MEMORANDUM

Date : March 1, 2023

To : All Concern

From : Management

Subject : Policy – Cash Advance / Loans

This is to inform all concerned that the Company is implementing Company policy concerning Cash
Advance/Loans being availed of by our regular/fixed term employees. The provisions under this policy
statement state that.

“Obtaining loan from the Company is not a privilege of an employee. It’s a loan privilege. Therefore, it is
not a matter of employee's right. A privilege is a conditional situation, an advantage or favor given to an
employee by the Company. Thus, the Company may or may not approve the request for loan of any
employee. “

“(On Policy Change) Nothing in this policy is permanent. The Company reserves the right to issue
additional rules, regulations, and policies, as well as delete.”

“(On Reasons Allowed for Loans) The Company is exercising its prerogative to control and manage
effectively the loans of the employees. In this policy, there are only three (3) reasons allowed to grant
the loan, namely: Emergency needs ,Non-Emergency needs and educational needs.”

In line with ensuring proper loan management, the Management has approved the following guidelines/
policy which will be effective March 1, 2023

1. That the maximum, loanable amount of P3,000.00 shalt now apply to the Contractual employees
and Regular employees with less than three (3) years of regular employment.
2. That this change shall apply to dash advances loans for (emergency and non-emergency) reasons
only for educational reasons, the existing maximum loanable amount equivalent to one month
salary still applies to regular employees with less than three (3) years of regular service.
3. That this policy regular employees who have at least three (3) years or more service can borrow a
maximum amount equivalent to one (1) month salary stays.

LOANS
1. POLICY STATEMENT

A. LOAN AVAILMENT - AN EMPLOYEE'S PRIVILEGE

Obtaining loan from the company is one of the privileges of an employee. A loan privilege
therefore is not a matter of employee's right. A privilege is a conditional situation, an advantage
or favor given to an employee by the Company. Thus, the Company may or may not approve the
request for loan of any employee.

B. POLICY CHANGE

Nothing in this policy is permanent. The Company reserves the right to issue additional rules, regulations,
and policies, as well as delete.

C. REASONS ALLOWED TO GRANT THE LOAN

The Company is exercising it prerogative to control and manage effectively the loans of the
employees. In this policy, there are only three (3) reasons allowed to grant the loan, namely:

1. Emergency needs

2. Non-emergency needs and

3. Educational needs

The definition of the above reasons is clearly described in the definition of terms.

The Company exercises leniency in granting loans. You are to take note that numbers 1 and 3 are
clearly and specifically defined while item no. 2 is not. It is purposely defined in this way because the
officer's judgment is important here. He is not only to consider the reason of the loan but also other
 factors such as, service records, attendance/performance record and questions such as, is he/she a
perpetual borrower? Is the reason for the loan valid and not been used before? The approval of the
loan (that falls under item no. 2), does not depend solely on the reason given but also rests upon the
judgment of the officer.

DEFINITION OF TERMS

The Company refers to RCelis Promotion Products Corp. to its Officers and Directors.

Privilege - is defined herein as an advantage or favor only certain employees can obtain.

Right of Employee - Is defined herein as employee's rights mandated by law.

Qualified Employee - An employee who is obtaining a loan and has met all the requirements of the
company.

Employee - Is either a regular/ fixed term / project employee.

Regular employee - Is an employee who has a permanent appointment.

Fixed Term Employee - Is an employee whose appointment is co-terminus or ends with the duration of
10 months contract.

Project Employee - Is an employee whose appointment is co-terminus or ends with the duration of the
sales project he or she is assigned, usually three (3) months. (Seasonal).

Cash Advance - It is a loan without interest charge. A cash advance is without interest charge when such
amount is fully deducted from the employee's salary on the nearest payday.

CAF - Cash Advance Form

Educational Loan - It is an interest-bearing loan for regular employee to meet his or her educational
needs and that of his or her immediate family.

Immediate family - if married, it includes the spouse, children, parents and if unmarried, brothers, sisters
(of same parents) and parents.

Emergency needs - It refers to a situation that needs immediate action such as expenses for
hospitalization, medical, surgical, doctors/ consultation fees.

Non-emergency needs - may refer to any situation that may not need immediate attention but if nothing
is done or is left unattended, may greatly affect the working efficiency of the employee. The judgment of
which rests upon the officer who is approving the loan.

PROCESSING FEE

A processing fee of FIFTY PESOS (P50) shall be deducted from the proceeds of the employee loan. Such
loan exceeds Five Hundred Pesos.

