Page 1 of 7 Title: Subject Matter Experts: Richard Ferguson Diana Harris Peter Schneider Responsible Officer: William Madison Approved By: Corporate Compliance Committee Approval Date: January 25, 2005 I. POLICY SUMMARY This Policy provides a framework to assist managers in establishing a consistent procedure to follow in situations where disciplinary action is appropriate. It is the Company s Policy to enforce its Compliance Program (including the Code of Entegrity and corporate policies) through appropriate disciplinary mechanisms. When an employee is determined to have engaged in a violation of the Compliance Program, they may be subject to discipline under this Policy, up to and including dismissal and/or civil action. For employees covered by collective bargaining agreements, disciplinary actions will be applied in accordance with their union contracts, if applicable. No single set of disciplinary options is appropriate in every case. The Company, therefore, retains discretion to structure discipline on a case by case basis, as the circumstances warrant. All employees of Entergy shall immediately report known, suspected, or potential violations of this Policy by following the procedures described in the Reporting Violations Policy. Please refer to the following detailed Policy for further information.
Page 2 of 7 1.0 PURPOSE AND APPLICABILITY II. DETAILED POLICY The purpose of this Policy is to provide a framework to assist managers in establishing a consistent procedure to follow in situations where discipline is appropriate. This Policy is also designed to emphasize to employees that violations of law or Company policy can result in disciplinary action, up to and including discharge and/or civil action. THIS POLICY APPLIES TO ANY AND ALL EMPLOYEES OF ANY ENTERGY SYSTEM COMPANY, UNLESS OTHERWISE EXPRESSLY EXCLUDED. FOR EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT, THE APPLICABLE COLLECTIVE BARGAINING AGREEMENT WILL GOVERN TO THE EXTENT IT CONFLICTS WITH THIS POLICY. NOTHING CONTAINED IN THIS POLICY SHOULD BE CONSTRUED TO SUGGEST THAT EMPLOYEES OF A PARTICULAR SUBSIDIARY OR AFFILIATE OF ENTERGY CORPORATION ARE ALSO EMPLOYEES OF ENTERGY CORPORATION OR ANY OTHER AFFILIATE OR SUBSIDIARY OF ENTERGY CORPORATION. MOREOVER, THIS POLICY DOES NOT CREATE ANY EMPLOYMENT RELATIONSHIP BETWEEN ANY PERSON AND ANY COMPANY. 2.0 REFERENCES & CROSS REFERENCES 2.1 Entergy System Policies Conflicts of Interests; Drugs, Alcohol, Firearms & Weapons; Employment At Will; Harassment Prevention; Issue Resolution; Reporting Violations; and Workplace Violence. 2.2 The Entergy System Code of Entegrity 2.3 Collective Bargaining Agreements 3.0 DEFINITIONS 3.1 Discipline Action taken that attempts to result in a desired behavior or skill, or a penalty imposed as a result of undesirable behavior. Discipline can be taken for many reasons, including, but not limited to, work performance, violations of the law, attendance, and violations of the Company s Code of Entegrity and/or company policies.
Page 3 of 7 3.2 Entergy, Entergy System Company, or Company Entergy Corporation and all of its subsidiaries and affiliates in which Entergy Corporation has a direct or indirect majority ownership in such subsidiary or affiliate. 3.3 Policy This Discipline Policy. 4.0 RESPONSIBILITY 4.1 Line Management is responsible for being familiar with the provisions of this Policy and administering it equitably throughout their respective organizations. Supervisors must set an example at all times of the highest integrity, including in the supervision of employees under their management, and take appropriate and timely action, through reporting, discipline or other appropriate measures, to address violations by their employees that are known or are suspected. 4.2 Human Resources personnel are responsible for providing guidance and advice to line management concerning specific discipline problems. 4.3 The Senior Vice-President, Human Resources & Administration is responsible for interpretation of this Policy. 4.4 The Senior Vice-President, Human Resources & Administration is responsible for the maintenance of this Policy. 4.5 All employees of Entergy shall immediately report known, suspected, or potential violations of this Policy by following the procedures described in the Reporting Violations Policy. 5.0 DETAILS 5.1 Disciplinary Action may encompass a broad range of alternatives from informal counseling to termination of employment. Disciplinary Action may include the suspension without pay of both exempt and non-exempt employees for a period of time determined to be appropriate by management. In cases of exempt employees, any suspension without pay shall be in increments of one or more full days and shall only be used for infractions of workplace conduct rules, including, but not limited to, violations of the Harassment Prevention Policy, the Workplace Violence Policy, the Conflicts of Interests Policy, and the Drugs, Alcohol, Firearms and Weapons Policy. 5.2 Progressive Discipline is recommended in many cases where discipline is needed. The four progressive steps include counseling, the oral warning, the
