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SOP # Revision: Prepared by:

Effective Date: Approved by:

Title: DEV106 EMPLOYEE DISCIPLINE

Policy: It is the policy of the Company to expect all employees to abide by certain
work rules of general conduct and performance at all times to ensure
consistent, fair and equitable treatment for all employees, customers,
suppliers or guests of The Company.
Purpose: To establish the methods for progressive discipline that can be used to
provide employees with the opportunity to correct performance issues.
Scope: Applies to all employees and any level of employee misconduct.
Responsibilities:
All employees are expected to monitor and enforce The Company work
rules equally to ensure consistent and equitable treatment.
The HR Manager should be responsible for overseeing the discipline
process, interfacing with legal counsel regarding discipline issues, and
assisting any employee involved.
The Legal Counsel should be responsible for advising management on the
laws regarding discipline issues and the rights of employees.
Procedure:

1.0 INTRODUCTION TO MISCONDUCT

1.1 Management, supervisors and all employees are expected to monitor and enforce
these work rules equally. Generally, there are four types of transgressions that
constitute misconduct:
 Absenteeism and tardiness problems.
 Policy and procedure violations.
 Substandard performance.
 Behavior and conduct infractions.
1.2 The response or disciplinary action taken should be a function of:
 The number of different offenses involved.
 The seriousness of the offenses.
 The time period and employee response to prior disciplinary action(s)
 The employee’s work history.
1.3 Misconduct can be divided into three levels of severity used to determine the
appropriate response: serious, very serious and inexcusable.

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1.4 Notations should be made in the employee's file recording any offense committed using
DEV106 Ex1 DISCIPLINARY NOTICE. Management reserves the right to
terminate or discipline any employee as considered necessary in individual
circumstances.

2.0 RESPONSES TO MISCONDUCT

This misconduct can occur simultaneously and then be written up individually or
grouped together on one report. The disciplinary action taken is a result of the
severity of the offense.
2.1 Verbal Warning
The first step for any misconduct is to communicate the poor performance to the
employee. The employee should communicate how they will resolve the issue. A
notation should be made in the employee's personnel file using DEV106 Ex1
DISCIPLINARY NOTICE. The notice should be kept for a period of no more
than one year. The notation should include:
 Employee’s name.
 Date of verbal warning.
 Misconduct description.
 Description of expected performance.
 Employee Explanation.
Verbal warnings may be removed from the personnel file after 90 days if the
problem does not arise again. If the situation continues, then the employee should
be given a written warning.
2.2 Written Warning
The second step is to document the poor performance of an employee. The
employee should create a written plan, using specific details, of how they will
resolve the issue. A signed copy of the written plan should be filed in the
employee's personnel file using DEV106 Ex1 DISCIPLINARY NOTICE. The
notice should be kept for a period of no more than one year. The written warning
should include:
 Employee’s name.
 Date of the conversation.
 Misconduct description.
 The date of any prior verbal warnings about the same issue.
 Description of expected performance.
 Employee Explanation and written plan, using specific details, of how they
will resolve the issue.
 Employee’s signature — note any refusal to sign on the signature line in
lieu of the Employee’s signature.
Written warnings should be removed from the personnel file after one year if the
problem does not arise again. If the situation continues, then the employee should

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be suspended for one (1) to five (5) working days with or, in severe cases, without
pay.
2.3 Suspension
The third step is to give the employee one (1) to five (5) working days off from
work so they can decide if they want to continue working for the company, before
they are terminated. Time off should be with pay unless the violations or conduct
may suggest time-off without pay.
If the employee decides to return to work, they should bring a written plan, as
described in a written warning above that should be evaluated and signed by their
manager.
The manager should make it clear to the employee that if the problem continues
employment will be terminated. A signed copy of the written plan should be filed
in the employee’s personnel file for a period of one year.
If no problems arise within the next 12 months, the written plan should be removed
from the personnel file and destroyed. If the situation continues, then the
employee should be terminated.
2.4 Termination
If an employee fails to improve after time-off has been taken, then the employee
should be terminated. The HR Manager should consult with legal counsel before
taken any final action as per ADM107 SEPARATION.

3.0 SERIOUS MISCONDUCT

3.1 The first level of misconduct involves activities that undermine The Company’s
morale or focus, thus leading to a loss of attention to detail, quality or
professionalism. Company management’s first response should include verbal
warnings to alert employees to the unacceptable behavior.
3.2 The disciplinary action for Serious Misconduct for the second offense should be a
written notice with a copy to the employee's personnel file. A third occurrence
should result in a “Final Written” notice. Further occurrences of serious
misconduct may then result in the employee being suspended for one (1) to five (5)
working days with or without pay; or termination.
3.3 Offenses include:
 Unauthorized leave from the work area during the work schedule or
repeatedly exceeding the time allowed for scheduled break or lunch period.
 Unauthorized distribution of literature in the work area or posting on
company property.
 Distraction of other employees, or causing confusion by unnecessary
shouting, catcalls, whistling or demonstration while on company property.
 Punching in more than five (5) minutes prior to the start of the employee's
shift or more than fifteen (15) minutes following the conclusion of their
shift without authorized permission.

