Page | 50 b) To obey all lawful and reasonable orders. c) To exercise reasonable care and prudence. d) To provide faithful and honest service where an Executive is expected. I. Not to make any secret profits II. To work solely for the employer during working hours. III. To safeguard the company’s interest and reputed. IV. Not to misuse company’s confidential information. V. To avoid any conflict of interest. 3. Role of a Superior The role of a superior is to ensure that all his subordinates observe the codes of ethic, policies and procedures, work instructions and other rules and regulations through preventive measures that inculcate positive work culture. At the same time the superiors are expected to enforce discipline among the subordinate at the work place adopting the principle that misconduct must be dealt with in speedy, fair and firm manner. 4. Role of a Subordinates The subordinates are expected to comply to the codes of ethic, policies and procedures, work instructions and other rules and regulations and refrain from any action that may have negative consequences. 53. Misconduct 1. General Definition Misconduct can be defined as a mode of behavior, conduct or action of Executive which is inconsistent with the expressed or implied obligation to the company, or any act of commission or omission by an Executive which contravene or conflict with his obligation towards the company. This can be categorized as follows: a) Misconduct relating to discipline. b) Misconduct relation to his work. c) Misconduct relating to morality. 2. Category of Misconduct Depending on the nature of severity of the misconduct, it can be categorized under two heading: a) Major Misconduct. b) Minor Misconduct.
Page | 51 Some examples of misconduct are listed below and the list are not exhaustive. 2. Major Misconduct. a) Any willful insubordination or disobedient of a reasonable and a lawful order. b) Fighting or assault within the company’s premises or outside the company’s premises on matters connected/related to work. c) Willful or deliberate damage to company’s property. d) Habitual absence without prior leave or reasonable excuse. e) Gross negligence of duty. f) Gross violation of duty or Standard Operating Procedures. g) Possession, consumption, addiction and trafficking of narcotic within the company’s premises. h) Abuse of Overtime/travel claims. i) Willful slowing down or inciting other Executives to do so. j) Gambling or playing cards within the company’s premises, whether for money or not. k) Found drunk or under the influence of liquor while on duty. l) Forging or defacing medical certificates or other official documents to defraud the company. m) Clocking other Executives attendance time card. n) Immoral, indecent or disgraceful act or conduct within the company’s premises. o) Conflict of interest. p) Concealment of evidence or proof of a major misconduct. q) Bribery and corruption. r) Disclosing the company’s secrets or information of confidential matters concerning the affairs of the company without prior sanction or lawful authority. s) Abuse of power or authority. t) Act or Acts subversive of discipline and good behavior. u) Incompetence and inefficiency despite being warned. Repetition of minor misconduct despite being warned. 3. Minor Misconduct. a) Coming to work late and leaving before the actual finishing time. b) Not wearing uniform, safety shoes, caps, safety or protective clothing or equipment provided by the company while at work. c) Displaying notices or posters without the prior authorization from the company. d) Unauthorized or misuse of company’s vehicle, equipment or appliances. e) Holding unauthorized meetings within company’s premises. f) Absenting without prior permission and without valid reasons for more than two (2) consecutive working days.
Page | 52 g) Loitering or malingering during working hours. h) Playing games card in or out of the company’s premises while on duty. i) Incompetence or inefficiency. j) Unsatisfactory work performance. k) Not taking proper care of tools/equipment which were entrusted to you. l) Failure to observe health and safety Rules and Regulations. m) Concealment of evidence or proof of a minor misconduct. 54. Disciplinary Action 1. Rights of the Company. The Company shall have full rights to take any form of disciplinary action against any Executive who contravenes the General Code of Conduct and Discipline. The severity of disciplinary action shall commensurate with the act of indiscipline or misconduct and may range from warning letter to dismissal upon due inquiry. Disciplinary process may be initiated as a result of discovery of a misconduct which may be in the following manner: a) Irregularities identified during routine audit. b) A report submitted by any party in the Company. c) A report submitted by any external party. d) A discovery of an irregularity by a superior. 2. Preliminary Investigation Upon receipt of a report or upon discovery of a misconduct, the company shall conduct a preliminary investigation to ascertain the validity of the report as well as to determine the seriousness of the allegation. For the purpose of this preliminary investigation, the management shall have the right to assign any party to gather and collate information and evidence. 3. Suspension for the Purpose of Inquiry An Executive may be suspended from work for the purpose of disciplinary proceeding, depending on the severity of the allegation. This suspension is solely for the purpose the investigation and may be made effective at any time during the investigation. An Executive who is undergoing the suspension for this purpose shall be required to stay away from work. During suspension, the Executive will continue to receive full pay. During suspension, the management will have full right to withhold all other benefits including any allowances to which the Executive is eligible. Any salary and benefits withheld shall be restored in the event the Executive is absolved of all the allegations.
Page | 53 4. Due Inquiry Due Inquiry shall be done before any disciplinary action is instituted on any Executive. The purpose of conducting a Due Inquiry is to provide an opportunity for the Executive to answer to the allegation made against him. This may be done in a following manner: a) Show Cause Inquiry This an inquiry where an Executive is issued with a letter to show cause why disciplinary action should not be taken against him. The Executive shall be given a grace period to submit a written explanation to defend himself. The alleged Executive is expected to provide the written explanation within the grace period given. The management shall decide based on the written explanation given or in the event that no reply is received on expiry of the grace period. b) Domestic Inquiry. A discovery of an irregularity by a superior. This a Domestic Inquiry where a panel is appointed to hear the allegations made against an Executive. It may also be held as a follow through of the show cause inquiry. It may also be held without first going through a show cause inquiry, depending on the seriousness and complexity of a specific disciplinary case. In the event that a Domestic Inquiry becomes necessary, the alleged Executive shall be notified of the date, time and venue of such inquiry. The management shall take every effort to ensure that any due inquiry held is conducted in a fair and speedy manner. The decision of the inquiry shall be informed to the Executive within one (1) week upon completion of the inquiry. 5. Penalty After Due Inquiry Depending on the type, seriousness and impact of a misconduct, the company may after Due Inquiry impose any one of the following penalties to the Executive concerned: a) A written warning. b) Suspension from work without salary for a period not exceeding fourteen (14) days. c) Deferment of increment when declared for a period not exceeding one (1) year. d) Barring of increment when declared for a period not exceeding three (3) years.
Page | 54 e) Demotion in career level including salary to commensurate with the career level. f) Dismissal from service without notice (summary dismissal). g) Any other punishment other than the above as deemed fit. 6. Right of Appeal An Executive on whom a penalty has been imposed as provided in clause 5 (a) to (g) shall have the right of appeal to the appropriate authority within thirty (30) days from the date of notification of the penalty served on him. The appeal must be in writing and submitted to the Appeal Authority through General Manager Human Resource & Administration. 7. The Appeal authority shall be as follows: Depending on the type, seriousness and impact of a misconduct, the company may after Due Inquiry impose any one of the following penalties to the Executive concerned: a) For appeal on disciplinary cases involving Career Level E8 and above – Chairman of Alam Flora Sdn Bhd. b) For appeal on disciplinary cases involving Career Level E7 and below – CEO Alam Flora Sdn Bhd. 8. Any other form of appeal not in accordance with clause 7 above shall not be considered.