02 - Code of Conduct

INTRODUCTION:
T he necessity of drafting a new Company Rules and Regulation (CRR) is indispensable in order to cope
with the ever changing intricacies of time. The loss of employment of those poor employees continue to haunt the
present framers of this piece for they also have their own family to feed, children to send to school and worse,
expenses for the hospitalization of a family member when termination might arise.
On the other hand, the Supreme Court in one case rationalized in this wise the policy of social justice, and I
1
quote:
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“The policy of social justice is not intended to countenance wrongdoing simply because it is committed by
the underprivileged. At best it may mitigate the penalty but it certainly will not condone the offense. Compassion for
the poor is an imperative of every humane society but only when the recipient is not a rascal claiming an undeserved
privilege. Social justice cannot be permitted to be the refuge of the scoundrels any more than can equity be an
impediment to the punishment of the guilty. Those who invoke social justice may do so only if, their hands are clean
and their motives blameless and not simply because they happen to be poor. This great policy of our Constitution is
not meant for the protection of those who have proved that they are not worthy of it, like the workers who have
tainted the cause of labor with the blemishes of their own character.”1 End quote.
Thus, it has become a big challenge to draft a policy, company rules and regulation that is neutral both
capitalist and proletariat. To equally balance the so called “management prerogative” and rights of the employee,
there must be legal basis, under the 1987 Constitution, “The State affirms labor as a primary social economic force. It
shall protect the rights of the workers and promote their welfare.” 2 There must also be moral basis, “these two
classes (capital and labor) should exist in harmony and agreement, since each requires the other. Capital cannot do
without labor, nor labor without capital. Mutual agreement results in pleasantness and good order, perpetual conflict
necessarily produces confusion and outrage. In preventing this kind of strife and in making such strife impossible, the
efficacy of Christianity is marvellous and manifold.3 For you shall eat the labor of your hands: happy shall you be,
and it shall be well with you.4
Now equipped of both legal and moral basis, let the executors always apply the principles in this code with
wisdom, justice and fairness. And to quote from the French Philosopher Voltaire “with great power comes great
responsibility. To whom much is given, much is also expected”.
MESSAGE FROM THE CHAIRMAN/CEO:
Greetings in the name of the Lord,

It’s been a little while since the introduction of the previous Code. Honestly, I am struck by the subtle
change of our fundamental values and standards common to human nature of which misguided our decisions and
operations in this rapidly changing environment. This latest edition of our Code of Conduct (Rules and Regulations)
is simple, clear and concise. It formulates GODLY values and standards in order to address new challenges.
1
PLDT Co. vs. NLRC et al., G.R. No. L-80609, August 23, 1988.
2
2
Sec.18, Art.II, Declaration of Principles and State Policies.
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3
Pope Leo XIII, Rerum Novarum (Labor’s Charter of Liberty).
4
King James Bible, Psalm 128:2
I ask that you take the time to thoroughly review this edition and reflect on how each of us can further
promote the policies, objectives and aim of this Code in every way in which we serve our clients/customer and
business partners.
You and I are responsible for the RGC’s reputation. I know I can count on you to put our values at the
center of what you do. I would also like to emphasize that there should be no question that “a cheat deserves neither
reward nor sympathy.”
God bless us all.
Sincerely,
Mr. Jonito C. Racal5

The Chairman and Chief Executive Officer
CORE VALUES:
 Godliness:
That is following Christian virtues and the laws enacted by the duly constituted authorities, acting honorably
and treating each other with respect. Acting with justice, giving everyone his due, observing honesty and
good faith, and being ethical at all times. Uprightness is a character.
 Occupied:
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5
The Chairman and Chief Executive Officer of the Racal Group of Companies (RGC), a low-profile and self-denial
philanthropist, loved by his employees scattered nationwide.
That is being painstakingly industrious, unselfish dedication of time, talent, effort and values mutually for the
success of the company and one’s advancement. The Company believes in the saying: “If anyone is not
willing to work, let him not eat.”6
 Dependability:
That is doing what is anticipated when it is expected. Capable of devising ways and means, self-motivated,
self-sufficient. Not being a burden to others, able to carry out the assigned task and work effectively.
 Loyalty:
That is being steadfast to the company as a whole. All employees must believe to the company’s quality
products and give devoted allegiance to this Code by words and by deeds.
 Yielding:
That is an employee who is acquiescent to protocol, the duly established Company Rules and Regulations,
Laws and ethical standards common to human relations and norms. Tolerantly mature in his dealings with
his fellow employees. Resignation is the last resort, “walang iwanan”.
I. POLICY:
 The Racal Group of Companies (RGC) shall promote the principle of shared responsibility between the
employees and the management and the preferential use of voluntary modes in settling disputes, including
conciliation and shall enforce their mutual compliance therewith to foster industrial peace.
 To provide an adequate administrative machinery for the expeditious settlement of labor or industrial
disputes,
 To ensure stable but dynamic and just industrial peace.

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2 Thessalonians 3:10
 To encourage a truly democratic method of regulating the relations between the management and the
employees by means of sound rules and regulations.
 The RGC shall promote and develop a tax-exempt employee’s compensation program whereby employees
and their dependents, in the event of work-connected disability or death, may promptly secure adequate
income benefit, and medical related benefits through cooperatives and/or insurance policies.
II. SCOPE OF POLICY:

The terms of this Policy shall be observed exclusively in the following corporations of the Racal Group of
Companies and by all employees who falls within the registered scope of the applicable laws of the Philippines. To
wit:
 Racal Motors Assembly Corporation (RMAC);

 Racal Motorcycle Parts Corporation (RMPC);
 Racal Motorsales Corporation (RMSC);
 Racal South Motorsales Corporation (RSMSC) and
 Racal VISMIN Motorsales Corporation (RVM-MSC)
 Racal Ceramics Bargain Center, Inc. (RCBCI)
 Stonetreasures International Trading Corporation (SITC)
 Ha Shain Zhang Trading Corporation (HSZTC)
 My Home Depot Inc. (MHDI)
 KeraMix Specialty Products, Inc. (KMSPI)
 Racal Hardwares Corporation (RHC)
III. OBJECTIVES:
To establish a standard set of rules and regulations for the entire corporations listed above whereby all
employees will adhere to and to adopt such rules and regulations as a standard code of conduct for all employees.
IV. AIM7:
Our aim is to provide efficient and effective service thru sound management, continuous development of policies,
crafting of rules and procedure and the adoption of sound business practice to guide personnel functions which
would result into harmonious industrial relations for the benefit of both capitalist and labor force.
V. PERIOD OF OPERATION:
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By Atty. Rene Q. Pahulayan.
This policy in respect of employee’s conduct, rules and regulations will remain in force until amended and
approved by the HRD Rules and Regulation Policy Makers with the majority votes of the listed corporation’s Board of
Directors combined.
VI. DEFINITIONS:
All expressions used in this Policy, which are defined in the Labor Laws of the Philippines, its Implementing
Rules and Regulations and all applicable Decisions of the Supreme Court of the Philippines, shall bear the same
meaning unless the contrary intention appears, words importing the masculine gender shall include the feminine.
VII. INTENT OF THE POLICY:

The purpose of this policy is to establish a common and uniform procedure for the management of employee
code of conduct (rules and regulations) and to replace all existing procedures and regulations in this regard.
The code is an extract from the Board Resolution No. 2, series of 2010 of the RGC, actual disciplinary procedure
conducted by the HRD and Legal Department, and is a product of collective day to day experience in handling labor
determinations in the said corporations listed above. The application thereof is peremptory and is deemed to be a
condition of service.
VIII. REFERENCE FOR INFRACTION AND CORRECTIVE MEASURES
Types of
CODE GRAVITY OF OMMISSION AND CORRECTIVE MEASURES
Infractions
1st 2nd 3rd 4th 5th 6th
Offense Offense Offense Offense Offense Offense
S2 S5 S 10
LIGHT A OR WR DISMISSAL
Days Days Days
LESS S2 S5 S 10
6
B WR DISMISSAL
SERIOUS Days Days Days
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S2 S5 S 10
SERIOUS C DISMISSAL
Days Days Days
S5 S 10
GRAVE D DISMISSAL
Days Days
VERY S 10
E DISMISSAL
GRAVE Days
SEVERE F DISMISSAL
Key: OR – ORAL REPRIMAND S 2 – SUSPENSION (TWO DAYS) S 10 – SUSPENSION (TEN DAYS)

WR – WRITTEN WARNING S 5 – SUSPENSION (FIVE DAYS) DM - DISMISSAL
IX. CODE OF CONDUCT (RULES AND REGULATIONS):
An employer may choose whom to hire. He also has the right to discipline or even discharge an employee who is
not performing his function efficiently or whose continued employment may be a liability to the business. The
employer may not be compelled to retain an employee whose continuance is prejudicial to his interests8. The law
authorizes neither oppression nor self-destruction of the employer. An employer is free to manage and regulate,
according to his best judgment, all aspects of running his business: how, whom, what, when to hire; what, when, how
to produce; work assignments; work methods time and place of work; processes and system to be followed;
supervision of workers; setting up company policies on the transfer of employees, on how discipline will be effected
and on how to dismiss an employee for legal and valid causes.
The employer pursuant to law, company policies, rules and regulations, has the right and obligation to instill
discipline in his employees and impose reasonable penalties, including dismissal, after due notice and hearing of
employees. It is prejudicial to the interest of the employer to force on him the services of an employee who is guilty of
charges that warrant dismissal. To impose such a burden on the employer will not only demoralize the rest of the
other employees but encourage them to follow the example of the “undesirable” employee. This will result in the
business not being properly managed and pretty soon the business will collapse 9. Correspondingly, an employee is
entitled under the law to notice and due process to be discussed later below.
The offenses and corresponding penalties prescribed by the employer in its Company Rules and Regulations
are considered as just causes for the discipline and termination of an erring employee. This includes minor forms of
misconduct to misconduct of a more serious nature. An employee, who is guilty of minor offense, may be given
verbal warning at first occurrence thereof. The issuing of a severe or written warning may be alternative form of
disciplinary action for misconducts depending on the evidence, circumstances and seriousness of each situation. An
employee may even be dismissed for repeated minor forms of misconduct. Each transgression will be dealt with on
own merit in all instances.
The occurrence of more serious offense, or others of a similar nature may receive a warning (written or severe),
or face dismissal or summary dismissal at the option of Management, depending on the evidence, circumstances and
seriousness of each situation.
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Page
8
Ledesma, Jr. v. NLRC, 537 SCRA 358 [2007].
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Employee Relations Handbook By: Ramon T. Jimenez.
TABLE I: OFFENSES CONCERNING COMPANY FUNDS AND PROPERTY
C
O
NATURE OF OFFENSE 1st 2nd 3rd 4th 5th 6th
D
E
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1. Theft or stealing, misappropriating F DM
company property and funds
including personal belongings of
fellow employees.
 No employee is allowed to use

company’s properties for his
personal use.
 The company reserves the right to

inspect all company’s property
without notice to the employee and
whether or not the employee is
present.
 If the company has a reasonable

suspicion that an employee is in
unauthorized possession of
company property, he may be
subjected to a body search.
 Failure to submit to submit to a

search will render him guilty of
unauthorized possession of
company’s properties.
2. Committing an act of sabotage or F DM
deliberately causing loss, damage,
destruction of an
employer’s/company property in the
employees charge (motor cycle unit,
office equipment, tools or materials).
 Hindering of manufacturing,
stoppage of company machines or
operations without justifiable reason
by discontented workers.
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3. Unauthorized use of company D S-5 S-10 DM
facilities, assets or systems for Day Days
personal gain, including but not
limited to: using of e-mail, company
internet, use of company long
distance facilities for personal call.
Whether it be used within the
company premises or outside for
personal gain.
 No employee is allowed to use the

company’s telephone / telefax /
electronic e-mail for his personal use
during office hours except for
emergency purposes.
 Personal calls, except for

emergency calls, will not be
entertained during working hours.
 Should an employee be found to

have used the company’s
telephone/telefax/electronic e-mail
for his personal use, The company
reserves the right to seek
reimbursement on the charges
incurred.
4. Deliberate withholding of collections D S-5 S-10 DM
or delayed remittance by all Days Days
employees (managerial or rank and
file.)
5. Using company time, materials, D S-5 S-10 DM
tools, machines or other equipment Days Days
or properties to do unauthorized
work other than that which is
intended or assigned.
 Any injury caused to the employee

or any third party arising from use of
company property for a purpose
which is not in line with the business
of the company, the erring employee
shall be held accountable for the
same.
6. Obtaining supplies and materials F DM
thru fraudulent orders, of knowingly
obtaining supplies at a higher cost
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when the same can be obtained at a

lower cost for personal profit.
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7. Swindling or malversation (estafa) of F DM
funds or property of the Company or
of fellow employee or of a client or of
a customer of the Company.
8. Fraudulent or illegitimate F DM
withdrawal/acquisition or release to
other persons of company funds and
property.
9. Unauthorized possession, removal, E S-10 DM
use of company property, Days
photocopying documents without
permission, unauthorized
substitution of company property
with another.
10. Improperly using or allowing D S-5 S-10 DM
unauthorized persons to use Days Days
company supplies, facilities,
materials, tools, or equipments or
any property resulting in loss or
damage.
11. Using another person’s identity card D S-5 S-10 DM
or permitting another person to use Days Days
your I.D. to enter company
premises.
12. Driving of any company vehicle at an D S-5 S-10 DM
unsafe speed on company or client’s Days Days
premises.
13. Driving, alighting upon or tampering D S-5 S-10 DM
with a company motor vehicle Days Days
without proper authorization.
14. Unauthorized interference or D S-5 S-10 DM
tampering with or damaging safety Days Days
equipment.
15. Unauthorized removal of company C S-2 S-5 S-10 DM
and/or fellow employee’s property, Days Days Days
defacing any part of company
property like building structures,
open areas, etc. (unauthorized
painting, marking, carving, attaching,
setting-up or removal of things).
 Vandalism of any kind.

