Approved Section E HR Manual Jan 2014

8/10/2019 Approved Section E HR Manual Jan 2014

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SECTION E

COMPENSATION AND BENEFITS


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SECTION E, CHAPTER XXVIII- COMPENSATION AND BENEFITS POLICY

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CHAPTER XXVIII - COMPENSATION AND BENEFITS POLICY

1.0. POLICY

It is the policy of Askari Cement to attract and retain the best qualified human resource. A very important aspect ofthis policy is to provide a reasonable and equitable compensation package that takes into account different factorsincluding but not limited to the responsibility level of the position, individual / company performance, qualifications,knowledge and skill levels, experiences and exposures, as well as the standards of the industry and the cost of living.

Askari Cements compensation policy complies with all applicable statutory requirements.

Askari Cements compensation policy utilizes a logical, systematic approach to set pay rates and determine theappropriate configuration of the benefits. The compensation includes monetary and non monetary compensation andmay include both salary and allowances and perks/privileges.


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SECTION E, CHAPTER XXIX- PAY AND WAGES

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CHAPTER XXIXPAY AND WAGES

1.0. BASIS FOR DETERMINING PAY/SALARY/WAGES

Several factors influence an employees rate of pay/salary/wages which include but are not limited to:

1. Employees relevant qualifications, relevant experience and demonstrated skills.2. Nature, scope and impact of the position.3. Amount Askari Cement pays to other employees for comparable jobs (internal equity).4.

Amount other employers pay to employees for comparable jobs (external equity).5.

Quality of an individuals performance of an assigned job.6. The financial ability of Askari Cement to pay.

1.1.

PAY GRADES, SALARY SCALE/STRUCTURE AND JOB SLOTS

For the purpose of clarity and compliance following jobs (but not limited to) are slotted in the respective gradeskeeping in view flexibility of one position against grades and consistency in applying grades to designations: -

JOB SLOTS AND GRADESSeniority Level

Grades Positions

NTS 14A (Non-Technical Staff) Qasid, Office Boy, Peon, Mali, Security Guard, Sweeper, Janitor, Helper,Aaya, Road Cleaner, Club Attendant, Service man. Sampler

Junior

TS 14 (Technical Staff) Compressor Attendant, Drill Helper Same as cadre

NTS 13A (Non-Technical Staff) Qasid, Office Boy, Peon, Mali, Security Guard, Sweeper, Janitor, Helper,Aaya, Road Cleaner, Club Attendant, Service man, Gardening Supervisor,Watchman, Photocopy Machine Operator, Telephone Operator, ToolRoom Clerk, Office Assistant, Cook, Driver, Lineman, Sampler, Painter,

Same as cadre

TS 13 (Technical Staff) Pump Attendant, Machine Helper, Poker man, Magazine Clerk,Compressor Attendant, Short Firer. Winder, Bench Fitter, Pump Fitter. ,Plumber, Tool Room Clerk

Junior

TS 12 (Technical Staff)

TechnicianInstrument/AC, AC Mechanic, General Tech, Winder,Compressor Mechanic.

Technical Sameas cadre

Operators

Crusher, Stacker, Reclaimer, Control Room, Compressor,Pump, Boiler, Generator, Grid, Loader, Forklift, OilHeating, Gypsum Crusher, Weigh Bridge, Dozer, Dumper,Excavator, Shovel, Bull Dozer,

Area Asst Pokerman, Lab, Magazine, etcDriver Diesel Tank, DumperDriller Driller, Jack Hammer

Misc

Welder, Electrician, Rigger, Carpenter, Mechanic (Light,

Heavy), Fitter, Compressor Attendant, Bench Fitter, PumpFitter, Pump Attendant, Plumber, Tool Room Clerk,

NTS 12A (Non-Technical Staff) Misc

Lineman, Photocopier Operator, Computer Operator,Telephone Operator, Key Punch Operator, Service ManDriver, Water Tank LTV HTV, Sampler (Plant, Coal,Gypsum, Iron Ore, Crusher) Patrolman, Office Assistant,Dresser/Nursing Assistant, Nurse, Aaya, Painter, ClubSupervisor, Mason, Tyreman, Greaser, Oilman, Lubricator.etc.

Non Technicalas Senior


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JOB SLOTS AND GRADESSeniority Level

Grades Positions

TS 11 (Technical Staff)

TechnicianInstrument/AC, AC Mechanic, General Tech, Winder,Compressor Mechanic.

SeniorOperators

Crusher, Stacker, Reclaimer, Control Room, Compressor,Pump, Boiler, Generator, Grid, Loader, Forklift, OilHeating, Gypsum Crusher, Weigh Bridge, Dozer, Dumper,Excavator, Shovel, Bull Dozer,

Area Asst Pokerman, Lab, Magazine, etcDriver Diesel Tank, DumperDriller Driller, Jack Hammer

TS 10 (Technical Staff) For promotion of Technical Staff onlyForeman/Lead

Man

PS 9 Junior Officer (Technical)

PS 9A Junior Officer (Non-Technical)

PS 8 Executive Officer (Technical)PS 8A Executive Officer (Non-Technical)PS 7 Senior Officer (Technical)

PS 7A Senior Officer (Non-Technical)

PS 6A Assistant Manager

PS 6 Senior Assistant Manager

PS 5 Deputy Manager

PS 4 Senior Deputy Manager

PS 3 Manager

PS 3A Manager (Ex-Serviceman)

PS 2 Deputy General Manager / Senior Manager

PS 2A Deputy General Manager / Senior Manager (Ex-Serviceman)

PS 1A General Manager (Ex-Serviceman)

PS 1 Senior General Manager (Ex-Serviceman) / General Manager / CFO

1.1 ASKARI CEMENT PAY SCALES

All positions in Askari Cement are compensated under a pay (salary) grade structure. A salary grade specifies theminimum amounts payable for a particular position and identifies the initial starting pay. Each position is evaluated onspecific criteria that determine worth of the job. Positions are placed in one of the grades approved by themanagement on the basis of job descriptions and as per job slotting.

The salary scales are required to be reviewed and adjusted periodically as required by Askari Cement from time-to-time. Any change in the salary scale (breakup heads/percentages) is not allowed without prior approval of CA. Thereis no maximum capping for a scale for any grade in the salary structure to provide maximum flexibility to theorganization while making recruitment, salary raise and compensation decisions. Any employee can grow within hisgrade to any extent till the time he proves eligibility for promotion to next grade provided next grade/title movementof his trade is available as per job slotting.

The scale has been developed keeping in mind following key objectives;


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1.

To provide a pay structure with guidelines to avoid varying practices and interpretations across AskariCement.

2. To have a consistent salary/pay structure for Askari Cement in which salary heads are linked to the basicsalary by a specific percentage as much as possible.

3. There will be no upper capping of any scale in any particular grade.4. Askari Cement will comply with any minimum wage compliance requirements as and when required by law as

a pre approved arrangement. For details refer to clause1.2.6. GENERAL MINIMUM WAGES RAISE.5. To maintain consistency, ACL will follow the salary structure in all cases of future hiring. 1.2.1. SALARY

FIXATION ON HIRING.6. Site allowance applicable in case of ACL (Nizampur) will be paid separately as per policy and is not part of

salary scale.7.

Fuel Entitlements are not part of the scale and have been dealt with separately through vehicle policy.

The applicable grades, breakup of salaries and respective starting pay scales for Askari Cement for both officers andworkers are as under;


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1.1.1.1 OFFICERS

GradeInitial Basic

PayHRA Utilities

Conveyance Gross Pay(45% of Basic Pay) (30% of Basic Pay)

PS 1 175,000 78,750 52,500 _ 306,250

PS 1A 135,000 60,750 40,500 _ 236,250

GradeInitial Basic

PayHRA Utilities

Conveyance Gross Pay(45% of Basic Pay) (35% of Basic Pay)

PS 2 115,000 51,750 40,250 _ 207,000

PS 2A 100,000 45,000 35,000 _ 180,000

PS 3 90,000 40,500 31,500 _ 162,000

PS 3A 75,000 33,750 26,250 _ 135,000

GradeInitial Basic

PayHRA Utilities Conveyance

Gross Pay(45% of Basic Pay) (20% of Basic Pay) (15% of Basic Pay)

PS 4 70,000 31,500 14,000 10,500 126,000

PS 5 50,000 22,500 10,000 7,500 90,000

PS 6 38,000 17,100 7,600 5,700 68,400

PS 6A 28,000 12,600 5,600 4,200 50,400

PS 7 26,000 11,700 5,200 3,900 46,800

PS 7A 20,000 9,000 4,000 3,000 36,000

PS 8 22,000 9,900 4,400 3,300 39,600

PS 8A 17,000 7,650 3,400 2,550 30,600

PS 9 18,000 8,100 3,600 2,700 32,400

PS 9A 15,000 6,750 3,000 2,250 27,000

1.1.1.2. WORKERS

GradeInitial

Basic PayHRA Utilities Conveyance

Gross Pay(45% of Basic Pay) (20% of Basic Pay) (15% of Basic Pay)

TS 10 18,000 8,100 3,600 2,700 32,400

NTS 10A 14,000 6,300 2,800 2,100 25,200

TS 11 16,000 7,200 3,200 2,400 28,800

NTS 11A 12,000 5,400 2,400 1,800 21,600

TS 12 14,000 6,300 2,800 2,100 25,200

NTS 12A 11,000 4,950 2,200 1,650 19,800

TS 13 12,000 5,400 2,400 1,800 21,600NTS 13A 10,000 4,500 2,000 1,500 18,000

TS 14 10,000 4,500 2,000 1,500 18,000

NTS 14A 9,000 4,050 1,800 1,350 16,200


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SECTION E, CHAPTER XXX-ALLOWANCES AND ENTITLEMENTS POLICY

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1.2. SALARY FIXATION

Specific instances, conditions and rules of salary fixation are given below.

