COMPANY RULES AND REGULATIONS

FOREWORD

This set of rules and regulations governing proper conduct and behavior is
being enforced for the principal purpose of creating and maintaining harmonious
relations among employees and between management and employees.

Disciplinary actions are provided for different infractions of these rules, but
the intent is prevention of the infraction, rather than imposition of penalties. All
employees are urged to review them and to cooperate with the implementation
thereof. The order, harmony and efficiency that these rules seek to accomplish will
redound to the benefit, not only of the organization but of the employees as well.

These rules will be enforced and applied uniformly and impartially to all
employees during Company hours or work time and/or while they are within the
Company premises.

Since discipline is more of a line function, it shall be the duty of all

department heads to initiate disciplinary action on any reported violation of these
rules within two (2) working days from the time the offense took place or from the
receipt of the report about the violation.

Every word in these rules imparting a masculine gender shall extend to every
male and female employee. Every word imparting the singular number shall extend
and apply to several persons or things as well. The accumulation of offenses shall be
done within one (1) calendar year. Suspension shall be without pay and days shall
refer to working days. An employee who conspires with another to violate these
rules and regulations, or who shall cause another to be in violation of the same, shall
suffer the same penalty as the errant employee.

Management reserves the right to impose a lighter penalty should there be

circumstances to mitigate the infraction or a stiffer penalty as the circumstances may
warrant.

These rules and regulations shall take effect upon signing.

 THE MANAGEMENT

COMPANY RULES AND REGULATIONS

A. ATTENDANCE

1. Excused Absences

An employee shall receive no pay for every day of excused absence beyond
the allowed vacation and sick leaves.

2. Unauthorized Absences

An employee shall receive no pay for every day of unauthorized absence

beyond the allowed vacation and sick leaves. In addition, the following
penalties shall apply:

a. One day – Warning memo

b. Two consecutive days - One day suspension
c. Three consecutive days – Five days suspension
d. Another three consecutive days after penalized with five-day suspension –
Five days suspension and a stern warning for dismissal
e. Another three consecutive days after given stern warning for dismissal -
dismissal
f. Thirty days in a year – Dismissal

An employee who fails to report for work before noon is deemed absent.
Absences shall be excused only when the employee notifies his immediate
superior within the first hour of his work shift, at the latest, and the reason for
the absence is excusable. Further, the Company may require the employee to
produce supporting documents, i.e., medical certificate.

An employee who fails to comply with the procedure laid down herein in availing sick
leaves and vacation leaves shall also be deemed to be AWOL.

A. Vacation Leave

1. All requests for vacation leave shall be in writing and filed at least two (5)
days before the date of the leave. The Department Manager must approve
the request.

2. For emergency personal leave, call in to inform your Department Manager

and to get his approval and file the written request on the day you report
back for work.
 3. The Department Manager has the discretion to disapprove requests for
vacation leave, i.e., when an employee has exhausted his VL credits or
when the needs of the business require manpower.

B. Sick Leave

1. A person must call in sick to his Department Manager within an hour

after his work shift has begun. Upon returning to work, he must file the
appropriate form for the sick leave.

2. The Department Manager has the discretion to disapprove requests for sick
leave and require an employee to report to work only when an employee
has exhausted his sick leave credits.

3. The Department Manager may also require the production of a medical

certificate before the sick leave is approved.

3. Tardiness

An employee who reports for work thirty (30) minutes after his scheduled
time-in shall be considered tardy. The employee shall suffer a reduction in
pay for the time he has not yet reported for work. Tardiness shall not be
offset against overtime.

An employee who commits the infraction of habitual tardiness, unless

considered unavoidable or justifiable, shall be penalized in accordance with
the following schedule.

Habitual tardiness shall mean reporting late for work at least three (3) times within a
pay period (15 days).

a. 1st Offense – Written Reprimand

b. 2nd Offense – 10 days suspension
c. 3rd Offense – 15 days suspension and a stern warning for dismissal
d. 4th Offense or an accumulated tardiness of sixty days tardy within a calendar
year – Dismissal

2. Falsification of attendance record

An employee who falsifies his or another employee’s attendance record shall be

dismissed.

B. DISORDERLY BEHAVIOR

1. Creating a disturbance
 An employee who acts in a disorderly manner during work hours, by
shouting, cursing or imprecating, or creating any other kind of disturbance
and interrupts the normal flow of activities shall be penalized as follows:

a. 1st Offense – Written Reprimand

b. 2nd Offense – 5 days suspension
c. 3rd Offense – 15 days suspension
d. 4th Offense – 30 days suspension
e. 5th Offense – Dismissal

In case the disorderly behavior causes injury to persons or damage to

property, the minimum penalty to be imposed shall be a 30-day suspension.
The employee will also be liable for the cost of the damage he caused.

2. Fighting

An employee who instigates, provokes or participates in any fight shall be

punished with a 30-day suspension. In case the fight results in injury to
persons or damage to property, the employee will also be liable for the cost of
the damage.

