Different classifications of business

1. Service business this provides intangible goods or services to customers. t usually generates profit
by charging for labor or other services rendered to consumers, government or other companies. Below
are examples of service businesses:
O Firms which offer professional services, such as accounting, legal, engineering, business consulting, customer
service and architecture
O Transportation companies, such as airlines, shipping, land tours and forwarders
O Entertainment, such as artists and movie houses
O Hotels and restaurants
O Apartments
O Banks, lending companies and other financial institutions
O Telecommunication companies
O Event planners
O Medical and dental services
O Security and janitorial services
O Media, blogging and advertising
O Website developers
O Graphic designers
O Business process outsourcing (BPO) companies
O and others
. Merchandising business this purchase products from other businesses or manufacturers and sell
them to customers. Merchandising companies usually have merchandising inventories in their current
assets account. They usually generate profit by providing markup price on their goods available for sale.
These businesses include retailers and trading companies such as the following:
O Grocery stores
O Department stores
O Distributors
O Real estate dealers
O Car dealers
. Manufacturing business this converts raw materials, labors and overhead into finished products
that are available for sale to customers. Manufacturing firms includes the following companies:
O Car manufacturers
O Wine and soft drinks producers
O Electronic parts manufacturers
O Producers of drugs and other medical products
. Other businesses. This includes businesses that can't be classified as service, merchandising or
manufacturers. Examples are agriculture and mining companies. These companies are engaged in
producing or exploration of raw or natural materials, such as plants and minerals.






l 1?LS Cl LMLC?MLn1
1 ro[ecL/1emporary LmploymenL Cne who ls engaged for a speclflc
underLaklng or pro[ecL whose compleLlon has been predeLermlned
LmploymenL ls coLermlnus wlLh Lhe concluslon of Lhe pro[ecL or
underLaklng and Lhus lpso facLo LermlnaLes wlLhouL enLlLllng Lhe
employee Lo separaLlon pay Powever lf Lhe employee ls LermlnaLed
before Lhe compleLlon of Lhe pro[ecL and ls removed wlLhouL a valld
cause he/she ls enLlLled Lo a separaLlon pay 1he separaLlon pay shall
be compuLed aL Lhe raLe of one monLh's pay for every year of servlce up
Lo Lhe pro[ecL's compleLlon
2 Casual LmploymenL An employee who ls engaged Lo perform an
acLlvlLy noL usually necessary or deslrable Lo Lhe course of buslness of
Lhe employer ls hlred under Lhe Lerms of casual employmenL lor
example a mechanlc hlred Lo flx an englne or workers hlred Lo renovaLe
a bulldlng are consldered casuals Powever as provlded by paragraph 2
ArLlcle 280 of Lhe Labor Code a casual employee who has rendered aL
leasL one year of servlce (wheLher such servlce ls conLlnuous or
lnLermlLLenL) shall be consldered a regular wlLh respecL Lo Lhe acLlvlLy
for whlch he/she was employed Pe/She cannoL be LermlnaLed whlle
such acLlvlLy exlsLs
3 robaLlonary LmploymenL Cne who ls on Lrlal by an employer durlng
whlch Lhe employer deLermlnes wheLher or noL he/she ls quallfled for
permanenL employmenL ls hlred under Lhe Lerms of probaLlonary
employmenL 1he word probaLlonary" as used Lo descrlbe Lhe perlod of
employmenL lmplles Lhe purpose of Lhe Lerm or perlod buL noL lLs
lengLh
1he probaLlonary perlod of nonacademlc personnel ls noL covered by
Lhe Manual of regulaLlons of rlvaLe Schools buL by Lhe Labor Code
speclflcally ArLlcle 281 whlch sLaLes
robaLlonary employmenL shall noL exceed slx (6) monLhs
from Lhe daLe Lhe employee sLarLed worklng unless covered
by an apprenLlceshlp agreemenL sLlpulaLlng a longer perlod
LffecLlve school year 20042003 probaLlonary perlod of nonLeachlng personnel
wlll be slx monLhs wlLh Lhe followlng provlslon
LMLC?MLn1 8CCLSS
Anu 8AC1lCLS S1 SCPCLAS1lCA'S CCLLLCL MAnlLA SLaff Manual
LmploymenL rocess and racLlces november 2006
(1) 1he flrsL conLracL of employmenL musL cover only a perlod of Lhree
(3) monLhs
(2) 1he flrsL conLracL wlll only be renewed for anoLher Lhree (3) monLhs
lf Lhe employee dlsplays Lhe poLenLlal Lo meeL Lhe sLandard of Lhe
lnsLlLuLlon
ConLracLual or pro[ecL employmenL shall noL be counLed ln compuLlng Lhe
probaLlonary perlod nor ln compuLlng Lhe lengLh of servlce ln case an
employee ls hlred as a regular employee
4 8egular or ermanenL Lhose who have saLlsfacLorlly compleLed Lhe
probaLlonary perlod
ll 8LC8ul1MLn1 8CCLuu8LS
1 1he unlL/Cfflce Peads make a requesL by accompllshlng ersonnel Cfflce
lorm 8 (Cl 8) and submlL Lhls Lo Lhe Puman 8esource and uevelopmenL
Cfflce (P8uC) for acLlon (8efer Lo Appendlx 1 for P8u lorm 8 8equesL
for ersonnel)
2 1he school recrulLs prospecLlve employees from lLs currenL flle of [ob
appllcanLs and from Lhose currenLly employed who may quallfy for promoLlon
or may wanL a Lransfer of work asslgnmenL ln accordance wlLh an Cpen uoor
ollcy vacancles are posLed ln Lhe P8u 8ulleLln 8oard
3 AppllcanLs are made Lo go Lhrough Lhe enLlre hlrlng procedures such as
LesLlng lnLervlews eLc

