CODE OF DISCIPLINE

CODE OF CONDUCT AND THE PROGRESSIVE DISCIPLINE SCALE

In compliance with the Philippine Labor Code, the Company adopts a system of Progressive Discipline. Our primary goal is to correct behavior and restore professional standards. While we prefer a corrective approach, management reserves the right to escalate penalties based on the severity of the act.

The Disciplinary Ladder

For minor and less-grave infractions, the following steps shall be followed sequentially:

Verbal Warning (Documented) A private corrective discussion between the Manager and the Employee regarding a minor infraction. While verbal, a "Record of Discussion" is placed in the employee’s 201 file.
First Written Warning (Notice to Explain) A formal written notice issued for a repeated minor offense or a first-time moderate offense. This requires a written response from the employee.
Final Written Warning & Suspension Issued for persistent issues or more serious violations. Suspension is unpaid and shall not exceed thirty (30) calendar days.
Dismissal The final step for cases where corrective measures have failed or for "Grave Offenses" that warrant immediate separation from the Company.

Escalation & The "Direct to Dismissal" Rule

The Company is not required to follow the ladder sequentially for Grave Offenses (Serious Misconduct). For acts that endanger the Company’s integrity, finances, or safety—such as Theft, Falsification of Attendance (NFC Tap), Data Breaches, or Violence, Management reserves the right to skip the intermediate steps and proceed directly to a Notice to Explain (NTE) for Dismissal.

The Due Process Requirement (The "Twin Notice" Rule)

No employee shall be dismissed without the "Twin-Notice Rule":

Notice 1 (NTE) A written notice specifying the grounds for disciplinary action and giving the employee at least five (5) calendar days to submit a written explanation.
Administrative Hearing An opportunity for the employee to explain their side, often assisted by a representative if desired.
Notice 2 (Notice of Decision) A written notice communicating the final management decision after considering all evidence (Suspension or Dismissal).

TABLE OF OFFENSES AND PENALTIES

The Company follows the principle of Progressive Discipline, except for "Grave Offenses" which warrant immediate termination.

The Penalty Scale:

VW: Verbal Warning (Documented)
WR: Written Reprimand
SUS: Suspension
DIS: Dismissal (Termination for Just Cause)

CATEGORY A: ATTENDANCE & PUNCTUALITY

Offense	1st Instance	2nd Instance	3rd Instance	4th Instance
Tardiness (More than 5x/month)	VW	WR	SUS (3 Days)	DIS
Habitual NFC Negligence (Forgetting Card)	VW (Manual Entry)	VW (Manual Entry)	WR + PHP 150 Fee	SUS + PHP 150 Fee
AWOL (1-2 days)	WR	SUS (7 Days)	DIS	--
Abandonment (AWOL 3+ Days)	DIS	--	--	--
NFC/Log Manipulation (Buddy punching or logging in before arrival)	WR	DIS	--	--
Policy Circumvention Advice (Instructing others how to evade controls)	WR	DIS	--	--

CATEGORY B: CONDUCT & PROFESSIONALISM

Offense	1st	2nd	3rd	4th
Insubordination (Refusing a direct order)	WR	SUS	DIS	-
Unauthorized Errand (During WFH hours)	WR	SUS	DIS	-
Disrespect (To colleagues, clients, or management)	WR	SUS	DIS	-
Discrimination/Harassment (Safe Spaces Act)	SUS	DIS	-	-

CATEGORY C: INTEGRITY & SECURITY (GRAVE OFFENSES)

Any offense in this category is subject to Immediate Dismissal (DIS) on the first instance.

Theft or Pilferage: Stealing company property or funds.
Falsification of Documents: Tampering with DTRs, medical certs, or liquidation receipts.
Document Fraud: Falsifying receipts, transportation claims, or petty cash vouchers.
Data Breach: Leaking source code, merchant lists, or sensitive passwords.
Drug Use: Testing positive for illegal substances or being intoxicated on duty.
Physical Violence: Fighting or instigating physical harm within company premises.

