EMPLOYMENT CONTRACT

This Contract of Employment (the “CONTRACT”) is entered into this 4th day of
May 2024 by and between:

FRANCISCO S. MONTOYA, of legal age, single, Filipino, and resident of

Brgy. San Jose Street, Purok 3, Palo, Leyte 6501 and hereinafter referred to as the
“EMPLOYER”,

-and-

EDILINDA G. FAMYof legal age, single, Filipino, and a resident of #25 Rizal
Avenue, Brgy. Libertad, Palo, Leyte 6501 and hereinafter referred to as the
“EMPLOYEE”,

The Employer and Employee are collectively referred to as “PARTIES”, and

individually referred to as “PARTY” to this Contract.

WITNESSETH THAT:

A. The Employer is the owner of ESTELLAR’S BAKE & BITE, a cakeshop located
at Barangay Salvador, Municipality of Tanauan, Leyte; and

B. The Employee has represented himself/herself to the Employer to be qualified for

the position indicated below and desires to be employed by the Employer during
the term of Employment and under the terms and conditions of this Contract.

NOW, THEREFORE, for and in consideration of the foregoing premises, the

Parties hereby agree as follows:

1. JOB TITLE AND DESCRIPTION

The Employee is hereby hired for the position of Chief Baker (the
“EMPLOYMENT”). A more specific description of the duties, responsibilities and
work hours of the Employee is outlined in Annex “A” and made an integral part of this
Contract. The description of the duties, responsibilities and work hours of the Employee
may change according to the needs of the Employer. Any change will also form an
integral part of this Contract as if agreed upon at the time of the execution of this
Contract.

2. PROBATIONARY PERIOD

Notwithstanding the preceding section, the Employee is first employed on a

probationary status for a period of six (6) months from the date of this Contract subject
to the terms and conditions of this Contract (the “PROBATIONARY PERIOD”)
unless sooner terminated by the Employer. This employment is subject to the standards
for regularization, which the Employee hereby acknowledges to be aware of. These
standards for regularization are outlined in Annex “B” and are made an integral part of
this Contract. The Employee also agrees to be governed by other rules and regulations,
requirements as well as policies to be issued by the Employer.

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3. PROBATIONARY EVALUATION

The Employer will evaluate on a monthly basis the Employee’s performance during
the Probationary Period. The Evaluation will be made by the Employer himself or such
other representative/s appointed by the Employer. The evaluation of the Employee may
or may not be made in writing. The employee hereby agrees that it is the prerogative of
the Employer to evaluate monthly her/his performance and decide whether s/he is
qualified to continue as an Employee after each monthly performance evaluation. If
the Employee fails to meet the standards set forth by the Employer, then the Employer
may terminate this Contract by giving the Employee notice within a reasonable period
before the effective date of the termination.

4. COMPENSATION AND OTHER BENEFITS

The Employee will be paid a basic monthly wage of TWENTY THOUSAND

PESOS ONLY (PHP20,000.00)

The Employee’s salary shall be paid in cash, from which shall be deducted by the
Employer to the extent applicable, the Employee’s social security contributions,
withholding taxes and other mandatory or agreed deductions. The Employee shall be
responsible for the filing and payment of his/her Philippine income taxes.

Notwithstanding any contrary provision contained in this Contract, it is hereby

expressly agreed that any bonus, premium, commission, gratuity or other payment by
the Employer to the Employee in excess of the amounts specified in this section shall
not be considered salary which the Employee is contractually entitled to, but as a
gratuity which the Employer reserves the right to discontinue, modify or revise at any
time at its sole discretion.

The compensation package mentioned in this section shall represent all that is due and
demandable under this Contract. Notwithstanding incidents when Employer granted
benefits, bonuses or allowances other than those defined in this Contract, such
incidents are not to be considered as an established practice nor precedent and shall
not form part of the benefits, bonuses and allowances due and demandable under this
Contract.

5. ANNUAL LEAVE

Upon regularization and after completion of one (1) year of service, the Employee will
be entitled to five (5) days of service incentive leave with pay per calendar year of
service. Unused service incentive leave of employee in excess of five (5) days cannot
be converted to its cash equivalent.

6. ASSIGNMENT OF TASKS

Upon signing of this Contract, the Employee recognizes the right and prerogative of the
Employer to, without limitation, re-assign and transfer the Employee to perform such
other tasks within the business as he may deem necessary and beneficial to his
business operations.

7. CONDUCT OF DISCIPLINE

All existing as well as future rules and regulations, requirements and policies issued by
the Employer are hereby deemed incorporated with this Contract. The Employee
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recognizes that by signing this Contract, s/he shall be bound by all such rules and
regulations, requirements and policies that Employer may issue from time to time.

