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Petron Engineering Construction LtdHuman Resources Policy Manual

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Welcome to Petron Group! We are pleased to have you as part of our esteemedorganisation and hope you have a long, happy and successful career with us. We hopeyour skills and potentials make a significant contribution towards taking forward ourvision and mission.

This manual comprises the human resources policies and procedures of Petron Group.The manual is an effort to create better understanding of o rganisation wide humanresources policies. They should eliminate the need for personal decisions regardingthese policies, protect the rights of all employees, and assure uniformity of actionthroughout the organisation. Each member of management is respon sible foradministering these policies in a consistent and impartial manner.

Policies in the field of human resources become subject to modification and furtherdevelopment in the light of experience. Each member of management can assist inkeeping our human resources program up-to-date by notifying the Human ResourcesDepartment when problems arise or improvements can be made in the administration ofour human resources policies.

The Office of the Group Head - HR will distribute notice of approved changes oradditions to this manual, as and when required. If you have any questions concerningthe handbook, please speak to your Manager / Functional Head or a member of HumanResource Department who will be pleased to help you. You can write to us athr@petronengineering.com . You can also address your queries to Corporate HumanResource, (Group HR) Petron, 6th Floor, Swastik Chambers, Sion -Trombay Highway,Chembur, Mumbai 400 071, Tel. : 022 -40856200.

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Sr.No. Content Page No.

1) Introduction to the Group 4

2) The Group Companies (Petron) 5

3) Hours of Operation / Work Schedules 6

4) Holidays 6

5) Professional Standards and Business Conduct 7

6) Policy on work Tools 8

7) Local Travel Policy 11

8) Domestic Travel Rules 14

9) Leave Travel Assistance Policy 20

10) Leave & Attendance Rules 26

11) Employment Terms & Conditions 30

12) Performance Management System 36

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This handbook is applicable to all employees of Petron Engineering Construction Ltd,including those on permanent rolls, project rolls (for specific period), advisors andretainers. This manual is developed to provide you with an information resource forcommon questions and concerns. If you have questions or concerns about the policiesoutlined here, you should contact your manager or Human Resources Department.

The general guidelines and the policies stated in this manual are subject to change at anytime at the sole discretion of the management. From time to time, any change in thepolicy will be updated and informed accordingly.

The Group companies, divisions and locations

Petron Engineering Construction Ltd., Mumbai

• Construction

• Petrofab (Dabhasa, Vadodara)

• Rockwool Insulation

• Petrotech

• Petron Mechanical Industries (Mahape)

Petron Civil Engineering Pvt. Ltd., Mumbai

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Petron Group is an established name in the EPC segment specializing in industrial andinfrastructure construction for the last four decades. The group having two flagshipcompanies PECL (Petron Engineering Construction Ltd) and PCEPL (Petron CivilEngineering Pvt. Ltd) has its operations in India, Middle East and Western Africa. Itoffers total solutions in engineering constructi on, with feasibility study, estimation,procurement and managerial and administrative support for project construction.

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Ref.No.: HR / Aug ’08 / HOP / Rev 0

The hours of operation currently in force are:

Location Petron, Mumbai Regional Offices Project sites

Office Timings 9.00 - 18.30 9.00 - 17.30 8.30 - 17.30 oras per client /consultant/project requirement

Weekly Off Sat, Sun Sun Sun

Holidays: 12 days. List to be circulated during December every year.

(Note: Regional / Site offices will declare holidays based on local practice / state government declared holidays).

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Ref.No.: HR / Aug ’08 / PS / Rev 0

Petron Engineering Construction Ltd. - PECL assumes that those associated with theorganisation will conduct themselves ethically and in accordance with what are generallyaccepted as "standard business practices." The increasingly complex relationships thathave evolved between Petron and the numerous individuals, companies, and othergroups, with which it deals, require that persons representing Petron exercise a highdegree of personal responsibility, integrity, and sound judgment.

Each employee should be familiar with the policies and procedural guidelines that coverthe business activities that are his / her responsibility. This requirement will varysignificantly depending on the employee's position.

It is expected that by clearly setting forth the sta ndards of behavior that Petron expectsfrom its employees, any misunderstandings will be minimized, and any questionablesituation can be brought to the attention of the responsible administrator and resolved.

Any employee who has a question about these issues, or the policies governing them,that cannot be answered by his / her supervisor is encouraged to direct the question toHuman Resources Department.

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Ref.No.: HR / Aug ’08 / PWT / Rev 0

1. Objective

To lay down guidelines for providing work tools to employees for official use .

2. Mobile Phone

a. To be provided to employees including trainees, advisors and retainers

based on specific role requirement and with approval from immediate

superior not below the level VP.

b. Handsets and SIM cards are to be purchased by employees.

3. Local calls / SMS/ STD/National Roaming: To be provided on need based

and to be decided by Project Manager / Project co -ordinator / Director

Operations.

a) ISD/International Roaming: To be provided to employees at A & B Grade

purely based on role requirement and with approval from Business Head or

Managing Director.

Maximum Eligibility limit for usage of mobile phone (for off icial use only) are

given below :

Bills exceeding the monthly limits need to be approved by the HOD.

Level Eligibility(Rs. Per month)

A (M17 – M15) 4000

B (M14 – M9) 3000

C (M8 – M5) 2000

D (M4 – M1) 1500

Advisors As per terms

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b. Procedure

If the mobile bill is within the eligibility limits, employees have to self -certify and

return the bill to the concerned coordinator. If the bill excee ds the eligibility

limits, then the employee shall identify personal calls made by them in the

monthly bill and he shall give a cheque to the company for such amount.

Remaining bill shall be submitted for approval of Department Head.

4. Desktop PC

a. Eligibility:

All Employees.

b. Desktop Configuration

The configuration of the desktops provided should be at least Pentium 4

or equivalent. This shall be reviewed on annual basis.

c. General

Employees may only use software according to the business requirement.

The company prohibits the illegal duplication of software and its related

documentation.

Equipment must not be attached to or removed from the company

network, or removed from its normal location, without the approval of the

IT in charge / the person authorized by him.

Illegally acquired software must not be loaded on company owned

equipment to avoid risks from viruses or o ther malicious devices and to

prevent exposure to legal proceedings.

