GENERAL POLICY STATEMENT

SVI Information Services Corp. (SVI-ISC) considers the maintenance of discipline as a

matter of fundamental importance. The Company seeks to ensure professionalism, a
value of which manifests itself in the behaviors and work performances of its employees,
at all times.

Rules and regulations are, therefore, promulgated for the guidance and compliance of all
employees. These are enforced to impress on each employee the fundamental standards
of behavior and performance that are essential in the context of the Company’s best
interest, as well as its employees.

Should infractions on any provisions of this Code be committed, penalties are imposed to
instill in an employee the need to act in a prescribed manner. But should an employee
continue to fail to imbue the desired behavior as reflected in his repeated violations or
should his violations seriously endanger the interest of the Company and its employees,
the Company will take the necessary steps to terminate the employee’s services. The
disciplinary process, nonetheless, ensures the objectivity and fairness in dealing with all
possible violations.

Finally, while maintenance of discipline among employees is primarily Management’s

responsibility, each employee is enjoined to cooperate in this regard. Everyone must
imbibe the behaviors that are deemed desirable and must help in any way he can to
ensure that his co-employees manifest the same behaviors.

DEFINITION OF TERMS:
COMPANY – SVI Information Services Corp. (SVI-ISC)

EMPLOYEES – all persons, including temporary and probationary employees,

under the employ and in the active payroll of SVI-ISC.

EMERGENCY CASES – unforeseen circumstances such as fire, typhoon,

earthquake, sickness, giving birth, death, or any accident involving either the employee
personally or immediate members of his family which shall include the lawful spouse, the
children, and the parents.

COMPANY PREMISES – all landholdings, buildings, and properties owned or

rented by SVI. It also covers the working area occupied by employees assigned on the
field, including company vehicles.

PORNOGRAPHIC LITERATURE – any obscene or licentious film, drawing,

cut-out, writing, picture and the like.

NARCOTICS – drugs that produce insensibility and melancholy dullness of mind

with delusions and may be habit forming. Included in this definition are opium, cocaine,
alpha and beta eucaine, Indian hemp, marijuana, hashish, shabu, their derivatives and all
preparations made from them or any of them, and such other drugs, whether natural or
synthetic, having physiological actions as a narcotic drug.

DAY – working day

SECTION 1 : PERFORMANCE ON DUTY

a) Every employee should diligently perform his duties and any other work
assigned to him and should strive to meet the work standards set by the
Company.

b) The following shall constitute neglect of duty:

1. Acts of negligence or carelessness, or non-compliance with standard

operating procedures, resulting in non-compliance or inefficient
performance of duties or otherwise could cause personal injury or
prejudice to the interest of the Company. Such acts include loss of
Company records and sleeping while on duty
Penalty for violation: Reprimand to dismissal, depending on the gravity
of the offense.

2. While on duty, leaving work assignment or work area without

permission from his supervisor (Establish practices such as coffee
breaks, lunch periods, etc. are excluded from this rule.)
Penalties for violation:
a. First offense – Reprimand
b. Second offense – 3-day suspension
c. Third offense – 5-day suspension
d. Fourth offense – 10-day suspension

3. Frequently attending to personal matters during work time, including

loitering, entertaining personal visitors or making personal telephone
calls (except for emergencies).
Penalties for violation:
a. First offense – Reprimand
b. Second offense – 3-day suspension
c. Third offense – 5-day suspension
d. Fourth offense – 10-day suspension

4. Failure or willful refusal without any valid reason to comply with

official orders and/or perform regular assigned duties or specific
instructions related to his duty.
Penalty for violation: Suspension to dismissal, depending on the gravity
of the offense.
5. Knowingly furnishing false, misleading or grossly inaccurate data or
information to persons duly authorized to receive the same, arising out
of the employee’s neglect or failure to discharge his duty to make
proper research, investigation, or verification, which act causes
prejudice to the Company.
Penalty for violation: Reprimand to dismissal, depending on the gravity
of the offense.

6. Failure to wear prescribed work attire when on duty.

Penalties for violation:
a. First offense – Reprimand
b. Second offense – 3-day suspension
c. Third offense – 5-day suspension
d. Fourth Offense – 10-day suspension

7. Failure to inform HR within 30 days of any change in civil status,

address, and dependents.
Penalties for violation:
a. First offense – Reprimand
b. Second offense – 1-day suspension
c. Third offense – 3-day suspension
d. Fourth offense – 5-day suspension

8. Willful holding back, slowing down, hindering or limiting work

output.
Penalty for violation: 3-day suspension to dismissal, depending on the
gravity of the offense.

