human Resources Policy Manual 12 June 2011-Approved and Final

8/10/2019 human Resources Policy Manual 12 June 2011-Approved and Final

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Division General Administration Rev. 2

Department Human Resources Date 01/06/11

Document No. HRD/MAL/GEN/0001 Page 1 of 58

Document Title Integrated Human Resources Department Manual

Advanced Petrochemical Company Uncontrolled if printed

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Table of Contents

Chapter Title Page

1 Introduction2

2 Work Relation 7

3 Manpower Planning and Recruitment12

4 Work Schedule and Leaves

4.1 Work Schedule

4.2 Leaves

19

5 Salary Administration and Promotion 29

6 Compensations and Benefits 34

7 Health Care 46

8 End of Service 53








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Chapter 1: Introduction








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1. Introduction

1.1 General Instructions

The purpose of this manual is to serve as a working guide for all employees in theCompany. This manual will be used to govern the conduct of the Companies internalbusiness and relationship with its employees.

The manual has been devised in accordance with the statutory requirements. TheCompany‟s internal rules and its contractual obligations are subject to all laws of theKingdom of Saudi Arabia. The manual clarifies the Company standpoint and therebyeliminates the need for individual decision-making in day-to-day affairs. This also ensuresuniformity in decisions across units and geographical locations.

While using this manual, it must be remembered that no two situations are exactly thesame. Further it is neither practical nor feasible to anticipate all possible work situations inadvance and present policies, which supply complete ready-made answers. Within theframework illustrated in the manual it is possible to address probable situations that mayarise in the normal course of business and employee relations.

1.2 Policy Presentation and Maintenance

The HR Manager & EMT are responsible for the overall maintenance and presentation ofthe Policy manual. They are also responsible for any revisions, alterations, additions anddistributions with the approval of the General Manager of Human Resources. Copies ofthe manual will be distributed to the Department Managers and any changes to themanual will be regularly communicated to employees through official memos/notifications.

The updating of the manual is the responsibility of HR Department. The policy manual willalso be available for easy reference on the Company‟s Intranet.

1.3 Organization of Manual

The Human Resources Policy Manual is organized into 8 Chapters as follows:

1 Introduction

2 Work Relation

3 Manpower Planning and Recruitment

4 Work Schedule and Leaves

Work Schedule

Leaves

5 Salary Administration and Promotion

6 Compensations and Benefits

7 Health Care

8 End of Service








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1.4 Policy Clarifications

Managers and Supervisors in the company should share the administrative responsibilitiesof this policy manual. The functions, that have primary responsibility for the policy manual,are referred to in the text by title or function.

All queries relating to the interpretation of the policy manual or cases wherein anyclarification pertaining to the Policy Manual is required where responsibilities are notclearly assigned amongst functions should be referred to the HR Department‟s Manager .

All cases where the Policy Manual does not suitably cover a situation, all such exceptionsare to be dealt with by the General Manager of Human Resources.

Disclaimer: The „ADVANCED‟ Personnel Policies Manual is an explanatory document

intended to assist Employees of „ADVANCED‟ in the determination of their respectiveemployment benefits to which they may be eligible as well as their respective obligationsto „ADVANCED‟ in return. The policies contained in this document do not represent, andmay not be construed as, legally binding terms and conditions of employment. Rather, thepolicies contained in this document are discretionary policies established by „ADVANCED‟ for its Employees and are subject to change by „ADVANCED‟ without consent of, orcompensation to, such Employees.

Furthermore, the Company reserves the right to change/modify/alter/add any content ofthis manual without any notice. This being a classified document/information, employee isrequired to retain its confidentiality and use it only for personal awareness/orientation. Thisdocument does not have any legal sanctity and therefore cannot be cited as reference to

gain any advantage inside or outside the company.

1.5 Definitions

Words and expressions used in this Manual have the following meanings:

Expression Meaning

Administering Health InsurancePolicy

Annual Agreement of Medical & Health Policy

ApprenticeIs the non-employee trainee engaged by the Company to betrained within a specified period of time as per a trainingcontract.

Approval AuthorityThe authority vested in an individual to approve / disapproveof a process / decision.

Basic SalaryEmployee‟s regular monthly basic salary, which excludes allallowances, bonuses, business assignment (including training)payments of overtime or any other compensation.

Board The Board of Directors of the Company

Company Means the “ Advanced Petrochemical Company”.








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Expression Meaning

Compensation AdministrationGuidelines

These Guidelines have been designed and formulated by HR,recommended by EMT and approved by Board of Directorsand will be reviewed on an annual basis if required. Thecompany may modify or revise these guidelines at any timebased on business need.

Co-Op TraineeStudents from universities and colleges trained by theCompany.

Department ManagerHead of a Department within a Function. DepartmentManagers are the first level of direct reports to the Function

Head.

Direct Hire Employees who have been directly hired by Company.

Eligible Dependents

The persons who have been designated as dependent(s) onthe employee according to Company policies and employmentcontract. For Saudi employees (wife(s), sons till they get jobsor reached the age of 24, which is earlier, daughters till theyget jobs or get married, which is earlier, and legally dependentparents (as certified by a Court of Justice)), for Non Saudiemployees (wife and Four Children up to the age of 18 yearsold).

Employee

Is a person who is recruited as a permanent employee by theCompany under an employment agreement for a specified orunspecified period to work for the Company and be under itsdirect control and supervision. This excludes apprentices,daily rate hires, contractor employees, loanees, secondedstaff, summer students and Co-op trainees.

Executive Management Team A committee comprising of the CEO, President, VicePresident and General Managers appointed by BOD.

Function HeadHead of a function or General Manager who manages anumber of Departments under him.

GOSI The General Organization for Social Insurance.

Government The Government of the Kingdom of Saudi Arabia.

Join DateThe date the employee joins the Company as mentioned inthe employment contract.

K.S.A. The Kingdom of Saudi Arabia.

Labor LawThe "Labor Law" issued under Royal Decree No. M/21 dated6 Ramadhan 1389H (15 November 1969), and including anyamendments thereto.








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Expression Meaning

Married Status A married employee whom declared as married in theemployment contract or any amendment thereafter.

Approval Authority Schedule Manual of Delegated Authority.

Next Higher Authority An employee who is the Immediate Superior‟s superior.

Out of Policy

Situations such, that are not clearly inferred and not coveredby the policy manual and have to be handled by the HumanResources Department. It requires approval of two levelshigher than normal approval but no higher than the CEO.

Point of Origin The place mentioned as the point of origin in the employeecontract.

SaudizationIs the policy to promote and develop quality Saudi nationals totake jobs of higher technical skills and to increase the numberof Saudis in the work force.

Single Status An employee, who may be married or single, whom declaredas a single in the employment contract.

Summer Trainee Non-employee students trained by the Company.

Year or MonthYears or months of the Gregorian calendar unless specifiedas 'Hijra Date'.








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Chapter 2: Work Relations








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2. Work Relation

2.1 Overview

The policy covers the basic principles that govern the disciplinary and grievance proceduresfollowed by the Company and standards of business ethics/conflict of interest situations.

2.2 Objective

The objective is to achieve the highest level of ethical work practices and professionalism inbusiness. It also seeks to propagate employee satisfaction by creating an effective system ofgrievance handling and disciplinary procedures.

2.3 Responsibility

i Employees: Are responsible for adhering to work rules establishedby the Company and maintaining ethical andprofessional standards.

ii Human Resources Department: Is responsible for handling any breach of policy.

iii Concerned Department: It is the responsibility of the concerned departments toreport and take action against any lack ofprofessionalism on part of the employees. Thedepartment should also address any grievances of theemployee.

2.4 Policy Details

2.4.1 Conflict of InterestRefers to situations wherein personal interests clash with those of the Company.

2.4.1.1 Guidelines

i. Company employees are prohibited from having a direct or indirectpersonal interest in the Company‟s contracts or projects or with thecontractors doing business with the Company.

ii. No employee should hold a controlling “personal stake” in another firm,which does business or intends to do business with the Company; thisincludes holding a position, having a controlling financial stake or any formof ownership in such a firm.

iii. Employees are prohibited from holding any position in another firm, whichdoes business or intends to do business with the Company.

iv. Company employees are prohibited from engaging in any trade other thantheir span of work as employees of the Company.

2.4.1.2 Non Prohibited Actions

The following are examples of non prohibited actions:

i. Employees participating in social affairs, which do not interfere in thenormal conduct of business.








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ii. Employees having limited interests in other firms, which do or intend to dobusiness with the Company, provided they have disclosed suchinformation.

iii. Family members of employees having a stake in other companies orholding a job position in another organization in cases where a potentialconflict of interest situation does not exist.

2.4.2 Business Ethics

Refers to maintain the highest standards of ethics, morals and professionalismconcerning conduct in business dealing.

