BLANTYRE HOTELS PLC TERMS AND CONDITIONS OF SERVICE

CONDITIONS OF SERVICE

BLANTYRE HOTELS PLC TERMS AND CONDITIONS OF SERVICE

CONDITIONS OF SERVICE

1.0 INTRODUCTION

These terms and conditions of service have been prepared in order that you, an employee may have an informed understanding of certain company policies, procedures, rules and benefits. They are intended to be used as a reference aid for clarification and consistencies in the implementation of policies, procedures, rules and benefits. Policies contained in these Conditions apply to all employees of BHL unless otherwise stated.

Notwithstanding these Conditions, BHL may enter into contracts of employment with individual employees containing special conditions additional to or varying these Conditions. Where any special conditions add to or vary these Conditions, the special conditions shall apply. In the absence of any special conditions, these Conditions shall apply.

These Conditions are not intended to be inclusive and should be read together with the Marriott Handbook. We encourage you to make enquiries and suggestions regarding these contents to the Human Resource Department for a discussion and/ or clarification.

In addition, the policies, procedures, rules and benefits contained in these Conditions comply with the Laws of Malawi which prevail over any contrary provision contained in these Conditions.

All changes to the policies, procedures, rules and benefits in these Conditions can only be made in writing by the Human Resources Department with the approval of the General Manager and in consultation with the Hotels’ Union and those changes will be in effect as of the dates published. BHL reserves the right to add, remove, or change any policies, procedures, rules and benefits in these Conditions and in so doing shall ensure that the Laws of Malawi are not contravened with the employees being informed of the changes.

1.1 Citation and Commencement

These Conditions may be cited as the Blantyre Hotels Limited Staff Terms and Conditions of Service and shall become effective from …………… and replace all previous Terms and Conditions of Service.

These Conditions, except where it is specifically otherwise provided, shall apply to members who are serving on temporary, probationary, contractual and permanent terms. Appendix 1 will be signed by all Staff.

2.0 THE COMPANY

Blantyre Hotels Plc (BHL) is a company incorporated under the laws of Malawi with an excellent record of accomplishment in the management and operation of hotels. BHL owns the Protea Hotel Ryalls and is under Marriott International, Inc.

2.1 Competitive Remuneration

It is the policy of BHL to ensure that remuneration packages are internally equitable and externally competitive i.e. with like organizations with the aim to attract and retain the best possible employees. Remuneration packages will be applied consistently throughout the organization and will be fair, adequate and non-discriminatory.

Most importantly BHL believes in performance driven remuneration in which Staff are rewarded for contributions or impact they have on the business.

2.2 Bribery and Corruption

Employees are prohibited from participating in any fraudulent acts against BHL or any other entity. BHL is committed to the highest possible standards of openness, transparency and accountability in all its operations and promotes a culture of honesty. Employees must also be alert for occurrences of fraud, be aware that unusual transactions or behaviors could be indications of fraud, and report potential cases of fraud.

Employees must neither give nor accept any gift of such significance that such acceptance or giving could cause or give the appearance of BHL granting or receiving favor. Guidance of what constitutes a gift is as indicated separately in the Gifts Policy as advised by the Human Resources Department.

2.3 Safe Working Environment

BHL recognizes and accepts its responsibility as an employer to provide healthy and safe place to work. Promotion of high standard of safety awareness among its employees shall be prioritized.

BHL also believes that employees must exercise personal responsibility to take reasonable care of their own health and safety and that of their colleagues. Thus, BHL shall conduct its activities as to prevent harming the health of its employees and works on the basic principle that accidents and injuries can be prevented.

2.4 Conflict of Interest

An employee shall not during normal working hours, except during annual leave days, directly or indirectly engage in any business or occupation other than normal duties assigned to the employee by BHL.

An employee and/or spouse shall not engage in any private business, trade or commercial activity where it is or may be deemed to be directly in competition with BHL. Provided that an employee and/or spouse may engage in a private business, trade or commercial activity with prior written approval from the General Manager so long as the employee is discharging his duties and the business or trade or commercial activity is not in direct completion with BHL.

It shall be the duty of every employee to describe to BHL in writing any private business, trade or commercial activity which, in the employee’s reasonable estimation, has the potential to raise conflict of interest allegations. An employee and/or his spouse or any of his close relatives shall not supply or sell any goods or services for his benefit to BHL without first obtaining consent from the General Manager.

2.5 Confidentiality

Employees shall observe strict secrecy, respecting all transactions and affairs of BHL, its subsidiary companies, its clients, its associate companies, and other employees. In this case BHL shall expect employees to observe the strictest secrecy for all information acquired in the course of employment. Employees shall not communicate any information made available to them or which may come to their notice as employees of BHL. Non-compliance with this code of conduct shall be cause for disciplinary action. Copy of Confidentiality Agreement Form is presented in Appendix 2

Similarly, BHL will not divulge any details of employees’ personal file to a third-party including Banks, Building Societies etc without prior authority from employee unless where a request to divulge such information is from a duly authorized government institution.

3.0 DEFINITIONS

In the interpretations of these Terms and Conditions of Service the following definitions shall apply:

a)Abscondment shall mean any absence from duty without permission. Any employee who absconds shall be deemed to have abandoned his post and shall be liable to disciplinary action;

b)BHL shall mean Blantyre Hotels Plc;

c)Board shall mean the Board of Directors of the Blantyre Hotels Plc;

d)Company shall mean Blantyre Hotels Plc (BHL);

e)Effective date refers to the date on which management shall declare that the Terms and Conditions of Service will take effect;

Employee shall mean a person who offers his services under an oral or written contract of employment, whether express or implied

f)General Manager shall mean the General Manager or Chief Executive Officer of BHL or such officer acting in that capacity;

g)Leave shall mean a recognized and authorized period of absence;

h)Performance bonus shall mean money paid to an employee at the end of the year above his monthly salary as a token of appreciation for the contribution made by the employee in the overall profitability of BHL for the year in question as measured by the performance appraisal exercise and other set procedures within the Company;

i)Permanent Staff shall mean staff members that have been engaged for an indefinite period of time after satisfactorily completing a period of probation and have been notified of this fact in writing;

k)Redundancy shall mean reduction of positions as a result of a number of factors including restructuring due to economic down trend or due to operational, structural or technical reasons.;

l)Retrenchment shall mean reduction of the workforce due to economic downturn or other operation requirements;

m)Subsidiary shall mean any operation of BHL including Ryalls Hotel;

n)Transfer shall mean being moved from one subsidiary or unit or department to another either on the same grade or on promotion;

o)The use of the masculine gender shall where the context so admits include the use of feminine and vice versa;

p)The use of singular shall where the context admits include the use of the plural or vice versa;

q)The words employee and Staff shall be used interchangeably.

4.0 ENGAGEMENT AND APPOINTMENT

4.1 Pre-engagement Requirements

a)All prospective employees are required to:

•Complete an application letter;

•Attend an interview;

•Submit copies of their Curriculum Vitae and certificates to the interviewer;

•Provide reference details where necessary;

•Undergo a medical examination, including drug testing, if required;

•Undergo police clearance if required.

All employees will be engaged in accordance with the laid down and approved Recruitment Procedure as outlined in Appendix 3

b)A standard letter of appointment shall be obligatory for the appointment of all Staff and shall be issued in triplicate with employee returning two signed copies to BHL. By accepting the employment offer, the Staff member is accepting to abide by the Terms and Conditions of Service;

c)While employment offer shall provide the key elements of the Terms and Conditions of Service, the employee is encouraged to read and understand the Terms and Conditions of service.

4.2 Medical Examination

a)BHL reserves the right to demand a medical re-examination to any employee who is persistently absent due to illness at any time and at any place, and such employee shall submit to such examination;

b)All employees working in the Operations Department are obliged to undergo periodical medical assessments as provided for under the Laws of Malawi.

4.3 Screening and Vetting

To protect the interests of employees and guests as well as the reputation of the company, BHL shall apply rigorous background screening and vetting techniques when selecting people for employment.

5.0 INDUCTION

An induction program will be carried out for all new employees. This will be organized by the Human Resources Department in conjunction with other departments.

Induction provides employees with the necessary knowledge to make their introduction into the Company as smooth as possible.

These Conditions form part of the induction and all employees are expected to know the contents thereof.

It is the responsibility of each employee to familiarize themselves with the Company rules, regulations, policies and procedures, and to discuss any situation which may be confusing with their supervisor/Manager.

5.1 Working Hours

a)The normal working hours for Operations Staff are 48 hours per week;

b)The normal working hours for Support Staff are 40 hours;

c)Meal times are not included in the duty periods;

d)Heads of Department to arrange duty rosters in such a way that at least one day of rest per week is allowed for operations Staff. Any variance to this will be as prescribed in an individual’s letter of appointment.

5.3 Days Off

Employees are entitled to days off as per their specific operations policy.

Days off shall be allocated by means of monthly or weekly roster. An employee’s Head of Department is required to approve any changes to days off requested by an employee.

Any days off owed in lieu of public holidays worked will be treated as days off and not leave.

5.4 Meal Breaks

All employees are entitled to a meal break. The timing of the meal break is determined by the departmental roster and based on operational requirements.

Meals and beverages shall only be taken in the designated eating area during the authorized breaks, except where other arrangements have been authorized.

No food or beverages shall be allowed in any part of the work area, other than the employee dining area, without authorization.

5.5 Transfer

a)Transfers shall be at the discretion of Management and an employee may be transferred from one department or location to another within the company;

b)A minimum of one-month notice shall be given to any Staff whose services are required elsewhere and therefore need to be transferred. However, in the case of an emergency, employees will be required to accept such notice as is given and to undertake duties that are different from their normal duties but which the company considers within their competence.

c)Where an employee is required by the company to move from his place of work to another place of work in a different district shall be paid Disturbance Allowance to the equivalent of one time basic salary; The Company, will pay for the cost of transportation of personal belongings.

d)Failure to obey instructions to transfer to any area or department amounts to serious misconduct for which an employee could be liable to disciplinary action.

a)Initial salary and wages will be according to qualification and experience for the position offered;

b)Monthly salary shall be paid in arrears on or by 28th day of the month to the employee’s bank account

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6.3 Performance Bonus

Performance bonus may be paid to employees dependent on profitability and agreed company performance targets for a year. The annual performance bonus will only be paid following approval by the Board of Directors.

6.4 Acting Allowance

a)An employee who has been called upon to assume responsibilities of a higher post as part of their training development or due to the exigencies of the company shall be paid an acting allowance;

b)Acting allowance will only be considered if the acting period is more than one calendar month;

c)Acting allowance shall only apply where the employee performs the complete duties of the higher office;

d)Under no circumstance shall an employee be allowed to hold two substantive offices;

e)The acting allowance will be 30% of the basic salary of the Staff member who is acting in the position.

6.5 Responsibility Allowance

a)Where an employee is required to undertake additional duties and responsibilities of a nature substantially more onerous than those attached to his post but is not necessarily discharging full duties of another post, he may be paid a Responsibility Allowance upon approval by the General Manager;

b)The responsibility allowance so paid shall be at the rate of 20% of his/her basic pay;

c)The period worked shall not be less than 30 consecutive calendar days;

d)An employee entitled to an Acting Allowance shall not be entitled for a responsibility allowance for the same work and period.

7.0 TERMINATION OF EMPLOYMENT

7.1 Resignation

a)An employee may resign from his position by giving one month notice in writing or payment of the equivalent salary in lieu of notice of termination of contract of employment.

b)Similarly, the company may terminate with reasons, the contract of employment by giving one month notice or pay an equivalent salary in lieu of notice.

