Policy Title: CODE OF CONDUCT & DISCIPLINE Document No.: Page: Revision: HRMD 06- 004 A Supersedes: Approved by: NEW 1 of 19 Date Approved: ARTHUR R. TAN APR 01, 2006 1.0 STATEMENT OF POLICY 1.1 The Company recognizing the differences in character, interests, attitudes, and culture established standards and norms of conduct and behavior for people to conform with to preserve order, harmony and industrial peace. 1.2 The Company believes that discipline forms part of the employee’s training program, the objective of which is to educate employees and other individuals in the fundamental standards of behaviour and performance. 1.3 This Code of Conduct & Discipline states the basic philosophy of the Company regarding discipline and the Company Rules and Regulations (CRR) with the list of offenses and the table of corrective/disciplinary action for any infraction thereof to ensure equal treatment and uniformity in the imposition of the same. The table of corrective/disciplinary action and offenses is not exclusive and may be modified based on the gravity of the offense and as circumstances warrant. 1.4 Disciplinary actions are instituted in order to correct and eradicate unsatisfactory performance of an employee for the sake of effective work operations and to improve the morale of other employees. Although disciplinary/corrective actions are expressly indicated for violation of any the Company Rules and Regulations (CRR), the intent is prevention of infraction rather than the administration of penalties. 1.5 The Company advocates positive and supportive discipline which aims to help and develop, not punish the employees by the following: • Exercise of professionalism and leadership by example by all supervisors and managers/executives. • Development and internalization of the corporate Values in the day-to-day behaviour of all employees. • Emphasis of supervision on positive behaviour expected from employees rather than on prohibitions. • Clear communication to each employee about the requirements of the job as well as this Code of Conduct and Discipline. Human Resources Management & Development Proprietary Document May not be reproduced without written permission 1 2.0 COVERAGE This policy covers all employees and non-employees such as contractors’ personnel, customers’ representatives, and other individuals who are assigned to work inside the Company as oriented to them by the department/division having charged over them. 3.0 IMPLEMENTING GUIDELINES 3.1 The Company shall exercise its inherent right to discipline or dismiss employees for any serious offense or infraction against the CRR to maintain a productive, safe and pleasant working atmosphere. 3.2 Discipline being a line function, is a fundamental management responsibility. Superiors (supervisors and managers) are responsible for the behavior of their respective subordinates and it is their duty to initiate corrective action whenever necessary. 3.3 Superiors must initiate action or report all violations of the CRR to the HRMD/ER within twenty-four (24) hours from the time the offense is committed or after having knowledge of the offense. 3.4 The due process is extended to any erring employee and/or non-employee (this will be handled by the concerned employer of the individual assigned to work in the Company) to afford him the opportunity to be heard and to ensure objectivity, consistency and fair treatment. 3.5 All employees must exhaust all available internal procedures/options to settle a disciplinary issue or work-related dispute before resorting to bringing it out externally, e.g., to the Department of Labor & Employment (DOLE). 3.6 3.5.1.1 The appeal procedure starts when an employee feels aggrieved or does not agree with the corrective/disciplinary action taken against him. 3.5.2 Disciplinary/corrective action not appealed after forty-eight (48) hours from receipt of the DA form shall no longer be considered. In serving the disciplinary/corrective action, the supervisor must discipline the erring employee in private, explaining the violation and corrective/disciplinary action applied. Reports relative to the disciplinary/corrective action must always be treated with confidentiality. The different disciplinary /corrective action as per the CRR are: 3.6.1 Warning is given to an employee for an infraction specifying the same to caution the employee that repetition shall be dealt with more severely. This is either First or Final Warning depending on the gravity of the offense. 3.6.2 Suspension is the temporary barring of an employee from work and in the performance of his duties and functions for the specified period of time. Suspension (3 days, 6 days, 12 days and 30 days) is without pay. 3.6.3 Preventive Suspension is the temporary barring from work of an employee Human Resources Management & Development Proprietary Document May not be reproduced without written permission 2 who has committed a serious offense when his continued presence in the Company poses grave and/or imminent threat/danger to the life of others and/or property of the Company, or will cause a meaningful or real disruption in the work operations or orderly business operations of the Company. 3.6.3.4 3.7 3.6.3.1 Preventive suspension shall be in effect until the final resolution of the case which in no case shall exceed 30 days. 3.6.3.2 Preventive suspension is without pay and an employee on preventive suspension shall not earn vacation and sick leave credits. 