GRINDROD POLICY TERMINOLOGY DEFINITIONS · Document No: DOC003 Revision No: 01 Issue Date: July 2015 Author: Cathie Lewis Approval: Exco/Board. page 2 of 13 bscondingA The employee

GRINDROD POLICY TERMINOLOGY

DEFINITIONS

Document No: DOC003 Revision No: 01Issue Date: July 2015 Author: Cathie Lewis Approval: Exco/Board

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Absconding The employee wilfully absents him/herself without notice, permission or valid reason and is regarded as a form of

misconduct.

Administration Order An Administration Order is where the courts place an order to cover all of the debtor’s outstanding debt. The debtor will make a monthly payment to his or her administrator and the administrator will issue those payments on a pro-rata basis to each of the creditors.

Whilst the order is in place, no creditor that the debtor owes money to who is included in the order, will be allowed to take any action against the debtor. Letters and debt collection procedures against the debtor will be stopped. In order to be eligible to apply for an Administration Order the debtor must have an attorney apply to court on his behalf. The debtor must owe monies to more than one (1) creditor and the debtors total debt must be LESS than R50 000.

AIDS Acquired Immune Deficiency Syndrome. Syndrome that results from HIV infection.

Affirmative Action Measures Action steps to ensure that suitably qualified people from designated groups have equal employment opportunities and are equitably represented in all occupational categories and levels.

Furthermore, measures are implemented such that no non-designated group member is marginalised and no quotas are defined.

Authorised Persons Means those persons authorised by Grindrod in writing to intercept and/or monitor communications and to operate, install and use interception tools on Grindrod’s communications facilities or premises.

Barrier Practice that impacts unfairly on the potential candidate or employee from a designated group.

Basic Salary plus Additional Benefits Referred to also as Retirement Fund Earnings Plus Benefits (RFE Plus Benefits). Salary is a fixed amount of money or compensation paid to an employee in return for work performed. Annual salary is determined by market pay rates for people doing similar work in similar industries in the same region and availability of skills. Basic salary (also referred to as ‘Cash Component’) is the amount remaining after removing individual elected benefits such as provident fund and medical aid contributions from the monthly salary. Benefits refers to monies allocated by the employee and/ or Grindrod towards retirement funds, health care/medical aid and funeral cover.

BBBEE Broad Based Black Economic Empowerment.

Benefit Salary (BS) A factor between forty percent (40%) and one hundred percent (100%) of an employee’s package is used as a basis to calculate contributions to retirement, disability and other such insured benefits; the value of this percentage is referred to also as “pensionable salary”.

Breach of Contract of Employment Failure of the employee to meet his/her obligations in accordance with the conditions under which he/she was employed.

Bursary Refers to money given to an employee to help him/her pay for his/her children’s studies.

DEFINITIONSGRINDROD POLICY TERMINOLOGY

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Change of Status When there’s a change in an employee’s job title, grade level, salary, Business Unit and/or Operating Unit.

Chief Executive Officer Refers to and includes the most senior executives across Grindrod.

COIDA Compensation for Occupational Injuries and Diseases Act, 1993.

This is the legal framework for injuries, disablement, disease and death caused by work-related activities (occupational disease and accidents). This used to be called Workmen’s Compensation.

Communication Facilities Include Internet access, email access and use of any equipment for purposes of:

a) accessing, creating, copying, distributing, sharing and deleting records;b) initiating, creating, receiving or storing communications.

Communications These include:

a) oral and verbal utterances of an employee in or during a meeting where the business of Grindrod or related matters are discussed;

b) the transfer of any information, whether speech, data, text, images in any format throughcommunication facilities; and

c) access to or use of the services available on the Internet, including email, websites, file transfer, videoconferencing, voice over IP, chat rooms, instant messaging and bulletin boards by employees throughthe equipment.

Compensation or Remuneration Refers to any payment in money and/or in kind, owing to any person in return for that person working for Grindrod, including subsidiaries, joint ventures and associations.

Competencies A set of behaviours that encompasses skills, knowledge, abilities and personal attributes that, taken together, are critical to successful work accomplishment. Competencies may be defined organisationally or on an individual basis.

