HIPF HR Policy by HIPF

HIPF Comprehensive Policies & Procedures â&#x20AC;&#x17D; Manual THE HIGHER INSTITUTE FOR PLASTICS FABRICATION 7798 Al Kharj Road, New Industrial City, P.O. Box 3244 Riyadh 14331 KSA. Tel: 011 4989600 Fax: 011 4989650 email: info@hipf.edu.sa website: www.hipf.edu.sa This manual has been prepared by: HIPF Human Resources Department Revised [September 2013]

2013 Human Resources Department

CONTENTS POLICY

PAGE

Brief about the establishment of the HIPF

Administrative Strategy

Policy Manual

1- Human Resources Department Policy

2 - Manpower Planning Policy

3 - Selection and Rrecruitment Policy

Saudization Policy

Wage Policy

Promotions and Annual Increase Policy

New Employee Policy

Appraisal and Performance Management Policy

Training and Career Development Policy

Attendance Policy

Annual Leave Policy

Travel Policy

Penalty Policy

Medical Coverage Policy and social Insurance

Health and Occupational Safety Policy

Termination Policy

Marital status Policy

Documentation Policy

Government's Policy of Paying Fees

Complaint Policy

Policy of End of Service end Interview

Welfare Policy

Uniform Policy

41 The End

BRIEF ABOUT THE ESTABLISHMENT OF THE HIPF The Higher Institute for Plastics Fabrication was established as a non-profit institute in an agreement signed by the Ministry of Petroleum and Mineral Resources, along with the Technical and Vocational Training Corporation (TVTC), the SABIC Eastern Petrochemicals Company (SHARQ) and the Saudi Petrochemical Development Company (SPDC), Japanese partner of (SHARQ).

The establishment of Higher Institute for Plastics Fabrication (HIPF) aims to train Saudi youth under Japanese expertâ&#x20AC;&#x2122;s supervision to participate as skilled technicians in the booming Plastics industry of the Kingdom.

VISION: To develop and provide high quality technical training and technology services in order to meet the needs of Plastics industry towards satisfying Saudization for the Plastics sector.

MISSION: We will be a premier institute in the development and delivery of training, knowledge, consulting and research services for the Plastics Industry.

ADMINISTRATIVE STRATEGY POLICY MANUAL 1. HUMAN RESOURCES DEPARTMENT POLICY • General Policy: The policy of human resource Department is adopted as being a strategic partner for all departments and sections of the Institute works together with the departments to achieve the mission, vision and objectives of the Higher Institute for Plastics Fabrication and the vision of the Human Resources Department on the base of human development as the employee is a basic part in achieving the overall mission of the Institute and therefore it invests in staff by the development, advancement and providing a supportive work environment for creativity and achievement. • HR Department Vision: To provide a competitive business environment supportive of innovation and development and to achieve career goals through the development, staff enhancement, and the selection and recruitment of the best human resources to join the work. • HR Department Mission: Recruitment and staff development and providing a supportive work environment for achievement and innovation by providing regulations governing ways of dealing with the employee, and provide the best services for the labors.

2. MANPOWER PLANNING POLICY: • General Policy: Each Head of the Department at the end of each calendar year submit his plan and specify in it his requirements of the workforce for the next year with a list of the justification and the revenues, and must link the establishment of any new job to the growth or increase the size of the business after conducting a detailed study related to the feasibility of the introduction of these jobs.  Purpose: To provide guidelines for the preparation of the workforce planning effectively. • Details: 1. The Department of Human Resources develop a special model for the preparation of annual plans of the workforce expected to join the institute over the next year distributed to the heads of departments to fill in. 2. Three months before the beginning of each training year the departments of the Institute prepare a workforce plan which includes all the existing and new proposed jobs and changes - if any – the workforce plan includes job, its qualifications, requirements, the required expertise and brief summary of job / new jobs and the expected return of the employee / the new joined employees. 3. The Human Resources Department is assigned to review and facilitate the final approval of the workforce plan by the Director of Human Resources, the financial manager, the manager of the competent Department of the plan and submit to the Executive Director for the final approval.

4. The assigned and responsible people for the preparation of the workforce plan take into account that the costs and burdens of the plan should be within the limits of the funds recorded in the approved budget. 5. All the procedures for the preparation and approval completed by the Department of Human Resources. 6. Work begins by implementing the plan two months before the beginning of the training year. 7. In the event of an amendment to the annual plan during the months of the year the concerned departments of update submit to the Department of human resources that the amendment does not apply to work only one month after the date of the amendment approval.

3. THE SELECTION AND RECRUITMENT POLICY • General Policy: The Higher Institute for Plastics Fabrication works by the principle of equal opportunities for all, and the employees are selected based on the qualification, experience and relevant skills, as the policy of the Institute is to achieve the best benefit of the human resources through training, development, job-transferring, transfer and promotion so that the employee is recruited in the job where he can perform well. Also, the Institute policy take into account providing the best opportunities for the professional development for its employees by choosing from the Institute for horizontal and vertical growth, in addition to fill the shortage in some jobs by recruitment from outside the Institute. • Purpose: 1 - Unification of the recruitment process in the institute. 2- Cost reduction, in terms of the financial resources or the time spent on the recruitment process without prejudicing the quality of the workforce. 3 - Make sure that the recruitment process of the staff is completed within the specified period. 4 – Search for the sources effectively and make connections to get the highest qualified human resources available in the labor market. 5 - Provide professional development opportunities and rewarding for the existing staff that are characterized by their high efficiency of performance. 6 - Make sure that the method of recruitment and selection is effective (quick response without delay) and practical in the selection method and recruitment of the applicants for the jobs. 7 - Provide a competitive return with retaining the desired values and unique level of contribution to boost the morale and retention of the employees. • Range: It covers the recruitment of jobs. • Basic criteria: The goal is to develop a measure whereby to follow-up the procedures and record-keeping for the purpose of obtaining a good level of workforce with appropriate cost and by professional manner. 1 - Must adhere to the existing procedures in the recruitment and selection list. 2 - Retain the following records in the personnel files: • Brief about the Job (job summary). • A copy of the announcement (within institute / local / abroad). • Details of the applicant. • Photographs.

• A copy of ID card, passport, and residence. • Report of the interview. 3 - There must be two candidate models of interview signed at least in the file before the application of the Institute, and the report of the interview determine the opinion of each of the interviewer. 4 - The joining date of the new employee depends on the work as needed. 5 - Jobs are filled within Institute, local, or abroad. 6 - Applications for vacancies are submitted to the Human Resources Department. 7 - After the final interview must take a decision within three (3) days from the date of the interview on the next step. • Details: 1 - Manpower requirements: 1-1 The need for the manpower is due to one of the following reasons: • Resignation / termination / death / permanent disability of the employee and hence the need for an alternative. • The need for new jobs as a result of the planned expansion of operations. • Position vacant as a result of the transfer or promote the employee that was occupied. 1-2 Approval authority to fill vacancies: • Must provide justification for the new jobs as appropriate or career record leakage and the justifications are recorded in the file. • The responsibility to approve the filling of jobs vacant to ensure business continuity and achieve business objectives set at the department managers. 2 - Job application: Must fill in the job application (attached) by the applicants at the Institute, and the applicant is not qualified for the job unless the job application submitted in a timely manner, and that the failure to provide one of the employment requirements (personal photo, biography, copy of the qualifications .... .) may lead to disqualification of the applicant and he is not entitled to claim his file. 3 - Database of the applicants: The Department of Human Resources shall update the database of applicants on a permanent basis and this is by updating the new applicants and the abolition of the applicants who no longer want to work. And this database is considered the base of the recruitment process, reduces the time and cost and shall help to create an effective recruitment system. 4 - Recruitment sources: Methods of recruitment sources: Getting the employment would be from inside or outside the Institute (Saudi citizens or foreign workers) or from abroad, and not necessarily in the same order, for example, when the leadership jobs is required or those that require special skills can use three ways or any combination thereof. Definitions: Internal recruitment sources:

Internal recruitment sources can be defined as employment of the department positions or supervisory positions of potential candidates from the Institute, means who have the ability to occupy these jobs, and internal sources will be limited to the replacement plans, potential candidates after check and interview can prepare them to assume the responsibilities. Local sources of recruitment: Local sources of employment can be defined as recruitment for vacancies from the Kingdom of Saudi Arabia, which means the Saudis or non-Saudis, including: • Applicants who apply for a job through the recommendation of one of the Institute's employee. • Database of the applicants for the job application. • National announcement. The Department of Human Resources shall search for candidates through the universities, colleges and employment offices locally and international. Sources of recruitment from abroad: Recruitment sources from abroad can be defined as the recruitment for vacancies from foreign labor markets to reduce the cost and get the manpower for the specialized and specific needs. It includes the following: • Database of applicants for the job application. • The use of recruitment agencies. 5- Announcement: It can address the announcement to the target class of audience taking into account that the size of the response can be dealt with effectively by the official recruitment and personnel specialists, and not necessarily announcing in newspapers because it must take into account the criteria for cost and revenue when taking the decision , for example can announce in the declaration panel inside the Institute , employment offices or the Internet ... Etc. . 6 - Initial interview : Shall request from the job applicants to fill in the job application before the initial interview, and the Department of Human Resources prepare the shortcut list for the candidates after reviewing the job description , age, experience, regularization , and other related information, and if necessary may proceed a written test to make sure of the skills and knowledge of the candidates, and based on the aforementioned steps and the initial interview , the qualified candidates are counted in the shortlist for the final interview or update them to a database of applicants. Furthermore, a summary is written about the candidates in the shortlist for the concerned administration to assist in conducting interviews for the final selection. 7 - The final interview: The final interview is conducted by the direct manager and department manager of the requested administration whether the recruitment is within institute, local or from abroad, and after the selection of the candidates shall fix date for the final interview for the candidates with the Executive Director. 8 - Selection: The final decision for the three cases of the employment: within institute, local or abroad is the authority of the Executive Director, and shall develop a list of reserve of 2-3 of the candidates at the end of the selection process, so as to ensure the availability of a suitable alternative in the shortest possible period if it cannot recruit one of the selected candidates. 9 - Recruitment:

Candidates who proved qualified job notices are issued to them. And agree on the Joining Date in consultation with the candidate for the job, and after accepting the job notice of the candidate must check and verify the information. If selected the candidate should be give him the job notice in a reasonable period from the date of the final interview which include the degree , salary , a brief description of duties , location of the work , labor relations and the date and time of proceeding the job. And Human Resources Department shall issue the referred letters to the candidate after the approval of the Executive Director. 10 – Joining work: Human Resources Department must ensure that all recruitment requirements have been completed before the new employee joins the work including signing the employment contract. • Recruitment from the Institute: Fill in the transfer or the promotion form that shows the date of joining and the approvals from management which agreed to transfer him. • Recruitment from Locally: Human Resources Department verifies that all the necessary requirements and documents have been completed; furthermore, non-Saudis can join the work after transfer the sponsorship. • Recruitment from Abroad: Human Resources Department must ensure that the basic requirements like visa, arrival date and the medical examination ... Etc. has been completed and handed over to the concerned destination. The arrival date of the new staff is the joining date to the work. 11 - Definition / Initialization: Human Resources Department develops a schedule for the definition and the initialization of the new employee’s one joined the work. 12 - Responsibilities: • The Human Resource department is responsible for database information for the applicants. • The Human Resource department is responsible for notifying the candidates, organizing interviews and subsequent action even selection if there is an appropriate candidate. • The Human Resource department is responsible for conducting the necessary changes when notified by the concerned department of change in employment status. • The Human Resource department is responsible for the recruitment sources and preparation of shortcut list for the candidates and the issuance of presentation letters. • The Human Resource department is responsible for the issuance of the employment contract, obtaining visas and documentation of other legal and regulatory requirements. • Employment contract to be signed by the director of human resources. 13 - Recruitment expenses and transfer the sponsorship: The Higher Institute for Plastics fabrication is liable for the income tickets of the employees who were recruited from the outside and outside employment offices fee as well as the sponsorship transfer fee from inside a maximum of 2,000 riyals only.

SAUDIZATION POLICY General Policy: The Institute's policy is to work according to the Saudization program which was adopted by

the Government of Saudi Arabia Kingdom represented by the Labor Ministry which presented to provide employment opportunities, support and training for Saudis in the departments of the institute. The Purpose: Develop a general framework for the recruitment, training and maintaining the Saudi employees at work. Range: This policy covers all departments of the Institute. Details: The main goal of Saudization policy is to achieve the highest level of Saudization level specified by the Ministry of Labor in all departments of the institute. Internal Analysis and Planning: • Human Resources Department shall conduct analyzes and calculating the percentage of Saudization on an ongoing basis, and training requirements for Saudi employees who are in the departments of the institute. • Human Resources Department notifies the departments of the Institute of everything emerging about the current situation and the desired level of Saudization. Policy of the probationary period: General Policy: Pursuant to the policy of the Institute the new employee enrolled newly Institute is subjected to a trial period before recruiting as permanent employee on the assigned job. Purpose: Giving instructions about the probationary period and the procedures of the permanent recruitment on the job. Range: Include all staff. Details:  Each employee is subject to a probationary period pursuant to the Saudi labor system.  The probationary period is three (3) months from the joining date of the work.  During the probationary period the Institute evaluates appropriateness of the employee to continue to work.

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If it is proved to the Institute during the experience period that the employee manner at work, behavior, attendance, or performance generally do not rise to the level required shall be dispensed from work. Personnel department sends to the director of the concerned department three (3) weeks before the end of the probationary period appraisal form of the probationary period of the specific employee. The direct head / department manager at least a week before the completion of the probationary period set forth in the appraisal form of the personnel department, with recommendation whether recruitment or dispense of his services with the stated reasons. The director of Human Resources Department review the recommendations and prepare the a notice of permanent recruitment for the employee or proceed another appropriate procedure and if the recommendation is not positive , the case is studied by all concerned parties to take appropriate decision and submit the recommendations to the authorized one. Send copy of all correspondence to the employee file. Terminate the probationary period does not guarantee the continuation of work for any period of time. If the employee wants to terminate the employment contract during the probationary period he must be liable to all the expenses of the employment in accordance with Article 76 of the Saudi labor regulation. If re-recruit an employee who has been recruited previously at the Institute after a break he is considered a new employee and is subject to a probationary period.

Responsibilities: 1 - The responsibility of all departments is to inform the Human Resources Department of the joining date for the new employee to work and send copy of work form. 2 - The responsibility of the Personnel department is to follow-up the concerned department to issue appraisal form of the new employee three (3) weeks before the completion of the probationary period. 3 - The concerned departments shall be responsible for submitting the appraisal form to Human Resources Department one week at least before the end of the probationary period.

WAGE POLICY: SALARIES, ALLOWANCES AND OVERTIME General Policy: The salary at the Institute is determined according to the payroll system and according to what is decided in this policy. Purpose: Clarify and explain the authorized way in the calculation of salaries and wages. Range: Include all staff.

Definition: Salaries and wages: monthly wage is paid to the employee against his effort to complete the work and according to what has been agreed upon when signed the contract with the employee. Details: Monthly salary and allowances are determined according to what is stated in the payroll system where the system is divided into two administrative levels, in each level the is a minimum and minimum rate of salary, the job is decided to the applicant by matching the CV with the job description and supports the implementation of the maximum and minimum rate is applied in accordance with the criteria listed below. Monthly salary: The employee's monthly salary is paid at the end of each calendar month and the Maximum and minimum monthly salary is decided in accordance with the policy of payroll and fixing the salary depends on: 1. Experience and Skills. 2. Qualification: Qualifications were divided into secondary qualification and lower, Diploma, Bachelor qualification BA, Master MA, and PhD. The required qualification of the vacancy must be determined in the card of the job description. According to these criteria salary is decided for the incumbent. Housing allowance: The Institute's policy aims to paying a housing allowance to the employees. As per Institute's policy the employee's housing allowance is calculated on the basis of 25% of the basic monthly salary (three salaries annually). Transport allowance: The Institute's policy aims to pay transport allowance to employees, and according to the policy of the Institute the monthly transport allowance is paid on a monthly basis by 10% of the monthly basic salary of not less than 500 riyals for all employees of the institute. Allowance of using the car: The Institute's policy aims to use a car allowance of 1,200 riyals per month for the employees who work in field (Pursuers, drivers) who use their own cars to precede the Institute's work, and no means of transport is provided for them at the expense of the Institute. Food allowance: The Institute's policy aims to pay food allowance to the cleaners by a decisive amount of 500 riyals per month with the salary. Nature of work allowance: The Institute's policy aims to pay the nature of work allowance for staff (housing supervisors, security guards) where their work requires changing the working hours (shift system), weekly or monthly by a decisive amount of 500 riyals per month with the salary. Overtime: The employee who is assigned to do extra work worth additional reward for overtime equivalent to the hourly wage plus 50% of his basic wage pursuant to the Article VII after Hundreds of the labor regulation.