3.6.3.3 In the event that after the preventive suspension, the employee is found not guilty of an offense warranting dismissal, the preventive suspension served shall form part of the disciplinary/corrective action. Dismissal or Termination of employment is the separation of an employee from the Company for cause, i.e., when an employee commits the same offense repeatedly and/or after having committed a very serious offense warranting summary Dismissal as its penalty even without prior warning or suspension issued. 3.6.3.5 Dismissal shall not in any way prejudice the Company's right to sue or file charges (criminal or administrative) against an erring employee if the seriousness of the offense committed and the nature of the circumstances so warrant. 3.6.3.6 All cases of Dismissal shall be investigated with utmost impartiality with the erring employee being given the opportunity to present his side and the HRMD/ER to summon all witnesses to resolve the case. In the treatment of offenses, the rule of progression shall always be observed in the imposition of corrective/disciplinary actions. 3.7.1 All offenses of the same nature committed shall always be treated on a cumulative basis with the exception of offenses warranting Dismissal. 3.7.2 Succeeding offenses of the same nature shall be meted with the next higher disciplinary action if the previous offense is still within the prescriptive period of twelve (12) months. 3.7.3 All offenses and the corresponding disciplinary/corrective actions taken shall be recorded. 3.7.3.1 All recorded offenses of the same nature shall be cancelled after the employee has shown improved behavior within twelve (12) months from the time the last offense was committed. 3.7.3.2 Cancellation of offenses shall have direct bearing only on the Human Resources Management & Development Proprietary Document May not be reproduced without written permission 3 progression of future violations for the same offense. Records pertaining to the offenses shall be retained in the employee’s DA record file and shall form part of his employment history. E.g.: 3.7.4 3.8 At the sole and exclusive discretion of the Company, a disciplinary action may be reduced if there are mitigating and extenuating circumstances in favor of the erring employee. 3.8.1.1 In reconsidering any case, the reduction in penalty shall always to the next lower level, e.g., Dismissal shall be reconsidered to a 30-day Suspension. 3.8.1.2 Should an employee confess or acknowledge the commission of an offense, such act may be considered in favor of the employee in resolving the case. 3.8.1.3 Records of repetitive commission of the same offense shall not entitle the offender to a mitigating circumstance of plea of guilt but would be construed as a deliberate act and be considered a habitual offense and therefore an aggravating circumstance. In all cases, the HRMD needs to concur with the recommended disciplinary/corrective action. The right to verify the circumstances of the violation to determine the applicability of the CRR shall be inherent with the HRMD. 3.9.1 3.10 Where a single act constitutes two or more offenses under the CRR, the disciplinary/corrective action for the more serious offense shall be imposed. While there are guidelines on the specific actions to take for each offense, the corrective/disciplinary action given may be lessened or increased up to and including Dismissal, under meritorious circumstances (i.e., mitigating, aggravating and/or exempting), depending on the evidence and the employee’s record. 3.8.1 3.9 An employee has been disciplined due to tardiness (4x) in June 2004 and did not incur any tardiness within a 12-month period. This employee will start from the lowest corrective/disciplinary action if he incurred tardiness after June 2005. In the event of contrary findings of the HRMD, the case shall be remanded to the functional head concerned together with the HRMD's findings and recommendations. The final decision shall remain with the President/CEO in the event of conflict in judgment between the HRMD and the functional heads. Corrective/disciplinary actions shall be imposed on superiors (supervisors and managers) who refuse to issue the necessary sanctions to erring subordinates. This is to ensure consistency in the application of this policy. Human Resources Management & Development Proprietary Document May not be reproduced without written permission 4 4.0 PROCEDURES 4.1 Once informed of an infraction, the HRMD/ER will, in coordination with the erring employee’s supervisor, prepare/issue an Explanation Sheet (ES) citing the 4Ws/1H (Who, What, When, Where and How it happened).and start the investigation process. 4.2 The ES (also known as Show Cause or Request for Written Explanation Memo) does not necessarily mean the employee is guilty of the violation. This is part of the due process to determine the culprit/s and establish the extent of culpability as well as to trigger the investigation process which also includes: 4.2.1 Informing the erring employee of the nature and cause of the accusation against him through the ES (Explanation Sheet). 4.2.2 Requiring the employee to explain in writing within twenty-four (24) hours upon receipt of the Explanation Sheet. The written explanation must be signed by the employee before forwarding to his supervisor. 