Company Code of Conduct (Philippines)
COMPANY CODE OF CONDUCT
[Company Name]
Effective Date: [Effective Date]
This Company Code of Conduct establishes the behavioral standards, prohibited acts, and disciplinary matrix applicable to all employees of [Company Name]. It serves as the foundational document for just-cause disciplinary proceedings under Article 297 of the Labor Code of the Philippines (Presidential Decree 442) and DOLE Department Order 147-15, Series of 2015.
1. SCOPE AND APPLICABILITY
1.1 This Code of Conduct applies to all employees of [Company Name] — regular, probationary, project-based, fixed-term, and casual employees — regardless of position, rank, or department. It also applies to third-party contractors and service providers while working on company premises or performing work on behalf of [Company Name].
1.2 This Code takes effect on [Effective Date] and supersedes all prior work rules and conduct policies. Employees must sign the Acknowledgment Form at the end of this Code to confirm receipt and understanding.
2. GENERAL CONDUCT STANDARDS
2.1 All employees are required to: (a) perform their duties with honesty, integrity, and professionalism; (b) treat co-workers, supervisors, clients, and visitors with respect and courtesy; (c) comply with all lawful orders and instructions from authorized supervisors and management; (d) protect company property, assets, and confidential information; (e) comply with all applicable laws, including the Data Privacy Act of the Philippines (RA 10173) and anti-sexual harassment laws (RA 7877 and RA 11313); and (f) maintain professional appearance and behavior consistent with company standards.
3. PROHIBITED ACTS AND DISCIPLINARY MATRIX
3.1 CATEGORY 1 — MINOR OFFENSES
Examples: tardiness without valid reason; unauthorized absence of 1 day; failure to wear proper ID or uniform; untidy work area; use of company phone for excessive personal calls; minor discourtesy to a co-worker. Penalties: 1st offense — Verbal Warning; 2nd offense — Written Warning; 3rd offense — 1 to 3 days suspension; 4th offense — 5 to 10 days suspension or dismissal.
3.2 CATEGORY 2 — LESS GRAVE OFFENSES
Examples: unauthorized absence of 2 to 3 consecutive days; insubordination (refusal to follow reasonable instructions without justification); use of company resources for unauthorized personal purposes; making false statements or misrepresentations in non-critical matters; disrespectful behavior toward co-workers or supervisors. Penalties: 1st offense — Written Warning; 2nd offense — 3 to 5 days suspension; 3rd offense — 10 to 15 days suspension or dismissal.
3.3 CATEGORY 3 — GRAVE OFFENSES
Examples: unauthorized absence of 4 or more consecutive days (AWOL); gross insubordination — willful refusal to comply with lawful orders under Article 297(b) of the Labor Code; deliberate damage to company property; unauthorized disclosure of confidential information; filing false or malicious complaints against a co-worker. Penalties: 1st offense — 5 to 15 days suspension or dismissal; 2nd offense — Dismissal.
3.4 CATEGORY 4 — VERY GRAVE OFFENSES / JUST CAUSE FOR IMMEDIATE DISMISSAL
The following acts constitute just causes for immediate dismissal under Article 297 of the Labor Code, without need for prior warning or progressive discipline: (a) Serious misconduct or willful disobedience of lawful orders — Article 297(a); (b) Gross and habitual neglect of duties — Article 297(b); (c) Fraud or willful breach of the trust reposed in the employee by the employer or duly authorized representative — Article 297(c); (d) Commission of a crime or offense against the employer, any immediate member of the employer's family, or their duly authorized representative — Article 297(d); (e) Theft, pilferage, misappropriation, or unauthorized use of company funds, property, or assets; (f) Falsification of company records, documents, or employment credentials; (g) Being under the influence of illegal drugs or alcohol while on duty; (h) Possession, use, sale, or distribution of illegal substances on company premises; (i) Sexual harassment in violation of RA 7877 and RA 11313; (j) Causing serious physical injury or engaging in violence against a co-worker, supervisor, or client on company premises.