2.4.2.1 Guidelines

All employees must abide by the following policy intent that:

i. The Company shall maintain the highest ethical standards in its conduct ofbusiness. It shall be honest in its dealings with internal as well as externalstakeholders. The Company shall avoid all situations, which can be termedas illegal or dishonest.

ii. The Company‟s records/audits shall be maintained at the highest level ofintegrity. Any instance of falsification will be dealt with strictly.

iii. Company information of confidential nature shall not be disclosed to thirdparties and any information regarding any other organization with which theCompany does business shall be kept confidential. This information might

have come by the means of normal business dealings. Any suchinformation shall be disclosed only after prior approval from the Companydelegated authorities.

iv. In case of legal dealings, confidentiality shall be maintained at all times.

v. All employees of the Company are to abide by the rules of the Kingdom ofSaudi Arabia during the conduct of business dealings. Any violation isconsidered as breach of the Company policy on business ethics.

vi. All employees are to show concern for the society and its customs in duecourse of business.

vii. No employee should indulge in any sort of bribery, dishonest means to gainfavors for the Company. Any such actions could lead to punitive actionagainst employees.

2.4.2.2 Non-Prohibited Actions

The following are examples of non prohibited actions:

i. Employees purchasing equipment/vehicles on an open bid basis.

ii. Participation in civic affairs, which does not lead to ethical concerns for theCompany.








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2.4.3 Grievance Procedure

Grievance Procedure deals with the effective handling of employee complaints againstoperational conditions or fellow employees. Grievance Procedure promotes anatmosphere of employee satisfaction wherein employees can work at optimal levels.

2.4.3.1 First Level Hearing

i. An employee must initiate his own complaint in writing and submit it to theimmediate supervisor.

ii. The employee should discuss his grievance with the immediate supervisor.The supervisor will conduct an investigation and then reply to the employeeregarding the complaint within five (5 ) working days (the reply may be

verbal or written, as appropriate).2.4.3.2 Second Level Hearing

i. In the event the matter is not satisfactorily addressed at the supervisor'slevel, then the employee may appeal to the next level of supervision(usually Department Manager) who shall attempt to solve the complaintwithin ten (10) working days.

ii. If the matter is not solved at the Department Manager level, employee mayraise the matter to the Function Head level who shall attempt to solve thecomplaint within ten (10) working days.

iii. If the matter is not satisfactorily resolved, then, the employee should seek

the assistance of the Human Resources Department.2.4.3.3 Third Level Hearing

i. On submission of a written compliant by the employee, Human Resourcesshall notify the concerned Department Manager that there is an employeecomplaint pending.

ii. Human Resources Department will schedule another meeting of all partiesto resolve the matter. At that meeting, the Human Resources representativefunctions as a neutral mediator seeking to arrive at a solution acceptable toall parties.

iii. The Complainant(s) and Supervisor may bring in other Company staffmembers as witnesses at this point in the process.

iv. The Department Manager or departmental representative shall have five (5)working days after the parties meet to respond in writing to the complaint.

v. If the case is not settled or if the nature of the grievance is such that it canhave implications for other employees as well, the complaint may beescalated to the higher levels (Function Head, General Manager of HumanResources and President and CEO).








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2.4.3.4 Employee’s Rights as Per Law

i. If the grievance or complaint is not finally settled within the Company, or theemployee is not satisfied with the final written decision, the employee maysubmit his grievance with the relevant jurisdiction authority according to theLabor law.

ii. In such case, it is the responsibility of the Human Resources Manager orthe Company representative to follow up and solve such a grievance orcomplaint with the government agency.

2.4.3.5 Fair Treatment to All Employees

i. No employee shall suffer from any unfair treatment because of the fact that

he has presented a grievance or complaint under the provisions of thispolicy.

ii. An employee must be allowed time off from regular duties as required forgrievance hearings without any deduction in pay.

2.4.4 Disciplinary Procedure

Company will impose penalties for violations as per the Company Schedule ofPenalties and Rewards attached to the Work Rules.

2.4.5 Rights to Ownership-Inventions/Patents

Inventions made in due course of work are treated to be as property of theCompany. The employee will be rewarded for such an act but the usage/patent of

the invention will belong to the Company.

Special awards may be given for any extraordinary achievements made by theemployees.








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Chapter 3: Manpower Planning and Recruitment








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3. Manpower Planning and Recruitment

3.1 Overview

The Manpower and Recruitment policy covers all policies and procedures, which arerelated to the manpower strength of the Company and the process of recruitment.

3.2 Objective

To enable the Company to implement its business strategy by:

i Planning for manpower requirements

ii Recruiting quality talent

iii Promoting Saudization

3.3 ResponsibilityThe Human Resources Department under the overall authority of the General Managerof Human Resources is responsible for preparing the manpower plan and ensuring thecompliance with the manpower and recruitment policy. The General Manager of HumanResources along with the Function Heads and the EMT finalize the preparation of theannual manpower plan, which also outlines the manpower budget for the year.Responsibilities for administrating this policy should be in line with Approval AuthoritySchedule.

3.4 Manpower Plan

3.4.1 Development of Annual Business Plan for All Functions

i. Before the start of the new financial year, the Function Heads prepare andfinalize a business plan for their function which will include the manpowerplan.

ii. New positions to be introduced, or new skills / competencies required withinthe organization, will be identified for recruitment.

iii. Overall Saudization targets and Saudization status will be determined as partof the manpower plan.

3.4.2 Determine Manpower Requirements

i. The Function Heads along with Human Resources will determine themanpower requirements for positions including middle management andbelow supervisory level, based on competency gaps, number of qualified

nationals, exits, promotions and succession plans, change in businessprocesses, introduction of new activities/processes/technologies and yearlybusiness plan.

ii. Function Head - GM, Human Resources along with the EMT will determinemanpower requirements for top management positions Section Head Leveland above.

3.4.3 Benchmarking

i. Once in 3 to 5 years, HR Department will conduct or participate in a survey toestimate benchmark manpower productivity ratios in the industry.








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ii. HR Department will also estimate changes within the organization, likeintroduction of new technology, processes and systems that could impactmanpower productivity and any associated changes in the skill/competencyrequirements.

iii. Human Resources will revise the manpower planning assumptionsaccordingly.

3.4.4 Consolidation of Manpower Plan

i. Human Resources will consolidate the overall manpower requirements for thefunction based on inputs from the Function Heads.

ii. Human Resources will consolidate all the top management manpowerrequirements based on inputs from the EMT.

iii. Human Resources will then consolidate all the plans across the Company, byanalyzing data on promotions, transfers and exits, and identify opportunitiesfor internal sourcing across functions.

iv. General Manager of Human Resources will identify positions that can besaudized in the current year‟s plan during the manpower consolidationplanning process.

v. The overall manpower plan will then be consolidated for the Company and thefinal drafted manpower plans for each function will be drawn up with allnecessary data.

3.4.5 Recruitment Plan

i. Human Resources will determine the joint recruitment plan based on thefunctional manpower plans.

ii. The recruitment manpower plan will specify the required number of nationalsand non-nationals, different sources of recruitment for different positions. Fore.g. numbers hired through campus recruitment / recruitment agencies /advertisements etc.

iii. The cost of recruitment will also be factored.

3.4.6 Manpower and Recruitment Budget

Human Resources will prepare the manpower and recruitment budgets. Thesewould include a cost assessment of the entire manpower plan, including cost ofsalary and benefits, overhead costs, recruitment costs (sourcing costs, travel for

interview costs etc), advertising costs and incidental costs like visa processing forexpatriates, relocation costs etc. These costs will be factored into each function‟sbudget under the manpower costs head and then in to the overall budget of theCompany.

3.4.7 Approval

There will be a three stage process of the manpower budget:

i. First recommendation will be from the respective Function Heads;

ii. Final recommendation from EMT for final approval by Board.








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iii. Once the manpower budget has been finalized, inputs will be provided to thesection within HR Department responsible for recruitment.

3.5 Sourcing

3.5.1 Internal Sourcing

i. In case of vacancies, first priority will be given to internal aspirants.Candidates from across the Company are allowed to apply for the vacancy.

ii. The responsibility to announce such vacancies will rest with the HumanResources Department.

iii. Intranet/notice boards will display the vacancies and positions available,

including the requisite qualifications and experience needed for thesepositions.

iv. Every applicant must seek the Department Manager‟s permission before theapplication is sent to the Human Resources Department.

3.5.2 External Sourcing

External sourcing could be done through any of the following avenues:

i. Recruitment advertisement;

ii. Recruitment agencies;

iii. Labor Office;

iv. Campus visits (University/technical colleges/Craft institutes);

v. Company website;

vi. Walk-in interviews; and

vii. Employee referrals.

3.6 Recruitment Process

The Company will reimburse the travel fare from to hometown and staying expensesfor those candidates called for any stage of the process as per Company policy.