1.2.1. SALARY FIXATION ON HIRING

1. At the time of hiring, it is encouraged that an employee (both officers and workers) receives a salary/wagethat is at least equal to the minimum of the salary scale for his/her specified grade against which he/she ishired. In this regard, approvals will be given as per HR SOD.

2. In case of officers, at times due to specialized skill, knowledge, experience and exposure requirements orurgency basis, it may be required to negotiate and offer a starting salary which is higher than the minimum ofthe salary scale. Any such negotiated salary requires the approval of CA (MD). Approval is contingent uponthe maintenance of internal equity within both the Department and/or the Organization. For this purpose,HR department is required to compare the negotiated salary of the new officer with the existing officers inthe same organization/department/grade. Any salary fixation at the time of hiring will be adjusted throughadditional increments and will be approved by MD.

3.

In case if a worker is hired with no additional increments but has been given minimum wage complianceadjustment then such hiring will be considered as hiring with no additional increments and approval will begiven by MD.

1.2.2. SALARY FIXATION ON PROMOTION

1. Upon promotion of an employee either in the same grade or to the next grade the promotion board /management will decide the raise in salary through increments only. HR department will provide salary detailsto promotion board / management at the time of promotions to ensure internal equity of other employees inthe respective grade. In case of promotion in the same grade, for salary fixation, the salary raise will beadjusted through increments in basic salary only. In case of promotion to next grade, for salary fixation, basicsalary of existing grade will be matched with the basic salary of next grade nearest upper with one increment

and basic salary in new grade will be adjusted accordingly.2.

All such salary raises will be recommended by the promotion boards considering impact on gross salary andapproved by MD. As a rule, if no specific salary raise is announced upon promotion to new grade, suchemployees will automatically be given minimum one increment of the new grade. Similarly if the promotion isgiven in the same grade then up to two additional increments of the same grade will be given.

3. In cases of no specific salary raise recommendations, where the existing salary of the employee is higher thanthe minimum salary of the next grade, the salary of the employee will be adjusted in the next grade (not lessthan the present basic salary) and then given one increment as mentioned above.

4. In case of promotion from workers to officer grades, FSA will be generated and paid to the employee andnew employment contract will be issued with new terms and conditions of employment, thus new tenure willstart. However by no means the basic/gross salary will be decreased while adjusting the employee in Officersgrade keeping in view principles mentioned in above Para.

1.2.3. SALARY FIXATION ON TRANSFERS

1.

In case of temporary transfers or secondment, the salary breakup and structure will remain the same.2.

In case, the employee is promoted and then transferred or takes up a higher position upon transfer, the salarywill be fixed keeping in view rules mentioned in section 1.2.3. SALARY FIXATION ON TRANSFERSand Section1.2.2. SALARY FIXATION ON PROMOTIONS as appropriate.


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1.2.4. SALARY FIXATION OF FIXED TERM CONSOLIDATED CONTRACT EMPLOYEES/CONSULTANTS

Pay of the consultants appointed on contract is fixed at an amount that is necessary to secure the service of the personcapable of discharging efficiently the duties as required by Askari Cement, and is based on lump-sum basis and theprevious established salary / consultancy fee history. The consultants will not be entitled for any benefits, other thanunder the contract.

In case of fixed term consolidated contract employees, for the sake of giving increments or general salary raises, salarybreakdown will be applied as per approved corresponding salary pay grade. The salary and the grade will bedetermined keeping in view the nature of employment and grades slot identified by HR Department.

There might be situations where an employee on consolidated contract is converted to regular benefits contract. Insuch situations, the HR department shall ascertain the equivalency in appropriate grade based on existing practices,role and responsibilities and adjust the salary by first maximum utilizing the Adjustment/minimum wage compliancehead (for workers) and then by giving additional increments. Such additional increments would not be subject toapproval from CA as this is for only calculating equivalency.

1.2.5. SALARY FIXATION OF DAILY WAGERS

Pay of the persons appointed on daily wages basis on any position which is not of permanent nature is fixed at a ratethat is at least compliant with the minimum wages requirement of Government of Pakistan and at a rate necessary tosecure the service of the person capable of discharging efficiently the duties of the required post and is mostly basedon the previous established rate and salary history.

1.2.6. GENERAL MINIMUM WAGES RAISE

Askari Cement fully recognizes and is cognizant of the inflationary impact on its employees. In instances whereminimum wages levels are changed by the government; such changes will be complied with as per government

notifications and would also be applicable on daily wagers, third party labor contract Workers.

1.2.7. ANNUAL INCREMENTS

1. Rate of annual increment will be 10% of the existing basic salary and other allowances of the respectivegrades.

2. Annual increment (where applicable) will be given by the CA (MD) subject to the following: -

a) All annual increments will occur with effect from start of calendar year (performance year) i.e. Jan 01of every year, irrespective of date of initial appointment and type of contract, promotion or changeof scale for all employees (less daily wagers and third party outsourced). In cases of new hiring,employment period of less than six months will be ignored for grant of increment. In case of

promotions happening wef January 1st, the employee will be given annual increment as per scale ofhis previous grade/position and then will be considered for salary fixation in the promoted grade asper procedure given in section 1.2.3. SALARY FIXATION ON TRANSFERSand Section 1.2.2.SALARY FIXATION ON PROMOTIONSas appropriate.

b) For cases of employees on fixed term contracts (with benefits or consolidated) where annualincrements are given on completion of 12 month services and are now linked with the calendar yeari.e. Jan 01 of every year and all such cases regardless of grade will be given annual increments as per


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Para 1 and Para 2 (a). However, for the purpose of annual increments/bonuses, initial of the scalebasic salary will be considered for employees on consolidated terms.

1.2.8. PAY FIXATION ON MERIT/SALARY RAISES OR PERFORMANCE BASIS

There are situations where promotions are not possible and management can decide and approve to give merit salaryraise through additional increments in the best interest of the organization. Any such merit raise is subject toconditions mentioned in Chapter XXIVPromotions.

1.3. COMPUTING PAY

Employees shall be paid salaries/wages on a monthly basis. Each pay period shall commence on the first of everymonth. As a standard for all computing requirements, a month comprises of actual calendar days in that particularmonth. Salaries for employees who join after the first day of a month would be paid on pro rata basis by the numberof days in a particular month.

1.4. MANDATORY DEDUCTIONS FROM SALARIES

Askari Cement is required by law or otherwise to make certain deductions from employees salaries. Each time payrollis prepared, such deductions are itemized and salary slips are printed for all employees. All such deductions are as perlaw and include items such as income taxes and contributions to benefit funds (i.e. Provident Fund, EOBI, etc.). It isthe responsibility of finance department to distribute salary slips to all employees.

1.5. DISTRIBUTING PAY

Payments are distributed monthly for services performed during the most recently completed pay period. All salariesare paid into the employees bank account monthly via auto-payment except for first months pay and the final

settlement pay which are paid via cross cheque. Pay day would be on the declared pay day of every month. Changes tothe scheduled pay date based on holidays or closings will be made and announced in advance.

The employee is responsible to notify finance department about their bank account and any change that may occur.

Where no banking system exists, salary is made on specified date in cash by the respective finance department aftergetting in principle approval.

1.6. ERRORS AND OMMISIONS IN PAY

Every effort is made to avoid errors in employee pay checks. However, if it appears an error has been made in any

part of the compensation program or process, the HR/Finance department must be notified immediately. TheFinance/Human Resource Department will take the necessary measures for correction.

1.7. INCOME TAX REPORTING

It is the responsibility of each individual employee to file their respective tax returns as applicable. Finance Dept willissue Tax certificate to the employee for this purpose and a copy of the same will be maintained in personal file.


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1.8. PAYROLL ADVANCES

MD can approve in special circumstances one month advance salary provided it is secured.

1.9. LOAN / ADVANCES

Only two types of Loans / advances are allowed:

1. House Rent Advance2.

PF Loan

1.9.1. OFFICERS

In special circumstances, the CA (MD) can approve 12x months house rent advance for an officer provided it issecured which will be recovered in 12x equal monthly installments. However, PF loan may be availed as per PF trustrules.

1.9.2. WORKERS

Workers may avail PF loan as per PF trust rules.

1.10. OVERTIME COMPENSATION

1.10.1. PURPOSE:

To describe requisition, approval and recording of over time for compensation of skilled and un-skilled workers

deployed on job after their routine / mandatory working hours.

