EMPLOYEE CODE OF

CONDUCT
 TABLE OF CONTENTS

Table of Offenses
Article I : Offenses Against Person ……………………..…...
Article II : Offenses Against Property ………...……………...9
Article III : Offenses Against Company Interest
and Policy ………………………………....……...10
Article IV : Offenses Against Safety, Health,
Security, and Public Order ..………………………13
Article V : Offenses Against Decency, Good
Custom, Honor and Morality ……….…………….14
Article VI : Offenses Against Administration ………………....16
Article VII : Offenses Against Authority ……………...........…..19
Article VIII : Others…………………………....……..........….….20

Procedure in Handling Administrative Cases ………………………........……….20

MECHANICS OF IMPLEMENTATION

In order to effectively implement the provisions of this Code, offenses that call for
disciplinary action are classified under five types of heading: TYPE A, TYPE B, TYPE C, TYPE
D, and TYPE E. This classification is made in accordance with the disciplinary action that the
offense merits. The corresponding disciplinary actions for each of the above are the following:

TYPES OF LEVELS OF DISCIPLINARY

OFFENSES OFFENSE ACTION

A (light) 1st Written Warning

2nd Stern Warning Reprimand with
warning for Suspension
3rd 2 Working- Day Suspension
4th 4 Working- Day Suspension
5th 6 Working- Day Suspension
6th 15 Working- Day Suspension with
warning For Dismissal
7th Dismissal

B (minor) 1st Stern Warning Reprimand with

Warning for Suspension
2nd 4 Working- Day Suspension
3rd 6 Working- Day Suspension
4th 15 Working- Day Suspension with
Warning for Dismissal
 5th Dismissal

C (serious) 1st 6 Working- Day Suspension

2nd 15 Working- Day Suspension with
Warning for Dismissal
3rd Dismissal

D (grave) 1st 30 Working- Day Suspension with

Warning for Dismissal
2nd Dismissal

E (capital) 1st Dismissal (Include in Type E offenses

are those covered by law as just cases
for termination of employment.)

In cases involving TYPE E offenses where dismissal is option, the management has the
authority to impose a lower penalty depending on the totality of the evidence which may be a basis
to mitigate the offense.

TABLE OF OFFENSES ARTICLE I

OFFENSES AGAINST PERSONS

SECTION 1 Commission of a crime or offense by the employee against the person of his
employer, officers or any immediate member of their family or their duly-
authorized representative. (Type E)

SECTION 2 Inflicting physical injury on any employee or person, or having in fact inflicted
physical injury while within or outside company premises or job sites where such
outside incident has relation to work or company activities. (Type E).

Otherwise, if the act merely constitutes an attempt to inflict such physical injury,
the offense may be reduced to Type C depending on the nature or gravity of the
attempted offense.

SECTION 3 Any act constituting threat, intimidation, or coercion against any person, or in any
manner unduly interfering with or obstructing plant or company operations or other
employees from performing their work (Type E)

SECTION 4 Fighting or actually engaging another in a fight while within or outside company
property or premises or job sites provided such outside incident has relation to
work or has arisen while inside company premises. (Type D)
SECTION 5 Inciting or provoking a fight under the circumstances described in Section 4 above,
but where a fight does not actually occur. (Type C)

SECTION 6 Persistently telling offensive jokes within office premises. (Type C)

SECTIO

Any immoral act by the employee either by himself or with another person;
including rape, acts of lasciviousness, sexual harassment etc . (Type E)

ARTICLE II

OFFENSES AGAINST PROPERTY

SECTION 1 Theft, robbery or appropriation for personal gain, benefit or profit of any the
property of the company or of a fellow employee or a client or customer of the
company, regardless of the amount involved. (Type E)

SECTION 2 Swindling or malversation (estafa) of funds or property of the company or of a

fellow employee or of a client or of a customer of the company. (Type E)

SECTION 3 Obtaining supplies or materials on fraudulent orders. (Type E)

SECTION 4 Unauthorized substitutions of company material or equipment with another or of

poorer quality, or of lesser value. (Type E)

SECTION 5 Alteration or removal, without authorization, of any property of the company,

government or of other employees resulting in irreparable damage thereto. (Type
E) If damage is reparable, the penalty is mitigated to Type D.

