Policy Title

CODE OF DISCIPINE

Rev.
Department Human Resources Policy No. HR-006
No.
Communicate
All Employees Effective Date 01 Oct. 2014 Page 1 of 14
To

Prepared by Reviewed by Approved by

DANILO P. PANCHO JORDAN S. PASCUAL

Sr. HR Manager Chief Executive Officer

A. Policy Statements:

1. JS Philippines Global Corporation (the “Company”) believes that every employee, owing to
his inherent goodness, is capable of conducting himself uprightly through self-discipline.
Thus, the Code of Discipline (COD), like other Company rules and regulations, defines stan-
dards of behavior and deviations thereof.

2. The COD shall govern the conduct of employees in the performance of their duties, responsi-
bilities, or functions. The COD, however, is not designed to be permanent or inflexible.
Thus, the Company may, from time to time, amend, alter, modify, change or repeal the COD
and/or add other rules that it may deem appropriate to promulgate.

3. It is the sincere desire of the Company to help all employees in every way possible to suc -
ceed in their respective endeavors. However, willful or inexcusable breaches of the COD will
be dealt with firmly under a uniform policy such that the provisions of the COD, unless pro -
vided for in specific company policies, shall apply to all employees of the Company regard-
less of status, level or position.

4. The Company views disciplinary sanctions as a corrective and preventive action rather than a
punitive one. The Company realizes that the promulgation of the COD becomes necessary
to protect its interests and the interests of its employees, customers, suppliers, contractors,
and guests and to ensure that everyone is safe, secure, and satisfied within the group.

B. Coverage

This policy covers all regular employees and direct-hired casuals of the Company.

C. General Guidelines

1. The COD does not cover all acts or omissions which may run contrary to the acceptable stan -
dards of conduct and behavior. With respect to such acts or omissions, these shall be dealt
with by analogy to similar provisions in the COD.

2. The provisions of the COD notwithstanding, the Company has the right to impose such other
sanctions as maybe provided by the Labor Code and/or other pertinent laws, rules, and reg-
ulations. The imposition of corrective action against an employee under the COD does not
prejudice the right of the Company to file a civil, criminal, or such other appropriate action
against the employee concerned.
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3. All employees are obligated to report any knowledge of violation of the COD to their superi -
ors and/or to HR. Failure on the part of the employee to perform this obligation shall be
considered an act of omission and shall be dealt with appropriately in accordance with the
provisions of the COD.

4. The Company has sole jurisdiction to administer the COD. The due process requirements as
provided for by law shall be observed in all the proceedings. Ignorance of the COD shall not
be an excuse for any infraction and its corresponding corrective or legal action(s). Employees
are expected to manifest obedience to the rules of orderly conduct, exercise self-control,
show respect to their superiors and co-employees, be considerate of the rights of others,
and to accept the consequences of their acts.

5. Employees are expected to show respect for the Company by keeping all areas clean, neat
and orderly. They should report damages done to Company property, whether they are re-
sponsible for these or not. They should handle vehicles, equipment, furniture and fixtures,
and any other Company property with reasonable care and fidelity. They should secure
prior written approval in case they will use Company property for personal purposes within
or outside the Company premises.

6. The corrective action specified for any of the unacceptable conduct and behavior shall be
the general guide for any infraction thereof. The Company may reduce or increase the sever-
ity of the corrective action on a case-to-case basis, subject to the mitigating or aggravating
circumstances surrounding the situation in which the infraction was committed, the degree
of trust and confidence bestowed on the employee who committed the infraction, and the
extent of damage or loss suffered by the Company because of said infraction.

7. The imposition of suspensions shall be consecutive and not concurrent. An employee who is
meted out two or more suspensions resulting from a series of acts or omissions shall there-
fore serve all suspensions one after the other.

8. Where unacceptable conduct or behavior proceeds from a series of acts or incidents involv-
ing two or more distinct infractions, the more severe corrective action for these infractions
shall be imposed and served first.

9. For purposes of determining the continuity of successive infractions of similar nature, an em-
ployee may be considered cleared of previous misconduct or misbehavior if, within a pre-
scribed period counted from the date of the commission of the last offense, an employee
has not committed any other offense of similar nature. The prescriptive period for offenses
shall be as follows;

a. For Category 1 to 3 offenses, a period of one (1) year since the commission of the
immediately preceding offense.
 Policy Title

CODE OF DISCIPINE

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To

b. For Category 4 offenses, a period of three (3) years since the commission of the im-
mediately preceding offense.