PROMOTIONS AND ANNUAL INCREASE POLICY General Policy: Staff can be transferred during their employment in the Institute from one department to another according to the requirements of the work this does not breach the policy of the labor regulation, or promote to a higher degree and greater responsibilities based on efficiency and contribution to achieve the objectives Institute along with a change in the salary and allowances pursuant to the payroll system. Purpose: Giving instructions to promote the employee, amend the salary. Range: This policy covers all employees. Procedures: 1 - Promotion: An employee who is going to be promoted should be characterized with high performance, capability and adequately qualified to occupy the job and the additional responsibilities. Accordingly, his appraisal prepared by the department he is working in should include recommendation to promote him mentioning major achievements and planned goals he has realized in his work. Promoted employees shall be subject to an evaluation period of three months before announcing the promotions.

Promotion Policy: a. There should be a vacant job. b. Employee should spend at least one year in his job before promoting him to a higher position, unless the promotion is decided by the Board of Directors. c. Appraisal of the employee in the year preceding the promotion should not be less than 'very good'. d. The following documents should be submitted together with the promotion application: an updated CV, job description of the new job, and a report on the achievements of the employee. Annual increase policy: a. The annual increment shall be granted to employee at the end of every contract provided that an appraisal of the job performance shall be made prior to the annual increment. b. The increment is linked with the result of the latest appraisal of the staff. c. Employees whose appraisal is less than 'Good' will not be eligible to the increment. d. An employee shall not be eligible to increment in case he reaches the ceiling of the fixed salary of the job. Instead, he may be granted a lump sum bonus. This measure may be repeated for one or more years subject to the Executive Director. e. Increment policy shall be applicable to the Institute's all employees without exception. f. No increment shall be granted to any employee who has been promoted and his salary has been adjusted. g. The increase rate is fixed as follows: 10% of the last basic salary if the employee obtained performance appraisal "excellent" (90% 100%). 7% of the last basic salary, if the employee obtained performance appraisal "very good" (80% 89%).

Annual Increment Grade

Excellent

Very Good

Good

Senior Instructor

sr. 200

sr. 150

sr. 100

English Teacher

sr. 500

sr. 400

sr. 300

Others

10%

Amendment: Annual Increment Memo dated June 23, 2013 As per the Board of Directors approval, the Annual Increment Grade for Senior Instructors and English Teachers for the next two (2) years only shall be based on the percentage grade of their basic salary. Excellent 10%

Very Good 7%

Good 5%

Effective from this year’s evaluation, this special amendment is for Senior Instructors and English Teachers who reached their sixth (6th) year and above in HIPF. Teachers and Instructors not covered with this amendment (five (5) years and below), will still be under their current annual increment policy. Person in charge of [preparing] annual appraisal:  

An employee's appraisal shall be made by his HOD, and then it shall be raised to the Manager. A meeting is to be held between the (evaluated) employee, his HOD and the Manager to discuss the appraisal report. Employee should sign on the result of the appraisal and write his remarks, in case of disapproval; he should fill Complaint Form and submit the same in accordance with complaining policy.

NEW EMPLOYEE POLICY General Policy: This policy is in line with the policy of Human Resources Department of the Institute to provide a suitable working environment to ensure the best performance and achievement where develop induction program helps the new employee joined to the work to identify the facilities of the Institute, learn some important aspects and its relationship with other related departments and the nature of his work. Purpose: Provide the basic for the systems and laws governing employee relationship with the Institute and to know all the aspects of the institute and the workplace.

Range: Covering all employees, whether locally or international. Details: • Employee recruited from Saudi Arabia: The implementation of this program is applied for the employees who were recruited from Saudi Arabia (Saudi - non-Saudi) the program consists of one day after the completion of all recruitment procedures (employment contract, uniforms, business card, proof of attendance at the footprint machine, open a bank account .. etc. ..), human resource Department and public relations department are responsible for the implementation of this program and the program contains: • General introductory lecture for the Institute stating: √ A brief summary of the history and the idea of establishing the Institute.  The task of the Institute and the primary activity.  Give him a copy of the institute manual and answer its questions.  Introductory tour of the Institute and its departments. • Introductory lecture of its tasks required to accomplish: √ Give him a copy of the job description and explanation of the organizational structure of the Institute. √ Explain the goals expected to be accomplished and the main tasks of his job. √ Receive his workplace and provide the employment requirements. • Staff recruited from outside Saudi Arabia: The implementation of this program for employees who were recruited from outside Saudi Arabia is applied, the program consists of one day and the Human Resource Department and Public Relations Department are responsible for the implementation of this program and the program contains: • Reception , hospitality and the induction program: √Welcoming the new employee at the airport. √ Book suitable accommodation for the new employee for three days at the expense of the Institute and pay amount of 450 riyals per employee subsistence allowance during this period. √ Bring and return the employee from his residence place to the Institute during the first three days. √ Pay housing allowance for the new employee in advance for a period of six months. √ Receive the employee on the first day of the institute and gives a brief summary of the Institute, the history and the idea of its establishment. √ Finalize the recruitment procedures (employment contract, uniforms, business card, proof of attendance at the footprint machine, a medical examination, open an account in the bank… etc) to work at the Higher Institute for Plastics fabrication. √ Explain the functions of the Institute and the main activity. 04

√ Give him a copy of the induction booklet of the Institute and answer its questions. √ Introductory tour about the Institute and its departments. Introductory lecture of his tasks required to accomplish: - Give him a copy of the job description and explanation of the organizational structure of the Institute. -Explain the objectives expected to accomplish and his basic tasks of the work. - Send him to his place of work and provide the employment requirements. • Induction program: Human Resource Department coordinates with all departments of the Institute to organize introductory tour of two-weeks more or less depending on the nature of the new employee's job and it aims to define the nature of the work of each department of the Institute's departments and the full knowledge of the nature of the work.

APPRAISAL AND PERFORMANCE MANAGEMENT POLICY General Policy: Each department develop the objectives and performance criteria for each employee and team work in the beginning of the year , qualify and help the individual and team work to achieve their goals, and the performance evaluation aims to achieve a certain level of performance and work on staff development.

Purpose: The performance appraisal aims to: 1) Give each employee a notice for his desired job performance. 2) Determine the level of performance of the employee for the purposes of career development and promotion within the Institute. 3) Make sure that every employee understands the dimensions of the objectives and future responsibilities.

Range: Include all staff. Details:

1 - Competence: Must evaluate the employee's performance at the end of each contract. 2 - Period:

Appraisal is conducted at least one time per contract and it is recommended to be conducted more than once.

Appraisal method: 3-1 The managers and supervisors set at the beginning of the year the areas of the performance and requirements of each employee in the administration, and determine the performance standards and it shall be the basis for performance appraisal. 3-2 Provide the department managers with a performance appraisal form, and performance appraisal are conducted prior the end of the employee at least one month. 3-3 Each department head spend some time with the appraiser to explain the performance appraisal process and then fill in the form. The signing both the appraiser employee and his boss on the form is necessary to supplement the remainder of the proceedings, and the Department of Human Resources provide the necessary training for all department heads until appraisal process conducted good. 3-4 appraisal forms that have been filled in and reviewed returned again to the Human Resources Department prior the start of the new employee's contract. 3-5 Responsibilities: 1 - The responsibility of the Human Resources Department is to ensure the submission of forms to the departmental managers in a timely manner and that departmentâ&#x20AC;&#x2122;s heads get the training necessary to complete the appraisal process. 2 - The responsibility of the direct manager is to evaluate each employee to complete the appraisal process on the specified dates and provide the employee with a copy of the appraisal form acknowledge him of the appraisal process.

TRAINING AND CAREER DEVELOPMENT POLICY General Policy: The Institute's policy requires the support, develops, enhances, and trains the employee by providing the practical training and continues support. Purpose: develop general framework for the training process and career development at the Institute. Range: Include all staff. Types of training:

the Institute adopts the following types of training for staff training: 1) Training prior the work. 2) Specialized training inside the Institute. 3) Foreign training at the specialized centers. Details The training and career development policy in the institute adopts on the eligibility of each employee for training and career development and training is conducted through: 1 â&#x20AC;&#x201C; Identify the training requirements: The Department of Human Resources receive the training needs from the various departments where the basis of the training plan is prepared upon these needs for the coming year, the policy assumes the eligibility of all employees for annual training by rate of 50 hours of physical training to develop their skills and experience. 2 - Develop the annual training budget: develop the annual training needs based on the training needs for training and approve by the authorized one. 3 - Develop trainee appraisal system: The Department of Human Resources develops and implement a system for evaluating the employee enrolled training course and the extent to which the training course achieved its required objectives and to review and correct the defect if any.

