Employee Guide Alfanar

of 50

Last update on 01/05/2015

Human Resources Department

Note for Language: Arabic is the official language of Saudi Arabia, and therefore, whenever contradicts is seen

then the Arabic version will prevail.

of 50

INDEX

Chapter Subject

1- Introduction: HR, Mission & Objectives

2- Joining work

3- Probation Period

4- Working Hours

5- Hospitality gift and First Time Arrival Loan for new employees

6- Attendance

7- Performance Evaluation

8- Family Status

9- Salary Payment

10- Allowances Policy

10-1 Housing Allowance Policy

10-2 Transportation Allowance Policy

10-3 Air Ticket Entitlement

10-4 Air Ticket Loan

10-5 Annual entitled leave payment

10-6 Telecommunication & Mobile Allowances

10-7 Petty Cash Allowances

11- Issuing Iqama

12- Passport Custody

13- Registering Engineers & Accountants at Saudi Council

14- Bank Account Opening

15- Car Loan through Bank

16- Personal Loan through Bank

17- Transferring money Outside KSA

18- Medical Insurance

19 General Social Insurance

20 Social Services

21 Leaves

21-1 Paid Leaves

21-2 Emergency Unpaid Leaves

21-3 Delay in returning from Vacation

of 50

21-4 Not return from vacation

22 Issuing Exit Re-entry Visa

23 Issuing Multiple Exit Re-entry Visa

24 Family Residence Visa

25 Family Visit Visa

26 Family addition in Iqama

27 Baby addition in Iqama (Born in KSA)

28 Baby addition in Iqama (Born in Outside KSA)

29 Commercial Visa

30 Renewal of Iqama

31 Renewal of Passport

32 Transfer of information from old passport to new Passport

33 Correction of Information at Passport Office

34 Change of profession in Iqama

35 Damaged/Lost of Iqama

36 Damaged/Lost of Passport

37 Penalties/Fine applied from Government authorities

38 Transferring Employee's sponsorship to the company

39 Transfer of employees between companies

40 Termination of Services between employee and employer

41 Approval of Transferring Sponsorship From the company Issuing No-objection Letter

42 Experience Certificates

43 Procedure of Transfer sponsorship from the company

44 End of Service

45 School expenses for Manager with grade C0

45 Benefits of higher management (B4 and above)

46 HRA KPIS

of 50

1- Introduction

Human Resources Mission:

Deliver promote & efficient HRA services at competitive cost as enabler to develop and sustain high quality Human Recourses

of 50

2- Joining Work and Probation period

The starting day of employee’s contract is considered from the date of commencement of work at the work site and working hours are forty eight hours per week and Friday is a weekly day-off.

During the month of Ramadan, working hours for Muslims shall be six hours. Working hours for non-Muslim employees shall be eight hours daily with a break of one hour. A memo from Executive Manager, HRA shall determine the Working hours of the Head Office and working areas like projects and companies after coordination with the Division Managers.

When the employee arrives in the Kingdom, he should deliver his Passport and 12 photographs to the administrative in charge at the concerned divisions or to the person in charge at the Personnel Dept and make the necessary medical test to be able to issue the regular Residence Permit (Iqama) and the regular Work Permit.

The Iqama will be delivered to employee after issuing from the Passport Dept. and the employee is required to carry the Iqama at all his moves as he is not allowed to travel to any city without carrying his original Iqama.

3- Probation Period

All new employees are subject to work a probation period of 90 days and will be assigned permanently in case they successfully completed the probation period.

4- Working Hours in Head office:

Working hours for Head Office from Sunday to Thursday is from 8:00 a.m. up to 5:30 p.m. with 1 hours break from12:00 noon. up to 13:00 p.m. Friday and Saturday are weekly off for HO and some branches and departments.

5- Hospitality gift and First time arrivals loan for new employees:

5-1 The company shall provide an amount of SR 200 as a hospitality gift to all employees who are arriving on the company visa and it shall be delivered to the employee at the airport upon arrival, effective from 05/05/2015.

5-2 Expatriate who arrives on company visa are entitled to a first time arrival loan as follows:

1. Manager & Staff - SAR 1,000 shall be given 2. Technician & Labors - SAR 500 shall be given

The employee shall be given the above mentioned arrival loan at his first working day by administrator of the concerned division/project. This advance loan will be deducted from the employee’s salary in first month or in first two subsequent months.

6- Attendance:

6-1 In the working places which the time attendance recording machines are available Employee ID’s shall be registered at Hand swipe machines after issuing file number from Personnel Department to register their daily attendance at the start & end of working hours and at lunch breaks and when he is leaving his work premises during the working hours for any reason (In & out). The employee is responsible to monitor his attendance through ESS (Employee Self Service) and if there is any discrepancy (delay or absence) in time

of 50

attendance data may justified within 24 hours and his managers may approve for the same, as follows:

1. To change break time for staff to be one hours instead of half an hours without increasing daily working hours according to the timings specified by the concerned division management.

2. The staff members are allowed a total of 2 days (17 hours) per year to cover emergency delays, so no need for justification regarding delay in arriving to the work place in the morning or leaving early before the end of working hours.

3. Employees are responsible to report on their work place. In case any employee needs to leave during the working, for emergency case he must boo in advance through ESS/MSS the departure time and the actual return time. The employee manager will be asked afterwards to approve the request.

4. In case the employee consumes the quota of the 17 hours then any extra delays or absence shall be considered as unjustified absence.

5. If employees are engaged in meetings or other engagements outside the work place, this will be justified by the employee and approved by the his immediate manager.

6. Alfanar would like to promote a higher level of discipline amongst its employees as part of a professional and constructive work culture. As such, discipline will be one of the factors affecting the staff assessment and will be taken into consideration upon yearly bonus in line with the predefined guidelines which will be published.

6-2. All employees who attend the office premises during the weekends or after working hours, they should register their attendance at Reception, whether they required to swipe attendance or not.

of 50

7- Performance Evaluation

7-1 Employee performance evaluation system

The employee's performance will be evaluated by his immediate manager and the employees shall access their evaluation reports, also, the system of self-evaluation is available for the employees whereas the employee reviews his evaluation report, discusses it with his immediate supervisor.

7-2 Employee’s evaluation reports are conducted in the following cases:

Probation Evaluation : During the first three months and before the end of the probation period, the evaluation report will be send to ER Dept. with the employee's immediate manager recommendations in two week before the end of probation period.

Annual Evaluation: The Immediate manager is continuously monitoring the employee performance during the year and sending the final evaluation to the ER department on time.

7-3 The employees are grouped as per their position for the purpose of conducting their performance evaluation. The performance evaluations of each position (e.g. Managers, Engineers, Accountants, Admin Staff etc...) are conducted on one time defined by ER department.

7-4 The increment will be active from the month that follows the end of evaluation process.

7-5 Any salary increment or grade change should be only as a result of the evaluation processes that have a specific timetable. And not through employee request.

7-6 Employee relations department arranges a periodical meetings for discussing employees’ evaluation results for each division and for final approval in participation of the concerned Department Managers and Division Managers.

of 50

8- Family Status:

-The Non-Saudi employee who is drawing a basic salary of SR 4000 or above and from Grade (E1) is entitled for family status and he has the right to recruit his family provided that his children must not exceed 18 years either by recruitment visa or visit visa after he successfully completes the probation period (three months).

- Saudi Employees are entitled family status regardless the category of his position.

9- Salary Payment

All employees’ salaries shall be paid on the last day of the Gregorian month as the salaries transferred to employees personal bank accounts. As for the new employee, the salary is paid by cheque temporary until his Iqama is issued and his bank account is opened.

10- Allowances Policy

10-1 Housing Allowance Policy: Non-Saudi staff:

- Company provided comfortable housing for Labors and Technician.

- Company provided comfortable housing for staff who interested and if possible.

- A monthly housing allowance will be paid to the employees who live outside the company housing which will be equivalent of an annual value of the actual rent paid in accordance with the following:

10-1-1 A monthly housing allowance will be paid (maximum of three monthly basic salaries) in case of providing the actual rent contract.

10-1-2 Three monthly basic salaries maximum of SAR 42,000 (Twenty Four thousand Riyals) per year as a housing allowance is paid in case of not providing the actual rent contract.

10-1-3 Above mentioned system in items (10-1-1 and 10-1-2) is applied to the staffs who work in the following cities: Mekkah, Medina, Riyadh, Jeddah, Taif, Dammam, Khobar, Jubail, and Khamis Mushayt.

10-1-4 The employees who works outside the cities mentioned above in item (10-1-3) don't need to provide a house rent contract and a housing allowance is paid to them up to three months of basic salary per annum.

10-1-5 Housing allowance of three basic salaries annually will be paid for the employees working in DAR, AT&C and IT without providing housing rent contract.

10-1-6 Housing allowance of three basic salaries for staff members (non-Saudis) who live with their parents after submitting evidence documents.

10-1-7 In case of transferring of the employee from the place of work to another area (other city), the value of the transfer of furniture is paid by land after approved by the Administrative Manager.

Housing allowance loan

1- The staff are to be given housing allowance loan equivalent to six months in advance one time in case of they would like to leave the company housing after approval from Executive Manager, HRA as per the following cases:

of 50

1-1 In case the employee wants to leave the company housing, provided it’s within one month of the date of leaving.

1-2 If the employee is transferred to another branch outside the city he lives in within one month from the actual date of transfer.

2- The employees who are already living outside the company housing and the Housing Loan System does not apply on them and their salaries are less than SAR.10,000, their requests should be approved exceptionally for one time by the HRA Executive Manager and the maximum amount of the total loans should not exceed SAR. 60,000

3- No need to provide housing loan guarantor.

4- In case the employee basic salary is SAR 6000 and above, staying in one of city which rental contract is required then he will be paid a housing loan of 1.5 basic salary equivalent to six month housing rent and he will provide original contract or undertake to provide actual rent contract within one month from the date of loan payment.

5- In case the employee took the housing loan and does not live the company housing then he should return the loan to the company or employee rent a house with less amount of the loan then he should return the difference amount to the company within month from the date of receiving the loan.

Housing Bonus Conditions:

1- The non-Saudi staff are to be given housing improvement bonus equivalent to one Basic Salary Yearly as well as housing allowance (three months per year) on the following conditions:

1-1 Submit the lease of own house which is not shared with any other party to the HRA Specialist in the concerned division or to the payroll section in HO for scrutinizing. In case of the contract renewal, the copy of contract and original receipt from the same Rental Office should be provided to Payroll Section.

