Ericsson Bangladesh Hr Policy free essay sample

EBL HR Policy Manual Contents 1Recruitment:3 1. 1Recruitment Process:3 2Terms Conditions of Employment:3 2. 1Working Hours:3 2. 2Office Hours during Hartal:3 2. 3Public Holidays:4 2. 4Probation:4 2. 5Confirmation:4 2. 6Transfer:5 2. 7Promotion:5 3Termination of Employment:6 3. 1Termination:6 3. 2Exit Process:6 3. 3Dismissal:7 3. 4Discharge:8 4Disciplinary Action:8 4. 1Administration of Discipline:8 4. 2Disciplinary Procedure:8 5Grievance Handling:9 6Retirement:11 7Duties Responsibilities:11 8Confidentiality:11 9Conflict of Interest:11 9. General Considerations:11 9. 2Outside Business Undertakings:12 9. 3Ownership or Equity in other Companies:12 9. 4Family Interests and Other Alliances:12 9. 5Gifts:13 9. 6Entertainment13 9. 7Corporate Gifts and Entertainment13 10Remuneration Benefits:13 10. 1Remuneration:13 10. 2Remuneration Cycle:14 10. 3Festival Bonus:14 10. 4Performance Bonus Scheme:14 10. 5Gratuity:17 10. 6Provident Fund:18 10. 7Insurance:18 10. 8Medical:19 10. 9Leave:20 11Mobi le Phone:22 12Transportation:22 12. Pick up and drop off service:22 12. 2Car Allowance22 12. 3Pool cars:23 13Allowances:23 13. 1Overtime Allowance:23 13. 2Field Maintenance Allowance:23 13. 3Emergency Callout Allowance:24 13. 4Shift Allowance:24 13. 5Food Allowance:24 13. 6OHS Allowance:24 14Employee of the Month:25 14. 1Long Service Award:25 14. 2Team of the Quarter:25 15Performance Management25 15. 1IPM Handover:26 16Training and Development26 16. 1Training Commitment Agreement:26 17Changes:28 18Revision History:28 Recruitment: 1 Recruitment Process: Please refer to the Recruitment Process for detail guidelines. Terms Conditions of Employment: 1 Working Hours: As of 1st August 2010, office hours are from 9. 00 a. m. to 6. 00 p. m. from Sunday through to Thursday. A lunch break of 1 (one) hour between 12. 30 p. m. to 1. 30 p. m. will be facilitated. The office hours are set in general based on a 40 hours working week. However, employees can make an arrangement of flexible office hours in consultation with their Line Managers and putting priority to the business needs. Exception: Front Office employees of NOSC will work for 6 days continuously followed by 2 days holiday as weekly holiday. 1 Shift Operation: This is applicable for all Front Office employees of NOSC. The operations will be managed in three (3) shifts: ? Shift A: 6. 00 am – 2. 00 pm ? Shift B: 2. 00 pm – 10. 00 pm ? Shift C: 10. 00 pm – 6. 00 am Female employees are not allowed to work in C Shifts as per Company rules. Employees will be required to work in all shifts in rotation. Line Managers will ensure that employees must not work in a particular shift continuously for more than two weeks. Office Hours during Hartal: Regardless of the political situation of the country the company has to ensure business continuity and therefore Ericsson office remains open during Hartals; until specifically mentioned otherwise. Employees are requested to use their own judgment and required to attend office only if they feel that it is safe for them to travel and there are no si gnificant problems on the road. Employees must notify their Line Manager or Department Coordinator if s/he is unable to come to office due to security and safety issues. In case of absence due to security reasons, employees need to compensate the lost working hours either working on weekends or working extra hours during other working days. Line Managers of the employee will keep track of compensatory working days. Employees entitled for overtime and weekend allowance need to compensate for lost working hours during hartal; before claiming overtime and weekend allowance. In case an employee is unable to come to office; s/he is required to submit a leave application. Please note that, no leave will be deducted, this is for record keeping purposes only. All NOSC employees will be entitled to stay in company approved guesthouse during Hartals, continuous road blockades etc. Prior approval from Line Managers needs to be obtained to stay in the Guesthouse. Office timing remains flexible during Hartal days and employees may come to office at a time they feel safe and comfortable on the road. Reasonable transportation cost will be reimbursed (Claim form) during hartal days. This cost can be claimed via SSC Manila as per the normal expense claim process. Claims need to be approved by the Cost Centre Owner. 3 Public Holidays: The Company will observe holidays as per the List of Holidays announced at the beginning of the year. The Company will use the MCCI (Metropolitan Chamber of Commerce Industry) published list of holidays as the basis of determining the holidays it will observe as Company public holidays. 4 Probation: All Bangladeshi permanent employees are required to undergo a probationary period of 6 months. If the performance of an incumbent is not found suitable during the first 6 months; the probation period may be extended for another 3 months with clear targets. The duration of the probation period may be varied at the discretion of the Company. 5 Confirmation: HR will inform the Line Managers two weeks in advance from the date of their subordinate’s confirmation. All Line Managers will evaluate their employees in the prescribed Probation Appraisal form and rate their performance during the probation period. No confirmation letter will be issued until a Probation Appraisal form is completed and duly signed by the Line Manager and Department Head. For more information refer to the Confirmation Policy for detail guidelines. 6 Transfer: The Company at its absolute discretion may transfer an employee from one job to another or one location to another or from one department to another, one Ericsson entity to another, within and outside Ericsson Bangladesh should it be required for business requirements or training development purposes or any other business requirements. The transfer checklist needs to duly completed and approved for any transfer. The transfer will be communicated through EBL Communication centrally. A copy of the transfer letter duly authorized will be handed over to the employee only if there are changes in the terms and conditions of employment. Promotion: An employee is promoted either when moving on to a job of a higher grade with increased responsibility and complexity in the next level or when the current role has grown significantly bigger in terms of responsibility. A person is considered for promotion when his/her skills, competencies, experiences and potentials have the right match for the job to be promoted to, within the scope of the organization structure. In addition, the incumbent also has to demonstrate expected behaviors in line with the Ericsson core values. In case of promoting an incumbent to a Line Management position or promoting an existing Line Manager to the next level; the incumbent must be measured against the 3 Leadership dimensions and 12 leadership capabilities of Ericsson. The Company follows an annual promotion cycle; and promotional changes are made in January every year. However, promotions may take place at other time of the year only if/when the following criteria are met: †¢ A Bangladeshi employee replaces an expatriate employee †¢ The position justifies a higher job grade The transfer and promotion are as per the normal