ATTENDANCE POLICY General Policy: The Institute's policy is to determine the hours of attendance according to the Saudi labor system. Purpose: Give guidelines on the time attendance and leave, and a time of late allowed in the cases of emergency. Range: Include all staff. Details:

1. Method of calculating the hours of late: Employee is not allowed to be late for work except in cases of emergency but must present an excuse for the delay supported by the reason of late and approved by the department head, provided that not to be continuity habit and be compensated on the same day and does not involved within the overtime if any. 2. The method of deducting the late hours: - In case the employee delayed more than four hours a day without a valid excuse the employee is deemed absent and penalty policy is applied to him. - In case the employee is delayed for two hours in the month he is exempted from the discount if it is not a continuous habit, and more than that will deduct the full hour of late with the penalty according to the system of work. 3. Absence from work: In the case of the employee's absence for three consecutive days without warning his direct manager must inform the Human Resources Department to stop his salary, and to follow the statutory procedures by the labor system. 4. Manipulation in the attendance, leave or non-regulatory: In the case of manipulation in proving attendance in this case the penalty policy is applied and considered absent on that day. In the case of non-attendance to prove attendance intentionally or unintentionally gives him one opportunity per month and in the case it is repeated he is considered absent during this day and applies on him the penalty policy. 5. Approval of the extra work and hours of late: The statements of the overtime and finalize the late hours to the Executive Director for approval in payroll.

ANNUAL LEAVE POLICY General Policy: The Institute's policy requires clarification and follow-up the employee's absence from work with to acceptable personal reason, and dealing with other types of leaves according to the existing labor laws. Purpose: Provide guidelines and a general framework to deal with all types of leaves. Range: Include all staff. Definitions: This policy covers all the following types of leave: - Paid annual leave.

- Sick leave - Leave without pay - Pilgrimage leave - special leave (marriages, deaths, births) - leave for school exams 1 - Leave Dues Leave Duration 30 days (per year) 21 days (per year) 30 days (per year)

Type of contract One year Two years and did not complete five years of service in the institute Two years and served more than five years in the institute

1-1 The annual leave duration for part of the year is calculated by proportionality base. 1-2 The employee worth annual leave after completing 11 months of service for those of annual contracts, and the completion of 23 months for those their contracts two years. 1-3 by the prior approval of the Administration the employee can get annual leave before completing a year in the service of the Institute, and in this case the leave should not exceed the accrued days when taking the leave, and which is treated as submitted leave against his maturity of the annual leave. 2 - Paid leave: A. Leave balance: the balance of leave for the employees appears in the staff affairs program. B. Leave dues: Leave salary will be disbursed to the employee in a timely manner on the 25 of every month. C. Official holidays during the paid leave: If an official holiday is signed (as feast holiday) in the middle of annual leave to the employee, the employee may claim additional days for official leave against the official leave and can’t get the cash compensation. And the employee is entitled to link his usual or special leave with official leave. (The starting day of work is the start of the official holiday or in case his leave begins at the first working day after the official holiday).

3 – Postponement of the leave: Pursuant to a written request from the employee and if working conditions allowed the employee leave may be postponed to a later period of 9 months max. And should benefit from the entire accumulated leave; the employee will lose his right of the leave balance if he hasn’t benefited of it within the period specified above. 4 - Cancel the leave: If the employee is unable to travel due to work (at the request of the Institute and the written consent of the employee) and pay to the employee the leave allowance in cash compensated for the value of the tickets 100% (for the contract persons).

5 - Return late from leave: the employees who are unable to return to work in the specified date of return for urgent reasons or personal circumstances: - Notify the Department immediately before the date of their return that specified by nature and duration of the late. - To obtain the official approval for the request. - Show the documents that supports the reasons for the late on or before the return (for example: a medical report in the case of illness), and therefore any return late from leave will lead to penal proceedings and if the late without the consent and exceeded ten (10) days lead to the termination of the employee contract but must be preceded by a written warning from the Institute for the employee after absence five days (according to the Saudi labor system). 6- Early return from leave: Employees must take advantage of their leaves fully after the approval and the beginning of the leave, the employee who come back early from his vacation isn't entitled to claim the remaining days of leave days except in the case if the reason for cutting holiday at the request of the Institute. Furthermore, the administration is entitled to call an employee from his leave according to the working conditions, the institute should assume all the expenses resulting from being summoned. 7 - Approval of the holiday: At the beginning of the year each department must prepare the agenda / program of leaves for all employees, and must submit the application form of leave before thirty (30) days from the beginning of the leave programmed in the ordinary days and before forty-five (45) days during the holiday season. - Must notify the Personnel Director of the Institute for the return of the employee by filling in a return notice form to work and that after proceeding the work. - Period of leave without pay and not involved in calculation the remuneration service discharge. - Must settle any amount owed to the Institute before starting the vacation to abroad or get a guarantor from the institute, and in case cannot perform any of the two options it may affect at the beginning of the leave. 8 - Plane tickets for the leave: the employee who deserve tickets for vacation he shall be granted round-trip ticket of economic tourist class to the contract place regarding the foreign employees recruited from abroad and to the capital of the employee's country recruited from inside, furthermore the tickets for annual leave can be paid in cash - when they fall due in the case the employee travel by land or sea by the equivalent of 100% of its original value in the regular season. Responsibilities: √ Personnel department must follow –up the implementation and recording the documents √ Each department is responsible for implementing the provisions of this policy. √ The employee is responsible for getting the benefit of his vacation to get the maximum benefit of his dues and abide by the beginning and the end date of the leave as planned . √ Financial department must pay leave dues ( special case ) three (3) days prior to the beginning of the employee leave and coordination with the concerned authorities to implement this policy .

SICK LEAVE: Definitions: - Industrial accident : injury or illness that resulted directly from the performance of work assigned

to the employee during working hours. -Industrial accident's leave: leave granted as a result of a temporary disability resulting from Industrial accident. - Sick leave not related to the Industrial accident: Leave due to absence from work awarded as a result of temporary disability not because of work-related injury or illness that not related to the work. - Medical facilities: any medical center like dispensary, hospitals, and specialized centers accredited to the management of the Institute or the medical insurance company contracting with the Institute. - Sick leave salary: basic salary, housing allowance, transportation allowance. 1 – Industrial accident leave: • The employee who injured or become ill as a result of work-related injury is given a medical treatment form by his reference addressed to any of the social insurance hospitals , where he shall be treated as stipulated in the policies and procedures of social insurance. • The supervisor of the injured employee completes the professional notice form and sends it to the Personnel department. • If it is proved that there is temporary disability by the medical authorities the employee is granted paid sick leave according to the social insurance system. 2 - Sick leave without industrial accident: The employee must inform the management during the first day of his illness, and submit the report presented from the approved medical department from the Institute for the manager / direct supervisor when return to work, and if the employee failed to deliver the medical report within three (3) days of his return to work, deemed absent without reason that lead to a penal procedure in accordance with the penalty policy. • Sick leave salary without industrial accident: Employees who meet the condition of the sick leave deserve the following per year: First thirty (30) days after 100% of salary. First following Sixty (60) days 75% of salary. And unpaid (30) days following that days in one year, whether connected or intermittent leave. One year means: the year that starts from the first sick leave. • Not to pay sick leave allowance unless used during the year, and that any day of sick leave other than the approved one shall be considered unauthorized absence and shall be settled from the employee's salary. • Sickness during annual leave: • Do not compensate with additional days if the disease was during annual leave or public holiday. • The use of painkillers and steroids unless recommend by the doctor. • Illegal or immoral actions. • participate in the work or another job without permission. • Neglect or failure to observe safety procedures. 3 - Unpaid leave salary: • Depending on the prior approval of the administration , an employee is entitled to in case of emergency or for personal reasons leave without pay up to fifteen days ( 15 ) days per year for