3.6.1 Application Form

i. Each applicant for a vacant position has to fill up the employment applicationform.

ii. The applicant also needs to present supporting proof of the aboveinformation in the form of certificates, diplomas etc that have to be submittedin duplicate along with the application form.

iii. On joining, the employee needs to present the original certificates.

3.6.2 Identification

All national job applicants must possess a valid Saudi Arab National I.D. Card oran official Saudi Arab Government document proving citizenship of Saudi Arabia.








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3.6.3 Medical

All prospective employees prior to final selection with the Company will have toundergo a compulsory medical test. The medical test will be conducted at theCompany facilities or at a medical facility approved by the Company. The cost ofthis test will be borne by the Company.

3.6.4 Saudi Government Clearance

For certain jobs the final employment letter will be given only after approval of therequisite Government agencies (e.g. for Industrial Security Jobs).

3.6.5 Age Restrictions

i. The minimum age for any employee is 18 (eighteen Hijra) years.

ii. Minimum age limit for Non Saudis will be 21 Gregorian years.

iii. Saudi students below the age of 18 years maybe selected as summertrainees.

iv. Any exceptions to the age restrictions need to have prior approval of theGeneral Manager of Human Resources.

3.6.6 Education

i. All job applicants must possess the requisite educational qualifications for aparticular job.

ii. All exceptions require prior approval of the General Manager of Human

Resources.3.6.7 Offer of Employment

The Company extends offers of employment to selected candidates as per thevacancies available. The offer of employment is communicated to the candidateby a letter or a contract of employment, which details out the terms andconditions of employment applicable to the specific employee.

3.6.8 Joining Date

i. The joining date for any new employee is the first day at work as specified inthe employment contract.

ii. Any candidate who fails to join the organization within a month of the stipulated

date as per the offer letter, without informing the Human ResourcesDepartment and obtaining approvals will be deemed to have rejected his offerof employment with the Company.

3.6.9 Joining Procedure

i. A copy of the employment contract needs to be signed by the employee, as amark of acceptance of the terms and conditions of employment and will besubmitted to the HR Department.

ii. Every recruited candidate on joining will have to fill up other necessary formsfor detailed information.








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iii. In case the candidate is not residing in the country it will be the responsibilityof the Company to ensure that the visa and/or residential permit (as may beapplicable) are processed for the candidate.

iv. HR Department will also ensure that the candidate provides the requireddocuments (in original) specified as per the Saudi Laws.

v.Human Resources and Industrial Security Departments will use the detailedinformation form to provide the candidate with an Identity Card of theCompany. The employee should carry the identity card with him at all timesduring employment with the Company. Loss of identity card should bereported immediately to the Industrial Security Department.

3.6.10 Employee Orientation

i. The HR Department together with other functional areas will provide acomprehensive orientation program to the new employees. This is for newemployees to be aware of the Company policies, work culture, compensationand benefits, general safety regulations and the Company‟s business ethicsand conflict of interest policies.

ii. The immediate supervisor of the employee will participate in this exercise tobrief him about general working conditions and any other job relatedinformation.

3.7 Probationary Period

i. All newly hired employees need to undergo a 3-month (90-day) probationary period

(also referred to as the trial period) in order to have confirmed employment status.ii. The probation period will be clearly stated in the employment contract.

iii. The Company shall not place an employee on probation more than once throughouthis employment with the Company.

iv. Other than in case of emergencies the employee shall not be entitled to any kind ofleave during the period of probation.

v. The probationary period shall be included in calculating the employee‟s period ofcontinuous service.

vi. The Company can terminate the employee‟s employment contract during the periodof probation for any reason whatsoever. This termination can be with or withoutnotice.

vii. Immediate supervisor should submit a report two (2) weeks prior to the end of theprobation period, regarding the employee‟s performance. The same shall form thefoundation of the employee‟ confirmation with the Company.

3.8 Employment of Relatives

i. Saudi employees can refer relatives for vacant positions, but they need to satisfythe minimum educational/experience criteria required for the job.

ii. In no such case will a relative be employed under direct supervision of anotherrelative or vice versa.








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iii. All exceptions need to have prior approval of the General Manager of HumanResources.

3.9 Re-Employment of Former Employees

3.9.1 Objective

i. This policy ensures re-acquisition of critical talent required by the Company.

ii. It covers all former employees of the Company, who have not been otherwiseterminated for disciplinary reasons.

3.9.2 Conditions for Re-Employment

i. The overall performance review in the last period of employment must showgood performance.

ii. The candidate must not have been terminated “for cause”.

iii. A former employee will be employed only if a job opening exists and he isqualified for that position.

iv. The candidate has acquired critical competencies or useful experience.

3.10 Selection of Apprentices / Summer Students / Co-Op Trainees

As per the Saudi Labor and Workmen Law, the Company may select apprentices. The

Apprentices shall be selected at the discretion of the HR Department and in line withCompany approved plan.








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Chapter 4: Work Schedules and Leaves








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4. Work Schedule and Leaves

4.1 Work Schedule

4.1.1 Overview

It is the policy of the Company to operate work schedules suited to its operationalrequirements. Employees should be prepared to work overtime in response toemergencies or operational needs. The Company will always seek to reduceovertime working to the absolute minimum and to control its use strictly. It is also arequirement of the Company that its employees should be prepared to work on shiftwhere this is an operational requirement.

The Work Schedules policy covers a description of different work schedules, on call,

call in and start and end of work.4.1.2 Objective

The work schedules policy envisages establishing work conditions and timings to befollowed in the Company as standard procedures.

4.1.3 Responsibility

i. Human Resources Department: Is responsible for deciding the timings of theRegular, Shift and Ramadan schedules forthe Company.

ii. Concerned Department: Department Managers will be responsible forcoordinating and scheduling shifts for their

Departments. They will also consult theHuman Resources Department prior toeffecting any changes in the schedules. TheDepartment Managers will be responsible fordisseminating schedules and timings to theiremployees.

iii. Employee: It is the responsibility of the employee toreport punctually for all assigned schedules.

4.1.4 Policy Details

4.1.4.1 Regular Schedule

The regular day work schedule for employees assigned to the day scheduleis eight (8) hours per day, five (5) days a week; Saturday throughWednesday, and a total of forty hours of work per week followed by twodays off with pay. The start and end hours of daily work will be from 7:30

A.M to 4:00 P.M inclusive of a 30 minutes lunch break only as decided bythe company.

4.1.4.2 Shift Schedule

The standard working hours for all employees in the shift schedule is eight(8) hours a day, the number of days of work and rest will be as per the workcycle for operations. There will be three shifts for employees under the shift








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schedule. The work timings will be determined as per operationalrequirements and employees may be rotated amongst various shifts.

4.1.4.3 Ramadan Schedule

Working hours for all Muslim employees during the month of Ramadan willbe reduced to six (6) hours a day, the exact work timings will be announcedby the Human Resources Department. There will be no equivalentdecrease in the level of salary paid to Muslim employees and those Muslimemployees who are required to work for eight (8) hours will becompensated according to the overtime policy.

Non-Muslim employees will work as per the normal timings of the regularschedule and shift schedule during this period.

4.1.4.4 Rest days

4.1.4.4.1 For Employees on Regular Schedule

Employees under the regular schedule will have Thursday andFriday as the days of rest during the week.

4.1.4.4.2 For Employees on Shift Schedule

Employees under the rotating shift schedule are entitled to therest days as per the published shift schedules which shouldensure that the operations do not come to a standstill.

4.1.4.5 Overtime

Overtime is the time worked over the normal working hours as listed by thevarious schedules.

(For more details refer to chapter – 6 “Compensation and Benefits”).

4.1.4.6 On Call / Call In

To meet any emergencies and operational requirements, employees maybe put on-call and may be called-in to perform duties after their workinghours.

(For more details refer to chapter - 6 “Compensations and Benefits”).

4.2 Leaves

4.2.1 Overview

The policy covers different kinds of leaves an employee is entitled to associatedpolicies.

4.2.2 Objective

The policy endeavors to allow employees leave as per the standard rules andprocedures.








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4.2.3 Responsibility

It is the responsibility of the Human Resources Department to finalize different kinds ofleave schedules and assign authorities to authorize leaves.

Type of Leave Process Responsibility Approval Authority

Public Holidays Human Resources President and CEO

Annual Leave Supervisor Department Manager

Deferring of Annual Leave

Supervisor/Work LocationHuman Resources

Department Manager (10 workingdays or less), Function Head (formore than 10 working days)

Recall fromLeave

Department Manager Function Head

EmergencyLeave

DepartmentManager/Work LocationHuman Resources

Department Manager (3 Day)

Hajj Leave Department Manager Human Resources Manager

ExaminationLeave

Supervisor/Work LocationHuman Resources

Department Manager / HumanResources Manager

Sick Leave Company Physician Company Physician

Patient AccompanimentLeave

DepartmentManager/AuthorizedPhysician

Human Resources Manager

Unpaid LeaveDepartment Manager/Work Location HumanResources

Function Head, Manager of HumanResources (up to 10 days), CEOfor more than 10 days

OccupationalSickness Leave

Supervisor/AuthorizedPhysician

Department Manager, Head – Work Location Manager of HumanResources








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4.2.4 Policy Details

All leave applications will be submitted using the forms as per the specified leaveentitlement policies.

