall be completed within 30 days of the employee’s start date. Orientation Training is added in the list of company-provided training. Orientation shall include discussing with the employee the relevance and importance of that person meeting customer and company QMS requirements, and how their work will affect quality objectives.

2.The conducted orientation must at least contain the following:

•Company Overview

•The HR Manual with the Standard Code of Conduct

•Construction safety and health policies and procedures, for site deployed personnel

3.A record of the completion of the orientation shall be maintained in the employee’s training file.

4.An onboarding process is required to be performed in the Employee Onboarding page on the company’s ERP Portal, with the appropriate Employee Onboarding Template.

III. Employment Types

Employment Classification

The following employment types are listed in the HCDC ERP Portal:

1.Probationary Employment

A newly hired employee is placed under probationary employment for a standard period of six (6) months. During this period, the employee’s performance will be assessed based on company standards and expectations. The company reserves the right to terminate a probationary employee at any time for valid reasons as stipulated in the Code of Conduct and in accordance with the Labor Code.

2.Regular or Permanent Employment

An employee who satisfactorily completes the probationary period shall be considered a regular employee. Employees hired directly as regular employees, particularly those in managerial positions, are immediately entitled to regular employment status. Regular employees are eligible for performance appraisals after one (1) year of continuous service, or earlier at the sole discretion of Management for meritorious reasons or when deemed necessary for the company’s best interest.

3.Temporary Employment

Temporary employment is granted to individuals hired for:

•Seasonal or occasional work within a limited period,

•Temporary replacement of a regular employee on leave, or

•Specific projects with a definite duration.

If a temporary employee’s status is converted to probationary employment, they must undergo the standard six (6)-month probationary period.

4.Fixed-Term Employment

Fixed-term employment is based on a predetermined contract duration. The employment relationship begins and ends on specific dates, as defined in the contract, and is not necessarily dependent on the nature of the job performed. Upon contract expiration, the employment relationship is automatically terminated without the need for notice.

5.Project-Based Employment

Project-based employment applies when an employee is hired to work on a specific project or undertaking. The duration of employment is tied to the scope of work and/or completion of the project. Once the project is completed, the employment contract automatically ends unless renewed or extended by Management.

6.Casual Employment

Casual employment applies to employees performing work that is not usually necessary or directly related to the company’s core business operations. Employees under this status must be informed of the temporary nature of their employment upon hiring.

•If a casual employee renders at least one (1) year of service, whether continuous or intermittent, they shall be considered a regular employee concerning the specific work they perform, provided that such work continues to exist.

7.Internship (On-the-Job Training - OJT)

Internship or On-the-Job Training (OJT) applies to students from a partner university with a signed Memorandum of Agreement (MOA) with HERO Construction and Development Corporation. Interns are required to complete a training period ranging from 240 to 600 working hours, as agreed upon by both the company and the partner university.

8.Legitimate Contracting and Outsourcing

Legitimate contracting and outsourcing occur when the company (the principal) engages a third-party contractor (the Service Provider) to perform specific work, services, or projects within a predetermined period.

•In this arrangement, the contractor employs and manages its own workforce.

•The principal does not establish an employer-employee relationship with the contractor’s workers.

•The services may be performed within or outside the company premises, depending on the contractual agreement.

IIII. Personnel Movement

A. Promotion

Promotion refers to the movement of an employee to a higher position or level with increased responsibilities. It is based on efficiency, education, experience, and seniority as determined by Management.

B. Lateral Transfer

A lateral transfer occurs when an employee moves from one position to another within the same job level and salary grade. Transfers may take place within or outside a department or even across subsidiary companies of HERO. Transfers may be initiated by either Management or the employee and are subject to company approval.

C. Suspension

Suspension is the temporary cessation of an employee’s duties, which may be imposed for disciplinary reasons or preventive measures.

•Punitive Suspension – A disciplinary action resulting in the temporary suspension of employment without pay for a specific period due to a violation of company policies, as stated in the HERO Standard Code of Conduct and Discipline.

•Preventive Suspension – A precautionary measure not exceeding 30 days, imposed when an employee’s continued presence in the workplace poses a risk to fellow employees or company property.

D. Separation from Employment

Separation from employment refers to the permanent termination of the employer-employee relationship. It may be initiated by:

•The employee (resignation or retirement)

•Management (termination for cause, retrenchment)

•Other reasons (disability, death, or circumstances beyond either party’s control)

Separation may occur due to, but not limited to, the following:

•Voluntary Resignation

•Unsatisfactory performance during the probationary period

•Termination for just or authorized cause

•Retrenchment (cost-cutting measures or redundancy)

•Retirement

•Permanent and total disability

•Death

Separation Pay

Separation pay shall be provided only in cases where required by law, specifically:

1.Retrenchment, Redundancy, or Closure of Business – Employees terminated due to cost-cutting measures, redundancy, or company closure not due to serious losses are entitled to separation pay equivalent to at least one (1) month salary per year of service, or as determined by labor laws.

2.Termination Due to Health Reasons – Employees who are permanently unable to perform their job due to total disability or a serious health condition certified by a company-appointed physician may be entitled to separation pay.

3.Other Cases Mandated by Law or Company Policy – If an employee is separated without just cause, they may be entitled to separation pay based on applicable labor laws or company policies.

Employees who voluntarily resign, are terminated for just cause, or abandon their job are not entitled to separation pay, except as otherwise required by law or contractual agreement.

E. Resignation

Employees are required to submit a written notice of resignation within the following periods:

•Office-based and regular employees – At least thirty (30) calendar days before the intended resignation date.

•Project-based and seasonal workers – At least seven (7) calendar days before the intended resignation date.

•

This notice period allows Management to arrange for a proper handover of duties and find a suitable replacement.

Last Pay and Waiver Quitclaim

Upon resignation, employees will receive their last pay in cash if they are no longer with the company on the regular pay period. Additionally, a waiver quitclaim will be presented for acknowledgment and signature. This document confirms the employee's receipt of final pay and acknowledges that they have no further claims against the company.

The waiver quitclaim includes but not limited to:

•Acknowledgment of the receipt of final pay and benefits.

•Agreement that all obligations between the employee and the company have been settled.

•Waiver any further claims, legal or otherwise, against the company.

HERO encouraged employees to review the quitclaim thoroughly before signing.

Exit interviews

To enhance our understanding of employee experiences and gather valuable feedback, all departing employees are encouraged to participate in exit interviews. This confidential process helps HERO to continuously improve its work environment and address any concerns raised during the employment tenure.

F. Abandonment of Employment

An employee is deemed to have abandoned their job when they:

1.Fail to report for work for an extended period without prior notice or valid reason.

2.Demonstrate intent to sever the employment relationship by ignoring company communication or failing to respond to return-to-work directives.

Before termination due to abandonment, the company shall observe due process, including the issuance of a Notice to Explain (NTE) and an opportunity for the employee to respond.

G. Absence Without Official Leave (AWOL)

An employee is on AWOL when they fail to report to work without prior approval or a justifiable reason. Unlike abandonment, AWOL does not immediately imply intent to resign.

If an employee on AWOL remains unresponsive and absent for a prolonged period, the company may consider it abandonment and initiate termination procedures following due process.

