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(v)

REVISION HISTORY

REV. AFFECTED DESCRIPTION DATE


NO. PAGE (S)

1 All Amendments to the non executive grade 14/05/2011

2 20 Item 5.1 - Reimbursement Examination Fees


per course 14/05/2011

3 17 Delete item no 5.0 Medical Exclusion (i) –


exclusion on medical check-up or test not 14/05/2011
specifically required by the company, all
preventive medicine, such as vaccinations
and vitamins except when these are
prescribe as curative medication

4 16 Item 4.1 Executive Medical Check-up – 14/05/2011


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”

5 10 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


Today’s 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

6 63 Item 9 subsection (iii) – Disciplinary Action - 27/9/2012

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)
REV. AFFECTED DESCRIPTION DATE
NO. PAGE (S)

7 71 Act of Misconduct – Appendix 2 27/9/2012


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.

8 28 Item 21 Site Allowance: 1/10/2012


Current Rates :
Grade
UE6/UP3 above RM500
UE4/UP1/UE5/UP2 RM400
UE1 to UE3/UP2 RM300
Non Exec RM250

New Rates
Grade <50km >50km
UE6 /UP3 above RM500 RM700
UE1-UE5/UP1-UP2 RM400 RM600
Non-Exec RM300 RM400

9 52 New Introduction : 2012 Exam


Item 31 : Children Excellence Award Result
Awards
UPSR 5As – RM200
PMR 7As – RM300
SPM 7As – RM500
STPM 3 Principal As – RM600

DOCUMENT CONTROL

(v)
Opus Group Berhad’s 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 General …………………………………………. 1

2.0 Definitions …………………………………………. 1

PRINCIPAL TERMS AND CONDITIONS

1.0 Appointment …………………………………………. 3

2.0 Probation And Confirmation …………………………………………. 3

3.0 Medical Examination …………………………………………. 3

4.0 Performance Review …………………………………………. 4

5.0 Transfer …………………………………………. 4

6.0 Working Days And Hours …………………………………………. 4

SALARY ADMINISTRATIONS

1.0 Salary Payment …………………………………………. 5

2.0 Annual Increment …………………………………………. 5

3.0 Bonus …………………………………………. 5

4.0 Claims …………………………………………. 6

5.0 Changes in Personal Details …………………………………………. 6

6.0 Income Tax …………………………………………. 6

GENERAL BENEFITS

1.0 Rest Days And Public Holidays …………………………………………. 7

2.0 EPF …………………………………………. 7

3.0 Insurance …………………………………………. 7

4.0 SOCSO …………………………………………. 9

(v)
5.0 Uniform …………………………………………. 9

6.0 Employee Training …………………………………………. 9

7.0 Employee Welfare …………………………………………. 9

LEAVE

1.0 Annual Leave …………………………………………. 10

2.0 Half-Day Leave …………………………………………. 11

3.0 Medical Leave …………………………………………. 11

4.0 Industrial Accident Leave …………………………………………. 12

5.0 Prolonged Medical Leave …………………………………………. 12

6.0 Medical Boarding Out …………………………………………. 13

7.0 Marriage Leave …………………………………………. 13

8.0 Maternity Leave …………………………………………. 13

9.0 Paternity Leave …………………………………………. 13

10.0 Compassionate Leave …………………………………………. 13

11.0 Special Leave …………………………………………. 13

12.0 Haj Leave …………………………………………. 14

13.0 Study & Examination Leave …………………………………………. 14

14.0 Unpaid Leave …………………………………………. 14

15.0 Leave Application …………………………………………. 14

MEDICAL / HOSPITALIZATION BENEFITS

1.0 Outpatient General Treatment …………………………………………. 15

2.0 Medical Treatment Book …………………………………………. 15

3.0 Hospitalization Benefits …………………………………………. 16

4.0 Physical Examination …………………………………………. 16

5.0 Exclusions …………………………………………. 17

COMPANY LOANS

1.0 Computer Loan …………………………………………. 18

2.0 Study Loan …………………………………………. 18

(v)
3.0 Personal Club Membership Loan …………………………………………. 18

4.0 Terms & Conditions of Loans …………………………………………. 18

CLAIMS AND ALLOWANCES

1.0 Interest-Subsidy on Car Loans …………………………………………. 19

2.0 Corporate Club Membership …………………………………………. 19

3.0 Personal Club Membership …………………………………………. 19

4.0 Reimbursement of Monthly Club Subscription ……………………………. 20

5.0 Reimbursement of Examination Fee …………………………………………. 20

6.0 Reimbursement on Professional Association


Membership Subscription …………………………………………. 20

7.0 Corporate Credit Card …………………………………………. 21

8.0 Entertainment Allowance …………………………………………. 21

9.0 Subsistence Allowance …………………………………………. 22

10.0 Subsistence Allowance for Short-term


Overseas Duties …………………………………………. 23

11.0 Accommodation Allowance …………………………………………. 23

12.0 Advances for Outstation/Overseas Travel …………………………………. 24

13.0 Reimbursement of Fee for International


Passport …………………………………………. 25

14.0 Transportation Allowance …………………………………………. 25

15.0 Winter Clothing Allowance …………………………………………. 26

16.0 Laundry Allowance …………………………………………. 27

17.0 Laundry Expenses …………………………………………. 27

18.0 Telephone Calls …………………………………………. 27

19.0 Overtime …………………………………………. 27

20.0 Overtime Travel Costs …………………………………………. 28

21.0 Site Allowance ……………………………...…………. 28

22.0 Project Maintenance Allowance for


NMM Project …………………………………………. 29

(v)
23.0 Standby Allowance …………………………………………. 29

24.0 Parking Fee …………………………………………. 29

25.0 Relocation/Transfer Within West Malaysia ………………………………. 29

26.0 Company Car /Driver and Petrol Allowance ……………………………. 31

27.0 Company Vehicle Scheme …………………………………………. 32

28.0 Policy On Provision of Handphone …………………………………………. 40

29.0 Overseas Allowance …………………………………………. 42

30.0 Sabah, Sarawak & Labuan Allowance ……………………………………. 49

31.0 Chidren Excellence Award ………………………………… 52

PERFORMANCE MANAGEMENT SYSTEM (PMS)