9. Failure to turn over to the Company immediately upon receipt, any

money given by a client or his representative.
Penalty for violation: Reprimand to dismissal, depending on gravity of
the offense.

10. Failure of a managerial employee to disseminate to his subordinates

Company policies, work rules and procedures, and the like.
Penalty for violation:
a. First offense – Reprimand
b. Second offense – 5-day suspension
c. Third offense – 15-day suspension
d. Fourth offense – Dismissal

11. Failure of a supervisor or managerial employee who knows any

violation of this Code and of other Company work rules to take any
steps to prevent and/or to report the same.
 Penalty for violation: The supervisor/manager shall be held liable and
shall be meted at least the same penalty to be imposed on the offender.

SECTION 2 : CONDUCT AND BEHAVIOR

a) Every employee should conduct himself in a manner consistent with decorum

and good discipline.

b) The following acts shall constitute violations of the rule on conduct and
behavior:

1. Committing acts of violence that could result in physical harm to other

employees or cause prejudice to the interest of the Company.
Penalty for violation: Suspension to dismissal, depending on the gravity
of the offense.

2. Intriguing against another employee which tends to cast dishonor,

discredit, or contempt upon the latter.
Penalty for violation: Reprimand to dismissal, depending on the gravity
of the offense.

3. Immoral or discourteous conduct or language including exhibition or

distribution of pornographic literature within Company premises.
Penalty for violation: Reprimand to dismissal, depending on the gravity
of the offense.

4. Theft of company property or property belonging to another person,

committed during working time or within company premises.
Penalty for violation: Dismissal

5. Gambling, conducting lotteries, or other similar acts during working

time or on Company premises.
Penalty for violation:
a. First Offense – 5-day suspension
b. Second Offense – 15-day suspension
c. Third Offense – Dismissal

6. Soliciting money or material objects for any purpose not sanctioned by

the Company, or selling anything during working time or on Company
premises, without prior written approval of the Management.
Penalties for violation:
a. First offense – 5-day suspension
b. Second offense – 10-day suspension
c. Third offense – 15-day suspension
d. Fourth offense – Dismissal
7. Forming, or operating or attempting to form or operate, within the
Company, any credit union, loan association, or any other similar
organization.
Penalty for violatin: The employee or employees will be made to desist
or, if an association, to disband; otherwise, he/they will be dismissed.

8. Entering Company premises, performing work while under the

influence of liquor or narcotics, drinking alcoholic beverages during
working time or on the Company premises (except when prescribed by
a physician). Drinking of alcoholic beverages during Company
authorized occasions is exempted.
Penalty for violation: Suspension to dismissal, depending on the gravity
of the offense.

9. Testing positive in drug tests conducted by Company (for illegal

drugs).
Penalty for violation:
Suspension – length of which is to be prescribed by company physician.

10. Allowing oneself to be relieved by another known to be under the

influence of liquor or narcotic drug.
Penalty for violation:
a. First offense – 5-day suspension
b. Second offense – 15-day suspension
c. Third offense – 15-day suspension
d. Fourth offense – Dismissal

11. For supervisors, borrowing money from subordinates or allowing them

to guarantee their loans.
Penalties for violation:
a. First offense – Reprimand
b. Second offense – 3-day suspension
c. Third offense – 5-day suspension
d. Fourth offense – 10-day suspension

12. Refusal to pay, or failure to turn over, to the Company any monetary
accountability to the same, upon demand.
Penalty for violation: 3-day suspension to dismissal, depending on the
gravity of the offense.
SECTION 3 : HONESTY

a) Every employee should carry out his duties with trustworthiness and
incorruptibility, holding himself true to the trust and responsibility given to
him by virtue of his position in the company.

b) The following acts shall constitute violation of the rule on honesty:

1. Misappropriating Company funds.

Penalty for violation: Dismissal

2. Knowingly giving untruthful statements, concealing information that

could prejudice the Company’s interest.
Penalty for violation: Reprimand to dismissal, depending on the gravity
of the offense.

3. Falsely representing oneself to perform any act pertaining to any

person in the Company. Knowingly giving false or misleading
information in applying for employment, or giving false or misleading
information to seek or to quality for any preference or benefit from
company.
Penalty for violation: Suspension to dismissal, depending on the gravity
of the offense.

