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REVISION HISTORY

REV. NO. 1 2 3

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Amendments to the non executive grade Item 5.1 - Reimbursement Examination Fees per course Delete item no 5.0 Medical Exclusion (i) exclusion on medical check-up or test not specifically required by the company, all preventive medicine, such as vaccinations and vitamins except when these are prescribe as curative medication Item 4.1 Executive Medical Check-up Change Grades from UE4 to UE5 All confirmed employees (family excluded) from Grades UT1 to UT6, UE5 to UE9 and UP2 to UP7, will undergo a comprehensive medical check-up (including ECG, MRI and treadmill tests) by the Company's Panel of Doctors or referred specialists

14/05/2011 14/05/2011 14/05/2011

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14/05/2011

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Annual Leave - Delete item 1.3 27/9/2012 The eligibility will be based on number of days earned in one (1) particular Calendar year. For example :Yearly entitlement 20 days Todays date 15 February yyyy (total nos of days from Jan-15 Feb yy = 46 days) Earned eligibility to date = 46/365 x 20 = 2.5 days

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Item 9 subsection (iii) Disciplinary Action In the event where three (3) warning letters for a similar offence have been issued within a period of twelve (12) months, the employee shall be subject to an inquiry to determine further disciplinary action. Change to In the event where warning letter/s have been issued within a period of twelve (12) months, the employee may be subject to an inquiry to determine further disciplinary action. (v)

27/9/2012

REV. NO. 7

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Act of Misconduct Appendix 2 No. 71 - Acting in violence with competition laws, including agreeing with competitors on prices or any other terms & conditions to customers, allocating territories or customers, rigging bids. Item 21 Site Allowance: Current Rates : Grade UE6/UP3 above RM500 UE4/UP1/UE5/UP2 RM400 UE1 to UE3/UP2 RM300 Non Exec RM250 New Rates
Grade UE6 /UP3 above UE1-UE5/UP1-UP2 Non-Exec <50km >50km RM500 RM700 RM400 RM600 RM300 RM400

27/9/2012

28

1/10/2012

52

New Introduction : Item 31 : Children Excellence Award


Awards UPSR 5As RM200 PMR 7As RM300 SPM 7As RM500 STPM 3 Principal As RM600

2012 Exam Result

DOCUMENT CONTROL
(v)

Opus Group Berhads Human Resource Department will manage the updating of all changes in the hardcopy and electronic media.

TABLE OF CONTENTS
Para Subject Page

INTRODUCTION 1.0 2.0 General Definitions . . 1 1

PRINCIPAL TERMS AND CONDITIONS 1.0 2.0 3.0 4.0 5.0 6.0 Appointment Probation And Confirmation Medical Examination Performance Review Transfer Working Days And Hours . . . . . . 3 3 3 4 4 4

SALARY ADMINISTRATIONS 1.0 2.0 3.0 4.0 5.0 6.0 Salary Payment Annual Increment Bonus Claims Changes in Personal Details Income Tax . . . . . . 5 5 5 6 6 6

GENERAL BENEFITS 1.0 2.0 3.0 4.0 Rest Days And Public Holidays EPF Insurance SOCSO . . . . (v) 7 7 7 9

5.0 6.0 7.0

Uniform Employee Training Employee Welfare

. . .

9 9 9

LEAVE 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 Annual Leave Half-Day Leave Medical Leave Industrial Accident Leave Prolonged Medical Leave Medical Boarding Out Marriage Leave Maternity Leave Paternity Leave Compassionate Leave Special Leave Haj Leave Study & Examination Leave Unpaid Leave Leave Application . . . . . . . . . . . . . . . 10 11 11 12 12 13 13 13 13 13 13 14 14 14 14

MEDICAL / HOSPITALIZATION BENEFITS 1.0 2.0 3.0 4.0 5.0 Outpatient General Treatment Medical Treatment Book Hospitalization Benefits Physical Examination Exclusions . . . . . 15 15 16 16 17

COMPANY LOANS 1.0 2.0 Computer Loan Study Loan . . (v) 18 18

3.0 4.0

Personal Club Membership Loan Terms & Conditions of Loans

. .

18 18

CLAIMS AND ALLOWANCES 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 21.0 22.0 Interest-Subsidy on Car Loans Corporate Club Membership Personal Club Membership . . . . 19 19 19 20 20 20 21 21 22 23 23 24 25 25 26 27 27 27 27 28 28 29

Reimbursement of Monthly Club Subscription

Reimbursement of Examination Fee . Reimbursement on Professional Association Membership Subscription . Corporate Credit Card Entertainment Allowance Subsistence Allowance . . .

Subsistence Allowance for Short-term Overseas Duties . Accommodation Allowance . .

Advances for Outstation/Overseas Travel

Reimbursement of Fee for International Passport . Transportation Allowance Winter Clothing Allowance Laundry Allowance Laundry Expenses Telephone Calls Overtime Overtime Travel Costs Site Allowance . . . . . . . ....

Project Maintenance Allowance for NMM Project . (v)

23.0 24.0 25.0 26.0 27.0 28.0 29.0 30.0 31.0

Standby Allowance Parking Fee

. . . .

29 29 29 31 32 40 42 49 52

Relocation/Transfer Within West Malaysia Company Car /Driver and Petrol Allowance Company Vehicle Scheme Policy On Provision of Handphone Overseas Allowance

. . . .

Sabah, Sarawak & Labuan Allowance Chidren Excellence Award

PERFORMANCE MANAGEMENT SYSTEM (PMS) 1.0 2.0 General Working Policies of PMS . . 53 53

CODE OF CONDUCT AND DISCIPLINE 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Foreword to Employees Definitions Professional Conduct Attendance / Punctuality Appearance Alcohol And Drug Abuse Code of Ethics Sexual Harassment Disciplinary Action . . . . . . . . . 54 54 55 55 55 56 57 60 62

APPENDIX 1 Declaration Form Conflict of Interests NOTES APPENDIX 2 Acts of misconduct

(v)

(v)

INTRODUCTION
1.0 GENERAL The Employees Handbook sets out the terms and conditions of service governing all Employees of the Company, its subsidiaries and associate companies. This handbook must be returned to the respective Human Resource Department upon leaving the service of the Company. The Company reserves the right to amend, delete or augment any terms and conditions or parts thereof, of the Employees Handbook as and when necessary. These terms and conditions shall, where applicable, be subjected to the provisions of the Employment Act, 1955 and any other relevant Government legislations and their amendments. As such where there is any difference in respect of the meaning and interpretation of any matter in this Handbook, further reference should be made to the Human Resources Department for clarification. The contents of this Handbook are to be kept strictly confidential and are intended for reference between the Company and the employees. This Handbook is primarily meant for the use of all permanent employees of the Opus Group Berhad. The Management may, at its sole discretion, extend in whole or part the benefits related to this Handbook to fixed term contract employees. The terms and conditions of service will not apply to casual or freelance employees of the Company. 2.0 DEFINITIONS The following definitions shall apply unless otherwise expressly stated in this Handbook. i. " The Company " means Opus Group Berhad, its subsidiaries and associate companies where Opus Group Berhad manages the Human Resource (HR) and payroll. " Subsidiary Companies " means companies where Opus Group Berhad has more than 50% share holding and manages the HR and payroll. Associate Companies means companies where Opus Group Berhad has 50% or less share holding and manages the HR and payroll. " The Board of Directors " means the Directors of Opus Group Berhad. " Confirmed Employee " means permanent employees who have successfully completed the probationary period and are confirmed in the Company's service. " Children " Means employees children, natural, legally adopted or step children, who are dependants/unmarried and below the age of 18 or up to age 23 for children who are pursuing full tertiary education (up to first degree)
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ii. iii. iv. v.

vi.

Updated: 31 July 2008

and disabled children (including mentally challenged children) who are not gainfully employed, irrespective of age. For stepchildren, they must be living under the guardianship of the employee. Details of the dependent children must be notified to the Company. vii. viii. ix. x. xi. xii. xiii. xiv. xv. xvi. xvii. " Spouse " means an employee's legal wife or husband. " Family " means one legal spouse and children. " Relatives " means employees' parents, brothers, sisters, grandparents and parents-in-law. " Outstation " shall refer to locations or destinations which are at least 50 km away from the normal place of work. " Executive Employees " shall refer to permanent employees in grades UT1 to UT6, UP1 to UP7 and UE1 to UE9. " Non - Executive Employees " shall refer to permanent employees in grades UN1 to UN5 and UNT1 to UNT4. HRD shall refer to Human Resource Department of the Company. DAL Means the Discretionary Authority Limits as approved by the Companys Board of Directors. " Group " shall refer to the companies within Opus Group Berhad. UEM shall refer to United Engineers (Malaysia) Berhad, the main shareholder of the Opus Group Berhad . UEM Group shall refer to other companies within the purview of UEM whether subsidiary or associate companies.

In this Handbook, where the context so admits, words importing the masculine gender shall include the feminine and neuter genders and words importing the singular number shall include the plural number and vice versa.

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PRINCIPAL TERMS AND CONDITIONS


1.0 APPOINTMENT 1.1 All appointments for Executive Employees shall be within Grades UT1 to UT6, UP1 to UP7, UE1 to UE9 and Non Executive employees within grades UN1 to UN5 and UNT1 to UNT4. Every employee will receive a Letter of Appointment stating the salary and grade, a copy of which shall be signed by the employee in acknowledgment of receipt.

1.2

2.0

PROBATION & CONFIRMATION 2.1 All new employees shall be required to serve a probationary period of employment of up to six (6) months for executives and (3) months for nonexecutives and during which time, their performance shall be reviewed for confirmation. Prior to confirmation, the employee's performance shall be reviewed by the management which reserves the right to confirm or terminate the employee's employment or to extend the employee's probationary period. The Company may, at its discretion, extend the probationary period for up to another six (6) months for executives and (3) months for non-executives. Employees shall be informed in writing of their confirmation or extension of probation. In the absence of a confirmation letter, employees shall continue to be on probation. An employee who is promoted may be required, at the discretion of the Company, to serve a probationary period of up to six (6) months for executives and (3) months for non-executives during which his performance shall be reviewed for confirmation in the promoted position. Should his performance be deemed unsatisfactory, the employee may be reverted to his former position. All contract employees shall follow the terms and conditions as stated in the contract.

2.2

2.3 2.4

2.5

2.6

3.0

MEDICAL EXAMINATION 3.1 All new employees shall be required to undergo a pre-employment medical examination upon the issuance of his Letter of Appointment. The medical practitioner performing the medical examination shall submit the medical report to the Human Resource Department to determine whether the employee is medically fit for employment. All appointments are subject to the employee being certified as medically fit for employment by the medical practitioner appointed by the Company.

3.2

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4.0

PERFORMANCE REVIEW 4.1 The performance review of each employee shall be conducted by his immediate superior by the end of each year using the Performance Management System Forms.

5.0

TRANSFER 5.1 An employee may be required to be transferred, assigned or seconded from one department, location, section, division, branch to another or from one Company, subsidiary or associate Company to another, existing now or in future, and in some cases may be required to work overseas or to undertake additional duties apart from the normal duties of the position to which he is appointed.

6.0

WORKING DAYS AND HOURS 6.1 The Companys normal working days and hours are: Monday to Friday Lunch Break Lunch Break (on Fridays for Muslim male employees performing Friday prayers) (Subject to the prevailing policy) 8.30 am to 5.30 pm 1.00 pm to 2.00 pm 12.30 pm to 2.30 pm

However, certain nominated employees may take a one-hour staggered lunch between 12.00 noon and 2.00 pm. The Company may vary the prescribed working days and hours depending on operational needs.

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SALARY ADMINISTRATION
Salary shall mean the amount of monthly emolument paid by the Company for services rendered solely to or on behalf of the Company by an employee. It shall refer to the basic emolument which the employee is entitled to, according to the scales formulated by the Company from time to time, and it does not include any fixed or variable allowances, bonuses, subsidies or any other benefits in kind. 1.0 SALARY PAYMENT 1.1 Payment of salaries will be made directly to the employee's bank account the details of which should be provided by the employee upon joining the Company. The salary shall become due for payment to the employee not later than the seventh day of the following month.

1.2 2.0

ANNUAL INCREMENT 2.1 Payment of annual increments may be awarded to confirmed employees at the sole discretion of the Company based on the individual employees performance as evaluated in the PMS. Individual salaries may be reviewed at the end of each year and adjustments, if any, are made effective 1st January each year, unless otherwise stated. No salary increment shall be paid to employees who have resigned, had their services terminated or who are serving resignation notice at the time of payment. Where disciplinary action is pending against an employee, the payment of annual increment, if any, shall be withheld until determination of the case. For confirmed employees with less than one (1) year service, they may be granted the full increment if they have served more than six (6) months. For those confirmed employees with less than six (6) months service, they may be granted proportionate increment at the sole discretion of the Company.

2.2 2.3

2.4 2.5

3.0

BONUS 3.1 3.2 3.3 Payment of bonus may be awarded to confirmed employees at the sole discretion of the Company. Payment of bonus, if declared by the Company, shall be based on the Companys and individual employees performance. Confirmed employees who have served less than twelve (12) months of continuous service shall be paid bonus on a pro-rated basis based on the number of completed days of service. Payment of bonus to employees who are still on probation shall only be made upon confirmation of employment and is to be calculated on a pro-rated basis based on the number of completed days of service.

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3.4 3.5 3.6

No bonus shall be paid to employees who have resigned, had their services terminated or who are serving resignation notice at the time of payment. Where disciplinary action is pending against an employee, the payment of bonus, if declared, shall be withheld until determination of the case. Employees who have taken no pay leave (excluding compulsory leave) of more than seven (7) days within the calendar year shall have their bonus entitlement pro-rated to the number of completed days of service.

4.0

CLAIMS 4.1 All claims for reimbursement of official expenses or employee benefits, together with the relevant supporting documents, must be submitted to the immediate superior of the employee, if applicable, and the approving authority (as per DAL) for their verification and approval before submission to HRD for processing of payment. Any claims which are not properly submitted with the relevant supporting documents or are not in accordance with the relevant policies will be returned to the respective employees. All original supporting documents (bills, invoices, receipts, etc) are to be attached to the claims form. Where the employee is unable to provide any such supporting documents, explanation must be provided. All claims for expenses incurred or entitlement of benefits must be submitted within a period of 6 months from the occurrence of the expenses or entitlement. Any claims submitted after the 6 months validity period may not be entertained.