4. ANTI-SEXUAL HARASSMENT AND SAFE SPACES POLICY
4.1 [Company Name] maintains a zero-tolerance policy on sexual harassment and gender-based harassment under Republic Act 7877 (Anti-Sexual Harassment Act of 1995) and Republic Act 11313 (Safe Spaces Act of 2019). Sexual harassment includes any unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when submission to or rejection of such conduct influences employment decisions, or creates an intimidating, hostile, or offensive work environment.
4.2 Committee on Decorum and Investigation (CODI): [Company Name] has established a CODI as required by RA 7877 and DOLE Department Order 53-03, Series of 2003. The CODI is chaired by [CODI Chairperson] and includes representatives from management, supervisory employees, and rank-and-file employees. The CODI handles complaints of sexual harassment and gender-based conduct, conducts hearings, and recommends appropriate action to management. Complaints may be submitted in writing to the CODI or to the HR Department at [HR Contact].
4.3 Confidentiality: All CODI proceedings and the identities of complainants are kept confidential to the extent permitted by law and the requirements of the investigation.
5. DISCIPLINARY PROCEDURE
5.1 Twin-Notice Rule: In accordance with Article 292(b) of the Labor Code and DOLE Department Order 147-15, Series of 2015, no suspension or termination may be imposed without: (a) a written Notice to Explain (NTE) specifying the alleged offense and giving the employee at least five (5) calendar days to submit a written explanation; and (b) a written Notice of Decision issued after evaluation of the employee's explanation and the evidence on record.
5.2 Preventive Suspension: Where the employee's continued presence poses a serious risk to the employer's property or to the persons of the employer, co-workers, or the public during investigation, the employee may be placed on preventive suspension for a maximum of 30 days under Article 292 of the Labor Code and DOLE DO 147-15. Preventive suspension is not disciplinary and does not pre-determine guilt.
5.3 Employee's Right to Respond: The employee has the right to submit a written explanation within the period given in the NTE, to appear at an administrative hearing, and to be assisted by a representative (company union, if applicable, or any person of the employee's choice).
6. DATA PRIVACY AND CONFIDENTIALITY
6.1 All employees are required to comply with the Data Privacy Act of the Philippines (RA 10173, 2012) and the National Privacy Commission (NPC) guidelines. Unauthorized collection, use, disclosure, or disposal of personal data of clients, customers, or co-workers is a Category 4 offense subject to immediate dismissal and may result in criminal liability under Sections 25–32 of RA 10173.
EMPLOYEE ACKNOWLEDGMENT
I, the undersigned, acknowledge that I have received, read, and understood the [Company Name] Company Code of Conduct effective [Effective Date]. I agree to comply with all provisions of this Code. I understand that violations may result in disciplinary action up to and including termination, and that this Code constitutes the company rules referenced in disciplinary proceedings before the NLRC and other labor tribunals.
Authorized by: [Authorized Signatory]
Disputes shall be resolved before the appropriate courts or labor tribunals of [Governing City].
Employee
________________
Signature
HR Representative / Management
________________
Signature
What Is a Company Code of Conduct (Philippines)?
A Company Code of Conduct in the Philippines is a formal written document that establishes the specific behavioral standards, prohibited acts, and corresponding disciplinary penalties applicable to all employees of an organization. Under the Labor Code of the Philippines (Presidential Decree 442) and DOLE Department Order 147-15, a Company Code of Conduct is the foundational document that enables an employer to validly impose disciplinary sanctions — including suspension and termination — on employees who violate specified rules.
The legal significance of a Company Code of Conduct lies in its role as the source of the 'company rule' that must be violated for a just-cause dismissal to be valid under Article 297 of the Labor Code. The Supreme Court of the Philippines has consistently held that a valid just-cause dismissal requires: (1) an existing company rule or policy; (2) the employee's knowledge of the rule; and (3) the employee's violation of the rule. Without a documented and communicated Code of Conduct, an employer who dismisses an employee for misconduct faces the risk that the NLRC will find no established rule was violated — converting the dismissal into an illegal dismissal with back wages and reinstatement consequences.
DOLE Department Order 147-15, which governs the procedural requirements for termination, explicitly requires that the Notice to Explain (first notice in the twin-notice rule) identify 'the specific company rule, policy, or law violated.' A Code of Conduct that defines specific offenses with clear descriptions enables the employer to cite the exact rule number and provision in the NTE, satisfying this procedural requirement.