7.2 Abscondment

a)An employee shall be treated as having terminated his appointment if absent from work for five days without prior permission from Management unless he can give a reasonable excuse for his absence acceptable by management.

7.3 Retirement

7.3.1 Normal Retirement

a)An employee shall retire on reaching their 60th Birthday;

b)Upon retirement an employee will receive benefits in accordance with BHL Group Pension and Life Insurance Scheme Rules details of which can be obtained from the Human Resources Department.

7.3.2 Early Retirement

a)An employee may also opt to retire after twenty years of continuous service with BHL;

b)The Company, on application by the employee may accept that an employee be retired on attaining 50 years of age but before attaining 60 years.

c)The Company, on application by the employee may accept that an employee be retired before attaining 50 years of age on the grounds of ill-health as advised by recognized medical practitioner certifying that the employee is disabled from carrying out the functions of his office;

d)Upon retirement an Employee will receive benefits in accordance with BHL Group Pension and Life Insurance Scheme Rules.

7.5 Disciplinary Grounds

a)Employment may be terminated on disciplinary grounds in accordance with the company Disciplinary Code as per Appendix 13.

7.6 Other Reasons

a)The company may terminate an employee’s appointment on grounds of reorganization, lay-off, retrenchment, or redundancy, and the employee shall be entitled to benefits in accordance with the Employment Act.

7.7 Terminal Dues

a)In the event of termination of employment or dismissal, an employee shall be paid his dues as outlined in Appendix 6. The Company shall be entitled to withhold part of the dues for liquidating of part of his debts, if any, to the Company.

8.0 REDUNDANCY OR RETRENCHMENT

a)An employer has an undoubted right to terminate the employment of their employees for economic, technical, structural or similar reasons;

b)When and where the need for redundancy or retrenchment has been established, efforts will be made to ensure that qualified and productive employees are redeployed to existing positions within the company. However, if such efforts fail, the employees will be declared redundant in accordance with the procedures as laid down in Appendix 7.

9.0 LEAVE POLICY

BHL employees may be entitled to various types of paid and unpaid leave within the provisions of their employment contract, the company’s Terms and Conditions of Service, and the prevailing legislation. It is the intent of BHL to grant paid or unpaid leave to employees under appropriate circumstances.

9.1 Scope

This leave policy is applicable to all BHL permanent employees including those employees on fixed term contracts.

9.2 Implementation

While the Human Resources Department is responsible for the proper implementation of this policy, department and Section Heads are responsible for ensuring that leave, where possible, is properly planned for and that Staff under their supervision strictly adhere to the provisions of this policy.

9.3 Annual Leave

a)Annual Leave Cycle

The Company’s holiday year runs from 1st January to 31st December.

b)Calculation of Leave Days while Proceeding in Annual Leave

The period of leave shall be calculated from the day after the employee ceases to work to and including the day prior to his resumption of duties but shall for operations Staff exclude Sundays and any gazette Malawi Public holidays. For the rest of support Staff calculation of leave days shall exclude Saturdays, Sundays and any gazette Malawi Public holidays.

d)Leave Requests

Requests for leave should be made to each employee’s immediate supervisor giving as much notice as possible. Approval will be dependent in the work needs of the Company. The General Manager and the employee’s immediate supervisor, however, may interrupt an employee’s leave if it is deemed necessary. Such interruptions shall be reported to the Human resources Department with supporting explanations.

Leave may not be accumulated from one leave year to the next. The only exception being where the employee’s Head of Department with the approval of the General Manager has requested that the employee should not go on leave or has recalled the employee from leave to resume his duties.

Should an employee’s application for annual leave be turned down by Management, this shall be noted in writing and a record kept by the Human Resources Department in the employee’s file. This will be taken into consideration on 1st January each year or when an employee leaves the company and has leave days due.

No payment in lieu of annual leave will be given unless employment is being terminated.

9.4 Sick Leave

a)Employees on probation shall not be entitled to any sick leave. To the extent that they have earned annual leave days, these shall be used for the purposes of sick leave. Any days in excess of the earned annual leave days shall be treated as unpaid leave.

b)An employee who is prevented by illness from reporting for duty shall, as soon as practicable and in any case not later than twenty-four hours of his being ill inform the immediate supervisor or Human Resources Department of such absence and the reasons for it.

c)Employees are required to obtain a medical certificate or letter from registered medical practitioner for any absence from work resulting from sickness or injury. The certificate must be sent to Human Resources Department through one’s supervisor. Subsequent certificates are to be provided weekly. If no certificate is provided, leave taken shall be regarded as annual leave.

9.5 Payment of Salary during Sickness

a)After twelve months’ continuous service, an employee shall be entitled to three (3) months fully paid sick leave each year non-cumulative to cover long term illness;

b)If sickness continues, a further three (3) months’ sick leave at half pay shall be given;

c)After six continuous months’ period, leave will be unpaid, and the company may arrange for the retirement of the employee on health grounds;

9.6 Medical Examination

a)An employee continues to be incapacitated, especially where persistent absence from work is experienced due to sickness. Management may request the employee to be medically examined by a doctor or specialist, nominated by the Company for an independent medical report, should it be considered necessary;

b)Employees on prolonged illnesses shall be required to produce written medical evidence indicating their fitness to resume work.

a)The Company will grant confirmed female Employees one hundred twenty days (120) days maternity leave with full pay, once in every three (3) years. Where an employee does not qualify, maternity leave shall be regarded as unpaid leave;

b)In the event that child delivery has delayed, maternity shall only start as soon as the baby is born to ensure that the employee enjoys 120 days of maternity leave;

c)Female employees on an extended probation period of more than 6 months shall be entitled to two months maternity leave on full pay;

d)Should an employee on extended probation wish to take more than two months maternity leave, she will be allowed to do so but only as unpaid leave;

a)The Company will grant confirmed male employees fourteen (14) days paternity leave with full pay, once in every three (3) years.

b)Male employees shall be required to provide a birth report listing them as the child’s father before proceeding to the paternity leave.

c)Where individuals do not qualify, paternity leave shall be regarded as unpaid leave where the child spacing in less than 3 years

d)Should an employee wish to take more than fourteen (14) days paternity leave, he will be allowed to do so but only as unpaid leave;

e)All employees on paternity leave shall not enter into gainful employment during period of paternity leave.

9.9 Compassionate Leave

a)Compassionate leave shall be granted to an Employee for the purpose of attending the funeral of a spouse, child, biological father, biological mother, biological sister or biological brother;

b)Compassionate leave in (a) is a 6 working days per year. Any days in excess of 6 working days shall be treated as unpaid or part of an employee’s annual leave;

9.10 Study Leave

a)Study leave on full pay may be granted to an employee for the purpose of sitting as a candidate writing an examination approved by the company, provided that the employee produces as evidence a “time table” towards the examination. For each examination, employees are entitled to two days study leave, being the day before the exam and the day of the exam. The duration of the leave should be the same as the time table;

b)Any leave days applied for in addition to the examination time table shall be treated as either leave or debited to the annual leave;

c)An employee who has secured place for education and sponsorship on his own would be required to resign from the Company and reapply after the course of training. The prospect of employment will be dependent on the availability of suitable vacant position.

9.11 Special Leave

Special leave of absence on full pay as the circumstances demand may be granted to an employee:

a)For the purpose of attending any conference approved by the Company;

b)For the purpose of responding to a national call up to attend an event in the national interest at the request of the Government or to allow an employee attend a court case as a witness at the direction of the court;

c)For the purpose of attending a workshop/seminar or meeting in relation to trade union matters. Such special leave of absence will be limited to the entitlement as negotiated in a recognition agreement. Any excess thereof shall be treated as unpaid leave or as part of annual leave and will be the subject of a separate application. In both cases, leave shall be taken with prior approval of management.

10.1 Group Pension Scheme

a)The company sponsors a contributory Defined Contribution Group Pension Fund for all Staff. All members of Staff including Staff on probation, except those exempted in terms of the Pension Act, shall join the scheme from the date of joining the Company. Employee contributes a minimum 5 per cent and the employer contributes a minimum of 10 per cent of the employee’s salary;

b)Details of employer’s credit balances can be obtained from the Company Human Resource Management Office and company’s online portal

10.3 Worker’s Compensation and Group Accident Cover

The company has purchased insurance to cover employees who suffer injury whilst on duty details of which are available from the Human Resources Department.

10.4 Medical Aid Scheme

a)BHL shall provide medical insurance for all employees through either Medical Aid society of Malawi or Med Health Limited Scheme or any other scheme in order to defray all reasonable and necessary medical expenses.

All employees are required to join the scheme in operation immediately on appointment on the terms as outlined in these conditions.

b)Staff will have the option of choosing to be covered by the Company’s choice of medical aid service provider.

c)The Company shall offer a contributory medical scheme to an employee’s spouse and four biological or adopted children up to the age of eighteen (18) during the Employee’s employment.

d)The company shall contribute 60% and employee 40% of the total cost of employee’s category. Beyond four dependents, the member will pay 100% contribution.

10.6 Death Benefits

a)On death of an employee, the deceased estate shall be entitled to the amounts provided in the NICO Life Funeral Policy Scheme which can be obtained from the Human Resources Department.

b)Management shall give emergency loans sympathetic consideration in the event of death of biological parent and other relatives.

11.0 SALARY ADVANCES AND LOANS

b)An emergency salary advance shall be repaid within three (3) months.

11.2Study Loan

a)The Company may grant such study loans, subject to availability of funds, to any Employee who has been employed by the Company for a period of twenty-four (24) months or more and who wants to take a course of study in Malawi. Such advanced course of study must be relevant to the Employee’s direct career path in his association with the Company.

b)Should such a loan be granted, the following conditions and understandings will apply:

a)The course to be attended must be one that is recognized and approved by the Company and such institutions conducting the course must be recognized by the Government and accredited by the National Council of Higher Education or other authorized bodies.

i.Payment for the course under this loan arrangement will be made by the Company directly to the appropriate institution. No payment will be made to the Employee under any circumstances;

ii.The loan will be interest-free and its repayment period will be determined in accordance with the Employee’s gross monthly earnings. Repayment in full by the Employee will be expected within Eighteen months from the date of payment by the Company to the institution unless this condition has been specifically waived.

iii.Educational loans will be considered if they are intended to meet the costs of the following:

1.Tuition;

2.Text Books;

3.Examinations fees

iv.Subsequently BHL will re-imburse the full amount of the loan to the Employee under the following strict conditions:

1.The full course or stage of the course is completed, and a pass is achieved;

2.The Employee undertakes to work and works within the Company for a period of one year without resignation after qualifying;

3.The Company will reimburse half (50%) of the full amount of the loan to the Employee on the Employee’s return to work from the course and the balance after completion of the contracted one year period without resignation by the Employee or dismissal of the Employee by the Company.

Should the Employee either resign or be dismissed during the contracted one year period, the balance of the unpaid costs will be retained by the Company.

Full completion of the course and a qualification obtained must be achieved:

a)Employees who fail such a course will not be reimbursed the cost of their studies;

b)An employee who has been granted such a loan will provide the institution conducting the course, the name and address of the Head of Human Resources as the Employee’s “guardian” to enable monitoring of progress and results of the Employee during the course period.

c)BHL has the right to refuse a loan to an employee to cover the costs of any course, in any event but particularly if in the Company’s opinion:

•The employee’s performance is below standard;

•The employee fails after attempting the examinations twice;

•On receipt of an adverse report from the school or college;

•The course is considered not relevant to the Employee’s job or the Company’s current and long-term objectives.

d)The decision of the Company to refuse to grant a loan or to discontinue financial assistance during studies shall not be subject to be challenged as long as the reasons thereof have been communicated to the employee in advance;

e)The Company may, from time to time, approve the release of any Employee who is pursuing a course approved by BHL from duty, such release enabling the Employee to attend appropriate classes or lectures during normal working hours.