4.2

4.3

4.4

5.0

CHANGES IN PERSONAL DETAILS 5.1 It is the responsibility of all employees to update any changes in their personal particulars via the e-HRMS or to inform HRD with the required supporting documents, as the case may be, as and when such changes occur, particularly information which may affect the payroll processing. The Company reserves the right to take disciplinary action against employees who provide false information to the Company.

5.2 6.0

INCOME TAX 6.1 6.2 All employees shall be liable for their personal income taxes. The Company shall deduct at source all remunerations subjected to the Schedule of Monthly Tax Deduction and shall disclose all employment income in the annual EA Form as provided under the Income Tax Act 1967.

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GENERAL BENEFITS
1.0 REST DAYS AND PUBLIC HOLIDAYS 1.1 1.2 All employees shall be entitled to a rest day in each working week. All employees shall be entitled to paid holidays on all gazetted Federal and State/Federal Territory public holidays applicable to the State or Federal Territory in which the employee wholly or mainly works under his contract of service. If a public holiday falls on a rest day, then the following regular working day will be a substitute holiday. Approved holiday for ungazetted public holidays shall be at the sole discretion of the Company. All employees shall be informed of such approved holiday.

1.3 1.4 2.0 EPF

The following EPF contributions apply to all permanent and contract employees: Years of Service 2 years and below Above 2 years 3.0 INSURANCE 3.1 Group Personal Accident All employees shall be covered by the Company's Group Personal Accident (GPA) Insurance policy . 3.1.1 Executive Grade : Designation/Job Band Top Management Job Band Group Chief Executive Managing Director Functional Director Chief Operating Officer Senior Group General Manager Top Management Job Band Chief Financial Officer Project Director Group General Manager Senior Management Job Band Middle Management Job Band Junior Management Job Band Quantum of Coverage Employers Contribution 12% 15% Employees Contribution Prevailing statutory rate as per EPF Act, 1991

Job Grade

UT2 UT6

RM1.0 million

UT1/UP7 UE7-UE9/UP4-UP6 UE5 UE6/UP2 UP3 UE1 UE4/UP1

RM750,000 RM500,000 RM300,000 RM200,000

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3.1.2

Non - Executive Grade : Designation/Job Band Supervisory Job Band Management Support Job Band Office/Operational Support Job Band Quantum of Coverage RM100,000 RM70,000 RM50,000

Job Grade UN4 UN5/UNT3 UNT4 UN2 UN3/UNT1 UNT2 UN1 3.2 Group Term Life

In addition, all Employees shall also be covered by the Company's Group Term Life (GTL) Insurance Policy. 3.2.1 Executive Grade : Designation/Job Band Top Management Job Band Group Chief Executive Managing Director Functional Director Chief Operating Officer Senior Group General Manager Top Management Job Band Chief Financial Officer Project Director Group General Manager Senior Management Job Band Middle Management Job Band Junior Management Job Band Quantum of Coverage

Job Grade

UT2 UT6

RM1.0 million

UT1/UP7 UE7-UE9/UP4-UP6 UE5 UE6/UP2 UP3 UE1 UE4/UP1 3.2.2

RM750,000 RM500,000 RM300,000 RM200,000

Non - Executive Grade : Designation/Job Band Supervisory Job Band Management Support Job Band Office/Operational Support Job Band Quantum of Coverage

Job Grade

UN1 to UN5 and UNT1 to UNT4

RM20,000

Updated: 31 July 2008

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3.3 Beneficiaries 3.3.1 3.3.2 The beneficiaries of both the GPA and the GTL shall be the employee or the employee's next of kin or nominated beneficiaries. The amount payable by the GPA and/or GTL Insurance Policy shall be arrived at after deducting any amount owing to the Company.

3.4 Group Hospitalisation & Surgical 3.4.1 4.0 SOCSO 4.1 5.0 Eligible employees as stipulated by the Employees Social Security Act 1969 (Act 4) shall also be covered by the SOSCO Insurance Scheme. All employees shall be covered Hospitalisation & Surgical Insurance. by the Companys Group

UNIFORM One set of Company uniform may be provided to all non-uniformed employees and the uniform are to be worn by all employees on the designated day as may be directed by the Company. The Company may provide receptionists, drivers, dispatch boys, office assistants and tea-ladies the following on an annual basis: a) b) 3 sets of uniforms 2 pairs of shoes (with the exception of receptionists)

6.0

EMPLOYEE TRAINING Employees training is guided by the companys Quality Objectives. Such training has to be recommended and approved as per the Discretionary Authority Limit. The minimum training hours may change according to the prevailing conditions at that point in time.

7.0

EMPLOYEE WELFARE The Company may provide all employees with the following: a) b) c) d) Subsidised sports and recreation facilities; Gifts for marriage, birth of child or hospitalisation of employee up to a maximum of RM100 per occasion; Donation for death of immediate family member (spouse, children and parents) of RM500; and Donation to next-of-kin upon death of employee of RM2,000

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LEAVE
1.0 ANNUAL LEAVE 1.1 All employees shall be eligible for annual leave after completion of one (1) year of continuous service. 1.2 The Company may at its discretion grant proportionate annual leave to confirmed employees in cases where their services with the Company is less than one (1) year. Eligibility for annual leave earned upon completion of one (1) year of continuous service shall be as follows: Grade Middle Management Job Band and above (UT1 UT6) (UE5 UE9) (UP2 UP7) Junior Management and Executives Job Band (UE1 UE4) (UP1) Non-Executives UN1 to UN5 and UNT1 to UNT4 1 5 yrs service 20 working days 6 10 yrs service 23 working days >10 yrs service 23 working days

17 working days

20 working days

23 working days

15 working days

18 working days

21 working days

1.4 For staff who are working on Saturday, for purposes of determining annual leave, Saturdays are considered a full working day. 1.5 The Company may at its discretion permit the accumulation of leave not exceeding half the employee's entitlement for any one year to be brought forward to the following year. Any such accumulated leave not used, shall be forfeited. Any variation to this clause will require the specific approval of the Managing Director.

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2.0 HALF-DAY LEAVE Employees may apply for half-day leave subject to the following guidelines: a) There will be no restriction on the number of half-day leave that an employee may take per year provided that the total annual leave does not exceed the annual entitlement. The current policy on accumulation of half of annual leave entitlement will remain. Half-day leave may not be allowed for purpose of Compassionate Leave. Such leave may be based on per day session. With the implementation of half-day leave, time-off may no longer be allowed. The following working hours shall be applicable to those taking half-day leave: Morning half-day leave : 1.30 pm to 5.30 pm (4 hours) Afternoon half-day leave : 8.30 am to 12.30 pm (4hours) Note: There shall be no further lunch break for employees taking half-day leave. f) If the absence during the half-day leave is more than the 4 hours allowed, the employee will be required to take the full day off. Employees who failed to report for work in the required session (morning or afternoon) shall be deemed to be absent from work without prior approval and may be subjected to disciplinary action. The half-day leave application and approval is subject to the Companys existing policy and procedure on leave. MEDICAL LEAVE 3.1 Paid medical leave shall be granted on the recommendation of a doctor from the Company's Panel of Clinics or any registered medical practitioner in the case of an emergency. 3.2 The Company shall not be obligated to grant paid medical leave obtained from a medical practitioner who is not on the Company's Panel of Clinics in a nonemergency situation. 3.3 Employees shall be entitled to the paid leave as follows:(a) Without hospitalization, the number of paid medical leave is twenty-eight (28) days per calendar year. (b) With hospitalization, the number of paid medical leave is sixty (60) days per calendar year. Provided that where an employee takes any paid medical leave under paragraph (a) in any calendar year, the period of his entitlement to paid medical leave under paragraph (b) in such calendar year may be reduced to the extent of the number of days of paid medical leave taken under paragraph (a).

b) c) d) e)

g)

3.0

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3.4 For the purpose of this section, if an employee is certified by the Companys Panel of Doctors or Government Hospital authority or registered Medical Practitioner to be ill enough to be hospitalized but is not hospitalized for any reason the employee shall be deemed to be hospitalized. 3.5 Medical leave granted by a registered dental officer or dentist shall be treated as paid medical leave. Such medical leave shall be included as part of the entitlement provided for under 3.3 (a) above. 3.6 Medical leave in excess of the above limits may be treated as unpaid leave at the sole discretion of the Company. 3.7 An employee who absents himself from work on medical leave and fails to inform the Head of Division/Department within forty-eight (48) hours of his absence due to illness shall be deemed to have been absent without reasonable excuse. 3.8 The Company shall not grant medical leave if it is the result of self-inflicted injury, cosmetic surgery, illness from drug abuse or addiction. 3.9 The Company shall not recognise the medical leave or any medical certificate issued by a Panel Doctor or by a registered medical practitioner to the employee for purposes of attending to a sick member of the family. 4.0 INDUSTRIAL ACCIDENT LEAVE An employee who meets with an accident arising out of and in the course of his employment with the Company shall be granted leave on full pay up to six (6) months on the recommendation of the Company's doctor or a medical officer appointed by SOCSO. 5.0 PROLONGED MEDICAL LEAVE 5.1 An employee who is certified by the Companys Panel of Doctors or Government Hospital Authority or registered Medical Practitioners to be mentally unsound or to be suffering from illness requiring prolonged treatment such as tuberculosis, cancer, leukemia, AIDS, cerebral thrombosis or any prolonged illness with hospitalization may be granted medical leave as follows: a) First 3 months @ full pay. b) Next 6 months @ half pay. c) Next 6 months @ no pay. 5.2 This leave shall be granted in addition to the employee's 28 days of medical leave without hospitalization entitlement as provided for under 3.3 (a) above. 5.3 An employee may not be entitled to paid annual leave for the period during which he is on prolonged medical leave. 5.4 The Company reserves the right to seek second opinion from another medical practitioner before allowing the employee to go on prolonged medical leave.

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5.5 In certain instances, the Company may, at its sole discretion and based on the diagnosis and advice from the Companys Panel of Doctors, Government Hospital Authority or registered Medical Practitioners, consider on a case-tocase basis after prolonged illness, as falling within the provision of section 6.0 below. 6.0 MEDICAL BOARDING OUT The Company may terminate the services of an employee without further compensation on grounds of medical boarding-out at the end of the prolonged medical leave period. 7.0 MARRIAGE LEAVE The Company may at its discretion grant an employee paid marriage leave up to a maximum of three (3) consecutive working days on the occasion of the first legal marriage, while in the employment of the Company. 8.0 MATERNITY LEAVE 8.1 Female employees shall be granted paid maternity leave for a maximum of sixty (60) consecutive calendar days inclusive of rest days and public holidays, as defined in the Employment Act, 1955. 8.2 Absence from work due to miscarriage before the 28th week of pregnancy shall not be considered as maternity leave but as sick leave. 8.3 Female employees will be eligible for paid maternity leave subject to a maximum of five (5) surviving children. 9.0 PATERNITY LEAVE Male employees shall be granted paid paternity leave for a maximum of two (2) consecutive working days for the birth of his child up to five (5) surviving children. 10.0 COMPASSIONATE LEAVE The Company may, at its discretion, grant an employee paid compassionate leave, not exceeding three (3) consecutive working days at any one time and not more than nine (9) working days, non-cumulative, in any one year, in the event of : a) b) Death or serious illness which requires hospitalization of spouse, children (irrespective of age), parents, parents-in-law, brothers, sisters or grandparents. Natural disaster which directly affects the employee.

Documentary evidence of the above may be required by the Company. 11.0 SPECIAL LEAVE The Company may entirely at its discretion grant special paid leave to an employee for the following reasons: a) Rukun Tetangga duties or any duties required by the law;
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Updated: 31 July 2008

b) c)

Representing State or National levels in any sports events; and Representing the Company at any sports or social events.

Documentary evidence of the above is required by the Company. 12.0 HAJ LEAVE A Muslim employee who has served the Company for three (3) consecutive years shall be eligible for a maximum of forty (40) consecutive calendar days of paid haj leave, once during his employment with the Company or the UEM Group. 13.0 STUDY AND EXAMINATION LEAVE An employee who is nominated by the Company to attend courses shall be given study leave for the duration of the course. The Company may entirely at its discretion grant examination leave with pay up to a maximum of five (5) days for those days on which the employee is required to sit for an examination. Such leave shall be considered only where the resulting qualification is judged by the Company to be beneficial to the employee's present or future assignments in the Company. The Company may entirely at its discretion grant study leave with pay up to a maximum of four (4) days per annum subject to 2 working days per paper to be taken within 1 week before exam and only applicable for first sitting. 14.0 UNPAID LEAVE The Company may at its discretion grant no pay leave to an employee who has exhausted his earned annual leave. Wage deduction for the purpose of no pay leave shall be calculated based on the following formula: (Basic Salary + Fixed Allowance) or Wages x No. of days of no pay leave No. of Days in the month In the event bonus is paid, an employee who has taken more than seven (7) days of no pay leave within a calendar year shall have his bonus entitlement pro-rated to the number of completed days of service. 15.0 LEAVE APPLICATION Application for annual leave and other types of leave must be made on the prescribed form which is available at the HRMS Online. Annual leave must be applied at least five (5) working days in advance. For all other types of leave, a relevant supporting document is required to be attached to the leave application form.