Philippine anti-sexual harassment law (Republic Act 7877, the Anti-Sexual Harassment Act) and the Safe Spaces Act (Republic Act 11313) both require employers with 10 or more employees to adopt a committee on decorum and investigation (CODI) and implement anti-sexual harassment policies — which are typically incorporated into the Company Code of Conduct.
The legal framework governing the Company Code of Conduct (Philippines) in Philippines draws on several key statutes and regulatory bodies. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Parties executing a Company Code of Conduct (Philippines) in Philippines should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Labor Code of the Philippines (PD 442) sets the foundational requirements.
When Do You Need a Company Code of Conduct (Philippines)?
A Company Code of Conduct in the Philippines is needed for every employer that wishes to maintain enforceable workplace standards and the ability to impose valid disciplinary sanctions.
A Company Code of Conduct is required when establishing a new company or expanding an existing workforce. New employees must receive and acknowledge the Code of Conduct before or on their start date — ideally through the Appointment Letter or Employee Handbook acknowledgment — to satisfy the communication requirement for Article 296 (probationary standards) and the rule-knowledge prerequisite for future disciplinary actions.
A Company Code of Conduct is needed when an employer has experienced inconsistent disciplinary enforcement — different penalties for similar offenses across departments or employees. A written disciplinary matrix with defined offense categories and corresponding penalties establishes consistent, defensible standards that reduce NLRC claims of discriminatory or bad-faith enforcement.
A Company Code of Conduct is required to comply with Republic Act 7877 (Anti-Sexual Harassment Act of 1995) and Republic Act 11313 (Safe Spaces Act of 2019). Both laws require employers with 10 or more employees to establish a written anti-sexual harassment policy and a Committee on Decorum and Investigation (CODI).
A Company Code of Conduct is needed for BPO and IT-BPM companies whose offshore clients impose specific workplace conduct standards — data security policies, confidentiality requirements, and professional behavior standards — that must be binding on Philippine employees through employment documentation.
A Company Code of Conduct is required for establishments covered by DOLE's Labor Standards Enforcement Framework (LSEF), where DOLE labor inspectors check for documented workplace conduct policies during compliance inspections.
Parties in Philippines should prepare a Company Code of Conduct (Philippines) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Company Code of Conduct (Philippines)
A Philippines Company Code of Conduct must contain the following essential components to be enforceable in NLRC disciplinary proceedings.
Scope and Applicability: A statement that the Code of Conduct applies to all employees — regular, probationary, project-based, and fixed-term — and to any other persons engaged on the company premises or in connection with company work.
General Conduct Standards: Basic workplace conduct requirements — professionalism, respect for co-workers and management, compliance with lawful orders, protection of company property, and adherence to applicable laws including the Data Privacy Act (RA 10173) and anti-sexual harassment laws (RA 7877, RA 11313).
Prohibited Acts and Disciplinary Matrix: A categorized list of prohibited acts with corresponding penalties. Philippine practice typically uses three to four offense categories: - Category 1 (Minor): First offense — verbal warning; Second offense — written warning; Third offense — 1-3 days suspension - Category 2 (Less Grave): First offense — written warning; Second offense — 3-5 days suspension; Third offense — 10-15 days suspension or dismissal - Category 3 (Grave): First offense — 5-15 days suspension or dismissal - Category 4 (Very Grave / Just Cause per Article 297): First offense — immediate dismissal
Sexual Harassment and Safe Spaces Policy: Anti-sexual harassment provisions compliant with RA 7877 and RA 11313, including a statement on the Committee on Decorum and Investigation (CODI), complaint procedures, and confidentiality protections for complainants.
Disciplinary Procedure: Reference to the twin-notice rule under DOLE Department Order 147-15 — NTE followed by Notice of Decision — and the right of the employee to respond within the specified period.
Effectivity and Acknowledgment: Date of effectivity, authorized signatory of management, and an employee acknowledgment form certifying receipt and understanding. The signed acknowledgment is the critical document evidencing communication of the Code to the employee.