If a workstation is shared by more than one person, then each user

should use hisown user ID while accessing the network. There should not

be any written record of passwords.

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5. Laptops

a. Eligibility

All employees at A (M17 – M15) and B (M14 – M9) levels are eligible for

laptops in place of desktop PC.

For employees at C (M8 – M5) & D (M4 – M1) Grade Levels, laptops shall

be provided to employees based on role requirement and with approval

from Department Head.

b. Pool Laptops

All individual business units and / or locatio ns shall keep a pool of 3 to 5

laptops with the individual I.T department so as to facilitate employees

who are required to travel on frequent basis.

6. Internet Data Card / Pen Drive

a. Eligibility

Internet data card and pen drive shall be provided t o employees based on

role requirement and with approval from Department Head & HR Head.

b. Monthly usage limits

Reimbursement towards eligibility of data cards usage bills shall be at

actual subject to a maximum limit of Rs.1000 per month.

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Ref.No. HR / Aug’08 / LTP / Rev 0

1. Objective

To lay down guidelines for all employees in Petron Group so as to claim

expenses incurred on local travel undertaken on account of official outdoor

duties within the municipal limits of the place of posting.

2. Entitlements

2.1 Local conveyance expenses can be claimed as follows:

Grade Level Mode of Local Conveyance

A (M17–M15 Company Car/ Hired car

B (M14-M9) Own / Hired Car / Taxi

C (M8 – M5) Metered Taxi

D (M4 – M1)Public Transport / Auto /Two

wheeler/ Metered Taxi

General

StaffS1 - S5 Public Transport / Auto /Two wheeler

2.2 In case of employees using their car for local official travel, they will be

entitled to claim Rs.8 per km. (only G.M. & above).

2.3 In case of employees using their two wheelers for local official travel, they

will be entitled to claim Rs.4 per km.

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2.4 For consultants and outsourced employees, the applicable category will

be decided at the time of finalization of conditions of contract / terms of

outsourcing agreement and documented therein.

2.5 All cases, where a car has to be hired have to be booked through the

local administration department (hired car for Level M9 – M14 will be @

Rs.10/- or below per km). For M15 – M17 hired car may be booked at

actual rate.

2.6 During local outdoor duty the employee can additionally claim

reimbursement for the following :

• Expenditure incurred towards meals if an employee is out on

outdoor work for 4hrs. or more and during the lunch time (12 noon

to 3 pm) or dinner time (8 pm or beyo nd) will be reimbursed. The

reimbursement will be as follows :

Grade Level Reimbursement

A (M17 - M15) Actuals

B (M14-M9) 500

C (M8 - M5) 300

D (M4 - M1) 200

General Staff S1 - S5 100

Subject to production of bills. Liquor not allowed

• Parking / Toll charges at actual, subject to production of parking

tickets.

2.7 Under this policy, no claim should be made for travel from home to office

and back.

3. Procedure

All claims should be authorized by the Department Head. It shall be the

responsibility of the employee and the immediate superior to verify the

correctness of the claim. Claims for reimbursement must be made through

business / conveyance form (Annexure – I).

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Employee Name : Company :

Employee Code : Division / Dept.:

Grade / Level :

Kindly reimburse the following expenses incurred by me in connection with Company’swork.

Date Particulars Purpose Amount

Rupees in Words

Approved By :

Signature of Employee : Signature :

Name :

Date : Date :

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Ref.No.: HR / Aug’08 / DTP / Rev 0

1. Objective

To provide guidelines for domestic travel, accommodation and related expense

incurred during business travel.

2. Applicability

This Domestic Travel Policy shall be applicable to all the employees of Petron

Group including Trainees, required to undertake business travel within India.

3. Mode of Travel

The mode of travel as applicable to different categories of employ ees in

different cities is listed below:

Grade Level Class of Outstation TravelMode of LocalConveyance

(while on outstationduty)

Grade – A (M17-M15)Air (Business Class) or AC IClass Train or AC HiredTaxi.

Company Car/ Hired Car/Metered AC Taxi

Grade – B (M14-M9)Air (Economy Class) or AC IClass Train or Hired AC Taxi/ Own vehicle.

Hired / Metered AC Taxi(hiring cost will be @Rs.10/- km or below.

Grade – C (M8-M5)Air (Economy Class) or ACchair car Train / Taxi Private/ Own vehicle.

Public Taxi / MeteredTaxi

Grade – D (M4-M1) AC -2 Tier or AC chair car orLuxury AC Bus

Metered Taxi / Auto /Public Transport

GeneralStaff (S1 – S5) AC -3 Tier or AC chair car or

Luxury AC BusAuto / Public Transport /Two wheeler

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4. 4.1 Those travelling by Business / Economy Class must avail of Bulk Tickets

facility to ensure economic viability. All bookings are to be routed through

Admin. Department.

4.2 When more than one person traveling to the same place, possibility of car

pooling etc. should be explored.

4.3 For those not eligible for Air Travel, the same can be allowed for Business

exigencies with the prior specific approval (to be highlighted in the Travel

Authorization Form, Annexure - I) of HR Head / Business Head. Details of

the exceptions shall be furnished to HR Head on a monthly basis.

4.4 It shall be the responsibility of the employee traveling to cancel and

arrange for refund in case of change in plan.

5. Hotel / Guest House Accommodation / Daily Allowance

5.1 Guest House accommodation wherever available should be used as a

first priority. In case of non availability of suitable guest house

accommodation, employees can stay in the hotels.

5.2 The entitlements for Hotel accommodation as applicable to different

categories of employees in different cities is listed below:

Travel Entitlement MatrixParticulars GRADES

Grade A B C D ELevel (M17-M15) (M14-M9) (M8-M5) (M4-M1) (S1-S5)

Travel Air (Bus) /AC I Class

Air Eco. /AC I Class Air Eco. AC 2T AC 3T

Local Conveyance

CompanyCar/

Metered/Hired AC

Taxi

HiredCar / Taxi

Taxi/Local

Transport

MeteredTaxi /Local

Transport

MeteredLocal

Transport

Lodging (Metro)Daily Room Rent( bills to be submitted)

Actuals 7000 5500 3000 2000

Lodging (Other than Metro)Daily Room Rent( bills to be submitted)

Actuals 5000 3500 2500 2000

Food , tips, other misc.Expenses Actuals 1000 750 500 300

Self Arrangement(includes food / tips etc.) 3000 2500 2000 1500 1000

Metro cities include Delhi, Mumbai, Kolkata, Chennai, Bangalore .

