Sample Policy

COMPANY POLICY
MISCONDUCT & CONSEQUENCE MANAGEMENT

Purpose This policy spells out spell out the behaviour and actions which are not tolerated by the Company in order
to promote a workplace that is safe, orderly and harmonious. It is also intended to correct and improve the
standard of conduct of an employee where appropriate or necessary and to ensure that all employees are
treated fairly, equally and consistently.
Scope Applicable to all permanent and contract employees employed by the Company in all types of work pattern
except shift work.
Revision date XXXXX
Issued by HR Department
Approved by Managing Director

Contents

Definition of misconduct

▪ Misconduct is an act or omission which violates or affects the employee’s expressed or implied obligations
to the Company.
▪ The misconduct must be related to the employees’ duties or work or his position as an employee of the
Company both within the Company’s premises or the outside.
▪ Act or behave in a way that affects the Company’s image or reputation both directly or indirectly outside of
the Company’s premise shall be construed as misconduct.

Types of misconduct

1. Tardiness, punctuality, attendance and mannerism at work

▪ Tardiness at work or at keeping appointments including being late to meetings without prior
notification.
▪ Reporting to work late.
▪ Absent to work or absence from authorized workplace during work hours.
▪ Leaving the Company premises during working hours without approval from Immediate Superior.
▪ Taking breaks that are longer than authorised.
▪ Failure or refusal to attend scheduled meetings, trainings, workshops or any type of engagements
without apologies or without sending an authorised representative (where applicable).
▪ Not turning up for overtime work after having agreed to do so.
▪ Playing games on computer or mobile device during work hours.
▪ Behaving in a boisterous manner that disturbs the work environment during work hours.
▪ Engaging in horse play with others during work hours.
▪ Sleeping while on duty.
▪ Failure to scan at the guardhouse/attendance system and tailgating.

2. Negligence of duty and conditions of employment

▪ Negligence or gross negligence of duty including from not understanding an instruction irrespective
whether it has resulted in a loss to the Company or otherwise.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
3. Safety and security
▪ Fail to adhere to safety rules and/or not using personal protective equipment according to
prescribed manner.
▪ Gross disregard of safety or security measures.
▪ Parking vehicles outside the designated areas or general parking offences such as double parking
or haphazard parking within the Company’s premises or other designated areas provided by the
Company.
▪ Non-compliance to security procedures or fail to obey the instruction of security personnel.
▪ Driving vehicles without due care and attention within Company premises.
▪ Late in reporting workplace accident and other accidents that should be reported to relevant
authorities to immediate superior.
▪ Tampering with safety devices, fittings or machinery with or without mal-intent.

4. Dressing and uniforms

▪ Not wearing uniform as required by the Company.
▪ Not adhering to Company’s dress code rules/policy.
▪ Putting additional emblems or markings on the uniforms worn.

5. Handling and preservation of Company property/environment

▪ Vandalise or writing graffiti on Company property.
▪ Refusal to return keys, badges or any other Company property when directed.
▪ Unauthorized removal, stealing Company property or aiding, abetting or condoning such act
(including borrowing without prior approval).
▪ Littering within Company premises.
▪ Unauthorized removal or detachment of notices, circulars or documents.
▪ Wilful damage of Company property including the building with its fittings, machinery, completed or
partially completed products of the Company, raw materials and Company vehicles.

6. Prohibited activities
▪ Involvement in money lending within Company premises.
▪ Carrying out prohibited union activities within Company premises which are against Company rules
or code of industrial harmony.
▪ Conducting missionary or any religious activities within Company premises without approval of the
Company.
▪ Conducting political activities within Company premises or bring Company’s image to disrepute in
political events outside of the Company premises.
▪ Participation in illegal strikes or abetting, inciting, instigating or acting in furtherance thereof. Wilful
slowing down of work or instigating others to do so shall also be construed as illegal strikes.
▪ Interference with the work of other employees.
▪ Gambling within Company premises.

7. Liquor and drugs

▪ Bringing in or consuming or being under the influence of liquor or being insobriety during work.
▪ Bringing in or consuming or being under the influence of dangerous or prohibited drugs during
work.
▪ Getting drunk during official Company functions.

8. Sideline work, conflict of interest and personal activities

▪ Engaging in private and personal businesses or trades within the Company premises.
▪ Failure to declare Sideline activities or personal business.
▪ Engage in dual employment.
▪ Holding non-work related meetings within Company premises without prior permission of the
relevant approving authority.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
9. Insubordination and refusal to follow instructions
▪ Refusal to go for medical examinations when directed to by the Company.
▪ Refusal to produce documents, certificates of qualification and photographs when directed for
official Company purposes.
▪ Refusal to accept transfer orders.
▪ Insubordination by refusing to carry out or accept a rightful order from a superior.
▪ Insubordination by defying of persons in authority whether such persons are the direct superior or
otherwise.
▪ Refusal to sign acceptance or acknowledgement when required by Company.

