BERMAZ MOTOR GROUP

BERMAZ MOTOR GROUP

EMPLOYEE HANDBOOK Page 1

1. Employment & Placement 1.1 Recruitment

1.1.1 The recruitment and selection of employees are carried out on the basis of qualification, experience, merit and fitness. Progress within the company will depend very much on employee ability, dedication and loyalty towards the company.

1.1.2 It is the company’s practice to promote its own staff to higher position

whenever possible.

1.1.3 The company reserves the right to transfer its own staff within the organisation and associates as and when the need arises.

1.1.4 The sources of recruitment are notified of the vacancy and these include

advertisement in the press, employment agencies and the Labour Office.

1.1.5 Shortlist candidates will then be called for interview and requested to bring with them such documents as are necessary to prove their qualifications and testimonials. Application for Employment Forms should be completed before conducting an interview.

1.2 Interview

1.2.1 Where practical test are necessary, the Human Resource Executive ensures the relevant test is conducted and results of the test recorded in the Application for Employment Form.

1.2.2 At the time of interview the Human Resource Executive checks the

Application for Employment Form to ensure it has been correctly completed.

1.2.3 The interviewer must sight the interviewee’s Identity Card, original copies

of qualifications and testimonials. A photocopy of such documents must be submitted together with the application.

1.2.4 Any other documents which necessitates for performance of duties, the

interviewer must sight the original and a photocopy should be submitted together e.g. driving license.

1.2.5 The interviewer briefs the interviewee on the job description, duties and

responsibilities, pertaining to the vacant position.

1.2.6 Comments / remarks from the interviewers are recorded in the Application for Employment Form.

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1.2.7 After interviews have been conducted, the interviewing panel either selects the most suitable candidate or shortlist candidates for a final interview; thereafter chooses the most suitable candidate; follow by prior approval by the Managing Director / Executive Director on the Application for Employment Form.

1.2.8 The successful candidate is offered the post and the remuneration and

terms of employment are discussed with the candidate.

1.2.9 The salary offered should be in line with the salary scale of the organisation and the effect and implication on existing employees should be taken into consideration.

1.3 Offer of Employment

1.3.1 The selected candidate is offered employment in the organisation and if he accepts; the Human Resource Executive then prepares the Letter of Employment spelling out details of the terms and benefits entitlement.

1.3.2 The appointment letter is typed in duplicate :-

i. 2 copies on letter head - to the newly appointed employee

ii. 1 copy on white paper - for Personal file

1.3.3 Letters of Appointment are signed by the following authority for the following positions :

Signatory Positions Managing Director / Executive Director Managers and above

HR Manager Executives and below 1.3.4 The two (2) copies of the Letter of Appointment on letterheads are

forwarded to the newly appointed employee, together with a Pre-employment Medical Check-Up letter if required.

1.3.5 The second copy of the Letter of Appointment is to be signed by the new

employee and sent to the Human Resource Department of Bermaz Motor Group in acknowledgement and as acceptance of appointment.

1.3.6 The Human Resource Executive requests the new employee to furnish

the following and submit to Human Resource Department of Bermaz Motor Group for preparation of salary :

i. Employee’s personal data. ii. Letter of Authorization for payment of salary through the bank.

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1.4 Probation

1.4.1 Newly appointed staff has to serve an initial probationary period as specified in the Letter of Appointment.

1.4.2 The probation period is for the newly appointed staff to become

acquainted with work, colleagues and company facilities.

1.4.3 During employee probation, superiors will evaluate the performance, ability and reliability to determine whether the employee can make a successful career with the company.

1.4.4 If the company is not satisfied with an employee’s performance, the

company may at its discretion, extend the probation by another period not exceeding, the duration of the previous period. Employee will be informed of this extension before the expiry of the initial probation.

1.4.5 During the probation, the employee or the company may terminate the

contract of service without giving any reason with one (1) day notice.

1.4.6 All newly joined employees shall serve a probationary period commencing from the date as follow:

Joining Date Probationary Start Date

1st to the 15th

of the month

1st of the

current month

16th to the 31st

of the month

1st of the

following month

1.4.6 The probationary start date shall serve as the start date for calculation of

all terms and conditions and benefits entitled to employees.

1.5 Confirmation

1.5.1 Upon successful completion of employee probation, employee shall be notified in writing of confirmation in the employment of the company.

1.5.2 The letter of confirmation should be signed by either the Managing

Director / Human Resource Manager, as suits the position offered.

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1.6 Termination / Dismissal

1.6.1 Either employee or the company may give notice of intention to terminate the contract of service in accordance with the Letter of Appointment.

1.6.2 In accordance with the Employment Act, the company has the right to

terminate the contract of service on the following circumstances:

i. If the employee continuously absents from work for more than two (2) days without prior approval from the company or without reasonable excuse.

ii. Where employee purposely break any of the provisions in the

company’s regulations or rules of conduct. 1.6.3 Upon termination, employees are required to surrender all the Company

properties such as identification tag, mobile phone, lockers key, Company’s documents, files, vehicles, keys and other properties in her or his possession not later than her or his last physical working day in the Company.

