Policy Title:

CODE OF CONDUCT & DISCIPLINE

Document No.: Revision: Page:

HRMD 06- 004 A 1 of 19

Supersedes: Approved by: Date Approved:

NEW 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 1

Proprietary Document
May not be reproduced without written permission
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).

3.5.1.1 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.

3.6 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 2

Proprietary Document
May not be reproduced without written permission
 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.

3.6.3.1 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.

3.6.3.4 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.

3.7 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 3

Proprietary Document
May not be reproduced without written permission
 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.: 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.

3.7.4 Where a single act constitutes two or more offenses under the CRR, the
disciplinary/corrective action for the more serious offense shall be imposed.

3.8 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 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.

3.9 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 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.

3.10 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 4

Proprietary Document
May not be reproduced without written permission
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 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.

4.2.3 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.

4.3 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.

4.4 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 5

Proprietary Document
May not be reproduced without written permission
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.

4.6.1 If an employee feels aggrieved or does not agree with the disciplinary/corrective
action taken against him, said employee may appeal the decision within 48-
hours 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.

4.7 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 6

Proprietary Document
May not be reproduced without written permission
 4.7.3 An erring employee suspended for 30 days shall not earn vacation and sick leave
credits during the period of suspension.

4.8 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 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.

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.

4.8 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 In all disciplinary cases, the HRMD/ER copy must be forwarded immediately
(within 3 days) after serving the DA forms.

4.9 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 7

Proprietary Document
May not be reproduced without written permission
 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 30 days suspension or

Dismissal/Termination of employment.

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 It is the responsibility of the division/department having charge over the non-
employees (suppliers/vendors, forwarders, service providers such as canteen
concessionaires, medical staff, contractors, etc.) to orient the non-employees
under on this Policy.

5.3 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.

6.0 ATTACHMENT

6.1 Explanation Sheet

6.2 Counseling form
6.3 Disciplinary Action form

7.0 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 8

Proprietary Document
May not be reproduced without written permission
 7.2.1 Serious misconduct or willful disobedience by the employee of the lawful orders of
the employer or representative in connection with his work;
7.2.2 Gross and habitual neglect by the employee of his duties;
7.2.3 Fraud or willful breach of trust reposed in him by his employer or duly authorized
representative;
7.2.4 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;
7.2.5 Other causes analogous to the foregoing.

Classification of Offenses
I Non Conformances against Company property and property of others
II Non Conformances against persons
III Non Conformances against Company Interest
IV Work related Non Conformances
V Non Conformances against Public Morals
VI 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 CLASS
W FW S1 S2 S3 S4
1.0 Non Conformance against Company property or D
property of others.
3D 6D 12D 30D

st nd rd th th
1.1 Putting up unauthorized posters, messages or removal 1 2 3 4 5 6th 7th
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 1st

2nd 3rd
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.)

1. Vandalism to deliberately damage or destroy

Human Resources Management & Development 9

Proprietary Document
May not be reproduced without written permission
 CLASS
ARTICLES/OFFENSES W FW S1 S2 S3 S4
D
3D 6D 12D 30D

1.3 Failure of the employee involved in the accident to 1st 2nd 3rd 4th 5th 6th 7th
notify his/her immediate superior2 or Security Officer3
about work related accidents involving people and/or
property within his/her shift.
1.4 Bringing out company property without duly approved 1st
gate pass.
1.5 Failure by employee-user to immediately report to his 1st 2nd 3rd 4th 5th 6th
immediate superior or any person in authority any
damage or defects to company owned service vehicles,
consigned4 machines and equipment within his/her
shift.
1.6 Using company materials or equipment to do 1st 2nd 3rd 4th 5th
unauthorized work but not limited t computers, service
vehicles or other company owned equipment
1.7 Any attempt to hide or to conceal5 vital company 1st
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).
1.8 Losing or misplacing vital company records 1st 2nd 3rd
(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)
1.9 Robbery, theft, pilferage6 or its attempt in any form 1st
from the company or from others inside company
premises

1.10 Damaging or attempting to damage company property 1st

or property of others either willfully or through gross
negligence.