16. Failure to report within 48 hours after C S-2 S-5 S-10 DM
one has made an erroneous Days Days Days
payment or over payment of salary,
wage, commission, allowance or
other forms of remuneration or
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reimbursement.
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17. Unreasonable refusal to attend and C S-2 S-5 S-10 DM
or complete training, seminars or Days Days Days
workshops and other activities to
upgrade both the employee and the
company (external/internal) resulting
to loss in investment representing
money/fund compromised.
18. Removing from company premises, C S-2 S-5 S-10 DM
concealing or deliberately misplacing Days Days Days
company property without justifiable
purpose for doing so.
 Unauthorized posting of reading

materials on bulletin board,
unauthorized removal of officially
posted notices, announcements.
19. Damage to property belonging to C S-2 S-5 S-10 DM
fellow employees and company Days Days Days
visitors, regardless of whether the
damage arises from willful intent or
negligence.
20. Failure to report within a reasonable B WR S-2 S-5 S-10 DM
time the occurrence of loss, spillage, Days Days days
wastage or deterioration to
materials, finished goods,
equipment, machinery or other
company properties.
21. Loss of Company Identification Card A OR WR S-2 S-5 S-10 DM
(I.D.) and uniform due to negligence. Days Days Days
22. Playing computer games, surfing the A OR WR S-2 S-5 S-10 DM
net (i.e. social networking site such Days Days Days
as face book, twitter, you tube and
the likes) during office hour and/or
break time.
23. Making of unnecessary scrap or A OR WR S-2 S-5 S-10 DM
waste. Days Days Days
24. Unauthorized operation or A OR WR S-2 S-5 S-10 DM
interference with company Days Days Days
machines, tools or equipment at any
time.
25. Employees who work late or on A OR WR S-2 S-5 S-10 DM
overtime must ensure that all lights, Days Days Days
air conditions and equipments are
shut off when they leave the work
place.
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TABLE II: OFFENSES CONCERNING COMPANY INTEREST
C
O
D
E
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26. Forging, falsifying or altering official F DM
documents or other
company/personnel records
(including time cards) in relation to
his work in such a way as to mislead
the users thereof.
 Tampering of receipts used in

business operation, invoices and
delivery receipts of suppliers.
 Deliberately making false reports or

making false entries on any official
company documents or records, e.g.
log sheets.
27. Any form of connivance with fellow F DM
employees in falsifying company
records and/or documents for
financial gain.
28. Obtaining and accepting money or F DM
anything of value by entering into
unauthorized arrangements with
suppliers, clients, customers, or
other external parties.
 Contacting loan of money or other

property from person with whom the
company has business relation.
29. Giving false testimony or F DM
introduction of falsified evidence in
any company investigation of
serious violation.
30. Unauthorized acceptance, directly or E S-10 DM
indirectly, of money or anything of Days
value as consideration for an act,
decision or service which the
employee is duty bound to perform.
 Accepting bribes or other personal

favour in exchange for preference
for or better consideration of
supplies or other entities with which
the company has official or business
relations.
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31. Disclosing or misusing confidential F DM
information of the company to further
self interest or give under advantage
to anyone or to prejudice the co-
employee as well as the company.
 Divulging information, without proper

authorization, concerning the
company’s business.
32. Unauthorized use, copying, F DM
transmitting, downloading and
printing confidential documents
and/or files.
33. Breach by the employee of the trust F DM
and confidence reposed to him by
the management or by a company
representative.
34. Engaging in any activity which is F DM
directly competitive with the
company’s business or any part of
its operation.
35. Fraudulent statements of any nature F DM
in the employment application. This
includes concealment,
misrepresentation, and non-
disclosure of material facts in the
employment application.
36. Clocking irregularities, which shall E S-10 DM

include, inter alia, failure to clock Days
own card, unauthorized altering of
figures recorded on clock card or
time card, punching/altering the time
card of another employee.
 Manipulating the time appearing in

the biometric system or to that of the
manual records appearing in the log
book of the guards and destruction
or loss of clock card or time card.
37. Recommending any person to E S-10 DM
neither any position of the company Days
which has a pending business
transaction with him or with the
company, or knowingly
recommending anyone who has no
experience nor skills to the job.
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38. Gross discourtesy towards E S-10 DM

customers, suppliers and other Days
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business contacts.
39. Falsification of commercial F DM
documents (records, forms, OR) or
any other documents in which the
company has interest.
40. Assisting or allowing unauthorized D S-5 S-10 DM

persons to enter the company Days Days
premises or restricted areas without
permission from proper authorities.
41. Performing certain acts binding the F DM
company and/or entering into
transactions with any person or
persons, banking institution or any
corporations, involving the company
or its interest without authority, or in
such a manner as would constitute a
grave abuse of authority.
42. Making false, malicious and vicious F DM
statements concerning the company,
its products or any employee or
derogatory remarks which may lead
to the detriment of the company
operations and loss of its image in
the business community.
43. Deliberately restricting output, F DM
inducing or encouraging other
employees to do so.
44. Volunteering sensitive information F DM
about the company, its activities and
operations, to unauthorized
personnel and to outsiders that
compromises the security and safety
of the company and its employees.
45. Performing work for or in another F DM
company.
46. Direct or indirect discrimination on E S-10 DM
grounds including, but not limited to Days
race, gender, sex, pregnancy,
marital status, family responsibility,
ethnic or social origin, color, sexual
orientation, age disability, religion,
HIV status, conscience, belief,
political opinion, culture, language,
birth.
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47. Favoritism in appointment to a job E S-10 DM
based on kinship. Days
 Kinship shall be by consanguinity up

to the fourth civil degree (e.g.
parents, children and cousins).
 Including that of by legal fiction of

law (e.g. relatives by affinity, in-
laws)
 Except those already employed prior

to the effectivity of this Code.
48. Placing of notices on notice boards E S-10 DM
or any place within the company Days
premises without permission from
the management.
49. Failure to report within two (2) days E S-10 DM
information that an employee has Days
received or an event that an
employee has witnessed pertaining
to anomalies and/or questionable
actions and/or behavior committed
by co-employees.
50. Intrusion and unauthorized access to E S-10 DM
computers or files containing Days
confidential documents.
51. Unauthorized meetings or holding D S-5 S-10 DM
meeting, caucuses on the company Days Days
time and/or in its premises without
previous consent of the company.
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52. Unauthorized solicitation or D S-5 S-10 DM
collecting contributions for any Days Days
purpose whatsoever in company
premises.
 Improper or unauthorized solicitation

of contribution by the management
directly or indirectly deducted
against the salary or wage of the
employee.
 Any salary or wage deducted shall

be automatically refunded
immediately the next preceding cut
off.
 The person/persons responsible for

the unwarranted deduction shall be
required to attend lecture sponsored
and to be conducted by the HRD
regarding Labor Standards law and
Labor Relations law.
53. Uttering words, doing acts or making C S-2 S-5 S-10 DM
gestures to clients or company Days Days Days
visitors which are manifestly
insulting or grossly
disrespectful/discourteous.
54. Doing unauthorized work or personal C S-2 S-5 S-10 DM
work during office hours for financial Days Days Days
gain.
55. Any other act obviously and B WR S-2 S-5 S-10 DM
significantly detrimental to the best Days Days Days
interest of the company and/or fellow
employees as determined by the
management thru the person who
actually witnessed the said act.
56. Damaging or jeopardizing company B WR S-2 S-5 S-10 DM
interest, thru acts or omissions Days Days Days
which affect company clients, official
visitors or other business friends or
management.
57. Posting and/or writing, painting, B WR S-2 S-5 S-10 DM
etching, curbing of unauthorized Days Days Days
reading materials on company
bulletin boards.
58. Unauthorized removal, mutilation or B WR S-2 S-5 S-10 DM
destruction of officially posted Days Days Days
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notices, announcements or similar

matters without specific authority of
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management.
59. Lending money to co-employees at B WR S-2 S-5 S-10 DM
usurious rates of interest. Days Days Days
60. Disgraceful, immoral, or dishonest B WR S-2 S-5 S-10 DM
conduct prior to entering the Days Days Days
service/work.
61. Lobbying for personal interest or B WR S-2 S-5 S-10 DM
gain with officer or officers of the Days Days Days
company.
62. Unauthorized overtime work A OR WR S-2 S-5 S-10 DM
Days Days Days
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TABLE III: OFFENSES CONCERNING INSUBORDINATION/RELATIONSHIP WITH SUPERIORS
C
O
D
E
63. Insubordination, disobedience or E S-10 DM
wilful refusal to obey, carry out lawful Days
orders of the supervisors or any
members of management staff in the
performance of their duties and
responsibilities.
64. Refusal or failure to follow specific F DM
instructions or established
procedures amounting to gross
ignorance of the company rules and
regulations, laws, legal and moral
ethics.
65. Gross inefficiency, incompetence F DM
and continuous unsatisfactory
performance not attributable to
factors beyond employee’s control.
 Blatant disrespect to management

heads or clients.
66. Failure to perform an act which he is E S-10 DM
officially bound to do under his Days
scope of work, whether ministerial or
discretionary, on the required time,
or within such reasonable length of
time.
67. Threatening, intimidating, coercing, E S-10 DM
provoking to a fight, assaulting or Days
attacking a superior for reasons
directly connected with the
superior’s discharge of his official
duties and responsibilities.
68. Uttering words, doing acts or making E S-10 DM
gestures to one’s superior which are Days
manifestly insulting or grossly
disrespectful to the latter.
69. Refusing to submit to a search of E S-10 DM
person, clothing, locker or vehicle Days
when required or requested to do so
by one of the company authorize
officials, including the personnel of
any security company contracted to
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the company.
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70. Other acts committed by a D S-5 S-10 DM
subordinate for reasons directly Days Days
connected with his superior’s
discharge official duties which acts
clearly prejudice said superior’s
interest.
71. Refusal to obey or disregarding the D S-5 S-10 DM
memorandum order issued by the Days Days
HRD already approved by the
department head.
72. Refusal to cooperate or answer C S-2 S-5 S-10 DM
questions in any investigation by Days Days Days
company official unless such
answers would violate his
constitutional rights.
73. Disobedience or refusal or failure to C S-2 S-5 S-10 DM
comply with any procedural Days Days Days
requirement of any established
company policy or practice, law and
common human norms.
74. Unreasonable refusal to accept work C S-2 S-5 S-10 DM
shift assignment or work location Days Days Days
assigned by management.
75. Disregarding or breaching the C S-2 S-5 S-10 DM
employer’s safety rules and Days Days Days
regulations or standard/common
safety practices.
76. Violating the curfew hours set forth C S-2 S-5 S-10 DM
by the management. Days Days Days
TABLE IV: OFFENSES CONCERNING NEGLIGENCE AND NEGLECT OF DUTY
C
O
D
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77. Gross or absence of that diligence in F DM
the performance of duties and/or
Habitual or repeated failure in
performing one’s responsibilities.
(e.g. reckless driving of vehicles in
the employer’s charge, traffic
violations of drivers causing serious
physical injuries or damage to
property)
78. Attendance Policies. Employees are F DM
required to work eight (8) hours a
day, with a one (1) hour meal break
(non-compensable) and two (2) ten-
minutes break (part of compensable
period) as scheduled, on a six-day
week basis.
 Most employees are required to

work eight (8) hours a day from 8:00
A.M. to 5:00 P.M. Mondays to
Saturday. Some would be required
to work 8:00 P.M. to 5:00 A.M at
RMAC.
 All employees below the managerial

level are required to personally
punch their timecards (in & out) or
follow the biometric attendance
system whenever they report for
work and leave the office premises
to go home or whenever they will
have their lunch break.
 Tampering and/or punching of

another employee’s timecard are
considered HEAVY SERIOUS
OFFENSE and both parties shall be
held liable. Likewise, unauthorized
tampering of one’s timecard is also
SERIOUS HEAVY OFFENSE which
is subject to immediate dismissal. 22
Page
79. Policy on Absence without Official
Leave (AWOL) shall mean absence
from work on a regularly scheduled
work day or work hours without the
prior permission and proper
notification of the company through
the immediate superior.
Except in cases of accident,

emergencies and other events
beyond the control of the employee.
The following shall be considered

AWOL:
 Abandonment of job for fifteen

F DM
(15) consecutive working days
without explanation or notice
received by the employee’s
superior/company.
 Failure to report for work at

C S-2
the appointed time after
Days
expiration of a disciplinary
suspension unless justified.
 Unauthorized or unexcused
C S-2
absence, even with notice or
Days
advice if in the opinion of the
company the excuse is not
justified.
 Malingering or not reporting

B WR S-5 S-10 DM
for work under a claim of
Days Days
sickness although found to be
sick or found not at home as
verified by a home visit of a
company authorized
representative.
 Failure to report for work after

B WR S-5 S-10 DM
availing oneself of a duly
Days Days
approved leave.
 Unauthorized under time. A OR WR S-2 S-5 S-10 DM

Days Days Days
NOTE: Penalties for AWOL if not specified above
1 Day Absent = WE
2 Days Absent = S-2Days
23
3 Days Absent = S-3Days

4 to 5 Days Absent = S-5Days
Page
6 to 11 Days Absent = S-30 Days

12 Days Absent or More = DM
80. Negligently disposing of or F DM
concealing defective work or
workmanship, either directly or
indirectly, and/or any other
deception in regard to defective work
or workmanship.
81. Failure of the supervisor to E S-10 DM
disseminate institute policies, work Days
rules, work procedures, and the like
to employees he supervises.
82. Failures of the supervisor to take E S-10 DM
steps to prevent, rectify, and/or Days
report his knowledge of any violation
of this manual or of other institute
rules.
83. Unauthorized withdrawal or E S-10 DM
misplacement of company records Days
or documents thru neglect of duty or
negligence resulting in the loss of
records or documents in which the
company has interest.
84. Neglect or failure by the employee to E S-10 DM
report to the HRD any anomaly or Days
violations of this Code committed by
a co-employee.
85. Sleeping while on duty. E S-10 DM
Days
86. Any action or omission, which may D S-5 S-10 DM
lead to stock, product and/or goods Days Days
not being accepted or returned by
the customer though the employee’s
carelessness or negligence.
87. Unreasonable refusal to render D S-5 S-10 DM
overtime work as authorized by law Days Days
or other special circumstances
where the company cannot be
ordinarily expected to resort to other
measures.
88. Refusal or failure to report for D S-5 S-10 DM
overtime work after having been Days Days
scheduled and employee agreed to
it.
89. Wasting time such as gossiping or D S-5 S-10 DM
playing around, or loitering around Days Days
places away from assigned work
while on duty.
90. Committing other acts of non- D S-5 S-10 DM
24
attendance or neglect of duty Days Days

embraced by other provisions of this
Page
Rules and the law.