4.2.4.1 Public Holidays

Company will grant the following recognized official holidays to its employeeswith full pay:

i. Eid Al-Fitr: Five (5) working days.

ii. Eid Al-Adha: Five (5) working days.

iii. National Day: One (1) day.

In order to maintain operations throughout the year, employees whose shiftschedules require that they work during public holidays shall be paid overtimeas per the overtime policy.

4.2.4.2 Annual Leave

4.2.4.2.1 Qualification period

A new employee should have worked for nine (9) months from the

hiring date before being eligible to take annual leave. However,exception to this will need to be justified by Department Managerand approval by Function Head.

4.2.4.2.2 Annual leave accruement

1.83 working days per month on the basis of 12 months. After three(3) years of continues service, the annual leave is 2.08 workingdays per month on the basis of 12 months.

4.2.4.2.3 Scheduling of Leave

As far as possible annual leave periods need to be planned andagreed at the start of the financial year and in case an employeewishes to split his annual leave it should be communicated to theDepartment Manager. While every effort will be made toaccommodate employee‟s choice of leave period, the needs of theCompany take precedence and it may not always be possible togrant specific dates.








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4.2.4.2.4 Deferring Annual LeaveFor compelling business reasons or personal reasons, and withapproval of the Department Manager (or function Head for morethan 5 working days), an employee may defer up to 10 working daysof his leave entitlement of the current year to the following year;provided that it is exceptional and justified.

4.2.4.2.5 Days Off and Public Holidays, Within an Annual Leave Period

Since leave is granted on the basis of working days, regular days-offand public holidays falling within a period of annual leave are notincluded within the leave.

4.2.4.2.6 Late Return from Annual Leave

Upon return of the employee from leave, he will report to hisimmediate supervisor. If an employee, for unavoidable reasons, failsto return from his leave on time, he must notify his supervisorimmediately of his delay, of the reason thereof, and of the expecteddate of his return (in writing). This will require Function Headapproval.

An employee who fails to comply with the provisions of the aboveand/or to present proper justifications to support his claim is liable to

disciplinary action.

4.2.4.2.7 Early Return from Annual Leave

When the employee returns from leave earlier than the stipulatedperiod, he will be allowed to defer the remaining part of his annualleave to the following year on the condition that he obtains hisFunctional Head approval.

4.2.4.2.8 Recall from Annual Leave

Requesting an employee to interrupt his leave to resume duty shallbe done on the approval of the Function Head.

He shall be reimbursed for the transportation costs and any otheradditional costs he incurs during this recall.

4.2.4.2.9 Non-Saudi National Employees

The Company shall provide Non-Saudi national employees at thetime of their annual leave, one time per year an excursion round triptickets on Economy Class or as specified in his Employment








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Contract, or cash in lieu equivalent to the excursion airfare to theircountry of origin covering self and their eligible in-Kingdom residentdependents.

4.2.4.2.10 Payment, During Annual Leave

An employee proceeding on his annual leave will be paid minimumthree days prior to his departure.

i Regular salary; and

iiEntitled allowances for the total days of his leave, includinghousing allowance and days-off and public holidays falling within

the period.Upon payment of the employee‟s salary and allowances, the usualdeductions from his payment will be made.

No payment in lieu of annual leave shall be made to an employeeduring his employment; he will be paid for the balance of hisaccrued annual leave upon his termination.

4.2.4.2.11 Annual Leave Advance Salary Request

Any Advance Salary will be paid only if the vacation period endsafter the scheduled pay day of each month and leave period is notless than 10 working days.

Advance Salary Request is to be submitted to HR before the 18 th ofthe month.

4.2.4.2.12 Work, During Annual Leave

Employees are prohibited from working for any other party duringtheir annual leave (whether paid or unpaid).

4.2.4.2.13 Sickness, During Annual Leave

An employee who falls sick during his annual leave will not beeligible for sick leave unless the sickness requires him to beadmitted to a hospital, in such case the employee should inform hisimmediate supervisor and Company physician about such sickness.

The employee, upon return will have to produce documentary proofof the sickness and then will be granted sick leave. This needs to beapproved by the Company physician. The number of authorizeddays for which the employee had fallen sick will be considered assick leave.

4.2.4.3 Marriage Leave

Upon an employee‟s marriage, a paid leave for a period of five (5) workingdays will be granted. Employee should submit marriage certificate along withthe leave application form.








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4.2.4.4 Child Birth

When a child is born to an employee during the course of his employmentwith the Company, he shall be granted a paid leave for one (1) working day.Employee should take this leave within 30 days of the child birth and shouldsubmit birth certificate to avail this leave. A non Saudi national employee canavail this leave if he is on a marital status in the employment contract.

4.2.4.5 Relatives’ Death

In event of the death of an employee‟s spouse, ascendant(parent/grandparent) or descendant (children/grandchildren) the employeewill be entitled to paid leave for three (3) working days. Death certificateshould be submitted to avail this leave.

4.2.4.6 Emergency Leave

In emergency cases which cannot be postponed and require the immediatepresence of the employee, the employee may take a maximum of ten (10)working days during the calendar year. The maximum permissible leave isthree (3) working days for each emergency leave.

4.2.4.7 Hajj Leave

Once during employment with the Company, a Muslim employee will begranted a Hajj leave of five (5) working days with pay if operationrequirements permit.

Advance permission from an employee‟s Department Manager must bereceived at least one month in advance in order to avail of this leave.

4.2.4.8 Examination Leave

A Saudi employee who is pursuing his studies at an educational institute oruniversity and is required to sit for an examination shall be granted leavewith full pay for the actual number of days of the examination. An employeeshould not be re-appearing for examinations, it should be his first attemptand his enrolment in the institution should have prior approval from theCompany.

Furthermore, an employee shall have to produce the following documents toavail of this leave.

i Certificate of enrolment at an educational institution.

iiEvidence of attendance for all days of the examinations.

4.2.4.9 Unpaid Leave

On an annual basis employees are allowed unpaid leave up to a maximum ofthirty (30) calendar days. Unpaid leave is granted after an employee hasexhausted his annual leave entitlement.








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4.2.4.10 Sick Leave

Employees will be granted sick leave on an annual basis as follows:

i First thirty (30) days with full pay.

ii Next sixty (60) days with three fourth (3/4) pay.

iii Following sixty (60) days without pay.

4.2.4.11 Medical Escort Leave

When an employee is required to accompany his eligible dependent formedical treatment within or outside the Kingdom, an employee may begranted paid leave up to fifteen (15) working days per year.

(Please, Refer to the Health Care, Chapter 7, Page 49-50, 7.8.2)

4.2.4.12 Occupational Sickness Leave

Employees will be granted sick leave on an annual basis as follows:

i First six (6) months with full pay.

ii Next five (5) months with three fourth (3/4) pay.

See GOSI procedures-Industrial Accidents for more information.

4.2.4.13 Non-Industrial Sick Leave

Employees may be granted non-industrial sick leave only if approved by theCompany Physician following receipt of an appropriate medical certificatedetailing the illness and the need for absence from work.

4.2.4.14 Payment, During Sick Leave

i Up to a total of 30 Calendar days on full basic remuneration.

ii Up to a total of a further 60 Calendar days on 75% of full basicremuneration.

iii Up to a total of a further 60 Calendar days leave without pay.

Sick leave will be granted on submission of a medical report verified byCompany physician and approved by the Work Location Human Resources.If employee exhausts all sick leave days in a calendar year then his medical

status will be evaluated by the Company physician and will be treated inaccordance with Company and Labor regulations which will decide theemployability status of the employee.

4.2.4.15 Non-Industrial Illness

3.2.4.15.1 Notification of Illness

Employees who are unable to report to work due to illness, whichis not caused by or related to their employment, must advise theirdepartments within 48 hours and in due course forward acertificate to this effect from a medical center.








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4.2.4.16 Salary Continuation While on Occupational Sick Leave

In case of a work related injury (including injuries sustained while commutingto or from work) the employee is entitled to occupational leave at full pay fora maximum period of six (6) months followed by a maximum period of five(5) months with three fourth (3/4) pay. If after eleven (11) months, theemployee does not return to work, he will be required to undergo a medicalexamination to establish whether he is likely to be able to return to work. Ifmedical examination establishes that the employee cannot return to work,his services will be terminated with full end of service award andcompensation as per GOSI.








