hr policy - english (approved)

Middle East Specialized Cables Co.

Company Bylaws

For

Middle East Specialized Cables Co.

& Branches- Saudi Arabia

Company Bylaws For Middle East Specialized Cables Co. & Branches- KSA

2 Middle East Specialized Cables Co.

UAn Overview of the Company

Trading name Middle East Specialized Cables Co. & Branches- Saudi Arabia

Contact Person PRESIDENT/ Abdulaziz Abdullah AL-Duailej

Head Office Riyadh

Branches khobar , Dammam

Total staff 600

Address Riyadh, 2nd king Abdul-Aziz Road

Activity Cable manufacture P. O. Box 60536 Riyadh 11555

Tel. (1) 4767373 Fax : (1) 4723192

Commercial Registration No.

1010102402 dated 10/5/1413H

Branch Commercial Registration No.1

4030126555 dated 19/11/1419H

Branch Commercial Registration No.2

2051023224 dated 27/11/1419H



Board of Directors' Resolution

The board of directors, based on Article 12 of Labor Law issued by Royal

Decree No. M/51 dated 23/8/1426H , decided to approve the work bylaws for

Middle East Specialized Cables Company MESC- Saudi Arabia as attached

to this decision consisting of sixty one pages including the introduction and

table of contents, upon the signature of the company's PRESIDENT and the

initial of Human Resources Manager on each page.

The work bylaws shall be effective as from the date approved by the Ministry

of Labor thereof.

Best regards,



Introduction

These bylaws have been developed to acquaint the company's employees with

its bylaws and regulations as well as assist the company's officers to take the

proper decisions in line with its approved policies towards its employees, and

to ensure fair and equal dealing with all employees according to their

employment level. These bylaws document all the administrative policies

applicable in the company. The Saudi Labor Law and GOSI Regulations

complement these bylaws for whatever issues not included herein. The Human

Resources Dept. shall be responsible for application of these Bylaws and will

be the sole party entitled to interpret the same.

Best Wishes



Chapter I

General Provisions

Article 1:

The objective of these bylaws is to identify the policies, laws, regulations and affairs of the company employees that will regulate the company's relation with the employees, by identifying and clarifying the duties and rights of both parties, thus ensuring equal treatment of all the company employees.

Article 2:

Key personnel of the company may provide recommendations regarding amendments on the contents of these bylaws to the GM, HR who shall study the possibility of amendment and inserting the required provisions according to the labor law controls, then forward to the company's PRESIDENT for approval as it is or after making the proper changes or reject all of it. Amendments, after being approved by the Ministry of Labor, shall be issued in writing by the PRESIDENT and then circulated to all department managers.

Article 3:

These bylaws may not be copied or taken out of the company premises without prior written permit from the GM, HR.

Article 4:

Each terminated employee from the company, having a copy of these bylaws, shall return the same to the company by handing it to the GM, HR.

Article 5:

These bylaws are complementing to the employment contract, notwithstanding the preferred provisions to the employee in the employment contract.

Article 6:

The following words and phrases wherever mentioned in these Bylaws shall have the meanings allocated for them as follows unless a differentiated statement have been provided:



Definitions:

1- Unpaid leave : this is a leave without pay to the employee for special conditions that is satisfactory to the company.

2- Day : 24 hours commencing as from midnight.

3- Week : 7 days commencing as from Saturday

4- Month : Gregorian month, unless otherwise stipulated.

5- Year : 12 months or 365 days starting as from January 1 and ending on December 31 each year, unless otherwise stipulated.

6- Housing Allowance : An amount paid to the employee monthly or annually according to the employment contract to assist him fulfill the housing burdens.

7- Overtime : An amount paid to the employee for work hours exceeding 48 hours per week.

8- Transport allowance : A monthly amount paid to the employee if the company is not securing a means of transport to and from the company's premises, to be determined according to the company's policies.

9- GOSI: GOSI is the government organization responsible for managing the social insurance program.

10- Training : A program that mainly aims at developing and enhancing the employees technical and vocational capabilities through attending symposiums, courses, seminars and specialized conferences, etc.

11- On the job training : A practical training for the employee whether at the work site or outside to provide him with the practical experience and provide him with specific skills related to work.

12- Trainee : The employee joining training courses at the company or outside to gain the required skills for his job.

13- Calendar : The Gregorian calendar by which all terms provided for in these bylaws, unless otherwise stipulated.

14- Government : The Government of the Kingdom of Saudi Arabia.



15- Service : The period spent by the employee in serving the company continuously since joining up to his end of service.

16- Final Exit : The final exit trip of the non-saudi employee from the kingdom to his country upon completion of his employment contract with the company for any reason.

17- Bylaws : Work Bylaws For Middle East Specialized Cables Co. & Branches- Saudi Arabia

18- Pay : is the actual wage plus all other due allowances determined for the employee against the effort exerted in the work or risks incurred under the contract of employment or work bylaws and according to the provisions of Article II of the Labor Law.

19- Basic Salary : The monthly salary other than allowances and other awards.

20- Government charges : the charges imposed by the state for some government agencies against some services such as visas, residence permits, passports, etc.

21- Direct Senior : The first senior to whom the employee reports and works under his supervision.

22- Medical Care : Those medical services provided by the company to the employee and his legal dependents through medical insurance companies according to the controls stipulated in these bylaws.

23- Business trip : A travel conducted by the employee to carry out a business assignment approved by the company.

24- Company: Means Middle East Specialized Cables Co. & Branches- Saudi Arabia

25- Family : For the Saudi employee, the wife(s) and non married sons and daughters. For the Non-Saudi employee, wife and children below 18 years old who are liable to live with him in the kingdom and who are living with him for at least three quarters of the contract term in the Kingdom.

26- Family status: An advantage given to the single employee when he marries to enjoy the benefits provided by the company to the family status employee. These advantages are provided to the Saudi employee directly upon his marriage upon submitting a proof of marriage, notwithstanding his position. The non-Saudi employee



must be at grade 6 and above. The PRESIDENT, upon the recommendation of the senior employee in the department may grant some non-Saudi employees below grade 6 the family status, provided that they have spent over five years of service at the company and is known for their unique performance.

27- Age : The age determined by the official documents provided by the employee to the company upon joining the employment.

28- Employment Contract : A written contract between the company and employee in two counterparts in Arabic language of which one is given to the employee and the other to be deposited at his service file with the company that is entered into before or at starting work, in which the employee agrees to work under the supervision and management of the company against an agreed wage included in the contract as well as the nature of work and whether the contract is definite or indefinite or for specific assignment.

29- Board of Directors : MESC board of directors 30- Senior position in the dept: The highest authority in the dept. who

directly reports to the PRESIDENT (General Manager / Vice President)

31- Permanent residence : The permanent place of residence for the non-Saudi employee as stated in the employment contract.

32- End of service award : An award paid to the employee at the end of his service by the company, calculated according to the labor law and work bylaws approved by the ministry of labor.