V. Employee Recognition Program

1. Performance Evaluation

At HERO, performance feedback is a continuous process. Only by knowing “where you stand” with respect to job performance will one be able to improve himself/herself.

Annual Performance Evaluation will be used to determine merit in an objectively and equitably manner. Likewise, this serves as a basis to assist employees in their professional development and growth in HERO.

The procedure allows the Immediate Supervisor to discuss his/her evaluation rating with the employee for coaching and counseling, making sure specific points for improvement are discussed.

The employee is encouraged to talk openly with his/her immediate supervisor as much as the purpose of this dialogue is open communication.

Performance appraisals are logged by each Immediate Supervisor at the HCDC ERP Portal based on prevailing criteria for each employee, set in the Appraisal Template.

2. Performance Award

Project-based employees will be given a Performance Award after a satisfactory performance evaluation. Other awards may be given to employees deemed suitable as determined by the Project Supervisor. Employee awards are given at the company's mid-year activity.

3. Service Award

This award is given to any employee who has served HERO for 5, 10, 15, 20 years in recognition of their valuable contribution to the organization.

*Note: Award shall be done during the Company's mid-year activity.

Guidelines for Service Awards

To qualify for the Service Award, an employee must meet the following eligibility criteria:

a.        Continuous Service

-Employees must have completed five (5) consecutive years of service to qualify for the first milestone award.

b.        Attendance Requirement

-Employees must have achieved at least 90% of the required or targeted manhours over the 5-year period, based on project/site attendance records.

c.        Employment Status

-The award is applicable only to regular and project-based employees who have continuous service with HERO.

-Employees on extended leave (without pay) for more than 3 months within a year may not be eligible for that service period.

d.        Good Standing

-Employees shall not have any pending administrative cases or records of grave misconduct during the 5-year period.

-Employees who resign or are terminated for cause before the awarding period will not be eligible.

e.        Computation of Service Years

-Service years are computed based on actual working days, excluding unpaid leaves and prolonged absences. Authorized leaves (e.g., maternity, sick leave) are included in the computation, provided they do not exceed the allowable absence limits as defined by company policy.

-Authorized leaves (maternity, sick leave, etc.) will be considered but must be within the allowed absence threshold.

VI. Compensation and Benefits

A. Computation of Estimated Equivalent Monthly Rate (EEMR)

For purposes of entitlement to minimum wages and allied benefits under existing laws and for BIR compensation reporting, the following computation may be used.

1. Monthly paid employees

•Monthly-paid employees are those who are paid every day of the month, including unworked rest days, special days, and regular holidays. Factor 365 days in a year is used in determining the equivalent monthly salary of monthly-paid employees.

EEMR = Applicable Daily Rate (ADR) × 365 ÷ 12 months

Where: 365 days/year =

297 ordinary working days

52 rest days

12 regular holidays

4 special days

2. Daily-paid employees

•Daily paid employees are those who are paid on the days they worked and on unworked regular holidays.

Case 1: For those who are required to work every day, including Sundays or rest days, special days, and regular holidays

EEMR = Applicable Daily Rate (ADR) × 393.80 ÷ 12 months

where 393.80 days/year =

297 ordinary working days

67.60 (52 rest days x 130%)

24 (12 regular holidays x 200%)

5.20 (4 special days x 130%)

Case 2: For those who do not work and are not considered paid on Sundays or rest days

EMR = Applicable Daily Rate (ADR) × 313 ÷ 12 months

where 313 days/year =

297 ordinary working days

12 regular holidays

4 special days

Case 3: For those who do not work and are not considered paid on Saturdays and Sundays or rest days

EEMR = Applicable Daily Rate (ADR) × 261 ÷ 12 months

where 261 days/year =

245 ordinary working days

12 regular holidays

4 special days

B. Minimum Wage Rate

Philippines' Minimum Wage is the lowest amount a worker can be legally paid for eight (8) hour work. HERO follows the minimum wage set in the Cebu province of Region VII.

1.Minimum Wage of workers paid by results

All workers paid by results shall receive not less than the prescribed minimum wage rate under the Regional Wage Order for normal working hour of 8 hours a day.

2.Minimum Wage of Interns

Wage of apprentices shall in no case be less than seventy-five (75%) percent of the applicable minimum wage rates. However, there may be no compensation for apprentices/interns:

•whose training on the job is required by a school or a training program curriculum, or

•as requisite for graduation or board examination.

C. Overtime Pay

Overtime pay refers to the additional compensation for work performed beyond eight (8) hours a day or beyond the arranged flexible working hours arrangement. The overtime rates vary according on the day the overtime is performed.

Overtime Rates (based on DOLE guidelines):

Ordinary working day: 125% of the hourly rate

Hourly Rate: ₱62.50

Overtime Pay Rate: 125% = ₱62.50 × 1.25 = ₱78.13 per hour

Example: 2 hours OT on a weekday

→ 2 × ₱78.13 = ₱156.26

Rest day or special non-working day: 130% of the hourly rate

Hourly Rate: ₱62.50

Overtime Pay Rate: 130% = ₱62.50 × 1.30 = ₱81.25 per hour

Example: 3 hours OT on a rest day

→ 3 × ₱81.25 = ₱243.75

Rest day falling on a special day (with OT): 169% of the hourly rate

Hourly Rate: ₱62.50

Overtime Pay Rate: 169% = ₱62.50 × 1.69 = ₱105.63 per hour

Example: 2 hours OT on a rest + special day

→ 2 × ₱105.63 = ₱211.26

Regular holiday: 200% of the daily rate for 8 hours; 260% for overtime

Regular Holiday Overtime (OT after 8 hrs = 260%)

Daily Rate: ₱500

Regular 8-hr Holiday Work: ₱500 × 2.00 = ₱1,000

Overtime Pay (after 8 hrs): ₱62.50 × 2.60 = ₱162.50 per hour

Example: Worked 10 hours on a regular holiday

→ 8 hrs = ₱1,000

→ 2 hrs OT = 2 × ₱162.50 = ₱325

→ Total: ₱1,325

Rest day falling on a regular holiday: 260% of the daily rate; 338% for overtime

Rest Day Falling on a Regular Holiday (OT rate: 338%)

Hourly Rate: ₱62.50

OT Pay Rate: 338% = ₱62.50 × 3.38 = ₱211.25 per hour

Example: 2 hours OT

→ 2 × ₱211.25 = ₱422.50

Note: Overtime must be pre-approved by the immediate supervisor or management.

D. Night Shift Differential

Night Shift Differential (NSD) refers to the additional ten percent (10%) of an employee's regular wage for each hour of work performed between 10:00 pm and 6:00 am.

Eligibility:

-Applies to rank-and-file employees who work during the night shift period (10:00 PM to 6:00 AM).

-Not applicable to managerial employees, field workers, or those with irregular working hours as per the provisions of the Labor Code.