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5.3 The Administration Department will negotiate Corporate rates with hotels

at various locations and notify the same. In case of availability of hotels

with negotiated rates at a location, the employees are expected to stay in

the same. In the absence of a notified ho tel at a location employees can

choose to stay in a hotel as per their entitlements.

5.4 Expenses incurred on liquor and tobacco is not reimbursable under this

policy.

5.5 Bills for entertaining official guests of the company [applicable only for

Grade A (M17-M15) & Grade B (M14 M9)] while on tour needs to be

submitted separately as entertainment bills. All such expenses should be

certified by the employee stating the designation and name of the guests

on the bill and must be duly approved by MD / Directo r (Operations) /

Executive President.

5.6 The boarding and lodging expenses eligibility mentioned above in the

travel entitlement matrix is the maximum limits in each grade. The

settlement of boarding and lodging expenses will be strictly on production

of hotel bills and the balance amount has to be refunded to Accounts

department, if advance is taken.

6. Travel Bookings/ Advances/Claims Settlements

6.1 All the travel related transactions (booking, cancellations etc.) should be

routed through the Location Administration Department. Employees at

Mumbai / Delhi shall route all travel requests through Admin. All travel

requisitions have to be made in the prescribed format.

6.2 Employees on tour will be required to settle travel expenses directly and

claim reimbursement from the company within 7 days of travel by

submitting a travel expenses report (Annexure – II). Cash advances

should be settled within a week time.

6.3 Till the submission of Travel Report and refund of balance money, if any,

the Accounts Dept. will hold the total amount paid to the individual as

‘advance’ against the employee’s name.

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7. Travel for Training / Education

7.1 Employees on training / educational course shall be provided with Guest

Houses or Hotel accommodations as per the company decision.

3) General

• Management Trainees and Graduate Engineer Trainees will be eligible

for travel as per Grade D (M4-M1).

• For consultants and outsourced employees, the applicable category will

be decided at the time of finalization of conditio ns of contract / terms of

outsourcing agreement and documented therein.

• Any business / official travel and expenses thereof can be approved by

the employee’s immediate superior, not below the level of Dept. Head.

(GM – Manager).

• Any deviation in the claim can be approved by Business Head / HR Head.

Details of deviations shall be reported to the HR Head on a monthly

basis.

9. Maximum Reimbursement Limits against relocation :

Grades A(M17-15)

B(M14-M9)

C(M8-M5)

D(M4-M1),S5 & S4

Shifting ofhousehold

itemsupto 1

truckload.

Actuals Rs. 50,000/- Rs. 35,000/- Rs. 25,000/-

Relocation Expenses to be approved by HOD based on quotations from approvedtransporters.

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Travel Approval Form

Employee Name : ……………………………….. Designation : ………………

Employee Code : ……………………………….. Department : ………………

Project Name : : ……………………………… Job No : ………………

Visa Requirement (Yes/No)

If Yes………………………………………………….

For Country 1) ……………… Visa Type 1) ……………………2) ………………. 2) ……………………3) ……………… 3) ……………………

Travel RequirementMode Travel Date Return Date Remarks

Purpose ………………………………………………………………………………

………………………………………………………………………………………..

Emergency Address

……………………………………………………………………… …………………………

………………………………………………………… Phone : ………………….

Whom to contact in emergency…………………………………………………………..

Relation…………………………………………………………………………………..

Requested by Employee Signature Date

Approved by Authorised Signatory Date

Note : The approved form to be forwarded to the administration for necessary action.

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TRAVEL EXPENSE REPORTEmployee Name : Designation: Grade:

Employee Code : Department:Purpose of Trip : Date of Travel: To

Date Location Transportation Lodging MealsOther Expenses

(Out of pocket/Perdiem Currency)

INR

Mode(Air/Rail/Local) Amount Amount Amount (INR/USD)

TotalAmount

Grand Total

Advances taken if any

Balance due to employee

Balance due to company

Signature of Employee: Approved :

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Ref.No.: HR / Aug ’08 / LTA / Rev 0

1. Objective:To provide guidelines for claiming Leave Trave l Assistance.

2. Applicability:LTA is a component of the “cost to company” as agreed during the time of

employment. It is payable to only those employees wherein it forms a part of

their CTC.

3. Procedure:• All employees eligible for LTA can claim the same only after completion of

one year of employment with the company.

• In case wherein the employee has undertaken a journey towards LTA

before completion of one year with the company, he / she can claim LTA

only after completion of one year from the date of joining.

• LTA is normally calculated on the basis of 8.33% of the annual basic

salary, which is approximately one month basic salary in a year.

• LTA is a privilege that the company provides and it expects all employees

to avail the LTA while undertaking a journey.

• For availing LTA, an employee is entitled to travel as per the eligibility

according to his / her grade. All travel related original documents like

railway ticket, air ticket, boarding pass, original taxi bills etc are to be

submitted to Accounts Department forprocessing of LTA claim.

• LTA calculations will be based on calendar year.

• LTA will be allowed to be carry forward for one year. All other perquisites

will lapse, if not claimed within the year.

• An employee has to take a minimum of five days PL, in order to avail the

LTA.

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• An employee will have the option of taking LTA once in two years or twice

in a block of four years, to enable them to get LTA exempted from income

tax, if applicable.

• LTA amount payable to an employee will be on pro rata basis till the end

of the year (December), in the year of travel undertaken, so as to claim

exemption under income tax. However, if the employee leaves the

services of the organization before the end of the year, the equival ent

amount of advance LTA will be deducted from the full & final settlement of

the employee.

• Unavailed LTA will be paid on pro rata basis to the employees who resign

from the services of the organization.

4. Definition:Family: For this purpose "fami ly" means:-

(i) The spouse and children of the individual; and

(ii) The parents, brothers and sisters of the individual or any of them, wholly

or mainly dependent on the individual.