1.11 Substituting or attempting to substitute company 1st

materials or tools with other unapproved material not
within specification

2. Immediate Superior a person of a Supervisor, Manager or President

3. Security Officer Guard on duty or any Security Guard or Security Supervisor or Manager
4. Consigned entrusted
5. Conceal the act of hiding or keeping secret
6. Robbery, Theft, Pilferage to steal from (pagnanakaw)

Human Resources Management & Development 10

Proprietary Document
May not be reproduced without written permission
 CLASS
W FW S1 S2 S3 S4
ARTICLES/OFFENSES D
3D 6D 12D 30D

1.12 Obtaining or attempting to obtain work related materials 1st

or tools on fraudulent7 orders
1.13 Any attempt or acct to sabotage8 or damage the 1st
business operations
1.14 Neglecting or failing to return in due time any borrowed 1st 2nd 3rd 4th 5th 6th
tools and equipment or any company property in due
2.0 Non-conformance against persons
2.1 Willful disrespect to co-employees, visitors, customers 1st 2nd 3rd
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 1st 2nd 3rd
company- sponsored activity.
2.3 Inflicting bodily injury on another person anytime within 1st
the company premises or during any company
sponsored activity.
2.4 Provoking14 or instigating15 a fight within company 1st 2nd 3rd
premises or during company sponsored activity.
2.5 Threatening16, intimidating17, coercing18 or 1st
19
harassing fellow employees through the use of
position, power or by force.
2.6 Fighting with physical contact inside the company or 1st
during company- sponsored activity.
2.7 Verbal assault against a co-employee 1st 2nd 3rd
2.8 Implicating20 co-employees in an offense by planting 1st 2nd
evidence for the purpose of concealing offenses or to
mislead the investigation.

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 11

Proprietary Document
May not be reproduced without written permission
 CLASS
W FW S1 S2 S3 S4
ARTICLES/OFFENSES D
3D 6D 12D 30D

3.0 Non-conformance against company interest

3.1 Unauthorized vending21 or buying during office hours 1st 2nd 3rd 4th 5th 6th 7th
and while within company premises
3.2 Unauthorized soliciting22 or collecting of contribution, 1st 2nd 3rd 4th 5th 6th
money or material object for any purpose.
3.3 Unauthorized distribution of printed matter or through 1st 2nd 3rd
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 Directly or indirectly engaging in any business 1st
transaction which is in conflict with or prejudicial23 to
the interest of the company unless declared and or with
prior clearance
3.5 Any form of extortion24 1st
3.6 Accepting payments, or gratuities25 or any kind for 1st
personal gain or interest at the expense of the
company.
3.7 Entering on behalf of the company into any contract or 1st
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 1st
performance of duty.
3.9 Any act amounting to falsification or tampering or 1st
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)

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 12

Proprietary Document
May not be reproduced without written permission
 CLASS
W FW S1 S2 S3 S4
ARTICLES/OFFENSES D
3D 6D 12D 30D

3.10 Misappropriation26 or embezzlement27 of company 1st

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.)
3.11 Unauthorized disclosure28 of company and/or customer 1st
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)

3.12 Any form of bribery29 1st

3.13 Deliberately slowing down, hindering30 and/or limiting 1st 2nd

work output, including influencing others to do the same
3.14 Installation of pirated software 1st 2nd 3rd

3.15 Offering or accepting anything of value in exchange for 1st

a job work assignment, work location or favorable
conditions of employment
3.16 Using company funds and assets, directly or indirectly, 1st
for illegal payments of any kind.
3.17 No employee shall be under the employment by any 1st
other company, including self-employment, if such
company is a competitor or supplier of the company.
3.18 Submission of fraudulent31 claims for reimbursements, 1st
expense reports, spurious32 receipts and other
documents
3.19 Holding of unauthorized activities during company time 1st 2nd
resulting in the disruption or interruption of work
3.20 Unauthorized distribution of printed materials, soliciting 1st 2nd
signatures, without the prior consent and approval of
the management.

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 13

Proprietary Document
May not be reproduced without written permission
 CLASS
ARTICLES/OFFENSES W FW S1 S2 S3 S4
D
3D 6D 12D 30D

3.21 Interference33 in official company investigations that will 1st

jeopardize34 the result of the investigation.
3.22 Failure to inform HR department within one (1) week of 1st 2nd 3rd 4th 5th 6th
any change in employee data/information (e.g. address,
marital status, etc) which are relevant in proper
monitoring of his/her records.