1.10.2. SCOPE:

This procedure is applicable to all skilled / un-skilled workers of Askari Cement who are employed on permanent,contract or lump sum basis at plants only. Over time shall be allowed only in case of essential/unforeseen/emergency

work at plant after duty hours and not as a replacement; however the previous practice of awarding compensatoryleave in case of replacement shall continue. To ensure the compliance of controlled overtime Askari Cement isrequired to prepare a budget (monthly/quarterly/yearly) for overtime and get it approved by the Board of Directorsand strictly monitor it.

Shift workers may be allowed overtime in case of essential/unforeseen/emergency work after their shift duty hours

without the requirement of replacement. During gazetted holidays shift workers shall be entitled to avail Over-time /compensatory leave.


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1.10.3. PROCEDURE:

1.10.3.1. OVERTIME REQUISITION, AUTHORIZATION & RECORD

1. Area Incharge / Manager / notified Supervisory Officer shall fill in Over-Time Requisition Formspecifyingname, cadre, duration (hours) with time span specified along with reason / job detail prior to deploying any

worker on overtime.2. Area Incharge / Manager / notified Supervisory Officer shall forward Overtime requisition Form duly

filled-in to respective Head of Department (s) for review / recommendation. This form then shall beforwarded to General Manager (Works) or other notified Senior Officer for approval.

3. Time Office shall record actual Over-Time on the original form and send the same to concerned Head ofDepartment (s). Head of Department shall give justification if actual overtime is more than the approvedlimit.

4. After approval of General Manager (Works) or other notified Senior Officer, original `Over-Time requisitionForm` shall be forwarded to Admin Department / Time Office. Copy of the form shall be sent to concernHOD.

5. Time Office / Admin Department shall generate weekly / monthly summary of over-time hours / amountconsumed (department wise on format attached as `Annex- `B`) and shall submit to the office of General

Manager (Works) or other notified Senior Officer for signatures. A copy of summary shall be given torespective Head of Department (s) (for record) and Finance Department for payment. Weekly report(Department wise) of over time shall also be submitted to Head Office through Finance Department for kindperusal of the CA.

6. Deployment of workers on over time in odd hours: Post-facto approval shall be obtained within 24 hoursafter work done (i.e. next working day).

1.10.3.2. CALCULATION / PAYMENT OF OVERTIME

Over-time payment shall be made to staff at plants as per following formula, if he has worked beyond 48 hours in aweek.

{Gross Salary (less house rent & conveyance allowance) for the month x2 x No. of Over-time hours (above 48 hours in a week)} /(No. of days in month x 8)

Over-time payment shall be made to workers as per following formula, if he has worked over-time and also availedcasual leave or privilege leave or sick leave during the week in which he worked over-time.

{Gross Salary (less house rent & conveyance allowance) for the month x 1 x No. of Over-time hours (above 48 hours in a week) /(No. of days in month x 8)

In case any worker opts for compensatory leave instead of overtime payment, the same may be allowed but not viceversa.

Compensation in lieu of overtime shall be paid to HO staff as per following details and amount will be paid as part ofsalary to avoid documentation. In lieu of overtime following fixed compensation will be paid: -

1. Driver at MD House: Rs. 2,000 pm.2. Other Staff at MD House: Rs.1,500 pm.3.

Asst / PA / Operator: Rs.1,500 pm4.

Supervisor/Driver/Electrician: Rs.1,500 pm5.

Others: Rs.1,000 pm


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CHAPTER XXXALLOWANCES AND ENTITLEMENTS POLICY

1.0 INTRODUCTION

Askari Cement recognizes certain allowances other than salary/wages as notified by Askari Cement Management

periodically. Employees working for specific projects or in certain grades may be awarded certain allowances and/orbenefits.

1.1 POLICY

Allowances may be plant specific i.e. they will vary from plant to plant; some allowances are applicable to employeesworking on a specific plant (project) only. Employees are eligible for allowances as per their contracts and categoriesof employment.

1.2 TYPES OF ALLOWANCES

These include;

1. Phone allowances2. Fuel allowance3. Marriage allowance4. Funeral allowance5. Entertainment allowance6.

Acting Management Allowance7.

Allowances on transfers/secondment/relocations8.

Site Allowance9. Heat Allowance10. Meal Allowance

1.2.1. PHONE ALLOWANCES

1.2.1.1. SCOPE

This policy explains the phone entitlements and reimbursement to Managing Director, Sr GMs (including Coy Secy &CFO), GMs, DGMs, and Managers and can be further extended to other level positions of Askari Cement uponapproval from CA (MD ACL) on case to case basis depending on the nature of job.

1.2.1.2. MOBILE PHONE ENTITLEMENTS

1.

Mobile phones will be procured through Administration department. The carrier will be arranged by Admin

Dept under the corporate arrangements with the service providers, and are available to all entitled officersupon their joining as a pre-approved arrangement. However, for official tours, international roaming facilitywill be allowed with the specific approval of MD.

2. The schedule of entitlements and monthly billing ceilings is as follows.


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Designations/Grades Mobile Phone #Bill Ceiling/Month

MD As per actual As per actualGMs & above 35,000/- 5,000/-

Managers & above 25,000/- 3,000/-*DM * 1,500/-

*SAM/AM * 1,200/-

*SO/JO * 1,000/-*Driver * 250/

# Bill ceiling to be calculated on yearly basis for SO/JO and above till Sr GMs.* As per requirement with prior approval of MD

3. It is also clarified that only reputed brand handsets will be provided as per limit defined or as per approval ofthe CA with maximum cost for officers mentioned above, and similarly for special duty personnel.

4.

Only post paid bills will be paid; however, Drivers will be allowed prepaid bills.5.

Maintenance / repair (if required) of mobile sets will be the responsibility of the respective entitled officer.6. In case of loss or damage of mobile set, respective officer should report immediately to Admin department

and the officer/user will be liable for the cost/repair of the mobile set.

1.2.1.3. MOBILES PHONES WRITING OFF

1. The value of mobile phones changes steeply and by the time entitled officer is retired or leaves theorganization, due to diminution, it becomes negligible.

2. Mobile phone value is treated as part of the perks offered to all entitled officers and expensed out withprovision of no recovery of phone at the time of leaving the organization provided they are leaving at leastafter one year.

3. Mobile phones will be depreciated at the rate of 33.33% per annum and any officer leaving within one year ofissuance of mobile phone will either return the mobile set or finance department will calculate the book valueto be charged on pro rata basis from their FSAs.

4.

New Mobile Phone set as per entitlement will be issued once the mobile phone is fully depreciated or

becomes defective and irreparable.

1.2.1.4. USAGE OF MOBILE PHONES

1. Old/out of order admin pool sets will be sold and price so received will be adjusted in the purchase of newphone. (All cost (book value) will be borne by the employee. So no old and used phones. Any existing stockto be disposed off).

1.2.1.5. RESIDENTIAL LANDLINES

Residential Landlines will not be made available, except to GMs and above.

1.2.2. FUEL ALLOWANCE

Fuel allowance is given to entitled officers as part of entitlements and benefits. For details please refer to VEHICLEENTITLEMENTS POLICY.


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1.2.3. MARRIAGE ALLOWANCE

1. All employees of Askari Cement up to Grade W-V only, excluding daily wagers and/or hired through thirdparty arrangement, will be entitled for marriage allowance for themselves and their immediate children (3xmarriage allowances in service) as per following table.

Grades Amount

W-I TO W-V Rs. 20,000/-

2. Marriage allowance will be given, on the intimation of marriage after approval of CA as per HR SOD.3. Approval will be granted on simple application from the employee specifying date of marriage, providing

CNIC Copies of the immediate child with the condition that such employee will provide the copy ofNikahnama / Marriage Certificate within 5 days of joining/resuming the office failing which financedepartment will automatically deduct the amount from the salary and disciplinary action will be taken byrespective Head of Dept. Allowance will become payable one week before the event of rukhsati/barat.

1.2.4. FUNERAL ALLOWANCE

1. In case of death of any employee (of any grade/contract, excluding daily wagers and/or hired through thirdparty arrangement) or any member of the immediate family (parents, spouse and dependent children only),employee/dependents, as the case may be, will be paid Rs. 50,000/- as funeral allowance.

2. The funeral allowance will be paid immediately on intimation of death to assist the employee / dependents tomeet funeral expenses. Finance department upon intimation from line manager will pay in cash to anyrepresentative going to attend the namaz-e-janaza/ funeral with the condition that that grieved employee willprovide the copy of death certificate within one month of death failing which finance department willautomatically deduct the amount from the salary. In case of death of an employee death certificate for funeralallowance is not required.

3.

Transportation of dead body shall be provided by the company free of cost.4. In case of death of employee, any liability to the company shall be waived off.

1.2.5. ENTERTAINMENT ALLOWANCE

Separate Entertainment allowance to officers is not allowed. However, Admin Department will budget monthlydepartment ceilings to cover the costs of departmental tea, refreshments for official guests, water expenses, etc. Onerepresentative from each department will coordinate with Finance Department on submission of expense bills (dulyrecommended by HOD) and supporting documents and for getting the reimbursements.

1.2.6. ACTING MANAGEMENT ALLOWANCE

For details please refer to CHAPTER XXIIIACTING MANAGEMENT.