5. Exemption Limits in LTA:LTA is exempt from income tax within certain limits as under: -

(a) Where journey is undertaken by rail. The railway -fare for AC II class by

shortest route to the destination.

(b) Where places of origin and destination are connected by rail, but the

journey is undertaken by another mod e - the AC II class fare by shortest

route to the place of destination.

(c) Where place of origin of journey and destination, or part thereof, are not

connected by rail and journey is performed by any other transport; then:

(i) If a recognised public transport system exists between such

places the first class or deluxe class fare of such transport by

shortest route, OR,

(ii) If in other case, Second AC class fare for the distance of the

journey by the shortest route, as if the journey has been

performed by rail.

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Exemption will, in no case exceed actual expenditure incurred in the

performance of journey.

For all those employees who are eligible for air travel as per domestic travel

policy, an amount not exceeding the air economy fare of the National Carri er by

the shortest route to the place of destination.

To qualify for exemption it is necessary to perform actual travel.In case the LTA is encashed without actually performing the journey the entire

amount received by the employee would be taxed in his hands.

Number of times exemption can be claimed.The employee can claim exemption in respect of two such journey(s) in a block

of 4 years. For this purpose, the existing block of 4 years is the period 2006 -09.

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LTA CLAIM FORMAT

FOR THE BLOCK / CALENDAR YEAR…………………TO ………………………

PLACE OF VISIT: ……………………………………………………………………..

NEAREST RAILWAY STATION / BUS STAND:……………………………………

PART – A

(TO BE FILLED BY THE EMPLOYEE)

1. Name: ……………………………………………… 2. Emp. Code: ……………….

3. Designation: ………………………………………. 4. Basic Pay: …………………

(As on date of onward journey)

5. Place of Posting: ………………………………………………………………………

6. Leave Details ………………………………………………………………………….

a) Nature of Leave:……………………………………. b. Period: …………………..

7. Particulars of members of famil y in respect of whom the LTA has been claimed

Sr.No.

Name Age Relationship

1

2

3

4

5

6

7

8

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8. Details of journey(s) performed by employee and the members of his / her family

Dep.Date

& Place

ArrivalDate

& PlaceDistance

(Km.)Mode

ofTravel

Class ofAccommodation

FarePaid

TicketNos. Remarks

9. Amount of advance taken, if any: Rs.___________________

Certified that: -

1. The information given above is true to the best of my knowledge and

belief.

2. That my wife / husband for whom LTA is claimed by me is not employed

in any Public Sector Undertaking / Corporation / Autonomous body

financed wholly or partly by the State / Central Government or Local

body, which provide LTA facilities to its employees and their families.

3. That my father / mother / sister / brother is / are fully dependent on me

and he / she / they is /are residing with me.

Dated: Signature of Employee

Name:

Emp. Code:

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PART – B(To be filled by Accounts Section)

1. The net entitlement on account of Leave Travel Concession works out to

Rs. …………………………….. Rupees (in words):……………………

a) Railway / Air / Bus / Steamer Fare: Rs……………………….…………

b) Less Amount of advance drawn: Rs. ……………………………………

Vide Bill No.:…………….. Dated: Rs. …………………….

Net Amount:………………. Rs…………………………….

2. Expenditure is debit able to………………………………………………..

Major Head………………………………………………………………...

Sub Head…………………………………………………………………

(Signature)

Accounts Department

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Ref.No.: HR / Aug ’08 / LAR / Ref 0

1. ObjectiveTo define the leave entitlements, holidays and attendance rules for all

employees in Petron Group.

2. ApplicabilityThis policy shall be applicable to all employees in Petron India including

retainers/advisors and trainees.

3. Eligibility of employeesAll employees (including Trainees) will be entitled to two types of leave during

the year as follows:

Privilege Leave (PL) Medical / Casual LeaveNo. of days 30 14

Criterion

This leave can only beavailed after one year ofservice. However,depending on urgency ofrequirement, the immediatesuperior can sanctionadvance leave on pro ratabasis.

Casual Leave- 7days and,Sick Leave- 7days

Yearly Accumulation

All 30 days PL can beaccumulated every yearsubject to the overall limit of90 days.

Total Accumulation (upto a maximum of 90 days)

Unavailed casual leave atthe end of every year shalllapse.Sick Leave can beaccumulated upto 28 days.

Encashment ofearned leave (to becalculated on basic)

Leave beyond 90 days ofaccumulation can beencashed once in a year.

NA

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4. General Conditions• The year for purposes of calculating leave shall be the financial year.

• Leave cannot be claimed as a matter of right, and the discretion of grant

or refusal lies solely with the sanctioning authority.

• Prior approval is necessary for leave, including leave without pay.

However due to unavoidable circumstances, if prior approval cannot be

obtained, this must be regularized as soon as possible, but not later than,

on the day of resuming duties.

• Half day leave can be taken for absences either in pre -lunch or post-lunch

period, with the prior approval of the immediate superior.

• Leave can be suffixed and / or prefixed with weekly holidays / other paid

holidays.

• Holidays/ weekly off sandwiched between CL and SL will not be counted

as leave. However, holidays / weekly off sandwiched between PL will be

counted as PL.

• Holidays / weekly off prefixed or suffixed with any type of leave i.e., PL,

CL or SL will not be counted as leave.

5. Eligibility for Consultants / Employees on ContractThe eligibility of leave for consultants / employees on contract shall be

determined at the time of their appointment. However, the leave so finalized

cannot exceed 30 calendar days per year (or pro -rata for duration of

appointment during the year). The leave for consultants / employees on

contract can neither be encashed nor carried forward to the n ext year, if the

consultancy / contractual employment exist beyond a period of one year. Such

employees will not be entitled for CL & SL. However, they can avail PL on pro

rata from the second month onwards of joining.

6. Maternity LeaveFemale employees can avail of Maternity Leave as per the provisions of the

Maternity Benefit Act 1961.

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7. Work on holidays / weekly offA Entitlements• All Head Office and Regional Office employees may claim reimbursement

of meal expenses at actual subject to a maximum ceiling of Rs.100 per meal

for working on holidays / weekly off or late sitting beyond 7.30 pm on a

regular working day. This is subject to approval of department head.