91. On the part of the superior, clear D S-5 S-10 DM
abuse of status, power or discretion Days Days
amounting to lack or excess of
authority.
92. Leaving work assignment, C S-2 S-5 S-10 DM
department or plant during working Days Days Days
hours before quitting time, without
prior permission from immediate
superior or department head.
93. Stopping work or making C S-2 S-5 S-10 DM
preparations to leave work (e.g. Days Days Days
such as washing up or changing
cloths)
 Note: time lost will be unpaid in

addition to any disciplinary action
which may be taken.
94. Wasting time or loitering in toilets or C S-2 S-5 S-10 DM
on company premises during Days Days Days
working hour.
95. Neglect by the drivers to adhere to C S-2 S-5 S-10 DM
delivery time sheets or itinerary Days Days Days
destination of superior without
reasonable explanation.
96. Failure to report back to work after C S-2 S-5 S-10 DM
break period. Days Days Days
97. Failure to report an accident or C S-2 S-5 S-10 DM
damage to machinery, vehicles or Days Days Days
other property belonging to the
Employer.
98. Failing or neglecting to advice your B WR S-2 S-5 S-10 DM
employer of your absence. Days Days Days
99. On the part of superior, deliberately B WR S-2 S-5 S-10 DM
condoning, tolerating or participating Days Days Days
in an offence committed by a
subordinate.
25
Page
100.Frequently late for (3) times oftener B WR S-2 S-5 S-10 DM
within (15) days period. Days Days Days
 Tardiness is applicable to all

employees except managers,
supervisors, and executives.
 The employee (not managerial and

supervisory employee) shall suffer
the corresponding salary deduction.
 Any salary deductions made by the

company to all employees due to
negligence and/or in violation of the
labor standards law shall be
refunded to the concerned employee
immediately preceding next cut off.
 The person/persons responsible for

the erroneous deduction shall be
required to attend lecture sponsored
and to be conducted by the HRD
regarding Labor Standards law and
Labor Relations law.
 Lates or tardiness shall not offset

overtime.
 Tardiness may be excused only in

cases of inclement weather
(typhoon, flood, etc.) or
fortuitous/unexpected events, upon
approval of the immediate superior
or decision of the top management.
NOTE: Penalties for Lates:
1st Offense = OR
2nd Offense = WR
3rd Offense = S-1 Day
4th to 5th Offense = S-2 Days
10th Offense or more = DM
26
Page
TABLE V: OFFENSES CONCERNING HARMONY AND GOOD ORDER, SAFETY AND DECENCY AT WORK.
C
O
D
E
101.Possessing, using, selling or F DM
pushing narcotics or prohibited
drugs or its substitutes within
company premises.
 No employee shall drive a company

vehicle or operate any equipment
while under the influence of drugs.
102.Being found positive for the use of F DM
prohibited drugs after a company
sponsored drug test.
 No employee shall be under the

influence of and/or possession of
and/or use drugs, except medicines
given under a doctor’s prescription,
and/or solicitation, distribution or
purchase of drugs.
 Reporting for work under the

influence of narcotics or other
prohibited drug, marijuana, ecstasy.
103.Bringing in and/or introduction of or F DM
unauthorized possession of firearms
depending on the calibre of the
firearm, explosives or other deadly
weapons within company premises
especially during working hours.
 Employees shall not carry offensive

weapons such as firearms, explosive
materials, poison, corrosive
chemicals, knives, sharp objects or
anything that may be used as deadly
weapon etc., within the company
premises or keep them in their
personal locker/drawer/cabinets.
104.Attempting to bring explosives, E S-10 DM
firearms, or other deadly weapons in Days
the company premises.
27
Page
105.Drinking alcoholic beverages in the F DM
workplace or any part of the
company during working hours.
 No employee shall be under the

influence of and/or possession of or
using alcoholic beverages including
drinking such beverages in the
company premise, especially during
work hours, unless otherwise
allowed by the management, via
memorandum on special occasion
only.
 No employee shall drive a company

vehicle or operate any equipment
while under the influence of liquor.
106.Immorality, immoral conduct or F DM
conduct of grossly indecent in nature
within company premises whether or
not committed during office hours.
These shall include extra marital
affairs (between a married individual
or unmarried one including
pregnancy of the female employee)
and between two married individual.
 Committing acts of immorality or

lasciviousness in the company.
 Conviction of a crime involving moral

turpitude. (e.g. adultery, bigamy)
107.Committing a crime or misdemeanor F DM
not embraced by other provisions
within the company premises or
during working hours which
materially or substantially affect
company interest.
108.Encouraging, coercing, initiating or F DM
bribing or otherwise inducing any
employee(s) to engage in any
practice in violation of company
rules and regulation.
109.Stealing, concealing or deliberately F DM
misplacing without justifiable
purpose another employee’s
property within company premises or
28
during official working hours.

Page
110.Encouraging, assisting or F DM
deliberately providing occasions to
non-employee or third parties to
threaten or physically attack and/or
harm a co-employee.
Fighting with another employee

within company premises or while on
duty or outside company premises
on company sponsored activities.
 Threatening another person, directly

or indirectly, with the infliction of
harm upon the person’s honor or
property.
 Fighting or inflicting bodily harm or

injury to another person, threatening,
provoking or instigating a fight.
111.Disclosing, transmitting, F DM
communicating or using
classified/restricted confidential
record, data or information without
proper authorization.
112.Robbery/Theft, estafa and other F DM
forms of swindling committed
against the company, its employee,
customers and/or visitors.
113.Smoking in prohibited areas, in E S-10 DM
places with “No Smoking” sign, in Days
premises where there are flammable
materials or where company
property, material and/or equipment
may be endangered.
 Smoking is strictly prohibited inside

the company premises, except in
designated smoking area and during
break time only.
29
Page
114.Rumor-mongering, unnecessary E S-10 DM
disclosure of somebody else’s Days
personal affairs to others to
deliberate distortion of facts and
statements in such a way as to
enhance one’s status and reputation
or discredit, embarrass or endanger
another employee.
 The making or publishing of false,

vicious or malicious statements
concerning any employee, the
company or its products.
115.Giving, whether recorded or not, of F DM
any false narration of facts in any
memorandum, report inquiry or
investigation conducted by the
company.
116.Violation of safety regulations E S-10 DM
including failure to wear/use Days
protective equipment devices when
provided or required (e.g. safety
shoes, back support, gloves, and
eye protection, etc.)
117.Violation of security regulations such F DM
as disclosing of company
procedures, information on cash or
sales to persons with unauthorized
access to such information.
118.Gambling, placing or collecting bets, F DM
or lottery or participating in any
game of chance during official
working hours and within company
premises.
119.Unauthorized entry into restricted F DM
areas or areas off limits to the
employees’ concerned and/or
unauthorized use of such places;
also assisting another person to
commit this act.
120.Failure to comply with physical and F DM
medical requirements of the
company.
121.Refusal to submit to search or F DM
interfering with security officers in
the performance of their duties.
122.Using another employee’s ID, badge E S-10 DM
30
or pass or permitting another to use Days

one’s owned ID, badge or pass to
Page
enter company premises.

123.Refusal or failure to follow C S-2 S-5 S-10 DM
prescribed procedures in cases of Days Days Days
sickness or personal injuries
sustained at work or in cases of
accidents involving company
vehicle, equipment or other
company property.
124.Using indecent, profane, abusive, E S-10 DM
derogatory or indecorous language Days
while on duty or within company
premises with malice.
125.Horseplay, scuffling, running, E S-10 DM
throwing things or any act or Days
demonstration causing confusion or
distracting the attention of fellow
workers.
 Participating in loud and heated

verbal arguments during official
working hours and/or working
company premises that disturb the
work of others.
 Causing unnecessary distractions to

fellow employees or causing
unnecessary confusion in the work
place by, inter alia, unnecessary
shouting, catcalls or demonstration
of any nature.
126.Refusals to show ID, pass, or badge E S-10 DM
to any security officers or members Days
of management when required.
127.Failure, refusal to wear or improper E S-10 DM
use of official company ID, uniform, Days
shoes and/or grooming prescribed
for certain jobs for purposes of either
safety, security or presentability or
wearing those that are explicitly
prohibited or violative of company
guidelines or proper decorum.
128.Harassment or victimisation based F DM
on grounds included, but not limited
to race, gender, sex, pregnancy,
marital status, family responsibility,
ethnic or social origin, color, sexual
orientation, age disability, religion,
HIV status, conscience, belief,
31
political opinion, culture, language,

birth.
Page
129.Failure to report contracting of E S-10 DM
communicable or contagious Days
disease which may endanger the
health of employees and even
clients or customers.
 Reporting to work while afflicted with

an incurable or contagious disease
on the recommendation by the
company physician.
130.Conniving or abetting with co- E S-10 DM
employees on matters prejudicial to Days
the interest of the company.
131.Lying down or wandering during E S-10 DM
working hours inside company Days
premises
132.Threatening, intimidating, coercing D S-5 S-10 DM
or provoking a fellow employee to a Days Days
fight.
133.Serious misconduct during official D S-5 S-10 DM
working hours or within company Days Days
premises or during company
sponsored activities.
134.Eating in prohibited areas B WR S-2 S-5 S-10 DM
Days Days Days
135.Violation of common health and B WR S-2 S-5 S-10 DM
sanitation rules, improper use of Days Days Days
toilet, dining and locker facilities.
136.Unhealthy act such as spitting, B WR S-2 S-5 S-10 DM
blowing nose, urinating or littering in Days Days Days
places other than those designated
for such purposes, contributing poor
sanitation or poor housekeeping in
the company.
137.Excessive use of cell phones (i.e. B WR S-2 S-5 S-10 DM
sending text messages, receiving Days Days Days
and making calls during office
hours).
138.Throwing refuse and/or any other A OR WR S-2 S-5 S-10 DM
objects on the floor or out of the Days Days Days
windows.
139.Climbing over company fences at A OR WR S-2 S-5 S-10 DM
any time. Days Days Days
140.Throwing of cigarette butts in any A OR WR S-2 S-5 S-10 DM
other places other than the garbage Days Days Days
bin.
32
Page
TABLE VI: SPECIAL PROVISIONS FOR OTHER ITEMS OUTSIDE THE CODE OF DISCIPLINE
C
O
D
E
141.Five (5) offenses of any of the F DM
abovementioned rules within a year.
33
Page
142.Commission of any three (3) serious F DM
(code: C), grave (code: D) and/or
very grave (code: E) infraction
during a twelve month period shall
be sufficient cause for termination.
143.Any employee found to be guilty of

habitual violation of company rules. F DM
 Three consecutive suspensions for

having violating any company rules
within the six (6) months period
which is deem serious disobedience
to company’s rules and regulations.
TABLE VII: COMMISSION OF AN ACT CONSIDERED A CRIME UNDER THE LAWS OF THE PHILIPPINES
C
O
D
E
34
144.Committed against the company or F DM

its employees or visitors or guests.
Page
145.Committed outside company F DM
premises not related to company
operations.
146.Conviction of any criminal offense F DM
and/or sentence to a prison term for
a conviction and/or sentence related
to a rule or standard regulating
conduct in, or of relevance to the
workplace.
III. TERMINATION OF EMPLOYMENT UNDER THE LABOR CODE:

The grounds for severance of employment are the following:
Just Causes: Article 282. Termination by an employee. An employer may terminate an employment for any of the
35
following causes:
Page
a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or
representative in connection with his work;
(Being found positive for the use of prohibited drugs after a company sponsored drug test.)
b. Gross and habitual neglect by the employee of his duties;

(Caught sleeping every day while on duty.)
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized
representative;
(Caught in the act stealing huge amount of money by a cashier employee.)
d. Commission of a crime or offense by the employee against the person of his employer or any immediate
member of his family or his duly authorized representative;
(Rape of the daughter of the employer by the driver employee.) And
e. Other causes analogous to the foregoing.

(Theft of property of co-employee.)
Authorized Causes: Article 283. Closure of Establishment and Reduction of Personnel, they are:
a. Installation of labor-saving devises;
(Computers-brings about the reduction of personnel responsible for records keeping and preparation of
correspondence.)
b. Redundancy;
(A position is redundant where it has become superfluous brought about by a number of factors as
introduction of new machines/equipment, over hiring of employees.)
c. Retrenchment;
(Termination of employment initiated by the employer through no fault of the employees and without
prejudice of the latter, resorted to by the management during period of recession, during lulls occasioned by
lack of orders, shortage of materials.) And
d. Closure or cessation of business operations of an establishment or an undertaking.