1.2.7. ALLOWANCES ON TRANSFERS/SECONDMENT/RELOCATIONS

For details please refer to CHAPTER XXII - TRANSFERS/RELOCATIONS.

1.2.8. SITE ALLOWANCE

It is recognized that Askari Cement (Nizampur) is at a remote location and employees who work at ACL (N) have totravel and work on this difficult location. For this following site allowance is admissible to ACL (N) employees only


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which will not be made part of salary scale and will not be admissible if employee is transferred from Plant to otherlocation. Site allowance will be increased from time to time, keeping in view the increasing cost of transportation.

Grades Site Allowance per Month

Staff Scales from TS/NTS-10 to 14 1,000/-

JO to SO 1,500/-AM & SAM 3,000/-DM & SDM 3,500/-Mgr to DGM 3,500/-GM 4,000/-

1.2.9. HEAT ALLOWANCE

There are certain areas of plant where employees are exposed to extensive heat or during summer season are exposedto sun heat due to nature of their jobs/appointments. This heat allowance is not directly payable to the employees butit is used to provide cold drinking water (from May to September each year through budget allocation) to affectedemployees at those areas. The budget for heat allowance per annum will be approved by BOD.

1.2.10. MEAL ALLOWANCE

No meal allowance will be paid in future.


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SECTION E, CHAPTER XXXI-BENEFITS

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CHAPTER XXXIBENEFITS

1.0. BENEFITS POLICY

Benefits are based on classification of employees. Askari Cement reserves the right to adjust or modify benefits on thebasis of changes made to the prevailing local laws or as the conditions of employment within Pakistan may warrant,keeping in view market trends, industry norms and most importantly Askari Cement s ability to pay. Benefitsentitlements are defined in this P&P-14 however; individual employment contracts may vary due to negotiations andsubject to approval from CA (on rare basis).

Askari Cement provides following benefits to its employees as per their entitlements

1.0.1. Provident Fund Policy1.0.2. Children Education Assistance (Askari Cement Education Trust)1.0.3. Leave Fare Assistance (LFA)1.0.4. Annual Bonus

1.0.5. Group Life and Disabilities Insurance1.0.6. Health Care Benefits1.0.7. EOBI (Employees Old Age Benefit Institution)1.0.8. Leaves1.0.9. Vehicle Entitlements Policy1.0.10. Travel Policy1.0.11. Laptop Policy1.0.12. Length of Service Awards1.0.13. Accommodation policy1.0.14. Hajj Policy1.0.15. Newspapers1.0.16. Subsidized Food1.0.17. Provision of Liveries

1.0.1. PROVIDENT FUND POLICY

1.0.1.1. INTRODUCTION

Provident Fund (PF) is a contributory retirement fund set up under the Provident Fund Act 1925 by which companyis required to maintain an Employee Provident Fund for its employees as part of their benefits package, AskariCement as a good pay master offers provident fund as its commitment of taking this additional financial burden forthe benefit of its greatest resources (employees). However, Askari Cement as per law has a right to offer only onebenefit. Provident fund is registered with Govt. of Pakistan called as Askari Cement Ltd Contributory ProvidentFund and managed under Trust arrangements as Askari Cement Ltd Contributory Provident Fund Trust.

Provident Fund rules and benefits are available with the HR department.

1.0.2. CHILDREN EDUCATION ASSISTANCE (ASKARI CEMENT EDUCATION TRUST)

Children Education Assistance is provided to the Askari Cement employees under a Trust arrangement. Employees ofACL residing at ACL Colony at Wah or near Wah are also entitled for this facility. Askari Cement Education Trust isalso serving the education needs of the nearby communities. Detailed SOPs are available with HR dept separately.


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1.0.3. LEAVE FARE ASSISTANCE (LFA)

1. All confirmed officers with six months service and staff with one year service are eligible for 2x LFA eachyear.

2. One running basic pay for each LFA will be paid.3.

LFA will be paid on 1stJuly and 1stJanuary every year.

1.0.4. ANNUAL BONUS

1. The BOD may, at its discretion, announce annual or occasional bonus to Askari Cement employees, subjectto availability of funds/profit.

2.

Bonus will be paid only to those employees who are/were in service of Askari Cement during the year forwhich the bonus has been declared. Payment is subject to specific approval of CA (MD ACL).

3.

Cases for grant of bonus to officer employed under special circumstances will be considered on case to casebasis.

4. All employees of Askari Cement (excluding daily wagers, third party outsourced employees and consultants)are entitled for annual bonus.

5. All entitled employees will be paid bonuses regardless of date of declaration or day of payment of bonuses

provided they served Askari Cement as per following schedule.

Sr Tenure Requirements Number of Bonuses

1. Those with less than 90 days service during the accounting year. No Bonus2. Those with service of three months and over during the accounting year. On pro-rata basis3. Those who have completed one year continuous service during the accounting

year.Full

In case of death of employee bonus will be paid to the legal heirs as per above policy.

1.0.5. GROUP LIFE AND DISABILITIES INSURANCE

Askari Cement appreciates the importance of providing protection to its employees and their families from theunexpected. Life insurance helps provide financial security for the employees and their families.

In order to ensure legal compliance, Askari Cement will ensure all of its employees excluding consultants, daily wagersand workers hired under outsourced arrangements against death and disabilities. Committee / HR Department willnegotiate Group Life & Disabilities Insurance policy on behalf of Askari Cement to gain maximum benefit.

Askari Cements Group Life and Disabilities Insurance policy pays benefit to the employee or beneficiary (ies) in caseof an employees Death (naturally or accidentally) or permanent or partial disability (accidental or natural) whilecovered under the policy.

Salient features are as follows: -

1. The coverage is provided in various employee categories as per negotiated policy each year. All employeesmust be enlisted/delisted with the insurer within 15 days of the employee joining/leaving Askari Cement.

2. Insurance policy is negotiated and routine administration is done through HR department.3. In case of death or disability of an employee, HR department completes all documentation of the claim case

and submits the claim to insurer for further processing directly.4. Claim cheques are prepared in the name of the Askari Cement, and amount of claim is paid to the

employee(s)/beneficiary (ies).


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5.

Salients of the negotiated policies shall be communicated through normal channels to all employees.

1.0.5.1. INSURANCE BENEFITS

1. Coverage benefits will be as per negotiation with Insurance Company and approved by the CA (MD).2. In case of workers in addition to above mentioned benefits, entitled workers are eligible to life and disabilities

benefits through social security.

1.0.6. HEALTH CARE BENEFITS

1.0.6.0. SCOPE

This policy document describes all the policies and procedures necessary to regulate the matters related to GroupHealthcare Benefits for the employees working for Askari Cement. The management has a right to review the policies,procedures and benefits it has provided herein on a regular basis and may enhance, modify or cancel any policy orprocedures in this document at any time for smooth functioning. In case of any dispute concerning the interpretationof any clause of this document, the decision of the CA (MD ACL) will be final.

The policy is applicable to the employees of Askari Cement excluding Daily wagers, employees hired through thirdparty under outsourced arrangements. HR department will review the medical policy each year which includesnegotiations with health care insurers for group health care insurance.

1.0.6.1. PURPOSE

The purpose of this policy is to give guidance and to clarify:

1. General Policy Statement2.

Eligibility Criteria3.

Sources of Medical Coverage

4.

Employee Categories5.

The Acceptable Costs of Medical Treatment6. Health provisions.

1.0.6.1.1. POLICY STATEMENT

Askari Cement understands the requirement of good health for all Askari Cement employees and their immediatefamily members. Askari Cement understands that employees need medical assistance from time to time. The scope ofthe medical benefits offered to Askari Cement employees may be defined as a combination of paid time off, along

with financial assistance to defray the cost of doctors, hospital care and medicine. Askari Cement is committed toprovide assistance to employees and their immediate, eligible family members in maintaining acceptable physicalfitness and health standards.

1.0.6.1.2. ELIGIBILITY CRITERIA

All employees of Askari Cement with their dependents are eligible for Medical Coverage as per detail given at para1.0.6.1.3.1 Daily wagers and workers hired under outsourced arrangements or consultants are excluded from medicalcoverage.


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1.0.6.1.2.1 RECOGNISED DEPENDENTS

Recognized dependents in this policy are defined as the immediate family members of the employees and include;

a. Spousesb. Dependent Children (real or adopted)

1)

Male up to the age of 25 years;2) Female till they get married or employed.

This does not include parents or other family members in the joint family system. It is mandatory for all employees tosubmit the details of their dependents at the time of employment to HR department; this must include, name, date ofbirth, sex, and address and contact details if different from that of the staff member. It is the responsibility of theemployees to keep the HR dept informed on any change in the status of their dependents.

1.0.6.1.3. SOURCES OF MEDICAL COVERAGE

Askari Cement will use a combination of Medical Care Providers to extend medical care facilities to all AskariCement employees. The main Sources of Medical Coverage include:

Sources of Medical Coverage

Source No. DescriptionSource 1 Services Hospitals (Ex-serviceman, Air Force, Naval, and /or Fauji Foundation Hospitals)Source 2 Social Security Health Care Facilities (for workers only)Source 3 Coverage through Health InsuranceSource 4 On site existing health care facilitiesSource 5 Medical re-imbursements by Askari CementSource 6 Medical cover for exceptional cases (matter of life and death)

The basic principles regarding employee eligibility of medical coverage through a particular source for a year are: -

1.