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Chapter 5: Salary Administration and Promotion








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5. Salary Administration and Promotion (In line with Compensation Administration Guidelines).

5.1 Overview

It is the Company's policy to administer the salaries & promotion of its employees in amanner which attracts, retains, and motivates the competent and motivated personnelrequired to manage and operate its business activities with maximum efficiency andminimum cost.

5.2 Objectives

i. Continually monitoring competitor salaries and benefits as well as significant changes inthe cost of living in each area of operation.

ii. Taking into account significant differences between jobs.

iii. Rewarding employees based on the level of their work performance and on theircontribution to the Company‟s success.

5.3 JOB EVALUATION

It is the intent of the Company management, through job evaluation, to maintainconsistency in the compensation in proportion to the requirements of jobs.

5.4 JOB DESCRIPTION

A job description is intended to distinguish a specific job from other jobs in the Company.It summarizes the purpose and scope of the job, outlines its duties and responsibilities,and describes the skills and qualifications required for satisfactory performance. The jobdescription is used to objectively evaluate jobs with a view to assigning them to theirrespective appropriate grades.

5.5 SALARY SCALE

The Salary scale comprises a number of grades that provide different salary levels wheredifferences between jobs are taken into account based on the Company Job EvaluationSystem.

5.6 SALARY AND GRADE CRITERIA UPON EMPLOYMENT

New employee's basic salary and grade are defined as per the Entry Level Table of theCompensation Administration Guidelines.

5.6.1 Maximum Pay:

No employee's basic salary shall exceed the maximum for his assigned salarygrade level.








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5.6.2 Minimum Salary:

A candidate, who has the minimum qualifications and experience required for the job as specified in the job description, shall be hired at the minimum of the graderange established for the position.

5.6.3 Hiring Rates Above The Minimum Of The Grade Range:

A candidate whose qualifications and years of experience exceed the minimumrequirements of the job, may be paid a starting salary exceeding the minimum ofthe grade range established for the position in proportion to his qualifications andyears of experience required for the job provided such qualifications and years of

experience are job related.

5.6.4 Transfer Within Same Department and Increase in Salary:

If an employee may be temporarily assigned the tasks of a job at the same or ahigher-grade level inside or outside the Dept. within the Company on a trial basisor temporarily replaces another employee, this is not a promotion justifying anincrease.

5.7 ANNUAL INCREASE

An annual increase may be granted to an employee in recognition of his job performanceduring the year. The percentage of such increase is based on the employee‟sperformance evaluation rating. However, an employee who has already reached themaximum of his job‟s salary range cannot receive an increase which will take him abovethis limit.

5.7.1 Considerations in Granting Annual Increase:

An annual increase is not automatically granted to an employee, but is governedby a specific policy. Nevertheless, every employee must be taken intoconsideration in preparing the annual increase budget. This does not mean thatevery employee is guaranteed a salary increase.

5.7.2 Annual Increase and Promotion Budget:

Every year the Company Management decides the annual increase and promotionbudget as a percentage of total basic salaries of employees based on AdvancedManagement recommendation. Annual increases and promotion increments arepart of the related approved budget according to approved Company policy.








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5.7.3 Annual Increase Percentage:

An employee‟s annual increase is between zero and ten percent (0-10%) of hiscurrent basic salary, subject to Advanced Management recommendation.

5.7.4 Effective Data of Annual Increase:

Annual increase for all employees (if granted) shall be effective as from 1st Aprilevery year.

5.7.5 Eligible Employees:

In order to be eligible, the employee must have adequate performance appraisalrating and must have not less than one year in the job. For new employees, theincrease shall be pro-rata based on the period of their service, provided they shallhave successfully completed the probationary period.

5.8 SALARY ADJUSTMENT

In exceptional cases where it is found that an employee‟s salary is underestimated basedon his job evaluation, the authorized official may adjust the employee‟s salary based upona recommendation by the employee‟s department reviewed by Human Resources and

Approved by EMT. The salary must be in agreement with the job evaluation, provided the

employee satisfies all the job requirements and has a performance appraisal rating notless than “Very Good.” Such salary adjustment shall be effect ive from the month followingthe date of approval thereof.

5.9 PAYMENT OF SALARIES

Salaries are paid to employees in Saudi Riyals during the last week of each Gregoriancalendar month. The salary shall be deposited in the employee‟s bank account, asdesignated in writing by him at local bank. If the payday is a holiday, the salary shall bepaid on the preceding working day.

5.9.1 Deductions:

Salaries of all employees are subject to certain deductions required byGovernment Regulation or authorized by the Employee. Such deductions mayinclude, but are not restricted to, authorized contributions to social insurance planby employees or repayment of personal debts to the Company.








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5.9.2 Pay Slips:

Every month on a date prior to the deposit of salaries as their respective accounts,all employees receive either manual or electronic pay slips showing details of theirmonthly payable amounts, deductions and net pay.

5.10 PROMOTION

Employees are promoted on the basis of merit, job performance and efficiency.

5.10.1 Basis for Promotion:

The basis for promotion is the employee‟s efficiency and excellence in jobperformance as evidenced by performance appraisal reports. The basic salaryincrease for a promotion will not exceed ten percent (10%) of employee‟s pre -promotion basic salary in any one job performance period, provided the salaryshall neither exceed the maximum salary limit nor shall it be less than the minimumsalary limit for the salary grade.

5.10.2 Conditions of Promotion to a Higher Position:

i. A vacancy exists within the approved organizational structure.ii. Employee shall have the required qualifications for the higher position

and shall be the best candidate.iii. Minimum of one year since the employee was last promoted.iv. Employee‟s last performance appraisal rating was not less than “Very Good”.v. Employee‟s immediate supervisor recommends promotion.vi. The EMT has the authority to approve the promotion.








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Chapter 6: Compensation and Benefits








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6 Compensations and Benefits

6.1 Overview

The policy covers all aspects of benefits, compensation, allowances, and reimbursementsprovided to employees and the rules that govern their applications.

6.2 Objective

The objective of this policy is to compensate employees and to maintain a certain level ofquality of life as it‟s the Policy of the Company to maintain an acceptable remunerationpackage system that will:

i Attract and retain suitable qualified employees.

ii Reflects the evaluated differences between levels of jobs.6.3 Responsibility

It is the responsibility of the Human Resources to recommend the appropriate benefit,allowances, and compensation and their interpretation.

6.4 Policy Details

6.4.1 Transportation Allowance

6.4.1.1 Purpose

The purpose of this allowance is to enable the employee to coverexpenses incurred in commuting to and from his place of work.

6.4.1.2 Details

Monthly Transportation allowance will be allocated as 10% of the monthlybasic salary of an employee, restricted by a minimum of SR. 500 and amaximum of SR. 1,500 except the below table:

Level Allowance

President & CEO10% of Basic Salary (No Limitation) or Car withmaximum value of SR. 550,000.00

VP / General Manager10% of Basic Salary (No Limitation) or Car withmaximum value of SR. 350,000.00

Managers10% of Basic Salary with maximum SR. 2000 or Caras per the Company Policy

6.4.1.3 Unpaid Company Transportation

Transportation allowance will not be paid in the following cases:

i. Employee is assigned a 24-hr Company vehicle.

ii. Transportation is provided by the Company.








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6.4.2 Industrial Security Allowance6.4.2.1 Purpose

The purpose of this allowance is to fulfill with the regulation of the HigherCommission of Industrial Security.

6.4.2.2 Details Any Saudi employee working in the Industrial Security Department shallbe eligible for an Industrial Security Allowance, which will be 15% of themonthly basic salary.

6.4.3 Shift Allowance

6.4.3.1 Purpose

The Company recognizes that certain work patterns, necessary foroperations are less convenient for employees as compared to a standardworking day.

6.4.3.2 DetailsEmployees working on a rotating shift pattern will be paid a fixed shiftallowance of 15% of the monthly basic salary.

6.4.4 Housing Allowance

6.4.4.1 PurposeTo assist employees in bearing the costs of accommodation, theCompany provides a housing allowance.

6.4.4.2 DetailsEmployees who are not provided with housing will be paid an annualhousing allowance equal to three (3) basic salaries except for board ofappointees are eligible for four (4) basic salaries.

i. This amount will be subject to a minimum of SR. 25,000 annually forunmarried employees and SR. 40,000 annually for marriedemployees.

6.4.4.3 Advance Housing Allowance

i. The employees who have fulfilled the Three (3) Months ProbationPeriod may apply for the (12) months advance housing allowance.

ii. Employee may make a written request before the deadline foradvance housing allowance at least one moth.

iii. Employee should provide a guarantor to the advance housingallowance, who is also an Advanced employee and not one guarantorto another employee.

iv. In case of termination of employment with the company and in theabsence of receivable from employee to cover the amount, theguarantor shall be the one to shoulder the remaining balance of theadvance housing allowance.