1-2 The actual rental value paid should not be less than 85% of the total four basic salaries (three basic salary + one month's salary bonus).

1-3 If the value of the actual rent paid is less than 85% of the total four basic salaries (three basic salary + one month's salary bonus), 115% of the actual rent will be reimbursed to the employee.

1-4 The employees who own homes and live in it, the housing allowance will be equivalent to three months of basic salary + one month's salary bonus per year with a maximum amount of SR 120000 (one hundred and twenty thousand) Saudi Riyals.

1-5 Employees are given a monthly housing allowance equivalent to three months of basic salary + one month's salary bonus per year with a maximum amount of SR 120000 (one hundred and twenty thousand) Saudi Riyals.

1-6 If the total annual housing allowance (three basic salaries) exceeds SR 120000 (one hundred and twenty thousand), a monthly housing allowance equivalent to three basic salaries per year will be paid to the employee.

1-7 In case of not submitting the updated Housing Rental Contract then the Housing Allowance will be changed to minimum as per the company policy.

of 50

1-8 Housing bonus will be paid for actual paid amount, therefore in case of Renting Furnished housing, this should be taken through authorized agency (which is a rental suits and units, which is a subsidiary of an establishment or company having a relevant license of hotel or commercial registration providing hotel services and building is fully furnished, which is being rented out on a daily basis – monthly – annually).

Employee will be entitled to housing allowance in addition to the bonus improve housing annually does not exceed the actual value of the lease and a maximum of (three basic salaries housing allowance + one salary housing bonus), Therefore, in case of an employee submit rental contract of furnished apartment, he should provide copy of license or commercial registration related to the furnished apartment. The above condition (1-2 and 1-3) is not applicable.

1-9 In case of transferring the employee from his place of work to another city, a compensation for period of the actual lease and has not benefited from will be paid, under the condition that the lease does not exceed (three basic salary + one month bonus) per year. In case of the rent exceeded this limit, compensation will be paid on the basis of (three basic salary + one month bonus) per year, In addition to paid the difference of tuition fees of their sons for the current semester (which previously paid by the employee) after providing original receipts.

2- Housing Allowance Policy for Saudi Employees:

2-1 The Saudi staffs are to be given housing allowance equivalent to three basic salaries months per year without bringing the original lease contract.

2-2 As a contribution from the company to improve the level of staff's housing and because of the high rents that happened recently, the employee is granted a reward equivalent to one basic salary as well as the housing allowance mentioned in item (1) above and that is under one condition that the total amount given doesn't exceed SR 120000 (one hundred and twenty thousand).

2-3 If the total annual housing allowance (three basic salaries) exceeds SR 120000 (one hundred and twenty thousand), a monthly housing allowance equivalent to three basic salaries per year will be paid to the employee.

2-4 Employees working at ATS Jubail and their Basic salary is less than SAR 6250 will take Two month Housing bonus not exceeding actual yearly housing SAR 25,000.

2-5 Housing allowance system will be applicable for Exceptional Tribes of KSA.

Note:

1. Housing rent contract includes (Actual housing rent + Agent fees + Water) only.

2. Housing Rental Contract should contain location of the house (City, District and street) and employee declares that the documents provided by him to company (housing contract or payment receipts voucher etc.,) are valid and correct, in case, it is proved that the above are forged then it is a sufficient reason to terminate the contract with company.

3. In case of the contract or receipt are not issued or not stamped from Rental Office then he should provide a letter confirming the activity of establishment and a copy of the owners ID and the ownership of the property signed by the owner of the property mentioning the

of 50

amount, period and name of renting person in case he is renting directly from the house owner.

4. Housing allowance will be paid for actual availed entitled annual leave yearly at end of the contract, according to the housing allowance paid on the last month of the contract.

10-2 Transportation Allowance Policy, Transportation Bonus and Company Cars:

A- Transportation Allowance

1- The company gives SR 400 monthly transportation allowance to the employee regardless he is residing in the company housing or not, for those who do not have company cars under their custody and using company transportation to their working place except for the Non-Saudi workers and technicians.

2- The company gives SR 500 monthly to the employees working in second industrial zone (factories) in Riyadh and don't have own cars and they are residing outside the company housing or whom residing inside company housing without getting benefited of the company transportation except for the workers and technicians.

3- The company gives SR 800 monthly to the employee who own insured cars and they use it for work when needed.

4- The company gives SR. 800 monthly transportation allowance to the Saudi employees their position is Guards.

5- Considering the specific situation of women with regards to transportation, The company gives monthly transportation allowance and transportation incentive for the female staff effective from 01/04/2015 as follow :

5-1 SR.1000 “One thousand Riyadh” (SR.800 monthly transportation allowance +SR.200 monthly transportation incentive for the female staff working in the alfanar office other than alfanar industrial city in Riyadh.

5-2 SR.2000 “Two thousand Riyadh” (SR.800 monthly transportation allowance +SR.1200 monthly transportation incentive for the female staff working in alfanar industrial city in Riyadh.

6 In case the employee rents a car, the monthly transportation allowance will be paid as per the Salary Scale of his category or the actual rent amount whichever is less.

7 In case of promote the technician to foreman with one year contract and 30 days’ vacation and stopped the overtime allowance, the company gives SR 400 monthly as transportation allowance.

B- Car loans and car rent ending in ownership

1. Taking into consideration the management’s desire to upgrade the transportation level of its employees, the Company will finance the purchase of new cars and bear the financing charges. However, the employee will deal directly with the bank for all loan administration aspects. For the above scheme, our employees will get improving transportation bonus added to the transportation allowances as per the following categories: -

of 50

Basic Salary

(SR)

Car's Value not less than

Car value/60 Months

Financing Cost

Fuel Charge

Total

Transportation Allowance

Bonus

2500 < 4000 28,800 480 120 200 800 0

4,000 < 5,000 48,000 800 188 200 800 388

5,000 < 6,000 60,000 1000 230 200 800 630

6,000 < 8,000 72,000 1200 273 200 800 873

8,000 < 10,000 96,000 1600 358 200 800 1,358

10,000 < 16,000 120,000 2000 443 250 800 1,893

16,000 < 20,000 150,000 2500 549 300 800 2,549

20,000 < 30,000 180,000 3000 656 400 800 3,256

30,000 and more 240,000 4000 868 400 800 4,468

The above-mentioned transportation allowance and improving transportation bonus are calculated as follows:

1-1 The Car Value (as per above categories) / 60 months + funding expenses + fuel expenses.

1-2 Since the car will be owned by the employee after five years, the sale value of the car after this period will serve as compensation to the employee for maintenance and insurance charges that he has shouldered during the said period. Thus the employee will own the car at the end of 5 years for free.

1-3 First category in the above table (from 2500 <4000) for newly hired employees in condition that car age is not exceeding 5 years including year of manufacturing and allow to accept model of car with one year back of the current year.

1-4 In case of employee purchase a new car which is less than his salary category within a limit of SAR 5000 or 5% whichever is more, will get entitlement to same salary category of transportation allowance and transportation bonus after approval of Executive Manager, HRA.

1-5 In case of employee purchase a new car with a value greater than his salary category and later his salary is increased to the category of car value and his car value is less than the new salary category within a limit of SAR 5000 or 5% whichever more, he shall be exceptionally given the new salary category transportation allowance and transportation bonus.

1-6 The new employee who owns a car before joining the work, will get a transportation allowance and transportation bonus as per transportation scheme category for remaining years of the car model regardless of the purchase date. The original value of the car will be decided by the fleet Manager by checking through the agency based upon the car type, model.

of 50

2. Some of employees would like continue using their cars which exceeds five years (from the manufacturing date) which covered above mentioned allowance system. The company would like to give them the opportunity/facility to continue using it. And shall be provided the under mentioned benefit system for transportation allowance after completing the period of first 5 years with the car value as follows with corresponds to value of car and above Transportation Allowance scheme:

#

Car Value after five years

manufacturing date should not

be less than

First year after completion of

first 5 year period

Second year after completion

of first 5 year period

Third year after completion of

first 5 year period

Fourth year after completion of 5 year period

Fifth year after

completion of 5 year period

1 240, 000 SAR 120,000 96,000 72,000 60,000 Used

2 180,000 SAR 96,000 72,000 60,000 Used Used

3 150,000 SAR 72,000 60,000 Used Used Used

4 120,000 SAR 60,000 Used Used Used Used

5 96,000 SAR 48,000 Used Used Used Used

3. If the employee continues to use the same car after completing above period, then he will get SAR 800 as Transportation Allowance.

4. In case the employee purchased a new car on his own through some external agencies by "rent ending in ownership" basis, he will get his transportation allowance in line with the car value (excluding rental commissions etc.) and as per his basic salary category.

5. If the employee purchased a car outside this system, then he will get his transportation allowance as per category based on the sale value of his car as determined by the Corporate Admin Services Dept.

6. The transportation allowance and improving transportation bonus based on the basic salary categories are considered as the maximum amount due to the employee as follows: -

6-1: In case the employee purchased a car with a value more than the category of his basic salary, then he will get his transportation allowance as applicable to his basic salary category.

6-2: In case the employee purchased a car with a value less than the category of his basic salary, then he will get his transportation allowance and improving transportation bonus as per the category of his car value.

6-3 : In case the employee purchased a car with higher price than his category scale and he got a salary increment in any year of the five years of purchasing date then the transportation allowance will be increased from the date of salary increment as per the new salary scale category as mentioned in the above table.

7. If the employee sold his car, then he has to inform the relevant admin services dept. which in turn will inform the HR Dept, (payroll section) and he has to pay all remaining installments fully to the bank. His transportation allowance, then, will be changed as per the system. In case of violation, the employee will face all the legal penalties.

of 50

8. In case of canceling the car insurance or selling the car, the employee should inform the concerned departments, otherwise the company has the right to take the necessary measures against him.

9. In case the employee was using the company car and he wanted to have his own car and he insured on it, the transportation allowance will be modified starting from the date of handing the company car and not from the date of purchasing or insuring on the his own car.

10. The transportation allowance will be paid for the yearly vacation as per the above mentioned category scale system, according to the Transportation allowance paid on the last month of the contract.

