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step that does not exceed the rate of pay received from the releasing department immediately prior to transfer.

(iii) The employee may be given any step that does not exceed his “highest previous rate."

(7) Promotions. One of the following will apply in setting the rate of pay, subject to the pay savings provisions of § 253.156 or 5 CFR Part 531, Subpart E.

(i) If the employee's present rate of pay falls below step 1 of the proposed pay level, he will be placed in step 1.

(ii) If his present rate of pay falls between two authorized steps of the proposed pay level, he will be given the higher step.

(iii) If his present rate of pay exceeds step 3 of the proposed level, he will be placed in step 3 at his present rate.

(iv) If his present rate of pay is exactly the same as one of the authorized steps of the proposed pay level, he will be given a one step increase. If there is no rate in the higher pay level which is at least a one step increase above his existing rate of pay, he shall receive the maximum scheduled rate of such higher pay level, or his existing rate, whichever is the higher.

(V) He may be given any step beyond step 1 of the proposed pay level which does not exceed his "highest previous rate”.

(8) Reassignments. One of the following will apply in setting the rate of pay, subject to the pay savings provisions of $ 253.156 or 5 CFR, Part 531, Subpart E:

(i) The employee will retain no less than the same step in the proposed pay level which he holds in his present pay level.

(ii) He may be given any step which does not exceed his “highest previous rate”.

(9) Demotion. One of the following will apply in setting the rate of pay, subject to the pay savings provisions of § 253.156 or 5 CFR Part 531, Subpart E, except that no increase in pay shall be given when the demotion is a result of unsatisfactory performance.

(i) If the employee's existing rate of pay falls between two authorized steps of the proposed lower pay level, he may be given the higher step.

(ii) If his existing rate of pay exceeds step 3 of the proposed pay level, he may be given step 3.

(iii) If his existing rate of pay is exactly the same as the rate for one of

the authorized steps of the proposed pay level, he may be placed in that step.

(iv) He may be given any step which does not exceed his “highest previous rate."

(c) Special category. Salary changes for employees of positions in this category shall be made in accordance with regulations to be promulgated by the Panama Canal Company-Canal Zone Government except that in those cases where departments other than the Panama Canal Company-Canal Zone Government employ persons in positions in this category, the regulations will be developed jointly by the interested departments. § 253.155 Additional pay assignments;

manual-type positions. Additional pay assignments for manual-type positions may be authorized to compensate for factors of skill or working conditions which are in addition to those normally encountered in a given trade or occupation and which have not been considered in determining the pay level. Compensation for these additional pay assignments, including night differential, will be basic compensation for the purpose of computing overtime, Civil Service Retirement deductions, Social Security deductions, and Federal Employee Group Life Insurance deductions. The head of each department is authorized to adopt, in coordination with the heads of other departments, such additional pay assignments as he deems necessary, to fix the compensation for them, and to promulgate administrative regulations, based generally on Navy practice concerning Additional Pay Assignments. § 253.156 Pay saving.

(a) Whenever an employee's rate of basic compensation that is established in relation to rates of compensation for the same or similar work in the continental United States is converted under 2 C.Z.C. 144(b), 76A Stat. 17, to a rate of basic compensation established in relation to rates in areas other than the continental United States, such employee shall, pending transfer to another position for which the rate of basic compensation is established in relation to rates in the continental United States, continue to receive the rate of basic compensation (but excluding additional pay assignments) to which he was entitled immediately prior to such conversion. The saved rate shall be paid

so long as he remains in the same § 253.241 Applicability of existing law position as that in which he was

and Civil Service regulations. serving at the time his rate was con

(a) The provisions of 5 U.S.C. 5591 verted, or until subsequent change is ef

and 7501 are applicable to the removal fected to another position unless the

or suspension of those employees to change is made without an increase in

whom such provisions were applicable pay to a position of equal or higher level.

immediately prior to January 19, 1959. If the subsequent change is made to a

(b) The provisions of 5 CFR Parts position of equal or higher level and if

752 and 772, and 5 U.S.C. 5592, are appliapplication of the normal pay fixing rule

cable to preference eligibles to the extent would result in a decrease in pay, the

and in the manner specified therein. employee's saved rate shall be preserved.

