Outsource Otter Employee Handbook

Your Partner in Compliant and Efficient Staffing Solutions in the Philippines

Introduction

Welcome to Outsource Otter - your trusted bridge to the strength of the Philippine labor market.

The following sections offer a simple and complete overview of our various policies and procedures to help make your experience seamless and successful.

 

Section 1: Compensation and Payroll

At Outsource Otter, we ensure our compensation practices are transparent, timely, and compliant with Philippine labor laws. The specifics of those procedures are listed below:

  • Pay Structure: We engage employees on a salaried basis, ensuring consistent and stable compensation. We do not support part time or hourly employment arrangements.
  • Pay Schedule: Salaries are paid bi-monthly, on the 15th and end of month in accordinace with Philippino law.
  • Pay Raises: Clients are able to give their staff raises at their convenience without cost or additional margin assigned by Outsource Otter. Simply let your Otter point of contact know the amount and start date of raise and it will be completed on next appropriate paycheck. While not required, we typically suggest clients give raises at the same time as their US staff and we are happy to act as resource in advising amount and frequency of this additional compensation.
  • Bonus Policy: Bonuses can be issued anytime, without additional fees from us. Simply notify your Outsource Otter point of contact the amount and our team will handle the rest. OO charges no margin on these payments.

 

Section 2A: Monthly Payroll Process

Our payroll services are a reflection of our commitment to operational excellence.

  • Payroll Register Generation: We meticulously compute salaries, withhold the correct payroll taxes, and manage deductions for SSS, Philhealth, and HDMF contributions. If ever interested in these reports simply reach out to your Otter point of contact and we will gladly share with you any time.
  • Government Compliance: Monthly remittances and reports are diligently prepared for SSS, Philhealth, HDMF, and BIR, including the yearly issuance of BIR Form # 2316 for each employee.
  • Bonuses: All bonuses are processed through our payroll system, with no additional fees. Simply notify your Otter point of contact with the amount to bonus and it will be added to the next paycheck.
  • 13th Month Pay - the Philippine government mandates each employee receive an extra month of pay each December. To keep things simple, Otter clients will be billed each month for 1/12th of a full months pay. These funds will then be issued directly to the employee at year end.

Section 2B: Day to Day Management

You can think of Outsource Otter as the rails required to run your overseas train. We handle all the recruiting, provide the entity and expertise to ensure all local labor laws and taxes are followed, assume local liability, and provide market expertise and advice when unique situations arise,

In addition, as part of our job to provide the rails we ensure your hired staff has all the essentials to do their job. Reliable internet, computer, quiet work station, etc.

What you do with those rails and the day to day mangement of your staff is just like any American employee - fully up to you. We see the greatest success with clients that choose to treat their overseas staff no different than their remote American based staff.

 

Section 3: Leave Policies and Paid Time Off (PTO)

Understanding PTO Accumulation and Usage Our Paid Time Off (PTO) program is integral to our commitment to work-life balance. Each employee is entitled to a minimum of 8 days of PTO annually, which accrue at a rate proportionate to the length of service. PTO can be used for vacation, personal time off, or sickness, and must be scheduled in advance to ensure proper staffing levels are maintained. PTO does not carry forward to the following year.

Outsource Otter will monitor at a high level to ensure these minimum 8 days are honored but specific detailed reporting is the resonsibility of the client. We strongly recommend matching your PTO policy currently in place with your US based staff to that of your overseas employees to ensure a cohesive and collaborative culture and using whatever current monitoring procedure/process is currently in place to track.

Extended PTO Options We recognize that there are times when 8 days may not suffice due to unforeseen circumstances or life events. In such instances, we offer employees the option to take unpaid leave beyond their accrued PTO. Should an employee opt for unpaid leave, Outsource Otter provides a seamless process where these additional days can be accounted for by adjusting the invoice sent to the client. This policy is communicated to employees upon hire and outlined in their employment contract to ensure clear understanding of the terms and conditions.