10. If an employee commits another offense of a similar nature before the prescribed period of
his previous offense has elapsed, the new offense shall be considered as a continuation of
his previous offense. However, if an employee commits another offense of similar nature af-
ter the prescriptive period has elapsed, the new offense shall again be considered as a 1st
Offense.

D. The Code of Discipline

1. Unacceptable conduct and behavior shall be classified according to their nature as follows:

A. Offenses Against Standard Operating Procedures

B. Offenses Against Moral Standards and Good Conduct
C. Offenses Against Productivity
D. Offenses Against Persons, Safety & Health, Security, and Public Order
E. Offenses Against Company Property and Interests

2. Unacceptable conduct and behavior shall further be categorized according to their severity.
The corrective actions for each category shall be as provided for in the following table:

TABLE OF CORRECTIVE ACTIONS

Category 1st Offense 2nd Offense 3rd Offense 4th Offense 5th Of-
fense
1 Verbal Warning Written Warning 1 to 6 days suspen- 7 to 15 days sus- Dismissal
sion pension
2 Written Warning 1 to 6 days suspen- 7 to 15 days sus- Dismissal
sion pension
3 1 to 6 days suspen- 7 to 15 days sus- Dismissal
sion pension
4 7 to 15 days sus- Dismissal
pension
5 Dismissal
Note: All suspensions of 7 days or more shall include a Final Warning of Dismissal for the next
offense of a similar nature.

3. Table of Unacceptable Conduct and Behavior and their Categories

A Offenses Against Standard Operating Procedures Cat.

.
 Policy Title

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1. Unauthorized deviation from normal duties and responsibilities, 1

systems, procedures, standards, or flow of operations.

2. Failure or refusal to follow the guidelines on wearing the Com- 1

pany uniform or dress code.

3. Holding unofficial and non-business related meetings within the 1

Company premises without prior permission from the Company.

4. Unauthorized operation, use, or possession of machine, tools, 1

equipment, or vehicles which has not been assigned to the em-
ployee (not resulting to any damage).

5. Using Company's time, materials, tools, machines, equipment, 1

vehicles, or other Company property for unauthorized work; or
performing unauthorized task other than assigned work. (In-
cludes surfing the web and other online activities for non-busi-
ness purposes).

6. Unauthorized posting or removal of any item on any part of the 1

Company premises.

7. Entering or allowing an unauthorized person to enter in a re- 2

stricted area.

8. Using someone else's password to access the system, or allowing 2

others to use one's password for access to confidential, re-
stricted, and privileged information.

9. Failure to liquidate expenses within the prescribed timeframe 2

set by Finance.

10. Unauthorized use or allowing other persons to use Company 3

supplies, materials, facilities, tools or equipment resulting in loss
or damage. (Actual penalty will depend on extent of loss or dam-
age suffered by the Company).

11. Gross, habitual errors, losses, or waste in the performance of 4

one’s work regardless of cost.

12. Gross, habitual violation of work-related systems and procedures 4

and other Company procedures.

B. OFFENSES AGAINST MORALITY AND GOOD CONDUCT Cat.

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1. Any act of discourtesy, simple insubordination, and minor inde- 2

cent conduct towards anybody within Company premises.

2. Engaging in gambling, lottery, or any game of chance within 2

Company premises during official time.

3. Unsolicited explicit sexual remarks or use of any abusive lan- 2

guage to anybody within Company premises or during Company
activities.

4. Showing pornographic materials, pictures, or literature during 2

Company time or in Company premises.

5. Rumor-mongering, giving or spreading false information about 2

co-employees or Company officers without basis or support.

6. Abusive conduct of superior or Company officer towards subordi- 3

nate, using the superior's status, power, or discretion.

7. Discourtesy to customers, visitors, or clients. 3

8. Discourteous conduct (use of profane language, harsh tone of 3

voice, or belligerent body language aimed to insult persons) dur-
ing working hours and within Company premises or during off-
site Company activities.

9. Engaging in any activities that may cause physical harm to any 3

other person or damage to Company equipment.

10. Making vicious or malicious statement about any employee of 3

the Company.

11. Drinking any alcoholic beverages within Company premises un- 4

less authorized on certain occasions.

12. Entering the compound under the influence of liquor, prohibited 4

drugs, and/or any other abused substance.

