Kingdom of Saudi Arabia

Employee handbook

1

Table of contents Page 4

: Introduction

Page 5

: Code of Conduct

Page 7

: Initial stay and Pick-up

Page 7

: Residence Permit (Iqama) & Work permit

Page 8

: Medical Examination

Page 8

: Work Contract

Page 8

: Probation

Page 9

: Attendance

Page 9

: Working Hours, Leave & Vacations

Page 12

: Annual Vacation

Page 12

: Overtime

Page 13

: Bank Account

Page 13

: Pay Day

Page 13

: Medical Assistance

Page 13

: Workplace Attire

Page 13

: Company Car

Page 14

: Transfers & Promotions

2

Table of Contents (cont.) Page 14

: General Organization For Social Insurance (GOSI)

Page 14

: Bonus

Page 14

: Termination of Work Contract

Page 15

: Resignation

Page 17

: Employee Terminal Benefit (ETB)

Page 18

: Who is doing what in Administration Department

Page 19

: Personal Emergency procedure

Page 19

: Accidents

Appendix I

: About Binzagr co. & Binzagr Factory for Insulation Materials (bfim)

Appendix II

: Basic information on the Kingdom of Saudi Arabia

Appendix III : Organogram

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The Management of Binzagr Factory for Insulation Materials

(bfim)

welcomes all Employees to our Company.

The Company has prepared this handbook for all Employees recruited to provide them with basic information on the Kingdom and to clarify the policies in relation to provisions of the Labor Law, the regulations & decisions.

The Company hopes this handbook will realize its objectives, to provide answers to Employees questions and make them understand about Work Environment/Policies/Practices in the company.

The Management wishes all Employees a successful work period.

Peter Alink (General Manager)

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Code of Conduct: The Labor Law in Saudi Arabia is a balanced law that regulates all aspects of labour relations between workers and Employees and applicable to all Saudi and Non-Saudi workers without discrimination. Respecting the laws and compliance with their provisions enhances labour relations stability and acts as a key for progress and development. Upon this concept the Company issued this handbook for Employees. We advise Employees, particularly, to abide with the code of conduct as below: 1. It will be the moral duty of every Employee to display proper conduct while in the Company and any act within the preview of misconduct will be inviting disciplinary enquiry. 2. No Employee shall bring any illegal substances into the work place. Anyone found in possession of, or consumes such substances shall be subject to the punishments of the law. bfim is a smoke free zone and smoking is permitted outside the premises of the Company 3. The Employee will be working in accordance with trade practices and Company instructions as per the contract, the law and to the effect that it does not expose him to any undue hazards. 4. The Employee should take adequate care of the Company’s machinery, tools, supplies and raw materials placed at his disposal and return to the Company the unused materials. 5. The Employee should undergo upon Company requests, the medical examination prior to or during employment to ensure he is free from occupational or communicable diseases.

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6. Employee should keep confidential the technical, trade and industrial secrets of the products, work, and the disclosure of which can damage the Company’s interests. 7. An Employee may not be subject to disciplinary proceedings for an act committed outside the workplace unless the act is related to the job or the Company. However he will be answerable to government authorities for breaking any law. 8. As per article(66) of labor law, the Company may inflict on the Employee: a) Warnings b) Fines c) Withholding increment not exceeding one year d) Postponement of Promotion not exceeding one year e) Suspension from work and withholding of wages f) Dismissal from work in cases set forth by the law.

9. The Employee shall dedicate himself exclusively for working for the Company and shall not perform any other work other than his for any other Employer for or without a wage job. 10. The Employee shall not use the Company’s equipment and tools for his personal purposes.

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Initial stay & Pick-up: Employees arriving from overseas will be picked up by an arrangement made by the Recruitment Manager. No Employee is permitted to pick-up any new Employee even if his friend/relative. The Company either provides accommodation or the housing assistance allowance. For non Saudi Employees arriving in the kingdom the Company will provide stay in camps or stay in hotel as per the location of work/position of Employee. In case of stay in hotel the Company will provide accommodation for 14 nights at the rate of housing assistance per day and any stay thereon will be borne by Employee on actual room rate. For grade 8 and above, the Company will provide 6 month of housing assistance allowance if he pays in advance to be renewed after another such period. In this case the housing allowance will be recovered from the Employee’s salary every month. The Company may assist the Employee for finding up a place of stay however it will not be bound or responsible for the same. The Company may provide pick-up and drop arrangement for some initial days. Residence Permit (Iqama) & Work Permit: 1-

The Company shall issue residence permit (Iqama) & work permit for the non Saudi Employees recruited within 30 days from the date of his arrival in the Kingdom.