lll Pl8lnC
A Plrlng rocedures
1 All appllcanLs are glven Lhe AppllcaLlon for LmploymenL lorm ln Lhe
Puman 8esource and uevelopmenL Cfflce and requlred Lo submlL Lhe
followlng requlremenLs
- AppllcaLlon LeLLer
- 1hree (3) LeLLers of 8ecommendaLlon
- 1wo (2) pcs 1 x 1 colored lu plcLure
- Clearance from prevlous employer lf prevlously employed lf appllcable
- ollce Clearance
- n8l Clearance
- 8arangay Clearance
- 1ax ldenLlflcaLlon number
- SSS number
- Copy of 8lrLh CerLlflcaLe
- Copy of CaLhollc Church Marrlage CerLlflcaLe S1 SCPCLAS1lCA'S CCLLLCL MAnlLA
SLaff Manual
LmploymenL rocess and racLlces november 2006
- School CredenLlals
* Plgh School ulploma
* 2?ear CerLlflcaLe
* College ulploma
* 1ranscrlpL of 8ecords
- Medlcal LxamlnaLlon 8esulL
* C8C
* xray
* urlne
* SLool
- Llcensure LxamlnaLlon 8esulLas necessary
- rofesslonal Llcense nurses
All lnformaLlon ls sub[ecL Lo verlflcaLlon 1he school reserves Lhe rlghL Lo
dlsmlss an employee found Lo have falslfled hls/her lnformaLlon daLa
sheeL
2 An lnlLlal lnLervlew ls conducLed by Lhe Puman 8esource and
uevelopmenL Cfflce for screenlng purposes
3 Cuallfled appllcanLs are scheduled for a serles of LesLs ln Lhe Culdance
Cfflce All LesLs resulLs and Lhelr lnLerpreLaLlon are forwarded Lo Lhe
Puman 8esource and uevelopmenL Cfflce
4 A second lnLervlew ls arranged beLween Lhe unlL/Cfflce Pead and Lhe
appllcanL 1he unlL/Cfflce Pead Lhen selecLs Lhe mosL quallfled
appllcanL and recommends hlm/her for flnal lnLervlew by Lhe P8u
ulrecLor
3 Cnce Lhe appllcanL ls selecLed Lhe P8u ulrecLor lssues an employmenL
conLracL duly approved by Lhe School resldenL
6 1he employmenL conLracL ls forwarded Lo Lhe 8uslness Cfflce for
compensaLlon purposes and for Lmployee's llle (201)
8 Plrlng of Lmployees from oLher 8enedlcLlne Schools
ln accordance wlLh Lhe guldellnes seL by Lhe Mlsslonary 8enedlcLlne SlsLers
(M8S) ln 2004 and as duly conflrmed by Lhe A8S (AssoclaLlon of 8enedlcLlne
Schools)
a) A non 1eachlng ersonnel who Lransfers from one 8enedlcLlne aposLolaLe
Lo anoLher for Lhe same naLure of work ls also credlLed for all years of
servlce ln her prevlous 8enedlcLlne employmenL (1he servlce credlL ls
consldered only ln deLermlnlng Lhe enLry salary of Lhe new employee
wlLhouL pre[udlce Lo SSC's exlsLlng ranklng scheme) S1 SCPCLAS1lCA'S CCLLLCL MAnlLA
SLaff Manual
LmploymenL rocess and racLlces november 2006

b) 1enure ls based on Lhe acLual number of years of servlce ln Lhe presenL
aposLolaLe Servlce Award ls based on Lhe Lenure regardless of Lhe
number of years of servlce ln Lhe prevlous employmenL
C Plrlng of 8elaLlves