1.0 General …………………………………………. 53

2.0 Working Policies of PMS …………………………………………. 53

CODE OF CONDUCT AND DISCIPLINE

1.0 Foreword to Employees …………………………………………. 54

2.0 Definitions …………………………………………. 54

3.0 Professional Conduct …………………………………………. 55

4.0 Attendance / Punctuality …………………………………………. 55

5.0 Appearance …………………………………………. 55

6.0 Alcohol And Drug Abuse …………………………………………. 56

7.0 Code of Ethics …………………………………………. 57

8.0 Sexual Harassment …………………………………………. 60

9.0 Disciplinary Action …………………………………………. 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.

ii. " Subsidiary Companies " means companies where Opus Group Berhad has
more than 50% share holding and manages the HR and payroll.

iii. “ Associate Companies ” means companies where Opus Group Berhad has
50% or less share holding and manages the HR and payroll.

iv. " The Board of Directors " means the Directors of Opus Group Berhad.

v. " Confirmed Employee " means permanent employees who have successfully
completed the probationary period and are confirmed in the Company's
service.

vi. " 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)

Updated: 31 July 2008 Employee Handbook Page 1 of 76


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. " Spouse " means an employee's legal wife or husband.

viii. " Family " means one legal spouse and children.

ix. " Relatives " means employees' parents, brothers, sisters, grandparents and
parents-in-law.

x. " Outstation " shall refer to locations or destinations which are at least 50 km
away from the normal place of work.

xi. " Executive Employees " shall refer to permanent employees in grades UT1
to UT6, UP1 to UP7 and UE1 to UE9.

xii. " Non - Executive Employees " shall refer to permanent employees in grades
UN1 to UN5 and UNT1 to UNT4.

xiii. “ HRD “ shall refer to Human Resource Department of the Company.

xiv. “ DAL “ Means the Discretionary Authority Limits as approved by the


Company’s Board of Directors.

xv. " Group " shall refer to the companies within Opus Group Berhad.

xvi. “ UEM ” shall refer to United Engineers (Malaysia) Berhad, the main
shareholder of the Opus Group Berhad .

xvii. “ 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.

[ The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 2 of 76


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.

1.2 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.

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 non-
executives and during which time, their performance shall be reviewed for
confirmation.

2.2 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.

2.3 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.

2.4 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.

2.5 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.

2.6 All contract employees shall follow the terms and conditions as stated in the
contract.

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.

3.2 All appointments are subject to the employee being certified as medically fit
for employment by the medical practitioner appointed by the Company.

Updated: 31 July 2008 Employee Handbook Page 3 of 76


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 Company’s normal working days and hours are:

Monday to Friday - 8.30 am to 5.30 pm

Lunch Break - 1.00 pm to 2.00 pm

Lunch Break (on Fridays - 12.30 pm to 2.30 pm


for Muslim male employees
performing Friday prayers)
(Subject to the prevailing policy)

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.

[ The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 4 of 76


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.

1.2 The salary shall become due for payment to the employee not later than the
seventh day of the following month.

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 employee’s
performance as evaluated in the PMS.

2.2 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.

2.3 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.

2.4 Where disciplinary action is pending against an employee, the payment of


annual increment, if any, shall be withheld until determination of the case.

2.5 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.

3.0 BONUS

3.1 Payment of bonus may be awarded to confirmed employees at the sole


discretion of the Company.

3.2 Payment of bonus, if declared by the Company, shall be based on the


Company’s and individual employee’s performance.

3.3 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.

Updated: 31 July 2008 Employee Handbook Page 5 of 76


3.4 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.

3.5 Where disciplinary action is pending against an employee, the payment of


bonus, if declared, shall be withheld until determination of the case.

3.6 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.

4.2 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.

4.3 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.

4.4 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.

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.

5.2 The Company reserves the right to take disciplinary action against employees
who provide false information to the Company.

6.0 INCOME TAX

6.1 All employees shall be liable for their personal income taxes.

6.2 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.

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 6 of 76


GENERAL BENEFITS

1.0 REST DAYS AND PUBLIC HOLIDAYS

1.1 All employees shall be entitled to a rest day in each working week.

1.2 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.

1.3 If a public holiday falls on a rest day, then the following regular working day
will be a substitute holiday.

1.4 Approved holiday for ungazetted public holidays shall be at the sole discretion
of the Company. All employees shall be informed of such approved holiday.
2.0 EPF

The following EPF contributions apply to all permanent and contract employees:

Employer’s
Years of Service Employee’s Contribution
Contribution
2 years and below 12% Prevailing statutory rate as per EPF
Above 2 years 15% Act, 1991

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 :

Quantum of
Job Grade Designation/Job Band
Coverage
Top Management Job Band
 Group Chief Executive
 Managing Director
UT2 – UT6 RM1.0 million
 Functional Director
 Chief Operating Officer
 Senior Group General Manager
Top Management Job Band
 Chief Financial Officer
UT1/UP7 RM750,000
 Project Director
 Group General Manager
UE7-UE9/UP4-UP6 Senior Management Job Band RM500,000

UE5 – UE6/UP2 – UP3 Middle Management Job Band RM300,000

UE1 – UE4/UP1 Junior Management Job Band RM200,000

Updated: 31 July 2008 Employee Handbook Page 7 of 76


3.1.2 Non - Executive Grade :

Quantum of
Job Grade Designation/Job Band
Coverage
UN4 – UN5/UNT3 –
Supervisory Job Band RM100,000
UNT4
UN2– UN3/UNT1 –
Management Support Job Band RM70,000
UNT2
UN1 Office/Operational Support Job Band RM50,000

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 :

Quantum of
Job Grade Designation/Job Band
Coverage
Top Management Job Band
 Group Chief Executive
 Managing Director
UT2 – UT6 RM1.0 million
 Functional Director
 Chief Operating Officer
 Senior Group General Manager
Top Management Job Band
 Chief Financial Officer
UT1/UP7 RM750,000
 Project Director
 Group General Manager
UE7-UE9/UP4-UP6 Senior Management Job Band RM500,000

UE5 – UE6/UP2 – UP3 Middle Management Job Band RM300,000

UE1 – UE4/UP1 Junior Management Job Band RM200,000

3.2.2 Non - Executive Grade :

Quantum of
Job Grade Designation/Job Band
Coverage
 Supervisory Job Band
 Management Support Job Band
UN1 to UN5 and UNT1
 Office/Operational Support Job RM20,000
to UNT4
Band

Updated: 31 July 2008 Employee Handbook Page 8 of 76


3.3 Beneficiaries

3.3.1 The beneficiaries of both the GPA and the GTL shall be the employee
or the employee's next of kin or nominated beneficiaries.