ABANDONMENT OF WORK/ABSENCE WITHOUT LEAVE (AWOL)

The Company views the unauthorized and unexcused absence of an employee as a serious breach of contract and professional duty.

Definition

An employee is considered in Abandonment of Work (AWOL) if they are absent for five (5) consecutive working days without an approved Leave of Absence (LOA) and without any official communication to their immediate supervisor or the Admin Team.

The Procedure for Termination: To satisfy the "Due Process" requirements of the Labor Code, the following steps shall be taken:

First Notice (NTE & RTWO) On the 5th day of absence, the Company shall send a Notice to Explain (NTE) and a Return to Work Order (RTWO) to the employee’s last known address. This notice gives the employee a final opportunity to explain their absence.
Failure to Report If the employee fails to report for work or provide a valid written explanation within five (5) calendar days from the receipt of the notice, the Company shall move forward with termination.
Final Notice (Notice of Decision) A formal Notice of Termination will be issued based on Abandonment of Work.

Consequences and Penalties:

Forfeiture of Separation Pay Termination due to Abandonment is a "Just Cause" dismissal; the employee is not entitled to any separation pay.
Withholding of Final Pay Final salary and 13th-month pay shall be withheld until the employee completes the Full Clearance Process, which includes the return of all company equipment (laptops, IDs), passwords, and marketing assets.
Employment Record The employee’s 201 file will permanently reflect "Terminated for Abandonment." This status will be disclosed during any future background checks or reference requests from other employers.

NOTE

We value flexibility through our Flexi-Time policy, but we require accountability. Disappearing for 5 days without a word is not just 'quitting' — it is Abandonment. It will result in a terminated status on your record and a hold on your final pay until every piece of company property is returned.

Habitual Tardiness & Undertime

To maintain operational flow, the following are subject to progressive disciplinary action:

Habitual Tardiness/Undertime Frequently failing to complete the required 8 hours or failing to meet shift start times (e.g., three (3) instances in a single month) will trigger a review and disciplinary measures.
Unauthorized Undertime Leaving the workstation before completing the 8-hour requirement without prior approval from the supervisor is prohibited.

DEFINITION OF SUSPENSIONS

To ensure fairness and due process, the Company distinguishes between two types of suspension. Both are administrative actions and do not necessarily mean the end of employment unless the investigation proves a Grave Offense.

Preventive Suspension (Investigation Phase)

This is not a penalty. It is a protective measure used when an employee’s continued presence poses a serious or imminent threat to the life or property of the Company or of their co-workers.

Purpose To allow the Company to conduct a thorough investigation (e.g., in cases of suspected theft, data breach, or physical violence) without interference or tampering with evidence.
Duration Maximum of thirty (30) calendar days.
Pay Status This period is generally unpaid. However, if the investigation is not completed within 30 days, the employee must be reinstated to the payroll (placed on "Paid Suspension") on the 31st day if the Company wishes to extend the investigation.
Reinstatement If the employee is found innocent after the investigation, they may be entitled to back-wages for the period of the preventive suspension.

Disciplinary Suspension (Penalty Phase)

This is a punitive measure imposed after the investigation is finished and the employee has been found guilty of a violation of the Code of Discipline.

Purpose To serve as a corrective action for infractions that are serious but do not yet warrant termination (Category A and B offenses).
Duration Typically ranges from three (3) to fifteen (15) working days.
Pay Status Strictly unpaid.
Record A record of this suspension will be placed in the employee's 201 File and will affect their performance rating and eligibility for certain "Company Bonus" benefits (like the extra 25 days of leave).