Computation:

The Night Shift Differential Rate is computed as:

NSD Rate = Regular Hourly Rate × 1.10 (10% premium)

Example Calculation:

Regular Hourly Rate = ₱62.50

NSD Rate = ₱62.50 × 1.10 = ₱68.75 per hour

If an employee works for 5 hours between 10:00 PM and 3:00 AM:

5 hours × ₱68.75 = ₱343.75

E. Premium Pay

Premium pay refers to the additional compensation for work performed within eight (8) hours on non-workdays, such as rest days, and special days.

Computation:

The Premium Pay Rate is calculated as 130% of the employee's regular hourly rate.

Example Calculation:

Regular Hourly Rate = ₱62.50

Premium Pay Rate = ₱62.50 × 1.30 = ₱81.25 per hour

If an employee works 4 hours on a rest day or special non-working day:

4 hours × ₱81.25 = ₱325.00

F. Holiday Pay

Holiday pay refers to the payment of the regular daily wage for any unworked regular holiday. Employees covered by the Holiday Pay Rule is entitled to at least 100% of his/her minimum age rate even if he/she did not report for work, provided he/she is present or is on leave of absence with pay on the workday immediately preceding the holiday. Work performed on that day merits at least twice (200%) the daily wage of the employee.

Unless modified by law, order, or proclamation, the following are the 12 regular holidays. Refer to the latest Holiday List entered and updated regularly in the HCDC ERP Portal.

G. Payday Schedule

All employees are paid based on the cut-off dates for the salary/wages and the corresponding payday in Table 1. In the event that a regularly scheduled payday falls on a weekend or holiday, employees will receive their pay on workday after the weekend or holiday. Salaries of employees shall be paid directly to each employee's payroll bank account in the Company's designated depository bank. For new employees or those who have not been assigned with a payroll bank account will be paid in cash.

Schedule of cut-off for salaries/wages and payday

H. Benefits

1.Social Security System (SSS)

RA 1161, as amended by RA 8282 - The Social Security Program provides a package of benefit in the event of death, disability, sickness, maternity, and old age. Basically, the Social Security System (SSS) provides for a replacement of income lost on account of the aforementioned contingencies.

Employees’ Compensation Program (ECP)

The Employees’ Compensation Program (ECP) is a government program designed to provide a compensation package to public and private sector employees or their depends in the event of work-related sickness, injury, disability, or death.

Those who are enrolled with SSS are already covered with the ECP. The benefits under this program include:

Loss of income benefit

Medical benefits

Rehabilitation service

Carer’s allowance

Death and funeral benefits

2.Home Development Mutual Fund (Pag-ibig) Benefit

RA No. 9679 - The Home Development Fund otherwise known as Pag-Ibig Fund is a mutual provident savings system which offers the member the following benefits: a) Savings; b) Short Term Loan or Salary Loan; and c) Housing Program.

3.Philippine Health Insurance Corporation (PhilHealth) Benefit

RA 7875, as amended by RA 9241 - The National Health Insurance Program is a health insurance program for Social Security System (SSS) members and their dependent. A unified benefit package for all PhilHealth members varies whether they are on inpatient hospital care or on outpatient care.

4.13th-month pay

PD 851 - The thirteenth (13th) month pay shall be given to employees not later than December 25 provided they worked for at least one (1) month during a calendar year. The 13th month pay shall not be less than one-twelfth (1/ 12) of the total gross income earned by the employee in a calendar year.

HERO Internal Practice for 13 Month

In line with the company’s established practice, HERO Construction and Development Corporation releases fifty percent (50%) of the 13th-month pay in June of each year.

To be eligible for the mid-year release, an employee must have rendered at least six (6) months of continuous service with the Company as of June of the current year.

The remaining fifty percent (50%) of the 13th-month pay shall be released on or before December 24, in accordance with Presidential Decree No. 851.

5.Bereavement Assistance (BA)

HERO shows compassion to each of our employee's family member's death. This we can show through giving financial assistance to our affected Employees with a “bereavement assistance” with the following prerequisites:

Eligibility Criteria:

•The employee must have regular employment status and must have rendered at least six (6) months of continuous service at the time of bereavement.

•The bereavement must involve the death of a first-degree relative, defined as follows:

•For single employees: limited to the father and/or mother.

•For married employees: includes the spouse, children, and parents.

•The death must be verified and authenticated by the HR Department.

•The HR Department must be notified at least during the wake or within seven (7) days from the date of death.

•HR will initiate and process the bereavement assistance upon verification.

Assistance Amount:

The financial assistance provided shall depend on the employee’s employment classification:

•Foremen and Administrative Personnel:

PhP 10,000 per qualified deceased first-degree relative.

•Skilled Workers and All Site-Based Personnel:

PhP 5,000 per qualified deceased first-degree relative.

Note: “First-degree relatives” are defined as the employee’s spouse, children, and parents.

6.Employee Death “In the Line of Duty”

In the unfortunate event that an employee dies while performing work-related duties or as a result of work-related activities, HERO Construction and Development Corporation shall provide support to the employee’s surviving relatives through the following measures:

Hospitalization Expenses

•The company shall initially cover all hospital expenses incurred prior to the employee’s passing.

•These expenses will later be deducted from the insurance claim proceeds that are due to the employee’s designated beneficiaries.

Direct Financial Assistance

In addition to any insurance benefits, the company shall grant a one-time direct financial assistance to the employee’s surviving legal beneficiaries, based on the employee’s job classification at the time of death:

•Rank & File Employees: Php 30,000.00

•Supervisory Employees: Php 40,000.00

•Managerial Employees: Php 50,000.00

Definition of "In the Line of Duty":

This refers to incidents where the employee's death occurs during the performance of official work duties, while on site, in transit for work purposes, or in any company-sanctioned activity. Deaths that occur outside of work-related responsibilities or outside working hours without any connection to official tasks shall not be considered as "in the line of duty."

7.Healthcare Insurance (HMO)

Through an external provider from a suitable list of Healthcare Maintenance Organizations (HMO), selected employees may be covered under this program to provide healthcare insurance in times of dental consultation, medical consultation, emergencies and confinement.

VII. Leaves

As a reward for continuous and satisfactory service, the employee is allowed privileges upon fulfillment of certain eligibility requirements.

1.Service Incentive Leave (SIL)

Every qualified employee who has rendered at least six (6) months of service is entitled to Service Incentive Leave (SIL) of six (6) days with pay.

-SIL may be used for vacation or sick leave purposes.

-After completing the initial six (6) months of service, employees will begin accruing SIL at a rate of 0.5 day per month of continuous service.

-Unused SIL at the end of the year is commutable to its cash equivalent, based on the salary rate at the time of conversion, or may be rolled over to the following year at the employee’s option.

2.Maternity Leave (ML)

RA 1161, as amended by RA 11210 - Section 3. Grant of Maternity Leave. - All covered female workers in government and the private sector, including those in the informal economy, regardless of civil status or the legitimacy of her child, shall be granted one hundred five (105) days maternity leave with full pay and an option to extend for an additional thirty (30) days without pay; Provided, That in case the worker qualifies as a solo parent under Republic Act No. 8972 , or the “Solo Parents' Welfare Act”, the worker shall be granted an additional fifteen (15) days maternity leave with full pay.

Enjoyment of maternity leave cannot be deferred but should be availed of either before or after the actual period of delivery in a continuous and uninterrupted manner, not exceeding one hundred five (105) days, as the case may be.

