Code of Conduct

Rules of Procedure in Disciplinary Action

I. Definition of Terms:
a. Written Warning – a warning memorandum prepared upon an employee’s commission
of an offense warning the employee that a repetition of a similar offense will subject
him to further disciplinary action. A copy of the employee’s written notice is filed in the
employee’s 201 file.
b. Stern warning- a more serious warning memorandum issued upon an employee for a
graver offense than that warranted in ordinary Written Warning. This is issued by the
management to emphasize the warning message and to prevent the repetition of the
offense.
c. Reprimand- a reprimand memorandum is issued upon an employee’s repetition of an
offense for which a written warning was previously given, and warning the employee
that a repetition of a similar offense will subject him to further disciplinary action. A
written reprimand will also be issued for first time offenses if the repetition of the same
offense will result in the penalty of suspension. Once issued, the employee’s 201 file
shall be furnished.
d. Suspension-it is a temporary physical detachment from the service of the employee
without any salary and other benefits. The suspended employee shall not earn any
benefit during the period of suspension such as vacation and sick leave accruals, service
credits, among others. He shall not earn any accrual for any bonus or gratuity payment
during the period of suspension. The suspension shall be recorded in the employee’s
201 file.
e. Dismissal- this is a dishonourable separation from the service. A dismissed employee
loses his accrued sick leave and vacation leave benefits as well as separation pay, if
applicable, and all other benefits as he is charged for cause.
f. Preventive Suspension-any employee who is under preventive suspension for the
commission of an offense that pose serious and imminent threat on the life or property
of the company shall not be entitled to any bonus, leave conversion, and other benefits.

II. Disciplinary Policy

It is the company policy to maintain harmonious relationship between the company and
employees, officers and subordinates, and between and among employees. To this end, the
Code of Conduct (Code) is issued as form of disciplinary measures to maintain order and
discipline. The Code of Conduct is likewise issued to standardize the administration of
discipline.
 Infractions and violations of this Code shall be subject to disciplinary actions, ranging from
written warning or reprimand cases of minor offenses to suspension without pay or
termination of employment in cases of serious or repeated offenses.

It shall be expected that the implementation of this Code shall be assisted by all levels of
management staff. To establish proper discipline and decorum important to the effective and
efficient operations of the company is the management thrust in implementing this Code.

III. Procedure

The company acknowledges the fact that the immediate supervisor and the department
head shall have the primary responsibility in disciplining their subordinates. Towards this
end, these disciplinary procedures shall be observed:

1. If there is violation of the any of the provisions of this Code, the immediate superior
shall require the subject employee to explain in writing through a Notice to Explain
(NTE), within five(5) days from receipt of the notice why no disciplinary action should be
taken against him.
2. The NTE gives the employee charged the opportunity to refute the charge/s and to
explain his side of the story. The NTE shall be served upon the employee and has to be
complied with by the employee within the period set forth or as indicated in the notice.
3. Depending on the gravity of the offense charged, the sanction shall be imposed as
follows:
a. For offenses involving the penalty of written warning or reprimand, the
Department of Head or the immediate superior, if there is none, may directly
impose such penalty if the explanation given by the employee is not
satisfactory.
b. For offenses involving a penalty of suspension, an investigating panel or a
committee shall be formed to handle each case, which panel shall consist of the
Department Head, the immediate superior, and a third member to be chosen by
them. Based on the results of the investigation, the department head shall then
impose the appropriate penalty.
c. For offenses involving the penalty of dismissal, the investigating panel shall be
composed of the following:
i. In-house counsel
ii. HR Supervisor
iii. A union officer.

The panel shall then issue the recommendation to the Division Head as to the
imposition of appropriate penalty on the erring employee as warranted by the
situation.

