PHILIPPINE AIRLINES

REVISED

CODE

OF

DISCIPLINE
PHILIPPINE ARILINES, INC.

REVISED

CODE OF DISCIPLINE
 TABLE OF CONTENTS

Preamble 1

CHAPTER I GENERAL PROVISIONS 3

Section 1 Guidelines 3

Article 1 Statement of Policy 3

Article 2 Definition of Terms 3
Article 3 Summary Proceedings & Timeliness
Of Proceedings 6
Article 4 Uniformity of Penalties 6
Article 5 Impersonal Imposition of
Discipline 6
Article 6 Single Penalty 6
Article 7 Right to Hearing & Defense 7
Article 8 Responsibilities of Superiors 7
Article 9 No Waivers of Penalties 7
Article 10 Responsibility of Employee 7
Article 11 Effect of Offense on Compensation
And Career Improvements 8

Section 2 COVERAGE APPLICATION 8

Article 12 Employees Covered 8

Article 13 Separate Civil or Criminal Action 8
Article 14 Schedule of Penalties 9
Article 15 Write-off of Offenses 10
Article 16 Commutation/Reduction of Penalty 10
Article 17 Conspiracy or Concerted Action 10
Article 18 Toleration or Condemnation of
Offense 10
Article 19 Failure to Report, Superior’s
Inaction 11
Article 20 Illegal Acts 11
 Article 21 Instigation 11 Article 38 Insubordination or Willful
Article 22 Acceptance of this Code and Disobedience 20
General Norms; Penalties for
Misconduct 11 Section 4 OFFENSES AGAINST TOTAL
PERSONNEL CARE IN
CHAPTER II OFFENSE AND PENALTIES 12 VIOLATION OF TPC 4 20

Section 1 OFFENSES AGAINST CUSTOMERS Article 39 Anti-Employee Offenses:

IN VIOLATION OF TPC 1 12 Commission & Omission 20
Article 40 Influence Solicitation 21
Article 23 Anti Customer Offenses 12 Article 41 Influence Peddling 22
Article 24 Failure of Employee to Wear Article 42 Intervention in Administrative Case 22
Prescribed Uniforms and Article 43 Culpable Delay in Investigation 22
Identification Cards 13
Section 5 OFFENSES AGAINST THE GOOD
Section 2 OFFENSES AGAINST JOB NAME REPUTATIO WELL-BEING
PERFORMANCE STANDARDS IN AND SECURITY OF THE COMPANY IN
VIOLATION OF TPC 2 14 VIOILATION OF TPC 5 23

Article 25 Failure on the Job 14

Article 26 Non-Observance of Quality Article 44 Anti-Company Offenses 23
Standards 14
Article 27 Wasting Time 14 Section 6 COMMON OFFENSES AGAINST
Article 28 Inefficiency & Waste 15 CORPORATE VALUES INVOLVING
Article 29 Time Card Irregularities/ BEHAVIOR AND CONDUCT 24
Timekeeping Violations 15
Article 30 Failure to Punch Time Card 16 Article 45 Conviction 24
Article 31 Tardiness 16 Article 46 Violation of Law 25
Article 32 Absence Without Leave or Notice 17 Article 47 Drunkenness/Alcoholism 25
Article 33 Unauthorized Undertime 17 Article 48 Prohibited Drugs 25
Article 34 Sleeping During Working Hours 18 Article 49 Gambling 25
Article 35 Malingering 18 Article 50 Horseplaying; Disorderly/Immoral
Behavior 26
Section 3 OFFENSES AGAINST TEAMWORK Article 51 Sexual Harassment 26
IN VIOLATION OF TPC 3 19 Article 52 Assault; Violent Act 26
Article 53 Threats; Coercion 27
Article 37 Anti-Teamwork Offenses 19 Article 54 Improper Behavior When
 Traveling 27 Rule IV Administrative Charge 36
Article 55 Smoking in Prohibited Places 27
Section 1 – How Initiated 36
Section 7 COMMON OFFENSES AGAINST Section 2 – Form of Administrative Charge 36
CORPORATE VALUES INVOLVING
HONESTY AND INTEGRITY 28 Rule V Preventive Suspension 36

Article 56 Corruption/Extortion/Bribery 28 Section 1 – Grounds 36

Article 57 Fraud Against the Company 28 Section 2 – Salary of Respondent Pending
Article 58 Mishandling/Misuse of Company Suspension 37
Funds, Property or Records 29
Article 59 Theft, Pilferage, or Embezzlement 29 Rule VI Answer 37
Article 60 Falsification of Company Rule VII Hearing & Right to Representation
Document 29 And Assistance 37
Article 61 Unofficial Use of Company Rule VIII Report & Evaluation of Evidence 38
Property & Facilities 30 Rule IX Resolution/Decision 38
Article 62 Misuse of Company or Interline Rule X Review of Decision 39
Trip Pass/Reduced Rate and Non- Rule XI Implementation of Final Decision
Revenue/Rebated Shipment And Reporting Requirements 40
Privileges or Baggage Allowances 30
Article 63 Improper Use of Space CHAPTER 4 MISCELLANEOUS PROVISIONS 41
Accommodation 30
Article 64 Perjury/False Testimony 31 Article 68 Transitory Provision 41
Article 65 Irregularities Connected with Article 69 Separability Clause 41
Employment 31 Article 70 Amendment 41
Article 66 Disloyalty; Abetting Competitions 31 Article 71 Notes on the 1995 Code Revisions 41
Article 67 Conflict of Interests 32 Article 72 Effectivity 42

CHAPTER III DISCIPLINARY PROCEEDINGS 34 INDEX OF CONTENTS 43

Rule I Preliminary Provisions 34

Section 1 – Coverage 34
Section 2 – Disciplinary & Investigating Authority 34

Rule II Grounds for Disciplinary Action 35

Rule III Fact – Finding Investigation 35

PREAMBLE
PHILOSOPHY ON DISCIPLINE
Working in PAL requires the acceptance of the principle that the best form of
discipline is self-discipline, and that discipline is not merely a restraint on behavior
but a total conditioning of oneself for the highest level performance within one’s
capabilities.
PAL seeks to create environment in which excellence in performance is the
preoccupation of all employees and where such performance is duly recognized and
rewarded in accordance with the Company’s human resource policies and programs.
It is the goal of PAL to establish and nurture a climate that encourages, recognizes
and rewards achivement instead of merely regimenting behavior, enforcing
obedience, and punishing offenses. Depending on such policies and programs,
recognition shall include commendations, certificates of appreciation, award, and
similar symbolic manifestations, while reward shall include performance bonuses,
merit increases, and career advancement.
Everyone working in PAL is expected to assist in and contribute to the achievement
of the Company’s goals of customer satisfaction, service excellence and
profitability. Each one is also expected to observe the highest standards of
performance, honesty and integrity, professionalism courtesy, punctuality,
attendance, teamwork and cooperation, respect for other people, and all the other
traits expected of a member of the PAL family.
It is not enough that a PAL employee merely avoid doing “wrong”. He should,
consciously and as a personal commitment, always strive to do “right”, i.e., do the
right things the right way. PAL will only settle for a Commitment to Excellence,
not merely good behavior. Our people should do the right things because they want
to, rather than avoid the wrong things because they fear the consequences. The
drive to achieve and the pursuit of reward are more productive forms of behavior
than mere abidance to rules or the mere avoidance of penalties. But the rules must
be respected and followed nonetheless, better voluntarily (self-discipline), but by
force of authority if necessary (enforced discipline).
But while the enforcement of discipline cannot be a principal preoccupation of the
Company, it remains a necessary condition for orderly operations. Moreover, in an
industry that is characterized by stiff and swiftly increasing competition, employee
discipline is an essential ingredient of survival and growth. Self-discipline must be
the rule, and enforced discipline the exception. The Company prefers people who
can discipline themselves without the compulsion of law or the fear of punishment.
Once PAL in its sole discretion, decides to employ an individual, a mutual
commitment is struck between the two. The individual commits not only to obey
the rules but to comply at all times with the Company’s standard of performance to
the very best of his abilities. And the Company commits to establish conditions in
which each employee is motivated to perform according to such standards and
appropriately recognized, compensated, and rewarded.
Everyone working for PAL must realize that PAL’S main preoccupation is with
customer satisfaction, service excellence, efficiency and professionalism on the job,
and profit, not with discipline. Those in PAL who continuously invite disciplinary
action and thereby divert the time and effort of the Company away from its business
mission are a burden on and a liability to the Company, as well as a threat to the
Company’s well-being and, ultimately, to its very existence. PAL would rather
reward performers than punish offenders: the latter is an unpleasant and
unproductive activity, and offenders who repeatedly provoke it do not belong to the
Company. PAL cannot afford to waste time correcting those who are unable or
unwilling to correct themselves. Those persons who consistently fail to live up to
the Company’s standards of performance, comportment and behavior will be
required to seek employment elsewhere.
In any event, whenever an offense is committed, the offender must be immediately
warned and/or penalized. The Company must be and is prepared to deal with
violations of its rules and expected codes of behavior. Enforced discipline ensures
that these violations remain marginal and do not, like a malignant cancer, grow and
become a general pattern of behavior, leading to a breakdown of order and to the
destruction of the very organization itself.
In sum, maintenance of discipline in PAL shall be at once enlightened yet firm,
progressive yet determined. It shall be guided by the principle, policies, and rules
contained in this Code, subject, however, to specific provisions of legislation, were
applicable.
 CHAPTER I (b) “TPC 1”, “TPC 2”, TPC 3”, TPC 4”, AND “TPC 5”,
collectively, refer to the Five Basic Corporate Values upheld by PAL, alternatively
GENERAL PROVISIONS referred to within the Company as “The Five TPC’S.

SECTION I “TPC 1” Stands for “Total Passenger Care” and is concerned with
GUIDELINES marketing effectiveness. It aims at customer satisfaction through the quality and
price of PAL’S products and services, from which the Company aims to earn the
The following general guidelines shall govern the administration of discipline: highest revenue possible. It also aims to develop a strong and dynamic competitive
drive within the Company and its personnel.
ARTICLE 1 STATEMENT OF POLICY
“TPC 2” Stands for “Time-management, Productivity, and Cost-
It is the policy of the Company: effectiveness” and is concerned with operating efficiency and profitability. It aims
at the maximum productivity of the Company’s resources (human, physical,
(a) To encourage and support employees in the pursuit of excellence in financial, information and systems) the control of costs, and their limitation to the
individual and organization performance, and to recognize and reward the lowest levels possible in order to produce profit out of revenues. It is also concerned
achievement of such excellence; with the conservation and protection of the company’s assets: personnel,
equipment, finances, documents, and information.
(b) To ensure or enforce compliance at all times with the Company’s
standards of job performance and personal behavior. “TPC 3” Stands for “Teamwork, Participation, and Communication” and
is concerned with organizational effectiveness through coordination. It aims at
(c) To penalize or punish wrongdoing, violation or rules, or non-compliance getting the Company’s personnel and all organizational units within PAL to work
with the Company’s standards of job performance and personal behavior. together as a team to coordinate and to meet the Company’s goals and objectives.

The Company’s primary concern, as articulated in its corporate philosophy, is
customer satisfaction for profit, and all aspects of its operations must be directed
towards that goal. Discipline is a necessary condition for achieving that goal and for
the effective and efficient performance of the organization. The administration of
cases must respect the dignity of the individual whose offense is being investigated
and penealized.
“TPC 4” Stands for “Total Personal Care” and is concerned with personal
well-being and development. It aims at a total range of human-resource policies and
programs that seek to provide the Company with the right people and to keep them
satisfied and highly motivated by means of equitable and competitive compensation,
working conditions, training and development, career opportunities, and retirement
policies and programs, in keeping with their dignity as individuals.

ARTILCLE 2 DEFINITION OF TERMS “TPC 5” Stands for “Total Personal Commitment” and is concerned with
personnel commitment and dedication. It aims at instilling in the Company’s
When used in this CODE, the following words shall, unless the context otherwise employees the strongest sense of loyalty and dedication to the Company and to its
indicates, have the following respective meanings: interests.

(a) “Excellence”, “Customer Satisfaction”, “Quality”, These Five Basic Corporate Values are explained in various documents issued and
“Productivity” and “Personal well-being “ (alternatively referred to as “Employee circulated within the Company, including the management manual entitled, “Our
Satisfaction”) are defined in the PAL employees’ “ACE Handbook” entitled “A Corporate Philosophy: A Commitment to excellence: PAL’S Products, Operations,
Commitment to Excellence: PAL’S products, operations, and beliefs (1985 edition) and Beliefs”. ALL PAL OFFICIALS ARE EXPECTED AND REQUIRED TO BE
issued by the Company. AQUAINTED WITH THE SAID MANAGEMENT MANUAL AND ALL PAL
EMPLOYEES ARE EXPECTED AND REQUIRED TO BE ACQUAINTED INCREASED OR LESSENED. SUCH CIRCUMSTANCES SHALL INCLUDE
WITH THE HANDBOOK. LONG YEARS OF SERVICE.