3.3.2 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 All employees shall be covered by the Company’s Group


Hospitalisation & Surgical Insurance.

4.0 SOCSO

4.1 Eligible employees as stipulated by the Employees Social Security Act 1969
(Act 4) shall also be covered by the SOSCO Insurance Scheme.

5.0 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) 3 sets of uniforms
b) 2 pairs of shoes (with the exception of receptionists)

6.0 EMPLOYEE TRAINING

Employees training is guided by the company’s 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) Subsidised sports and recreation facilities;

b) Gifts for marriage, birth of child or hospitalisation of employee up to a maximum


of RM100 per occasion;

c) Donation for death of immediate family member (spouse, children and parents)
of RM500; and

d) Donation to next-of-kin upon death of employee of RM2,000

Updated: 31 July 2008 Employee Handbook Page 9 of 76


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:

1 – 5 yrs 6 – 10 yrs >10 yrs


Grade
service service service
Middle Management
Job Band and above
20 working 23 working 23 working
(UT1 – UT6)
days days days
(UE5 – UE9)
(UP2 – UP7)
Junior Management
and Executives Job
17 working 20 working 23 working
Band
days days days
(UE1 – UE4)
(UP1)
Non-Executives
15 working 18 working 21 working
UN1 to UN5 and UNT1
days days days
to UNT4

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.

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 10 of 76


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.

b) The current policy on accumulation of half of annual leave entitlement will remain.

c) Half-day leave may not be allowed for purpose of Compassionate Leave. Such
leave may be based on per day session.

d) With the implementation of half-day leave, time-off may no longer be allowed.

e) 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.

g) The half-day leave application and approval is subject to the Company’s existing
policy and procedure on leave.

3.0 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 non-
emergency 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).

Updated: 31 July 2008 Employee Handbook Page 11 of 76


3.4 For the purpose of this section, if an employee is certified by the Company’s
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 Company’s 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.

Updated: 31 July 2008 Employee Handbook Page 12 of 76


5.5 In certain instances, the Company may, at its sole discretion and based on the
diagnosis and advice from the Company’s Panel of Doctors, Government
Hospital Authority or registered Medical Practitioners, consider on a case-to-
case 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) Death or serious illness which requires hospitalization of spouse, children


(irrespective of age), parents, parents-in-law, brothers, sisters or grandparents.

b) 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;

Updated: 31 July 2008 Employee Handbook Page 13 of 76


b) Representing State or National levels in any sports events; and

c) 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.

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 14 of 76


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 Limit per annum (RM)


UT1/UP7 – UT6 4,000

UE1-UE9, UP1-UP6, Non-Executives 3,000

1.2 The above shall also include the following :

a) Employee and his family’s dental expenses covering only extraction, filling, x-
ray, 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 .

Updated: 31 July 2008 Employee Handbook Page 15 of 76


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
Grade (excluding Quantum Per Annum
meals)
Top Management and RM250 per day RM50,000 including surgical,
Senior Management Job hospital room and board
band
UT1 – UT6
UE7 – UE9
UP4 – UP7
Middle Management Job RM250 per day RM50,000 including surgical,
Band hospital room and board
UE5 – UE6
UP2-UP3
Junior Management Job RM180 per day RM50,000 including surgical,
Band hospital room and board
UE1 – UE4
UP1
Non Executives RM130 per day RM30,000 including surgical,
UN1 to UN5 and UNT1 hospital room and board
to UNT4

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) 45 years and above - Once a year

b) 44 years and below - 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.

Updated: 31 July 2008 Employee Handbook Page 16 of 76


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).

b) suicide or injuries suffered from an attempt to commit suicide, whether in a sane


or insane mental condition;

c) 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;

d) 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;

e) eye examinations or refractions for the purpose of their fitting of glasses; hearing
aids or the fitting of any thereat;

f) any treatment relating to surgical, mechanical or chemical methods of birth


control and infertility;

g) any treatment or surgical operation for congenital conditions, illness or physical


disability present from birth, plastic or cosmetic surgery;

h) special nursing fees or purchases of any appliance or prosthetic devices except


for the rental of these devices during the period of hospital confinement;

i) charges for non-medical services like telephone, television and other services;

j) any treatment for the functional disorder of the psychic or mental constitution
including their physiological or psychosomatic manifestations;

k) any treatment prescribed by practitioners not recognized by the Malaysian


Medical Association.

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 17 of 76


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 interest-
free 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.

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 18 of 76


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 Condition of loan

Interest of 4% on loan principle of Subject to finance institution’s


not more than RM40,000 and the Requirement
maximum interest subsidy payable
will be RM133.34 per month.

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.

2.2 The Company shall reimburse the monthly club subscription including
compulsory monthly payments to the club, inclusive of tax charges.

2.3 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.

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.

3.2 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.

3.3 Entrance fees will not be reimbursed retrospectively for clubs which the
employee is already a member of.

Updated: 31 July 2008 Employee Handbook Page 19 of 76


3.4 The employee shall not sell or dispose the club membership during his
employment with the Company without prior approval of the Company.

3.5 In the event that the employee resigns or is terminated, the employee shall
repay the Company the entrance fee as follows:

Occurrence of Resignation Repayment %

Within one (1) year of joining the club 100%

Within two (2) years of joining the club 50%


Within three (3) years of joining the club 25%
After three (3) years of joining the club 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 Amount

UT1/UP7 – UT6 Up to RM300 per month


UE5/UP2-
Up to RM200 per month
UE9/UP6

4.2 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.