(c) The provisions of 5 CFR Part 351, He shall not be eligible for within-grade

as they apply in the competitive civil salary increases granted to Non-Manual

service, and the provisions of 5 U.S.C. employees, step increases granted to

5593, are applicable to all reduction in Manual employees, or across-the-board

force actions. However, 5 CFR 351.603 increases granted to Manual employees shall not be construed as requiring the for so long as he remains in a position

assignment of a non-U.S. citizen to a sethe salary for which is derived from or

curity position. fixed in relation to wage rates existing

(d) The provisions of 5 U.S.C. 5591 in the Republic of Panama or elsewhere

shall be applicable to any person whose outside the continental United States.

removal or suspension under a depart(b) Whenever under $ 253.134 a re

ment's system established by $ 253.262 computation of the tax allowance neces

is determined to have been unjustified sitated by a change in tax laws would re

or unwarranted after review in accordsult in decreases in rates of pay, the

ance with procedures of the employing employees so affected shall, pending in

department. dividual raises or general increases in

[32 F.R. 4281, Mar. 18, 1967) base salary or wage rates which will fully offset the pay decreases attributable to

§ 253.242 Probationary employees. the tax allowance recomputation, con Any employee serving a probationary tinue to receive the rates of pay to which period shall be given a full and fair they were entitled immediately prior to trial in the duties of the position in the effective date of such recomputation.

which appointed. If the performance of Subpart — Performance Rating

his duties or his conduct during the pro

bationary period is not satisfactory to § 253.181 Rating system.

the employing department, his services Employing departments shall extend may be terminated by notifying him in to all employees any performance rating writing of the reasons for his separation system which is established for United

and of its effective date. An employee's States citizens in the Canal Zone.

services may also be terminated during

the probationary period for reasons based Subpart F--Training

in whole or in part on conditions aris§ 253.201 Training programs.

ing prior to his appointment. The em

ploying department shall notify him of Each department shall afford opportu

the reasons for his separation and its nity for all its employees, irrespective of

effective date. citizenship, to participate in such training programs as it may conduct.

Subpart 1-Grievances and Appeals Subpart G-Military Service

CROSS REFERENCE: For Civil Service Regu

lations referred to in this subpart, see 5 CFR, $ 253.221 Rights of employees.

Chapter I, Subchapter B. The rights of employees called to ac

§ 253.261 Grievance procedures. tive military duty in the Armed Forces of the United States will be determined

Each employing department shall in accordance with 5 CFR Part 353.

make available to its employees equal

rights to utilize any grievance procedure Subpart H-Adverse Personnel and

established by such department. Reduction in Force Actions

$ 253.262 Adverse actions and appeals. CROSS REFERENCE: For Civil Service Regulations referred to in this subpart, see 5 CFR,

Each department shall establish an Chapter I, Subchapter B.

adverse action and appeals system under

which the provisions of 5 CFR Part 752, are administratively extended to employees in categories corresponding to those in the U.S. competitive civil service to which that part applies. Appeals to the Civil Service Commission shall not, however, be so extended by such administrative action. $ 253.263 Appeals from applicants or

eligibles. Applicants and eligibles who have reason to believe that the regulations in this part were not followed in rating their examinations or in making selections for appointment may appeal to the Board. In the event they are not satisfied with the decision of the Board, and they can show reason to believe that the action of the Board was arbitary, capricious, or in violation of these regulations, they may request a review of the decision of the Board by the Secretary of the Army. 8 253.264 Classification appeals.

Any employee may request at any time that his employing department review and revise or adjust the classification, grade, and pay level of his position, or any of them, as the case may be. Such requests for review and revision or adjustment shall be submitted and adjudicated in accordance with the regularly established procedures of the employing department. In the event of adverse decision by the employing department, the employee shall have the right to appeal, in writing, to the Canal Zone Board of Appeals. $ 253.265 Canal Zone Board of Appeals,

terms of members. (a) Section 251.41 continues, and provides for the composition and appointment of members of, the Canal Zone Board of Appeals to perform the functions prescribed by 2 C.Z.C. 152, 153, 76A Stat. 19.

(b) The term of service for each member or alternate member of the Canal Zone Board of Appeals shall be for 2 years, provided that the Secretary of the Army may, in his discretion terminate or extend the term of service of any member or alternate member at any time. Individuals who are designated as members or alternate members shall be detailed to the Canal Zone Board of Appeals for such periods as their services are required.

§ 253.266 Appeals procedures.