Any civilian or ex-serviceman employees drawing a gross salary within the prescribed eligibility limits of socialsecurity ordinance in a particular year will be enrolled with social security.

2.

Any civilian or ex-serviceman employee already enrolled with social security in any particular policy year willnot be given the facility of health insurance and OPD medical reimbursements.

3.

Any ex-serviceman employee not already covered through social security and drawing a salary above theeligibility limits of Social Security Ordinance in a particular year will be provided medical coverage for OPD(outdoor patient treatment) treatment only as per prescribed limits of medical re-imbursement.

4. Any civilian employee not already covered through social security and drawing a salary above the eligibilitylimits of Social Security Ordinance in a particular year will be provided medical coverage for IPD(Hospitalization) through health insurance as per respective years Health insurance policy; and OPD(outdoor patient treatment) treatment only as per prescribed limits of medical re-imbursement.

5.

All civilian and ex-serviceman employees will be entitled to a Medical cover for exceptional cases where it is amatter of life and death of employee and/or his/her immediate family members (refer to clause 1.0.6.1.2.1.Recognised Dependents) up to a maximum annual limit of Rs. 300,000/-. This is only admissible if all otheroptions are exhausted and on the sole discretion of MD only.


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1.0.6.1.4. EMPLOYEE CATEGORIES

For the purposes of this policy {IPD (hospitalization) is provided through Health insurance and OPD (outdoorpatient treatment) is provided on re-imbursement basis}. Employees of Askari Cement are divided in to followingcategories;

Employee Coverage Categories for IPD (hospitalization)

Coverage Categories Grades

Category A Grade: PS 3 & Above

Category B Grade: PS 9 to PS 4

Category C Grade: TS 10 to NTS 14A

1.0.6.1.5. COSTS OF MEDICAL TREATMENT

There are two types of Costs of Medical Treatment which are

1.

IPD (hospitalization) treatment costs

2.

OPD (outdoor patient treatment) treatment costs

Only those OPD costs will be reimbursed where treatment is provided by a qualified allopathic or homeopathicdoctor or qualified Hakeem registered with Govt. recognized professional body.

1.0.6.1.5.1. IN DOOR PATIENT COSTS {IPD (hospitalization)}

IPD (hospitalization) Coverage will be provided as per eligibility criteria through the respective source of medicalcoverage.

1.0.6.1.5.2. OUT DOOR PATIENT COSTS (OPD)

Askari Cement will cover the cost of OPD (outdoor patient treatment) up to the prescribed limits per annum for alleligible employees including their dependents through medical re-imbursements.

Medical claims within prescribed limits will be approved as follows: -

a. Sr GM (HR&A) for grades PS 3 and above employees at Plant and all employees at HOb. GM (Works) for Grades PS 4 and below at plantc. MD for Sr GM & above

The claim will be based on actual and original receipts or other supporting documents which must be provided at thetime of any claim.

Employees working on fixed term contracts (excluding daily wagers and employees hired through third party contract)i.e. less than one year, are also entitled to have medical cost coverage for their recognized dependents on a pro ratabasis depending on their length of contract.

OPD (outdoor patient treatment) Costs Coverage will includes all cost related to prescribed treatment by a qualifiedallopathic or homeopathic doctor or qualified Hakeem registered with Govt. recognized professional body; and thesegenerally include:


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1.

Within prescribed limits of OPD (outdoor patient treatment) re-imbursement; 100% cover in respect ofconsultation with qualified doctor and hospital/lab charges; for the employees and recognised dependants.

2. Within prescribed limits of OPD (outdoor patient treatment) re-imbursement; 100% reimbursement ofessential and basic drug costs, which have been prescribed by qualified doctor, for the employees andrecognised dependants

3. Within prescribed limits of OPD (outdoor patient treatment) re-imbursement; 100% reimbursement of

essential and basic optical and dental costs; for employees and recognised dependants.

OPD (outdoor patient department) coverage for specific categories is as follows

1.0.6.1.5.2.1. REIMBURSEMENT FOR EYE AND EYESIGHT TESTS

Following costs of eye treatment are reimbursable through OPD

1.

Eye infection or disease or cataract, etc.2.

Eye examination for VDU, etc.3.

Eye sight tests provided these are carried out by an optician who is registered as an ophthalmic optician(optometrist) or ophthalmic medical practitioners.

Major exclusions are Contact lenses and/or spectacles/eyeglasses, etc

1.0.6.1.5.2.2. REIMBURSEMENT FOR DENTAL TREATMENT

Dental treatment covered through OPD (outpatient door treatment) within prescribed limits includes

1. Gum infections2. Tooth extraction3. Amalgam fillings4. R/C treatment

5.

Any tooth rehabilitation declared necessary by the doctor for health

Major exclusions include Dental treatment for beautification.

1.0.6.1.5.2.3. REIMBURSEMENT FOR MATERNITY CASES

Pregnant women (employees or dependents) will receive full cover in respect of routine medical checkup costs inmaternity cases within prescribed OPD (outdoor patient treatment) Limits. OPD (outdoor patient treatment) limitcannot be used to meet delivery costs during hospitalization as it is already covered under health insurancearrangements.

1.0.6.1.5.2.4. SELF PRESCRIBED MEDICATION

Costs for self prescribed medication is not allowed to any employee and/or dependents under any circumstances.Employees are not allowed to use the previously prescribed medication by the qualified doctor until or unless s/he

visits the doctor again for a new prescription. Employees are required to visit the doctor every six months in case ofcontinued medication.


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1.0.6.1.5.2.5. PREVENTIVE VACCINATIONS FOR DREADED DISEASES (HEPATITIS BETC.)

The cost of Preventive Vaccinations for dreaded diseases (Hepatitis B etc.) for employees including their dependentswill be covered as a recognized OPD (outdoor patient treatment) cost if available.

1.0.6.1.5.2.6. OPD (OUT DOOR PATIENT DEPARTMENT) TREATMENT LIMITS

OPD (outdoor patient department) treatment limits will be as per the financial year of ACL. Any employee joiningduring a year will be entitled to OPD (outdoor patient treatment) re-imbursements on a pro rata basis. Employees areentitled to OPD (outdoor patient department) treatment re-imbursements as per following Schedule;

1.0.6.1.5.2.7. MONITORING MEDICAL COSTS

The Finance department is responsible for monitoring all medical costs. Finance department will maintain the annuallimits and categories of employees and send monthly updates to HR department for reference.

1.0.6.1.5.2.8. PROCESS OF MEDICAL CLAIMS

Any eligible Employee who has incurred an eligible medical cost of OPD (outdoor patient treatment) treatment; isentitled to claim reimbursement. Reimbursement would be only done by Finance Department after approval of CA(as mentioned at 1.0.6.1.5.2)upon submission of claim form along with required documents.

The CA (as mentioned at 1.0.6.1.5.2)will approve the request after verifying the following:

1. That the expenses are permissible and not listed as non-permissible expenses.2. That the documentation is adequate and correct

1.0.6.1.5.2.8.1. DOCUMENT REQUIREMENTS

It is required that the expenses submitted for reimbursement are properly documented. The documents that bestsatisfy the requirements are Doctors prescription (Original), original vendor-generated receipts that identify each itempurchased and each expense incurred.

1.0.6.1.5.2.8.2. TIMING FOR REPORTING MEDICAL EXPENSES

Expenses incurred for OPD (outdoor patient department) treatment preferably should be accounted for within threemonths after the date of expenditure. It is encouraged that employees submit their claims on monthly basis preferablyon 15th of every month. At the end of the financial/ medical policy year employees can claim medical bills within onemonth.

OPD (outdoor patient treatment) Care Annual LimitsCategories Officers Workers

OPD (outdoor patient department) treatmentlimit per single/married employees

Rs.40,000 Rs.25,000


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1.0.6.1.5.2.8.3. APPROVAL / AUTHORIZATION

All reimbursement requests are to be submitted by the employee on the prescribed Medical Claim Form (AnnexChapter XXXI1A, 1B & 1C respectively as per approving authorities mentioned at 1.0.6.1.5.2).

1.0.6.1.5.2.8.4. TIMING FOR REIMBURSEMENT OF EXPENSES

Finance Department shall process the requests for reimbursement. All payments would be made within 10 workingdays of receiving the claim.

1.0.7. EOBI (EMPLOYEES OLD AGE BENEFIT INSTITUTION)

To ensure welfare of employees, Government of Pakistan provides coverage called The Employees Old Age BenefitsInstitutions (EOBI) under Employees Old Age Benefits Act 1976 which is intended to provide security and benefitto the old age employees in the organizations where there have been more than 5 employees..

The scope of EOBI may be defined as pensions, widows pensions, old-age grants and other benefits which are

payable by the institution (EOBI), which collects and receives contributions, donations, and all other paymentsthrough employer. All employees of Askari Cement are members of this institution (EOBI).

EOBI is simply a service as it provides the insured person allowances in the shape of old age retirement allowance andinvalidity allowance. In the case of the death of an insured person, the surviving spouse or the adult children areentitled to the old-age pension (with some legal limitations).