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MEDICAL / HOSPITALIZATION BENEFITS


1.0 OUTPATIENT GENERAL TREATMENT 1.1 For the employee and his family, medical expenses i.e. consultation, treatment and medicine, diagnostic tests, specialist treatment and all vaccinations prescribed by a registered medical practitioner from the Company's panel or recognized registered medical practitioners, subject to the following entitlement : Job Grade UT1/UP7 UT6 UE1-UE9, UP1-UP6, Non-Executives 1.2 The above shall also include the following : a) Employee and his familys dental expenses covering only extraction, filling, xray, root canal, scaling and routine check-up; b) All immunizations & supplements prescribed by registered medical practitioners shall be extended to employee and his family; c) Medical coverage for babies shall be within the outpatient entitlement and the coverage includes the following: First 14 days covers all expenses incurred by the new born including vaccinations, medication and nursery charges. After 14 days coverage includes: Hepatitis B 2nd and 3rd dose Triple Antigen and Oral Polio 3 times Booster once only Measles, Mumps and Rubella Other mandatory vaccinations as required by any statutory authority d) Maternity benefits : pre & post-natal visits & delivery for employee/spouse up to 5 surviving children 2.0 MEDICAL TREATMENT BOOK 2.1 Each employee shall be provided with a Medical Treatment Book. The safe custody of the book shall be the responsibility of each employee. An employee shall be required to complete the Medical Treatment Book personal particulars form prior to the book being issued to him. 2.2 On termination of employment, the employee shall be required to return the Medical Treatment Book to the Human Resource Department . Limit per annum (RM) 4,000 3,000

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3.0

HOSPITALISATION BENEFITS 3.1 For the employee and his family, hospitalisation in a Company approved hospital and specialist treatment in conjunction with the hospitalisation, are as follows: Ward Rate (excluding meals) RM250 per day

Grade Top Management and Senior Management Job band UT1 UT6 UE7 UE9 UP4 UP7 Middle Management Job Band UE5 UE6 UP2-UP3 Junior Management Job Band UE1 UE4 UP1 Non Executives UN1 to UN5 and UNT1 to UNT4

Quantum Per Annum RM50,000 including surgical, hospital room and board

RM250 per day

RM50,000 including surgical, hospital room and board

RM180 per day

RM50,000 including surgical, hospital room and board

RM130 per day

RM30,000 including surgical, hospital room and board

3.2 Approval of all medical and hospitalisation claims in excess of the limits set and overseas specialist treatment shall be at the sole discretion of the Company. 3.3 All employees are responsible for notifying the Company of their hospitalisation or hospitalisation of their family member within 10 days of the occurrence or commencement of such hospitalisation or operation so as to enable the Company to appropriately notify the insurance Company. In the event that the Company is not notified, the Company will not be obliged to reimburse the employee for their hospitalisation or other costs as per the table above. 4.0 PHYSICAL EXAMINATION 4.1 All confirmed employees (family excluded) from Grades UT1 to UT6, UE5 to UE9 and UP2 to UP7, will undergo a comprehensive medical check-up (including ECG, MRI and treadmill tests) by the Company's Panel of Doctors or referred specialists as follows: a) b) 45 years and above 44 years and below Once a year Once in two years

4.2 The cost of the medical examination shall be treated as a separate entitlement from the outpatient or hospitalization limit. 4.3 Confirmed Employees from Grades UE1 to UE4, UP1, NT1 to NT8 and NE1 to NE10 will also enjoy this benefits under the outpatient medical entitlement of RM3,000.

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4.4 A copy of the medical report is to be extended to the Company for retention in the Employee Records. 5.0 EXCLUSIONS The following are not covered under the Company Medical and Hospitalization Benefits: a) Any expenses incurred in respect of illness, injury or disablement, arising from proven fault, participation in or attending any hazardous sports and hobbies, pursuit or past time exposure to any unjustifiable hazards (except when endeavoring to save or protect his property or the property of the Company, or to save human life). suicide or injuries suffered from an attempt to commit suicide, whether in a sane or insane mental condition; self inflicted injuries, whether committed in a sane or insane mental condition, provoked assault, the use of drugs not prescribed by a registered medical practitioner; injuries arising directly or indirectly from war, any act of war, criminal or terrorist activities, full-time service in any of the armed forces, direct participation in riot strike and civil commotion or insurrection; eye examinations or refractions for the purpose of their fitting of glasses; hearing aids or the fitting of any thereat; any treatment relating to surgical, mechanical or chemical methods of birth control and infertility; any treatment or surgical operation for congenital conditions, illness or physical disability present from birth, plastic or cosmetic surgery; special nursing fees or purchases of any appliance or prosthetic devices except for the rental of these devices during the period of hospital confinement; charges for non-medical services like telephone, television and other services; any treatment for the functional disorder of the psychic or mental constitution including their physiological or psychosomatic manifestations; any treatment prescribed by practitioners not recognized by the Malaysian Medical Association. [The remainder of this page is intentionally left blank.]

b) c)

d)

e) f) g) h) i) j) k)

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COMPANY LOANS
1.0 COMPUTER LOAN 1.1 All confirmed Permanent Employees from Grade UT1 to UT6, UE1 to UE9 and UP1 to UP7 are eligible for a computer loan up to RM5,000 at an interest rate of 4% per annum flat payable within 2 years. 1.2 Documentary evidence on the purchase of the computer may be required by the Company. 2.0 STUDY LOAN 2.1 The Company may at its discretion grant Permanent Employees from Grade UT1 to UT6, UE1 to UE9, UP1 to UP7, UN1 to UN5 and UNT1 to UNT4 an interestfree loan up to RM5,000 payable within 3 years to permanent employees taking up part-time courses relevant to their jobs. 2.2 Documentary evidence on the above may be required by the Company. 3.0 PERSONAL CLUB MEMBERSHIP LOAN 3.1 The Company shall provide confirmed permanent executives in Grade UE6/UP3 to UE8/UP5 with an interest-free loan for the entrance fee of an approved club up to a maximum of RM10,000. The loan is to be repaid over thirty-six (36) equal monthly installments by way of salary deduction. At all times until the loan is fully repaid, no attempt shall be made by the employee to sell or dispose of the club membership without informing and seeking the approval of the Company. 3.2 When the employee leaves the Company, the outstanding loan will be deducted from his salary with any further outstanding balance to be repaid fully within fourteen (14) days of termination of employment. 4.0 TERMS AND CONDITIONS OF LOANS 4.1 All loans provided by the Company are to be repaid within the stipulated period by way of monthly salary deduction. 4.2 The same type of loan could be granted to an employee provided the previous loan is fully repaid. 4.3 When an employee leaves the Company, any loan outstanding will be deducted from his salary with any further outstanding balance to be repaid fully within fourteen (14) days of termination of employment.

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CLAIMS & ALLOWANCES


1.0 INTEREST-SUBSIDY ON CAR LOANS 1.1 All confirmed Permanent Employees from Grade UE1 to UE5 and UP1 to UP2 who are not provided with Company cars will be given a subsidy on their monthly car loan repayments as follows: Amount Subsidised Interest of 4% on loan principle of not more than RM40,000 and the maximum interest subsidy payable will be RM133.34 per month. Condition of loan Subject to finance institutions Requirement

1.2 The interest-subsidy ceases when the employee is assigned with a Company car based on promotion or redesignation or when the employee is no longer in service with the Company. 1.3 Documentary evidence on the purchase of the car is required by the Company and the car has to be registered under the name of the employee. 2.0 CORPORATE CLUB MEMBERSHIP 2.1 The Company may provide confirmed executives in grade UT2 to UT6 with one corporate club membership at an approved social and recreational club based on availability. The Company shall reimburse the monthly club subscription including compulsory monthly payments to the club, inclusive of tax charges. In the event of resignation or termination of service, the membership shall be reassigned to another eligible employee within the Company or Group as deemed necessary and at the discretion of the Management.

2.2 2.3

3.0

PERSONAL CLUB MEMBERSHIP 3.1 The Company shall provide confirmed executives in grade UT1 to UT6 and UE9 (once in the service with the UEM Group) with a personal membership in a Company approved club for the purpose of fulfilling business objectives of the Company. The Company shall pay the actual entrance fee to the approved club up to a maximum amount of RM20,000. The eligible employee shall be responsible for acquiring the club membership. The type of approved clubs for reimbursement or loan for the entrance fee and/or monthly subscriptions shall be extended to include fitness clubs in addition to social and recreational clubs. Entrance fees will not be reimbursed retrospectively for clubs which the employee is already a member of.
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3.2

3.3

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3.4 3.5

The employee shall not sell or dispose the club membership during his employment with the Company without prior approval of the Company. In the event that the employee resigns or is terminated, the employee shall repay the Company the entrance fee as follows: Occurrence of Resignation Within one (1) year of joining the club Within two (2) years of joining the club Within three (3) years of joining the club After three (3) years of joining the club Repayment % 100% 50% 25% 0%

4.0

REIMBURSEMENT ON MONTHLY CLUB SUBSCRIPTION 4.1 The Company shall reimburse confirmed executives in grade UT6 UE5/UP2 the monthly subscription, excluding any compulsory monthly payments and tax charges and any ancillary charges such as payments for contribution to building fund, employee bonus, etc, for any number of approved personal club memberships subject to the following: Job Grade UT1/UP7 UT6 UE5/UP2UE9/UP6 4.2 Amount Up to RM300 per month Up to RM200 per month

Documentary evidence on the club membership shall be required by the Company.

5.0

REIMBURSEMENT OF EXAMINATION FEE 5.1 The Company may reimburse examination fees, if any, up to RM1,000 per course, when an employee passes examinations that are considered relevant to their jobs. Claims for the reimbursement of examination fees must be supported with the examination results.

5.2 6.0

REIMBURSEMENT ON PROFESSIONAL ASSOCIATION MEMBERSHIP SUBSCRIPTION 6.1 6.2 The Company shall pay the annual membership fees of up to two (2) relevant and approved professional associations for all confirmed Employees. The Human Resource Department shall review and update the list of all the approved professional associations.

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7.0

CORPORATE CREDIT CARD 7.1 Confirmed executives in Grade UT1-UT6, UE6-UE9 and UP3-UP7 may be provided with a corporate credit card at the Companys discretion. The Company may also provide a corporate credit card to other executives in Grade UE5/UP2 and below based on job requirements. The credit limit for the corporate credit card shall be determined by the Company from time to time. An employee may request for a temporary increase in the assigned credit limit for the purpose of official business travel provided the request is authorized by the approving authorities in accordance with the DAL. Any request for permanent increase in credit limit must be supported by proper justifications subject to approval as per the DAL. The corporate credit card shall only be used for official expenses incurred in connection with the Companys business. Expenses allowed for Companys business shall include the following: a) b) c) d) e) 7.5 Accommodation, meals and/or traveling expenses during outstation/overseas travel Entertainment of business clients Fuel for Company motor vehicles or car allowance scheme Leave passage Purchases during emergency cases, e.g. in a disaster recovery.

7.2

7.3 7.4

The cardholder is not allowed to withdraw cash advance from the corporate card under any circumstances except in unavoidable emergency cases (e.g. the card is not accepted and payment has to be made for such official expenses and the cardholder is unable to use his/her personal credit card). The cardholder, after verification of the monthly statement, is required to submit all original supporting receipts or documents pertaining to any expenses made using the corporate card by attaching them to the claims form before submitting to the approving authorities for approval of payment. The cardholder is required to ensure these documents are submitted within the stipulated deadline. The cardholder may be subjected to disciplinary action and/or withdrawal of the corporate card by the Company if any of the terms and conditions on the usage of the corporate card is breached.

7.6

7.7

8.0

ENTERTAINMENT ALLOWANCE 8.1 Employees who are authorised by the Company to entertain shall be reimbursed the actual amount incurred based on receipts. 8.2 UT1-UT6, UE6-UE9 and UP3-UP7 Employees are eligible to claim RM50 per occasion per month for any entertainment claims without receipts. 8.3 All job-related entertainment can be authorised by UT1-UT6 Employees on the job. All other entertainment for general client or public relations must be authorised by MD/COO of the Company.

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9.0

SUBSISTENCE ALLOWANCE 9.1 An employee who is on an overnight duty at least 50 km away from his normal place of work for less than 15 days shall be paid subsistence allowance at the following rates: Within Malaysia Job Grade UT1-UT6 UP2-UP7 UE5-UE9 Peninsular Malaysia Actual reasonable amount RM80 per day Breakfast Lunch Dinner UP1 UE1-UE4 RM15 RM25 RM40 East Malaysia Actual reasonable amount RM100 per day Breakfast Lunch Dinner RM20 RM30 RM50 Without receipt Condition With receipt

Actual reasonable amount

Actual reasonable amount

With receipt

RM60 per day Breakfast Lunch Dinner RM10 RM20 RM30

RM80 per day Breakfast Lunch Dinner RM15 RM25 RM40 Without receipt

UN1 to UN5 Actual reasonable and UNT1 to amount UNT4 RM40 per day Breakfast Lunch Dinner RM5 RM15 RM20

Actual reasonable amount

With receipt

RM60 per day Breakfast Lunch Dinner RM10 RM20 RM30 Without receipt

9.2

The above allowances shall be calculated on a 24 hour basis. For subsistence allowance involving dinner, work performed must be after 6.30 pm. Employees who are on outstation duties which are less than 8 hours will not be eligible to claim this allowance irrespective of the distance travelled. The Company will deduct the respective meal allowances if the employee is being entertained or claiming for the entertainment allowance or where meals are provided while attending courses.

9.3 9.4

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10.0

SUBSISTENCE ALLOWANCE FOR SHORT-TERM OVERSEAS DUTIES 10.1 An employee who is on overseas duties for 2 weeks or less shall be eligible to claim based on either of the following: a) b) Actual amount as per receipts; or The following fixed daily subsistence allowance:

Overseas (including Singapore & Brunei) On assignment for duration of 2 weeks or less Japan/Europe/ Job Grade Others Condition USA/Canada Actual reasonable amount All Grades RM250 per day Breakfast Lunch Dinner 10.2 10.3 RM 50 RM 75 RM125 Actual reasonable amount RM200 per day Breakfast Lunch Dinner RM 40 RM 60 RM100 Without receipt With receipt

The subsistence allowance will be the same for all categories of staff. The eligibility for the subsistence allowance shall commence from the time of departure from the base of the employee and cease upon the time of arrival at the same base. The Company shall deduct the respective subsistence allowances as indicated above if the employee is being entertained or claiming for entertainment or when breakfast is being provided by the hotel, based on the following rates: Breakfast Lunch Dinner 20% 30% 50%

11.0

ACCOMMODATION ALLOWANCE 11.1 An employee who is on overnight outstation duty shall be provided with appropriate accommodation by the Company.

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11.2

Where accommodation is not provided by the Company, the Company shall reimburse the employee at the following rates:Overseas (including Singapore & Brunei)

Job Grade

Peninsular Malaysia Actual for single standard room RM40 per day Actual for single standard room RM40 per day Actual for single standard room RM30 per day

East Malaysia

Condition

UT1UT6, UE5-UE9 UP2-UP7

Actual for Actual for single standard single standard room room RM40 per day Not applicable

With receipt Without receipt With receipt Without receipt With receipt Without receipt

UP1 UE1-UE4

Actual for Actual for single standard single standard room room RM40 per day Not Applicable

UN1 to UN5 and UNT1 to UNT4

Actual for Actual for single standard single standard room room RM30 per day Not Applicable

11.3

Accommodation allowance for other foreign countries shall be paid at the discretion of the Company.

12.0

ADVANCES FOR OUTSTATION/OVERSEAS TRAVEL 12.1 Employee who are required to travel outstation/overseas to perform official duties or attend training courses shall be eligible to apply for a reasonable cash advance to commensurate with the length of stay and country of destination. Approval for such advances should be in line with the Discretionary Authority Limits. All advances must be settled within 2 weeks from the date of returning from the trip. The Company reserves the right to deduct the amount of the advance from the employees salary should the employee fail to comply with the above deadline.