Maternity leave shall be granted to female workers in every instance of pregnancy, miscarriage or emergency termination of pregnancy, regardless of frequency. Provided, that for cases of miscarriage or emergency termination of pregnancy, sixty (60) days maternity leave with full pay shall be granted

3.Paternity Leave (PL)

Republic Act No. 8187 - Paternity refers to the benefit granted to a married male employee allowing him not to report for work for seven (7) but continuous to earn the compensation thereof, on the condition that his spouse has delivered a child or suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in her period of recovery and/ or in the nursing of the newly-born child.

V111. Training & Seminars (TS)

Trainings and seminars relevant to each of the positions within the company, shall be provided based on the program set by each department or subsidiaries’ schedules. Construction site workers are also obliged to join the scheduled Toolbox Meetings, where short trainings are presented prior to daily work commencement.

Group and individual trainings and seminars such as BOSH, NC II and Red Cross are given only under Management’s discretion or as seen by supervisors and managers deemed necessary and appropriate.

Trainings and seminar may also require a corresponding “undertaking” or agreement with the company as it entails cost. The undertaking simply states that employee recipient of these company-paid continuing education shall reimburse the cost to the company if breach of the agreement happens.

VIIII. Code of Conduct

Policy of Employee Conduct

HERO promotes an environment that fosters maintain a high level of self-discipline among all employees. It recognizes that the ultimate responsibility for meeting acceptable standards of conduct and performance rests on each employee. HERO expects each employee to observe reasonable standards of conducts in the performance of his work, in this relationship with fellow employees and his dealings with the public. For this purpose, HERO establishes certain standards of conduct which are consistent with the firm’s philosophy and objectives, government policies and regulations which are necessary to promote harmonious and productive relationship among employees and with the public.

X. Code of Ethics

HERO employees should:

•Protect the firm’s interest by conducting business affairs in fairness, honesty, and in compliance with the law.

•Protect with zeal and caution confidential knowledge or data on products, business strategies, processes, systems or other important information during or even after employment with the company.

•Engage only in such private activities that are consistent with his responsibilities as an employee and are not detrimental to the interest of the company.

•Exercise utmost discretion in accepting personal favors or gifts from individual entities seeking or doing business with the company and refuse any gifts that might be considered bribery of any form.

•Utilize company property, funds, equipment, and time solely for the purpose required by the company.

•Seek clearance from Management prior to engaging outside work as required by the company.

•Accepts the responsibility to ensure that the Code of Ethics is being enforced at all times.

•Standards of Employee Conduct and Discipline

Standards of Employee Conduct and Discipline

1. Personal Conduct

HERO expects its employees to maintain a high standard of conduct and work performance to make sure the business maintains its good reputation with customers and suppliers. Good personal conduct contributes to a good work environment for all.

This involves all employees:

•          observing all policies and procedures

•          treating colleagues with courtesy and respect

•          treating customers and clients in a professional manner at times

•          working safely at all times

2. Visitors/Guest Reception

All visitors or guests, without exception, including employee's relatives, suppliers, and former employees of the Company, should be received only at the reception area.

3. Proper use of the Telephone

Being a service-oriented company, proper use of the telephone is very important. The following guidelines must be observed: When the telephone rings, the employee must answer it promptly and politely.

When the designated “answering employee” is not in his desk, the nearest employee must answer the telephone. He must offer assistance by taking the message and relaying it immediately.

4. Personal Calls/Transactions

The Company does not prohibit the use of the telephone for personal calls, but it is expected that this will not be abused. Personal calls should be kept to a minimum. If possible, these calls should be made during “off” periods.

5. Email Policy

•Email facilities are provided for formal business correspondence.

•Take care to maintain the confidentiality of sensitive information. If emails need to be preserved, they should be backed up and stored offsite.

•Limited private use of email is allowed if it doesn’t interfere with or distract from an employee’s work. However, management has the right to access incoming and outgoing email messages to check if an employee’s usage or involvement is excessive or inappropriate.

•All emails sent must include the approved business signature and disclaimer.

6. Internet Use policy

The internet is provided by HERO for business use. Limited private use is permitted if the private use does not interfere with a person’s work and that inappropriate sites are not accessed e.g. pornographic, gambling. Management has the right to access the system to check if private use is excessive or inappropriate. Failure to comply with these instructions is an offense and will be subject to appropriate investigation. In serious cases, the penalty for an offense, or repetition of an offense, may include dismissal. Staff needs to be aware that some forms of internet conduct may lead to criminal prosecution.

7. Good Housekeeping

At the end of the day's work, it is a good habit to keep all books, records and office supplies properly secure. Desks must be cleared and locked to ascertain that no confidential materials are left exposed. Moreover, important documents must be put inside the records cases at the end of each day. Computers must not be left on.

8. Use of Office Equipment, Supplies, and Facilities

Employees must observe discretion in the use of all company-owned equipment, office supplies, and facilities. This includes computers, printers, copiers, furniture, and shared office spaces. HERO is committed to efficient operations and the reduction of unnecessary consumption and wasteful practices.

To support this, employees must:

·Use equipment and supplies only for official company-related tasks, unless otherwise authorized by management.

·Avoid personal, commercial, or excessive use of company resources.

·Refrain from hoarding or unnecessarily stockpiling supplies.

·Practice waste reduction by printing only when necessary and using double-sided printing whenever possible.

·Reuse folders, envelopes, and papers for internal or draft purposes.

·Switch off all electrical devices, lights, and air-conditioning units when not in use.

·Report any equipment malfunction, damage, or maintenance needs to Admin or HR immediately.

·Maintain cleanliness and orderliness in their work areas and shared facilities.

Misuse or negligence in handling office property may result in disciplinary action, subject to the provisions of the Company’s Code of Conduct.

9. Solicitations and Donations

Solicitations and donations among employees unduly burden everyone because they are difficult to refuse especially if they come from co-employees. In exceptional cases, however, such as death of an immediate family member, an employee whose house got burned or any situation of such nature, donations/contributions may be requested but only upon the supervision of the HRD.

XI. Attendance Management

HERO expects that every employee will be regular and punctual in attendance. This means being in the office, ready to work, at their starting time each day. Absenteeism and tardiness place a burden on other employees and to the company.

It is therefore very important for each employee whether he is punching or not, to be in his office or workplace regularly and at the time designated in the work schedule.

If you are unable to report for work for any reason, notify your supervisor and HR personnel before the regular starting time either by speaking directly or sending text messages. If your reason is due to illness or emergency cases, it is imperative to submit a Doctor's Certificate.

A. Regular Shift Schedule

While regular workdays is from Mondays through Fridays from 8:00 AM to 5:00 PM, this schedule applies only to managerial positions at the Head Office. Those who are assigned outside the Head Office follows workdays that vary in accordance with the required Project Operation shift schedule as needed.

B. Meal Break

To assure that everyone is clear on starting times, and end times, for all employees, break times and lunch times are as follows:

Head Office

For Head Office employees rendering Overtime, you are given thirty (30) minutes Dinner Break from 7:00 pm to 7:30 pm.