5.2 Claims for the reimbursement of examination fees must be supported with the
examination results.

6.0 REIMBURSEMENT ON PROFESSIONAL ASSOCIATION MEMBERSHIP


SUBSCRIPTION

6.1 The Company shall pay the annual membership fees of up to two (2) relevant
and approved professional associations for all confirmed Employees.

6.2 The Human Resource Department shall review and update the list of all the
approved professional associations.

Updated: 31 July 2008 Employee Handbook Page 20 of 76


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 Company’s discretion. The
Company may also provide a corporate credit card to other executives in
Grade UE5/UP2 and below based on job requirements.

7.2 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.

7.3 Any request for permanent increase in credit limit must be supported by
proper justifications subject to approval as per the DAL.

7.4 The corporate credit card shall only be used for official expenses incurred in
connection with the Company’s business. Expenses allowed for Company’s
business shall include the following:

a) Accommodation, meals and/or traveling expenses during


outstation/overseas travel
b) Entertainment of business clients
c) Fuel for Company motor vehicles or car allowance scheme
d) Leave passage
e) Purchases during emergency cases, e.g. in a disaster recovery.

7.5 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).

7.6 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.

7.7 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.

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.

Updated: 31 July 2008 Employee Handbook Page 21 of 76


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 Peninsular Malaysia East Malaysia Condition

UT1-UT6 Actual reasonable Actual reasonable


With receipt
UP2-UP7 amount amount
UE5-UE9 RM80 per day RM100 per day

Breakfast RM15 Breakfast RM20 Without


receipt
Lunch RM25 Lunch RM30
Dinner RM40 Dinner RM50

UP1
UE1-UE4 Actual reasonable Actual reasonable
With receipt
amount amount

RM60 per day RM80 per day

Breakfast RM10 Breakfast RM15 Without


receipt
Lunch RM20 Lunch RM25
Dinner RM30 Dinner RM40

UN1 to UN5 Actual reasonable Actual reasonable


With receipt
and UNT1 to amount amount
UNT4

RM40 per day RM60 per day

Breakfast RM5 Breakfast RM10 Without


receipt
Lunch RM15 Lunch RM20
Dinner RM20 Dinner RM30

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.

9.3 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.

9.4 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.

Updated: 31 July 2008 Employee Handbook Page 22 of 76


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) Actual amount as per receipts; or

b) 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 Actual reasonable With


amount amount receipt

All Grades RM250 per day RM200 per day

Breakfast RM 50 Breakfast RM 40 Without


receipt
Lunch RM 75 Lunch RM 60
Dinner RM125 Dinner RM100

10.2 The subsistence allowance will be the same for all categories of staff.

10.3 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 - 20%
Lunch - 30%
Dinner - 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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Updated: 31 July 2008 Employee Handbook Page 23 of 76


11.2 Where accommodation is not provided by the Company, the Company shall
reimburse the employee at the following rates:-

Overseas
Peninsular (including
Job Grade East Malaysia Condition
Malaysia Singapore &
Brunei)
Actual for Actual for Actual for
single With
UT1–UT6, single standard single standard
standard receipt
UE5-UE9 room room
room
UP2-UP7
Without
RM40 per day RM40 per day Not applicable
receipt
Actual for
Actual for Actual for
single With
single standard single standard
standard receipt
room room
UP1 room
UE1-UE4
Without
RM40 per day RM40 per day Not Applicable
receipt

Actual for
Actual for Actual for
single With
single standard single standard
UN1 to standard receipt
room room
UN5 and room
UNT1 to
UNT4 Without
RM30 per day RM30 per day Not Applicable
receipt

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.

12.2 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 employee’s salary should the employee fail to comply with
the above deadline.

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Updated: 31 July 2008 Employee Handbook Page 24 of 76


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.

13.2 The amount reimbursed shall be limited to RM300 or any applicable revised
fee charged to obtain a 32-page international passport.

13.3 Employee shall only be allowed to claim this benefit once every five (5) years
when applying for a new international passport.

13.4 The reimbursement shall not be allowed for replacement purpose owing to
lost or damaged passport.

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

Transportation Executive Grade


(a) Local Air Travel  BOD of Public listed companies, & Top Mgmt job band
(including East Malaysia & (UT1/UP7-UT6) & BOD of non-listed companies and
Singapore) 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

(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

Updated: 31 July 2008 Employee Handbook Page 25 of 76


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.

14.2 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.

14.3 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 employee’s house to the
office.

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.

15.2 The allowance shall be provided once every two (2) years as follows:

Grade Amount
UE7/UP4-UT6 RM 800

UN1-UE6/UP3 RM 500

Updated: 31 July 2008 Employee Handbook Page 26 of 76


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 Amount
UT1-UT6, UE6-UE9, Actual laundry expenses, with receipt
UP3-UP7

UE1 – UE5,UP1-UP2 Actual with receipt, up to RM15 per day

UN1 to UN5 and Actual with receipt, up to RM10 per day


UNT1 to UNT4

18.0 TELEPHONE CALLS

18.1 All telephone calls made (from home or whilst overseas) on official business
will be reimbursed based on actual bills.

18.2 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.

19.2 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 OT Hour x 1.5


Sunday (less than 8 hours) OT Hour x 1.0
Sunday (more than 8 hours) OT Hour x 2.0
Public Holiday (less than 8 hours) OT Hour x 2.0
Public Holiday (more than 8 hours) OT Hour x 3.0

19.3 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.

Updated: 31 July 2008 Employee Handbook Page 27 of 76


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.