12.0 TRAVEL AND TRANSPORT

12.1 Traveling Abroad

Employees travelling abroad on company business must first obtain written approval from the company’s General Manager. All such travel arrangements will be made through the Company’s General Manager and will where applicable be covered by the Company.

12.2 Travel in Malawi

(i)Employees travelling within Malawi on Company business with prior approval of Management as may be appropriate will have their expenses covered by the Company;

(ii)All employees so travelling must ensure that all reasonable safety precautions are adhered to during travel;

(iii)If such travel includes control and use of a Company owned provided motor vehicle, employees must ensure proper use of such vehicle and must obtain authorization from the General Manager, Finance Manager or the Human Resources Manager

(iv)The driver of such vehicle shall have a valid driver’s license. The Company reserves the right to inspect such a driver’s license on demand. Employees must ensure that the person in control of the vehicle is duly authorized to do so.

12.3 Transport

(i)Only authorized Staff may drive Company vehicles;

(ii)Drivers in charge of company cars, buses, lorries, pickups, motorcycles, or other vehicles shall not use these vehicles for any use apart from those for which they are authorized or which have been clearly specified or authorized by Management from time to time.

(iii)No Company vehicle may be used for private purposes, unless approved by Management;

(iv)Unauthorized use of Company vehicles may lead to disciplinary action.

13.0 HEALTH POLICY

BHL has an extensive Health Policy to help preserve the best possible work conditions for all employees. Every employee has a right to feel safe at work. The Company is committed to follow legal standards and create a hazard-free workplace. The Company has the following policies in place:

(a) HIV/AIDS Policy, see Appendix 8.

(b) Covid-19 and other Infectious Diseases Policy, See Appendix 9.

14.0 SAFETY POLICY

BHL recognizes and accepts its duty of care under the Occupational Safety, Health and Welfare Act 1997 to provide a safe and healthy working environment for all employees and all who use its premises.

In pursuance of the above objective, BHL shall have in place Safety Policy. The Policy document will set out how safety is managed in the workplace by defining who does what, when and how they should do it.

The main purpose of the policy shall be to:

a)Secure the health, safety and welfare of the employees at work;

b)Protect others from the risks arising from the activities of people at work;

c)Control the use and storage of dangerous substances;

d)Maintain the workplace, so that it is a safe working environment.

15.0 PERFORMANCE MANAGEMENT SYSTEM

It is the policy of BHL to conduct regular, consistent and objective performance reviews of its employees based on updated job description, key performance areas, objectives set and operational requirements.

The purpose of performance evaluation is to give employees feedback on their effectiveness in achieving targets and goals agreed to in advance at the start of the year. In evaluating individual performance, the goal is to build a link between individual performance, departmental performance and company vision and goals. The performance evaluation exercised will thus:

(i)Enable the company to conduct an employee’s performance for current and future reference;

(ii)Enable the company to possess a consistent basis for considering performance awards, promotion or disciplinary action for an employee;

(iii)Enable the employee to understand how the Company perceives his/her performance and therefore understand how to take the necessary steps to improve overall performance;

(iv)Inform Staff what further training and development initiatives need to be organized;

(v)As Staff development is one of the key concerns of BHL, overview of performance evaluations will also serve to assess the value of BHL training programs and thus improve areas of weakness;

(vi)Performance Management Review shall be done every six (6) months.

Appendix 10 outlines the Performance Appraisal/Review procedure to be used.

16.0 STAFF TRAINING AND DEVELOPMENT

The Company recognizes that human resource developments is a key to achievement of her goals and accordingly the company shall undertake to give highest priority to Staff development and training and equip Staff with requisite skills, expertise and knowledge for an effective and efficient service delivery.

All matters relating to training shall be carried out in accordance with the Human Resource Development and Training Policy detailed in Appendix 11

17.0 CODE OF CONDUCT

All employees will be expected to strictly observe a code of conduct designed to outline and clarify the working relationship and the parameters of conduct that will be acceptable or otherwise. Persistent breach of the code of conduct will attract disciplinary action. An employee may be warned, terminated or dismissed if found guilty of breaching the code of conduct.

The Code of conduct is outlined in Appendix 12

17.1 Discipline

It is the responsibility of management to maintain discipline in the Company and management shall have the right to initiate disciplinary action against any employee who contravenes the disciplinary code, or acts against the interests of the Company or who commits any social criminal or other offences.

The disciplinary code serves as a guideline to all employees with reference to what will be considered as irregular conduct. It provides a pattern of acceptable behavior and performance. Further the disciplinary code spells out how the company will deal with any occurrences of misconduct and gives guidelines to the disciplinary action which may be imposed.

Appendix 13 provides the detailed disciplinary code and procedure to be followed for any breach of discipline.

17.2 Grievances

A grievance is described as an injury, injustice or wrong which gives ground for complaint because it is unjust, discriminatory and oppressive. It is a formal dispute between an employee/employees and the Company regarding the conditions of employment.

Any grievance about any matter to work conditions and the work place with which any employee is dissatisfied should be made in compliance with the laid down procedure as outlined in Appendix 14. This grievance procedure seeks to enable employees to have their grievances resolved fairly, quickly and as close to the point of origin as possible.

18.0 NOTIFICATIONS OF CHANGES

(a)The Company maintains personal records of all its employees. Information maintained includes such items as application forms, resume, performance appraisals, payroll information, leave application forms, warning or disciplinary action notices, insurance and medical information.

(b)Employees have a responsibility to ensure that their personnel files are up to date. The Human Resource Department should be immediately notified of any changes in name, address, telephone number, marital status, number of dependants, qualifications, changes in beneficially or persons to be notified in cases of emergency.

(c)Employees’ personnel files are the property of the Company. Employees may view the contents of their personnel file at the discretion of Human Resources Department, but at no time may the contents be removed from the Company premises by the employees.

19.0 GARNISHMENT OF WAGES

A garnishment or an enforcement order is a legal deduction of a specified sum from wages to satisfy a creditor. If departments receive a court order claiming to garnish the wages of employees, such documents must be immediately forwarded to the Human Resources Department. The Human Resources Department will inform the employee of the claim against him or her and will arrange for remittances as are appropriate.

20.0 VISITORS ON THE COMPANY’S PREMISES

(a) To provide for safety and security of employees and the facilities at our premises, only authorized visitors are allowed in the workplaces. Restricting unauthorized visitors helps maintain safety standards, protects against theft, ensures security of equipment, protects confidential information, safeguards employee welfare and distractions and disturbances.

(b) All visitors should enter the Company at the reception area. Authorized visitors will receive directions or be escorted to their destinations. Employees are responsible for the conduct and safety of their visitors. Employees are requested to restrict visits by their relatives, friends or acquaintances to break times.

(c) If an unauthorized individual is observed on the Company premises, employees should immediately notify their supervisors or if necessary, direct the individual to the reception area.

APPENDICES

APPENDIX 1 Terms and Conditions of Service Acknowledgement Form

I, the undersigned, acknowledge that I have read the terms and conditions of service and will adhere to the policies set forth in this Handbook. Acceptance of employment offer shall automatically be acceptance to be bound by these terms and conditions of employment.

I have had an opportunity to clarify any questions which I may have concerning the provisions of this Handbook. I understand the Terms and Conditions of Service may be changed at any time at the sole discretion of the Blantyre Hotels Plc and the Blantyre Hotels Plc retains the right to interpret and apply the stated policies as it deems appropriate.

Signed:_______________________Date:_____________________________

Employee:_______________________________

APPENDIX 2 CONFIDENTIALITY AGREEMENT

I, the undersigned willfully undertakes to always conceal and never reveal any matters, activities and dealings of Blantyre Hotels Plc and any of its subsidiaries which matters or any activities, dealings that shall come to my knowledge by virtue of any employment with the said Company or any of its subsidiaries to anyone except it be duly authorized person or persons to receive the same from me and not even to him or them unless I have been myself duly authorized to communicate with any information, matter, activity or dealings.

I hereby further agree that in the event of violating this agreement I shall be liable to disciplinary action.

Signed:_______________________Date:_____________________________

Employee:_______________________________

APPENDIX 3 BHL RECRUITMENT PROCEDURE

Blantyre Hotels Limited shall adhere to the following when undertaking recruitment of new employees.

The procedure as laid down will be followed by all employees charged with the responsibility for recruitment.

In particular it must be noted that no candidate is to be interviewed other than by a duly consulted interview panel of not less than three persons one of whom should be from Human Resources Department.

1.Vacancies And Their Notification

1.1A vacancy will occur as a result of the following reasons:

1.1.1Resignation;

1.1.2Newly established positions;

1.1.3Promotion;

1.1.4Termination or dismissal;

1.1.5Retirement; and

1.1.6Death of an employee

1.2When a vacancy occurs or it is known that a vacancy will occur, the Departmental Head concerned will liaise with the Human Resource Department to seek the General Manager’s approval for replacement;

1.3When seeking to fill an already existing post, the proposed salary shall be that which has been allocated in the salary scales in force;

1.4Having obtained authority to fill the vacancy, the Company’s Human Resources Department will consult with the Departmental Head and go through the particular job description. If need be the job description may be updated and regarded by the Departmental Head in full consultation with the Management.

2.Advertising

2.1In order to give every eligible serving employee an opportunity to compete for the vacancy, a position must be internally advertised. The internal advertising will be similar to that which may later be used for external advertisement i.e. an outline of the duties and the qualifications required;

2.2If it is necessary to advertise a vacancy, care must be taken to ensure that the text of the advertisement clearly states the duties of the post and experience/qualifications required of candidates. The advertisement should also give the address to which replies are to be sent and the closing date for the receipt of applications;

2.3When preparing an advertisement, every care must be taken to ensure that the information contained therein is accurate and presented in such a manner as not to be misleading or open to misinterpretation.

3.Shortlisting

3.1Application upon receipt, should be carefully screened and selection made by the Departmental Head in consultation with the Human Resources Department. The shortlist along with all other applications and interview details i.e. date, time, venue, panel members selected must be presented to the General Manager or his designate for his final vetting;

3.2Candidates who have the final shortlist shall be informed by either telephone or letter;

3.3Invitation of candidates to attend interviews must be advised without delay and sufficient time given for the letters inviting them for interview to arrive at the most distant addresses;

3.4Due to volume of applications often received responding to advertisements, it shall not be practical to acknowledge applicants who are not shortlisted.

4.Interview

4.1The details of shortlisted candidates should be prepared with a folder for each member of the panel and circulated at least forty-eight (48) hours before the interview is to take place to enable panel members to study the applications of each candidate. In each folder should include an appropriate interview assessment form, job description as well as a copy of the advertisement;

4.2The composition of a panel must be such as to bring to the effective assessment of a candidate the widest related technical knowledge and impartiality;

4.3Representative from Human Resource Department who will act as secretary to the panel shall ensure that the assessment forms are properly completed;

4.4The aim of any panel is to make the fairest possible assessment of the candidates and this can only be achieved by helping the candidate to be at ease. Avoid unnecessary or hostile questions and those that could be answered with a yes or no, also avoid questions which have already been answered by the candidate when completing the application form;

4.5At the end of each interview the candidate should be advised of any possible delay in being advised of the outcome of his interview;

4.6An assessment should be made by the panelists of all the candidates the same day the interviews have been conducted;

4.7The panel secretary will collect and collate each members’ assessment forms and will note any special observations or comments of the panel;

4.8Immediately upon the completion of the program of interviews, the panel shall present their overall views and collectively reach a decision as to who is the successful candidate and the terms and conditions upon which an offer of appointment is to be made.