11. In case the employee who is leaving the company sell his car during the notice period due to issue final exit visa then the transportation allowance SAR 800 will be calculated in the end of service.

12. In case the employee who is leaving the company using company car till the notice period then the transportation allowance SAR 300 will be calculated in the end of service and for the labors and technicians SAR. 100.

13. Vehicles should be insured as comprehensive insurance by the employee or by the company.

14. Employees should provide renewal of comprehensive insurance documents for the car at time of purchasing the car and renewing comprehensive insurance yearly, otherwise it will be paid minimum transportation allowance SAR. 400 or SAR. 500 those employees working in 2nd industrial city.

15. The company will issue letter of guarantee (for bringing the employee and paying any penalty), those employee arrested by police or traffic police, in case of car accident in condition that the employee is under the sponsorship of the company and car is insured by the comprehensive policy. This will be applicable after the employee submits a written request to HRA department by confirming and undertaking that he will shoulder all the cost involved (whatever in its nature) in this guarantee and shall not ask for exit re-entry. The employee will not be given any clearance unless he obtains official documents from the government parties and case has been closed and not required by the government.

16. In case of sale of his own car/car renting with ownership, employee should provide documents to payroll department, date of sell of the car.

17. In case the car is total loss by the insurance company then transportation allowance will be minimum from the date of issue of cheque in addition the employee will granted 15 days to purchase another car.

C- Special instructions

1. The employee commits to provide copy of purchasing the actual car invoice to Payroll Department in HRA Dept which is not include additional features.

2. The employee bears all the car expenses as insurance, registration and transferring ownership … etc.

of 50

3. In case the used car, it must not exceed five years age (including year of manufacturing) in order to employee is entitled to transportation bonus according to market value as per company policy.

4. The car must be registered with the employee name or rental ending in ownership. 5. Transportation allowance will be applicable as per the above mention categories from

the date of car comprehensive insurance.

10-3. Air Tickets Entitlement for Non-Saudi Employees:

1. Employees are entitled an economy excursion ticket as follows:

1-1 Tickets will be issued (PTA) for first time arrival and also economy excursion tickets will be

entitled for him (from and to employee’s country’s capital city or as per the Employment

contract) after the renewal of the contract in the same year, if he travels.

1-2 The employee is entitled to an economy excursion round trip ticket after the renewal of his

contract and the Ticket Payment Order value will be determined with the value of the ticket

from Riyadh to the employee's country's capital city or pre-defined cities for his country

according to his employment contract at the due date in accordance with published rates

by the HRA, Travel Section regardless of vacation leave date. Contract will be fixed after the

renewal of first contract (Entitlement of air ticket shall be calculated proportionately).

1-3 If the employee is actually travelling on vacation, he shall be provided a round trip excursion

ticket from his place of work (not necessarily to be Riyadh) to his country’s capital city/

origin city as per Employment contract and as per the attached ticket value issued by the

travel section in HRA Dept.

1-4 The entitled ticket as per the Ticket Payment Order (upon entitlement) will be reimbursed

to the employee in the following cases:

1- After being entitled to another air ticket.

2- In case two tickets are entitled, the least value air ticket will be paid (i.e., at the end of the

fixing first fixed contract).

3- In case the employee travels by his own way (by Road).

4- In case employee travels on his own account and he did not use company ticket due to not

entitled, after completion of contract, he may reimburse the used ticked with actual in

condition that ticket value should not be more than the ticket fair published by Travel

Section.

1-5 If Travel Section could not provide the confirmed reservation then the employee may

arrange his reservation to the city mention in his Employment contract and purchase ticket

on his own way, then the price of the actual air ticket will be paid on condition that the

price should not exceed that which is published by the Travel Section.

1-6 In case of the availability of the reservation by the travel section and employee liked to use

his own reservation then the price of the actual air ticket will be paid on condition that the

price should not exceed that which is published by the Travel Section.

1-7 Labors and Technicians travels on six months exit re-entry deserves one way ticket, if

required his services company will pay the return ticket payment.

of 50

1-8 In case employee request within six months from the end of the contract, will not deduct

ticket value and it will be settled at the end of his contract with entitled ticket 100%.

2- Family Air tickets entitlement: The following conditions must be verified for tickets

entitlement for the family: 2-1. A staff member must be entitled for family status.

2-2. Company desire to renew the employee's contract.

2-3. Family should come to the KSA by Residence Visa or Visit Visa. 2-4. Air Ticket entitled for wife and 5 children their age should be less than 21 years. 2-5. First time arrival Air Tickets will be issued PTA (economy excursion tickets will be

issued for family from employee’s country’s capital city. And entitled round trip

tickets after the renewal of employee’s contract for his family as per item 10-3 (1-2)

above.

2-6. The child born in KSA is entitled for a round trip ticket from the employee’s capital city (Excursion Ticket but no selective airline) at the renewal of his father's contract, in case of his birth before the end of his father's contract.

2-7. The child born outside KSA is entitled for first time arrival ticket from employee’s

country’s capital city and a round trip ticket at the end of his father’s contract in case he was added before the end of the contract.

2-8. The family will be entitled Air Ticket from employee’s country’s capital city, in case

they arrived on visit visa due to non-possibility of getting residence visa. In case they returned back after getting family residence visa, they will be entitled first time air ticket from employee’s country’s capital city and also they will be entitled round trip ticket at the end of contact at same year after approval of executive manager.

2-9. In case the family is arrived KSA by road or by any other means then the SAPTCO ticket

fare will be reimbursed.

3- Air Tickets entitlements for terminated employees / Revocation of contract/ Non-renewal of

contract: 3-1 Employees who are travelling on exit visa will be entitled for one way tickets for self and

his family and the tickets will be issued from the Travel Section. In case he arrange the reservation by himself then the price of the actual air ticket will be paid on condition that the price should not exceed that which is published by the Travel Section. In case he entitled

of 50

and un-availed tickets from his previous contract for him and his family will be entitled after he finish three month of his new contract.

3-2 In case of approval of transfer of his sponsorship then he will not be entitled air ticket for him and his family for the current contract but he will be entitled un-availed tickets from his previous contract for him and his family will be entitled if he completes three months of his new contract and it will be paid with his final settlement.

4- Air Ticket Entitlement for Resigned employees: 4-1 In case employee desire to resign and travelling on final exit, then the ticket expenses will

borne by the employee for himself and his dependents. And in case he entitled and un-availed tickets from his previous contract for him and his family will be entitled after he finish three month of his new contract and it will be paid with his final settlement.

4-2 In case of approval of transfer of his sponsorship then he will not be entitled air ticket for him and his family for the current contract but he will be entitled un-availed tickets from his previous contract for him and his family will be entitled if he completes three months of his new contract and it will be paid with his final settlement.

5- Air Ticket Entitlement for Dismissed employees If the employee is dismissed then he is not entitled for final exit ticket for him and his family and also he is not entitled for yearly ticket.

10-4 Loan for partial entitled Air tickets:

If the employee is proceeding for vacation but not entitled for full air ticket and he desires to get an air ticket (Exclusively in case of partial due according to the fixed contract), he may apply an air ticket loan application form subject to the following conditions:

1. Employee get partial air ticket loan one time only during his contract period (one year or two years)

2. The Partial Air ticket loan to be approved by the Personnel Manager.

3. Air Ticket loan guarantor is not required.

10-5 Annual Leaves Entitlement:

The Company gives 21 or 30 days annual paid leaves depending on the contract of the employee. If Employees completes 5 years of service continuously in the company, his annual paid leave will become 30 days from 21 days, irrespective of the actual travel date and it will be paid at the end of contract.

10-6 Mobile Allowances, Mobile set expenses

Due to the work necessities, new policies of telecommunication allowances and mobile allowances for alfanar employees have been put according to the actual needs, which is published in Admin Memo No. 12-2013 dated 08/06/2013.

of 50

Clarification for the admin memo

1- This will applied to all employees’ specified grades.

2- Employees granted Mobile allowance who needs to use mobile for specific period as per specified allowance and it will be stopped when requirement is achieved.

3- Prepaid mobile card will not be paid for any reason.

4- Employees who are traveling on internal / external business trip and doesn’t get mobile allowance and used their mobile for business purpose, an actual amount of the used calls will be reimburse to the employee in corresponds to their specified category through payroll department.

5- Sales representative who are using their own mobile line will have two option: First, transfer mobile line to be under name of alfanar Co., Second, cancel the line and get a new line under company name.

6- Periodically Mobile Allowances will be discussed with Executive Managers through admin services manager in the concerned division to find out whether it’s required to adjust or cancel the current allowance system.

7- The specified amounts in the above table of mobile allowance is the maximum amount to this allowance , and to be adjust the current allowances as per the admin memo through payroll department as follows :

Employee who are getting mobile allowances less than the specified as per current work requirement, there is no need to increase the amount of mobile allowance unless there is need and that to be done through request of new mobile allowances as per agreed form.

Employee who are getting mobile allowances more than the specified, these allowances will change to match the specified mobile allowances.

8- Reference to the item No. 8 in the mobile allowance memo ,alfanar co. will not paid invoices permanently , and that only will be done in case employee use the mobile for the business purpose with an amount exceed the monthly mobile allowance, please review the admin memo.

9- The company gives fix monthly mobile allowance as per specified mobile allowance to the employees whom was paying for them their invoices in the past.

10- Factory and store guards the same will applied for them as per guards of admin offices regarding the monthly mobile allowance.

11- alfanar IT employees will be given mobile allowances according to nature of work and it corresponds to specified mobile allowance of Admin Sections Employees, Sales and Marketing employees.

of 50

12- Employees granted Mobile allowances according to actual nature of work not according to division, it is possible some departments due to their nature of work is different (Projects, Sales, Admin, and Production).

13- alfanar company make special agreement with Saudi Telecom Company to provide mobile lines with contributions symbolic which enables user to communicate free and unlimited within the group and provides call value for employees who use the mobile phone in business purpose with alfanar employees , in addition , employee can get more than one mobile line for communication also with the family

10-7 Petty cash Allowance

The petty cash allowance will be entitled for permanent petty cash holder, which is as follows:

Allowance Petty cash 200 Riyals From 5000 and less than 15000

300 Riyals From 15000 and less than 50000 500 Riyals From 50000 and more

of 50

11- Issuing New Iqama:

For issuing new iqama, employee has to send the following papers to Personnel Department

1- Employee Passport

2- Medical report after arrival immediately.