B Procedure• All work on holidays / weekly off days should have the pri or sanction of the

immediate superior and the departmental head, as the case may be.

• All claims must be made on a monthly basis and should be authorized by the

immediate superior, not below the level of a General Manager. It shall be the

responsibility of the employee and the immediate superior to verify the

correctness of the claim.

Claims for reimbursement must be made through Expenses form alongwithproper bills / receipts.

8. Attendance• All employees are expected to report for duty at least 5minut es before the

scheduled time.

• All employees are required to swipe their access -cum-identity cards on the

swipe machine(s). Where there are no swipe machines, employees are

expected to sign the attendance register daily at the time of reporting for

duty.

• Habitual late coming is not appreciated and may attract disciplinary action as

deemed fit.

• Employees have to inform the concerned supervisor and / or the HR

Department in advance if they are not coming to work. If, due to any

unforeseen exigency, they cannot do so, then they are expected to inform

about their absence at the earliest.

• In case an employee is required to go for official outdoor duty, and he/she

would not be coming to office for the day, then; he/she has to fill the outdoor

duty slip given in Annexure – I. The same is applicable if the employee is

reporting later than the official start of work hours. The outdoor duty slip

needs to be approved by HOD and submitted to HR. if employees go for

official outdoor duty and are going to return to office, then they do not need to

fill the above.

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Name:

Designation: Employee Code:

Department: Location:

Nature of Leave

Number of Days:

From: ___________ To: _________________

Prefixed Holidays:

Suffixed Holidays:

Purpose of Leave:

Signature of Employee Sanctioning Authority

PL CL SL LWP OD

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Manpower Planning, Recruitment and Selection

On-boarding process:

(Step by step approach)

1. Manpower planning is to be done at the beginning of each financial year, based

on the yearly business plan. Being a project driven organization, the manpower

plan may also be reviewed in view of new projects being undertaken during the

year and also based on the demobilization plan of projects getting closed due

to its completion.

2. The complete manpower plan must reach HR duly approved by Head –

Operations and MD. Whenever any such change (increase or decrease in the

hiring) is perceived by Head – Operations, the same must be duly approved

and communicated to HR Department for further a ction.

3. The HR Department in turn will complete the preliminary screening of CV`s

from internal database and arrange for the interviews with respective function

heads.

4. Once the candidate is shortlisted after interview, he / she will be offered a

designation and salary commensurate with the qualification, experience & job

profile handled. Also, a checklist will be sent to the candidate for the

documents he / she needs to submit before joining. The accepted offer letter

must be duly signed and sent to HR department within a week failing which the

offer stands withdrawn.

5. Once the person joins and submits all the documents listed in the checklist, he

/ she will be issued an appointment letter. The individual has to sign a copy of

the appointment letter and send it back to the HR department. On receipt of the

acceptance of the offer letter, the person will be allotted an employee code and

thus the salary will be processed considering that date of joining.

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Absorption of notice period:

The management has the discretion to buy out the notice period of an

employee joining at a short notice. Though this should not be made a regular

practice, in such situations wherein the management feels that the joining of a

candidate may be expedited, the notice peri od salary deducted by the previous

employer may be reimbursed, subject to production of relevant documents.

New employees joining site or HO should get reimbursement after completion

of 90 days service in the company.

Joining at Site/ HO / RO:

Employees joining at any of the company locations will be reimbursed joining

expenses. The joining expenses include:

1. Travel expenses for self and family (dependents only). The travel

entitlement will be as per the grade of employee and limited to the

eligibilities mentioned in Domestic Travel Policy. Original tickets are to be

submitted for such reimbursements.

2. The household materials shifting expenses will be reimbursed to the

employee, as per the entitlement of the particular grade, subject t o

submission of original ticket jacket / challan etc.

The following types of accommodation are provided at site:

1. Shared bachelor accommodation.

2. Unfurnished family accommodation.

Employees reporting at any particular location must inform the respective HR

department at least a week in advance to make necessary accommodation

arrangements. A newly joined employee may be accommodated in the

company guest house (if available) for a period not exceeding 7 days. During

this period he has to make his own arrangement for stay. The administration

department at respective location will facilitate the employee in searching for

a suitable accommodation.

33

However, such employees who would opt for bachelor’s accommodation will be

provided accommodation with mess facility.

Leave during Transfer:

Employees transferred from one site to another will be entitled for three days

joining leave so as to ensure safe shifting of family & other household

materials.

Employees transferred from one site to another must ha nd over the

responsibilities to the new incumbent / existing site personnel through a written

note. In the absence of such a note, the employee may not be released from

the existing site and any delay thus caused will be attributable to the employee.

Retirement Age & Extension of service:

Normal retirement age of the employee is 60 years. The last date of

employment is the end of the month in which the employee attains the age of

60. However, in selective cases, the management at its sole discretion may

extend the services of the employee beyond 60 years. Such extensions will be

limited for only one year and will be purely on retainership basis. During this

retainership period the employee is guided by the terms and conditions as per

the company policy for retainers & advisors.

Separation:

Separation of an employee can be on account of resignation by the employee,

death, termination etc.

In case the employee resigns from the services of the company, the following

mandatory clearances are required faili ng which the full and final settlement will

not be done.

1. Clearance certificate from stores & accounts.

2. NOC from site.

3. Exit interview duly signed by the employee.

34

Notice Period:

As per the terms of employment, an employee has to serve the no tice period

as mentioned in his appointment letter. However, the management at its

discretion may release the employee even before the completion of the notice

period. The management may not accept the notice period salary payoff by

the employee in lieu of the notice period.

Employees will not be entitled for any leave during the notice period.

Employees availing leave during such period will be treated as leave without

pay or the notice period will be extended by the equivalent amount of days for

which leave is taken.

Any waiver of notice period will have to be duly approved by the management.

Overseas Posting Policy:

Employees posted abroad will be treated as employee on deputation. Though

the salary and other perquisites will be payable according t o the currency

prevalent in the place of posting, the employees will be deemed to be in

continuous services for the purpose of calculation of terminal benefits such as

gratuity etc.

The employee will be briefed about the working status in the other countr y i.e.,

whether single or family status. For travel entitlements, for self and family, the

prevalent foreign travel policy is applicable.