employees on annual contracts and thirty ( 30) days for employees on two-year contracts . • Leave without pay that was not used during the year cannot be carried over to the following year. • Arrangements and travel expenses for leave without pay are the responsibility of the employee. • Deduct is limited only on the basic salary and other allowances except housing allowance and transportation. 4 - Pilgrimage leave: The employee is entitled to get paid leave of not less than ten days and not more than fifteen days, including Greater Barium Holiday to do pilgrimage rituals once during the his service if he has not performed before . And to get this leave the employee must spend in the service at least two years. The Institute has the right to determine the number of employees who are granted this leave annually in accordance with the requirements of the work. 5 - Special leave: The employee worth paid leave in the following cases with the submission of supporting documents for this:  Three (3) days for his marriage.  One day (1) In the case of the birth of his baby.  Three (3) days in case of the death of his spouse or one of his ascendants or descendants. 6 - leave of school exams: The Institute provide the Saudi employee who follows his training or scientific study a leave with full pay for the duration of the exam and that is for one recycled its duration is determined by the number of the actual days of the exam, but if the exam is for recycled year, the labor is entitled to get leave without pay to perform the exam and the institute is entitled to ask the employee to provide the supporting documents to request leave as well as the proof of the exam performance. The employee must apply for leave fifteen days at least in advance. And the employee is derived from the leave allowance if it is proved that he did not do the exam, without prejudice to the disciplinary accountability. According to the following conditions that are required for approving the leave referred to above:  The prior approval of the Institute's educational institution.  Provide proof of registration in the study, the date and the table of the exam.  Provide proof of actual attendance for these exams.

TRAVEL POLICY General Policy: HIPF shall lay out the guidelines that allows employees to travel from the Institute’s main office to perform some tasks related to work or to get training in some aspects, procedures, or equipment which, in its turn, facilitate the Institute’s operations. Purpose: Provide guidelines on costs claims of official business trips locally and outside the Kingdom of Saudi Arabia.

Range: Cover all eligible employees to travel. Details: 1 - The authority of approving the Business Trip: Those who have the authority of approving the Business Trip are: The Chairman of the Board and Executive Director or their representative. 2 – Booking for travel:  Human Resources Department shall arrange the required flight booking in accordance with business trip application submitted by the employee and approved by the Executive Director as explained above.  In case the employee was requested to go in a trip not included in the planned trip; he will be entitled to refund expenses of that trip from the Institute on condition of securing approval of the competent authority.  Tickets degree as shown in the table below. 3 - Business Trip allowance: 3-1 – Employee who travels in business trip shall be entitled to an allowance that covers business trip expenses and shall be computed on basis of spending night at the location of the trip.

DEGREE FROM- TO 10 9 8 7-1

LOCAL TRAVEL ALLOWANCE BY RIYALS 811 700 600 400

INTERNATIONAL ALLOWANCE BY RIYALS 1600 1400 1200 1000

FLIGHT CLASS LOCAL

INTERNATIONAL

First Business Business Economy

Trip allowance is the daily allowance that employee deserves when he is sent in a business trip. It covers accommodation, food and transportation. Air tickets shall be arranged by the Institute or the approved dealer. 3-2 To claim the Business Trip allowance:  The employee on business trip deserves a decisive sum (Travel allowance) covering the trip expenses and calculated on overnight stay in place of the Trip. Deduct 50% of the Trip allowance if the institute provides housing and deduct 25 % if provides transportation and 25% if provides food and 100% in case the institute provides all the services of housing, transportation , food, and pay employee 10% of the total travel allowance but the travel allowance should not exceed five days per month.  The Trip is calculated one and half day in case of traveling on the morning and return the next day before twelve o'clock noon , and after twelve o'clock noon Trip is two days

  

It is not allowed in the local travel to bring any bills for travel expenses if the Institute provides all the services and if any of them did not provided shall pay travel allowance as per the position. In case the delegated person traveled by his own car shall pay to him the value of the ticket to the country where he is delegated. In the case of foreign business trips it can pay for the actual expenses according to invoices submitted in this regard subject to the prior approval by the Executive Director .

Training: The employee shall receive travel allowance when it requires traveling to attend authorized training by the Institute. 3 -3 Travel allowance in advance: Staff is entitled for Travel allowance in advance as follows:  Disburse to the deputized internally 100 % of the outstanding Trip value as an advance payment.  Pay the deputized externally 100 % of the outstanding Trip value as an advance payment.  Upon the return of the employee the claim travel allowance is settled within five (5) working days from the date of return. 3-4 other business trips expenses: √ Cost of telegrams, official telephone conversations, fax, and courier and shipping of goods and documents, e-mail is not included in the travel allowance and may be claimed when submitting the original invoices. √ Transportation to and from the airport is by the following cases: √ Institute ensures the transfer of the deputized employee to and from the airport √ The deputized employee submits the transportation invoices to and from the airport if the institute couldn't secure the transportation means. √ Deputized employee submits the bills of car parking at the airport but parking the vehicle shall not exceed at the most three days in the case of the increase he employee shall pay the difference. Pay the expenses in case of emergency: The Institute provides medical coverage for employees who are traveling always, this policy covers emergency expenses, if any while traveling on a business trip. Time to claim travel expenses: √ must submit a settlement request of the Travel allowance expenses during 5 days of returning from travel, the employee will lose his right to get dues if unclaimed within 30 days.

The form: • Must use "travel expenses Claim Form" at the claim of dues receivables, this form will be available in all departments. Travel dues: • All dues of travel claims must be attached with the consent form to travel and ticket receipt. General:  Must not recruit any employee for five consecutive days, and then re-deputized before the end of ten days on the first travel, and for the commonweal must get the approval of the Executive Director.

 



 



Authorized employee abroad gets a decisive allowance determined by the travel system as mentioned above. If the employee get ill during the business trip all regular expenses shall paid to him during his illness as he is on a business trip, provided to submit the medical reports and the necessary documents that illustrate the nature and duration of illness, and the medical expenses and the costs of hypnosis are paid - if necessary - by the Institute. Remuneration for expenses not covered by the Travel allowance which was spent abroad paid in Saudi Riyals at the exchange rate prevailing at effective time of exchange; all expenses inside / abroad that are not included in the Travel allowance are supported with necessary documents in the form of paid bills, or tickets receipts... Etc.. Expenses documents must be original, copies are not accepted only in exceptional cases where cannot get the original. Claims on telephone conversations for the purpose of work from the hotel or otherwise must contain phone numbers. If traveling for countries where the work week begins on Saturday it is preferred planning the beginning of the trip to begin on Friday evening, and if the travel to the countries where the work week begins on Monday it is preferred planning the beginning of the trip to begin on Sunday evening.

Responsibilities:  Each department develop budget for business trips within the budget year.  Employee must fill in the required data and get the necessary approvals in the application form business trip.  Personnel Department organizes the issuance of tickets, hotel bookings.  Personnel Department help to get a visit visa to the country where will visit.  The institute is liable to pay the visa fee.  The Personnel Department issues an in\out visa to the employee upon request.  The employee complete "Mandatory Application Form" as per the specified period of business trip upon the approved Travel allowance.  The financial department prepares the requirement according to the “approved Travel Application Form”.  The employee is personally responsible for booking dates, flight schedule and must confirm the booking Personnel Department prior to departure.  The employee completes the notification form of return to work upon his return, , sign by his direct manager and send to the human resources officer in the institute for further action.  The employee shall be responsible for applying the travel before the date of travel by duration of 7 days for local flights and 15 days for foreign flights.

PENALTY POLICY The Institute aims to ensure that the application of penal procedure is applied in a fair and identical to the penalty rule regime according to labor system. Penal system: Appendix 1 shows the approved penal system by labor Ministry and that corresponds with the labor legislation in the Kingdom of Saudi Arabia, note that the listed sanctions are the maximum offenses and the management has the authority to impose less sanctions.