4. Falsifying time cards or any other timekeeping records or drawing

salary or allowance by virtue of falsified time cards, vouchers,
receipts, or the like.
Penalty for violation: Suspension to dismissal, depending on the gravity
of the offense.

5. Soliciting or receiving, gifts, shares percentage, favors or benefits,

from any person, personally or through the mediation of another to
perform an act prejudicial to the Company or as a condition for the
performance of one’s duty.
Penalty for violation: Dismissal

6. Knowingly issuing a check against insufficient funds and cashing it

with any of the cashiers, tellers, or any employee who has custody of
Company funds.
Penalty ofr violation: Dismissal

7. Any form of cheating committed during any training conducted or

sponsored by the Company.
Penalty for violation: Suspension to dismissal, depending on the gravity
of the offense.
SECTION 4 : ATTENDANCE

a) Every employee should perform his duties in the Company regularly and
punctually. He should avoid being absent or tardy in reporting for work.

b) Every employee should ask for permission from his immediate supervisor
before taking an unscheduled vacation leave. Except emergency cases, the
permission should be secured at least two days before the intended date of the
vacation.

c) An employee who is absent from work because of compelling reason or

reasons other than emergency cases as herein defined should notify his
supervisor of his absence and of the reason or reasons thereof on the first hour
from the first date of absence, except when this is not possible, in which case
he should at the earliest possible time, notify his supervisor of his
whereabouts and of the reason or reasons for his absence as well as his failure
to comply with the first-hour-notice requirement as above mentioned.

d) Unauthorized and/or unexcused absence from work for less than two days
shall be considered a simple case of absence.

e) Unauthorized and/or unexcused absence from work for two to five

consecutive days shall be considered excessive.

f) Unauthorized and/or unexcused absence from work exceeding five

consecutive working days shall constitute abandonment of work.

g) The employee’s division head shall decide, whether to excuse an unauthorized

absence from work. Excused absences shall be charged against the
employee’s vacation leave, if any, otherwise they shall be considered absences
with permission but without official pay.

h) Every employee should follow the official time set for his shift in reporting
for, and leaving from work. An employee who arrives at his workstation on a
regular working day later than the official time for his shift shall be
considered tardy for that day. Five minutes at most is allowed as a grace
period for latecomers. Excuses shall not be entertained. An accumulated
tardiness of 120 minutes or more within a month shall constitute excessive
tardiness and shall be considered a single and separate violation before the end
of the month, a new limit for the remaining days of the month shall be
computed as follows:

Number of remaining days in the Month

-------------------------------------------------- x 120 minutes
Number of calendar days in the Month
Succeeding violations of the rule on excessive tardiness during the remainder of the
month shall likewise be considered single and separate violations.

Schedule of penalties:
a) Simple case of absence
Penalties for violation:
a. First offense – Reprimand
b. Second offense – 5-day suspension
c. Third offense – 10-day suspension
d. Fourth offense – 15-day suspension

b) Excessive absences
Penalties for violation:
a. First offense – 5-day suspension
b. Second offense – 10-day suspension
c. Third offense – Dismissal

c) Abandonment of work
Penalty for violation: Dismissal

d) Excessive tardiness
Penalty for violation:
a. First offense – Reprimand
b. Second offense – Reprimand
c. Third offense – Reprimand
d. Fourth offense – Reprimand
e. Fifth offense – 3-day suspension
f. Sixth offense – 5-day suspension
g. Seventh offense – 10-day suspension
h. Eight offense – Dismissal

SECTION 5 : SICK LEAVE

a) Every employee should avail of a sick leave only for an actual illness and, in
doing so, should observe Company provisions on sick leave.

The following acts shall constitute violation of the rule on sick leave:

1. Going on sick leave under following causes:

a. Without having first personally secured authorization from a company
doctor or Company retained physician or failing to inform the supervisor
about the doctor’s advice.
b. For voluntary house confinement, failing to notify his supervisor of his
absence due to illness within 24 hours from the first date of such leave.
 c. Where the circumstances involving the time of onset of the illness and
nature thereof directly causes physical inability of the employee to comply
with the above guidelines, failing to submit through his relative or any
representative the required medical certification from his private physician
either to his supervisor or to the SVIC clinic or Personnel within 48 hours
from the first date of such leave.
Penalties for violation:
a. First offense – Reprimand
b. Second offense – 3-day suspension
c. Third offense – 5-suspension
d. Fourth offense – 15-day suspension

2. Without prior authorization or justifiable reason, extending the original period of

sick leave previously authorized.
Penalties for violation: The same penalties provided for excessive
absences or abandonment of work, as the case may be.

