IRON WORKS NORTH BEARD PHILS. INC.

Handbook of Company Rules and Regulations of Discipline

General Policies

The following is the Iron Works North Beard Philippines, Inc.

Handbook of Company Rules and Regulations of Discipline which is intended
to provide employees with a general understanding of some of the Company's
personnel policies. It is not an employment contract or a legal document. The
information in this Handbook should be helpful in familiarizing employees
with the Company, specifically, the rules and regulations concerning
employee’s conduct in every facet of Company operation.

This Handbook shall apply to employees within Iron Works North

Beard, Phils Inc. premises and branches, or while undertaking official duties
outside the Company compound. It shall likewise apply during non-working
time and to area outside the company premises if it concerns the work of the
employee, it directly affects the work of the company or company sponsored
activities, it involves Company property or interest, or if the cause of the action
is traceable to the superior-subordinate relationship.

The Handbook of Rules and Regulations of Discipline shall be

implemented without prejudice to the filing of civil and/or criminal suits
against the erring employees. The infractions incurred shall form part of the
201 file of the employee concerned.

No employee Handbook can anticipate every circumstance or question

about policy. As Ironworks North Beard Phils. Inc. continues to grow, the need
may arise and the Company reserves the right to revise, supplement, or rescind
any policies or portion of the Handbook from time to time as it deems
appropriate, in its sole and absolute discretion. Employees will be notified of
such changes to the Handbook as they occur

Everyone is expected to study, understand, and comply with these rules

and regulations. It is each employee's responsibility to know the rules and abide
by them. These rules are not all-inclusive, and other Company regulations may
exist. Employees are expected to know and abide by these rules as well. No one
can plead ignorance of the same.

Objectives.

1. To educate the employees in the fundamental patterns of standard behavior

and performance.

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2. To serve as a constant reminder of what the employees are expected to do in
order to ensure and attain a high level of performance.

3. To instill proper and correct attitude on the part of the employees towards
their work, and,

4. To provide managers, heads, supervisor, and immediate superior with

guidelines in the administration of employee’s discipline and to inform all
employees in the company of the existing rules and regulations on behavior for
their guidance.
Administration

The administration of discipline is a line function and all supervisors

and managers are primarily responsible for the behavior of their subordinates.
Therefore, it is their duty to impose appropriate disciplinary actions after
compliance with the requirements of due process such as notice and hearing as
may be decided by the appropriate company officers.

Disciplinary Committee

A Disciplinary Committee shall be created by the Board of Directors

upon a resolution adopted for the purpose. The composition of the Disciplinary
Committee, which may include members of the Board or officers of the
corporation, shall be at the sole discretion of the Board.

In every case, the decision of the Disciplinary Committee is merely

recommendatory in nature, subject to the final approval by the Board, acting
through the President.

Disciplinary Procedure

1. Upon knowledge and receipt of a report of alleged violation of any rules and
regulations contained in the Handbook, the supervisor or any immediate
superior of the concerned employee shall conduct an initial investigation and
file a report to the Human Resources Department which shall then furnish a
copy to the Disciplinary Committee.

2. The Disciplinary Committee shall send a written notice or letter to the

concerned employee, informing his/her to explain in writing within three (3)
working days from receipt of the above notice or letter why a disciplinary
action should not be imposed for such alleged violation.

5. A duplicate of the written notice or letter must be signed by the employees to

signify that he/she receives the letter. This will become part of his/her 201 files.

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6. Failure of the employee to answer in writing within three (3) days shall mean
a waiver of the opportunity to be heard and air his/her side.

7. The Disciplinary Committee shall now determine and evaluate whether

sufficient facts of the case are already available with or without reply from the
employee concerned after three (3) days.

8. On finding that sufficient facts are on hand, the Disciplinary Committee shall
then prepare a written report on the alleged offense; the findings and
penalty/ies to be imposed including documentary evidence and written
testimonies if applicable and send it to the Human Resouces Department for
proper disposition.

9. If the Disciplinary Committee on the other hand believes that the evidence
available is insufficient to constitute a prima facie case, it may, upon formal
request, seek the assistance of any personnel to conduct further investigation.

10. The Disciplinary Committee shall conduct an investigation on the agreed

schedule and shall thereafter submit a report stating therein its findings and
recommendations, including but not limited to the imposable penalty, to the
President who may or may adopt such recommendation.