(c) “Superior” shall INCLUDE OFFICERS OF THE COMPANY,
MANAGERIAL OR SUPERVISORY EMPLOYEES AND THOSE who in relation
to another employee, is higher in station, rank, degree, or grade, and exercise
authority over another employee, is higher in station, rank, degree, or grade, and
exercise authority over another employee.
(j) “Suspension” shall mean STOPAGE FROM WORK
WTIHOUT PAY. Availment of benefits shall likewise be suspended during the
period of suspension. The time during which the employee has been placed under
preventive suspension shall be deducted from the period of suspension unless
contrary is provided.

(d) “Subordinate” shall mean one who, in relation to another (k) “MINOR OFFENSES” INCLUDE THOSE OFFENSES
employee, is lower in station, rank, degree, or grade, and is subject to the authority WHERE THE PENALTY SPECIFIED IN THE CODE IS WARNING, WRITTEN
of that other employee; REPRIMAND, OR SUSPENSION FROM ONE (1) TO THREE (3) DAYS.

(e) “Employee” shall mean a person hired by the Company in any (l) “HABITUAL” MEANS DOING THE SAME ACT MORE
capacity and shall include MANAGERIAL, SUPERVISORY EMPLOYEES, THAN TWO TIMES.
RANK-AND-FILE WORKERS AND SUCH OTHERS AS RECOGNIZED BY
LAW; ARTICLE 3 SUMMARY PROCEEDINGS AND TIMELINESS OF
PROCEEDINGS
(f) “Gravity” of an offense refers to the seriousness of the nature of
the offense or to the seriousness of the consequences of an offense; Administrative investigations and other proceedings shall be expeditiously
conducted and shall be summary in nature. They shall not be governed by the strict
(g) “Mitigating circumstances” shall mean those circumstances by technical rules of procedure or by the rules on evidence as applied in judicial
virtue of which the penalty incurred by a person who commits as offense is lessened proceedings. However, the finding of administrative investigations shall be based
or made less severe. Such circumstances shall include an employee’s past good on such relevant evidence as a reasonable mind might accept as adequate to support
performance within the Company, the lack of serious offenses in his record of a conclusion.
employment, the relative infrequency of minor offenses, and, in general, any
circumstance which in the judgment of management justifies the imposition of a ARTICLE 4 UNIFORMITY OF PENALTIES
penalty less severe than that provided.
Discipline shall be imposed consistently. It shall be applied uniformly to offenders
(h) “Aggravating circumstances” shall mean those circumstances by similarly situated regardless of rank of position within the Company. The same
virtue of which the penalty incurred by a person who commits an offense is lessened sanctions shall be applied on any offender for offenses committed under similar
or made less severe. Such circumstances shall include an employee’s past record of facts and circumstances. Like penalties shall be imposed for like offenses.
offenses, the frequency of his offenses (recidivism/habit delinquency), adverse
publicity to the Company caused by the offense, TAKING ADVANTAGE OF ARTICLE 5 IMPERSONAL IMPOSITION OF DISCIPLINE
RANK, POSITION OR RESPONSIBILITY IN THE COMMISSION OF THE
OFFENSE, and, in general, any circumstance which in the judgment of management The imposition of disciplinary action and of penalties shall be impersonal.
justifies the imposition of a penalty more severe than that provided. Disciplinary actions and penalties are directed at the offender’s punishable acts or
omissions, not at his person or personality. As a rule, the offenses alone, together
(i) “ALTERNATIVE CIRCUMSTANCES “SHALL MEAN with mitigating and or aggravating circumstances, shall e the measure of the penalty
THOSE CIRCUMSTANCES BY VIRTUE OF WHICH THE PENALTY to be imposed.
INCURRED BY A PERSON WHO COMMITS AN OFFENSE MAY EITHER BE
ARTICLE 6 SINGLE PENALTY
Only one penalty shall be imposed for each offense. Moreover, if an administrative
charge, proceeding from one incident or a single set of facts of circumstances,
results in a finding that two or more offenses defined in this Code have been
committed, the corresponding penalties for each offense shall be cumulated and one
penalty finally imposed that shall measure the gravity of all the offenses put
together.
ARTICLE 7 RIGHT TO HEARING AND DEFENSE
Any employee charged with an offense shall be afforded ample opportunity to be
heard and, if he so desires, to defend himself with the assistance of his representative
but he shall not be allowed to unduly delay the administrative proceedings and the
final resolution of the case, AS PROVIDED FOR IN CHAPTER OF THIS CODE.
ARTICLE 8 RESOPNSIBILITY OF SUPERIORS
Every employee shall be provided with a copy of this Code and shall e duly
informed of any amendments or supplements thereto. It is the duty and
responsibility of every employee to make himself familiar with all provisions of this
Code, including amendments and supplements thereto. Ignorance of or
unfamiliarity with the provisions of this Code shall not excuse any violations
thereof.
ARTICLE 11 EFFECT OF OFFENSES ON CMOPENSATION AND
CAREER IMPROVEMENTS
An employee’s record of offenses shall diminish or remove, as the circumstances
may warrant, an employee’s eligibility for a merit increase, promotion, or similar
improvements in his job situation.
The greater the number of his offenses, the greater their gravity, or the more recent
the last offenses, the lower or closer to zero his eligibility for such benefits shall be.

Every SUPERIOR shall ensure the maintenance of discipline within his area of
responsibility and the observance by the personnel subordinate to him of the highest SECTION 2
standard of competence, professionalism, courtesy, punctuality, attendance, effective COVERAGE AND APPLICATION
and efficient performance of jobs and assignments, honesty, integrity, probity,
teamwork and cooperation, and al the other behavioral traits expected of a member
of the PAL family. He shall see to it that all his subordinates are aware of and
comply with all the provisions of this Code and all other policies, rules, regulations, ARTICLE 12 EMPLOYEES COVERED
and guidelines promulgated by the Company. Each superior shall e strictly
accountable for the proper discipline and job performance of all subordinates under THE PROVISION OF THIS CODE SHALL APPLY TO AL EMPLOYEES OF
him, FAILURE OF WHICH HE SHALL BE HELD RESOPNSIBLE AS THE COMPANY AS HEREIN DEFINED.
PROVIDED ELSEWHERE IN THIS CODE. Correspondingly, each superior shall
be given sufficient authority and power to effectively discharge the foregoing EVERY EMPLOYEE IS BOUND TO COMPLY WITH ALL
responsibilities. APPLICABLE RULES, REGULATION POLICIES, PROCEDURES AND
STANDARDS AS ISSUED/PROMULGATED BY THE COMPANY THROUGH
ARTICLE 9 NO WAIVERS OF PENALTIES ITS DULY AUTHORIZED OFFICIALS.

If an offense is committed, disciplinary action, including the imposition of penalties IN CASE OF CONFLICT BETWEEN THIS CODE AND
when warranted, shall neither be waived, cancelled, nor delayed for any reason, SPECIAL/DEPARTMENTAL RULES, THE MORE SEVERE
whether for operational exigencies or otherwise. PROVISOINS/PENALTIES SHALL APPLY.

ARTICLE 10 RESPONSIBILITY OF EMPLOYEE TO ENSURE CONSISTENCY, PRIOR TO THE ISSUANCE OF

DEPARTMENTAL/SUPPLETORY RULES AND REGULATIONS, THESE
SHALL BE REVIEWED AND CLEARED BY THE LEGAL AND HUMAN IMMEDAITE MEMBER OF HIS FAMILY OR HIS DULY AUTHORIZED
RESOURCES DEPARTMENTS. REPRESENTATIVE; AND

ARTICLE 13 SEPARATE CIVIL OR CRIMINAL ACTION (E) OTHER CAUSES ANALOGOUS TO THE FOREGOING.

The imposition of any of the penalties herein prescribed shall be without prejudice (NOTE: GROSS NEGLIGENCE IS ANALOGOUS TO GROSS AND
to any civil or criminal action that the Company may decide to take against the HABITUAL NEGLECT BY THE EMPLOYEE OF HIS DUTIES).
offender.
TERMINATION OF EMPLOYMENT SHALL BE GAUGED
ARTICLE 14 SCHEDULE OF PENALTIES ACCORDING TO THESE JUST CAUSES.

THE FOLLOWING SCHEUDLE OR RANGES SHALL BE FOLLOWED IN THE THE PRESENCE OF AGGRAVATING CIRCUMSTANCES SHALL
IMPOSITION OF PENALTIES UNDER THIS CODE, DEPENDING UPON THE INCREASE THE SEVERITY OF A PENALTY AND THE PRESENCE OF
SERIOUSNESS OR GRAVITY OF OFFENSE: MITIGATING CIRCUMSTANCES SHALL REDUCE IT. AS MUCH AS
POSSIBLE THE DURATION OF A PENALTY SHOULD JIBE WITH THE
I - WRITTEN WARNING COMPANY PAYROLL PERIOD.
II - WRITTEN REPRIMAND
III - SUSPENSION FROM ONE (1) TO THREE (3) DAYS ARTICLE 15 WRITE-OFF OF OFFENSES
IV - SUSPENSION FROM FOUR (4) TO SEVEN (7) DAYS
V - SUSPENSION FROM ONE (1) WEEK TO ONE (1) MONTH AN OFFENSE INVOLVING TIMEKEEPING VIOLATIONS COMMITTED BY
VI - SUSPENSION FROM ONE (1) TO SIX (6) MONTHS AN EMPLOYEE SHALL BE CONSIDERED WRITTEN-OFF AFTER ONE (1)
VII - SUSPENSION FOR MORE THAN SIX (6) MONTHS YEAR FROM THE TIME THE PENALTY IS SERVED, UNLESS HE COMMITS
VIII - TERMINATION THE SAME OFFENSE DURING THE ONE (1) YEAR PERIOD, FROM THE
TIME THE PENALTY FOR THE LAST OFFENSE IS SERVED.
FOR READY REFERENCE, THE JUST CAUSES FOR
TERMINATION OF EMPLOYMENT UNDER ARTICLE 282 OF THE LABOR OTHER OFFENSES NOT WILLFULLY COMMITTED AND THOSE NOT
CODE OF THE PHILIPPINES ARE AS FOLLOWS: INVOLVING MORAL TURPITUDE SHALL BE CONSIDERED WRITTEN-OFF
AFTER TWO (2) YEARS FROM THE TIME THE PENALTY THEREFOR IS
(A) SERIOUS MISCONDUCT OR WILLFUL DISOBEDIENCE SERVED UNLESS THE EMPLOYEE CONCEREND COMMITS THE SAEM
BY THE EMPLOYEE OR THE LAWFUL ORDERS OF HIS EMPLOYER OR OFFENSE WITHIN THE SAID PERIOD, IN WHICH CASE THE TWO YEAR
REPRESENTATIVE IN CONNECTION WITH HIS WORK; PERIOD SHALL BE RECKONED FROM THE TIME THE PENALTY FOR THE
SECOND OFFENSE COMMITTED AFTER THE PRESCRIPTIVE PERIOD.
(B) GROSS AND HABITUAL NEGLECT BY THE EMPLOYEE
OF HIS DUTIES; ARTICLE 16 COMMUTATION/REDUCTION OF PENALTY

(C) FRAUD OR WILLFUL BREACH BY THE EMPLOYEE OF PENALTIES FOR OFFENSE ALAREADY METED OUT BUT NOT
THE TRUST REPOSED IN HIM BY HIS EMPLOYER OR DULY YET FULLY SERVED MAY BE COMMUTED OR REDUCED IN
AUTHORIZED REPRESENTATIVE; JUSTIFIABLE CASES BY THE GROUP HEAD CONCERNED OR THE PAL
PRESIDENT.
(D) COMMISSION OF A CRIME OR OFFENSE BY THE
EMPLOYEE AGISNT THE PERSON OF HIS EMPLOYER OR ANY ARTICLE 17 CONSPIRACY OR CONCERTED ACTION

If any offense punishable in this Code is committed by a group of employees acting
in concert, whether or not there is a specific prior agreement to so act, each and
every employee who participants in any way in the concerted action shall be
punished with penalty prescribed for the most serious offense which results from
such concerted action.
ARTICLE 21 INSTIGATION
Any employee who instigates, influences, persuades, forces, coerces, or otherwise
causes another to commit an offense shall be deemed to have committed that offense
himself and shall be subject to a penalty to be determined in the light of the gravity
of the offense and the surrounding circumstances.

ARTICLE 18 TOLERANCE OR CONDONATION OF OFFENSE
Any employee who, not being guilty under the next preceding section, is clearly in a
position, acting alone and without risk of harm or cost to himself, to prevent the
commission of an offense punishable in this Code, or to take measures to solicit or
obtain the assistance of others when needed to prevent commission of such offense,
or to inform others who are in a position to prevent the commission of such offense,
but fails to do so shall e meted a separate penalty to be determined in the light of the
circumstances surrounding the employee’s failure to act and the seriousness of the
offense actually committed. A SUPERIOR GUILTY OF GROSS INACTION ON
THE ABOVE MATTERS MAY BE FOUND GUILTY OF FAILURE ON THE
JOB.
ARTICLE 22 ACCEPTANCE OF THIS CODE AND GENERAL NORMS;
PENALTIES FOR MISCONDUCT
An employee of the Philippines Airlines, by his acceptance of his employment in the
Company, submits himself to the authority of this Code and binds himself to comply
with its provisions.
Every employee is obligated to obey the law at all times, to respect the rights of
others, to treat others with dignity, and to behave according to generally accepted
norms of courtesy, decency, and good conduct, whether or such norms are explicitly
included in this Code, VIOLATIONS OF WHICH SHALL SUBJECT HIM TO
THE SCHEDULE OF PENALTIES PROVIDED FOR UNDER ARTICLE 14.