Any such properties not received by Human Resources or Administration Department shall be charged against the employee’s outstanding salaries.

1.7 Retirement

1.7.1 Employee shall be subjected to compulsory retirement upon attaining the age of Fifty-five (55).

1.8 Transferability

1.8.1 Depending on the needs of the Company or its related Companies, employees may be required to work on such projects that may be assigned to him/her. If deemed necessary by the Company, employees can also be transferred to another place within the Company and its subsidiaries, associates and affiliates.

1.9 Changes in Personal Particulars

1.9.1 To ensure that all staff personal records with the company are kept up to date, employee are required to notify the company immediately of any changes in personal particulars, including:

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i. Marital Status and spouse’s particulars ii. Address and telephone number

iii. Acquisition of new educational or professional qualification

Employee is also required to furnish relevant documentary evidence, where applicable, in support of such changes.

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2. Work Schedule

2.1 Working Hours

2.1.1 Bermaz Motor Group observes a five-day week (Office) and an alternate Saturday (Workshop). Working days and hours are :

Office Working Hours Monday to Friday - 8.30am to 6.00pm Workshop Working Hours Monday to Friday - 8.00am to 5.00pm Saturday - 8.00am to 12.00pm Lunch break - 12.30pm to 01.30pm

2.1.2 Male Muslims attending Friday prayers may break from 12.30pm to

02.30pm on Fridays. 2.1.3 All employees are required to clock in when coming to work and clock out

when leaving work.

2.2 Absenteeism and Tardiness

2.2.1 It is employee duty to avoid unnecessary absenteeism and tardiness. Employees are expected to work on every working day, except for illness or approved absence. Absenteeism and tardiness make proper work scheduling difficult and may cause extra hardship on your fellow colleagues, who may have to take over your duty. Employee is required to telephone his / her supervisor or the administration department if unable to turn up for work or will be unduly delayed for a long period.

2.2.2 If employee fails to turn up for agreed overtime work without reasonable

excuse, it will be considered as an incident of unexcused absence

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3. Salary Administration

3.1 Mode of Payment

3.1.1 Salaries are paid monthly at the end of each current month either by cheque or direct credit to employee personal bank account.

3.1.2 Salary deduction will be made for the following purposes: -

i. Compulsory deductions under statutory requirement e.g. EPF,

SOCSO, Income Tax etc. ii. Any other deductions authorized by the employee or as per

Employment Act 1955.

iii. Any other contractual deduction between the employee and the

employer.

3.2 Payment of Overtime

3.2.1 All non-executive employees, irrespective of their monthly salary are entitling to overtime claims based on the following:

i. Employees earning below RM1500 per month

Employees are entitled to claim overtime based on their monthly basic salary.

ii. Employees earning above RM1500 per month

Employees are entitled to claim overtime based on and up to limit of RM1500 only. Any salary earned above the approved limit is not entitled to overtime payments.

3.2.2 All overtime claims (regardless of normal workdays, rest days and public

holidays) must be clocked using his attendance punch cards. 3.2.3 The employee’s immediate superior must approve overtime claims on a

DAILY BASIS. In this manner, the employee claiming the overtime must submit their punch cards for approvals immediately at end of day or following next morning.

3.2.4 The personnel assistant is directly responsible for ensuring that the

procedure is correctly and efficiently adhered thereto.

3.2.5 The department head is responsible for authorising overtime claims by the respective employees.

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3.2.6 Overtime Calculation

The overtime claim is based on the following calculation:

i. Overtime worked on week day

Basic Salary ---------------------------- x 12 x 1.5 x No of hours Worked 52 week x 41.5hours

ii. Work done on rest days (Sunday)

i. Less than half day or 4 hour Basic Salary ---------------------------- x 1 26 (Working Days) ii. More than half day but less than 1 day Basic Salary ---------------------------- x 2 26 (Working Days)

iii. In excess of 1 day Basic Salary ---------------------------- x 12 x 2 x No. of hours worked

52 week x 41.5 hours

iii. Work done on Public Holidays

i. Less than 1 day: (< 8 = 8) Basic Salary --------------------------- x 2

26 (Working Days) ii. In excess of 1 day: (> 8) Basic Salary ---------------------------- x 12 x 3 x No of hours worked 52 week x 41.5 hours

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3.3 Meal Allowance

3.3.1 Employees with a salary of RM1500.00 and below are entitled to meal allowance of RM4.00 per day.

3.3.2 Meal Allowance can only be claimed after 7pm provided the employee

work continuously from 5pm to 7pm (two hours) above the normal daily working hours.

3.3.2 Procedures are as follows :

i. Employees must complete petty cash voucher latest by the 10th of each month and submits it together with the overtime claim form to his / her immediate designate for verification.

ii. The meal allowance claim will be on a monthly basis and

coincides with the overtime submitted, i.e. January’s claim for meal allowance and overtime must be submitted on the 10th of February.

iii. All completed claims must be authorized by their respective Head

of Division.

3.4 Performance Review

3.4.1 Performance review exercise gives employee the opportunity to see how he / she have performed during one (1) calendar / financial year against his / her Personal Objective.

