Chapter I

PRELIMINARY

1.1. These rules may be called the Indian Immunologicals Limited Conduct, Discipline and Appeal Rules.

1.2. They shall come into force from 20^th March 2019

These rules shall apply to all employees except

2.1 Those in casual employment.

In these rules, unless the context otherwise requires:

3.1 Employee: means a person in the employment of the company, other than casual, work-charged or contingent staff but includes a person on deputation to the company.

3.2 Company: means Indian Immunologicals Limited, Head Office located at Road No.44, Jubilee Hills, Hyderabad, 500033, Telangana, India and any of its Plants, Branches or Offices, Laboratories or Projects anywhere in India or that may be opened / started in future.

3.3 Board of Directors: means the Board of Directors of the company, in existence from time to time.

3.4 Managing Director: means the Managing Director of the company.

3.5 Disciplinary Authority: the Disciplinary Authority, which shall be the Appointing Authority or any Authority higher than it or as may be decided by the Board, may impose any of the penalties on the employee as specified in rule 26.

3.6 Competent Authority: means the Board or the Managing Director or any other Authority to whom the Board or the Managing Director has delegated the power in relation to the officer or other employee, or in respect of the matter, as the case may be.

3.7 Government: means the Government of India.

3.8 Appellate Authority: means the Authority specified in the schedule appended to these rules.

3.9 Family: “family” means and includes an employee’s legitimate spouse, parents and legitimate children.

Chapter II

CONDUCT, DISCIPLINE AND APPEAL

4. General

4.1 Every employee of the company shall at all times

4.1.1. Maintain absolute integrity

4.1.2. Maintain devotion to duty and

4.1.3. Do nothing which is unbecoming of an employee.

4.2 Every employee of the company holding a supervisory post shall take all possible steps to ensure the integrity and devotion to duty of all employees for the time being under his control and authority.

4.3 The conduct of all employees shall also be governed by other policies prevalent in the company from time to time such as Prevention of Gender Discrimination and Sexual Harassment (GDSH) rules, CoBE, NDA, IT policy, etc.

5. Prohibition of sexual harassment of women at workplace

No employee shall indulge in any act of sexual harassment of any woman.

5.1 Every employee who is in-charge of a work place shall take appropriate steps to prevent sexual harassment to any woman.

Explanation: for the purpose of this rule “sexual harassment” includes such unwelcome sexually determined behaviour, whether directly or otherwise, as: -

5.1.1 Physical contact and advances;

5.1.2 A demand or request for sexual favours;

5.1.3 Sexually coloured remarks;

5.1.4 Showing pornography;

5.1.5 Any other unwelcome physical, verbal or non-verbal conduct of sexual nature.

5.1.6 And any other behaviour as stipulated in the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

5.2 Any violation of this rule will be considered as misconduct.

Where there is an act of sexual harassment by any employee as defined in rule 5 of the company’s CDA rules, the Internal Complaints Committee (ICC) established under the provision of section 4 (2) of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, in the offices/ units of the company for enquiring into such complaints, shall be deemed to be the inquiry authority appointed by disciplinary authority for the purpose of these rules.

In the event of any issues concerning contradiction(s) relating to procedural or interpretation with respect to this section in the company CDA rules and the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules made thereunder, the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 and the rules made thereunder shall prevail.

6. Absence without justification and consequences thereof

Unless otherwise expressly provided, the whole time of an employee shall be at the disposal of the company and he shall serve the company in its business and at such places as he may from time to time be directed by his superiors.

6.1 An employee shall not absent himself from duty without having obtained the permission of the competent authority.

6.2 No employee shall leave the project site where he is posted, without prior permission of the competent authority.

7. Terms of employment:

The terms of employment will be as per the details contained in the contract of service for a fixed term. The management/competent authority of the organization reserves the right to amend, alter, and/or change any or all the terms and conditions governing employment. The organization will also be the sole judge of the meaning and interpretation of all or any of these terms and conditions and its decision thereon will be binding on all employees.

7.1 Contract of service for a fixed term is a contract between the individual employee and the organization and the terms of employment will be specific to each employee. Hence, all employees are expected not to share the terms of employment with others including fellow employees.

7.2 The organization relies upon the accuracy of information contained in the employment application, as well as the accuracy of other data presented and gathered during the employment process. Any misrepresentation (intentional or unintentional), falsification, or material omission of facts on the employment application or in interview(s) may result in rejection of the application for employment or termination of employment of the concerned employee by the organization.

7.3 New hires need to go for pre-employment health check-up.

7.4 If needed, post-employment background checks of new hires would also be conducted.

7.5 Every offer of employment is contingent upon the successful completion of these checks

7.6 No person who has been dismissed from the service of the company shall be eligible for appointment to any post in the company thereby or in future.

7.7 If any of the particulars given by an employee before or at the time of appointment, are subsequently found to be false or incorrect, or it is found that any of the material particulars have not been disclosed by him, the appointment shall be deemed to have been obtained on misrepresentation and liable to be terminated summarily by the appointing authority and every such termination shall be without prejudice to any other action that may be taken in respect thereof provided that in every such case an opportunity to show cause shall be given to the employee concerned before making an order of termination.

7.8 Cessation of employment/services upon completion of fixed term contract tenure, short closure of a fixed term contract tenure shall not be falling within the definition of termination under these rules.

8. Performance Assessment

The performance in service of an employee shall be assessed every year by the competent authority on the basis of performance management system as may be in practice in the Company.