ARTICLE 19 FAILURE TO REPORT; SUPERIOR’S INACTION

It is the duty of employees to report to management with reasonable dispatch any

information in their possession about any offense which has been, is being or is
about to be committed. Failure to do so will subject the employee to a penalty to be
determined in the light of the gravity of the offense and the surrounding
circumstances. IT SHALL BE THE DUTY OF THE SUPERIOR, ON THE
OTHER HAND, TO ACT IMMEDIATELY UPON ALL REPORS OF
VIOLATIONS, OTHERWISE HE SHALL BE GUILTY OF FAILURE ON THE
JOB.

ARTICLE 20 ILLEGAL ACTS

The laws, rules and regulations of every country in which the Company operates,
on-line or off-line, are hereby incorporated and made an integral part of this Code.
The commission of a unlawful act by any employee (whether against a customer, an
employee, the Company, or any other party whatsoever), or of a crime, may subject
the employee to penalty to be determined in the light of the gravity of the offense
and the surrounding circumstances.
 customer, or causing inconvenience to the customer, or performing nonwork-related
CHAPTER II tasks or engaging in nonwork-related chatting or conversation resulting in
inconvenience to or neglect a waiting customer, or causing unnecessary delays in
OFFENSES AND PENALTIES responding to customer needs or requests, or otherwise refusing or failing without
SECTION 1 justifiable cause to provide prompt, efficient, and courteous service to a customer;

OFFENSES AGAISNT CUSTOMERS (f) Preferential or Discriminatory Treatment. Showing unwarranted

IN VIOLATION OF TPC 1 preference for or prejudice or discrimination against any customer or class of
customers unless special treatment is permitted under applicable tariffs or Company
rules and regulations regarding the handling of certain passengers (e.g. minor,
ARTICLE 23 ANTI-CUSTOMER OFFENSES medical cases, or handicapped passengers).

An employee who commits any of the following shall be meted the penalty AS ARTICLE 24 FAILURE OF EMPLOYEE TO WEAR PRESCRIBED
PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF UNIFORMS AND IDENTIFICATION CARDS
THIS CODE, depending upon the gravity and/or frequency of the offenses:
a.) Any customer-contract employee who reports for work not wearing the
(a) Mishandling of Customer, BAGGAGE AND CARGO. Culpable, prescribed uniform and/or identification card without justifiable reason, or who
unjustified, and avoidable errors (whether deliberate or through negligence) in the wears unauthorized items on prescribed uniforms, shall not be permitted to work and
handling of any customer transaction, service, or need, including but not limited to shall be placed on suspension for that particular day. In addition, the employee shall
errors in fare computation, ticket preparation, reservations handling, check-in be penalized as follows:
handling, baggage handling, cargo acceptance and release, documentation, and
Mabuhay Lounge and cabin service, in all aspect, especially if such errors result in FIRST OFFENSE : Suspension for one (1) day (to be served on the day
customer dissatisfaction; the offense is committed, as provided above)

(b) Failure to Provide Necessary Supplies. Culpable and unjustified failure to SECOND OFFENSE : Suspension for three (3) days
provide or procure materials, supplies, facilities or services in a timely manner THIRD OFFENSE : Suspension for seven (7) days
which are essential to the proper handling of customers at the required level of FOURTH OFFENSE : Suspension for fifteen (15) days
quality; FIFTH OFFENSE : Suspension for thirty (30) days

(c) Misinformation or Lack of Information. Giving false, inaccurate,
misleading, incomplete; delayed, or no information to customers, when the
employee knows, should know or is in a position to obtain such information, thus
resulting in inconvenience, discomfort, dissatisfaction, or expense to the customer,
or loss revenue or additional costs to the airline.
(d) Discourtesy. Discourtesy toward any customer in any form or aspect,
including but not limited to rudeness, arrogance, insolence, impoliteness, disdain,
contentiousness, ungraciousness, incivility, or inconsiderateness in word or action;
(e) Neglect of Customer. Inattention to or neglect of the needs of any
customer, or refusal or failure to assist such customer, or ignoring the presence of a
THE SIXTH OFFENSE SHALL BE CONSIDERED AS CONSTITUTING
WILLFUL DISOBEDIENCE AND SERIOUS MISCONDUCT AND SHALL BE
PUNISHED BY DISMISSAL
B.) ANY EMPLOYEE WHO, NOT BEING PUNISHABLE UNDER THE
ABOVE PROVISION, FAILS WITHOUT JUSTIFIABLE REASON TO WEAR
THE PRESCRIED UNIFORM OR WEAR OR CARRY THE PRESCRIBED
IDENTIFICATION CARD DURING OFFICE HOURS ON ANY WORKING
DAY, OR WHO WEARS UNAUTHORIZED ITEMS ON PRESCRIBED
UNIFORMS, SHALL BE PNENALIZED IN ACCORDANCE WITH THE
FOLLOWING SCHEDULE:
 SHALL BE METED THE PENALTY AS PRESCRIBED IN THE SCHEDULE OF
FIRST OFFENSE : WRITTEN REPRIMAND PENALTIES UNDER ARTICLE 14 OF THIS CODE.
SECOND OFFENSE : SUSPENSION FOR ONE (1) DAY
THIRD OFFENSE : SUSPENSION FOR THREE (3) DAYS ARTICLE 27 WASTING TIME
FOURTH OFFENSE : SUSPENSINO FOR SEVEN (7) DAYS
FIFTH OFFENSE : SUSPENSION FOR FIFTEEN (15) DAYS Any employee who deliberately, with malicious intent, or though negligence spends
SIXTH OFFENSE : SUSPENSION FOR THIRTY (30) DAYS more time than reasonably necessary in the circumstances to perform his job or his
tasks, or causes, encourages, on incites other to do the same, shall be penalized AS
THE SEVENTH OFFENSE IS CONSIDERED AS TANTAMOUNT TO PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14,
WILLFUL DISOBEDIENCE AND A SERIOUS MISCONDUCT AND SHALL depending on the gravity of the offense. WHERE SUCH ACTS AMOUNT TO
BE PUNISHABLE BY DISMISSAL. GROSS AND HABITUAL NEGLECT OF DUTY OR WILLFUL
DISOBEDIENCE THE PENALTY SHALL BE DISMISSAL.

SECTION 2 ARTICLE 28 INEFFICIENCY AND WASTE

OFFENSES AGAINST JOB PERFORMANCE STANDARDS
IN VIOLATION OF TPC 2
ARTICLE 25 FAILURE ON THE JOB
Any employee who demonstrates his refusal or inability without justifiable reason or
cause to perform the duties and responsibilities of his job and to accomplish the
performance and productivity standards thereof shall be meted the penalty AS
PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF
THIS CODE depending upon the gravity and/or frequency of the offense and
whether the evidence shows the situation to be temporary and remediable or
permanent and incurable. WHERE SUCH ACT OR ACTS AMOUNT TO ANY OF
THE JUST CAUSES FOR TERMINATION UNDER ARTICLE 282 OF THE
LABOR CODE OF THE PHILIPPINES, THE PENALTY SHALL BE
DISMISSAL.
ARTICLE 26 NON-OBSERVANCE OF QUALITY STANDARDS
ANY EMPLOYEE WHO VIOLATES or refuses or fails without justifiable reason
to comply with the quality standards prescribed by the Company’s Quality
Improvement Programs (QIP) and related or similar programs and other rules,
regulations, prescriptions, mandates, and policies contained in or issued in
connection with QIP or aimed to achieving customer satisfaction and related goals
and in so far as they relate to human-resource policies, programs and benefits
Any employee who deliberately or through negligence, wastes or consumes or
utilizes more than reasonably necessary in the circumstances the Company’
FUNDS, supplies, materials, and other resources or performs his jobs or his tasks, or
causes, encourages, or incites other employees to do the same, shall be penalized AS
PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF
THIS CODE, depending on the gravity of the offense. WHERE SUCH ACTS
AMOUNT TO GROSS AND HABITUAL NEGLECT OF DUTY OR WILFUL
DISOBEDIENCE, THE PENALTY SHALL E DISMISAL.
ARTICLE 29 TIME CARD IRREGULARITIES/
TIMEKEEPING VIOLATIONS
a) Any employee who removes or takes out any time card off the card racks
without proper authority from his superior or timekeeper shall be suspended as
prescribed in the schedule of penalties under article 14 of this Code.
b) Any employee who deliberately alters or tampers with his ID/time card or
that of another employee, SHALL BE DISMISED AS IN CASES OF
FALSIFICATION.
c) Punching/SWRIPING the ID/time card of another employee, or
knowingly and willfully CAUSING OR ALLOWING another employee to
punch/SWIPE his/own ID/time card, shall be penalized AS PRESCRIBED IN THE
SCHEDULE OF PENALTIES UDNER ARTICLE 14 OF THIS CODE,
DEPENDING UPNO THE CIRCUMSTNACES OF THE OFFENSE.
d) If any employee requests, allows or in any way causes another employee FOURTH OFFENSE : Suspension for three (3) days
to punch his own (the former’s) time card, both employees shall be punished as FIFTH OFFENSE : Suspension for seven (7) days
stated in the next preceding sentence. SIXTH OR MORE : Suspension for fifteen (15) days
OFFENSES
IT SHALL BE CONSIDERED SERIOUS MISCONDUCT FOR
EMPLOYEES TO COMMIT OFFENSES b), c) and d) FOR THE SECOND TIME, THE ABOVE PROVISIONS NOTWITHSTANDING, THE PENALTY OF
IN WHICH CASE THE PENALTY SHALL BE DISMISSAL. TERMINATION FOR CAUSE SHALLB E IMPOSED ON EMPLOYEES
GUILTY OF TARDINESS WHERE IT IS SHOWN THAT SUCH TARDINESS
ANY EMPLOYEE WHO MAKES IT APEPAR IN ANY DOCUMENT HAS RESULTED TO GROSS AND HABITUAL NEGLECT OF DUTIES OR TO
THAT HE IS PRESENT AT WORK FOR THE DAY WHEN HE IS NOT, OR GROSS NEGLIGENCE.
PRESENTS ANY FALSE SICK LEAVE DOCUMENT, SHALL BE
CONSIDERED UILTY OF FRAUD, FALSIFICATION AND SERIOUS For purpose of implementing this section, tardiness shall be considered to have been
MISCONDUCT AND SHALL BE DISMISSED. committed when an employee comes to work late FOR A TOTAL OF MORE
THAN THIRTY (30) MINUTES within any pay period.
ARTICLE 30 FAILURE TO PUNCH TIME CARD
NEVERTHELESS, each department or office within the company shall clearly set
Any employee who fails to punch/SWIPE his time card (before or after office hours) forth the standards of promptness applicable to ITS employees, which standards
without justifiable reason during a calendar year shall be penalized in accordance shall be consistent with Company policies and prescribed guidelines on the matter.
with the following schedule:
ARTICLE 32 ABSENCE WITHOUT LEAVE OR NOTICE
FIRST OFFENSE : Written admonition or warning
SECOND OFFENSE : Written reprimand Any employee who fails to report for work without securing the previous written
THIRD OFFENSE : Suspension for one (1) day approval of his superior(s), unless considered unavoidable or justifiable by the
FOURTH OFFENSE : Suspension for three (3) days DIVISION OR department head concerned, shall be penalized in accordance with eh
FIFTH OFFENSE : Suspension for seven (7) days following schedule:
SIXTH OFFENSE : Suspension for fifteen (15) days
SEVENTH OR MORE : Suspension for thirty (30) days FIRST OFFENSE : Suspension for one (1) day
OFFENSE SECOND OFFENSE : Suspension for three (3) days
THIRD OFFENSE : Suspension for seven (7) days
ARTICLE 31 TARDINESS FOURTH OFFENSE : Suspension for fifteen (15) days
FIFTH OR MORE : Suspension for thirty (30) days
Any employee, whether or not required to punch/SWIPE a time card, who repot late OFFENSES
for work within a calendar year, except when due to unavoidable circumstances or
causes beyond his control, or for any other justifiable reason, shall be penalized For purposes of the above, one (1) day of absence without leave shall constitute one
according to the following schedule applied in such a manner that the first case of offense, so that, for example, absence without leave for three (3) consecutive
tardiness committed y an employee during a calendar year shall be considered as his working days shall constitute three separate offenses. In such a case, the penalty
first offense in that year: shall be the total number of days of suspension incurred for all the offenses
committed, hence, in the example given, the penalty shall be suspension for eleven
FIRST OFFENSE : Written admonition or warning (11) days.
SECOND OFFENSE : Written reprimand
THIRD OFFENSE : Suspension for one (1) day
THE ABOVE PROVISION NOTWITHSTANDING, THE PENALTY SHALL BE
DISMISSAL WHERE SUCH ABSENCE WITHOUT LEAVE RESULTS TO
GROSS AND HABITUAL NEGLECT OF DUTY OR GROSS NEGLIGENCE, OR
GROSS NEGLIGENCE, OR WHEN IT IS TANTAMOUNT TO
ABANDONMENT OF WORK.
ABSENCE WITHOUT LEAVE FOR MORE THAN FIFTEEN (15)
CONSECUTIVE CALENDAR DAYS SHALL BE CONSIDERED AS GRAVE
AND HABITUAL NEGLECT OF DUTY, FOR WHICH OFFENSE. A NOTICE
OF ADMINISTRATIVE CHARGE MUST IMMEDIATELY BE ISSUED BY THE
ERRING EMPLOYEE’S SUPERIOR.
FIRST OFFENSE: (A) Suspension form fifteen (15) to thirty (30) days; (B) IF
THE EMLOYEE TENDS A MACHINE OR EQUIPMENT THE PENALTY
SHALL BE SUSPENSION FOR AT LEAST TWO (2) MONTHS OR
DISMISSAL, DEPENDING ON THE GRAVITY OR THE CONSEQUENCES OF
THE OFFENSES (C) Dismissal if the safety of passengers is involved, as in the case
of pilot or cabin attendant on flight outside his rest period.
SECOND OFFENSE: (A) Suspension for FORTY FIVE (45) days; (B) IF THE
EMPLOYEE TENDS A MACHINE OR EQUIPMENT THE PNEALTY
DISMISAL, DEPENDING ON THE GRAVITY OR THE CONSEQUENCES OF
THE OFFENSES.