Break Periods for Site-Based Employees

Site employees are entitled to the following standard breaks during regular workdays:

First Break: 10:00 AM – 10:15 AM

Lunch Break: 12:00 PM – 1:00 PM

Second Break: 3:00 PM – 3:15 PM

In cases where employees are authorized to render overtime, such work shall officially begin at 6:00 PM. A one-hour break from 5:00 PM to 6:00 PM shall be observed prior to the start of overtime. This hour shall also serve as the dinner break, ensuring that overtime work runs continuously without further interruptions.

C. Biometrics System

The Biometrics system is the official timekeeping reference of HERO Construction and Development Corporation. All employees must punch in/out using the biometric scanner.

•Employees with no recorded Time-In or Time-Out in the biometrics will be considered ABSENT.

•Tardiness of thirty (30) minutes or more is considered Half-Day.

•Newly hired employees will be enrolled in the Biometrics system by the HR representative or designated admin assistant

•Every payroll cut-off, HRD will extract and validate timekeeping data from the Biometrics system.

In addition to the biometrics, a Logbook will be maintained on-site for backup purposes and cross-verification, especially during field work or in instances of system malfunction.

In the event of biometric malfunction, employees or site admin assistants must notify HRD immediately.

D. Travel Itinerary

Employees unable to punch due to fieldwork must:

•Draft their travel itinerary on the Travel Request Page before leaving.

•This allows managers and HR to track personnel whereabouts.

Failure to submit this may result in incomplete attendance and impact reimbursements or project accountability.

Expense Reporting

Employees on field assignment must:

•Submit a daily expense breakdown for reimbursement or deduction from revolving funds.

•The report must be drafted in ERP next

https://www.hcdc.com.ph/app/employee-expense-breakdown?employee=EMP%2F0301

•Attach supporting receipts and supervisor approval.

Definition of “Revolving Fund”

A Revolving Fund is a pre-approved cash allocation issued to an employee to cover daily operational expenses such as fare, meals, or small purchases. It must be liquidated and replenished regularly through proper documentation. Any unliquidated amount is subject to deduction or recovery.

E. Absence/Leave Policy

Procedures in the Filing, Processing and Approval of Leave Application:

•Administrative employees are required to file their leave applications using the ERP Leave Application Portal, while site-based employees must accomplish the printed VL/SL leave form in duplicate copies. All leave applications, except for emergency or sick leaves, must be filed at least five (5) days in advance. Leaves extending for thirty (30) calendar days or more must be accompanied by a clearance from money and property accountabilities.

•The supervisor recommends the approval or disapproval of the application.

•The authorized official approves the application following the rules on delineation of functions/ delegation of authority.

•HRD processes the application, including certification as to leave balance.

•A copy of the processed application is released to the employee concerned every end of the month and the other one is retained for HRD file.

Excused Absence

Occurs when all the following condition are met:

a.The employee provides to his or her supervisor sufficient notice at least 24 hours in advanced of the absence and the absence request is approved in advance by the employee’s supervisor.

b.The employee has been sick or underwent an emergency, but should notify his or her supervisor no later than the scheduled starting time on the same day. If the employee is unable to call, he or her must have someone to make the call. Two consecutive days of absence due to sickness or injury require a medical certificate containing the details of the sickness and fitness for duty release.

For Admin/Office-based Employees, notification for emergency absence MUST be field by the employee at the company ERP portal https://hcdc.com.ph/desk#List/Leave%20Application/ prior to the next payroll cutoff. Advance leave request must be field prior to the absence.

Unexcused Absences

Not all forms of absences are excused. There are times when an employee may seek to take time off and be denied. When the time is taken anyway, the employee is subject to disciplinary action.

For example, failing to report to work and ensure that a supervisor is notified within a reasonable time frame may result in no pay for the day. It may also lead to a short suspension owing to the failure to comply with company policies. Essentially, any absences that is not covered under the policies and procedure of the employer may be classed as unexcused. This type of activity disrupts the day-to-day function of the business.

F. Tardiness and Early Departure

Employee are expected to report and return from scheduled breaks on time. If employees cannot report to work as scheduled, they must notify their supervisor no later than their regular starting time. This notification does not excuse the tardiness but simply notifies the supervisor that a schedule change may be necessary.

Employees who must leave work before the end of their scheduled shift must notify a supervisor/manager immediately.

Disciplinary Action

a.Absenteeism

Excessive absenteeism is defined as three (3) or more occurrences of unexcused absences in a 30-day period and will result in disciplinary action. Twenty (20) occurrences of unexcused absence in the calendar year are considered grounds for termination.

b.Tardiness

Tardiness of more than 15mins at each hour of work schedule will incur a rounded undertime of 1 hour.

c.Abandonment of Work (AWOL)

Abandonment of work occurs when an employee fails to show up as expected at work for three (3) consecutive days without notifying their supervisor. This constitutes a neglect of duty and a neglect of duty and a just cause for termination after due process.

XII. Suspension of Work Due to Weather Conditions

To ensure the safety and welfare of all employees, especially those assigned to field and site work, HERO Construction and Development Corporation has established the following policy on the suspension of work due to inclement weather conditions, particularly heavy rainfall.

A. Morning Work Suspension

If heavy rainfall occurs at least one (1) hour before the official morning work start time, morning work shall be suspended until 12:00 noon.

-Employees are not required to report to work during the suspended morning period unless otherwise notified.

-A company-wide announcement or advisory shall be issued by the Site Supervisor or Project Manager through the official communication channel (e.g., group chat, SMS, or call).

B. Afternoon Work Suspension

If heavy rainfall occurs at least one (1) hour before the start of the afternoon work session, afternoon work shall be suspended for the remainder of the day.

-For sites operating with split schedules or returning after lunch, this means that employees do not need to return to the site if an official suspension has been declared.

C. Determination and Communication of Work Suspension

The Site Engineer or Project Manager shall monitor weather conditions and make the decision based on actual rainfall intensity and site safety conditions.

Work suspension notices should be disseminated promptly through the designated communication platform.

D. Compensation Guidelines

In cases where suspension is declared before the start of the workday, the day shall be treated as:

-Unpaid for daily-paid workers, unless otherwise directed by Management.

If work has already commenced and is then suspended:

-Employees shall be paid proportionally for the hours worked prior to suspension.

E. Exceptions and Special Cases

In cases of urgent work, selected employees may still be requested to report to work despite suspension, provided that:

-Safety protocols are strictly observed.

-A special attendance and pay arrangement is agreed upon in writing.

For employees assigned to office-based or remote roles, suspension due to weather shall not apply unless their specific location or area is affected, and they are unable to report or work remotely.

F. Responsibility

All employees are expected to stay informed by monitoring announcements from their supervisors. It is the duty of the Site Engineer or Safety Officer to assess site conditions and advise Management on the necessity of work suspension.

XIII. Harassment and Workplace Violence

Purpose

It is the goal of HERO Construction and Development Corporation to promote a workplace that is free of sexual harassment, and any other type of discriminatory harassment.