9. Communication

9.1. Connection with Press or other Media

No employee shall, except with the previous sanction of the competent authority, own wholly or in part any newspaper or other periodical, publication, or conduct or participate in the editing or managing of the same.

No employee shall, except with the previous sanction of the competent authority or any officer authorized by him in this regard, participate in a radio or TV broadcast or social broadcasting sites, or contribute any article or write any letter either in his own name or anonymously, pseudonymously or in the name of any other person, to any newspaper or periodical or any other media.

Provided that no such sanction shall be required if such broadcast or contribution is of a purely literary or artistic character or for scholastic and academic research, not related to business or people employed by the Company.

Further, any employee providing input on information related to the company which is detrimental to the interest, image, and business of the organization or affecting the image of its officers will be equally responsible for the violation of the code of conduct.

9.2. Telephone Etiquette

Employees are expected to adhere to the following guidelines at workplace or while interacting with internal / external customers

9.2.1 Answer promptly and politely. Give one’s name and department;

9.2.2 Return and forward messages in a prompt and courteous manner;

9.2.3 Be considerate and polite, especially if the call has to be transferred;

9.2.4 Give concise and accurate information. Do not try to deal with questions that one is not qualified to answer;

9.2.5 Personal telephone calls during business hours, both incoming and outgoing, should be kept to a minimum; and

9.2.6 Employees should keep decent and low volume ring tones to ensure that other people are not disturbed; and

9.2.7 During meetings and other important interactions employees should switch off or put the cell phones on the silent mode.

9.3. Criticism of the company

No employee shall in any radio, TV broadcast or social networking sites or any document published in his own name or in the name of any other person or in any communication to the press or in any public utterance make any statement with intention to defame the company or any institution connected with it or is capable of embarrassing the relation of the company or related organization with public or any government.

Any appearance in any radio, TV broadcast or social media interview should be preapproved by competent authority in the organization.

9.4. Unauthorized communication of information

No employee shall, except in accordance with any general or special order of the competent authority or except in the performance in good faith, of the duties assigned to him, communicate, directly or indirectly, any official document or information to any officer or to any other employee or to any other person, to whom he is not authorized to communicate such document or information.

Quoting in representations, orders, or notes or other information containing official facts to which the employee is not authorized to have access or which he is not authorized to keep in his personal custody shall amount to communicate or unauthorized information within the meaning of this regulation.

10. Public and third-party representation

10.1 Policy

The company will share information with the public and third parties only through its authorized officers, who are specifically authorized and designated for this purpose. No other employee would be free to do so similarly. Such public entities would cover the media, shareholders, and also other employees in the company

10.2 Conduct

10.2.1 Most employees are not expected to communicate directly with the media. However, should such an interaction be totally unavoidable, it is best not to give personal views, opinions or speculation or to provide information on matters falling outside your direct knowledge, involvement and responsibility. In particular, an employee should avoid discussing matters of policy, legislation, personnel actions or official investigations on any matter unless specifically authorized.

10.2.2 An employee needs to report to his immediate superior as soon as possible regarding any media inquiry, to ensure that communication is properly coordinated. On matters of particular public interest or sensitivity, the employee needs to simultaneously inform the corporate communication department.

10.3 Guidelines for employee to follow when approached by media for a query:

10.3.1 If the media approaches an employee for news or comments, he/she should politely direct the caller to the corporate communication department.

10.3.2 Give the name and contact numbers of the organization spokesperson or the corporate communication department to the media person.

10.3.3 The employee should not give any commitment for any material or information to any media person and to the extent possible pass on the responsibility to the corporate communication department rather than making comments without consultation.

10.3.4 At any informal/social gathering with any media person, employees should try to keep the conversation around non-business subjects and deal with any business query in the above-mentioned manner.

10.4 Media guidelines to be followed in the organization:

10.4.1 Before sending out a communication to the media whether through any PR agency or directly from the organization, the employees need to ensure that the communication has been approved by the respective competent authority.

10.4.2 To keep the overall messages and look and feel of external communication from the company similar and consistent, the employees should follow the guidelines and graphic standards mandated by corporate communication department.

10.4.3 Also, the employees should send a copy of the communication to the corporate communication department so that they are informed and ready to answer any additional queries from the media.

10.4.4 If the employees are asked to write an article for a newspaper or magazine, they need to take approval of the competent authority before accepting. The employees need to send a copy of the written articles to corporate communication department and get it approved before releasing to the publication.

10.4.5 In case the employees come across a report or a news item that misrepresents facts about the organization or distorts a story out of context and could adversely impact the organizations reputation, they should inform the corporate communication department as quickly as possible. Similarly, if there is any of our product / person pictures or organization logos or diagrams used by any publication, without due credit given to the organization, the employees should send a copy to corporate communication department.

10.4.6 The employees should refrain from making any derogatory or speculative statements regarding the organization, the government, competition, suppliers, customers or consumers to media persons, whether meeting them formally or informally.

10.4.7 If an employee discloses any information without taking approval from the management, the management reserves the right to take any legal action against the employee.

10.5 When information is shared with third parties - distributors, dealers, suppliers, contractors, collaborators - adequate non-disclosure and confidentiality agreements, duly approved by Legal department of the Company must be signed.

10.6 The company would be well within its rights to monitor content of information exchanged inside and outside the company as part of its information security policy.