4.2.2.1 4.2.3 4.3 4.4 The supervisor will serve the ES to the erring employee. In serving the ES, the supervisor must talk to the employee in private and request his explanation in writing within twenty-four (24) hours. Submitting the written explanation within the prescribed period. Failure to comply with this shall be construed as waiver of the employee's right to be heard or admission of guilt on the part of the erring employee. The supervisor, together with and in collaboration with HRMD/ER, will conduct inquiry or investigation to verify the case after receipt of the written explanation. After getting all the facts of the case and having established the guilt of the employee, the HRMD/ER, in coordination with the supervisors concerned, will decide on the appropriate disciplinary/corrective action to be taken, guided by the CRR. The HRMD/ER through the supervisor will issue the Disciplinary Action (DA) form as follows: 4.4.1 All Warning disciplinary/corrective action must be served immediately upon receipt of the DA notice. 4.4.2 For suspension cases, the findings and the recommendations reflected in the DA form will have to be reviewed by the next higher superiors (department/division managers) in consultation and coordination with the HRMD/ER. 4.4.2.1 For suspension of less than 30 days, the DA form will be signed by the supervisor, HRMD/ER and managers (department and division). 4.4.2.2 Suspension of 30 days, the DA form needs to be signed by the HRMD head and the functional head. 4.4.3 Termination cases will need the approval of the HRMD head, the functional head and the President/CEO. Human Resources Management & Development Proprietary Document May not be reproduced without written permission 5 4.5 The Counseling form will be used to deter an employee from further commission of the same offense and/or to immediately call an employee’s attention to an undesirable behavior before it becomes a bad habit. This may be in the cases of an employee who has incurred tardiness of more than once in a month and/or of an employee who has been issued warning for unauthorized absence. It shall not be used to take the place of the appropriate disciplinary/corrective action. 4.6 All employees must exhaust all available internal procedures/options before bringing out of the Company a disciplinary issue or a work-related dispute for resolution. 4.7 4.6.1 If an employee feels aggrieved or does not agree with the disciplinary/corrective action taken against him, said employee may appeal the decision within 48hours upon receipt of the disciplinary/corrective action form. 4.6.2 An employee who wishes to appeal a disciplinary/corrective action imposed upon him must do so in writing address to the HRMD/ER through his superior (supervisor and manager). 4.6.3 All appeals will be reviewed by the HRMD and will be acted upon as follows: 4.6.3.1 Appeal for reprimand cases (First and Final Warning) will be reviewed by the HR/ER Manager who will make the final decision in coordination with the concerned manager within 3 to 7 working days from receipt of the appeal letter. 4.6.3.2 Appeal for suspension cases (3DS, 6DS and 12DS) will be reviewed by the HRMD Head who will make the final decision in coordination with the functional head within 7 to 14 working days from receipt of the appeal letter. 4.6.3.3 Appeal for 30DS and Termination cases must be addressed to the President & CEO through the HRMD. The HRMD Head will review the case and make the appropriate recommendation to the President & CEO within 14 working days from receipt of the appeal letter. The President & CEO will decide within 2 weeks from the time the appeal letter was received from the HRMD. As a general rule, the DA form meting out suspension must include the schedule of suspension before serving to the employee. The DA form with suspension as corrective/disciplinary action must be served not later than a week from receipt of notice. 4.7.1 The Company reserves the right to stagger the suspension if necessitated by operational or business exigencies. If such is the case, the suspension must have been fully served by the erring employee within 3 months from receipt of the DA notice. 4.7.2 All suspensions being scheduled on a stagger basis must have prior clearance from the HRMD head. Human Resources Management & Development Proprietary Document May not be reproduced without written permission 6 4.7.3 4.8 An erring employee suspended for 30 days shall not earn vacation and sick leave credits during the period of suspension. For 30 days Suspension and Dismissal cases with the exception of Tardiness and AWOL, a Conscience Committee, composed of representative of the erring employee, the HR/ER manager, the ER supervisor and two managers (one from Internal Audit and one not the superior of or from the same department/division of the erring employee), is formed to ensure utmost impartiality. 4.8.1 The erring employee can waive the convening of the Conscience Committee in writing. 4.8.2 The Conscience Committee is tasked to hear, investigate and deliberate on the merits of the case and to recommend the appropriate disciplinary/corrective action guided by the CRR and within the labor law. 4.8.2.1 4.8 4.8.2.2 Employees summon as witnesses to an ongoing case are required to be available during investigation and administrative hearings. The concerned superiors (supervisor and managers) must see to it that a witness-employee to a case is present as scheduled. 