succession plan (agreed and documented in IPM) †¢ The incumbent has a consistent track record of good performance, values and behavior †¢ For Leadership positions (JG 4 and above), Leadership assessment results will be considered The Line manager is responsible for preparing a promotion proposal for his or her employee. The proposal must include the following: †¢ Current Job De scription †¢ Business case (moving on to a higher role, must prepare case for promotion – open positions, consistent high performance) †¢ Skills, competence, experience and potential of the incumbent Managerial and leadership skills (required for Job Grade 4 and above positions); as per Ericsson Leadership Framework The Line Manager must discuss and agree all promotion proposals with the Department Head. Once the Department Head is fully convinced; s/he endorses the promotion and sends the proposal to HR. After collating information HR arranges a meeting to discuss the promotions. All promotions in EBL must be authorized by the HR Director and approved by the Managing Director. A promotion increase at a predetermined agreed rate is considered on the existing basic salary. However, promotion salary increase should not exceed the mid-point of the next Job Grade. The salary increase percentage is based on employee’s current salary position in the new salary range. The promotion letter duly signed will be handed over to the employee with the revised terms and conditions of employment. All Promotion Proposals needs to be made in the prescribed form. Termination of Employment: 1 Termination: During the probation period, the company at its absolute discretion may terminate the employment without assigning any reasons whatsoever by giving 5 days notice in writing or payment in lieu thereof. The employee can also terminate his or her employment by providing 5 (five) days notice in writing. After confirmation of services, the company at its absolute discretion may terminate the employment without assigning any reasons whatsoever by giving 1 (one) month’s notice in writing or payment in lieu thereof. After confirmation of services, the employee can terminate his or her employment by providing 1 (one) month’s notice or by paying 1 (one) month’s gross salary in lieu thereof. The Company reserves the right not to accept the surrender of salary in lieu of notice. 2 Exit Process: All permanent employees who have rendered resignation will have to complete the Company exit process as per the following: If an employee decides to resign, s/he will have to provide notice as per the terms of individual employment. The exit date will be discussed and agreed with the Line Managers and Department Head and the employee will be issued written confirmation from HR on the separation/termination of services. Prior to formal release from the company, an exiting employee will have an Exit Interview session (if deemed required) conducted by HR. The content of the exit interview will be kept strictly confidential. Except from HR no other function will have access to the completed form. This information will be retained and will be kept in the personal file for the purpose of analyzing attrition rate. Employees’ final settlement will not be processed until and Exit Interview is completed. Once the date of exit is agreed the departing employee will have to complete the Clearance Form in order to obtain official release from HR. The employee shall be responsible to return all company property, as per the following (which includes but not limited to): †¢ Return of ID card Insurance card All company documents (electronic or paper format) †¢ Keys of office, building, lockers etc †¢ Company vehicle (if any) †¢ Computer access authorization codes, pen-drive and other computer accessories. †¢ Telephone and/or Mobile set, including SIM cards †¢ Corporate credit card (if any) †¢ Financial information/outstanding dues †¢ Any other company property †¢ Le ave status and any dues The incumbent must close all financial dealings with third party made during employment. HR will only process formal release letter upon receiving duly completed Clearance Form signed by all concerned. 3 Dismissal: An employee can be dismissed by the Company if an allegation of misconduct is proved against him or her. The accused will get the opportunity to defend himself / herself. If the allegation is proved, the employee may be summarily dismissed without any notice. No long term benefits will be paid to the dismissed employee. The list of misconducts is given below: Following acts or omissions will be treated as misconduct. They are the following (which includes but not limited to): †¢ Willful insubordination or disobedience. †¢ Long absence (10 days) without authorized/approved leave Theft, fraud or dishonesty in connection with the Company business. †¢ Taking or giving bribes on any illegal gratification in connection with the employees or any other employees’ employment. †¢ Habitual breech of any law or rule or the Company procedure. †¢ Riotous or disorderly behavior in the Company premises or any act subversive of discipline. †¢ Falsifying, tampering with, damaging or causing loss of Company’s official record. †¢ Any act or omission in violation of the Code of Business Ethics; issued and updated by Ericsson time to time. †¢ Immoral or anti social activities or sexual harassment. Employed or engaged in any other establishment for an office of profit without prior approval of the Company. †¢ Engaged in a business directly or indirectly without prior declaration to the Company. †¢ Divulging confidential information of the Company to unauthorized/external person(s). †¢ Any act which knowingly puts another employee or other person at risk of serious physical harm. 4 Discharge: An employee may be discharged on medical grounds for a prolonged sickness of 9 (nine) months (continuous or intermittent) or if s/he becomes incapable of continuing the service because of illness. Disciplinary Action: An Employee shall comply with the Company’s Code of Business Ethics, rules, regulations, policies, standing orders and instructions as issued by the Company form time to time. The Company may take disciplinary action against employees who violate any of the rules, regulations, standing orders and instructions of the Company. 1 Administration of Discipline: Disciplinary action will be based upon a sound evaluation of all relevant facts. Only after the facts are known it is possible to determine the nature of the offence and whether or not mitigating circumstances exist. The Company may take disciplinary action against any employee in the event of misconduct, indiscipline or inefficiency. Depending on the nature of misconduct, indiscipline or inefficiency, the Company will take necessary actions. 