SUMMARY OF JUST CAUSES FOR TERMINATION

In accordance with Article 297 of the Labor Code of the Philippines, the Company may terminate an employment relationship for any of the following Just Causes. These legal definitions underpin the penalties found in our Code of Discipline:

Legal Ground	Simple Definition	Workplace Example
Serious Misconduct	Unacceptable behavior showing wrongful intent.	Physical violence, drug use, or sexual harassment.
Willful Disobedience	Intentionally ignoring lawful, work-related orders.	Refusing a direct task from a Lead or Manager.
Gross & Habitual Neglect	Repeated or severe failure to do your job.	AWOL or consistent failure to sync field logs.
Fraud & Breach of Trust	Dishonesty that breaks the employer's confidence.	NFC/DTR Falsification or leaking source code.
Commission of a Crime	Crimes against the company, owners, or peers.	Theft of equipment or physical assault of a peer.
Analogous Causes	Similar acts that prove an employee is unfit.	Violations of the Safe Spaces Act or Data Privacy.

POLICY ON INTER-EMPLOYEE LOANS & FINANCIAL TRANSACTIONS

Statement of Policy

To maintain a professional work environment and prevent misunderstandings, conflicts of interest, or potential harassment among colleagues, SciBiz Informatics discourages and strictly regulates personal financial transactions between employees.

Prohibited Acts

Lending and Borrowing Employees are strictly prohibited from soliciting loans from, or extending personal loans to, their colleagues, especially between a Superior and a Subordinate.
High-Interest Lending (Usury) Engaging in "5-6" or any form of lending for profit (interest-bearing loans) within company premises or during work hours is a Grave Offense.
Debt Collection at Work Pursuing or demanding payment for personal debts during work hours or within company premises is prohibited as it disrupts productivity and causes workplace tension.

Salary Deduction (The "Employer's Hands-Off" Rule)

The Company will not facilitate any salary deductions for personal debts between employees.
Per Article 113 of the Labor Code, an employer shall not deduct from an employee’s wages except for deductions authorized by law (such as SSS, PhilHealth, Pag-IBIG, and taxes) or those made with the employee’s written authorization, including company-approved cash advances.

Consequences of Violation

Conflicts arising from personal loans that lead to shouting, harassment, intimidation, or the creation of a hostile work environment shall be addressed under the Company Code of Conduct.

Minor Infraction (First Offense) Verbal or Written Warning
Repeat or Grave Violation (including usurious lending, harassment, or intimidation) Suspension up to Dismissal, subject to due process

Personal Loans and Financial Dealings

Personal loans and other private financial arrangements between employees are strictly personal matters. The Company shall not assume liability, guarantee repayment, or intervene in the collection of such obligations.

Any dispute, disruption, or conduct arising from personal financial dealings that affects work performance, workplace order, or professional conduct may be subject to disciplinary action, in accordance with Company policies and applicable labor laws.

POLICY ON HUMAN RELATIONS & CHARACTER INTEGRITY

(Legal Basis: Civil Code Art. 19-21, Revised Penal Code Art. 353, & R.A. 10175) The Company believes that a healthy work environment is built on mutual respect. "Toxic" behaviors, such as character assassination and spreading malicious falsehoods, are considered direct violations of the Company’s core values and are subject to disciplinary action.

The Principle of Abuse of Right

In accordance with the Civil Code, every employee must act with justice, give everyone their due, and observe honesty and good faith. The following behaviors are strictly prohibited:

Malicious Falsehoods Knowingly creating, spreading, or circulating "fake news" about a colleague’s personal life or professional competence.
Character Assassination Engaging in persistent, negative talk intended to destroy a colleague’s reputation or cause social exclusion.
Workplace Slander Making oral statements that falsely impute a crime, vice, or defect to a colleague (e.g., false accusations of theft or illicit affairs).

Libel and Cyber-Libel

The Company maintains a zero-tolerance policy for written or digital defamation.

Digital Conduct

Employees are prohibited from using Messenger, Viber, WhatsApp, or any Social Media platform to post defamatory comments about the company or its personnel.

Group Chat Decorum Spreading rumors in "private" group chats is considered a public imputation under the law if it reaches third parties and causes damage to a colleague's reputation.
Investigation of "Toxic" Conduct The Company reserves the right to investigate reports of "toxic" environments.
Grievance Process Any employee who is a victim of defamation should submit a formal complaint to Admin/HR.