5.Interview Reports And Reference Check

5.1Without delay, the secretary of the panel will prepare a report for submission to the General Manager;

5.2The report will give personal and career details of suitable candidates together with the expressed views of the panel and its recommendations regarding salary and notice;

5.3Approval to engage the successful candidate shall be subject to obtaining a satisfactory written reference letter from the immediate past employer using reference application form. Applications for reference may, when necessary, be followed up by a telephone call;

5.4No approach for reference should be made to an applicant’s present employer at this point in the recruitment programme. Reference from present employers if need be should however be called for immediately the successful candidate has been offered employment and has a signified his/her acceptance thereof;

5.5In order to save time, a verbal reference from past employer might be adequate for purposes of extending employment offer to the successful candidate. However, a written reference letter should still be pursued and secured for record purposes.

6.Letter Of Appointment And Acceptance Of Appointment

6.1All letters of appointment shall be signed by the General Manager or in his absence his designate;

6.2All unsuccessful interviewees should be immediately informed through letters or emails;

6.3The successful candidate must submit satisfactory medical report.

7.Probation

7.1All employees will be appointed on a probationary basis for a probationary period as specified in their letters of appointment.

7.2The Probationary period may be extended for a further period should it be necessary.

7.3At the end of of the probationary period, BHL shall either confirm the appointment of the employee as a member of permanent Staff or dispense with their services.

7.4During the probationary period, the contract of employment shall be terminated by either party without giving notice or 7 days’ notice.

7.5On satisfactory completion of the probationary period, the notice period for terminating the contract of employment shall be as specifically stipulated in the letter of appointment.

APPENDIX 4 PERFORMANCE BONUS POLICY

a)OBJECTIVE

The objective of the Performance Bonus Policy is to reward employees whose performance has been outstanding during the year under review;

The policy will therefore:

a)Provide for possibility of significant reward for the highest performance;

b)Ensure that the company attracts, retains and motivates employees of the caliber necessary to achieve the company’s present and future objectives.

b)PERFORMANCE ASSESSMENT

The assessment shall have three phases. At the beginning of the year, goals and expectations shall be set and mid-year, these goals will be assessed. At the end of the financial year the employees’ performance will be appraised and rated in accordance with the associate performance review form.

c)TERMS OF PAYMENT

In awarding a performance bonus, the following terms shall apply:

a)The bonus payable shall vary in accordance with profitability of the Company and individual performance in achieving performance targets agreed at the beginning of the year. Exceptional performers shall receive the highest share of the bonus while no bonus shall be paid to Staff whose performance rating is Below Average Contributors and below as in 2 above;

b)Staff who are employed after 1st July and have served less than twelve months to 30th June shall receive bonus payment on a prorate basis depending on the number of months worked in the remaining part of the year as long as their performance is rated satisfactory and above;

c)Employees who are promoted during the financial year shall receive bonus base on new positions or grades;

d)Employees who are on suspension shall not be eligible for payment of bonus unless the misconduct is cleared before 30th June;

e)Employees who receive written disciplinary warning shall not be eligible for bonus unless the warning ceases to be valid before 30th June;

f)Bonus shall only be payable to employees who remain in the employment of the company at the time the bonus is disbursed. Employees who are dismissed, terminated or those who resigned in the year prior to declaration of bonus will forefeet their right to any share of profits. Performance bonus is aimed at encouraging those who remain to achieve greater productivity in the future;

g)Employees who retire before 30th June may receive share of the profits on prorate basis depending on the number of months worked;

h)Any employee who dies in the last quarter of the year but whose performance was rated to near satisfactory and above shall be eligible for the bonus which shall be paid to his/her estate;

i)Performance Bonus is subject to the Board’s approval.

APPENDIX 5 LONG SERVICE AWARDS

Standard Overview

To recognize associates for their years of service with BHL and provide guidance for ordering Length of Service gifts. Gift options are either a voucher of their choice, a charitable/not-for-profit donation, or a cash payment.

Full Procedure

1.All associates, except casual and temporary workers, in managed properties and offices are eligible to participate in BHL’s Long Service Awards programme. Fixed term workers will be included if their total service means that they reach any of these significant milestones. Length of service is determined by the total number of years of service at BHL managed properties/offices.

2.Length of service awards are recognised at five year intervals, beginning with the 5th year of service.

3.The property Human Resources Manager is responsible for tracking associate hire dates, ensuring that all associates select an anniversary gift, and for ordering the awards.

4.All associates are eligible for a certificate and pin alongside their gift selection. HR should follow the procedure identified for ordering the certificates and pins and should source frames for the certificates locally.

5.HR teams should continue to track any associates reaching the significant milestones of 25 and 50 years’ service.

6.The gift voucher should be purchased by the HR team. The choice of store is at the discretion of the associate; however, it is the responsibility of the HR team to ensure that the voucher purchased is from an appropriate store. Voucher values should be ordered as per the agreed gift limits table.

7.The gift selection also includes a charity/not-for-profit donation as a gift choice. Again, local HR should work with Finance to agree the process for such donations, and any tax implications. The donation may be made to any charity/organisation as long as it is a registered charity/organisation. To choose this option, the associate must have the full charity/organisation’s registration details.

Charity/not-for-profit donations will be made as per the agreed service monetary values. Once HR have placed the donation, it is recommended that the HR team prepare a certificate to thank the associate for their donation, which may be distributed alongside the certificate and pin.

8.If permitted under local tax legislation, associates have the option of receiving an additional cash payment to the value of the gift limit as their length of service award, rather than an actual gift, voucher or charity donation. This will be paid via payroll and subject to the usual tax and other deductions. Anyone taking this option will not have the value grossed up. HR are responsible for checking any tax or other legislative restrictions with their local Finance team and informing associates as appropriate.

9.Should an associate request a particular gift, instead of voucher, cash or charitable donation, this is permissible as long as it is withing the amount guidelines for the particular service anniversary, and as long as it is within that country’s local legislative and tax rules. There will be no rounding up or additional payments made to “make up” the difference of the gift’s value and that of the gift limit for that anniversary.

10.The table below should be used as a guide, whichever option is chosen. For currencies other than those listed below, please use local currency equivalent values. These values will be reviewed on a regular basis and are subject to change.

APPENDIX 6 TERMINAL BENEFITS

A)On Termination of Employment

In the event that the Company has terminated an employee’s contract of employment, the employee shall be entitled to the following dues: Terminal dues will be paid within 7 working days.

(i)Salary for the month during which the contract is terminated;

(ii)Salary in lieu of the appropriate notice;

(iii) Leave pay for the accrued leave days to the month of termination.

Pension benefit shall be paid through the Company’s pension administrators in accordance with Pension Act. The Company shall be entitled to withhold part of the terminal dues available from the Company to be used for liquidation or part payment of his debts, if any, to the Company.

B)On Dismissal

In the event that an employee has been dismissed from the Company service, the employee shall be entitled to the following dues:

(i)Salary for the days worked in that month;

(ii)Leave pay for the accrued leave days up to the date of dismissal;

Pension benefit shall be paid through the Company’s pension administrators in accordance with Pension Act of 2011. The Company shall be entitled to withhold part of the terminal dues to be used for liquidation or part payment of his debts, if any, to the Group or Company.

APPENDIX 7 REDUNDANCY AND RETRENCHMENT

A redundancy occurs when a job is abolished and the position fall away, resulting in the termination of the services of the incumbent or resulting in the incumbent being declared redundant. All affected employees will be offered a training on financial literacy.

A retrenchment occurs when an employer terminates an employee’s employment for reasons of economic or operational requirements of the employer.

When and where the need for a redundancy or retrenchment has been established, efforts will be made to ensure that qualified and productive employees are redeployed to existing positions within the company. In cases where alternative position or employment cannot be found for the employee and as a result thereof the employee has to be retrenched or his position declared redundant, management will proceed as follows before implementing a redundancy plan with all steps being documented as below:

a.There will be consultations between Management and the affected employee(s) or the Union representing them;

b.There will be an attempt to reach a consensus between Management and the Union on how to proceed;

c.There will be disclosure of all facts necessitating redundancy;

d.The union will be afforded an opportunity to make submissions and proposals and management will respond appropriately, taking all factors into consideration;

e.The redundant or retrenchment package will be negotiated with the Union representatives before implementation.

f.The selection criteria for retrenchment or will be disclosed to the employees. Management will adopt multiple ranking criteria depending on the circumstance of the case and may use the following:

• Employee's long-term potential and attitude
• Employee's skills, abilities, knowledge, and versatility
• Employee's education and experience levels
• Employee's quantity and quality of work
• Employee's attendance history or disciplinary record
• Employee's tenure within the company

APPENDIX 8 HIV/AIDS POLICY

HIV/AIDS remain a serious public health problem, which has socio-economic and human rights implications. The Company realizes that HIV/AIDS can bring about adverse effects in the form of prolonged Staff illness, absenteeism and death impacting on productivity, employees benefits, general morale amongst others

1.PURPOSE

In order to minimize these effects, the Company shall have an HIV/AIDS Workplace Policy to ensure that those infected or affected with HIV/AIDS are accommodated and that there is a balance between the rights and responsibilities of all parties.

The HIV/AIDS Workplace Policy will ensure the following minimum requirements:

a)All employees are made aware of the basic information relating to HIV/AIDS through education, counselling and referral services;

b)All employees are made aware of the precautions necessary to prevent the contraction and spread of HIV, and the consequences of not taking precautions, to themselves, their families and to the company;

c)The Company shall support the training of in-house trainers and the introduction of experts to STAFF, in order to promote, educate and provide counselling services;

d)Condoms are made available to all STAFF and a system of replenishment is introduced;

e)Precautions against the risk of transmitting blood borne infections including Hepatitis B, should be taken in any situation calling for first aid in the work place. For example, the provision of surgical rubber glove for the First Aiders;

f)HIV/AIDS screening of employees or enquiring of them about test already taken will not be mandatory;

g)Confidentiality of all medical information, including HIV/AIDS status is maintained;

h)Employees are not obliged to inform the company regarding their HIV/AIDS status, but through education and counseling are encouraged to report on their health and HIV status, in confidence to the company Executive Management or Human Resources Department;

i)Workers infected or perceived to be infected by HIV/AIDS, are protected from stigmatization and discrimination by co-workers, Worker’s union, GUESTS or patrons.

APPENDIX 9 COVID 19 AND OTHER INFECTIOUS DISEASES POLICY

COVID-19 is now officially classified as a pandemic and is affecting lives and work around the globe. BHL is committed to providing a safe and healthy workplace for all our employees. BHL has developed the following policy to be used by BHL in its operations whilst combating COVID-19 and other infectious diseases. This policy outlines the reductions relating to working hours, wages and benefits for BHL employees to maintain its operations. This policy also includes procedures to minimize the risk of transmission of COVID-19 and other infectious diseases, in accordance with the Laws of Malawi.