12.2

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13.0

REIMBURSEMENT OF FEE FOR INTERNATIONAL PASSPORT 13.1 Confirmed employees in grade UE3 and below who are required to travel overseas on official duties for less than six (6) months, including training, shall be eligible for the reimbursement of the fee incurred to obtain an international passport. The amount reimbursed shall be limited to RM300 or any applicable revised fee charged to obtain a 32-page international passport. Employee shall only be allowed to claim this benefit once every five (5) years when applying for a new international passport. The reimbursement shall not be allowed for replacement purpose owing to lost or damaged passport.

13.2 13.3 13.4

14.0

TRANSPORTATION ALLOWANCE 14.1Transportation claims for travelling on Company duty or attending courses approved by the Company shall be subject to the following: BENEFITS TERMS AND CONDITIONS Executive Grade BOD of Public listed companies, & Top Mgmt job band (UT1/UP7-UT6) & BOD of non-listed companies and PN4 companies: - Business Class, where Business Class is not available, to upgrade to First Class. Junior Mgmt to Senior Mgmt job bands (UE1-UE9/UP6) - Economy Class Non-Executive Grade Remain at Economy Class

Transportation (a) Local Air Travel (including East Malaysia & Singapore)

(b) Overseas Air Travel

Executive Grade BOD of Public Listed Companies & Top Mgmt job band (UT3 UT6): - More than 3 hrs flight First Class - Less than or equal to 3 hours flight - Business Class, where Business Class is not available, to upgrade to First Class BOD of non-listed companies and PN4 companies and Top Mgmt job band (UT1/UP7 UT2): - Business Class, where Business Class is not available, to upgrade to First Class Senior Mgmt job band (UE8/UP5, UE9/UP6) - More than 3 hrs flight - Business Class, where Business Class is not available, to downgrade

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to Economy Class Less than or equal to 3 hours flight -Economy Class, where Economy Class is not available to upgrade to Business Class

Senior Mgmt job band (UE7/UP4), Middle Mgmt, Junior Mgmt & Non-Executive job bands - Remain at Economy Class c) By Rail Executive Grade UE1-UT6 1st Class Non-Executive Grade UN1 to UN5 and UNT1 to UNT4 2nd Class d) Own Transport Executive Grade UE1-UT6 By Car RM0.60/km By Motorcycle RM0.25 Non-Executive Grade UN1 to UN5 and UNT1 to UNT4 By Car RM0.60/km By Motorcycle RM0.25 e) Taxi and Others Actual reasonable amount

Applicable only to employees without Company vehicle. Where an employee travels directly to a place of work other than the office, travel claims shall be based on the difference of the distance between his house to the office and his house to the assigned place of work. The above is applicable only if the distance from the employee's house to the assigned place of work is further than that from the employees house to the office.

14.2

14.3

15.0

WINTER CLOTHING ALLOWANCE 15.1 The Company shall provide winter clothing allowance to employees who are required to travel to any temperate countries to perform official duties or attend training courses, during the winter season. The allowance shall be provided once every two (2) years as follows: Grade UE7/UP4-UT6 UN1-UE6/UP3 Amount RM 800 RM 500

15.2

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16.0

LAUNDRY ALLOWANCE 16.1 Employees who are required to be in uniform on a daily basis are paid RM15 per month.

17.0

LAUNDRY EXPENSES 17.1 An employee who is on outstation duty for more than two (2) days in duration is eligible to claim for laundry expenses as follows : Grade UT1-UT6, UE6-UE9, UP3-UP7 UE1 UE5,UP1-UP2 UN1 to UN5 and UNT1 to UNT4 Amount Actual laundry expenses, with receipt Actual with receipt, up to RM15 per day Actual with receipt, up to RM10 per day

18.0

TELEPHONE CALLS 18.1 18.2 All telephone calls made (from home or whilst overseas) on official business will be reimbursed based on actual bills. The Company will reimburse reasonable actual cost of calls made to the family once a month whilst outstation or overseas.

19.0

OVERTIME 19.1 All employees within the scope of the Employment Act, 1955 shall be compensated in accordance with the provisions of the Employment Act, 1955 for any work performed in excess of the normal working hours. The hourly rate of pay used for the payment of overtime (OT), shall be calculated according to the following formula: (Basic Salary + Fixed Allowances) x Overtime Rate 26 X 8 Overtime Rate as follows : Normal Working Day Sunday (less than 8 hours) Sunday (more than 8 hours) Public Holiday (less than 8 hours) Public Holiday (more than 8 hours) 19.3 OT Hour x 1.5 OT Hour x 1.0 OT Hour x 2.0 OT Hour x 2.0 OT Hour x 3.0

19.2

Non-executives who are not eligible for overtime claims shall be paid RM11.00 for every completed hour of OT work performed, work performed on off days, rest days and/or public holidays.

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19.4

Employees in receipt of the payments in 19.1 and 19.3 above shall not be eligible for any other types of claims including meals or transportation in relation to the work performed.

20.0

OVERTIME TRAVEL COSTS 20.1 The Company shall reimburse transport expenses up to a maximum of RM10.00 incurred by employees (who are not eligible for overtime payment) who work past 10.00 pm. An employee who is provided with a Company vehicle shall not be eligible for the above payment

20.2 21.0

SITE ALLOWANCE 21.1 An employee who has been assigned to a designated site for more than 14 consecutive days are eligible for a monthly site allowance pro-rated accordingly for any incomplete month as follows :

21.1.1 Site location less than 50km radius :-

Grade UE6/UP3 and above UE1 to UE5/UP2 Non Executive

Monthly Site Allowance RM500 RM400 RM300

21.1.2 Site location more than 50km radius :Grade UE6/UP3 and above UE1 to UE5/UP2 Non Executive Monthly Site Allowance RM700 RM600 RM400

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22.0

PROJECT MAINTENANCE ALLOWANCE FOR NMM PROJECT 22.1 An employee who has been assigned to do a daily site inspection, i.e slopes, pavement, drainages, structural and bridges; is eligible for a monthly project maintenance allowance as follows: Grade UT1-UT6, UP3-UP7, UE6-UE9 UP1-UP2, UE4-UE5 UE1-UE3 UN1 to UN5 and UNT1 to UNT4 Monthly Project Maintenance Allowance RM500 RM400 RM300 RM250

23.0

STANDBY ALLOWANCE An employee who is required to be on standby duty based on the approved schedule shall be paid a standby allowance at a fix rate of RM80 per scheduled period. The employee is required to response to any emergency within 1 hour.

24.0

PARKING FEES Employees whose parking bays are not provided by the Company shall receive monthly reimbursement of parking fees as follows: Grade UT1-UT6,UP2-UP7, UE5-UE9 UE1-UE4/UP1 Amount Full reimbursement Up to RM 60 per month

25.0

RELOCATION/TRANSFER WITHIN WEST MALAYSIA 25.1 Employees who are relocated/transferred by the Company to a new location which is more than 50 km from the workplace for more than 14 consecutive days and have to change residence shall be eligible for the following: a) Temporary Accommodation Temporary accommodation for the employee, spouse and children up to a maximum of five (5) days as follows:

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Grade

Condition

Single

With receipt UE6/UP3UT6 UE1UE4/UP1 Without receipt With receipt

Actual for Single Deluxe Room RM40 Single standard

Married (Accompanied by family members) Actual for Double Deluxe Room(s) RM40 Double Room (s)

Without receipt RM40 RM40 UN1 to With receipt Single standard Double Room (s) UN5 and UNT1 to Without receipt RM30 RM30 For site employee who have been temporary relocated less than 60 days; to a different sit UNT4 b) Subsistence Allowance Subsistence allowance shall be provided to the employee and his immediate family for a maximum of five (5) days as follows: Grade Condition With receipt Employee Actual reasonable expenses RM 80 per day UE5/UP2UT6 Without receipt (Peninsular Malaysia) RM100 per day (East Malaysia) Actual reasonable expenses RM 60 per day UE1UE4/UP1 Without receipt (Peninsular Malaysia) RM80 per day (East Malaysia) Actual reasonable expenses RM 40 per day (Peninsular Malaysia) RM60 per day (East Malaysia) RM30 per day/person (Peninsular Malaysia) RM40 per day/person (East Malaysia) Actual reasonable expenses RM20 per day/person (Peninsular Malaysia) RM30 per day/person (East Malaysia) RM40 per day/person (Peninsular Malaysia) RM50 per day/person (East Malaysia) Actual reasonable expenses Immediate Family Actual reasonable expenses

With receipt

With receipt UN1 to UN5 and UNT1 to UNT4

Without receipt

For site employee who have been temporary relocated less than 60 days; to a different site office is eligible to claim a daily subsistence allowance of RM60 per day.
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c) Transportation Travelling expenses to the new location for the employee, spouse and children will be as per the rates specified in paragraph 14.0 (Transportation Allowance). d) Moving Expenses The Company shall reimburse actual reasonable expenses incurred on transportation cost, including insurance and packing expenses of : Up to RM3,500 for all employees who are relocated within the location where they are currently based i.e. either East or West Malaysia. ii) Up to RM5,000 if relocation is from East to West Malaysia and vice versa. e) Relocation Allowance (One time payment) The Company shall provide the employee with the following one-off payment: i)

Grade

Married

Single

UE6/UP3-UT6 UE1-UE5/UP2 UN1 to UN5 and UNT1 to UNT4 f) Home Trips

RM1,000 RM750 RM500

RM500 RM400 RM300

The Company shall provide an employee and his immediate family with one (1) home trip a year on economy air fare in the case of an employee who has been transferred outside Peninsular Malaysia. Employees relocated / transferred at their own request shall not be eligible to claim the benefits under 25.0 (Relocation/Transfer) 26.0 COMPANY CAR & DRIVER / PETROL ALLOWANCE 26.1 Employees in Grades UE7/UP4-UT6 may be provided with a Company car based on grade entitlement. Employees in Grade UE5/UP2 may be provided with a Company car based on relevant job requirement. For employees in grade UE6/UP3 shall be provided with a petrol allowance of RM400 per month. Employees in Grade UT2UT6 may also be provided with a Company driver.

26.2

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27.0

COMPANY VEHICLE SCHEME 27.1 Employee in Grades UT1-UT6, UP4-UP7 and UE7-UE9 will be given the choice of either opting for a Company vehicle or a fixed monthly car allowance. The Chairman of the Company will be included in this Scheme. For those who opt for the Company vehicle, the type of vehicle for the various eligible categories/grades shall be as follows: MAKE/MODEL

27.2

CATEGORY/GRADE

Chairman/Division Presidents Proton Perdana Executive Standard UT2-UT7 Grade Project Directors/Chief Financial Proton Perdana Officers/Group GMs/ UT1, UP6UP7, UE9/UP6 Grade UE7-UE8/UP4-UP5 Proton Wira 1.5 27.3 The above revision is reflective of the Groups support for the national vehicle, consistent with the acquisition of the Companys holding Company, United Engineers (Malaysia) Berhad by Syarikat Danasaham Sdn Bhd in October 2001. Following the above, all replacement of vehicle with immediate effect shall be based on the above. Meanwhile, for employee who wish to opt for the car allowance scheme, the details of the new scheme are as follows:Coverage All employee in Grade UE7/UP4 and above who are currently entitled to a Company assigned vehicle, including all new promotees and recruits into these grades. b) Option Eligible employee will be given the option to either select the Company car or car allowance scheme subject to the following conditions: For existing employee with Company car, they will only be eligible to opt for the car allowance scheme when their vehicle is due for replacement. Employee who have opted for the car allowance scheme will only be allowed to convert to the Company car scheme upon promotion to another grade where the car entitlement is different or under other circumstances as approved by the Management. Employee who have opted for the Company car scheme will only be allowed to convert the car allowance scheme when their vehicle is due for replacement.

27.4

a)

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c)

Quantum of Allowance The monthly car allowance under this scheme shall be as follows: Job Grade Chairman, UT5 UT6 Category Current Monthly Allowance RM3,400

Chairman of UEM and public listed companies, Group Chief Executive, Division President Managing Director, UT2 UT4 Functional Director, Chief Operating Officer Chief Operating Officer, Chief Financial Officer, UT1/UP7 Project Director, Group General Manager Senior General Manager, UE9/UP6 General Manager Assistant General UE7/UP4 UE8/UP5 Manager, Senior Manager

RM2,900

RM2,200

RM1,600 RM900

The above monthly allowance has been derived after taking into consideration amongst others, the following factors: i) ii) iii) monthly hire purchase installment payable by employee based on the value of a benchmark vehicle appropriate to the employees grade; additional tax payable by employee due to the cash allowance; and additional EPF contribution payable by the Company.

The car allowance will be paid out on a monthly basis together with the monthly salary of the employees. Where bonus or increment is approved, the car allowance will not be considered in determining the bonus or increment payments. The monthly car allowance will be taxable at source under the Schedular Tax Deduction, unless the employee is able to obtain an exemption from the Inland Revenue Board (IRB). It will also be subjected to EPF deduction but the employers EPF contribution for this fixed allowance will be based on the prevailing statutory rate (currently 12%) instead of the normal rates of contribution for salary. This is in view that the allowance is a replacement for an existing benefit-in-kind and should not be considered for additional contribution towards the employees retirement scheme.

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d)

Reimbursements In addition to the monthly allowance, the eligible employee who has opted for the car allowance scheme will be entitled to claim for the following: Road Tax & Insurance P.A (RM)

Job Grade

Category Chairman of UEM and public listed companies, Group Chief Executive, Division President Managing Director, Functional Director, Chief Operating Officer Chief Operating Officer, Chief Financial Officer, Project Director, Group General Manager Senior General Manager, General Manager Assistant General Manager, Senior Manager

Maintenance Cost P.A (RM)

FUEL

Chairman, UT5 UT6

10,000

10,100

UT2 UT4

10,000

6,600 Actual amount based on receipts

UT1/UP7

7,500

4,900

UE9/UP6 UE7-UE8 UP4-UP5

5,000

3,700

3,000

2,100

The above reimbursement cost for maintenance was derived after considering the current cost incurred by the Opus Group, whilst the limits placed on insurance and road tax claims were based on the benchmark vehicle value and engine capacity for the different grades. Reimbursements for the maintenance cost shall include :repair and servicing costs, change of tyres and batteries, car wash and polish, inspection by Puspakom and any other costs reasonably incurred and necessary for the proper upkeep of the vehicle but subject to the maximum cost per annum indicated in the table above. It shall not include reimbursements for: any "add-ens" or accessories such as car alarm system, heat reflecting films (e.g. V Kool), reverse sensor and stereo equipment such as radio, CD player, etc. These items are deemed as part of the capital cost for the car and therefore shall not be reimbursed by the company. membership to AAM or tracking system, etc. prepaid programme such as CARS (reimbursement shall be based on actual expenses incurred),

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respraying and sport rim except in the case of accident or where the car is more than 3 years from date of manufacture or last re-spray.