33- Place of work : Means all areas having branches of the company as stipulated in the employment contract.

34- Human Resources: The agency responsible within the company for recommending and interpreting policies and procedures related to these bylaws.

35- Employee : A natural person working with the company under an employment contract for a limited or unlimited period to perform a job against wage and be subject to the control and supervision of the company, even if away of its vision.

36- Employee on a married status contract : the employee with whom a contract is entered into with additional benefits related to his



family (family status) such as granting him costs for travel of his family (a wife and two children as a maximum) and bearing the costs of issuance of Iqama and exit re-entry visa expenses for them, medical insurance for the family and other benefits, provided that the employee proves that he is married upon the official documents and liable for the family status as per the company's bylaws.

37- Employee on a single contract : the employee who is not granted any benefits related to his family under the contract, notwithstanding his actual social status (married or single).

38- Labor Law : The labor law applicable in the Kingdom of Saudi Arabia under the royal decree No. M/51 dated 23/8/1426H, including its amendments, decrees and decisions complementing or interpreting this law.



Chapter II

Employment

Article (7):

Priority in occupying vacancies: When the company has vacancies, employment shall be based on selecting the most proper candidates based on the job requirements and qualifications of the candidate, taking into consideration other factors such as, culture, training, skills and some other characteristics identified by the company's management.

Priority of employment is given to the Saudi citizens within the Kingdom, while employment of non-Saudis relies on the lack of qualified Saudi employees, in such case, non-Saudis may be employed from within the Kingdom. In case of no Saudis or non-Saudis qualified for a specific vacancy, employment shall be from outside the kingdom, taking into consideration that priority is for Saudi citizens also, and all the company employees shall be subject to all the laws and regulations applicable in the Kingdom as well as the company's bylaws.

Article (8) : Employment Conditions:

It is required for applicant for employment at the company as follows:

(8-1): The applicant must be of Saudi nationality.

(8-2): To be holder of educational qualifications and experience required for the work at the place of employment.

(8-3): To pass successfully the established tests or interviews by the company required for the job.

(8-4): To be medically fit by a medical certificate from the body determined by the company's management.

(8-5): Non Saudis may be exceptionally employed according to the provisions of Articles 26 32 33 of labor law and be licensed to work in the Kingdom and has a valid Iqama.



The company may exempt Saudi applicants from one or more conditions, except for the medical fitness.

Article (9): Employment requirements for candidates:

1-9 Applicants to work for the company must submit the following documents:

A copy of the national identity card if a Saudi national. Copy of residence permit and work permit and passport if he is not

Saudi. A certified copy of qualifications and practical experience. Personal photo A medical certificate to prove his fitness from an agency

determined by the company.

2-9 For female applicants to work at the company to submit the following documents:

Approval of her guardian Personal photo if required by the government agency Copy of the ID A certified copy of qualifications and practical experience. A medical certificate to prove her fitness from an agency

determined by the company.

These documents to be kept in a file of employee's service.

Article (10): Fresh graduate wage rates : Employment of the new graduate shall be on the first rank wage on which his job classified according to the company's approved payroll.

Article (11): Re-employment of previous company employees: Previous employees of the company may be re-employed if the company needs their services, according to the following conditions:

1-11 His service must not have been terminated for infidelity reasons.



2-11 His service termination cause must not be disclosing the company's confidential information.

3-11 He must have left the company with good conduct and behavior.

4-11 He must have left the company due to expiry of employment contract or upon agreement of both parties.

Article 12 : Government Charges :

The company shall be responsible for payment of all government charges imposed on the employee as per government regulations, according to the employment contract conditions.

Article 13 : Probation period :

All new employees shall be subject to a probation period for ninety days extendable for similar terms according to article 53 and 54 of labor law, except for per diem labors who shall be subject to a probation period of one month, and the company's PRESIDENT may, based on the interests of work, exempt some employees from the probation period. During such period, the company's management and the employee terminate the employment contract without prior notice. In such case, the company shall not pay a service end award according to article 80 6 of labor law, provided that he is given the chance to express the causes of opposing termination. If the probation period is successfully completed, the new employee shall be fixed in his job, and the probation period shall be calculated within his service period.



Contract of employment

Article(14): The employee shall be employed as per a contract of employment made in two copies in Arabic and signed by the employee and the general manager of human resources and a copy shall be handed over to the employee and the other copy shall be deposited in his service file with the company and the contract shall contain a statement of work nature and the agreed upon wage and whether the contract is a fixed term contract or not or for performing specific work and any necessary data , and the contract may be made in another language in addition to Arabic provided that the Arabic shall perpetually be the approved language and the Employee Contract shall govern the relationship between the company and the employee in the light of work regulation.

Article (15): The company shall be entitled to terminate the contract of the employee who doesnt exercise his work task without justification during (15) days from the contract date between the parties if he is contracted from inside Kingdom of Saudi Arabia and if he is not at the company disposal immediately upon his arrival in the Kingdom in case he is contracted from outside.

Article (16) The contract of employment shall be valid and effective from the date the employee actually exercises work and the holidays of Eid Al-Fiter, Eid Al-Adha and the sick leave shall not be calculated in probation period.

Article (17) The company shall not be entitled to assign the employee for work that is significantly different from the one agreed upon without his written consent unless in cases of necessity and pursuant to work nature requirement and this should be temporally for a period not exceeding thirty days per year provided it shall take the necessary procedures concerning change of position in work permit since this is required for non-Saudi employee.

Article (18) Transfer: The employee may not be transferred from his original work place to another place requiring the change of his residence if this shift resulted in gross damage to the employee and of no justification required by work nature.

Article (19) The employee shall continuously be entitled to area change allowance in the amount of two basic salaries and with a minimum limit of (25000) twenty five thousand Riyal to cover the actual expenses to transfer him



and his legally dependants who live with him at the date of transfer along with the expenses of transporting their luggage unless the transfer is due to the desire of the employee.

Article( 20) Types of contracts: The contracts of employment for new employees differ according to the nationality of the employee, place of employment and the level of the position and the Saudis shall be hired as per fixed term contracts and shall be changed to non fixed- term contract after the first renewal unless otherwise stipulated in the contract, and non Saudis shall be hired according to fixed-term contracts pursuant to an agreement between the parties.

Article ( 21) Permanent Place of Residence: The Permanent Place of Residence shall be specified for non Saudi in the Employment Contract at the time of contracting with him and this place shall usually be the place of his actual residence and this place may not subsequently be changed unless after obtaining the approval of the company and in case of not being indicated expressly in the employment contract , his country of origin shall be deemed to be his Permanent place of residence.

Article (22) The expenses of interview before the employment:

The company shall compensate the work candidate for the costs of the journey and the expenses of residence in the place stated for the interview, and the travel class shall be according to the position for which he is nominated and the candidate shall not be entitled to be compensated for the time he has spent in travel and the interview.

Article (23) Medical Examination for the candidates

All employment candidates shall undergo medical examination before employment.

