DISCIPLINARY PROCEDURE

1 Disciplinary Policy and Procedure

1. Introduction

1.1 It is Management's responsibility to establish fair and equitable standards of conduct and performance consistent with the specific requirements of the industry and the business requirements of the Company; and employees have the right to expect fair, just and consistent treatment.

1.2 While it remains the prerogative of Management to ensure the proper administration of discipline, it is at all times the responsibility of all employees to maintain discipline.

1.3 The Company requires that all employees observe the code of conduct which are set out in the Disciplinary Regulations and Code. Given the nature of our industry and the Company business requirements, the standard of personal conduct and self-discipline required of our employees is extremely stringent. In particular, customer service, teamwork and store cleanliness are particularly valued within the Company, and all employees are required to have special regard to the Company’s standards in this regard.

1.4 The provisions of:

1.4.1 the Disciplinary Regulations, Procedure and Code outlined herein are to be used by Management whenever the conduct or capacity in respect of work performance of any employee is deemed by Management to be undesirable/ unacceptable.

1.4.2 the Act shall apply in respect of dismissals arising from the operational requirements of the business,

1.4.3 the Code of Good Practice contained in Schedule 8 of Act 66 of 1995 shall apply in respect of dismissals for the incapacity of an employee arising from ill health or injury.

1.5 This disciplinary procedure shall apply equally to all employees of the Company, including managers.

1.6 Where an employee wishes to lodge a complaint against the performance or conduct of a member of management, he shall lodge a grievance against such manager in accordance with the grievance procedure. Provided the grievance is not frivolous or vexatious in nature, that is, that it is serious and substantial, disciplinary action may be initiated by the Company against the manager.

1.7 The disciplinary procedures set out hereunder shall at all times be subject to the requirements of the Labour Relations Act (LRA) including the Code of Good Practice, any other applicable legislation and the particular requirements of the industry and the Company.

2. Primary Objective

2.1 The primary objective of the disciplinary procedure is:

2.1.1 to ensure the maintenance of satisfactory work performance and/or acceptable standards of conduct of all employees;

2.1.2 to ensure that employees are treated fairly and consistently and any disciplinary action is effected for a fair reason and in accordance with a fair procedure;

2.1.3 that discipline is based on the philosophy of discouraging and/or correcting unacceptable conduct and/or unsatisfactory performance and getting the employee involved in changing such conduct or performance.

3. General Principles

3.1 Having regard to the particular circumstances of each individual case, and except where exceptional circumstances prevail, no employee shall be disciplined without being afforded the opportunity of stating his case.

3.2 Except in instances where the consistent sanction is a written warning, final written warning or dismissal, formal disciplinary procedures do not have to be invoked every time a standard of conduct or performance is breached.

3.2.1 Informal hearings and correction is often the best and most effective way to deal with minor violations of conduct and performance standards.

3.2.2 Formal disciplinary procedures should in normal circumstances only be initiated against an employee for poor work performance if such disciplinary action is preceded by appropriate evaluation, instruction, training, guidance or counselling and the employee has been given a reasonable opportunity to improve his work performance.

3.3 Where formal disciplinary procedures are evoked against an employee every employee shall have the right to:

3.3.1 be represented by an employee from the workplace at which he is employed. However, it is his duty to arrange for such representation. In instances of the dismissal of a shop steward, a Union Official may represent the employee at the Appeal Hearing stage.

3.3.2 be notified in writing of the charge in advance of the disciplinary hearing, thereby affording the employee and his representative an opportunity to prepare for the disciplinary hearing.

3.3.3 request an interpreter. It is the duty of the Company to provide an interpreter should the employee request one.

3.3.4 be allowed to state his case, and defend himself, both in respect of the allegations or charges as well as in the determination of a sanction.

3.3.5 call witnesses. However, it is the employee's responsibility to arrange for the attendance of such witnesses.

3.3.6 cross-examine any Company witnesses, or to have copies of any documents produced as evidence at the hearing.

3.3.7 appeal to a higher authority/ level of Management in accordance with the Appeal Procedure set out hereunder.

3.3.8 be notified in writing of the outcome of the Disciplinary Hearing.

3.3.9 be entitled to all documentary evidence and statements presented as evidence at the disciplinary hearing as well as a copy of the minutes of the disciplinary hearing.

3.4 Where an employee refuses and/or fails to attend the disciplinary hearing, the disciplinary hearing may be held in his absence without further notice to him.

3.5 A record of the proceedings will be kept by a person appointed or nominated by the Chairperson.

4. Disciplinary Action

4.1 The primary purpose of discipline is to encourage employees to correct their conduct or performance and/ or to discourage employees from breaching standards of conduct and/ or performance.

4.2 There are five forms of disciplinary sanctions which can be taken against any employee, namely:

4.2.1 verbal warning

4.2.2 written warning

4.2.3 final written warning

4.2.4 dismissal with notice

4.2.5 dismissal without notice (summary dismissal)

4.3 Disciplinary warnings shall remain operative for a period of six (6) months from their date of issue.

4.4 This shall not preclude the right of the Chairperson to impose other forms of disciplinary action as an alternative to dismissal, for example, suspension without pay, demotion (in salary and status) for poor work performance, or extended final written warnings.