8. DISCIPLINARY MEASURES

Upon signing of this Contract, Employee hereby recognizes the right of Employer to
impose disciplinary measures, actions or sanctions, which may include, but are not
limited to, termination of employment, suspension/s, fine/s, salary deduction/s,
allowance reduction/s, withdrawal of benefits, loss of privileges, for any and all
infraction, act or omission, irrespective of whether such infraction, act or omission
constitutes a ground for termination or suspension.

9. BUSINESS CODE OF CONDUCT

Upon signing of this Contract, the Employee agrees to terminate all other business
relationships or concerns that s/he may be personally involved with.

The Employee acknowledges being aware of the Code of Business Conduct of the
Employer and all rules and regulations, requirements and policies issued by the
Employer concerning the employment of the Employee with it. The Employee
acknowledges that it is her/his duty and responsibility to be aware of the Code of
Conduct of the Employer as well as the rules and regulations, requirements and policies
regarding her/his employment and to fully comply with all these in good faith.

10. GROUNDS FOR TERMINATION OF REGULAR EMPLOYEES

Aside from the just and authorized causes for the termination of employment
enumerated in the Labor Code of the Philippines, as amended, the following acts
and/or omissions of a regular Employee shall, without limitation, similarly constitute
just and authorized grounds for the termination of employment by Employer and/or
grounds for the Employer to impose disciplinary measures on the regular Employee:

a. Intentional or unintentional violation of the policies, requirements, rules and

regulations of the Employer;
b. Commission of an act which causes loss of confidence on the part of the
Employer with regard to the Employee’s ability to satisfactorily perform the
duties and requirements of her/his employment;
c. Serious misuse or abuse of the Employer’s property, facilities and/or resources;
d. Commission of an act which may constitute a crime or offense against
management, a supervisor, co-employee or the Employer himself;

e. Failure to attain a satisfactory grade in two (2) consecutive performance

evaluations made by the Employer;
f. Intentional or unintentional disregard of the disciplinary measures or sanctions
imposed by the Employer;
g. Directly or indirectly participating, engaging and/or entering into personal
business arrangement involving products and/or services of Employer or
products and/or services of the competitors of the Employer;
h. Intentional or unintentional violation or breach of confidentiality of information
belonging to the Employer;
i. Failure to meet the standards for regularization; and
j. Other similar acts, omissions, and/or event.

This Contract may be terminated by the Employer for any of the foregoing grounds

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by serving the regular Employee concerned a notice of its intention to terminate her/his
employment and the particular acts or omission constituting the ground for his/her
dismissal. The regular Employee may answer the charges against her/him within
seventy-two (72) hours from receipt of such notice.

If the regular Employee refuses to acknowledge receipt of the notice, service on the
said regular Employee is completed by giving her/him a copy of the notice and
stating that s/he refused to receive the notice when served.

The Employer shall afford the regular Employee a hearing or conference where said
regular Employee may defend herself/himself. After giving the regular Employee an
opportunity to be heard and defend himself/herself, Employer shall serve Employee a
notice of its decision to terminate her/his employment.

In the event that the regular Employee wishes to terminate this Contract for any
reason, s/he must give thirty (30) days written notice to the Employer prior to the
effective date of termination.

Upon termination of this Employment, the Employee shall promptly account for,
return, and deliver to the Employer all company property that may have been assigned
or entrusted to her/his care or custody.

Should the Employee have unpaid or pending obligations to the Employer, monetary
or otherwise, upon termination of employment for any reason or cause, the Employee
hereby expressly agrees and authorizes the Employer to make necessary deductions
from the salary, bonuses, or other benefits that may be due to the Employee to effect
settlement or payment of her/his unpaid or pending obligations. This is without
prejudice to the right of the Employer to effect settlement or payment of the
obligations of the Employee through other legal means and remedies should the due
salary, bonuses or benefits of the Employee be insufficient to cover her/his unpaid or
pending obligations.

11. CONFIDENTIALITY

It is the responsibility of the Employee to ensure that no information gained by virtue

of her/his employment with the Employer is disclosed to outsiders unless the
disclosure is for necessary business purposes and pursuant to properly approved and
written agreements. Confidential or proprietary information of others should not be
accepted by the Employee on behalf of the Employer unless it is necessary and
pursuant to the same sort of written agreement.

“Confidential Information” is any information belonging to the Employer that could

be used by people outside the Employer or to the detriment of the Employer.
Appropriate steps should be taken by the Employee in handling all business
information of the Employer in order to minimize the possibility of unauthorized
disclosure.

12. RESTRICTIVE COVENANT

During the term of this Contract, the Employee shall devote her/his best efforts and
her/his full/entire time to advance the interests of the Employer, and s/he shall not,
directly or indirectly be engaged in or be concerned with any other commercial duties
or pursuits whatsoever especially those that are in conflict or in competition with the
business of the Employer.