Additional compliance elements for a Company Code of Conduct (Philippines) used in Philippines include: Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. The Revised Corporation Code (Republic Act No. 11232) regulates corporate entities through the Securities and Exchange Commission (SEC). The Labor Code of the Philippines (Presidential Decree No. 442) and Department of Labor and Employment (DOLE) govern employment matters. The Data Privacy Act of 2012 (Republic Act No. 10173) and the National Privacy Commission (NPC) protect personal data. The Bureau of Internal Revenue (BIR) administers tax obligations under the National Internal Revenue Code. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
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year = {2026},
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note = {Free legal document template. Based on Labor Code of the Philippines (PD 442)}
}Also available for these jurisdictions:
Frequently Asked Questions
Yes. A company in the Philippines may terminate an employee for violating the Company Code of Conduct, provided: (1) the violated provision constitutes or is analogous to a just cause under Article 297 of the Labor Code (serious misconduct, willful disobedience, fraud, breach of trust, crime against employer, or analogous cause); (2) the Code of Conduct was communicated to the employee before the violation; (3) the twin-notice rule was followed — NTE issued, employee given at least 5 calendar days to respond under DOLE DO 147-15, and a Notice of Decision issued after evaluation; and (4) the penalty of dismissal is proportionate to the offense — repeat offenders and employees who committed grave offenses warrant dismissal, while first-offense minor violations should attract lesser penalties. NLRC decisions consistently require that all four conditions be met for a valid just-cause dismissal based on Code of Conduct violations.
A Company Code of Conduct does not require registration with DOLE to be valid and effective. The legal requirements for a Code of Conduct to be enforceable are: that it is written, that it is communicated to employees through the Employee Handbook, Appointment Letter, or a separate acknowledgment, and that it is reasonable and not contrary to law or public policy. However, for establishments with unionized employees, the Code of Conduct or Company Work Rules may be incorporated into the Collective Bargaining Agreement (CBA) registered with the Bureau of Labor Relations (BLR). DOLE labor standards inspectors may request to see the Code of Conduct during establishment inspections under the Labor Standards Enforcement Framework, and employers should be prepared to present it and the employee acknowledgment records. The Code of Conduct must be updated when relevant laws change — for example, when RA 11313 (Safe Spaces Act) was enacted in 2019, companies were required to update their anti-harassment policies.
The Committee on Decorum and Investigation (CODI) is a workplace body required by Republic Act 7877 (Anti-Sexual Harassment Act of 1995) and Republic Act 11313 (Safe Spaces Act of 2019) for all employers with 10 or more employees in the Philippines. The CODI is responsible for: investigating complaints of sexual harassment, gender-based harassment, and other workplace discrimination; conducting hearings in accordance with due process; recommending penalties to management; and implementing preventive measures. Under RA 7877, failure to maintain a CODI makes the employer solidarily liable for damages with the perpetrator of sexual harassment. DOLE Department Order 53-03, Series of 2003, provides guidelines for the composition and operation of CODIs — requiring representation from management, supervisory, and rank-and-file employees. The CODI procedures and investigation process should be incorporated into the Company Code of Conduct or a separate anti-harassment policy communicated to all employees.
A Company Code of Conduct (Philippines) does not legally require a lawyer in Philippines, and individuals and businesses may draft and execute the document independently. The Labor Code of the Philippines (PD 442) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Philippines lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of the Philippines has jurisdiction over disputes arising from this type of document, and Securities and Exchange Commission (SEC Philippines) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Company Code of Conduct (Philippines) does not legally require a lawyer in the Philippines, though legal advice is recommended. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contracts. The Securities and Exchange Commission (SEC) regulates corporate documents. The Department of Labor and Employment (DOLE) oversees employment agreements. The Data Privacy Act of 2012 (Republic Act No. 10173) and National Privacy Commission (NPC) impose data protection obligations. The Bureau of Internal Revenue (BIR) requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Philippine attorney for significant transactions. Under Philippines law, Labor Code of the Philippines (PD 442), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Philippine law, the Civil Code of the Philippines (Republic Act No. 386) governs contractual obligations. Forms-legal.com provides this template as a starting point for Philippines-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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