(1-23) Place of Examination: The medical examination shall be made by the medical authority stated and agreed upon by the company.

(2-32) The costs of Medical Examination: The company shall bear the costs of the required medical examinations

Article (24) Passport of non- Saudi Employees: The company shall keep the passports of the non- Saudi employees who are under its sponsorship in Kingdom of Saudi Arabia and it shall keep work permissions and the residence



permit valid pursuant to the applicable regulations and the president may exclude the employees whose work tasks require the frequent travel.



Chapter III Performance Evaluation, Bonuses and Promotions

Performance Evaluation : Article (25): Performance evaluation process aims at comparing the actual performance and actual productivity, and the achieved results in the performance plans set for the same to indicate what is expected to be achieved by the employee. Article 26 : All employees who are in service for over 6 months shall be subject to performance evaluation. Article 27 : The employee shall be evaluated by his direct senior with the participation of the first responsible person, by filling out employee's performance evaluation form, where the employee get one of the following grades : Excellent : Having high level efficiency and exceeding the job requirements. Very Good : Having a level that meets all the job requirements, and in most cases exceed them. Good : Compliant with the job requirements. Poor : Less than expected for the job requirements and needs improvements in various aspects of work. Article 28 : Each employee shall have the right to review and discuss his own evaluation report with his direct senior and express his opinion on it, but not necessarily a right to change the set evaluation. Article 29 : The employee who gets a poor evaluation report shall be warned and requested to avoid the shortage and improve his performance within a specific period of time .



Article 30 : The employee who gets a poor evaluation report for two consecutive years shall be terminated, notwithstanding the regulations of termination stipulated in the labor law. Article 31 : The company shall provide the employees with the necessary means to improve their performance levels, including training courses and on the job training and reallocation of duties to give them the chance to prove their capabilities. Article 32 : Annual performance evaluation reports shall be approved by the first senior in the department before being sent to the HR Dept. UBonuses: UArticle (33): The bonus shall be granted in the light of the company's financial status and according to the discretion of the company. Article 34 : 34-1 An employee shall be liable for periodic bonus whenever he gets at least grade Good after the elapse of one full year from the date of joining service or from getting the previous bonus. 34-2 The company's management may grant exceptional bonus according to the controls set in this regard. UPromotions: UArticle (35): The employee is eligible for promotion to a higher position when he meets the following conditions: 35-1 Existence of vacancy in the higher position 35-2 The availability of minimum qualification for occupying the job candidate to upgrade to it. 35-3 Achieving Very Good grade in the last periodic report



35-4 The company management my grant exceptional promotion according to the controls set in this regard.

Article 36:

If the promotion conditions are met for a higher position in more than one employee, priority shall be as follows:

Getting a higher grade Getting training courses or academic certifications Seniority Older age



Chapter IV

Training and Qualifying

Article (37): Training courses aim at developing the employees' capabilities and enhance their experiences and qualify them to perform their job duties properly according to the plans and programs set by the company for this purpose. Article (38) : The company shall develop a program to train and qualify its Saudi employees and prepare them to replace the non Saudi labor. Such replacement shall be recorded in the relative record. Article (39): The training and qualification of Saudi employees shall be according to the programs prepared for this purpose, in order to develop their technical and vocational skills and develop their knowledge for at least 6% of the total employees , whenever they count for 50 employees or more. Article 40 : Employees selected to join the training courses shall be based on the recommendation of his direct senior and approval of the first senior in the dept. Article 41 : In case of an employee candidate for a training course, the course costs should be within the budget allocated for training at the relative department. Article 42 : The employee candidate for a training course inside or outside should meet the following conditions : - Should be of good conduct and got at least Good grade in the last annual report. - Should be frequent in the language by which training shall be provided. - Should have spent at least one year in service, and the PRESIDENT may exempt him from such condition.



- The training course should conform with the nature of work performed by the employee, when he is proposed for training

Article (43): Payment of the employee's wage, allowances and other benefits shall continue for the period of training Article (44): The Dept shall be responsible for payment of all expenses of the course including tickets and fees. The trainee shall be dealt as an assigned employee in terms of the daily per diem whether inside or outside the Kingdom and his position, to be paid before the start of the course with an ample period, provided that the training period shall not exceed one month from the course beginning. Article 45 : If the course is held at the place of work of the employee or the city where he works, the company shall pay the costs and expenses of the course without any other allowances to the employee. Article 46 : The company's management may terminate or suspend the training of any employee who is not complying with the rules of the course or failure to pursue the course program, or if it is proved that he is not serious, or terminated by himself the training before the completion date fixed by the training agency without justifiable cause, and shall bear all the costs in the cases stated above. Article 47: The employee trained shall work with the company for double the training period or one year, whichever is longer, otherwise he shall pay all the costs incurred by the company for the period he did not spend in service. Article 48 : The training period shall be calculated within the actual training period of the employee, and all reports and certificates awarded to the employee shall be taken into consideration in the promotions and annual bonuses and future upgrades for higher positions.



Chapter V Wages and Allowances

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Article (49): Employees are appointed on positions having specific job descriptions and features, and employee shall get the wage stipulated in the employment contract. Article (50): The wages of employees are paid in the official currency of the Kingdom and to be paid during official duty hours at the place of work in accordance with the following provisions: (1) Employee with a monthly wage is paid at the end of the month. (2) A per diem employee is paid at the end of the week. (3) The employee terminated by the company, shall be paid all wages and dues within maximum one week from the termination. (4) The employee who quits work on his own shall receive his pay and all dues maximum within two weeks days from the date of quitting work. (5) Overtime wages shall be paid in a period not exceeding 3 days from the end of overtime work, unless paid with the monthly pay at the end of the month. Article (51): If the payment falls on a weekly rest day or public holiday, payment is made in the previous business day. Article 52 : The employee shall sign receipt of his salary or any due amount. Article 53 : The employee may authorize a person to receive his salary or entitlements upon a power of attorney signed by him and certified from the GM, HR. Article 54: If the employee is detained by the concerned authorities in cases related to work or due to it, the employer shall continue to pay 50% of the employee's pay until final award of the case, provided that the period of such detainment



shall not exceed 180 days. If such period exceeded, the employer shall not be obliged to pay any part of the wage for the excess period. If the employee is proved innocent or investigation is reserved, the employer shall pay to the employee the amounts deducted from his way, but if proved to be guilty, the amounts paid to him shall not be recovered unless the judgment provides otherwise. Allowances : Article 55 : Allowances : Allowances are awarded to compensate the employees for specific expenses related to work based on specific controls. Such allowances shall be paid in addition to the basic salaries for specific purposes and limited rates, subject to amendment or cancellation based on the updated changes in the company's policies. Article 56 : Transport allowance : 56-1 The company, at its own discretion, shall : 1) Supply a means of transport to the employee in Grade 5 or lower to fulfill the work requirements, from the place of his residence to the place of work and vice versa or pay to the employee a monthly transport allowance. 2) The company shall supply a means of transport for some employees whose work requires permanent exit from the company, or add 50% of the transport allowance provided that the added amount shall not exceed SR 500.