Evidence before committee or any other authority

11.1 Save as provided in sub-rule (11.3), no employee of the company, shall, except with the previous sanction of the competent authority, give evidence in connection with any inquiry conducted by committee or authority.

11.2 Where any sanction has been accorded under sub-rule (11.1), no employee giving such evidence shall criticize the policy or any action of the central government or of a state government or company

11.3 Nothing in this rule shall apply to:

11.3.1 Evidence given at any inquiry before an authority appointed by the government, parliament or a state legislature or company

11.3.2 Evidence given in any judicial inquiry or

11.3.3 Evidence given at any department inquiry ordered by authorities subordinate to the government.

12. Employment of near relatives of the employees of the company, in any firm having business relations with the company

12.1 No employee shall use his position or influence directly or indirectly to secure employment for any person related. Whether by blood or marriage to the employee or to the employee's wife or husband, whether such a person dependent on the employee or not in the company or in any firm having business relations with company.

12.2 No employee shall, except with the previous sanction of the competent authority, permit his son, daughter or any member of the family to accept employment with any firm with which he has official dealing.

Provided that where the acceptance of the employment cannot await the prior permission of the competent authority, the employment may be accepted provisionally subject to the permission of the competent authority, to whom the matter shall be reported forthwith.

12.3 No employee shall in the discharge of his official duties deal with any matter or give or sanction any contract to any company or firm or any other person if any member of his family is employed in that company or firm or under that person or if he or any member of his family is interested in such matter or contract in any other matter and the employee shall refer every such matter or contract to his official superior and the matter or the contract shall thereafter be disposed of according to the instructions of the authority to whom the reference is made.

13. Pressing of claim or seeking redress of a grievance in service matters

13.1 No representation, appeal, petition or memorial shall be addressed by an employee to the director or the chairman & managing director of the company personally or to any outside authority or an authority not specified under these rules.

13.2 No employee shall send a representation or advance copies thereof to higher authorities except through proper channel or send copies of a representation to outside authorities.

14. Gifts

All employees need to avoid accepting favors that could potentially compromise the values of the company.

Employees are expected to desist from receiving gifts from third parties which are not customary, and which exceed Rs. 1000/- in value and only on one-time basis. Such gifts received beyond the prescribed values must be disclosed by employees and will be the property of the company. Any cash gift is akin to receiving a bribe must be declined. Donations to organizations supported by employees cannot also be solicited from anyone. Likewise, employees cannot be entertained or dined by business associates beyond normal business and customary practice.

Employees are also prohibited from giving gifts without the sanction of the competent authority. No gifts shall be given other than normal course of business.

The explanation ‘gift' shall include free transport, board, lodging or other service or any

other pecuniary advantage when provided by any person other than a near relative or a

personal friend having no official dealings with the employee.

15. Private trade or employment

15.1 No employee of the company shall engage directly or indirectly in any trade or business or undertake any other employment.

Provided that an employee may undertake honorary work of a social or charitable nature or occasional work of a literary, artistic or scientific character, subject to the condition that his official duties do not thereby suffer.

15.2 No employee of the company may accept any fee or any pecuniary advantage for any work done by him for any public body or any private person without the sanction of the competent authority.

15.3 No employee shall act as an insurance agent, nor shall he allow any member of his family to act as an insurance agent providing services to the employees of the organization

16. Investment, lending and borrowing

No employee shall, save in the ordinary course of business with a bank, the life insurance corporation or a firm of standing or with the previous approval of competent authority, borrow money from or lend money to or otherwise place himself under pecuniary obligation to any person with whom he has or is likely to have official dealings or permit any such borrowing, lending or pecuniary obligation in his name or for his benefit or for the benefit of any member of his family.

17. Insolvency and habitual indebtedness

An employee of the company shall avoid habitual indebtedness unless he proves that such indebtedness or insolvency is the result of circumstances beyond his control and does not proceed from extravagance or dissipation.

An employee of the company, who applies to be, or is adjudged or declared insolvent shall forthwith report the fact to his competent authority.

18. Canvassing of non-official or other influence

No employee shall bring or attempt to bring any outside influence to bear upon any superior authority to further his interests in respect of matters pertaining to his service in the company

19. Consumption of intoxicating drinks and drugs

Every officer of the company shall strictly abide by any law relating to intoxicating drinks or drugs in force in any area in which he may happen to be for the time being, and he shall:

19.1 Not be under the influence of any intoxicating drink or drug during his duty and shall also take due care that the performance of his duties by any time is not affected in any way by the influence of such drink or drug;

19.2 Refrain from consuming any intoxicating drink or drug in a public place;

19.3 Not appear in a public place in a state of intoxication;

Explanation:

For the purposes of this rule, `public place’ means any place or premises excluding clubs (exclusively meant for members where it is permissible for the member to invite non-members as guests) bar and restaurants, to which the public have or are permitted to have access, whether on payment or otherwise.

20. Conviction or arrest of an employee

An employee convicted by a court of law or arrested shall report promptly the fact of his conviction or arrest to his departmental superiors; and failure to do so shall render him liable to disciplinary action on this ground. Any updates in such case shall be informed to the competent authority of the company

21. Return of company's property, equipment, tools, etc.

21.1 Every employee shall, before leaving the service, return all property or equipment or tools belonging to the company issued or lent to him in connection with his employment in the company;

21.2 The cost of such property, equipment or tools not so returned shall be liable to be deducted from his pay or the amount, if any, due to him.