Confidentiality (medical) Right of every person, employee or job applicant to have their medical information, including HIV status, kept private.

Conflict of Interest Any circumstance in which the employee has:

• an interest in and/or connection with an organisation with which Grindrod has transacted/istransacting with or may potentially transact with in the future; or

• has an interest in a business which does not transact with Grindrod

Where such an interest may influence decision making of the employee to unduly favour those parties which they have a connection with and/or detract from fulfilling their contracted responsibilities to Grindrod. Furthermore, conflict of interest may be indirect in that the primary interests being pursued or served are those of a relative, friend, associate or associated organisation of the employee.


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Continued Service At the sole discretion of Management, where it is in Grindrod’s interest to retain an employee’s skill and expertise, the employee may continue in service after retirement age on an extension basis of periods not exceeding six (6) months at a time.

Contract Any agreement or relationship involving the sale or purchase of goods, services, or rights of any kind, the providing or receipt of a loan or grant and the establishment of any other type of pecuniary relationship.

Contract of Transaction Any agreement or relationship involving the purchase or sale of products, services and/or rights.

Contributions or Deductions Contributions or deductions from Total Cost of Employment which includes, but is not limited to, retirement fund contributions, UIF, PAYE, medical aid, garnishees, company car, telephone calls. Some deductions are compulsory due to statutory obligations and/or company policy and others are voluntary.

Course Duration Refers to the number of years allowed for completion of the course as provided for in the rules and regulations of the institution or stipulated in any law of the Republic of South Africa.

Dangerous Horseplay Rough or boisterous play which could endanger lives or may result in serious damage to property.

Dereliction of Duty Forsaking or failure in duty or reprehensible neglect which has or could have serious consequences for the company.

Dependant As defined in the relevant scheme fund rule book.

Desertion Refers to an instance where an employee has left the workplace without prior approval/authorisation and does not appear to have any intention of returning to the workplace.

Designated Groups Black people (i.e. Africans, Coloureds, Indians, Asians), women of all races and people with disability who are citizens of South Africa. Asians within this context are those people of Asian origin who have attained South African citizenship prior to 1994.

Disability When a worker is unable to perform his/her duties because of any form of injury or illness.

Dismissal The employer terminates the employment relationship based on valid and fair reasons.



Divisional Chief Executive Officer Refers to and includes the most senior divisional executives across Grindrod.

Discipline A corrective measure taken against any employee or group of employees in order to correct unacceptable behaviour/ performance or to effect compliance with the governing rules, conditions of employment and/or statutory requirements.

Disciplinary Code A set of possible transgressions that employees may commit, accompanied by suggested sanctions for each type of transgression.

Dispute Refers to any matter over which there is a disagreement between the parties.

Employee Any individual formally employed and remunerated by Grindrod is considered an employee excluding independent contractors as defined within legislative guidelines. Employee types include permanent, part-time, fixed-term contract and casual employees unless otherwise specified.

Employment Equity The promotion of equal opportunity and fair treatment in employment through the elimination of unfair discrimination and the implementation of affirmative action measures to redress the disadvantages in employment experienced by people from designated groups to ensure their equitable representation in all occupational categories and levels in the workplace.

Entertainment Refers to meals, drinks, golf and other forms of entertainment with non-company personnel relating to Grindrod’s business.

Equitable Representation A broad representation that mirrors the national or regional economically active population.

Examination Refers to the final testing of the proficiency and knowledge of a student (oral or written) in a subject or module prescribed by the institution towards completion of a module or subject.

Exit Interview The departing staff member clarifies working experiences and reasons for leaving through either an interview or questionnaire.

Family Refers to nuclear family staying in the employee’s primary residence, limited to dependants confirmed on retirement fund nomination form and limit up to 6.

Family Member Including, but not limited to, a spouse, domestic partner, parent, child or spouse of a child, brother, sister or spouse of a brother or sister, of an ‘employee’.


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Fixed-Term Contract An employment contract with an expiry date.

Garnishee Order Garnishee orders are court orders requiring the employer of a person in debt to pay part of their wages, with interest, directly to the lender.