ARTICLE 33 UNAUTHORIZED UNDERTIME THIRD OFFENSE: Dismissal (ON THE GROUND OF GROSS NEGLIGENCE
OR GRAVE AND HABITUAL NEGLECT OR DUTY)
ANY EMPLOYEE WHO REPORTS FOR, OR LEAVES WORK UNDERTIME
FOR MORE THAN ONE (1) HOUR WITHOUT PREVIOUS WRITTE ARTICLE 35 MALINGERING
APPROVAL OFHIS SUPERIOR UNELSS CONSIDERED UNAVOIDABLE OR
JUSTIFIED BY THE DIVISION OR DEPARTMENT HEAD CONCERNED, Any employee who, for the purpose of avoiding work, duty, or service, OR OTHER
SHALL ASIDE FROM DEDUCTIONS FOR SUCH UNDERTIME BE PERSONAL REASON, FEIGNS ILLNESS, physical disability, mental lapse or
PENALIZED AS FOLLOWS: derangement, or intentionally inflicts self-injury, shall be penalized AS
PRESCRIBED IN THE SCHEDULEOF PENALTIES UNDER ARTICLE 14 OF
FIRST OFFENSE : WRITETN REPRIMAND THIS CODE, depending upon THE FREQUENCY OR the gravity of the offense.
SECOND OFFENSE : SUSPENSION FOR ONE (1) DAY WHERE SUCH ACTS RESULT IN GROSS NEGLIGENCE OF DUTIES, THE
THIRD OFFENSE : SUSPENSION FOR THREE (3) DAYS PENALTY SHALL BE DISMISAL.
FOURTH OFFENSE : SUSPENSION FOR SEVEN (7) DAYS
FIFTH OFFENSE : SUSPENSION FOR FIFTEEN (15) DAYS ARTICLE 36 LOITERING AND ABANDONMENT OF POST
SIXTH OR MORE : SUSPENSION FOR THIRTY (30) DAYS
OFFENSE Any employee who idles away his time within or outside company premises or
abandons his post during working hours without authority or valid cause or reason
THE ABOVE PROVISIONS NOTWITHSTANDING, THE PENALTY OF shall be penalized IN ACCORDANCE WITH THE SCHEDULE OF PENALTIES
TERMINATION FOR CAUSE SHALL BE IMPOSED ON EMPLOYEE GUILTY PROVIDED UNDER ARTICLE 14 OF THIS CODE. THE PENALTY SHALL BE
OF UNAUTHORIZED UNDERTIME WHERE IT IS SHOWN THAT SUCH DISMISSAL WHERE SUCH ACT RESULTS IN GROSS NEGLIGENCE OF
UNAUTHORIZED UNDERTIME HAS RESULTED TO GROSS AND HAITUAL DUTIES OR GRAVE AND HABITUAL NEGLECT OF DUTY.
NEGLECT OF DUTY OR TO GROSS NEGLIGENCE.