21.2

22. Misconduct

Without prejudice to the generality of the term “misconduct”, the following acts of omissions and commissions shall be treated as misconduct, namely:

22.1 Willful insubordination or disobedience of superior, whether alone or in combination with others or instigation or any such act;

22.2 Striking work either singly or with other officers and employees in contravention of these rules or any other law for the time being in force, or inciting any officer or other employee to strike work;

22.3 Theft, fraud or dishonesty or willful damage, or causing loss in connection with the business activity or of goods or property of company;

22.4 Taking or giving bribe or any type of illegal gratification whatsoever or accepting of valuable presents, or borrowing of money from a subordinate or any other person having dealings with the company;

22.5 Having by himself or on his behalf by another person pecuniary resources or property disproportionate to the known sources of income of the officer, which he cannot satisfactorily account for;

22.6 Absence without leave or overstaying the sanctioned leave without obtaining permission from or condonation by the competent authority;

22.7 Habitual late attendance;

22.8 Collection or canvassing for collection of any money within the premises of company for any purpose not approved by the management;

22.9 Drunkenness or riotous or disorderly or indecent behaviour while in the premises of company, or outside such premises where such behaviour is related to or connected with the employment;

22.10 Commission of any act which amounts to criminal offence including offence of moral turpitude;

22.11 Distribution or display within any of the premises of the company, of any newspapers, hand bills, pamphlets, placards, banners, unauthorized badges in writing or pasting slogans or other abusive words on the walls or elsewhere in the premises of company;

22.12 Engaging in any private work or trade (with or without materials) whether from within or outside the premises of the company or engaging in any other employment, trade, profession, calling (whether for profit or not) while still in the service of the company;

22.13 Neglect of work or negligence in the performance of duties including malingering or slowing down of work;

22.14 Attending or holding meetings, not related to company’s business objectives, inside the premises of the company without authorization;

22.15 Failure to observe safety instructions, interference or tampering with or removal of properties of the company;

22.16 Sleeping while on duty;

22.17 Use of insulting or abusive language, assault or threat of an assault, intimidation or coercion within the precincts of the company against any officer, employee or any other person authorized to work in the company and any such act outside the premises if it directly affects the discipline of the company;

22.18 Disclosure by an officer to any unauthorized person any information regarding the working of process or business of the company which comes into his possession or his notice during his employment in the company;

22.19 Interference with work of any other officer or other employee or person in a manner prejudicial to the interests of the company;

22.20 Gambling within the premises of the company;

22.21 The sale or canvassing the sale of tickets or chances in lottery or raffles within the premises of the company;

22.22 Deliberate delaying of production or process or of the carrying out of orders;

22.23 Soliciting or seeking any outside employment or office, scholarship, travel grants, fellowships (whether stipendary or honorary), without the previous sanction of the competent authority;

22.24 Engaging in trade, including money lending or borrowing, within the premises of company;

22.25 Unauthorized possession of any lethal weapon in the premises of the company;

22.26 Allowing an unauthorized person to operate any machine, apparatus or vehicle of company or operating the same unauthorizedly;

22.27 Refusal to accept or take notice of any charge-sheet, order to any other communications served either in person or in due course by post or any notification on the notice board of the company;

22.28 Conviction by a court of law for any criminal offence including offence involving moral turpitude;

22.29 Deliberately making a false statement before a superior;

22.30 Proxy registering of attendance or abetting in the act of registering attendance by any other officer or employee;

22.31 Picketing or demonstrating within the premises of the company or its approaches;

22.32 Falsification of records or defalcation or the forging of the signature of any person;

22.33 Impersonation;

22.34 Indulging in political activity during working hours within the premises of the company or in any other manner violating the provisions of the rules by being a political worker or otherwise;

22.35 Furnishing false information regarding name, age, father’s name, qualification, ability or previous service or any other matter germane to the employment at the time or employment or when physical fitness examination record is made;

22.36 Failure to return of cash or property of the company on or before the stipulated period;

22.37 Falsifying or refusing to give testimony when an incident or other matter is being investigated;

22.38 Willful neglect or failure to report occurrences or incidents likely to endanger life or property in the premises of the company;

22.39 Using or commercialization of any invention, discovery or patent invented, discovered or patented by him or by any other employee, in the course of employment in the company, to the benefit of himself, or of any other person, firm or corporation;

22.40 Any act of bad faith against the company or any act which is prejudicial to the company;

22.41 Absence from appointed place of work without permission or without enough cause;

22.42 Commission of any act subversive to discipline or good behaviour;

22.43 Organizing agitations or participating in agitations, using abusive, slanderous or indecent language against the management of the company or against any official or other employee or group of officials or other employees of the company;

22.44 Unauthorized use of housing quarters, land or other property of the company;

22.45 Soliciting or collecting contributions, funds for any purpose whatsoever at any time from within the premises of the company without prior permission of the competent authority;

22.46 Refusal to accept transfer from the one department, group, place or post to another, or failure to comply with any transfer order issued by the competent authority;

22.47 Writing anonymous letters criticizing any officer or other employee (or generally the superiors) to the company or making false report against them;

22.48 Spreading false rumours or giving false information likely to bring disrepute to the company;

22.49 Failure or refusal to make a declaration of fidelity or secrecy;

22.50 Failure to wear uniform while on duty, if provided by the company, and wearing of the uniforms while not on duty; or

22.51 Abetment of or incitement to commit any act of misconduct;

22.52 Slowing down of work or abetment or instigation thereof, or inciting, abating or aiding illegal work, stoppage either alone or in combination with any other employee;

22.53 Taking leave on false ground;

22.54 Taking or copying for personal use, notes, drawings, sketches, photographs or other information that belongs to the company, declared or implied with.