SECTION 6 Using company time, material and/or equipment to do unauthorized work within or
outside premises, for personal gain which includes using company time and
facilities in personal dealership, selling, and other non-work related activities.
(Type D)

SECTION 7 Neglecting or refusing after due demand or notice, or as provided by existing

policies without justifiable reason, to remit, pay, reimburse, or liquidate any
money, collection or cash advance, or return and/or deliver goods, stocks, or other
properties entrusted to him by the company, or received by him from a customer or
client or business associate or affiliate or their representative for his
administration, or under any other obligation to make delivery of, or return the
same. (Type B)
Malicious or willful destruction or misuse of company property or that of any
employee, any client or customer of the company. If the destruction, damage, or
misuse is committed through recklessness or imprudence, the same shall be
classified as Type D offense.

SPECIFIC TO WAREHOUSEMAN-
 SPECIFIC TO SALESMEN

ARTICLE III

OFFENSES AGAINST COMPANY INTEREST AND POLICY

The following do not conform to the foregoing:

SECTION 1 Falsification of documents relating to personal records or data or misrepresentation

of any information concerning personal circumstances and qualification. (Type E)

SECTION 2 Falsification or unauthorized alteration of personnel or company records and/or

using said falsified records for personal gain or benefit (Type E)

SECTION 3 Any attempt to falsify or pad expense reports, receipts, invoices, or any other
document, upon which reimbursement is based (Type E)

DTR or BIO?

SECTION 4 Favoring suppliers, media, customer, or any other person in consideration of

kickbacks, personal rebates or any valuable consideration. (Type E)

SECTION 5 Offering or accepting anything of value in exchange for a job, work assignment,
work location, or favorable condition of employment (Type E)

SECTION 6 Directly or indirectly requesting or receiving any gift, present, share, percentage, or
any form of benefit or favor, for himself or for any other person in connection with
any business, contract, application, or transaction between the company and any
other party, wherein the employee in his official capacity has to intervene. (Type E)

SECTION 7 Directly or indirectly having financial or pecuniary interest in any business,

contract or transaction in connection with which he intervenes or takes part in his
official capacity. (Type E)

SECTION 8 Unauthorized actions clearly in excess of one’s authority such as but not limited to,
acts of disbursing, releasing or authorizing disbursement of company funds
without written authority by one’s superior or similar acts that go beyond or
outside his authority or responsibility, where the interest of the company is
prejudiced. (Type D)
 Giving a company ID or identification material to any person not entitled to it, or
assisting non-employees to enter the company premises and restricted areas
without the company’s permission (Type E)

SECTION 10 Failure to wear the ID and uniform, or wearing altered, deformed, or mutilated
uniform. (Type A)

SECTION 11 Giving away or unauthorized disclosure of company trade secrets and/or trade
practices or trade processes or any valuable information acquired by his office, or
by him on account of his position, to unauthorized persons, or making available
such information in advance of its authorized release date and where in the
process, the interest of the company is prejudiced (Type E)

SECTION 12 Loitering, wasting time, leaving place of work during working hours without
permission from his/her supervisor, or department head or any designated person or
leaving the company compound without permission at any time before the end of
the employee’s work shift (Type B)

SECTION 13 Malingering or feigning illness to avoid doing assigned work or reporting for work.
(This includes absence due to Sick Leave but employee is neither at home nor at
any medical institution) (Type B)

SECTION 14 Sleeping while on duty. (Type B)

SECTION 15 Failure to follow written or oral instructions made by Company superiors, as well
as Company memorandum and circulars, or failure to perform assigned work due to
negligence. (Type B)

INSUBORDINATION (TYPE E)

SECTION 16 Persuading, inducing, or influencing another employee to perform an act

constituting a violation of this Code or other existing rules and regulations or
policies on an office in connection with the duty or function of the latter allowing
himself to be persuaded, induced, or influenced to commit such violation or
offense. Penalty for the violation committed shall likewise be imposed on the
person who employed persuasion, inducement, or influence. (Type C)

ARTICE IV

OFFENSES AGAINST SAFETY, HEALTH, SECURITY & PUBLIC ORDER

 N 1 Unauthorized possession and carrying of firearms, explosives, or other deadly
weapon while on company premises (Type E)

SECTION 2 Forced or unauthorized entry into an office or premises of the company during off-
hours without committing acts punishable under sections 1,4,5 and 8 of Article II
hereof. (Type C)

NOTE: Type E penalty shall however be imposed if the entry thereof has been done in order
to cover up or attempt to cover up any violation of the rules or commission of
felonies.