2 Disciplinary Procedure: If and when necessary the company will issue First Warning Letter to the employee. After that; based on the requirement a Second and Final Warning Letter will be given to the Employee. If the employee does not pay proper attention to the suggested changes the company may dismiss him or her. First Warning Letter: If the conduct or the performance of an employee does not meet acceptable standards, the Line Manager will discuss the matter with the Functional/Department Head. The functional head will then proceed with the first warning letter to be issued by Human Resource Department. This letter will contain advice on how the problems should be remedied with a clear deadline i. e. 2 months. It should be made clear that this is a formal stage of the disciplinary procedure. The employee concern will sign and return a copy of the letter as an acknowledgement. Second and Final Warning Letter: Even after issuing the first warning letter; if the conduct or the performance of an employee does not meet acceptable standards, the Line Manager will discuss the matter with the Functional/Department Head. The functional head will then proceed with the Second Warning Letter to be issued by Human Resource Department. This letter will highlight the remedies/recommendations suggested in the first warning letter contain advice on how the problems should be remedied with a clear deadline i. e. 1 month. It should be made clear that this is a formal and the final stage of the disciplinary procedure. The employee concern will sign and return a copy of the letter as an acknowledgement. 3 Dismissal: Even after issuing the second and final warning letter; if the conduct of an employee does not improve, the Line Manager will discuss the matter with the Functional/Department Head. The functional head will then consult the matter with HR and finally dismiss the employee. 4 Exceptions: The Company reserves the right to dismiss any employee without following the aforesaid steps depending on the nature and the gravity of the misconduct. Grievance Handling: When an employee has specific grievance regarding his/her peers or superiors, the issue may be resolved by following of the employee grievance handling process. Employees may also be concerned that company Code of Business Ethics, policies and practices are being violated, which they must point out to their Line Managers. If they have good reason to assume that their Line Managers will not listen to them, then they may follow the grievance process. Employees who point out irregularities shall not suffer from retaliation for doing so. However, such protection against retaliation shall not imply immunity from legal or disciplinary consequences of acts or omissions that the employee may have otherwise committed. In view of that EBL recognizes that it is necessary to provide a process through which employees may express their grievance. Following issues will be out of the scope of this process: †¢ Compensation †¢ Working hours †¢ Collective issues †¢ Matters of general Company policy Grievance Process will be administered as follows: Stage I An employee with any grievance shall approach his immediate Line Manager to resolve it. This need not be in writing but should be clearly supported by facts before presenting to the Line Manager. The Manager concerned shall investigate the issue and give a reply within 5 (five) working days to the employee. When the grievance is about his or her own reporting supervisor, s/he shall take it up with the Manager’s Manager in writing. The concerned employee should get a reply within 5 (five) working days from the date of reporting the matter. Stage II If the concerned employee is unable to get the reply or is not satisfied with the reply, s/he may write to the Head of the Department with all available information. The Head of the Department should verify the information and take up the issue with the concerned people and give a reply within 10 (ten) working days to the employee. Stage III If the concerned employee does not get the reply from the Head of the Department within 10 (ten) working days, s/he may approach Head of HR with a copy of his or her grievance proceedings. Human Resources should give an audience within 5 (five) working days and take up the issue with the concerned Department Head and try to resolve it within 10 (ten) working days and communicate the decision through the respective Head of the Department. Final Stage If the grievance is still not resolved, and the employee remains unsatisfied with the decision of the Head of Human Resources, s/he may within 15 (fifteen) days of the receipt of that decision, appeal to the Managing Director and the Managing Director shall within 15 days on receipt of such grievance enquire into the matter and give the concerned employee an opportunity of being heard and then communicate his decision to the employee. The decision taken by the Managing Director will be treated as final. Retirement: Age of retirement from the service of the Company is 60 (sixty) ears. For the purpose of calculation of age, the official record of age with the Company will be treated as the final record of an employee’s age. Duties Responsibilities: The duties and responsibilities shall be those set forth by the company from time to time. Additional duties may be assigned and the job description may be modified from time to time by the company in order to accommodate changing circumstances and business needs. The duties and responsibilities shall be conducted in accordance with the company policy, rules regulations, standing orders etc. The Employee agrees to perform all the duties set forth in his/her job description as well as those assigned by the Company. Employees have the right to have a job description. Line Manager of the employee is responsible to provide job description with the assistance of HR department. An employee requires to devote the whole of his/her time to Ericsson and the business of Ericsson’s associated companies as directed by Ericsson to the best of his/her ability and can not be employed at any time directly or indirectly by any other business or occupation so long s/he is employed by Ericsson. For more information please click the following link: http://internal. ericsson. com/page/hub_sea/employee/bangladesh/job_desc. jsp Confidentiality: During the employment with Ericsson and thereafter, an employee will keep strict secrecy regarding the business of the Company. S/he will not divulge to any person, firm or Company, whosoever, other than to the Directors of this Company or their authorized representatives, or when required by Law, his/her salary, increments and benefits, and all business elated confidential information of any description, acquired by him/her while in Ericsson’s service, concerning the business or the affairs of the Company or of any of its associates or branches, their customers and suppliers. Conflict of Interest: 1 General Considerations: (Potential) conflict of interest in relation to an employee’s employment with LM Ericsson Bangladesh Limited (EBL) can arise from many angles e. g. outside business appointments relationships with contra ctors/sub-contractors and/or suppliers, shareholdings, etc. Typically, a (potential) conflict of interest will arise where employee’s ability to perform his or her duties effectively and impartially is or could be seen by others to be impaired by an outside appointment, relationship or activity. This policy should be taken into account when forming employee’s own judgments about any outside appointment, relationship or activity. The Company relies upon its employees to exercise basic common sense in avoiding a (potential) conflict of interest. Employees are expected to act in a manner consistent with giving his/her full-time services to EBL and to avoid situations which might