Page 4 of 7 written warning and the application of consequences (withholding pay, demotion, temporary or permanent reassignment, suspension or termination.) 5.3 Exceptions No single set of disciplinary options is appropriate in every case. Therefore, the Company retains discretion to structure discipline on a case-bycase basis, as the circumstances warrant (subject to the terms of a collective bargaining agreement, if applicable.) 5.4 Investigations A period of investigation may be necessary prior to determining the nature of appropriateness of disciplinary action. While certain situation may warrant investigation, it is at the discretion of the Company if such an investigation takes place. 5.5 Employment At Will - This is not intended to and does not modify the employment at-will relationship with the Company and does not confer any rights or recourse to individual employees who may be subject to disciplinary action. 6.0 PROCEDURES 6.1 Progressive Discipline should be administered in many cases where discipline is necessary. 6.1.1 Counseling is appropriate to correct a minor violation or emerging performance problem. Counseling can be effective in making the employee aware of a deficiency and provide a forum to jointly develop effective solutions. 6.1.1.1 The purpose of this meeting is to make the employee aware that expectations are not being met and to learn the cause of the problem. 6.1.1.2 The supervisor should offer the employee assistance, either through the Employee Assistance Program or in the form of independent action suggested by either the employer or worker. 6.1.2 Oral Warning - This should be used when an employee does not respond to counseling or when the seriousness of the behavior/incident warrants this level of attention. 6.1.2.1 The purpose of this meeting is to maintain an open dialog with the employee and continue to offer the Company s assistance.
Page 5 of 7 6.1.2.2 It should be clear to the employee what behavioral change is expected, and the specific penalties that could result for further violations. 6.1.2.3 The oral warning should be documented in the departmental file. 6.1.3 Written Warning This level of corrective action should be administered when an employee does not meet a commitment to improve following an oral warning or when a single incident is committed that is serious enough to warrant such action. 6.1.3.1 A written warning is a formal memorandum to the employee that documents a discussion of unacceptable behavior or a performance problem. The memo should include a review of the previous discipline (counseling and/or oral warning), the supervisor s specific expectations, the steps the employee must take to improve the situation, a time frame for improvement and further discussions and potential consequences of failure to correct the problem. 6.1.3.2 A written warning should be signed by the employee and the supervisor and a copy placed in the employee s personnel file. 6.1.3.3 Written warnings require prior approval from the supervisor s immediate supervision. 6.1.4 Application of Consequences 6.1.4.1 Depending on the nature of the behavior/incident various levels of consequences should be considered, such as withholding pay (for unjustified absences, etc.), and/or temporary or permanent reassignment, suspension, demotion in salary grade, and termination. 6.1.4.2 Suspension should be considered when an employee does not meet a commitment to improve following a written warning, or when a single infraction is serious enough to warrant this level of discipline. 6.1.4.2.1 The supervisor should make clear, in writing, the extreme seriousness of the behavior/incident and the requirement for a total performance commitment. The employee
Page 6 of 7 should be asked to make a conscious decision whether to meet the Company s standards in all areas, or to leave the Company. 6.1.4.2.2 The employee should be suspended for an appropriate number of days in accordance with the seriousness of the infraction. Suspension is usually without pay. In the case of exempt employees, suspension without pay shall only be in increments of one or more full days. Refer to Section 5.1 for additional information. 6.1.4.2.3 If the employee elects to continue employment with the Company, clear warning should be given that any performance problems requiring corrective action is likely to result in further discipline up to and including termination. 6.1.4.2.4 Suspension requires the approval of the line management Vice-President and the Director of Human Resources or the Senior Vice-President, Human Resources & Administration. 6.1.4.3 Termination is appropriate when adequate improvement in performance or behavior is not made after a suspension or when the employee commits another infraction that might otherwise call for formal action. Termination without prior warning is appropriate only in extreme violations. Some offenses may be of such a nature that progressive discipline would not be followed and termination would be the immediate action. An example of such conduct would be stealing. 6.1.4.3.1 Termination requires the approval of the line management Vice-President and the Director of Human Resources or the Senior Vice-President, Human Resources & Administration. 6.1.4.3.2 Employees terminated for disciplinary reasons are not eligible for severance pay. 6.2 Investigations It is at the discretion of the Company whether or not an investigation is conducted. In some circumstances, it may be best to remove an employee from the situation pending the outcome of an investigation. Suspension during an investigation is usually with pay.
Page 7 of 7 7.0 ATTACHMENTS None.