concern HoDTermination Policy

PURPOSE

1. To ensure the exit, termination and separation of Employees in IGE Group of Companies is managed efficiently, effectively and in compliance with the Government Law with professionalism and official documentation.
2. To be beneficial for all parties that the employment termination process is clear and transparent so misunderstandings and mistrust between the employees and IGE Group of Companies can be avoided.

SCOPE

The scope covers for all levels of Existing Employees of IGE Group of Companies regarding termination of employment.

DEFINITION

1. Termination is occurred when an employee's job ends. Termination of an Employee can be voluntary and involuntary.

   Voluntary termination of employment (By Employee)

   Voluntary termination is written notification of termination of employment by employee.

   Involuntary termination of employment (By the Employer)

   An involuntary termination is a form of termination where the employer/management decides to end their relationship with an employee for various reasons.

   The employer may have to terminate employees from time to time for the following reasons;

   • Unsatisfactory performance
   • Repeated ordinary misconduct (Disciplinary measure)
   • Serious misconduct
   • Failure to show for three (3) consecutive days without notice
   • Ill health (Physically and/ or mentally not fit to perform assigned jobs)
   • Death
   • Layoff

2. Permanent Employee (PE): An employee who has successfully completed the probationary period and is appointed as permanent employee under the regular employment in a strategic business unit (SBU) or Corporate Business Unit (CBU) of IGE Group of Companies.

Policy

1. Voluntary terminations

   Resignation by employee

   • Employees whether locals or expatriate must follow the following resignation notice period;
     • One (1) month for Sr. Managers (Senior Manager) & below positions
     • Two (2) months for Deputy General Managers (DGM) and above positions
   • Company must take legal action if an employee fails to give the above required notice as per Employment Contract (EC).
   • Employee who wants to resign must perform proper handover and clearance process as per Company procedure.

2. Involuntary Termination

   The Company must terminate employees from time to time for the following reasons;

   • Unsatisfactory performance

     Company terminates employment due to an employee's unsatisfactory performance in accordance with the Performance Management Policy (HR-PP-PM-002).

   • Repeated Ordinary misconduct

     Company terminates employment due to the violation of company rules & regulation (ordinary misconduct) repeatedly in accordance with the Employment Contract (EC).

   • Serious misconduct

     Company dismisses without notice the employment of an Employee who found to have engaged in serious misconduct in accordance with the Employment Contract (EC).

   • Failure to show for three (3) consecutive days without notice

     Company must dismiss an Employee who fails to report to immediate superior or Head of Department (HOD) for the absence in accordance with the Employment Contract (EC).

   • Ill health (Physically and/ or mentally not fit to perform assigned jobs)

     Company terminates employment in the event if the employee is unable to perform assigned duties and not able to restart the duties within 12 months of illness based on medical examination results. (Employees entitle maximum 52 weeks for serious cases of illness according to the Social Security Board (SSB) rules & regulation.).

   • Death
     • Company terminates of employment in the event of the death of an employee and the termination of employment date will be decedent date.
     • Human Resources Department (HRD) must calculate and communicate with finance department for outstanding salary & leave entitlements and the relevant Compassionate Compensation. (HR-PPOS-008)
   • Layoff

     • Company terminates of employment under the following conditions;

       a) Job is eliminated;

       b) Job is restructuring, and the current skill-sets are not meet minimum requirements of assigned competencies.

     • In this situation, company must follow the Government rules & regulation as stated.
   • Compensation is entitled only for clause (4.8) - Layoff