20.2 An employee who is provided with a Company vehicle shall not be eligible for
the above payment

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 Monthly Site Allowance

UE6/UP3 and above RM500

UE1 to UE5/UP2 RM400

Non Executive RM300

21.1.2 Site location more than 50km radius :-

Grade Monthly Site Allowance

UE6/UP3 and above RM700

UE1 to UE5/UP2 RM600

Non Executive RM400

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Updated: 31 July 2008 Employee Handbook Page 28 of 76


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 Monthly Project


Maintenance Allowance
UT1-UT6, UP3-UP7, UE6-UE9 RM500

UP1-UP2, UE4-UE5 RM400

UE1-UE3 RM300

UN1 to UN5 and UNT1 to RM250


UNT4

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 Amount

UT1-UT6,UP2-UP7, UE5-UE9 Full reimbursement

UE1-UE4/UP1 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:

Updated: 31 July 2008 Employee Handbook Page 29 of 76


Grade Condition Single Married
(Accompanied by
family members)
With receipt Actual for Single Actual for Double
UE6/UP3- Deluxe Room Deluxe Room(s)
UT6
Without receipt RM40 RM40
UE1- With receipt Single standard Double Room (s)
UE4/UP1
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 Employee Immediate Family


With receipt Actual reasonable Actual reasonable
expenses expenses

RM 80 per day
UE5/UP2-
UT6 Without (Peninsular RM40 per day/person
receipt Malaysia) (Peninsular Malaysia)
RM100 per day RM50 per day/person
(East Malaysia) (East Malaysia)

With receipt Actual reasonable Actual reasonable


expenses expenses

RM 60 per day
UE1-
UE4/UP1 Without (Peninsular RM30 per day/person
receipt Malaysia) (Peninsular Malaysia)
RM80 per day RM40 per day/person
(East Malaysia) (East Malaysia)

With receipt Actual reasonable Actual reasonable


expenses expenses
UN1 to
UN5 and RM 40 per day
UNT1 to (Peninsular RM20 per day/person
UNT4 Without Malaysia) (Peninsular Malaysia)
receipt RM60 per day RM30 per day/person
(East Malaysia) (East Malaysia)

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.

Updated: 31 July 2008 Employee Handbook Page 30 of 76


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 :

i) 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:

Grade Married Single

UE6/UP3-UT6 RM1,000 RM500

UE1-UE5/UP2 RM750 RM400

UN1 to UN5 and RM500 RM300


UNT1 to UNT4

f) Home Trips

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.

26.2 Employees in Grade UT2–UT6 may also be provided with a Company driver.

Updated: 31 July 2008 Employee Handbook Page 31 of 76


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.

27.2 For those who opt for the Company vehicle, the type of vehicle for the
various eligible categories/grades shall be as follows:

CATEGORY/GRADE MAKE/MODEL
Chairman/Division Presidents Proton Perdana Executive Standard
UT2-UT7 Grade
Project Directors/Chief Financial Proton Perdana
Officers/Group GMs/ UT1, UP6-
UP7, UE9/UP6 Grade
UE7-UE8/UP4-UP5 Proton Wira 1.5

27.3 The above revision is reflective of the Group’s support for the national vehicle,
consistent with the acquisition of the Company’s holding Company, United
Engineers (Malaysia) Berhad by Syarikat Danasaham Sdn Bhd in October
2001.

27.4 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:-

a) 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.

Updated: 31 July 2008 Employee Handbook Page 32 of 76


c) Quantum of Allowance

The monthly car allowance under this scheme shall be as follows:

Current Monthly
Job Grade Category
Allowance
Chairman of UEM and
Chairman, public listed companies,
RM3,400
UT5 – UT6 Group Chief Executive,
Division President
Managing Director,
UT2 – UT4 Functional Director, Chief RM2,900
Operating Officer
Chief Operating Officer,
Chief Financial Officer,
UT1/UP7 RM2,200
Project Director, Group
General Manager
Senior General Manager,
UE9/UP6 RM1,600
General Manager
Assistant General
UE7/UP4 – UE8/UP5 RM900
Manager, Senior Manager

The above monthly allowance has been derived after taking into
consideration amongst others, the following factors:

i) monthly hire purchase installment payable by employee based on the


value of a benchmark vehicle appropriate to the employee’s grade;
ii) additional tax payable by employee due to the cash allowance; and
iii) 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 employer’s 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 employee’s retirement scheme.

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Updated: 31 July 2008 Employee Handbook Page 33 of 76


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
Maintenance & FUEL
Job Grade Category
Cost P.A Insurance
(RM) P.A (RM)
Chairman of UEM and
public listed
Chairman,
companies, Group 10,000 10,100
UT5 – UT6
Chief Executive,
Division President
Managing Director,
Functional Director,
UT2 – UT4 10,000 6,600
Chief Operating
Officer Actual
Chief Operating amount
Officer, Chief based
Financial Officer, on
UT1/UP7 7,500 4,900
Project Director, receipts
Group General
Manager
Senior General
UE9/UP6 Manager, General 5,000 3,700
Manager
UE7-UE8 Assistant General
Manager, Senior 3,000 2,100
UP4-UP5 Manager

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),

Updated: 31 July 2008 Employee Handbook Page 34 of 76


• 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 employee’s name and
original receipts must be submitted together with the claims.

The reimbursements for maintenance cost, road tax and insurance are non-
taxable 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
employee’s 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 Company’s existing


claim procedures, provided original receipts with the registration number of
the designated vehicle indicated are submitted.

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Updated: 31 July 2008 Employee Handbook Page 35 of 76


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 Group’s image. As a benchmark, the
following types of vehicle or vehicle of equivalent values will be used for this
purpose:

CATEGORY/GRADE MAKE/ MODEL OR EQUIVALENT VALUE


Proton Perdana Executive or vehicle
Chairman/Division equivalent to value of RM250,000 and
Presidents above

Proton Perdana Executive or vehicle


MDs/COOs/Functional equivalent to value of RM150,000 and
Directors above

Proton Perdana V6 or vehicle equivalent to


Project value of RM125,000 and above
Directors/CFOs/GGMs

UE9/UP6 Proton Perdana V6 or vehicle equivalent to


value of RM100,000 and above

Proton Wira or vehicle equivalent to value


UE7/UP4-UE8/UP5 of RM50,000 and above

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
Company’s pool vehicle unless in emergency cases.

• The Company’s existing policy on allocation of pool vehicle for operational


purpose to employee in other lower grades shall remain.

