You are on page 1of 9

HR POLICIES AND PROCEDURES MANUAL

Policy Statement:
It is the policy of The Company to provide just and fair treatment of its employees and provide
just working conditions in the office. Thus, The Company follows the rules on Due Process as
contained in the Labor Code of the Philippines (LCP) and the laws contained in the Civil and
Criminal Codes.
All employees regardless of position, level in the organization and employment status are
covered by this policy.
A. Definition of Terms:
1. The Company/The Organization Refers to Venueworld, Inc. or its Management.
2. Committee on the Code of Discipline A committee that will be formed (as
required by Republic Act No. 7877, better known as Anti-Sexual Harassment Act of
1995) to act as investigating body on cases involving sexual harassment and/or all
grave offenses.
3. Company Property Refers to the company-owned or leased furniture and fixture,
vehicles, office supplies, documents, equipment, tools, machinery, computers and
the like.
4. Company Time Refers to the official time an employee is required to report for
work, whether within or outside the company premises.
5. Disciplinary Action Refers to the act of correcting the employees behavior and
imposing the corresponding reformative action/s in order to prevent the infraction or
violation to be committed again.
6. Due Process Refers to the process by which an employee who is allegedly
accused of any violation or infraction is afforded an avenue to defend himself/herself
and be given an opportunity to explain his/her side of the incident.
7. Procedural Due Process refers to the three-pronged system of:
a. The employee is notified of the offenses charged against him/her
b. The employee is notified of the opportunity (Notice to Explain) given him/her
to explain the circumstances surrounding the incident at point and confront the
witnesses against him/her.
c. The employee is notified of the judgment and corresponding sanction
(Notice of Decision)
8. Employee Refers to all employees, whether permanent, probationary or contract
employees and of whatever position or level in The Organization.
9. Infraction/Offense Refers to the negative act or violation against the Code of
Discipline committed by an employee.
10. Notice of Decision (NOD) A memo stating the findings related to the charges
against the employee and the corrective action to be taken.
11. Notice To Explain (NTE) A memo stating the alleged offense/incident.
12. Notice of Administrative Hearing A memo issued by The Company to the
employee of the administrative hearing that will be conducted as part of due process.
13. Prescriptive Period The period in which the disciplinary action is carried out and
is retained in the employees 201 file. The reckoning date for the prescriptive period

begins on the date the penalty is served. If a repetition of the offense is committed
again before the end of the prescriptive period, the reckoning date shall then begin
on the date of imposing of the penalty for the last offense committed.
B. Scope of the Policy:
This policy applies to:
1. All employees performing official duties within and outside The Company premises or
places where there is an official company function/event or while on official business
travel.
2. All employees on off-duty but are within The Companys premises or in a place/venue
where there is an official company event/function.
3. Those acts of commission or omission outside the place of work if they affect the image
and reputation of The Company.
C. General Guidelines:
1. This Code of Discipline (COD) defines basic policies. As time goes by, other
rules and regulations may be issued in the form of general memoranda, which
shall form part of The Companys Human Resources Policies and Processes
and shall be properly communicated to all employees.
2. The COD and other HR Policies and Processes are not the sole references used
for the administration of employee discipline. Also to be used as references are:
The Labor Code of the Philippines, The Civil Code, The Criminal Code and other
applicable legal policies and regulatory provisions.
3. It is the employees responsibility to know these policies and any supplemental
policies applicable to The Company.
4. It is expected that all employees will comply with the policies contained in the
COD. Failure of an employee to comply with the COD may result in corrective
action and may even lead to termination of employment.
5. At some instances, violations of the COD may also be violations of the law and
may result in civil or criminal penalties for the employee and/or The Company.
6. The Company shall enforce corrective action in a progressive manner (meaning
there is a gradual degree of punishment) except for grave offenses, which the
employee may be charged with the highest penalty on the first offense.
7. In cases where a series of similar or the same offenses are committed, each
offense shall be treated as a separate one. The penalty shall be based on the
number of counts the offense was committed vis--vis the penalty prescribed for
such offense.
8. When a single act constitutes two (2) or more offenses, or when an offense is a
necessary means for committing the other, this shall be considered as an
aggravating circumstance and therefore, the penalty for the most serious offense
shall be imposed.
9. An employees habitual violation of the COD (whether the same or different
offense) shall be interpreted as an inability or refusal on his/her part to abide by
the established standards. Thus, an employee may be subject for termination of
employment.