Details: In the event of any breach the competent direct head must report to the senior management as well as report to the Human Resources Department by the type of offense with compliance to the career discipline. Human Resources Department will decide in agreement with the direct manager the level of detections and the investigation of the incident and whether it is necessary to inform the security, legal, or government authorities if necessary. Investigation in the offense is conducted by the direct manager in collaboration with the Human Resources Department. And record all the procedures and report the recommendations to the authorized person to take the necessary criminal procedure and any other treatments such as training and advice.... Etc. Letter of warning (career discipline Record) prepared by the direct head and signed by the department manager, and the employee sign on the warning letter including justifications and reasons , if any and send copy to payroll department for deduction and send the origin of the file in question and copy to his direct head . Employee can object to the penal procedure and request to review the matter in accordance to the Law of Criminal Procedure (please check the policy of addressing the appeals). - In the case of an employee 's refusal to sign the acknowledgment must record a testimony of two employees of refusing to receive and sends the letter to the mailing address , and after making a note about that the letter is conveyed to the senior employee, and this refusal deprives the employee of his right to request a review and appeal. - All notices of services termination is prepared by the Human Resources Department by the type of offense and in consultation with the department manager, and submits the recommendations to the authority before conducting the services termination. involvement of third parties: the Institute works to transfer the employee to the official authorities when the offense is a breach of felony regulations in the Kingdom and especially if not reporting puts the Institute in the position of responsibility, and agreed to report this offense by the director of Human Resources Department after taking the approval by the Executive Director. Penal Procedure Policy General: Penalties that may be imposed on the worker are: The first category (Light sanctions): - Warning (oral or written) - Written warning - Deduct rate of pay within part of the day. The second category (severe sanctions): - Deduct part of the worker's wage (from one day to five days) - suspension from work without pay (from one day to five days) c â&#x20AC;&#x201C; Invalidate or delay the promotion (denial of any increase in pay) d â&#x20AC;&#x201C; Service termination with a remuneration e - Service termination without remuneration

•sign and approve the aforementioned penalties in the previous article by the Director of Human Resources Department as recommended by employee's reference provided not to prejudice the Saudi labor regulations. • It is not allowed to sign more than one penalty for the offense and deduction must not be over five day’s salary per month and not exceed two months’ salary per year. • it is not allowed to accuse the worker of offense has been detected for more than fifteen days or penalize him after proving the offense by more than thirty days for workers who get their wages on a monthly basis and fifteen days for other workers from the date of error proof. • Informing the worker is by a formal notice in his workplace of the penalty and If refrained from receiving the notice shall post the notice in the announcement board or send to his e-mail. • Prepare for each labor penalty certificate includes the offenses types committed by him and this certificate is kept in the worker's service file. • Not allowed to penalize the labor only after being informed in writing what is attributed to him , questioned him in this regard , listen to his words , his defense and report the human resource Department of that and register all of this in the minutes attached in his file. •Record discounts applied on the labor in a special register and shall be deposited in a special account disbursed on the cultural and social services for the employees. •any warning letter issued from more than six months dropped by the Saudi labor system. • If decided to send a warning letter to the employee, it must be attached with his investigation from his direct head or department manager about the reason for the offense and his justification. • If the offense falls within Article (80) of the labor regulation it doesn't require any previous warning and must terminate him (termination without remuneration). • The authority of the penalty is limited to the department managers and above and submitted to the Human Resources Department for the application of the penalty. Responsibilities: • The responsibility of Human Resources Department and all managers of the institute is to make sure that any offense of the penal system is dealt with in accordance with the approved penalty policy pursuant to the labor regulation. • The responsibility of the Human Resources Department is to make sure that there is fair and consistent treatment for all.

PENALTY AND OFFENSE TABLE (1) OFFENSES RELATING TO WORKING HOURS: SERIAL NO.

PENALTY (DISCOUNTED RATE IS THE PERCENTAGE OF THE DAILY WAGE)

OFFENSE

1\1

Being late for work up to 15 minutes without permission or an acceptable excuse if the late doesn't effect on other labors as a consequent Being late for work up to 15 minutes without permission or an acceptable excuse if the late affected on other labors as a consequent Being late for work for more than 15 minutes to 30 minutes without permission or acceptable excuse if the late doesn't effect on other labors as a consequent Being late for work for more than 15 minutes to 30 minutes without permission or acceptable excuse if the late affected on other labors as a consequent Being late for work for more than 30 minutes to 60 minutes without permission or an acceptable excuse if the late doesnâ&#x20AC;&#x2122;t affected on other labors as a consequent Being late for work for more than 30 minutes to 60 minutes without permission or reasonable excuse if the late affected on other labors as a consequent Being late for work for more than an hour without permission or reasonable excuse whether or not affected on the other workers accordingly.

1\2

1\3

1\4

1\5

1\6

1\7

First time

Second

Third

Fourth

Written warning

10%

15%

Written warning

15%

25%

50%

10%

15%

25%

50%

25%

50%

75%

One day

25%

50%

75%

One day

30%

50%

One day

Two day

Written warning

One day

Two days

Three days

Plus deducting the wage of late-hours

CONTINUED: OFFENSES RELATED TO WORK HOURS

SERIAL NO.

OFFENSE

1\8

Leave work or leave before the time without permission or reasonable excuse not to exceed 15 minutes

1\9

Leave work or leave before the time without permission or reasonable excuse to exceed 15 minutes Stay in the workplace or return to it after the end of working hours without justification Absence without written permission or an

1\10 1\11

PENALTY (DISCOUNTED RATE IS THE PERCENTAGE OF THE DAILY WAGE) First time Second Third Fourth Written 10% 25% One day warning Plus deduct the wage of work leave period 10% 25% 50% One day Plus deduct the wage of work leave period Written warning One day

10%

25%

One day

Two

Three

Four days

acceptable excuse from one to three days 1\12

Absence without written permission or an acceptable excuse from four to six days

1\13

Absence without written permission or an acceptable excuse from seven to ten days

1\14

Absence from work without a valid reason for more than ten consecutive days

1\15

Intermittent absences without a legitimate reason for periods aggregating more than twenty days per year

days days Plus deduct the wage of the absence period Termination Three Four Two days with days days remuneration Plus deduct the wage of the absence period Termination Four days Five days with remuneration Plus deduct the wage of the absence period Termination without reward or compensation to be preceded by a written warning after a five-day absence pursuant to the provision of Article (80) of the labor law Termination without reward or compensation to be preceded by a written warning after ten absence pursuant to the provision of Article (80) of the labor law

(2) OFFENSES RELATING TO THE ORGANIZATION OF WORK:

SERIAL NO. 2\1 2\2

2\3 2\4 2\5 2\6 2\7 2\8

PENALTY (DISCOUNTED RATE IS THE PERCENTAGE OF THE DAILY WAGE) First time Second Third Fourth

OFFENSE

Unjustified presence in the workplace during working hours Welcome visitors other than the institute's workers non-established workers in the workplace without the permission of the management Eating in the workplace or other place prepared for or at times other than rest time Sleep during the work

10%

25%

50%

day

Written warning

10%

15%

25%

10%

15%

25%

10%

25%

50%

day

Two days

Three days

10%

25%

50%

One day

25%

50%

25%

50%

Written warning Written warning

Sleeping in cases that require constant vigilance Loitering or the presence of workers out of their place during working hours Manipulate to prove attendance Not to obey regular orders of work or nonimplementation of instructions posted in

One day One day

Two days Two days

prominent place 2\9

Incitement to disobeying orders and written instructions for action.

2\10

Smoking in prohibited and announced places to maintain the safety of workers and the institute Neglect or complacency in the work that may arise in damage to the health ,safety of workers , materials or tools and devices

2\11

Two days

Three days

Five days

Two days

Three days

Five days

Two days

Three days

Five days

Termination with the remuneration Termination with the remuneration Termination with the remuneration

CONTINUED: OFFENSES RELATING TO THE ORGANIZATION OF WORK:

SERIAL NO. 2\12

PENALTY (DISCOUNTED RATE IS THE PERCENTAGE OF THE DAILY WAGE) First time Second Third Fourth

OFFENSE

The use of machinery , equipment and tools of the establishment for special purposes without permission worker involvement unlawfully in any business which is not his competence or not entrusted to him. Exit or entry from the place not designated for that purpose Negligence in cleaning and maintenance of machinery or not taking care of it or fail to report what the defect. Do not put repair and maintenance tools and other supplies in places allocated to them after the completion of the work Reading newspapers, magazines and other publications in the workplace during working hours without the requirement of the job duties Shredding or destruction the announcement or communications of establishment management

2\13

2\14 2\15

2\16

2\17

2\18

Written warning

10%

25%

50%

One day

Two days

Three days

Written warning

10%

15%

25%

50%

One day

Two days

Three days

Written warning

25%

50%

One day

20%

25%

One day

Two days

Three days

Five days

Termination with the remuneration

OFFENSES RELATED TO THE LABOR'S BEHAVIOR SERIAL

OFFENSE

PENALTY

NO.

3\1

3\6

Quarreling with colleagues or to cause riots in the workplace pretending ill or claim falsely that he injured while working or due to it Refrain from conducting a medical examination at the request of establishment's doctor or refused to follow the instructions during the medical treatment. Breaching of health instructions posted in the workplace. Write the words on the walls or paste advertisements. Refuse inspection during leave time.