ARTICLE 34 SLEEPING DURING WORKING HOURS

Any employee who, during any calendar-year period, is found sleeping without
justifiable reason during his working hours or while on duty shall be penalized as
follows:
 SECTION 3
OFFENSES AGAINST TEAMWORK
IN VIOLATION OF TPC 3
ARTICLE 37 ANTI-TEAMWORK OFFENSES
Any employee who commits any of the following shall be meted the penalty AS
PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF
THIS CODE, depending on the gravity of the offense or of its consequences:
(a) Withholding Cooperation. Refusing of failing to cooperate with, or
deliberately withholding cooperation form, or refusing or failing to help, assist, and
provide team support to fellow employees, whether peers, superiors, or subordinates,
without justifiable cause, when such cooperation and teamwork are needed to ensure
the performance or completion of any company operation or to protect the
Company’s interests;
(b) Withholding of Information. Refusal or Failure to Communicate.
Withholding information or refusal or failure without justifiable cause to
communicate with or provide information to a fellow employee when such
information or communication is needed to ensure the performance or completion of
any company operation, or for any employee to make sound decision, or to protect
the Company’s interests;
(c) False Information. Deliberately or through culpable negligence, giving
false, inaccurate, misleading, incomplete, or delayed information to THE
COMPANY OR to a fellow employee which results in: damage to the quality of the
Company’s products and services; customer dissatisfaction in ay form; errors,
delays, inefficiencies, higher costs, and similar disruptions or irregularities in
operations; losses or foregone revenues; lowering of employee productivity or
morale; wrong or unsound decisions; or any other disruption or damage to the
company’s effectiveness and efficiency in achieving its goals, objectives and
standards in any area of its operations;
(d) Disrespect for Authority. Treating, by word or deed, a superior or any
other person in authority in a manner which indicates contempt or disrespect for the
position occupied by such superior or person in authority;
(e) Abuse of Authority. Abusing the exercise of one’s authority, or taking
undue advantage of such authority, to gain undue favors or advantage for oneself OF
FOR OTHERS, or to oppress harass, and otherwise prejudice another;
(f) Intrigue. Deliberately spreading or disseminating false, inaccurate,
misleading or incomplete information (including false or misleading or incomplete
information of this Code or any Company regulation) about an employee with the
intent or aim of, or which results in, damaging, tarnishing or besmirching his
reputation or standing within the company, or weakening or destroying the trust and
confidence of others in him, or undermining or destroying his authority (if a
superior) over others;
(g) Maltreatment of Superiors, Colleagues, and Subordinates. Treating a
superior, peer employees, or subordinates without respect or in manner inconsistent
with their dignity as human beings, violate their rights, or contrary to or inconsistent
with the accepted principles and norms of justice, fairness, and equity.
ARTICLE 38 INSUBORDINATION OR WILLFUL DISOBEDIENCE
ANY EMPLOYEE WHO refuses or fails without justifiable cause to obey
and/or implement any lawful OR REASONABLE RULE, regulation,
CATEGORICAL ORDER OR INSTRUCTION, or policy issued by the Company
or by his superior(s), OR AUTHORIZED REPRESENTATIVE, RELATED TO
THE WORK OF THE EMPLOYEE, or inciting or urging fellow employees to
commit such insubordination, SHALL SUFFER THE PENALTY OF DISMISSAL.
SECTION 4
OFFENSES AGAINST TOTAL PERSONNEL CARE
IN VIOLATION OF TPC 4
ARTICLE 39 ANTI-EMPLOYEE OFFENSES:
COMMISSION AND OMISSION
Any employee who commits any of the following shall be meted the penalty AS
PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF
THIS CODE, depending upon the gravity and/or frequency of the offense:
(a) Erroneous Handling of Employee Service. Culpable, unjustified, and
avoidable errors (whether deliberate or through negligence) in the handling of any
employee transaction, service, or need, including but not limited to errors and
unjustified delays in salary and wage computation and payment, processing of
Payroll Authorizations and processing of employee benefits;
(b) Neglect of employee Rights. Inattention to or neglect of the rights of any
employee as set forth in Company manuals, policy directives, rules and regulations,
and collective bargaining agreements, or causing unnecessary delays in processing
employee requests regarding benefits and privileges to which such employee is
entitled, or otherwise refusing or failing without justifiable cause to provide prompt,
efficient and courteous service to an employee;
GROSS NEGLIGENCE, GROSS AND HABITUAL NEGLECT OF DUTIES ARE
JUST CAUSES FOR TERMINATION UNDER THE LABOR CODE.
(c) Undue Favors. Providing favored or preferential treatment to any
employee in the application of any Company procedures, in violation of Company
rules and regulations. If this offense is committed in exchange for monetary or non-
monetary considerations, the penalty shall be that of dismissal.
ARTICLE 40 INFLUENCE SOLICITATION
Employee movements within the Company, such as promotions, salary increases, or
transfer, shall be done strictly on the basis of performance, merit, and the legitimate
requirements of the Company in pursuing its business goals, objectives, and
standards. According, any employee who solicits the recommendation or
endorsement of third parties, whether verbal or written, in favor of his promotion,
salary increase, transfer, or the like shall be punished AS PRESCRIBED IN THE
SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF THIS CODE, depending
upon the gravity and/or frequency of the offense.
Any employee who feels aggrieved with respect to his promotion, salary increase,
transfer, or any other similar action, or with respect to the Company’s refusal or
failure to favor him with such movement shall in the first instance discuss his
grievance with his superiors or the proper higher officials within his department. If
the employee is not satisfied with the results of such discussions, he should avail
himself of the personnel policies of the Company or applicable collective bargaining
agreements, rather than soliciting third-party intervention.
ARTICLE 41 INFLUENCE PEDDLING
Any employee who offers to solicit the recommendation or endorsement of a third
party in favor of the promotion, salary increase, transfer, or similar movement of a
fellow employee shall be punished AS PRESCRIBED IN THE SCHEDULE OF
PENALTIES UNDER ARTICLE 14 OF THIS CODE, depending upon the gravity
and/or frequency of the offense.
If done in exchange for consideration, financial or otherwise, the penalty shall be
that of dismissal.
ARTICLE 42 INTERVENTINON IN ADMINISTRATIVE CASE
Any employee who intervenes in any way (except as counsel or as observer pursuant
to a collective bargaining agreement) or solicits the intervention of a third party in
any administrative investigation or disciplinary proceeding in order to influence the
outcome of such investigation of proceeding shall be punished AS PRESCRIBED
IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF THIS CODE,
depending on the gravity of the offense and the particular circumstances.
ARTICLE 43 CULPABLE DELAY IN INVESTIGATION
Any department head, or any official who may be designated by him pursuant to
CHAPTER III, RULE I THIS CODE, who unreasonably or without sufficient
reasons delays the investigation of any violation of the provisions of this Code or of
any complaint filed against a subordinate, or who similarly delays the disposition of
any administrative case, shall be meted the penalty AS PRESCRIBED IN THE
SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF THIS CODE, depending
upon the gravity and/or length of such delays.
ANY UNJUSTIFIED DEVIATION FROM THE PERIOD PRESCRIBED UNDER
CHAPTER III (DISCIPLINARY PROCEEDINGS) SHALL CONSTITUTE
CULPABLE DELAY.
 SECTION 5
OFFENSES AGAINST GOOD NAME,
REPUTATION, WELL-BEING
AND SECURITYOF THE COMPANY
IN VIOLATION OF TPC 5
ARTICLE 44 ANTI-COMPANY OFFENSES
Any employee who commits the following shall be meted the penalty AS
PRESCRIBED IN THE SCHEDULE OF PENALTIES UDNER ARTICLE 14 OF
THIS CODE, depending on the gravity or frequency of the offense:
(a) Violation of Safety. Violating safety rules and regulations issued by
competent government authority or by the Company or otherwise endangering,
jeopardizing, or compromising in any manner, by word or action, the safety of any
Company operation, flight or nonflight, deliberately or through negligence.
(b) Breach of Security. Endangering, jeopardizing, or compromising in any
manner, by word or action, the security of any Company personnel, operations,
assets, properties, and documents.
(c) Damage or Disruption –
(1) Deliberately or though negligence causing, directly or indirectly, through
words or deeds, damage to and/or disruption to Company personnel and/or property:
(2) Permitting such damage, destruction, and/or disruption to occur when the
employee is clearly in a position and has the capability to prevent it without danger
to himself;
(3) Concealing or withholding from the appropriate authorities within the
Company information in the employee’s possession regarding actual or imminent
threats or dangers to the well-being or safety of the Company’s personnel,
customers, property, or interests, or to the profitability of the Company’s operations.
If done with malicious intent, the offenses under subsection (a), (b), and
(c), immediately preceding, shall be punishable by dismissal.
(d) Injuring Company Reputation. CAUSING DAMAGE OR INJURY TO
the reputation and image of the Company in the eyes of other people, such as by
spreading false rumors about the Company, embarrassing, ridiculing, or mocking the
Company by word and/or action in the presence of other people, whether employees
not, and criticizing the Company in public OR ANY OTHER ACTIONS WHICH
EMBARRASS OR CAUSE ADVERSE PUBLICITY OR DAMAGE TO THE
COMPANY; provided, however, that criticizing the Company operations, shall
constitute not an offense but a laudable activity, if such criticism is expressed solely
within the Company and before appropriate Company officials;
(e) Improper Release of Information. Revealing or releasing, without
authority, confidential information belonging to or pertaining to the Company
(including but not limited to trade secrets, marketing or financial data, or
information relating to any aspect of the Company’s purchasing activities) which
revelation or release exposes the Company to, or actually inflicts upon the
Company, financial damage or injury to its goodwill, reputation and standing in the
community or the industry.
(f) Advance Release of Information. Releasing information belonging to or
pertaining to the Company in advance of the authorized release date. In the case of
subparagraphs (d), and (f) immediately preceding, if the revelation or release of
information is done with the intent of causing damage to the Company, or for
personal gain or favor, the penalty of dismissal shall be imposed.
SECTION 5
COMMON OFFENSES AGAINST CORPORATE VALUES
INVOLVING GOOD EPRSONAL BEHAVIOR
AND CONDUCT
ARTICLE 45 CONVICTION
Any employee convicted y a competent court of an offense which constitutes a
crime INVOLVING MORAL TURPITUDE under the law of the place where the act
is committed, WHICH IS WORK-RELATED, OR WHICH INVOLVES THE
SAFETY, WELFARE, REPUTATION OR STANDING OF THE COMPANY IN
THE COMMUNITY, OR WHICH CARRIES THE PENALTY OF
IMPRISONMENT FOR MORE THAN ONE (1) MONTH shall incur a penalty AS
PRESCRIBED IN EH SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF
THIS CODE, depending on the gravity of the offense and/or circumstances of its
commission. Proof of such conviction shall be considered as substantial evidence
for purposes of the administrative hearing.
WHERE SUCH VIOLATION CONSTITUTES SERIOUS MISCONDUCT OR
BREACH OF TRUST, THE PENALTY OF DISMISSAL SHALL BE IMPOSED.
FURTHERMORE, A SENTENCE OF CONVICTION WITH IMPRISONMENT
FOR MORE THAN ONE (1) MONTH SHALL BE CONSIDERED AS SERIOUS
MISCONDUCT, AND SHALL BE SUBJECT TO DISMISSAL.
ARTICLE 46 VIOLATION OF LAW/GOVERNMENT REGULATIONS
Any employee who by SUBSTANTIAL EVIDENCE PRESENTED AT AN
ADMINISTRARIVE EHARING is found to have violated or attempted to violate
existing laws, decrees, regulations, or orders issued by the Philippine or other
governments, and their agencies and instrumentality, WHICH VIOLATION
INVOLVES MORAL TURPITUDE, IS WORK-RELATED, OR WHICH
INVOLVES THE SAFETY, WELFARE, REPUTATION, OR STANDING OF
THE COMPANY IN THE COMMUNITY, shall be penalized AS PRESCRIBED
IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF THIS CODE,
depending upon the gravity and/or frequency of the offense. WHERE SUCH
VIOLATION CONSTITUTES SERIOUS MISCONDUCT OR BREACH OF
TRUST, THE PENALTY OF DISMISSAL SHALL BE IMPOSED.
ARTICLE 47 DRUNKENNESS/ALCOHOLISM
Any employee WHO REOPRTS FOR WORK UDNER THE INFLUENCE OF
LIQUOR OR WHO DRINKS ALCOHOLIC BEVERAGES during office hours or
while on duty 9EXCEPT ON OFFICIAL FUNCTIONS), shall incur a penalty AS
PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF
THIS CODE, depending upon the gravity or frequency of the offense.
ARTICLE 48 PROHIBITED DRUGS
Any employee who indulges in gambling in any form at anytime within the
Company premises or while on duty shall be penalized as follows:
FIRST OFFENSE : Suspension from fifteen (15) days to one (1) Month
SECOND OFFENSE : Suspension from One (1) Month to six (6) Months
THIRD OFFENSE : Dismissal
ARTICLE 50 HORSEPLAYING; DISCOURTEOUS OR
DISORDERLY OR IMMORAL BEHAVIOR
ANY EMPLOYEE WHO ENGAGES IN INDECENT, DISCOURTEOUS OR
DISORDERLY, IMMORAL OR LASCIVIOUS BEHAVIOR DURING
WORKING HOURS OR WHILE ON DUTY, OR ENGAGES IN
HORSEPLAYING OR ACTS in disorderly manner during working hours or while
on duty, or within company premises shall be penalized AS PRESCRIBED IN THE
SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF THIS CODE, depending
upon the gravity or frequency of the offense. THE PENALTY OF DISMISSAL
SHALL BE IMPOSED IF SUCH ACT CONSTITUTES SERIOUS
MISCONDUCT.
ARTICLE 51 SEXUAL HARASSMENT
AN EMPLOYEE WHO COMITS SEXUAL HARASSMENT UPON HIS/HER
CO-OFFICIAL, CO-EMPLOYEE, APPLICANT FOR EMPLOYMENT OR ANY
OTHER CUSTOMER OR SUPPLIER OF THE COMPANY SHALL BE
PENALIZED AS PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER
ARTICLE 14 OF THIS CODE DEPENDING UPON THE GRAVITY OF THE
OFFENSE. “SEXUAL HARASSMENT” IS DEFINED AS ANY ACT COVERED
BY THE PROVISIONS OF REPUBLIC ACT NO. 7877, OR MORE EXPLICITLY
ANY UNWANTED OR UNWELCOME SEXUAL ADVANCE, DEMAND OR
REQUEST FOR SEXUAL FAVOR, OR OTHER ACT OR CONDUCT OF
SEXUAL NATURE WHETHER WRITTEN, ORAL OR PHYSICAL AND SUCH
ACT:
1. IS COMMITTED TO TAKE ADVANTAGE OF THE WEAKNESSES,
VULNERABILITY, STATUS AND PROFESSIONAL, SOCIAL AND
ECONOMIC STANDING OF THE OFFICIAL, EMPLOYEE, OR CLIENT;
OR
2. IS EXPLICITYLY OR IMPLICITLY IMPOSED AS A CONDITION FOR
SECURING EMPLOYMENT, ADVANCEMENT, PROMOTION,
ASSISTANCE, SERVICES OR PREFERENTIAL TREATMENT; OR
3. INTERFERES ADVERSELY WITH THE OFFICIAL’S OR EMPLOYEE’S
PERFORMANCE; OR
4. IS BOUND TO CREATE A HOSTILE, OFFENSIVE, INTIMIDATING OR
UNCOMFORTABLE WORK ENVIRONMENT.
ARTICLE 52 ASSAULT; VIOLENT ACT shall constitute an offense punishable AS PRESCRIBED IN THE SCHEDULE OF
PENALTIES UDNER ARTICLE 14 OF THIS CODE, depending on the gravity of
Any employee who, ON COMPANY TIME, OR IN COMPANY PREMISES, offense and the particular circumstances.
physically assaults another person or uses force or violence shall be penalized AS
PRESCRIBED IN THE SCHEDULE OF PENALTIES UNDER ARTICLE 14 OF ARTICLE 55 SMOKING IN PROHIBITED PLACES
THIS CODE, depending on the gravity and/or frequency of the offense.
SMOKING IN CLEARLY DESIGNATED SMOKE FREE ZONES IS STRICTLY
Any employee who, ON COMPANY TIME OR INSIDE COMPANY PREMISES, PROHIBITED. THE FOLLOWING SHALL BE CONSIDERED AS STRICTLY
commits the following shall be meted the penalty of dismissal; SMOKE-FREE ZONES AND THESE PLACES SHOULD BE CONSPICUOUSLY
POSTED WITH SUCH NOTICES, (A) ENCLOSED WORKPLACES AND
(a) Violence. Using force, violence, coercion, threats, intimidation or other OFFICES; (B) CANTEENS; (C) TRAINING AND CONFERENCE ROOMS;
unlawful, improper or irregular means on customers, other employees or third AND (D) DESIGNATED AREAS IN THE AIRCRAFT; HANGARS, SHOPS
person; AND OFFICES WHERE SMOKING IS A THREAT TO THE SAFETY AND
SECURITY OF COMPANY RESOURCES.
(b) Assault. Physical assault and battery committed against a customer, a
fellow employee on company premises, or during working hours (whether or not on VIOLATIONS OF THESE PROHIBITION BY EMPLOYEES SHALL SUBJECT
Company premises), regardless of whether the assault results in serious physical THEM TO THE FOLLOWING PENALTIES:
injury;
FIRST OFFENSE : VERBAL REMINDER
(c) Fighting. QUARRELING OR ENGAGING IN FIGHTING OR physical SECOND OFFENSE : VERBAL REPRIMAND
combat with a customer, another employee or a third person in Company premises THIRD OFFENSE : WRITTEN REPRIMAND
or during working hours (whether or not on Company premises). FOURTH OFFENSE : ONE (1) DAY SUSPENSION
FIFTH OFFENSE : THREE (3) DAYS SUSPENSION
ARTICLE 53 THREATS; COERCION SIXTH AND : SEVEN (7) DAYS SUSPENSION
SUBSEQUENT OFFENSES
Any employee who, ON COMPANY TIME OR IN COMPANY PREMISES,
COERCES OR threatens to inflict harm on the person, property, or reputation of A
CO-EMPLOYEE OR a THIRD PERSON, shall be penalized AS PRESCRIBED IN SECTION 7
THE SCHEDULE OF PENALTIES UDNER ARTICLE 14 OF THIS CODE,
depending on the gravity and/or frequency of the offense. COMMON OFFENSES AGAINST
CORPORATE VALUES INVOLVING
FURTHERMORE, THREATS COMMITTED AGAISNT A CUSTOMER SHALL HONESTY AND INTEGRITY
CONSTITUTE SERIOUS MISCONDUCT AND SHALL BE METED THE
PENALTY OF DISMISSAL. ARTICLE 56 CORRUPTION/EXTORTION/BRIBERY