give rise to questions as to whether s/he has acted in the best interests of EBL. On occasions, however, the question of whether or not a (potential) conflict of interest exists may be less clear and open to interpretation. Whenever such a case arises employees must consult with their Line Managers. A new employee must complete the Anti-Corruption training within 7 working days of his/her joining. Outside Business Undertakings: Except with the Company’s explicit approval, employees may not accept an appointment or Directorship in, or undertake paid work for, any other company, firm or organization. Generally, EBL does not discourage participation outside working hours in unpaid voluntary work, recreational, sporting and other community activities. Sometimes, however, these activities fall too heavily on certain individuals and the effectiveness of their work for EBL may thereby be diminished. The general rule is that when invited to serve on local bodies, or as an appointed or elected club official, the employee must be able to combine his or her outside activities with full-time Company employment. If there may be any doubt in this respect, s/he should be guided to seek approval from their Line Manager. 3 Ownership or Equity in other Companies: Except with the Company’s explicit approval, employees may not own shares in privately owned companies which have any form of business dealings with EBL. This does not apply to shares held in publicly quoted companies, but if there is any possibility that such a holding could cause conflict with his/her duty as an EBL employee, s/he should bring the matter to the attention his/her line manager. 4 Family Interests and Other Alliances: If the Employee or a member of his/her family is employed by a company which has, or is seeking to do, business with EBL, or holds a Directorship (whether in an executive or non-executive role) or interest in such a company, or if the employee is holding a local statutory or public appointment, the employee will require to declare this to his/her Line Manager. Under no circumstances should the employee of his family members derive any benefit from the employee’s proximity to any business discussions, regardless of the degree of the employee’s involvement. Favoritism, which may take many forms, should not be allowed to influence business decisions. If however a business situation arises in which the employee feels that s/he may have difficulty in either maintaining or demonstrating his/her independence from conflicting allegiances, be they personal, family, or community related; the employee should seek the advice of his/her Line Manager. Family or families shall be anyone who is related and known to the employee directly or through marriage including but not limited to spouse/s, children, parents, brothers, sisters, cousins, nephews, nieces, uncles, aunts, grandparents, parents-in-law, brothers and sisters-in-law etc. 5 Gifts: The Company does not encourage the acceptance of gifts or gratuitous services by companies which hav e business dealings with EBL, as this could place an employee in a position where his independent business judgment may be prejudiced. Therefore, It is EBL’s Policy that: †¢ employee should not accept any gift, or the offer of gratuitous services, of an estimated value more than BDT 1,000 from companies currently doing or planning to do business with EBL and, †¢ All offers of gifts or gratuitous services (whether accepted or rejected) with an estimated value more than BDT 1,000 must be reported to his/her Line Manager and be recorded in the Gifts Register (which must be maintained by each Department Coordinator). 6 Entertainment It may be that in the course of business an employee will be entertained. If such entertainment becomes a regular feature or if it exceeds a reasonable scale, employees are advised to report this to his/her line manager. An occasional lunch/dinner is acceptable, but entertainment or hospitality involving paid travel or accommodation expenses is not. 7 Corporate Gifts and Entertainment Approval of the Department Head should be sought where a supplier or contractor offers substantial gifts or hospitality at corporate level, e. . a significant contribution to a Company function, a valuable sponsorship for a competition or other activity at of the Company, or large scale entertainment of Company employees. Remuneration Benefits: 1 Remuneration: The Company provides a transparent and competitive remuneration structure that allows attracting, retaining and motivating the right caliber of staff for its business requirements. The Company follows a ‘pay for the job’ policy that allows the company to be more competitive in the Market. The company pays based on the following: †¢ Pay for responsibility †¢ Pay for relevant experience †¢ Pay for performance †¢ Pay for potential †¢ Pay competitively A good part of remuneration will be linked to Company, Team and Individual performance. The employees are responsible to pay their income tax as applicable by law. Ericsson as good corporate citizen deducts income tax at source. 2 Remuneration Cycle: The remuneration cycle for EBL is January to December. Salary revision; thus is an annual exercise. Each year EBL performs a remuneration survey in the Market in comparison with other multinational companies (both within and outside the telecommunication industry) in Bangladesh. Based on the market survey results and the business condition i. e. target etc. the company provides a budget to each line manager. Line managers can within the budget provide definitive salary increases for his/her respective people. IPM ratings must be taken into consideration for salary increment and should be considered as one of the key factors. Festival Bonus: Two festival bonuses are paid during two Eid festivals per year. 1 (one) month’s basic salary is paid in each Eid as festival bonus. Employees under probation period are not entitled for this bonus. Confirmed employees with less than 12 month’s service shall receive their festival bonus on a pro-rata basis according to their length of service. If an employee tenders his/her resignation before the actual payment date of this bonus t hen s/he will not be eligible for this bonus payment. Employees who are dismissed or who resign to avoid dismissal shall not be eligible for such payment. 4 Performance Bonus Scheme: Ericsson Bangladesh follows two different types of performance bonus schemes, as stated below: a) Performance Bonus: This is applicable for all employees who are not involved in a Sales Roles directly e. g. Services, Networks, MMSI, and Finance etc. b) Sales Incentive Plan (SIP): This is applicable only for employees in sales job roles and who has clear, direct and measurable sales targets. This is also applicable for Services Sales employee, who has clear and direct sales targets. 