3\7

Collect benefits or money without permission

3\8

Non-delivery of the collected money to for the establishment's account at deadlines without acceptable justification Refrain from wearing clothes and devices prescribed for the prevention and safety.

3\2 3\3

3\4 3\5

3\9

(DISCOUNTED RATE IS THE PERCENTAGE OF THE DAILY WAGE) First time Second Third Fourth Two Three One day Five days days days Two Three One day Five days days days

One day

Two days

Three days

Five days

50%

One day

Two days

Five days

Written warning

10%

25%

50%

25%

50%

One day

Two days

Written warning

10%

25%

50%

Two days

Three days

Five days

Termination with the remuneration

Written warning

One day

Two days

Five days

MEDICAL COVERAGE POLICY AND SOCIAL INSURANCE MEDICAL COVERAGE General Policy: All employees and their families (wife of four children aged less than 22 years old) residing in Saudi

Arabia (Saudis and expatriates) are subjected to medical coverage program of the Institute according to the agreement with the service provider (insurance company), and that all employees are subjected to the social insurance regulations. Purpose: To provide guidelines about medical coverage and Social insurance. Range: Include all staff. Details: Medical treatment: 1 â&#x20AC;&#x201C; Medical treatment inside the kingdom: Higher Institute for Plastics fabrication provide the necessary medical coverage for the employees and their families, according to contract with the insurance company, provide the necessary treatment for employees and their families according to the agreement with the insurance company. 2 - Medical Treatment outside the kingdom / not paid by the Institute: The institute is not committed to pay any medical treatment expenses outside the Kingdom for the employee or their dependents only if there is prior approval from the management of the Institute for that or if the employee has been assigned to travel to the official work and the treatment can't be delayed until his return to the kingdom. 3 - Compensation for the treatment expenses: the institute shall submit the bills of the medical treatment expenses for the employee when submitting the requested documents and these documents include hospital bills, doctor bills, prescriptions and pharmacy bills to the insurance company for the purpose of employee compensation.

SOCIAL INSURANCE â&#x20AC;˘ According to the laws and regulations in the Kingdom of Saudi Arabia all employees shall participate in the system of the General Organization for Social Insurance, pursuant to the law of the General Organization for Social Insurance. â&#x20AC;˘ the Institute pay 2 % as a contribution for each employee to the occupational hazards for all employees , and in addition to that it pays 18% as a contribution to the retirement of Saudi employees in accordance with the social insurance system ( 9 % on the employee, 9% on the Institute ) according the system.

HEALTH AND OCCUPATIONAL SAFETY POLICY General Policy: The Institute is keen on the health and safety of its employees , and therefore has developed the following policies and regulations to protect them.

Purpose: To provide guidelines on health and safety at the Institute. Range: Include all staff . Details: 1 - Prevention and Safety: Caring from the Institute for the safety of the staff from the risks and take the following measures : • Preparation of exits to survive in emergency cases. • Ensure fire extinguishers in appropriate places and train staff to use them when needed. • Keep the workplace in the case of complete cleanliness. • Keep in every place contains staff a first aid box while providing a nurse for nursing and first aid. • Recruit a responsible for the periodic inspection or contract with a specialized company for the purpose of ensuring the safety of fire extinguishers and good use of the prevention and safety means. • Posting in prominent places about the risks, prevention means and instructions to be followed . • banning smoking permanently in the Institute's facilities. • The provision of potable water for drinking and washing. • Provide water for drinking with the required health level. • Staff training on the use of safety and prevention tools secured by the Institute.

INDUSTRIAL ACCIDENTS AND OCCUPATIONAL DIS EASES • The labor who gets industrial accident or occupational disease must inform his direct boss or the management of the Institute as soon as he could. • The department managers initiate to inform the management of any phenomena indicates the emergence of an occupational disease among the staff. • apply for work-related injuries and occupational diseases the provisions of the Occupational Hazards Branch of the social insurance system.

TERMINATION POLICY General Policy: The Institute's policy is to keep its employees with some of the cases that require necessarily terminate the services of the employee.

Purpose: To provide guidelines for end of service remuneration, retirement, resignation and terminate the contract. Range: This policy covers all employees. Details: â&#x20AC;˘ The basic rule: The services of the institute`s employee terminated in one of these conditions: - resignation termination of the contract by the second party (the employee). - The expiration of the contract (the specified contract). - Termination of the contract by the first party (Medical unfitness). - Total disability / medical unfitness. - Retirement. - Death. - The reasons set forth in Article 80 of the Saudi labor system. Recommendation of termination by the direct head and the responsible manager or the department manager and approved by the Executive Director. And then the final decision will be taken to end services. Other factors: 1. Trial period: If the labor's validity not proved well during the trial period to carry out the duties of the work agreed upon the Institute has the right to abolish the work contract without reward , warning or compensation in accordance with Article (80) paragraph ( 6) of the labor regulation provided to show the reasons for his opposition to the annulment . In this case the employee deserves: - His salary for the period he spent at work. - Leaves for the months he spent in the work. -Housing allowance for the period he spend if not granted residence in kind . 2. Incorrect information: Employee's contract is terminated if it is proved that the job application or CV contained incorrect information in this case not the return ticket isn't liable to the Institute. 3. Re-recruitment: if the employee's services are not terminated because of Article (80) of the labor system, it can be re-recruited at any location in the institute by different job, and subject to a new trial period and a new contract.

4. Transfer of sponsorship / Non-opposition certificate: The following is an explanation of the conditions to transfer the sponsorship: â&#x20AC;˘ Staff recruited by the Institute's visa: - Does not allow transferring the sponsorship or granting NOC for employees who have entered the kingdom under the sponsorship of the Institute. -Staff who have been assimilated ( transfer their sponsorship) from the local market : allows to transfer the employee's sponsorship that the institute finished his services or resigned from his job on the condition that the resignation should be regular and gave the Institute the warning period according to the system . 5. Dues of end of service: Remuneration: -Remuneration is determined based on the last basic salary plus housing allowance and transportation allowance . - Employee who works by fixed duration contract deserves full remuneration of end of service in the following cases ( 15 working days for each year for the first five years of his continuous service, and one month for each year of the sixth year and above) as stated in Article 84 of the Saudi Arabia Labor Law, so : - If the employee finished his services by the end of his contract provided to respect the warning specified period. - If the Institute terminated the Employee Services without reasons whether the contract is with specified or unspecified period. - in the case of an indefinite contract if the employee resigned the institute shall pay his dues for the end of service if taken into account the warning period as stipulated in Article ( 85 ) of the Saudi Labor Law , as follows: - Pay to the employee pay ten (10) days for each year spent in the service of the Institute for the first five years, and the remuneration of twenty (20) days for each year from the sixth year until the tenth if he worked in the institute for more than five (5) years and less than ten (10)years. Grant the employee wage of fifteen (15) days for each year for the first five years, and the remuneration for thirty (30) days for each year of the other remaining years in his service if he worked in the institute for a period of ten (10) years or more. - At the end of the fixed-term contract if the two parties wish the contract is deemed automatically renewed for an indefinite period and in this case the end-of-service bonus will be calculated for each year of service (whether specific or indefinite) in accordance with the terms of the contract of indefinite duration. - The employee is not given remuneration of end of service in the following cases (whether the contract is a fixed term or indefinite): - If the employee terminates his contract before the end date of the contract and his tenure was less than two years. - If the Institute terminated the employee's services by one of the reasons set out in Article 80 of the Saudi labor system, and that are described in the employment contract. - The employee worth at the end of the service compensation for the balance of vacations including basic salary, transport allowance and housing allowance.

6- Service certification: When resign ,completion or termination of the contract the employee can obtain a certificate of service of the Institute as stipulated in the Saudi Labor Law. 7 - Personal documents: When the employee leave the work in the institute, the employee can get all the personal original documents in his file at his request, the Institute is entitled to keep copy of them. 8 - Disclaimer form: At the end of the employee service in the institute, he shall fill in Disclaimer model which explains his fulfillment of all obligations and signed by the employee , the supervisor and the department manager and accordingly settle his dues . 9 - Retirement: the retirement at age sixty (60) and is effective on the last day of the month at the age of sixty. 10 Accrued dues in the event of death: In the case of the employee's death during the term of his contract his heirs worth the following: - All unpaid salaries owed to the employee at the time of death. - Cash compensation for holidays and vacations that have not enjoyed before his death, including basic salary, transport allowance and housing allowance. - Other adjustments due to the employee at the end of his service. - Expenses of transporting the body and plane tickets to go to his family to the place that recruited from. 11 - General: - Employee must comply with a warning period specified by the contract. - The management can use its powers to discharge the employee from his service upon receipt the request of his termination in spite of a due warning period, in this case shall pay the salary for the remaining period of the warning.