SECTION 3 Entering restricted areas without permission. (Type C)

SECTION 4 Creating or contributing to unsafe and unsanitary conditions inside company

premises. (Type A)

SECTION 5 Violation or failure to follow a general safety rule and/or practice. (Type A)

SECTION 6 Littering inside the company premises and immediate surrounding area. (Type A)

SECTION 7 Unauthorized and/or unjustified use of fire protection equipment. (Type C)

SECTION 8 Operating and/or tampering of switches, controls, installations, machines or

equipment without authorization. (Type C)

SECTION 9 Failure to report immediately a personal injury occurring on company time or

property. (Type A)

SECTION 10 Willful disregard of office directive relating to sanitary conditions, cleanliness, and
orderliness of the office, security of office supplies, and equipment or performing
any act contributing to unsanitary condition or practice on company premises or job
sites. (Type A)

SECTION 11 Reporting for work while having a serious contagious disease which may endanger
the health of other employees, knowing about it, yet failing to report or willfully
withholding information thereof from company authorities. (Type D) If the
contagious disease is not of a serious nature, Type C penalty will be meted out.

Sanitary rules
Smoking?
Fire hazard?
SECTION 12

SECTION 13 Scuffling, “horsing around,” or throwing things or otherwise wasting time during
work hours. (Type B)
ARTICLE V

OFFENSES AGAINST DECENCY, GOOD CUSTOM, HONOR AND

MORALITY

SECTION 1 Reporting for work while under the influence of liquor and/ or intoxicating drinks
(Type C) and/or prohibited drugs. (Type E)

SECTION 2 Drinking or bringing in any liquor, intoxicating drinks into company premises or on
company- sponsored activities (Type C); Use of or bringing in prohibited drugs
inside the company premises or during company- sponsored activities (Type E).

SECTION 3 Making false, vicious, or malicious statement concerning any employee. (Type C)

SECTION 4 Any act constituting offense against honor (libel, defamation, slander) committed
while in company premises or in relation to work. (Type D)

SECTION 5 Conduct of grossly scandalous or indecent nature or using profane or indecent

language in addressing another person on company time or on company property.
(Type C)

SECTION 6 Any and all act constituting sexual harassment and/or any motives committed
against co-employees regardless of position, rank, or gender. (Type E)

SECTION 7 Failure to undergo Drug Test upon instruction/required of management without

justifiable reason. (Type C)

The following are examples of acts of sexual harassment:

1. Persistently telling jokes to a co- employee who has indicated that he/ she finds them
offensive (Type C);
2. Taunting a co-employee with constant talk of sex or sexual innuendoes (Type C);
3. Displaying offensive pictures or publications in the workplace (Type C);
4. Asking co-employee intimate questions on his/ her sexual activities (Type C);
5. Making offensive hand or body gestures at a co- employee (Type C);
6. Making obscene calls or messages to a co- employee during and outside work hours, etc.
(Type
C);
 7. Pinching, unnecessarily brushing up against a co- employee’s body (Type C);
8. Requesting for dates or favors in exchange for a job, favorable working conditions, or
assignments, etc. (Type D);
9. Touching a co-employee in sensitive parts of his/ her body to threats of a sexual nature and
actual sexual assault (Type E);
10. Directing or inducing another to commit any act of sexual harassment as herein defined, or
who cooperates in the commission thereof by another without which it would not have
been committed shall also be liable under these rules. Penalty shall likewise be imposed on
the person who employed inducement or cooperated. (Type C) ;
11. Gender discrimination.
.
SECTION 8 Attempt to commit or committing any crime against chastity while in company
premises or at job sites or committing any act constituting immorality of such
scandalous proportions as to offend the moral sensibilities of the community.
(Type E)