On return to the native country, the employee may be offered a salary in the

equivalent currency. This salary may be higher, lower or equal to the salary

being drawn at the foreign location.

Employee will be entitled for travel from the place of posting to the native

country once in a calendar year. Company will provide air fare for self & family

(if family status is awarded) for such travel.

35

Induction:-

Every new employee will undergo a structured induction at their respective

locations. The immediate supervisor of the new incumbent must ensure that

the person joining is inducted properly, which includes orien tation to the

organization, various departments and their respective functions, his individual

roles and responsibilities etc.

In case any assistance is required, the supervisor may approach respective HR

department or the Corporate HR.

MIS:-

All site and regional HR representatives must send a consolidated HRMIS (in

the specified format) so as to ensure coherence in approach towards

implementation of HR systems and policies.

36

Ref.No.: HR / Aug ’08 / PMS / Rev 0

Petron Group

Each of the companies will have annual business plan. These annual business

plans will further percolate down as the department objectives within a company.

The department objectives will form the basis of Key Result Area`s for

department heads. The department heads KRA will tr anslate into the KRA`s of

employees within the department. This will ensure that there is an alignment of

individual KRA`s (roles and responsibilities) with the overall objectives of the

group.

KRA`s will be formed by each employee of the organisation wit hin first 15 days of

the Performance calendar year (April to March). A mid term review (between

superior and subordinate) though not mandatory, is preferred so as to review the

performance and also to ascertain if there is any corrective action to be taken .

At the end of the year, i.e., during March, annual review of performance is to be

done (between superior and subordinate). The overall rating will be awarded by

the reviewer for his subordinate primarily based on the achievement of KRA

besides other significant contribution made to the business during the year. The

rating is on a scale of 1-5 wherein;

Rating 5 indicates - Performance redefines organisation standards.

Redefines her / his role. Performance is unprecedented / rarely observed

and sets a new standard or benchmark for the organisation.

Rating 4 indicates - Performance significantly exceeds expectations. Is

able to significantly exceed the target / goal set at the time of goal setting

exercise. This should be discussed at the time of goal s etting exercise as

a stretched goal.

37

Rating 3 indicates - Performance meets expectations. Is able to meet

the target / goal set at the time of the goal setting exercise.

Rating 2 indicates - Performance needs improvement. Is unable to fully

meet the target /goal which was set at the time of goal setting exercise.

Rating 1 indicates - Performance far below expectations. Is unable to

meet the target / goal which was set at the time of goal setting exercise.

In normal course, the annual increments will be b ased on business

results / company and industry performance. For those employees joining

during mid year, they must have completed a minimum of six months for

being eligible for annual increment.

The promotions and annual increments for supervisory grade w ill be

based on identification of the strengths and weaknesses, ability to take

higher responsibility and the potential to rise to the next level.

Training and Development Policy and Procedures

The purpose of Training and Development is to contribute to i mproved

business performance in the global competition by disseminating best

practice and developing employees and other associates to their full

potential to address the challenge of the changing environment.

The process of Training and Development will e nsure that employees and

associates have a high standard of skill and knowledge and can adapt to

technological and organisational change, thus achieving a high standard

of job performance.

Training and development needs are identified as part of strategic

business planning, during performance review of employees & induction

process and regular reviews of quality & effectiveness of the imparted

training. Employees are encouraged to be proactive in identifying and

acquiring skills and knowledge for effective working in consultation with

their superiors.

Responsibility of identifying training needs of subordinates lies with senior

management. Meeting the training and development needs thus derived

from performance reviews and business objectives is the responsi bility of

the Human Resource Department.

38

Policy

Petron is committed to excellence in people development in order to

maintain and enhance its position as a world class construction company.

We aim to create a culture of learning throughout where individua ls take

responsibility in partnership with the company for their development.

Petron recognises the need to develop its people so that they are fully

equipped to deliver Petron`s business objectives; both in the present and

in the future.

Objective

To ensure that Petron has people with the appropriate knowledge, skills and

behaviours to meet its business objectives in both the short and longer term

and also to allow our people to achieve their potential and career aspirations

within Petron.

Aims

• To equip people with the technical skills required.

• To provide leadership and management development to all managers

within Petron.

• To identify the development needs of Petron and those of individuals and

balance the two.

• To ensure that development needs are identified as part of the business

planning process and reviewed regularly.

• To promote the use of the full range of development opportunities.

• To ensure equality of access to all development opportunities.

• To provide career development for all.

• To provide effective induction for all new appointees.

• To ensure the effective delivery of mandatory training e.g. Health and

Safety etc.

• To ensure the appropriate skills are in place to deliver the business

strategy.

39

Procedures

Identifying Needs

Individual - These should be identified as part of the appraisal process.

When individuals work objectives have been agreed they should, with their

line manager, then consider the development needs to enable them to meet

those work objectives. At the same time individuals should consider their

longer-term career aspirations and identify the development needs arising

from these. These should always be discussed with line managers who will

need to take account of the needs of the whole te am and operational

requirements before agreeing.

Team - These too should be identified by team leaders and notified to the

Corporate Human Resource Development.

Organisational - These may arise as the result of new projects, changes in

legislation, the introduction of new policies or procedures etc. and should be

considered by Directors and HOD`s. They should be included in business

plans and notified to the Head of Human Resources Development. Needs

should be reviewed formally at least once in a year during the appraisal

process.

Meeting Needs

Individual - Once the appraisal is received, the HR department would

formulate the training calendar based on these specific needs.

Team – The HR department will support line managers in carrying out a

training needs analysis and identifying the most appropriate solution.

Wherever possible they will provide a tailored solution to the particular need

identified.

40

Organisational - Once a broad need has been identified more specific

training needs analysis wil l be carried out by the HR department. This will

enable them to specify the requirement and determine the most appropriate

way of meeting the needs. More specific details will then be discussed and

agreed with Top management to ensure their requirements ar e taken into

consideration.

On job Training:-

Being a skills driven industry, lot of emphasis would be given to on job

training. As far as possible, the training would be conducted at respective

locations to cut down on travel time of participants.