2-

A work permit shall be issued for two years and shall be renewable for a similar period under the consent of the Employer and the Employee both.

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3-

All Employees must keep their residence permit (Iqama) during their travel within the Kingdom and if required to show it to the concerned government bodies (including labor office officials and police).

4-

The passport of Employee (except management staff) will be kept safely with the Company and when required by Employee for travel purpose will be handed over to him.

Medical Examination: The Employee should be medically fit for the work for which he is recruited and free from any disease under a medical certificate rendered from a competent medical body in the Kingdom in accordance with the instructions issued in this respect. Work Contract: 1-

Every Employee shall sign a work contract with the Company. This contract shall be written in dual language (Arabic & English) knowing that the Arabic text will prevail in case of dispute.

2-

The Employee shall receive a copy of his work contract to hold it during all the period of his work in the Company.

3-

A work contract shall include the date of work commencement, place and period of work, salary, allowances and the Employee's job.

Probation: The first three months of employment will be considered as probationary period during which an Employee will have to prove himself fit for the job. During this period either party may terminate this contract. If the contract were so terminated by the Employer, then the Employee will be entitled to a single economy class air ticket back to his base airport mentioned in contract.

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The Employee will not be entitled to payment in lieu of prorated leave or to any payment in lieu of notice. Attendance: All Site Employees will have to sign against their names for attendance on every working day. For grade 8 and above, no signatures are required however the Supervisor will keep track of the same and inform Administration department in case of leave. Working hours, Leave & Vacations: 1-

The Employees are required to put in at least 48 hours per week of actual work for 6 days in a week. The time of an Employee's movement from his residence to the work place, periods of rest and prayers shall not be computed in working hours. During the month of Ramadan, the actual working hours for Muslims shall be reduced to a maximum of 36 hours a week.

2-

Friday shall be the weekly rest day for all Employees at full pay.

3-

Thursday shall be a half day ending the office time at 1.00 pm for staff in office locations excluding project sites. However every Employee should ensure atleast 48 hours of work per week (excluding overtime).

4-

An Employee whose illness has been proven shall be eligible for a paid sick leave for the first 30 days, three quarters of wage for the next 60 days and without pay for the next 30 days during a single year, whether such leaves are continuous or intermittent. A single year shall mean the year which begins from the date of the first sick leave.

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5-

An Employee shall be entitled to other paid leaves as follows: •

An Employee shall be entitled to 1 day paid leave in case of Childbirth and 3 days for Marriage or in the case of death of a Spouse or one of his Ascendants and Descendants.

•

An Employee shall be entitled to a paid leave of 4 days for Eid Al Fitre following the 29th Ramadan. If a Friday comes in between this period then the Employee will not get an addition 1 day paid leave.

•

An Employee shall be entitled to a paid leave of 4 days for Eid AlAdha

holiday beginning from 9 Dhu Al Hijjah. If a Friday comes in

between this period then the Employee will not get an addition 1 day paid leave. • An Employee will be entitled to perform Hajj only once during his service if he has not performed it before. He will be entitled to not more than 11 days of paid leave (including 4 paid days for Eid Al Adha). To be eligible for this paid leave, the Employee must have spent 2 consecutive years of service with the Company. • 23rd September (National Day of Saudi Arabia) will be a Company holiday. If this day is Friday then the Employees will be entitled to an off day either before or after this day. The Company may be operational on 23rd September and here Employees present on that day will be entitled to 150% in addition of their basic on that day. However if an Employee does not attend work and is on leave/absent then he will be entitled to 100% basic as wages (like any ordinary day).

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Emergency leave: 1. Emergency leave can only be availed for a maximum of 10 days. This leave will be of unpaid nature; however the Housing allowance will be paid for these 10 days only. If the employee does not return within the 10 days period, any subsequent period will be treated as absence during which Housing allowance will not be payable. The cost of travel & visa charges will be borne by the employee. 2. The employee terminal benefits (ETB) will also be deferred by the number of days availed in emergency leave over 10 days. 3. Emergency leave may be availed for the reasons like death or serious illness in the family (Father/Mother/Wife/Son/Daughter) or essential family business of an urgent nature which demands Employee’s presence. Examination leave: 1. A Saudi Employee enrolled in an Educational Institution shall be paid full leave for an examination of an unrepeated year. Days of leave shall be based on the actual number of examination days. However for the examinations of a repeated year, the Employee shall be entitled to unpaid leave to sit for examinations.