10. In all violations against company property, the employee shall pay back the
replacement cost (depreciated value), property lost, destroyed or make a
corresponding payment aside from whatever corrective action that may be
imposed by The Company due to the violation.
11. Sexual harassment cases shall be covered, handled and interpreted in
accordance with Republic Act No. 7877, better known as Anti-Sexual
Harassment Act of 1995.
D. Types of Penalties
There are different types of penalties depending on the gravity of the offense and
circumstances leading to and/or surrounding the said offense. Thus, decisions as to the
penalty to be imposed would depend upon:
1. The nature of the misconduct, breach, violation or impropriety of the offense/s.
2. The impact or potential impact/seriousness/gravity of the offense/s on customers,
employees, or The Company.
3. Whether it is a repeat violation/offense (even of a different type).
4. The aggravating and/or mitigating circumstance/s surrounding the offense/s.
1. Initial Warning The lightest penalty given in the form of a verbal reprimand (although
documented as proof that it was given) admonishing the employee of the offense/s
committed and reminding him/her of the consequences should a repetition of the
offense/s be committed again.
Documentation at this level does not go into the employees 201 file.
2. Written Warning A written/formal documented penalty and is given to an employee
when he/she continues to commit an offense for which a verbal reprimand was
previously given or the offense committed is serious in nature, even if there was no
verbal reprimand given.
The written warning should contain the following:
A reference to previous documentation of verbal reprimand, if any:
A statement of what the problem is
A statement of the corrective action to be taken
Indicate a further reasonable time period to rectify the offense committed
Indicate future consequence/s should the problem remain uncorrected within a
specified timeframe (e.g. no annual salary increase)
State the disqualification of the employee for an incentive program for the month
State that offense/s will be considered during the annual/semi-annual performance
assessment
3. Suspension This penalty is an enforced temporary cessation of work for a certain
period of time without pay and benefits imposed to an employee who has committed an

offense repeatedly or an offense of a more serious nature which requires severe


corrective action as a penalty.
The duration of the suspension will depend on the nature of the offense.
As authorized by law, a suspension may be preventive, as when the presence in the
office premises or when the continued presence of an employee poses a serious and
imminent threat to the life or property of The Company or that of his/her co-employee,
or when the presence of the employee will be prejudicial to the conduct of the
administrative investigation.
The longest period for a preventive suspension is 30 days. Whether or not the
administrative case is complete, The Company shall reinstate the employee in his/her
former job.
The Company has the prerogative to extend the period of suspension provided that
during the period of extension, The Company pays the wages and other benefits due to
the employee. In such case, the employee shall not be bound to reimburse the amount
paid to him during the extension if The Company decides, after completion of the
hearing to dismiss the employee (Labor Code Book V, Rule XIV, Sections 3 and 4).
4. Payment for Loss or Damage
This form of penalty requires the employee to pay an amount arising from the incident in
addition to other disciplinary penalties, as applicable due to negligence and violation by
an employee of regulations which resulted to damage or loss of Company Property.
Upon approval of The Management, the employee may be allowed to pay the
replacement cost (depreciated value) on installment basis through salary deduction.
In case of termination of employment, the employee shall be required to pay The
Company the full amount or depreciated value of the damaged property due to the
incident.
5. Dismissal/Termination of Employment
Dismissal or termination of employment is the most severe penalty that can be imposed by
The Company as provided for by law to an employee who was found to have committed a
grave or very serious offense.
In cases that lead to a financial fraud/loss or compromise of customer/confidential data or
breach of ethical standards or one who has repeatedly committed the same offense, the
employee automatically forfeits all benefits which would normally assure him/her a
retirement or separation package for reasons other than for cause.