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Updated: 31 July 2008 Employee Handbook Page 36 of 76


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;

b) the company is unable to provide a company car to the eligible


employee who wishes to opt for the company car;

The rates are as follows:

Monthly Allowance
Current
Payable in cases of
Job Grade Category Monthly
vehicle not within
Allowance
approved policy
Chairman of UEM and
public listed
Chairman,
companies, Group RM3,400 RM1,700
UT5 – UT6
Chief Executive,
Division President
Managing Director,
UT2 – UT4 RM2,900 RM1,500
Functional Director
Chief Operating
Officer, Chief Financial
UT1/UP7 Officer, Project RM2,200 RM1,100
Director, Group
General Manager
Senior General
UE9/UP6 Manager, General RM1,600 RM800
Manager
UE7-UE8 Assistant General
Manager, Senior RM900 RM500
UP4-UP5 Manager

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Updated: 31 July 2008 Employee Handbook Page 37 of 76


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 Road Tax & Insurance


p.a. (RM) p.a. (RM)
Job Cases not Cases not
Category
Grade within within
Current Current
approved approved
policy policy
Chairman of UEM
and public listed
Chairman,
companies,
UT5 – 10,000 5,000 10,100 5,100
Group Chief
UT6
Executive,
Division President
Managing
UT2 – Director,
10,000 5,000 6,600 3,300
UT4 Functional
Director
Chief Operating
Officer, Chief
Financial Officer,
UT1/UP7 7,500 3,800 4,900 2,500
Project Director,
Group General
Manager
Senior General
UE9/UP6 Manager, 5,000 2,500 3,700 1,900
General Manager
UE7-UE8 Assistant General
Manager, Senior 3,000 1,500 2,100 1,100
UP4-UP5 Manager

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.

Updated: 31 July 2008 Employee Handbook Page 38 of 76


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.

iii) 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.

iv) 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.

27.7 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.

27.8 Other terms:

a) Employees on the car allowance scheme shall not be allowed to utilize


the Company’s 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.

b) 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.

c) The Company’s existing policy on allocation of pool vehicle for


operational purpose to employee in other lower grades shall remain.

d) 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 Company’s
petrol/corporate credit card for payment of fuel. Reimbursement for
fuel is meant for one designated vehicle only.

e) 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.

Updated: 31 July 2008 Employee Handbook Page 39 of 76


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
Grade/Category
costs – subject to the following
limits)
UT1/UP7-UT6 RM1,000

UE8/UP5-UE9/UP6 RM750
UE6/UP3-UE7/UP4 and Heads of
Departments not in the above RM500
grades
Other categories based on job
RM250
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.

Updated: 31 July 2008 Employee Handbook Page 40 of 76


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 employee’s 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
company’s 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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Updated: 31 July 2008 Employee Handbook Page 41 of 76


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 Categories Allowances
I) Normal Based on the current Employee Terms and
Overseas Conditions of Service relating to overseas duty.
Travel
II) Short-Term i) Actual hotel rates as per receipt or 50% of
Assignment 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.
III) Long-Term Overseas Allowances and Benefits as provided for
Posting in this clause.

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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Updated: 31 July 2008 Employee Handbook Page 42 of 76


Component Rate
Based on a % of basic salary subject to a step ladder
Cost of Living method with decreasing rate for the first RM5,000, next
Allowance RM5,000 and the remaining sum of the employee’s basic
salary and to be determined depending on location.
Locational
Based on a % of basic salary and to be determined
Ranking
depending on location.
Allowance

Incentive 15% of basic salary, irrespective of location, subject to a


Allowance 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
Company’s Terms and Conditions of Service.

29.5.4 Employees can claim excess baggage not exceeding the following:-
Employee and spouse 20 kg each
Dependent children 10 kg each

Updated: 31 July 2008 Employee Handbook Page 43 of 76


29.5.5 The transportation of personal and household effects shall be subject
to the following:-

Description By Sea By Air Cargo


(max)
Single 6.0 cu.m 180 kilos
Family (Employee, spouse and 10.0 cu.m 250 kilos
children)

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
employee’s marital status are as follows:

Countries Employee Married* Single


Category (RM) (RM)
Extremely cold (e.g.
Moscow, Warsaw, Beijing, I & II 3,500 2,500
Ottawa) III 3,000 1,800
Moderate/Temperate I & II 2,500 1,800
III 2,100 1,500

* 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.

Updated: 31 July 2008 Employee Handbook Page 44 of 76


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
Married, not One return air fare to Malaysia; or
Accompanied One return air fare for spouse and
by dependent to visit employee in
family member host country
Married, One return air fare for employee
Accompanied and his accompanying family
by members to Malaysia or to visit
family member another country equivalent to air
fare to Malaysia

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 employee’s
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 Company’s Terms and Conditions
of Service. This also applies to Malaysia’s National Day and The
Yang Dipertuan Agong’s 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.

Updated: 31 July 2008 Employee Handbook Page 45 of 76


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 Company’s 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 Management’s 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 or


75% of the fees whichever is
lower
Secondary USD5,000 per year/student or
75% of the fees whichever is
lower

Updated: 31 July 2008 Employee Handbook Page 46 of 76


29.11.3Free Passage to Visit Parents or Child

Employees who have children schooling in Malaysia are entitled to


either of the following:

i) free passage for child/children to visit parents in host country


once a year; or

ii) 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 Hotel Subsistence


Categories Accommodation
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
Transport Expenses
Category
Category I Company Car on Fully maintained by
personal to holder Company.
basis. The provision of
the driver will be on a
case-to case basis
Category II Company Car on “Job Fully maintained by
requirement” basis Company.
Employee to reimburse
fuel for personal use.
Category III Own car, public Actual claims for
transport and rental car business assignments
based on receipt.

Updated: 31 July 2008 Employee Handbook Page 47 of 76


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 Company’s 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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Updated: 31 July 2008 Employee Handbook Page 48 of 76


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:

Example of Overseas
Categories Current Grade
Job Positions
Country Manager
Category I UE6/UP3 – UT6
Project Director
Project Manager
Category II UE4/UP1 – UE5/UP2
Senior Engineer
Engineer
Category III UE1 – UE3 Quantity Surveyor
Exec Secretary
Management Assistant
UN1 to UN5 and Secretary
Category IV
UNT1 to UNT4 Driver / Despatch
Office Assistant

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:

Updated: 31 July 2008 Employee Handbook Page 49 of 76


i) Short-Term Assignment (15 days to 6 months)

Category Allowance Housing


Category I RM1,600 per Provided by Company or
(UE6/UP3 – month employee can seek own
UT6)

Category II RM1,500 per Accommodation and claim


(UE4/UP1 – month actual rental
UE5/UP2)

Category III RM1,400 per Up to a maximum of RM2,000


(UE1-UE3) month per month

Category IV RM1,200 per Up to a maximum of RM2,000


month per month
(UN1 to UN5
and UNT1 to
UNT4)

ii) Long-Term Posting (above 6 months)

Status Category I Category II Category III Category IV

Married* RM2,700 RM2,500 RM2,200 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 Transferred To Allowance


Work
Peninsular Sabah/Sarawak/ 100% of
Malaysia Labuan Allowance
Sabah and Labuan 50% of
Sarawak Allowance
Labuan Labuan 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.