1.PURPOSE

BHL’s goal is to prevent the transmission of COVID-19 and other infectious diseases in the workplace. The Company recognizes that its employees have various duties and responsibilities at their respective duty stations. Therefore, BHL has developed this policy to ensure that their employees are prepared for the measures to be implemented during a pandemic. This policy will be used in the different duty stations with site-specific considerations for some roles.

All employees are responsible for supporting, complying with, and providing recommendations to further improve this policy. BHL will cooperatively work with the Union representatives to conduct a workplace-specific hazard assessment and in the development, implementation, and updating of this policy periodically.

Section 2 of this Policy covers the reductions implemented by BHL in which the employees agree to a reduction in salary, bonuses, or wages (or to forego an increase in salary or wages) as well as working hours and Staff. BHL will cooperatively work with the Union representatives to ensure that the reductions are implemented according to this policy.

Section 3 of this Policy covers the Hazard assessment and employee protection measures to be implemented. BHL will conduct a workplace-specific hazard assessment to determine potential workplace hazards related to COVID-19 and other infectious diseases. A hazard assessment will be conducted initially and whenever changes at the workplace create a new potential risk of employee exposure to COVID-19 and other infectious diseases.

2.REDUCTIONS

BHL will implement this section of the Policy when it is experiencing a significant downturn in business due to the outbreak of COVID-19 and other infectious diseases. These reductions would be temporary and implemented to avoid layoffs.

Reduction of Working Hours

BHL will reduce the working hours of all its full-time employees by fifty (50) percent during an outbreak of a pandemic or an infectious disease.

Reduction of Salaries

BHL may reduce salaries by a certain percentage as agreed to between management and the Union or employees.

Reduction of Leave Days

BHL’s retains the right to have their employees take their accrued leave days during an outbreak of a pandemic or an infectious disease.

Reduction of Staff

BHL’s retains the right to reduce its workforce during an outbreak of a pandemic or an infectious disease.

3.HAZARD ASSESSMENT AND EMPLOYEE PROTECTION

BHL will address the hazards identified by the assessment, and include policies and procedures to minimize the risk of transmission of COVID-19 and other infectious diseases for each employee. These policies and procedures are as follows:

Good Hygiene

BHL encourages employees to practice good hygiene by abiding with the following:

a.Regularly washing hands with soap and water for at least 20 seconds.

b.Coughing/sneezing into a tissue, or upper sleeve, not in hands.

c.Avoid touching eyes, nose and mouth with hands.

d.Avoiding contact with anyone with respiratory illnesses of any kind.

The Company will routinely clean and disinfect all frequently touched surfaces including work stations, countertops, door handles.

Illness

BHL expects its employees to comply with the following procedure:

a.If an employee is exhibiting symptoms of COVID-19 or an infectious disease, they should remain home and seek medical attention immediately. The employee will be required to present a medical certificate from a certified doctor before returning to work.

b.If an employee has a sick family member, they should report the situation and stay at home until they provide a medical certificate from a certified doctor that they are not infected.

c.If an employee becomes sick at work, they will be required to report the situation at which point they will be separated from other employees and sent home.

Travel

Where an outbreak becomes severe enough, employee travel may be partially or fully restricted until conditions improve. The Company will leverage the use of virtual meeting technologies to continue work that would normally be conducted onsite.

Vaccination

BHL encourages employees to receive all available vaccinations as a part of a multi-layered infection control approach. The Company will support vaccination for each employee by providing reasonable time and paid leave to each employee for vaccination and any side effects experienced following vaccination.

Patient Screening and Management

The Company will provide, and ensure that employees wear personal protective equipment in the workplace to reduce the risk of transmission of the infectious diseases.

The Company expects the following minimum requirements from the employees:

a)Wearing appropriate face coverings (eg. masks) as per the risks and duties to be performed;

b) Maintaining physical distancing;

c)Adhering to proper personal hygiene practices; sneeze or cough etiquette, and hand washing/hand sanitization practices;

d)Adhering to the routine cleaning and disinfection measures as per the Ministry of Health guidelines;

e)Avoid using co-workers’ personal devices, office spaces, work tools and equipment;

f)Participate in related training provided by the employer;

g)Report to supervisors any situation which may affect the health of other workers.

APPENDIX 10 PERFORMANCE SYSTEM MANAGEMENT

It is the policy of BHL to effectively appraise the performance of an employee to determine and recognize individual performance and reward deserving employees.

BHL Performance Management System brings performance planning, employee development, assessment and recognition. It measures not only performance against result-based objectives, but also job- related behavior.

The Performance Management System is composed of:

(i)Performance Planning (selecting achievable results-based objects from the corporate strategic plan);

(ii)Development (training and skills development of employees);

(iii) Coaching (twice per year employee performance review and feedback);

(iv) Assessment (performance review at the end of the fiscal year);

(v)Rewards and recognition (incentives and rewards for achievement).

a)Performing Planning

Guidelines

1.During July each year, the Employee will identify at least four (4) objectives related to his or her job description and discuss with his supervisor, what knowledge, skills and behaviors are required to carry them out and for which he will be able to demonstrate results achieved at the end of a fiscal year.

2.After these objectives have been agreed upon between the Employee and his immediate supervisor, they should be concurred by the Head of Department;

3.The Employee and his immediate supervisor will sign the performance plan, retain a copy each and a copy will be provided to the Human Resources Department to place on the Employee’s file;

4.Orientation and training on the performance management system should be provided to each new Employee so that they will understand the system and each Staff member will be held accountable for its smooth operation

5.Human resources Department is responsible for conducting the training, for providing continuing support to both supervisors and Employees and for monitoring compliance.

b)Development

It is the policy of BHL to encourage Staff to develop their skills and potential

Guidelines

1.The Supervisor and Employee identify training needs, learning and career interest during each performing planning and during coaching sessions;

2.The Supervisor will recommend the identified training, career and learning interest to the Head of Department for discussion and approval;

3.The Head of Department will forward the training recommendation to the Human Resource Department to be incorporated into the training plan for the current year, and if not possible, then for the subsequent year. A copy of the recommendation will be placed in the Employee’s file.

c)Coaching

Guidelines

1.Supervisors should review progress made on the set objectives of their Staff’s performance plans with all their Staff at least twice a year (coaching);

2.Coaching is intended to provide encouragement, guidance, correction and to identify strength, weaknesses and learning/ training/ career interests which will help the Staff member not only to improve their performance but also intended to identify problem areas inhibiting achievement of the set objectives and behaviors and provides an opportunity to adjust the plan;

3.The result of coaching sessions does not need a write up but the supervisors are expected to report to Human Resource Department the dates of coaching for their Staff for purposes of recording on the BHL Performance Plan/ Assessment Form and also to facilitate the tracking of the coaching session of each Staff.

d)Assessment

Guidelines

1.Assessment should be done at the end of each Fiscal year (i.e. June 30th);

2.Assessment is a final evaluation of the performance of the employee in relation to objectives spelled out in the performance plan. It should take from of a dialogue between the Staff and his/her immediate supervisor, referencing the results and outcomes of the coaching sessions.

3.The Staff should be encouraged to assess his/her own self and provide justification of the rating;

4.Employees should be rated as follows:

a)Exceptional contributors – those whose performance far exceeds their results-based objectives and make a significant impact on the overall profitability for the year. Employees scoring above 100% of their agreed performance objectives at the end of the review year fall under this category;

b)Very Good Contributors – This is a level 2 performance which will apply to employees scoring between 80 – 99% of their agreed performance objectives at the end of the review year. These are employees who achieve all their results based performance objectives and made a positive impact on the overall profitability for the year;

c)Average Contributors – This is a level 3 performance which will apply to employees scoring between 50 – 79% of their agreed performance objectives at the end of the review year. Employees in this category achieved some but not all of their results-based performance objectives;

d)Below average Contributors – This is a level 4 performance which will apply to employees scoring between 30 - 49% of their agreed performance objectives at the end of the review year. Employees in this category include those who fall far behind in meeting their results-based performance objectives;

e)Unsatisfactory Contributors – this is a level 5 performance which will apply to employees scoring below 30% of their agreed performance objectives at the end of the review year. Disciplinary action will be taken against Employees in this category.

Administrative Procedures

1.Performance is strictly confidential. Hence only the General Manager, Executive Management and the relevant Heads of Departments will have access to the results;

2.All Staff members employed by BHL for six months or more should be evaluated the month of June just prior to the end of the fiscal year. Those employed for less than six months will be evaluated at the end of their probation of the following June whichever comes first.

3.Completed performance appraisals shall be maintained in a separate file marked ‘CONFIDENTIAL’;

4.A copy of the appraisal will be available for the individual Staff member after approval by the General Manager;

5.The General Manager in consultation with Executive Management will utilize the evaluation rating summaries from the Human Resources to determine merit increments.

Performance Related Disciplinary Action

The following penalties may be imposed by the General Manager on any employee for poor performance as an alternative to dismissal:

1.A reprimand verbal or written;

2.Withholding or suspension of annual salary increment;

3.Demotion;

4.Suspension with pay.

There are two objectives for giving rewards and recognition

1.As an incentive to achieve results-based performance objectives;

2.In recognition of outstanding contributions to the achievement of strategic objectives.

APPENDIX 11HUMAN RESOURCE DEVELOPMENT AND TRAINING POLICY

1.0 INTRODUCTION

The Company recognizes that human resource development is a key to achievement of her goals and accordingly the company shall undertake to give highest priority to Staff development and training and equip Staff with requisite skills, expertise and knowledge for an effective and efficient service delivery.

2.0 PURPOSE OF THE POLICY

The policy aims at providing a working environment in which employees are able to maximize their performance, commitment and contribution to the aims and objectives of the Company. In specific terms the policy shall aim at:

a)Addressing knowledge and skills gap in the employees;

b)Ensuring that all Staff development and training activities are systematically planned, coordinated, monitored, evaluated and sustained at all levels;

c)Enhancing the transparency and accountability in the management of Staff development and training by ensuring that learning and development is accessible to BHL employees in a cost-effective, equitable and timely manner.

3.0 PRIORITY RATES

3.1 TRAINING NEEDS ASSESSMENT

Training and Development needs shall be identified at three levels:

3.1.1Organizational Level

Organizational level needs are those that apply to the entire Company and these needs shall be assessed and identified by the Executive Management. They may involve but are not limited to the review of the strategic and operating plans as well as considering any external influences that might have an effect on the smooth achievement of strategic goals.

3.1.2Group/Team Level

Heads of Department shall take lead in identifying group/team needs. Group/team level needs may be assessed through individual job analysis and performance reviews to identify any performance/skills gaps that can be addressed through training.

3.1.3Individual Level

Performance review process through which individual performance is assessed against agreed performance standards shall be the main mechanism for recognizing and planning training and development.

3.2TRAINING AND DEVELOPMENT PLAN

The process of identifying training needs shall be followed by the development of a consolidated training and development plan. The plan will present the development and training needs identified at all the three levels as stated in above. The plan shall cover one fiscal year and shall be costed.

3.3IMPLEMENTATION MANAGEMENT OF DEVELOPMENT AND TRAINING ACTIVITIES

Implementation of the plan shall be coordinated by the Human Resource Department in collaboration with the HODs.

The Human Resource Department in collaboration with the HODs as well as the individual employees have got specific roles to play in the implementation of STAFF development and training activities.