E. Disciplinary Process
1. Once an employee has been found to have committed an infraction/offense against the
Code of Discipline, The Management shall initially investigate the alleged
infraction/offense.
2. If there is reasonable ground to believe that an infraction /offense was committed, The
Management conducts initial investigation and if upon initial information, determines that
there is possible violation against the COD, then The Management prepares a Notice
to Explain Memo (refer to COD forms)
The NTE should contain the following:

A description of the alleged infraction/offense committed


Acts/omissions constituting the offense and attending circumstances
Manner of commission, the place, the time and the date of
commission
Exact provision of the Code of Discipline (COD) violated
Possible penalty if found to have violated the COD

3. The Management issues the NTE to the employee concerned and requires him/her to
submit a written explanation within the prescribed period of five (5) calendar days.
4. The employee acknowledges receipt of the NTE by signing the duplicate copy to
formalize that the infraction/case has been discussed with the employee.
5. Refusal on the part of the employee to acknowledge or sign receipt of the NTE does not
invalidate the infraction/offense. The Management may get a witness to certify that
indeed the NTE was being served and such discussion of the corrective action took
place between The Management and the employee.
6. If the employees continued presence poses a threat to The Company or its employees,
The Management may place the employee under preventive suspension not to exceed
30 days pending investigation. In such case, The Management prepares the Notice of
Preventive Suspension (refer to COD forms).
7. The employee explains his/her side in writing and submits explanation to The
Management within the prescribed period.
8. The Management itself may initiate for an administrative hearing if the letter of
explanation of the employee is not enough to make a decision or if the case needs an
actual face-to-face meeting.
9. Or upon the request of the employee, an administrative hearing may be conducted by
The Management.
10. During an administrative hearing, the employee is given the opportunity to present
his/her side of the case. The employee may present his/her witness/es and/or
representative and may also confront the witness/es brought forth against him/her.
11. During the hearing, the employee may bring in a counsel of his/her choice.
12. In the course of the hearing, minutes of the meeting shall be made and will form part of
the case documentation.
13. If the employee fails to submit his/her written explanation without justifiable reason/s or
fails to attend the administrative hearing, it will be a waiver on the part of the employee
to be heard and to disprove the charges against him/her. In which case, The
Management will decide based on facts on hand.

14. The Management shall evaluate the employees response based on his/her written
explanation and/or side presented during the administrative hearing and refers to the
COD for appropriate penalty/sanction.
15. The Management prepares the Notice of Decision (NOD)- refer to COD forms,
serves it to the employee and discusses its contents.
16. The employee acknowledges receipt by signing a copy of the NOD.
17. Refusal on the part of the employee to acknowledge or sign receipt of the NOD does not
invalidate the corrective action. The Management may get a witness to certify that
indeed the NOD was being served and such discussion of the corrective action took
place between The Management and the employee.
18. If the employee does not report to the office to receive the NOD or already goes on
Absence Without Official Leave (AWOL), the NOD shall be sent to the last known
address of the employee through registered mail.
19. If the employee is found NOT GUILTY, The Management prepares an NOD to clear the
employee from the charges against him/her and serves it to the employee.
20. If the employee who was found NOT GUILTY was placed under preventive suspension,
The Management prepares an NOD to clear the employee from the charges against
him/her and any salaries and benefits unpaid will be paid back to the employee and asks
the employee to report back to work.
21. If the employee is found GUILTY and the sanction is a verbal warning or a written
reprimand, The Management will discuss the decision and will serve the NOD.
22. If the employee is found GUILTY and the sanction is a suspension, The Management
will discuss the decision and will serve the NOD. Likewise, The Management will
determine the actual days of suspension without pay. After the suspension, the
employee is expected to return back to work.
23. If employee is found GUILTY and final sanction is termination of employment, The
Management will discuss the decision thoroughly with the employee and serves the
Termination Letter (refer to COD forms).
24. Depending on the nature and gravity of the offense, The Company may pursue or file a
case (civil or criminal) against the employee.
25. The following factors shall be considered also as a guide in determining the imposition of
a penalty higher of lower than what is prescribed in the existing policy:
Gravity or impact of the offense on the organization
Extent of the negligence
Impact on the customer
Employees past disciplinary record (if any)
Performance record
Other factors which would tend to aggravate or mitigate the case
26. Any administrative investigation must be completed and decision made within the thirty
(30) working days from the first issuance of the Notice to Explain (NTE).
F. Factors to Consider in Imposing Penalties:
There are two factors to consider in making a decision as to the type of penalty to be
given to the employee. These are either Aggravating or Mitigating Circumstances
that may be present prior to, during or after committing the offense.
Aggravating Circumstances