Policy

The Company will not tolerate sexual or other types of harassment, and will take all steps necessary to prevent its occurrence. While this policy sets forth goals of promoting a workplace that is free from harassment and violence, the policy is not designed or intended to limit authority to discipline or take remedial action for workplace conduct which HERO Construction and Development Corporation deems unacceptable, regardless of whether that conduct satisfies the definition of Harassment.

Scope

This workplace harassment policy applies to all HERO employees, clients, visitors, and anyone else whom employees come into contact with at work. The word “harassment” includes bullying, intimidation, direct insults, malicious gossip and victimization. To name a few, here are some instances that are considered harassment:

•Sabotaging someone's work on purpose

•Engaging in frequent or unwanted advances of any nature

•Degrading comments on a person's ethnic heritage or religious beliefs

•Starting or spreading rumors about a person's personal life

For the safety of employees, please feel free to reach out to HR as soon as possible in any case or form of harassment no matter how minor it may seem. Anything you disclose will remain highly confidential.

A. Prohibition on Workplace Violence

HERO is committed to providing a safe and secure workplace. The policy is aimed to prevent, reduce and manage violence to provide a safe environment for all HERO employees, clients, and visitors. HERO employees are expected to conduct themselves in a professional manner and ethical at work.

1. Workplace violence

-Refers to physical injury or threats to harming a person or damaging a property. Abusive behaviors such as

a.verbal abuse - words or statement that are embarrassing, offensive and degrading,

b.psychological abuse- acts which provokes fear or diminishes employee dignity; or

c.physical abuse - is verbal or physical assault.

HERO management encourages employees to be aware. Report any concerns or violent acts to HR as soon as possible. Violent behavior includes but are not limited to:

a.Intimidating or bullying others

b.Abusive language

c.Physical assault

d.Threatening behavior

e.Concealing or using a weapon

f.Sexual harassment

An employee who witnesses or suspects violence, or a victim of violence, can report to HR, or his/her immediate supervisor. Management will investigate quickly and discreetly. We aim to protect all employees from harassment and victimization.

B. Prohibition on Other Types of Discriminatory Harassment

The Company's policy also prohibits verbal or physical conduct that denigrates or shows hostility or aversion toward an individual because of his or her race, color, religion, sexual orientation, age, national origin, disability, or other protected classification, and that:

•has the purpose or effect of creating an intimidating, hostile, humiliating or offensive working environment,

•has the purpose or effect of unreasonably interfering with an individual's work performance, or

•otherwise adversely affects an individual's employment opportunities.

While it is not possible to list all those circumstances that may constitute discriminatory harassment, the following are some examples of conduct which may constitute discriminatory harassment depending upon the totality of the circumstances including the severity of the conduct and its pervasiveness:

•epithets, slurs, negative stereotyping, or jokes, or threatening, intimidating or hostile acts that relate to race or other protected classification;

•written or graphic material that denigrates or shows hostility toward an individual or group because of race or other protected classification and that is circulated in the workplace, or placed anywhere in the Company's premises such as on an employee's desk, workspace or on Company computer, email or voicemail.

Disciplinary Action

Sexual harassment is a criminal offense. It is serious offense that may even lead to RA 7877 or RA 9262. A single report will be investigated promptly. An employee who is found guilty of sexual harassment will be automatically be terminated.

Disciplinary action for harassment depending on the severity of the offence. Punishment may include counseling, written reprimands with stern warning, suspensions or termination.

Any act of violence among HERO employees will not be tolerated. Appropriate disciplinary action will be imposed which includes immediate termination, as well as filing of applicable and appropriate criminal charges whenever necessary.

XIIII. Drug Free Workplace Policy

Hero Construction and Development Corporation intends to assist in providing a drug-free and safe work environment for our employees. We are implementing the following policy for current and future employees.

•Narcotics or other illegal drugs, alcohol, or prescription medications without a prescription while on Company property or while working on a project. Possession, solicitation, use, or sale of such substances is also prohibited.

•Being impaired or under the influence of drugs while away from the company, if this has a negative impact on the employee's ability to perform their job duties, the safety of themselves or others, or jeopardizes the company's reputation.

•Possession, use, solicitation, or sale of drugs whether legal or illicit—off company or client property, if such activity or involvement has a negative impact on an employee's ability to perform their job duties, jeopardizes their own safety or that of others, or harms the company's reputation.

•Any measurable number of illegal substances in an employee's system while they are at work, on the property of their employer or a client, or while conducting company business. Illegal drugs, and prescription medications that aren't taken as directed by an employee's prescription are all considered “prohibited substances.”

An employee may face appropriate disciplinary action, up to and possibly including termination from employment, if a drug test conducted outside of the workplace reveals that the employee violated this policy. Likewise, if the employee refuses to submit to a test requested under this policy. Prior to any final employment action taking effect, the employee will be given the chance to explain the situation.

A. Impairment Prohibited

No employee shall report for work or work impaired by any substance that is legal or illegal. “Impaired” means under the influence of a substance such that the employee’s motor senses (i.e., sight, hearing, balance, reaction, reflex) or judgment either are or may be reasonably presumed to be affected.

B. Possession Prohibited

No employee at any work site will possess any quantity of any substance, legal or illegal, which in sufficient quantity could cause impaired performance, except for authorized substances. “Work site” means any office, building, or property (including parking lots) owned or operated by the company, or any other site at which an employee performs work for the company. “Possess” means to have a drug or drugs either in or on an employee’s person, personal effects, motor vehicle, tools, and areas entrusted to the employee such as desks, files and company vehicles.

C. Inspections

For purpose of assuring compliance with the prohibition of possession of drugs, employees may be subject to inspection for drugs. Any refusal by the employee to submit to an inspection is an act of insubordination subject to disciplinary action.

An employee’s person, work area, desk, files, company motor vehicle, and similar areas are subject to inspection for drugs at any time on a random or any other nondiscriminatory basis for purposes of complying with this policy. Similarly, an employee’s own car, lunch box, personal containers, etc., may be inspected for drugs when brought onto any work site.

D. Help and Medical Treatment

The company believes that drug use and abuse is an illness requiring medical treatment. In this regard, the company will:

•Encourage affected individuals to voluntarily seek medical help.

•Assist supervisors in dealing with associated problems related to the employee’s work performance.

•Discourage supervisors, fellow employees, and possibly family members from “covering up” for the affected individual.

•If the employee seeks help prior to discovery of drugs use and abuse, then confidentiality, job security, and promotional opportunities of the employee will be protected; if the employee does not seek help for drug abuse, and the problem comes to the attention of the company, then the employee will be subject to disciplinary action.

•The company may refer to an employee to a drug use and abuse counseling agency for help because of deteriorating job performance or excessive absenteeism of the employee associated with use and abuse of drugs.

E. Effect on Company Rules

It is emphasized that recognizing drug use and abuse as an illness does not detract from company rules and regulations in respect to intoxication on the job, or having drugs on company properly, which will continue to be enforced unless management approves otherwise.

F. Discipline

Any violation of this policy may result in summary discipline for the employee, up to and including discharge.

XV. Grievance Policy

Policy

HERO Construction and Development Corporation recognizes the importance of providing a formal mechanism for employees to raise work-related concerns or complaints. The grievance process ensures that such issues are addressed fairly, promptly, and confidentially.