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v. The salary deduction of the advance housing allowance will takeeffect on the same payroll month when the advance housingallowance is granted.

vi. Employee who have availed the advance housing allowance and wishto make advance payment for the remaining installments to renew theadvance housing allowance, conditions are as follows:

Employee has the right to pay the remaining installments foradvance housing allowance at any time.

If advanced repayment is made, the employee is not eligible foranother advance housing allowance before completing (12) monthfrom the date of receiving the advance housing allowance.

6.4.5 Furniture Allowance

6.4.5.1 PurposeTo assist employees in bearing the costs of furniture, the Companyprovides a furniture allowance.

6.4.5.2 DetailsThe Company pays a one-time furniture allowance to Saudi employeeswho completed two (2) years continues service throughout theiremployment in the company. Furniture allowance differentials that mayresult from the change of an employee‟s job during the employee servicewith the company shall be paid. Employees who were previouslyemployed by the Company and returned to service are not eligible forfurniture allowance if they had been paid such allowance before they leftservice and it was paid in the full amount allowable for the employee. Inthe event that this allowance has not been fully depreciated beforeleaving service, the employee shall repay the Company the balance ofsaid allowance. The furniture allowance eligibility as per the below table:

Level Amount

President & CEO 90,000.00

VP / GM / Manager 75,000.00

Other Employee 50,000.006.4.5.3 Depreciation Period and Recovery of Furniture Allowance

The furniture allowance is depreciated in full after five (5) years from dateof receipt thereof. Furniture allowance shall be recovered from theemployee if the employee is resigned or terminated. Termination ofemployment because of the employee‟s death or total permanentdisability shall be excluded.

6.4.6 Emergency Response Team Allowance (ERT)

6.4.6.1 Purpose

This is necessary for the safety of the individual emergency responseteam member and for the protection of “Advanced” plant and property.








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6.4.6.2 DetailsThe Company pays all employees in the emergency response team aspecial monthly allowance of SR. 500 as per the approved policy ofemergency response team eligibility, qualification, membership andincentive.

6.4.7 Employment Allowance

6.4.7.1 Purpose

To assist Saudi employees in settling into a new job location at thecommencement of employment after completing the probationary period.

6.4.7.2 Details

An employment allowance of one basic Salary with a minimum SR. 5,000and a maximum SR. 10,000 is to be paid to all newly appointed Saudiemployees. However, those who were re-hired shall not be entitled toreceive this allowance again.

6.4.8 Relocation Allowance

6.4.8.1 Purpose

The primary objective of this policy is:

i. To compensate employees for a change or interruption in lifestyle dueto relocating from one work location to another on a permanent basis.

ii. To encourage employees to relocate and maintain an even distribution

of manpower across different work locations.6.4.8.2 Details

The Company pays a transferee a relocation allowance of two month basicsalary with minimum of five thousand Saudi Riyals (SR. 5,000) to helpthem defray the moving and travel expenses associated with his transferfrom one area to another.

6.4.9 Overtime

6.4.9.1 Purpose

To compensate for the additional time worked beyond eight (8) hours perday to meet operational requirements, Company shall pay an overtime

allowance.

6.4.9.2 Eligibility

i. All employees are financially compensated for overtime.

ii. Managers and above are not eligible for overtime and therefor shall becompensated with additional five (5) working days which will be addedto their annual vacation.








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6.4.9.3 Details

i. Upon work requirements and with the prior approval of the FunctionalHead, if an employee is required to work overtime in excess of theirnormal daily working hours, an overtime allowance is paid.

ii. Overtime worked on regular workdays will be paid at one and a halftimes the employee‟s normal time.

iii. Overtime worked on employee‟s rest days and public holidays will bepaid at double the employee‟s normal time.

6.4.9.4 Standby Duty

Some jobs require that an employee be on standby duty in his residenceor in the area of the city where he works to respond to any emergencycalls. Compensation for standby duty for all levels of employees (exceptincumbents of Executive Management Team) is paid as follows:

6.4.9.4.1 Weekly Working Days

Compensation is equivalent to two (2) normal working hours per24 hours on standby duty.

6.4.9.4.2 Official Holidays and Weekends (Weekly Rest Day)

Compensation is equivalent to four (4) normal working hours per24 hours on standby duty, whether the employee was called ornot.

6.4.9.5 Call to Work

If the employee is called while on standby duty, actual hours worked arecounted on the following basis.

i. After official working hours during weekdays – One hour is counted asone and a half hours

ii. Official holidays and weekends (weekly rest days) – One hour iscounted as two hours.

6.4.9.6 Overtime Pay Calculation

Overtime pay is calculated according to the following formula:

i. Normal Working Days:

Overtime Pay (Time and a Half) = (1.5 x Monthly Basic Salary x ActualHours Worked)/240








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ii. Weekly Rest Days and Official Holidays (Double Time):Overtime Pay = (2 x Monthly Basic Salary x Actual Hours Worked ) /240

6.4.9.7 Overtime during periodic maintenance and construction period forManager and above

Incumbents of Managers and above who are authorized to work overtimeduring periodic maintenance and construction period will be compensatedon the same basis as other employees, provided that such compensationshall not exceed 25% of the employee‟s monthly basic salary.

6.4.10 Continuous Service Award6.4.10.1 Purpose

Company endeavors to promote loyalty towards the organization andappreciate employees who contribute in the form of sustainedperformance and continuous service.

6.4.10.2 Details

i. Service award is based on the length of service.

ii. For the first five years of continuous service an employee is given anaward/gift equivalent to SR. 2,500 this amount allocated for the gift isincreased by SR. 2,500 for every five-year period of continuous serviceput in by the employee.

6.4.11 Medical Care Related Services

(Refer to Chapter 7 and Medical Insurance Policy and Other Medical Services)

6.4.12 Business Assignments

6.4.12.1 Overview

i. Any official work (which may include, but is not restricted tocommercial visits, sales visits, training, visits to vendor locations,project execution) at a location that is away from the regular work

location of the employee.ii. The business assignment policy specifically relates to the

reimbursement provided to employees when they have to travel onbusiness related issues.

6.4.12.2 Purpose

The primary objective of this policy is:

i. To reimburse employees fairly for expenses incurred during travel.

ii. To encourage people to travel as and when a business need arises.








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6.4.12.3 Details

6.4.12.3.1 Approval Authority

Approval Authority for Business Trips is as per the Approved Authority Schedule.

6.4.12.3.2 In Kingdom

i. For short deputation (up to 150 km) assignment trips withinthe area that do not require an overnight stay, such as fromJubail to Dammam the Company pays an employee anallowance according to the following:

a. SR. 250 per day when using own car.b. SR.100 per day when using a Company car (provided

with fuel).

ii. If the assignment requires an overnight stay, the In-Kingdom per diem policy will be applicable.

iii. For deputation (more than 150 km) assignment trip, thefollowing chart indicates the various provisions for theemployee:

LevelTicket

ClassPer Diem

President & CEO First SR. 1,500

VP / General Manager First SR. 1,250

Manager Business SR. 1,000

Other Employee Economy SR. 750

iv. 20% of per diem will be deducted if transportation isprovided.

v. 40% of per diem will be deducted if accommodation isprovided.

vi. 40% of per diem will be deducted if food is provided.

vii. Airport transfers is provided by the Company orreimbursed at SR. 300 between Jubail and King Fahad

Airport for round trip.

viii. Airport transfer at the destination point between airportand hotel/ business assignment location is reimbursableat actual with maximum reimbursable amount SR. 200 forround trip. Supporting invoices are to be submitted.








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ix. In case of air ticket class upgrade in kingdom, VPapproval is required.

x. The maximum reimbursable accommodation withsupporting receipts is as follows for the followingpositions:

Leve l Accommodat ion

Managers and Above

Reimbursable at Actual Cost.

Other Employee

The reimbursable expenses should notexceed daily per diem unless accompanying

department manager level or above.xi. For period beyond 30 days, per diem is given to

employees for the first 30 days (including travel day(s)) asper the in-kingdom per diem schedule. After the initialperiod of 30 days, a monthly allowance of 100% of thebasic salary of the employee subject to minimum of SR.4,000 and maximum of SR. 8,000 is paid. This amount isin addition to provision of furnished accommodation to theemployee, as per HR standards.

6.4.12.3.3 Out of Kingdom

i. For Period Between 1 to 60 Days:

Level Ticket Class Per Diem

President & CEO First SR. 2,500

VP / General Manager First SR. 2,000

Manager Business SR. 1,500

Other Employee Economy SR. 1,200

ii. 20% of per diem will be deducted if transportation is provided.iii. 40% of per diem will be deducted if accommodation is

provided.iv. 40% of per diem will be deducted if food is provided.

v. Airport transfers is provided by the Company orreimbursed at SR. 300 between Jubail and King Fahad

Airport for round trip.vi. Airport transfer at the destination airport is reimbursable

at actual for positions General Manager and above, whilefor Managers and below, the maximum reimbursableamount is SR. 500 for round trip (to and from the airport).