3.4.2 It allows the superior to highlight the employee strong and weak points and discuss areas, which require development. The rating evaluation and discussion will be private and personal matter between employee and the company.

3.4.3 The employee pay progression in rate is considered at each performance review. Employee appraisal report assesses amongst others on your productivity, work quality, punctuality, attendance, diligence, versatility, and etcetera.

3.4.4 Consideration is given for the employee length of service and good record

with the company.

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4. Leave 4.1 Annual Leave

4.1.1 Every confirmed employee, who has been in the service of the Company for a minimum period of one (1) year shall be granted paid annual leave by the Company as follows :

Employee Category Less than 5 years 5 years & above

Manager and above 20 22 Executive 18 19 Non-executive 16 17

4.1.2 Employee shall be entitled to annual leave after completion of one (1) year service. Any leave taken during first year of service shall be considered as advance or unpaid leave upon approval from Management.

4.1.3 All employees shall take their annual leave entitlement not later than 12

months after the end of every 12 months continuous service. Any annual leave not taken thereon, through a fault of the Company shall be forfeited unless prior approval has been granted at least one (1) month before 31 December of each year.

4.1.4 Pro-rated annual leave or salary in lieu of such leave will be extended to

employees on resignation or termination of service for whatever reason with the exception of the following : i. Termination due to misconduct ii. Termination under Section 15(2) of the Employment Act 1955 iii. Termination under Section 60F (2) of the Employment Act 1955

4.1.5 Annual leave applied on Saturday shall be considered as one (1) full day.

There would not be any half-day leave.

4.1.6 The Company reserves the option to request employees to take their annual leave during office shutdown provided the number of days requested does not exceed a reasonable proportion of an employee’s annual leave entitlement.

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4.2 Compassionate Leave

4.2.1 All confirmed employee are entitled to paid compassionate leave for the following events :

i. Death of Immediate Family Three (3) Days ( father, mother, child or spouse ) ii. Death of Near Family Two (2) Days ( Grandparent, Parent-in-law, brother or sister ) iii. Disaster affecting employee Three (3) Days and/or his/her property and belongings, e.g. fire, flood iv. Critical illness of Immediate One (1) Day

Family

4.2.2 Compassionate leave shall only be granted on the production of a Death Certificate and during the period of bereavement.

4.2.3 Prior permission shall be obtained before taking such leave. Where this is

not possible, the employee shall advise his immediate superior on the duration of absence and reasons thereof; immediately on the first day of resuming duty. Approval documentary evidence of the instances shall be given to the Company within one week of resuming duty.

4.2.4 Employees are expected to provide for sufficient annual leave availability

as a contingency against any unforeseen events requiring leave of absence.

4.3 Paternity Leave

4.3.1 Every confirmed employee shall be entitled to two (2) days leave with full day pay for the day of delivery, up to 5 surviving children.

4.3.2 This entitlement is for birth of employee’s first legal wife’s children.

4.4 Maternity Leave

4.4.1 Every confirmed female employee who has been employed by the company and provided that at the time of application she has not three or more surviving children, shall be entitled to sixty (60) consecutive days’ maternity leave with full pay.

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4.4.2 Maternity leave shall not commence earlier than a period of thirty (30) days immediately precedes the confinement or later that the day immediately following her confinement.

4.4.3 Any absence from work as a result of miscarriage, or any other illness

associated with pregnancy on a date earlier than the period of thirty (30) days immediately preceding the confinement shall not be considered as maternity leave but a normal sick leave.

4.4.4 Application for maternity leave shall normally be made at least one (1)

month before the commencement date. A certificate from a registered medical practitioner or a Government Hospital must support it.

4.4.5 If employee is medically certified unfit for duty upon the expiry of the

maternity leave, such absence shall be considered as normal sick leave.

4.4.6 Any employee who fails to resume duty on third day following the expiry of maternity leave without a recommendation of sick leave from any registration medical practitioner or without prior leave from the Company or without a reasonable excuse for such absence, this shall be deemed to have terminated her employment with the Company without notice.

4.5 Marriage Leave

4.5.1 Every confirmed employee shall be entitled to two (2) days leave with full day pay on the occasion of employee first marriage, provided the marriage (registration) takes place during the employment with the company and also provide marriage certificate.

4.6 Examination Leave

4.6.1 Every confirmed employee shall be entitled to three (3) days leave with full pay day in one (1) calendar year on the occasion on any examination either professional examination or other approved examination related to employee’s job function.

4.7 Prolonged Illness

4.7.1 On certificate and recommendation by a government or other registered medical practitioner, an employee suffering from a prolonged illness resulting from tuberculosis, anemia, cancer and leukemia and other life threatening diseases, including those resulting from accidents shall be granted in addition to the sick leave.

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4.7.2 In case of prolonged Illness and upon exhaustion of sick leave, the following will apply:

1st three (3) months - Full basic salary pay 2nd three (3) months - Half basic salary pay 3rd three (3) months - No basic salary pay Subsequently - Medically board out

4.7.3 Other prolonged illness will be given sympathetic consideration at the Company’s discretion.

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5. Public Holidays

5.1 A notice will be exhibited conspicuously specifying the gazette public holidays of which the employees shall be entitled to paid holidays.