22.55 Use of insolent or impertinent or unparliamentary language in any official correspondence or in any representation including appeal.

22.56 Publication of any article, journal, paper or book on any subject prejudicial to the company or connected with any work of the company without the prior permission of the competent authority.

22.57 Smoking within the premises of the establishment, where it is prohibited.

22.58 Purchasing properties, machinery, stores etc., from or selling properties, machinery, stores etc., to the company, without express permission in writing from the competent authority.

22.59 Sexual harassment of women at workplace.

22.60 Using official e-mail, internet or other electronic equipment or facilities provided by the company in violation of company’s rules and policies.

22.61 Breach of any Rules applicable to the Company.

22.62 In any manner violating any of the rules of the company or any order or any directions;

Note:

In this rule, “habitual”, means commission of any act on three or more occasions in a period of three consecutive months or six times in a period of twelve preceding months from the last omission or commission.

Note: the above instances of misconduct are illustrative in nature and not exhaustive.

23. Suspension

The appointing authority or any authority to which it is subordinate or the disciplinary authority or any other authority empowered in that behalf by the management by a general or special order may place an employee under suspension:

23.1 Where a disciplinary proceeding against him is contemplated or is pending or where a case against him in respect of any criminal offence is under investigation or trial.

23.2 An employee who is detained in custody, whether on a criminal charge or otherwise, for a period exceeding 48 hours shall be deemed to have been suspended with effect from the date of detention, by an order of the appointing authority, and shall remain under suspension until further orders.

23.3 Where a penalty of dismissal or removal from service imposed upon an employee under suspension is set aside on appeal or on review under these rules and the case is remitted for further inquiry or action or with any other directions, the order of his suspension shall be deemed to have continued in force on and from the date of the original order of dismissal or removal and shall remain in force until further orders.

23.4 Where a penalty of dismissal or removal from service imposed upon an employee is set aside or declared or rendered void in consequence of or by a decision of a court of law and the disciplinary authority, on consideration of the circumstances of the case, decides to hold a further inquiry against him on the allegations on which the penalty of dismissal or removal was originally imposed, the employee shall be deemed to have been placed under suspension by the appointing authority from the date of the original order of dismissal or removal and shall continue to remain under suspension until further orders.

23.5 An order of suspension made or deemed to have been made under this rule made at any time be revoked by the authority which made or is deemed to have made the order or by any authority to which that authority is subordinate.

24. Subsistence allowance

An employee under suspension shall be entitled to draw subsistence allowance equal to 50 percent of his basic pay for the first 90 days of suspension provided the disciplinary authority is satisfied that the employee is not engaged in any other employment or business or profession or vocation.

24.1 In addition, he shall be entitled to dearness allowance admissible on such subsistence allowance and any other compensatory allowance of which he was in receipt on the date of suspension provided the suspending authority is satisfied that the employee continues to meet the expenditure for which the allowance granted.

24.2 The amount of subsistence allowance may be increased to 75 percent of basic pay and allowance thereon if, in the opinion of the said authority, the period of suspension has been prolonged for reasons to be recorded in writing not directly attributable to the employee under suspension.

24.3 If an employee is arrested by the police on a criminal charge and bail is not granted, no subsistence allowance is payable. On grant of bail, if the competent authority decides to continue the suspension, the employee shall be entitled to subsistence allowance from the date he is granted bail.

25. Treatment of the period of suspension

When the employee under suspension is re-instated, the competent authority may grant to him the following pay and allowance for the period of suspension.

25.1 If the employee is exonerated and not awarded any of the penalties mentioned in rule 26, the full pay and allowances which he would have been entitled to if he had not been suspended, less the subsistence allowance already paid to him and

25.2 If otherwise, such proportion of pay and allowances as the competent authority may prescribe.

25.2.1 In a case falling under sub-rule(25.1) the period of absence from duty will be treated as a period spent on duty in case falling under sub-rule (25.2) it will not be treated as a period spent on duty unless the competent authority so directs.

26. Penalties

The following penalties may be imposed on an employee, as herein after provided, for misconduct committed by him or for any other good and enough reasons.

26.1 Minor penalties:

26.1.1 Censure

26.1.2 With-holding of increments of pay with or without cumulative effect for a specified period.

26.1.3 With-holding of extension/revision/renewal of contract for a specified period:

26.1.4 Recovery from pay or such other amount as may be due to him, of the whole or part of any pecuniary loss caused to the company, by negligence or breach of orders.

26.2 Major penalties:

26.2.1 Reduction to a lower pay, grade or post, or to a lower stage in a time scale.

26.2.2 Compulsory retirement.

26.2.3 Cessation of service which shall not be a disqualification for future employment.

26.2.4 Dismissal from service which shall ordinarily be a disqualification for future employment.

The following shall not amount to penalty within the meaning of this regulation

26.3 Not awarding any increment because of unsatisfactory performance

26.4 Non-promotion, whether in an officiating capacity or otherwise, of an employee, to a higher post for which he may be eligible for consideration but for which he is found unsuitable after consideration of his case;

26.5 Reversion to a lower grade or post, of an employee officiating in higher grade or post, claiming he is considered after trial to be unsuitable for such a higher grade or post on administrative ground unconnected with his conduct.