The maximum amount allowed per annum is based on a calendar year and shall be prorated for any incomplete year of service. Where the employee is promoted from one eligible grade to another, the total amount shall be prorated based on the length of service in each eligible grade. The employee will also continue to be eligible to claim for the following: Parking and toll charges incurred whilst on official duties. Free parking lots or be reimbursed for parking fees on seasonal parking lots.

In order to be eligible for the above reimbursement, employee will be required to inform the Company of their designated vehicle, which shall be restricted to one. The designated vehicle must be registered in the employees name and original receipts must be submitted together with the claims. The reimbursements for maintenance cost, road tax and insurance are nontaxable cash reimbursements to the employee for expenses incurred in the maintenance and upkeep of their own vehicles for use in their official duties. However, reimbursement for fuel will be taxable in full based on the amount claimed for the year. This shall be declared by the Company in the employees EA Form at the end of each year. Employees may however seek deduction from the IRB on this by providing evidence that the cost was incurred for their official duties. Payment of the reimbursements shall be based on the Companys existing claim procedures, provided original receipts with the registration number of the designated vehicle indicated are submitted.

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e)

Benchmark Vehicle Employee on the car allowance scheme are allowed to purchase and use a car of their own choice but the vehicle selected should reflect their position or level so as to maintain the Groups image. As a benchmark, the following types of vehicle or vehicle of equivalent values will be used for this purpose: CATEGORY/GRADE Chairman/Division Presidents MAKE/ MODEL OR EQUIVALENT VALUE Proton Perdana Executive or vehicle equivalent to value of RM250,000 and above Proton Perdana Executive or vehicle equivalent to value of RM150,000 and above Proton Perdana V6 or vehicle equivalent to value of RM125,000 and above Proton Perdana V6 or vehicle equivalent to value of RM100,000 and above Proton Wira or vehicle equivalent to value of RM50,000 and above

MDs/COOs/Functional Directors

Project Directors/CFOs/GGMs UE9/UP6

UE7/UP4-UE8/UP5

In support of the national car, employee will be encouraged to purchase the national car. However, if the employee chose to purchase other models, they would then be required to purchase vehicles which are equivalent to the above values. Employee on the car allowance scheme shall not be allowed to utilise the Companys pool vehicle unless in emergency cases. The Companys existing policy on allocation of pool vehicle for operational purpose to employee in other lower grades shall remain.

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27.5

Exceptions Employee shall be eligible to receive half the monthly allowance provided under the existing scheme, with the amount rounded up to the next nearest hundred, in cases whereby: a) employee is unable to purchase a car that is in compliance with the benchmark criteria set in terms of the model, and/or equivalent value of the vehicle; the company is unable to provide a company car to the eligible employee who wishes to opt for the company car;

b)

The rates are as follows: Current Monthly Allowance Monthly Allowance Payable in cases of vehicle not within approved policy

Job Grade

Category Chairman of UEM and public listed companies, Group Chief Executive, Division President Managing Director, Functional Director Chief Operating Officer, Chief Financial Officer, Project Director, Group General Manager Senior General Manager, General Manager Assistant General Manager, Senior Manager

Chairman, UT5 UT6

RM3,400

RM1,700

UT2 UT4

RM2,900

RM1,500

UT1/UP7

RM2,200

RM1,100

UE9/UP6 UE7-UE8 UP4-UP5

RM1,600

RM800

RM900

RM500

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Meanwhile, for the reimbursement of the maintenance cost, road tax and insurance, the limits shall be similarly reduced to half the existing limits for the respective grades: Maintenance Cost p.a. (RM) Cases not within Current approved policy Road Tax & Insurance p.a. (RM) Current Cases not within approved policy

Job Grade

Category

Chairman, UT5 UT6

UT2 UT4

UT1/UP7

UE9/UP6 UE7-UE8 UP4-UP5

Chairman of UEM and public listed companies, Group Chief Executive, Division President Managing Director, Functional Director Chief Operating Officer, Chief Financial Officer, Project Director, Group General Manager Senior General Manager, General Manager Assistant General Manager, Senior Manager

10,000

5,000

10,100

5,100

10,000

5,000

6,600

3,300

7,500

3,800

4,900

2,500

5,000

2,500

3,700

1,900

3,000

1,500

2,100

1,100

The reimbursements for fuel reimbursement shall remain unchanged, i.e. actual based on receipts. 27.6 Additional guidelines to be noted: i) Notwithstanding the above, in the case of employee who are already on the car allowance scheme and are promoted to the next grade with higher entitlement, they will continue to be eligible to maintain their existing allowance and reimbursement limits (the grade before promotion) for a period of 6 months, whilst they source for a car in accordance to the set criteria for their new grade. This is proposed as it would not be motivating to the employee if immediately after promotion, their benefits are reduced and also in line with the existing practice whereby a employee on the company car scheme is allowed to continue to drive their existing car until a new car of the higher model, where applicable, is provided to them or they opt for the car allowance scheme.

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ii)

The same shall not apply to cases of employee who wish to opt for the company car scheme in line with the objective of encouraging all employee to opt for the car allowance scheme. In the case whereby the company is unable to provide a company car, the above new guidelines are only meant to be an interim measure. The company should attempt to provide the car within a reasonable period but where it chooses not to provide one due to financial reason, the employee should be informed accordingly to opt for the car allowance scheme. For employee purchasing a vehicle other than the national car, the equivalent value is based on the price of a new car and not the purchase price. The reimbursements for fuel for the designated vehicles which are not within the approved policy shall be based on actual amount incurred with original receipts (duplicate/photocopy receipts will be rejected) based on the prevailing rate for premium petrol type RON 97 or to reimburse the Company for the difference if they wish to use higher priced petrol. Other terms: Employees on the car allowance scheme shall not be allowed to utilize the Companys pool vehicle except on emergency cases. Where the employee is allowed to use the pool vehicle due to emergency reason, e.g. theft, repairs, etc, for a period exceeding fourteen (14) consecutive days, the allowance and related reimbursements shall be suspended until the pool vehicle is returned to the Company. The suspension of the car allowance benefit shall commence from the fifteenth day of using the pool vehicle. Employees on the car allowance scheme shall use their designated vehicle for all official trips and shall not be eligible for any claims whatsoever, except toll and parking charges incurred on Company business purposes. The Companys existing policy on allocation of pool vehicle for operational purpose to employee in other lower grades shall remain. Employees on the Company car or car allowance scheme who wish to use higher priced petrol will only be reimbursed up to the prevailing rate for premium petrol type RON 97 or they will have to reimburse the Company for the difference if they are using the Companys petrol/corporate credit card for payment of fuel. Reimbursement for fuel is meant for one designated vehicle only. Employees who have ceased employment shall be required to reimburse the Company for any amount exceeding their entitlement for road tax, insurance premium and maintenance cost for the duration of their service in the year.

iii)

iv)

27.7

27.8 a)

b)

c) d)

e)

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28.0

REVIEW OF POLICY ON PROVISION OF HANDPHONES 28.1.1 All Employees in the following grades UE6/UP3 to UT6 shall be eligible for a handphone subsidy as part of their terms and conditions of service. 28.1.2 The Company may also assign employees on other grades with a handphone depending on job requirements as decided by the respective Managing Directors, Chief Operating Officers or Heads of Companies. 28.2 Subsidy for purchase of handphone Amount of Subsidy (including registration and other related costs subject to the following limits) RM1,000 RM750 RM500 RM250

Grade/Category

UT1/UP7-UT6 UE8/UP5-UE9/UP6 UE6/UP3-UE7/UP4 and Heads of Departments not in the above grades Other categories based on job requirements

28.2.1 Employee who are eligible for the above subsidy shall purchase a handphone, including PDAs (Personal Digital Assistants) with handphone capabilities, of their choice and seek reimbursement from the company by submitting the necessary receipt. Employee may purchase a handphone of any value but the company shall only reimburse the employee for the actual cost subject to the above limit. 28.2.2 All official calls and monthly fee will be borne by the company. Employee of grades UE6/UP3 UT6 will also be entitled to personal calls up to RM50 per month which will be declared in the EA Form at year end. 28.3 Tax 28.3.1 An amount of RM600 per annum shall be declared as benefit-in-kind in the annual EA Form for all employee provided with the handphone subsidy, except for those categories of employee whereby they are reimbursed for official calls only. In addition, the actual subsidy for the purchase of the handphone will also be declared in the EA Form in the year the subsidy is paid. 28.4 Frequency of subsidy 28.4.1 Employee whose current company handphone is less than 3 years shall only be eligible to convert to the subsidy scheme after the 3 years period. The frequency of subsidy will be every 3 years from the last date of disbursement of the handphone subsidy. The existing company handphone of employee who are eligible for the subsidy shall be returned to the company.
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28.4.2 The employee who have been granted the handphone subsidy shall be responsible to replace or repair the handphone at his/her own cost in the event the handphone is lost or damaged before the expiry of the 3 years period. The 3 years frequency shall apply even in the case of employee being transferred within the Group. 28.5 Registration and line 28.5.1 The handphone must be registered under the employees name. However, where it is a supplementary line, with the main name being the name of family members, this may be allowed with proper justification. In such cases, the employee must also ensure that the line provider is able to provide separate billing for the different lines for purpose of determining the actual cost of the supplementary line for the employee. 28.5.2 Employee may opt to register their line with any service provider, with the condition that the line must not be a pre-paid line as it does not provide itemised billings (for purpose of reimbursements for official calls). 28.5.3 Employee may opt to retain their existing line registered in the companys name but the necessary transfer should be done and any cost incurred shall be deemed as part of the total subsidy to be paid. 28.6 Resignation 28.6.1 In the event the employee resigns within a period of six (6) months from the date of disbursement of the subsidy, the employee shall be required to reimburse the company 50% of the amount of subsidy paid. 28.6.2 The employee shall not be required to reimburse any amount if he/she has served the company for more than 6 months after the date of disbursement of the subsidy. 28.7 Others 28.7.1 Employee are required to ensure that the company is notified at all times of his/her telephone number and any subsequent changes. 28.7.2 The employee is also required to ensure that the phone is in proper working condition at all times to ensure that the purpose of providing the handphone subsidy is served, i.e. that the employee is contactable.

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29.0

OVERSEAS ALLOWANCE 29.1 Definition of Duration of Assignment Overseas duties are classified under three (3) categories as follows: 29.1.1 Normal Overseas Travel - going overseas to attend seminar, meeting, study visits with a duration of normally around one (1) week. 29.1.2 Short Term Assignment being sent overseas to carry out specific assignments, either on a week or month to month basis but for a maximum duration of six (6) months. 29.1.3 Long Term Posting taking up job positions for duration of six (6) months and above and when employees are allowed to relocate his family. 29.2 Allowances Guidelines The allowances and benefits for the three categories of overseas duties are as follows: No I) Categories Normal Overseas Travel Short-Term Assignment Allowances Based on the current Employee Terms and Conditions of Service relating to overseas duty. i) Actual hotel rates as per receipt or 50% of average local hotel rates ii) Actual subsistence as per receipt or actual reasonable amount. iii) Other approved benefits as contained in the Terms & Conditions of Service. Overseas Allowances and Benefits as provided for in this clause.

II)

III)

Long-Term Posting

29.3

Basis For Determination Of Overseas Allowance For Long-Term Assignments (6 Months And Above) For payment of overseas allowance to employee on long-term assignment, i.e. overseas posting involving a period of 6 months and above, the allowance payable shall be based on the following 3 components:

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Component Cost of Living Allowance Locational Ranking Allowance Incentive Allowance

Rate Based on a % of basic salary subject to a step ladder method with decreasing rate for the first RM5,000, next RM5,000 and the remaining sum of the employees basic salary and to be determined depending on location. Based on a % of basic salary and to be determined depending on location. 15% of basic salary, irrespective of location, subject to a minimum amount of RM750.

For employee who are on short term overseas assignment for a period of less than 6 months but more than 2 weeks, will be paid a short term allowance based on a certain percentage of their monthly basic salary on a prorated basis depending on the actual days of assignment. The rate to be used will be dependant on the location of assignment. 29.4 Tax Implications 29.4.1 An employee serving overseas should not be liable for any additional tax than what he would have to bear when he was in Malaysia. As such, any additional tax that he has to pay in the host country shall be fully borne by the Company. 29.4.2 In countries where there is a Double Taxation Agreement with the exemption of expatriate income being part of the provision, then employees shall be liable to the Malaysian income tax. 29.5 Relocation Allowance 29.5.1 Employees shall be entitled to a one-off Relocation Allowance at the commencement and completion of the overseas posting. This allowance will be RM3,000 for married employee (accompanied by family members) and RM2,000 for single employee. 29.5.2 For an employee who wishes to keep his personal effects in his hometown/kampung when he is posted overseas, the Company shall bear the cost of transport from his place of residence to his hometown/kampong subject to a cargo size of one 8-ton lorry or one railway container. 29.5.3 The employee and his family members shall be entitled to similar class of overseas travel he is entitled to under the prevailing Companys Terms and Conditions of Service. 29.5.4 Employees can claim excess baggage not exceeding the following:Employee and spouse Dependent children 20 kg each 10 kg each

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29.5.5 The transportation of personal and household effects shall be subject to the following:Description Single Family (Employee, children) By Sea 6.0 cu.m and 10.0 cu.m By Air Cargo (max) 180 kilos 250 kilos

spouse

29.5.6 The Company will pay the cost of packaging, handling of shipment, insurance, storage charges and other related transportation of personal and household effects to and from the host country. 29.5.7 The Company will pay the customs, import and export duties levied on personal and household effects, excluding personal car. 29.6 Clothing Allowance 29.6.1 The Company shall provide Clothing Allowance to employees on long term posting, once every three (3) years. The ordinary rates according to the climatic conditions of the host country and the employees marital status are as follows: Countries Employee Category Married* (RM) 3,500 3,000 2,500 2,100 Single (RM) 2,500 1,800 1,800 1,500

Extremely cold (e.g. Moscow, Warsaw, Beijing, I & II Ottawa) III Moderate/Temperate I & II III * Accompanied by family members 29.7 Housing Allowance

29.7.1 Employees will be provided with appropriate accommodation by the Company in the host country. If for any reason the Company could not provide accommodation, the Company will reimburse the employee for actual accommodation expenses incurred not exceeding the local rental charges. 29.7.2 As the Overseas Allowance includes utility costs, employees shall bear their own utility bills. If the rental charged by the house owner includes utility costs, the employee shall bear 10% of the cost of the rental. 29.7.3 If the employee and his family have to stay in a hotel while looking for a suitable house, he shall be entitled to claim 100% of the actual hotel expenses (excluding food and personal expenses) up to four (4) weeks after arrival.