5.2 Should a public holiday fall on Sunday, the following Monday will be compensated as a holiday.

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6. Medical Guidelines / Benefits

6.1 Medical Consultation 6.1.1 In cases where medical treatment is required, the Company will

reimburse you for any expenses incurred for medical treatment and medicine and will recognise a medical certificate from a registered medical practitioner, government medical officer in a government clinic / hospital.

6.1.2 Every employee and his/her immediate family members (i.e. legal spouse

and any non-working dependent born children below 21 years) should enjoy : i. Free medical attention, treatment and medicines as prescribed by

the doctor with a maximum per calendar year as follows: Category Max. amount per year GM & above RM4,000.00 AGM/DGM/Sr Mgr RM3,000.00 Manager RM2,500.00 Executives RM2,000.00 Non-Executives RM1,500.00

ii. Every confirmed employee shall be given dental attention by any

registered dental clinic.

iii. The company shall pay the cost of consultations, extractions, fillings with amalgam and x-ray done at any dental clinic provided that the cost per employee and immediate family members (6.1.2) per calendar year are as follows:

Category Max. amount per year GM & above RM800.00 AGM/DGM/Sr Mgr RM650.00 Manager RM500.00 Executive RM300.00 Non-Executive RM150.00 Iv. Employees’ absence due to dental ailments shall be treated as

sick leave on presentation of sick certificate from any registered dental clinic.

6.1.3 The company shall not pay for the following :

i. Any treatment except those referred to in item 6.1.2. ii. Medical, surgical or other appliances.

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iii. Any expenses incurred due to pregnancy, confinement or miscarriage.

iv. Any expenses incurred in respect of cosmetic consultation or

treatment.

v. Any expenses incurred in respect of spectacles, lenses and optician’s fees.

vi. Any expenses for the treatment of mental cases, which have been

certified to be of unsound mind.

vii. Any expenses incurred in respect of any disablement arising form attempted suicide, the performance on an unlawful act, exposure to any unjustifiable hazard except when endeavoring to save human life, provoked assault, the use of drugs and any breach of the peace or disorderly conduct.

viii. Any expenses due to any illness or accident arising out of or in the

course of employment, which employee can claim under the terms of the SOCSO or Hospital & Surgical Insurance Scheme.

6.1.4 Employees wishing to seek treatment from Private Medical Specialist or

Consultant can do so with the Company approval based on the written recommendation of the registered medical practitioner.

6.1.5 For all intents and purpose, Company paid medical treatment shall be

confined to Malaysia only with exception of employees required to travel to or be stationed abroad on Company business.

6.2 Sick Leave

6.2.1 The paid sick leave entitlement for all employees if no hospitalization is necessary is 22 days in each calendar year.

6.1.6 If hospitalization is necessary, the entitlement is a total of sixty (60) days in each calendar year, subject to any paid sick leave being deducted from the sixty (60) days entitled to in the particular calendar year.

6.1.7 The company reserves the right not to recognise any Medical Certificate

that issued by non-government or unregistered medical practitioner.

6.1.8 Any employee shall inform his/her immediate superior or head of Department of any absence from work due to sick leave within 48 hours of the commencement of such sick leave.

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6.3 Hospitalisation and Surgical Leave 6.3.1 Employees shall be covered at the Company’s expense by company

hospital and surgical insurance policy. The hospitalisation and surgical benefits and its limitation are specified in the policy, which is available at the Human Resource Department and respective employees.

6.4 SOCSO and Group Personal Accident Insurance 6.4.1 All employees are covered under the SOCSO scheme and Group

Personal Accident Insurance which provide protection and compensation should employee be injured during the course of work in the company.

6.4.2 The Company shall provide personal accident insurance coverage to employees. The coverage is 24 hours worldwide and they are covered against Death/Permanent Disablement. The quantum receivable is assessable by the relevant authority.

6.4.3 It is very important that employee report promptly to his / her superior of any accident occurring in the course of work so that investigation can be carried out prior to the filling of whatever claims due to the employee.

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7. Business Trip 7.1 Policy

7.1.1 This circular sets out the policy and procedures for claiming traveling expenses incurred by employees in the course of performing their official duties within Malaysia. Overseas traveling will be covered by a separate policy.

7.1.2 Depending on the nature / circumstance of the expense, traveling claims

may be in the form of reimbursement of actual cost incurred or as an allowance to the employee. Upon satisfying the conditions laid down, an employee can make traveling claims to cover the following expenses:

i. Petrol Cost (Company Car) ii. Mileage Claims (employee’s car / motorcycle)

iii. Public transport expenses (taxi, train, buses, air)

iv. Outstation Accommodation

v. Daily Meals

vi. Laundry, porterage and tips

vii. Other miscellaneous expenses (parking fees / toll charges)

7.2 Approving Authorities

7.2.1 All Head of Division and Heads of Branches are authorized to approve claims for reimbursements of expenses of their subordinate staff within the prescribed rates and conditions.