56-2 Entitlement :

Transport allowance shall be paid to the employees to whom the company did not provide a means of transport to transport them to and from the company premises.



56-3 Monthly transport allowance :

Monthly transport allowance is determined at 10% of his basic monthly salary, with minimum SR 500 , and maximum the allowance allocated to the job grade as per the following table :

Grade Transport allowance

12 10% of the basic salary with maximum SR 3000 and

minimum SR 500

11 10% of the basic salary with maximum SR 2000 and

minimum SR 500

10 + 9 10% of the basic salary with maximum SR 1300 and

minimum SR 500

8+7+6 10% of the basic salary with maximum SR 1000 and

minimum SR 500

5+4 10% of the basic salary with maximum SR 800 and

minimum SR 500

3+2+1 SR 500

Article 57 : Housing Allowance :

57-1 The company, at its own discretion, shall :

Secure an accommodation to the employee in Grade 5 or below or pay to him a monthly housing allowance.

57-2 Entitlement :

Housing allowance shall be paid to the employees to whom the company did not provide an accommodation.

57-3 Housing allowance value : The company shall pay to the employee a monthly housing allowance equal to 25% of the basic monthly salary. Thus the annual housing allowance shall be equal to 3 basic salaries, without a maximum limit, with a minimum limit for Saudi citizens SR 15.000 annually.



Article 58 : Mobile phone allowance :

58-1 The company shall pay a mobile phone allowance to those whose duties so require, after the recommendation of his direct manager and approval of the first senior in the dept. and GM, HR according to the following table:

Position / Grade Monthly allowance

President, Vice President and general managers (Grade 12 and 11)

1000

Sales branch managers 800

Sales engineers managers at grade 10 and 9 500

As per job requirement 300

As per job requirement 200

Drivers and messengers 100



Chapter VI Boarding Business Trips - Remunerations

Boarding: Article (59): Obligation to pay employee boarding pass expenses for himself or his family members, in the following cases: (1) At the beginning of the contracting from the country where the employee was recruited from to the place of work, whether contracting was inside or outside the Kingdom or according to the employment contract. (2) At the end of service and return to his point of origin based on the provisions of article 40-1 of labor law. (3) When the employee enjoys his annual leave, his boarding shall be according to the provisions of employment contract. (4) The company shall pay travel tickets at the economic class for non Saudi contractors and entitled dependents (a wife and two children as a maximum), from the nearest airport of their permanent residence to the place of work. (5) The employer shall not pay the costs of employee's return to his country if he is not fit for the job, or if he decided to go back without legal cause or in case of committing a violation that lead to his repatriation upon an administrative or judicial award. Business Trips : Article 60 : General Policy : 60-1 The company's policy stipulates that the business trips meeting the work requirements and at the lowest limit possible. The business trip is the trip assigned to the employee officially by the company outside the work site for a limited period. 60-2 Business assignments at locations less than 100 km away from the work site are considered local business trips and shall be subject to local trips controls and not subject to the controls of this procedure. 60-3 The business trip starts at the first day of assignee start to work at the allocated country and ends with the last day of the assignment in addition to the travel days as follows: 1 day inside the Kingdom and Arab countries 2 days to European countries and Central Asia



3 days to North and South America and East Asia 60-4 No overtime shall be paid during business trips, but week end days shall be compensated with substitute days after the expiry of the business trip and return to his duty. 60-5 If the employee got sick and stopped work during the business trip, whether he was admitted to the hospital or took rest at the hotel, the company shall bear the expenses of treatment, residence, transport and food. The suspension period shall be considered as sick leave according to the relative company's policies. Article 61 : Residence and transport : 61-1 The company shall book a travel ticket to the employee at the class he is eligible for, and a daily per diem lumpsum shall be paid for the number of days approved in the business trip form according to the following table to cover all the trip expenses (residence, transport, catering, etc. ), regardless of the actual expenses

Class

Tickets Daily per diem

(hotel-transport-catering-sundries)

Middle East & North Africa /

Others

KSA & All countries

Europe-USA-Korea-Japan

12+11 Business class 2000 3000

10+9 Business class / Economy class

1300 2000

8+7+6 Economy class 900 1400 5+4 Economy class 650 1000

3+2+1 Economy class 550 850 61-2 If the employee wishes to get a down payment to cover the catering and other expenses, the down payment shall be estimated by the HR dept, taking into account the country of assignment. 61-3 If the employee wishes to use his own car for the business assignment within the Kingdom, the ticket value shall be paid to him according to the job grade, provided that he gets the approval of HR dept. in advance. Article 62 : Business trip inside the work area:



62-1 Business trips inside the employee's work area shall be exempted from filling the business trip form. 62-2 If the timing of the business trip coincides with the time of a main meal, the employee shall be entitled to take his meal provided that he provides the relative invoices, at 100 Riyals as a maximum for the meal. 62-3 It is expected that the employee, assigned with a business trip within the work area for over one day, returns back to his work location daily (only in exceptional cases with the approval of the first senior in the dept. and approval of the HR, he may be compensated for the actual expenses for residence and catering).



Chapter VII

Days and hours of work and rest

Duty and overtime policy

Article (63): Main duty programs: The company's higher management shall set the main duty programs for each area or group of employees based on the work requirements and Saudi labor law as well as the company's policies. Based on work requirements, the company shall set duty hours based on working for 48 hours per week from 8.00 A.M. up to 4.30 P.M. with 30 minutes lunch break within 12.00 P.M. to 01.30 P.M., and the company may change the duty programs when required in a manner that is not violating the labor law. Article 64 : Shift duty program : Based on work requirements, the employee shall work on a shift basis to perform their duties that require existence continuously in a specific operation. Such continuation shall be achieved through 3 shifts 8 hours each, so that work continues for 24 hours per day. If an employee is assigned to work for over 48 hours per week, he shall be entitled to get overtime pay according to the provisions of this policy. Article 65 : Calling employees for work : If an employee is called to work, the actual working hours beyond the official duty hours and during official holidays shall be calculated according to overtime policy. Article 66 : Duty hours : A) Actual duty hours are changeable from time to time due to religious or seasonal reasons, for considerations related to work progress, and the HR dept. shall be responsible for informing all employees about such changes in advance through the department managers. B) It should be noted that an employee should not work for over 5 continuous hours without break, provided that such break shall not exceed 30 minutes per time.



C) Weekly holidays for all employees shall be on Fridays and shall be fully payable, except for employees whose jobs require existence of employees for 24 hours. D) The weekly holiday may be replaced with any other day of the week, if work so requires, provided that the labor office is notified with the same, and the weekly holiday may not be compensated with cash allowance.

Article 67: Duty hours during Ramadan:

The normal duty hours for Moslem employees shall be reduced during Ramadan month to 6 continuous hours per day, for which the employees receive full pay.