2. The Employee will have to submit leave application as well as proof of having taken the examination. The Employee shall be denied the wage if it is proven that he had not taken the examination.

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Annual Vacation: 1. All Employees in Job Grade 8 & above are entitled to 30 days leave after completion of each 12 months service. The accrual of leave is 2.5 per month. They will only be entitled to travel after completing 12 months of service. 2. All Employees in the Job Grade 1-7 are entitled to 21 days leave after completion of each 12 months service. However they will be entitled to travel after completing 24 months only for 42 days. The accrual of leave is 1.75 per month. 3. However if the Employee completes 5 years of continuous service, he becomes entitled to 30 days leave in each 12 months. 4. Application

for

annual

leave

will

be

approved

by

the

Foreman/Supervisor, who will forward to Administration department 6 weeks in advance to do the necessary bookings. The Administration department will ensure that Employee should get his leave salary 10 days in advance. 5. The exit and re-entry visa will be the responsibility of the Company in terms of cost. 6. On return from annual leave Employee will have to complete the duty resuming form approved by his Supervisor and forwarded to Administration department. Overtime: 1. Only Employees in the job grade (1-7) will be entitled to overtime. Employees in grade 8 & above will not be entitled to overtime. 2. On normal working days overtime is paid at 150% of basic rate.

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Bank Account: The Employee is requested to contact the Administration Department for opening the bank account. For non Saudi’s this process would be started once the Iqama has been made otherwise Employee will be paid his salary in cash. Pay Day: Employees hall be paid at the end of the month. If payment day coincides with the weekly rest day or with an official holiday, then payment is made in the preceding working day. Medical Assistance: The Company will provide free health insurance for Employee and his family (in case of family status).This will include Spouse and maximum 2 children (below 18 year).Company will provide health insurance cards to each Employee and his family. Through these cards he may get medical assistance of up to 80% as per entitlement in respective medical categories. Employee will have to pay 20% (subject to SR.100 maximum) in the hospital to be reimbursed by the Company (attaching actual invoices/prescriptions). Workplace Attire: The site Employees will be required to adhere with the uniforms as provided by the Company. All other Employees can dress up in casual business attire on week days and on the weekends in casual attire keeping modesty alive. Company Car: Employees will be provided a Company car if their work necessitates frequent travel on official business purpose. In this case all costs related to procuring the license and training on driving skills will be born by the Company.

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Transfer & Promotions: Employees in the Company have plenty of opportunity for career growth and advancement through transfers and promotions. Expressing an interest in a transfer or promotion to another department/role will not adversely affect a staff member’s employment. GOSI (General Organization for Social Insurance): For non Saudi Employees, 2% of GOSI salary is contributed by the Company towards work related accident benefits only. For Saudi Employees contributions to the scheme are partially funded by the Company and partially by the Employee. Each month 11% of the GOSI salary is contributed by the Company (9% for pension and 2% for work related accident) and 9% contributed by the Employee. Bonus: Every Employee is entitled to participate in bonus scheme determined by the Management of the Company. Termination of Work Contract: 1- A work contract shall terminate in the following cases: • If both parties agree to terminate it, provided that the Employee’s consent be in writing. • If the term specified in the contract expires. • At the discretion of either party in indefinite term contracts with due regard to notice period. • The Employee attains the age of retirement, which is sixty years, unless the two parties agree upon continuing work after this age. • Force Majeure.

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Resignation: If an Employee is resigning, he will be required to do the same in written letter to his Supervisor. Resigning Employee will have to consider his notice period when considering his last day in office i.e. for staff grade 9 & below will be 1 month and 3 months for grade 10 & above. Otherwise the Company will adjust from his leaves accumulated or salary. Once accepted by Line Manager/VP/GM, he will have to send it to the HR Manager along with Employee clearance form for processing his final settlement including ETB, leave salary.

2- The Company may terminate the contract without an award, advance notice or indemnity in the following cases, and provided that it gives the Employee a chance to state his reasons for objecting to the termination: • If, during or by reason of the work, the Employee assaults the Supervisor, the Line Manager or any of his Superiors. • If the Employee fails to perform his essential obligations arising from the work contract, or to obey legitimate orders, or if, in spite of 3 written warnings, he deliberately fails to observe the instructions related to the safety of work and Employee’s as may be posted by the Company in a prominent place. The first warning will be initiated by Supervisor/Line Manager, followed by second warning by VP and lastly by the GM. If the Employee after all these warnings does not show improvement in his essential obligations, then the Company will have no other option but to terminate the work contract. • If it is established that the Employee committed a misconduct or an act infringing on honesty or integrity.