Scope

This policy applies to all employees and covers grievances related to:

·Workplace relationships or conflicts

·Unfair treatment or favoritism

·Violations of company policies or procedures

·Unsafe or unethical behavior

·Disciplinary actions or decisions

·Any other matter affecting the employee’s working conditions

Principles

·Confidentiality – All grievances will be handled discreetly.

·Non-Retaliation – Employees will not be penalized for raising legitimate concerns.

·Impartiality – All parties will be given a fair opportunity to present their side.

·Resolution-Oriented – The goal is to resolve issues constructively and promptly.

A. Grievance Procedure

1.Informal Resolution

The employee is encouraged to first raise the concern directly with the person involved or their immediate supervisor. Many issues can be resolved at this level without formal escalation.

2.Submission of Incident Report

If the issue remains unresolved after informal discussion, the employee may escalate the concern by submitting a formal Incident Report to the Human Resources Department.

The Incident Report must include the following details:

·Employee’s full name and department

·Date and time of the incident or concern

·Individuals involved, including witnesses (if any)

·Clear description of the incident or grievance, including relevant facts or observations

·Supporting evidence, such as photos, documents, or communication records (if applicable)

·Proposed or expected resolution, if any

The Incident Report must be filed as soon as reasonably possible after the occurrence, ideally within five (5) working days of the incident.

3. HR Investigation

HR will acknowledge receipt of the grievance and investigate. This may involve interviews, document reviews, and discussions with relevant parties. The investigation should be concluded within 10–15 working days, unless extended for valid reasons.

4. Resolution and Feedback

HR will present its findings and resolution to the employee. Possible outcomes include:

·Mediation between parties

·Corrective action

·Policy review

·Dismissal of unfounded complaints

B. Documentation and Records

All grievance records, findings, and resolutions will be documented and securely filed by the HR Department for future reference and compliance audits.

C. Special Considerations

·Anonymous grievances may be accepted but may limit HR’s ability to resolve the matter.

·Grievances involving harassment, discrimination, or ethical misconduct may follow a separate or expedited procedure aligned with relevant laws and company policies

D. Grievance Type

1.Misconduct refers to inappropriate behavior or actions that violate company policies, workplace norms, or ethical standards. It may be classified as minor or serious depending on the severity and frequency.

·Use of vulgar, discriminatory, or abusive language in the workplace.

·Dishonesty in records, timekeeping, or reporting.

·Engaging in gossip or malicious rumors that disrupt workplace harmony.

·Disrespectful or hostile behavior toward colleagues, clients, or supervisors.

·Being under the influence of alcohol or illegal drugs while at work.

·Tampering with company records or falsifying documents.

·Using company resources for personal gain without approval.

2.Physical abuse refers to any intentional act of violence or physical aggression in the workplace. It is considered a serious offense with zero tolerance and may lead to immediate dismissal.

·Punching, slapping, pushing, or physically assaulting another employee.

·Threatening physical harm or engaging in intimidation using force.

·Involvement in fights, brawls, or any violent disruption in the workplace.

·Throwing objects or using tools as weapons during conflicts.

·Attempting to harm another employee under the influence of anger or substances.

·Initiating physical contact in a threatening or offensive manner.

·Retaliatory violence in response to disagreements or performance feedback.

3.Security breach involves any act that compromises the physical or digital security of the company, its clients, or personnel. These may include unauthorized access, information leaks, or violations of security protocol.

·Granting unauthorized personnel access to restricted areas.

·Losing company-issued access cards, keys, or credentials without prompt reporting.

·Sharing confidential data or credentials with third parties without authorization.

·Unauthorized use or installation of software or storage devices on company systems.

·Disregarding IT security protocols including password policies and email confidentiality.

·Uploading, transferring, or copying company data to personal devices or cloud storage.

·Failing to report suspicious activity or known security lapses.

4.Accident is an unplanned event that results in injury, health compromise, or damage to company property. Accidents must be properly reported and investigated to improve workplace safety.

·Engaging in unsafe practices leading to workplace injury or damage.

·Involvement in vehicular or machinery-related accidents while on duty.

·Failure to wear PPE (Personal Protective Equipment) resulting in an incident.

·Not reporting an accident immediately to the appropriate authority.

·Ignoring safety warnings or bypassing safety controls.

·Reckless behavior in hazardous areas or during operations.

·Refusing to undergo medical examination or drug/alcohol screening after an incident.

5.Near miss is a workplace incident that did not result in injury or damage but had the potential to do so. Failure to report or address near misses undermines workplace safety and accountability.

·Failure to report observed or personally experienced near-miss incidents.

·Repeatedly engaging in unsafe behaviors that contribute to near misses.

·Disregard for protocols designed to prevent hazardous occurrences.

·Withholding information during incident investigations.

·Tampering with or disabling safety mechanisms that could prevent near misses.

·Lack of corrective action despite repeated warnings or safety training.

·Downplaying or concealing near-miss incidents to avoid accountability.

6.Illness-related grievances concern the failure to manage or report health conditions that may endanger the employee or others in the workplace. It also includes misuse of sick leave or health-related deception.

·Reporting to work while visibly ill without securing medical clearance, especially when contagious.

·Failing to notify supervisors of illness-related absences within the required timeframe.

·Prolonged absenteeism without valid medical documentation.

·Falsification or alteration of medical certificates or health declarations.

·Using illness as a pretext to avoid disciplinary actions or responsibilities.

·Ignoring quarantine or isolation directives mandated by company or government policy.

·Refusal to comply with company health assessments or post-incident medical evaluations.

7.Property damage occurs when an employee intentionally or negligently causes harm, loss, or destruction to company or client-owned assets. It includes misuse, mishandling, or neglect leading to damage, and may result in disciplinary action or financial liability.

·Careless handling of tools, equipment, or vehicles resulting in breakage or malfunction.

·Unauthorized use of office property for personal matters leading to wear and tear or damage.

·Failure to observe standard operating procedures for handling fragile or sensitive materials.

·Willful destruction, graffiti, or defacement of company or client property.

·Non-reporting of damage caused during operations, resulting in further deterioration.

·Using equipment or machinery without proper training or clearance, causing damage.

·Improper storage or neglect of assets leading to avoidable deterioration or loss.

8.Insubordination occurs when an employee willfully disobeys or disregards lawful and reasonable instructions, policies, or directives from a person in authority. It is considered a serious offense and may be subject to disciplinary action, depending on the nature and frequency of the act.

·Willful non-participation in mandatory Toolbox Meetings, especially for site-based personnel. These meetings form part of the daily safety and operational briefing.

·Refusal to wear the prescribed uniform and/or PPE (Personal Protective Equipment), including safety shoes, pants, hard hats, and HERO uniform. This excludes designated wash days for admin employees.

·Failure or refusal to submit to a company-required medical examination, either pre-employment, post-incident, or as part of health monitoring procedures.

·Refusal to comply with lawful orders or directives issued by a superior, provided the instruction is within the employee’s scope of work and does not violate any law or labor regulation.

·Refusal to obey company rules or policies that the employee has been duly informed of and oriented on.

·Refusal to render legally authorized and mandatory overtime when required by operations and in accordance with labor standards.