d. The report submitted shall be supported by initial evidence gathered relative to

the case and a thorough investigation shall be conducted thereon.
 e. The employee charged may be placed under preventive suspension for a period
not exceeding thirty (30) days and even before the NTE has been served to the
employee if the offense poses serious and imminent threat on the life or
property of the company or any of its representatives. Likewise, the preventive
suspension shall be issued to temporarily detach the employee charged from
the place where the offense was committed to give way to unhampered
investigation.
f. If the offense is dismissible, a hearing or conference shall be conducted.
g. Proper documentation of all cases involving disciplinary action shall be taken
immediately. In case the employee is dismissed , corresponding report to the
Department of Labor and Employment (DOLE) shall be made.
h. The original copy of the disciplinary action shall be served upon the erring
employee and copies shall be forwarded to the department head, division head,
the HR, accounting and the 201 file.
i. The penalty imposed must be fair, just and reasonable. It must be
commensurate to the nature and gravity of the offense committed.
IV. Offenses and their Penalty
a. Housekeeping and Sanitation
i. Violation of directives related to proper housekeeping in the workplace like failure
to maintain general cleanliness, that is, littering, smudging, smearing, no orderly
stuffing of files, loitering in unauthorized places or otherwise violating other
conditions of cleanliness and sanitation.
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - written reprimand
4. Fourth Offense - 3 days suspension
ii. Non-compliance with the rules on lace of dining areas or pantry use.
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - written reprimand
4. Fourth Offense - 3 days suspension
b. Attendance
i. Unauthorized Undertime
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - 3 days suspension
4. Fourth Offense - 5 days suspension
ii. Violation of the break time and lunch schedules
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - 3 days suspension
4. Fourth Offense - 5 days suspension
c. Unauthorized Absences
i. Absence without leave (AWOL) of less than four (4) days within a month
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - 7 days suspension
4. Fourth Offense - 15 days suspension
ii. Failure to notify the office for absence by reason of sickness or immediate on or
before 12:00 noon of the day of absence or first day of absence.
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - written reprimand
4. Fourth Offense - 3 days suspension
iii. Unauthorized absences of over four (4) das in a month
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 15 days suspension
4. Fourth Offense - 30 days suspension
d. Punctuality
i. An employee who comes in late for work for five (5)times within one month.
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - 3 days suspension
4. Fourth Offense - 6 days suspension
ii. Failure to punch in time card, swipe ID or register in the biometrics attendance
system.
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 3 days suspension
4. Fourth Offense - 6 days suspension
iii. Knowingly punching in the timecard or logging in attendance for another employee
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 15 days suspension
4. Fourth Offense - dismissal
iv. Unauthorized alteration made on one’s time card or that of another.
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 15 days suspension
4. Fourth Offense - dismissal
v. Unauthorized removal or concealment of one’s or another’s timecard or
attendance record
1. First Offense - stern warning
 2. Second Offense - written reprimand
3. Third Offense - 15 days suspension
4. Fourth Offense - dismissal
vi. Intentional destruction of one’s or another’s timecard or attendance record
1. First Offense - written reprimand
2. Second Offense - 15 days suspension
3. Third Offense - 20 days suspension
4. Fourth Offense - dismissal
e. Wearing of Uniform
i. Reporting for work not in prescribed uniform
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - written reprimand
4. Fourth Offense - 3 days suspension
ii. Non-wearing of prescribed attire for employees not required to wear company
uniform as prescribed in the company policy.
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - written reprimand
4. Fourth Offense - 3 days suspension
f. Offenses involving Identification Card
i. Failure or refusal to wear the identification (ID) card upon entering and while inside
the office premises.
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - written reprimand
4. Fourth Offense - 3 days suspension
ii. Deliberate destruction ,mutilation, alteration and concealment of one’s or that of
another’s ID card
1. First Offense - written warning
2. Second Offense - 3 days suspension
3. Third Offense - 5 days suspension
4. Fourth Offense - 10 days suspension
iii. Unauthorized and improper use of the company ID card
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 5 days suspension