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29.8

Passage Benefits 29.8.1 Annual Home Passage Employees are entitled to an annual home passage after serving 10 months continuously in the host country as follows:Single One return air fare to Malaysia; or One return air fare to another country equivalent to air fare to Malaysia One return air fare to Malaysia; or One return air fare for spouse and dependent to visit employee in host country One return air fare for employee and his accompanying family members to Malaysia or to visit another country equivalent to air fare to Malaysia

Married, not Accompanied by family member Married, Accompanied by family member

29.8.2 Compassionate Home Passage Employees and his family members are entitled to air passage to Malaysia in the case of serious illness or death of employees immediate family members (as defined in the Terms & Conditions of Service). The final decision for approval on the home passage is at the discretion of the Management. 29.9 Leave 29.9.1 General An employee is entitled to the same number of annual leave he is entitled to, based on the prevailing Companys Terms and Conditions of Service. This also applies to Malaysias National Day and The Yang Dipertuan Agongs Birthday and all national public holidays as set by the Government of the host country, provided they do not exceed fifteen (15) days in a calendar year. 29.9.2 Overseas Compassionate Leave An employee is entitled to Overseas Compassionate Leave not exceeding seven (7) days per occasion and subject to a maximum of three (3) occasion in a year in the case of serious illness or death of an immediate family member ( as defined in the Terms and Conditions of Service). It is non-cumulative.

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29.10

Medical Benefits 29.10.1General Employees and their accompanying family members shall be entitled to medical treatment, outpatient and hospitalization, for similar types of illnesses and at equivalent standard of medical institutions as those covered and provided for the Companys Malaysian employees. 29.10.2Medical Insurance In countries where medical insurance scheme is compulsory when seeking medical treatment, premiums for such medical insurance shall be borne by the Company. In addition, the Company may bear the cost of treatment for those types of illness not covered by the insurance policy or those additional cost above the maximum allowed in the policy. 29.10.3Medical Treatment Outside the Country Employees and their accompanying family members may be allowed to receive appropriate medical treatment in Malaysia or the nearest approved country, if the standard medical treatment is not available in the host country. Subject to Managements discretion, such medical treatment may only be considered when the patient is subjected to life threatening disease/illness and duly recommended by a qualified medical specialist.

29.11

Education Assistance 29.11.1General The Company provides an education assistance scheme for school going children of employees serving overseas. The children shall be provided with equivalent standards of education as their peers in Malaysia. 29.11.2School Fees Assistance Employees are allowed to claim school expenses for children between the ages of 5 to 18 years. This includes registration and school fees. The Company shall not bear expenses related to club or societies, library, sports, books and transport. The quantum of the expenses reimbursable covers both the primary and secondary school. The guidelines are as follows: Primary USD3,000 per year/student 75% of the fees whichever lower USD5,000 per year/student 75% of the fees whichever lower or is or is

Secondary

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29.11.3Free Passage to Visit Parents or Child Employees who have children schooling in Malaysia are entitled to either of the following: i) ii) free passage for child/children to visit parents in host country once a year; or free passage for employee or spouse to visit child/children who are schooling in Malaysia once a year.

This benefit is not allowed to be carried forward to the following year. 29.12 Allowances While On Duty 29.12.1Hotel Accommodation and Subsistence Employees who are required to perform outstation assignment (beyond 50km) while in the host country are eligible to claim expenses on hotel accommodation and subsistence as follows: Employee Categories Hotel Accommodation Subsistence

Category I & II Deluxe Single as per Reasonable receipt expenses based on receipt Category III Standard Single as Reasonable per receipt expenses based on receipt Employees are not encouraged to spend the night other than at established local hotel and as such, claims for lodging (without receipt) are not provided for. 29.12.2Transportation The Company shall bear the cost of transport expenses based on the following: Employee Category Category I Transport Company Car on personal to holder basis. The provision of the driver will be on a case-to case basis Company Car on Job requirement basis Expenses Fully maintained by Company.

Category II

Category III

Own car, public transport and rental car

Fully maintained by Company. Employee to reimburse fuel for personal use. Actual claims for business assignments based on receipt.
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29.12.3Entertainment Expenses Employees in Categories I and II are entitled to claim actual reasonable expenses based on receipt for entertaining business clients. Employees are encouraged to use Corporate Charge/Credit Card provided for by the Company. 29.13 Other Related Allowances 29.13.1Study Allowance for Foreign Language Employees are encouraged to take up a course in the local language to facilitate the promotion of Companys business interest in the host country. Company shall bear the actual cost of the course for the level of language study suitable for basic communication. 29.13.2Additional Insurance Coverage Company may increase insurance coverage, namely for Group Term Life and Group Personal Accident to 60 times last drawn basic salaries for employees on overseas posting.

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30.0 SABAH, SARAWAK AND LABUAN ALLOWANCES 30.1 Definition of Duration of Assignment The definitions of the duration of the assignment are classified under three (3) categories as follows: 30.1.1 Normal Assignment - going to Sabah, Sarawak or Labuan (SSL) to attend seminars, meetings, study visits with a duration of normally around one (1) to fourteen (14) days. 30.1.2 Short Term Assignment for a duration of 15 days to a maximum duration of six (6) months. 30.1.3 Long Term Posting for a duration of six (6) months and above and when employees are allowed to relocate his family. The prevailing Terms & Conditions of Service will apply for those employee who are on Normal Assignments. These SSL Allowances will apply for those on Short Term and Long Term Posting. 30.2 Employee Categories For effective administration of the SSL Allowances, employee are classified under three (3) categories: Categories Category I Category II Category III Current Grade UE6/UP3 UT6 UE4/UP1 UE5/UP2 UE1 UE3 Example of Overseas Job Positions Country Manager Project Director Project Manager Senior Engineer Engineer Quantity Surveyor Exec Secretary Management Assistant Secretary Driver / Despatch Office Assistant

Category IV

UN1 to UN5 and UNT1 to UNT4

30.3

SSL Allowance Employees who are posted to Sabah or Sarawak are eligible for a monthly fixed allowance other than his normal basic monthly salary. The allowance are as follows:

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i) Short-Term Assignment (15 days to 6 months) Category Allowance Housing or

Category I RM1,600 per Provided by Company (UE6/UP3 month employee can seek own UT6) Category II RM1,500 per Accommodation (UE4/UP1 month actual rental UE5/UP2) Category III (UE1-UE3) Category IV (UN1 to UN5 and UNT1 to UNT4) and

claim

RM1,400 per Up to a maximum of RM2,000 month per month RM1,200 per Up to a maximum of RM2,000 month per month

ii) Long-Term Posting (above 6 months) Status Married* Category I RM2,700 Category II RM2,500 Category III RM2,200 Category IV RM2,000

Single

RM2,300

RM2,100

RM1,800

RM1,600

* Applicable to married employee who are accompanied by family members The allowances are applied as follows: Original Place of Work Peninsular Malaysia Sabah and Sarawak Labuan Transferred To Sabah/Sarawak/ Labuan Labuan Labuan Allowance 100% of Allowance 50% of Allowance Nil

Note: No allowances are applicable for transfers back to their original place of work except for relocation costs 30.4 Tax Implications SSL Allowances are defined as fixed allowances and are therefore taxable. Employees shall bear the full cost of taxes.

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30.5

Relocation Allowance Only employee on Long-term Posting will be entitled to the one-off Relocation Allowance (as per the Terms and Conditions of Service) as follows: UE6/UP3 UT6 UE1 UE5/UP2 UN1 to UN5 and UNT1 to UNT4 RM1,000 (with family) RM500 (single) RM750 (with family) RM400 (single) RM500 (with family) RM300 (single)

This allowance is not applicable for those on Normal and Short-Term Assignments. 30.6 Moving Expenses The Company will reimburse actual reasonable moving expenses for employee on Long-Term Posting (as per the Terms and Conditions of Service) as follows: UE1 UT6 UN1 to UN5 and UNT1 to UNT4 Actual, up to a maximum of RM5,000 Actual, up to a maximum of RM3,000

This allowance is not applicable for those on Normal and Short-Term Assignments. 30.7 Home Trips Single Married employee with family not following Married employee with family following 30.8 Other Benefits All other benefits like medical, insurance, leave, etc will be as per the Terms and Condition of Service. Twice a year Twice a year Once a year

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31.0 CHILDREN EXCELLENCE AWARD The Company may at its discretion reward an Employees children based on the result from examinations i.e UPSR, PMR, SPM and STPM. The awards and allowances are as follows:Claims for the reimbursement must be supported with the examination results.

Awards

Allowance

UPSR 5As

RM200

PMR 7As

RM300

SPM 7As

RM500

STPM 3 Principal As

RM600

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PERFORMANCE MANAGEMENT SYSTEM (PMS)


1.0 GENERAL In line with the UEM Group strategic focus on performance improvement, Opus Group Berhad subscribes to the Performance Management System (PMS) in managing the performance of its employees. The PMS shall provide the framework which: a) b) c) d) e) f) g) encourages employees at all levels of the organization to share responsibility to help meet business needs and objectives. Enables leaders to offer support by providing coaching and information. Helps employees track their own performance and seek their superiors advice for achieving performance objectives. Prompts leaders to identify performance trends and adjust strategies to reflect changing business trends. Trains all employees in the skills that help them effectively manage their own performance. Allows ease of employee transfer within and between the UEM Group. Links to other systems. These include selection, career development, compensation, training and development, internal staffing and succession planning.

2.0

WORKING POLICIES OF PMS a) b) c) The phases of performance planning, tracking, feedback and review will be conducted for all employee. Employee Development is a mandatory Key Result Area (KRA) for all employee who manage the performance of others. Progress review will occur throughout the year at timed intervals agreed upon by the immediate superior and the job holder. There should at least be one documented progress review. All immediate superiors with subordinates reporting to them will attend the Performance Management Workshop either organized in-house or at the UEM Learning Centre (ULC). These workshops will provide immediate supervisors with the necessary skills to manage the performance of their subordinates. The Group will only consider annual increments, bonuses, promotions, confirmation or upgrading exercises for both appraisers and appraisees who have completed the Performance Management cycle. Identification of KRAs, Objectives and Dimensions and the Performance Review will be conducted face-to-face with subordinates using the prescribed forms. During the Performance Review, appraisers will confine their discussions to the KRAs, Objectives and Dimensions achieved during the period under review.

d)

e)

f) g)

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CODE OF CONDUCT AND DISCIPLINE


1.0 FOREWORD TO EMPLOYEES This Code of Conduct (the Code) contains policies and guidelines relating to the standards and ethics that all employees are expected to adhere to in the course of their work. It is designed to maintain discipline and order in the workplace among employees of all levels. It also sets out the circumstances in which such employees would be deemed to have breached the Code and the actions that can be taken against them if they do so. Where an employee is a member of a recognized union, the terms of the Collective Agreement shall apply where they differ from the provisions contained in the Code. The specific procedures on the application of the policies referred to in the Code will be spelt out in the Companys policies and procedures manual. The Company reserves the right to amend, delete or augment any provision in this Code as and when it deems necessary. All policy changes shall be approved by the Board of Directors. 2.0 DEFINITIONS The following definitions shall apply unless otherwise expressly stated in the Code: Company Confidential Information Opus Group Berhad, its subsidiaries and associate companies. Any information pertaining to the Company, its business or any other matter which:a) the Company reasonably believes that release of the information will be injurious to it or advantageous to its trade rivals. b) the Company reasonably believes that the information is not already made public; and c) the above two (2) criteria are to be judged in the light of usage and practice in the industry in question. Employee A person under the employment of the Company including permanent, contract and temporary employment. Where an employee is employed under a contract, the terms and conditions of his contract shall apply where they differ from the policies in this Code. Human Resource Department of the Company in which the relevant employee is under employ. Alcoholic beverages, controlled substances and dangerous drugs except for those made available to an employee under a doctors prescription. Parents, brothers, sisters, grandparents, parents-in-law of the relevant employee.

HRD Prohibited Substances Relatives

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Spouse

An employees legal wife or husband.

All reference of the masculine gender shall include the feminine gender unless otherwise expressly stated. All words importing the singular number shall include the plural number and vice versa. 3.0 PROFESSIONAL CONDUCT All employees shall observe and adhere to the highest standard of professional conduct. They should, in all respects and at all times, conduct themselves with integrity, propriety and decorum and must not under any circumstance, commit any act or omission that would bring damage to the Company, its property, reputation or general interests. Employees are expected to have respect and tolerance for cultures and religions other than those of their own whether locally or overseas and shall conduct themselves in accordance with accepted standards of behaviour. The Company does not tolerate any form of abusive or coercive behaviour whether verbal or otherwise, physical violence or sexual harassment among its employees. 4.0 ATTENDANCE / PUNCTUALITY All employees are required to observe the stipulated working hours of the Company. If an employee is unable to commence work on time on any particular day, he must inform his immediate superior by telephone at the earliest available opportunity and in any event no later than 12 p.m. on that same day. Late attendance by an employee will be recorded in the respective employees attendance record. If an employee is late for work on more than three (3) occasions in a month an appropriate caution letter may be issued to the employee by the HRD. If the employee persists in late attendance and without good reason, he may be subject to disciplinary action at the discretion of the HRD. For the purpose of this section, good reason shall be construed as a reason which is not, in the opinion of the HRD, frivolous, trivial, flippant or inconsequential. An employee who is unable to attend work because of illness shall submit his original medical certificate to the HRD on the day he returns to work. Unless an employee is on medical leave, he will be required to apply for a full days leave if he intends to be absent from work for more than (3) hours on that particular day. An employee must not, without good reason, be continuously absent from work for more than two (2) consecutive working days without having obtained prior approval for leave from his relevant superior. If the employee was not able to obtain such prior approval, he must inform his superior or the HRD of the reason for such absence at the earliest opportunity during such absence. 5.0 APPEARANCE All employees must be suitably attired and groomed at all times at the work place, appropriate for their respective positions of employ. They are expected to maintain a dignified appearance and be neat, presentable, clean and tidy.

