SHVA CONSTRUCTION CO.

LTD
DISCIPLINARY ACTION AND AWARD PROCEDURE
1. PURPOSE

This disciplinary action procedure has been prepared to provide all employees and subcontractors to
comply with Iraqi legislation, SHVA company’s policies, Project management rules and HSE rules.

2. SCOPE

This procedure includes all personnel of SHVA Company and its subcontractors.

3. APPLICATION AUTHORITY

Disciplinary action can be imposed by the first superior of the employee. However, upper management
will inform first superior of the employee when the upper management decide to impose a disciplinary
action to an employee because the manpower balances of the project should be considered by all
supervisors, chiefs and managers; This is why, all disciplinary actions must be approved as written by the
project manager for the employees. If disciplinary action will be imposed to a manager or chief by the
upper management then the disciplinary action must be approved as written by the project coordinator
or higher authority.
Awards are determined by the project management team (Project Manager and all unit Managers) and
awards are given to the employees by the project management team in a celebration meeting to be
conducted monthly.
Monthly awards and disciplinary actions will be reported to the top management of the SHVA Company.

4. APPLICATION METHOD

Recordable violations will be recorded by cameras as pictures and videos. Witnesses will be found for
unrecorded violations and written witness statements to be obtained as evidence for violations.

Disciplinary action to be imposed to the subcontractor employees will be applied to subcontractor.

Subcontractor or SHVA’s employee will be notified about disciplinary action as written notification.

The personnel who break the golden rules of SHVA Company will be terminated immediately after
manpower planning instead of the personnel who are terminated.

The personnel who are terminated cannot be employed by any unit of the SHVA Company and
subcontractors in the projects of SHVA Company. The personnel who are terminated cannot be used as
vendor and suppliers also.

5. APPROVAL SECTION

The disciplinary action procedure prepared for SHVA Company and to be applied to all subcontractor
and SHVA Company’s personnel has approved and put in place by the following authority.

Board of Directors

SHVA COMPANY DISCIPLINE AND AWARD PROCEDURE Page 1

 DISCIPLINARY ACTION REQUIREMENTS
SHVA PERSONNEL SUBCONTRACTORS
№ VIOLATION
( IN 12 MONTHS) (IN 12 MONTHS)
1 Breaking Company Golden rules First violation: Termination First violation: Termination
Not to comply with the work hours without permission and First violation: written warning First violation: written warning
2 reported justification Second: written warning Second: written warning
Third: Termination Third: Termination
Racism, discrimination, insulting people’s religions, beliefs,
3 First: Termination First: Termination
traditions. Swearing, lying, threatening, and fighting.
Manipulating personnel and organizing them to leave work,
4 encourage personnel to rise up against company and project First: Termination First: Termination
managements, collectively acting and demonstrating as a group.
Stealing company’s goods, damaging company’s equipments and
5 First: Termination First: Termination
materials, tolerate equipment and material damages.
Disobedience and noncompliance to company supervisors and
6 higher administrators. Swearing, disrespecting, insulting to First: Termination First: Termination
superiors, hitting, beating and fighting superiors.
Not finishing the job within a reasonable time. Slowing the job
7 First: Termination First: Termination
without a valid mandatory reason, consciously delaying the job.
Disobedience and noncompliance to the rules, regulations, First violation: written warning First violation: written warning
8 instructions and policies of the SHVA Company. Second: written warning Second: written warning
Third: Termination Third: Termination
Not using Personal Protective Equipments and other protective First violation: written warning First violation: written warning
9 equipments according to hazards of the works performed. Second: written warning Second: written warning
Third: Termination Third: Termination
Using tobacco products in prohibited and enclosed areas First violation: written warning First violation: written warning
10 Second: written warning Second: written warning
Third: Termination Third: Termination
Breaking SHVA Company’s alcohol and substance abuse policy First violation: written warning First violation: written warning
11 Second: written warning Second: written warning
Third: Termination Third: Termination

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 Not attending meetings conducted and announced by the units First violation: written warning First violation: written warning
12 of the project and/or Company managements. Second: written warning Second: written warning
Third: Termination Third: Termination
Removing, changing and relocating the safety signs, bulletin First violation: written warning First violation: written warning
13 boards, written instructions and informative panels without Second: written warning Second: written warning
information and permission of the project HSE unit. Third: Termination Third: Termination
Disobedience site traffic rules First violation: written warning First violation: written warning
14 Second: written warning Second: written warning
Third: Termination Third: Termination
Causing personnel to be injured, die or disable by not taking HSE
15 First: Termination First: Termination
precautions or by non-complying HSE rules.
Not attending training sessions, informative meetings without a First violation: written warning First violation: written warning
16 valid reason. Second: written warning Second: written warning
Third: Termination Third: Termination
Consciously removing guards of the hand tools and machines First violation: written warning First violation: written warning
17 Second: written warning Second: written warning
Third: Termination Third: Termination
Not submitting accidents and incidents, giving wrong and
18 incomplete information, hiding evidences within scene and First: Termination First: Termination
destroy the evidences.
Breaking HSE and Traffic rules First violation: written warning First violation: written warning
19 Second: written warning Second: written warning
Third: Termination Third: Termination
Going to the project site without receiving induction training First violation: written warning First violation: written warning
20 Second: written warning Second: written warning
Third: Termination Third: Termination
Not using or removing training tags on harhats First violation: written warning First violation: written warning
21 Second: written warning Second: written warning
Third: Termination Third: Termination
Not taking fire preventive measures or violating fire preventing First violation: written warning First violation: written warning
22 rules. Second: written warning Second: written warning
Third: Termination Third: Termination
Having or causing traffic accidents (Cost of accident is more than
23 First: Termination First: Termination
one salary of an employee and or fatal accidents)
24 Driving vehicle or operating heavy equipments without having First: Termination First: Termination
driving license or operator certificate

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 Leaving the project area and camp without having written First violation: written warning
25 permission Second: written warning
Third: Termination
Performing a different job than assigned job First violation: written warning
26 Second: written warning
Third: Termination
First violation: written warning
Second: written warning
Third: Termination
First violation: written warning
Second: written warning
Third: Termination

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