Claims submitted by Approving Authorities Managing Director Board of Directors (exclude the M.D) Director Managing Director Head of Division M.D / Director Head Office Executives Head of Division And Staff Head of Branch Head of Div – Network Operations

Branch Executives Head of Branch And Staff

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7.2.2 If the claimant’s immediate superior is not vested with the approval authority, the superior should verify the claims for approval of higher authorities.

7.2.3 No employee is allowed to approve his own claims.

7.2.4 In exceptional cases, deviations from the prescribed policy may be

justifiable and for such deviations, prior approval of the Executive Chairman / Executive Director or in his absence, the Head of Division concerned must be obtained. Only the Executive Chairman, or in his absence, the Executive Committee, has the authority to approve the claim documents in all such cases subsequently.

7.3 Procedures

7.3.1 Submission of claims to the Finance Department for processing shall be once a month i.e. by the 5th working day of the following month, unless otherwise justifiable. Claims must be made on the prescribed forms and payment shall be within two (2) weeks from the cut-off dates.

Type of expenses i. Petrol / mileage claims ii. Hotel, Meals, Laundry iii. Miscellaneous Expenses (tolls, parking expenses)

7.4 Modes of Travel

7.4.1 Travelling on Company business shall as far as possible be by the most direct and fastest route.

7.4.2 Travel by air

All arrangements to travel by air on Company business shall lie with the department / division concerned and shall be requested according to the entitlement as follows:

Overseas air travel

i. Business class for Managing Director and Director ii. Economy class for General Managers, Senior Managers,

Managers and all other category of employees.

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Domestic (including) air travel

i. Economy class for all categories of employees. Those employees who wish to travel in a class higher than those mentioned above will have to pay the difference in air fares themselves.

7.4.3 All air travel bookings should be made direct with the Berjaya Group

Berhad’s approved travel agents, unless otherwise approved. The Company shall firstly utilize the services of local travel agents directly or indirectly. All business travel by air need to be prior approved by the relevant authority on the prescribed “Travel Request Form” before booking of flight tickets.

7.4.4 Travel by train, taxi or any other public transportation

7.4.4.1 Reimbursement of fares for travelling by public transport will be based on actual amount incurred. Where appropriate it must be supported with receipts.

7.4.5 Travels by Company Car

7.4.5.1 Employee provided with Company car may claim reimbursement based on actual petrol cost incurred duly supported with receipts when required to travel outstation.

7.4.6 Travel by own vehicle

7.4.6.1 An employee not provided with Company vehicle or petrol allowance but is required to use his / her own vehicle to travel may claim in the form of mileage claims at the following rates:

Executives and Non Executives Per KM i. Car 1st 800km

2nd 800km

next 800km

balance

55 cent

45 cent

40 cent

35 cent

ii. Motorcycle Uniform rate 25 cent

7.4.7 If more than one person is required to travel to the same destination at the same time, car pooling should be considered wherever possible and in such circumstance only one person is entitled to the mileage claim.

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7.4.8 Where traveling by air is more cost effective but the employee elects, for

personal reasons, to travel by his / her own vehicle, he / she shall not be eligible to claim mileage at the Company rate if the cost of mileage covered exceeded that of the air-fare for the same distance. In such cases, his / her entitlement to the reimbursement shall be limited to the sum equal to the return airfare only.

7.4.9 Exception to this policy will apply and payment of the official mileage

allowance effected only when the approving authority considers and approves travel by own vehicle for the following reasons:

i. The traveler has to make stoppages along the journey to perform

his / her duties. ii. The traveler is exposed to additional travel on assignment. iii. Journey is preceded at odd hours due to urgent work at hand.

7.5 Daily Meal Allowance

7.5.1 Meal Allowance is meant to cover meal expenses. 7.5.2 An employee is entitled to meal allowance if he / she is required to travel

a one way distance of not less than 60 km measured from his/her office to the destination using the most direct route.

7.5.3 Employee required traveling a one way distance of less than 60 km will

not be entitled to meal allowance.

7.5.4 Employee will not be entitled to meal allowance if meals are provided by the Company. Should the employee entertain or being entertained, he or she also will not be entitled to meal allowance.

7.5.5 Claim for meal allowance shall be as follows:

PENINSULAR MALAYSIA

Category Breakfast Lunch Dinner Total per day

SGM/GM/DGM RM15.00 RM27.00 RM38.00 RM80.00

Manager/AM RM12.00 RM24.00 RM34.00 RM70.00

Executive RM10.00 RM17.00 RM23.00 RM50.00

Clerical RM8.00 RM13.00 RM19.00 RM40.00

NC, GU, etc RM8.00 RM13.00 RM19.00 RM40.00

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SABAH / SARAWAK

SGM/GM/DGM RM15.00 RM30.00 RM45.00 RM90.00

Manager/AM RM15.00 RM25.00 RM40.00 RM80.00

Executive RM10.00 RM20.00 RM30.00 RM60.00

Clerical RM10.00 RM15.00 RM25.00 RM50.00

NC, GU, etc RM 10.00 RM15.00 RM25.00 RM50.00

For general guidance, meal times are defined as follows: Breakfast : 6.00 a.m. to 8.00 a.m. Lunch : 12.00 noon to 2.00 p.m. Dinner : 6.00 a.m. to 8.00p.m.