ARTICLE 54 IMPROPER BEHAVIOR WHEN TRAVELLING
When traveling in Company flights, whether on official business or on fringe
benefits, employees must be constantly aware of their special responsibility as
representatives of PAL. Employees are expected to observe the norms of correct
decorum and good conduct and behavior while traveling. Failure to act accordingly
Any employee who directly or indirectly OFFERS, demands, requests, solicits,
receives, or accepts any consideration, share, percentage, or commission for himself
or for another person in connection with any contract or transaction entered into by
the Company shall suffer the penalty of dismissal.
ARTICLE 57 FRAUD AGAINST THE COMPANY
Any employee who DELIBERATELY OR NEGLIGENTLY makes A FALSE
REPRESENTATION OF FACTS OR ANY KIND OF DECEPTION, OR a false or
fraudulent claim against the Company; or knowingly OR WITH GROSS
NEGLIGENCE, initiates or takes part in any action intended to defraud the
Company or to obtain a payment, benefit, or gain from the Company to which he
OR a THIRD PARTY is not entitled, or knowingly honors a forged signature for his
own benefit or that of another person; or ACCEPTS, SUBMITS OR gives dues
course or approval to a document knowing it to be false or erroneous, UNDER OR
OVERVALUED, shall suffer the penalty of dismissal.
ARTICLE 58 MISHANDLING/MISUSE OF COMPANY
FUNDS, PROPERTY OR RECORDS
ANY EMPLOYEE WHO KNOWINGLY, OR WILFULL OR THROUGH
NEGLIGENCE, MISUSES OR MISHANDLES COMPANY FUNDS,
EQUIPMENT, PROPERTY OR RECORDS SHALL BE PENALIZED AS
PERSCRIBED IN THE SCHEDUELOF PENALTIES UDNER ARTICLE 14 OF
THIS CODE, DEPENDING ON THE GRAVITY OF THE OFFENSE.
ARTICLE 59 THEFT, PILFERAGE, OR EMBEZZLEMENT
Any employee who removes or takes or attempts to remove or take from Company
premises, authority to do so, any funds, equipment, tools, materials, supplies,
accountable forms, or other properties owned by, leased to, or deposited with the
Company, regardless of the condition or value of such property, or who steals,
embezzles, OR DEFAULTS with Company funds, accountable forms or property or
the personal property of other employees shall be punished by dismissal.
The same penalty of dismissal shall be imposed upon any employee caught pilfering
or attempting to pilfer baggage, cargo, Company supplies, aircraft equipment, parts
or components of any kind, catering provisions and any other Company property OR
THAT OF A CUSTOMER, or who abets or gives occasion to pilferages.
ARTICLE 60 FALSIFICATION
FALSIFICATION OF A COMPANY DOCUMENT OR THE USE OF A
FALSIFIED DOCUMENT OR FALSE INFORMATION IS A SERIOUS
MISCONDUCT. Any employee who, shall falsify, conceal, or fabricate Company
documents or records, or enters false information on any official company
documents shall suffer the penalty of dismissal.
ACTS OF FALSIFICATION INCLUDE NOT ONLY TAMPERING WITH OR
ALTERING DOCUMENTS OR RECORDS, BUT ALSO THAT OF
REPRESENTING FALSELY OR DISTORTING, OR VIOLATING THE TRUTH.
ARTICLE 61 UNOFFICIAL USE OF COMPANY PROPERTY
AND FACILITIES
An employee who uses Company EQUIPMENT AND FACILITIES, including
AIRCRAFT SEAT(S), CARGO SPACE, BULLETIN BOARDS, pouch or
communication facilities, ETC., WITHOUT PROPER AUTHORITY OR FOR
ILLEGAL PURPOSES, shall be penalized AS PRESCRIBED IN THE SCHEDULE
OF PENALTIES UNDER ARTICLE 14 OF THIS CODE, depending on the gravity
and/or frequency of the offense.
ARTICLE 62 MISUSE OF COMPANY OR INTERLINE TRIP PASS,
REDUCED RATE AND NON-REVENUE/REBATED
SHIPMENT PRIVILEGES, OR BAGGAGE ALLOWANCES
Any employee who either gratuitously or for a consideration, gives his Company or
interline trip pass, or reduced rate privileges, or his non-revenue and rebated rate
privileges or BAGGAGE ALLOWANCES to any person other than the one in
whose favor it was issued, or otherwise deliberately or though gross negligence
makes it possible for the latter to make use of the same, or though deceit or
misrepresentation obtains such a trip pass, reduced rate or non-revenue/rebated
shipment privilege or BAGGAGE ALLOWANCES in favor of any person who
under Company policy or interline agreement is not entitled thereto, shall suffer the
penalty of dismissal. SHIPMENT OF CARGOES OF COMMERCIAL
QUANTITY SHALL BE CONSIDERED PRIMA-FACIE EVIDENCE OF
VIOLATION.
The penalty of SUSPENSION FOR ONE (1) YEAR shall be imposed upon the
employee if any of the foregoing acts are committed by his dependent. HOWEVER,
A REPETITION OF THE SAME OFFENSE SHALL BE METED THE PENALTY
OF DISMISSAL. It shall be the duty and responsibility of the employee to ensure
that all his dependents are fully aware of all rules regarding non-revenue or reduced
rate company or interline travel, as well as non-revenue or rebated shipments.
ARTICLE 63 IMPROPER USE OF SPACE ACCOMMODATION
Any employee who, being charged with the duties of handling flight reservations or
of checking passengers in for a flight, accommodates a non-ticketed person, holder
of a ticket, trip pass, or reduced rate ticket not otherwise entitled to be
accommodated on the flight, or any employee who knowingly loads or causes to be
loaded in Company aircraft goods not properly documented shall suffer the penalty
of dismissal.
The penalty of suspension from ten (10) to thirty (30) days shall be imposed upon
any employee who misrepresents the priority status of a trip pass or reduced rate
ticket (whether his own or that of his qualified dependents, or that of another
employee or the latter’s qualified dependents) to obtain accommodation on a certain
flight.
If the employee tampers with the pass or reduced rate ticket by placing false or
incorrect information or in any way substituting any entry thereon without proper
authority, the employee shall SUFFER THE PENALTY OF DISMISSAL.
ARTICLE 64 PERJUDY/FALSE TESTIMONY
Any employee who knowingly makes untruthful statements in an affidavit
subscribed before a competent person authorized to administer oath related to a
matter which is subject of an official inquiry or investigation conducted by the
Company, or who knowingly and deliberately gives false testimony OR OFFERS
FALSE EVIDENCE in an official inquiry or investigation conducted by the
Company shall suffer the penalty of dismissal.
ARTICLE 65 IRREGULARITIES CONNECTED WITH EMPLOYMENT
THE FOLLOWING IRREGULARITIES CONNECTED WITH EMPLOYMENT
ARE ACTSOF SERIOUS MISCONDCUT AND ARE PUNISHABLE WITH
DISMISSAL.
(A) Any employee who persuades, introduces, or influences an official into hiring an
applicant by concealing or misrepresenting the disqualification or lack of
qualification of the latter, or other wise deceives another official by falsely
representing that the applicant possesses the qualifications, training, or experience
for the given position REQUIRED FOR HIRING OR PROMOTION.
(B) ANY EMPLOYEE WHO FALSELY REPRESENTS HIS QUALIFICATION
REQUIRED FOR HIRING OR PROMOTION.
(C) ANY EMPLOYEE WHO LEAKS OUT TEST MATERIALS AND SCORING
KEYS, OR WHO MAKES USE OF SUCH LEAKED OUT TEST MATERIALS
AND SCORING KEYS.
ARTICLE 66 DISLOYALTY; ABETTING COMPETITORS
Any employee who acts or does anything in any manner contrary, or prejudice to the
interests of the Company’s competitors at the expense of the Company, or abets the
INFLICTION OF ADVERSE PUBLICITY, commercial, political, legal, or any
other form of harm or damage to the Company shall suffer the penalty of dismissal,
unless mitigating circumstances warrant a lesser penalty.
ARTICLE 67 CONFLICT OF INTEREST
It is the obligation of every employee to declare and divulge in writing to the
Company his own involvement in any conflict of interest with the Company. The
very existence of a conflict of interests situation is not in itself a punishable offense.
However, failure, whether deliberate or through neglect, to divulge the same to the
Company shall be punishable AS PRESCRIBED IN THE SCHEDULE OF
PENALTIES UNDER ARTICLE 14 OF THIS CODE, depending on the gravity of
the situation.
After an employee makes such a declaration, the Company shall determine whether
or not the actual or potential conflict of interest poses any danger to the Company.
If so, the Company shall take measures to protect itself from any harmful effects of
such conflict. Such measures shall include but shall not be limited to transferring the
employee to another position whereby the conflict shall cease to exist, or requiring
the employee to divest himself of all his interests which are in conflict with eh
Company’s, or otherwise to resign from the Company.
For purposes of this Code, a conflict of interest shall be deemed to exist where, in
general, a PAL official or employee has acquired a financial or other interest of a
personal nature in any business enterprises or transaction in which he may be called
upon to act (for example to approve, recommend action, make findings of fact) in a
manner detrimental to the interest of Philippine Airlines by reason of his personal
involvement in such business enterprise or transaction. Such personal interest is not
confined to the personal involvement of the officer or employee himself but may
also arise directly or indirectly as a result of the officer’s or employee’s family or
close personal relationship. “Family relationship” shall include the spouse or
relatives y consanguinity to the third degree or by affinity to the second degree.
“Close personal relationship” shall include close personal friendship or professional
employment by the officer or employee giving rise to or assuring free access to such
officer or employee.
BE INTERESTED SUCH OPPORTUNITY NEED NOT BE ONE WHICH
WOULD PLACE THE OFFICER OR EMPLOYEE OR HIS SURROGATE IN
COMPETITION WITH THE COMPANY.

While the following list of conflict of interests situations is not exhaustive, it

illustrates types of situations that fall within the purview of this Code.

1. Investments or other pecuniary or material interest, directorship, officership,

partnership, employment, consultancy, distributorship, or agency or sub-agency in
(a) supplier Company, (b) a contractor, (c) a sub-contractor, (d) a customer, (e) a
competitor, (f) a travel agent, cargo forwarder, or tour operator, (g) a creditor, or (h)
any other Company or enterprise that does business or seeks to do business with
PAL OR WHICH IS COMPETITION WITH THE BUSINESS OF PAL.

2. Borrowing money or property from, or otherwise incurring any debt to, any of
the Companies or enterprises enumerated in no. 1 above;

3. Solicitation or acceptance, whether directly or indirectly of payments,

commissions, rebates, services or gifts of more than nominal value, excessive
entertainment, or other improper or excessive favors from any of the Company or
enterprices enumerated in no. 1 above;

4. Trading in the stock or evidences of indebtedness of PAL;

5. Outside employment directorship, officership, partnership, consultancy,

distributorship, or agency in any Company or enterprise not included in no. 1 above
but which adversely affects the employee’s working efficiency and productivity in
PAL;

6. Revealing confidential information to outsider, or participating in civic,

professional, or other organizations that might involve divulging internal company
data;

7. Preempting the Company in the purchase of any asset which the Company is
interested in acquiring OR TAKING FOR ONE’S SELF, OR PASSING ON TO A
RELATIVE OR ASSOCIATE, ETC. A BUSINESS OPPORTUNITY WHICH
BECAME KNOWN OR AVAILABLE TO THE OFFICER OR EMPLOYEE
BECAUSE O FHIS POSITON IN THE COMPANY, WHERE SUCH BUSINESS
OPPORTUNITY IS ORDINARILY ONE IN WHICH THE COMPANY WOULD
 CHAPTER III
(DISCIPLINARY PROCEEDINGS)
RULES AND PROCEDURES
IN THE INVESTIGATION AND DISPOSITION
OF ADMINISTRATIVE CHARGE
THE FOLLOWING RULES AND PROCEDURES SHALL GOVERN THE
INVESTIGATION AND DISPOSITION OF ADMINISTRATIVE CHARGES
FILED AGIANST EMPLOYEES OF PHILIPPINES AIRLINES FOR
VIOLATION OF THE CODE OF DISCIPLINE AND OTHER RELATED
COMPANY REGULATIONS.
RULE 1
PRELIMINARY PROVISIONS
SECTION 1. COVERAGE
THESE RULES SHALL APPLY AS GUIDELINES IN ALL DISCIPLINARY
ACTIONS AGAINST EMPLOYEES FOR VIOLATION OF THE LABOR CODE
OF THE PHILIPPINES, THE CODE OF DISCIPLINE, AND OTHER COMPANY
OR DEPARTMENTAL RULES AND REGULATIONS. EXCEPT AS TO
MINOR OFFENSES AS DEFINED HEREIN DISCIPLINARY ACTION MAY
IMMEDIATELY BE TAKEN BY THE IMMEDIATE SUPERIOR OF THE
OFFENDER BASED ON EXTANT EVIDENCE WITHOUT SECURING PRIOR
CLEARANCE, SUBJECT HOWEVER TO THE PROVISIONS OF RULE IX C,
CHAPTER III.
THE EMPLOYEE MUST FIRST BE REQUIRED TO “EXPLAIN
WHY” WHERE THIS CODE REUIRES THE DETERMINATION WHETHER
AN ACT IS JUSTIFIED OR UNJUSTIFIED, REASONABLE OR
UNREASONABLE, WITH OR WITHOUT CAUSE, PERMISSION OR LEAVE.
SECTION 2. DISCIPLINARY AND INVESTIGATING AUTHORITY
ALL VIOLATIONS COVERED AOVE SHALL BE INVESTIGATED AS SOON
AS POSSIBLE BY THE DEPARTMENT HEDS CONCERNED, WHO SHALL
BE ASSISTED BY THE PAL DISCIPLINARY BOARD IN SUCH CASS AS
MAY BE DETERMINED BY THE LATTER. THE RESPONSIBILITIES,
POWERS, AND AUTHORITIES GRANTED TO A DEPARTMENT HEAD MAY
BE DELEGATED TO A COMPANY OFFICIAL WITHIN THE DEPARTMENT
OR, IN EXCEPTIONAL CASES, OUTSIDE THE DEPARTMENT WITH EH
CONSENT OF THE PROPER DEPARTMENT HEAD.
AS IT MAY DETERMINE THE PAL DISCIPLINARY BOARD SHALL
INVESTIGATE AND HEAR VERY SERIOUS OFFENSES SUCH AS FRAUD
AGAINST THE COMPANY, THEFT OF COMPNAY PROPERTY,
SMUGGLING OR OTHER ANALOGOUS OFFENSES, INCLUDING SEXUAL
HARASSMENT. DISCIPLINE SHALL HOWERVER, REMAIN WITH THE
DEPARTMENT HEADS CONCERNED.
IN THOSE CASES NOT TAKEN OVER BY THE PAL DISCIPLINARY BOARD,
THE DEPARTMENT HEAD MAY DELEGATE THE INVESTIGATION OF AN
ADMINISTRARIVE CHARGE TO JUST ONE OFFICIAL. BUT WHEN
JUSTIFIED BY THE NATURE AND COMPLEXITY OF THE CASE WHICH
REUQIRES THE EXPERTISE OF OTHER DEPARTMENTS AND AFTER
CONSULAITON WITH THE LEGAL OR HUMAN RESOURCES
DEPARTMENTS INVESTIGATION BY A PANEL OR COMMITTEE MAY BE
ALLOWED.
LABOR LITIGATION SHALL MONITOR THE PROPER CONDUCT AND
TIMELY RESULTS OF ADMINISTRATIVE INVESTIGATIONS.
VIOLATIONS COMMITED AT THE DEPARTMENT HEAD LEVEL OR
ABOVE SHALL BE ACTED UPON BY THE PAL BOARD OF DIRECTORS.
RULE II
GRAOUNDS FOR DISCIPLINARY ACTION
THE GROUNDS FOR THE ADMINISTRATIVE CHARGE SHALL BE IN
ACCORDANCE WITH THE PROVISIONS OF THE LABOR CODE OF THE
PHILIPPINES, THE CODE OF DISCIPLINE AND OTHER COMPANY OR
DEPARTMENTAL RULES AND REGULATIONS.
 RULE III
THE CHARGE SHALL SPECIFY THE MANNER, PARTICULAR ACTS OR
FACT-FINDING INQUIRY OMISSIONS, DATE AND TIME CONSTITUTING THE
INFRACTION/OFFENSE. THE CHARGE SHALL REQUIRE THE
RESPONDENT TO SIGNIFY IN WRITING WHETHER OR NOT HE DESIRES
UPON RECEIPT OF A WRITTEN (SINGED OR UNSIGNED) OR VERBAL TO HAVE A HEARING. THE CHARGE SHALL BE ACCOMPANIED BY
REPORT THAT A VIOLATION OF COMPANY REGULATIONS HAS BEEN SWORN STATEMENTS OF WITNESSES AND/OR OFFICAL REPORTS,
COMMITTED, IS BEING COMMITTED, OR IS ABOUT TO BE COMMITTED, DOCUMENTS OR OTHER SUPPORTING PAPERS. TO ENSURE
THE DEPARTMENT HEAD CONCERNED, WITH THE HELP OF THE CONSISTENCY IN APPLICATION AND THE APPROPRIATENESS OF THE
SAFETY AND SECURITY DEPARTMENT (S&SD), INTERNAL ADUDIT AND CHARGE, PROPER IN CONSULTATION WITH LABOR LITIGATION,
OTHER DEPARTMENTS, WHENEVER NEEDED, SHALL IMMEDIATELY SHOULD BE MADE.
CAUSE A FACT-FINDING INQUIRY TO BE CONDUCTED. FOR THE
ABOVE PURPOSE, THE DEPARTMET HEAD MAY REQUIRE WITNESSES
TO SUBMIT THEMSELVES FOR WRITTEN INTERVIEW, THE SAFETY AND RULE V
SECURITY DEPARTMENT (S&SD) AND THE INTERNAL AUDIT AND
CONTROL SHALL ASSIST IN TAKING AND IN PREPARING SWORN PREVENTIVE SUSPENSION
STATEMENTS OF WITNESSES, AND IN GATHERING AND COLLATING
SUPPORTING DOCUMENTS AND DATA.
SECTION 1. GROUNDS

