CHAPTER IV

MANAGEMENT ASPECT

I. MANAGEMENT DESCRIPTION

Management is one of the most important aspect in establishing a

business. It is the performance of making and achieving the goals and objectives

of the business through the combined efforts, knowledge, skills and patience of

the team.

Management aspect includes the type of business ownership, the

organizational structure, the pre-operating procedures, the number of employees

to be hired, the duties and responsibilities of each and every employee and their

job specification.

As such good management is the key to achieve the main goal of the

organization.

Also management includes planning which is the detailed formulation of

action to achieve a particular end, controlling which is the monitoring a plans

implementation and taking corrective actions and most especially the decision

making which is the process of choosing among the competing alternatives.

 To achieve the organizations goal and objectives, Parudiso must be able

to perform all the necessary activities for the business to become competitive and

also make innovations to stay in the field.

II. FORMS OF OWNERSHIP

Parudiso Restaurant operates as a general partnership with the trade

name of RISING MANAGERS. The researchers choose the general partnership

because of several reason. First, because when you enter partnership you will not

have a sole responsibilities of managing the business, you and your partner(s)

share with the management so as the job doesnt seem as difficult as it is. Next, is

that you can brainstorm and share ideas with each other for the improvements and

innovations of the business, have new options and see something in new way.

And, through partnership you can pool more resources, knowledge, equipment

and materials. Pooling your resources will mean you have more to work with.
 Table 26
Type of Partners
Type of Liability of Capital Source of
Partners
Partner the Partner Contribution Capital
Antang, Capitalist / Personal
General Php500,000
Zyreen Industrial Savings
Ascinas, Capitalist / Personal
General Php500,000
Jerome Industrial Savings
Personal
Buhay, Ronel Capitalist General Php500,000
Savings
Calixtro, Capitalist / Personal
General Php500,000
Abigael Industrial Savings
Personal
Ciano, Renz Capitalist General Php500,000
Savings
Delica, Rem Personal
Capitalist General Php500,000
Francis Savings
Dy, Patrick Capitalist / Personal
General Php500,000
Edward Industrial Savings
TOTAL: Php3,500,000

Table 26 shows the type of partners of Rising Managers. There are four (4)

capitalist partners and three (3) capitalist / industrial partners. Two million four

hundred fifty pesos (Php2, 450, 000) is the total amount of capital contributed by

the partners. The source of the capital is from the personal savings of each partner.

The profit as well as losses will be distributed equally among partners.

III. PRE-OPERATING ACTIVITIES

In order for the business to commence, there are various project planning

that should be conducted to be able to assess whether or not the business that the

researchers are planning to set up will be feasible or not. To start with, the

business should obtain necessary and sufficient funds, since the form of

ownership is general partnership, each partner should contribute their respective

shares so that the business could ascertain as to whether how much will be their

capability to spend on the said project. The pre-operating procedure will include

the registration of the business in the Securities and Exchange Commission

(SEC). In addition, the researchers should also visit the Food and Drugs

Administration (FDA) to get a necessary permits regarding the safety of the foods

that the researchers are going to offer to its customers to ensure the quality of the

foods. Furthermore, the researchers should also obtain Sanitary Permit, Barangay

Permit, and Mayors Permit which will be obtained in Quezon City. Also, the

Bureau of Internal Revenue (BIR) for the application of the Business

Identification Number (TIN). And lastly, the researchers should communicate and

should sign an agreement with the management of the Quezon City Circle

regarding the Lease Contract, stating the size of the land, the annual rent and any

increase in rent, if there is, and the rules and regulation of the Quezon City Circle

regarding the establishment of a restaurant.

IV. LEGAL REQUIREMENTS

The following requirements are important in order for the business to

operate legally:

The Securities and Exchange Commission Certificate issued by the

Securities and Exchange Commission (SEC);

Registration of Business Name;
Article and By-laws of the Partnership;
Locational Clearance;
Building Permit;
Mayors Permit
Bureau of Internal Revenue (BIR) Number and the Partnerships Tax

Identification Number;
Food Safety Permit from the Food and Drugs Administration (FDA);
Business Permit, Sanitary Permit, Sanitary Clearance, Health Certificates,
Social Security System (SSS) Certificate of Membership;
Department of Labor and Employment (DOLE);
Phil Health Employer Number and Certificate;
Fire Safety inspection Certificate;
Lease Contract

V. LOCAL TAX RATES

The local tax levied by the local government Quezon City is 30% of the

total income of the business. The Partnership is also required to pay 30% of its

Net taxable Income (de Leon, 2012).