11. No penalty shall be imposed against an employee without first complying

with the due process requirements of applicable laws, rules and regulations.

12. Imposition of Penalty. The Board of Directors, acting through the President,
shall have the power to impose penalties for offenses punishable by dismissal
from service and by suspension.

If the penalty constitutes verbal warning and/or written reprimand, the

same shall be given by the concerned employee’s supervisor/ immediate
superior who shall then notify the Human Resources about the incident. The
Human Resouces shall in turn inform the President or his designate about the
matter. Any disposition concerning the incident shall form part of the 201 file
of the employee concerned.

13. The Head of the Human Resources Department or his duly designated
personnel shall prepare a “Notice of Disciplinary Action” informing the
employee/s of the offense/s and shall be furnished the:

a. President or his duly authorized representative;

b. Disciplinary Committee;
b. Human Resource Department; and,
c. Concerned employee.

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 14. Execution of Penalties. The Human Resouces Department shall execute
penalties imposed by appropriate authorities on erring employees.

Classification of Offenses and Scale of Penalties

For violation of any of the following rules, an employee shall be subject to

penalties ranging from a verbal warning and up to, and including, dismissal.

1. Grave Offenses A 1st Offense Dismissal

2. Grave Offenses B 1st Offense Suspension of 6 mos. and
1 day to 1 yr.
2nd Offense Dismissal
3. Less Grave Offenses 1st Offense Suspension of 1 mo. to 6
mos.
2nd Offense Suspension of 6 mos. and
1 day to 1 yr.
3rd Offense Dismissal
4. Light Offenses 1st Offense Verbal Warning
2nd Offense Reprimand
3rd Offense Suspension of 1 week to 1
mo.
4th Offense Suspension of 1 mo. and 1
day to 6 mos.
5th Offense Dismissal

1. Verbal Warning. Verbal notification to the employee that he/she has violated
a rule and/or regulation.
2. Written reprimand. Formal notification in writing to employee that he/she has
violated a rule and/or regulation.

3. Suspension. Loss of work and wages for a specific number days, depending on
the severity of the offense. Notice of suspension is provided to the employee in
writing.

4. Discharge. The employer/employee relationship is severty.

Offenses against Productivity and Work Penalty

Rules
Taking part in any game of chance within company 4
premises (i.e. lottery, betting, card games, etc.)

Abuse of personal privileges (i.e. extended breaks, 4

“walkaway”, wasting time, bringing food or guests
in unauthorized areas, loitering during official time,

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etc.)

Participating either as leader or member in any 3

unauthorized meeting during Company time or
while within Company premises

Inducing a co-employee to commit an infraction of 3

Company rules and regulations
Refusing to render OT, day off, work or holiday 3
work when the load requires him to be on duty

Refusing to be transferred, relocated, or reassigned 3

due to exigency or operation

Duplicating, modifying, and / or illegal installation 3

of IP (Internet Protocol) address

Leaving work without official permission during 4

working hours

Abandonment of work / field project, productive 3

calls (including incoming calls), or jobsite without
official notice despite orders to the contrary.

POOR PERFORMANCE: Inefficiency or poor 3

quality of work as documented through periodic
appraisals, or through established reasonable
standards set forth.

Feigning illness to avoid scheduled work or job 3

assignments

Sleeping on Company time when his work requires 3

him to be vigilant

NEGLIGENCE: Causing or contributing to the

damage of company property or loss of materials
and / or funds where the cost of damage/ loss is:

 Less than P10, 000 3

More than 10,000 but less than 20,000 2
More than 20,000 1
Inciting riot or work stoppage 1
The act of or attempt to maliciously read, delete, 1
copy or modify the email of others

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Offenses against Safefty, health and
security
Allowing a third person, other than an employee of 4
the company, to ride Companyowned- service
vehicles without authorization from the department
head

Creating or contributing to poor housekeeping or 4

unsanitary conditions. (I.e. littering, improper use of
comfort room, etc)

Obstructing aisle, fire exits, or equipment rooms 4

Smoking within prescribed prohibited areas 4
Bringing in within the company premises a camera 3
or video camera and taking pictures without official
permission

Knowingly operating or allowing the operation of 3

any machinery or equipment, including Company
owned motor vehicles, under the conditions
prohibited by law.