7.6 Accommodation

7.6.1 Employees who are required to travel a one way distance of less than 145km will not be entitled to claim accommodation, unless office work requires a stay of a longer duration at a stretch.

7.6.2 As a save-cost measure, if more than one employee are traveling

together, whenever possible they must exercise twin-sharing accommodation. Under such circumstances, employee will not be entitled to claim accommodation allowance without receipt.

7.6.3 All employees on official duty are to stay in Berjaya Group hotels, if available. Any employee, who does not stay in the Berjaya Group hotel where it is available, will not be reimbursed for their expenses.

7.6.4 The Company at its discretion shall select and provide appropriate

accommodation with corporate discount for the employees who are on outstation duty / training. This would be a standard room in a 3 or 4 star hotel.

7.6.5 Claims for basic accommodation (without receipt) per day shall be as

follows:

CATEGORY PENINSULAR MALAYSIA SABAH / SARAWAK Executive

50 60

Clerical 35 40

NC, GU, etc 30 35

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7.7 Miscellaneous Expenses

7.7.1 An employee is entitled to claim miscellaneous allowance of RM20.00 per day from the third (3rd) day onwards if he / she is on outstation travel as defined in clause 7.6. This miscellaneous allowance is intended to subsidize the employee for the laundry expenses, porter age and tips.

7.7.2 An employee shall be entitled to claim Miscellaneous Expenses when he /

she is away from base station for more than two (2) consecutive days.

7.7.3 For non-executive will be eligible to claim laundry allowance for RM15.00 per day from the third (3rd) day onwards.

7.8 Government Tax and Hotel Service Charges

7.8.1 These expenses are reimbursable under the same travel claim application, if stated in the hotel bill.

7.9 Excess Baggage

6.1 An employee shall be allowed to claim expenses on excess baggage on official items only.

7.10 Cancellation Charges on Air Ticket

7.10.1 An employee is entitled to claim cancellation charges on air ticket, if the cancellation is due to work exigencies or other acceptable reasons.

7.11 Temporary Posting

7.11.1 Temporary posting is defined as an assignment from the employee’s base to another state or for a one way distance of not less than 60 km for a period of one week or more.

7.11.2 On temporary posting the following assistance will be given:

i. Reimbursement of actual of transportation to new location by the

cheapest means possible. ii. A daily subsistence / meal allowance in accordance with the Table

in 7.5.5 above applies. Laundry allowance of RM20.00 every three (3) days is claimable.

iii. Accommodation will be reimbursed according to actual cost or

clause 7.6 whichever is lower.

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7.12 Exclusion & Amendments

7.12.1 The Company may exclude certain categories of employees from the above entitlements if they are eligible to a different scheme / package.

7.12.2 Where necessary, the Company may modify or amend this policy to suit

changing needs and issue circulars or other instructions pertaining to such changes.

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8. Overseas Travelling

8.1 Hotel Accommodation

8.1.1 All employees on official duties are to stay in Berjaya Group hotels where available.

8.1.2 Any employee who does not stay in the Berjaya Group hotels where it is

available will not be reimbursed for their expenses, unless prior approval has been obtained from the Management Committee.

8.1.3 In locations where the Berjaya Group hotel is not available, they should

only stay in a standard room in 3 or 4 star hotels. 8.1.4 If no bills and receipts are submitted, the rates under lodging (hotel

without receipts) for overseas travel shall apply. 8.1.5 The rate for lodging (hotels without receipts) as per Appendix.

8.2 Subsistence Allowance

8.2.1 Employee who has a meal paid for under entertainment or by host shall not be entitled to claim that meal under subsistence allowance.

8.2.2 Where the hotels rate is inclusive of breakfast, the employee shall not be

entitled to breakfast meal allowance. 8.2.3 The rate for subsistence allowance as per Appendix.

8.3 Laundry Allowance

8.3.1 Laundry expenses incurred may be reimbursed for overseas travel exceeding three (3) days with official receipts.

8.4 Transportation Costs

8.4.1 Any form of travel within an overseas destination is reimbursable on actual cost, supported by official receipts.

BERMAZ MOTOR GROUP


Subsistence and Hotel for Overseas Travel Appendix

Country Asia (RM)

Subsistence Japan/Korea/Taiwan Others

Dinner Lunch B/fast Dinner Lunch B/fast

Snr. G.M ACTUAL ACTUAL

G.M & D.G.M ACTUAL ACTUAL

Managers / Asst. Mgr 110 90 60 45 35 30

Others 90 80 50 35 25 20

Lodging (hotel without receipt) RM RM

Snr. G.M 110 90

G.M & D.G.M 100 80

Managers / Asst. Mgr. 90 70

Others 80 60

Australia / NZ (RM) Europe (RM) USA / Canada (RM)

Dinner Lunch B/fast Dinner Lunch B/fast Dinner Lunch B/fast

ACTUAL ACTUAL ACTUAL

ACTUAL ACTUAL ACTUAL

70 50 40 90 70 50 90 70 40

50 40 30 70 60 40 70 60 30

RM RM RM

95 105 105

85 95 95

75 85 85

65 75 75

BERMAZ MOTOR GROUP


9. Business Entertainment

9.1 Limits

9.1.1 Only entertainment incurred on the company’s behalf for the purpose of promoting the company’s business and relations with client’s agents, etc shall be reimbursable.