3- Number of 4 photographs with white background.

4- To give the employee a letter for moving until iqama is issued, and this letter is valid only in the city he is staying in, and not to travel to another city with that letter, and in case it is necessary to travel, then passport request form should be submitted to obtain the passport.

12- Employees’ passports custody:

1- To keep employee passport during his stay in Kingdom in personnel department, as any application in passport office like iqama new \ renewal, iqama lost \ damaged, or correction of information in computer. These applications will not be fulfilled by passport office, if passport is not submitted along with other documents.

2- To send passport to the concerned administrator for the purpose of renewal one month prior to its expiry, and administrator will deliver the passport to the employee on his own responsibility.

3- If employee wants to renew his passport earlier, then he shall submit passport request form to personnel manager for approval.

4- To take into consideration that any application in passport office will not be fulfilled if the passport has validity less than six months, these applications like iqama renewal, correct information in computer or exit reentry …etc. So, the concerned employee will be charged any penalty for the delay if he did not renew his passport on time.

5- After renewing the passport, it should be sent to make information transfer in passport office.

6- After issuing new passport, it should be sent along with all old passports to make information transfer in passport office and employee has to make sure that cancelled stamp is on the last old passport.

7- After making information transfer, personnel department will keep the new passport and they will send all old passports to the employee who shall keep it, and these old passports might be requested in the future in the airport or at the border or if he has an application in passport office. (So. All old passports must be kept by employee).

8- The passports should be renewed within one month from the date of receiving the passport except in the cases where the embassy required more time.

9- If employee wants his passport for any purpose, he shall submit an approved passport request form through the system. The employee shall return back the passport within the specific period.

of 50

10- Passport will be delivered to the employee by the concerned administrator when he is leaving on vacation in his last working day after receiving his clearance form signed by all sides and the employee should handover his original iqama and medical insurance card. The employee must deliver back his passport after returning from vacation, maximum the next day of his return and receive the original iqama and medical card from the administrators.

11- The employee must deliver back his passport to the concerned administrator after returning from Business trip, maximum the next day of his return.

12- In case of final exit, passports and tickets will be delivered to the concerned division administrator who will be responsible to facilitate the travelling.

13- Registration at Saudi Council:

13-1 Registration of Engineers at Saudi Engineering Council.

Scope: This applies to all Non-Saudi engineers who have profession as engineers in their iqama. If iqama profession is not an engineer, it should be changed first and after that the registration is done. Also, the engineers who arrived on a company visa as Engineer and the iqama is not issued yet, the profession in the visa should be as engineer.

Goal: Registration at Saudi Engineering Council for renewal / issuance of Iqama.

Condition to registration:

Bachelor of Engineering.

Duration of study at least four years, if it is less, it must be a Diploma in Engineering in addition to Bachelors and the duration of both courses should be four years minimum.

Procedure:

1- Fill the form of Engineering Registration, make sure to fill the full information of the first page and also the information of scientific qualifications in the second page and the rest of the date/information is optional.

2- Authorization and undertaking with name, date and signature. 3- Send the singed original form with photos, undertaking and certificates with

copy of passport & iqama to personnel department. a. Photos background must be white and their size should be 5*5 cm, which is

not used before and not modified by any photo processing program. 4- Scan colored clear copy of educational certificates both sides, mark sheet and

certificate of (CAV) and send it to personnel department VIA e-mail in PDF format. a. Mark sheet is required if the employee graduated from Non Arabic

universities. b. CAV is required for Filipino Nationals.

5- If any employee registered at council in previous sponsor then it should provide a copy of registration certificate, in case of non-availability the number of membership should be provided.

of 50

6- The concerned administrators should provide the documents by E-mail on the second day of the employee’s arrival and the documents should be scanned colored, clear and readable.

Remarks:

In case the iqama profession is an engineer or employees who are arrived on company visa as an engineer and the Education Certificates are not available then there is no possibility to register their certificate at Council of Engineers. Therefore, there is no possibility to renew/ issue of Iqama. Therefore, when any candidate get an engineer visa it’s a must to check he has bachelor degree of engineering with minimum years of education should be 4 years.

13-2 Registration of Accountant at Saudi Organization for Certified Pubic accountant.

As per regulation of Saudi Organization for Certified Public Accountants any employee with profession of an accountant with bachelor degree in accountant to register at Saudi Organization for Certified Public Accountants (SOCPA) in order to link their data electronic to complete the residence visa application and all other government activities (renew iqama , issuing iqama or profession change …etc). will be linked in the near future . Therefore all employees who have their profession in iqama (accountant , accountant manager , financial analyst, economic analyst..etc.) to keep their original education certificate attested with them inside KSA. Requirement of registration as follow:

1- Original bachelor degree in accountancy or any other equivalent certificate as may be deemed acceptable by the competent authority.

2- A copy of professional qualification (if any). 3- A clear copy of iqama 4- A clear copy of passport 5- Colored photograph 4*6 6- Fill out membership application online through the website of SOCPA which will be

provided later on.

Important Notice: Any employee his profession in iqama (accountant, accountant manager, financial analyst, economic analyst, etc.), and not hold the qualification degree, must submit a profession change request immediately.

of 50

14- Bank Account Opening:

The main purpose of opening a bank account to employees is to pay all their dues, such as salaries, wages, allowances and other benefits by transferring it directly to their bank accounts instead of paying through checks or cash, as follows:

1. Upon receiving the new iqama, the same employee will fill the bank form with appropriate signatures on it.

2. Attach a clear iqama copy with identical signature, as on the bank form.

3. The concerned administrator has to check the correctness of form and the signatures, and will send it to personnel department.

4. The personnel specialist will check the form , approve it and submit it to the bank.

5. After receiving the bank account and ATM Card, the personnel specialist will send the same to the concerned divisions to be distributed.

6. After receiving the bank ATM card the employee should visit the nearest bank branch to activate the ATM Card.

15- Car Loan from the Bank: -

To raise the level of transportation means of all the staff that are working in Saudi Arabia and who wish to obtain a loan through the banks to finance the purchasing of a car as follows:

1- The employee must fill the undertaking prepared by the Bank which is stating his approval to transfer of all salary and financial benefits of the employee to the financing bank.

2- In case of existing a previous car loan, a written pledge must be written by the employee to pay this previous loan within 7 days from the date of receiving the new loan from the bank

3- The employee must be on the company sponsorship as for the non-Saudis.

4- The employee must complete the probation period successfully (three months).

5- Employee commits to provide a copy of the purchasing bill to the Department of Human Resources.

6- Employee is committed to issue the car insurance either through the company or by other insurance company and provide a copy of the insurance policy to the human resources Dept.

7- Employee commits and signs undertaking that his salary and dues will be transferred to the concerned bank.

8- The employee bears all the expenses of the car insurance, registration and the ownership transfer,… etc.

9- In case the car is a secondhand (used), the car age should not exceed five years including the year of manufacturing.

10- The vehicle must be registered on behalf of the employee name only.

of 50

11- The monthly installments and installments numbers will be determined according to the credit agreement signed between the Bank and the employee.

12- In case of the termination of employee's contract with the company in any of the following methods: (resignation - termination – dismissal - non-renewal of contract); the loan value will be settled as per the agreement signed between the Bank and the employee without any responsibility on the company.

13- In case of termination of the employee's contract with the company, the bank will be informed directly by the payroll section, and the Bank will take the formal and necessary procedures as per the agreement signed between the Bank and the employee.

14- Employees should purchase the car as per the loan amount granted by the bank, if they did not commit then the company has the right to take the necessary action.

F- Car Insurance: -

Please consult/check Car Insurance Policy, which issued from Admin Department.

16- Personal Loan From Banks

1. The following conditions must be applied on the employee to be entitled for personal loan:

1-1 He must complete one year at least at service

1-2 His basic salary is SR 3000 and above excluding non-skilled employees category.

1-3 To be on company's sponsorship for non-saudis.

1-4 The employee’s salary should be transferred to the same bank he wants to take the loan of.

1-5 The company is dealing with SABB, SHB, Inma Bank and Samba.

2. The Payroll specialist will prepare the transfer letter as per the authorized form of the bank on the company formal letter without any responsibility on the company and sends the letter to the HR executive manager for approval.

3. HR executive manager signs the company form and the bank undertaking that states that all the salaries and dues of the employee will be transferred to his account in the financing bank.

4. In case of termination of the employee’s contract (resignation – termination – dismissal – contract non-renewal), the loan must be settled as per the agreement between the bank and employee without any responsibility on the company.

5. In case of employee contract termination; the payroll section informs the bank and the bank takes his formal procedures as per the agreement with the employee.

6. The employee commits to sign the undertaking that he is approving to transfer his monthly salary, end of service benefits, allowances and bonuses to the financing bank.

7. The employee can transfer his salary to other bank if he didn’t take a loan from the current one. In case of any loan, the employee should settle the full amount of loan first and bring

of 50

a clearance letter from the bank that the bank has no objection to transfer the salary to another bank and submit this clearance to the payroll section.

8. Employee can take a new loan/refinance from banks except those employees which guaranteed by company to Saudi British Bank, which they have to close the loan first and provide the no-objection certificate to transfer their salary from Saudi British Bank to any other bank, And regarding SHB employee can ask for refinance after paying 9 installments of his current loan and 6 installment for SABB bank.

9. Bank Representative will receive the documents for loan from Payroll Section, HRA at Head Office exclusively for the employees who are working in Riyadh, for outside Riyadh employees the documents will be delivered to them and they will submit to the bank personally.

17- Transferring Money outside KSA

1- The employee submits a written request stating his desire to transfer a specific amount of money through one of the authorized banks and to a specific authority outside the KSA and delivers the request to HRA specialist in his division.

2- After making sure of the money source by Personnel Manager, the request will be forwarded to Managing Director for approval.

18- Medical Insurance:

1. All the employees of alfanar Group are covered under Medical Insurance from the first day of their work and they are classified into three types:

Class VIP : Includes Division Manager, GMs, and Executive managers and category who are getting VIP benefits.

Class A : Includes employees whose basic salaries SR.3500 & above and their category should be staff.

Class B :Includes Non-staff employees and staff their basic salary less than SR. 3500.