1 Performance Bonus: The Company will pay Performance Bonus to all permanent employees based on set targets, to be agreed between the Line Manager and the employee. Every year the broad business targets of MUSEA; is cascaded down to the respective countries e. g. Bangladesh. This target is then allocated / distributed in different functions as relevant, which are in turn cascaded down to the employees in those respective functions. The overall process objective is to clearly connect business objectives with team and individual goals. Line Manager and employee will jointly set up the targets at the beginning of the year as per the functional guidance given by MUSEA. All the targets need to be validated by the Functional Heads or the Managing Director as per the Grandfather Principle of Ericsson. Transfer: If an employee is transferred in the middle of the year to another function then the Line Manager needs to align his targets in line with the functional targets. A copy of the new target needs to be provided to the employee. In case of a transfer; employee’s current line manager shall be responsible to appraise his/her performance and provide feedback for the respective months and close the target discussion 1 (one) week before the transfer date. Upon transfer to the new job or in the new function, the employees new line manager shall discuss and sign off a new target with the employee; which is validated by the functional head (grandfather principle). The new target needs to be submitted to HR within 2 weeks from the date of transfer. If an employee is transferred from one function to another after 30th September; then the employee will receive performance bonus based on the existing target i. e. no new targets will be given to the employee. Calculation: This bonus is calculated on annual gross salary (commitment level: 10% of annual gross salary; not guaranteed, depends on performance levels). The bonus is usually paid with March payroll. The amount of the bonus is based on the performance of the Market Unit, Company, Team and Individual. HR acts as the process owner for the performance bonus scheme. Eligibility: Employees  who are under probation on 31st December  in a calendar year will not be entitled to this performance bonus for that year. Confirmed employees with less than 12 month’s service shall receive their performance bonus on a pro-rata basis according to their length of service. If an employee tenders his/her resignation before the actual payment date of this bonus then s/he will not be eligible for this bonus payment. Employees who are dismissed or who resign to avoid dismissal shall not be eligible for such payment. Poor performers (Not Acceptable, Needs improvement ratings) are not entitled for this bonus. 2 Sales Incentive Plan (SIP): In order to promote a high performance sales culture, SIP has been implemented in Ericsson Bangladesh effective 01 January 2008. For all purposes EBL will follow the Group Directives of Ericsson SIP process. Please note that the Group SIP Directive is revised once every year. Every year the broad business targets of MUSEA; is cascaded down to the respective countries e. g. Bangladesh. This target is then allocated in different functions as relevant, which are in turn cascaded down to the employees in those respective functions. The overall process objective is to clearly connect business objectives with team and individual goals. All the targets need to be validated by the Functional Heads or the Managing Director as per the Grandfather Principle of Ericsson. EBL has chosen the following method of SIP: †¢ 80/20 Mix of the TTC (Total Targeted Cash) †¢ Variable payments begin if the participant exceeds 70% of the targets, no variable payments if the participant does not meet the 70% threshold. The maximum payment for any incentive objective will be capped at 3 times the variable amount assigned to the specific parameter. This maximum will be reached at 160% of targeted performance †¢ Semi-annual payout (for local employees) for selected Targets is applicable. This semi annual payment will be calculated based on 70% of the whole year’s targets. Transfer: If an employee is transferred in the middle of the year to another sales function (who is in SIP) then the Line Manager needs to align his Goal Sheet in line with the functional targets. A copy of the SIP Goal Sheet needs to be provided to the employee. In case of a transfer; employee’s current line manager shall be responsible to appraise his/her performance and provide feedback for the respective months and close the target discussion 1 (one) week before the transfer date. Upon transfer to the new job or in the new function, the employees new line manager shall discuss and sign off a new Goal Sheet with the employee; which is validated by the functional head (grandfather principle). The new target needs to be submitted to HR within 2 weeks from the date of transfer. If an employee is transferred from one function to another after 30th September; then the employee will receive SIP bonus based on the existing target i. e. no new targets will be given to the employee. The same procedure will be followed for an employee, who is transferred from a Sales role to a non-sales role. In that case, the new Line Manager will prepare the performance bonus agreement and HR will issue a transfer letter with non-SIP base salary. Calculation: This bonus is calculated on annual TTC. The semi-annual payment of this bonus is usually paid with August payroll and the rest (if any) is paid with March payroll. The amount of the bonus is based on the performance parameters set in the Goal sheet. HR acts as the process owner for the SIP. Eligibility: Employees  who are under probation on 31st December  in a calendar year will not be entitled to SIP for that year. Confirmed employees with less than 12 month’s service shall receive SIP on a pro-rata basis according to their length of service. For newly joined employees; their SIP base salary will be effective from day 1, of joining their service in the Company. If an employee tenders his/her resignation before the actual payment date of this bonus (both for semi-annual and annual payment) then s/he will not be eligible for this bonus payment. At the time of resignation/termination, if the total yearly target is not reached 70%, then the additional amount will be adjusted from the final settlement of the incumbent. Employees who are dismissed or who resign to avoid dismissal shall not be eligible for such payment. Poor performers (Not Acceptable, Needs improvement ratings) are not entitled for SIP payout at year end. 5 Gratuity: An employee is eligible to receive 1 (one) month’s basic salary for every completed year of service; if s/he has served the company for more than 5 (five) years continuously without a break. An employee is eligible to receive 1. 5 (one and half) month’s basic salary for every completed year of service; if s/he has served the company for more than 8 (eight) years continuously without a break. An employee is eligible to receive 2 (two) month’s basic salary for every completed year of service; if s/he has served the company for more than 10 (ten) years continuously without a break. The vesting period for Gratuity is 5 (five) years i. e. an employee needs to complete at least 5 (five) years continuous service to be entitled for gratuity payment. The gratuity amount is calculated on last drawn basic salary. Accounting provisions are made every year; however the payment is made during the separation of employment. Employees who are dismissed or who resign to avoid dismissal shall not be eligible for such payment. Exception: Employees who have worked in EBL for more than 3 years continuously (till 30 November 2006) will receive gratuity based on the old policy i. e. heir gratuity will be calculated on gross salary till 30 Nov 06. 