Gift Defined as a tangible asset such as an appliance, jewellery (excluding Kruger Rands), computer hardware or software or any other equipment. Note this is distinguished from the concept of “Significant Gift” which is defined within the Conflict of Interest Policy.

Grievance Refers to any dissatisfaction or feeling of injustice affecting an employee which arises out of his/her particular conditions of work or employment, or the employment relationship.

Grindrod Includes all subsidiaries/divisions of Grindrod Limited as referenced by the ‘Group’, the ‘Company’, the ‘Division’, the ‘Business Unit’ and the ‘Operating Unit’.

Gross Incompetence Repeated failure to conform to the required norms of acceptable behaviour or work standards.

Gross Insubordination The blatant defiance of an instruction given by a superior.

Gross Negligence The failure to adhere to or execute work according to the required and expected work standards and/or regulations with serious or potentially serious consequences for the company or employees safety.

Grossly Offensive Behaviour Excessive, indecent or insulting behaviour.

Group Standards Refers to the expectations and inherent responsibilities which an employee of Grindrod must adhere to in delivering their role. These expectations and responsibilities are defined as positive behaviours in Grindrod’s Code of Ethics and those discouraged behaviours are detailed in the Disciplinary Code.

Half-Day Leave After four (4) hours continuous service, leave is taken.

HIV Human Immunodeficiency Virus is a virus which weakens the immune system and may result in AIDS.



Hourly Rate Hourly rate, for employees remunerated on the basis of such, will be calculated on the basis of the cash component of an employee’s package/TCOE.

Incapacity Refers the inability of an employee to perform some or all of their assigned functions.

Incapacity Counselling Refers to discussions regarding incapacity to support the employee in adapting to the situation and reasonable interventions or viable alternatives to support continued employment for the incapacitated employee.

Incompetence The failure to maintain the required and expected work standards.

Institution Refers to a University/Technikon or FET institution registered and approved by the South African Qualifications Authority (SAQA).

Intercept Means filter, scan, block, redirect, access, disrupt, copy, print, disclose, retain, use, collect, delete and/or record, in any format and in any manner and “Interception” has a corresponding meaning. For purposes of this Policy “Intercept” shall also have the same meaning as the corresponding definition in the Regulation of Interception of Communications (RIC) Act 70 of 2002.

Internet Includes Grindrod’s intranet, mobile networks and/or wireless access areas.

Intimidation The use of threats or violence against a person or persons to restrain or force their action(s).

iPerform Computerised Performance Management System.

IT Equipment Means computers, desktops, servers, routers, laptops, telephones, cell phones, electronic handheld devices, facsimile machines, pagers, software, hardware and/or similar equipment owned by, licensed to or rented by Grindrod.

Job Description A job description summarises the key responsibilities or functions of a job. All existing and new employees must have a job description and letter of appointment.

Job Evaluation Refers to a fair and equitable system which establishes the relative value of a position in an organisation (for determining compensation).


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Key Job Objective (KJO) Refers to a core activity of the job. Managers and employees during their discussions must ensure that these KJOs are aligned to the strategy of the relevant division.

Leadership Leadership is the ability to influence others towards achieving a shared vision or target while facing continuous state of change and requires self-insight, having a well-communicated vision, establishing trust through meeting the needs and inspiring colleagues and taking effective action.

Leave Cycle Commences on the date on which the employee commences service and thereafter at the end of each twelve (12) months of service.

Letter of Appointment The Letter of Appointment (LOA) establishes the terms and conditions of the employment contract between the employee and Grindrod.

Management Refers to all roles with decision-making authority to influence Grindrod’s direction and progress either strategically and/or operationally. Such influence may be as a result of position and/or number of direct reports.

Measure of Success (MOS) Refers to a measure to determine if the core activity, or KPA, is achieved.

Medical Aid A medical aid scheme helps members to pay for their health needs, such as nursing, surgery, dental work and hospital accommodation. It is a type of insurance scheme. For this service, members pay regular contributions to the scheme.

Middle Management This group includes occupations whose main tasks consist of implementing policy and strategic planning, managing the functions/departments of the organisation in line with strategy and business rules.