VI. GOVERNMENT LAWS APPLIED

Labor Code of the Philippines is the current law governing the

employment practices and labor relations in the Philippines. It also enumerates the

rules and standards regarding employment.

1. MINIMUM WAGE RATE

The minimum Wage rate is Php481.00 which is based on the existing

Minimum Wage Law.

2. OVERTIME PAY

Minimum wage is based on a work week of 40 hours or 8 hours per day.

The daily 60 minute mandatory lunch break is not included in the 8 hour work

day and is not compensated. Overtime pay rates vary depending on when the

overtime work takes place: regular work day, holiday, rest day, or night (between

the hours of 10pm to 6am).

Overtime Rates:

Regular work day: plus 25% of the hourly pay rate.

Rest day, regular/special holiday: plus 30% of the hourly rate on said day.
 3. PREMIUM PAY

Premium pay is given on non-working days (rest days/special holidays).

There are 3 special holidays:

Ninoy Aquino Day

All Saints Day
Last Day of the Year

Premium Pay Rates:

On a rest day or special holiday, an employee is entitled to an additional

30% of his daily basic rate, or a total of 130%.

On a rest day which is also a special holiday, an employee is entitled to an

additional 50% of his daily basic rate, or a total of 150%.

On a regular holiday which is also an employees rest day, an employee is

entitled to an additional 30% of the regular holiday rate of 200%, or a total

of 260%. Note that it is only applicable to employees covered by the

holiday-pay rule.

The no work, no pay principle applies during special non-working days

and such other special days as may be proclaimed by the President of the

Philippines. Workers who are not required or permitted to work on these days

are, therefore, not entitled to any compensation. This, however, is without

prejudice to any voluntary practice or CBA providing for payment of wages and

benefits for declared special days even if unworked.

Christmas Day
Rizal Day

4. HOLIDAY PAY

The Labor Code requires the payment of an employees daily basic wage

for all non-working regular holidays.

There are 12 regular and 3 special non-working holidays (see above) in the

Philippines.

Twelve regular holidays are (Republic Act No. 9849):

New Years day

Maundy Thursday
Good Friday
Araw ng Kagitingan
Labor Day
Independence Day
National Heroes Day
Eidl Fitr
Eidl Adha
Bonifacio Day
Christmas Day
Rizal Day
 Rate

If work is accomplished on a regular holiday (up to 8 hours), an employee

is entitled to at least twice (200%) of his basic wage. If the holiday corresponds to

a scheduled rest day, the employee is entitled to an additional 30% based on his

regular holiday rate of 200%, which comes to a total of at least 260%.

Absences

All covered employees shall be entitled to holiday pay when they are on

leave of absence with pay on the workday immediately preceding the regular

holiday. Employees who are on leave of absence without pay on the day

immediately preceding a regular holiday may not be paid the required holiday pay

if they do not work on such regular holiday.

Employers shall grant the same percentage of the holiday pay as the

benefit granted by competent authority in the form of employees compensation

or social security payment whichever is higher, if the employees are not reporting

for work while on such leave benefits.

Where the day immediately preceding the holiday is a non-work day in the

establishment or the scheduled rest day of the employee, he/she shall not be

deemed to be on leave of absence on that day, in which case he/she shall be

entitled to the holiday pay if he/she worked on the day immediately preceding the

not work day or rest day.

Successive Regular Holidays

Where there are two (2) successive regular holidays, like Maundy

Thursday and Good Friday, an employee may not be paid for both holidays if

he/she absents himself/herself from work on the day immediately preceding the

first holiday, unless he/she works on the first holiday, in which case he/she is

entitled to his/her holiday pay on the second holiday.

5. 13th MONTH PAY

Each year, a 13th month pay is given to all rank-and-file employees. By

law, this benefit must be paid before December 24th and is mandatory. Employees

who have resigned or have been severed from the company before the payment of

the 13th month pay are still entitled to it in proportion to the length of time they

worked for during that year.