6 Provident Fund: Please see the LM Ericsson Bangladesh Employees Provident Fund Rules for detail guidelines. 7 Insurance: Subject to pre-conditions set by the Insurance Company; all permanent employees will be insured from the date of his/her joining in the company. The company provides 4 (four) different categories of insurance to the em ployees: 1 Life Insurance: This covers Death, Accidental Death; Permanent Total Disability and Permanent Partial Disability insurance. Insurance amount is categorized on the basis of Job Grade. All the full time permanent employees are eligible for life insurance. |Job Grade |Insurance Amount (BDT) | |Job Grade 1 and 2 |1,000,000 | |Job Grade 3 and 4 |2,000,000 | |Job Grade 5 |2,500,000 | |Job Grade 6 and 7 |3,500,000 | 2 Critical Illness Benefit: All full time permanent employees of the Company (aged between 18-60 years) workings in the Company are eligible for the critical illness benefit. Insurance Amount for critical illness is BDT 300,000. Criticality should match with the benefits eligibility prescribed by the insurance company. 3 Hospitalization Benefit: All the full time permanent employees and their dependents (Spouse, Children aged between 0-19 yrs) are eligible for this benefit. Maximum Hospitalization Benefit per insured per disability is BDT 200,000. This includes some of the following items: A) Room Board (Including ICU) Total Limit Per Disability |BDT 80,000 | |Daily Hospital Room Limit |BDT 3,350 | |(Including bed tax) | | |ICU Stay Limit |14 Days | |Maximum per Disability | | |B) Hospital services/ surgical/ anaesthesia charges |BDT 120,000 | |Excluding room and ICU (Maximum per Disability) | | 4 Maternity Benefit: All full time permanent Married Female Employees Spouses of Full time Permanent Male employees are eligible for this benefit. |Caesarean/ Ectopic / Extra-Uterine Pregnancy |BDT 45,000 | |Normal Delivery |BDT 30,000 | |Miscarriage Legal Abortion |BDT 22,500 | 5 Nominee selection: Nominees of Employees’ Insurance claim will be the same Nominees of Employees’ Provident Fund. Employees must notify HR department immediately in case any changes of nominee. 8 Medical: The company will reimburse out patient medical treatment cost for Regular Employees and their dependents (Spouse and Children aged between 0-18 years). Employee and their dependents are allowed to undergo treatment from any registered medical practitioner in Bangladesh. The company shall pay for the cost of treatment and medicine worth maximum BDT 15,000/- (Fifteen Thousand) per year which covers Employees and their dependents. While reimbursement through CONCUR; an employee is required to submit relevant supporting documents i. e. Prescription, Money Receipts etc. as requested by the company. In addition to that for claiming reimbursement of medical bills for dependent(s), scanned copy of respective hospitalization insurance card needs to be submitted along with each claim. The company shall not pay for the following cases: †¢ An injury, fatal or non-fatal, caused or contributed by riot, civil commotion, insurrection of war, or any act of war, whether war is declared or not, or sickness contracted or injuries sustained while in any of the Armed Forces whether land, water or air of any country or international authority at war, whether war is declared or not, or engaged in any armed conflict †¢ Any expenses for the treatment of circumcision, rest cure, nervous or mental disease or disorder †¢ Any expenses arising out of suicide or intentionally inflicted self injury or any such attempt, while sane or insane †¢ Any expenses for cosmetic surgery for purpose of beautification or plastic surgery for any pre-exiting condition †¢ Any expenses in connection with cosmetic dental treatment †¢ Any surgical or appliances charges, including cost of spectacles, glasses or contact lenses †¢ Any expenses for the treatment of drug abus e Any expenses incurred due to hospitalization. Hospitalization is covered by hospitalization insurance policy. 1 Health Check-up: In addition to medical benefit, the company offers all permanent regular employees (only in the age bracket of 40 and above) an annual health check-up facility with Apollo Hospitals, Dhaka effective from October 01, 2009. Should any eligible employee opt to avail the said facility, s/he will be required to make necessary appointment and submit the duly approved health check-up authorization form. The company will pay all associated cost(s) directly to the hospital authority upon receipt of the respective invoice. 9 Leave: An employee is entitled to take two types of leave in a calendar year. Leave is calculated on the basis of calendar year. Total leave days and categories are: †¢ Annual Leave 26 working days †¢ Sick Leave (at actual) For new employees leave will be calculated on a pro-rata basis. Employees are responsible to get their leave applications (Leave Form) approved by their respective Line Managers and to submit them to Administration department prior to availing Annual Leave. Administration department is responsible to maintain leave record. If leave applications are not submitted prior to availing any leave, entitlement of Annual Leave for the whole year will be forfeited. Moreover, there may be deduction from monthly salary if days of absence are not supported by leave application or approved travel order. No leave applications are final unless officially approved by the immediate Line Manager. 1 Annual Leave Employees are entitled to take 26 days of annual leave in a calendar year. Employees under probation are entitled for maximum of 3 days continuous annual leave. In case of resignation/termination/end of employment contract from the company annual leave shall be calculated on a pro-rata basis provided that any fraction of a day shall be disregarded, and where the fraction is one-half or more, it shall be deemed to be one day. Service during probation period will also be considered in calculation of annual leave. Granting of advance annual leave shall be at the sole discretion of the company and the Company reserves the right to recall any approved application should there be any emergency work. Employees must enjoy at least fifteen (15) working days of annual leave in a calendar year; otherwise it will be forfeited. 2 Sick Leave Employees are entitled to take sick leave based on actual needs. Any sick leave more than three (3) days must be supported with medical certificate issued by a registered medical practitioner or a physician. Employee suffering from a chronic disease or any other illness of prolonged nature can take paid sick leave for 30 days continuously. In this case, on recommendation of specialist doctor along with certification of company’s panel doctor, an employee may be allowed to take further two months sick leave without pay. The maximum number of days for which sick leave can be granted is at the Company’s discretion. 3 Leave Carry Forward Employees are expected to take leave as per their leave entitlement. However due to extreme urgency or business requirement if employees can not take the entitled leave in a calendar year, they can carry forward maximum of 11 days of annual leave to next year. This needs to be approved by department Manager in advance. This carried forward leave must be availed during the first quarter of the year leave has been carried forward. If not it will be deemed forfeited. 