Page 41 - 2018 MSC HR Policy

3. Disciplinary Action

3.1 The supervisor is responsible for taking disciplinary action against an employee who violates the
disciplinary code. Depending on the nature and seriousness of the offense, an employee may be
subject to one or several types of disciplinary actions, not necessarily applied in this order, as follows:

3.1.1. Verbal warning
3.1.2. Written warning

3.1.3. Suspension without pay from 1 – 7 days

3.1.4. Termination with severance pay

3.1.5. Termination / Dismissal without severance pay

3.2 The termination of employment and/or dismissal without severance pay will apply when an employee
commits a serious offense as follows:

3.2.1 Perform dishonestly towards his duties or intentionally commits a criminal offense against the
Company.

3.2.2 Intentionally causes damage to the Company.

3.2.3 Violated the Company’s work rules or regulations or orders which are legal and fair, and the
superior having already given a written warning, except in serious cause for which the superior
is not required to give a warning. The written warning shall be valid for not more than 1 year as
from the date of the commission of the violation by the employee.

3.2.4 Neglects his duties for a period of three consecutive workdays without a reasonable cause,
whether or not there is a holiday intervening in such period.

3.2.5 Causing serious damage to the employer as a result of negligence.

3.2.6 Having been imprisoned by a final judgment, except for offenses arising out of careless act or
for petty offenses.

3.3 If an investigation needs to be carried out for any disciplinary violation, it the Company decides to
suspense the concerned employee from work during this investigation. This work suspension for
investigation shall not be more than 7 days. The suspension is taken with 50 % payment of wage and
other entitlements. If, after the investigation, the employee is found not guilty, the Company will pay
the remaining 50 % of wage to him/her.

3.4 Persons authorized to consider and applies disciplinary action

3.4.1 A technical/professional employee or supervisor or department head or primary superior or
person to equivalent position is authorized to apply verbal warning for petty offense committed
for the first time

HUMAN RESOURCES POLICY Page 41 of 49
VERSION: HR001-2018, JANUARY 1, 2018