Plrlng of relaLlves of an employee up Lo Lhe flrsL and second degree ls
dlscouraged lurLhermore Lhe school does noL allow Lhe hlrlng of relaLlves of
employees ln Lhe buslness offlce of whaLever degree
u LmploymenL of rofesslonals/arLLlmers
1 School physlclans denLlsLs and lawyers are consldered reLalners and nC1
employees Lherefore Lhey are noL enLlLled Lo SSS hllhealLh and aglblg
beneflLs nor Lo separaLlon or reLlremenL pay
2 1hey musL be covered by a conLracL renewable every school year 8elow ls
a sample conLracL
8L1AlnL8'S CCn18AC1
?ou are hereby reLalned as a school _______________
(hyslclan or uenLlsL) for Lhe perlod of
_____________________ ?our reLalner's fee ls
_________________ lncluslve of vA1 whlch shall be sub[ecL
Lo 10 wlLhholdlng Lax ?our days/hours of work shall be
____________________
Slnce you are noL an employee of Lhe school you wlll noL
be covered by SSS hllhealLh and aglblg ?ou wlll noL be
enLlLled Lo 8eLlremenL pay or any of Lhe beneflLs normally
granLed Lo Lmployees
3 arLLlmers musL be covered by a conLracL renewable every semesLer or
school year
3 8ePlrlng
ln cases where a former employee has volunLarlly reslgned buL wlshes Lo be reemployed hls/her
appllcaLlon wlll be LreaLed as a new appllcanL sub[ecL Lo
Lhe usual preemploymenL procedures 1he school reserves Lhe opLlon Lo
deLermlne Lhe rank of such employee
l Plrlng 8aLes
All employees sLarL wlLh Lhe hlrlng raLe accordlng Lo classlflcaLlon and rank S1 SCPCLAS1lCA'S
CCLLLCL MAnlLA SLaff Manual
LmploymenL rocess and racLlces november 2006
lv C8lLn1A1lCn Cl nLW LMLC?LLS

urpose 1o famlllarlze Lhe new employee wlLh Lhe school pollcles and ln
order Lo galn hls/her goodwlll and respecL for Lhe school
ollcy All new employees of Lhe school musL be glven proper orlenLaLlon
before Lhey are allowed Lo sLarL worklng Lo ensure LhaL Lhey are
welcomed properly and orlenLed on Lhe seLup pollcles faclllLles and
rules ln Lhe company
rocedure
1 Cn Lhe flrsL day of work a new employee musL reporL Lo Lhe P8u Cfflce for
orlenLaLlon and accompllshmenL of necessary papers
2 1he P8u AssoclaLe prepares Lhe orlenLaLlon checkllsL and orlenLs Lhe
employee on Lhe organlzaLlonal seLup of Lhe school lLs pollcles beneflLs
rules and regulaLlons
3 AfLer orlenLaLlon by P8u AssoclaLe Lhe new employee shall be broughL Lo
her/hls unlL head
4 1he unlL/offlce head wlll lnLroduce Lhe new employee Lo Lhe oLher workers
and orlenL hlm/her abouL hls/her work and lnLernal rules and pollcles