RULE IV UPON ISSUANCE OF THE ADMINSITRATIVE CHARGE, THE

DEPARTMENT HEAD, UPON PRIOR CONSULTATION WITH THE LABOR
ADMINISTRATIVE CHARGE LITIGATION, MAY PLACE THE EMPLOYEE CONCERNED ON
PREVENTIVE SUSPENSION FOR THIRTY (30) DAYS IF HIS CONTINUED
PRESENCE WITHIN COMPANY PREMISES OR CONTINUED
SECTION 1. HOW INITIATED PARTICIPATION IN COMPANY OPERATIONS POSES A SERIOUS AND
IMMINENT THREAT TO THE LIFE OR PROPERTY OF THE EMPLOYEE OR
AN ADMINISTRATIVE CHARGE MAY BE INITIATED BY THE FILING OF HIS CO-EMPLOYEE. IF THE EMPLOYEE CONCERNED, HOWEVER, IS
WITH THE DEPARTMENT HEAD OF A WRITTEN REPORT OR CAUGHT IN THE ACT OF COMMITTING AN OFFENSE AMOUNTING TO A
COMPLAINT, OR AFFIDVIT SO WITNESSES AND/OR OTHER EVIDENCE CRIME, THE DEPARTMENT HEAD MAY MOTU PROPRIO IMMEDIATELY
IN SUPPORT OF THE CHARGE. IF THE DEPARTMENT HEAD FINDS THAT PLACE HIM UNDER PREVENTIVE SUSPENSION PENDING
THERE IS PROABLE CUSE FOR CHARGING THE EMPLOYEE, HE SHALL ADMINISTRATIVE INVESTIGATION.
ISSUE THE ADMINISTRATIVE CHARGE AGISNT THE EMPLOYEE
CONCERNED, COPY FURISHED THE UNION OF WHICH THE EMPLOYEE SECTION 2. SALARY AND BENEFITS OF RESPONDENT
IS A MEMBER. ON THE OTHER HAND, IF THE DEPARTMENT HEAD PENDING SUSPENSION
FAILS OR REFUSES TO FILE OR AND ADMINISTRATIVE CHARGE DUE
TO HIS BELIEF THAT THERE IS NO PROBALE CUASE, SUCH DECISION AN EMPLOYEE UNDER PREVENTIVE SUSPENSION SHALL NOT RECEIVE
MAY STILL BE REVIEWED BY HIS CROUP HEAD OR THE LATTER’S ANY SALARY AND BENEFITS DURING THE THIRTY-DAY PREVENTIVE
DESIGANTED REPRESENTATIVE. SUSPENSION. HOWEVER, IF THE INVESTIGATION OF THE
ADMINISTRATIVE CHARGE IS NOT FINISHED WITHIN THIRTY (30)
SECTION 2. FORMS OF ADMINISTRATIVE CHARGES DAYS, THROUGH NO FAULT OF THE EMPLOYEE, THE DEPARTMENT
HEAD, IN CONSULTATION WITH LABOR LITIGATION, MAY ACTUALLY
REINSTATE HIM TO A SUBSTANTIALLY EQUIVALENT POSITON, OR
MERELY REINSTATE HIM IN THE PAYROLL PURSUANT TO LAW,
DEPENDING ON THE CONTINUED EXISTENCE OF THE GROUND FOR
PREVENTIVE SUSPENSION.
ANY DELAY IN THE INVESTIGATION, ATTRIBUTABLE TO THE
EMPLOYEE, DURING THE 30-DAY PREVENTIVE SUSPENSION, SHALL
NOT BE CONSIDERED IN RECKONING SUCH 30-DAY PERIOD FOR
PURPOSES OF REINSTATEMENT.
RULE VI
ANSWER
THE EMPLOYEE CHARGED ADMINISTRATIVELY SHALL HAVE A
PERIOD OF TEN (10) CALENDAR DAYS FROM RECEIPT OF THE CHARGE
WITHIN WHICH TO FILE HIS SWORN WRITTEN ANSWER AND OTHER
SUPPORTING COUNTER-AFFIDAVITS/DOCUMENTS.
RULE VII
HEARING AND RIGHT TO
REPRESENTATION AND ASSISTANCE
UNLESS THE HEARING IS CLEARLY WAIED BY THE EMPLOYEE, THE
ADMINISTRATIVE CHARGE MUST BE SET FOR HEARING, WHICH
SHOULD BE SUMMARY IN NATURE AND SHOULD BE HELD WITHIN
FIFTEEN (15) DAYS FROM RECEIPT OF THE ANSWER OF THE
EXPIRATION OF THE DATE TO ANSWER. THE EMPLOYEE CHARGED
ADMINISTRATIVELY SHALL BE GIVEN THE AMPLE OPPORTUNITY TO
BE HEARD AND TO DEFEND HIMSELF, WITH THE ASSISTANCE OF HIS
REPRESENTATIVE IF HE SO DESIRES. HOWEVER, THE PARTICIPATION
OR PRESENCE OF SUCH REPRESENTATIVE SHALL NOT BE ALLOWED
TO UNDULY DELAY OR IN ANY WAY DETRACT FROM THE SUMMARY
NATURE OF THE PROCEEDINGS. THEHEARING SHALL E SUMMARY
INNATURE, CONDUCTED THRUOGH CLARIFICATORY QUESTIONS
PROPOUNDED BY OR COURSED THROUGH THE INVESTIGATION OR
PANEL OF INVESTIGATORS, AND SHALL BE LIMITED TO ISSUES OF
FACTS NOT CLEAR OR ASCERTAINABLE FROM THE EVIDENCE ON
HAND.
AS MUCH AS POSSIBLE, THE INVESTIGATION MUST BE CONLCUDED
WITHIN FIFTEEN (15) WORKING DAYS FROM INCEPTIONOF THE
HEARING, UNLESS THE DELAY IS ATTRIBUTABLE TO THE
RESPONDENT.
RULE VIII
REPORT AND EVALUATION
OF EVIDENCE
THE INVESTIGATING OFFICIAL/S SHAL SUBMIT HIS/THEIR REPORT TO
THE DEPARTMENT HEAD WITHIN TEN (10) WORKING DAYS AFTER
TERMINATION OF THE HEARING. THE REPORT SHALL NOT MAKE ANY
RECOMMENDATIONS ON SPECIFIC PENALTIES AND SHALL CONFINE
ITSELF TO THE APPRECIATION OF FACTS ADDUCED DURING THE
INVESTIGATION AND MUST INCLUDE AS ATTCHMENTS THE SWORN
STATEMENTS, REPORTS, CERTIFICATIONS AND THEIR DOCUMENTARY
EVIDENCE RELATIVE TO THE CASE.
ALL DOCUMENTARY EVIDENCE AS WELL AS SWORN STATEMENTS
SUBMITTED TO THE DEPARTMENT HEAD FOR THE CMOPANY AND BY
THE EMPLOYEE AND THEIR RESPECTIVE WITNESSES SHALL
CONSTITUTE THE ENTIRE EVIDENCE AND SHALL FORM PART OF THE
RECORDS OF THE CASE WHICH SHALL BE EVALUATED AND
CONSIDERED BY THE DEPARTMENT HEAD IN MAKING THE DECISION.
FINDINGS OF FACTS AND EVALUATION OF CASES CONDUCTED BY THE
PAL DISCIPLINARY BOARD SHALL BE ENDORSED TO THE
DEPARTMENT HEAD CONCERNED FOR HIS IMPLEMENTATION.
 RULE IX
RESOLUTION/DECISION
AS MUCH AS POSSIBLE, A DISCIPLINARY CHARGE SHOULD BE
RESOLVED WTIHIN TEN (10) DAYS FROM RECIEPT OF THE FORMAL
INVESTIGATION REPORT. FOR PURPOSES OF IMPERSONAL AND
UNIFORM IMPOSITION OF PENALTIES, THE DEPARTMENT HEAD SHALL
CONSULT LABOR LITIGATION BEFORE ISSUING THE
RESOLUTION/DECISION ON DISCIPLINARY ACTIONS AND SHALL
SERVE THE EMPLOYEE CONEREND (AND THE UNION) HIS RESOLUTION
IN WRITING STATING CLEARLY THE REASONS THEREFORE. A COPY OF
THE RESOLUTION SHALL BE FURNISHED LABOR LITIGATION.
A. WHERE THE PENALTY IMPOSABLE IS TERMINATION OR
DISMISSAL FOR CAUSE, THE DEPARTMENT HEAD, BEFORE FINALIZING
SUCH ACTION MUST FIRST VALIDATE THE PROPRIETY OF THE
SANCTION WITH LABOR LITIGATION AND THEREAFTER ENDORSE THE
RECOMMENDED PENALTY TO THE GROUP HEAD FOR APPROVAL.
EMPLOYEES UNDER SUCH ADMINISTRATIVE CHARGE SHALL BE
NOTIFIED OF THE FINAL RESOLUTION/DECISION OF THEIR CASE ONLY
WHEN TEHSE REQUISITE CONDITIONS HAVE BEEN MET.
B. IN CASE OF DISCIPLINARY SANCTIONS SHORT OF
DISMISSAL (E.G., SUSPENSION FOR (4) DAYS OR OVER), IT IS THE SOLE
RESPONSIBILITY OF THE DEPARTMENT HEADS TO ISSUE SUCH
SANCTIONS. TO ENSURE CONSISTENCY WHEN IMPLEMENTING SUCH
IN THE VARIOUS DEPARTMENT, DISCIPLINARY ACTIONS SHALL BE
CARRIED OUT IN CONSULTATION WITH THE LABOR LITIGATION AND
FOLLOWING THE REQUIREMENTS OF THESE RULES AND PROCEDURES.
C. IN CASES OF MINOR OFFENSES WHERE THE PENALTY
SPECIFIED IN THE CODE IS ONLY WARNING, REPRIMAND OR
SUSPENSION FOR ONE (1) TO THREE (3) DAYS AND THE REPORT OF
VIOLATION IS FULLY SUPPORTED BY THE EVIDENCE PRESENTED TO
THE DISCIPLINARY ACTION MAY E TAKEN IMMEDIATELY BY THE
EMPLOYEE’S IMMEDIATE SUPERIOR IF THE EMPLOYEE’S REPLY TO AN
“EXPLAIN-WHY” MEMO IS UNSATISFACTORY. NEVERTHELESS, THE
WRITTEN DISCIPLINARY ACTION REPORT SHALL SPECIFICALLY STATE
THE REASON/S FOR THE ACTION TAKEN AND INCLUDED IN A
CONSOLIDATED SEMI-MONTHLY VIOLATION REOPRT SUMMARY SENT
TO LABOR LITIGATION SUB-DEPARTMENT.
RULE X
REVIEW OF DECISION
THE DECISION OF THE DEPARTMENT HEAD MAY BE REVIEWED
THROUGH APPEAL OR THOUGH THE GRIEVANCE MACHINERY. THE
DECISION OF THE DEPARTMENT HEAD MAYB E REVIEWED BY HIS
GROUP HEAD MOTU PROPRIO, OR THROUGH APPEAL BY THE PARTIES
CONCERNED WITHIN FIVE (5) DAYS FROM NOTICE OF DECISION.
WITHIN THE SAEM PERIOD, THE GROUP HEAD MAY ANNOUNCED HIS
DECISION TO REVIEW MOTU PROPRIO THE DEPARTMENT HEAD’S
ACTION. WHETHER THE REVIEW IS MOTU PROPRIO OR DUE TO AN
APPEAL, AT THE DISCRETION OF THE GROUP HEAD, ALL INTERESTED
PARTIES MAY BE GIVEN THE OPPORTUNITY TO SUBMIT MEMORANDA
WITHIN FIVE (5) DAYS FROM NOTICE. THE GROUP HEAD SHALL
ENDEAVOR TO RELEASE HIS DECISION WITHIN TEN (10) FROM
SUBMISSION OF MEMORANDA IF REUIRED OR THE EXPIRY OF THE
PERIOD FROM THE FILING THEREFORE.
WITHIN THE SAME PERIOD OF FIVE (5) DAYS FROM NOTICE FO THE
DECISION OF THE GROUP HEAD, THE COMPANY PRESIDENT MAY
DECIDE TO REVIEW THE DECISION OF THE GROUP HEAD IF IT IS
SHOWN THAT UNDER THE CIRCUMSTANCES, THE DECISION IS
GROSSLY OR MANIFESTLY ERRONEOUS.
RULE XI
IMPLEMENTATION OF FINAL DECISION
AND REPORTING REQUIREMENTS
BEORE IMPLEMENTING FINAL DECISIONS ON DISCIPLINARY ACTIONS,
THE FOLLOWING REPORTING REQUIREMENTS MUST BE COMPLIED
WITH.
1). PAYROLL AND TIMEKEEPING MUST IMMEDIATELY BE OFFICIALLY
NOTIFIED ABOUT SUCH DISCIPLINARY ACTIONS INVOLVING
SUSPENSIONS AND DISMISSALS, TRANSFERS AND DEMOTINOS.
2). SECURITY SUB-DEPARTMENT MUST IMMEDIATELY E OFFICIALLY
NOTIFIED ABOUT PERSONNEL OR DISCIPLINARY ACTIONS
WINVOLVING RESIGNATIONS. DISMISSALS OR SUSPENSIONS FOR I.D.
CARD RETRIEVAL, ETC.
3). MEDICAL SUB-DEPARTMENT MSUT BE NOTIFIED BEFOREHAND OF
SUSPENSION AND SEPARATIONS FROM THE SERVCIE (INCLUDING
RESIGNATIONS) FOR CUT-OFF OF MEDICAL/PHARMACY SERVICES.
4). LIKEWISE, COPIES OF ALL DISCIPLINARY ACTIONS TAKEN MUST BE
IMMEDIATELY FORWARDED TO BENEFITS ADMINISTRATION/HRD FOR
INCLUSION IN THE EMPLOYEE’S 201 FILES.
5). THE LABOR LITIGATION SUB-DEPARTMENT MUST BE COPY-
FURNISHED WITH NOTICES OF SEPARATIONS/TERMINATINOS FOR THE
LATTER’S SUBMISSION OF THE REQUIRED MONTHLY REPORTS OF
SEPARATIONS/TERMINATIONS TO THE DEPARTMENT OF LABOR AND
EMPLOYMENT.
CHAPTER IV
MISCELLANEOUS PROVISIONS
ARTICLE 68 TRANSITORY PROVISIONS
a) Pending Cases
All cases in regard to which investigation has commenced and is pending at the time
of the effectivity of this Code shall be governed by the procedures in effect before
such effectivity.
b) Cases Not Yet Investigated
All cases pending at the time of the effectivity of this Code but without an
investigation initiated as yet shall be governed by the procedures established in this
Code.
ARTICLE 69 SEPARABILITY CLAUSE
Any declarations by any competent authority that any part of this Code is null and
void shall not invalidate or render ineffective the other provisions of this Code
which shall remain in full force and effect.
ARTICLE 70 AMENDMENT
The Company reserves the right to add, amend, modify, adjust, delete, repeal,
suspend in general or in particular, or otherwise change from time to time any and
all provisions, herein, when in its opinion, attending circumstances or prevailing
conditions so warrant.
ARTICLE 71 NOTES ON THE 1995 CODE REVISIONS
This Code of Discipline (1995 Revision) is, in large part, a REVISED
codification of existing Company rules and regulations. The Code is intended to
reiterate or, whenever appropriate, clarify rules and regulations which are already in
effect. Some rules have been reviewed and, when deemed necessary, related or
amended to reflect changing circumstances or the experience of years of actual
implementation. Because a Code of this kind must be dynamic and responsive to
continuing challenges of our corporate life, a number of new rules have been INDEX OF CONTENTS
adopted to give substance and meaning to the Preamble to the Code.