3.3.1Role of the Heads of Department

The specific roles and responsibilities shall include:

a.Formulation, Implementation and updating of BHL training strategy;

b.Development of a training plan based on importance, urgency and available resources;

c.Ensure that consolidated Staff development and training plan for all Staff categories is prepared, approved by Executive Management and is fully implemented;

d.Ensure that development and training needs of all Staff categories are effectively identified and prioritized in the development and training plan;

e.Vet Staff development and training proposals submitted by Heads of department to ensure that selection of employees to attend development and training programs is based on objectively identified skills or performance gaps and that the same employees are not repeatedly selected for training;

f.Monitor progress on the implementation of all Staff development and training interventions.

3.3.2Role of Human Resource Department

HODs in their oversight supervisory role of all development and training interventions shall work in close collaboration with the Human Resource and Training Department. In particular Human Resource Department shall be responsible for the following:

a.Serve as contact point on matters pertaining to training including ensuring that information on training policies, guidelines and procedures is circulated to Staff;

b.Provide professional support and guidance to Heads of Department on the identification of training needs preparation of development and training plans, selection of candidates, identification of courses and recommendation of reputable training service providers;

c.Ensure that implementation of Staff development and training programmes is in line with the requirements of the Human Resource Development and Training Policy;

d.Compile and submit to Executive Management quarterly training reports;

e.Monitoring the implementation of employees’ training and development activities.

3.3.3Rule of the Individual Member of Staff

In order to continually improve their performance, individual Staff members should take keen interest in their self-development. Each employee will be expected to:

a.Discuss his or her training needs with his/her immediate supervisor on the basis of his/her performance gaps and individual career aspirations;

b.Apply for Training and Development for consideration within a particular fiscal year;

c.Attend training and Staff development programs as and when opportunities arise;

d.Submit copies of certificate obtained, detailed report and action plan to his/her supervisor and the HR Department on any training program attended;

e.Apply and share new skills and knowledge acquired during training with his/her work colleagues for improved team performance.

3.4STAFF DEVELOPMENT AND TRAINING PROGRAMS

The following training programs shall be covered under the policy:

3.4.1On the Job and in-house courses

All new employees shall be required to undergo on the job training including induction for new employees before they start work. The induction for new employees shall be conducted within the employee’s first two working days with the company and completed within first week of employment. The ‘on the job training’ shall also include training in relevant standard operating procedures and certification of the same. All supervisors shall be responsible for the ‘on the job training’ of Staff under supervision.

In-house training programs shall be designed or tailor made to address specific group needs within the company. These training programs shall be organized where a significant number of employees are eligible for the same program in order to ensure cost effectiveness. An in-house training program shall be conducted within the company premises or at any local training institution accredited by the government. The selection of suitable training providers shall be based on the capacity and experience of the training institution to deliver the course effectively.

3.4.2Short Term Training Courses

The Company shall budget funds to support Staff attending training courses lasting for a duration of less than 6 months, to enhance their skills and attributes. The short-term courses shall include seminars, workshops, exchange visits and conferences.

3.4.3Long Term Training Courses

The Company shall encourage employee to further their education and attain qualifications which are directly related to their current role and any planned changes that may occur and will directly contribute to the achievement of the company’s strategic objectives.

A Study loan or a Continuing Professional Development Loan shall be provided as provided in these conditions for purposes of attaining Diplomas, first degrees, Masters and professional certificates.

3.5 ELIGIBILITY FOR SELECTION

Employees shall be eligible to undergo any form of training as long as it is directly related to their current role.

3.5.1Short Term Training Courses

Short term training shall be any training whose duration is less than six months. All permanent employees who have completed their probation shall be eligible to attend short terms courses.

Permanent employees shall be recommended for selection for short term training on the following conditions:

a.There has been an identified need for the training;

b.The training program should be relevant to the employees’ field of work;

c.The training program should assist the employee towards achievement of departmental objectives;

d.Placement of employees should be made at reputable and government accredited/ recognised institutions.

3.5.2Long Term Training Courses

Long term training is any training whose duration is in excess of six months. All permanent employees who have served the company for two continuous years will be eligible for training courses leading to award of diploma, degree or professional certificate.

Eligible permanent employees shall be recommended for selection for further education sponsorship on the following conditions:

a.Selection of employees shall be on recommendation of the Human Resource Department;

b.Employees should not have previously received this type of sponsorship within the last two years;

c.The training program should assist the employee towards achievement of departmental objectives;

d.Employees to be considered for long term programs leading to academic/professional awards must be below 50 years of age;

e.Placement of employees should be made only at reputable and accredited training institutions;

f.Employees should only be recommended to pursue long term training program overseas provided that similar programs are not offered locally or within the region.

APPENDIX 12 CODE OF CONDUCT

Employees shall strictly adhere to the following Code of conduct at all times during their employment. Persistent breaches of the Code of conduct is a disciplinary issue warranting a warning, termination or dismissal.

Employees requiring clarification of nay of the points should address their queries to the Human Resource Manager.

a)Dressing and Good hygiene;

(i)Employees will maintain a hygienic and well-groomed appearance at all times;

(ii)Employees will wear their provided uniforms, protective clothing and put on their name tag properly and at all times during working hours;

(iii)All uniforms and protective clothing provided by the Company to its employees remain the property of the company;

(iv)All uniforms and protective clothing (including shoes) shall not be removed from the company premises after duty;

(v)In the case of disciplinary action taken against an employee, which necessities suspension from duty or termination from employment all uniforms must be surrendered to the Housekeeper, who shall make a record of this;

(vi)The employee will pay for any missing or misused uniform accessories by deducting from monthly salary or terminal pay;

(vii)Employees will take their meals only at authorized times and locations.

b)Attendance and Performance

(i)Employees will not absent themselves from duties at any time without permission from their immediate supervisors or managers;

(ii)Employees will constantly endeavor to perform to the best of their abilities at all times;

(iii)Employees will devote their full-time efforts to the successful performance of their duties;

(iv)Employees should use both care and skill in their work methods and maintain safety procedures and practices at all times.

c)Honesty and Integrity

(i)Employee’s honesty both towards clients and colleagues should be beyond reproach at all times. The acceptance of any form of inducement or bribe from any source is strictly forbidden;

(ii)Knowledge of other staff members’ misappropriation of funds from whatever source and irrespective of seniority should be reported to Management immediately;

(iii)Employees should properly document, record and hold such receipt for monies or property received on behalf of the company in the course of duty;

(iv)Any information received relating to clients’ or the Company’s operations should be treated confidentially and not divulged to any third parties other than those duly authorized to receive such information by Management;

(v)Employees should at all times be diligent in terms of client’s needs. It should be remembered that the Company depends on its clients’ goodwill and patronage to ensure profitability that in turn safeguards continued employment of staff.

d)Conflict of Interest

(i)Any Employee who has private business interests must disclose the same to the Human Resources Department on engagement or when such interests are acquired. Should the Human Resources Department consider that such private interests of the Employee are in conflict with the company’s interests, and may therefore affect the Employee’s judgment or performance at work, the matter will be disclosed to the Company General Manager.

(ii)Should the Company General Manager agree that a conflict of interest exists, the Employee will be advised to dispose of these interests and formally declare in writing that this has been done, or the employee is required to resign or the employee’s services will be terminated;

(iii)In the case of the Company General Manager, the disclosure of such private business interests shall be made to the Board of Directors;

(iv)Should an Employee not declare such interest or not dispose of these interests after having declared otherwise, the company knows this situation, the Employee will be summarily dismissed;

e)Guest/Client’s Facilities

(i)Employees must under no circumstances utilize facilities meant for hotel guests and clients, such as public toilets, guest rooms and guest bathrooms. Unauthorized use of these facilities will result in summary dismissal;

(ii)All items found in rooms that guests have vacated or in public areas (restaurants, seminar or conference rooms, banquet rooms, and bars), offices, gardens, pool areas, or car parks, must be handed over to Management or the Housekeeper. Failure to surrender such items is an offence punishable by summary dismissal;

f)Alcohol, Smoking and Drugs

(i)No alcoholic drinks may be brought into the Company premises for private consumption, and no staff may consume or purchase alcohol in Company premises while on duty. Managers and their deputies may consume alcohol while entertaining clients only;

(ii)Any Employee of any grade found either in possession of drugs or under the drug influence will be summarily dismissed.

g)Visitors

(i)No visitors are allowed into the premises without the express permission of the Company General Manager;

(ii)In any event visitors are strictly prohibited from all work areas (back of house). The staffv member is held directly responsible for the behavior and conduct of such visitors and is responsible for losses or damage that may occur through such visitors’ actions.

h)Publicity

(i)No documents, notices or other forms of literature can be displayed on the company notice boards, except with prior approval from Management.

i)Buying and Selling

(i)Employees are not allowed to buy or sell any type of articles for personal gain within company premises without exceptional authority of Management.

j)Passing of Money

(i)No collection of money from Employees even for charitable purposes is permitted without prior approval from Management.

k)Personal Telephone Calls

i.Telephones provided and installed in company premises are for company official businesses use, and private calls by Employees are not permitted, except in emergency or crisis situation. In such cases authorization must be received from Heads of Department or Management;

ii.Use of cells phone or any other device for personal use during working hours is prohibited.

APPENDIX 13 DISCIPLINARY CODE AND PROCEDURE

1.0.PRELIMINARY

Discipline is essential in any undertaking where there is to be order instead of chaos. A disciplinary code provides a pattern of acceptance behaviour and performances. It shall also provide for any employee to be given a fair hearing when an alleged misdemeanour has been committed.

For disciplinary action to be taken, an employee should have committed an offence by breaking the organizations norms/rules.

To facilitate the implementation and administration of discipline, this Code has been formulated. The purpose of the Code therefore is:

a)To ensure that all employees are informed of what the Company regards as misconduct and the steps that could be taken to maintain discipline;

b)To ensure fair and consistent disciplining of all employees;

c)To encourage timely corrective action in the event where an employee’s behavior or performance proves to be unsatisfactory or unacceptable;

d)To ensure that the employee is given an opportunity to defend himself against allegations of misconduct or incapacity before his employment is terminated.

2.0.PRINCIPLES OF THE DISCIPLINARY CODE

2.1The Code shall equally be applicable to all employees;

2.2It is the responsibility of all employees to maintain discipline at all times;

2.3An employee subject to actions in terms of the Code is entitled to representation by a Trade Union Member or a fellow employee of his own choice;

2.4Any person who is not satisfied with disciplinary action against him will be entitled to invoke the relevant steps of the Procedure hereinafter provided;

2.5The disciplinary Code will not be applied for the purpose of intimidation or victimization.

As offences state hereunder are not intended to be exhaustive, the company may exercise disciplinary action against an employee who has committed an offence although the offence has not been stated herein.

The severity of the disciplinary action will depend upon the circumstances of each case and mitigating factors will be noted by the Company. Managers responsible for exercising disciplinary action will use their discretion and for example, may prefer to counsel for a minor offence which has not been committed previously. When an offence is sufficiently serious to warrant the dismissal of an employee, the Company may in appropriate circumstances give the employee a final written waning in preference to dismissing him. Should the employee receive another written warning for any type of offence during the validity period of the final warning the Company may dismiss him immediately.