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• If the Employee deliberately commits any act or default with the intent to cause material loss to the Company, provided that the latter shall report the incident to the appropriate authorities within twenty-four hours from being aware of such occurrence. • If the Employee resorts to forgery in order to obtain the job. • If the Employee is found unfit for the job in the probationary period. • If the Employee is absent without a valid reason for more than 20 days in 1 year and or for more than 10 consecutive days provided that the dismissal be preceded by a written warning 10 days in the first case and for 5 days in the second. • If the Employee unlawfully takes advantage of his position for personal gain. • If the Employee discloses work- related industrial or commercial secrets.

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Employee Terminal Benefits (ETB):

1. An Employee has to complete 2 years of his service with the Company to be eligible for a terminal award. However if his services are terminated by the Company during this 2 year period then he would be entitled for the terminal award. 2. For the calculation of terminal award, the terminal salary would include all cash benefits including Housing assistance. If the Employee is provided Company accommodation, then this will be calculated in ETB as (Basic X 2/12).

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Who Is Doing What in Administration Dept?

Function

Responsibility

Bank Accounts

HR Administrator

Insurance (Medical/Vehicle) HRA advance Mobile/Landline

Bills

Master Data Entry Leave/Resignation

HR Administrator

ETB/Tickets Hard Files Hotel Reservations Site Admin Affairs (including Site Administrators TMS)

Camps Affairs

Camp boss

Note: Please approach right person for right function as shown above. Should you still face any problem, do contact HR Manager.

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Personal Emergency procedure In case of any issue with police/government authorities, the following procedure must be observed. 1. Contact your line Manager. Make sure you always carry his contact details with you. 2. The line Manager contacts the HR Department: Action

Responsible Contact no. Government 1st Contact 0500117774 Relations Manager Government 2nd Contact 0506848645 Relations Officer 3. If the line Manager cannot be reached, call the Government Relations Officers/Managers directly. This applies to emergencies after office hours or during holidays.

Accidents In case of hospitalization of Employee during accident, the patient will be sent to a government hospital along with GOSI form completed. The GOSI form is available at all Sites/Camps along with list of GOSI hospitals. The GOSI office is available in the government hospitals. This form is to be filled by PRO of respective site/Government Relations Dept.

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About Binzagr Group of Companies. The house of Binzagr refers to the traditional family residence and provides the generic name for the business activities founded by Mohammed Obaied Binzagr over 125 years ago in the Red Sea port of Jeddah. Trading on the ancient "Spice Route" between Europe and the East, Beit Binzagr prospered. This importing and distribution establishment was the foundation of the present-day Binzagr Company which is now part of the Binzagr organization. More recently Binzagr pioneered the in-Kingdom manufacture of many products previously imported, often in partnership with international companies which were originally suppliers. Long respected in the Kingdom as one of the leading business families and internationally distinguished, the House of Binzagr, Beit Binzagr in Arabic, is today a group of companies with diversified world-wide interest. About bfim Binzagr Factory for Insulation Materials Ltd

(bfim)

was set up in 1980 at

Rahima in Ras Tanura (Eastern Province of Saudi Arabia) to provide an inKingdom facility for fabrication of insulation materials principally to service the requirements of Saudi Aramco and Sabic Industries. It is wholly owned by Wahib,

Faisal,

Mohamed

and

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Abdullah

Binzagr.

In support of the rapid growth of the petro-chemical industry and continuing expansion of the Saudi Aramco, bfim has extended its activities to provide comprehensive maintenance of installed thermal insulation, fire-proofing, refractories, scaffolding and turn-key contracts for the insulation and fire-proofing of petro-chemical plants, oil refineries, gas plants and tank farms. Backed by long-term exclusive relationships with internationally renowned suppliers - Pittsburgh Corning, Pabco Insulation, Lapinus Rockwool, Childers Products, RPR and Foster Products - bfim has developed specialist expertise in hot, cold and acoustic insulation. It offers a complete package for any type of insulation requirement - technical assistance, materials, fabrication and on-time installation.