Minimum Distance Refers to the minimum distance qualification that governs the eligibility of an employee for reimbursement of relocation and accommodation related expenses. Expenses will not be paid where the prior and new places of appointment are within a one hundred and fifty (150) km radius and/or is considered to be within daily commuting distance by the relevant Chief Executive Officer and/or relevant designate.

Monitor Shall have the same meaning as the corresponding definition in the RIC Act; and

New Centre Refers to the city in which the employee is relocating to and will be operating from in his or her new position within Grindrod.



Notice Period Refers to the period which must be served by an employee when terminating their services. Work during this period is compensated by Grindrod or Company. The Basic Conditions of Employment Act defines the basic notice period applicable based on years of service. However, an alternative period may be agreed within the employment contract.

Offensive Behaviour Indecent or insulting behaviour.

Out of Policy A recommendation/suggestion/request made by an employee for a new Policy, or amendment to a Policy.

Overtime Rate Calculated on the basis of the basic salary for employees.

Pay As You Earn (PAYE) The employer deducts respective tax from an employee’s compensation and subsequently pays the deducted amount to SARS on a monthly basis.

Performance Agreement The performance agreement is between the employee and his or her superior, confirming the agreed responsibilities of the employee’s position and performance standards to be achieved in the delivery thereof. Such standards may include but are not limited to time, quality, financial and risk measures.

Personal Information Means personal information as defined in the Promotion of Access to Information Act.

Place of Work The workplace is the whole business unit and all its combined operations, not each individual operational site.

Policy Refer to the governing principles and rules on specific processes and decisions.

Policy Maintenance An annual review of Policies conducted by Grindrod.

Previously Disadvantaged Employees (PDI) PDIs include South African citizens historically classified as Africans, Coloureds, Indians and Asians who have obtained such citizenship before 1994.

Procedures Refer to the step-by-step implementation of policy and evolve over time due new processes, tools and risks associated with an area change in response to internal and external environmental changes.


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Relocation The transfer of an employee to any part of Grindrod, normally at the request of Grindrod.

Relocation Costs The costs associated with the employee relocation.

Remuneration Refers to any payment in money and/or in kind, owing to any person in return for that person working for Grindrod, including subsidiaries, joint ventures and associations.

Resignation The employee terminates the employment relationship.

Retrenchment The employer terminates the employment relationship due to the employer’s operational requirements (economic, technological, structural or similar needs).

Retirement Retirement is the point in time when an employee chooses to leave his or her employment permanently. Retirement generally coincides with the employee’s eligibility to collect retirement resources such as a company pension, or distributions from another retirement fund.

Retirement Fund Refers to a retirement annuity, that is a tax incentivised vehicle to motivate individuals to save for their retirement.

Rewards Includes broader concept of anything which the employee and employer perceives to be of value resulting from the employment relationship.

SARS South African Revenue Service.

Semi-Skilled This group includes occupations whose main tasks focus on delivery of activities in line with operational guidelines in order to deliver strategic objectives.

Senior Management Refers to those levels of management directly reporting to the divisional and/or business unit CEO. This group includes occupations whose main tasks consist of implementation of policy and strategic planning, managing the functions/ departments of the organisation in line with the strategy and business rules.

Settling-In Allowance One (1) month’s salary provided prior to relocation to assist with costs of the move.



Sexual Harassment Refers to the unwanted conduct of a sexual nature. The unwanted nature of sexual harassment distinguishes it from behaviour that is welcome and mutual. Sexual attention becomes sexual harassment if:

• The behaviour is unwanted

• The behaviour is persisted in, although a single incident of harassment may constitute sexual harassment

• The recipient has made it clear that the behaviour is considered offensive

• The perpetrator should have known that the behaviour is regarded as unacceptable.

Significant Gifts Product or service provided whose market value totals above five hundred rand (R500). Note that this definition does not limit the right of Grindrod to take appropriate action regarding any amount, gift or value if the circumstances, in the sole opinion of Grindrod, may warrant such action.

Sick-Leave Cycle The period of thirty six (36) calendar months from date of employment or the completion date of the employee’s previous sick-leave cycle.