3.0.ACTS OF MISCONDUCT

GROUP 1 – SUMMARY DISMISSAL

Offences which would attract the penalty of summary dismissal shall include, but are not limited to the following:

a)Intentional or malicious damage to Company property or private property;

b)Stealing of any form including but not limited to embezzlement of Company funds;

c)Knowingly receiving stolen property;

d)Removing Company property from the Company premises without permission;

e)Assault or attempted assault i.e. one party deliberately attacks another with intent to commit grievous bodily harm;

f)Dishonesty which shall include:

(i)Bribery or corruption – giving or receiving or attempting to give or receive, any bribe or inducing or attempting to induce any person to perform any corrupt act;

(ii)False evidence or information – deliberately giving untrue, erroneous or misleading information or testimony whether verbally, in writing or by conduct; and or deliberately failing to provide information or guidance when so required or expected; cheating or such act, omission or conduct as would impute on the employee, falsehood, deception or lack of integrity;

(iii)Forgery – falsifying or changing a document or Company record including stock cards with fraudulent intent or attempting to do so;

g)Demanding and receiving bribes from customers, supplier or other employees;

h)Using Guest/Customer facilities;

i)Divulgence of information relating to Company’s activities, business or personnel to unauthorized persons.

j)Disrespect towards fellow employees including gross insults and threats implying mental or physical harm;

k)Falsification, destroying or concealing of company owned food and beverage items, or removing company or client owned products, articles, equipment or parts from Company premises without authorization;

l)Unauthorized possession of firearms or dangerous weapon on Company premises;

m)Driving Company vehicles under the influence of alcohol/drugs (drunken driving);

n)Driving Company vehicles without valid driving license;

o)Gross negligence on duty;

p)Habitual or substantial neglect of his duties;

q)Willful disobedience to lawful orders given by the employer;

r)Absence from work without permission of the employer and without reasonable excuse for a period of more than five consecutive days;

s)Engaging in any occupation or undertaking which conflicts with the interests of the Company without prior authorization of Management;

t)Using Company funds without authorization;

u)Willfully inflicting illness or injury upon oneself or another employee or attempting to do so with the intent to render oneself or the other unfit for duty;

v)Riotous behavior;

w)Bringing the Company into disrepute or issuing false and/or defamatory information concerning the company;

x)Any offence committed on or off duty but will result in criminal conviction in a court of law;

y)Serious misconduct inconsistent with the fulfilment of the conditions of contract of employment;

z)Entering into agreement on behalf of the company without authority;

aa)Attempts to ‘hack’ into systems or another person’s log-in password, breach of computer or network security measures or monitor electronic files or communications of other employees or third parties except by the explicit direction of Company management;

bb)Refusal to proceed on transfer.

A hearing during which the employee should be given an opportunity to defend himself against allegations made, should be conducted before dismissal.

GROUP 2 – TERMINATION OF EMPLOYMENT

Offences which would attract termination of employment with notice as the appropriate penalty shall include, but are limited to the following:

a)Misappropriation of Company property;

b)Repeated refusal to carry out supervisor’s/manager’s lawful and reasonable instructions amounting to gross insubordination;

c)Driving company vehicle without authority or permission;

d)Intimidating or inciting employees to violence of any form;

e)Behavior, speech or actions likely to incite hostility between employees or management and employees (gross insolence);

Provided that termination shall not be effected for the foregoing reasons before the employee is provided an opportunity to defend himself against the allegations made unless the Company cannot reasonably be expected to provide the opportunity.

GROUP 3 – FINAL WRITTEN WARNING

A final written warning may be imposed for transgressions regarded very serious in nature and some of such offences are:

a)Being under the influence of alcohol/drugs while on duty;

b)Negligent driving, driving in a manner which may cause damage to Company property or injury to person; or non-compliance with driving regulations laid down by the Company and by the state when it may cause damage to Company property or personnel;

c)Deliberate violation of safety requirement thereby endangering the safety if fellow employees, the general public or himself;

d)Participating or inciting other employees to participate in an illegal industrial action including but not limited to illegal strikes, work stoppages, boycotts, or any other interference with the Company’s business;

e)Fighting – both parties involved yet unable to prove who is at fault;

f)Failure to carry out any reasonable instructions;

g)Neglect or improper performance of duties, disregard or specifications (breach of operating instructions);

h)Sexual harassment by an employee of a fellow employee or a guest;

i)Failure to report an accident;

j)Failure to report damage to Company property;

k)Actions and behavior detrimental to sound employee relations;

l)Abusive or insulting language or signs including racial abuse;

m)Insolence to supervisors (spoken word);

n)Threatening violence – to do physical injury to employees;

o)Serious cases of poor performance;

p)Self-induced incapacity an being unable to carry out normal duties;

q)Reporting back late after leave;

r)Absence without leave, permission or reasonable excuse;

s)Willful abuse or misuse of company or guest property;

t)Engaging in unauthorized private work while on duty;

u)Making false report either verbally or in writing and/unauthorized alterations on any Company document or any other official document;

v)Transport unauthorized passengers, parcels or equipment in a Company vehicle;

w)Misuse or abuse of position of authority or trust;

An offence in this category should be subject to the following actions: -

1st offence – Final written warning;

2nd offence – Disciplinary hearing and possible dismissal

GROUP 4 – WRITTEN WARNING

a)Failure to perform work satisfactorily or obtain reasonable production (laziness);

b)Failure to report for overtime work without a valid excuse when requested to do so;

c)Unauthorized use or misuse of Company property;

d)Leaving the work place without authorization;

e)Substantial inaccuracies on official documents especially those relating to figures;

f)Creating or contributing to unhygienic, unsanitary, poor housekeeping conditions;

g)Failure to obey Company/departmental safety rules and regulations;

h)Insubordination towards a superior shown by demeanor, actions or language;

i)Sleeping on duty;

j)Smocking in a prohibited area;

k)Negligently damaging or losing items or uniform and/or equivalent of the company;

l)Failure to care for or wear uniform as prescribed;

m)Failure to timely report damage to company or guest property;

n)Unauthorized deviation from predetermined routes whilst driving a company vehicle;

o)Influencing any company driver to deviate from predetermined routes whilst being a passenger or not;

p)Failure to immediately report information regarding any person or group of persons who are about to or have committed a dismissible offence or breach of disciplinary code.

For offences in this category the steps outlined hereunder will be taken: -

-1st offence – 1st written warning

-2nd offence – 2nd written warning

-3rd offence - Final written warning

-4th offence – Disciplinary hearing and possible dismissal

GROUP 5 – VERBAL WARNING

a)Using the incorrect entrances/exists designated by the Management;

b)Loitering in other department/working areas during working hours;

c)Bad timekeeping – late for work with no reasonable cause – leaving work early;

d)Extending tea/lunch breaks without permission;

e)Bringing unauthorized visitors onto Company premises;

f)Improper dressing whilst on duty.

If an employee commits an offence in this category, the following steps should be taken:

-1st offence – verbal warning

-2nd offence - first written warning

-3rd offence – second written warning

-4th Offence – Final written warning

-5th Offence – possible dismissal after disciplinary hearing.

The categories are not intended to be exhaustive. Any other form of misconduct which can be construed as a detrimental to efficient running of the Company and the welfare of its employees will be subject to discipline and management shall have discretion as the nature of penalty to impose.

It must be appreciated that each case must be judged upon its merits. This plan details maximum sentence that can be given for each offence. The suggested penalties are not intended to be prescriptive. Each offence and the applicable penalty shall be determined by the facts and the circumstances of the case. The penalties are merely guidelines and are in no way exhaustive of all possible disciplinary offences that may occur.

4.0.SANCTIONS

Any employee who would have done any of the acts outlined above and any act allied to or in furtherance of the above shall be deemed to be guilty of committing an offence and the Company in its sole discretion may take any one or more of the following courses depending on the circumstances of the case:

a)Counsel the employee if this will be appropriate way of handling the commission of the offence;

b)Issue a written or reprimand i.e. issue a first or second warning whichever is applicable;

c)Impose a penalty i.e. withholding an increment in a case where there is failure by an employee to perform his duties to the required standard without any acceptable reason(s);

d)Demote the employee to a lower grade;

e)Terminate the service of the employee;

f)Dismiss the employee from (the) Company service.

Where the company is considering action under sub-paragraphs b, c, d, e and f above, the employee shall be informed of the company’s position, given the particulars of the offence being alleged and be given an opportunity of making such representation as he wishes, either orally or in writing.

5.0WARNING EXPIRY PERIOD

All warnings, whether verbal, written or final will be valid for up to a maximum of 12 months depending on the degree of the offence.

All written warnings will be signed by the employee and a copy forwarded to the Human Resource Department. If, however an employee refuses to sign a letter of warning the letter will stand as issued with the copy giving reasons or circumstances for the employee’s refusal to sign and the details forwarded to Human Resources Manager.

6.0DISCIPLINARY PROCEDURE

A disciplinary procedure is intended to ensure that the management function to implement and maintain discipline is exercised in a fair, consistent and transparent manner at all times throughout the company to protect the interests of both the employer and the employee.

For a disciplinary procedure to be fair and effective it should have the following:

a)Should be in writing and should specify the levels of management which have the authority to take various forms of disciplinary action;

b)Should provide for hearings during which the employee should be given an opportunity to defend himself against the allegations made before the sanction is meted out;

c)Should give the employee an opportunity to be assisted by a representative of his choice in an individual grievance or disciplinary matter;

d)Ensure that formal disciplinary action is not taken until the case has been carefully investigated;

e)Ensure that employees are given reasons for any penalty imposed;

f)Provide a right of appeal and specify the procedure to be followed.

7.0THE DISCIPLINARY COMMITTEE

The disciplinary committee consists of those people who have a role to play during the enquiry. Before the committee sits, it is prudent to ensure that the committee is correctly constituted and knows the role and function of each member.

7.1COMPOSITION OF COMMITTEE

Without being prescriptive, a disciplinary committee may consist of the following:

a)Chairperson

Management shall appoint a chairperson to preside over the proceeding and he shall be such a person who has no personal interest in the outcome of the hearing;

b)Other members of the Committee

The Committee shall consist of such other members as may be appointed by Management.

c)Secretary

The secretary shall be appointed to take down minutes. Usually this person should not take part in the decision-making process of coming up with a verdict.

d)Interpreter

If need be, a competent interpreter shall be engaged. This person should not take part in the decision-making process of coming up with a verdict.

In addition to members of the Committee and the secretary, the following shall be entitled to appear before the Committee:

(i)Initiator

This person is the complainant and usually be the manager of the alleged offender who should present the case on behalf of Management;

(ii)Employee Representative

The alleged offender may present his case himself and/or may nominate any person of his/her own choice to represent him. This person can be a fellow employee or a member of BHL trade union. His/her main purpose is to assist alleged offender in the presentation of his case.

7.2SOME IMPORTANT NOTES FOR THE CHAIRPERSON

a)Identify each person attending the enquiry and establish his/her designation or purpose of attendance;

b)Ensure that the hearing is held free from disturbance and keep the proceedings brief and to the point;

c)Keep firm control over the proceedings and the parties/people involved;

d)Have all statements and questions addressed to and through you;

e)Remain objective, cool, open minded and enquiring;

f)Make brief written notes of all the salient/ relevant points of evidence

g)Ask any questions at any stage of the enquiry;

h)Allow the accused Employee to cross examine the complainant and any witnesses.

8.0THE DISCIPLINARY HEARING PROCEEDINGS

The procedure of disciplinary hearing should be followed in all cases of gross misconduct. The proper conduct of disciplinary hearings is very important. Provided the rules are followed, justice will be done, will be seen to be done and the hearing will meet the legal requirements of procedural fairness. It is important to always remember that the purpose/objective of a disciplinary hearing is to find out if a person is guilty or innocent.