9.1.2 All employees should refrain from lavish entertainment. Where possible,

business entertainment should be at any our Group’s outlet. The maximum entertainment expenses incurred would be as follows:

Category Maximum amount per month SGM RM500 GM RM400 AGM/DGM/Sr Mgr RM300 Manager RM200

9.1.3 In exceptional cases, any deviation from the above will be subject to the

approval of either the Managing Director, Director or Management Committee.

9.2 Procedures for Business Entertainment Claims

9.2.1 Original establishment bills, regardless of payment by way of cash or credit cards must support all claims.

9.2.1 Exception to the above 9.2.1 criteria :

Where the establishment does not issue any bill, claimant must submit the claim under memorandum of request for reimbursement. Reimbursement without bills is subject to cash expenses up to RM50.00

The establishment bills must be supported with all claims above RM50.00

9.2.3. Claims submitted should be contained the following particulars of the

person the employee entertained:

i. Name of client

ii. Purpose

iii. Remarks i.e. Outcome, results if any

BERMAZ MOTOR GROUP


9.2.4 The claim should only be sent to the accounts department after 9.3.1

below has been approved. The checking and verification at this point will be performed by the immediate sub-ordinate to the established “Approving Authority” stated therein.

9.2.5 After approval, the Accounts Officer will check to ensure it has been

authorised by relevant officers, amount claimed is correct and within the limit as defined in 9.1.2 above.

9.2.6 If there is any error, the account officer will bring to the attention of the

individual concerned to have the claims corrected or the excess limit approved by the relevant authorities.

9.2.7 If the bills are in order, the accounts officer will initial in the “check by”

space of the Entertainment Claim Form.

9.2.8 If everything is in order, the Accounts officer will prepare the payment voucher and cheques to the individual concerned.

9.2.9 All expenses incurred for entertainment and travelling in the current

months shall have to be submitted for reimbursement once a month to Finance & Accounts Department by 5th working day of the following month.

The following expenses shall NOT be permitted as claim for entertainment :

i. Personal activities with clients, agent, etc.

ii. Personal gifts to clients, agents, etc.

iii. Health & Recreation centers.

iv. Family entertainment.

v. Expenses as decided by Management as NOT reimbursable.

9.3 Approving Authorities

9.3.1 All Head of Division and Heads of Branches are authorized to approve claims for reimbursements of expenses of their subordinate staff within the prescribed rates and conditions.

BERMAZ MOTOR GROUP


Claims submitted by Approving Authorities

Managing Director Board of Directors (excluding MD)

Director Managing Director

Head of Division M.D / Exec Director Head Office Executives Head of Division & Staff Head of Branch Head of Div - Network Operations

Branch Executives Head of Branch

And Staff

9.3.2 If the claimant’s immediate superior is not vested with the approval authority, the superior should verify the claims for approval of higher authorities.

9.3.3 No employee is allowed to approve his own claims.

9.3.4 In exceptional cases, deviations from the prescribed policy may be

justifiable and for such deviations, prior approval of the Managing Director or in his absence, the Head of Division concerned must be obtained. The Managing Director must approve the claim documents in all such cases subsequently.

BERMAZ MOTOR GROUP


10. Other Monthly Claim Expenses

10.1 Petrol Claim

10.1.1 Employees provided with a Company car shall be eligible for reimbursement of petrol consumption through monthly claims as follows:

Category Max. monthly petrol reimbursement Senior General Manager RM550.00 General Manager RM470.00 Deputy General Manager RM410.00 Senior Manager RM340.00 Others RM290.00

10.2 Handphones

10.2.1 The Company shall pay for the monthly access fee and call charges of handphones. Call charges limits are as follows:

Category Monthly Call Chargers Limits

G.M and above

RM500 per month

Managers RM200 per month Others RM150 per month

10.3 Parking Fee and Toll Charges

10.3.1 Only Parking Fees and toll charges incurred in the ordinary course of performing company business will be reimbursed.

10.3.2 Original receipts / bills of parking and toll chargers must be produced

when submitting the claim.

10.4 Touch ‘n’ Go Card

10.4.1 The Company shall pay for the cost of Touch ‘n’ Go card up to RM100.00

per month only. Only General Managers, Head of Department and Operation Managers are entitled to the claim.

10.4.2 Operation Manager for this purpose refers to Sales Manager and

Marketing Manager. Office Manager, e.g.: Branch Manager, Workshop Manager, Parts Manager, etc. will claim in accordance with (9.3) above.