PROCEDURES

1. Resignation by employee
   • An employee must submit an official written resignation letter to HOD indicating the proposed date and reason.
   • The resignation letter must be copied and submitted to the Human Resources department.
   • HRD communicates with related HOD.
   • HRD passes Clearance Form (HR-FM-OS-006) to concern HOD, Admin, Finance and IT Department to check any outstanding things to be clear within two weeks from submission date.
   • Concerned HOD makes sure that employee to be completed handover process within notice period.
   • HRD invites employee for exit interview during notice period.
   • HRD keeps record and analyses for future organisation improvement.
   • HRD will issue certificate of employment letter (HR-FM-OS-008) properly.
2. Unsatisfactory Performance
   • HOD & HRD must initiate a first warning that base on the performance record and result agreed by employee and HOD.
   • When the agreed performance improvement does not occur within agreed timeline, a second warning is needed (Based on PIP, Performance Improvement Plan).
   • When the agreed performance improvement does not meet within agreed timeline, the employee is given for a third warning by HOD and HRD.
   • HOD and HRD set final assessment period and inform to the employee for final step before taking any disciplinary action.
   • All these steps must be official and HRD must keep records of the all steps.
   • Employee will be terminated without notice period and compensation if employee does not meet within target time line.
   • HRD passes Clearance Form (HR-FM-OS-006) to concern HOD, Admin, Finance and IT Department to check any outstanding things to be clear before dismissal date.
   • HRD need to give letter of dismissal (HR-FM-OS-011) properly.
3. Repeated Ordinary misconduct
   • The immediate superior initiates to investigate the case and counsel employee together with HRD.
   • HRD must keep official record for first offence.
   • If the immediate superior or HOD finds out the same employee violates any minor misconduct within one year from first warning date, HOD and HRD will issue second warning letter to the employee.
   • The same employee violates any minor misconduct again within one year from second warning date, HOD and HRD will issue third warning to the employee.
   • HOD and HRD consult and inform to the employee for final step before taking any disciplinary action.
   • All these steps must be investigated and HRD must keep records of the all steps.
   • Employee will be terminated without notice period and compensation if employee violates repeated minor misconduct.
   • HRD need to give letter of dismissal (HR-FM-OS-011) properly.
4. Serious Misconduct
   • The immediate superior of employee or any employee who find put the issue must submit an employee’s issue to concern HOD and HRD within 24 hours.
   • HRD investigates together with HOD for the issue.
   • HRD submit the report to management for final approval.
   • HRD dismisses without notice and compensate the employment.
   • HRD will keep containing all relevant documentations.
   • HRD need to give letter of dismissal (HR-FM-OS-011) properly.
5. Failure to show for three (3) consecutive days without notice
   • The immediate superior of employee must inform an employee’s issue to HRD.
   • HRD checks and arranges to contact employee to investigate the issue.
   • HRD dismisses without notice and compensate the employment for absents continuously three days.
   • HRD will keep containing all relevant documentations.
   • HRD needs to give letter of dismissal (HR-FM-OS-011) properly.
6. Ill health
   • The employee informs and submits medical leave together with related documents to HRD.
   • The employee must take SSB authorized doctor’s recommendation if he/she needs medical leave more than 30 days.
   • HRD checks the documents and inform HOD for the issue and necessary arrangement.
   • If the employee is unable to perform assigned duties for 26 weeks as per SSB law, the employee needs to take SSB authorized doctor’s recommendation for additional medical leave.
   • HRD checks the documents and inform HOD for the issue and necessary arrangement.
   • HRD arrange meeting with the employee if an employee is not able to restart the duties within 52 weeks (12 months) of illness based on medical examination results.
   • The company terminates the employment if the employee is still not fit after allowed periods.
   • HRD will issue certificate of employment letter (HR-FM-OS-008) properly.
7. Death of an Employee
   • HRD prepares the documents to be processed immediately.
   • HRD communicates with insurance agency and/(or) SSB immediately, if the decedent employee who entitled for insurance and/(or) SSB benefits.
   • The termination of employment should be decedent date.
   • HRD calculates and communicates with finance department for outstanding salary, leave entitlements and the relevant Compassionate Compensation Policy (HR-PP-OS-008).
   • HRD must complete all related forms of resignation processes on behalf of decedent employee and keep record.
8. Layoff
   • Management, HODs and HRD prepare the list of redundancy based on business needs and operational requirements for future changes.
   • HRD prepares budget and get approval.
   • Inform related employee for notice and/or pay in lieu of notice according to Labour Law.
   • HRD needs to give letter of redundancy (HR-FM-OS-010) and certificate of employment letter (HR-FM-OS-008) properly.
   • HRD keeps record.

DELEGATION OF AUTHORITY (DOA)

All termination process must be followed by according to the DOA.

Amendments/ Modifications

With the approval of the Board, at any time and from time to time, any Authorised Personnel of IGE Group   may amend or modify the Policy; to the extent necessary and desirable to comply with any Employment Law and regulation as required.