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For non-uniformed employee, the following dress code will apply: Male employees: Male employees must wear neck-tie on week-days, maintain neat hairstyles at all times and the length of their hair should not exceed the collar. Tshirt, jeans, shorts denim based or leather wear are not allowed. Female employees: Female employees are expected to dress in smart, comfortable and sober attire suitable for office wear. Tailored and smart pants/trouser suits are allowed. T-shirt, jeans, tight-fitting pants or casual pants (lycra, velvets, corduroys, denim based or leather wear inclusive) or culottes are strictly not permitted. Foot Wear: Slippers, sports shoes and sandals, including open-toed footwear are not allowed during office hours. Wearing of slippers on medical grounds or in the course of ablution/observing prayers (in the case of Muslims) may be allowed. Corporate Uniform: This must be worn on the designated day. Uniformed employee are expected to wear their respective uniforms at all times in the work place during working hours. 6.0 ALCOHOL AND DRUG ABUSE Prohibited substances may not be brought, kept, consumed, sold, purchased or dealt with in any way on the Companys premises. Employees shall not report for work or carry out their duties in the course of their employment under the influence of alcohol or drugs of all or any of the above substances. If an employee is taking medication which renders him unable to carry out his duties in a manner that will jeopardise the safety of himself and/or the other employees, he must inform his relevant supervisor or the Head of Human Resource Department accordingly. The Company may from time to time, at its sole discretion require employees to be randomly tested for the use of illegal drugs and substances. Refusal by the employee to undergo such a test may warrant appropriate disciplinary action to be taken by the Company as it deems fit. If an employee knows or suspects that an employee is using, taking, consuming or dealing with any prohibited substances, he must inform his immediate supervisor or the Head of Human Resource Department immediately. The Company also encourages employees to bring their personal drinking or drug problem to the attention of their supervisor (who shall inform the Head of Human Resource Department accordingly without delay), or the Head of Human Resource Department directly. The Company, may at its sole discretion and without prejudice to its rights of dismissal, render assistance to an employee who voluntarily submits himself for treatment for such a problem including rehabilitation at an appropriate centre for treatment. The HRD shall be responsible for determining the details of such misconduct or problem and the appropriate action to be taken against the said employee, which may include, without limitation, reprimand, suspension or dismissal. The HRD may, if it considers appropriate in the circumstances, submit a report of such misconduct to the management together with its recommendation of the appropriate disciplinary action to be taken against the said employee.

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7.0

CODE OF ETHICS A Commitment (i) All employees shall, in the course of their employment with the Company and in carrying out their duties and responsibilities in respect thereof, diligently and to the best of their ability perform such responsibilities including responsibilities as may from time to time be assigned or designated to them. All employees are expected at all times to promote and advance the interests of the Company and shall not do anything to bring disrepute to the Company. All employees shall obey, comply with and observe rules, regulations, procedures, practices, orders, directives and policies of the Company, whether expressed or implied in law or by custom and practice.

(ii)

(iii)

B Confidentiality (i) No employee is permitted whether during or after termination of their employment with the Company, to discuss or divulge confidential information relating or pertaining to the Company directly or indirectly to any person or Company unless:(a) such information has previously been made public knowledge; or (b) upon express direction or with express approval of the Company; or (c) required, compelled or obliged to do so by law. (ii) Employees should not discuss whether among themselves or with others, within the workplace or outside the Companys premises, confidential information regarding the Company, its business partners, its customers or clients , its employees or any other confidential information except in the course of carrying out the Company's business. It is the Companys policy that any information pertaining to the Company in any way whatsoever and which is not generally available to the public shall be treated with the utmost confidence. Such information must not be shared or used by any employee whether directly or indirectly to influence an investment decision in connection with the purchase or sale of securities. The first obligation of any employee who receives a subpoena or other request seeking the disclosure of confidential information pertaining to the Company is to contact his immediate supervisor or Head of Human Resource Department for guidance.

(iii)

(iv)

C Insubordination and Inefficiency An employee shall not commit any act of wilful refusal, insubordination or disobedience of any lawful and reasonable instruction of his supervisor/manager including refusal to perform work assigned, being inefficient and deliberately slowing down of work causing the quality and/or the quantity of work to be adversely affected.

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D Press Releases and Public Statements An employee should inform his immediate supervisor if a member of the media approaches him for any information, statement or opinion concerning the Company. The immediate supervisor shall provide guidance to the employee on the appropriate response to the medias request. An employee shall not make any public statement on the policies or decisions of the Company whether orally or in writing or in any form whatsoever nor shall he circulate or cause to be circulated any such statement. E Public Appearance as a Guest Speaker or Panel Member Any employee who has been invited to appear as a guest speaker in a public forum must, if he intends to make such appearance, submit the details and/or the topic(s) of his proposed speech to his immediate supervisor. The immediate supervisor shall in turn submit the same to the management for their consideration. An employee may only make such appearance if prior approval has been obtained. F Publications Employees are not permitted to publish or distribute in any written or printed form, articles, books, periodicals, leaflets, brochures etc containing information relating to the Company without prior written approval of the Company. G Conflict Of Interest An employee cannot during his employment with the Company, engage directly or indirectly in any other business or occupation whether as principal, agent, servant or broker while still in the employ of the Company. He is also not permitted to engage in any activity, which can be detrimental, directly or indirectly, to the interest of the Company. An employee may acquire or hold shares in any quoted public Company. However, he must seek prior approval from the Company if he intends to acquire substantial shareholding(s) in any such Company (as defined in the Companies Act, 1965) or hold directorship(s) in the same Company. An employee is not allowed to participate in or influence the purchase of goods and services from any Company or person in which or through which that employee has or will obtain a direct or indirect interest or benefit. Upon receipt of the Code, all employees must declare all such interests as described in the Declaration Form for Conflict of Interests (Appendix 1) and particular attention must be paid to the notes thereto, which explain the types of interests that must be declared. Any proposal made by any employee for an unsolicited offer to purchase any or all of the equity interests of any of the Companies in the Group will be viewed as an event which may give rise to a conflict of interest if such employee continues employment with the Group. Accordingly, such employee shall tender his resignation immediately.

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H Gifts or Favours It is the policy of the Company that no employee or any member of his immediate family will accept any form of gifts or favours from contractors, suppliers, clients/customers, or any other party having business dealings with the Company. However, in such circumstances where it is customary to do so, employees shall be permitted to accept such gifts of nominal value or favours provided that such gifts or favours are not extended and /or accepted for the purpose or with the intention of :(a) (b) (c) influencing any present or future act or decision by that employee. inducing such employee to perform or omit any act in violation of his proper duties and responsibilities. inducing such employee to use or direct any other person to use his influence with a government, or any of its representatives, divisions or agencies to affect or influence any act or decision of any such government, representative, division or agency and in any or all of the above cases, for the purposes of expediting, benefiting, prejudicing or affecting in any way whatsoever whether directly or indirectly the business dealings or relationship of the gift giver with the Company.

For the purpose of this section, Nominal Value' of a gift shall be defined as the sum of the gift(s) having the aggregate monetary value of not more than Ringgit Two Hundred and Fifty only (RM250). Employees shall report to their respective Head of Department all gifts or favours received which exceed the nominal value. All employees shall, if in doubt as to the nature or purpose of the gift or favour consult the Head of Human Resource Department who shall decide, either in consultation with or through his own accord, the course of action in respect of such gift or favour. Gifts which cannot be accepted by the employee shall be:(i) (ii) returned to the donor; or if such return is not possible or impracticable, retained by the Company for distribution to recognised charitable organisations, the Companys Sports and Recreational Club or for general distribution to the Companys employees.

Entertainment Employees shall not accept any gratuitous entertainment from any of the Companys clients, customers, suppliers, contractors or any party with whom the Company has business dealings with unless such entertainment is or is able to be reciprocated by the employee:(i) (ii) in his personal capacity; or by obtaining reimbursement from the Company as part of the Company's business entertainment expense.

In accepting all such entertainment, the guidelines set out in paragraph (H) in respect of acceptance of gifts or favours shall apply.

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Personal Solicitation The Company discourages any personal solicitation by employee members during working hours as such solicitations would normally disrupt business activity and work routines. Employees are not permitted to sell, distribute or act as agent for the sale or distribution of any type of food or merchandise within the office premises whether during or outside office hours.

K Graft and Invitation to Graft An employee shall not in any manner or form offer on behalf of the Company or receive an offer of graft or a bribe for his own benefit, or the benefit of his relatives or spouse. L Marriage and Transfer In the event of a marriage between employees of the Company within the same department, one partner to the marriage may be relocated to another department. M Relatives The Company discourages the hiring of the family members of an existing employee. The onus is on such employee to declare whether he has any relatives or spouse working in the Company or any Company within the Group. 8.0 SEXUAL HARASSMENT It is the policy of the Company to promote a safe and healthy working environment that fosters mutual respect where individual employees irrespective of status or position are treated with dignity and free from sexual harassment. Employees are strictly prohibited from engaging in any form of harassment, humiliation and intimidation of a sexual nature. Definition of sexual harassment For the purpose of this Code, sexual harassment is defined as: Any unwanted conduct of a sexual nature having the effect of verbal, non-verbal, visual, psychological or physical harassment: (i) that might , on reasonable grounds, be perceived by the recipient as placing a condition of a sexual nature on his employment; (ii) that might, on reasonable grounds, be perceived by the recipient as an offence or humiliation , or a threat to his well being , but has no direct link to his employment. Sexual harassment can occur between individuals of different sexes or of the same sex. Based on the above definition, sexual harassment may be divided into two categories, namely sexual coercion and sexual annoyance.

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Sexual coercion is sexual harassment that results in some direct consequence to the victims employment. An example of sexual harassment of this coercive kind is where a superior, who has power over salary and promotion, attempts to coerce a subordinate to grant sexual favours. If the subordinate accedes to the superiors sexual solicitation, job benefits will follow. Conversely, if the subordinate refuses, job benefits are denied. Sexual annoyance, the second type of sexual harassment is sexually-related conduct that is offensive, hostile or intimidating to the recipient, but nonetheless has no direct link to any job benefit. However the annoying conduct creates a bothersome working environment which the recipient has to tolerate in order to continue working. Sexual harassment by an employee against a co-employee falls into this category. Similarly, harassment by a Companys client against an employee falls into this category. Sexual harassment in the workplace includes any employment-related sexual harassment occurring outside the workplace as a result of employment responsibilities or employment relationships. Situations under which such employment-related sexual harassment may take place include, but are not limited to the following: (i) (ii) (iii) (iv) (v) (vi) at work-related social functions; in the course of work assignments outside the workplace; at work-related conferences or training sessions; during work-related travel; over the phone; and through electronic media

It is essential to emphasise that sexual harassment refers to sexual conduct which is unwanted and unwelcomed to the recipient. It is also a sexual conduct which is imposed on and unsolicited or unreciprocated by the recipient. Forms of sexual harassment Sexual harassment encompasses various conducts of a sexual nature which can manifest themselves in five possible forms, namely: (i) verbal harassment: e.g. offensive or suggestive remarks, comments, jokes, kidding, teasing, sounds, inquiries or discussions about sexual activities or other verbal abuse; non-verbal/gestural harassment e.g. leering or ogling with suggestive overtones, licking lips, holding or eating food provocatively, hand signal or sign language denoting sexual activity, persistent flirting; visual harassment e.g. showing pornographic materials, writing suggestive letters or other written materials, sexual exposure; sexually

(ii)

(iii) (iv)

psychological harassment e.g. repeated unwanted social invitations, proposals for dates or physical intimacy;

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(v)

physical harassment e.g. inappropriate touching, patting, pinching, stroking, grabbing, hugging, kissing, fondling, brushing up against the body, coerced sexual intercourse or sexual assault.

Disciplinary Action Since sexual harassment is a form of misconduct, all employees including supervisors and managers will be subject to disciplinary action up to and including dismissal for engaging in sexual harassment. Employees who make false and malicious complaints of sexual harassment as opposed to complaints that are made in good faith will also be subject to disciplinary action. An independent and thorough investigation in a manner that is as confidential as possible under the circumstances will be carried out on all complaints received alleging sexual harassment. Complaint Procedure Due to the sensitive and personal nature of sexual harassment complaints, the Company has developed a separate complaint procedure to deal specifically with such complaints. Employees who believe themselves to be aggrieved under this policy are strongly encouraged to report complaints of sexual harassment as promptly as possible to the Head of Human Resource Department. Delay in making a complaint of sexual harassment may make it more difficult for the Company to conduct an investigation. 9.0 DISCIPLINARY ACTION Any employee who commits misconduct or a breach of rules established by the Company, shall be subject to disciplinary action. (i) Misconduct Misconduct in employment can be broadly dealt with under three (3) headings namely: (a) Misconduct relating to duty such as carelessness, fraud, misappropriation, insubordination etc; (b) Misconduct relating to discipline such as fighting, assault, quarrel, gambling, damage to Company property, drug abuse etc; and (c) Misconduct relating to morality such as committing an indecent act, sexual advancement, pornography, keeping or distributing indecent or pornographic literature at the workplace etc. Appendix 2 provides a list of some common acts of misconduct. (ii) Inquiries A panel appointed at the discretion of the Company shall conduct all inquiries. The inquiry panel shall not include a member(s) whose presence may affect the impartiality of the panel in its conduct of the proceedings and its recommendations.
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The proceedings of an inquiry shall be duly recorded by the panel for submission to the Head of Human Resource Department or to the appropriate higher authority for decision. The Company may suspend an employee on half pay for a period of not exceeding two (2) weeks pending an inquiry. (iii) Action by the Company All disciplinary actions taken by the Company shall comply with the Companys established procedures and current legislation. Where there is any conflict between the two, current legislation shall prevail. Heads of Departments may issue written warnings on the advice of the HRD. All written warnings shall be recorded in the employee personal file. In the event where warning letter/s have been issued within a period of twelve (12) months the employee may be subject to an inquiry to determine further disciplinary action. Depending on the gravity of the offence committed and after due inquiry, the employee may be subject to any of the following punishments: (a) (b) (c) (d) (e) (f) (g) (h) (iv) Dismissal without notice Downgrading Suspension without pay up to a maximum of two (2) weeks. Stoppage/Withholding of increment Withholding of bonus Withholding of promotion Reduction of salary Written Warning

Summary Dismissal The Company reserves the right to dismiss an employee after due inquiry for misconduct including but not limited to dishonesty, insubordination, gross neglect of duty, bankruptcy and criminal conviction, within reasonable time after the misconduct in question without notice, salary or other forms of compensation. This right is in addition to and does not prejudice its other rights under the law.