·Refusal to comply with a management directive to transfer to a different work assignment, project, or location, when such transfer is reasonable and operationally necessary.

·Refusal to submit any required report or documentation as officially ordered by a supervisor or manager within the given timeline.

9.Unauthorized or unexcused absence occurs when NONE of any of the following conditions are met

·The employee provides to his or her supervisor sufficient notice at least 24 hours in advance of the absence and the absence request is approved in advance by the employee’s supervisor.

·The employee has been sick or underwent an emergency, but should notify his or her supervisor no later than the scheduled starting time on that same day. If the employee is unable to call, he or she must have someone to make the call. Two consecutive days of absence due to sickness or injury require a medical certificate containing the details of the sickness and fitness for duty release.

·For Admin/Office-based Employees,

notification for emergency absence MUST be filed by the employee at the company

ERP portal https://hcdc.com.ph/desk#List/Leave%20Application/ prior to the next

payroll cutoff. Advance leave requests must be filed prior to the absence.

10. Unauthorized Use of Company Vehicles and Equipment

Company vehicles, such as dump trucks and service vehicles, are strictly to be used for official HERO Construction and Development Corporation operations and assignments only. Drivers and authorized personnel must exercise caution, responsibility, and accountability when operating these assets.

The following acts are strictly prohibited:

·Using company vehicles for personal trips or errands without prior written approval from the immediate supervisor or project-in-charge.

·Deviating from the assigned route or project location without just cause or official instruction.

·Transporting unauthorized passengers, including family members or non-employees.

·Using company vehicles for transport of personal goods, materials, or equipment.

·Failure to log trips in the official vehicle logbook or ERP trip record system.

·Leaving the vehicle unattended, unlocked, or parked in unsecured areas.

Violation of this policy may result in disciplinary action, including suspension, loss of driving privileges, salary deduction for any damage or fuel misuse, and/or termination depending on the severity and recurrence of the offense.

Disciplinary Action

HERO uses disciplinary procedure to remind its employees that their performance and conduct is not up to the expected standard, as well as to encourage improvement. Disciplinary action may vary according to severity of the violation.

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Definition of Terms

1.      “Authorized Cause” - refers to instances enumerated under Art. 298 (Closure of Establishment and Reduction of Personnel) and 299 (Disease and as ground for termination) of the Labor Code, as amended, these are causes brought about by necessity and exigencies of business, changing economic conditions and illness of the employee.

2.      “Just Cause” - refers to those instances enumerated under Art. 297 (Termination by Employer) of the Labor Code, as amended. These are causes directly attributable to the fault or negligence of the employee.

3.      “Commission of a crime or offense” - refers to offense by the employee against the person of his/her employer or any member of his/her family or his/her duly authorized representative.

4.      “Fraud”- refers to any act, omission or concealment which involves a breach of legal duty, trust, or confidence justly reposed, and injurious to another.

5.      “Gross Negligence” - refers to the absence of that diligence that an ordinary prudent man would use in his/her own affairs

6.      “Habitual Neglect” - refers to repeated failure to perform one's duties over a period of time, depending on the circumstances.

7.      “Insubordination” - refers to the refusal to obey some orders, which a superior is entitled to give and have obeyed. It is a willful or intentional disregard of the lawful and reasonable instructions on the employer.

8.      “Loss of Confidence” - refers to a condition arising from fraud or willful breach of trust by an employee of the trust reposed on him/her by his/her employer or his/her duly authorized representative. There are two (2) classes of position of trust. The first class consists of managerial employees or those vested with power to lay down the management policies; and the second class consist of cashier, auditor, property custodian or those who in the normal and routine exercise of their functions, regularly handle significant amount of money or property.

9.      “Serious Misconduct” - refers to some transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, willful in character and implies a wrongful intent and not mere error in judgement.

Administrative Discipline Process

1.      Incident Report

2.      Notice of Specific Charge (NOSC) with Notice of Order to Explain (NOTE)

3.      Explanation - within 5 days upon received of NOSC

4.      Notice of 1st Administrative Hearing

5.      Notice of 2nd Administrative Hearing

6.      Notice of Decision to:

a.      To Exonerate (not guilty)

b.     To Declare Guilt (Suspension)

c.      To Terminate Employment (Dismissal)

Table of Offenses and Disciplinary Action

Serious Misconduct

Sex-Related Offenses

Gambling and Horseplay

Fighting inside Company Premises

Reporting to Work Under the Influence of Liquor

Immorality

Cyber Crimes

Libel/Cyber Libel/ Defamation (Against Company or/& Employee)

Intriguing Against Honor (Company & Employee)

Gross Disrespect

Other Misconduct

Using Mobile Phone or Company Computer for Gaming and Watching Movies during Work Time

Watching Inappropriate Movies

Concealing or possessing any deadly or prohibited weapon or firearms within the work premises

Smoking within Construction Premises

Insubordination

Willful/Intentional

Non-participation of toolbox meeting

Failure to Wear the Prescribed Uniform and/or PPE (including shoes, pants, and HERO uniform, except on wash days for administrative personnel)

Failure or refusal to submit to company medical examination

Refusal to Comply Lawful Orders of Superior

Refusal to Obey Company Policy

Refusal to Render Legally Authorized Compulsory OT

Refusal to Obey Order to Transfer

Refusal to Submit Report as Ordered

Gross Habitual Neglect of Duty

Chronic Absenteeism (Unauthorized Absence)

Always Late in Submitting Report

Habitual Tardiness

Tardiness of more than 15mins at each hour of work schedule will incur a rounded undertime of 1 hour.

Provision for Critical Days for Site Workers and Administrative Personnel. The company enforces an additional 100% deduction for absences or tardiness on critical days – by default, on Mondays, as well as any other days that the company designates as critical days. This deduction will be doubled, resulting in a total deduction of 200%.

Abandonment of Work for 3 Consecutive Days (AWOL)

Abandonment of work occurs when an employee fails to show up as expected at work for three (3) consecutive days without notifying their supervisor. This constitutes a neglect of duty and a just cause for termination after due process.

Lack of Diligence in Doing One's Work

Resulting to Damage to Property or Product

Resulting to Injury or Death to Person

Violation that falls under this will have outright termination after due process without prejudice to criminal and civil action if warranted by evidence.

Resulting to Decrease in Productivity

A. Quitting Work without Permission before Time Off

B. Sleeping During Working Hours

C. Leaving Post Temporarily Without Permission

D. Resulting to Deteriorating Quality of Work

Fraud or Breach of Trust

Destroying/Altering Documents

Falsification/Forging

Submitting Fake Documents

Cheating in Submission of Time Cards/Biometrics/Attendance Record

Punching of Another Employee's time Card/Biometrics/Attendance Record

Unauthorized Bringing Home of Records

Stealing Company Property

Stealing and/or Revealing Trade Secrets

Unauthorized Copying of Documents

Crime Against the Person of the Employer, etc.

Challenging Superior to a Fight

Grave Threats or Coercion

Maligning the Reputation of Superiors

Deforming the Good Name of the Company

Filing of Baseless and/or Harassment Suit

Physical injuries against superior

Other related offenses