Skilled This group includes occupations whose main tasks focus on delivery of activities in line with operational guidelines in order to deliver strategic objectives. Includes technically-skilled or qualified staff.

Smoking Inhale, exhale, hold and or otherwise have control over an ignited product derived from tobacco.

SOP Standard Operating Procedures. A set of diagrammatic guidelines that Human Resources employees can use to ensure efficient and effective handling of Human Resources processes.

Stated Benefits Individuals previously employed by Grindrod were provided Accident Cover subject to earning over set income (sixty thousand five hundred and seventy six rand or R60 576.00 per annum). Individuals previously employed by Unicorn were provided Accident and Dread Disease Cover irrespective of earnings level. For the ex-Unicorn employee to have been eligible for this benefit, the employee must have joined the company before 1/7/1988.

Stillborn Pregnancy An employee who has a miscarriage during the third (3rd) trimester of pregnancy or bears a stillborn child. A stillborn, or stillborn infant, is an infant which is potentially viable but is born dead. Potentially viable means that the infant would have had a reasonable chance of surviving if it was born alive. Born dead means that the infant shows no sign of life at delivery.

Study Within this Policy the term study shall refer to any short course, certification, diploma or degree with a learning institute accredited by the relevant authority.


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Study Assistance Financial support provided to employees by Grindrod for study purposes.

Succession Planning A process designed to ensure the continued effective performance of an organisation by making provision for the development and replacement of key people over time. Succession planning is generally considered to be a strategy of workforce planning.

Supplementary Examinations Refers to secondary exam which a student is eligible to re-write, subject to an additional fee, based on their failing mark.

Talent Individuals who possess special, creative, artistic and/or mental gifts who can influence, contribute to and/or drive revenue for Grindrod by exerting extraordinary effort, exercising strong relationship management and creative solutions to business challenges.

Talent Acquisition The entire employee recruitment process.

Talent Development A strategic process that involves the analysis of training needs, the development of training plans, the implementation of training interventions and the evaluation and reporting of same.

Talent Management The implementation of integrated strategy, processes, system and tools to increase workplace productivity through attracting, developing, retaining and utilising people with skills, knowledge and attitude to meet current and future business needs.

Top Management This group includes occupations whose main tasks consist of determining and formulating policy and strategic planning or planning, directing and co-ordinating the policies and activities of the organisation in the private and public sectors, determining and formulating laws and for directing and controlling the functions of the organisation.

Total Cost of Employment TCOE represents the total cost of a position in Grindrod. It includes basic salary and the cash equivalent of compulsory and selected voluntary benefits. The employee is provided with flexibility to structure the TCOE within tax and other guidelines so as to optimise cash and retirement savings.

Transfers The movement of employees within Grindrod either at the request of Grindrod or the employee.

UIF Unemployment Insurance Fund.

Unauthorised Possession or Use of Company Property The unauthorised possession and/or use of company property and facilities on or off company premises.



Unbroken Service An employee who has been in the service of Grindrod for a continuous unbroken period of 24 months. Note: these employees are eligible to apply for bursaries for their children.

Unfair Discrimination A distinction is made against an employee or employees on the basis of a characteristic that is irrelevant to the job performance or inherent requirement of the jobs in question such that this distinction results in exclusion or disenfranchisement.

An example of this is where an employee is treated differently due to their real or perceived HIV status in a way that impinges their rights, however, discrimination is not unfair if it is based on performance against the inherent requirements of a job/position.

Victimisation The singling out of an individual employee or group of employees for ill-treatment because of real or alleged misconduct.

Workforce Planning Workforce planning is looking at what an organisation needs to accomplish in a given period of time; what knowledge, skills, and experience are required to get the job done and how large and what type of workforce is required to provide that mix of skills, knowledge, and experience. It defines the activities necessary to have “the right people with the right skills in the right place at the right time”.

Workplace The workplace is the whole business unit and all its combined operations, not each individual operational site.


Documents

GRINDROD POLICY TERMINOLOGY DEFINITIONS · Document No: DOC003 Revision No: 01 Issue Date: July 2015 Author: Cathie Lewis Approval: Exco/Board. page 2 of 13 bscondingA The employee