3. Without justifiable reason, refusal or failure to report while on sick leave to the
clinic or HR as instructed by a Company physician.
Penalties for violation:
a. First offense – 1-day suspension
b. Second offense – 3-day suspension
c. Third offense – 5-day suspension
d. Fourth offense – 15-day suspension

4. Leaving house confinement while on sick leave against the expressed orders of
the Company physician.
Penalties for violations:
a. First offense – 1-day suspension
b. Second offense – 3-day suspension
c. Third offense – 5-day suspension
d. Fourth offense – 15-day suspension

SECTION 6 : CONFIDENTIALITY OF WORK AND INFORMATION

a) Every employee should safeguard the confidentiality of any and all sensitive
information he may have access to in the course of his work in the Company.
Confidential information shall include client information, salary data, marketing
strategies, trade secrets, unpatented inventions, designs, technical information and
specifications.
b) The following acts shall constitute violation of the rule on Confidentiality of
Work and Information.
1. Infidelity in the custody of Company documents.
Penalty for violation: Reprimand to dismissal, depending upon the
gravity of the offense.
 2. Without proper previous authority, revealing, releasing, or divulging
confidential information to individuals other than authorized persons or
accessing the same.
Penalty for violation: Suspension to dismissal, depending upon the
gravity of the offense.

SECTION 7 : CONFLICT OF INTEREST

a) Every employee should avoid where personal interest would conflict, or

appear to conflict, with the interest of the Company or any of its clients.
b) The following acts shall constitute violation of the rule on Conflict of Interest.

1. Having any participation or involvement, direct or indirect, in any transaction

involving in any person, firm, corporation, or any business enterprise with which
the Company, directly or indirectly has commercial relationship, where such
relationship, where such participation or involvement is improper or undesirable
in the interest of the Company. Engagement as a passive investor or stockholder
in another firm, constitutes conflict of interest.
Penalty for violation: Reprimand to dismissal, depending on the gravity of the
offense.

2. Engaging in outside work or professional practice, which is against the law of

public policy.
Penalty for violation: Reprimand to dismissal, depending on the gravity of the
offense.

3. Directly or indirectly engaging in the Company’s line of business and, therefore

becoming the business competitor of the Company.
Penalty for violation: Reprimand to dismissal, depending on the gravity of the
offense.

4. Engaging in any outside work or professional practice, which directly or

indirectly adversely affects the Company’s image.
Penalty for violation: Reprimand to dismissal, depending on the gravity of the
offense.

5. Engaging in any other employee involvement, inside or outside the Company

premises, which tends to undertake undue advances of his employment in the
Company.
Penalty for violation: Reprimand to dismissal, depending on the gravity of the
offense.

6. Teaching in a government recognized school or any outside institution of learning

without the authorization from the Company.
 Penalty for violation: Reprimand to dismissal, depending on the gravity of the
offense.

SECTION 8: USE OF COMPANY PROPERTY

a) Every employee should use Company property only if he has the authority to do
so and in so doing observe all Company rules pertaining to the safety and proper
use thereof.
b) The following acts shall constitute violation of the rule on use of Company
property:

1. Improper or careless handling, unauthorized work, use, repair, or lending,

tampering, destruction or defacement of Company-owned furniture, fixtures, equipment
and supplies. This includes the unauthorized use of the Company-owned computers for
recreation and any other personal use.
Penalty for violation: Reprimand to dismissal, depending on the gravity of the
offense.

2. Unauthorized work, accessing, use or lending, destruction or tampering of

computer-generated outputs, files, programs, prompts, procedures, documentation of all
processes and transactions, or other such items and properties essential to the day to day
business of the company.
Penalty for violation: Reprimand to dismissal, depending on the gravity of the offense.

SECTION 9: PHYSICAL SECURITY

a) Every employee should strictly observe rules and regulations pertaining to the
physical security of the Company and its employees. ]
b) The following acts shall constitute violation of the physical security:

1. Unexcused failure to display or present official identification card twice within a

period of 30 calendar days shall constitute a single separate violation.