10. Sexual harassment, behaviour and language used

▪ Using foul or abusive language or making indecent gestures.
▪ Sexual harassment which includes sending of pornographic material to other employees,
regardless of the method of sending.
▪ Display improper or riotous conduct or indecent or disorderly behaviour.
▪ Use of foul or offensive language and verbal abuse to any employees, vendors, visitors or any
others that the Company comes in contact with.
▪ Engaging in immoral activity that brings disrepute to the employees concerned and to the
Company at large.
▪ Writing and distributing poison pen letters.
▪ Distribution or exhibition of newspaper articles, hand bills, pamphlets or posters within Company
premises without prior permission of the relevant approving authority.
▪ Rude or improper behaviour towards members of public or Company stakeholders.
▪ Inciting racial, political or religious trouble within Company premises which includes e-mailing
information that is racially, politically or religiously sensitive in content.
▪ Defamation of the Company and its officials or employees.
▪ Aiding, abetting, conspiring, instigating, inciting or condoning any misconduct.

11. Improper usage of company’s IT facilities and assets and improper usage of media which includes but
not limited to the below;
▪ Using Company’s Notebook or PC for personal use.
▪ Installing or downloading software without approval from the Company.
▪ Usage of personal thumb drive or external storage devices on any Company Notebook, Desktop
PCs and any other machineries or assets.
▪ Recording and capturing images of conversations, meetings or events without approval from the
organizer or facilitator.

12. Improper behaviour on Social Media

▪ Posting or discussing or making disparaging opinion or gestures or otherwise unwarranted and
unwanted comments on any Company related topics that could embarrass or damage the
Company’s reputation or that of its employees, clients, any other stakeholders or member of the
public in social media or in the internet or any electronic media.

13. Fraud, dishonesty, bribery and breach of trust

▪ Making false reports or declaring knowingly or failed to verify prior to submission.
▪ Falsifying, destroying or removal of Company records.
▪ Manipulation of Company process/documentation.
▪ Fraud or dishonesty while discharging duty or manipulate in order to deceive Company.
▪ Making false payment claims or false entries with the intention to cheat the Company.
▪ Requesting or accepting bribes, favours, kickbacks or commission from the Company’s suppliers or
customers, or any other party.
▪ Soliciting donations of any kind from suppliers.
▪ Misappropriation of Company funds and criminal breach of trust.
▪ Cheating or using manipulative ways on attendance records in whatsoever manner in order to
deceive the Company.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
 14. Violent and dangerous behaviour
▪ Being violent, abusing, assaulting or threatening to assault, injure or harm any employees,
customers or members of the public within or outside Company premises as well as behaviour
which provokes violence.
▪ Extortion or attempted extortion.
▪ Possession of any weapon within Company premises.
▪ Carrying on subversive activities within Company premises.

15. Confidentiality and data protection

▪ Disclosure and unauthorise use of Company proprietary, confidential or sensitive information
including to unauthorised person without prior permission of the relevant approving authority.
▪ Disclosure and unauthorise use of personal information of employees including to unauthorized
persons in a non-judicious manner or without prior permission of the relevant approving authority.
▪ Making matters concerning their duties or the Company known to the public without prior
permission of the relevant approving authority. This Includes but is not limited to publishing
articles, books, photographs or letters; giving press interviews or releases; and giving lectures,
speeches or presentations.

16. Smoking, eating and loitering in undesignated areas

▪ Smoking and/or the use of electronic smoking devices (also known as electronic cigarettes or
“e-cigarettes”) is prohibited except at designated area.
▪ Eating or drinking in prohibited areas.
▪ Loitering in prohibited and restricted areas.

17. Others
▪ The acts or behaviours that are not acceptable and prohibited by the Company shall not be limited
to those outlined in this policy. So long as such act/conduct brings disrepute to the Company or
affect the image of the Company, disciplinary action shall be taken against an employee.

Disciplinary process and actions

▪ Disciplinary action shall be taken when there is a reasonable and clear evidence of misconduct and shall
be based on the principle of natural justice and substantial justice.
▪ For cases where an employee who commits multiple types of misconduct over a period of twelve (12)
months, the Company may pursue progressive punishment deemed necessary as though the misconduct
committed is of the same nature.
▪ The Employee shall be given the opportunity to be heard in order to present his/her evidence and
statement and where necessary seek pre-advise to defend their actions.
▪ An Employee who is a member of the union may seek help from the union in preparation for their inquiry.
▪ Upon concluding the disciplinary inquiry process, the Company shall issue either a Counselling, 1st
Warning, 2nd Warning, Final Warning Letter to the employee as a reminder to current his/her behaviour
and avoid repetition in the future. An Employee may also be dismissed from employment.
▪ There is no compulsion on the Management to follow a progressive punishment pattern.
▪ Disciplinary action taken shall commensurate with the gravity of the offence.