26.6 Reversion to his previous grade or post, of an employee appointed on probation to another grade or post, during or at the end of period of probation, in accordance with the terms of his appointment.

26.7 Termination of service by way of non-renewal of contract, discharge simpliciter, medical unfit cases etc. (i.e. Other than dismissal cases)

26.8 Of an employee appointed on probation / training during or at the end of the period of his probation / training, in accordance with the terms of his appointment;

26.9 Of an employee appointed in a temporary capacity otherwise than under a contract or agreement on the expiration of the period for which he was appointed or earlier in accordance with the terms of his appointment;

26.10 Of any employee on reduction of establishment or consequent on redundancy;

26.11 Of any employee on loss of lien / voluntary abandonment of service;

26.12 On continued ill-health of the employee where he is found medically incapacitated or otherwise unfit in accordance with these regulations.

27. Disciplinary authority

The disciplinary authority, as specified in the schedule or any authority higher than it may impose any of the penalties specified in rule 26 on any employee.

28. Procedure for imposing minor penalties

Where it is proposed to impose any of the minor penalties specified in sub-rules (26.1.1) to (26.1.4) of rule 26, the employee concerned shall be informed in writing of the imputations of misconduct or misbehavior against him and given an opportunity to submit his written statement of defense within a specified period of time not exceeding 15 days. The defense statement, if any, submitted by the employee shall be taken into consideration by the disciplinary authority before passing orders.

The record of the proceedings shall include:

28.1 A copy of the statement of imputation of misconduct or misbehavior delivered to the employee.

28.2 His defense statement, if any; and

28.3 The orders of the disciplinary authority together with the reasons therefor.

29. Procedure for imposing major penalties

29.1 No order imposing any of the major penalties specified in sub-rule (26.2.1) to (26.2.4) of rule 26 shall be made except after an inquiry is held in accordance with this rule.

29.2 Whenever the disciplinary authority believes there are grounds for inquiring into the truth of any imputation of misconduct or misbehavior against an employee, it may itself enquire into, or appoint "any employee or an outsider who has experience in conducting domestic enquiries or committee appointed for the purpose by the disciplinary authority".

29.3 Provided that where there is a complaint of sexual harassment within the meaning of rule 5, the Internal Complaints Committee (ICC) established in each establishment/unit or office, as the case may be, for inquiring into such complaints, shall be deemed to be the inquiring authority appointed by the competent disciplinary authority for the purpose of these rules and the complaint committee shall hold, if separate procedure has not been prescribed for the complaint committee for holding the inquiry into the complaints of sexual harassment, the inquiry as far as practicable in accordance with the procedure laid down in these rules.

29.4 Where it is proposed to hold an inquiry, the disciplinary authority shall frame definite charges based on the allegations against the employee. The charges, together with a statement of the allegations, on which they are based, a list of documents by which and a list of witnesses by whom, the articles of charge are proposed to be sustained, where ever possible, shall be communicated in writing to the employee, who shall be required to submit within such time as may be specified by the disciplinary authority (not exceeding 15 days), a written statement whether he admits or denies any of or all the articles of charge.

Explanation: it will not be necessary to show the documents listed with the charge-sheet or any other document to the employee at this stage.

29.5 On receipt of the written statement of the employee, or if no such statement is received within the time specified, an inquiry may be held by the disciplinary authority itself, or by any "employee or an outsider who has experience in conducting domestic enquiries or committee" appointed as an inquiring authority under sub-rule (29.3).

If it may not be necessary to hold an inquiry, in respect of the charges admitted by the employee in his written statement, the disciplinary authority shall, however, record its findings, on each such charge.

29.6 Where the disciplinary authority itself inquires or appoints an inquiring authority for holding an inquiry, it may, by an order appoint "officer of the organization" to be known as the "presenting officer" to present on its behalf the case in support of the articles of charge.

29.7 The employee may take the assistance of any other co-employee other than an employee who is under suspension or against whom disciplinary proceedings are pending, to present the case on his behalf, but may not engage a legal practitioner for the purpose.

29.8 On the date fixed by the inquiring authority, the employee shall appear before the inquiring authority at the time, place and date specified in the notice. The inquiring authority shall ask the employee whether he pleads guilty or has any defense to make and if he pleads guilty to any or all the articles of charge, the inquiring authority shall record the plea, sign the record and obtain the signature of the employee concerned thereon. The inquiring authority shall return a finding of guilt in respect of those articles of charge to which the employee concerned pleads guilty.

29.9 If the employee does not plead guilty, the inquiring authority shall adjourn the case to a later date not exceeding thirty days, after recording an order that the employee may, for the purpose of preparing his defense:

29.9.1 Inspect the documents listed with the charge-sheet

29.9.2 Submit a list of additional documents and witnesses that he wants to examine and

29.9.3 Be supplied with the copies of the statement of witnesses, if any, listed in the charge-sheet.

Note: Relevancy of the additional documents and the witnesses referred to in sub-rule (29.9.2) above will have to be given by the employee concerned and the documents and the witnesses shall be summoned if the inquiring authority is satisfied about their relevance to the charges under inquiry.

29.10 The inquiring authority shall ask the authority in whose custody or possession the documents are kept, to produce the documents on such date as may be specified.

29.11 The authority in whose custody or possession the requisitioned documents are, shall arrange to produce the same before the inquiring authority on the date, place and time specified in the requisition notice.