2. VIP class limit is SR 500,000 non-deductible.

3. Class A limit is SR 400,000 with 20 % deductible (Max. SR100) per visit

4. Class B limits is SR 250,000 with 20 % deductible (Max. SR20 ) per visit

5. Glasses (frame & lenses) is covered maximum SR 1000 for VIP non-deductible.

6. Glasses frame & lenses is covered maximum SR 500 for (class A) with 20% deductible (Max. SR100).

7. Glasses frame & lenses is covered maximum SR 250 for (class B) with 20% deductible (Max. SR20).

8. No prior approval for out-patient up to SR 3000 for Class VIP & SR 1500 for Class A

& SR.1000 for Class B.

9. As for In-Patient; no deductibility on employees end.

of 50

10. The medical insurance includes for Saudi Employees and their wives (one wife) and their male children age should be less than 21 years and female children (not married, widows, divorced) which are not working and depend on the employee.

11. The medical insurance includes the Non-Saudi Employees (family status) and their wives (one wife) and their male children age should be less than 21 years and female children (not married, widows, divorced) which are not working and depend on the employee and they should be either on a residence visa/visit visa

12. If the salary of the employee is changed during the validity of the current Medical Insurance policy, his class will not be changed unless it is time to renew the policy, except for the VIP employees.

13. Medical treatment must be done at hospitals authorized by Medical Insurance Company as per the attached list, so the sick leaves from these hospitals can be accepted.

14. No treatment outside the medical network is accepted unless it is an emergency and according to a medical report and no reimbursement for the invoices of dental/optical treatment outside the network.

15. If it is decided to make surgery for the employee or one of his family member and he wishes to be held in his country, approval of medical insurance company must be taken by providing detailed medical report to the medical insurance supervisor who will follow up to get the approval, and the employee applies for a leave without pay since the sick leave covered within the KSA only.

16. In case the families are travelling outside Kingdom for maternity care and delivery purpose, Employees should take a prior approval from Insurance Company (before incurring maternity care and delivery treatment) by providing medical report with a copy of Medical Insurance Card to the Medical Insurance Officer in HRA for follow up and get the approval.

17. After the completion of treatment, the employee brings the medical bills stamped to be provided within 90 days from the date of treatment to sent to medical insurance Co.

18. Reimbursement cash claim is subject to network rating.

19. In case of conditions not covered by medical insurance, it's submitted to the company doctor and incase of his approval, it will be sent to the HR Executive manager for discussion and get discussion.

Adding staff and families to the medical insurance: (for non-saudi, the employee should be entitled for family status).

1. The newly arrived employee on the company visa is added as soon as he arrives to the Kingdom.

2. The locally recruited employee and his family is added after as soon as he joins the work.

3. The recruited family on a residence visa or visit visa is added as soon as they entered to the KSA

4. Saudi employee and his family are added as soon as he joins the work

of 50

The cancellation of staff member and families from the medical insurance:

1. The medical insurance for the Saudi employee and his family is cancelled in the case of termination of contract and the medical insurance cards are received for cancellation, except in the case of absence from work or resignation without delivering the cards.

2. The non-Saudi staff member and his family who are traveling on a final exit visa are cancelled on the next day of travelling.

3. The non- Saudi employee and his family who are approved to transfer their sponsorship are cancelled at the end of the policy or when the sponsorship is transferred before the end of the medical policy.

19- Social Insurance (GOSI)

1. Non-Saudi employees are registered after joining work immediately or after transferring his sponsorship (if joined locally) in the General Organization of Ssocial Insurance (GOSI) under occupational hazards coverage.

2. Saudi employee who is joined locally will be registered at (GOSI) to the company in GOSI under occupational hazards coverage and Pensions.

3. Social insurance contributions are paid monthly in Riyadh to all branches before the fifteenth of each month, according to the monthly changes.

4. Medical insurance card will not be used in the treatment of work injuries.

5. The head office of (GOSI) in Riyadh specifies authorized hospital for the treatment of work injuries to the staff of alfanar in different locations.

6. Work Injuries:

6-1 In case of injury, the injured employee inform his immediate manager and the personnel specialist or his concerned division administrator and the information of the injury should be entered in GOSI website same time of injury within maximum of 3 days, then the injured employee shall be transferred to the accredited hospital by GOSI in the area for treatment and follow the case until closing the case file at GOSI.

6-2 In case there were no accredited hospitals by GOSI in the area of work, the injured employee should be transferred as an emergency to the nearest hospital or clinic for treatment, and the original treatment invoices should be sent within three days of the date of injury to GOSI with a proper letter from the company for re-imbursement and Personnel Specialist or concerned administrator should follow the case until closing the case file at GOSI.

6-3 The employee informs his manager in case he received a sick leave before he takes the rest.

6-4 The sick leave salary should be paid to the employee, and the re-imbursement from GOSI should be followed up.

6-5 After receiving the check from (GOSI) it should be sent to the concerned accountant who will deposit it in the company bank account or the check should be sent to the injured employees as compensation in case a partial or total disability is resulted from the injury.

6-6 The personnel specialist or the concerned administrator will be responsible of following up the work injury cases with the social insurance and provide them with the supporting documents and required information.

of 50

20- Social Services:

1. The company hold social activities to promote friendship and brotherhood among the employees which positively affects the job environment.

2. Preparing annual journey for labors ( non-staff) to Makkah to do the Omrah ritual.

3. Take the initiative to congratulate the employees in their personal occasions and presenting some symbolic gifts to develop the belonging to the company.

4. Breakfast gathering at the 1st day after returning from Eid holidays or Haj holidays to the work.

5. Sending greeting cards on holidays and special occasions to the Companies and the clients who deal with the company.

6. The company grants 10000 SAR as a marriage gift for Saudi employees who have completed one year in the company and their salaries are less than 3750 SR according to their performance.

7. The company grant a marriage present to the newly married couple two nights at a hotel with 900 SAR maximum, it will paid based on an original invoices paid by employee, and reimbursed by the company. This present is granted after the marriage immediately and in the first week of the bride’s arrival to the kingdom (in case of visit and residence visa) and not to be delayed more than one month maximum in case of work requirement.

21- Leaves

Annual Leaves

1. The Company gives 21 or 30 days annual paid leaves depending on the contract of the employee. If Employees completes 5 years of service continuously in the company, his annual paid leave will become 30 days from 21 days.

2. All actual leaves will be automatically treated as unpaid leaves, and the annual entitled leaves days shall be paid at the end of the contract yearly.

3. The Immediate manager has the right to recommend the excess leave unless it does not contradict with the work. He can do so by mentioning the reason for this excess annual leave, which should not exceed 6 weeks. Any vacation more than 6 weeks it should be approved by the concerned Executive Manager and General Manager.

4. Employees shall submit their vacation/leave request through ESS it should be approved by concerned authorized managers and employees may submit Business trips request through ESS (Internal as well as external).

5. When an employee is proceeding for vacation, he shall be paid as per WPS system to his departure, the salary will be paid till the date of commencing of his leave.

6. Employee should sign the start vacation note and resumption of work after return from the vacation.

7. In case of employee request for a vacation during the first contract (one year or two year), he should deposit recruitment fees, residence visa amount. Furthermore, he should shoulder the round trip Air-Ticket and bear the exit re-entry fees

of 50

In case, if he travels un-entitled vacation after first contract (One year or two year) he should shoulder the round trip Air-Ticket and bear the exit re-entry fees.

Submitting leave applications and booking air ticket reservations:

Employees have to submit their vacation requests and approve it by concerned managers to take an air ticket reservation for himself and his family by the travel section, HRA three months before the travel date. Air ticket fare pre-determined by Travel Agency on a monthly basis and published on alfanar portal.

In case the employees request an air ticket reservation in a period less than the above mentioned period and the fare is more than the pre-determined entitled fare then the difference cost to be borne by the employees.

21-1 Paid leaves:

In addition to the annual paid leave, the employee is entitled for the following paid leaves on condition that he is not on a vacation for such leaves:

1. Marriage: three days paid leave maximum and for one time during his service in the Company after the approval of his Immediate Manager and after submitting his leave application.

2. When a new child is born in KSA: one day.

3. Death of wife or one of descends or one of descendants of the employee (Children, parents, uncle and aunt, grand father and grand mother): three days paid leave shall be granted to the employee. The Management has the right to ask for the relevant documents that assure the cases.

4. Death of husband: 15 days leave shall be granted in case of death of her husband.

5. National Day: One day

6. Holiday Leave: Eid Al Fitr holidays are 4 days starting from the next day of 29th Ramadan as per Um-AlQura Calendar. Eid Al Adha holidays are days starting from Arafa day. The employee is paid full salary for holiday vacations if it comes during his annual leave on condition that this leave does not exceeds 60 days and this happens one time only per year.

7. Weekends (Friday and Saturday), if it falls during/within Eid holidays: Weekends will be entitled, if the employees took a vacation not exceeding one week only before start of the Eid holidays and resumed the duty on first day after eid.

8. Haj Vacation: The Employee is granted 10 days including the Eid Al Adha holidays for the purpose of Haj for one time only during his service period with the company. The Employee has to complete minimum two years continuous services and brings Haj Declaration to be entitled for this vacation and Hajj vacation start from 07th Dhualhijja, the management has the right to specify the number of employees that shall be granted this vacation according to work requirements.

of 50

9. Examination Leave: The Company allows the employees who are completing their education until the Bachelor Degree (does not include the higher studies) inside KSA a full paid leave for the duration of the Exam as follows:

1. Candidate should inform in written when he is hired about his study and take a prior approval of the management.

2. If the employee decides to pursue his study after joining he should submit a request for this.

3. The employee should submit the acceptance from the University.

4. The employee should submit the schedule of Exams.

5. The employee should submit the vacation 15 days before the exam and it should be approved by concerned managers.

6. The employee is entitled paid vacation for unrepeated study year and unrepeated exams and the vacation would be as per the actual date of exam.

7. The employee is entitled for unpaid vacation for repeated study year and repeated exams after the submitting the necessary documents.

8. If it has been proved that the employee did not attend the exam, then the exam vacation will be deducted with penalty.

10. Sick Leave:

An employee whose sickness during work is proved (not because of work injury) by an authorized medical providers of the Company is entitled for a full paid sick leave for the first 30 days, 75 % of his wages for the following 60 days, and without wages for the following 30 days during the same year and the sick leave is only covered inside KSA. General Organization for Social Insurance rules are applied for work injuries.