Moslem employees who work overtime, shall get paid for each duty performed over the assigned 6 hours per day or exceeding 36 hours per week, based on hour rate as explained in item 5-5 herein.

Article 68: Overtime

Work time exceeding 48 hours per week shall be calculated as overtime, and the company may, within the limits of Saudi labor law and according to the employment contracts and work requirements, extend the duty hours programs and assign employees work over 48 hours per week or work during the official holidays upon the employees agreement. Whoever, the employee may not work more than 2 hours overtime per day.

68-1 Scheduled overtime:

No overtime may be performed and no payment shall be given for it unless the concerned employee gets a written approval for the same from his direct manager.

68-2 Overtime pay:

Employees assigned overtime duties shall be entitled for payment for the hours actually worked of the basic salary of the employee.



68-3 Overtime pay for dept. managers at grade 8 and above:

Department managers and those on grade 10 or over (and who holds grade 8 & 9 in condition that they are authorized toward their subordinates such first senior of the department) shall be compensated for the overtime hours against the actual worked hours with paid leave on other days, and may be exception in some cases by the commendation of the first senior in the dept. and approval of the President.

684 Control and notification:

For the proper control, the direct senior and first senior in the dept shall ensure that the approved overtime is subject to proper supervision that is recorded and notified accurately. Overtime shall be notified in terms of the employees who are entitled to get paid on a monthly basis to the payroll division, including the hours worked by employees over the normal duty hours, if any. Notification about the overtime should be within the week preceding the month in which work shall be performed.

68-5 Calculation of overtime pay:

a. Hour rate of normal duty = monthly basic salary ------------------------- Days of the month/8hours

b. Overtime Hour rate = hour rate of normal duty x 150%



Chapter VIII

Loans Article 69: Normal loans on wage:

69-1 Loan amounts should not exceed three basic monthly salaries, and loan amount may be increased to five basic salaries with the recommendation of the first senior in the dept and GM, HR with the approval of the President to be repaid on two years as a maximum.

69-2 The employee applying for a loan must have spent at least one year of service and that the end of service award at the time of giving the loan should be covering the loan amount granted to the employee.

69-3 Loan shall be paid on monthly installment to be deducted from the monthly salary not exceeding 10% of the monthly salary effective from the following month in which the loan is granted.

69-4 The employee getting a loan shall not get other loans, including loans from other external agencies (banks) until the present loan has been repaid.

69-5 The period between repayment of the loan and granting another loan must be at least one year, and priority shall be for those who has not got a loan before.

69-6 There is a limited annual budget for loans and should be complied with.

69-7 The board of directors shall approve the loan budget.



Chapter IX Vacations

I : Annual leave:

The company grants its employees a fully paid annual leave, and each employee is required to enjoy his leave at the time of entitlement unless the work requires postponing it.

Article 70: Entitlement for the annual leave shall be according to the following rules:

70-1 The President, grade 12 and 11 shall be entitled for fully paid annual leave of 35 calendars, not working days, after completion of 12 months of service, to be increased to 40 days, after five years of continuous service

70-2 The other company employees are entitled for fully paid leave as follows:

Saudi employees at grades 10 up to 1 , 30 calendar not working days, after completion of 12 months of service, to be increased to 33 days, after five years of continuous service and increased to 35 days after 10 years of service.

Non-Saudi employees at grades 10 up to 6 , 30 calendar not working days, after completion of 12 months of service, to be increased to 33 days, after five years of continuous service and increased to 35 days after 10 years of service

Non-Saudi employees at grades 5 up to 1 , 21 calendar not working days, after completion of 24 months of service, to be increased to 30 days, after five years of continuous service

70-3 The employee who did not enjoy his annual leave due to work conditions may retain his leave balance and enjoy later with maximum 90 days, with the prior approval of the company.

70-4 The employee whose service is terminated shall be compensated for part of accrued vacations that the employee did not enjoy. This does not mean that the employee is entitled to postpone his annual leave from the entitled year except with the approval of the company.



70-5 The employee whose service is terminated during the probation period shall not be entitled for any vacation.

70-6 At the time of enjoying his vacation, the employee shall sign a declaration showing the beginning and end dates of the vacation with the place where he will spend his vacation.

70-7 Annual vacation shall not be extended if including weekly holidays.

Article 71 : Annual leave division :

The annual leave may be divided according to the following :

71-1 The annual leave may be divided with the recommendation of the direct senior and first senior in the dept.

71-2 Annual leave must be enjoyed at the same year of entitlement and may not be postponed from one year to another except with the approval of the HR dept.

Article 72 : Travel tickets for the annual leave to non-Saudi employees:

The company shall provide air travel tickets at the economic class for non-Saudi employees and their dependents (a wife and max. two children) living with them in the Kingdom, when they enjoy their annual leave, once only per year, or according to the provisions of the employment contracts. The employee may get the value of such tickets at the entitlement day minus 10% of their value.

Article 73 : Failure to proceed work after expiry of the annual leave :

The employee who fails to proceed work after expiry of his annual leave shall be considered absent without permission, unless his absence is for reasons out of his control, with which the management is convinced, provided that the employee has notified his direct senior promptly upon the occurrence of such conditions and has got the relative approval according to the applicable procedures of vacations.

Article 74 : Disconnecting the annual leave :

In exceptional cases, and for emergency conditions, the company may request the employee to return back to work before the expiry of his vacation. In such case, the period not enjoyed by the employee shall be added to his following



vacation, and the employee may resume his vacation if there is sufficient time, after the emergency cases expire. The latter case, the employee shall be compensated for all the actual expenses incurred by him for attendance and return to his vacation place, if he is enjoying his vacation outside the area of his employment.

Article 75 : Annual leave pay :

Annual leave pay shall be paid to the employee based on the last salary he received when enjoying his leave according to the number of leave days.

The employee shall be entitled to receive the leave pay in advance, if the leave period is over twenty working days.

Article 76 : Cash remuneration for the annual leave :

The employee may not assign his annual leave for pay or without pay, and he may be compensated at the end of his service for the due leaves not enjoyed.