4. Fourth Offense -7 days suspension
g. Work Behavior
i. Refusal to abide by the order to undergo annual physical examinations or physical
checkup within the prescribed period
1. First Offense - written warning
 2. Second Offense - written reprimand
3. Third Offense - 4 days suspension
4. Fourth Offense -6 days suspension
ii. Loitering in the company premises during office hours
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 4 days suspension
4. Fourth Offense -6 days suspension
iii. Leaving one’s post without permission
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 4 days suspension
4. Fourth Offense -6 days suspension
iv. Refusal to abide by the auditing and security and safety regulations in the
performance of official work or in the use of the company facilities
1. First Offense - written warning
2. Second Offense - 3 days suspension
3. Third Offense - 5 days suspension
4. Fourth Offense -dismissal
v. Sleeping while on duty
1. First Offense - written reprimand
2. Second Offense - 3 days suspension
3. Third Offense - 7 days suspension
4. Fourth Offense -15 days suspension
vi. Pretending to be sick to avoid reporting for work
1. First Offense - 3 days suspension
2. Second Offense - 5 days suspension
3. Third Offense - 10 days suspension
4. Fourth Offense -dismissal
vii. Playing of computer games, or other similar activities using the computer, which
are not work related, while on duty.
1. First Offense - 3 days suspension
2. Second Offense - 7 days suspension
3. Third Offense - dismissal
viii. Installation of unauthorized computer software in any of the company’s computer,
laptop and other devices
1. First Offense - 30 days suspension
2. Second Offense -dismissal
ix. Use, operation, and other similar acts of unauthorized, unlicensed or pirated
computer software in the company’s computer, laptop or other devices
1. First Offense - 30 days suspension
2. Second Offense -dismissal
h. Prohibited Activities
i. Lending any sum or money to or engaging in or practising usury within the
company premises
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 3 days suspension
4. Fourth Offense - 5 days suspension
ii. Collecting monetary contribution for any purpose from anyone within the company
premises without authority from the management.
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 3 days suspension
4. Fourth Offense -6 days suspension
iii. Soliciting, vending, peddling or selling any kind of goods or services during office
hours or while on duty within the company premises
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 2 days suspension
4. Fourth Offense -4 days suspension
iv. Removing company property from its designated place and placing the same in
another place within the premises without proper written authorization from the
management
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 6 days suspension
4. Fourth Offense -15 days suspension
v. Coming to work under the influence of liquor
1. First Offense - written reprimand
2. Second Offense - 3 days suspension
3. Third Offense - 6 days suspension
4. Fourth Offense -dismissal
vi. Drinking alcohol beverage within the company premises
1. First Offense - written reprimand
2. Second Offense - 3 days suspension
3. Third Offense - 6 days suspension
4. Fourth Offense -dismissal
vii. Use or possession for use of prohibited drugs as defined under the Comprehensive
Dangerous Drugs Act
1. First Offense - 30 days suspension
2. Second Offense - dismissal
viii. Selling, pushing or engaging in the trade of prohibited drugs as defined under the
Comprehensive Dangerous Drugs Act
 1. First Offense - dismissal
ix. Reading irrelevant books, magazines, novels, newspapers or other printed material
not related to one’s work while on duty.
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 4 days suspension
4. Fourth Offense -7 days suspension
x. Opening, accessing or browsing any social net-working site, unofficial e-mail or
other similar website.
1. First Offense - written reprimand
2. Second Offense - 3 days suspension
3. Third Offense - 6 days suspension
4. Fourth Offense -dismissal
xi. Downloading any file, system, application games, etc. from the Internet.
1. First Offense - written reprimand
2. Second Offense - 3 days suspension
3. Third Offense - 6 days suspension
4. Fourth Offense -dismissal
xii. Committing any subversive act, including distribution of subversive materials within
the company premises
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 6 days suspension
4. Fourth Offense -15 days suspension
xiii. Holding of unauthorized meeting within the company premises
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 3 days suspension
4. Fourth Offense -6 days suspension
xiv. Unauthorized long distance call using the company’s telephone system, cellular
phone, etc.
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 2 days suspension
4. Fourth Offense -6 days suspension
xv. Deliberate slowdown or dragging out of work
1. First Offense - written warning
2. Second Offense - written reprimand
3. Third Offense - 3 days suspension
4. Fourth Offense -6 days suspension
xvi. Smoking in restricted areas