4.8.2.2.1 Failure of supervisors and managers to comply with 4.8.2.1 and 2 will mean obstruction and shall be dealt with accordingly. The DA form will be prepared in three (3) copies distributed as: original to the employee concerned, duplicate to the HRMD/ER, and the triplicate copy to the department/division. 4.8.1 4.9 Managers who are named as members of the Conscience Committee shall make themselves available for the investigation and administrative hearings. If workload prevents a manager from making himself available for the administrative hearings, he should immediately inform the HRMD/ER in writing so as not to delay the process. In all disciplinary cases, the HRMD/ER copy must be forwarded immediately (within 3 days) after serving the DA forms. The lead time for closing an infraction will start from the time the HRMD/ER has been notified of the infraction until the time the corresponding disciplinary action is served. 4.9.1 It is the responsibility of the HRMD/ER in close coordination with the employee’s superiors to ensure that the lead time is promptly met. 4.10 The disciplinary action (DA) form shall be served by the supervisor concerned to the erring employee upon receipt thereof. From the time HRMD/ER received the infraction report to the serving of the corresponding DA form, the lead time (calendar days) shall be: 4.10.1 3 days for infraction with Warning (First or Final) as disciplinary/corrective action. Human Resources Management & Development Proprietary Document May not be reproduced without written permission 7 4.10.2 2 weeks for infraction having suspension (3 days, 6 days, 12 days) as disciplinary/corrective action. 4.10.3 One month for infraction warranting Dismissal/Termination of employment. 30 days suspension or 4.11 Corrective/disciplinary action meting out Dismissal/Termination of employment shall take effect upon receipt of the DA notice. 4.12 In case the erring employee does not want to acknowledge the Disciplinary Action form, the supervisor shall indicate in the form "Served on date and time but refused to sign” and ask a witness to sign (that the notice has been served) and give to the erring employee his copy of the Disciplinary Action form. 5.0 RESPONSIBILITY 5.1 It is the responsibility of an employee as well as a non-employee (employee of suppliers/vendors, customers, contractors, etc.) working inside and/or assigned inside the Company premises to conduct himself as per the required norms of behavior at all times. 5.2 It is the responsibility of the functional heads, managers and supervisors to ensure that employees and non-employees under their specific functional unit strictly adhere to the Company Rules and Regulations and to initiate the necessary corrective action whenever infraction is committed guided by this Policy. 5.2.1 5.3 6.0 It is the responsibility of HRMD/ER to ensure consistency, impartiality, objectivity and uniformity in the implementation and application of the CRR and this Policy throughout the organization. ATTACHMENT 6.1 6.2 6.3 7.0 It is the responsibility of the division/department having charge over the nonemployees (suppliers/vendors, forwarders, service providers such as canteen concessionaires, medical staff, contractors, etc.) to orient the non-employees under on this Policy. Explanation Sheet Counseling form Disciplinary Action form THE COMPANY RULES & REGULATIONS (CRR) 7.1 In order to be consistent with the concept of discipline and for employees to always be aware of their behavioral responsibilities, the Company hereby adopts the following Company Rules and Regulations (CRR) as part of this Employees' Code of Conduct and Discipline. 7.2 Any action taken pursuant to this Policy shall be without prejudice to the relevant provisions of Article 282 under the Labor Code which stipulates that an employer may terminate an employment for any of the following causes: Human Resources Management & Development Proprietary Document May not be reproduced without written permission 8 7.2.1 7.2.2 7.2.3 7.2.4 7.2.5 Serious misconduct or willful disobedience by the employee of the lawful orders of the employer or representative in connection with his work; Gross and habitual neglect by the employee of his duties; Fraud or willful breach of trust reposed in him by his employer or duly authorized representative; Commission of a crime or offense by the employee against the person of his employer or immediate member of his family or his duly authorized representative; Other causes analogous to the foregoing. Classification of Offenses I II III IV V VI Non Conformances against Company property and property of others Non Conformances against persons Non Conformances against Company Interest Work related Non Conformances Non Conformances against Public Morals Non Conformances against Health, Safety and Security Regulations Table of Corrective Actions W First Warning FW Final Warning S1 3 Days Suspension S2 6 Days Suspension S3 12 Days Suspension S4 30 Days Suspension D Dismissal The Company Rules and Regulations (CRR) are not complete and absolute. The Company reserves the right to create new rules or revise existing ones as it deems necessary. ARTICLES/OFFENSES 1.0 Non Conformance against Company property or property of others. CLASS W FW st nd 1.1 Putting up unauthorized posters, messages or removal 1 of items posted in the bulletin board, wall or fence or any company property (i.e., (1) Publicity Materials, (2) Job Openings, (3) Plaques or Awards or recognition received by the company, (4) streamers/posters, etc.) 1.2 Any act of vandalism1 or the action of destroying things and/or company property on purpose and deliberately. (I.e., Any employee caught writing, destroying or damaging company property and other things on purpose likes walls, chair’s, tables or any other company property.) 