4.5 In determining an appropriate sanction, the Chairperson shall have regard to the Company’s consistent sanction for such offence or breach of a work performance standard, as well as the principle of flexibility.

4.5.1 In applying the principle of flexibility, the Chairperson shall have regard to aggravating and mitigating circumstances in respect of the following:

a. The seriousness of and particular circumstances surrounding the breach of the standard;

b. The interests and personal circumstances of the employee, such as for example, his disciplinary or work record and his length of service;

c. The interests of the Company and the particular requirements of the industry and business.

d. That the primary purpose of disciplinary action should be corrective and progressive in nature.

5. Disciplinary Records

The Company shall keep records for each employee specifying the nature of any disciplinary transgressions, the action taken by the Company and the reasons for the actions.

6. Suspension prior to the Disciplinary Hearing

6.1 The Company shall have the right to suspend an employee with pay prior to the determination of disciplinary action where, in the opinion of Management, an offence by an employee is regarded as serious, and/or that the continued presence of the employee at the Company's premises may prejudice the interests of the Company, the employee, other employees, or hamper investigation.

7. Rules and Regulations

7.1 The Company is responsible for ensuring that standards of conduct and/or performance are clear and communicated and available to all employees.

7.2 The Rules and Regulations established by the Company, and amended from time to time, are not exhaustive in nature, and merely serve as a guideline to Managers and Employees as to what constitutes acceptable conduct and performance. Some rules or standards may be so well established and known that it is not necessary to communicate them.

8. Disciplinary Hearing

8.1 Disciplinary action shall be initiated against an employee when an employee is issued with a Notice to Attend a Disciplinary Hearing.

8.2 The disciplinary hearing shall be presided over by any member of management.

8.3 The disciplinary hearing shall be conducted in accordance with the general principles and time limits set out in clauses 3 and 10 hereof. In particular:

8.3.1 During the disciplinary hearing, the Company must present its case and evidence against the employee and call witnesses to substantiate its case. The employee shall then have the right to state or have his representative state his case and to call witnesses. Both the Company and the employee will be entitled to cross-examine any witnesses during the proceedings.

8.3.2 Once all evidence and arguments have been presented, the Chairperson must first give a finding in respect of the charge and thereafter, the Chairperson will hear evidence from the Company and from the employee in order to determine the nature of the disciplinary action to be taken, if any, in accordance with clause 4 hereof.

8.4 The Chairperson shall present his findings to the employee in writing (See Form 3).

8.5 The Chairperson shall clearly inform the employee of his right to appeal and the steps involved.

9. Appeal Hearing

9.1 Should an employee appeal against the finding of the disciplinary hearing, such appeal must be lodged with the Company / Department / office Manager.

9.2 Appeal hearings may be heard by the Manager or a member of management nominated by him who is of the same or of a higher status as the Chairperson of the Disciplinary Hearing.

9.3 Any employee has the right to appeal against any disciplinary action taken against him.

9.5 Notice of such appeal shall be in writing and in accordance with the time limits set out in this procedure.

9.6 The appeal hearing shall be conducted in accordance with the general principles and time limits set out in clauses 3 and 10 hereof. In particular:

9.6.1 During the appeal hearing, the appellant must present his case, stating the nature and grounds for his appeal, and lead evidence or argument in this regard. The appellant shall have the right to state or have his representative state his case and to call witnesses. The Company shall then have the opportunity to state its case and call and cross examine witnesses.

9.7 The Chairperson shall then determine the merits of the appellant’s appeal and make a determination in writing to the him.

9.8 If there is no satisfaction on the part of the employee thereafter, a dispute may be declared and the provisions of the Dispute Procedure shall be followed, as laid down in the Recognition and Procedural Agreement.

10. Time Limits

10.1 The following schedule constitutes a guide as to the time limits within which the various stages of the disciplinary procedure are to be initiated. The time limits are in no way prescriptive and may be varied having regard to the particular circumstances of each case, subject to the requirements of fairness and reasonableness.

10.2 Schedule

10. Forms

10.1 An employee's signature on any form is not an admission of guilt and is merely an acknowledgement that he has received the form. Should an employee, or his representative, refuse to sign a form, it will not prevent the disciplinary action from being taken, and their refusal should merely be noted on the form.

10.2 To assist in the application of the procedure, the following standard forms are available.

10.2.1 Form 1a. Notice to attend a Disciplinary Hearing For Work Performance

Form 1b. Notice to attend a Disciplinary Hearing For Misconduct

10.2.2 Form 2a. Notice of Suspension prior to Disciplinary Hearing

Form 2b. Notice of Suspension prior to Disciplinary Hearing (where no specific disciplinary charge has been formulated yet)

10.2.3 Form 3a. Finding of Disciplinary Hearing for Work Performance

Form 3b. Finding of Disciplinary Hearing for Misconduct

10.2.4 Form 4. Lodgement of an Appeal

10.2.5 Form 5. Notice to attend Appeal Hearing

10.2.6 Form 6. Finding of Appeal Hearing

10.2.7 Form 7. Checklist for assessing under the influence of an intoxicating substance.

10.2.8 Form 8 Statement Forms.

10.2.9 Form 9 Medical Report

10.2.10 --- Telegrams for Absenteeism