Official holidays: Article (77): Eids and events : The company shall grant its employees fully paid official holidays as follows: A - Four days on the occasion of Eid Al-Fitr commencing as from the 29th day of Ramadan According to Umm Alqur calendar. B - Four days on the occasion of Eid Al-Adha starting from Arafa day. C - One day on the occasion of National Day of the Kingdom, September 23rd of each year. D If the employees annual leave has Eid holidays or the National Day, they will not be calculated within the annual leave. Article 78 : Weekly off days during official holidays : The official holiday shall be extended by the days of weekly off days within it. Article 79 : Work during official holidays : If the work conditions require the employee to work during the official holidays, he shall be compensated with



maximum five days for the working hours during which he worked during the official holidays according to overtime hours policy. Article 80 : Calculating holidays during sick leave : Sick leaves shall not be extended with the days of official holidays coming within them. Special leave: The company's policy is to grant the employee a paid or unpaid special leave when there are conditions that justify such leave. In all cases, the leave shall be for a limited period to the minimum for the specific condition, provided that the employee provides the company with the documents supporting such conditions. Article (77): Marriage leave: Three working days when the employee gets married, once during his service at the company, Article 82: New born leave: Employees shall be entitled for a full pay leave for one day, provided that such leave is enjoyed at the time of birth not later. Article 83 : Leave for death of a relative : the employee shall be entitled for 3 working days leave at the death of a wife or one of his parents or relatives, sons, grandsons, brothers or sisters. The employee shall be entitled to one day leave in case of death of a cousin, step-father, step-mother or nieces The female employee is entitled for 15 days leave in case of death of her husband. Article 84: Hajj Leave: The Moslem employee is entitled for a paid leave between 10 to 15 working days including Eid Al-Adha holiday to perform Hajj if conditions are met. a. The employee must have spent at least 2 years of continuous service at the company. b. The employee must have not enjoyed such leave during his service at the company, as it is given once during his service at the company.



c. Work requirements shall be taken into consideration in approving such leave, so that the work progress shall not be affected with the employee's absence.

Article 85: Exam Leave: The employee who follows his education at an educational institution inside the kingdom shall be entitled for a leave with full pay for the duration of the exam, with the exception of the repeated exams due to failure provided that he has taken the prior approval of the company on his admission and according to the following conditions:

a. The employee must be a Saudi citizen, and the company's President may exempt from such condition. b. The specialty required for study should be within the specialties required by the company. c. The specialty and degree must conform with the nature of the employee's present or future job. d. The employee should submit a copy of the academic record at the end of each semester. e. The application should include an acceptance letter from the institution where the employee shall study.

Article 86: Unpaid leave: Upon the company's approval, the employee may get unpaid leave in case of emergency unforeseeable conditions with maximum 20 continuous days, provided that the following is met:

a. The Direct Manager must be satisfied with the conditions. b. Approval of the first senior in the dept. where the employee works c. Approval of the GM, HR, if the leave exceeds 20 days, and the employment contract shall be suspended for the period of the leave.

Article 87 : Sick leave:

An employee who is absent from work due to sickness, may be given a sick leave during a year with full pay or part thereof based on the period, as follows: 1. Leave due to sickness : (A) The first thirty days with full pay. (B) The following Sixty days with three-quarters pay. (C) The following thirty days without pay. Then the company shall decide his case, based on the work interest, after consulting the approved medical agency. 2. Leave due to work injury or occupational sickness:



(A) The first six months with full pay.

(B) The following five months with three-quarters pay.

Then the company shall decide, after consulting the approved medical agency, and upon ensuring the injury or sickness and considering the remunerations related to work injuries at the occupational risks branch to avoid doubling remuneration. Article 88: Escort Leave : the company may, for medical purposes, grant the employee an unpaid leave to accompany one of the legal dependents according to the following conditions: a. Escort leave must not exceed 15 days per year b. Submission of a medical report approved from the hospital assuring the need for an escort c. Treatment should be in the medical facilities approved by the company d. Work should not be affected by his absence e. Approval of the department manager on the leave f. Approval of the GM, HR



Chapter X

Women employment provisions

Article 89:

The company shall bear the expenses of medical examination, treatment and delivery expenses.

Article 90:

Employed women shall be entitled for maternity leave for a period of four weeks prior to the anticipated date of delivery, and the next six weeks to delivery. The date likely to give birth shall be determined by the medical accredited facility or by a medical certificate approved by a health authority, but certificates from external doctors shall not be acceptable. A woman may not work during the six weeks following delivery.

Article (91): The remuneration paid to female workers during their maternity leave shall be as follows:

A) the female employee who spent less than a year in service has the right to maternity leave without pay.

B) the female employee who spent one year or more in service has the right to maternity leave at half pay.

C) the female employee who spent three or more years on the start of leave in service has the right to maternity leave with full pay.

D) the female employee who benefited from maternity leave with full pay is not entitled to payment of the annual leave for the same year, and she will be paid half annual leave pay if she has benefited in that year of maternity leave at half pay.

Article (92): the female employee in the early months of pregnancy is required to promptly notify the company to conduct periodic medical examination and decide the necessary treatment and determine the likely date of delivery.

Article (93): the company shall take into account in determining the period of lactation, the employee's wish and conditions as much as possible, and the employee shall keep to the schedule organizing the same.



Article (94): The Company shall prepare places for the convenience of female employees away from men. Female workers need for modesty in dress and appearance and adherence to the established customs and traditions prevailing in the country.

Article (95): It is not permissible mixing of men and women in the workplace and other facilities at work.

Article 96 : Employer may not terminate the employee or warn her of termination while enjoying her maternity leave.

Article 97 : Woman's work shall be in the fields that conform with her nature, and it is prohibited to assign her hazardous works or harmful industries, as identified by a decision from the minister.

Article 98 : At all places where women are working and at all occupations, employer shall supply the proper seats for their convenience.

Article 99 : The employed woman, when she resumes her work after the maternity leave, may take short breaks not exceeding one hour per day for lactation of her newborn, in addition to the break times permitted to all employees. Such break times shall be calculated within the actual working hours and shall not result in reducing pay.



Chapter XI Prevention and safety Medical aid levels

Medical care Vocational injuries and occupational diseases Prevention and safety Article (100): In order to protect employees from dangers and diseases arising from work, the company takes the following measures: (A) Advertise in prominent places about the dangers of work and means of prevention and instructions to be followed. (B) The prohibition of smoking in the workplace as advertised. (C) Secure firefighting equipment and set up emergency exit. (D) Maintaining the premises in a complete clean status with disinfectants. (E) Provide potable water for drinking and washing. (F) Provision of toilets at the sanitary level required. (G) Training of personnel on the use of safety and prevention tools provided by the company. Article (101): The company shall appoint at each location of work an official responsible for the following: (A) Develop preventive awareness among the employees. (B) Periodic inspection to ensure the safety of equipment and proper use of the means of prevention and safety. (C) Inspect and record incidents and reports to include the means and precautions to ensure avoidance of recurrence. (D) Monitor the implementation of the rules of prevention and safety. Levels of medical aid: Article (102): The company shall provide in each place where there is less than fifty employees a closet for medical aid to contain sufficient quantities of medicines, bandages, disinfectants, etc., as referred to in article 142 of labor law, and assign a trained employee or more to conduct first aid for injured employees. Article (103): The company shall prepare in each place where there is more than fifty employees a room for medical aid according to the provisions of labor law, and



assign a licensed nurse to conduct first aid for employees under the supervision of a doctor. Medical care: The company shall provide medical care to the Saudi employee, his family and his parents if they are his legal dependents, and also the non Saudi employee and his legal dependents if he is under family status contract, through medical insurance companies or at the medical facilities determined by the company according to the controls provided for in these bylaws and according to the insurance policy. The insurance class shall be determined according to the following table.