1. First Offense - written warning
 2. Second Offense - written reprimand
3. Third Offense - 3 days suspension
4. Fourth Offense -6 days suspension
i. Serious Misbehavior
i. Falsification of records or furnishing false information or committing any such acts
with deliberate intent to defraud the company of cash, materials and stocks and
other properties
1. First Offense - 30 days suspension
2. Second Offense -dismissal
ii. Illegal possession of firearms, explosives, highly combustible materials or other
deadly weapons within the company premises.
1. First Offense - 20 days suspension
2. Second Offense -dismissal
iii. Providing false statements about himself in the company records with intent to
mislead misrepresent or conceal incriminatory information.
1. First Offense - written reprimand
2. Second Offense - 20 days suspension
3. Third Offense - 30 days suspension
4. Fourth Offense - dismissal
iv. Engaging in scandalous relationship such as maintaining relationship with another
employee when being validly married
1. First Offense - 30 days suspension
2. Second Offense - dismissal
v. Having sexual intercourse within the company premises
1. First Offense - 30 days suspension
2. Second Offense - dismissal
vi. Exhibitionism
1. First Offense - 30 days
2. Second Offense - Dismissal
vii. Commission of a crime involving moral turpitude such as seduction, rape,
abduction and acts of lasciviousness
1. First Offense - dismissal
viii. Conviction of other crime where the penalty imposed is more than thirty (30) days
of imprisonment
1. First Offense - dismissal
j. Sabotage, espionage and violation of trade security
i. Deliberate destruction of company property with the intention of wreaking havoc
on the operation, paralyzing equipment, machineries and similar acts
1. First Offense - dismissal
ii. Hacking company systems and databases
1. First Offense - dismissal
 iii. Intentionally infecting company systems and databases with virus and other types
of malwares
1. First Offense - dismissal
iv. Stealing company’s trade secrets by taking without consent documents, records,
equipment, devices and other things which are considered highly confidential
1. First Offense - dismissal
v. Selling or distribution of highly confidential matters of the company
1. First Offense - dismissal
k. Breach of Security and safety measures
i. Violation of safety rules and regulations
1. First Offense - written reprimand
2. Second Offense - 10 days suspension
3. Third Offense - 30 days suspension
4. Fourth Offense -dismissal
ii. Failure or refusal to cooperate with security protocol enforced by the Security
Guard or other security systems.
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 3 days suspension
4. Fourth Offense - 7 days suspension
iii. Unauthorized entry is restricted areas
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - written reprimand
4. Fourth Offense -3 days suspension
iv. Assisting others to enter restricted areas without authority
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 2 days suspension
4. Fourth Offense -4 days suspension
v. Reckless use of company vehicle resulting in damage thereon
1. First Offense - 7 days suspension
2. Second Offense - 10 days suspension
3. Third Offense - dismissal
l. Disorderly Conduct
i. Gambling while within the company premises
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 5 days suspension
4. Fourth Offense -10 days suspension
ii. Promoting any game of chance, lottery, gambling within the company premises
1. First Offense - written reprimand
 2. Second Offense - 7 days suspension
3. Third Offense - 15 days suspension
4. Fourth Offense - 30 days suspension
iii. Uttering profanities, disrespectful language or displaying obscene acts, such as dirty
finger, to a superior, company officer or any member of the management.
1. First Offense - 10 days suspension
2. Second Offense - 15 days suspension
3. Third Offense - dismissal
iv. Uttering profanities, disrespectful language or displaying obscene acts, such as dirty
finger, towards co-workers other than company officers, superiors or other
members of the management
1. First Offense - written reprimand
2. Second Offense - 2 days suspension
3. Third Offense - 7 days suspension
4. Fourth Offense -10 days suspension
v. Disregarding lawful orders of superiors, managers, department or division heads or
other company officers
1. First Offense - 3 days suspension
2. Second Offense - 7 days suspension
3. Third Offense - 15 days suspension
4. Fourth Offense -dismissal
vi. Gross insubordination where there is substantial damage to company property or
injury to person
1. First Offense - 30 days suspension
2. Second Offense - dismissal
vii. Threatening bodily harm to a superior or other company officers
1. First Offense - 7 days suspension
2. Second Offense - 15 days suspension
3. Third Offense - dismissal
viii. Threatening bodily harm to a superior or other company officers
1. First Offense - 3 days suspension
2. Second Offense - 7 days suspension
3. Third Offense - 15 days suspension
4. Fourth Offense -dismissal
ix. Inflicting bodily harm to a co-worker
1. First Offense - 30 days suspension