As an employer, Askari Cement is required by the Government of Pakistan to contribute to Employees Old AgeBenefits Institutions (EOBI). This benefit is provided to all employees.

1.

Employees are required by law to contribute to the EOBI, from which benefits are paid.2.

As an employer, Askari Cement will deduct from the employees monthly pay the amount required by the

Government of Pakistan. In addition, Askari Cement is required to contribute the amount per employee asrequired by the Government of Pakistan.


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1.0.8. LEAVES

Askari Cement recognizes following categories of leaves

1. National holidays2. Earned leaves3.

Casual leaves4. Medical/ hospitalization leaves5. Maternity leaves6. Study leaves7. Hajj/Umrah / Ziarat8. Leave without pay9. Compensatory Leaves

For all leaves categories, leaves cannot be claimed by any employee as a matter of right. The mere submission of anyapplication shall not be treated as approval of leave. Every Employee shall file leave application in advance (subject toRule 1.0.8.3.3) on prescribed Form preferably through HRIS or otherwise manually as per HR SOD and theCompetent/sanctioning authority may or may not sanction the leave.

1.0.8.1. NATIONAL HOLIDAYS

Askari Cement issues Holiday Schedules for all employees at the beginning of each calendar year which is inaccordance with official government notification of holidays. There is no carryover of national holidays. AskariCement Plants will observe national holidays keeping in view their production plans.

1.0.8.2. EARNED LEAVES

1.0.8.2.1. PURPOSE

The purpose of the Earned leave policy is to ensure that all regular employees with terminal benefits have adequatetime away from work for family holidays, special events, rest and recreation etc. Askari Cement provides all its regularemployees annual leave with pay in order to maintain health, morale and efficiency. This policy outlines the conditionsunder which employees become eligible for annual leave with pay. All regular employees are entitled to earned/annualleaves as per their respective entitlements.

1.0.8.2.3. ENTITLEMENTS

The entitlement of earned leave for all confirmed regular employees is as per following schedule

Category Number of Leaves/Per YearOfficers 30 Calendar Days

Workers 14 Calendar Days

1.0.8.2.4. BASIC RULES

Following are the main rules concerning annual leaves

1. Only confirmed regular employees (Open ended/Fixed term with regular benefits) are eligible for earnedleaves.


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2.

Assessment of entitlement of number of Earned Leaves will take place at the beginning of each calendaryear i.e. January 1st.

3. In the case of confirmed employees, the period of probation shall be included in the period of servicewhen computing entitlement of the earned leave.

4. Earned leaves will be credited to an employees account on yearly basis after confirmation.5. In case of all regular employees (officers and workers grades), the earned leave may be accumulated up to

maximum of 45 days which will not be encashed duringthe service.6. For officers against the entitled 30 days earned leave per year, 15 days earned leaves will be encashed in

the month of January whereas officer will avail the remaining 15 days earned leave.7. For workers against the entitled 14 days earned leave per year, 7 days earned leaves will be encashed in

the month of January whereas worker will avail the remaining 7 days earned leave.8.

Leaves will be encashed as per last drawn gross salary (as per pay scale) excluding other allowances andentitlements such as site allowance, fuel entitlements and acting management allowance only.

9.

Subject to sub-Rule 5 hereof, any leave not availed will be lapsed and will not be carried over to the nextyear.

10.When an employee leaves the service in good standing (serving notice of resignation, waiver off of notice,laid off) balance of 45 days earned leaves will be paid.

11. Employees whose service is ending may receive a payment against balance of 45 days earned leave.

12.

HR Department will issue the tentative plan of all the employees to avail the earned leaves during yearbefore the start of the new-year. Head of Departments will send employee-wise plan of their respectivedepartments to HR Department before the start of the new-year.

13. Public or weekly holidays occurring during an employees vacation will be calculated separately and willnot be considered as part of the employees leave.

14.

Employees are not allowed to work for another employer during vacation, with or without pay.15.

Askari Cement may direct the employee to return to work during the authorized vacation as dictated bywork needs and employee shall comply with the direction. Askari Cement shall then provide him/herwith the remaining days of vacation after circumstances that compelled him/her to return, no longerexist. Travel expenses to be borne by Askari Cement for both ways.

16.On reaching end of leave year the HR department will notify all employees through public notice systemto avail their Earned Leaves as per rules.

1.0.8.2.5. PROCEDURE

It is encouraged that all employees go for their annual vacations. The supervisors must ensure while accepting theleave form that overlapping of leaves is avoided so that routine work does not suffer. Employees may request forannual leave, by using prescribed forms addressed to their supervisors through HRIS or manually. Any employee whodoes not return immediately to resume his/her work after the end of his/her annual vacation without prior intimationand approval, such employee shall not be paid his/her salary for the period of his/her absence until or unless it isapproved. In this case, Askari Cement reserves the right to penalize him/her under disciplinary process/absencemanagement and consider him/her absent from work without permission, for the immediate period after the end dateof his/her approved leave. Human Resources Department will maintain the leave records.

1.0.8.2.6. EXCEPTIONS

Any exceptions to this policy must have the prior approval of the CA (MD).


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1.0.8.3. CASUAL LEAVES

1.0.8.3.1. PURPOSE

While good attendance is essential to the Organization to achieve its goals and objectives, Askari Cement recognizesthe necessity for employees to be absent from work for reasons beyond the employees control. The purpose of this

policy is to set forth the procedures and conditions under which employees may be granted time off with pay in theevent of unusual and justified circumstances.


The entitlement of Casual leave for employees as per their respective type of contract is as per following schedule;

Category

Regular employees (opened ended/Fixed termwith regular benefits)

Fixed term employees without regularbenefits

Leaves/per year Leaves/per year

Officers 15 working days 15 working days

Workers 15 working days 15 working days

All fixed term employees of Askari Cement who are hired on contract for less than 12 months duration are allowedmaximum leave calculated on the basis of 1.66 working days per month during their contract assignment with AskariCement. These leaves are not cashable and un-availed leaves cannot be en-cashed at the end of the contract andcannot be carried forward to next year if not availed.


1. The probationary period will be included in the period of service when computing entitlement of casualleaves.

2.

Casual leaves must be approved in advance, if possible; otherwise these should be processed for approvalwithin two working days of resuming the office. In cases where written pre-approval is not obtained, it ismandatory for the employee to inform his line manager on the first day of absence with the tentative dateof resuming office.

3. Any uninformed absence will be subject to deduction from salary and the disciplinary actions.4. Casual leave can be availed concurrently with other leaves. Also public or weekly holidays occurring

during an employees casual leave will be calculated separately and will not be considered as part of theemployees leave

5. Casual leave cannot be carried forward to the next year or encashed.


For details on leave application procedure; please refer to Chapter XXIIIAbsence Management.


Any exceptions to this policy must have the prior approval of the CA (MD ACL).


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1.0.8.4. MEDICAL/ HOSPITALIZATION LEAVES

1.0.10.4.1. PURPOSE


1. Employees (whether confirmed or not) are entitled to sick leave with full pay and wages for a total periodof Fifteen (15) working days for Officers and Workers Grade in every calendar year.

2. In case of prolonged illness such as those resulting from but not limited to tuberculosis, cancer,poliomyelitis, leukemia and certain other instances based upon the prognosis of certified medicalpractitioners, additional hospitalization leaves of up to four (3) months may be granted based upon themerits of each such case by CA (MD) / Leave Sanctioning Authority.

3.

In cases where any such disability or medical condition exists under which a qualified practitionerstrongly recommends bed rest instead of being hospitalized and subsequently joining the office isseriously detrimental to health of the employee; under such cases four (4) calendar weeks leave may beapproved by CA (MD ACL) / Leave Sanctioning Authority.


1. All provisions of the medical leave policy are to be administered on a calendar year basis from January 1stthrough December 31st.

2. Medical leaves for newly hired employee will be prorated, based on their hiring date. However, leaves willnot be prorated if an employee suffers from any medical condition compelling the employee to avail themaximum entitled leaves in a year.

3. Askari Cement reserves the right to nominate its own doctors or have a medical board to determine theseverity of the illness. In case of prolonged illness beyond 8 weeks in total, Askari Cement reserves theright to make a decision whether to continue with the employment contract of such employee. However,in such cases if there is no entitlement available in any form of leaves including medical leaves, AskariCement management in its sole discretion will make a decision to grant leave without pay or release theemployee from service

4.

Medical leave of more than 2 days must be supported with a medical certificate from a registered medicalpractitioner.

5. Askari Cement also reserves the right to investigate/deal with any consistent pattern of sick leaves takenby employee under disciplinary/ absence management procedures.

6. Medical Leaves cannot be carried forward to next leave year.


The Human Resources Department shall maintain all pertinent records concerning all absences due to illness orinjuries for all employees.




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1.0.8.5. MATERNITY LEAVES

1.0.8.5.1. PURPOSE

Askari Cement Maternity Leave policy meets the statutory requirements of THE WEST PAKISTAN MATERNITYBENEFIT ORDINANCE, 1958 (W.P. Ordinance XXXII of 1958).