2 S1 S2 S3 S4 3D 6D 12D 30D rd th th 6th 7th 2nd 3rd 3 1st 4 5 D 1. Vandalism to deliberately damage or destroy Human Resources Management & Development Proprietary Document May not be reproduced without written permission 9 CLASS ARTICLES/OFFENSES 1.3 1.4 1.5 1.6 1.7 1.8 1.9 W Failure of the employee involved in the accident to 1st notify his/her immediate superior2 or Security Officer3 about work related accidents involving people and/or property within his/her shift. Bringing out company property without duly approved gate pass. Failure by employee-user to immediately report to his immediate superior or any person in authority any damage or defects to company owned service vehicles, consigned4 machines and equipment within his/her shift. Using company materials or equipment to do unauthorized work but not limited t computers, service vehicles or other company owned equipment Any attempt to hide or to conceal5 vital company records (confidential, proprietary), causing damage to the company or its operation (i.e., (1) Quality Manual, (2) Rules and Procedure, (3) Work Instructions, (4) Quality Records, (5) All company records classified as vital and important). Losing or misplacing vital company records (confidential, proprietary), causing damage to the company or its operation (i.e., (1) Quality Manual, (2) Rules and Procedure, (3) Work Instructions, (4) Quality Records, (5) All company records classified as vital and important) Robbery, theft, pilferage6 or its attempt in any form from the company or from others inside company premises FW 2nd S1 S2 S3 S4 3D 6D 12D 30D 3rd 4th 5th 6th D 7th 1st 1st 2nd 3rd 4th 5th 6th 1st 2nd 3rd 4th 5th 1st 1st 2nd 3rd 1st 1.10 Damaging or attempting to damage company property or property of others either willfully or through gross negligence. 1st 1.11 Substituting or attempting to substitute company materials or tools with other unapproved material not within specification 1st 2. 3. 4. 5. 6. Immediate Superior a person of a Supervisor, Manager or President Security Officer Guard on duty or any Security Guard or Security Supervisor or Manager Consigned entrusted Conceal the act of hiding or keeping secret Robbery, Theft, Pilferage to steal from (pagnanakaw) Human Resources Management & Development Proprietary Document May not be reproduced without written permission 10 CLASS ARTICLES/OFFENSES W 1.12 Obtaining or attempting to obtain work related materials or tools on fraudulent7 orders 1.13 Any attempt or acct to sabotage8 or damage the business operations 1.14 Neglecting or failing to return in due time any borrowed tools and equipment or any company property in due FW S1 S2 S3 S4 3D 6D 12D 30D D 1st 1st 1st 2.0 Non-conformance against persons 2.1 Willful disrespect to co-employees, visitors, customers and contractors. (i.e., Making vicious9, profane10 or obscene11 remarks or actions intended to offend or annoy12 the person referred during working hours and/or within company premises) 2.2 Attempting to inflict13 bodily injury on another person anytime within the company premises or during any company- sponsored activity. 2nd 1st 3rd 4th 5th 2nd 1st 6th 3rd 2nd 3rd 1st 2.3 Inflicting bodily injury on another person anytime within the company premises or during any company sponsored activity. 2.4 Provoking14 or instigating15 a fight within company premises or during company sponsored activity. 2.5 Threatening16, intimidating17, coercing18 or 19 harassing fellow employees through the use of position, power or by force. 1st 2.6 Fighting with physical contact inside the company or during company- sponsored activity. 1st 2.7 Verbal assault against a co-employee 2.8 Implicating20 co-employees in an offense by planting evidence for the purpose of concealing offenses or to mislead the investigation. 1st 1st 2nd 2nd 1st 3rd 3rd 2nd 7. Fraudulent Orders characterized by, based on, or done by fraud; deceitful 8. Sabotage deliberate destruction of an employer’s property 9. Vicious Wicked 10. Profane irreverent; blasphemous 11. Obscene deeply offensive to morality or decency 12. Annoy to disturb or irritate 13. Inflict to cause or give (wounds, pain, etc.) or as if by striking 14. Provoking to rouse to anger, to incite, instigate 15. Instigating to provoke 16. Threatening to give signs of warning; to say what will be done to punish or hurt 17. Intimidating to make timid or fearful 18. Coercing restrain; repress 19. Harassing to annoy continually 20. Implicating to involve Human Resources Management & Development Proprietary Document May not be reproduced without written permission 11 CLASS ARTICLES/OFFENSES 3.0 Non-conformance against company interest 3.1 Unauthorized vending21 or buying during office hours and while within company premises W 1st FW S1 S2 S3 S4 3D 6D 12D 30D 2nd 3rd 4th 5th 6th 7th 1st 2nd 3rd 4th 5th 6th 3.2 Unauthorized soliciting22 or collecting of contribution, money or material object for any purpose. 