Evaluation

Learning must contribute to both business success and personal

development and overarching all these, is the need to ensure that Petron

achieves value for money. For these reasons there will be a robust process of

evaluation in place. All development activity will be evaluated in accordance

with Petron's Training Evaluation Guide.

41

The performance management system to be followed will be based on KRA`s. KRA

stands for Key Result Area. While we have number of responsibilities when working

in an organisation, not all the task that we do are of critical nature. All those tasks

which are critical to business are to be identified as Key Result Areas.

For example, an engineer supervising excavation at site will have “Excavation” as a

KRA. For this KRA, the measurables could be in terms of:

1. Within budgeted cost.

2. Within budgeted time.

3. Within permissible tolerances (allowance).

Thus even one KRA can have more than one measure. This concept of PMS is

derived from the well known management p rinciple of “Management by Objectives”.

It is generally said “What gets measured gets done”. Thus a system of framing the

KRA`s at the beginning of the year results in the following benefits.

1. Clarity of goals. This ensures that there is no ambiguity bet ween the

management expectations and the deliverables of the employee.

2. Alignment to the business objectives. This exercise ensures that all

employees of the organisation strive towards a common agenda. The

business plan of the company for a particular year becomes the

organisational goal.

3. At the end of the appraisal cycle, there is no room for subjectivity

regarding the performance measure of the employee.

4. Enables the employees to do a self appraisal as the planned objectives

are personally set by him / her at the beginning of the year.

Goal setting is an important aspect of life which can be implemented not only in

professional but personal life too. At the time of goal setting it must be ensured that

the goals are not too easy (as this makes it l ess challenging) and also not unrealistic

(as non-achieving them may result into losing faith in the system). Goals should be

stretchable to such an extent that achieving it gives a sense of satisfaction.

Collectively, it should elevate the organisational standards to achieve a higher level

of delivery in performance.

42

MANAGEMENT GRADE

(M1 to M17) & Trainees

PROCESS FLOW

Setting ofBusiness Goals

Setting ofDepartment Goals

Project Sites will haveProject Specific Goals like

profitability, projectschedule, quality, HSE etc

Goal Setting ofDepartment Heads

Individual KRA`s ofemployee

Performance Review of employee based on KRA`sset

Performance evaluation by the reviewer

Promotion & Annual Increment

43

Name: Grade:

Designation:

Qualification: Location:

Experience outside: Years with the Company:

Year of Last Promotion:

Immediate Superior: Department Head:

PART I: KEY RESULT AREAS 200 - 0 (Attach additional sheets if required)

Procedure: The Key Result Area section is designed to help you set objectives,

identify performance metrics, review th em in the course of the year and record

results achieved at the end of the year. You are required to fill in 5 to 7 Key Result

Areas based on the job allocated and done by you during the financial year April to

March.

You and your Manager need to sign of f the form to signify agreement. The original

should be with your Manager and a copy each with yourself and the HR Department.

1a. Key ResultAreas

1b. PerformanceMeasure /Objectives

1d. Summary ofResults AchievedAppraisersAssessment

1c. Summary ofResults AchievedAppraisee(Self Appraisal)

1.

44

1a. Key ResultAreas

1b. PerformanceMeasure /Objectives

1c. Summary ofResultsAchievedAppraisee(Self Appraisal)

1d. Summary ofResults AchievedAppraisersAssessment

2

3

4

1a. Key ResultAreas

1b. PerformanceMeasure /Objectives

1c. Summary ofResultsAchievedAppraisee(Self Appraisal)

1d. Summary ofResults AchievedAppraisersAssessment

5

45

6

7

1 e.

Detail any significant factor (positive / negative) which has had an effect on your

performance during the Appraisal year?

………………………………………………………………………………………

……………………………………………………………………………… ………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

1 f.

Do you have any concerns that you would like to highlight. If yes, please

elaborate?

………………………………………………………………………………………

…………………………………………………… …………………………………

………………………………………………………………………………………

………………………………………………………………………………………

Signature of the Appraisee Signature of the Appraiser

Date : Date:

46

PART II

2. Assessment: - (Please tick the appropriate box below).

RATING SCALE : The rating scale is between '5' to '1' where:

5 4 3 2 1

PerformanceRedefines

OrganizationStandards

PerformanceSignificantly

ExceedsExpectations

PerformanceMeets

Expectations

PerformanceNeeds

improvement

PerformanceFar Below

Expectations

Redefines his/ her role.Performanceisunprecedented/ rarelyobservedand sets a newstandard orbenchmarkfor theorganization.

Is able tosignificantlyexceed thetarget / goal setat the time ofthe goal settingexercise.This too shouldbe discussed atthe time of thegoal settingexercise as astretched goal.

Is able to meetthetarget /goal,which wasset at the time of the goalsettingexercise.

Is unable tomeet the target /goal,which was setat the time ofthegoal settingexercise.

Is unable tofully meet thetarget / goal,which was setat the time ofthe goal settingexercise.

2a. Self Assessment: Over all performance assessment by the Appraisee him / herself

on a scale of 1 to 5

1 2 3 4 5

Employee Signature

2b. Reviewer Assessment: Over all performance assessment by the Reviewer on

a scale of 1 to 5

1 2 3 4 5

Reviewer Signature

47

PART III: To be filled only if the employee is recommended for promotion.

Otherwise leave it blank.