(When the business has suffered serious losses or financial reverses with supporting documents.)
In addition to the said ground, Article 284 cites Disease as an authorized ground to terminate employment.
(Requisites: The employee is suffering from a disease, his continued employment is either: prohibited by
law, prejudicial to his health, or prejudicial to the health of his co-employees, there is a certification by the
DOH that the disease is incurable within a period of six months even if treated, notice of termination should
be serve both to employee and the DOLE at least one month prior to the termination, plus separation pay.)
IV. PROCEDURAL DUE PROCESS:
Under the Constitution, “the State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote their welfare10. Corollary to that, the company is dedicated to the principle that the employees
36
are the most important resource. As a matter of sound procedure, in case of commission of a wrongful act or
Page
10
Sec. 18, Article II. 1987 Philippine Constitution.
omission by an employee, both grounds mentioned in Article 282 and the Company Rules and Regulations
promulgated by the employer should be cited as bases in proceeding against the erring employee.
The soundness of this approach is validated in the ruling of the Supreme Court 11, where it is required that the
first notice in the administrative proceedings for just cause/s should specifically mention which company rules, if any,
are violated and/or which among the grounds under Article 282 is being charged against the employee.
The grounds mentioned in Article 282 are couched in general terms and, therefore, wider in coverage; while
those enunciated in the Company Rules and Regulations are more specific, definitive and detailed. For instance, the
violation denominated as “theft of company-owned property” may be specified as such in the Company Rules and
Regulations and the same may also be correctly fall under the ground of “serious misconduct” under Article 282. By
citing both grounds, the description of the offense as well as the legal bases of the administrative action against the
erring employee are more clear-cut and defined thereby leaving no room for any doubt which may further complicate
the issues in a given case.12
The requirements for the lawful dismissal of an employee are twofold, the substantive (that is the grounds laid
down both in the Company Rules and Regulations and the grounds laid down in the Labor Laws of the Philippines)
and the procedural (that is notice and hearing) aspect. Not only must the dismissal be for a just or authorized cause,
the rudimentary requirements of due process – notice and hearing – must, likewise, be observed before an employee
may be dismissed. Without the concurrence of the two, the termination would, in the eyes of the law, be illegal, 13 for
employment is a property right of which one cannot be deprived of without due process. Hence, the two (2) facets of
a valid termination of employment are: (a) the legality of the act of dismissal, i.e., the dismissal must be under any of
the grounds laid down both in the Company Rules and Regulations and the grounds laid down in the Labor Laws of
the Philippines; and (b) the legality of the manner of dismissal, which means that there must be observance of the
requirements of due process, otherwise known as the two-notice rule14.
This procedure is crafted to afford the workers an opportunity to voice out their individual concerns lodge before
the HRD and to secure fair evaluation of their concerns without fear of retaliation. It is the policy of the HRD to
provide employees the “right to appeal” actual controversy involving their persons in violation of the company rules
and regulations and the labor code through a systematic review by progressively higher levels of the HRD and the
Management to be composed exclusively of the following, to wit: the HRD Head, the RGC President, and the RGC
Chairman/CEO. There must be a written note addressed to the respondent employee exonerating him of the offense
charged indicating therein the reasons deemed just and equitable under the circumstances in the nature of a
memorandum but sometimes considered to be more formal. This is the so called “Management Prerogative”, it is an
assurance, though the outcome is not certain to be in the worker’s side, the worker’s right to participate within the
sphere of the process is assured. A simple structure15 below may be crafted as follows:
First. There must be proper and valid grounds. Any employee found in violation of the company rules and
regulations shall be reported via (Incident Report or IR)16 by his immediate superior, or any person who personally
witnessed said infractions to the HRD. Written reprimand shall be issued for light offenses or of penalties not
exceeding seven (7) days suspension, duly signed by the immediate superior under Memorandum Order No. 25,
dated December 05, Series of 2012. For those offenses with a corrective measure of either suspension exceeding
seven (7) days or termination, the immediate superior shall conduct the investigation under the control and
11
King of Kings Transport, Inc. v. Mamac, [G.R. No. 166208, June 29, 2007.]
12
Labor Law, Volume II by: J.G. Chan.
13
Arlene A. Gelisanga v. Racal Motorsales Vis/Min Corp., Rep. By: MR. IRWIN RACAL., NLRC RAB VI CASE No.VI-06-
10367-12.
37
14
Summarized and indexed in U.P. Law Center Handout No. 76.
15
Valid dismissal through personal experience by JB.Bangui (Human Resource Professional and Senior Legal Officer
Page
RGC).
16
Sample Incident Report page.45
supervision of the HRD Head or his duly designated officers. The HRD Head and/or his designated officers shall
prepare the profile review of the employee subject to the disciplinary action. This will be attached to the other
documents of the case.
The procedures in the first step will dramatically change if the offense committed by the erring employee is one
of criminal in nature. In this case, if the employee concerned is caught in the act committing a felony punishable
under the Revised Penal Code of the Philippines, (e.g. theft) of company property which is punishable under the
Company Rules and Regulation concerning company funds and property vis-a-vis serious misconduct under Article
282 of the Labor Code of the Philippines. It is suggested that the erring employee must be reported immediately to
the nearest police station having jurisdiction in the area for blotter17 purposes. Borrowing the words of our brother
policemen “sa prisinto kana magpaliwanag.”18 A person caught in the act committing a crime may be arrested by any
person even without warrant of arrest. Then proceed to the usual procedural due process listed below.
Second. There must be a first notice in the form of (Show Cause Memorandum or SCM)19. After the investigation
as a consequence of the incident report, the HRD shall issue outlining the facts, nature and cause of the violation,
when, where and how the incident happened and requiring the erring employee to submit his Written Explanation or
WE20 to shed light on the matter within the prescribed period together with the written testimonies of other employees
who may have personal knowledge about the offense.
Third. There must be a hearing or conference. The (Notice of Hearing or NH)21 shall be personally serve to the
erring employee indicating therein the purpose, date, time and place of the hearing to afford anew the erring
employee another chance to explain his side of the story in person should the HRD is not convince or find no merit in
the employee’s written explanation. Should the case warrant, an employee shall be given the chance to have a
formal hearing of his case fully assisted by his counsel. During the actual hearing, there must be an HRD staff who
must record in writing together with tape recorder if there is any for documentation purposes. After the hearing, the
minutes22 of the conference shall be carefully read to the erring employee who must sign or affix his signature to the
said minutes. If the employee refuses to sign his signature to the minutes, the HRD staff shall indicate therein “refuse
to sign”.
Lastly. There must be a second or final notice in the form of (Notice of Disciplinary Action (NDA)23 or Notice of
Termination (NT)24 as the case may be. This is the so called second notice rule. Once all documents are complete,
the same shall be forwarded to the HRD Head for further review and evaluation. Once the recommended penalty has
been approved, the documents are returned to the HRD officer.
While the case is ongoing, an employee subject to disciplinary action may be placed under Preventive
Suspension (PS).25 The PS should not last for more than thirty (30) days. Before the lapse of 30 days, the employee
shall be informed of the outcome of the case. The NDA or the NT must be serve personally to the employee
concerned either by tendering it to him or via registered mail. It is suggested however, that an employee must be
17
Sample Blotter page.46
18
Emphasis supplied.
19
Sample Show Cause Memorandum page.47
20
Sample Written Explanation page.48
21
Sample Notice of Hearing page.49
22
Minutes of the Hearing page.50-51
23
Sample Notice of Disciplinary Action page.54-57
24
Sample Notice of Termination page.58-61
38
25
Sample Preventive Suspension page.52
Page
summoned to proceed to the HRD in order that the NDA or NT must be read to him in person and explain to him
once more the decision of the higher ups in terminating his employment or the reason for the disciplinary action. The
employee concerned must affix his signature or sign the NDA or NT as a proof that he was duly notified of the
outcome of the case. Should the erring employee refused to sign the NDA or NT, the HR designated to do the task
may note therein “refused to sign”. This instance seldom occurred, but should it happen, the importance of sending
the NDA or NT via registered mail comes into play. All the procedural due process must be observe and practice in
strict confidentiality for obvious reason.
In other words, make sure that you have documentary proof that there was serious effort to notify an
employee of the filing of charges against him. After the proper investigation, notify the employee of management
decision finding him guilty, if in fact this is the case, and inform him of the termination of his employment.
RESIGNATION:26
An employee may, at any time and even without just cause, terminate his employment by merely serving a written
notice in the form of resignation27 on the employer at least thirty (30) days in advance, otherwise, the employee may
be held liable for damages28. The law however, grants the employee the right to terminate employment any time
39
26
Art. 285, Labor Code.
27
Sample Letter of Resignation page.65
Page
28
Racal Motorsales Corporation, Rep By: MR. JONATHAN B. BANGUI., v. Melvin S. Chin et al., NLRC CASE No. RAB-
III 06-18973-12 (Pending).
without serving any notice to the employer for any of the just causes provided for by law. A person who resigns his
position in employment is not, by law, entitled to separation benefits.
VI. SAMPLE FORMS:
1. INCIDENT REPORT is a form that is filled out in order to record details of an unusual event that occurs at
specific place. The purpose of the incident report is to document the exact details of the occurrence while
they are fresh in the minds of those who witnessed the event. This information may be useful in the future
when dealing with liability issues stemming from the incident.
40
Third Eye Blind Security Agency

Page
Mabuhay Compound, Malinta, Valenzuela City.
Date : Dec 10, 2012
To : Sir. Rodolfo Sioson (General Manager RMAC)

: Sir. Jonathan Bangui (HRD Supervisor RMAC)
From : Mr. Nelcito Laprico (Company Chief Security Guard)
Re : Incident Report
Sir,
On December 07, 2012, at around 12:03 O’clock in the afternoon, and within the premises of this company, the
accused Mr. X (offender), while leaving the gate of the company premises and in the process of body search
conducted by Security Guard Raymart S. Dimapilis, the offender was caught in the act stealing company property
(500 ml paint thinner).
That the said company property was cleverly placed inside the plastic bottle of a 500 ml mineral water and with intent
to gain, was found inside the bag of the accused purposely to conceal the same.
For your information.
Respectfully,
Mr. Nelcito Laprico

(Signature and date over printed name)
Mr. Raymart S. Dimapilis

(Signature and date over printed name)
2. POLICE BLOTTER is a daily record of arrests and other events at a police station. This procedure must be
taken only if the nature of the offense committed by the employee is criminal in nature.
Republic of the Philippines

Department of Interior and Local Government
National Police Commission
41
National Capital Region Police office

VALENZUELA CITY POLICE STATION
Page
Karuhatan, Valenzuela City

December 10, 2012
EXCERPTS FROM THE OFFICIAL POLICE BLOTTER OF VALENZUELA CITY POLICE STATION WITH THE
FOLLOWING ENTRIES.
==================================================================
ENTRY NOS. : 2071
TIME : 2:30 P.M.
DATE : DECEMBER 10, 2012
PAGE NUMBER : 709
CASE : QUALIFIED THEFT
On this time and date, one Jonathan Bangui y Belarmino, 36 years old, single, legal officer and resident of
#1 Deng Hua St., Mabuhay Textile Mill Compound, Malinta, Valenzuela City personally appeared to this station and
reported that on December 07, 2012, at around 12:03 O’clock in the afternoon and within the territorial jurisdiction of
this Police Station, the offender a painter of Racal Motor Assembly Corporation located at the above cited address
identified as one Mr. X while leaving the gate of the company premises and in the process of body search conducted
by Security Guard Raymart S. Dimapilis and Company Chief Guard Nelcito Laprico was caught in the act of stealing
company property (500 ml paint thinner).
The said company property was cleverly placed inside the plastic bottle of a 500 ml mineral water and with
intent to gain, was found inside the bag of the offender purposely to conceal the same.
In truth hereof, he affixed his signature below.
Signed: Entered By:
Mr. Jonathan B. Bangui SPO.1 Dalton A. Lamona

Reportee Investigator
CERTIFICATION
This is to certify that the above incident is recorded in the VCPS police blotter and this certification is being
issued upon the request of the reportee for whatever legal purpose it may serve.
SPO 3 Francisco O. Onga Jr.

OIC, Records Management Unit
Paid Under OR: 2058770

Issued at: Valenzuela City
Issued on: DECEMBER 10, 2012
3. SHOW CAUSE MEMORANDUM is the formal record of a written reminder from the Human Resource
Department address to an erring employee that contains directive, advisory or informative matter.
42
RACAL MOTOR ASSEMBLY CORPORATION

#01 Deng Hua St., Mabuhay Textile Mill Compound
Page
Malinta, Valenzuela City Philippines

Tel #: (02) 355-4168
SHOW CAUSE MEMORANDUM
DATE : December 10, 2012
TO : Mr. X (Motor Assembler-Mabuhay Warehouse) (signature and date)
FROM : HR DEPARTMENT/LEGAL DEPARTMENT

This Group of Companies
RE : STEALING COMPANY PROPERTY
Ito ay upang ipaalam sa iyo na mayroong pormal na reklamo laban sa iyo sa paglabag mo sa mga
mahahalagang alituntunin ng Company Rules and Regulations (CRR) partikular na sa “Company Property” at ng
Article 282 ng Labor Code of the Philippines (Serious Misconduct). Bukod pa dito, ito din ay labag sa Revised Penal
Code of the Philippines na napapaloob sa Art. 308 o Theft (pang-uumit)
Kaya naman pinapayuhan ka na magpaliwanag sa pamamagitan ng WRITTEN EXPLANATION sa loob ng

tatlong (3) araw kung bakit hindi ka dapat maimbistigahan at makasuhan ng administratibo.
Para sa iyong mahigpit na pagsunod.
Approved By:
Atty. RENE Q. PAHULAYAN

Head: HRD/Legal Department
Copy Furnished:
Mr. Jonathan B. Bangui

Senior Legal Officer
Mr. Ramon R. Tuazon

Investigation/Hearing Officer
Employee’s 201 File
4. WRITTEN EXPLANATION is a set of statements constructed to describe a set of facts which clarifies the
causes, context, and consequences of those facts. Statements which are justifications of some action
take the form of arguments. For example attempts to justify a theft usually explain the motives (e.g., to feed
a starving family).
43
Date : Dec 11, 2012

Page
To : The Human Resource Department
: Sir. Rodolfo Sioson (General Manager RMAC)
From : Mr. X
Re : WRITTEN EXPLANATION
Sa kinauukulan,
Nais ko pong manghingi ng paumanhin at magpaliwanag tungkol sa insidenteng nangyari noong Disyembre
7, 2012 ako po ay naireport ni SG. Dimapilis at SG. Laprico na kumuha ng thinner. Inaamin ko po na kumuha ako ng
thinner upang ipanglinis sa natuyong pintura na natapon sa aking binti at pantalon.
Ako po ay nangangako na ang pangyayaring ito ay hindi na mauulit at muli po ako ay nanghihingi ng
paumanhin.
Lubos na gumagalang,
Mr. X
Lagda.
5. NOTICE OF HEARING is a document that invokes all parties to hear an issue after the commencement of
action or charges. Most notably the notice contains a time and date for the HRD to hear said issue or
controversy.

44

Page
Tel #: (02) 355-4168

MEMORANDUM ORDER

RE : NOTICE OF HEARING
Ito ay upang ipaalam sa iyo na hindi nakitaan ng balidong paliwanag at katuwiran ang mga akusasyon laban
sa iyo patungkol sa paglabag mo sa mga mahahalagang alituntunin ng Company Rules and Regulations, Article 282
ng Labor Code of the Philippines at Revised Penal Code of the Philippines.
Kaya naman ikaw ay pinaaalalahanan na dumalo sa isasagawang pagdinig nitong December 17, 2012 sa
oras na 1:30 P.M. na gaganapin sa HR/Legal Office Racal Warehouse, Mabuhay Compound. Maaari kang magsama
ng abogado, testigo, at ebidensya pabor sa iyo.
Para sa iyong kaalaman at mahigpit na pagsunod.
Approved By:

Copy Furnished:
Mr. Jonathan B. Bangui

Senior Legal Officer
Mr. Ramon R. Tuazon

Investigation/Hearing Officer
6. MINUTES OF THE HEARING also known as protocols or, notes. The instant written record of a meeting or
hearing. They typically describe the events of the meeting, starting with a list of attendees, a statement of
the issues considered by the participants, and related responses or decisions for the issues. Minutes may
be created during the meeting by a typist or recorder, who may use shorthand notation and then prepare the
minutes and issue them to the participants afterwards. Alternatively, the meeting can be audio recorded,
video recorded, or a group's appointed or informally assigned Secretary may take notes, with minutes
prepared later. It is usually important for the minutes to be terse and only include a summary of discussion
45
and decisions. The minutes must be kept on file and are important legal documents.
Page
Tel #: (02) 355-4168
IN THE MATTER OF NOTICE OF HEARING:
Racal Motors Assembly Corporation (RMAC)

Thru the HRD/Legal Department,
Requesting Party
-vs.- For: Stealing Company Property
Mr. X,
Assisted by Counsel/Co-employee,
Responding Party
MINUTES OF THE HEARING
Ang kumpanya bilang pagtupad sa batas na sya namang karapatan ng manggagawa ay minabuting
magsagawa ng pagdinig sa pamamagitan ng Notice of Hearing (NH) ngayong December 17, 2012, na iyo namang
kusang loob na dinaluhan.
Ayon sa isinagawang pagdinig na nakatala sa Minutes of Hearing na iyong binasa at pinirmahan matapos
ang pagdinig ay isinalaysay mo ang mga sumusunod bilang iyong depensa:
 Hearing Officer: “Karapatan mo na maipadinig ang iyong panig kaya ka nandito ngayon. Ayun sa Guard,
ikaw ay nakapkapan ng bote ng mineral water na ang laman ay chemical o thinner. Totoo ba ito?”
 Mr. X: “Opo sir.”
 Hearing Officer: “Alam mo bang ang aktong pagnanakaw ay may kaukulang parusa na pagkakatanggal sa
trabaho?”
 Hearing Officer: “Bakit mo ito nagawa sa kabila ng alam mo na ito ay makakatanggal sa iyo sa trabaho?”
 Mr. X: “Wala napo kasi akong ibang maisip na paraan sir. Ang iniisip ko lang po sir ay matanggal ang
46
pintura sa pantaloon ko.”