3.23 Leaving work assignments and Company premises 1st 2nd 3rd
during working hours without prior permission from the
department head or immediate superior
3.24 Job abandonment (After four (4) notices by Human 1st
Resources Division)
3.25 Negligence of superiors or managers to issue proper 1st 2nd 3rd 4th
corrective action to erring subordinates

3.26 Falsely representing one to be an officer, agent, or 1st

representative of the company or any of its departments
or agencies.

3.27 Having failed to achieve a performance appraisal rating 1st

higher than Below Average (BA) for two consecutive
appraisal periods.

4.0 Work-related non-conformance against company interest

4.1 Unauthorized absence from work (AWOL) for 1 day 1st 2nd 3rd 4th 5th

4.2 Unauthorized absence from work (AWOL) for 2 – 3 days 1st 2nd 3rd 4th

4.3 Unauthorized absence from work (AWOL) for 4 – 6 days 1st 2nd 3rd

4.4 Unauthorized absence from work (AWOL) for 7 – 9 days 1st 2nd

4.5 Unauthorized absence from work (AWOL) for 10 days or 1st

more
4.6 Performing other function or duties not officially 1st 2nd 3rd 4th 5th 6th 7th
designated or authorized or certified but does not result
to any damage in company property or significant
disruption of work

33. Interference the act of or process of interfering

34. Jeopardize to put in danger; risk

Human Resources Management & Development 14

Proprietary Document
May not be reproduced without written permission
 CLASS
W FW S1 S2 S3 S4
ARTICLES/OFFENSES
D
3D 6D 12D 30D

4.7 Performing other function or duties not officially 1st 2nd 3rd
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 2nd 3rd 4th 5th 6th 7th
instruction given by superior.
4.9 Malicious mischief35 or engaging in disorderly conduct 1st 2nd 3rd 4th 5th 6th
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 1st 2nd 3rd 4th 5th 6th 7th
4.11 Failure to follow standard operating procedures (SOP) 1st 2nd 3rd 4th 5th 6th 7th
in the performance of duty.
4.12 Malingering38 or pretending to be sick in order to be 1st 2nd 3rd 4th
excused from work
4.13 Unauthorized absence during pre-arranged39 overtime 1st 2nd 3rd 4th 5th 6th
work on a regular working day
4.14 Unauthorized absence during pre-arranged overtime 1st 2nd 3rd 4th 5th
work on a Sunday/rest day or holiday
4.15 Unauthorized, improper, incorrect use or handling of 1st 2nd 3rd 4th 5th 6th
equipment material, tools, motor vehicles and other
Company property
4.16 Wrong declaration of actual quantity (i.e., (1) Quantity 1st 2nd 3rd 4th 5th 6th
discrepancy, (2) material issuance (3) production report
(4) Company records)
4.17 Abuse or extending break time period or loitering within 1st 2nd 3rd 4th 5th 6th 7th
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)
4.18 Sleeping during working hours. 1st 2nd 3rd 4th 5th

4.19 Negligence in the performance of duty resulting to loss 1st 2nd 3rd 4th
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 15

Proprietary Document
May not be reproduced without written permission
 CLASS
ARTICLES/OFFENSES W FW S1 S2 S3 S4
D
3D 6D 12D 30D

4.20 Negligence in the performance of duty resulting to, loss 1st 2nd 3rd
or damage of Company or customer property worth
P10,001 to P15,000.
4.21 Negligence in the performance of duty resulting to loss 1st 2nd
or damage of Company or customer property worth
P15,001 to P20,000.
4.22 Negligence in the performance of duty resulting to loss 1st
or damage of Company or customer property worth
P20,001 above.
4.23 Inducing40 or creating a disturbance41 resulting in the 1st
disruption or delay in operation
4.24 Deliberately mixing and/or substituting a device, 1st
production materials or documents resulting in loss or
damage of the product or company property

4.25 Deliberately swiping in or out a co-employees time 1st

record or tampering of time record entries.
4.26 Any willful act of insubordination42 1st
4.27 Non-compliance with the required product process 1st 2nd 3rd 4th 5th 6th
specification instruction but not resulting to man-hour
loss, damages of product or company property.
4.28 Unauthorized under time 1st 2nd 3rd 4th 5th
4.29 Company payroll padding (i.e., making additional days 1st
work, over time pay, etc.)
4.30 Unauthorized/unplanned change of shift/rest day 1st 2nd 3rd 4th 5th
5.0 Non-conformance against public morals
5.1 Unauthorized playing of any game while within company 1st 2nd 3rd 4th 5th 6th
premises (i.e., computer games, chess, darts, table
tennis, dama, cards, and others)
5.2 Unauthorized consumption of alcoholic drinks before 1st
reporting or entering the company or while inside
company premises, while operating company
equipment/motor vehicle or while on official business.