Provided that the authority having the custody or possession of the requisitioned documents may claim privilege if the production of such documents will be against the public interest or the interest of the company in that event, it shall inform the inquiring authority accordingly.

29.12 On the date fixed for the inquiry, the oral and documentary evidence by which the articles of charge are proposed to be proved shall be produced by or on behalf of the disciplinary authority. The witnesses shall be examined by or on behalf of the presenting officer and may be cross-examined by or on behalf of the employee.

The presenting officer shall be entitled to re-examine the witnesses on any points on which they have been cross-examined, but not a new matter, without the consent of the inquiring authority. The inquiring authority may also put such questions to the witnesses as it thinks fit.

29.13 Before the close of the prosecution case, the inquiring authority may, in its discretion, allow the presenting officer to produce evidence not included in the charge-sheet or may itself call for new evidence or recall or re-examine any witness. In such case the employee shall be given opportunity to inspect the documentary evidence before it is taken on record; or to cross-examine a witness, who has been so summoned.

29.14 When the case for the disciplinary authority is closed, the employee may be required to state his defense, orally or in writing; as he may prefer. If the defense is made orally, it shall be recorded, and the employee shall be required to sign the record. In either case a copy of the statement of defense shall be given to the presenting officer, if any, appointed.

29.15 The evidence on behalf of the employee shall then be produced. The employee may examine himself in his own behalf if he so prefers. The witnesses produced by the employee shall then be examined and shall be liable to cross-examination, re-examination and examination by the inquiring authority according to the provision applicable to the witnesses for the disciplinary authority.

29.16 The inquiring authority may, after the employee closes his case, and shall if the employee has not examined himself, generally question him on the circumstances appearing against him in the evidence for enabling the employee to explain any circumstances appearing in the evidence against him.

29.17 After the completion of the production of the evidence, the employee and the presenting officer may file written briefs of their respective cases within 15 days of the date of completion of the production of evidence.

29.18 If the employee does not submit the written statement of defense referred to in rule 28 on or before the date specified for the purpose or does not appear in person, or through the assisting officer or otherwise fails or refuses to comply with any of the provisions of these rules, the inquiring authority may hold the inquiry ex-parte.

29.19 Whenever any inquiring authority, after having heard and recorded the whole or any part of the evidence in an inquiry ceases to exercise jurisdiction therein, and is succeeded by another inquiring authority which has, and which exercises, such jurisdiction, the inquiring authority so succeeding may act on the evidence so recorded by its predecessor, or partly recorded by its predecessor and partly recorded by itself.

Provided that if the succeeding inquiry authority believes further examination of any of the witnesses whose evidence has already been recorded is necessary in the interest of justice, it may recall, examine, cross-examine and re-examine any such witnesses as herein before provided.

29.20 After the conclusion of the inquiry report shall be prepared and it shall contain

29.20.1 A gist of the articles of charge and the statement of the imputations of misconduct or misbehavior.

29.20.2 A gist of the defense of the employee in respect of each article of charge.

29.20.3 An assessment of the evidence in respect of each article of charge.

29.20.4 The findings on each article of charge and the reasons therefor.

Explanation: If in the opinion of the inquiring authority the proceedings of the inquiry establish any article of charge different from the original articles of the charge, it may record its findings on such article of charge.

Provided that the findings on such article of charge shall not be recorded unless the employee has either admitted the facts on which such articles of charge is based or has had a reasonable opportunity of defending himself against such article of charge.

The inquiring authority, where it is not itself the disciplinary authority, shall forward to the disciplinary authority the records of inquiry which shall include -

29.21 The report of the inquiry prepared by it under sub-rule (29.20) above

29.22 The written statement of defense, if any, submitted by the employee referred to in rule 28;

29.23 The oral and documentary evidence produced during the inquiry;

29.24 Written briefs referred to in sub-rule (29.17), if any;

29.25 And the orders, if any, made by the disciplinary authority and the inquiring authority regarding the inquiry.

30. Action on the inquiry report

30.1 The disciplinary authority, it is not itself the inquiring authority, may, for reasons to be recorded by it in writing remit the case to the inquiring authority for fresh or further inquiry and report and the inquiring authority shall thereupon proceed to hold the further inquiry according to the provisions of rule 29 as far as may be.

30.2 The disciplinary authority shall, if it disagrees with the findings of the inquiring authority on any article of charge, record its reasons for such disagreement and record its own findings on such charge, if the evidence on record is enough for the purpose.

30.3 If the disciplinary authority having regard to its findings on all or any of the articles of charge is of the opinion that any of the penalties specified in rule 26 should be imposed on the employee it shall, notwithstanding anything contained in rule 26 make an order imposing such penalty.

30.4 If the disciplinary authority having regard to its findings on all or any of the articles of charge, is of the opinion that no penalty is called for, it may pass an order exonerating the employee concerned.

31. Communication of order

Orders made by the disciplinary authority under rule 28 or rule 29 shall be communicated to the employee concerned, who shall also be supplied with a copy of the report of inquiry, if any.

32. Common proceeding

Where two or more employees are concerned in a case, the authority competent to impose a major penalty on all such employees may make an order directing that disciplinary proceedings against all of them may be taken in a common proceeding and the specified authority may function as the disciplinary authority for the purpose of such common proceedings.