3.3 Unauthorized distribution of printed matter or through electronic mail (e-mail) of any description inside or outside company premises (i.e., confidential company records, flyers or any publicity materials not duly authorized by the company, TQM Controlled copies, Department Policies and Procedures, Copyrighted Training materials, obscene/pornographic e-mail, obscene compact discs (CD), obscene printed materials, bringing in of pornographic posters, magazines and books) 3.4 3.5 1st Directly or indirectly engaging in any business transaction which is in conflict with or prejudicial23 to the interest of the company unless declared and or with prior clearance Any form of extortion24 Accepting payments, or gratuities25 or any kind for personal gain or interest at the expense of the company. 3.7 Entering on behalf of the company into any contract or transaction manifestly and grossly disadvantageous to the company (whether or not the employee will profit) 3.8 Any act of dishonesty of the employee in the performance of duty. 3.9 Any act amounting to falsification or tampering or misrepresentation of any material or relevant personal document or record for employment (i.,e (1) Production Documents, (2) Material Control Documents, (3) Company records, (4) timekeeping records, (5) 201 file record) 3.6 2nd D 3rd 1st 1st 1st 1st 1st 1st 21. Vending to sell as a peddler 22. Soliciting to approach with a request or plea 23. Pre-judicial detrimental to one’s right or claims 24. Extortion obtaining money, a promise, or other commitment by force, fraud or illegal use of authority 25. Gratuities a present or money in return for services; tip, fee Human Resources Management & Development Proprietary Document May not be reproduced without written permission 12 CLASS ARTICLES/OFFENSES W FW S1 S2 S3 S4 3D 6D 12D 30D D 3.10 Misappropriation26 or embezzlement27 of company funds (i.e. misappropriation of company funds/assets due to or belonging to the company, as well as undue delay in the proper remittance/accounting thereof.) 1st 3.11 Unauthorized disclosure28 of company and/or customer classified information, trade secrets or permitting or assisting any person to have an access to such confidential information (i.e., process formulas, trade secrets, test papers, vendor’s competitive bids or other confidential matter, etc) 1st 3.12 Any form of bribery29 1st 3.13 Deliberately slowing down, hindering30 and/or limiting work output, including influencing others to do the same 3.14 Installation of pirated software 1st 1st 2nd 2nd 3rd 3.15 Offering or accepting anything of value in exchange for a job work assignment, work location or favorable conditions of employment 1st 3.16 Using company funds and assets, directly or indirectly, for illegal payments of any kind. 1st 3.17 No employee shall be under the employment by any other company, including self-employment, if such company is a competitor or supplier of the company. 1st 3.18 Submission of fraudulent31 claims for reimbursements, expense reports, spurious32 receipts and other documents 1st 3.19 Holding of unauthorized activities during company time resulting in the disruption or interruption of work 1st 2nd 3.20 Unauthorized distribution of printed materials, soliciting signatures, without the prior consent and approval of the management. 1st 2nd 26. Misappropriation put to dishonest use; embezzlement 27. Embezzlement to steal (as money) by falsifying records 28. Disclosure to expose to view 29. Bribery the giving or offering of a bribe 30. Hindering to impede the progress 31. Fraudulent characterized by, based on, or done by fraud; deceitful 32. Spurious not genuine; false Human Resources Management & Development Proprietary Document May not be reproduced without written permission 13 CLASS ARTICLES/OFFENSES W FW S1 S2 S3 S4 3D 6D 12D 30D 3.21 Interference33 in official company investigations that will jeopardize34 the result of the investigation. D 1st 1st 3.22 Failure to inform HR department within one (1) week of any change in employee data/information (e.g. address, marital status, etc) which are relevant in proper monitoring of his/her records. 2nd 3rd 3.23 Leaving work assignments and Company premises during working hours without prior permission from the department head or immediate superior 4th 5th 6th 1st 2nd 3rd 1st 3.24 Job abandonment (After four (4) notices by Human Resources Division) 1st 3.25 Negligence of superiors or managers to issue proper corrective action to erring subordinates 2nd 3rd 4th 3.26 Falsely representing one to be an officer, agent, or representative of the company or any of its departments or agencies. 1st 3.27 Having failed to achieve a performance appraisal rating higher than Below Average (BA) for two consecutive appraisal periods. 