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(v)

Right of Appeal An employee who has been imposed a disciplinary action shall have the right to appeal in writing within thirty (30) days of the announcement of the decision to the following authorities: Category Employees (UE5/UP2-UT4 grade) Employees (UN1-E4/UP1 grade) Authority Chairman of the Board of Directors Designated Director

(vi)

Grievance Procedure Employees should, whenever possible try to resolve disputes and minor problems amicably and informally between themselves or together with their immediate supervisors. If such informal means do not bring a resolution, an employee may bring to the Head of Human Resource Departments attention any grievance or complaint within fourteen (14) days from the date of occurrence of the event causing or giving rise to such grievance or complaint. The filing of a formal grievance in writing should be done only if such grievances or complaints cannot be resolved through these informal discussions. A member of the HRD shall be assigned by the Head of Human Resource Department to attend to such grievances or complaints and to discuss and offer suggestions for resolution. Due consideration shall be given to all grievances and complaints and the HRD shall make all efforts to resolve them promptly and fairly. The Head of Human Resource Department may at its discretion and depending on the seriousness of the grievances and complaints, bring the matter to the attention of the Managing Director for his consideration.

(vii)

Termination of service (a) (b) (c) Notice of termination of service shall be made in writing and in accordance with the Employees Terms and Conditions of Service. In lieu of such notice, the employee or the Company shall pay a sum equivalent to the salary for the notice period required. An employee shall surrender all Company documents, files, vehicles, keys and other Company property in his possession upon his termination of service in the Company. The employee shall reimburse the Company the value of the replacement cost for any item(s) or the Company property that is lost or destroyed while under his custody.

(d)

(d) The employee shall settle all outstanding liabilities and obligations with the Company before any monies due to him are to be released.

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APPENDIX 1 DECLARATION FORM- CONFLICT OF INTERESTS I refer to the attached explanatory notes outlining the Companys policy on Conflict of Interests and hereby declare that I or my close relative (as defined in the notes) have no interests other than the following:OUTSIDE BUSINESS APPOINTMENTS

OUTSIDE NON-EXECUTIVE DIRECTORSHIPS

FAMILY BUSINESS INTERESTS

OWNERSHIP OF SHARES AND STOCKS Name of Company No of Shares

% Holding

Name of Company

INTERESTS IN OTHER COMPANIES Nature of Interest

% Holding

OTHER INTERESTS

Signature: Name:

___________________ Title of Position: _____________________

Date : _______________ Department/Company: ____________________

____________________

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NOTES
Disclosure The Company wishes to ensure the protection of its legitimate interests whilst imposing minimum limitation on the freedom of action of its employees. However, where a situation exists which involves or appears to involve a conflict of interest, it must be clarified. Accordingly, such disclosure must be made on the Declaration Form. For this purpose, the definition of close relative means the employees spouse(s), parents, children (including adopted or step children), brothers and sisters. An employee would be acting in conflict of interest if; (i) he/she were to accept employment in any other company, firm or organization whether as employee, executive director, active or sleeping partner, adviser, agent, manager, consultant, or in a competing capacity whatsoever either on a part-time or full-time basis whilst still in the current employ of the Company. the employee or his/her close relative were to accept non-executive directorships or become silent partners in entities which are either listed on the Companys lists of authorised contractors or which have contractual or supply or other business arrangements with the Company or any of its affiliate/subsidiary/associate Companies. the employee or his/her close relative were to have an interest in any other company,firm or organisation which has, or is seeking to have business dealings whatsoever with the Company or any of its affiliate/subsidiary/associate Company where there is an opportunity for preferential treatment to be given or received. the employee or his/her close relative were to hold substantial shares and stocks in Companies (as defined in the Companies Act, 1965) that are listed or otherwise or hold directorships in the same Companies which may result in a conflict of interest. the employee were to have interests in any venture, business or dealing either by himself or herself or in partnership with other person(s) which may result in a conflict of interest.

(ii)

(iii)

(iv)

(v)

Insider Dealing and Confidentiality of Information An insider includes:i) ii) iii) iv) all directors and employees who, by reason of their employment have price-sensitive information available to them close relatives of such employees beneficial trusts of such employee or his/her close relative other persons acting on behalf of, or in conjunction with, such employee or his/her close relative

Price-sensitive information is strictly confidential to the employee concerned alone and may not be discussed or divulged to another person except in an official capacity.
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In this context, any information is classified as price-sensitive which, if known to an outsider, is likely to have an effect on the price of a Companys securities. This includes information on profitability, dividends, cash flow, mergers, acquisitions, major capital outlay, contracts, joint venture agreements, negotiation with Government or other corporations. An employee is prohibited to give or release to any party unless required in furtherance of his official duties or compelled to do so by law, any data or information of a confidential nature concerning the Company or any of its affiliate/subsidiary/associate Companies such as that relating to decisions, plans, earnings, financial or business forecasts, proprietary rights of the Company in any intellectual property invention, patent or competitive bids or otherwise use such information which is not generally known to the public for personal advantage and or which use is not in the best interest of the Company. Updating of Disclosure All employees are required to notify the Company within one (1) month of any change/s to the facts disclosed in the Declaration Form so that the records can be appropriately updated. Breach The Company shall institute an inquiry where there is suspected breach of any of the guidelines on Conflict of Interest in order to establish the facts and once established, severe disciplinary action including the immediate termination of service and/or legal action, may be taken.

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Appendix 2
Acts of misconduct include but are not confined to the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Theft/Pilferage/Misappropriation or attempt of the same of the Companys money or property or other employees money or property within the Companys premises Fraud, dishonesty, falsification or attempt of the same in connection with the Companys business, money or property Cheating the Company Fighting with or assaulting, abusing or being violent towards another employee or authorised visitor on the Companys premises or threatening the same Prosecuted or charged with criminal offence Soliciting or accepting bribes or any illegal gratification Participating in unauthorised financial transactions within the Companys premises Participation in illegal strikes Instigating industrial action among employees against the Company Picketing in the Companys premises except where permissible under the law, agreement or award Inciting other employees to participate in illegal strikes in contravention of the provisions of any law or rule having the force of law Wilful insubordination or disobedience whether alone or in combination with others to any lawful and reasonable order of a superior Conflict of interest Breach of fiduciary relationship Spreading malicious rumours about the Company Gambling whether involving money or otherwise, in the Companys premises Gross negligence and neglect of duty Interfering with the record of his attendance or of any other employee or falsification, defacement or destruction of any record of the Company Sleeping while on duty Possession of illegal weapon or lethal weapon on the Companys premises Riotous, disorderly or indecent behaviour on the Companys premises. Smoking in prohibited/restricted areas

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23. 24. 25. 26.

Illegal substance or drug abuse Disclosing confidential information Driving or unauthorised use of the Companys vehicle without prior authorisation All forms of harassment including but not confined to unwelcome verbal or physical advances and sexually, racially or otherwise derogatory or discriminatory statements or remarks Habitual late coming or late attendance Habitual negligence Commission of any subversive act to the discipline of the Company or general behaviour Commission of any private act that brings disrepute, embarrassment or affects the legitimate interest of the Company or ruins the image of the Company Habitual breach of any Company order or any law applicable to the establishment of rules made thereunder Withholding overtime at a critical time to bring pressure on the management Making material misstatement in job application, loan application or declaration Unauthorised use of time cards Possession, sale or distribution of unsuitable, indecent or pornographic materials Committing an immoral act within the Companys premises Failure to report serious infectious or contagious illness or disease to the Companys medical Officer or HRD Forging or defacing medical certificates or other official documents to defraud the Company Conduct which is likely to cause injury or endanger the life or safety of another person within the Companys premises Trespassing or forcible occupation of the Companys premises or prohibited areas Illegally challenging Company to dismissal Bypassing the proper channel of communication Refusal to accept any communication served either in accordance with the Code of Conduct or in the interest of discipline Misrepresentation of the Company to others Participation in illegal gatherings or activities in the Companys premises or abetting, inciting or instigating the same
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27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.

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46. 47. 48. 49.

Serious pecuniary indebtedness affecting the public image of the Company Making public statements against the interest of the Company Publishing or writing of books against the interest of the Company Leaving work place during working hours without permission of the immediate supervisor or overstaying sanctioned leave without sufficient grounds or proper satisfactory explanation or without informing or attempting to inform his employer of the excuse or reason for such absence. Absenteeism Quarrelling or fighting or committing nuisance at the work place Misdemeanours Carelessness or wilfully causing damage or loss to the Companys property or goods Deliberate damage and interference with or contamination of factory processes, material or equipment Posting, altering, removing, defacing or destroying the Companys notices or any material on bulletin boards or the Companys property without the permission of the management Failure to wear uniform at work place as per the Companys policy Failure to furnish information which is within the scope of his employment and which relates to the mutual interest of the Company and employee Malingering and feigning illness Loitering during working hours Failure to follow safety procedures or tampering with safety devices to the detriment of the Company or its employees Infringement of safety regulations Unnecessary wastage of documents and materials Abuse or unauthorised use of the Companys property, utilities, equipment or facilities Habitual or substantial negligence in the care of tools, equipment and apparatus of the Company Wilful failure to report at once to his superior any defect which an employee may notice in any equipment connected with his work Wilful in not reporting any defect or occurrence which an employee may notice or which might endanger himself or any other person or which might result in damage to the Company or any person within the Company
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50. 51. 52. 53. 54. 55.

56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66.

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67. 68. 69. 70. 71.

Failure to keep work place clean and tidy Obstructing, inciting or willfully slowing down other employees from work Slackness in performance Disclosing commercial or manufacturing secrets, calculations or designs Acting in violence with competition laws, including agreeing with competitors on prices or any other terms & conditions to customers, allocating territories or customers, rigging bids.

The above examples of misconduct are not exhaustive as the Company reserves the right to determine what constitute acts of misconduct that warrant disciplinary action.

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GRIEVANCE PROCEDURES
1.0 INFORMAL GRIEVANCE An employee shall first bring his grievance(s) to the attention of his immediate supervisor verbally, the employee is to explain clearly the nature of the grievance and its effect on his working condition and well-being. The immediate supervisor in turn, is to consider all the suggested solutions and shall endeavour to resolve the problem immediately, if possible. All grievances reported shall be noted and filed by the immediate supervisor to facilitate future reference should they arise again. If the immediate supervisor is not able to resolve the grievance satisfactorily, the employee concerned shall then undertake to express the grievance verbally to the Head of Division/Department. The Head of Division/Department shall consider all the facts of the situation and endeavour to resolve the grievance immediately. Should the Head of Division/Department not be able to resolve the matter immediately, he shall then provide the employee with a written reply within seven (7) working days. A copy of the reply shall be extended to the Human Resource Department. Any grievance reported shall be noted and filed by the Head of Division/Department for future reference. Should the solution provided for by the Head of Division/Department be unsatisfactory, the employee concerned shall then initiate formal grievance procedure. 2.0 FORMAL GRIEVANCE To initiate the formal grievance procedure, an employee shall report the grievance in writing to the Head of Human Resource Department explaining the circumstances leading to the grievance. The Human Resource Department, upon receipt of the grievance letter, shall investigate the matter thoroughly and endeavour to resolve the grievance within four (4) weeks from the date the letter was received. The complainant shall be informed in writing of the progress of the investigation and the solutions if it is resolved, with a copy extended to the Head of Division/Department. Should the employee find the solution resolved as unsatisfactory or unacceptable, he may request in writing from the Head of Human Resource Department for a formal grievance hearing. For the purpose of substantiating his case or to assist him, the complainant may bring along a colleague to the hearing. The Head of Human Resource Department shall chair the hearing and ensure that proper conduct is maintained and Company rules are adhered to. The minutes of the hearing shall be recorded and signed by the Head of Human Resource Department. A copy of the minutes shall be sent to all relevant parties. A copy shall also be filled in the employees personal file. 3.0 SUMMARY DISMISSAL The Company reserves the right to dismiss an employee for serious misconduct, dishonesty, insubordination, gross neglect of duty, criminal conviction, bankruptcy or any other default, without notice, salary or other forms of compensation.
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TERMINATION OF SERVICE
1.0 NOTICE OF TERMINATION Probationary During the probationary period, employment may be terminated at any time by either party giving to the other, notice in writing as specified in the Contract of Employment or payment of salary in lieu of such notice. Confirmed employee Employment may be terminated by either party giving to the other, notice in writing or payment of salary in lieu of such notice as follows: Grade UE5-UE9, UP2-UP7 UE1 to UE4/UP1 UN1 to UN5 and UNT1 to UNT4 Notice Period 3 months 2 months 1 month Salary in lieu 3 months 2 months 1 month

The Company reserves the right to waive such notice as is required from the employee. In the event of such waiver, the balance of unutilised leave shall be forfeited. 2.0 RETRENCHMENT The Company reserves the right to carry out any retrenchment exercise as provided for in the Employment Act, 1955. 3.0 RETIREMENT The retirement age for all employees shall be 55 years. Re-employment of an employee after his retirement shall be at the sole discretion of the Company.

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OCCUPATIONAL SAFETY AND HEALTH


1.0 POLICY 1.1 The Company: a) b) Will not only comply with safety and health measures as required by Law, but will act positively where it can, to prevent injury, ill health, damage and loss arising from its operations. Is aware that the effective prevention of accidents depend as much on a committed attitude of mind to safety, as on the design, operation and maintenance of plant and equipment, and to this end it will actively seek to encourage employee participation and contribution to the establishment and observance of safe working practices. Considers the promotion of safety and health of its employees at work to be an essential part of the superiors duties for which they are responsible and accountable at all levels. Expect its employees on their part to recognize that there is an equally clear duty for them to exercise self-discipline and accept responsibility to do everything they can to prevent injury to themselves and others and any subsequent loss to the Company.

c) d)

2.0

ROLE AND RESPONSIBILITY 2.1 The Management a) b) c) Is ultimately responsible for the realization of the policy and delegation of its practical implementation. Shall ensure that employees are aware of the Companys safety policy. Is responsible for educating and motivating employees on their interest in safety, and establishing communication between the Company and employees to make suggestions on appropriate safety measures. Shall promote Occupational Safety and Health consciousness among its employees by showing a genuine and visible commitment towards Occupational Safety and Health issues.

d)

2.2

The Employees e) f) g) h) i) j) k) Are responsible for correcting unsafe acts and conditions. Will notify their superior if preventive measures need to be taken. Are responsible for their own safety and the safety of their colleagues. Will ensure that work is carried out in a safe manner. Will know and adhere to the safety regulations which are applicable. Will identify and report unsafe situations. Will report accidents and incidents to avoid recurrence.

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