To ensure that a fair hearing takes place, the following steps should be followed:

a)Ensure that the hearing committee has been correctly and/or properly constituted;

b)Ensure that the employee has been given reasonable (written) notice of hearing and the reasons for it to allow him to prepare for that hearing and inform him of his right to bring a witness. To ensure fairness, it is recommended that notice should not be less than 48 hours.

c)Ensure that the offence is stated in specific terms so that the employee is fully aware of the charge(s) laid against him. On the hearing day, if the charge is not understood adjourn the hearing to another reasonable date to afford the allege offender time to prepare his defense;

d)Read the alleged offence(s) to the employee, and ask if he admits, to them. If he does, review the circumstances and ignore items e, f and g;

e)If he denies the charge(s) call for witness(es) and/or evidence;

f)Give the employee an opportunity to examine or challenge the evidence against him (cross-examination of management’s witness), state his case and call witness (es). Witnesses must be called to give evidence singly;

g)The chairman of the commission should satisfy himself that on the clear balance or probability, the offence is proven or not proven.

Note:in dismissal cases it may be desirable to submit the record of the hearing to a nominated senior manager for vetting before announcing the verdict.

h)Inform the employee of the finding and inform him of the right to appeal.

If the employee is found guilty:

(i)Consider previous warnings (if any);

(ii)Consider any mitigating factors e.g. long service, past conduct etc.;

(iii) Consider any past cases (precedents) on similar or related facts;

(iv) Decide upon the penalty;

(v)Inform the employee the penalty, and inform the employee of the right to how to appeal, to whom and by when.

(vi) If the decision to issue a written warning request the Employee to sign the warning form/letter. If he refuses, note that fact on the form/letter and have the form/letter signed by a witness.

DISCIPLINARY STAGES

The type of disciplinary stages which the company may take to correct any breach of acceptable behavior and performance are as follows: -

Stage 1 – Counselling

This action is taken for minor transgressions, when it is believed as per philosophy of correcting behavior that counselling would be the most appropriate way of handling the transgression. This action goes along with verbal warning.

Counseling will take place on an informal basis between the Supervisor/Manager, employee and his representative (if any). A record will be kept on the employees’ personal file for counselling done.

Stage 2 – Written Warning

If counselling is considered inappropriate or has not had the desired effect the Manger shall make it clear to the employee who has committed the offence that he is issuing a written warning. With this stage management is allowed to repeat action i.e. first written warning followed by a second written warning. However, management has the right to invoke Stage 3 without having issued a second warning.

At a meeting of the parties to the case the issuer of the warning shall advise the employee of the charge(es) against him give him a reasonable opportunity to be heard and/or call witnesses if he so wishes. If, thereafter, the supervisor/manager is satisfied that the written warning is appropriate, he shall record on the warning from an exact account of the charge and particulars and whether it is first or second warning. The supervisor/manager should ensure that that the employee signs the warning form and that he is given a copy of that written warning and finally send a copy of the same and statement form (in account of the offence) for filing in the personal file of the employee concerned.

Should the employee wish to challenge the fairness of the penalty, he/she should lodge an appeal in accordance with Stage 5 hereof.

Stage 3 – Final Written Warning by Manager

If the employee’s conduct has still not changed/improved in a case where Stage 2 had been implemented a final written warning is recommendable. This step is also applicable to an offence which requires stronger action than a written warning but falls short a dismissal. This step is to be done by the Manager. The Manager shall investigate the matter, call a meeting of the employee and his representative (if any) and allow the employee a fair and reasonable opportunity to be heard.

If disciplinary action is to be taken, a formal hearing (as per Stage 4) shall be established.

Ensure that the employee signs the final written warning and that he is given a copy of the said warning and finally send a copy of that warning together with a statement form for filing in the personal file of the employee concerned.

If the employee is not satisfied with fairness of the penalty, he/she should lodge an appeal in accordance with Stage 5 hereof.

Stage 4 – Termination of Service of Dismissal

If the employee’s conduct has not satisfactorily improved within the time allowed for improvement after the final written warning or if misconduct is sufficiently (glossily) serious, termination of service or dismissal is permissible, provided that the employee shall be given an opportunity to defend himself before such termination or dismissal.

If termination of service or dismissal is recommended after the hearing the Chairperson of the panel shall refer/consult with the General Manager. The General Manager shall either approve, reject or vary the disciplinary penalty recommended, and the employee shall be informed of the verdict.

Should the employee wish to challenge the fairness of the penalty, he should lodge an appeal in accordance with Stage 5 hereof.

Stage 5 - Appeals

All appeals against disciplinary action(s) should be heard and dealt with in accordance with the procedure detailed below:

a)Should an employee feel that a written warning or final written or dismissal or termination has for any reason been unfairly issued, he shall be entitled to appeal against the disciplinary sanction imposed (either the verdict or the severity) to the General Manager.

Should an employee after the review be found to have been unfairly dismissed, he should be reinstated and shall have the right to continuous service, full back pay and any benefits accrued up date of such reinstatement.

Without being exhaustive, an employee has a right to appeal in writing within seven days from the date of the decision on one of the following grounds:

a)That insufficient evidence was submitted to prove that he was, on a balance a probability guilty of the offence;

b)That the sanction imposed was too severe having regard to the particular circumstances of the case;

c)That there was new evidence which became available but was not considered at the enquiry;

d)Lack of sufficient time to prepare for the hearing;

e)Not having been granted a right to representation;

f)Not having been granted a right to cross-examination of witnesses for management/company;

g)Not having been granted the right to a hearing; etc.

SUSPENSION

When Management alleges or where reasonable grounds exist to suspect that an employee has committed a serious offence, the necessity to suspend the employee deserves consideration.

Suspension is usually an action taken by arrangement prior to an enquiry and must therefore be implemented with caution for the following reasons:

a)As the Company suspends the duration of the suspension must be considered. A long-protracted suspension can have serious financial implications for company/suspended employee;

b)It may be seen as a foregone conclusion of dismissal if not sensitively handled.

REASONS FOR SUSPENSION

The following are the main reasons for suspending an employee:

a)To afford management the necessary time to fully investigate the matter without possible adverse interference by interested parties;

b)To avoid possible intimidation of witnesses and/or other employees by interested parties;

c)To avoid possible destruction of documents or other relevant evidence by interested parties;

d)To neutralize the alleged offender pending investigations and/or disciplinary enquiry.

WHEN TO SUSPEND

An employee should only be suspended in serious cases e.g. alleged theft, fraud, assault with intent to commit grievous bodily harm, gross negligence etc.

APPENDIX 14 GRIEVANCE PROCEDURE

It is important that every effort is made to resolve all complaints/problems as soon as possible. All employees should feel free to submit with absolute assurance that their position in the Company will not be prejudiced and that they will not be victimized.

1.PURPOSE

a.The purpose of this Grievance Procedure is to ensure that grievances are considered and resolved as close as possible to the point of origin and as expeditiously as practicable. It also ensures that there are official/formal channels for consultations where matters/issues have developed into grievance;

b.The responsibility for resolution of grievances subject to the steps set out below shall be vested in line management;

c.The Company and the employee lodging the grievance may agree to waive the stages and time limits stated in this Grievance Procedure so that the grievance may be resolved quickly;

d.Employees and their representatives will not be prejudiced in their conditions of employment as a consequence of lodging or handling a grievance;

e.An employee and his/her representatives shall not incur a loss of wages in respect of time spent at any meetings arranged to resolve a grievance in terms of this grievance procedure. Permission to attend such meetings should be obtained from the immediate supervisor/superior. Such permission shall not be unreasonably withheld;

f.A grievance must be lodged by an employee within three (3) days of occurrence which gave rise to it.

2.STAGES OF PROCEDURE FOR A GRIEVANCE OF A SINGLE EMPLOYEE

Stage 1: Immediate Supervisor

The employee shall first raise the grievance with his/her immediate supervisor.

Stage 2: Immediate Supervisor and Representative

If the immediate supervisor is unable to respond to the grievance within forty-eight (48) hours of it having been lodged with him/her, the employee now assisted by his/her representative shall refer the matter back to the supervisor. The supervisor shall then have a further forty-eight (48) hours in which to resolve the grievance. If the matter is not resolved to the satisfaction of the employee, he/she shall proceed to Stage 3.

Stage 3: Manager

The Manager shall take the necessary steps to resolve the grievance and shall convene a meeting within two (2) days at which the employee concerned, his/her representative and the supervisor shall be present. He/she shall attempt to resolve it within two (2) days of the grievance having been reported to him/her.

If the grievance is not resolved within two (2) day period and should the employee wish to take the grievance further, then the employee shall proceed to Stage 4.

Stage 4: General Manager

A meeting shall be convened within three (3) days of the Company having been requested to do so. A Company General Manager or his/her nominee will then review all the facts and evidence then communicate their decision to the employee.

If the grievance is not resolved and should the employee still wish to take the grievance further, then the employee shall proceed to Stage 5 through the responsible General Manager.

Stage 5: Executive Management

Executive Management shall convene a meeting within three (3) days of having been requested to do so. Executive Management shall then review all the facts and evidence and make a final decision. No appeal will be entertained against the decision of Executive Management.

If a member of the executive management has a grievance, then he/she shall raise the grievance with the Chairperson of the Appointment and Remuneration Committee of the Board who shall convene the meeting within 7 days.

3.PROCEDURE FOR GRIEVANCE HANDLING OF A GROUP OF EMPLOYEES

If the grievance affects or is common to a group of employees, the employees concerned may consult their representative(s).

The representative(s) shall then follow the procedure detailed in Stages 1 to 5 accompanied, if necessary, by a delegation of no more than three (3) employees.

Under no circumstances shall a group of employees stop their work in order to lodge a grievance. Only the representatives of the group may raise a grievance during working hours.

No action shall be taken on grievances expressed through anonymous (unsigned) letters.

4.GRIEVANCE CONCERNING AN EMPLOYEE’S IMMEDIATE SUPERVISOR

When an employee alleges that a grievance has arisen out of the act of his/her immediate supervisor or manager, the grievance may be lodged immediately with the next level of management.

Once this procedure has been exhausted, the employee(s) have the right to utilize, and must comply with the Labour Relations Act in an effort to resolve the disputed grievances.

5.ROLES OF PARTICIPANTS IN THE GRIEVANCE PROCEDURE

5.1.AGGRIEVED EMPLOYEE

The Aggrieved Employee:

a)Must always in the first instance try to settle his/her grievance with the supervisor on an informal basis (except where the grievance involves the immediate supervisor, in which case the employee must raise it directly with the supervisor’s senior);

b)May seek the assistance of his/her representative, if he/she so desires, as laid down in the procedure.

5.2.SUPERVISOR/MANAGER/GENERAL MANAGER

The appropriate Supervisor/Manager/General Manager

a)Ascertain the nature of the grievance;

b)Investigate and clarify the grievance by distinguishing facts from opinions;

c)Consult with a Human Resource office about the grievance;

d)Decide on the action to be taken;

e)Communicate the decision to the employee (in the presence of the employee’s representative, (if any)).

5.3.EMPLOYEE REPRESENTATIVE

The representative shall assist the aggrieved employee by:

a)Listening to his/her complaint;

b)Asking the employee what solution he/she desires;

c)Asking questions for clarification of the grievance – and making notes of relevant facts;

d)Where possible, obtaining additional information from the employee’s witnesses;

e)Advising the aggrieved employee if the grievance is not covered by Company policy, rules and practices;

f)Advising the aggrieved employee, if need be, on how the grievance procedure works;

g)Accompanying the employee to the supervisor, if the aggrieved employee wishes;

h)Acting as witness in the process of settling the grievance;

i)Trying to resolve grievances amongst employees.