1st 4.0 Work-related non-conformance against company interest 1st 4.1 Unauthorized absence from work (AWOL) for 1 day 4.2 Unauthorized absence from work (AWOL) for 2 – 3 days 2nd 3rd 4th 5th 1st 2nd 3rd 4th 1st 2nd 3rd 1st 2nd 4.3 Unauthorized absence from work (AWOL) for 4 – 6 days 4.4 Unauthorized absence from work (AWOL) for 7 – 9 days 1st 4.5 Unauthorized absence from work (AWOL) for 10 days or more 4.6 Performing other function or duties not officially 1st designated or authorized or certified but does not result to any damage in company property or significant disruption of work 2nd 3rd 4th 5th 6th 7th 33. Interference the act of or process of interfering 34. Jeopardize to put in danger; risk Human Resources Management & Development Proprietary Document May not be reproduced without written permission 14 CLASS W FW ARTICLES/OFFENSES 4.7 Performing other function or duties not officially designated or authorized or certified that resulted to any damage in company property or significant disruption of work 4.8 Neglecting to obey or perform a reasonable work-related 1st instruction given by superior. S1 S2 S3 S4 3D 6D 12D 30D 1st 2nd D 3rd 2nd 3rd 4th 5th 6th 7th 1st 2nd 3rd 4th 5th 6th 1st 2nd 3rd 4th 5th 6th 7th 4.11 Failure to follow standard operating procedures (SOP) 1st in the performance of duty. 2nd 3rd 4th 5th 6th 7th 4.9 Malicious mischief35 or engaging in disorderly conduct like horse playing; scuffling36; shouting or throwing of things that can endanger the safety of others 4.10 Habitual37 tardiness of four (4) times within a month 4.12 Malingering38 or pretending to be sick in order to be 1st excused from work 2nd 4.13 Unauthorized absence during pre-arranged39 overtime work on a regular working day 1st 4.14 Unauthorized absence during pre-arranged overtime work on a Sunday/rest day or holiday 3rd 4th 2nd 3rd 4th 5th 6th 1st 2nd 3rd 4th 5th 4.15 Unauthorized, improper, incorrect use or handling of equipment material, tools, motor vehicles and other Company property 1st 2nd 3rd 4th 5th 6th 4.16 Wrong declaration of actual quantity (i.e., (1) Quantity discrepancy, (2) material issuance (3) production report (4) Company records) 1st 2nd 3rd 4th 5th 6th 4.17 Abuse or extending break time period or loitering within 1st working hours (i.e., (1) Being in an area where an employee has no legitimate business, (2) being in his authorized area but not doing anything useful in the accomplishment of his work, (3) Taking more than allowed time for lunch or coffee break) 2nd 3rd 4th 5th 6th 7th 1st 2nd 3rd 4th 5th 1st 2nd 3rd 4th 4.18 Sleeping during working hours. 4.19 Negligence in the performance of duty resulting to loss or damage of Company or customer property worth P1,000 to P10,000. 35. Mischief a source of harm and irritation; action that annoys 36. Scuffling to struggle confusedly at close quarters; to shuffle one’s feet 37. Habitual customary; repetitive 38. Malingering to pretend illness so as to avoid duty 39. Pre-arranged to arrange beforehand; pre-scheduled and documented Human Resources Management & Development Proprietary Document May not be reproduced without written permission 15 CLASS ARTICLES/OFFENSES W FW S1 S2 S3 S4 3D 6D 12D 30D 1st 2nd 3rd 1st 2nd 4.20 Negligence in the performance of duty resulting to, loss or damage of Company or customer property worth P10,001 to P15,000. 4.21 Negligence in the performance of duty resulting to loss or damage of Company or customer property worth P15,001 to P20,000. D 4.22 Negligence in the performance of duty resulting to loss or damage of Company or customer property worth P20,001 above. 1st 4.23 Inducing40 or creating a disturbance41 resulting in the disruption or delay in operation 1st 4.24 Deliberately mixing and/or substituting a device, production materials or documents resulting in loss or damage of the product or company property 1st 4.25 Deliberately swiping in or out a co-employees time record or tampering of time record entries. 1st 4.26 Any willful act of insubordination42 1st 4.27 Non-compliance with the required product process specification instruction but not resulting to man-hour loss, damages of product or company property. 1st 4.28 Unauthorized under time 2nd 3rd 4th 5th 6th 1st 2nd 3rd 4th 5th 1st 4.29 Company payroll padding (i.e., making additional days work, over time pay, etc.) 4.30 Unauthorized/unplanned change of shift/rest day 1st 2nd 3rd 4th 5th 2nd 3rd 4th 5th 6th 5.0 Non-conformance against public morals 5.1 Unauthorized playing of any game while within company premises (i.e., computer games, chess, darts, table tennis, dama, cards, and others) 1st 5.2 Unauthorized consumption of alcoholic drinks before reporting or entering the company or while inside company premises, while operating company equipment/motor vehicle or while on official business. 1st 40. Inducing persuading; influencing 41. Disturbance interrupt; to throw into disorder 42. Insubordination resistance to authority; refusal to obey; disobedience, rebellion; unruly behavior Human Resources Management & Development Proprietary Document May not be reproduced without written permission 16 CLASS ARTICLES/OFFENSES W FW S1 S2 S3 S4 3D 6D 12D 30D 1st 5.3 Engaging in malicious gossip or rumor mongering causing damage to reputation of co-employee and/or company. D 2nd 5.4 Taking part in or promoting any unauthorized gambling, illegal lottery or any other game of chance against the law in company premises. 1st 5.5 Exerting undue influence, abuse of power by managers and/or supervisors on subordinates to gain financial advantage or other form of benefits. 1st 5.6 Perjury or any act of lying in any official business transactions, investigation and inquiry 1st 5.7 Any form of slander,43 defamation44 or libel45 1st 1st 5.8 Unbecoming conduct violating common decency and morality46 within company premises or during companysponsored activities 2nd 5.9 Any form of sexual harassment47 as stated in Republic Act 7877 1st 6.0 Non-conformance against health, safety and security regulations 6.1 Not wearing the prescribed ID card while inside company 1st premises 2nd 3rd 4th 5th 6th 7th 6.2 Acts creating or contributing to unsanitary48 conditions, including littering49, spitting, urinating. 