The employee must Informed his sick leave to his immediate manager at the same day and hand over his work. In case of emergency and the employee could not come to the company he should inform to his immediate manager about his sick leave.

Sick leaves should be approved through concerned authorized Personnel Specialist in concerned division and entered by the concerned administrators in the system.

Sick leaves not covered accompanied to patient (family members).

21-2 Emergency unpaid leaves:

15 days-unpaid emergency leave per year can be approved if it does not affect the work. The applicant (employee) has to explain in writing the reason, which should be convincing and should be approved by his immediate manager and department manager.

of 50

21-3 Special Instruction about delaying in returning from vacation:

- Concerned Administrator / Immediate Manager should be informed in case of any emergency that may prevent the employee to return on time.

- the employee should submit the relevant documents / certificates for the cause of his delay upon his arrival. In case, employee did not submit Justified relevant document or he submitted an un-justified documents ,he will be consider as delay and following action should be taken by the management:

1. In case of delay after the annual vacation:

From 1 to 5 absent days: A warning letter shall be issued to the employee for the first time in order not to repeat such action in the future.

From 6 to 10 absent days: Besides the issuance of tough blaming letter, the employee work evaluation will be affected, and no additional leave shall be given during the next vacation.

From 11 to 15 absent days: A tough blaming letter shall be issued and he shall be suspended from the work for two days and no extra leave shall be given in the future.

15 and over absent days: The employee will not resume his duty unless company review his work performance and make a decision either to terminate him or suspend him for five unpaid days and no additional leave shall be given during the next vacation.

2. Delays in returning from vacation which is more than the annual vacation:

From 1 to 7 Absent days: A warning letter shall be issued to the employee for the first time, and for the second time, he shall be suspended for two days from his duties and no extra vacation days shall be given in the future.

From 8 to 11 absent days: A warning letter shall be issued to the employee and he shall be suspended for three days from his duties. No additional leave shall be given for the next vacation.

11 and over Absent days: The employee will not resume his duty unless company review his work performance and make a decision either to terminate him or suspend him for five unpaid days and no additional leave shall be given during the next vacation.

The late employee at any of the above cases will not resume his work until the Personnel Dept. Manager review his case.

21-4 Employee didn't return from vacation:

In case he sends his resignation 11 days prior to the end of vacation; the resignation will be accepted as per the followed regulations.

In case he didn't send the resignation; he will be dismissed after 11 days of the end of vacation.

N.B. the company has the right to ask for the supporting documents of the mentioned vacations.

of 50

22. Exit Re-entry Visa

1- Exit re-entry visa is to be given in the following cases:

a. In case of travelling on vacation outside KSA

b. In case of travelling on business trip outside KSA

c. Passport of the employee and the family members must be valid for six month at least.

2- All employees should register at Absher (Electronic Website Ministry of Interior) and make sure all dependents are included and their data are correct and matched with original documents (like, Name, Passport Number, DOB, expiry date of Passport etc.,) also make sure of registering/availability of finger print for family members, before issuing exit re-entry or renewing iqama.

3- In case the family of the employee will travel on an exit re-entry visa; he may issue exit re-entry visa through Absher website (Electronic Website Ministry of Interior).

4- The passport validity must be more than the validity of the required visa with three months, i.e. if the required visa is six months, passport validity must be more than nine months. In case the validity is not enough, passports should be renewed before applying for exit re-entry.

5- The iqama validity should be three months more than the validity of exit re-entry visa, for example, if the required visa is for six months; the iqama validity must be nine months, and incase that the time is not enough to renew the iqama, otherwise the Visa will be issued according to the validity of Iqama.

6- As for the employee who travel to gulf countries on business trip or vacation and don't need entry visa to these countries, the iqama period must be valid for six months at least and the passport as well and they should keep the original iqama with them. In case the validity is less than 6 months then employees should initiate to send their original iqama/ family iqama with required documents to concerned administrators to renew the iqama and then requesting exit- re-entry visa.

7- The applications for exit re-entry of employee for vacation or business purpose should be submitted at least one month before the date of travel.

8- Employees who are traveling to the Gulf Countries on business trips or vacations should check whether their professions on the passport allow them to enter without Visa. Or check with the concerned embassies to check the eligibility and get a visa.

9- In case the employee did not travel on business trip or vacation, they are kindly required to return their unused air-tickets to Travels Section HRA for reimbursement.

10- The employee is entitled exit re-entry visa for him and his family maximum (wife + 5 children) for one time per end of contract in case they actually travelled.

11- Travel during eid holidays (Eid Al Fitr, Eid Al Adhah) Employees are would like to travel during eid holidays, submit their approved vacation request before one month of date of Eid holidays. Since, the passport office will be crowded during such days.

12- Validity of exit re-entry: is allowed to stay in the Kingdom maximum of 90 days starting from date of issue of visa or until the date ( Departure before ) which mentioned in the visa whichever comes first (this period will not be counted exit re-entry duration).

of 50

In case of employee or family member did not travel he should cancel exit re-entry visa before two weeks from expiry date. If he did not cancel the exit re-entry visa, then the penalty of SAR 1000 will be shoulder by the employee/administrator responsible of not cancelling the visa.

13- No possibility to enter in the kingdom if iqama is expired or exit re-entry expire (whichever is prior).

14- Exit re-entry is valid to the passport holder including all dependents in the same passport.

15- In case of final exit, passport and tickets will deliver to concerned administrator in the division to send him to his country.

23- Multiple Exit-Re-Entry Visa:

Multiple exit-re-entry visa will be issued only in case of three business trips minimum during 6 months and it will not be issued for vacations or any other reason.

24- Family Recruitment Visa and the Documents Required:

The employee who desires to call/recruit for his family (wife and children their age less than 18 years) to reside with him and his contractual status allows for this, he has to submit a request through and attached the following:

1. Copy of appointment to issue family residence visa through Absher Website.

2. Family passport copy and copy of the employee’s entry visa.

3. Marriage Certificate attested by the Ministry of Foreign Affairs and Saudi Embassy in his own country and translated into Arabic.

4. Children birth certificates (if any) attested by the Ministry of Foreign Affairs and Saudi Embassy in his own country and translated in Arabic

5. His education certificates (Bachelor degree) attested by the ministry of foreign affairs and Saudi Embassy in his own country and it should be translated into Arabic.

6. The profession in the employee’s iqama should allow to recruit his family as per the recruitment system of the Kingdom.

7. The profession in the passport to be identical with the educational certificate.

8. In case of the profession isn't entitled for family recruitment then the profession has to be changed.

9. Iqama profession will be changed according to the employee’s education certificates. (To be review by changing professions section)

10. Attached the receipt of recruitment fees SAR.2000.

11. Issuing the visa is subject to the recruitment office regulations.

12. The Company provides the employee with all necessary documents to apply for a family visa, however, governmental approvals are still required / In case the company could not issue the residence visa for his family, then it will provide him with the necessary documents to issue the visa by him.

13. If the profession in the iqama of employee who deserve the family status is not congruent with the actual profession then the company will change the iqama

of 50

profession on condition that the education certificate is attested by the ministry of foreign affairs and the Saudi embassy in his own country.

14. The company will pay SR 2,000 (recruitment fees) to recruit the family or (spouse) sponsorship transfer for one time only during his service and the company does not pay the recruitment fees in case the employee recruits his family by himself or by agent.

15. The company deducts SR2000 in case the family does not come to KSA within 9 months from the date of issue of recruitment visa.

25- Visit Visa:

The employee who deserves family status and wants to bring his wife and children or (Father, Mother, Mother-in-Law, Father-in-Law) on visit visa, he has to submit request through portal and attached following documents:

1- Employee attached copy of application which filled by him at Website of Ministry of External Affairs.

2- Personnel Specialist will print family visit visa request, will get approval from Executive manager HRA and will forward to attestation and will notify the employee.

3- Employee will follow up the approval of issuing of visa through website.

4- The employee extends the visits visa for his family before it ends to avoid any penalty, the duration of the visit visa will be calculated as from the entry date to KSA as per the rules and regulations of the Kingdom.

5- In case the employee’s family didn’t travel before the end of the visit visa, 10000 SR will be charged on the employee, then he will be arrested in the immigration office and sent to his country on a final exit visa.

26 Wife/ children addition in iqama :

When family is coming for the first time to Kingdom, their passports with 3 photos should be sent to personnel department.

1- In case the family consists of wife only, her passport and 3 photographs in addition to a medical report which is done inside the Kingdom after arrival are required.

2- In case the family consists of wife and children added to the same passport, passport with 3 group photographs and medical reports for them all are required.

3- If family consists of wife and children in separate passports, their passports with 3 group photographs for each member of the family are required in addition to medical reports for them all.

4- Vaccination card of the new born baby from inside the Kingdom or from the employee’s country.

5- In case the baby was born in KSA, the original Saudi certificate should be sent.

27- Dependent (Baby born inside Kingdom) addition in Iqama:

1- The baby is added on the wife's passport or a separate passport is issued for him from the embassy after issuing a birth certificate from the civil affairs.

of 50

2- Both the passports of the wife and the baby with the original birth certificate and 3 photographs of the baby are sent to personnel department.

28- Dependent (Baby born outside Kingdom) addition in Iqama :

1- Wife’s passport and baby’s passport are sent with 3 photographs for baby.

2- Check that the entry visa is stamped by the entry border.

3- Personnel department shall pay S.R.2000 baby addition fees and it will be charged on the employee’s concerned division.

4- The documents should be sent to personnel department immediately after entering the kingdom in order to avoid paying 1000 SR penalty which is imposed by the passport office in case the dependent was added after three month of the arrival date.

5- Vaccination card of the new born baby from inside the Kingdom or from the employee’s country.

29- Commercial Visa

1- Apply Commercial visa request submit through Portal attached copy of passport and getting necessary electronic approval.

2- Personnel Specialist will enter the information at website of ministry of foreign affairs and get approval of Executive Manager, HRA for attestation.

3- Personnel Specialist will send a copy of attested request to the concerned units in the divisions to the requestor.

4- The requestor will print copy of the attested request and visit saudi embassy in the concerned country to get the visa on passport.

5- The validity of visa and Duration of stay:

5-1 The validity of visa (starts from the date of issuance of the visa, it’s the duration during which the visitor can enter the Kingdom).

5-2 The validity period of stay (length of residence specified with the visa and calculated from the date of entry to the KSA and it's the time allowed to the visitor to stay in the KSA.