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 13. ENTIRE AGREEMENT

This Contract represents the entire agreement between the Employer and the
Employee and supersedes all previous verbal or written communications,
representations or agreements between the Parties.

14. LIQUIDATED DAMAGES CLAUSE

In case of a breach of any of the undertakings set forth in this Contract, the Employee
shall owe to the Employer, without any summons nor notice of default nor court
decree being required, liquidated damages equal to the total remuneration paid by the
Employer to the Employee during the last six (6) months of the Employee’s
employment with the Employer, plus attorney’s fees, costs of suit/litigation, all fees
for legal counsel and any other related expenses, and without prejudice to the right of
Employer to prove a higher damage/s, and to obtain the cessation of the damage and
compensation by any other legal means and remedies.

IN WITNESS WHEREOF, the Parties have executed this Contract as of the

date first mentioned herein.

This Contract represents the entire agreement between the Employer and the
Employee.

FRANCISCO S. MONTOYA EDILINDA G. FAMY

Employer Employee
ID No.: 0111-9248521 ID No.: 0111-3487534
Issued By: SSS Issued By: SSS
Issued On: January 10, 2019 Issued On: April 26, 2010

SIGNED IN THE PRESENCE OF:

ENRICO L. GARCIA MELENCIO T. DUMA

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ACKNOWLEDGMENT

Republic of the Philippines )

Province of Leyte ) S.S
Municipality of Palo )
x-------------------------------------x

BEFORE ME, personally appeared the herein parties, all known to me and to me
known to be the same persons who executed the foregoing instrument, and who
acknowledged to me that the same is their free and voluntary act and deed. This
instrument, consisting of Seven (7) pages, including the page on which this
acknowledgement is written, has been signed on the left margin of each and every page
thereof by the parties hereto and their witnesses, and sealed with my notarial seal.

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 IN WITNESS WHEREOF, I have hereunto affixed my notarial seal, on the day,
year, and place above written.

Doc. No.: 6;
Page No.: 3;
Book No.: I
Series of 2024

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ANNEX “A”
JOB DESCRIPTION AND RESPONSIBILITIES

Normal working hours: 8AM – 5PM, Monday to Friday

RESPONSIBILITIES AND DUTIES:

1. Abide by and perform to the best of her/his abilities all functions, duties and
responsibilities to be assigned by the Employer in due course;

2. Comply with the rules and regulations, code of conduct, requirements and
policies, orders and instructions given from time to time by the Employer
through its authorized representative/s;

3. Will not disclose any confidential information in respect of the affairs of the
Employer to any unauthorized person;
Perform any other additional duties as assigned by the Employer or his representative/s
from time to time either through direct written order or by verbal assignment.

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ANNEX “B”
STANDARDS FOR REGULAR EMPLOYMENT

ATTENDANCE AND PUNCTUALITY

 The Employee must be able to strictly observe scheduled workdays, work hours
and break periods. Employee must be able to report to work regularly and on
time. Frequent absences, tardiness or under timing is strictly prohibited.

JOB COMPETENCE
 The Employee must prove her/his knowledge and understanding of the nature,
details and demands of the job. Employee must be able to demonstrate ease in
learning the rudiments of her/his job and in understanding instructions, rules
and regulations, requirements and policies.

WORK QUALITY
 The Employee must be able to prove to the satisfaction of the Employer
advance skills, initiative and competence in the duties and responsibilities
detailed and listed in her/his Contract of Employment.

ATTITUDE
 The Employee must demonstrate sincere interest and enthusiasm in her/his
job. The Employee must show a positive outlook towards the Employer’s
business, activities, beliefs and concerns. The Employee must show a
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 willingness to learn and to overcome job difficulties. The Employee must be
able to perform her/his job with a positive attitude even while working under
pressure/stress. This includes having the quality of initiative, responsibility
and foresight.

DISCIPLINE
 The Employee must be able to comply with the rules and regulations,
requirements, protocol, company policies and practices of the Employer. The
Employee must be able to show maturity in accepting criticisms and remarks
regarding her/his work and attitude.

ATTITUDE TOWARDS SUPERIORS AND CO-EMPLOYEES/WORKERS

 The Employee must be able to show respect to her/his superiors, co-
employees/workers and others in general. The Employee must be able to work
well with others. This includes the ability to cooperate and to work as part of a
team.

EXTERNAL APPEARANCE
 The Employee must keep herself/himself neat, presentable and well-groomed
at all times. The Employee must carry herself/himself in a dignified and
respectful manner.

Note: Employer may impose additional/other conditions for regular employment.

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