The 13th month pay must be at least 1/12th of the total basic salary of

each employee earned during that calendar year.

 6. SEPARATION PAY

Following the labor code of the Philippines, articles 283 and 284 state that

an employee can claim separation pay if his contract is ended under authorized

causes. According to article 282 an employee terminated for just cause (neglect of

duties, fraud, crime) is generally not entitled to separation pay.

A separation pay of month pay for every year of service can be claimed

under the following authorized causes:

Retrenchment of person for loss prevention.

Cessation of operation of a branch not due to serious losses or

financial difficulties.
\If the employee has contracted a disease not curable within 6

months and that his presence at work can be harmful to himself or

his co-workers.
A separation pay of 1 month pay for every year of service can be

claimed under the following authorized causes: Labor-saving

devices installed by the employer.Redundancy of the employees

services for the company.

Impossibility to reinstate the employee to his former position or to

an equivalent position, for reasons outside of the employers

power.
 The employer has the right to terminate the contract of an employee

following any of the above authorized causes through a written notice to both the

employee and the Department of Labor and Employment of the Philippines at

least one month before the contract cessation date.

7. RETIREMENT PAY

All employees from the private-sector may retire from age 60 up to age

65, at which retirement becomes compulsory, and must have served the

establishment for at least 5 years.

Retirement pay must at least be equivalent to half of a months salary for

each year of service and a fraction of at least 6 months is therefore considered as

one whole year.

One half month salary must include the following: a) 15 days salary

based on the last salary pay, b) the pay equivalent of a five days of incentive

leave, c) 1/12 of the 13th month pay. Therefore, one month salary is equivalent

to 22.5 days.

Minimum Retirement pay = Latest daily pay rate x 22.5 days per month x

number of years of service

 Depending on the agreements between the employer and employee other

benefits can be included in the retirement pay such as a Collective Bargaining

Agreement (CBA).

8. SOCIAL SECURITY SYSTEM

By law, private sector employees must be covered under the Social

Security System (SSS). Based on each employees gross monthly pay, both the

employer and employee remit monthly contributions to the SSS. In turn, the SSS

benefits cover maternity, retirement, sickness, disability, death and pension

benefits.

9. PHILHEALTH

For all employees covered by the SSS medical coverage is mandatory and

automatic. Both the employer and employee contribute equal monthly amounts to

the PhilHealth InsuranceCorporation.

10. HOME DEVELOPMENT MUTUAL FUND

The Home Development Mutual Fund (HDMF), also known as the Pag-

IBIG Fund, is mandatory to all employees who are compulsorily covered by the
Government Service Insurance System (GSIS, for Filipino Government

employees) or the SSS. Through the Republic Act No. 9679, the HDMF answers

two important needs for Filipino workers by establishing a national savings

program and an affordable house financing system. HDMF members benefit of 1.

Savings, 2. Short term loans and 3. Access to low cost housing programs. Both the

employee and the employer contribute to the fund.

For a monthly compensation of PHP 1,500 and less the employee

contributes 1% and above PHP 1500 monthly compensation it is 2%. The

employers contribution always remains at 2%. Contributions are deducted from

gross income before computation of the income tax. Note that the maximum

employee contribution is set at PHP 5,000. Hence the minimum contribution for

employees and employers is now set at PHP 100

11. Food Safety Act of 2013 (REPUBLIC ACT NO. 10611)

Section 15, Article II of the 1987 Philippine Constitution declares that the

State shall protect and promote the right to health of the people and instil health

consciousness among them. Furthermore, Section 9, Article XVI provides that the

State shall protect consumers from trade malpractices and from substandard or

hazardous products. Toward these ends, the State shall maintain a farm to fork

food safety regulatory system that ensures a high level of food safety, promotes
 fair trade and advances the global competitiveness of Philippine foods and food

products.

VII. MANPOWER REQUIREMENTS

A. Organizational Chart
B. Employees

Table 27
Types of Employees
Position Number of Employees
General Manager (Industrial Partner) 2
Assistant Manager 1
Kitchen Manager (Industrial Partner) 2
Short-order Cook 2
Line Cook 3
Receptionist 2
Cashier 2
Server 10
Dishwasher 2
Bartender 2
Total 28

Table 27 indicates the number and types of employees needed in the

operation of Parudiso Restaurant.