Updated: 31 July 2008 Employee Handbook Page 50 of 76


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 - RM1,000 (with family)


RM500 (single)
UE1 – UE5/UP2 - RM750 (with family)
RM400 (single)
UN1 to UN5 and
UNT1 to UNT4 - 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 - Actual, up to a maximum of RM5,000


UN1 to UN5 and
UNT1 to UNT4 - 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 - Twice a year


Married employee with family not following - Twice a year
Married employee with family following - Once a year

30.8 Other Benefits

All other benefits like medical, insurance, leave, etc will be as per the Terms
and Condition of Service.

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 51 of 76


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

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 52 of 76


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) encourages employees at all levels of the organization to share responsibility to
help meet business needs and objectives.
b) Enables leaders to offer support by providing coaching and information.
c) Helps employees track their own performance and seek their superior’s advice
for achieving performance objectives.
d) Prompts leaders to identify performance trends and adjust strategies to reflect
changing business trends.
e) Trains all employees in the skills that help them effectively manage their own
performance.
f) Allows ease of employee transfer within and between the UEM Group.
g) 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) The phases of performance planning, tracking, feedback and review will be
conducted for all employee.
b) “Employee Development” is a mandatory Key Result Area (KRA) for all
employee who manage the performance of others.
c) 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.
d) 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.
e) 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.
f) Identification of KRAs, Objectives and Dimensions and the Performance Review
will be conducted face-to-face with subordinates using the prescribed forms.
g) During the Performance Review, appraisers will confine their discussions to the
KRAs, Objectives and Dimensions achieved during the period under review.

Updated: 31 July 2008 Employee Handbook Page 53 of 76


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 Company’s 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 Opus Group Berhad, its subsidiaries and associate companies.

Confidential Any information pertaining to the Company, its business or any


Information 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.
HRD Human Resource Department of the Company in which the relevant
employee is under employ.

Prohibited Alcoholic beverages, controlled substances and dangerous drugs


Substances except for those made available to an employee under a doctor’s
prescription.

Relatives Parents, brothers, sisters, grandparents, parents-in-law of the


relevant employee.

Updated: 31 July 2008 Employee Handbook Page 54 of 76


Spouse An employee’s 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 employee’s


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 day’s 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.

Updated: 31 July 2008 Employee Handbook Page 55 of 76


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. T-
shirt, 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 Company’s 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.

Updated: 31 July 2008 Employee Handbook Page 56 of 76


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.
(ii) 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.
(iii) 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.

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 Company’s 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.
(iii) It is the Company’s 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.
(iv) 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.

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.

Updated: 31 July 2008 Employee Handbook Page 57 of 76


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 media’s 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.

Updated: 31 July 2008 Employee Handbook Page 58 of 76


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) influencing any present or future act or decision by that employee.

(b) inducing such employee to perform or omit any act in violation of his proper
duties and responsibilities.

(c) 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) returned to the donor; or

(ii) if such return is not possible or impracticable, retained by the Company for
distribution to recognised charitable organisations, the Company’s Sports
and Recreational Club or for general distribution to the Company’s
employees.

I Entertainment
Employees shall not accept any gratuitous entertainment from any of the
Company’s 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) in his personal capacity; or

(ii) 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.

Updated: 31 July 2008 Employee Handbook Page 59 of 76


J 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.

Updated: 31 July 2008 Employee Handbook Page 60 of 76


Sexual coercion is sexual harassment that results in some direct consequence to the
victim’s 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 superior’s
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 Company’s 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) at work-related social functions;

(ii) in the course of work assignments outside the workplace;

(iii) at work-related conferences or training sessions;

(iv) during work-related travel;

(v) over the phone; and

(vi) 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;

(ii) 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;

(iii) visual harassment e.g. showing pornographic materials, writing sexually


suggestive letters or other written materials, sexual exposure;

(iv) psychological harassment e.g. repeated unwanted social invitations, proposals


for dates or physical intimacy;

Updated: 31 July 2008 Employee Handbook Page 61 of 76


(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.

Updated: 31 July 2008 Employee Handbook Page 62 of 76


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
Company’s 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) Dismissal without notice

(b) Downgrading

(c) Suspension without pay up to a maximum of two (2) weeks.

(d) Stoppage/Withholding of increment

(e) Withholding of bonus

(f) Withholding of promotion

(g) Reduction of salary

(h) Written Warning

(iv) 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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Updated: 31 July 2008 Employee Handbook Page 63 of 76


(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 Authority

Employees (UE5/UP2-UT4 grade) Chairman of the


Board of Directors

Employees Designated Director


(UN1-E4/UP1 grade)

(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 Department’s 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) Notice of termination of service shall be made in writing and in


accordance with the Employee’s Terms and Conditions of Service.

(b) In lieu of such notice, the employee or the Company shall pay a sum
equivalent to the salary for the notice period required.

(c) 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.

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

Updated: 31 July 2008 Employee Handbook Page 64 of 76


APPENDIX 1

DECLARATION FORM- CONFLICT OF INTERESTS

I refer to the attached explanatory notes outlining the Company’s 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

INTERESTS IN OTHER COMPANIES


Name of Company Nature of Interest % Holding

OTHER INTERESTS

Signature: ___________________ Date : _______________

Name: Title of Position: Department/Company:

____________________ _____________________ ____________________

Updated: 31 July 2008 Employee Handbook Page 65 of 76


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 employee’s 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.

(ii) 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 Company’s 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.

(iii) 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.

(iv) 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.

(v) 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.