Page
 Hearing Officer: “Ano pa ang gusto mong sabihin?”

 Mr. X: “Manghingi po ako ng tawad sir. Hindi kona po uulitin dahil sa pangangailangan ng pamilya.”
---nothing follows---
MR. X
(Lagda at Petsa)
NILAGDAAN SA HARAP NINA
Mr. Y
Counsel for Mr. X
Mr. Jonathan B. Bangui Mr. Ramon R. Tuazon

(Saksi-Senior Legal Officer) (Saksi- Investigation/Hearing Officer)
7. PREVENTIVE SUSPENSION is a temporary precautionary measure undertaken to forestall anticipated

hostile action. It is a common practice in the workplace for being in violation of company rules and
regulations, or major breaches of company policy. Suspensions are usually given after other means of
counseling statements have been exhausted, but some violations may result in immediate suspension if
there exist danger to the company’s property or security of the other employees. Preventive Suspensions
are not penalty in itself but merely precautionary measure to avoid prejudicing an investigation and to
47
enable the department to carry out its investigation.

Page
Tel #: (02) 355-4168
MEMORANDUM ORDER

RE : PREVENTIVE SUSPENSION
Sa kadahilanang may kasalukuyan pang isinasagawang masusing imbestigasyon ang kumpanya na nag-
ugat sa pagkakalabag sa mga mahahalagang alituntunin ng Company Rules and Regulations (CRR) partikular na sa
“Company Property” na diumano ay iyong ginawa at sya namang lubos na nakaperwisyo sa interes ng kumpanya.
Kaya naman ikaw ay inaatasan na sumailalim sa SUSPENSYON sa loob ng sampung (10) araw mula sa
petsa ng iyong pagtanggap nitong sulat at epektibo sa lalong madaling panahon.
Para sa iyong kaalaman at mahigpit na pagsunod.
Approved By:

Copy Furnished:
HRD and
Accounting Department
8. STAY OUT ORDER or Residence exclusion (“kick-out” or “move-out”) orders . These are orders telling
the restrained person to move out from where the protected person lives and to take only clothing and
personal belongings until the hearing of the case. These orders can only be asked for in industrial violence
where both employees reside causing atmosphere of fear among other employees.
48

Page

Tel #: (02) 355-4168
MEMORANDUM ORDER
TO : Mr. X (Signature and Date Received)

RE : STAY OUT ORDER
Sa kadahilanang may kasalukuyan pang isinasagawang masusing imbestigasyon ang kumpanya na nag-
ugat sa pagkakalabag sa mga mahahalagang alituntunin ng Company Rules and Regulations (CRR) partikular na sa
“Pakikipag away sa kapwa emleyado sa loob at labas na nasasakupan ng kumpanya, Ang pagpasok sa trabaho na
nasa impluwensya ng alak o droga at paglabag sa Article 282 ng Labor Code of the Philippines (Serious Misconduct)
na diumano ay iyong ginawa na sya namang lubos na nakakaperwisyo sa interes ng kumpanya.
Kaya naman ikaw ay inaatasan na lumabas sa loob ng Racal Warehouse Lingunan Compound mula sa
petsa ng iyong pagkakatanggap nitong sulat hanggang matapos ang paglilitis sa iyo ng kumpanya at epektibo sa
lalong madaling panahon upang maiwasan ang ano mang tensyon, gulo at pagkaantala sa trabaho ng iba pang
manggagawa. Ang hindi pagsunod sa alituntuning ito ay maaaring dahilan ng pagkakatanggal sa trabaho.
Para sa iyong kaalaman at mahigpit na pagsunod, SO ORDERED December 17, 2012.
Approved By:

Copy Furnished:
Mr. JONITO C. RACAL

The Chairman/CEO (RGC)
9. NOTICE OF DISCIPLINARY ACTION (NDA) In its original sense, discipline is systematic instruction
intended to train a person, sometimes literally called a disciple, in a craft, trade or other activity, or to follow
a particular code of conduct or "order". Often, the phrase "to discipline" carries a negative connotation.
This is because enforcement of order–that is, ensuring instructions are carried out–is often regulated
through punishment other than termination (not termination) such as written reprimand and suspension.
Since NDA is the written order or direction made by the management thru the HRD itself, the caption must
be in the form of a judicial decision.
49
Page
Tel #: (02) 355-4168
RACAL GROUP OF COMPANIES

Complainant,
-Versus- ADM. Case No.___ RMAC-___

For: Theft
MR. X
Respondent.
x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x
DECISION
Ayon sa Show Cause Memorandum (SCM) na ibinigay sa iyo noong December 10, 2012, “Ikaw diumano ay
nahuli sa aktong nagpuslit ng 500 ml na Paint Thinner habang ikaw ay papalabas ng assembly” isang bagay na
paglabag sa Company Rules and Regulations (CRR) o Stealing company property. Isinasaad naman sa batas (Labor
Code of the Philippines) Art. 282, par. 1 “The employer may terminate the services of an employee on the following
grounds: Serious misconduct xxx by the employee in connection with his work” Bukod pa dito, ito din ay labag sa
Revised Penal Code na napapaloob sa Art. 308 o Theft (pang-uumit).
Ayon naman sa iyong Written Explanation (WE) na isinumite sa Departamentong ito noong Dec 11, 2012,
sinabi mo ang mga katagang sumusunod bilang pagsusumamo at depensa:
“Nais ko pong humingi ng paumanhin at magpaliwanag. Ako po ay naireport na kumuha ng thinner. Inaamin
ko po na kumuha ako ng thinner upang ipanglinis sa natuyung pintura na natapon sa aking binti at pantaloon. Ako po
ay nangangako na ang pangyayaring ito ay hindi na mauulit at muli po ako ay humihingi ng paumanhin
Lubos na gumagalang.”
Mr. X
Lagda
magsagawa ng pagdinig sa pamamagitan ng Notice of Hearing (NH) na may petsang December 15, 2012, na iyo
namang natanggap at isinagawa noong December 17, 2012.
50
Page
trabaho?”
pintura sa pantalon ko.”
Mr. X
Lagda
Ang tanging isyu nalamang na dapat iresulba ng Departamentong ito ay kung ikaw nga ba ay lumabag sa:
 “Company Rules and Regulations (CRR) “Stealing company property.”
 “Labor Code of the Philippines) Art. 282, par. 1 “The employer may terminate the services of an employee
on the following grounds: Serious misconduct xxx by the employee in connection with his work”
 “Revised Penal Code na napapaloob sa Art. 308 o Theft (pang-uumit).
Ang Departamentong ito ay magdedesisyon base sa katotohanang isinumite, sa batas o (Labor Code),
Company Rules and Regulations (CRR), sa mga ebidensyang nakalap at sa iyong mga salaysay. Sa sitwasyong ito,
malinaw na lumabag ka sa mga alituntunin ng kumpanya. Ang patunay nito ay ang pagkakahuli sa iyo ng Security
Guard sa akto ng pagpupuslit ng nasabing Paint Thinner. Malinaw na ikaw ay may nagawang pagkakamali sa
sitwasyong ito sapagkat ang iyong pagtatangkang pagpuslit ng pag-aari ng kumpanya na walang pahintulot mula sa
kinauukulan ay labag sa Company Rules and Regulation na nakasaad sa Table I (a) “Stealing company property”
Ayon naman sa Labor Code, ang “Serious Misconduct” gaya ng pagpuslit ng bagay na pag-aari ng
kumpanya ay ay nararapat lamang.
Ayon naman sa Revised Penal Code isang balidong dahilan upang ikatanggal ng empleyado sa trabaho
ayon sa Article 282, higit pa kung ito ay base sa serious misconduct. Sa kadahilanang ang iyong akto ay
napatunayan ayon sa aktwal mong pagkakahuli, ang pagtanggal sa iyo sa trabaho, Article 308, Ang pagnanakaw ay
gawa ng isang tao na, may intensyong mag-ari ng personal na bagay na hindi pinuwersang kunin o walang dahas sa
51
may-ari at hindi nagpaalam na ito ay kunin. Malinaw na ang mga elementong ito ay iyong ginawa. Sa nauna nang
insidente nito lang nakalipas na November 27, 2012 at sa halos parehong pangyayari ay may nahuli ng empleyado
Page
na nagtangkang magpuslit palabas ng langis ng motor, Subalit ito ay nasawata ng mga gwardya o bantay. Sa ano
mang katwiran, ay makikita dito ang intension na ang pag-aari ng kumpanya ay nais talagang kunin ng walang
paalam. Dahil ang langis ay kakulay ng inuming “ice tea” kaya naman ito ay inilagay sa bote ng “C2 green tea apple
flavor” upang mapagkamalan na C2 Ice Tea. Ngunit hindi nakalusot. Sa pagkakataon namang ito ay pinilit mo
sanang palalabasin na ang thinner ay isa lamang tubig dahil ito ay inilagay mo sa bote ng “Mineral Water”, ngunit sa
parehong pagkakataon ito ay hindi nakalusot. Sapagkat ikaw ay nahuli din. Ano man ang iyong intension ay hindi na
mahalaga sapagkat ikaw ay hindi nagpaalam, ito ay isang pagtatangkang mag-ari ng hindi sa iyo. Ito naman ay iyong
kusang loob na inamin batay sa iyong Written Explanation (WE) na nauna ng nabanggit sa itaas at sa isinagawang
pagdinig.
Hindi isinasawalang bahala ng kumpanya ang iyong paliwanag. Nagkataon lamang na may basehahan ang
mga alegasyon laban sa iyo. Ang pangunahing layunin ng disiplinang ito ay baguhin ang mga maling gawi o paraan
ng hindi kanais-nais na empleyado at upang makontrol at maprotektahan ang interes ng kumpanya. Ito ay isa ring
paraan upang maturuan ang empleyado at iba pa sa pag-gawa ng parehong pagkakamali.
NGAYON, napag-alamang lumabag ka sa Company Rules and Regulations, sa Labor Code at sa Revised
Penal Code. Ang pang-uumit sa mga bagay na pag-aari ng kumpanya ay may karampatang parusa na
PAGKAKATANGGAL SA TRABAHO. Subalit ang kumpanya bilang pag-gamit ng kanyang “management
prerogative” ay minabuti na ikaw ay patawan nalamang ng LABING LIMANG ARAW (15) NA PAGKAKASUSPINDE
SA TRABAHO. PINAAALALAHANAN ka din na huwag nang muli pang umulit sa parehong pagkakamali at sikapin
mo na gumawa ng paraan na naaayun sa Batas at Company Rules and Regulations na maitaguyod ang layunin ng
Kumpanya at iyon ay ang pagiging tapat sa kumpanya. Ang DISCIPLINARY ACTION na ito ay epektibong
magsisimula sa petsa ng iyong pagtanggap. Ikaw ay pinapayuhang bumalik matapos ang nasabing
pagkasuspensyon. Magsilbi sayong aral, babala at hamon ang mga pangyayaring ito. Pinaaalalahanan ka na ang
ano mang paglabag ng Company Rules and Regulations at sa batas ng Labor Code na may kaugnayan sa iyong
pagiging empleyado sa Kumpanya ay parurusahan ng mas higit pa sa kasalukuyang disiplina gaya ng
pagkakatanggal sa trabaho. Ikaw ay patuloy na oobserbahan at mamatyagan. Maglalaan ang HRD at Legal
Department ng kopya nitong DISCIPLINARY ACTION sa iyong 201 file para sa iyong personal na rekord.
Dapat mong malaman na ang Kumpanya ay nagnanais na masainstitusyon ang kulturang pang-
korporasyon na itinatalaga ang pag-uugali na may INTEGRIDAD at iyon ay ang pag-gawa ng tama at palaging tapat
at mabuti ang gawa.
Para sa iyong kaalaman at mahigpit na pagsunod. SO ORDERED, December 26, 2012.
Approved By:

Head: HRD & LEGAL DEPARTMENT
52
Received By:
Page
MR. X
Signature over printed name/Date
Copy Furnished:
HRD
201 File.
10. NOTICE OF TERMINATION (NT) is where the employer chooses to require the employee to leave,
generally for a reason which is the fault of the employee and therefore is considered in most cases to be
dishonorable and a sign of failure. Since NT is the written order or direction made by the management thru
the HRD itself, the caption must be in the form of a judicial decision.

53

Tel #: (02) 355-4168
Page
RACAL GROUP OF COMPANIES
Complainant,
-Versus- ADM. Case No.___ RMAC-___

For: Theft
MR. X
Respondent.
x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x
DECISION
Ayon sa Show Cause Memorandum (SCM) na ibinigay sa iyo noong December 10, 2012, “Ikaw diumano ay nahuli
sa aktong nagpuslit ng 500 ml na Paint Thinner habang ikaw ay papalabas ng assembly” isang bagay na paglabag
sa Company Rules and Regulations (CRR) o Stealing company property. Isinasaad naman sa batas (Labor Code of
the Philippines) Art. 282, par. 1 “The employer may terminate the services of an employee on the following grounds:
Serious misconduct xxx by the employee in connection with his work” Bukod pa dito, ito din ay labag sa Revised
Penal Code na napapaloob sa Art. 308 o Theft (pang-uumit).
Ayon naman sa iyong Written Explanation (WE) na isinumite sa Departamentong ito noong Dec 11, 2012, sinabi mo
ang mga katagang sumusunod bilang pagsusumamo at depensa:
“Nais ko pong humingi ng paumanhin at magpaliwanag. Ako po ay naireport na kumuha ng thinner. Inaamin ko po
na kumuha ako ng thinner upang ipanglinis sa natuyung pintura na natapon sa aking binti at pantaloon. Ako po ay
nangangako na ang pangyayaring ito ay hindi na mauulit at muli po ako ay humihingi ng paumanhin
Lubos na gumagalang.”
Mr. X
Lagda
magsagawa ng pagdinig sa pamamagitan ng Notice of Hearing (NH) na may petsang December 15, 2012, na iyo
namang natanggap at isinagawa noong December 17, 2012.