MARITAL STATUS POLICY General Policy: The Institute's policy is to help its employees (non-Saudi) who are allowed to bring their families to

the Kingdom of Saudi Arabia whenever possible. Purpose: Give guidelines to employees who have been granted family status and wish to bring their families. Range: This policy covers all employeesâ&#x20AC;&#x2122; eligible couples of the family situation. Details: 1 - new contract staff whose their contracts states to provide them marital status can give them tickets to come after the completion of the trial period and after the recommendation of his reference to do so. 2 - the Institute shall issue NOC to bring the family of the employee, and this approval will be awarded based on the subject to the conditions prescribed by the Saudi government in this regard, given tickets to come to the family of the employee and for the wife and two children maximum, provided that age of kids should not exceed 18 years. 3 - The Institute is responsible for the travel tickets and in\out visa according to the contract for this category (employee, wife, two children) and the accrual of family tickets is linked to the accrual of the employee. 4 - Since the recruitment regulations of Saudi Arabia does not allow the recruitment of families for some professions, so any change in the job the employee accrued the full costs. 5 - The Institute accrues the recruitment fees of the newborn 2000 riyals. In case the employee get a family contract either after a period of his work in the institute or since the beginning of the contract, he is entitled to get tickets for his wife and two children only and is not entitled to claim expenses incurred prior to maturity. in case the employee requested to travel by land it compensates for the actual value of the tickets for him and his family according to the normal price in the regular season. Policy documents record.

DOCUMENTATION POLICY:

Human resources administration is seeking to save personnel records and copies of their certificates , official documents and administrative decisions ..... etc.. Purpose: Provide guidelines concerning keeping of official documents. Range: Include all staff. Details: Documents: Human Resource department works to save copies of the official documents for staff , administrative decisions and leave forms, contracts, warnings and other documents related to the nature of the work. Saving documents is in brief in the traditional form as well as electronically for easy reference. And there is details for the period in which they are saved as described in the policy of saving documents.

GOVERNMENT'S POLICY OF PAYING FEES: General Policy: The Institute seeks to provide assistance to his employees to obtain work permits and residence in Saudi Arabia. Purpose: Provide guidelines for activities relating to official documents. Range: Include all non-Saudi staff. Details: Human Resource Department working on the issuance of documents associated with the employment of the employee to obtain government approval to extract his regular residence. The institute accrues all charges of the following documents : â&#x20AC;˘ Fees : - All visa fees , medical checkup accrued by the Institute as well as fees of the employment offices for outside recruitment. - The Institute is liable the sum of 2,000 riyals maximum of the expenses of sponsorship transfer for locally recruited staff. - The institute is liable of the fees for issuance and renewal of residence for staff only - the Institute is responsible in\out visa fees and to all employees when they go on their due vacation and their families a maximum of three visas for the family ( wife + two children ) to those who are on a family contract . - staff is liable for any fines that may arise from the delay of documentation or complete the transaction due to their delay in receiving the documents required for human resources. Responsibilities: - Human Resource department is responsible for obtaining the necessary documents for each employee to work and stay in the Kingdom .

- The responsibility of the employee is to make sure to show the required original documents. - The responsibility of the employee is to renew his passport on time and at his own expense. - When resign the employee shall pay all expenses related to employment in a relative way if did not complete the term of the contract . -please use (passport receipt model) upon receipt of passport while going to leave or renew residence.

COMPLAINT POLICY General Policy: The Institute's policy is to listen to the problems of employees and handle the complaint to the extent possible. Purpose: Provide guidelines to handle the employeeâ&#x20AC;&#x2122;s complaint so as to obtain a stimulating work environment and high spirits. Range: Include all staff. Definition: Appeal: any problem or obstacle faces the employee while carrying out his duties in a satisfactory manner. Details: 1 - Complaint - explanation Do not be confused between the complaint and appeal against a penal procedure. 2 - Complaint types: Complaints can be classified broadly into two types: â&#x20AC;˘ Directly related to the job: These include matters directly related to policies, procedures, salaries, vacations, promotions, performance ... Etc.. â&#x20AC;˘ Related indirectly to job: These include issues related to the pressures from other employees , bosses, or any issues with sensitivity issued from the workplace and have a bad impact on the morale and motivate employees. Complaints are handled in both cases as a process of four stages: First stage: direct supervisory level: At this stage, the employee may wish to report issue concerns him or directly related to him and perhaps raise the issue formally by note or transmitted orally to his immediate superior. The head discusses the matter with the employee and trying to find a solution, and perhaps consult managers when trying to deal with it with a written documentation of the solution for the purpose of keeping. And solution period must not exceed two days, and if the matter not solved to what satisfy the

complainant the complaint is raised to the next stage, and may require to consult Human Resources Manager when raise the complaint formally. Second stage: the department manager level: at this stage shall address the unresolved issues in the first phase which raised directly to the management, and to raise the complaint to the second level must complete the complaint form (attached) by the employee and sent to the department manager. Also, send to the employee copy to the Human Resources Department for the purpose of follow-up. The Director shall be responsible for holding meetings and try to resolve the confusion within five (5) working days, may be necessary to involve the director of human resources if necessary to attend the meeting as appropriate. Third Phase: Human Resource Department: If the matter is not resolved during the first and second phaseâ&#x20AC;&#x2122;s Human Resources Department is responsible for finding a solution to the problem, and it may require a series of meetings held individually or collectively and may require an analysis of the records and investigations. If not resolved to find a solution through (7 days) the matter shall be referred to the Appeals Committee (Phase IV) Fourth stage: the Appeals Committee: If has not been able to reach to solution during the early three previous stages or requires intervention of senior management the matter shall be referred to the Appeals Committee, and the Committee is chaired by the Executive Director and the Deputy Executive Director is a permanent member and designation of the other members by the Executive Director, and that is based on the nature of the subject and the appropriate expertise available the Commission's decision will be final, and in any case must reach a solution / settlement within fourteen (14) working days from the date of raising the dispute. General: Documenting and preserving all cases in the files for the purposes of recording. When report the penalty must keep copy of it in the employee file. Must deal confidentially in all matters concerning investigations / proofs.

POLICY OF END SERVICE INTERVIEW:

General Policy: Human Resource Department is aware that its knowledge of the reasons for leaving the employee the work provide it with valuable information, and this policy outlines the steps that must be taken when upon the employee's resignation. Details: When the employee resigned from work, the direct supervisor seek trying to determine the cause of resignation (better opportunities, salary increase, etc.), and any information can be observed from the employee file. The final interview conducted by Human Resources Department or authorized person. Ask from each resigned employees to fill in the form "questionnaire of Final interview " (attached) and this is done before the interview, and the representative of the Human Resources Department examines the feedback of the employee on the questionnaire, and it is necessary to get all information as possible when the employee expresses his dissatisfaction about any matter relating to his job or any area of the Institute's work or his policies. If the person who is conducting the interview the need for additional information he shall meet the supervisor of the resigned employee. Responsibilities: the interviewer is responsible for determining the validity of the reasons cited by the employee to resign as well as response of the direct supervisor (if any) and make sure it is recorded in the files, and in the case of important facts must be reported to the department manager has full authority on the employee's department.

WELFARE POLICY: General Policy: The Institute's policy is to provide some activities for employees outside working hours. Purpose: Provide clear guidelines on the areas of entertainment. Range: Covering all employees. Details: Institute is keen to provide local activities for the employees and abroad for recreation and the exchange of speeches, including trips ,different Games, main meals and participate in some of the cultural competitions.

UNIFORM POLICY 40

General Policy: The Institute's policy is that all the staff appears in impropriety befitting the level of the institute. Purpose: Provide clear guidelines regarding uniforms. Range: Covering all employees. Details: Must complete the uniform for employees depending on the nature of their work and the must be clean and ironed, according to the uniform policy. It is strictly forbidden to wear trousers (jeans), it also forbidden to wear normal shoe (sandal) and trainers must adhere to the specified uniform to them with the need to wear gloves and safety shoes. Institute provides uniforms for employees. It is the responsibility of the supervisor for the application of personnel policies issued in this regard, and do not follow uniform guidelines will result in criminal proceedings against the employee.

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