Class Medical Insurance

12 VIP

11 VIP

10 A

9 A

8 + 7 + 6 , Saudi employee at married status contract from class (1-2-3-4-5)

B

5 + 4 , Saudi employee at class (1-2-3) C

3+2+1 CR

Article (104): Medical examinations to employees: The company may require any employee to conduct medical examinations at any time during service at the company, and the employee should agree to be subjected to such examinations. Article (105): The company shall provide treatment to employees according to the agreed conditions with the medical insurance companies. The company shall determine the place of treatment in coordination with the insurance company, and no treatment invoices shall be acceptable directly from employees for payment through the company except in cases of emergency, in such case a medical report shall be necessary.



The company is not obliged to treat the employee who is suffering an incurable disease except for the period provided for in the labor law, and the company may consider terminating him after that period. No employee is allowed to contact the insurance company except through the HR dept that is responsible for insurance for the new employees, and follow up those who are terminated, and must notify the insurance company with any changes in this regard. The HR dept shall notify the insurance officer in case of any pending amounts not settled, and in case of any insurance documents rejected. In case of employee's travel within the kingdom, or his travel abroad, the HR dept. shall notify the insurance company in writing to identify the hospitals and clinics to which the employee could refer.

Article 106 : Controls for treatment of children of Saudi and non- Saudi employees:

The company shall provide medical care for the sons of Saudi employees until they are employed or reach 22 years old, whichever comes first. The company shall provide medical care for the daughters of Saudi employees until they are employed or getting married, whichever comes first. The company shall provide medical care for the male and female children of non-Saudi employees until they complete their study or reach 18 years old, or get married for daughters, whichever comes first, provided that they are legally and permanently staying in the Kingdom. A permanent stay means spending three quarters of the contract term in the kingdom.

Article 107 : Controls for medical care for parents:

Submit guardianship deed from a legal court in the city where the employee works.

Article 108 : Excluded medical expenses : Medical glasses, dentures, artificial limbs, surgeries, plastic surgeries and the like are excluded from treatment.



Vocational injuries and occupational diseases: Article (109): An employee inflicted with a work injury or occupational disease must notify his direct senior or management or refer to the doctor directly if his case so requires. Article (110): The doctor treating the employees must notify the management on any indications showing an occupational disease or epidemic among the employees. Article (111): The company shall subscribe on behalf of the employees at the occupational risks branch at GOSI. Article 112 : Work injuries and occupational diseases shall be subject to the provisions of GOSI occupational risks branch.



Chapter XII

Obligations & Prohibitions

Company Obligations:

Article (113) :

The company is committed as follows:

1- Treating its staff appropriately and in a way that reveals its interest in their conditions and privileges, besides avoiding any act or saying that hurts their religion or dignity.

2- Giving employees the necessary time for practicing their rights stated in this bylaw without prejudice to wage.

3- Facilitating the tasks of competent authorities' employees concerning the inspection or the control and supervision of the sound performance of labor regulations besides the bylaws and the resolutions issued accordingly, in addition to providing competent authorities with all necessary information required for such purpose.

4- Paying the wages of employees in the time and the place specified in the contract or as recognized taking into consideration the requirements of related regulations.

5- If the employee attends to work in the daily period specified in the employment contract or expressed his willingness to perform its duty during such period and prevented from doing so due to a reason related to the employer, he will be entitled to be paid the wage of the period.

6- The company, its agent or anyone having an authority over employees must make strict control and not allow any restricted material, either legally or on regulatory basis to be entered to work site, and any violator will be subject to legal penalties besides the administrative actions stated in the schedules of violations & penalties.



Employees Obligations:

Article (114) :

The employee is committed with the following:

1- Comply with the instructions and the regulators related to work unless they contain anything contradicting the texts of employment contract, public regulation or ethics or otherwise deemed as hazardous.

2- Abide by the timing of duty hours. 3- Performing work perfectly as required. 4- Take care of equipments and tools under one's disposal besides keeping

the properties of the company in good condition. 5- Commitment to good conduct and manners, acting cooperatively with

colleagues, superiors' obedience, customer satisfaction in the scope of specialty and within the limits of regulation.

6- Provide all assistance and help in case of emergency or the risks affecting the safety of place or the staff.

7- Keep the technical and industrial secrets of the company or any secrets disclosed in the course of duty.

8- Abstain from exploiting position in the company for making profit or personal for himself or third party at the expense of the company interests.

9- Inform the company of any change concerning the marital status or residence place within one week at most since the occurrence of such change.

10- Abide by the instructions, the regulations, the customs and the traditions applicable in the country.

11- Not to receive visitors in work places other than the company employees.

12- Not using the company instruments and equipments for personal purposes.



Chapter XIII

Social Services

Article (115) :

The company shall Prepare a place for performing prayers. Article (116) :

Prepare a place for having food

Article (117) :

The company shall pay to the heirs of the deceased employee the salary of the month during which he died.



Chapter XIV

Grievance

Article (118) :

Without prejudice to the employee's right to plead to competent administrative or judicial authorities, each employee in the company may complain to the management concerning any action or procedure against him. The relevant petition will be provided to the management within 7 days from the date of knowing such procedure, and no employee shall be harmed due to submission of his petition.

Article (119) :

The employee shall be notified with the result of his petition within maximum 3 days from the date of submitting his petition.



Chapter XV

Service Termination

Article (120) :

The employee will be terminated in the following cases:

a) If the period of the contract is expired. b) If the employee resigns at the indefinite term contract. c) If the contract is terminated for any of the reasons stated in the articles

(75) , (80) of labor law. d) If the employee leaves work in the cases specified in article no. (81) of

labor law. e) If the employee is absent from work due to illness for periods exceeding

120 days consecutively or intermittently during a single year f) If the employee undergoes a complete disability, evidencing the same with

an approved medical report. g) The death of the employee. h) If the governmental authorities canceled or not to renew the work permit

or the residence permit of the non-Saudi employee or else deport him abroad.

i) If the employee reaches the age of sixty for males and fifty five for females, and the company may, upon the employee's approval, extend the employee's service beyond such age.

Article (121):

In the cases in which labor law necessitates to cancel or terminate the employee, a notice must be delivered to the other party, the following must be considered:

a- The notice must be in writing. b- The notice must be delivered at the work place, and the addressee must

sign the notice besides including the date of receipt, c- If the addressee refuses to receive the notice or sign the same, the notice

will be sent by registered mail to his address as recorded in his file or placed on the ads board inside the company.



Article (122):

If the employee's service in the company expires or terminates he will be given his own documents deposited in his file and he will be given an experience certificate as provided for in article 64 of labor law free of charge.

End of service award :

The company's policy provides for application of the benefits programs that shall achieve balance between the company's objectives and employees basic needs, in line with the regulatory requirements and maintain the competitive position of the company.

Article 123:

End of service award: If the work relation between the company and the employee is terminated, the employee shall be entitled for end of service award according to the provisions of these bylaws, notwithstanding articles 84 and 85 of labor law.