If an employee is attacked without any provocation on his part, he shall be

exempted from the above penalty.
A second violation of this provision shall be cause for dismissal.

3. Gambling& Playing using Cellular Phone

An employee who indulges in any form of gambling, solicits and/or collects

bet and/or pays out money prizes shall be penalized as follows:

a. 1st Offense – 3 days suspension

b. 2nd Offense – 5 days suspension
c. 3rd Offense – 15 days suspension
d. 4th Offense – Dismissal

4. Intoxication

An employee found bringing into the Company’s premises, drinking, or being

under the influence of intoxicating liquor shall be penalized as follows:

a. 1st Offense – 30 days suspension

b. 2nd Offense – Dismissal

We suggest a separate policy on dangerous drugs as provided under Article V,

Republic Act No. 9165, otherwise known as the Comprehensive Dangerous Drugs
Act of 2002, and DOLE Department Order No. 53-03, also known as Guidelines for
the Implementation of the Drug-free Workplace Policy & Programs for the Private
Sector.

5. Bringing in deadly weapons

An employee who brings any deadly weapon inside company premises shall
be dismissed from the service.

For the purpose of this section, deadly weapons shall include licensed and
unlicensed firearms, “balisong” and knives. (The Company may include other
instruments it considers deadly weapons.)

C. DERELICTION OF DUTIES

1. Loafing

An employee who is not physically present at his work station, without a

valid reason therefor, shall be penalized as follows:

a. 1st Offense – Written Reprimand

b. 2nd Offense – 5 days suspension
c. 3rd Offense – 15 days suspension
d. 4th Offense – 30 days suspension
e. 5th Offense - Dismissal

Loafing shall include extending rest and meal periods, cutting short working
hours, and/or washing up and cleaning before off-time.

2. Sleeping

An employee found sleeping during Company time shall be penalized as

follows:

a. 1st Offense – Written Reprimand

b. 2nd Offense – 5 days suspension
c. 3rd Offense – 15 days suspension
d. 4th Offense – 30 days suspension
e. 5th Offense - Dismissal

3. Misuse of Company time

An employee found to be performing work other than his assigned duties

during Company time shall be penalized as follows:

a. 1st Offense – Written Reprimand

b. 2nd Offense – 5 days suspension
 c. 3rd Offense – 15 days suspension
d. 4th Offense – 30 days suspension
e. 5th Offense - Dismissal

4. Failure to follow standard procedures

An employee who fails to follow standard procedures with respect to security

measures and reportorial requirements of the Company shall be penalized as
follows:

a. 1st Offense – Written Reprimand

b. 2nd Offense – 5 days suspension
c. 3rd Offense – 15 days suspension
d. 4th Offense – 30 days suspension
e. 5th Offense - Dismissal

When such failure results in damage to property, injury to persons, or losses for the
Company, the minimum imposable penalty shall be a 15-day suspension and the
employee shall bear the cost of the damage.

5. Causing unsanitary conditions

An employee who causes unsanitary conditions of the workplace by littering,

eating, and/or smoking therein, shall be penalized as follows:

a. 1st Offense – Written Reprimand

b. 2nd Offense – 5 days suspension
c. 3rd Offense – 15 days suspension
d. 4th Offense – 30 days suspension
e. 5th Offense - Dismissal

6. Damage to or loss of company property through negligence

An employee who loses, damages, disposes of, or causes the spoilage of any
Company property through negligence shall be suspended from five (5) to
thirty (30) days at the discretion of management, depending on the value of
the damage or loss, and shall be required to make good the damage or loss.

This section is without prejudice to the option of management to dismiss an

employee who is found to be guilty of gross and habitual negligence.

D. DISRESPECTFUL BEHAVIOR

1. Disrespect to customers
 An employee who uses abusive or profane language in dealing with a
customer or supplier shall be penalized as follows:

a. 1st Offense – 5 days suspension

b. 2nd Offense – 15 days suspension
c. 3rd Offense – Dismissal

3. Insubordination to superiors

Any employee who disobeys any lawful order of the Company or of a

superior or disregards disciplinary actions imposed, shall be penalized as
follows:

a. 1st Offense – 5 days suspension

b. 2nd Offense – 15 days suspension
c. 3rd Offense – 30 days suspension
d. 4th Offense – Dismissal

An employee who uses contemptuous or disrespectful words, whether oral or

written, towards any Company official is likewise considered
insubordination.

4. Assault

Any physical assault on a superior, attempted or consummated, shall be cause

for dismissal.

On the other hand, any superior who lays hands on his subordinate shall also
be dismissed.