Willful violation of safety / warning signs posted in 1

the general working areas

Entering, or gaining access, or attempting to enter or 1

gain access to an area, perimeter, office and other
company premises in violation of instructions
restricting such entry or access

Tampering with or misuse of fire protection 3

equipments and alarm system, and unauthorized use
of fire protection equipments other than its primary
purpose

Submitting false reports and information affecting 1

safety and security of the Company and its
personnel

Transporting or leaving gasoline, alcohol, and other 1

highly flammable liquids in an open or leaking
container

Non-reporting by an employee of his serious 1

contagious disease that might affect his
coemployees

Failure of a supervisor/employee to immediately 2

report within 24 hours an accident or injury that
occurred within Company premises and/or during

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Company time.
Bringing in within Company premises, or being 1
found in possession of any deadly weapon not
necessary to the nature of the Company’s trade or
business, or not necessary in carrying-out an official
function

SABOTAGE: 1
Willful acts which adversely affect the operations of
the company:
 spreading of computer virus
 Tampering of switches and highly technical
devises
 Overstating / understanding of financial records
 divulging/leaking of valuable information,
documents and the like.
 use of, or rendering inoperative mechanical safety
device
 infiltration or manipulation of restricted access
network equipment and devices
 installation of illegal network connections
OTHER SIMILAR OR ANALOGOUS OFFENSES
TO THE FOREGOING

OFFENSE AGAINST INTEGRITY

AND HONESTY

Vending, soliciting, or collecting contributions 4

among coemployees without prior written
permission from any authorized representative

Posting, altering, tampering, or removing any matter 4

on the bulletin board or Company property without
permission or authority

Rendering of part-time services in other companies 1

without the knowledge of the Company (voluntary
disclosure), or engaging in industry /business in
conflict with the existing or future undertaking of
the Company

Lacking prudence in purchase of Company property 2

causing substantial loss or delay in the operations of
the company

Providing service to customers or clients for a 1

consideration, whether in cash or in kind

Public and malicious imputation of a crime, vice or 1

defect, real or imaginary, or any act, omission,
condition, status, or circumstance tending to cause
dishonor, discredit, or contempt of co-employees
and the Company

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Unauthorized disclosure of classified information to 1
person not authorized to possess such information

DISHONESTY: Deliberately giving false testimony 1

in an official investigation. Falsification,
misrepresentation, concealment of facts, or
fabrication of Company documents or records

Soliciting or receiving money or anything of value, 1

share, percentage, benefits or favor from Company
suppliers, clients, customers, visitors, and the like,
personally or through another, for any purpose,
personal or otherwise

Unauthorized act of removing, copying, modifying 1

or reproducing, taking or destroying or attempting
to remove, take or destroy Company official
records, files, or documents that contain classified
or confidential information about any aspect of
Company management, operation, and activities,
including personnel, system, equipments, and
records

Conviction of a criminal act by final judgment in 1

court of law

Forging, unauthorized alteration erasure obliteration 1

or otherwise falsifying Company documents and
papers, including personnel records or malicious
destruction of the same

OTHER SIMILAR OR ANALOGOUS OFFENSES

TO THE FOREGOING

OFFENSE AGAINST CONDUCT AND

DECORUM

Non wearing of ID within Company premises 4

Failure of the superior to report violations of the 3
Company rules & regulations by employee/s under
him with the intent of covering-up/protecting erring
personnel

Bringing, showing, viewing pornographic sites/or 4

materials within company premises or using
company computer

Rumor-mongering and/or spreading intrigues 3

against another employee which tends to cast
dishonor or contempt

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Creating, contributing, or involvement in 3
disturbance resulting in the disruption or delay in
operation

INSUBORDINATION: Refusing, without 3

justifiable cause, to obey, abide and/or implement
any lawful rule, regulation, order, instruction, or
policy issued by the Company or by the employee’s
superior

NEGLIGENTLY inflicting PHYSICAL INJURY to 3

a coemployee, a customer, client, or visitor while
inside or outside Company premises and/or
Company time, if the cause or reason is related or
connected to the performance for the employee’s
duty

DISRESPECTFUL ATTITUDE: Treating by word 3

or deed a coemployee, customers, and / or visitors
in a manner, which indicates contempt or disrespect.

Threatening to inflict harm on the person, property, 2

or reputation of another employee, customer, client,
or visitor.

VERBAL ASSAULT: Threatening, intimidating, 2

coercing, or harassing a fellow employee within or
even outside Company premises if the cause or
reason is related or connected to the performance of
the employee’s duty.
WILLFULLY inflicting PHYSICAL INJURY to a 1
co-employee, a customer, client, or visitor while
inside or outside Company premises and/or
Company time, if the cause or reason is related or
connected to the performance of the employees on
duty.