Applicable supporting invoices are to be submitted.








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vii. In case of air ticket class upgrade for GCC, VP approvalis required, all tickets class upgrade outside GCCrequired President & CEO approval

viii. The maximum reimbursable accommodation is as followsfor the following positions:

Leve l Accommodat ion

Managers and Above

Reimbursable at Actual Cost.

Other Employee

The reimbursable expenses should not

exceed daily per diem unless accompanyingdepartment manager level or above.

ix. Other Charges: actual expenses such as visa charges &airport tax are reimbursed at actual cost. Applicablesupporting invoices are to be submitted.

x. For period beyond 60 days, per diem is given for the first60 days (including travel day(s)) as per out-kingdom perdiem schedule. After the initial period of 60 days, amonthly allowance of 100% of the basic salary of theemployee is paid subject to a minimum of USD. 3,000 anda maximum of USD. 5,000. This amount is in addition to

provision of furnished accommodation including basicutilities (water, electricity and heating gas) to theemployee, as per HR standards.

6.4.12.3.4 Travel Days

i. Travel days will be considered as part of business/trainingtrip and will be paid with per diem. The employees will notbe reimbursed during working days off against the traveldays failing on weekends and public holidays.

ii. The following table determines the travel days withrespect to the distance being traveled for the trip:








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From / To Jubail

Eastern Province in KSA -

Central Province in KSA ½ a day

West, North and South in KSA 1 day

GCC 1 day

Iraq, Jordan, Syria, Turkey, Yemen, Iran

Singapore, Hong Kong, Philippines, Pakistan,India, Malaysia, Indonesia and Thailand

Europe

North and Central African Countries

2 days

South Africa, Botswana, Namibia, Mozambique

Japan, Korea, China, Taiwan, Australia, NewZealand

North And South America

4 days

6.4.13 Education of Children

6.4.13.1 Purpose

This policy ensures that Non-Saudi National employees on family statuscontract are provided with educational assistance for their children in the

Kingdom in order for the children‟s employee to continue their educationas in their home country if possible.

6.4.13.2 Details

Non-Saudi National employees will be reimbursed for the educationalcost for their dependent children with a Maximum of four (4) children attheir embassy schools, or equivalent type of educational institutions ifnot found; for ages (5) up to (18) years old. The four children educationcost will be covered with a maximum reimbursement for each child not toexceed 10% of the annual basic salary. All reimbursement is subject tothe following:

i. Prior Company approval should be obtained.

ii. Employee should obtain invoices from the school and submit it tothe Company for reimbursement.

iii. The children are physically resident in the Kingdom of Saudi Arabia(Studying at Schools in KSA).

iv. Schooling fees does not cover Nursery or Kindergarten levels andlevels above high school.

v. The cost coverage will include school tuition, transportation, andschool books.








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vi. Eligible employees are required to submit supportive documents inwitness of children age, and school registration.

6.4.14 Medical Benefits

(Refer to Chapter 7 and Medical Insurance Policy and Other Medical Services)








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Chapter 7: Health Care








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7. Health Care

7.1 Overview

The policy covers all medical issues including referrals, medical escort and industrialsickness/injuries.

7.2 Objective

It is the policy of the Company to provide competent and adequate free medical care foremployees and their eligible dependents within reasonable costs.

7.3 Responsibility

i Company Physician: Responsible for recommending, establishing andmaintaining a suitable level of medical care foremployees and their eligible dependents and acompetent industrial hygiene service, annualcheckup once every year, either directly or incollaboration with other agencies; or whenever itis required.

ii Human Resources Department: Responsible, in conjunction with the CompanyPhysician when appropriate, for:

Making recommendations to the Top

Management about levels of medical careand benefits.

Administering and managing directlypersonnel aspects of medical procedures andsystems related to the health care policy.

Giving advice and assistance to LineManagers and Supervisors on thesepersonnel aspects.

iii Finance & Accounting: Administering Health Insurance Policy and otherrelated claims (Whenever is applicable).

7.4 Details

Advanced provides healthcare for its Saudi employees and their eligible dependants, aswell as for its Non-Saudi employees and their eligible dependents residing with them andhave regular legal residence authorization (Iqama) according to the labor contract at themedical facilities specified or agreed to by the company.








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7.5 Medical Treatment Expenses

7.5.1 Rules for medical expenses reimbursement:

i. Advanced will shoulder 100% of the medical expenses incurred by theemployee or his dependants and provided by the company assigned medicalfacilities. In case the employee wishes to seek medical treatment outside thenetwork medical facilities (non-assigned), Advanced will bear 80% of themedical treatment expenses and 100% of the cost of medications, provided thatthe employee must submit medical claims including all itemized bills andmedical prescriptions acceptable to the Advanced.

ii. Medical treatment or surgery operations performed outside the Kingdom of

Saudi Arabia during official duty missions or vacations require Advancedmanagement prior approval, unless emergency medical treatments.

7.5.2 Rules for medical treatment of Saudi and Non-Saudi employee’s children

i. Saudi‟s children: The company will continue to provide the health care coveragefor Saudi‟s male children till they are employed or they reach the age of 25 yearswhichever occurs first. The Company will continue to provide health care coveragefor females till they get married or employed whichever is first.

ii. Non-Saudi‟s Children: The Company will cover only four (4) children not exceedingthe age of 18 years, provided that they legally reside in K.S.A.

7.5.3 Rules for medical care for Saudi employee’s parents

i. The employee should provide support documents issued by the court of religionlocated in the same city where the employee works.

7.5.4 Expenses covered under Medical Care Program

i. Wheel chair for cases of paralysis and fractures.

ii. Crutches for cases of paralysis and fractures.

iii. Leg varicose socks.

iv. Medical brace for back pain, spinal deformities and Disk.

v. Neck disk collar.

vi. Diabetes Mellitus, sphygmomanometer, nebulizers.

7.6 Medical Treatment of Emergency Cases

i In emergency cases involving immediate medical care such as heart attacks, theemployee and his dependents may see the nearest doctor or hospital. The companyshall pay the costs of treatment and medications subject to submission of requiredsupportive documents such as prescriptions and bills after duly approved by thecompany's doctor.








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ii Medical care coverage shall be extended for the deceased Saudi employee‟sdependants for a period of one year effective as of the date of the death.

7.7 Medical Referral to Specialized Hospital

In case that the patient condition requires specialized medical treatment not provided bythe company assigned facilities, the patient may be referred for admission to a specializedhospital in the Kingdom at company's account.

7.7.1 Rules for Out of Kingdom Medical Treatment

The Company will carry treatment outside K.S.A. for employee/dependant, thisneeds a Medical Report from assigned medical facility showing that the illness ortreatment cannot be treated in K.S.A. and the treatment procedure is not available

as well. The Medical Report should include the following:

i Type of Disease/Sickness

ii Reasons of inability of in-Kingdom treatment.

iii Suggested country where the treatment will take place.

iv The necessity of companion with the Patient.

v Expected period/duration of treatment.

vi Any other necessary information the company may ask for to take decision.

7.7.2 Approval of Out of Kingdom Medical Treatment

Medical treatment outside the Kingdom requires company's prior approval.

7.8 Services related to healthcare in the event of referral to hospitals inside or outsidethe Kingdom:

7.8.1 Transportation

The Company will ensure the transportation in the employee ticket class eligibility ifthe treatment place was outside the geographical area of the working place, aswell as for the companion according to recommendation of a Medical Report, thecompany will consider the transportation class the situation of the patient sickness.This needs the pre-approval from the authorized person and decision issuance inthis regard. The supplementary services that need referral treatment inside and

outside K.S.A.

7.8.2 Room, Board and Transportation inside the city of the treatment for thePatient and his Companion:

The Company will cover the actual expenses for Room, Board and Transportationfor both the Patient and his Companion; if it is proven that his case requires acompanion as follows:

i. In-Kingdom: The Company shall pay SR 750 to the patient and his companion.In case the patient is hospitalized, SR 375 shall be payable for his companion.








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ii. Out-of-Kingdom: The Company shall pay SR 1000 to the patient and hiscompanion. In case the patient is hospitalized, SR 500 shall be payable for hiscompanion.