5. Rumor mongering

Any employee who shall circulate or spread rumors, false news and
information, gossip or cause the circulation or spreading of the same, which
cause or tend to cause divisive effects among employees, discredit of,
disrespect or distrust for management, undermine the objectives of the
Company or cause damage to the interest or credit of the Company shall be
penalized as follows:

a. 1st Offense – 5 days suspension

b. 2nd Offense – 15 days suspension
c. 3rd Offense – 30 days suspension
d. 4th Offense – Dismissal
DISLOYALTY TO THE COMPANY

1. Revealing confidential matters

An employee who reveals, divulges or passes Company secrets or

confidential matters or information to unauthorized people to the detriment
of the Company shall be dismissed from the service without prejudice to any
civil or criminal prosecution.

Confidential matters shall include, among others:

Plant processes, programmed schedules, procedures, product development,

present and future plans of the Company, suppliers’ names and addresses,
accounting books & records, payrolls, and contracts.

2.Engaging in similar activity

An employee who engages in an activity similar to, or in conflict with, that of

the Company’s business, or in any activities prejudicial to the Company’s
interests shall be penalized with dismissal.

3. Corruption

An employee who corrupts or allows himself to be corrupted by wrongfully

giving or taking money or any form of consideration to or from any person in
exchange for immediate or future favor, whether or not the employee is
empowered to grant the same, shall be dismissed from the service.

4. Extortion

An employee who uses violence or threat, or misuses his authority over

another person, with the intention to obtain anything of value, or any
acquittal, advantage or immunity of any kind shall be suspended or
dismissed from service, at the discretion of management.

5. Sabotage

An employee who shall maliciously cause any interference with Company

operations or business to its damage shall be dismissed.

F. DISHONESTY

1. Fraudulent employment

Any person who shall procure himself to be employed by the Company by

means of willful misrepresentation or concealment as to his qualifications
 which otherwise would disqualify him and shall receive pay or allowance
under such employment, shall be dismissed.

2. Unauthorized use of Company property

An employee who uses or operates any company vehicle or any other

company property or facilities, such as water and electricity, whether for
personal advantage or not, without proper authorization, shall be penalized
as follows:

a. 1st Offense – 5 days suspension

b. 2nd Offense – 15 days suspension
c. 3rd Offense – 30 days suspension
d. 4th Offense – Dismissal

For purposes of this rule, the authorized employee who allows unauthorized
persons to use company property in their custody, within or outside
Company premises, at any time, shall be suspended for fifteen (15) days for
the first offense, and dismissed for the second offense. If damage to property
or injury to persons result therefrom, the penalty shall be dismissal, plus
restitution of the value of the damages. If the unauthorized person is also an
employee, the same penalty applies.

3. Theft and/or Misappropriation of Property

An employee who shall take away, misappropriate, or otherwise dispose of, without
authority to do so, any equipment, tool, materials and/or supplies, etc. owned by the
Company, his co-employees, or a client, regardless of the condition or value of such
property shall be required to pay for the value of the thing and dismissed from the
service.

For purposes of enforcing this provision, all employees are hereby required to return
all supplies in their custody which were not used for the purpose for which they were
issued. (ex. Parts for installation in client’s equipment)

4. Falsification

An employee who falsifies any document or includes therein a statement he

knows to be false shall be dismissed.

5. Substitution of Company property

An employee who substitutes or attempts to substitute any Company-owned

property with a used or an inferior counterpart shall be dismissed.

6. Perjury
 An employee who willfully gives any false testimony material to the issue or
matter of inquiry in an investigation proceeding shall be penalized as follows:

a. 1st Offense – 30 days suspension

b. 2nd Offense – Dismissal

An employee who refuses to testify after being subpoenaed shall likewise

suffer the foregoing penalties.

G. ENFORCING PENALTIES

1. Multiple violations

Multiple violations of the Company rules & regulations within a calendar

year shall be penalized as follows:

a. Any employee who has received three (3) times or more for various
offenses shall be suspended for ten (10) days.

b. Any employee who has been meted out a 30-day suspension two (2)
times for various offenses shall be dismissed from the service.

2. Simultaneous violations

If an employee commits two or more offenses simultaneously on one

occasion, the penalty for the more serious offense shall be imposed. The
penalty for the lesser offense shall not be imposed on the offender but the
same shall be made part of his disciplinary action record. However, if an
employee subsequently commits the lesser offense at some future time, such
offense shall be the second offense subject to the fixed penalty corresponding
to the 2nd offense.

3. General provisions

The provisions of the Labor Code of the Philippines and its implementing
rules and regulations, as well as other laws and rules and regulations, shall be
applicable.

Further, management reserves the right to modify or add additional

provisions to these rules and regulations of the Company, including the
penalties, which modifications shall take effect upon written notice thereof to
the employees.
Note:
(a) All employees shall enjoy the right to due process, absence of which will
render any administrative action ineffective.
(b) Dissemination to all employees of this rules and regulations is mandatory.
The employer should obtain a written acknowledgmentfrom the employees that the
policy has been read and understood by them.

Signed this ______ Day of __________ Year

Manager Employee