13. Engaging in money lending as a form of business, selling any kind 4

of tickets, buying or selling any goods, making or collecting pay-
ments for such goods within Company premises or during official
working hours.

14. Being under the influence of liquor while inside the Company 4
premises.
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CODE OF DISCIPINE

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15. Being under the influence or in possession of unlawful drugs, 4

narcotics, or other substances for abuse, inside Company
premises.

16. Committing acts, whether on or off duty, which are scandalous in 4

nature or which, in any manner, may disturb the peace and order
within the Company or affect job performance.

17. Distribution, or assisting in the distribution, of narcotics, prohib- 5

ited drugs, and other illegal items inside the Company premises.

18. Deliberately participating, condoning, or tolerating an offense 5

committed by a superior to subordinate or co-employee; coerc-
ing, bribing or inducing others to violate Company rules.

19. Offering or accepting anything in exchange for a job, work assign- 5

ment, work location, or favorable condition of employment.

20. Sexual harassment or using one's power, position, or status in 5

convincing a co-employee or subordinate to have sexual rela-
tions or engage in lascivious acts.

21. Unprovoked insolence or disrespect towards any customer or ac- 5

quaintance of the Company.

C. OFFENSES AGAINST PRODUCTIVITY Cat.

1. Excessive Tardiness (being tardy for less than 15 minutes 4 times 1

or more in one month, or being tardy for more than 15 minutes
in any work day).

2. Participating, creating, or allowing loud and boisterous noise or 1

chatting that is not work-related during official working hours
and within Company premises.

3. Wasting time or loitering in any other place away from work dur- 1
ing working hours.
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4. Absence w/o Leave (AWOL): 2

a. Being absent from work without prior permission and without

reasonable cause.

b. Failure to notify the immediate superior or his designated

representative within the first hour of the employee's official
time when unable to report for work without reasonable
cause.

c. Extending absence after a day-off, or incurring an absence be-

fore a day-off without valid reason.

d. Failure to file a leave of absence, or to present a medical cer-

tificate after being on sick leave for two or more days.

5. Continuous Absence without Leave (AWOL) for a period of 3 to 5 4

working days.

6. Abandonment of Job - being on continuous AWOL for a period 5

exceeding 5 working days.

7. Bringing children for "baby sitting" purposes inside the office 2

during working hours or overtime work.

8. Failure to attend Company sponsored training, seminars, work- 2

shops, orientation (internal or external), or inventory-taking
without justifiable reason, resulting to a loss of the Company’s
investment or compromising the Company’s assets or funds.

9. Failure to report for overtime without good reason, after being 2

scheduled to work according to overtime policy (only applicable
for employees with OT pay).

10. Abandonment of Post - Leaving work assignment or the Com- 3

pany premises during Company hours without permission from
the immediate superior.

11. Sleeping on Company time, or pretending to be sick (malinger- 3

ing) to avoid doing assigned work:

12. Gross negligence in the performance of assigned duties. 4

D Offenses Against Persons, Safety & Health, Security, and Public Or- Cat.
. der
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CODE OF DISCIPINE

Rev.
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All Employees Effective Date 01 Oct. 2014 Page 8 of 14
To

1. Failure to report a personal injury occurring during working 1

hours inside Company premises.

2. Failure to use identification card and/or uniform (during working 1

hours) whenever required in accordance with Company policy.

3. Smoking within the Company premises and inside the Company 1

vehicles.

4. Violating other safety rules or practices. 1

5. Contributing to unsanitary conditions or poor housekeeping. 1

6. Permitting others to use one's ID card, or using someone else's 2

ID card.

7. Inflicting injury on another person anywhere, at anytime, within 3

the Company premises, or participating in brawls, horse-playing
or any non-work related activity that causes bodily injury.

8. Provoking or instigating a fight at any time within the Company 3

premises.

9. Putting the Company name or officers and co-employees at risk 3

due to lack of knowledge or negligence in the assigned task.

10. Engaging in any activities that may cause damage to Company 3

equipment and other tangible resources.

11. Threatening, intimidation, coercion, harassment, or interference 4

in the job of another employee.

12. Unauthorized possession or use of a deadly weapon or other 4

substances that can endanger life, inflict injuries, or cause dam-
age to properties within the Company premises.

13. Stealing from Company clients, customers, guests, and visitors or 5

friends while on duty or within the Company premises.