4 Maternity Leave: All female employees (confirmed regular) shall be entitled to take maternity leave up to a maximum of 120 days. The employee is required to plan in advance with her Line Manager for availing the maternity leave. Maternity allowance in the form of monthly salary shall be paid in the same manner as if such allowance were salaries earned during regular salary period. Leave on account of miscarriage prior to the twenty-eighth week of pregnancy will not be considered as maternity leave, but as normal sick leave. Maternity leave will be calculated on the basis of calendar days. No payment in lieu will be allowed for the days not availed. 5 Absence without Leave: Employee shall be deemed to have broken his/her contract of service with the Company if s/he has been absent from work for more than three days without prior notice from his/her Line Manager, unless s/he has a reasonable excuse for such absence and has informed or attempted to inform his/her Line Manager of such excuse prior to or at the earliest opportunity during such absence. Absence without leave will be deducted from salary if requested by the Line Manager. Mobile Phone: Please see the Mobile Phone Policy for detail guidelines. Transportation: 1 Pick up and drop off service: The pick up and drop off service is discontinued effective from 1st May 2008. The company may reconsider to provide this service depending on the business case in future, at its discretion. Alternatively, Job Grade 1, 2 3 employees are entitled to TK. 5,500/- (effective from July 01, 2008) per month as transport allowance. For broken period, transport allowance will be paid on a pro rata basis. 2 Car Allowance Employees of JG 4 above are entitled to grade specific Car Allowance. For details, please see EBL Car Policy. 3 Pool cars: Admin department maintains pool cars for EBL. The employee should coordinate with their respective departmental coordinators or the Transport Coordinator to avail this facility, as per the Admin SLA. Private use of official transport is strictly prohibited. Allowances: 1 Overtime Allowance: 1 Front Office Employees: Front Office (FO) Employees (Job Grade 1, 2 3 only) will be entitled to receive overtime allowance if they are required to work after their respective shifts. Entire working hours will be treated as overtime during their weekly holidays and other company declared holidays. This allowance will not be paid for working normal hours in Hartal or other types of strike days. Hourly overtime allowance is BDT 200 for Job Grade 1 employees, BDT 300 for Job Grade 2 employees and BDT 450 for Job Grade 3 employees. 2 Other NOSC Employees – Core, RAN Service Layer: NOSC employees of CA Core, RAN and Service Layer (Grade 1, 2 3 only) will be entitled to receive overtime allowance if they are required to work after 7. 30 pm from Sunday to Thursday. Entire working hours will be treated as overtime during Friday, Saturday and other company declared holidays. This allowance will not be paid for working normal hours in Hartal or other types of strike days. Hourly overtime allowance is BDT 200 for Job Grade 1 employees, BDT 300 for Job Grade 2 employees and BDT 450 for Job Grade 3 employees. Travel time will not be considered as overtime. Overtime hours should be clearly marked in the weekly â€Å"timesheet† and must be approved by the Line Manager of the employee. This allowance is paid with monthly salary. The OT allowances timesheet duly authorized by Head of NOSC must reach HR by 12th of every month; other wise will be paid with next month’s payroll. 2 Field Maintenance Allowance: Field Maintenance (FM) employees will be entitled for fixed consolidated Field Maintenance Allowance per month. This allowance will be paid with monthly salary. No other over time allowance will be given to FM employees. ? Job Grade (1 2): BDT 7,000 per month ? Job Grade 3: BDT 9,000 per month ? No allowance will be given to FM employees of JG4 and above. 3 Emergency Callout Allowance: This allowance is applicable to the NOSC Core, RAN, Service Layer, Front Office and Field Maintenance employees who are required to remain in stand-by mode every week to handle emergency calls from the Customers. The allowance is BDT 1,500/- per week per employee. This allowance will be calculated on weekly basis. Employees are not allowed to travel outside their respective duty stations during the week of emergency callout assignment and must carry the mobile phone specified to receive emergency calls from customers. Line Managers are responsible to prepare a quarterly roster along with change notifications of Emergency Callout assignees and inform all concerned departments. This allowances will be payable along with the monthly salary. The allowance timesheet duly authorized by Head of NOSC must reach HR by 12th of every month; other wise will be paid with next month’s payroll. 4 Shift Allowance: Shift allowance will be paid to Front Office Engineers of NOSC. All FO Engineers will receive BDT 2,500 per month for working in shifts. This allowance is applicable for Job Grade 1, 2 and 3 employees only. 5 Food Allowance: Front Office employees of NOSC are entitled to food allowance of BDT 60 per shift, for working in Shift C only. This allowance is only applicable Job Grade 1, 2 and 3 employees of FO. No receipt is required to claim this allowance. This is effective from 01 June 2008. 6 OHS Allowance: This allowance is applicable to the Field Maintenance (FM) employees (Job Grade 1, 2 and 3) of NOSC. This is a one off allowance given to all Field Maintenance once every calendar year. The allowance is BDT 4,000/- per annum per employee. This is provided so that the FM employees have proper safety shoes, rain coats, umbrellas, torch lights, first aid kits etc. Employee of the Month: EBL is a performance driven organization. In order to publicly recognize and appreciate exceptional achievements of employees in a particular month, the company nominates â€Å"Employee of the Month†. The Employee of the Month receives a letter of appreciation from the Managing Director and a cheque of BDT 10,000/-. Line Managers may nominate their employees to their respective Department Heads. The Line Manager must provide a brief description of the job performed or the exceptional achievement made by the employee for which s/he is nominated. Regular local employees of Job Grade 1 – 4 are eligible to participate in this program. Members of the Management Team will collate their departmental nominations and send it to HR. HR discusses the nominations with the Managing Director and finalize the nomination. 1 Long Service Award: EBL firmly believes in providing a career to its employees, not a job. Hence, the Company would publicly recognize the service length of employees who have worked more than 5 years with the Company with dedication and sincerity. As per this policy, employees completing: †¢ 05 years of service will receive a Company approved gift worth BDT 7,500/-. †¢ 10 years of service will receive a Company approved gift worth BDT 15,000/-. 