FIGHTING/QUARELLING: Engaging in violence 1

or combat with another person for any reason other
than the legitimate exercise of self-defense within
Company premises

Failure to uphold the secrecy of communication. 1

(I.e. Operators listening to customers’ conversation
or divulging customers’ personal information)

Possession of any habit forming, regulated, or 1

prohibited drugs, or substances, including
marijuana, within Company premises, or reporting /
commencing work under the influence of prohibited
drugs or a finding of drug use in the annual physical
examination
Taking the life of another person willfully or
through negligence

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LEWD AND LASCIVIOUS ACTS, such as, but not 1
limited to, making sexual advances, asking sexual
favors, kissing, embracing and/or holding private
parts of the body with the particular design to
independently derive pleasure
OTHER SIMILAR OR ANALOGOUS OFFENSES
TO THE FOREGOING

Absences

Type of 1st Offense 2nd Offense 3rd Offense 4th Offense 5th Offense 6th Offense
Absence
Absence Three (3) Five (5) Fifteen (15) Thirty (30) Dismissal
without days days days days
leave or suspension suspension suspension suspension
permission

- unexcused
absence of
one (1) day
AWOL for Dismissal
five (5)
consecutive
days
Absence Verbal
(within a 90 Warning
day period)
3 absences
4th absence Written
warning
5th absence Three (3)
days
suspension
6th absence Dismissal

Tardiness

In cases where tardiness is caused by fortuitous events like strong

typhoon, flood, general transport strike, etc., such tardiness may be excused
upon the discretion of the Management. Excused tardiness shall not be counted
as violation for this purpose. However, all employees who do not report for
work during that day shall be considered on leave unless the Company or the
government decrees it as non-working day.

1st offense (3 tardiness in one month) Verbal warning

2nd offense (3 tardiness in one month) Written warning
3rd offense 3 Day suspension
4th offense 5 Day suspension
5th offense Dismissal

Penalty of Fine

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1. The disciplinary authority may allow payment of fine in place of suspension
if any of the following circumstances are present: a. When the employee is
actually discharging frontline functions or directly dealing with the clients and
the personnel complement of the office is insufficient to perform such function;
and

b. When the employee committed the offense without utilizing or abusing the
powers of his/her position or office.

2. The payment of penalty of fine in lieu of suspension shall be available in

Offenses where the penalty imposed is for six (6) months or less at the ratio of
one (1) day of suspension from the service to one (1) day fine; Provided, that in
Grave Offense where the penalty imposed is six (6) months and one (1) day
suspension if there is the presence of mitigating circumstance, the conversion
shall only apply to the suspension of six (6) months.

Nonetheless, the remaining one (1) day suspension is deemed included

therein. 3. The maximum period to pay the fine shall not exceed one (1) year
from the time the decision/resolution becomes final and executory. The
conversion of suspension into fine is final and executory and, therefore, not
subject of appeal or any other similar relief

4. The failure of the respondent to pay the fine or part thereof shall cause the
reversion to the original penalty of suspension. As such, respondent shall serve
the original penalty of suspension imposed, irrespective of the amount he/she
has already paid.

5. Fine may be paid in equal monthly instalments subject to the following

schedule of payment prescribed below:

a. Fine equivalent to one (1) month salary shall be paid within two (2) months;
b. Fine equivalent to two (2) months’ salary shall be paid within four (4)
months;
c. Fine equivalent to three (3) months’ salary shall be paid within six (6)
months;
d. Fine equivalent to four (4) months’ salary shall be paid within eight (8)
months;
e. Fine equivalent to five (5) months’ salary shall be paid within ten (10)
months; and f. Fine equivalent to six (6) months’ salary shall be paid within
twelve (12) months.

6. The fine shall be paid to the Corporation, computed on the basis of

employee’s salary at the time the decision becomes final and executory.

Forefeiture or Suspension of Fringe Benefits.

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1. Dismissal from service carries with it the forefeiture of all fringe
benefits and privileges.

2.
All fringe benefits maybe considered suspended during the period of susp
ension at the discretion of the Management.

Effectivity.

This Handbook of Rules and Regulations shall take effect upon approval
by the Board in a resolution duly adopted for the purpose.

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