A padlock has a shackle having a long leg and a short leg, and a spindle with an extended member, the extended member engaged with the long leg of the shackle for movement together. The padlock also has a cylinder to receive a key for key operation, a stack of clutches and a plurality of dials engageable with the clutches to form a combination code, each clutch having an opening to receive the spindle. When the padlock is unlocked by the combination code, the spindle is engaged with the clutch stack for movement together along with the shackle. When the padlock is unlocked by the key operation, the spindle is disengaged with the clutch stack, allowing the spindle and the shackle to move upward relative to the clutch stack.