5-3 Visa types:

- Single: allows the visitor to enter the kingdom for one time only and it could be extended inside the kingdom. In case the visitor needs to stay more than the period specified in the visa, it must be extended 6 days prior to its expiry date.

- Multiple: allows the visitor to do many travels during the validity period of the visa and it can be extended one time only.in case the visitor needs to stay more than the specified period, there will be two options:

1. The visitor can go out the kingdom ( more than once) before the end of the period allowed for him to stay in the kingdom, this period will be renewed on each time he enters the kingdom until the visa is expired. In the last entry before the visa ends, the visa can be extended for one time only.

of 50

2. In case the visitor needs to stay more than the period specified in the visa without travelling outside the kingdom, then the visa is extended for one time only and the extension to be done before six days from the visa expiry date, the visitor should travel before the end of the extension. He can come back to kingdom if the visa is still valid but without any more extension.

30- Iqama Renewal

1- The iqamas are to be renewed 90 days prior to its expiry as per labor law.

2- All the family members should be inside Kingdom one month at least before the expiry of iqama.

3- The age of male children should not exceed 21 years or a certificate should be provided from the university that they are studying inside KSA.

4- In case the iqama expires within 2 months and it was not requested by the concerned admin, the documents of iqama renewal and families iqamas should be sent to personnel department for renewal.

The required documents as follows:

1. Original Iqama

2. Family original iqamas

3. Three personal photos for each member

4. The family original passports

5. In case the employee has a child more than 18 years old, he should bring a valid certificate which proves that he is studying inside KSA.

6. Medical report for the following nationalities (Sudanese, Nepalese, Aritiri, Yemeni)

7. Medical report for the professions (Cook and Farmer).

8. In case the profession of the employee in iqama is simple like (worker, carpenter, mason and electrician, etc., ) and he has a family , then the committee form should be filled and sent with all old passports of the employee.

31- Passport Renewal:

1. Personnel Specialist will send a list of employees whose passports will expire to the concerned administrator in the divisions in order to communicate to concerned employees for renewal.

2. The employees submit a Passport Release Request through Portal ESS for the purpose of renewal.

3. After renewal of passport, the employee submits the old and new passports to the concerned personnel specialist or administrator to send to Personnel Department, Head office to transfer the information or update the information at Passport Office.

of 50

32- Transfer of Information from Old passport to New passport:

When the employee gets a new passport, he should submit it along with old passport to concerned personnel specialist or division administrator to be send to the personnel department to transfer the information (from old to new passport) in the passport office. After the transfer of information, the old passport should be returned to employee and new passport information should be updated in the ERP system.

33- Data correction in Passport Office Dept

In case of any mistake in the iqama information or in the passport office data bank following documents should be attached for correction:

1. Original Iqama

2. Original all Passports

3. Two personal photos

34- Changing profession in Iqama:

In case the Employee wants to change his profession in the iqama to recruit his family, he should fill the form and attached the following documents:

1. Original certificates attested by foreign ministry or Education Consulate and Saudi Embassy in graduation country along with Arabic translation.

2. Original Iqama and three photos to be sent to personnel department.

3. Changing profession is according to Labor office rules and regulations (as some jobs might be saudized)

Notes:

1- Requested profession should match the qualifications certificate.

2- The profession in passport and iqama are not necessary to be the same.

Changing profession in passport:

In case the employee needs to change the profession in his passport, he should consult the embassy of his country.

35- Lost iqama:

In case the iqama is lost, the employee should inform immediately the concerned administrator and the iqama lost form should be filled with the fingerprint and signature of the employee on it. He should mention in the forms the reasons, the place and the accurate date of iqama being lost. And following documents should be attached.

1- Six personal photographs.

2- Copy of the lost iqama

3- The employee should pay SAR 1000 as penalty and attached the payment receipt.

4- All the original family passports along with personal photo for each family member in case the family iqamas are lost.

of 50

Damaged iqama:

In case the iqama is damaged, the employee should inform the concerned administrator. Special form should be filled with fingerprint and signature of the employee on it. He should mention in the form the reasons, the place and exact date of iqama being damaged.

1) 4 personal photographs.

2) Original damaged along with a copy of it before damage.

3) In case the family iqamas are damaged, all family passports with personal photo for each member should be sent.

4) The employee should pay SAR 1000 as penalty and attached the payment receipt.

36- Lost/Damaged Passport:

1. A special form is filled by the employee with his finger print and signature on it and is sent to personnel department.

2. The personnel specialist prepares the necessary documents and hands them over to the employee, who will consult his country embassy to issue a new passport.

And the documents are:

a. Print from the passport office

b. Passport office form

c. Certificate to issue a new passport

d. Letter from the company as he lost the passport.

e. The employee will bring the new passport along with attested cheque to be issued in the name of SAMA (Saudi Arabian Monetary Agency) and give it to the personnel specialist who will do the information transfer.

- Family Iqama Cancel from Passport office:

In case the employee wants to cancel any family member in the passport office, he should submit a written request about that and the original iqama should be sent for deletion; in case the family was outside the kingdom the deletion would be performed after one month of the expiry date of exit re-entry visa and in case the family is inside the kingdom a final exit will be issued.

37- Penalties & Sanctions applied by governmental authorities

1. In case of not adding the new born baby (born inside KSA) in the iqama within one year from the date of birth, a penalty of 1000 SR should be paid by the employee to the passport office department.

2. In case the new born baby (outside KSA) is not added in the iqama within 3 months of the date of entering the Kingdom, a 500 SR should be paid by the employee to the passport office.

of 50

3- In case of not canceling the exit re-entry visa before its expiry date (as the employee or any family member didn't travel), a penalty of 1000 SR (for each visa) should be paid by the employee to the passport office department.

4- In case of not extending the family visit visa before its expiry date, a penalty of 10000 SR should be paid and the employee will be imprisoned for a month and then will be deported to his country.

5- In case of being late in adding the recruited family for more than 3 months, SR 500 penalty will be paid by the employee for every passport to the passport office department.

6- In case of losing or damaging the Iqama, SR 500 will be paid by the employee to the passports office for the first time and SR 1000 for the second time.

7- The employee Performed Hajj without official permit then he will suspended and will be travel on final exit.

of 50

38- Transferring Sponsorship to the company:

1. Recruitment Department makes sure the correctness of documents which able to transfer the sponsorship through labor office.

2. The Candidate will not start the work unless complete the process of sponsorship or after approval of labor office.

3. Release Letter validity should be for one month and the date of attestation by Chamber of Commerce should not exceed one week, taking into consideration that sponsorship transfer will not be done, if release letter is expired.

4. Personnel department will keep original passport, iqama and release letter and iqama will be returned back to the employee after transferring his sponsorship.

5. Submit all old passports to concerned personnel specialist. And after sponsorship transferred the old passport will be handover to the concerned employees.

6. The passport should be valid and visa information should be available in the current passport.

7. The iqama should be valid.

8. The male children ages which are added in the iqama should not exceed 21 years.

9. Four personal photographs with white background.

10. A letter will be given to the employee to be able to move inside the city, and he will not be able to travel outside the city by this letter, and if it was necessary to travel, then the iqama will be delivered to him.

11. If profession is dependent, then it will be changed during sponsorship transfer to any other profession. In this case employee shall submit certificates attested by Saudi consulate in their country in order to change the profession according to the certificates. Otherwise, if no certificate is available, then profession will be changed to labor.

12. In case the iqama profession is “Engineer” then the education certificate should be provided with the attestation of Saudi consulate in their country and he should be registered at Saudi Engineering Council.

13. Not to recruit those with housemaid professions like private driver, farmer or housemaid labor …etc, as these professions can’t be changed and transferred to the co.

14. Not to recruit those whose their sponsor is a (prince), as it is not possible to transfer them to company.

15. If employee submits a forged release letter, then he will be terminated immediately.

16. In case the forgery is traced by the passport office, they might request the employee in person for investigation.

of 50

39- Transfer of Employees among the companies:

1. Transferring employees within the division:

Employees are transferred within the same division as per an approved transfer note by the departments’ managers and the division manager.

2. Transferring employees between divisions:

Employees are transferred between divisions as per a transfer order that is approved by both divisions’ managers and the managing director and this transfer order is coordinated between recruitment and systems departments. The employee should not start his new job unless all the transfer documents are approved by the concerned parties.

40- Termination of contract between employee and employer.

1. In case the employee completes successfully the probation period (3 months) the company should avoid to terminate him before the end of his contract except for compelling reasons and must, in this case, present the issue to HR dep.

2. In case the manager wants to terminate the services of the employee, he must do the following:

2-1 Termination form should be filled and sent it to the ER Department, which will respond within three working days maximum.

2-2 The letter of termination is delivered to the employee by his immediate manager personally.

3 In case the employee is terminated and then re-appointed in one of alfanar companies with the same salary or more, and the period of unemployment did not exceed 6 months the employee keeps the same file number to benefit from the continuous service with the same file number as follows:

3-1 The end-of-service benefits are not paid and the contract is considered as continuous. 3-2 The period of unemployment is considered as a vacation and it’s not included in the end-of-

service benefits and annual leaves. 3-3 The employee is assigned with the same salary and in case the salary or the position was

higher, this should be approved by concerned division manager.

4 In case the employee is terminated and re-appointed in one of alfanar companies with lower salary, a new contract should be signed. His end-of-service benefits should be settled and paid (except sales and commissioned staff) after he completes three months in his new Job.

5 In case the contract of the employee who takes monthly sales incentives is terminated and they were re-hired then the End of Service benefits should not settled. If they travel on final exit or sponsorship transfer then the ESB will be prepared.

6 When the employee is terminated, his immediate manager has the right to exempt him from attending to work.

7 In case the employee resigns during the first contract, all the recruiting expenses, visa fees and governmental expenses, air tickets mentioned in item No. 8 of the Employment contract will be deducted from him.

8 In case of issuing final exit visa to the employee, automatically a final exit visa will be issued to the dependents in case they are available inside KSA and dependents iqama will be cancelled in case they are available outside KSA.

of 50

41-Approval of Sponsorship transfer and issuing no objection letter:

1- In case of termination, or revocation of contract, a non-objection letter is given to the employee as per the following conditions:

a. The employee didn’t cause any problem to the company because of his revocation of contract.

b. The employee should coordinate with his department to hand over his work in a proper way and should notify about his revocation of contract before enough time.