Insider Dealing and Confidentiality of Information

An insider includes:-

i) all directors and employees who, by reason of their employment have price-sensitive
information available to them

ii) close relatives of such employees

iii) beneficial trusts of such employee or his/her close relative

iv) 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.

Updated: 31 July 2008 Employee Handbook Page 66 of 76


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 Company’s 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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Updated: 31 July 2008 Employee Handbook Page 67 of 76


Appendix 2

Acts of misconduct include but are not confined to the following:

1. Theft/Pilferage/Misappropriation or attempt of the same of the Company’s money or


property or other employee’s money or property within the Company’s premises

2. Fraud, dishonesty, falsification or attempt of the same in connection with the


Company’s business, money or property

3. Cheating the Company

4. Fighting with or assaulting, abusing or being violent towards another employee or


authorised visitor on the Company’s premises or threatening the same

5. Prosecuted or charged with criminal offence

6. Soliciting or accepting bribes or any illegal gratification

7. Participating in unauthorised financial transactions within the Company’s premises

8. Participation in illegal strikes

9. Instigating industrial action among employees against the Company

10. Picketing in the Company’s premises except where permissible under the law,
agreement or award

11. Inciting other employees to participate in illegal strikes in contravention of the


provisions of any law or rule having the force of law

12. Wilful insubordination or disobedience whether alone or in combination with others to


any lawful and reasonable order of a superior

13. Conflict of interest

14. Breach of fiduciary relationship

15. Spreading malicious rumours about the Company

16. Gambling whether involving money or otherwise, in the Company’s premises

17. Gross negligence and neglect of duty

18. Interfering with the record of his attendance or of any other employee or falsification,
defacement or destruction of any record of the Company

19. Sleeping while on duty

20. Possession of illegal weapon or lethal weapon on the Company’s premises

21. Riotous, disorderly or indecent behaviour on the Company’s premises.

22. Smoking in prohibited/restricted areas

Updated: 31 July 2008 Employee Handbook Page 68 of 76


23. Illegal substance or drug abuse

24. Disclosing confidential information

25. Driving or unauthorised use of the Company’s vehicle without prior authorisation

26. 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

27. Habitual late coming or late attendance

28. Habitual negligence

29. Commission of any subversive act to the discipline of the Company or general
behaviour

30. Commission of any private act that brings disrepute, embarrassment or affects the
legitimate interest of the Company or ruins the image of the Company

31. Habitual breach of any Company order or any law applicable to the establishment of
rules made thereunder

32. Withholding overtime at a critical time to bring pressure on the management

33. Making material misstatement in job application, loan application or declaration

34. Unauthorised use of time cards

35. Possession, sale or distribution of unsuitable, indecent or pornographic materials

36. Committing an immoral act within the Company’s premises

37. Failure to report serious infectious or contagious illness or disease to the Company’s
medical Officer or HRD

38. Forging or defacing medical certificates or other official documents to defraud the
Company

39. Conduct which is likely to cause injury or endanger the life or safety of another
person within the Company’s premises

40. Trespassing or forcible occupation of the Company’s premises or prohibited areas

41. Illegally challenging Company to dismissal

42. Bypassing the proper channel of communication

43. Refusal to accept any communication served either in accordance with the Code of
Conduct or in the interest of discipline

44. Misrepresentation of the Company to others

45. Participation in illegal gatherings or activities in the Company’s premises or abetting,


inciting or instigating the same

Updated: 31 July 2008 Employee Handbook Page 69 of 76


46. Serious pecuniary indebtedness affecting the public image of the Company

47. Making public statements against the interest of the Company

48. Publishing or writing of books against the interest of the Company

49. 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.

50. Absenteeism

51. Quarrelling or fighting or committing nuisance at the work place

52. Misdemeanours

53. Carelessness or wilfully causing damage or loss to the Company’s property or goods

54. Deliberate damage and interference with or contamination of factory processes,


material or equipment

55. Posting, altering, removing, defacing or destroying the Company’s notices or any
material on bulletin boards or the Company’s property without the permission of the
management

56. Failure to wear uniform at work place as per the Company’s policy

57. Failure to furnish information which is within the scope of his employment and which
relates to the mutual interest of the Company and employee

58. Malingering and feigning illness

59. Loitering during working hours

60. Failure to follow safety procedures or tampering with safety devices to the detriment
of the Company or its employees

61. Infringement of safety regulations

62. Unnecessary wastage of documents and materials

63. Abuse or unauthorised use of the Company’s property, utilities, equipment or


facilities

64. Habitual or substantial negligence in the care of tools, equipment and apparatus of
the Company

65. Wilful failure to report at once to his superior any defect which an employee may
notice in any equipment connected with his work

66. 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

Updated: 31 July 2008 Employee Handbook Page 70 of 76


67. Failure to keep work place clean and tidy

68. Obstructing, inciting or willfully slowing down other employees from work

69. Slackness in performance

70. Disclosing commercial or manufacturing secrets, calculations or designs

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.

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.

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 71 of 76


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 employee’s 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.
Updated: 31 July 2008 Employee Handbook Page 72 of 76
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 Notice Period Salary in lieu


UE5-UE9, 3 months 3 months
UP2-UP7

UE1 to 2 months 2 months


UE4/UP1

UN1 to UN5 1 month 1 month


and UNT1 to
UNT4

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.

[The remainder of this page is intentionally left blank.]

Updated: 31 July 2008 Employee Handbook Page 73 of 76


OCCUPATIONAL SAFETY AND HEALTH

1.0 POLICY

1.1 The Company:

a) 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.
b) 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.
c) Considers the promotion of safety and health of its employees at work
to be an essential part of the superior’s duties for which they are
responsible and accountable at all levels.
d) 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.

2.0 ROLE AND RESPONSIBILITY

2.1 The Management

a) Is ultimately responsible for the realization of the policy and delegation


of its practical implementation.
b) Shall ensure that employees are aware of the Company’s safety
policy.
c) 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.
d) Shall promote Occupational Safety and Health consciousness among
its employees by showing a genuine and visible commitment towards
Occupational Safety and Health issues.

2.2 The Employees

e) Are responsible for correcting unsafe acts and conditions.


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

Updated: 31 July 2008 Employee Handbook Page 74 of 76

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