rganized under PhiIippine Laws
1. SoIe Proprietorship is a business structure owned by an individual who has full control/authority of its own
and owns all the assets, personally owes and answers all liabilities or suffers all losses but enjoys all the profits
to the exclusion of others. A sole proprietorship must apply for a business name and be registered with the
Department of Trade and ndustry- National Capital Region (DT-NCR). n the provinces, application may be
filed with the extension offices of the DT.
2. Partnership- Under the Civil Code of the Philippines, a partnership is treated as juridical person, having a
separate legal personality from that of its members. Partnerships may either be general partnerships, where
the partners have unlimited liability for the debts and obligation of the partnership, or limited partnerships,
where one or more general partners have unlimited liability and the limited partners have liability only up to the
amount of their capital contributions. t consists of two (2) or more partners. A partnership with more than three
thousand pesos (P3,000.00) capital must register with Securities and Exchange Commission (SEC).
3. Corporation- are juridical persons established under the Corporation Code and regulated by the Securities
and Exchange Commission with a personality separate and distinct from that of its stockholders. The liability of
the shareholders of a corporation is limited to the amount of their share capital. t consists of at least five (5) to
fifteen (15) incorporators each of whom must hold at least one share and must be registered with the Securities
and Exchange Commission (SEC). Minimum paid up capital: five thousand pesos (P5,000.00). A corporation
can either be stock or non-stock company regardless of nationality. Such company, if 60% Filipino-40%
foreign-owned, is considered a Filipino corporation; f more than 40% foreign-owned, it is considered a
domestic foreign- owned corporation.
- Stock Corporation
This is a corporation with capital stock divided into shares and authorized to distribute to the holders of such shares
dividends or allotments of the surplus profits on the basis of the shares held.
- Non-stock Corporation
t is a corporation organized principally for public purposes such as charitable, educational, cultural or similar
purposes and does not issue shares of stock to its members.
Organized under Foreign Laws
1. Branch Office is a foreign corporation organized and existing under foreign laws that carries out business
activities of the head office and derives income from the host country. t is required to put up a minimum paid
up capital of US$200,000.00, which can be reduced to US$100,000.00 if (a) activity involves advanced
technology, or (b) company employs at least 50 direct employees. Registration with the SEC is mandatory.
2. Representative Office - is a foreign corporation organized and existing under foreign laws. t does not derive
income from the host country and is fully subsidized by its head office. t deals directly with clients of the parent
company as it undertakes such activities as information dissemination, acts as a communication center and
promotes company products, as well as quality control of products for export. t is required to have an initial
minimum inward remittance in the amount of US$30,000.00 to cover its operating expenses and must be
registered with SEC. Under RA 8756, any multinational company may establish an RHQ or ROHQ as long as
they are existing under laws other than the Philippines, with branches, affiliates and subsidiaries in the Asia
Pacific Region and other foreign markets.
3. RegionaI Headquarters (RHQs) An RHQ undertakes activities that shall be limited to acting as supervisory,
communication and coordinating center for its subsidiaries, affiliates and branches in the Asia-Pacific region. t
acts as an administrative branch of a multinational company engaged in international trade. t does not derive
income from sources within the Philippines and does not participate in any manner in the management of any
subsidiary or branch office it might have in the Philippines. Required capital: US$50,000.00 annually to cover
operating expenses.
4. RegionaI Operating Headquarters (ROHQs) An ROHQ performs the following qualifying services to its
affiliates, subsidiaries, and branches in the Philippines.
- General administration and planning
- Business planning and coordination
- Sourcing/procurement of raw materials components Corporate finance advisory
services
- Marketing control and sales promotion
- Training and personnel management
- Logistic services
- Research and development services and product development
- Technical support and communications
- Business development
- Derives income in the Philippines
- Required capital: US$200,000.00 one time remittance.




1ypes of employmenL

Dear friend

Employments are classified into two types

1. Full Time Employment

2. Part Time Employment


Full Time Employment

An employee is obliged to work only for one organisation.It could be for 8 hrs or
6 hrs a dayor even less or more. Underlining principle is he can not have any
other avocation. Eg All regular employees


Part Time Employment

In part time employment, an employee is not obliged to have only one
employemnt or one avocation.
eg Students working, Drivers working for two places Doctors working for two
hospitals or two organisations


Now Employees are classified into different categories

1.Temporary
2.Probationer
3 Confirmed or permanent
4.casual

You can have all these categories of employees in Full Time employment or part
Time employment

1 Temporary
An employee engaged on a temporary basi for a fixed period of time . he may
not be eligible for all the benefits
eg Employees taken against leave vacancies
Employees taken to complete a project and specified so
2. Probationer

he is taken on a permanent basi against a permkanent vacancy but is under
observation The period of probation is fixed from 6 months to one year

3.Permanent/Confirmed

Permanent employee is confirmed in the rolls of the compaqny and is eligible for
all benefuts specified. The organisation is obliged to allot him work on a
continuous basis . Even if no work is provided, the organisation has to make
regular payments

4 Casual

These employees or taken purely for a job which is purely casual in nature
egConstruction work Or developement of just one job


There are legal definitions available for all

But the principle remains the same

Siva