14. Insubordination or intentional refusal or neglect to obey Com- 5

pany rules, or to perform critical work assigned by superior, un-
less it entails serious danger to life or Company property.

15. Commission and conviction of any crime prejudicial to the secu- 5

rity of the Company and its employees.
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16. Commission of any crimes of threat or coercion against any em- 5

ployee as defined and penalized by the revised Penal Code.

17. Gross neglect of duty which results to a bodily injury, accident, or 5

stoppage of operations.

18. Willful concealment of contagious disease which endangers the 5

health of other employees.

19. Conviction of any crime punishable by imprisonment under the 5

revised Code of the Philippines.

E. OFFENSES AGAINST COMPANY PROPERTY AND INTERESTS Cat.

1. Vandalism or unauthorized writing or scribbling in any part of the 2
Company premises.

2. Failure to report to a Company officer any damage or problem 2

committed against Company resources within 24 hours upon dis-
covery.

3. Failure to report to a Company officer within the 24 hours upon 3

discovery, and without any valid reason, any loss, theft, or rob-
bery of collections, funds, or forms resulting to loss or damage of
Company property or funds. (Actual penalty will depend on ex-
tent of loss or damage suffered by the Company).

4. Failure to give explanation upon request in an investigation con- 3

ducted by the Company.

5. Failure to review cash or check transactions, which resulted to 3

over payment, before releasing the cash or check to concerned
persons or company.

6. Making vicious or malicious statement about the Company or 3

any of its products and services.

7. Damaging, stealing, or misusing the Company’s or other people’s 4

property within Company premises.

8. Giving false testimony during a Company investigation, or with- 4

holding critical information regarding certain events, incidents,
practices, or transactions which are anomalous in nature or are
detrimental to the interest of the Company.
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9. Unauthorized possession of master keys, pick-locks, or similar 4

tools that can open any locker, desk, drawer, or any room or
door under lock or key.

10. Concealment of knowledge of any irregularity or violations detri- 4

mental to the interest of the Company or refusal to participate in
any hearing or investigation of interest to the Company.

11. Altering, tampering, or misrepresenting on any transaction 5

within or outside the Company.

12. Any form of connivance with fellow employees which resulted to 5

loss or damage of Company property.

13. Engaging in a business or ownership of which makes one a com- 5

petitor of the Company.

14. Falsification of any Company records or documents pertaining to 5

or used for any transaction within or outside the Company.

15. Intentionally receiving money or any other form of compensa- 5

tion from an individual of or outside Company for services ren-
dered in connection with any Company transaction such as home
service, etc.

16. Issuing unofficial or fake receipts for payments made by cus- 5

tomers.

17. Inciting or participating in concerted work stoppage, slowdown, 5

mass leave, or other similar disruptive activities.

18. Engaging in sabotage (e.g. restricting output, slowdown work, 5

damaging or rendering vehicles, machines, equipment, immobile
and non-operational.)

19. Substitution of Company materials with another of inferior qual- 5

ity or less value for personal profit.

20. Tampering of receipts or padding of expense accounts for reim- 5

bursement from Company, or charging to the Company unautho-
rized expenses.

21. Using Cash Sales and Petty Cash for personal use. 5

22. Using the Company or its properties for illegal activities or for 5
personal gain or benefit.
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23. Unauthorized possession or bringing out of Company property, 5

record, supplies, equipment, etc.

24. Distributing written or printed matters unfavorable or detrimen- 5

tal to the interest of the Company.

25. Failure to turn cash receipts or other collections of Company on 5

time, and to issue corresponding receipts for sales or collections
made.

26. Sharing critical and confidential Company information to unau- 5

thorized persons within or outside the Company.

27. Falsifying, forging or making misrepresentation of any record 5

when applying for employment or corrupting data during the
term of employment for personal gain.

28. Fraud or willful breach by employee of the trust reposed in him 5

by the Company or its representative.