The Canal Zone Board of Appeals shall formulate the procedures necessary to the performance of the functions prescribed by 2 C.Z.C. 152, 153, 76A Stat. 19. Those portions of the procedures establishing time limits for filing appeals, the form in which appeals are to be submitted, and the circumstances under which the personal appearance of an employee or his representative will be authorized, shall be published for the information of all employees. $ 253.267 Decisions of Canal Zone

Board of Appeals. (a) Decisions of the Canal Zone Board of Appeals shall be binding upon all employing departments, and shall be effective not later than the beginning of the fourth pay period following the receipt of the decision in the employing department unless a specific date is stated in the decision in accordance with paragraph (b) of this section.

(b) When the appeal to the Canal Zone Board of Appeals is made within 30 calendar days from the date of an employee's receipt of an adverse decision from his employing department on a classification appeal provided by $ 253.264, if it is from an action lowering the grade or pay level of the employee's position, and the decision of the Canal Zone Board of Appeals raises the grade or pay level of the position, the effective date shall be retroactive to the date of the action which lowered the grade or pay level. However, when the decision of the Canal Zone Board of Appeals raises the grade or pay level of the position above the grade or pay level in effect immediately preceding the lowering thereof, retroactivity will apply only to the extent of restoration to the grade or pay level in effect immediately preceding the lowering thereof. Retroactivity may be based only on duties and responsibilities existing at the time of the lowering of the grade or pay level and not on the basis of duties and responsibilities later assigned.

(c) The right to a retroactive effective date under paragraph (b) of this section may be preserved in the discretion of the Canal Zone Board of Appeals upon a showing by the employee that reasons beyond his control prevented him from appealing within the 30-day period referred to in that subparagraph and that

he did appeal as promptly as circumstances permitted.

CROSS REFERENCE: Decisions of Canal Zone Board of Appeals to be by majority vote, see $ 251.42.

Subpart - Records and Reports § 253.291 Applicability of Federal Per

sonnel Manual. The provisions of Chapter 296 of the Federal Personnel Manual will, except as indicated below, apply to the preparation of notifications of personnel actions taken under the regulations in this chapter, the maintenance of employment records, and the reporting of employment.

(a) All appointment and conversion actions will be prefaced by the term “Canal Zone” and all personnel actions will be identified as taken under the authority of the regulations in this chapter.

(b) The noncompetitive appointment of a former Federal employee under the provisions of $ 253.44, will be termed a reappointment rather than a reinstatement. $ 253.292 Official Personnel Folders.

(a) The Panama Canal Company or Canal Zone Government may retain, on a permanent basis, the Official Personnel Folders for non-U.S. citizens separated from employment with activities under their direction.

(b) The Official Personnel Folders of non-U.S. citizen employees separated from activities other than the Panama Canal Company or Canal Zone Government may be retained by the employing activity or the Board for not to exceed 2 years following separation. Upon expiration of this period, the Official Personnel Folders will be transferred to the Federal Records Center for permanent storage.

Subpart B-Ethical and Other Conduct and

Responsibilities of Employees Sec. 255.735–30 Proscribed actions. 255.735-31 Gifts, entertainment, and favors. 255.735–32 Outside employment and other

activity. 255.735-33 Financial interests. 255.735–34 Use of Government property. 255.735–35 Misuse of information. 255.735–36 Indebtedness. 255.735–37 Gambling, betting, and lotteries. 255.735–38 General conduct prejudicial to

the Government. 255.735-39 Publication of articles; public

statements. 255.735-40 Miscellaneous statutory provi

sions. 255.735-41 Participation in Panamanian

political activities. Subpart C-Ethical and Other Conduct and Re

sponsibilities of Special Government Employees 255.735–51 Use of Government employment. 255.735–52 Use of inside information. 255.735-53 Coercion. 255.735–54 Gifts, entertainment, and favors. 255.735-55 Applicability of other require

ments. 255.735–56 Miscellaneous statutory provi

sions.

Subpart D-Statements of Employment and

Financial Interests 255.735–71 Form and content of statements. 255.735–72 Employees required to submit

statements. 255.735–72a Employee's complaint on filing

requirement. 255.735–73 Time and place for submission of

employees' statements. 255.735–74 Supplementary statements. 255.735–75 Interest of employees' relatives. 255.735–76 Information not known by em

ployees. 255.735–77 Information prohibited. 255.735–78 Confidentiality of employees'

statements. 255.735–79 Effect of employees' statements

on other requirements. 255.735–80 Statements required from special

Government employees. AUTHORITY: The provisions of this Part 255 issued under E.O. 11222 of May 8, 1965, 30 F.R. 6469, 3 CFR, 1965 Supp.; 5 CFR 735.104.

SOURCE: The provisions of this Part 255 appear at 31 F.R. 12347, Sept. 16, 1966, unless otherwise noted.

Subpart A-General Provisions § 255.735-1 Purpose.

(a) The maintenance of unusually high standards of honesty, integrity, impartiality, and conduct by Government employees and special Government em

PART 255-EMPLOYEE RESPONSI

BILITIES AND CONDUCT

Subpart A-General Provisions Sec. 255.735-1 Purpose. 255.735-2 Definitions. 255.735-3 Informing employees. 255.735–4 Interpretation and advisory sery

ices. 255.735-5 Reviewing statements and re

porting conflicts of interest. 255.735-6 Disciplinary and other remedial

action. 255.735–7 Supplemental instructions.

ployees is essential to assure the proper and his ex-officio capacity as President, performance of Government business Panama Canal Company. and the maintenance of confidence by (e) "Panama Canal agencies” means the public in the U.S. Government. The the Canal Zone Government and Panama avoidance of misconduct and conflicts of Canal Company. interest on the part of Government em (f) “Person" means an individual, a ployees and special Government em corporation, a company, an association, ployees through informed judgment is a firm, a partnership, a society, a joint indispensable to the maintenance of these stock company, or any other crganization standards. To accord with these con or institution. cepts and pursuant to Executive Order (g) "Special Government employee" 11222 of May 8, 1965, and regulations means a special Government employee as issued by the U.S. Civil Service Commis defined in section 202 of Title 18 of the sion (5 CFR Part 735), the regulations United States Code and generally refers in this part are issued to prescribe stand to experts and consultants and other offiards of employee conduct and responsi cers and employees who are retained, bility of employees and special Govern designated, appointed, or employed to ment employees of the Panama Canal perform, with or without compensation, agencies, and to require the submission for not more than 130 days during any of statements concerning employment period of 365 consecutive days, temporary and financial interests.

duties either on a full-time or intermit(b) The nature of the Canal enter tent basis. prise, its geographical location, and the (h) “The Commission's regulations" political status of the United States in means the regulations issued by the U.S. the Canal Zone make it necessary to im Civil Service Commission, “Employee Repose certain restrictions on personal con sponsibilities and Conduct” (5 CFR Part duct both on and off the job that are not 735). ordinarily applicable to Federal employ [31 F.R. 12347, Sept. 16, 1966, as amended at ees. In particular, the officially declared 32 F.R. 15832, Nov. 17, 1967] interest and policy of the Government of

§ 255.735–3 Informing employees. the United States in strengthening the bonds of friendship with the Government

The Personnel Director shall be reand people of Panama, place a direct re sponsible for: sponsibility on each employee, for him (a) Furnishing each employee and self and his dependents, to refrain from

special Government employee a copy of any action or conduct that might in any the regulations in this part within 90 manner obstruct accomplishment of this days after approval by the Civil Service end or of any other declared national Commission; policy objective of the United States con (b) Furnishing each new employee cerning relations between the United and special Government employee a copy States and Panama.

of the regulations in this part at the

time of his entrance on duty; $ 255.735-2 Definitions.

(c) Bringing the regulations in this In the regulations in this part, unless part to the attention of each employee the context indicates otherwise:

and special Government employee an(a) “Employee" means an officer or nually, and at such other times as ciremployee of the Panama Canal agencies, cumstances warrant; but does not include a special Govern (d) Having available for review by ment employee.

employees and special Government em(b) "Executive order" means Execu ployees, as appropriate, copies of laws, tive Order 11222 of May 8, 1965, “Pre the Executive order, the regulations in scribing Standards of Ethical Conduct this part, and pertinent Civil Service for Government Officers and Employees" Commission regulations and instructions, (30 F.R. 6469).

relating to ethical and other conduct. (C) "Executive Secretary” means the Executive Secretary of the Canal Zone

§ 255.735–4 Interpretation and advisory Government in both that capacity and

services. his ex-officio capacity as Executive As (a) The Executive Secretary shall sistant to the President, Panama Canal serve as Counselor on employee responsiCompany.

bilities and conduct for the Panama (d) “Governor” means the Governor Canal agencies and as the Panama Canal of the Canal Zone in both that capacity agencies' designee to the Civil Service

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