2. Second Offense - dismissal
x. Participating in any illegal assembly during office hours and inside company
premises
1. First Offense - 5 days suspension
2. Second Offense - 7 days suspension
3. Third Offense - 15 days suspension
 4. Fourth Offense - dismissal
xi. Provoking a fight
1. First Offense - 10 days suspension
2. Second Offense - 30 days suspension
3. Third Offense - dismissal
xii. Posting or writing unauthorized notices or removing and mutilating company
notices
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 15 days suspension
4. Fourth Offense - dismissal
xiii. Discourtesy to visitors by being disrespectful uttering obscene and foul language
towards them. Also, includes rude manner of dealing with the visitors, customers
or guests of the company resulting in verbal or written complaint
1. First Offense - 3 days suspension
2. Second Offense - 7 days suspension
3. Third Offense - 30 days suspension
4. Fourth Offense - dismissal
xiv. Engaging in a brawl, mauling, fisticuff or any physical fight with another employee
or another person within the company premises while being the instigator
1. First Offense - 5 days suspension
2. Second Offense - 10 days suspension
3. Third Offense - dismissal
xv. While not being an instigator or a victim, joining a brawl, mauling, fisticuff or any
physical fight with another employee or another person within the company
premises
1. First Offense - 4 days suspension
2. Second Offense - 7 days suspension
3. Third Offense - 15 days suspension
4. Fourth Offense - dismissal
m. Betrayal of Trust
i. Inflicting damage to the company for failure or refusal to report in writing the loss
of company property under his custody or accountability within 24 hours
1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - 5 days suspension
4. Fourth Offense - 7 days suspension
ii. Misappropriation of company supplies, material or equipment
1. First Offense - 3 days suspension
2. Second Offense - 7 days suspension
3. Third Offense - dismissal
iii. Wastage of company supplies and materials
 1. First Offense - written warning
2. Second Offense - stern warning
3. Third Offense - written reprimand
4. Fourth Offense - 3 days suspension
iv. Use of company name, goodwill, products and other intellectual property for
personal gain, profit or deceit without the company’s authority
1. First Offense - 5 days suspension
2. Second Offense - 7 days suspension
3. Third Offense - 15 days suspension
4. Fourth Offense - dismissal
v. Engaging in personal business or part-time work during office hours
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 15 days suspension
4. Fourth Offense - dismissal
vi. Theft of company property with market value of not more than P5,000.00 other
than sum of money
1. First Offense - 4 days suspension to dismissal
vii. Theft of company property with market value of more than P5,000 but not more
than P30,000 other than sum of money
1. First Offense - 15 days suspension to dismissal
viii. Theft of company property with market value of more than P30,000.00 other than
sum of money.
1. First Offense - dismissal
ix. Taking of company collection, cash or other sum of money not more than
P5,000.00 without company’s consent
1. First Offense - 15 days suspension to dismissal
x. Unauthorized use of company vehicle
1. First Offense - 15 days suspension
2. Second Offense - 30 days suspension
3. Third Offense - dismissal
xi. Falsification of company’s receipts, forms, and other instruments without
monetary personal gain.
1. First Offense - 10 days suspension to dismissal
xii. Falsification of company’s receipts, forms and other instruments for personal
monetary gain where the amount involved is not more than P5,000.00
1. First Offense - 30 days suspension to dismissal
xiii. Falsification of company’s receipts, forms, and other instruments for personal
monetary gain where the amount involved is more than P5,000.00
1. First Offense - dismissal
n. Neglect of Duty
 i. Violation of standard operating procedure where there is no direct monetary
damage to the company
1. First Offense - stern warning
2. Second Offense - written reprimand
3. Third Offense - 10 days suspension
4. Fourth Offense - 30 days suspension
ii. Neglect of duty resulting in injury to a person
1. First Offense - 3 days suspension to dismissal
o. Sexual Harassment
i. Any employee, having authority, influence or moral ascendancy over a
subordinate, co-employee, agent or other person, who shall demand, request, or
otherwise require any sexual favour from such other person, regardless of whether
the demand , request, or requirement is accepted by such other person under the
following circumstances:
1. Made as the condition in the hiring or for continued employment
2. Made as a condition in granting of compensations, fees, privileges
p. Habitual Violations
i. Habitual violations of any of the offenses contained herein, but excluding this
provision, shall constitute an offense punishable as follows:
1. Warned in writing three (3) times - 5 days suspension
2. Warned sternly three (3) times - 10 days suspension
3. Suspended twice - 15 days suspension
4. Suspended three (3)times - dismissal