E. The Corrective Action Due Process

1. It is expressly understood that all the corrective actions provided in the COD shall only
be implemented after all the legal requisites of procedural due process have been com-
pleted as enumerated below. To ensure that the procedural due process is observed,
the following actions must be carried out:

a. Upon noticing or receiving a report about the employee’s alleged infraction, the im-
mediate superior:

i. Shall conduct a preliminary investigation to determine if there is a cause for

corrective action; and

ii. Based on the results of his preliminary investigation, prepares a Notice To

Explain (NTE) to the employee which must contain the following:

a) A description of the alleged act or omission of the employee which con-

stitutes a violation of the COD, the place and time where the alleged act
or omission was committed, and witness or witnesses to the alleged act
or omission, if any.

b) The particular provision of the COD which has been violated by the em-
ployee’s alleged act or omission and the corrective action that will be
imposed if the employee is proven guilty of the violation; and
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c) A direct instruction to the employee to explain his side in writing within

five (5) working days from the receipt of the report, with the warning
that if the employee fails or refuses to submit a written explanation
within the stated time period, he shall be deemed to have waived his
right to explain and has admitted the commission of the alleged act or
omission.

d) The setting and scheduling of an administrative investigation which must

be conducted not earlier than seven (7) working days, but not later than
fourteen (14) working days, after the receipt of the said notice and
which the employee must be required to attend.

b. The immediate superior serves the Notice of Irregularity to the employee and in-
structs him to acknowledge its receipt by signing his name and writing down the
date and time when the notice is received. Should the employee refuse to sign, the
immediate superior notes down in the NTE, “refused to receive”, and have it signed
by a witness who saw the employee refusing to accept the NTE.

c. On the stated schedule of the investigation, the immediate superior shall conduct
said investigation, whether or not the employee has submitted his written explana-
tion. During said investigation, the employee will be confronted by the witnesses
and with all evidence against him. Minutes of the meeting/hearing shall be taken.
On certain situations, the immediate superior may consult and/or ask HR’s assis-
tance in conducting the investigation of the case. At the conclusion of the hearing,
the immediate superior evaluates the case if corrective action is warranted.

d. If, in the judgment of the immediate superior, a corrective action is necessary, he

prepares a Notice of Corrective Action, addressed to the employee and copy fur-
nished to HR, and which must contain the following:

i. A summary of the results of the investigation conducted on the employee’s

violation. This should include the description of the act or omission of the
employee which constituted a violation of the COD, the place and time
where the act or omission was committed, and the witness/es to the act or
omission, if any.

ii. The particular provision of the COD which has been violated by the em-
ployee’s act or omission; and

iii. The corrective action that is being imposed on the employee, including the
inclusive dates of the suspension, if any.
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2. In appropriate cases, especially if the offense committed is grave and the evidences are
strong against the employee, and/or where the employee’s continuous presence poses
an imminent or actual danger to person and property, the employee charged may be
placed under Preventive Suspension, pending investigation of his case, for a period not
to exceed thirty (30) days.

3. If the case is not resolved within the said 30-day period, or the preventive suspension
has already lapsed without any resolution yet, the employee shall be reinstated to work
with pay. If the employee, after hearing and investigation, is found to be innocent and is
exonerated, he shall be paid back wages for all the days that he was under preventive
suspension. However, if the employee is found guilty and is only suspended, the num-
ber of days of his suspension penalty will be matched against the number of days he was
put on preventive suspension. If the number of days of his preventive suspension is
longer than his supposed penalty, the company shall pay him for the difference. On the
other hand, if his penalty is longer that the days he was on preventive suspension, the
employee shall only serve the difference in the number of days.

4. All documents, notices, decisions, orders, minutes and other papers generated as a re-
sult of, or in connection with a corrective case shall form an integral part of the em-
ployee’s 201 files.

F. Effectivity

1. The Code of Discipline shall take effect fifteen (15) days from its posting in the bulletin
boards within Company premises.

2. All previously issued rules and regulations, orders, directives, memoranda, instructions,
notices and circulars shall continue to have force and effect unless the same are in con -
flict with the provisions of the COD in which case the former are deemed accordingly
amended, modified or repealed as the case may be.

3. Other rules and regulations, orders, directives, memoranda, instructions, notices, and
circulars issued supplemental or in addition to, modifying, implementing, interpreting or
repealing any provisions of the COD shall take effect forty-eight (48) hours after its post-
ing in the bulletin boards within Company premises.

G. Acceptance of the Code of Discipline

1. A copy of the Code of Discipline shall be given to each employee of the Company, re-
ceipt of which shall be acknowledged by each employee. The receipts shall be kept in
the employees 201’ Files.

2. All new employees shall be issued his copy of the COD upon his employment with the
Company.
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3. Any existing employee of the Company, by the continuance of his employment in the
Company, is deemed to have accepted the COD and binds himself to comply with its
provisions.

- End of Policy -