SECTION 9 Taking part in any gambling, unauthorized lottery activities, loaning of money
with excessive interest rates, or any other game of chance during company time or
while within the company premises. (Type C)

SECTION 10 Conviction of any crime punishable under the Revised Penal Code of the
Philippines and other existing laws of the country which involves moral turpitude
or shows the bad character of the employee. (Type E)

ARTICLE VI

OFFENSES AGAINST ADMINISTRATION

SECTION 1 Habitual Tardiness. This is defined as ten or more instances of tardiness or

combined tardiness resulting in a total loss of 120 minutes or more within one
month. (Type A)

SECTION 2 Overbreak. Taking coffee or snack breaks of more than 15 minutes at a time, for
five or more instances or a total loss of thirty minutes or more in one calendar
month. (Type A)

SECTION 3 Absence without official leave (AWOL). Each day of absence without official is a
separate offense. (Type A)
NOTE: For an employee not to be considered AWOL, the following procedures must be
strictly followed:
 A. An employee who wishes to be absent on a certain date or dates must file an
application for leave of absence for approval of his immediate superior and
Department Head, at least two (2) days before his intended leave(s) of absence.

B. If, because of extraordinary circumstances like sudden serious illness of the

employee or an immediate member of his family, preventing him or her to secure
prior leave of absence, the employee or his representative must telephone, text, e-
mail, or submit a written notice within the first 4 hours of his or her shift to his or
her superior or Department Head or any other person authorized by the company to
approve or disapprove the absence retroactively.

SECTION 4 Denied permission to be absent. If an employee’s request for leave of absence is

denied and he nevertheless absents himself he shall be subject to immediate
discharge unless he is able to present valid and acceptable reason which he could
not have presented to management before incurring the absence. (Type E)

SECTION 5 Gross and habitual neglect by the employee of his duties. Abandonment of job is a
form of neglect of duty. This constitutes (1) failure to report for work or absence
without valid or justifiable reason and (2) a clear intention to severe the employer-
employee relationship, with the second element as the more determinative factor
and being manifested by some overt acts. (Type E)

SECTION 6 Failure to return to work on the working day immediately following the expiration
of leave of absence, unless such leave is extended with proper approval. (Type A)

SECTION 7 Failure to report for overtime work after having been duly advised and scheduled to
work according to overtime policy, or doing overtime work, in lesser time than
sought to be charged, without justifiable reason. (Type A)

SECTION 8 Deliberately punching or swiping the time card of another employee or having
one’s card punched or swiped by a fellow employee while the other is actually
inside the premises. (Type B) If the owner of the time card is not actually inside the
premises, such action shall be considered as falsification of time card. (Type C)

SECTION 9 Failure to punch or swipe out his time card or unauthorized removal of time card
from designated racks. (Type A)

SECTION 10 Posting of any derogatory articles, prints or drawings on any company property or
premise be it against any fellow employee or removal of any company matter or
information from Bulletin Board at any time unless specifically authorized. (Type
C)
SECTION 11 Unauthorized defacing of any company property or willful defacing, tampering,
smudging, printing or “dirtying” of walls or façade of any company property of any
form of vandalism committed on company properties owned by the Brown Group
of Companies. (Type C)

SECTION 12 Willfully holding back, slowing down, hindering or limiting work output, or
otherwise “feather bedding” or giving instructions to fellow employees to hold
back, slow down, hinder, or limit output. (Type E)

SECTION 13 Causing loss of company time or money because of unauthorized use, operation or
possession of machines, tools, vehicles or equipments or while performing work
other than those assigned to him or her (Type D). Where the unauthorized use
resulted in irreparable damage to the property, Type E shall be imposed.