7.9 Exclusions from the Medical Care Program

7.9.1 This policy does not cover claims arising directly or indirectly from orconsequent upon or in regard to:

i. Self-inflicted injury whilst sane or insane.

ii. Impairment of an assured person‟s intellectual faculties by the abuse of

stimulants or depressants or by the illegal use of any solid, liquid or gaseous

substance.iii. Cosmetics surgery or treatment unless necessitated by an accidental bodily

injury, not otherwise excluded, occurring whilst the assured persons is covered

under this policy.

iv. General health examinations, vaccinations (except those which declared by the

Ministry of Health) and/or prophylactics which are not for the treatment of an

ailment.

v. Treatment of any condition as a result of alcohol or drug abuse.

vi. Thermal cure, rest cure, sanitaria or custodial care.

vii. Any ailment/injury arising as a direct or indirect result of an assured person‟s

occupation.

viii. The treatment of any venereal or sexually –transmitted disease.ix. HIV (Human Immune Deficiency Virus) and/or HIV related ailment including

AIDS (Acquired Immune Deficiency Syndrome) and/or any mutant derivative or

variation caused.

x. All dental related services or treatment not occasioned by violent external

means Dental charges relating to prosthesis and false teeth are excluded

howsoever caused.

xi. Sight and hearing tests and provision of visual or hearing aids unless

necessitated by an ailment (except which mentioned in optical & hearing aids

cover as per Council of Cooperative Health Insurance -(CCHI)- limit)

xii. Transportation other than by local licensed ambulance service.xiii. Hair fall, wigs and/or toupee.

xiv. Birth control devices, pills and/or baby supplies.

xv. Non acute psychiatric treatment or nervous or mental disorder.

xvi. Allergy testing of any nature but if they are described by doctor and part of the

treatment of illness covered.

xvii. Any treatment connected with fertility and/or sterility and/or impotence and/or

contraception and/or hormone treatment.








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xviii. Any hospital residential or similar charges incurred by the companion of theassured person suffering the ailment (except which mentioned in basic

schedule).

7.9.2 This policy does not cover the health benefits in case of claims arising from:

i. War, invasion, act of foreign enemy, hostilities (whether war be declared or

not), civil war, rebellion, revolution, insurrection or overthrowing of government

by force or military or usurped power.

ii. Ionizing radiation‟s by radio activity from any nuclear fuel or from any nuclear

waste from the combustion of nuclear fuel, the radioactive, toxic, explosive or

other hazardous properties of any explosive nuclear or nuclear component

thereof.

7.9.3 The assured person engaging in or taking part in:

i. Armed forces or police force service or operation.

ii. Winter sports, skin diving involving the aid of breathing apparatus, rock

climbing or mountaineering normally involving the use of ropes or guide,

potholing hunting on horseback or diving or riding in any kind of race,

parachuting or hang-gliding, water skiing, jet skiing or undertaking any other

abnormally hazardous pursuit.

iii. Driving or riding on motor cycles or motor scooters other than mopeds.

iv. Air or sea travel except as passenger.

v. Deliberate exposure to exceptional danger (except in an attempt to save

human life).vi. Riots, strikes, terrorism, or any criminal act.

7.9.4 Medical expenses incurred outside the Kingdom of Saudi Arabia which

mentioned in geographical limits.

7.10 Rehabilitation of disabled children:

The Company shoulders 80% of the costs incurred by the employee for the rehabilitationof his disabled children including costs of transportations in accordance with the followingcontrols:

i. Rehabilitation shall be carried out in the Kingdom in a center acceptable to theCompany.

ii. Lack of free rehabilitation facilities.

iii. The employee is not receiving any government support or support from any otherentity.

iv. A medical report acceptable to the company indicating the type of disability and therequired rehabilitation.

v. Approval of the competent authority.








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7.11 Industrial Accident / Occupational SicknessWhen an employee suffers an industrial accident or an occupational Sickness, theGeneral Organization for Social Insurance (GOSI) will apply.








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Chapter 8: End of Service










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the contract period provided the employee isgiven termination notice one month before.

vi. Due to layoff: Owing to business exigencies, employees‟services are liable to be laid off.

vii. Due to Retirement: On attaining the retirement age of sixty (60) years(Hijra), however; for exceptional cases, theapproval of the President and CEO is required.

viii. Breach of Employment Contract: An employee is liable to be terminated when hebreaches a clause of the employment contract.

ix. Government Directives: An employee can be terminated in accordance

with Government directives; end of service will bepaid as per the said directive or the Companypolicies as applicable.

x. Force Majeure: Employee services are liable to be terminateddue to a Force Majeure, in such cases end ofservice benefits will be paid to the concernedemployee.

xi. Due to Employee Death: The employee services will be terminated and hiscompensations will be valued at SR. 200,000 anddistributed according to the law. Wagesentitlement will be calculated in full at the end of

the month, regardless of when the death occurredduring the month.

8.4.2 Notice Period

With exception to termination for cause listed in the schedule of Penalties andRewards, both Company and employee are required to submit a written notice onemonth prior to the effective date of separation.

8.4.3 Payment in Lieu of Notice PeriodIf either party fails to submit such a notice in due time, the Company or employeeas the case may be will have to compensate the other party for the requisite periodusing the employee‟s basic salary as the basis for calculation. 30-day notice periodon termination of contract, unless otherwise specified in the employment contract.

The company reserves the right to waive this notice period in lieu of payment ofsuch notice.

8.4.4 End of Service Award

For details refer to Sec 8.4.9.2.3

8.4.5 Termination Proceedings

The HR Manager will be responsible for managing the termination process. Withrespect to termination, the initiating, reviewing and authorizing roles of some of thekey types of terminations are given in the following table:








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Type of termination Process Responsibility Approval Authority

ResignationEmployee/ ImmediateSupervisor / DepartmentManager

Function Head

Due to non competenceImmediate Supervisor /Department Manager/Function Head

HR Manager

During Probation PeriodImmediate Supervisor /Department Manager/Function Head

HR Manager

Due to medical unfitnessImmediate Supervisor /

Approved medical authority/ Company Physician

GM, HR and EMT

Non renewal ofemployment contract

Immediate Supervisor

Next higher authority (notless than DepartmentManager) and HRManager

Due to layoffFunction Head and HRManager / GM and HR

President and CEO

Due to disciplinary actionDepartment Manager,

Function Head and HRGM, HR and EMT

Due to retirementHR Manager / DepartmentManager / Function Head

GM, HR and EMT

In case of resignation, the Immediate Superior in consultation with the next higherlevel must identify in writing the acceptance of resignation as well as identifyingboth last working day and last day on payroll.

8.4.6 Exit Interview

An employee, whose service is terminated due to resignation and non-renewal ofemployment contract on the part of the employee, will have an exit interview withthe Exit Interview (Ad-Hoc) Committee to be formed by the GM & HR Departments,

if required.The objective of the exit interview is to consolidate the employee feedback oncircumstances leading to leaving the work.

8.4.7 Clearances

The Human Resources function will issue the employee whose service is beingterminated with a final clearance form. The employee needs to obtain “no dues”certification from the concerned departments in order to qualify for final paymentand service certificate. The Employee is eligible for the following:








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Type ofTermination

LeaveEncashment

ServiceCertificate

Re-employmentEligibility

End of ServiceBenefits

Resignation Yes Yes Yes Yes

Noncompetence

Yes YesYes (on acquisition

of additionalqualifications)

Yes

Medicalunfitness

Yes YesDepending on

Medical reportsYes

Due to nonrenewal ofemploymentcontract

Yes Yes Yes Yes

Due todisciplinaryaction

Yes Yes No

Yes (except fortermination forcause as perthe Labor Law)

Due to layoff Yes Yes Yes Yes

Retirement Yes Yes Yes Yes

8.4.8 Farewell Party

For employees who separate on conditions other than scheduled offence, therespective departments may organize a farewell party and a memento/gift will begiven to the concerned employee.

8.4.9 End of Service Entitlement

8.4.9.1 Purpose

The purpose of this policy is to detail the employee entitlements when hisservice with the Company is terminated.

8.4.9.2 Details

Company will pay End of Service Benefit (ESB) within the guidelines asper the Company Policy as follow:

8.4.9.2.1 Eligibility

Employee will only be eligible for this benefit if he resigned orhis contract with the Company terminated without a cause.

Service period is the period from the date that the employee joined the Company as mentioned in the employment contract.







8.4.9.2.2 ESB Base Pay

i Employees Directly Hired by the Company:

One month pay of (Basic Salary + Housing Allowance +Transportation Allowance).

However the ESB calculation for Transportation Allowanceshould not exceed (GM‟s SR. 4,500, VP‟s SR. 5,000, CEO andPresident SR. 6,000).

In all cases above, Basic Salary means the Basic Salary of theemployee at the last day on payroll.

8.4.9.2.3 ESB Calculation

Employees of the company will be entitled to an awardwhen their services end and will be calculated as follows:

Saudi Employees

One month's salary for each of the first five years of service.

The salary of two months for each year of service followingthe first five years.

Non-Saudi Employees

A half month's (15 days) salary for each of the first threeyears.

One month's salary for each year of service following thefirst three years.

Documents

human Resources Policy Manual 12 June 2011-Approved and Final