The purpose of maternity leave is to facilitate female employees who are expecting a child to rest and receive medicalattention.


Three months (Twelve weeks) leave with pay is available to female employees as Maternity Leave in accordance withthe statutory requirements. They may divide the leave as they wish between the pre and post natal period.


Maternity leave can commence at any time on or after the 11th week before expected date of delivery / childbirth.

1. If a female employee needs to exceed her maximum maternity leave entitlement, she may consume hercasual and/or earned leaves, if available. If even the balance of leaves is over run, the employee will be onleave without pay as a special case with prior approval of CA (MD) / Leave Sanctioning Authority.

2.

During unpaid maternity leave a female employee retains all of her contractual rights except remuneration(including bonuses, increments, salary raises etc.).

3.

Any female employee cannot be terminated/dismissed on pregnancy-related grounds within a period ofsix months before delivery as it has the effect of depriving her of any maternity benefit. (Refer to clause 7of THE WEST PAKISTAN MATERNITY BENEFIT ORDINANCE, 1958, W.P. Ordinance XXXIIof 1958).

4. The probation period will correspondingly extend if maternity leaves are taken during the probation

period.


Employee shall fill up a leave application form along with a Medical Certificate requesting leave for maternity fifteen(15) days in advance. Leaves to be applied through HRIS if possible.



1.0.8.6. STUDY LEAVES

1.0.8.6.1. PURPOSE

The purpose of the study leaves policy is to ensure that all employees (Officers and Workers) have adequate time toimprove their qualification in order to compete the coming challenges. This policy outlines the conditions under

which employees become eligible for study leave without pay. All regular confirmed employees (Officers and Staff)are entitled to study leaves as per their respective entitlements with approval from CA (MD).


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The entitlement of study leave for all confirmed regular employees (not on consolidated) is 10 working days in a year.


1.

Leaves would be granted after the approval of CA (MD ACL) / Leave Sanctioning Authority.2. Admission letters/corresponding letters with university/college are required by Askari Cement for

verification.


1.

Employees may request for leave, by using prescribed forms addressed to their supervisors.2.

The Supervisors/Line Managers must ensure while accepting the Leave Form that the routine work does notsuffer and there are enough resources in the department to continue performing services efficiently.

3. If an employee does not return immediately to resume his/her work after the end of his/her leaves withoutprior intimation and approval, Askari Cement reserves the right to penalize him/her and consider him/her

absent from work without permission, for the immediate period after the end date of his/her approved leave.4.

Human Resources Department will maintain the leave records through HRIS (where available).5. For officers & staff, a notice period in writing of 15 days from the beginning of the scheduled leave is

required.



1.0.8.7. HAJJ / UMRAH / ZIARAT

1.0.8.7.1. POLICY

Employees proceeding for company sponsored Hajj (through ballot scheme) shall be considered on official duty.Others may avail Hajj / Umrah / Ziarat leave from their casual / earned leaves collectively.


Employees may request for Hajj/Umrah/Ziarat by using prescribed forms addressed to their supervisors.



1.0.8.8. LEAVE WITHOUT PAY

1.

Any employee may avail leave without pay for any reason with prior approval.2.

Askari Cement does not warrant/guarantee of the same job or any other job upon return from or duringleave without pay exceeding one month (22 working days).

3.

During leave without pay, an employee retains his/her contractual rights excluding remuneration (anyentitlements, benefits stipulated either in the employment contract or otherwise).


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4.

In case of business need, Askari Cement will ask the employee whether he or she may rejoin during the leavewithout pay period within 10 working days; otherwise will serve the notice in lieu as per contract or as perAskari Cement policy.

1.0.8.9. EX-PAKISTAN LEAVE

1.

Any employee can apply for Ex-Pakistan leave subject to approval of CA (MD): Provided earnedleaves/casual leaves are available in a leave year.

2. Under no circumstances leave without pay or sick leaves can be coupled with ex-Pakistan leaves.

1.0.8.10. COMPENSATORY LEAVE

1. All employees who perform duty on gazetted holidays will be entitled to compensatory leave for that daywithin succeeding 3x months for Works and 1x month for HO. Such leaves will neither be accumulated norbe encashed.

2. One days compensatory leave will be allowed for every 8 accumulated extra duty hours to the employeeswho put in extra hours of duty in emergency after routine duty hours.

3. Workers who do not claim overtime will also be eligible to avail the leave.


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1.0.9. VEHICLE ENTITLEMENTS POLICY

1.0.9.1. SCOPE & APPLICABILITY

The vehicles policy outlines the matters related to use of Askari Cement vehicles allocated to Askari Cement entitledemployees for their usage to perform official duties and for private personal use. This policy supersedes all previouspolicies issued by Askari Cement. The Vehicle Management Policy has been divided into five main sections which areas follows:

1. Responsibilities2. Entitlements & Benefits3. Vehicle Usage4. Maintenance5.

Buy Back & Sale

1.0.9.2. OBJECTIVES

Main objectives of this policy are to:

1. Provide a comprehensive mechanism for vehicle management.2. Develop clarity and uniformity for proper vehicle allocation within the organization.3. Define responsibilities of departments involved in vehicle allocation and administration.4. Provide guidance to the users for different unforeseen situations.

1.0.9.3. POLICY ADMINISTRATION

This policy is subject to review after every two years or earlier as per direction of management. However, themanagement has the right to issue any amendment in this policy to deal with any issue. All amendments in the policy

will be issued after prior approval of competent authority i.e. BOD. All efforts will be made to ensure that this policyis implemented in letter and spirit. The policy will be administered by the HR and Administration Departments.

Financial expenses incurred in pursuing and following this policy will be monitored and recorded by the FinanceDepartment.

1.0.9.4. RESPONSIBILITIES

It is absolute necessary to lay down the responsibilities of different stakeholders in vehicle management.

1.0.9.4.1. RESPONSIBILITIES OF HR DEPARTMENT

HR department will administer this policy and recommend amendment(s) for approval by BOD. HR department willprovide clarity to all stakeholders departments. However in situations where an issue is not resolved, the case may bereferred to MD ACL.

1.0.9.4.2. RESPONSIBILITIES OF ADMINISTRATION DEPARTMENT

a. Administration department will extend support to HR and will be responsible for the complete inventoryof vehicles assigned to officers as well as vehicles returned (at the time of end of service), buybackoptions and transfer of ownership with full documentation and ready for disposal.


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b.

Specific expenses of each vehicle will be recorded by administration department in the history book ofeach vehicle to be maintained by the administration department.

1.0.9.4.3. RESPONSIBILITIES OF AUTHORIZED VEHICLE USERS

a. All users of vehicles (Officers or their official or personal drivers) will use the vehicles with proper care

and follow all safety requirements applicable.b. All users will be responsible for intimating the administration department on maintenance requirement

on time and give space to administration department for making maintenance arrangements (in casewhen the employee is being given company managed vehicle).

c. Users will not expose themselves and vehicles to unnecessary risks while driving or parking. Maximumcaution to be observed for the security of the vehicles.

d.

Legal cases resulting out of traffic accidents will be the sole responsibility of the employee until provenotherwise.

e.

Vehicles shall not be lent to others or used for commercial or sports events and vehicles shall not beoverloaded or used to carry goods, for which it is not suitable.

f. Failure to comply with the terms and conditions of this policy shall result in the vehicle being withdrawnfrom Officer for a period which shall be determined by MD on the basis of gravity of violation.

1.0.9.5. ENTITLEMENTS

1.0.9.5.1 ASKARI CEMENT EMPLOYEES

Under this policy, Askari Cement entitled employees are defined as employees hired in Askari Cement grade TS 3 andabove on open or fixed term contracts with regular benefits whereas open term contract means contract till the age ofsuperannuation (not less than 3 years to reach superannuation) or fixed term contract of minimum three years forofficers hired in grade TS 3 or above. Details of entitlement are as under:

Ser Appt Power Make Fuel (Liters) Driver

(a) Sr GMs / Coy Secy / CFO / GMs(W) 1800ccToyota/Honda (BasicModel, Manual /

Automatic transmission)350 Yes

(b) GMs (HO) / DGM 1300ccToyota Corolla (GLi)/Honda City(Automatic)

300 No

(c) SM / Manager 1300ccHonda City / ToyotaCorolla XLi (BasicModel)

250 No

(e)

Ex Army Officers (subject to at least 3 years contract) As per above mentioned Grade / appointment wiseauthorization

Ex Army Officer Subject to less than 3 years contract Vehicle from pool as per MDsdecision

1.0.9.5.1.1. FIXING OF ACCESSORIES

Fixing of following accessories (if not provided by manufacturer) is allowed only for one time for which the Admindepartments will facilitate.

ItemsSr GM / Coy Secy / CFO /

GM (W)GM (HO)/ DGM/ SM

/ ManagerSeat /steering cover Rs. 4500 Rs 4000Floor Mats Rs. 1000 Rs 800Security Alarm system(one time) Up to Rs.5000 Up to Rs 4000


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Fire extinguisher/ Tracker (one time) According to market price / through insurancecompany.