54
Page
trabaho?”
pintura sa pantaloon ko.”
Mr. X
Lagda
Ang tanging isyu nalamang na dapat iresulba ng Departamentong ito ay kung ikaw nga ba ay lumabag sa:
 “Company Rules and Regulations (CRR) “Stealing company property.”
 “Labor Code of the Philippines) Art. 282, par. 1 “The employer may terminate the services of an employee
on the following grounds: Serious misconduct xxx by the employee in connection with his work”
 “Revised Penal Code na napapaloob sa Art. 308 o Theft (pang-uumit).
Ang Departamentong ito ay magdedesisyon base sa katotohanang isinumite, sa batas o (Labor Code),
Company Rules and Regulations (CRR), sa mga ebidensyang nakalap at sa iyong mga salaysay. Sa sitwasyong ito,
malinaw na lumabag ka sa mga alituntunin ng kumpanya. Ang patunay nito ay ang pagkakahuli sa iyo ng Security
Guard sa akto ng pagpupuslit ng nasabing Paint Thinner. Malinaw na ikaw ay may nagawang pagkakamali sa
sitwasyong ito sapagkat ang iyong pagtatangkang pagpuslit ng pag-aari ng kumpanya na walang pahintulot mula sa
kinauukulan ay labag sa Company Rules and Regulation na nakasaad sa Table I (a) “Stealing company property”
Ayon naman sa Labor Code, ang “Serious Misconduct” gaya ng pagpuslit ng bagay na pag-aari ng kumpanya ay
isang balidong dahilan upang ikatanggal ng empleyado sa trabaho ayon sa Article 282, higit pa kung ito ay base sa
serious misconduct. Sa kadahilanang ang iyong akto ay napatunayan ayon sa aktwal mong pagkakahuli, ang
pagtanggal sa iyo sa trabaho ay nararapat lamang.
Ayon naman sa Revised Penal Code, Article 308, Ang pagnanakaw ay gawa ng isang tao na, may intensyong
mag-ari ng personal na bagay na hindi pinuwersang kunin o walang dahas sa may-ari at hindi nagpaalam na ito ay
kunin. Malinaw na ang mga elementong ito ay iyong ginawa. Sa nauna nang insidente nito lang nakalipas na
November 27, 2012 at sa halos parehong pangyayari ay may nahuli ng empleyado na nagtangkang magpuslit
palabas ng langis ng motor, Subalit ito ay nasawata ng mga gwardya o bantay. Sa ano mang katwiran, ay makikita
dito ang intension na ang pag-aari ng kumpanya ay nais talagang kunin ng walang paalam. Dahil ang langis ay
kakulay ng inuming “ice tea” kaya naman ito ay inilagay sa bote ng “C2 green tea apple flavor” upang mapagkamalan
na C2 Ice Tea. Ngunit hindi nakalusot. Sa pagkakataon namang ito ay pinilit mo sanang palalabasin na ang thinner
ay isa lamang tubig dahil ito ay inilagay mo sa bote ng “Mineral Water”, ngunit sa parehong pagkakataon ito ay hindi
55
nakalusot. Sapagkat ikaw ay nahuli din. Ano man ang iyong intension ay hindi na mahalaga sapagkat ikaw ay hindi
nagpaalam, ito ay isang pagtatangkang mag-ari ng hindi sa iyo. Ito naman ay iyong kusang loob na inamin batay sa
Page
iyong Written Explanation (WE) na nauna ng nabanggit sa itaas at sa isinagawang pagdinig.

Hindi isinasawalang bahala ng kumpanya ang iyong paliwanag. Nagkataon lamang na may basehahan ang mga
alegasyon laban sa iyo. Ang pangunahing layunin ng disiplinang ito ay baguhin ang mga maling gawi o paraan ng
hindi kanais-nais na empleyado at upang makontrol at maprotektahan ang interes ng kumpanya. Ito ay isa ring
paraan upang maturuan ang empleyado at iba pa sa pag-gawa ng parehong pagkakamali.
NGAYON, napag-alamang lumabag ka sa Company Rules and Regulations, sa Labor Code at sa Revised Penal
Code. Ang pang-uumit sa mga bagay na pag-aari ng kumpanya ay may karampatang parusa na
PAGKAKATANGGAL SA TRABAHO. Ang DISCIPLINARY ACTION na ito ay epektibong magsisimula sa petsa ng
iyong pagtanggap. Ikaw ay pinapayuhang makipag-ugnayan sa HRD upang magsauli ng company property o mga
gamit ng kumpanya na nasa iyong posisyon. Magsilbi sayong aral, babala at hamon ang mga pangyayaring ito.
Pinaaalalahanan ka na ang ano mang pagsuway sa Notice of Termination na ito ay maaaring dahilan ng pagsampa
laban sa iyo ng kumpanya ng kasong criminal sa hukuman. Ikaw ay patuloy na oobserbahan at mamatyagan
hanggang maayos kang humiwalay sa kumpanya. Maglalaan ang HRD at Legal Department ng kopya nito sa iyong
201 file para sa iyong personal na rekord.
Dapat mong malaman na ang Kumpanya ay nagnanais na masainstitusyon ang kulturang pang-korporasyon na
itinatalaga ang pag-uugali na may INTEGRIDAD at iyon ay ang pag-gawa ng tama at palaging tapat at mabuti ang
gawa.
Para sa iyong kaalaman at mahigpit na pagsunod. SO ORDERED, December 26, 2012.
Approved By:

Received By:
MR. X
Copy Furnished:
56
Page
DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE)29
National Capital Region
PPSTA Building, Banawe St., Quezon City.
DOLE Building, Muralla St., Intramuros, Manila
HRD
201 File.
11. NOTICE OF DISCIPLINARY ACTION (FOR MINOR OFFENSE) This NDA is a form intended for the
guidance of the Branch Managers in drafting decisions concerning erring employees whose penalty for
violating the Company Rules and Regulation ranges from Oral Warning, Written Reprimand to Suspension
57
Page
29
In cases of termination or dismissal and severance of employment based on authorized causes and just causes,
always furnish the DOLE a copy of the HRD’s decision.
not exceeding seven (7) days. As per instruction under Memorandum Order No. 25, dated December 05,
Series of 2012.

Tel #: (02) 355-4168
ADMINISTRATIVE CASE NO.1 SERIES OF 2013
DATE : February 19, 2013
TO : MR. X (RMAC-PERSONNEL)
FROM : HRD/LEGAL DEPT
RE : NOTICE OF DISCIPLINARY ACTION (FOR EXCESSIVE USE OF CELL PHONE DURING

WORKING HOUR)
Ito ay upang ipaalam sa iyo na matapos ang patas na imbestigasyon, ikaw ay napag-alamang lumabag sa
Company Rules and Regulations patungkol sa:
_____ Habitual Tardiness __X__ Neglect of Duty

_____ AWOL _____ Smoking in Prohibited Area
__X__ Conduct and Behavior _____ Safety Hazards/Carelessness
_____ Insubordination/Discourtesy _____ Others
Pagsasalarawan ng nilabag na patakaran:
Sa isang Incident Report (IR), na ipinagbigay alam nina Mr. Abdul Jakul (Tricab Leadman) at Mr. Aydol
Putol (Quality Control Supervisor) sa Departamentong ito nitong nakalipas na February 06, 2013 noon ding araw na
iyon, habang sila ay gumaganap sa kanilang trabaho, ikaw diumano ay nasita na panay-panay ang paggamit sa cell
phone. Naipagbigay alam din na hindi ito ang unang pagkakataon na ikaw ay napagsabihan na at nasaway sa
parehong insidente ngunit patuloy padin sa nasabing paglabag na parang walang pakialam sa iyong supiryor at
kinakatakutang opisyal.
Sa iyong sulat paliwanag, sinabi mo ang mga katagang sumusunod “ako po ay humihingi ng kaunting
paumanhin kung mamarapatin. Ito ay hindi totoo. Katunayan nga lagi nanga ako negative sa sahud at kahit nga
pang-snack di ako makabili, pang load pa kaya. Isa pa sa tinagal ko dito sa kumpanyang ito imposible yata na hindi
ko alam ang mga rules and regulations n gating kumpanya. Isa po akong padre de pamilya, dahil lang dyan sisirain
ko kinabukasan ng aking mga anak at magutom ang aking pamilya. Yun lang po at wala nang iba. Salamat po.”
58
Ayon naman sa isinagawang pagdinig ng iyong kaso o Hearing, ikaw ay pinaalalahanan na magharap ng
iyong testigo upang pasinungalingan ang mga paratang laban sa iyo, ngunit pinili mong magpatuloy ang pagdinig ng
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iyong kaso ng mag-isa. Nang ikaw ay tanungin patungkol sa iyong labis na pag-gamit ng cell phone sa oras ng
trabaho ay inulit mo lamang ang iyong mga sinabi sa sulat paliwanag. Ngunit nang iharap na sa iyo ang mga testigo
ng kumpanya sa katauhan ni Mr. Aydol Putol ay wala kanang nagawa kundi umamin sa iyong pagkakamali. Ikaw ay
naging mapagkumbaba at humingi na ng patawad. Kasunod nito ay ang pangakong hindi na muling uulitin ang
nasabing pagkakamali at susundin nalamang ang mabuting payo ng mga nakatataas sa trabaho.
Sa makatuwid napatunayan nga na ikaw ay lumabag sa mga mahahalagang alituntunin ng kumpanya

patungkol sa mga sumusunod:
Company Rules and Regulations:
TABLE II: OFFENSES CONCERNING COMPANY INTEREST
(dd) Any other act obviously and significantly detrimental to the best interest of the company and/or fellow employees
as determined by the management thru the person who actually witnessed the said act.
TABLE V: OFFENSES CONCERNING HARMONY AND GOOD ORDER, SAFETY AND DECENCY AT
WORK.
(kk) Excessive use of cell phones (i.e. sending text messages, receiving and making calls during office hours).
Bukod pa dito, ito din ay maituturing na paglabag sa Labor Code of the Philippines na napapaloob sa Art.
282 o maituturing na Serious Misconduct. Ito naman ay iyong inamin na sa ginanap na pagdinig ng iyong kaso noong
February 12, 2013.
Ang mga nabanggit na nilabag ayon sa Company Rules and Regulations ay may karampatang parusa na
WRITTEN REPRIMAND.
_____ Oral Warning __X__ Written Reprimand

_____ Suspension
Ang muling pag-ulit ng nasabing paglabag sa Company Rules and Regulations at Labor Code ay dahilan
upang muling mas mahigpit pang disiplinahin o maaaring dahilan ng pagkakatanggal sa trabaho.
Para sa iyong kaalaman at mahigpit na pagsunod. SO ORDERED, February 19, 2013.
59
Approved By:
Page
MR. Y
Branch Manager (LUZ-VI-MINDA Branch)
Received By:
MR. X
Employee Signature over printed name
Copies furnish:
Mr. Jonito C. Racal

Mr. Jose Earl B. Racal

The President (RGC)
201 File.
12. NOTICE OF TERMINATION DUE TO AUTHORZED CAUSE (MEDICAL REASONS) Termination of

services of an employee found suffering from any desease whose continued employment is prohibited by
law [drug addiction, alcoholism} or prejudicial to his health [serious heart condition] as well as health of his
60
co-employees [tuberculosis or any contagious desease], is sanctioned by law. The employer is required to
produce a certification by a competent public health authority (government doctor, hospital or clinic) that the
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desease is of such nature and at such stage that it cannot be cured within six (6) months, even with proper
medical treatment. If the desease of ailment can be cured sufficiently for employee to go back to his regular
position in less than six (6) months, the employer may not terminate the employee but may ask him to go on
leave to protect himself and his co-employees. Some doctors might certify “employee is well but must be
given lighter work.” This means the employee is not yet well as it is the company that determines where the
employee’s services are needed, not the doctor, therefore, the docdor must certify that he is well or cured
and can go back to work in his former position.

Tel #: (02) 355-4168
_______________________________________________________________
MEMORANDUM ORDER
TO : Mr. X

RE : NOTICE OF TERMINATION DUE TO MEDICAL REASONS
Base sa mga impormasyon na isinumite ng iyong Supervisor na si Mr. Chuchu, at kinumpirma ni Dr. Doom,
ang medical officer ng kumpanya, na sya namang sertipikadong sinumpaan ni Dr. A. Cula ng Pamahalaang Ospital
ng Valenzuela, ikaw ay natagpuang may sakit o karamdaman na hindi magagamot sa loob ng anim (6) na buwan
liban pa kahit ito ay kasalukuyan ng ginagamot.
Kaya naman ikaw ay inaabisuhan na ang pagkakatanggal mo sa trabaho ay magsisimulang maging

epektibo nitong darating na (date), binibigyan ka ng sapat na oras at panahon upang makipag usap sa HRD
patungkol sa ano mang sahud o sweldo at iba pang benipisyo na maaaring angkop sa iyo buhat ng pagkakahiwalay
mo sa kumpanya.
Para sa iyong kaalaman, ikaw ay babayaran ng “separation benefit” sa katumbas na halagang kalahating
(1/2) buwan ng iyong sahud o sweldo para sa lahat ng taon ng iyong serbisyo. Dagdag pa dito, nais ng kumpanya na
bigyan ka ng tulong pinansyal upang matulungan ka sa iyong mga pangangaylangan.
Salamat sa mga taon na paglilingkod mo sa kumpanya.
Approved By:
61

Page

Received By:
MR. X
Copy Furnished:
DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE)30

National Capital Region
PPSTA Building, Banawe St., Quezon City.
DOLE Building, Muralla St., Intramuros, Manila
HRD
201 File.
RESIGNATION.31
December 24, 2012

30
In cases of termination or dismissal and severance of employment based on authorized causes and just causes,
62
always furnish the DOLE a copy of the HRD’s decision.