123-1 The end of service award value: the end of service shall be calculated as follows:

a. Half month salary for each year of the first 5 years of service b. One month salary for each year of service for the years following the

first five years.

123-2 Elements included within calculation of the end of service award.

End of service award shall be calculated on the basis of the last actual salary received by the employee.

123-3 Calculating end of service award :

Indefinite period contract : If the employee resigns after continuous service in the company for at least two consecutive years but not exceeding five years,



he shall be entitled for one third of the end of service award stated above. If his service exceeded five consecutive years but less than ten years, he shall be entitled for two thirds of the end of service award. If he resigned after ten years of service he shall be entitled for the whole end of service award, provided that the employee notifies the company with his wish to quit at least one month, unless the contract otherwise stipulates.

Definite period contract: the employee shall be entitled for full end of service award if he quits after the completion of his contract.

Definite period contract employee shall be dealt with in the same way as the indefinite contract employee in case of resignation before the expiry of the contract and his resignation is accepted, provided that he notifies the company with his resignation within thirty days at least.

At the definite period contract, the employee shall not be entitled for end of service award if he quits without resignation or unacceptable resignation by the company.

To accept resignation, approval of the first senior at the dept. and GM, HR is a condition.

123-4 Cases where the employee is not entitled for end of service award :

In addition to what is mentioned above, the employee shall not be entitled for end of service award if his contract is cancelled for the causes provided for in article 80 of labor law.



Chapter XVI:

Awards

Article (124):

Awards will be given to the employees who are proved to be diligent and efficient in serving the company in a way that increases production or the employees who perform exceptional duties other than main assignments within their specialties, or those who innovate new approaches for work for raising efficiency and productivity, eliminate risks or damages away from the company according to applicable limitations.

Article (125): Performance reports stated in this bylaw will be considered as a basis for providing the awards stated in this bylaw.

Article (126): Awards will be paid-out in two categories:

I. Immaterial awards as follows: a- Letters of appreciation. b- Writing the employee's name in the Honor Board.

II. Material awards, including : a- Exceptional bonuses and promotions b- Production rewards c- Additional gratuities d- Patent rewards e- Additional travel tickets than those stated in the bylaws f- Granting additional vacation with payment. Article (127): Awards are granted by a decision from the President or his assignee.



Chapter VII

Violations and Penalties

Article No (128) : Company Relation with the Employee: Company management is keen on strengthening its relation with the employees on basis of respect and mutual understanding in a way that helps in achieving company objectives and finding a balance between work and fair dealing with its staff. This can be achieved through following policy of open and frank discussion, and negotiation for solving the problems and issues related to employees, noticing that this policy does not conflict with employee rights as guaranteed by the Saudi Labor Law.

Article No (129) Acts Subject to Penalties

Company management takes the suitable act when behavior of any employee is characterized by the following features:

a- It is contrary to the general laws, and company regulations. b- It is against achievement of the company objectives. c- It negatively affects the work and employees environment d- Committing by employee of one of the acts stated in the Violations and Penalties

Schedule as attached to this bylaw, and which is considered as an integral part thereof.

Penalty may not be applied to any employee before accurately investigating the incident circumstances and reviewing them and clearly specifying employee responsibilities for the incident. When the suitable penalty is applied, it will be understood that purpose of penalty is correction and getting rid of the undesirable behavior by the employee. Article No (130): Verifying Violation Commitment: The company carries out instant investigation on any violation committed by an employee, which makes him subject to any of the penalties stipulated in the companys Violations and Penalties Table. Article No (131): Penalties Application Regulations:



a- Notifying the employee in writing of the violation within no more than three days from date of getting known of it.

b- Violation shall be at workplace, caused by work and it shall be related to work. c- It is not allowed to apply more than one penalty for one violation. d- Employee may appeal against any penalty applied against him.

Article No (132): Penalties to be Applied against Employee Warning: This is a verbal or written reminding sent to employee by his direct boss pointing out to the violation committed, and asking him to necessarily observe the law and abide by the rules applied to perform his job duties and not to repeat in future what he has formerly committed. Notice: It is a letter which the company directs to the employee showing type of violation made by him, and drawing his attention to the fact that he may be subject to more restricted penalty in case that he continues the violation, or commits it again in the future. Deducting a percentage from the wage within limits of part of the daily salary. Deducting from salary an amount ranging between salary of one day and five days in one month as maximum. Stoppage from Work without Salary: This means stopping employee from practicing his work within a specific term and depriving him of his salary within this term provided that period of stoppage from work does not exceed five days per month. Deprivation of Promotion or periodic bonus for no more than one year from date of its maturity or obtaining it. Service Termination with End Service Benefit: This is termination of employee service due to a lawful reason due to committing a violation without prejudice to his entitlement to end service benefit. Service Termination without End Service Benefit:



This refers to terminating employee without End Service Benefit or compensation due to committing an act or more of the works stipulated in Article No (80) of Labor Work. Article No (133): Each employee committing any of the violations stated in the violations and penalties table stated in this bylaw will be subject to the penalty shown with the violation committed by him, and the penalty imposed upon the employee will be relevant with type and range of violation committed by him. Article No (134): Authority of applying penalties as stipulated in this bylaw will be enjoyed by General Manager of Human Resources at the company or a person authorized by him, and he may replace the penalty stipulated to any violation in case of committing it for the first time with a less stringent one. Article No (135): In case that the employee commits the same violation after elapse of one hundred eighty days from committing it, he will not be considered as repeating the same, and this will be considered as committed for the first time. Article No (136): When there are multiple violations arising out of one act, the most stringent penalty will be imposed from the violations stipulated in this bylaw. Article No (137): It is not permissible to apply for one violation more than one penalty. Article No (138): Without prejudice of provision of Article No (80) of Labor Law, company may not impose any penalty against an employee for an act he commits outside work place unless it is directly related to nature of his work, or to the company or its manager in charge. Article No (139): Disciplinary Accountability will be dropped from employee after elapse of thirty days from discovering it without applying by the company of any of investigation measures for it. Article No (140): Company may not apply penalties stated in this bylaw if more than thirty days elapse from date of evidencing the violation. Article No (141): Company binds to notify employee in writing of penalties imposed upon him, as well as their type, amount and the penalty applied upon him in case of



repetition of the violation, and if employee refrains from receiving the note or refuses to sign to indicate knowledge of that, the same will be sent to him through his registered mail at his address as shown in his employment file, or this will be fixed at the Announcements Bulletin in the company. Article No (142): Fines imposed upon employees are entered in a special record pursuant to provisions of Article No (73) of Labor Law, and its total is provided every year to the Ministry of Labor to determine way of disposing of it in provision of social, health and cultural services to company employees. Article No (143): Attending before Labor Office or any Government Authority: In case that an employee is requested as a witness in a case concerning the company whether by company management or a government entity, his term of absence will be paid if this leads him to be absent from work.

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