1.0.9.5.1.2. PROVISION OF VEHICLES (CONDITION)

An officer will be provided brand new vehicle as per above entitlement but in case of non entitlement (Officers onless than 3 years contract), the used cars can be provided from the available fleet. However, only those fleet vehiclescan be considered for allocations which are not more than three years old or driven not more than 50,000 kms. Usedcar will be replaced and auctioned through proper procedure on receipt/purchase of new one.

1.0.9.6. VEHICLE USAGE

1.0.9.6.1 USE OF VEHICLES

Driving by drivers employed personally by the officer or provided by Askari Cement, and family members of theofficer who are valid driving license holders, is permitted.

The Officer will also provide a list of the family members who are valid license holders and may drive the officialvehicle, along with a copy of their driving license and copy of CNIC for the record of the Admin Department. Butno CNIC copy or photograph is required of officers family and will only be asked, when insurance claim is lodgedand same has been asked by the insurance company.

1.0.9.6.2 OUT OF CITY TRAVEL OF OFFICIAL/PERSONAL BUSINESS

Askari Cement vehicles are permitted to be used outstation for personal and official uses. For any Officer(s) requiringa pool vehicle, the following will apply:-

a. For official work, then no payment will be made for distance traveled.b.

For personal work, then Rs 10/- Km distance traveled has to be paid.

c.

Any officer can use his personal or official car assigned to him/her for traveling on official duty at Rs.12per km will be allowed provided one side distance traveled is more than 50 kms.d.

Vehicles from admin pool will only be allowed to those officers who are not given company maintainedcar.

e. Any officer traveling from his permanent/temporary residential place to routine work place will not beentitled to any traveling claim.

f. GM (Works) can allow vehicle move up to 250 kms distance (one way) and similarly can delegatepower to Manager (Admin). Sr GM (HR & Admin) will approve mileage more than 250 Kms (one-way).

g. At Head office, Sr GM (HR&A) can allow vehicle move regardless of distance / mileage.

1.0.9.6.3 CHALLANS

Any challans levied by the traffic police / magistrate for the incomplete documentation will be paid by the user of thevehicle. Askari Cement will not bear any loss at all on this account. Challans due to violation of traffic laws will bepaid by the user and/or driver himself. It will not be reimbursed by Company.

The legal speed limits must be adhered to all the times on the roads. In case of violation of any traffic rules, themanagement may take it as negligence and would start disciplinary action process directly.


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1.0.9.6.4 THEFT

In case of theft, the user/Administration department will lodge FIR with the Police and get final report from PoliceDepartment. The Administration department will then arrange relevant papers for insurance claim etc. An alternate

vehicle will be provided to the official as a temporary replacement till realization of insurance claim andpurchase/lease of new vehicle, subject to availability.

1.0.9.6.5 ACCIDENT

In case of an accident of vehicle following steps will be taken:-

1. All efforts will be made to try to solve the problem amicably with other party.2. If necessary the person driving the vehicle is responsible to ensure that an FIR has been lodged with

police department.3.

Administration Department along with the driver of the vehicle will move the vehicle to workshop, fillinsurance claim. A blank claim form will always be kept in the car.

4. Administration Department will ensure repairs of the vehicle and perusal of insurance claims.5. In case of an accident to the Askari Cement car due to negligence or carelessness on the part of an

employee or due to consistent pattern of reported accidents, Askari Cement may require him to pay thebills and /or the Insurance deductible portion of the car repair bill.

6. Admin Department will ensure completion of police and insurance procedures.

1.0.9.6.5.1. RESPONSIBILITIES IN CASE OF ACCIDENT OR THEFT

A caution will be given to a driver on first accident but on happening of further accident disciplinary proceeding willbe initiated. If it is found that driver was at fault even when it was the first accident, this would initiate disciplinaryaction.

1.0.9.6.5.2 PROVISION OF ALTERNATIVE VEHICLES / PICK AND DROP

In case of non-availability or delay in purchase/lease, officers will be provided a vehicle from car fleet byAdministration Department.

1.0.9.6.6. MAINTENANCE AND SERVICING

Maintenance allowance of Rs.5,000/- pm shall be paid to all entitled officers which includes all repair / maintenance /replacement of tyres / battery / brake shoes, silencer, etc.

1.0.9.6.6.1. DUPLICATE KEYS

A set of duplicate keys of the vehicle will be kept with user of vehicle. At the same time the Administrationdepartment must keep a third pair of keys made from the market at head office.

1.0.9.6.6.2. FIRST SERVICE

It is the responsibility of the user that vehicle is booked for first service with recognized manufacturersworkshopbefore completion of 1000 KM.


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1.0.9.6.6.3. SAFETY AND SECURITY

It will be the responsibility of the users to ensure the safety and security of their vehicles. However, administrationdepartment will ensure installation of security system in all the vehicles.

1.0.9.6.6.4. PROVISION OF FUEL

The fuel expenses will be reimbursed as per limits defined in vehicle policy on monthly basis.

1.0.9.6.6.5. REGISTRATION & TAX

All Askari Cement vehicles will be registered in the name of Askari Cement. Administration department will issue acertificate / authority letter in favor of the officer who is using the car. At the time of transfer of ownership, AskariCement will transfer the ownership after clearance of all dues.

It is the responsibility of Administration Department to ensure that a vehicle has been registered. All taxes, renewal ofregistration book, radio licenses and any other document of the vehicle are kept up to date and complete on annual,bi-annual basis. In this regard the user of vehicle is also responsible to ensure that he/she always possesses complete,

correct and up to date records and documents as required by the traffic laws.

1.0.9.6.6.6. INSURANCE

All vehicles will be comprehensively insured by Askari Cement before allotment to the officer and before beingmoved from car showroom. The Administration department will ensure that a request for renewals of vehiclesinsurance is initiated to the Finance Department minimum 20 days in advance of its expiry. Any difference in

workshop invoice and insurance company reimbursement will be paid by Askari Cement provided such case is notsubject to negligence or reckless driving. Tracker shall be provided by the Insurance Company.

1.0.9.6.6.7. MAINTENANCE OF RECORDS

Following documents must be kept in Administration record:-

a)

Photo copy of purchase invoiceb)

Original registration Papersc)

Photocopy of Tax Papersd) Original insurance documentse)

Photocopy of permission letter from the Administration Department.f) Original Handing / taking certificateg) Warranty Book

1.0.9.6.6.8. DOCUMENTS IN THE VEHICLE

a)

Highway Code Bookb) Photocopy of Registration Papersc)

Original Tax Papersd)

Photocopy of Insurance Documentse)

Original Permission Letterf)

Accident Formg) Original Tax Tokenh) Vehicle Log Booki) User Manual


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1.0.9.6.7. BUYBACKS, SALE AND REPLACEMENTS

1. The entitled employees have the liberty to exercise the buyback option only once in their entire servicewith Askari Cement at the time of retirement as per criteria mentioned at succeeding para 6.

2. If an employee leaves the service before the required tenure of buyback, he may exercise the buyback bypaying remaining amount as per depreciation (i.e. 33.3%). Minimum buyback tenure shall be 2 years

service for General Officer and 3 years service for ex servicemen / civilians.3.

Buyback option is not offered to those employees who are terminated on disciplinary or performancegrounds.

4. Buyback option is not a right of the individual rather it is a benefit for good services. An individual whohave already availed buyback after 30 Apr 2012 will not be eligible.

5. All calculations will be made by Finance Department on monthly pro rata basis with respect to confirmeddate of leaving the company as intimated by HR department.

6. In case of theft or total accidental loss of the car, another car will be provided to the employee on thesame terms/conditions, as specified in this policy, on settlement of the stolen/lost vehicle.

7.

The replacement of the vehicle may be offered to the civilians only, after every 4 Yrs. For replacement onany other account, special approval of MD shall be obtained.

8.

If remaining service is less than one year, officer will continue with already issued vehicle till completion

of tenure.9.

In case vehicle is seriously damaged or unable to be driven etc. before the completion of requiredreplacement tenure mentioned at para 7, the same can be done after prior approval of the CA (MD).

10. If the remaining service of the individual is one to three years then the buyback period will be extended to one moreyear and for remaining period beyond one year the individual will be provided vehicle from company pool.

11. The buyback shall be calculated as under: -a) Civilians - 15% of invoice value.b) Ex-Servicemen- 10% of invoice value.

1.0.9.6.7.1. SALE PROCEDURES

1. If the user is not interested to buy back/purchase the vehicle, the vehicle may be inducted to AskariCement Vehicles Administrative fleet and can be considered to be sold to the Askari Cement employees

or otherwise in the open market through the bidding process as per procedure in vogue.2. The Admin department will keep the record updated of respective vehicles and will inform the user and

HR department three months in advance of due buyback date.3. In case of death of Officer while in service, his family members (wife/children) may purchase the vehicle

on payment of 10% of the market price or invoice value whichever is less, determined by the pricingcommittee comprising of representatives from Admin, Finance and Internal Audit (if available).

4. Any income tax, capital gain or other tax liability arising after the sale of vehicle will be the responsibilityof the purchaser.

5. The sale procedure will be dealt as per auction policy.

1.0.10. TRAVEL POLICY

1.0.10.1. PURPOSE, SCOPE& APPLICABILITY

This policy ensures that employee travel is consistent with the business objectives of Askari Cement. It also ensuresfair a