Personnel Job Descriptions, Qualifications, Duties and Responsibilities

1. General Manager

He is the one who will be in charge of overseeing the operation of the

entire business towards the achievement of the business objectives. Also, he is the

one who monitor and evaluate the performance of the employees.

Duties and Responsibilities

Oversees general restaurant operations

Oversees Profit and Loss Statement
Manages both Front of House (FOH) and Back of House
Hires and manages staff
Works with executive Chef on Marketing Initiative

Qualifications
 College degree typically preferred
Two or more years of food service management experience
Customer service experience
Excellent interpersonal communication skills
Knowledge of the management software for payroll, finances and business

recording
May be required to pass a background check
Understanding of food safety, equipment safety and sanitation regulations

2. Assistant General Manager

The Assistant General Manager is responsible for supporting the General

Manager in the management of the entire store's operations. The AGM is also

responsible to meet performance and profit goals.

Duties and Responsibilities

Oversees the General Restaurant operations when General

Manager is absent
Assists with Profit and Loss Statement
Assists with hiring and managing staff
Assists with ordering and keeping inventory
Often takes on management of bar area

Qualifications

College degree typically preferred

One or more years of food service management experience
Customer service experience
 Excellent interpersonal communication skills
Knowledge of management software for payroll, finances and

business recording
Maybe required to pass a background check
Understanding of food safety and equipment safety

3. Kitchen Manager

A kitchen manager is responsible for the overall operations for the back of

house and kitchen area of a restaurant. Kitchen managers hire staff, purchase food

and stock, and make sure everyone is trained on proper food preparation

and kitchen safety techniques.

Duties and Responsibilities

Help creates recipes

Prepares food in the kitchen
Adept at preparing large quantities of food
Give directions to line cooks
May help order food and keep inventory

Qualifications

Culinary background / education

Leadership experience
 Excellent Interpersonal communication skills
May be required to pass background check
Understanding of food safety, equipment safety and sanitation regulations
Physical requirements: standing, reaching, lifting and bending

4. Short Order Cook

Short order cooks work in restaurants and diners that prepare fast, simple

food: sandwiches, eggs, fries, burgers and other similar food. They usually work

on many orders at once, getting them all out as fast as possible for their hungry

customers.

Duties and Responsibilities

Prepares food in the kitchen

Prepares several order at once
Directs line cooks

Qualifications

Work well under pressure

Time management skills
Kitchen and food safety training
Physical requirements: standing, reaching, lifting and bending

5. Line Cook

Line cooks are usually responsible for prepping ingredients and

assembling dishes according to restaurant recipes and specifications. Kitchens can

be hot, noisy and stressful places, so you'll need to be able to work efficiently and

quickly to be successful as a line cook.

Duties and Responsibilities

Prepares food in the kitchen

Works one or more kitchen stations, including grill, broil, or fry
Receives directions from the cook

Qualifications

Culinary background
Kitchen and food safety training
Work well under pressure
Time management skills
Ability to follow direction and work on a team
Physical requirements: standing, reaching, lifting and bending

6. Server

Restaurant server is the gender-neutral term for a waiter or waitress who is

typically part of a wait staff. Servers can be employed in a wide range of

establishments, from casual eateries to fine dining restaurants. The nature of their

job requires them to be on their feet for much of their shifts. Part-time

employment is common.

Duties and Responsibilities

 Attends to guests and take orders
Offers information and suggestions about the menu
Prepares check and collect payment
Transports food from kitchen to dining
Helps expedite orders
Helps clear tables
Pours water for guests

Qualifications

Positive attitude
Ability to handle stress well
Excellent memory and ability to multi-task
Customer service skills
Clear and friendly communication skills
Physical requirements: standing, walking, reaching, lifting and bending

7. Receptionist

Duties and Responsibilities

Greets customer at the door

Assigns guests to tables
Provides menus to guests and cleans them afterward
May schedule reservations
Answers phone

Qualifications

Friendly and positive attitude

 Clear communication skills

8. Cashier

A cashier obtains payment for goods by scanning items, itemizing and

totaling customer's purchases.