SECTION 14 Causing loss of time and money to the company because of negligence in the
performance of official duties, neglect of duty, or persistently doing unsatisfactory
work. This includes violation of standard operating procedures. (Type C)

SECTION 15 Making false, vicious, or malicious statement concerning the company or its
products. (Type C)

SECTION 16 Selling, soliciting, collecting contributions for any purposes whatsoever or

conducting private business during office hours on company premises or job sites
without proper authorizations from the company. (Type C)

SECTION 17 Holding any position or employment with or without compensation in any other
business firm which is engaged in any similar line of business with the company.
(Type E)

SECTION 18 Allowing unauthorized rider(s) or passenger(s) in the company vehicles (Type C

offense; however, may be reduced to Type B depending on the circumstances).

SECTION 19 Tardiness during the Flag Ceremony. The flag ceremony shall be held every
Monday or the next working day if Monday is a holiday, at exactly 7:35am.
Employees who arrive at the convocation site/ venue after the start of the flag
ceremony at 7:35am are considered tardy. (Type A)

SECTION 20 Failure to attend the Flag Ceremony without justifiable reason. (Type B)????
ARTICLE VII

OFFENSE AGAINST AUTHORITY (INSUBORDINATION)

 An encompassing trait to elicit the correct behavior under this category is that of respect
for Authority coupled with our correct understanding of unity, subsidiary and responsibility.

The following do not conform to the foregoing:

SECTION 1 Refusing to accept job assignments without justifiable reason. (Type D)

SECTION 2 Willful disobedience of the lawful orders of the company and any of its officers.
(Type E)

SECTION 3 Any act constituting disrespect and disregard of authority of company superiors and
officers. (Type D)

SECTION 4 Any act which constitutes resistance, threat, intimidation, or assault against a
person of authority in the company or any of his agent. (Type D)

SECTION 5 Any other act constituting insubordination not included in the preceding sections.
(Type D)

ARTICLE VIII

OTHERS

SECTION 1 Disciplinary actions for offenses of infractions made by an employee not yet
covered or prescribed in the above rules shall be at the division head’s discretion
based on the Labor Code and other laws.

PROCEDURE IN HANDLING ADMINISTRATIVE CASES

1. All administrative cases must be reported formally to the employee’s immediate superior or
the manager.

NOTE: In checking the validity of the report submitted, the 5Ws (Who, What, Where, When, Why)
and 1 H (How) fact finding method is a proven effective guide.
2. After establishing the validity of the submitted report, the immediate superior/manager must
determine whether or not the case merits preventive suspension. If so, Preventive suspension
must not exceed thirty (30) working days. However, should the company decide to extend
beyond 30 working days because more time is needed for investigation, extension can be
made but with pay.
 Preventive Suspension. The employer may place the worker concerned under preventive
suspension if his continued employment poses a serious and imminent threat to the life or
property of the employer or of his co- workers.

Source: Section 8 and Section 9 of Rule XXIII, Book V, of the Omnibus Rules Implementing
the Labor Code, as amended by Department Order No. 9, Series of 1997

3. The immediate superior/manager must issue a Notice to Explain (NTE) to the reported
employee stating clearly the charges, purpose, reason and basis of such.
4. The NTE may be served personally or through email or messenger/viber. It may also be
mailed at the address indicated in the employee’s files.

5. The employee must receive and submit his response to his immediate superior at least FIVE
DAYS or within the allowable time provided as stated in the NTE.

NOTE: An employee who fails to submit a written report as mandated in the NTE without any
valid reason will lead to the waiving of his right to explain and be heard. This,
therefore, would eventually mean IMPLIED ADMISSION on his part of the commission
of acts constituting the charge brought against him.

6. Upon receipt of the employee’s explanation, the superior/manager shall conduct a hearing to
give the employee a chance to explain his/her side before the Disciplinary Action (DA) is
imposed.
7. If there is no written reply, the disciplinary action may be imposed by a NOTICE in writing.
8. If a hearing is conducted, the DA shall issue the DA after a reasonable period is given for
the employee to present his/her defense.

I acknowledge to have read the EMPLOYEE CODE OF CONDUCT with the

COMPANY RULES AND REGULATIONS. I further acknowledge that the contents have
been read and explained to me and that I understand all the provisions stated herein and
that I will abide by the rules at all times.

(Akong nasabtan tanan nga gipang sulat diri og gi pasabot Kanako og magsaad ako
nga akong tumanon).

Signature over Printed Name

Division/Department

Date