33. Special procedure in certain cases

Notwithstanding anything contained in rule 26 or rule 28 or rule 29:

33.1 Where the disciplinary authority is satisfied for reasons to be recorded by it in writing that it is not reasonably practicable to hold an inquiry in the manner provided in these rules, the disciplinary authority may consider the circumstances of the case and pass such order as it deems fit; or

33.2 Where the disciplinary authority is satisfied that in the interest of the security of the company, it is not expedient to hold any inquiry in the manner provided in these rules it may pass such orders as it may deem fit.

33.3 Disciplinary proceedings, if instituted while the employee was in service whether before his retirement or during his re-employment, shall after the final retirement of the employee, be deemed to be proceeding and shall be continued and concluded by the authority by which it was commenced in the same manner as if the employee had continued in service.

33.4 During the pendency of the disciplinary proceedings, the disciplinary authority may withhold payment of gratuity, for enabling the competent authority to order the recovery from gratuity of the whole or part of any pecuniary loss caused to the company if the employee is found in a disciplinary proceeding or judicial proceeding to have been guilty of offences/misconduct as mentioned in sub-section (6) of section 4 of the payment of Gratuity Act, 1972, or to have caused pecuniary loss to the company by misconduct or negligence during his service including service rendered on deputation or on re-employment after retirement.

34. Appeals

34.1 An employee may appeal against an order imposing upon him any of the penalties specified in rule 26 or against the order of suspension referred to in rule 23. The appeal shall have to be put up to the authority specified in the schedule.

34.2 An appeal shall be preferred within thirty (30) days from the date of communication of the order appealed against. The appeal shall be addressed to the appellate authority specified in the schedule and submitted to the authority whose order is appealed against. The authority whose order is appealed against shall forward to the appeal together with its comments and the records of the case to the appellate authority within fifteen (15) days. The appellate authority shall consider whether the findings are justified or whether the penalty is excessive or inadequate and pass appropriate orders within three months of the date of appeal.

The appellate authority may pass order confirming, enhancing, reducing or setting aside the penalty or remitting the case to the authority which imposed the penalty or to any other authority with such direction as it may deem fit in the circumstance of the case.

Provided that if the enhanced penalty which the appellate authority proposes to impose is a major penalty specified in rule (26.2.1) to (26.2.4) of rule 26 and an inquiry as provided in rule 29 has not already been held in the case, the appellate authority shall direct that such an inquiry be held in accordance with the provisions of the rule 29 and thereafter consider the record of the inquiry and pass such orders as it may deem proper. If the appellate authority decides to enhance the punishment but an inquiry has already been held as provided in rule 29, the appellate authority shall give a show cause notice to the employee as to why the enhanced penalty should not be imposed upon him. The appellate authority shall pass final order after considering the representation, if any submitted by the employee.

35. Service of orders, notices, etc.

Every order, notice and other process made or issued under these rules shall be served in person on the employee concerned or communicated to him by registered post at his last known address or e-mail.

Electronic mail communication shall be a valid mode of delivery equivalent to sub-rule (1) and the equivalent of sub-rule (2) shall be regulated in terms of Information Technology Act, 2000 as amended and Indian Evidence Act, 1892 as amended.

36. Power to relax time limit and to condone delay

Save as otherwise expressly provided in these rules, the authority competent under these rules to make any order may, for good and enough reasons or if sufficient cause is shown, extend the time specified in these rules for anything required to be done under these rules or condone any delay.

37. Repeal and savings

Nothing in these rules shall be construed as depriving any person to whom these rules apply, of any right of appeal which had accrued to him under the rules, which have been superseded by these rules.

37.1 An appeal pending at the commencement of these rules against an order made before the commencement of these rules shall be considered and orders thereon shall be made, in accordance with these rules.

37.2 The proceedings pending at the commencement of these rules shall be continued and disposed as far as may be, in accordance with the provisions of these rules, as if such proceedings were proceedings under these rules.

37.3 Any misconduct, etc., committed prior to the issue of these rules which was a misconduct under the superseded rules shall be deemed to be a misconduct under these rules.

38. Interpretation

Where any question of interpretation or doubt arises in relation to any of these rules, the matter shall be referred to the competent authority, whose decision thereon shall be binding and final.

39. Amendments

The company may amend, modify or add to these rules, from time to time, and all such amendments, modifications or additions shall take effect from the date stated therein. *************************************************************************************************

SCHEDULE TO THE COMPANY, CONDUCT, DISCIPLINE AND APPEAL RULES

Sl No	Name of the post	Grade	Appointing Authority	Competent Authority / Disciplinary Authority	Appellate Authority
1	Trainees	Trainee	Head of HR dept / DMD / MD	Head of HR dept. / HOD	DMD / MD
	Assistants	Sr. Assistant & Assistant	Head of HR dept / DMD / MD	Head of HR dept. / HOD	DMD / MD
3	Officers	Sr. Officer & Officer	Head of HR dept / DMD / MD	Head of HR dept. / HOD	DMD / MD
4	Executives	Dy. Manager, Sr. Executive & Executive	Head of HR dept. / DMD /MD	HOD /Head of HR dept	DMD / MD
5	Managers	Manager, Sr. Manager, Chief Manager & Dy. General Manager	DMD / MD	DMD /MD
6	General Managers	General Manager	MD	MD
7	Vice Presidents	Vice President & Sr. Vice Presidents	MD	MD
8	Directors	Director	Board of Directors	Board of Directors	- -
9	Dy. Managing Director	DMD	Board of Directors	Board of Directors	- -
10	Managing Director	MD	Board of Directors	Board of Directors	- -