Maternity Leave Inclusivity and Support Our maternity leave policy follows Philippino law offering 105 days of fully-paid leave for birth or miscarriage, with the possibility to extend for an additional 30 days unpaid. This leave is available to all female employees, regardless of marital status, and can be used in a continuous span or in increments, as medically advised. Solo parents are entitled to an additional 15 days of paid leave, recognizing the unique challenges they may face.

Paternity Leave for Family Bonding We support new fathers with a fully-paid paternity leave of 7 days, available for the first four deliveries or miscarriages of the legitimate spouse. This leave can be availed to provide meaningful support during significant family moments, ensuring that employees can prioritize their family responsibilities without the worry of lost income.

Special Leave Considerations At Outsource Otter, we understand that life presents many challenges and occasions. Special leave types, such as bereavement leave, emergency leave, and time off for significant personal milestones, are assessed and granted on a case-by-case basis. We strive to accommodate these needs with compassion and flexibility, reflecting our respect for the employee's well-being.

Sick Leave Policy

Objective: Outsource Otter values the health and well-being of our employees. Our Sick Leave Policy is designed to provide necessary paid time off for employees when they are unable to work due to personal illness, ensuring they can focus on recovery without the concern of lost income.

Eligibility: All full-time employees of Outsource Otter are eligible for sick leave benefits from the first day of employment.

Entitlement: Employees are entitled to use up to 8 days of their PTO for sick leave. These days are granted for the purposes of recovery from illness or medical treatment. Unused sick leave does not carry over to the next year and is not compensated if unused by year-end.

Procedure:

  1. Notification: Employees must inform their direct supervisor as soon as possible, ideally before their work shift begins, if they are unable to work due to illness. Continuous communication is required if the illness extends beyond one day.
  2. Medical Certification: A medical certificate is required for sick leave lasting three consecutive days or more. The certificate should verify the nature of the illness and the expected recovery period. For planned medical treatments, employees are required to notify their supervisor and provide documentation in advance.
  3. Return to Work: After an absence due to a contagious or serious illness, a fitness-for-work certificate from a healthcare provider may be necessary to ensure the employee’s readiness to return to work and the safety of other staff members.

Compensation: Sick leave is compensated at the employee's regular rate of pay and will not impact other employment benefits.

Confidentiality: All health-related information provided as part of sick leave requests will be treated with the utmost confidentiality and managed according to applicable privacy laws.

Policy Abuse: Misuse of the sick leave policy, such as falsification of medical certificates or using sick leave for non-illness-related purposes, will be subject to disciplinary action, potentially resulting in termination of employment.

Policy Review: This policy will be reviewed periodically to ensure its effectiveness and alignment with current health standards and legislative requirements.

 

Section 4: Holiday

At Outsource Otter, we recognize the importance of national holidays in providing our employees with time for rest, recreation, and cultural observance. In accordance with Philippine law, we observe all officially declared regular and special (non-working) holidays.

Regular Holidays: These holidays are observed annually and are paid days off for all employees:

  • New Year's Day: January 1
  • Araw ng Kagitingan (Day of Valor): April 9
  • Maundy Thursday: Date varies
  • Good Friday: Date varies
  • Labor Day: May 1
  • Independence Day: June 12
  • National Heroes Day: Last Monday of August
  • Bonifacio Day: November 30
  • Christmas Day: December 25
  • Rizal Day: December 30

Special (Non-Working) Days: These days are also recognized as holidays and are paid days off.

  • Chinese New Year: Date varies
  • EDSA People Power Revolution Anniversary: February 25
  • Black Saturday: Date varies
  • Ninoy Aquino Day: August 21
  • All Saints’ Day: November 1
  • All Souls’ Day: November 2
  • Christmas Eve: December 24
  • New Year's Eve: December 31
  • Eidul Fitr: Date varies
  • Eidul Adha: Date varies

The dates for movable holidays such as Eidul Fitr and Eidul Adha are determined in accordance with the Islamic calendar and are officially declared by the government each year.

Policy Details: Employees are entitled to paid time off on these holidays. Should an employee be required to work on a regular or special holiday due to operational demands, they will be compensated according to Philippine labor laws, at 2x their standard day rate.

