Strictly Confidential

To :
From :
Subject/Re : Notice to Explain / Administrative Hearing
Date :
CC : 201 File

This is in connection with the Notice to Explain issued to you last 9

January 2015 (pls verify date) regarding the information report which the
Company received from OIC Romano Walter [“OIC Walter”]. According to
his report, a copy of which is attached in this memorandum, unused and
unopened synthetic engine oil, long life coolant, oil filter, etc were found
hidden in different areas of Peak Motors Jose Abad Santos Building and not
in the storage room where they are supposed to be safely kept. As you may
be aware of, this may lead to these items’ losses as had happened in the past
which caused financial damage to the Company.

To avoid a repetition of such incidents, the Company has repeatedly

reminded you as leadman/technician (as the case may be) to place/store said
items in their proper storage area. Nevertheless, said items were still found
hidden in other areas of the building, prompting speculation that they were
intentionally concealed to be taken out of the building for personal gain.

Please bear in mind that only the leadman and technicians have access
to these items (pls verify). We are, thus, puzzled how these items were found
in other areas.

The above charges, if proven true, may be tantamount to serious

misconduct, willful disobedience, gross and habitual neglect of duties and
fraud, which are grounds for dismissal under the Labor Code, to wit:

ART. 282. TERMINATION BY EMPLOYER – An

employer may terminate an employee for any of the following
causes:

(a) Serious misconduct and willful disobedience by

the employee of the lawful orders of his employer or
representative in connection with his work;

(b) Gross and habitual neglect by the employee of

duties;

(c) Fraud or willful breach of the trust reposed in him

by his employer or duly authorized representative;
 ....

You are hereby directed to explain in writing within five (5) days
upon receipt of this notice why no administrative sanction should be
imposed against you for the commission of the alleged offenses.

You are likewise ordered to attend an administrative hearing thereon

to be conducted on _______________ at ___________ in the
morning/afternoon at ____________________________________. During
this Administrative Hearing, you may be represented by a counsel of your
choice, if you so desire.

Failure to file your written explanation and/or attend the

administrative hearing will be construed as a waiver of your right to be
further heard and management shall take appropriate action on the matter as
may be warranted by the circumstances.

Please be guided accordingly.

[Client: insert signatures of concerned company officer]