BERMAZ MOTOR GROUP


10.5 Overtime Meal Allowance

10.5.1 Staff working overtime will be entitled to Overtime Meal Allowance as follows:

i) Up to Executive level – RM20.00 per meal ii) Manager level and above – On actual basis (reasonable

expenditure)

10.5.2 The entitlement is claimable when a staff works past 8.00p.m on a normal working day, Mondays to Fridays.

10.6 Weekend Allowance 10.6.1 In the event a staff is required to work on a Saturday or Sunday. eg. on a

Roadshow or to complete the accounts for audit purpose, the staff is entitled to claim the following Weekend Allowance:

i. Up to Executive level – RM40.00

ii. Senior Executive to Assistant Manager – RM50.00

10.6.2 To qualify for the claim, the staff must work a minimum of four (4) hours. Should the work on those days exceed eight (8) hours, the staff, up to Executive level, will also be entitled to a Meal Allowance of RM20.00. Likewise, Managers and above are also entitled to a Meal Allowance on an actual basis (reasonable expenditure).

BERMAZ MOTOR GROUP


11. Staff Vehicle Purchase – Demo Unit 11.1 Introduction

11.1.1 It is common practice that an employee who works in a Trading / Manufacturing / Construction / etc. company, will be entitled to purchase goods / services from the company at a discounted price as benefits for being a staff of the company.

11.1.2 Therefore, Bermaz Motor Group of companies also wishes for its

employees to enjoy such benefits. 11.1.3 The objective of Staff Vehicle Purchase (SVP) policy is to streamline the

related procedures in order to ensure that a staff benefits by exercising his / her staff purchase, AND NOT for the purpose of profiteering.

11.2 The Procedure 11.2.1 To enjoy the entitlement, the staff needs simply to obtain a hard copy of

the SVP Application Form which is available from the respective Head of Department, and fill in the form.

11.2.2 After obtaining the various signatures / approval stated therein, make the

necessary copies as instructed for circulation.

11.2.3 The final selling price of demo vehicle will be at the discretion of the company subject to the condition of the car, i.e. brand and model, year of manufacture and the mileage.

11.2.4 The settlement procedures follow that in a normal sales transaction. 11.2.5 Ownership of the car must remain in the staff’s name for not less than 6

months from date invoiced.

11.2.6 The staff will have to bear all of the following costs relating to the Vehicle

ownership transfer and registration:-

Ownership Transfer Fee Re-registration Cost Road Tax Insurance Premium Inspection / Handling Fees Ownership Claim Fee Runner’s Fee

BERMAZ MOTOR GROUP


11.2.7 A staff is entitled to purchase one (1) company demo vehicle once every

3 years. The purchase of a second and subsequent demo car can be made PROVIDED that 24 months has lapsed from the date of the last invoiced transaction.

11.2.8 The above does not apply to the staff purchase of new cars.

BERMAZ MOTOR GROUP


12. Standard of Conduct & Work

12.1 Loyalty to the Company 12.1.1 You should at all times seek to act in the best interest of the company by :

i. Devoting you best efforts to the business of the company and neither on your own behalf or with others in competition with company nor undertaking any form of other paid work.

ii. Should always keep confidential the affairs of the company.

iii. Maintain the highest standard of honesty and integrity.

12.2 Responsible Conduct During Office Hours

12.2.1 The working relationships between you and the Company must be based on mutual respect and confidence. The company endeavors to demonstrate its concern and respect for you both as an employee and as an individual and expects that your behavior will earn that respect by being responsible, constructive and mindful of others.

12.2.2 You should comply with reasonable instructions or requests.

12.2.3 You should maintain good relations with those for whom and with whom

you work and avoid obstructive behavior or actions, which threaten the health or safety of others.

12.3 Disciplinary Procedure

12.3.1 Any misconduct, poor performance or infringement of our Company’s policies and procedures would result in disciplinary action being taken against employee.

12.3.2 Some examples of action against the Company’s code of conduct are as follow :

i. Insubordination or disobeying your supervisor by refusing

to carry out reasonable instruction. ii. Threatening, intimidating, provoking, assaulting, coercing

other employees or interfering with the work of other employees.

iii. Behaving riotously, disorderly or indecently.

BERMAZ MOTOR GROUP


iv. Willfully slowing down or disrupting the work or activities of the Company or influencing others to do so.

v. Defacing or damaging the Company’s property.

vi. Involving in embezzlement, theft or fraud of the Company’s

or other employees’ money or property.

vii. Possessing or selling drugs or harmful stimulants within the company’s premises.

viii. Gambling in the Company’s property.

ix. Any other act which is detrimental to the Company’s image

or which may disrupt the peaceful working environment of the Company.

12.4 Verbal Warning

12.4.1 Your immediate supervisor wills usually gives this. The warning is to draw your attention to the error committed and a distinct warning that it should not be repeated.

12.5 Written Warning

12.5.1 If you should persist in repeating the offence after the verbal warning is given out, the company would issue you with a warning letter.

12.6 Suspension or termination

12.6.1 This is depending on the gravity of the offence, or its consistent repetition, the Company may take either course of action or on after the other. This of course depends on the nature and gravity of employee’s offence.

12.7 Grievance Procedure 12.7.1 In the course of performing your daily work, you may from time to time

come across some problems or misunderstanding. You may wish to discuss the matter informally with your superior first, failing which you may contact the Managing Director.

Documents

BERMAZ MOTOR GROUP