The "Clean Hands" Rule

Reporting must be done in good faith. Filing a knowingly false complaint to get a colleague in trouble is itself a Grave Offense and may lead to dismissal.

DISCIPLINARY SCALE FOR CHARACTER

Offense Category	First Instance	Second Instance
Gossip/Rumor Mongering	Written Warning	5-Day Suspension
Slander/Oral Defamation	5-Day Suspension	Dismissal
Libel/Cyber-Libel	Suspension/Outright Dismissal	--
Malicious Accusation of a Crime	Suspension/Outright Dismissal	--

POLICY ON OFFICE DECORUM AND IMMORAL CONDUCT

While the Company respects the personal lives of its employees, it maintains a strict standard of morality and professionalism within its premises and during official work hours.

Prohibited Use of Office Premises The office is a place of business and must be treated with sanctity. The following acts are strictly prohibited

Facilitating Personal Affairs Using the office as a venue for meetings, visitations, or social interactions related to extramarital affairs or illicit relationships.

Unauthorized Entry of Guests Bringing "guests" (such as third parties involved in an affair) into the office for non-business purposes.

Misrepresentation Introducing a person to the office or to colleagues under false pretenses to facilitate a personal relationship.

Disgraceful Conduct Employees are expected to conduct themselves in a manner that does not bring dishonor to the Company.

Scandalous Behavior Any behavior within the office or at company-sponsored events that creates a public scandal, causes distress to other employees or offends the moral sensibilities of the team, is grounds for immediate Preventive Suspension.

Workplace Conflict

Bringing personal "relationship drama" (e.g., confrontations between spouses and third parties) into the office is considered a Grave Violation of Order and Discipline.

Disciplinary Action

Because these acts disrupt office harmony and damage the Company’s reputation, they are categorized as:

Offense	1st Instance	2nd Instance
Bringing Unauthorized Personal Guests	Written Warning	Suspension
Using Office as Venue for Illicit Affairs	Suspension	Dismissal
Immoral/Disgraceful Conduct	Dismissal (if scandalous)	--

WORKPLACE SECURITY & PREVENTION OF ENDANGERMENT

The Company is a professional environment. Every employee has the right to a workplace free from external threats, domestic violence, and personal drama. Any act that compromises the physical safety or security of the office is considered a grave offense.

Liability for Security Breaches

An employee may be held liable for Gross Misconduct if their personal conduct or external relationships result in a security breach. This includes:

Facilitating Unauthorized Access Allowing personal guests (including family members or acquaintances) into the restricted office area without prior Admin clearance.
Domestic Interference Engaging in or facilitating personal conflicts that lead to a "public scandal" or physical confrontation within the building or office premises.

The "Duty to Warn"

If an employee is aware of a personal threat (e.g., an angry spouse or a person threatening violence) that may follow them to the office, they have a mandatory duty to alert Admin/Security immediately.

Disciplinary Action & One-Strike Safety Rule

To protect all employees and maintain a safe workplace, the Company strictly enforces a One-Strike Safety Rule for offenses that pose a high risk of physical harm, violence, or serious disruption. Any act that compromises workplace safety will be dealt with swiftly and decisively, subject to due process.

Covered Infractions and Corresponding Penalties

Infraction	Penalty (1st Offense)
Unauthorized Guest Entry / Bypassing Security Procedures	Written Warning or Five (5)-Day Suspension
Bringing Personal Conflicts, Drama, or Confrontations into the Workplace (including heated arguments, threats, or disturbances)	Dismissal
Endangering Staff Safety (Failure to disclose, warn, or report a known threat, weapon, or potential act of violence)	Dismissal

Policy Notes

The Company is committed to maintaining a safe, respectful, and secure work environment for all employees, clients, and visitors. Any act involving violence, threats, weapons, intimidation, or conduct that compromises workplace safety will be taken seriously and may result in immediate disciplinary action, up to and including termination of employment.

All reported incidents shall be reviewed fairly and objectively, and any disciplinary action will be carried out in accordance with Company policies, due process, and applicable labor laws.