Page
31
Refer to xii, page.36
Mr. Jonito C. Racal

Tel #: (02) 355-4168
Dear Chairman Racal,
Greetings in the name of our Lord.
It has been an honor and privilege to have worked with you in your Company since December of 1986. The
challenges to the job have been more enriching, particularly in the field of industrial relations. For all these, I am
thankful.
It is with regret, however, that for some professional reasons I have decided to leave the service. Effective
January 30, 2013, therefore, I am tendering my resignation from the Company.
Again, let me reiterate my thanks to you, officially for the pleasant times we and my co-leagues spent
together.
God bless us all.
Very truly yours,
Mr. Acha C. Hang

Signature over printed name
Copy Furnish:
HRD
Legal Department
[FOR MY LOWLY BRAVES, THIS IS FOR YOU]

Liberal Doctrine of “Proportionality Rule”
SUPREME COURT
63
THIRD DIVISION
Page
G.R. No. 166554: November 27, 2008

JULITO SAGALES, Petitioner, v. RUSTAN'S COMMERCIAL CORPORATION, Respondent.
DECISION
REYES, R.T., J.:
Labor is property, and as such merits protection. The right to make it available is next in importance to the
rights of life and liberty. It lies to a large extent at the foundation of most other forms of property, and of all solid
individual and national prosperity.
The employee questions the propriety of his dismissal after he was caught stealing 1.335 kilos of squid
heads worth P50.00. He invokes his almost thirty-one (31) years of untarnished service and the several awards he
received from the company to temper the penalty of dismissal meted on him.
The Facts
Petitioner Julito Sagales was employed by respondent Rustan's Commercial Corporation from October 1970
until July 26, 2001, when he was terminated. At the time of his dismissal, he was occupying the position of Chief
Cook at the Yum Yum Tree Coffee Shop located at Rustan's Supermarket in Ayala Avenue, Makati City. He was paid
a basic monthly salary of P9, 880.00. He was also receiving service charge of not less than P3, 000.00 a month and
other benefits under the law.
In the course of his employment, petitioner was a consistent recipient of numerous citations for his
performance. After receiving his latest award on March 27, 2001, petitioner conveyed to respondent his intention of
retiring on October 31, 2001, after reaching thirty-one (31) years in service. Petitioner, however, was not allowed to
retire with his honor intact.
On June 18, 2001, Security Guard Waldo Magtangob, upon instructions from Senior Guard Bonifacio
Aranas, apprehended petitioner in the act of taking out from Rustan's Supermarket a plastic bag. Upon examination,
it was discovered that the plastic bag contained 1.335 kilos of squid heads worth P50.00. Petitioner was not able to
show any receipt when confronted. Thus, he was brought to the Security Office of Respondent Corporation for proper
endorsement to the Makati Headquarters of the Philippine National Police. Subsequently, petitioner was brought to
the Makati Police Criminal Investigation Division where he was detained. Petitioner was later ordered released
pending further investigation.
Respondent alleged that prior to his detention, petitioner called up Agaton Samson, Rustan's Branch
Manager, and apologized for the incident. Petitioner even begged Samson that he would just pay for the squid
heads. Samson replied that it is not within his power to forgive him.
On June 19, 2001, petitioner underwent inquest proceedings for qualified theft before Assistant Prosecutor
Amado Y. Pineda. Although petitioner admitted that he was in possession of the plastic bag containing the squid
heads, he denied stealing them because he actually paid for them. As proof, petitioner presented a receipt. The only
fault he committed was his failure to immediately show the purchase receipt when he was accosted because he
misplaced it when he changed his clothes. He also alleged that the squid heads were already "scraps" as these were
not intended for cooking. Neither were the squid heads served to customers. He bought the squid heads so that they
could be eaten instead of being thrown away. If he intended to steal from respondent, he could have stolen other
valuable items instead of scrap.
Assistant Prosecutor Pineda believed the version of petitioner and recommended the dismissal of the case
for "lack of evidence." The recommendation was approved upon review by City Prosecutor Feliciano Aspi.
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Notwithstanding the dismissal of the complaint, respondent, on June 25, 2001, required petitioner to explain
in writing within forty-eight (48) hours why he should not be terminated in view of the June 18, 2001 incident.
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Respondent also placed petitioner under preventive suspension.

On June 29, 2001, petitioner was informed that a formal investigation would be conducted by the Legal
Department on July 6, 2001.
Petitioner and his counsel attended the administrative investigation where he reiterated his defense before
the inquest prosecutor. Also in attendance were Aranas and Magtangob, who testified on the circumstances
surrounding the apprehension of petitioner; Samson, the branch manager to whom petitioner allegedly apologized for
the incident; and Zenaida Castro, cashier, who testified that the squid heads were not paid.
Respondent did not find merit in the explanation of petitioner. Thus, petitioner was dismissed from service
on July 26, 2001. At that time, petitioner had been under preventive suspension for one (1) month.
Aggrieved, petitioner filed a complaint for illegal dismissal against respondent. He also prayed for unpaid
salaries/wages, overtime pay, as well as moral and exemplary damages, attorney's fees, and service charges.
Labor Arbiter, NLRC, and CA Dispositions
On July 24, 2002, Labor Arbiter Felipe P. Pati dismissed the complaint.
IN VIEW OF THE FOREGOING, the complaint for illegal dismissal should be DISMISSED for lack of merit.
SO ORDERED.
According to the Labor Arbiter, the nature of the responsibility of petitioner "was not that of an ordinary
employee." It then went on to categorize petitioner as a supervisor in "a position of responsibility where trust and
confidence is inherently infused." As such, it behooved him "to be more knowledgeable if not the most
knowledgeable in company policies on employee purchases of food scrap items in the kitchen." Per the evidence
presented by respondent, petitioner breached company policy which justified his dismissal.
Petitioner appealed to the National Labor Relations Commission (NLRC). On April 10, 2003, the NLRC reversed the
Labor Arbiter in the following tenor:
WHEREFORE, the decision appealed from is hereby SET ASIDE and complainant's dismissal declared
illegal. Further, respondent is hereby ordered to reinstate complainant to his former position without loss of seniority
rights and other benefits and paid backwages computed from time of dismissal up to the finality of this decision which
as of this date amounts to P269,854.16.
All other claims are denied for want of basis.
SO ORDERED.
The NLRC held that the position of complainant is not supervisory covered by the trust and confidence rule.
On the contrary, petitioner is a mere rank-and-file employee. The evidence is also wanting that petitioner committed
the crime charged. The NLRC did not believe that petitioner would trade off almost thirty-one (31) years of service for
P50.00 worth of squid heads.
The NLRC further ruled that petitioner was illegally dismissed as respondent failed to establish a just cause for
dismissal. However, the claim for damages was denied for lack of evidence. The motion for reconsideration having
been denied, respondent brought the matter to the Court of Appeals (CA) via a petition for certiorari under Rule 65 of
the 1997 Rules on Civil Procedure. On July 12, 2004, the CA rendered the assailed decision, with the following fallo:
65
WHEREFORE, the petition is GRANTED. The challenged resolutions of April 10, 2003 and July 31, 2003 of
public respondent NLRC are REVERSED and SET ASIDE. The decision of the Labor Arbiter of July 24, 2002,
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dismissing private respondent's complaint is REINSTATED.

SO ORDERED.
In reversing the NLRC, the CA opined that the position of petitioner was supervisory in nature. The CA also
held that the evidence presented by respondent clearly established loss of trust and confidence on petitioner. Lastly,
the CA, although taking note of the long years of service of petitioner and his numerous awards, refused to award
separation pay in his favor. According to the CA, "the award of separation pay cannot be sustained under the social
justice theory" because the instant case "involves theft of the employer's property."
Petitioner filed a motion for reconsideration which was denied. Left with no other recourse, petitioner availed
of the present remedy.
Issues
Petitioner in his Memorandum imputes to the CA the following errors, to wit:
I. THE COURT OF APPEALS COMMITTED GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OF

JURISDICTION WHEN IT CONCLUDED THAT THE POSITION OF THE PETITIONER BEING AN ASSISTANT
COOK AS A SUPERVISORY POSITION FOR BEING CONTRADICTORY TO THE EVIDENCE ON RECORD.
II. THE COURT OF APPEALS COMMITTED GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK
OF JURISDICTION WHEN IT CONCLUDED THAT THE DOCTRINE OF TRUST AND CONFIDENCE APPLIES
AGAINST THE PETITIONER TO JUSTIFY HIS DISMISSAL FROM EMPLOYMENT FOR BEING CONTRADICTORY
TO THE EVIDENCE ON RECORD. (Underscoring supplied)
For a full resolution of the issues in the instant case, the following questions should be answered: (1) Is the
position of petitioner supervisory in nature which is covered by the trust and confidence rule? (2) Is the evidence on
record sufficient to conclude that petitioner committed the crime charged? and (3) Assuming that the answer is in the
affirmative, is the penalty of dismissal proper?
Our Ruling
I. The position of petitioner is supervisory in nature which is covered by the trust and confidence rule.
The nature of the job of an employee becomes relevant in termination of employment by the employer
because the rules on termination of managerial and supervisory employees are different from those on the rank-and-
file. Managerial employees are tasked to perform key and sensitive functions, and thus are bound by more exacting
work ethics. As a consequence, managerial employees are covered by the trust and confidence rule. The same holds
true for supervisory employees occupying positions of responsibility.
There is no doubt that the position of petitioner as chief cook is supervisory in nature. A chief cook directs
and participates in the preparation and serving of meals; determines timing and sequence of operations required to
meet serving times; and inspects galley and equipment for cleanliness and proper storage and preparation of food.
Naturally, a chief cook falls under the definition of a supervisor, i.e., one who, in the interest of the employer,
effectively recommends managerial actions which would require the use of independent judgment and is not merely
routinary or clerical.
It has not escaped Our attention that petitioner changed his stance as far as his actual position is
concerned. In his position paper, he alleged that at the time of his dismissal, he was "Chief Cook." However, in his
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memorandum, he now claimed that he was an "Asst. Cook." The ploy is clearly aimed at giving the impression that
petitioner is merely a rank-and-file employee. The change in nomenclature does not, however, help petitioner, as he
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would still be covered by the trust and confidence rule. In Concorde Hotel v. Court of Appeals, the Court categorically
ruled:
Petitioner is correct insofar as it considered the nature of private respondent's position as assistant cook a
position of trust and confidence. As assistant cook, private respondent is charged with the care of food preparation in
the hotel's coffee shop. He is also responsible for the custody of food supplies and must see to it that there is
sufficient stock in the hotel kitchen. He should not permit food or other materials to be taken out from the kitchen
without the necessary order slip or authorization as these are properties of the hotel. Thus, the nature of private
respondent's position as assistant cook places upon him the duty of care and custody of Concorde's property.
(Emphasis supplied)
Of course, the ruling assumes greater significance if petitioner is the chief cook. A chief cook naturally
performs greater functions and has more responsibilities than an assistant cook. In eo quod plus sit simper inest et
minimus. The greater always includes the less. Ang malawak ay laging sumasakop sa maliit.
II. The evidence on record is sufficient to conclude that petitioner committed the crime charged.
Security of tenure is a paramount right of every employee that is held sacred by the Constitution. The reason for this
is that labor is deemed to be "property" within the meaning of constitutional guarantees. Indeed, as it is the policy of
the State to guarantee the right of every worker to security of tenure as an act of social justice, such right should not
be denied on mere speculation of any similar or unclear nebulous basis. Indeed, the right of every employee to
security of tenure is all the more secured by the Labor Code by providing that "the employer shall not terminate the
services of an employee except for a just cause or when authorized" by law. Otherwise, an employee who is illegally
dismissed "shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full
backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time
his compensation was withheld from him up to the time of his actual reinstatement."
Necessarily then, the employer bears the burden of proof to show the basis of the termination of the
employee.
In the case at bar, respondent has discharged its onus of proving that petitioner committed the crime
charged. We quote with approval the observation of the CA in this regard:
On this matter, petitioner presents as evidence the verified statement of security guard Aranas. Aranas
positively saw the private in the act of bringing out the purloined squid heads. Similarly, the statement of security
guard Magtangob attested to the commission by private respondent of the offense charged. Further, the verified
statement of Samson, store manager of petitioner corporation who is in charge of all personnel, including employees
of the Yum Yum Tree Coffee Shop of which private respondent was a former assistant cook, attested to the fact of
private respondent seeking apology for the commission of the act. Likewise, the statement of Zenaida Castro
(Castro), cashier of petitioner corporation's supermarket, Makati Branch, Ayala Center, Makati City, confirmed that
indeed the 1.335 kilos of squid heads amounting to fifty pesos (P50.00)per kilo, had not been paid for.
The contention of petitioner that respondent merely imputed the crime against him because he was set to
retire is difficult, if not impossible, to believe. Worth noting is the fact that petitioner failed to impute any ill will or
motive on the part of the witnesses against him. As aptly observed by the Labor Arbiter:
It seems unbelievable to believe that the apprehending officers up to the Manager, Mr. Samson, were all
telling a lie as what complainant wants to portray when he alleged in his pleadings that he mentioned to the
apprehending officers [that] he has a receipt for [the squid heads] and that he never apologized. This is
understandable on his part because complainant wants no loophole in his version. And an easy way out is to
fabricate his allegations.
67
We stress that the quantum of proof required for the application of the loss of trust and confidence rule is not
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proof beyond reasonable doubt. It is sufficient that there must only be some basis for the loss of trust and confidence
or that there is reasonable ground to believe, if not to entertain the moral conviction, that the employee concerned is
responsible for the misconduct and that his participation in the misconduct rendered him absolutely unworthy of trust
and confidence.
It is also of no moment that the criminal complaint for qualified theft against petitioner was dismissed. It is
well settled that the conviction of an employee in a criminal case is not indispensable to the exercise of the
employer's disciplinary authority.
III. The penalty of dismissal is too harsh under the circumstances.
The free will of management to conduct its own business affairs to achieve its purpose cannot be denied.
The only condition is that the exercise of management prerogatives should not be done in bad faith or with abuse of
discretion. Truly, while the employer has the inherent right to discipline, including that of dismissing its employees,
this prerogative is subject to the regulation by the State in the exercise of its police power.
In this regard, it is a hornbook doctrine that infractions committed by an employee should merit only the
corresponding penalty demanded by the circumstance. The penalty must be commensurate with the act, conduct or
omission imputed to the employee and must be imposed in connection with the disciplinary authority of the employer.
For example, in Farrol v. Court of Appeals , the employee, who was a district manager of a bank, incurred a
shortage of P50,985.37. He was dismissed although the funds were used to pay the retirement benefits of five
employees of the bank. The employee was also able to return the amount, leaving a balance of only P6,995.37 of the
shortage. The bank argued that under its rules, the penalty for the infraction of the employee is dismissal. The Court
disagreed and held that the penalty of dismissal is too harsh. The Court took note that it is the first infraction of the
employee and that he has rendered twenty-four (24) long years of service to the bank. In the words of Mme. Justice
Consuelo Ynares-Santiago, "the dismissal imposed on petitioner is unduly harsh and grossly disproportionate to the
infraction which led to the termination of his services. A lighter penalty would have been more just, if not humane."
In the case at bar, petitioner deserves compassion more than condemnation. At the end of the day, it is
undisputed that: (1) petitioner has worked for respondent for almost thirty-one (31) years; (2) his tireless and faithful
service is attested by the numerous awards he has received from respondent; (3) the incident on June 18, 2001 was
his first offense in his long years of service; (4) the value of the squid heads worth P50.00 is negligible; (5)
respondent practically did not lose anything as the squid heads were considered scrap goods and usually thrown
away in the wastebasket; (6) the ignominy and shame undergone by petitioner in being imprisoned, however
momentary, is punishment in itself; and (7) petitioner was preventively suspended for one month, which is already a
commensurate punishment for the infraction committed. Truly, petitioner has more than paid his due.
In any case, it would be useless to order the reinstatement of petitioner, considering that he would have
been retired by now. Thus, in lieu of reinstatement, it is but proper to award petitioner separation pay computed at
one-month salary for every year of service, a fraction of at least six (6) months considered as one whole year. In the
computation of separation pay, the period where backwages are awarded must be included.
Word of caution.
We do not condone dishonesty. After all, honesty is the best policy. However, punishment should be
commensurate with the offense committed. The supreme penalty of dismissal is the death penalty to the working
man. Thus, care should be exercised by employers in imposing dismissal to erring employees. The penalty of
dismissal should be availed of as a last resort.
68
Indeed, the immortal words of Mr. Justice (later Chief Justice) Enrique Fernando ring true then as they do
now: "where a penalty less punitive would suffice, whatever missteps may be committed by labor ought not be visited
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with a consequence so severe. It is not only because of the law's concern for the workingman. There is, in addition,
his family to consider. Unemployment brings untold hardships and sorrows on those dependent on the wage-earner."
WHEREFORE, the appealed Decision of the Court of Appeals is REVERSED and SET ASIDE. The
Decision of the National Labor Relations Commission is REINSTATED with the MODIFICATION that petitioner is
granted separation pay and backwages in lieu of reinstatement.
SO ORDERED.
OBSERVATION
The consequences of Illegal Termination comprehend among others Reinstatement, Full Back Wages,
Separation Pay, Damages and Attorney’s Fees. The illegality of dismissal task to inexperienced HRD
personnel/officer may cost a lot of money to the detriment of the company/employer. So take it easy on dismissal.
This must be the last resort for the law regards the worker with compassion. Our society is a compassionate one.
After all, labor determinations should not only be secundum rationem (according to logic) but also secundum
caritatem (with compassion).
______jb.bangui@gmail.com______
HABILIN AT TAGUBILIN
Isinulat ni Jose “Pete” F. Lacaba
Binigkas ni Armida Siguion-Reyna sa kanyang CD Pop Lola
Musika ni Ryan Cayabyab
69
Mabuhay ka, kaibigan! Mabuhay ka! Iyan ang una’t huli kong tagubilin at habilin: Mabuhay ka! Sa
Page
edad kong ito, marami akong maibibigay na payo. Mayaman ako sa payo.
Maghugas ka ng kamay bago kumain. Maghugas ka ng kamay pagkatapos kumain. Pero huwag
kang maghuhugas ng kamay para lang makaiwas sa sisi. Huwag kang maghuhugas ng kamay kung may
inaapi na kaya mong tulungan.
Paupuin sa bus ang matatanda at ang mga may kalong na sanggol. Magpasalamat sa
nagmamagandang-loob. Matuto sa karanasan ng matatanda pero huwag magpatali sa kaisipang
makaluma.
Huwag piliting matulog kung ayaw kang dalawin ng antok. Huwag pag-aksayahan ng panahon ang
walang utang na loob. Huwag makipagtalo sa bobo at baka ikaw ay mapagkamalang bobo. Huwag
bubulong-bulong sa mga panahong kailangang sumigaw. Huwag kang manalig sa bulung-bulungan.
Huwag kang papatay-patay sa ilalim ng pabitin. Huwag kang tutulog-tulog sa pansitan.
Umawit ka kung nag-iisa sa banyo. Umawit ka sa piling ng barkada. Umawit ka kung nalulungkot.
Umawit ka kung masaya. Ingat lang. Huwag kang aawit ng “My Way” sa videoke bar at baka ka mabaril.
Huwag kang magsindi ng sigarilyo sa gasolinahan. Dahan-dahan sa matatarik na landas. Dahan-dahan sa
malulubak na daan. Higit sa lahat, inuulit ko:
Mabuhay ka, kaibigan! Mabuhay ka! Iyan ang una’t huli kong tagubilin at habilin: Mabuhay ka!
Maraming bagay sa mundo na nakakadismaya. Mabuhay ka. Maraming problema ang mundo na wala na
yatang lunas. Mabuhay ka.
Sa hirap ng panahon, sa harap ng kabiguan, kung minsan ay gusto mo nang mamatay. Gusto
mong maglaslas ng pulso kung sawi sa pag-ibig. Gusto mong uminom ng lason kung wala nang makain.
Gusto mong magbigti kung napakabigat ng mga pasanin. Gusto mong pasabugin ang bungo mo kung
maraming gumugulo sa utak. Huwag kang patatalo. Huwag kang susuko.
Narinig mo ang sinasabi ng awitin: “Gising at magbangon sa pagkagupiling, sa pagkakatulog na