Validity of the warning letters

▪ The disciplinary action will be effective immediately after the seven (7) days allowed for appealing.
▪ All warning letters shall be valid for one (1) year. The period of the validity of the consequence
management shall be decided by the Company.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
Consequence Management
▪ An employee who has been issued warning letter shall result any of the following consequence;
a) Reduced annual increment
b) Suspension of annual increment
c) Deferment of annual increment
d) Suspension of wages
▪ The Management reserves the right to amend or institute other types of consequence management at its
sole discretion.

Appeals against disciplinary action

▪ Aggrieved employees may appeal to the Head of the Company who may set aside, alter or decrease the
penalties imposed.
▪ The appeals must be made within seven (7) days of the meting out of the disciplinary action.
▪ The appeals must be made in writing and include grounds for them.
▪ Employees may continue to work within the Company premises whilst appealing against the disciplinary
action except when appealing against dismissals. Appealing against dismissals must be made from
outside the Company premises.
▪ When employees appeal against the disciplinary action meted out to them within seven (7) days, the
disciplinary action will be suspended until the appeal is disposed of.
▪ Employees who have been dismissed will not be allowed to work until the appeal is disposed of.
▪ The Head of the Company can dispose of the appeals in any of the following ways and the decision
made by the Managing Director is final and conclusive.
a) Uphold the decision of the Inquiry Panel or HR.
b) Revoke the decision of the Inquiry Panel or HR.
c) Substitute the disciplinary action with a less severe punishment.
d) Order a fresh inquiry by another Inquiry Panel.

Criminal proceedings against employees by the authorities

▪ Employee must inform the Company if there is any criminal proceeding against them.
▪ The Company will decide whether to allow the employees to continue working or to suspend them from
their duties during the criminal proceedings.
a) An Employee who have been suspended will not receive any wages during the period of
suspension.
b) The period of suspension may be extended even though the employees have been acquitted,
until the disposal of appeals in a higher court (if applicable).
▪ If the criminal proceedings are discharged or dropped, the employee will be allowed to continue working.
▪ Being convicted of a criminal offence that in the Company’s opinion is relevant to your continued
employment, or your trustworthiness, which may adversely impact your ability to perform your role
satisfactorily or which is likely to bring the Company into disrepute or otherwise affect our reputation or
relationships with our staff, customers or the public shall result with in dismissal.

Detention and banishment

▪ Employee who has been detained or banished under any laws of Malaysia for a period of thirty (30) day
or more shall be deemed to have also broken the Company rules and shall have his/her contract
frustrated with immediate effect upon such detention or banishment.

Others
▪ The Company reserves the right to amend this policy from time to time and shall notify all employees
when such amendment has been made and has been approved by the Management.

▪ Should there be a translation of this policy into other languages, the English version of this policy shall be
authoritative in the event of any dispute or confusion.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]
Notes & Tips

1. This misconduct policy covers almost all aspects of behaviour that is not tolerated in Malaysian employment
scene. Having a long and thorough policy is always better than having a brief policy for the following reasons;
▪ Every possible scenario should be mentioned to avoid room for argument or confusion
▪ It will be helpful to make a charge against an employee by citing the conduct/incident clearly
▪ Give employees no room to find loopholes
▪ To show the Company’s seriousness on zero tolerance to improper conduct of an employee

2. This policy has been developed without categorising into major & minor misconduct. This is to give Companies the
flexibility to decide on the type of disciplinary actions to be taken instead of being forced to follow a set of action.
Company is not obliged to follow a progressive punishment pattern as the severity of certain cases may
be so grave that it may require a stern action.

3. Companies should communicate adequately the details of this policy and constantly review it to ensure
its contents stay relevant.

This sample policy/letter/document is merely a sample or guidance. Companies are advised to practice
caution when drafting its HR documentations and shall always be in compliance with the Employment Act
and Industrial Relations Act as well as past case laws so as to ensure the policy does not violate or infringe
the prevailing employment regulations. Companies are encouraged to adopt best practices to be an
attractive employer and promote productive and competitive operating landscape. The author shall not be
held liable for any damages or claims arising from the usage of the contents of this document.

Prepared by Arulkumar Singaraveloo

HR Consultant; [email protected]