We encourage all employees to use these days for personal rest and to celebrate significant cultural and historical events alongside their communities and families.

 

Section 5: Comprehensive Benefits Package

Overview of Benefits and Contributions At Outsource Otter, we are dedicated to providing a comprehensive benefits package that ensures the welfare of our employees and their families and meets all local requirements. Our package is designed to support a wide range of personal and financial needs, thereby enhancing job satisfaction and employee retention.

Government-Mandated Benefits We facilitate the enrollment and management of mandatory government benefits, ensuring compliance with Philippine laws and offering robust support for our employees:

 

  1. Social Security System (SSS) Contributions:

    • The SSS provides a safety net for employees covering retirement, disability, maternity, sickness, and death. Contributing to the SSS not only ensures employees are covered against these risks but also aids in building a secure future.
    • Contribution Rates: Total contributions to SSS are approximately 15% of the monthly salary, of which roughly 9% is the employer’s responsibility and 6% is contributed by the employee.

  2. PhilHealth Insurance:

    • As the national health insurance provider, PhilHealth is critical in ensuring that all employees have access to necessary medical care without undue financial burden. Coverage includes inpatient and outpatient care, major surgeries, and maternity care.
    • Contribution Rates: Combined contributions to PhilHealth amount to about 5.5% of the monthly salary, split between the employer and the employee.

  3. Pag-IBIG Fund (HDMF):

    • The Home Development Mutual Fund provides benefits related to affordable housing loans, savings programs, and loans for personal emergencies. It is an essential element in financial planning and securing employee welfare.
    • Contribution Rates: Total monthly contributions are approximately 2.5% of the employee’s salary, divided evenly between the employer and the employee.

 

Tax Withholding: Withholding tax on income is an essential aspect of our payroll process. Roughly 9% of an employee's monthly income is withheld as part of this mandatory tax deduction, which is then remitted to the Bureau of Internal Revenue (BIR).

Outsource Otter’s Contribution Initiative Understanding the financial burden that these contributions can impose on employees and the added complexity, Outsource Otter has taken a proactive approach by covering both the employer and employee portions of these contributions. This significantly enhances the take-home pay of our employees and greatly simplifying financial planning for all involved.

Continuous Benefits Review We regularly review our benefits offerings to ensure they remain competitive and responsive to the changing needs of our employees. This ongoing assessment allows us to adapt and evolve our benefits package, ensuring it aligns with employee needs and industry standards.

 

Section 6: Documentation and Background Verification

We prioritize thorough documentation and comprehensive background checks to maintain a workforce of the highest caliber.

  • Documentation: Outsource Otter manages the collection of essential new hire documents, from PSA Birth Certificates to PhilHealth membership.
  • Background Checks: We conduct detailed reference and police background checks, requiring no effort from the client but providing reassurance in the integrity of each hire.

 

Section 7: Termination and Satisfaction Guarantee

We offer the most client friendly termination policy of any EOR provider on the planet. We do this with the confidence in the value we provide and the strength of our service and market expertise.  

  • Cancellation Policy: Clients are entitled to cancel services with a 60-day written notice with or without cause.

Section 8: Deposits / Billing

Our billing and deposit structure is simple and straightforward.

  • Billing: Clients receive a monthly invoice on the first of each month for the work performed in the month to follow. IE January 1 clients will be billed for the work to be performed January 1 - 31.
  • Invoice Detail: We pride ourselves in our transparent pricing and policies. Each month, your invoice will receive the overall total but also detail on each staff member including Gross Pay, Witholdings, Benefits, and Net Pay.
  • Deposit: We take a simple deposit of first and last months pay for all new hires. This covers Otter in the very unlikely event of client change of control, bankruptcy, etc given our 60 day termination

This handbook encapsulates our ethos at Outsource Otter – a steadfast dedication to precision, legal compliance, and employee well-being. Should you have any questions or require additional information, please do not hesitate to contact us any time.

 

- Outsource Otter Team

We make the process of expanding remote and global teams easy, seamless, and safe. Are you ready to begin?