CASH ADVANCE POLICY / GUIDELINE

Cash Advances for employee and staff shall be allowed. Provided that this are only and does not exceed from
the approved budget allotted, which is Three thousand pesos (Php 3,000.00) per employee/staff. The cash
advance may be requested at least one week before disbursements to provide ample time for the processing
of the required documents. Accounting Division will record the cash advance and prepare the necessary
voucher. An Acknowledgment Receipt shall also be processed and be filed for record purposes.

1. Agreement and Authorization statement to be included in the CA form to be signed by the

recommending manager;

2. Before signing the CA form, Managers should check first with Accounting Dept. on loan balances and
take-home pay of his/her staff requesting for cash advance;

3. For Fixed Term/Contractual staff, CA request will be approved effective two months before the end
date of their contract;

4. For Fixed Term/Contractual and Regular staffs with less than 3 years of service, a moratorium period
will be observed wherein CA requests will not be processed from the months of November, December
until January,

5. For resigned or separated staffs with outstanding CA balances, the Company shall pay in cash their last
salary for purposes of deducting the full payment of their CA. Issued by HRD/Accounting.

COVERED EMPLOYEES AND CRITERIA

The policy covers the following employees:

A. Regular employees - are entitled to obtain cash advance and educational loan

B. Project/fixed term employee is entitled to cash, advance and limited to 3,000.00 pesos. Provided
he/she has worked for the Company for at least three (3) months and the loan has been guaranteed by
his/her immediate Manager.

It means that, it is the manager's responsibility to pay the loan balance should the employee failed to
pay. The criteria are the following.

Cash advance, the loan must be for emergency and non-emergency needs.

Cash advance for non-emergency needs will only be considered if there is a written recommendation and
guarantee from the immediate manager. In the case of newly hired employee and an employee who has
not worked for at least 3 months, the immediate manager can recommend in writing to the responsible
officer the loan request for approval.

Educational loan, the loan must be for educational needs of the employee or his/her immediate family.

GUIDELINES

A. Effectivity date - Immediately

B. Cash Advance Form (CAF) - to be properly filled up by the employee as to the following information;

 The date prepared.

 The loan amount to be obtained.
 The reason (s) for loan and whether it is cash advance or educational.
 The signature.

C Requirements

1. Cash advance any of the following must be attached to CAP prescription, medical/ hospital bills,
and consultation/ recommendation sheet of a licensed doctor! The CAF is sufficient for cash
advance for expenses to be incurred in the transfer of store assignment as long as it is
recommended and guaranteed by the sales manager
2. Educational loan - the following must be attached to CAF:
a) Photocopy of the Birth Certificate of the dependent, and
b) Any of the following must be submitted.
Original Copy of School Certification of Fees or an
Original Copy of Certification of School Registrar that the dependent is an enrolling student or a
photocopy of the latest progress report card of the dependent who is in grade level from
Elementary to College a photocopy of the latest registration card of the dependent.
3. Any request with incomplete requirements will not be processed.

D PROCEDURES

 The employee can secure CAF from

a) Personnel Dept.
b) Immediate manager.
 He must properly and completely fill up the CAF. He submits the completed CAF to Personnel
Dept, which shall stamp received on date on the CAF.
 Personnel Department checks and indicates the details of the employee's status of employment
in the request. If the reason of request does not fall within the company criteria and
requirements, the CAF will not be processed.
 Personnel Dept. forwards the CAF to Acct’g – Acct’g indicates the details as to "no loan", with
loan and balance of_______”The details must include all loans of any kind such as SSS,
HDMI/Pag-Ibig, then CAF goes back to Personnel Dept.
 Personnel Dept. forwards the CAP to the manager for his notation, recommendation, and
guarantee, whichever is applicable. Personnel Dept. forwards the CAF to GM for assessment and
final approval from Boss, and in his absence, to Christian Labang. Then, Personnel Dept. submits
CAF either to Acct’g if check payment or to petty cash custodian if cash payment. For educational
loan, the employee need not come to the office to file his request. He can send his request,
properly filled-out CAF with the complete requirements, to his immediate supervisor. He can
follow-up his request to Personnel Dept.

Should you have any questions or need clarification, kindly contact the HR and /or accounting
department.
Approved by:

Aileene-Mae S. Celis Ricky B. Celis Orlando M. Nazario

Chairwoman & CEO President & COO VP & General Manager

RCELIS PROMTION PRODUCTS CORP.

PH9-B ALMANZA METROPILIS CONDOMINIUM
ALMANZA UNO, LASPINAS CITY