15 years of service will receive a Company approved gift worth BDT 25,000/-. †¢ 20 years of service will receive a Company approved gift worth BDT 35,000/-. The employees will also receive a letter of appreciation from the Managing Director. 2 Team of the Q uarter: EBL believes that the organization can achieve its ultimate results only by working as a team. In order to promote a team culture within the company, the â€Å"Team of the Quarter† is awarded at the end of every quarter. The award is given preferably to a cross functional team for their collective achievements e. g. saving costs, achieving additional businesses, completing a project on time under budget etc. There is no financial award for this. The award is recognized publicly in the all employee forum. Performance Management Performance Management in Ericsson is managed by the IPM Process. Please see the IPM Process for detail guidelines. 1 IPM Handover: When an employee is transferred to another role in a different function under a new manager, a formal handover of IPM between the previous and the new manager is required. It is the responsibility of the new line manager to ensure that a proper handover takes place, after discussing with the employee and the previous manager. Performance goals may need to be changed and communicated the employee by the new manager. The discussion eeds to be completed and documented within 1 month of the employee’s transfer. Training and Development The Company encourages each employee to develop his or her potential to the maximum. Development needs are identified as part of the IPM process. Training should be based on the Ericsson’s Comp etence Management Process. Formal training should be proposed for an employee when other forms of development are deemed ineffective. Formal training is defined as development activities which primarily aim to develop a set of specific competence and skills set, carries out by professional and or certified instructor, and requires financial commitment from company. In Ericsson; employees can develop through self-study, specific cross functional projects, on the job training, attachments, short-term assignments, mentoring and formal training. Line Managers are responsible for skills/competence training and HR organizes general development training e. g. negotiation skills, influencing skills, team buildings, leadership etc. Please see EBL Training Process for detail regarding training. The company invests significant amount of money in training and development of employees. Therefore employees must be cautious is cancelling a training at the last moment. In case of business urgencies, cancellation of training must be made beforehand in a planned manner so that the Company does not incur any costs. Otherwise the employee will have to bear the full cost unless for reasons of force majeure, or major accidental incident that happens to the closest family (parents, spouse, children or siblings). Employees are responsible for updating their training profile regularly through Employee Self Service (ESS). 1 Training Commitment Agreement: 1 Training Commitment Policy: Ericsson Bangladesh provides training to its employees to enhance their skills and competencies in order for them to perform their job at an expected level. The company also provides training to employees so that they are in a position to assume higher responsibilities in near/distant future. Providing training is a continuous process, which the company believes, helps employees to grow as professionals with the organization. In order to secure the company’s interest and retain employees to perform the relevant skills acquired from the program attended, all employees will be required to sign a Training Commitment Agreement with the company prior to the commencement of the program. 2 Service Obligation: Employees undergoing any â€Å"in scope† training programs in relation to his/her current or future job in accordance with the cost of the program (â€Å"training amount†) shall be obliged to serve the following period of compulsory service.. 3 Training Commitment: Service Length |Training Amount |Commitment Period | |0 – 1 year |BDT. 175,000+ |30 months | |1 – 2 years |BDT. 175,000+ |24 months | |2 – 3 years |BDT. 175,000+ |18 months | |3 years+ |BDT. 175,000+ |12 months | †¢ An employee is required to sign a training commitme nt agreement for each training program with a training cost of BDT 175,000 or more. In case of multiple training programs, where the training cost of each program is less than BDT 175,000, the costs will be accumulated. †¢ Subsequently, an employee is required to sign a training commitment agreement when the cumulative training cost for two or more training programs exceeds BDT 175,000. 4 Training Amount: †¢ Formal training programs: This amount includes the training fees, airfare, daily subsistence allowance and accommodation. †¢ On the Job training (where no training fee is applicable) and short-term overseas assignment: This amount includes airfare, daily subsistence allowance and accommodation. 5 In Scope: †¢ All overseas Technical/Competence training provided to an employee for skills/competence development. All overseas on the job training (2 weeks+ to 12 months); where an employee is sent to another Ericsson company to understand a specific subject matter (technical and non-technical). †¢ All short-term overseas assignments (61 days+ to 364 days) including travel time; where an employee is sent to another Ericsson company to apply his acquired knowledge and competences, for a hands-on experience in the relevant field, and for an exposure in the international environment. 6 Out of Scope: †¢ All overseas workshops, seminars, customer meetings, functional meetings etc. †¢ Any short (5 calendar days) visit where no training course fee is involved †¢ All training provided/conducted locally by EBL †¢ All short-term overseas assignments less than 61 days including travel time. 7 Settlement of Training Commitment: Termination: In case of all employee initiated resignations, or company initiated termination or dismissal on COBE (Code of Business Ethics) grounds, the employee shall pay back all unfulfilled service commitment period on a pro-rated sum basis using the formula as stated below: â€Å"Total training amount / Total training commitment months X Number of months left in commitment† In the event the employee fails to settle in full whatever amount is due to the company upon the termination of employment, the company reserves the right to deduct the prorated portion related to the unfulfilled period of committed service from salaries and all other short and long term benefits payable to the employees. The company may choose Legal recourse to recover the same from the employee under the said training commitment agreement, as per the laws of Bangladesh. Changes: The company reserves the right to change the policies at any given time without giving prior notice. However, this will be communicated to the employees as and when applicable. Revision History: †¢ 2009-10-18: revision of Working Hours; Section 2. 1 †¢ 2010-07-20: revision of Working Hours; Section 2. 1 †¢ 2010-07-20: revision of Maternity Leave; Section 10. 9. 4 †¢ 2010-08-18: revision of Medical; Section 10. 8 †¢ 2010-11-01: revision of commitment policy on short-term overseas assignment; section 16. 1 †¢ 2010-11-01: clarification on promotion criteria; section 2. 7