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 Engaging in horseplay, practical jokes, gambling, selling merchandise,

solicitation or general loitering while on company property. This applies to
non-shift time as well as shift time.
 Having non-employees on company property at any time without
authorized permission.
 Using profane language on company property, which in management's
opinion is offensive to guests and to other employees.
 Unauthorized manufacture of products for personal use.
 Unauthorized use of the Internet for personal entertainment.
 Improper use of the telephone for personal matters or making non-business
long distance calls.

4.0 VERY SERIOUS MISCONDUCT

4.1 The second level of misconduct involves activities that more than undermine The
Company’s morale or focus but also cross the line of attention to detail, quality or
professionalism. In other words, The Company is now experiencing the effects of
lower morale or focus and such actions could lead to worse harm if continued.
Company management’s first response should include both verbal and written
warnings alerting the employee that the unacceptable behavior is harming The
Company.
4.2 The disciplinary action for Very Serious Misconduct for the second offense should
result in a “Final Written” notice. Further occurrences of Very Serious Misconduct
may then result in the employee being suspended for one (1) to five (5) working
days with or without pay; or termination.
4.3 Offenses include:
 Reporting for work or entering the plant under the influence or when
suffering from a hangover from alcohol, any intoxicant, any narcotic, any
barbiturate, any amphetamine, any hallucinogen, or any other stimulating or
depressing drug.
 Threatening, intimidating, coercing or interfering with any person on
company premises at any time.
 Sleeping on company time.
 Altering, defacing or removing governmental or company notices and
bulletins that are posted on the company bulletin board.
 Gaining unauthorized access to company records and files regardless of
whether they are locked, secured, or protected in some way.
 Handling or operating machines, tools or equipment, which do not come
within the employee's authority.
 Careless or negligent use or operation of company tools or equipment.

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 Failure to immediately report any injury or accident to management

resulting from an on-the-job situation.
 Performing substandard work both in quality and quantity after having been
instructed in proper procedure and technique.
 Unauthorized use of the Internet, The Company E-mail system, or other
company assets for personal profit or gain.

5.0 INEXCUSABLE MISCONDUCT

5.1 The final level of misconduct involves activities that undermine The Company’s
morale or focus, cross the line of attention to detail, quality or professionalism, and
are done with deliberate intent to harm The Company. In other words, The
Company is now experiencing the effects and is being harmed in a substantive way.
5.2 Company management’s first response should include both a verbal and a “Final
Written” notice alerting the employee that the unacceptable behavior has harmed
The Company and that disciplinary action is pending the results of a misconduct
investigation.
5.3 Management should begin an investigation into the extent of the damage to The
Company in order to determine the disciplinary action to be applied.
5.4 The disciplinary action for Inexcusable Misconduct may then result in the
employee being suspended for one (1) to five (5) working days with or without
pay or termination.
5.5 Offenses include:
 Falsification of any reports, reports pertaining to absence from work,
claims pertaining to injuries occurring on company premises, claims for any
benefits provided by the company, communications or records including
personnel and production records.
 Giving false fire alarms, or causing false fire alarms to be given, or
tampering with plant protection equipment.
 Restricting output, or persuading others to do so, or promoting,
encouraging, agitating, engaging in or supporting suspension of work,
slowdowns, or any other interruptions of production.
 Sabotage, or subversive activity of any kind.
 Misuse or removal from the premise, without authorization, of any
company property, or possession of any property removed from company
premise without proper authorization.
 Bringing, using or having in possession weapons on company premises at
any time.
 Bringing, using or having in possession, transporting, selling or promoting
the use of alcohol, any intoxicant, any narcotic, any barbiturate, any

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amphetamine, any hallucinogen, or any other stimulating or depressing

drug on company premise at any time.
 Striking or manhandling another person or fighting while on company
premises at any time.
 Striking a supervisor or other member of management at any time in
connection with any matter relating to employment.
 Theft of any property on company premises, or a theft matter relating to
employment.
 Willful abuse, or deliberate destruction of company property, tools or
equipment or any property on company premises at any time.
 Gross insubordination – a willful and deliberate refusal to follow reasonable
orders given by a member of management.
 Violation of the company's Equal Employment Opportunity, Discrimination
or Harassment Policies.
 Committing an immoral or indecent act while on company property
regardless of whether the act was committed during the employee's shift.
 Altering any employee time card regardless of whether it is the employee's
own card or that of another employee.
 Intentionally punching the time card of another employee or having another
employee punch their time card.
 Conviction of any offense by a court of law which, in management's
judgment, would make that employee undesirable for association with the
company and its other employees.
 Unauthorized use of the Internet or The Company E-mail system to
distribute harmful (i.e. virus) programs or large quantities of unauthorized
e-mail (i.e. SPAM) or to cause serious harm to The Company’s or another
Company’s IP addresses, web sites, domain names, or electronic hardware.