This IS A REVISION OF THE Code of Discipline of March 1995. But the Abandonment of Post 18
specification of this effective date should not be taken to mean that no prescribed Abetting Competitors 31
code of Conduct or system of discipline was in force within the Company prior to Absence without Official leave 17
that date. On the contrary, discipline has always been a key element in the survival, Abuse of Authority 19
profitability, and growth of this Company. This Code simply seeks to relate, as Anti-Customer Offenses 12
clearly as possible, the Company’s philosophy of discipline to its overall corporate Acceptance of this Code & General Norms 11
mission, and to present specific offenses and penalties in a more unified and logical Administrative Charge 36
manner. The treatment of pending disciplinary cases is specifically provided for the Administrative Charge, How Initiated 36
Code. Administrative Charge, Rules & Procedures in the Disposition of 36 et seq.
Adverse Publicity 24
ARTICLE 72 EFFECTIVITY Aggravating Circumstances 5
Alcoholism 25
This REVISED CODE shall take effect on April 1, 1995. Alternative Circumstances 5
Amendment of Code 41
Answer to Charge 37
Anti-Company Offenses 23
Anti-Customer Offenses 12
Anti-employee Offenses 20
(ORIGINAL SIGNED) Anti-Teamwork Offenses 19
JOSE ANTONIO GARCIA Assault 26
President and Chief Operating Officer Assistance, Right 37

Baggage allowances, Misuse of 30

Benefits, Administration Submission to 40
Issued in metro Manila on this 1st day of MARCH Nineteen Hundred and Ninety Bribery/Extortion 28
Five.
Career Improvements, Effect of Offenses on 8
Coercion 27
Commission of a Crime 9
Commission, Refusal or Failure to 20
Company, Fraud Against the 28
Company Documents, Falsification of 29
Company Property, Misuse/Unofficial Use of 30
Compensation, Effects of Offenses on 8
Concerted Action 10
Condonation of Offense 10
Conduct, Common Offenses Against 24
Confidential Information, Revealing 33
 INDEX OF CONTENTS INDEX OF CONTENTS

Conflict of Interests 32 Facilities, Unofficial Use of Company 30

Conspiracy 10 Fact-Finding Inquiry 35
Conviction 24 Failure on the Job 14
Cooperation, Withholding of 19 Failure to Provide Necessary Supplies 12
Corporate Values, Five Basic 4 Failure to Punch/Swipe Time Card 15
Corruption/Extortion/Bribery 28 Failure to Report 11
Customers, Mishandling of 12 False Information 19
Customers, Offenses Against 12 Falsification 29
Fighting in Company Premises 27
Damage or Disruption 23 Fraud Against the Company 9
Decision, Review of 39
Decision, Implementation and Reporting; Requiring on 40 Gambling 25
Defense, Right to 7 Good Name of the Company, Offenses Against 23
Definition of Terms 3 Good Personal Behavior, Common Offenses Against 24
Delay, Culpable 22 Gravity of Offense 5
Disciplinary Action, Grounds for, Coverage of, Reports on 34,35,36 Gross and Habitual Neglect/Goss Negligence 9
Disciplinary Authority 34 Guidelines, Administration of Discipline 3
Discourteous Behavior 26
Discourtesy Towards Customers 12 Habitual, Definition of 6
Discrimination Treatment 13 Hearing, Right to Honesty, Common Offenses Against 7,37
Disloyalty 31 Honesty, Common Offenses Against 28
Disobedience, Willful 20 Horseplaying 26
Disorderly Behavior 26
Disrespect for Authority 19 Identification Cards, Failure of Employee to Wear Prescribed 13
Disruption, Damage or 23 Illegal Acts 11
Drugs, Prohibited 25 Immoral Behavior 26
Drunkenness/Alcoholism 25 Imposition of Discipline, Impersonal 6
Improper Behavior when Travelling 27
Effectivity of Code 42 Inefficiency & Waste 15
Embezzlement/Theft/Pilferage 29 Influence Peddling 22
Employee, Definition of 5,8 Influence Solicitation 21
Employee, Responsibility of 7 Information, Concealing, Withholding, Advance/Improper Release of 23,24
Employee Covered 8 Injuring Company Reputation 23
Employee Service, Erroneous Handling of 20 Instigation 11
Employment Irregularities Connected With 31 Insubordination/Willful Disobedience 20
Evidence, Evaluation of and Report on 38 Integrity, Common Offenses Against 28
Extortion/Bribery 28 Intervention in Administrative Case 22
 INDEX OF CONTENTS INDEX OF CONTENTS

Intoxication/Drunkenness 25 Penalties, Schedule of 9

Intrigue 20 Pending Cases; Rules Applicable to 41
Investigating Authority 34 Period, To File Answer 37
Investigation, Culpable Delay in 22 Perjury/False Testimony 31
Philosophy of Discipline 1
Job Performance Standards, Offenses Against 14 Pilferage/Theft/Embezzlement; Format of Charge 29
Preamble to the Code 1
Labor Litigation Consultation and Clearance 35,36,37 Prescribed Uniforms, Failure of Employee to Wear 13
38,39,40 Preventive Suspension, Grounds; Effect 36,37
Lack of Information 12 Property, Misuse/Unofficial Use of Company 30
Law, Violation of 25
Loitering and Abandonment of Post 18 Quality Standards, Non-observance of 14

Malingering 18 Reduce Rate Privileges, Misuse of 30

Maltreating or Abusing a Customer 12,13 Representation, Right to Hearing and 7,30
Maltreatment of Superiors, Colleagues & Subordinates 20 Reporting Requirements on Final Decisions 40
Medical Sub-Department, Report to 40 Reputation, Offenses Against 23
Minor Offenses, Definition/Action on 6,31,34 Resolution/Decision on Disciplinary Action 38,39,40
Miscellaneous Provisions 41 Responsibility of Superiors, Employees 7
Misconduct, Penalties for 11
Mishandling of Customers 12 Safety, Violation of 23
Mishandling/Misuse of Company Funds/Property 29 Salary & Benefits of Respondent Pending Suspension 37
Misinformation or Lack of Information 12 Schedule of Penalties 9
Misuse of Company Funds, Property, Records 29 Security, Copy Furnish 40
Misuse of Trip Pass, Rebates 30 Security, Breach of 23
Mitigating Circumstances, Definition of 5 Security of Company, Offenses Against 23
Separability Clause 41
Neglect of Customer 12 Separate Civil or Criminal Action 8
Neglect of Employee Rights 21 Serious Misconduct 9
Negligence, Gross 9 Sexual Harassment 26
Non-Revenue/Rebated Shipment Privileges, Misuse of 30 Single Penalty 6
Notice of Administrative Charge 36 Sleeping While on Duty 18
Smoke-Free Zones, Smoking in Prohibited Areas 27
Offenses, Write-off of 10 Space Accommodation, Improper Use of 30
Statement of Policy 3
PAL Disciplinary Board 34,35 Subordinate, Definition of 5
Payroll & Timekeeping; Report to 40 Summary Proceedings 6
 INDEX OF CONTENTS

Superior, Definition of 5
Superior’s Inaction 11
Suspension, Definition of 5

Tardiness 16
Teamwork, Participation & Communication 4
Theft/Pilferage/Embezzlement 29
Threats/Coercion 27
Time Card Irregularities/Timekeeping Violations 15
Timeliness of Proceedings 6
Time-Management, Productivity & Cost-Effectiveness 4
Tolerance or Condonation of Offense 10
Total Passenger Care 4
Total Personnel Care 4
Total Personnel Care, Offenses against 20
Total Personnel Commitment… 4
TPC 1,2,3,4, and 5 Definitions 4
Transitory Provisions 41
Travelling, Improper Behavior While 27
Trip Pass, Misuse of Company Interline 30

Undertime, Unauthorized 17
Undue Favors 21
Uniformity of Penalties 6
Uniforms, Failure of Employee to Wear Prescribed 13

Violation of Law/Government Regulations 25

Violence, Violent Act 26,27

Waivers of Penalties, No 7
Waste, Inefficiency and 15
Wasting Time 14
Well-being, Offenses Against Good Name, Reputation 23
Willful Breach of Trust 9
Willful Disobedience/Insubordination 9,20
Withholding Information 19
Write-off of Offenses 10