Circumstances that tend to increase the seriousness/gravity of the offense and merit
increasing disciplinary action.

Employee has a previous record of similar offense within the past three (3) years
Employee has been guilty of multiple or habitual misconduct or habitualness
Employee has caused The Company great amount of damage or loss, whether
monetary or not
Employee was motivated by a reward or a promise of reward in the commission
of the offense
Employee has benefited from the offense
Employee occupies a position of trust and confidence such as those trusted with
safeguarding Company funds and properties
Employee has a poor performance record
Employee is under the influence of drugs, or alcohol when he/she committed the
offense
Employee has taken advantage of an emergency situation
Employee has premeditated the commission of the offense
Employee has imposed his/her position upon a subordinate, independent
contractor or other business partner to commit an offense

Mitigating Circumstances
Circumstances that tend to lessen the seriousness/gravity of the offense and merit
decreasing disciplinary action.

Employee has been involved in the service of The Company for a relatively long
period of time
Employee has not committed a similar offense for the last three (3) years
Employee has a good performance record
Employee has not caused substantial damage or loss to The Company
Employee did not benefit from the offense
Employee admitted the guilt simultaneously
Employee did not have the intent to defraud
Employee erred in his/her judgment
Employee followed a wrong order of a superior in good faith or under threats,
intimidation or coercion
Employee was provoked to commit the offense
First-time offenders/violators

G. Types of Offenses
Level 1 Offense: Minor Offense
a. No huge impact to the business or The Company

b. No financial loss to The Company


c. Low risk or impact to The Company, customer and employee security but compromises
compliance to policies
d. No integrity issue involved
e. Merits a penalty ranging from verbal reprimand to suspension
Level 2 Offense: Serious Offense
a. It causes a delay in operations and affects productivity and possible loss of business
b. Compromises the effectiveness of the team, office working relationships or level of
service/work quality
c. Has considerable financial loss to The Company
d. Has a medium risk potential of compromising the security of a customer, client or
employees information
e. It poses a real safety hazard and may cause injury or accident
f. Merits a penalty ranging from suspension (5 days or more) to dismissal
Level 3 Offense: Extremely Serious / Grave Offense
a. Has huge impact to the business or The Company
b. Has great financial loss to The Company
c. Has high risk or impact to The Company, customer and employee security but
compromises compliance to policies
d. Has integrity issue involved
e. Merits a penalty of dismissal or termination of employment
Level 1

Corrective Action

Prescriptive Period

1st Offense

Verbal reprimand

One year

2nd Offense

Written reprimand

One year

3rd Offense

1 to 5 days suspension without pay

One year

4th Offense

10 to 15 days suspension without pay

One year

5th Offense

Dismissal

None

1st Offense

5 to 10 days suspension without pay

Two years

2nd Offense

15 to 30 days suspension without pay

Two years

3rd Offense

Dismissal

None

Dismissal

None

Level 2

Level 3
1st Offense

H. List of Offenses

Note: The list of offenses is not all inclusive since there may be acts or omissions that constitute
as an offense but not indicated in the list, in which case, The Company reserves the right to
apply the most appropriate penalty provided it is in alignment also with the provisions of the
Labor Code of the Philippines, the Civil Code and the Criminal Code.
Repealing Clause
Any existing policies, rules and procedures, which are contrary or inconsistent with any of the
foregoing provisions, are deemed repealed.

Prepared by
Signature

Name

Date

Approved by

Revised by

Revised by

You might also like