In case of loss of employees I.D card, the employee shall be excuse for his failure to
display or present his I.D card on the first working day only. He should immediately
report the loss to the HR, which will issue him a new I.D card for which he shall be
charge.
Penalties for violation:
a. First offense-Reprimand
b. Second offense-1-day suspension
c. Third offense- 3-day suspension
d. Fourth offense-5-day suspension
2. Refusal to submit to reasonable inspection conducted within Company premises by
authorized Company security personnel.

Penalties for violation:

a. First offense-3-day suspension
b. Second offense-5-day suspension
c. Third offense-10-day suspension
d. Fourth offense-dismissal

3.Possession of explosive or firearms, bladed or other deadly weapons during work time
or on Company premises, unless otherwise authorized in writing by the company.

Penalties for violation: Reprimand to dismissal, depending upon the gravity of the
offense.

4.Discharging explosives of firearms during working time within the Company premises.
Penalties for violation: Dismissal

5.Entering or remaining in the Company premises after regular work hours or during rest
days or holidays without written authorization.
Penalties for violation:

a. First offense-Reprimand
b. Second offense-1-day suspension
c. Third offense-3-day suspension
e. Fourth offense-5-day suspension

SECTION 10: RESIGNATION/RETIREMENT

a) Every employee should give the Company due notice of his resignation/retirement
in order to effect proper turnover of responsibilities.
b) Failure on the part of the resigning employed to comply any of the requirements
mentioned below shall constitute violation of the rule on resignation:

1. Every resigning employee should serve advance written notice to the Company
at least 30 days before the date he intends to leave the service. 30 day period shall
start from the date such written notice is received by the employee’s immediate
supervisor.
Penalties for violation: Dismissal

2. Every resigning employee should continue to work, or render actual service,

during the period covered by the notice. Upon the discretion of his department head,
he/she may be allowed to avail himself of his unavailed vacation leave credits during
the required 30day period.

Penalties for violation: Dismissal

SECTION 11: SUCCESSIVE OR MULTIPLE VIOLATION

a) The penalties for successive violations of the same rule (other than in those cases
where a single violation of the rule warrants dismissal) is progressively more severe than
the penalty for a first violation. However the definition of “Cumulative” violations is
subject to a 12 month limitation period; any repeat violation of a rule occurring after this
period shall be considered as a first offense. The 12th month limitation period commences
on the date the penalty is sevred to the employee.

b) If at the time of the commission of the latest offense, the employee has a violation of
at least two other separate rules embraced in this code or other promulgated Company
work rules, all committed within a 12th month period, the latest offense shall be
punishable by the next higher step or degree of the penalty prescribe for any of the
offenses committed, whichever is more/most serious.

c) Where the fourth violation of the same provision or rule is punishable by a penalty less
than dismissal, the fifth and subsequent violations, if committed within a 12-month
period, shall be meted out a more drastic penalty including dismissal.

d) When a single act constitutes two or more offenses under this code, or when an
offense is necessary means for committing the other, penalty for the more/most serious
offense shall be imposed.

SECTION 12: OTHER PROVISIONS

a) An employee who influences, induces or threatens another employee to perform

an act constituting a violation of this or of the other rules promulgated by a
Company shall be subject to the same penalties imposable on who commits the
act.

b) An act, conduct or behavior prejudicial to the interest of the Company, but not
specifically included in this code shall also be penalized depending on the gravity
of the offense. This shall include violations of other rules and regulations
promulgated from time to time.

SECTION 13: APPLICATION OF PENALTIES

a) The proper penalty provided for in this Code shall be imposed by the division
head after the conduct of an investigation on the matter in coordination with HR
and subject to the approval of the division head concerned.
b) In connection to this, the division head should immediately advise HR upon
knowledge of a possible infraction committed by a subordinate. The request for
administrative investigation (RAI) form should be accomplished for this purpose.

c) The penalty imposable in a particular case may be reduced upon the

recommendation of the division head concerned, subject to the review of HR and
the approval of the President.

d) Likewise, In cases when the circumstances of the case warrant such penalty (e.g.,
when the violation results in serious injury to persons or damage to property), the
division head concerned may imposed a graver penalty than what is provided for
in this Code, subject to the review of HR and the approval of the President.

e) If the penalty provided for the offense involves dismissal, the division head, after
consultation with HR, may place the employee under preventive suspension
pending the result of the investigation.

f) All penalties, to be imposed shall be in writing. Written reprimands shall be

signed by the division head with a copy furnished by HR.

Memorandums on suspension and dismissals shall be signed by the division head

and noted by HR and the business unit head.