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 16

Proprietary Document
May not be reproduced without written permission
 CLASS
ARTICLES/OFFENSES W FW S1 S2 S3 S4
D
3D 6D 12D 30D

5.3 Engaging in malicious gossip or rumor mongering 1st 2nd

causing damage to reputation of co-employee and/or
company.
5.4 Taking part in or promoting any unauthorized gambling, 1st
illegal lottery or any other game of chance against the
law in company premises.
5.5 Exerting undue influence, abuse of power by managers 1st
and/or supervisors on subordinates to gain financial
advantage or other form of benefits.
5.6 Perjury or any act of lying in any official business 1st
transactions, investigation and inquiry
5.7 Any form of slander,43 defamation44 or libel45 1st
5.8 Unbecoming conduct violating common decency and 1st 2nd
morality46 within company premises or during company-
sponsored activities
5.9 Any form of sexual harassment47 as stated in Republic 1st
Act 7877
6.0 Non-conformance against health, safety and security regulations
6.1 Not wearing the prescribed ID card while inside company 1st 2nd 3rd 4th 5th 6th 7th
premises
6.2 Acts creating or contributing to unsanitary48 conditions, 1st 2nd 3rd 4th 5th 6th
including littering49, spitting, urinating.
6.3 Unauthorized bringing in of personal belongings/items 1st 2nd 3rd 4th 5th 6th
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)

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 17

Proprietary Document
May not be reproduced without written permission
 CLASS
ARTICLES/OFFENSES W FW S1 S2 S3 S4
D
3D 6D 12D 30D

6.4 Bringing food and/or eating inside production area and 1st 2nd 3rd
other identified restricted/prohibited areas.
6.5 Any violation of safety and security rules and regulations 1st 2nd 3rd 4th 5th 6th
but not resulting to any damage or injury to co-
employees or to any company property
6.6 Staying in company premises in an off-duty status 1st 2nd 3rd 4th
without any valid reason or permission
6.7 Non-compliance with the medical requirements (i.e., 1st 2nd
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., 1st 2nd 3rd 4th 5th
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
6.9 Entering restricted areas without proper authorization 1st 2nd 3rd
6.10 Failure to use specified entrances and exits or 1st 2nd 3rd 4th 5th 6th 7th
designated walkways and passageways
6.11 Smoking or lighting of fire in prohibited areas 1st 2nd 3rd 4th
6.12 Lending one’s company ID card, qualification ID, or 1st
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 1st
illegal activity while inside company premises at any
time
6.14 Not wearing the prescribed safety gear or any violation 1st 2nd 3rd
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, 1st
deadly weapons, inflammable materials52 and
explosives without proper authorization53 from
management.

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 18

Proprietary Document
May not be reproduced without written permission
 CLASS
ARTICLES/OFFENSES W FW S1 S2 S3 S4
D
3D 6D 12D 30D

6.16 Not wearing the required production apparel and safety 1st 2nd 3rd 4th 5th 6th
gadgets
6.17 Tolerating unauthorized hitch hikers in the Company 1st 2nd 3rd 4th 5th 6th 7th
vehicles
6.18 Unauthorized use of company vehicle or performing 1st
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 1st
damage to person’s/or company property
6.20 Conviction of a crime by a court of competent 1st
jurisdiction under Philippine Laws
6.21 Unauthorized use of pyrotechnics, firecrackers and the 1st
likes inside the company premises or during company
sponsored activities
6.22 Commission of unsafe acts which may cause loss of life, 1st
injury or damage to person/s or property, loss of
production time or equipment downtime
6.23 Deliberately concealing a suspected communicable54 1st
disease or ailment55
6.24 Any employee caught in possession of any prohibited56 1st
drugs or paraphernalia57 inside company premises.
6.25 Any employee caught under the influence of any 1st
prohibited drugs or intoxicated with liquor while inside
company premises

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 19

Proprietary Document
May not be reproduced without written permission