2- HR department is responsible for determining the status of the terminated/resigned employee, he will either travel on a final exit or transfer his sponsorship, the following cases are not eligible for a non-objection letter :

2-1 Labors and Technician who are recruited on the company visa.

2-2 Recent graduate employee who leaves the company during the first three years of his joining date. (the recent graduate employee is the one who has been graduated for one year and he never worked before and his age is 26 years old or less).

2-3 The Managers, engineers and employees who works in the following companies:

- Alfanar IT

- Dar Engineering, AT&C, ATS,

- Staff of tenders department of the construction division

- Tender, Estimation and engineering in alfanar Precast.

42- Experience certificates

An experience certificate is granted to all employees at the end of their services.

43- Procedure of transferring Sponsorship From the company:

1- In case of resignation, contract revocation or contract non-renewal by the employee and he wants to transfer his sponsor to another company he should must tender three months at least as a notice period starting from the date of resignation approval , contract revocation or contract non-renewal.

2- In case of employee got an approval to transfer his sponsorship during a certain period( one month on resignation and two month on termination) and he couldn’t do that he should refer back to HR department to get a final exit visa to his country or other measures will be taken against him.

3- The terminated employee who has been given approval to transfer his sponsorship should sign the undertaking that he is committed to transfer his sponsorship within the period mentioned in (item no. 2) and bring a demand letter for one time only.

4- The employee should follow and complete the clearance before last working day or before leaving the company.

5- A copy of the demand letter should be sent to the concerned division manager just to inform him.

6- Projects workers which were terminated due to the completion of the project and who are needed on other projects later they will issued exit re-entry visa for six months and

of 50

they have to sign an undertaking to come to KSA only when the company needs them in other projects.

7- In case of emergency the terminated employee may be given exit re-entry for a short period not exceeding one month, by the approval of Executive Manager, HRA for one time only.

8- Passport and release letter should not be handed over to the terminated employee unless he brings an authorized letter from the company that he wants to transfer his sponsorship to, and this letter must be certified by Chamber of Commerce.

9- The personnel specialist should follow up the transferring by sending reminding letters to the employee and the company that requested the employee transferring.

10- When the sponsorship is transferred, employees are going to send iqama copy to personnel specialist, will forwarded to concerned person in order to start final settlement and cancel employee data from labor office, GOSI and Medical Insurance in addition to close his file.

44- End of Service

1. End of services entitlements are paid for the terminated or resigned employee ,who is traveling on a final exit visa, after the visa is issued and based on an approved clearance form by the concerned departments.

2. The end-of-service entitlements are prepared and approved for the employee who got an approval to transfer his sponsorship and recorded in their personal accounts and paid to them after transferring the sponsorship within two weeks maximum from the date of sending iqama copy to personnel specialist and according approved clearance by the concerned departments.

3. The employee should sign the final settlement and the clearance form/documents before he receives his dues from the Accounts department (For Filipino national, the clearance from the Philippines embassy is required.)

4. End of services benefits are calculated on the basis of last salary as follows:

4-1 Half of lumpsum salary (Basic salary + Housing allowance + Transportation allowance) for the first five years in the company.

4-2 One lumpsum salary(Basic salary + Housing allowance + Transportation allowance) for every year after the first five years.

4-3 The last year will be calculated until the last working day and the differences in days and months will be calculated proportionately.

5. After calculating the end-of-service benefits; the following conditions should be followed :

5-1 In case of contract termination, non-renewal or revocation the employee deserves full end of services dues, taking the following cases into account:

a. In case of termination during the probation period, the employee doesn’t deserve (EOS) benefits.

of 50

b. In case of dismissal, the employee doesn’t deserve the (EOS) benefits according to Article No. 80 of the Labor Law.

5-2 In case of resignation; the EOS benefits will be calculated as follows: a. the Employee does not deserve the benefits if his services in the company was less than two years.

c. The Employee deserves 1/3 of the benefits if his service was from two to five years (the two years are included)

d. The Employee deserves 2/3 of the benefits if of his services was from five to ten years (the five years are included)

e. The Employee deserves full benefits if his service was ten years or more.

Lump sum salary shall include the following: a. Basic salary, housing allowance (three basic salaries per year), the actual transportation allowance up to of 800 Riyals maximum, the fixed additional allowance (for drivers, guards, cooks, cleaners).

The housing bonus and transportation bonus are not included in calculation.

b. In case the employee lives in the company housing, the housing allowance is calculated as 1.5 basic salary per year for employees whom salaries are SR 2000 or less. And 3 basic salary per year for employees whom salaries are more than SR 2000.

c. In case the employee has a company car; the transportation allowance is 300 Riyals. And in case that the employee uses the company transportation to commute to and from work; the transportation allowance is calculated as 100 Riyals.

6. If the employee is transferred to another country, his final settlement of the previous service period shall be prepared according to item no. 5 above and ESB amount will be saved in his personal account in the finance department.

His previous services period shall be in continuation for the final settlement calculation in the new country to benefit for the one month. (For example, if an employee worked 5 years in KSA and transferred to UAE, when he leaves the services, his first 3 years services in UAE shall not be calculated as half salary as per UAE labor law and shall be calculated as full salary taking into consideration of previous services of KSA.

of 50

45- School expenses for Manager with grade C0 working in Saudi Arabia/UAE :

1. Annual school expenses of SR 15,000 maximum per the child and SR 45,000 maximum for all the children starting from academic year 2014/2015 on the following conditions:

- Payment shall be done according to original stamped invoice, which include annual fees study, books, transportation and uniform.

- The study period covered by this scheme is for the basic school education (starting from elementary till secondary stage only) should be inside KSA.

- The study must be regular and covers one full study year

2. In case the amount was disbursed for a whole year and the employee is terminated or resigned, he will not be asked to refund the amount.

3. In case of appointing a manager with C0 grade or in case he was promoted during the study semester, the school expenses are paid for the whole semester SAR 7500 per child and SAR22,500 for all the children per the semester.

4. In case of termination or resignation during the first study semester and the company didn't pay the second term expenses, it will not be disbursed.

5. In case the employee is recruited on the company visa and he has no money to pay for the children’s school, he will be granted the school loan after the approval of the HR executive manager and he should bring the actual invoices within one week.

of 50

46- Benefits of alfanar Group high management (B4 and above) working in Saudi Arabia

1. The annual school expenses for the children

6. Annual school expenses of SR 20,000 maximum per the child and SR 60,000 maximum for all the children on the following conditions:

- Payment shall be done according to original stamped invoice, which include annual fees study, books, transportation and uniform.

- The study period covered by this scheme is for the basic school education (starting from elementary till secondary stage only) should be inside KSA.

- The study must be regular and covers one full study year

7. In case the amount was disbursed for a whole year and the employee is terminated or resigned, he will not be asked to refund the amount.

8. In case of appointing higher management or in case he was promoted during the study semester, the school expenses are paid for the whole semester 10,000 per child and 30,000 for all the children per the semester.

9. In case of termination or resignation during the first study semester and the company didn't pay the second term expenses, it will not be disbursed.

10. In case the employee is recruited on the company visa and he has no money to pay for the children’s school, he will be granted the school loan after the approval of the HR executive manager and he should bring the actual invoices within one week.

11. The school expenses should be paid for the new study year at the beginning of the first semester.

2. Air Tickets:

2-1 Business Class airline tickets for internal/external business trips and In case non-availability of booking in business class then travel will be on economy class.

2-2 Business class tickets for annual vacations.

2-3 in case the employee didn’t travel or he traveled by road, the ticket will be reimbursed as per the economic class.

2-4 If the employee travels to a country other than his home country, the due tickets will be reimbursed as per the value of the business class ticket to his home country and a copy of the actual tickets should be provided to Payroll section.

2-5 Air tickets are provided for the whole family members of the higher management.

7-1 In case the employee is promoted to an Executive Manager or has been granted higher management advantages during his current contract, he deserves business class tickets for himself and his family at the end of the contract on condition that he had not already used the tickets.

7-2 One additional travel ticket in Business class will be granted, in case the family is not resided with him during the year (Admin Memo).

In this case it is not allowed extra ticket for encashment, but can be converted to their equivalent of higher tickets in number and less in class (Excursion ticket instead of business

of 50

class) within the limits of cost of Business Class to visit family as per their city mentioned in the employment contract and it should approved by Executive Manager, HRA.

3. Medical Insurance:

In case the employee is promoted or granted the benefits of higher management then the medical insurance will be upgraded to VIP for him and his family; effective from the date of promotion.

Company will provide alfanar High Management a category of medical insurance for the employee and his family members on VIP Class which includes booking of a standard suite in case of admission in hospital. Moreover, company will cover the medical insurance class B for their domestic driver (one) and female housemaid (one).

4. Annual Medical Checkup:

Company will cover full medical checkup for high management employee one time yearly in one of the contracted medical providers.

of 50

47- HR Key Performance Indictors and required documents:

Key Performance Indictor shows the period required to complete the processes of the Human Resources as follows:

Process description Process Duration

(Days) From the date of

Emergency exit-reentry 1 GM's approval of vacation

Exit-reentry 2 GM's approval of vacation

Electronic Exit-reentry 2 Hours GM's approval of vacation

Iqama Renewal 15 Receiving iqama & related docs.

New Iqama 21 Receiving passport & related docs.

Sponsorship Transfer 30 days Receiving release letter & related docs.

Profession Change 30 days Receiving iqama & photos

Family Addition 7 days Receiving iqama, family passports & related docs.

Baby Addition 7 days Receiving iqama, family passports & related docs.

Correction in Passports computer 3 days Receiving iqama & photo

Attestation Family visit visa request 7 days HRA EM's approval & receiving req. documents

Family permanent visa * * As per the recruiting office procedures

Business Trip obtaining visa (according to embassy) Submitting application to embassy after GM's approval

Commercial visit visa 3 days Receiving application

Commercial visit visa extension 7 days Receiving passport

Commercial Visit visa extension through private office

7 days Receiving passport

Travel agencies invoices 30 days Receiving invoice from agent

Medical reports for iqama renewal/new

3 days Making the test

Bank Account Opening 30 days after issuing the new iqama or after transferring sponsorship

Employee Guide Alfanar

Documents

Transcript of Employee Guide Alfanar