PROMOTION RECOMMENDATION FORM

PROMOTION BEING RECOMMENDED FROM LEVEL______ TO LEVEL

_______

EMPLOYEE INFORMATION

NAME OF EMPLOYEE RECOMMENDED FOR PROMOTION :

EMP. CODE : COMPANY / DIVISION :

D.O.J : AGE :

CURR. LEVEL : DATE OF LAST PROM.:

QUALIFICATIONS :

WORK EXP. : PRIOR TO KSS / Petron AT KSS / Petron

PRESENT JOB RESPONSIBILITES

………………………………………… ……………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

48

SUGGESTED RESPONSIBILITES ON PROMOTION

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

JUSTIFICATION FOR PROMOTION

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………… ……

………………………………………………………………………………………

NAME & SIGNATURE OF ASSESSOR

Part IV: (To be filled by HR / Panel Members)

4a. Panel Assessment: Over all performance assessment by the Panel on a scale of 1 to 5

1 2 3 4 5

49

4b. Panel Recommendation

Panel recommendation for Promotion / Confirmation

Increment(based on rating)

Recommended forpromotion this

year

To be consideredfor promotion next

year

To be consideredlater

Comments from the Panel :

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

Panel Member Name: Signature:

Panel Member Name: Signature:

Panel Member Name: Signature:

Panel Member Name: Signature:

Part V- Training & Development Plan (To be done jointly by the Appraiser &Appraisee)

Procedure: The development plan should be used as a tool for evolving a plan for the

Appraisee’s personal and professional development. The development plan should go

beyond nomination to training programs and should include specific actions and tasks

that the Appraisee and her / his supervisor / manager will undertake for the Appraisee’s

development. The responsibility for the fulfillment of the development plan is jointly

shared by the Appraisee and his / her Manager. Appraisee to fill in the selfperceived training need and submit to the Supervisor / Manager, who will fill in theform after discussion. This section is mandatory, thus do not leave it blank.

50

5a. Strength:

Areas of Improvement:

5b. Action Plan for Training & Development of the individual.

APPARAISEE APPRAISER (FINAL)

Training needs

Selfassessment

of thetrainingneeds

Reason forthe desired

training

Appraiser'sassessment of

thetraining needs

Reasons foridentifiedtraining

1. Technical

2. Behavioural

3. Others

4.4. On- the -job.

Other

5c. Signature/ Employee's Date Assessor's Signature/Date

51

PERFORMANCE REVIEW FORM

REVIEW FOR THE PERIOD APRIL TO MARCH

Name: Grade:

Designation:

Date of Joining: Date of Birth:

Qualification: Location:

Experience Outside: Years with the Company:

Year of Last Promotion:

Immediate Superior: Department Head:

General Guidelines

• Allow the employee to complete the Self Review Form before commencing the

Appraisal discussion.

• Plan for the Objectives / Goals to be set for the ensuing year.

• Review targets set for the previous year and measure the extent to which targets

were accomplished.

• Keep the entire period under review and avoid isolated instances from

influencing the entire Appraisal.

• Joint discussion with the employee is essential.

• Do not let personal biases affect the appraisal review.

• Avoid salary considerations while assessing performance.

• Conduct the performance discussion in the right ambience and without any

external interruptions.

52

• All KRA`s have equal weightage.

Final Rating: Outstanding (5) / Superior (4) / Good (3) / Average (2) / Poor (1)

Comments of the Reviewer: ……………………………………………………….

53

SECTION A

A Performance in Key Result Areas Marks

1

2

3

4

5 Total Points

Out of 100

Overall rating ( as applicable)

Outstanding

5

Superior

4

Good

3

Average

2

Poor

1

Out of 100

Overall Reasons for Outstanding / Poor Rating

Elaborate reasons for the above rating and suggest proposed development plan for

outstanding employees / nature of assistance to be provided for poor p erformance

54

Training Programmes suggested

Training / Development (e.g. Formal courses, books, changes in responsibilities) needed

in relation to the coming year's targets

TECHNICAL –

DEVELOPMENTAL -

Promotion

(To be filled up only if recommendation is concerning Promotions)

I recommend that Mr. / Ms. _________________________be promoted from Grade

____________________

Designation ____________________________ to Grade ________ , Designation

____________________________

Assessor’s reasons justifying promotion of the employee:

Strengths Areas of Improvement

55

Overall Comments of Assessor

Assessor’s Name: _________________________ Assessor’s Signature . _________

__________________________________________ _____________________________

Assessor’s Designation: _________________________ Date:

_________________________________________ _______________________________

Reviewer’s Name: _________________________Reviewer’s Signature __________

Reviewer’s Designation: _____________________ Date: _____________________

Enclosure: 1. Annexure A - To be filled at the beginning of the appraisal year.

2. Annexure B - To be filled at the end of the appraisal year.

56

Annexure A

ANNUAL PERFORMANCE TARGET & REVIEW FOR THE YEAR 2007 -

2008 (To be filled at the beginning of the year)

NAME: DESIGNATION EMP.CODE

EARLIER BRANCH PRESENT BRANCH

JOINED PRESENT BRANCH ON

S.N. KEY RESULT AREA TOTAL MARKS

1

2

3

4

Total Marks 100

REVIEWEE NAME REVIEWER NAME PROJECT MGR/HOD

SIGNATURE SIGNATURE SIGNATURE

57

PERFORMANCE APPRAISAL FORMAT

FOR SUPERVISORY GRADE

(S1 to S5)

PERFORMANCE REVIEW & POTENTIAL ASSESSMENT FORM

REVIEW FOR THE PERIOD APRIL TO MARCH

Name: Grade:

Designation:

Date of Joining: Date of Birth:

Qualification: Location:

Experience outside the company: Years with the Company:

Year of Last Promotion:

Immediate Superior: Department Head:

General Guidelines

• Allow the employee to complete the Self Review Form before

commencing the Appraisal discussion.

• Plan for the Objectives / Goals to be set for the ensuing year.

• Review targets set for the previous year and measure the extent to which

targets were accomplished.

• Keep the entire period under review and avoid isolated instances from

influencing the entire Appraisal.

• oint discussion with the employee is essential.

• Do not let personal biases affect the appraisal review.

• Avoid salary considerations while assessing performance.

• Conduct the performance discussion in the right ambience and without

any external interruptions.

Final Rating: Outstanding / Superior / Good / Average / Poor

Comments of the Reviewer :

58

SELF APPRAISAL

DEVELOPMENTAL

Significant contributions made during the year (Mention at least 3):

Training / Development (e.g. Formal c ourses/ books/ changes in responsibilities)

needed in relation to the coming year’s targets:

Additional responsibilities taken during the year / tasks handled:

Comments of the Assessor:

OUTSTANDING: 5 SUPERIOR: 4 GOOD: 3

AVERAGE: 2 POOR: 1

FINAL RATING: PERFORMANCE

CAREER ADVANCEMENT / SUCCESSION PLAN

Is the Assessee capable of moving to higher positions?

Yes Not Ready No

STRENGTHS AREAS OF IMPROVEMENT