1st 2nd 3rd 4th 5th 6th 6.3 Unauthorized bringing in of personal belongings/items inside company premises or bringing in of personal belongings/items inside production area or other restricted areas detrimental50 to the operations or business (i.e., Photo/Video Camera, Walkman or CD player, VHS players, calculators, cassette tapes/recorder, and the like) 1st 2nd 3rd 4th 5th 6th 43. Slander a false report maliciously uttered and tending to injure the reputation of a person 44. Defamation to injure or destroy the reputation of by libel or slander 45. Libel a written or published statement, picture, etc that has a tendency to harm the reputation of the person about whom it is made; false or damaging statement. 46. Common Decency or morality proper behavior conforming to the standard of a good task; the right or wrong; set of rules or principle. 47. Sexual Harassment in work, education, or training related sexual harassment is committed by an employer, employee, manager, supervisor agent of the employer or any other person who having authority, influence or moral ascendancy over in work, demands, requests, or otherwise requires any sexual favour from the other regardless of whether the demand or requirement for submission is accepted by the object of said act. 48. Unsanitary bad for the health; unhealthful 49. Littering to mark with scattered objects 50. Detrimental a cause of injury or damage Human Resources Management & Development Proprietary Document May not be reproduced without written permission 17 CLASS ARTICLES/OFFENSES W FW 6.4 Bringing food and/or eating inside production area and other identified restricted/prohibited areas. 1st 6.5 Any violation of safety and security rules and regulations but not resulting to any damage or injury to coemployees or to any company property 1st 6.6 Staying in company premises in an off-duty status without any valid reason or permission 6.7 Non-compliance with the medical requirements (i.e., Failure or refusal to undergo annual physical examination on the scheduled date; Failure to comply with the instructions of the doctor to undergo treatment or rest) 6.8 Refusal to cooperate with security procedures (i.e., checking or wearing of company ID before entering and while inside company premises, refusal to submit for inspection any personal belonging, refusal to undergo body search, refusal to submit for inspection the personal vehicles S1 S2 S3 S4 3D 6D 12D 30D 2nd 1st 3rd 4th 5th 1st 2nd 3rd 4th 3rd 4th 5th 1st 2nd 3rd 4th 5th 6th 7th 1st 2nd 3rd 4th 1st 2nd 1st 2nd 2nd 6.11 Smoking or lighting of fire in prohibited areas 6.12 Lending one’s company ID card, qualification ID, or uniform not entitled to it, resulting to breach51 of security rules, with or without adverse effects in company operations. 6.13 Commission of any criminal act or engaging in any illegal activity while inside company premises at any time 6.14 Not wearing the prescribed safety gear or any violation of safety rules and regulations, which results to injury of co-employee and/or damage to company property. 6.15 Bringing in or attempting to bring in alcoholic beverage, deadly weapons, inflammable materials52 and explosives without proper authorization53 from management. 3rd 2nd 6.9 Entering restricted areas without proper authorization 6.10 Failure to use specified entrances and exits or designated walkways and passageways D 3rd 6th 1st 1st 1st 2nd 3rd 1st 51. Breach breaking of rule 52. Inflammable materials objects that can easily be put on fire 53. Proper Authority defined as CEO and COO the only authorized representative to issue authorization to bring or carry any forms of firearms; (the act of giving legal power) Human Resources Management & Development Proprietary Document May not be reproduced without written permission 18 CLASS ARTICLES/OFFENSES W FW S1 S2 S3 S4 3D 6D 12D 30D D 6.16 Not wearing the required production apparel and safety gadgets 1st 2nd 3rd 4th 5th 6th 6.17 Tolerating unauthorized hitch hikers in the Company 1st vehicles 2nd 3rd 4th 5th 6th 7th 6.18 Unauthorized use of company vehicle or performing other duties resulting to the injury of passengers/or damage to the company vehicle or loss of company property 6.19 Reckless driving of company vehicle resulting to loss or damage to person’s/or company property 1st 1st 6.20 Conviction of a crime by a court of competent jurisdiction under Philippine Laws 1st 6.21 Unauthorized use of pyrotechnics, firecrackers and the likes inside the company premises or during company sponsored activities 6.22 Commission of unsafe acts which may cause loss of life, injury or damage to person/s or property, loss of production time or equipment downtime 1st 6.23 Deliberately concealing a suspected communicable54 disease or ailment55 1st 6.24 Any employee caught in possession of any prohibited56 drugs or paraphernalia57 inside company premises. 6.25 Any employee caught under the influence of any prohibited drugs or intoxicated with liquor while inside company premises 1st 1st 1st 54. Communicable that can be transferred on or passed along to others 55. Ailment bodily disorder 56. Prohibited forbidden by law or authority 57. Paraphernalia equipment; apparatus Human Resources Management & Development Proprietary Document May not be reproduced without written permission 19