6.0 MISCONDUCT INVESTIGATIONS

6.1 The Company may be required to investigate suspected employee misconduct.
Investigations may be conducted by outside investigators, management, or law
enforcement personnel. All employees are expected to assist any investigation to
the best of their abilities.
NOTE: In an opinion letter released in 1999 interpreting the FCRA, the Federal
Trade Commission (FTC) staff held that outside consultants who regularly engage
in assisting employers for a fee with investigations of alleged sexual harassment are
categorized as “consumer reporting agencies” providing “consumer reports” to the
employer. Accordingly, consultants and the employers using this information may
be subject to the various notices and disclosure requirements associated with
consumer reports (see FCRA below). Internal investigations held by employees of
the company are not necessarily subjected to the same standard.

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6.2 The HR manager should confer with legal counsel to confirm the actions to be
taken before the start of any investigation and determine what the company’s
response should be to requests for a co-worker to be present at any investigation
meetings.
6.3 The HR manager or designated investigator should interview all parties involved to
collect the facts. The investigator should not pass any judgment but instead try to
determine:
 What transgressions have occurred or policies violated
 The extent of the damage or harm caused to The Company or others
 To what extent the parties involved understand the seriousness of what has
occurred in terms of the harm caused and the reason why the rules or
policies exist
 Whether the parties are truly sorry and willing to correct their behavior in
the future
6.4 If an employee asks for a co-worker to be present during an investigation meeting,
then contact the HR Manager before proceeding. The HR Manager should confer
with legal counsel regarding the response. In the mean time, the investigator may
postpone the meeting and continue the investigation without the employee or they
can ask the employee to waive their right to have a co-worker present.
Employees have no right to a co-worker at non-investigation meetings, discussions
about performance, or when they are being informed of a disciplinary decision that
has already been made. But, they may have a right to having a co-worker present
to act as a witness to the investigation. Managers do not have to tell employees
about this right before the meeting begins.
6.5 The investigator should document all of the information collected and produce a
written report of their findings. The report should include an assessment of the
transgressions, damage, the parties understanding of the issues and willingness to
correct their behavior, and recommendations for disciplinary action. The report
should be forwarded to the HR Manager for review and action.
6.6 The HR manager should confer with legal counsel, the CFO or President at the
conclusion of the investigation and before any information is presented to the
employee in question.
6.7 The HR Manager should present the results of the investigation and explain the
disciplinary action to the employee. If the results indicate the employee is to be
terminated, then the employee should be terminated in accordance with ADM107
SEPARATION.
References:

A. FAIR CREDIT REPORTING ACT (FCRA)

The FCRA is designed to promote accuracy and ensure the privacy of the
information used in consumer reports and to guarantee that the information
supplied by consumer reporting agencies is as accurate as possible. Amendments,

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which went into effect September 30, 1997, expanded employer responsibilities to
ensure:
(1) That individuals are aware that consumer reports may be used for employment
purposes and agree to such use, and
(2) That individuals are notified promptly if information in a consumer report may
result in a negative employment or credit granting decision.

Revision History:

Revision Date Description of changes Requested By

0 05/02/03 Initial Release

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DEV106 Ex1 DISCIPLINARY NOTICE

□ Written Warning □ Verbal Warning

Employee Name: _________________________________Date: ____________
Supervisor name: _________________________________________________

Misconduct: □ Serious □ Very Serious □ Inexcusable

Misconduct Description: ___________________________________________
_______________________________________________________________
_______________________________________________________________
______________________________________________________________________
______________________________________________________________________

Has employee been warned about this before? □ No □ Yes-Date__________

Was the employee's activity in violation of company policy? □ No □ Yes
If yes, describe how:
_______________________________________________________________
_______________________________________________________________
Describe expected employee performance:
_______________________________________________________________
_______________________________________________________________
Consequences of failure to improve performance or correct behavior:
_______________________________________________________________
Describe corrective action to be taken by employee: (attach written plan)
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
______________________________________________________________________
Employee Signature: _____________________________ Date_____________
Supervisor Signature: ____________________________ Date_____________

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