Wednesday, January 17, 2018

Pre-employment Requirements for Domestic Corporation

It varies from company to company but the followings are the general documents they ask once you get hired.

Birth Certificate
Companies often ask for a photocopy of your PSA (formerly NSO) Birth Certificate.


Transcript of Records/ Diploma
This is the proof that you have finished the course written in your CV.

NBI Clearance or Police Clearance

The National Bureau of Investigation (NBI) clearance tells if there have been criminal cases filed in the courts of the Philippines against the applicant. Its scope is not limited to only a certain locality. It covers the entire Philippines.
The NBI clearance cannot tell if there have been civil cases filed against the applicant.
Also, if the criminal case against the applicant is still with the prosecutor or the police or the NBI investigators (or still under investigation), the NBI clearance will reflect nothing. That means the applicant is cleared. A criminal case goes through many processes before it gets filed in court, and while the case is still at these stages it will not be reflected in the NBI clearance. 

The police clearance says the same thing as the NBI clearance. That is, it tells if there have been criminal cases filed against the applicant in the locality where it was issued. The scope of the police clearance is limited only to a certain locality. That is unlike the NBI clearance.
The police clearance cannot tell if there have been criminal cases filed against the applicant in other localities in the Philippines. Like the NBI clearance, the police clearance cannot tell if there have been civil cases filed against the applicant.

Notes: There is Barangay Clearance also. It's a mere certificate or residency even though it implies the meaning of "clearance". Not much private company ask this document. Sometimes, we call Barangay Business Permit Clearance as Barangay Clearance. Barangay Permit is the prerequisite when apply for a Mayor's Permit. 

SSS (Social Security System)
Photocopy of E1/E4/E6 form. Registering your employees to Social Security System is mandatory. 

HDMF (Home Development Mutual Fund, formerly Pag-IBIG fund)
Registering your employees to Home Development Mutual Fund is mandatory. Basically, it's each contributor's saving which can be withdrawn at the maturity date.

PhilHealth
It’s also mandatory. Discounts on hospital fees and other benefits are provided by PhilHealth. Many private companies provide private HMO program on top of the PhilHealth.

BIR forms
The Bureau of Internal Revenue (BIR) is tax collection agency. There are many forms from the BIR that you will need: BIR ID or Form 1902, TIN card, ITR/2316 from previous employer, and Form 1905/Transfer of RDO are some of them.
Marriage Certificate/Birth Certificate of Children
It will be used for determining the employee’s tax, benefits.
Pre-employment Medical Exam/Drug Test
Many clinics provide pre-employment medical checkup service. You may ask them to go through this step before hire. It's not a mandatory rule but some companies shoulder this expenses.

Pictures (2x2)
It will be used for employee 201 file and others.

Notes: The government is pushing for "easy of doing business" agenda. There will be a single system of registration for SSS, HDMF and PhilHealth sooner or later. 

Notes: Starting 2018, personal exemptions from taxable income are totally removed, so marriage certificate and birth certificate of children may not necessary.

Notes: You need to prepare a folder for each employee where you can keep each employee related documents from pre-employment requirements to exit clearance. It’s called “employee 201 file”. Of course, it contains personal information, so you can’t just put them on the table. In addition to this hard copy files, you can also create a computer file, employee profile for the purpose of monitoring/tracing/etc.


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