Duties and Responsibilities

Itemizes and totals purchases by recording prices, departments, taxable

and nontaxable items; operating a cash register.

Collects payments by accepting cash or charge payments from customers;

making change for cash customers.

Balances cash drawer by counting cash at beginning and end of work shift.

Provides pricing information by answering questions.

Qualifications

Energy Level,
Dependability and Productivity,
Customer Service and Professionalism,
 Attention to Detail, Customer Focus,
General Math Skills, Informing Others
Basic Safety and Job Knowledge

9. Bartender

Bartenders fill drink orders either directly from customers at the bar or

through waiters and waitresses who place drink orders for dining room customers.

Bartenders must know a wide range of drink recipes and be able to mix drinks

correctly, quickly, and without waste. They also must work well with waiters and

waitresses and other kitchen staff to ensure that customers receive prompt service.

Duties and Responsibilities

Takes drink orders through servers or directly from guests

Prepares mixed drinks, pours wine or beer, serve bottled or soft drinks
May be responsible for ordering and taking inventory

Qualifications

Knowledge or ability to quickly learn and memorize cocktail recipes

Positive attitude
Ability to handle stress well
Excellent memory and ability to multi-task
Customer service skills
Clear and friendly communication skills
Physical requirements: standing, walking, reaching, lifting and bending
 10. Dishwasher

The dishwasher cleans the work area, washes the dishes and executes

various tasks to assist the other employees responsible for serving and preparing

food and beverages.

Duties and Responsibilities

Responsible for maintaining dishwashing equipment

Dilutes chemicals for dish machines
Maintains clean dishes and other wares
Prevents bottlenecks in the kitchen

Qualifications

Ability to train and understand how to operate dishwashing equipment

safely
Physical requirements could include standing, bending, lifting or reaching.

C. Hiring Process
Figure 20
 Posting of hiring if there are
vacancies through posters and
flyers.

Qualified applicant will be

interviewed immediately.

Conduct of investigation regarding

the character of the employee.

Final interview for the qualified

applicants.

Applicant who passed the final

interview will be asked to submit
all the necessary requirements.

Start working for the

Figure displays the

process of hiring of employees of

Parudiso Restaurant. The

newly opened business is informing the public that the newly opened restaurant is

in need of employees. The next step is the acceptance of qualified applicants for

the different positions, qualified applicant are then go through a preliminary

interview. The applicant is not allowed to proceed on the next procedure if he/she
didnt passed the preliminary interview. If the applicant passed the preliminary

interview, then the said applicant may be subject to background check. If the

applicant is proved to be qualified for a certain position, he/she will now proceed

to the final interview followed by the submission of necessary requirements such

as NBI clearance. After the submission of the necessary requirements, the

applicant is now part of the Parudiso Restaurant and may now start working.

D. Standard Operating Procedures and Business Policies

Opening Procedures:

The employees are required to be in the business premises thirty (30)

minutes before the actual work start.

The employees must sign in on the logbook for their attendance.
Check all the equipment necessary in restaurant service.
Make sure that all the chairs, tables and the floorings are in order and

clean.

Closing Procedure:

Cleaning of the business premises.

Cleaning of the equipment used preparing the food.
Cash count to determine the total sale of the day.
Signing out in the logbook.
Closing of the business establishment.
 E. Company Policies

A definite are clear out policies are essential to achieve an effective

management. "Parudiso" ensures that these policies serves as a set of standards for

the guidance of the management to achieve its objective. These policies are

generally the plans of actions for the conduct of operation of the business and

should be strictly followed.

Attendance Policy

Employees are expected to report to work as scheduled and on time. Those

who came late for more than thirty minutes (30) in one cut-off period will receive

warning in first offense, in second offense they will be called at the office of the

manager to clearly state his or her reason, in the third and final offense they will

be suspended for three days all of the said aforementioned rule is with

corresponding deductions on their respective salaries. Those who came late for

three (3) consecutive days will receive a warning, also with a corresponding

deductions on their salaries. Coming late for 7 consecutive days will receive a

written warning and will be called to state his or her reason(s), also with

corresponding deductions. Being late for thirty minutes or more will be treated as

half-day. Absence without notifying the manager will receive a warning at first

offense, and make sure your reason is valid.