lubhang mahimbing.” Gumising ka kung hinaharana ka ng pag ibig. Bumangon ka kung nananawagan ang
kapuspalad.
Ang sabi ng iba: “Ang matapang ay walang-takot lumaban.” Ang sabi ko naman: Ang tunay na
matapang ay lumalaban kahit natatakot. Lumaban ka kung inginungodngod ang nguso mo sa putik.
Bumalikwas ka kung tinatapak-tapakan ka. Buong-tapang mong ipaglaban ang iyong mga prinsipyo kahit
hindi ka sigurado na agad-agad kang mananalo.
Mabuhay ka, kaibigan! Mabuhay ka! Iyan ang una’t huli kong tagubilin at habilin: Mabuhay ka!
COMPANY PROFILE: 32
The RACAL GROUP OF COMPANIES started as a lone nomadic type sole proprietorship in the person of
the Chairman/CEO itself by painstakingly offering to sell boxes of tiles on board an owner-type-jeep skillfully done on
house to house basis or to every corner of the streets where Mr. Racal spotted a house being build, there he is
offering his product and services.33 This humble beginning started in December 6, 1996, when the owner, Mr. Jonito
C. Racal resigned from Lepanto Ceramics as a Technical Staff and became an entrepreneur. Through his hard work
70
32
Source: www.rgc.com.ph/.
Page
33
Source: Mr. Nicanor Caparida (General Manager-RGC) known as the “Ang katiwala”, the right hand man of the
Chairman/CEO since the beginning of the RGC.
and perseverance from a single outlet he managed to add seven (7) branches after four (4) years. Thus, the RACAL
CERAMICS BARGAIN CENTER INC. came into existence. In January 1999, a 2,000 sq. meter bodega was acquired
in Silang, Cavite to serve the CALABARZON and nearby provinces with its satellite networks of showrooms in the
Southern Luzon areas like: Silang, Cavite (Head Office), Salitran, Imus and Bacoor outlets.
In February 2002, a 2,000 sq. meter bodega was acquired in San Fernando, Pampanga to serve the
Northern part of Luzon which includes Cabanatuan City, Bulacan, Pampanga and Tarlac. In 2001, the company has
rented a 2,000 sq. meter space in Tarlac for a construction of bodega type to serve the dealers and customers in the
far Northern part of Luzon. For its ongoing expansion, we are now serving four (4) more outlets located at Antipolo
City, Cainta Rizal, Novaliches, Quezon City and in Lagro Quezon City. Thus, two (2) warehouses have been
provided to our branches to support our deliveries both in Region III and the CALABARZON store outlets as well as
the dealers in both regions.
His enthusiasm and awareness in the business made him recognized in the Ceramic Tile Market and start
to develop and create industry peers. The distinctive structure of his outlets is gradually established due to its
“MAKA-MASA” look and persuades customers and dealers that patronizing the stores. Maintaining his credibility
impressed numerous suppliers to take local product such as: TEN ZEN TILES, LEPANTO CERAMICS, and APO
VINYL TILES AND MARIWASA TILES. Consequently, getting stocks directly from other local suppliers proved an
edge in maintaining competitive and economical cost on his product.
Year 2004, was a good start as the proprietor extremely got the fortitude to trade in varieties of imported
supplies as his first introduction in the industry such as: Granite, Slab stones, PVC Doors, Glass Basins, Faucets,
Bathroom Fixtures and Accessories and more, was a good launched in making his importation business well good
and sound. Trusted for its reliable and high quality both local and imported product, respected for its responsiveness,
caring and decent business conduct, well-oriented sales force, company people united, we are happy and thankful to
God for the opportunity to sell improve product quality.
In the same year, he also breaks through the ceramic tiles market in the Queen City of the South, Cebu
City. Supported with a 1,600 sq. meter warehouse to sustain and augment his diversification program on gradual
opening of new branches and/or showrooms in the areas of Mandaue City, Minglanilla and Toledo City (opened in
the year 2005 & 2006), saturating both ends in the North and South locale. Moreover, the company has a 2,500 sq.
meter bodega and showroom in Dumaguete City in the Visayas to serve the Negros Oriental operations. His
concentration of imported ceramic tile such as: indoor and outdoor (Rustic Ceramic Designs), flooring and wall tiles,
PVC with glass door designs and other local product, is a flotilla in boosting his product that can compete from his
giant competitors in the Ceramic Tile market.
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Year 2006, being an element of his innovation, he also managed to open two (2) more branches in Hua Tai
Cheng Fu Pu Jin Jiang Fu Jian, and Xiao Xia Dong Shi Jin Jiang, China, perfectly penetrates the market out of the
country. The same year two (2) other branches were raised in Sauyo, Novaliches Quezon City and in Las Piñas City.
Year, 2007, RACAL GROUP OF COMPANIES acquired a prime lot with an area of 8,987 m2, located at P.Dela Cruz
St. Nagkaisang Nayon Novaliches Quezon City. Due to the growing numbers of consumers the management decided
to add four (4) more outlets located at Sucat, Molino, Langkaan and Lipa. Also, one more branch was added in the
Visayas region which is located at Tagbilaran, Bohol.
For the year 2008, another real property situated at #291 Pinagbayanan St. Brgy. Lingunan Valenzuela City,
consisting of 4,148 m2 has been added to its lists of assets. More stores were raised particularly in Dagupan and
Urdaneta Pangasinan Farview in Quezon City, Muzon in San Jose del Monte Bulacan and Sta Cruz in Laguna.
It was in March 2009, that the RACAL GROUP OF COMPANIES acquired its 27, 416 m2 land located at Francisco
St. Maysan Malinta Valenzuela City which was served as its main warehouse of all warehouses in Philippines. On
September 11, 2009, the companies (GROUP) have ventured into a different and distinct kind of business as it
invested into a motorcycle business. Thus, RACAL MOTOR ASSEMBLY CORPORATION was created to market
locally assembled motorcycles under the Brand Name “RACAL” which was granted by the Board of Investment a
special privilege under the NEW MOTOR VEHICLE DEVELOPMENT PROGRAM (MVDP).
In February 2010, RACAL MOTORSALES CORP. was established with the primary purpose of selling the
assembled motors of the RACAL MOTOR ASSEMBLY. In seven (7) months period of operations the RACAL
MOTORSALES CORP. has new twenty five (25) branches in Luzon area.
These networks of branches and warehouses are supported by delivery vehicles to facilitate prompt and
efficient deliveries of ordered goods. This delivery fleet gives the company an edge over other companies. Now, it’s a
decade of dedicated service and operations, Racal Ceramics Group of Companies is now RACAL CERAMICS
BARGAIN CENTER INC., with its huge and bodega type of structure serving not only low-end clientele but also
carries high-end supplies which caters the class A and B mass. Our wide-ranging, extensive varieties and selection
of product, maintaining low prices with good quality and optimal service is our top concern to meet customer
demands.
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INTRODUCTION:

MESSAGE FROM THE CHAIRMAN/CEO:

Greetings in the name of the Lord,

God bless us all.

Mr. Jonito C. Racal5

 To ensure stable but dynamic and just industrial peace.

II. SCOPE OF POLICY:

 Racal Motors Assembly Corporation (RMAC);

VII. INTENT OF THE POLICY:

VIII. REFERENCE FOR INFRACTION AND CORRECTIVE MEASURES

Key: OR – ORAL REPRIMAND S 2 – SUSPENSION (TWO DAYS) S 10 – SUSPENSION (TEN DAYS)

IX. CODE OF CONDUCT (RULES AND REGULATIONS):

 No employee is allowed to use

 The company reserves the right to

 If the company has a reasonable

 Failure to submit to submit to a

 No employee is allowed to use the

 Personal calls, except for

 Should an employee be found to

 Any injury caused to the employee

when the same can be obtained at a

 Vandalism of any kind.

 Unauthorized posting of reading

 Tampering of receipts used in

 Deliberately making false reports or

 Contacting loan of money or other

 Accepting bribes or other personal

 Divulging information, without proper

36. Clocking irregularities, which shall E S-10 DM

 Manipulating the time appearing in

38. Gross discourtesy towards E S-10 DM

40. Assisting or allowing unauthorized D S-5 S-10 DM

 Kinship shall be by consanguinity up

 Including that of by legal fiction of

 Except those already employed prior

 Improper or unauthorized solicitation

 Any salary or wage deducted shall

 The person/persons responsible for

notices, announcements or similar

 Blatant disrespect to management

TABLE IV: OFFENSES CONCERNING NEGLIGENCE AND NEGLECT OF DUTY

 Most employees are required to

 All employees below the managerial

 Tampering and/or punching of

Except in cases of accident,

The following shall be considered

 Abandonment of job for fifteen

 Failure to report for work at

 Malingering or not reporting

 Failure to report for work after

 Unauthorized under time. A OR WR S-2 S-5 S-10 DM

3 Days Absent = S-3Days

6 to 11 Days Absent = S-30 Days

attendance or neglect of duty Days Days

Rules and the law.

 Note: time lost will be unpaid in

 Tardiness is applicable to all

 The employee (not managerial and

 Any salary deductions made by the

 The person/persons responsible for

 Lates or tardiness shall not offset

 Tardiness may be excused only in

NOTE: Penalties for Lates: