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 position as that in which he was serving at the time his rate was converted, or until subsequent change is effected to another position unless the change is made without an increase in pay to a position of equal or higher level. If the subsequent change is made to a position of equal or higher level and if application of the normal pay fixing rule would result in a decrease in pay, the employee's saved rate shall be preserved. He shall not be eligible for within-grade salary increases granted to Non-Manual employees, step increases granted to Manual employees, or across-the-board increases granted to Manual employees for so long as he remains in a position the salary for which is derived from or fixed in relation to wage rates existing in the Republic of Panama or elsewhere outside the continental United States. (b) Whenever under § 253.134 a recomputation of the tax allowance necessitated by a change in tax laws would result in decreases in rates of pay, the employees so affected shall, pending individual raises or general increases in base salary or wage rates which will fully offset the pay decreases attributable to the tax allowance recomputation, continue to receive the rates of pay to which they were entitled immediately prior to the effective date of such recomputation. Subpart E-Performance Rating § 253.181 Rating system. Employing departments shall extend to all employees any performance rating system which is established for United States citizens in the Canal Zone. Subpart F-Training § 253.201 Training programs. Each department shall afford opportunity for all its employees, irrespective of citizenship, to participate in such training programs as it may conduct. Subpart G-Military Service § 253.221 Rights of employees. The rights of employees called to active military duty in the Armed Forces of the United States will be determined in accordance with 5 CFR Part 353. Subpart H-Adverse Personnel and Reduction in Force Actions CROSS REFERENCE: For Civil Service Regulations referred to in this subpart, see 5 CFR, Chapter I, Subchapter B. § 253.241 Applicability of existing law and Civil Service regulations. (a) The provisions of 5 U.S.C. 5591 and 7501 are applicable to the removal or suspension of those employees to whom such provisions were applicable immediately prior to January 19, 1959. (b) The provisions of 5 CFR Parts 752 and 772, and 5 U.S.C. 5592, are applicable to preference eligibles to the extent and in the manner specified therein. (c) The provisions of 5 CFR Part 351, as they apply in the competitive civil service, and the provisions of 5 U.S.C. 5593, are applicable to all reduction in force actions. However, 5 CFR 351.603 shall not be construed as requiring the assignment of a non-U.S. citizen to a security position. (d) The provisions of 5 U.S.C. 5591 shall be applicable to any person whose removal or suspension under a department's system established by § 253.262 is determined to have been unjustified or unwarranted after review in accordance with procedures of the employing department. [32 F.R. 4281, Mar. 18, 1967] § 253.242 Probationary employees. Any employee serving a probationary period shall be given a full and fair trial in the duties of the position in which appointed. If the performance of his duties or his conduct during the probationary period is not satisfactory to the employing department, his services may be terminated by notifying him in writing of the reasons for his separation and of its effective date. An employee's services may also be terminated during the probationary period for reasons based in whole or in part on conditions arising prior to his appointment. The employing department shall notify him of the reasons for his separation and its effective date. Subpart -Grievances and Appeals CROSS REFERENCE: For Civil Service Regulations referred to in this subpart, see 5 CFR, Chapter I, Subchapter B. § 253.261 Grievance procedures. Each employing department shall make available to its employees equal rights to utilize any grievance procedure established by such department. § 253.262 Adverse actions and appeals. Each department shall establish an 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. § 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 J-Records and Reports § 253.291 Applicability of Federal Personnel 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 reinstate ment. § 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. 255.735-79 255.735-80 statements. Effect of employees' statements 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 ployees is essential to assure the proper performance of Government business and the maintenance of confidence by the public in the U.S. Government. The avoidance of misconduct and conflicts of interest on the part of Government employees and special Government employees through informed judgment is indispensable to the maintenance of these standards. To accord with these concepts and pursuant to Executive Order 11222 of May 8, 1965, and regulations issued by the U.S. Civil Service Commission (5 CFR Part 735), the regulations in this part are issued to prescribe standards of employee conduct and responsibility of employees and special Government employees of the Panama Canal agencies, and to require the submission of statements concerning employment and financial interests. (b) The nature of the Canal enterprise, its geographical location, and the political status of the United States in the Canal Zone make it necessary to impose certain restrictions on personal conduct both on and off the job that are not ordinarily applicable to Federal employees. In particular, the officially declared interest and policy of the Government of the United States in strengthening the bonds of friendship with the Government and people of Panama, place a direct responsibility on each employee, for himself and his dependents, to refrain from any action or conduct that might in any manner obstruct accomplishment of this end or of any other declared nationalpolicy objective of the United States concerning relations between the United States and Panama. In the regulations in this part, unless the context indicates otherwise: (a) "Employee" means an officer or employee of the Panama Canal agencies, but does not include a special Government employee. (b) "Executive order" means Executive Order 11222 of May 8, 1965, "Prescribing Standards of Ethical Conduct for Government Officers and Employees" (30 F.R. 6469). (c) "Executive Secretary" means the Executive Secretary of the Canal Zone Government in both that capacity and his ex-officio capacity as Executive Assistant to the President, Panama Canal Company. (d) "Governor" means the Governor of the Canal Zone in both that capacity and his ex-officio capacity as President, Panama Canal Company. (e) "Panama Canal agencies" means the Canal Zone Government and Panama Canal Company. (f) "Person" means an individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other crganization or institution. (g) "Special Government employee” means a special Government employee as defined in section 202 of Title 18 of the United States Code and generally refers to experts and consultants and other officers and employees who are retained, designated, appointed, or employed to perform, with or without compensation, for not more than 130 days during any period of 365 consecutive days, temporary duties either on a full-time or intermittent basis. (h) “The Commission's regulations” means the regulations issued by the U.S. Civil Service Commission, "Employee Responsibilities and Conduct" (5 CFR Part 735). [31 F.R. 12347, Sept. 16, 1966, as amended at 32 F.R. 15832, Nov. 17, 1967] § 255.735-3 Informing employees. The Personnel Director shall be responsible for: (a) Furnishing each employee and special Government employee a copy of the regulations in this part within 90 days after approval by the Civil Service Commission; (b) Furnishing each new employee and special Government employee a copy of the regulations in this part at the time of his entrance on duty; (c) Bringing the regulations in this part to the attention of each employee and special Government employee annually, and at such other times as circumstances warrant; (d) Having available for review by employees and special Government employees, as appropriate, copies of laws, the Executive order, the regulations in this part, and pertinent Civil Service Commission regulations and instructions, relating to ethical and other conduct. § 255.735-4 Interpretation and advisory services. (a) The Executive Secretary shall serve as Counselor on employee responsibilities and conduct for the Panama Canal agencies and as the Panama Canal agencies' designee to the Civil Service |