The trading division BITCO (Binzagr international trading company) is a typical manufacturer representative and trading company in that it acts as the legal representative within the kingdom. It promotes and sells technology based products mainly to oil, gas, energy and petrochemical industries in the kingdom. In addition BITCO supports the installed base of these products by offering after sales services including strategic spares supply management contracts, systems commissioning; post delivery installations services and long term maintenance contracts for their client base. For more information you can refer to: www.binzagr.com www.binzagr-industrial.com

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Basic information on the Kingdom of Saudi Arabia

The Kingdom of Saudi Arabia consists of thirteen regions: Riyadh Region, Makkah Region, the Eastern Region, Madinah Region, Qassim Region, Aseer Region, Jazan Region, Najran Region, Tabuk Region, the Northern Frontiers Region, Hail Region, Baha Region & Jauf Region.

Capital

: Riyadh

Population

: 22.6 millions

Religion

: Islam

Language

: Arabic

National day

: 23 September

Currency

: Saudi Riyal (100 halalas); 1 US$= SR 3.75 (subject to change)

The Kingdom applies free market economy and opens the door for workers from all nationalities without restrictions after they satisfy health, occupational, educational and training requirements. Employers have liberty to recruit workers from all over the world in accordance with the provisions of the Labor Law, the regulations & decisions rendered on its implementation and the other relevant laws applicable in the Kingdom.

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About the King: In August, 2005, Abdullah bin Abdul Aziz, formerly Crown Prince, became the sixth King of Saudi Arabia, Custodian of the Two Holy Mosques and Prime Minister. He remained head of the Kingdom's National Guard which he has commanded since 1962. Born in Riyadh in 1924, he was given a formal religious education. Throughout his long public life, HRH Crown Prince Abdullah has exerted a major influence on both the domestic and foreign policy of the Kingdom. King Abdullah has added to his early education at the royal court with extensive reading of history, politics and social affairs. His years spent with the Bedouin in the desert reinforced in him the traditional Bedouin values of honor, generosity, simplicity and courage. Government: Type: Monarchy with Council of Ministers and Consultative Council. Unification: September 23, 1932. Constitution: The Holy Qur'an (Governed according to Islamic Law), Shari’a, and the Basic Law. Branches: Executive: King (chief of state and head of government). Legislature: a Consultative Council with advisory powers was formed September 1993. Judiciary: Supreme Council of Justice, Islamic Courts of First Instance and Appeals. Administrative divisions: 13 provinces. Political parties: None http://www.info.gov.sa/portals/Kingdom/index.htm

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The Two Holy Mosques: The Holy Mosque in Makkah is the most revered place of worship for Muslims around the world. At the center of the Mosque is the Ka'aba, which literally means 'cube' in Arabic. All Muslims are required to face in the direction of the Ka'aba five times every day when offering their prayers. Muslims believe that the Ka'aba, constructed of stone blocks, was originally built by Prophet Abraham and his son Ishmail. Many believe it was erected on the original site of a sanctuary established by the first Prophet, Adam. Embedded in the corner of the structure is the Black Stone, a meteorite used by Abraham as a foundation stone. This stone, although respected as the only surviving object from the original building, has never been worshipped and has no special sanctity or power. The Prophet's Mosque in Madinah is the second most revered place of worship for Muslims around the world. Millions of Muslims visit the Mosque each year, to worship, to visit the Prophet's grave, and to see the city that gave birth to Islam. This pilgrimage is not mandatory as is the one to Makkah, but nevertheless popular. It is important to remember, however, that a visit to the Prophet's grave is not in any way to worship or revere him, but to commemorate his role as God's messenger, and to remind Muslims of his mortality and humanity. The Prophet's Mosque was the first institution to be built following Prophet Muhammad's migration in 622 AD from Makkah, where he was born, to the town of Yathrib, which became known as 'Al-Madinah an-Nabi", or 'City of the Prophet', and is today simply Madinah. http://www.info.gov.sa/portals/Kingdom/index.htm

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Industrial cities (Jubail and Yanbu): Jubail and Yanbu constitute a unique experiment in development which has proved outstandingly successful. These are two cities which were conceived on the drawing board and were planned to provide a purpose-built and highly efficient environment for modern industrial production. These industrial complexes, built at Jubail on the Arabian Gulf and Yanbu on the Red Sea by the Royal Commission for Jubail and Yanbu, are the key to the Kingdom's national industrialization plans. These two industrial cities provide the basis for the Kingdom's program to develop hydrocarbon-based and energy intensive industries. The massive investment in these industrial cities has as its major objective a reduction in the Kingdom's dependence on oil revenues by gaining access to the world's petrochemical markets. This route to industrialization exploits the Kingdom's natural advantages, in terms of cheap energy and cheap raw materials for petrochemical manufacture. http://www.info.gov.sa/portals/Kingdom/index.htm

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