 Absence without official leave and without valid reason or evidence of

such absent, employee will receive a one week suspension. Absences for six

consecutive days without notifying the manager is considered abandonment of

work or absence without official leave (AWOL), which can be a just cause for

termination. Falsifying of personal time card and punching of time card for other

person is likewise prohibited. Anyone caught or reported doing this act, if

supported with sufficient evidence, will be subjected to proper disciplinary

proceedings. The no time in, no time out, no pay policy is strictly implemented

and observed by the management.

Drugs and Alcohol Policy.

Drug and alcohol problems result in unsafe and unpleasant working

environment for all employees and customers and may affect the integrity of the

management and the business entity itself. The business is committed in

maintaining a productive, safe and healthy working condition. Any employee

caught or came to work under the influence of drugs or alcohol within the

business premises and within working hours will receive a written warning and

will suspended for the said day and will be forced to leave the business premises

if he or she resists to follow. The drinking of alcohol by any employee inside

business premises is not allowed and will receive a three days suspension if

caught or reported by any eye witness. Any employee involved in the unlawful
use, dispensing or possession of drugs, or using any of the prohibited drugs inside

the business premises will be subjected to immediate termination, after

observance of the two-notice rule and compliance with the procedural and

substantive due process of law, as provided under the Labour Code of the

Philippines.

Safety Policy

The management will make every effort to keep all the equipment in

excellent working conditions and make sure that all safety equipment are properly

functioning. Employees in return should follow the safety procedures to avoid

accidents and any untoward incidents.

Cleanliness Policy

The Business ensures that all utensils and kitchen wares are all sterilize

before using it. All employees must keep their hands sanitized before preparing,

handling or serving food to the customers. Employees who are affiliated or

engaged in preparing and cooking the foods must wear disposable gloves while

working. All leftovers should be disposed in accordance with the standard

procedures. All garbage must be segregated from biodegradable to non-

biodegradable from the kitchen and dining area to prevent any contamination with

the food and to maintain the appetite of the customers as well. All comfort room

must be kept clean at all times. The disposal of the garbage will be in accordance
with the implementing regulation of the Quezon City Memorial Circle

management, where the business is located.

Workplace Security Policy

The business is committed to maintain a safe and secured workplace. All

employee are subject for inspection before and after entering the business

premises to avoid any loss on their part and on the part of the management, hence,

all employees are required to state their belongings.

All employees are prohibited from bringing any firearms or sharp objects, play

with it or even make some prank or jesting with their co-employees using the said

objects, inside the workplace. Failure to comply with this policy will result in

warning up to suspension depending to the degree of non-compliance.

Dress Code Policy

All employees should wear their prescribed uniform inside the business

vicinity. All employees should look neat and clean at all times. Failure to comply

will result in warning in first offense, and will be called at the office at second

offense and will be subject to proper disciplinary proceedings at the third and final

warning.

Smoking Policy
 The entity maintains a non-smoking policy within the business premises.

Failure to comply will result in proper disciplinary proceedings.

Electronic Device Use Policy

Employees are only allowed to use their electronic device during break or

after their shift. Employees are not allowed to use the computer for personal

purpose and interest. Failure to comply with this policy will be subject to a

disciplinary action.

F. Operating Hours

Parudiso Restaurant will operate its business from 8:00 am to 10:00 pm,

Monday to Sunday. A total of fourteen (14) hours per day and seven days a week.

Be noted that as per company policy, we are having a two shifts of work. The first

shift is from 8:00 am to 3:00 pm and the second shift is from 3:01 pm to 10:00

pm.

a. Mandatory Benefits
13th MONTH PAY
 Each year, a 13th month pay is given to all rank-and-file employees. By

law, this benefit must be paid before December 24th and is mandatory. Employees

who have resigned or have been severed from the company before the payment of

the 13th month pay are still entitled to it in proportion to the length of time they

worked for during that year.

The 13th month pay must be at least 1/12th of the total basic salary of

each employee earned during that calendar year.

SEPARATION PAY

Following the labor code of the Philippines, articles 283 and 284 state that

an employee can claim separation pay if his contract is ended under authorized

causes. According to article 282 an employee terminated for just cause (neglect of

duties, fraud, crime) is generally not entitled to separation pay.

A separation pay of month pay for every year of service can be claimed

under the following authorized causes:

Retrenchment of person for loss prevention.

 Cessation of operation of a branch not due to serious losses or

financial difficulties.
\If the employee has contracted a disease not curable within 6

months and that his presence at work can be harmful to himself or

his co-workers.
A separation pay of 1 month pay for every year of service can be

claimed under the following authorized causes: Labor-saving

devices installed by the employer.Redundancy of the employees

services for the company.

Impossibility to reinstate the employee to his former position or to

an equivalent position, for reasons outside of the employers

power.

The employer has the right to terminate the contract of an employee

following any of the above authorized causes through a written notice to both the

employee and the Department of Labor and Employment of the Philippines at

least one month before the contract cessation date.

RETIREMENT PAY

All employees from the private-sector may retire from age 60 up to age

65, at which retirement becomes compulsory, and must have served the

establishment for at least 5 years.

 Retirement pay must at least be equivalent to half of a months salary for

each year of service and a fraction of at least 6 months is therefore considered as

one whole year.

One half month salary must include the following: a) 15 days salary

based on the last salary pay, b) the pay equivalent of a five days of incentive

leave, c) 1/12 of the 13th month pay. Therefore, one month salary is equivalent

to 22.5 days.

Minimum Retirement pay = Latest daily pay rate x 22.5 days per month x

number of years of service

Depending on the agreements between the employer and employee other

benefits can be included in the retirement pay such as a Collective Bargaining

Agreement (CBA).

SOCIAL SECURITY SYSTEM

By law, private sector employees must be covered under the Social

Security System (SSS). Based on each employees gross monthly pay, both the

employer and employee remit monthly contributions to the SSS. In turn, the SSS

benefits cover maternity, retirement, sickness, disability, death and pension

benefits.
 PHILHEALTH

For all employees covered by the SSS medical coverage is mandatory and

automatic. Both the employer and employee contribute equal monthly amounts to

the PhilHealth InsuranceCorporation.

HOME DEVELOPMENT MUTUAL FUND

The Home Development Mutual Fund (HDMF), also known as the

Pag-IBIG Fund, is mandatory to all employees who are compulsorily covered by

the Government Service Insurance System (GSIS, for Filipino Government

employees) or the SSS. Through the Republic Act No. 9679, the HDMF answers

two important needs for Filipino workers by establishing a national savings

program and an affordable house financing system. HDMF members benefit of 1.

Savings, 2. Short term loans and 3. Access to low cost housing programs. Both the

employee and the employer contribute to the fund.

For a monthly compensation of PHP 1,500 and less the employee

contributes 1% and above PHP 1500 monthly compensation it is 2%. The

employers contribution always remains at 2%. Contributions are deducted from

gross income before computation of the income tax. Note that the maximum
employee contribution is set at PHP 5,000. Hence the minimum contribution for

employees and employers is now set at PHP 100

Figure 21

Uniform Lay-out

Server:

Manager:
Chef:
 Figure 21 shows the uniform to be used by our employees such as the

servers, cashier, dishwasher and bartender. Figure b shows the uniform to be used

by our managers. And Figure c illustrates the uniform to be used by our cooks.

VIII. OPERATING HOURS

Table 28
Operating Hours

Days Designation Time

Monday - Sunday Not all employees 8:00 am 10:00 pm

(depends on the

schedule given to

them); two shifts.

Table 28 presents that Parudiso Restaurant will be open at 8:00 am and

will be closed 10:00 pm from Mondays to Sundays

 SUMMARY OF MANAGEMENT ASPECT

Management aspect shows the form of ownership and the trade name that

the researchers choose. It also involves the pre-operating activities which

describes the requirements that are needed prior to the operation of the business.

Also, the laws that is said to be applicable to the business and the manpower

requirements which give a thorough details of job description, duties and

responsibilities and the job qualifications of the employees. It also presented the

organizational chart which shows the flow of authority inside the organization.

And the management aspect presented the standard procedures in opening and

closing of the business, the salaries and wages of the employees and the

mandatory benefits that should be given to the employees. At the end, it presented

the Gantt chart which shows the activities in the conduct of feasibility study.