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Human Resource Manual of Atlas Honda Ltd, Pakistan Paper

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Atlas Honda Limited Karachi Plant F-36 Estate Avenue, S. I. T. E, Karachi Tel : (021) 2575561-5 UAN: 111-111-245 Fax : (021) 2563758 Sheikhupura Plant 26-27 Km, Lahore Sheikhupura Road, Sheikhupura,Lahore Tel : (0563) 406501-5 UAN: (0563) 111-111-245 Fax : (0563) 406009 INTRODUCTION Atlas Honda Limited (AHL) is a constituent member of Atlas Group. AHL has its registered office at 1-Mcleod Road, Lahore. AHL has two plants at Karachi and Sheikhupura. AHL is engaged in manufacturing of 4 stroke Honda Motorcycles in Pakistan.

Currently AHL produces Honda CD70, CD100, CG125 and CG125 Deluxe at Karachi and Sheikhupura plants. AHL has annual production capacity of 500,000/= motorcycles per annum. FUNCTIONS Engineering & Projects Finance Human Resource & Administration Information Technology Marketing Production Quality Assurance Research & Development Supply Chain MANAGEMENT COMMITTEE MEMBERS Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Saquib H. Shirazi Nurul Hoda O. Ishikawa Raffat Iqbal Suhail Ahmed M. Amir Awan Khalid Aziz M.

Mushtaq Alam Sultan Ahmed Jawaid Iqbal Afghani Amir Ali Bawa T. Kitamura President/Chief Executive Vice President Vice President Technical General Manager Human Resource & Administration General Manager Finance General Manager Engineering & Projects General Manager Plants General Manager Information Technology General Manager Quality Assurance General Manager Marketing General Manager Commercial & Planning General Manager Research & Development VISION Market leader in the motorcycle industry, emerging as a globally competitive centre of production and exports. MISSION

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A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects. STRATEGIC GOALS Customers

Our customers are the reason and the source of our business. It is our joint aim with our dealers to ensure that our customers enjoy the highest level of satisfaction from use of Honda Motorcycles. Quality To ensure that our products and services meet the set standards of excellence. Local Manufacturing To be the industry leader in indigenization of motorcycle parts. Technology To develop and maintain distinct business advantages through continuous induction of improved hard and soft technologies. Shareholders To ensure health and viability of business and thus safeguarding shareholders interest by maximizing profit.

Payment of regular satisfactory dividends and adding value to the shares. Employees To enhance and continuously up-date each member’s capabilities and education and to provide an environment which encourages practical expression of the individual potential in goal directed team efforts and compensate them attractively according to their abilities and performance. Corporate Citizen To comply with all government laws and regulations, to maintain a high standard of ethics in all operations and to act as a responsible member of the community.

CODE OF ETHICS
• Atlas Honda Limited (AHL) conducts its operations with honesty, integrity and openness, and with respect for human rights and interests of the employees. It respects the legitimate interests of all those with whom it has relationships. AHL is committed to comply with the laws and regulations of Pakistan. AHL is committed to create the working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company.

AHL is equal opportunity employer which recruits, employs and promotes employees on the sole basis of the qualifications and abilities needed for the work to be performed. AHL is committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labor. AHL is committed to provide branded products and services, which consistently offer value in terms of price and quality. Products and services will be accurately and properly labeled, advertised and communicated.

AHL conducts its operations in accordance with principles of good corporate governance. It provides timely, regular and reliable information of its activities, structure, financial situation and performance to all the shareholders. AHL is committed to establish mutually beneficial relations with its suppliers, customers and business partners. AHL strives to be a trusted corporate citizen and, as an integral part of society, fulfills its responsibilities to the societies and communities in which it operates. AHL is committed to make continuous improvements In the management of environmental impact.

It works in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. AHL make innovations to meet consumer needs. It respects the concerns of consumers and of society. It works on the basis of sound research, applying high quality standards. AHL believes in fair competition and supports development of appropriate competition laws. AHL and employees conduct their operations in accordance with the principles of fair competition and all applicable regulations.

Compliance with business principles is an essential element. The Board of Directors of AHL is responsible for ensuring that these principles are communicated to, and understood and observed by, all employees. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by Audit Committee of the Board. The Board of AHL expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles.
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• • HR PHILOSOPHY

The AHL Human Resource Philosophy is based on the conviction that the well being of the company and the well being of its people are one and the same. The company is dedicated to the belief that its most valued asset is its people. Our commitment is to employ on the basis of Merit, Intellect, Integrity and Character to ensure that every employee is treated with dignity and respect and in a fair consistent and equitable manner; to create a stimulating and supportive atmosphere in which they may work; and to aid and encourage them in the realization of their full potential.

We recognize that the success of this philosophy depends in the large measure on the manner in which employee’s at every level carry out their obligations to each other and to the Company. Our philosophy will not work if employees do not have a feeling of mutual confidence and loyalty, as well as respect of each other as human being. In the same context of obligations and mutual trust and confidence, all employees are expected to maintain certain standard in relation to their work, and in representing themselves as employees of AHL.

Employees of AHL must be committed to the following principles:
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• Accept total responsibility for the success of the Company’s HR philosophy, policies and programs. Have through knowledge of the Company’s HR philosophy and programs, and review them with subordinates to ensure their total understanding. Ensure consistent and fair interpretation of personnel policies. Exercise leadership by demonstrating integrity, professional knowledge, the courage of their convictions, and concern for the feeling of others.

Establish a relationship with subordinates that encourage a free flow of information in both directions, permit open discussion of differing views and allow decision making at the most appropriate level. Accept and support decisions made contrary to their expressed positions. Apply the highest standards of ethics, integrity and honesty. Comply with Company policies and procedures.
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• HR MISSION
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• To inculcate organizational culture which supports optimum performance. Encourage the employees to analyze and evaluate his/her own performance in a realistic manner.

Be friendly and supportive to the employees of the company and make them feel relaxed and in a positive frame of mind. HR OBJECTIVE
• To achieve the Company’s objective the HR Department of AHL will recruit, develop, utilize, evaluate, maintain and retain the right number and types of employees to provide the organization with an appropriate workforce. QUALITY POLICY 1. 2. 3. 4. 5. 6. Commitment to provide high quality motorcycles and parts. Right work in first attempt and on time Maintain and continuously improve quality Training of manpower and acquisition of latest technology Safe, clean and healthy environment.

Market leadership and prosperity for all QUALITY STANDARDS In Atlas Honda Limited quality has priority over production. By producing the best quality motorcycles we can attain No. 1 Customer Satisfaction, fulfilling AHL’s goals. Quality is built into our production methods and Systems and it is important that all associates understand and strictly comply with all quality regulations. In order to maintain quality, all associates should be quality conscious, therefore, every one is required to strictly following guidelines. 1. Always remove wrist watches, bracelets etc. before entering the production area.

These can cause scratches. 2. Associates working in paint shop must use safety equipments. 3. Dandruff and falling hair can also cause quality defect. If you suffer from these conditions, be sure to consult with your supervisor so that these can be immediately corrected. 4. Dirt and dust are other sources of quality defects, be-sure that you are clean when you enter the production area. Check that you do not have dirt or stains on your body and that your uniform is free of stains, mud, dirt, dust, oil or grease. 5. Long fingernails may cause scratches and other defects, be sure to keep your nails short and clean. . Production workers are advised to always keep their hair short and clean. 7. Standardized safety shoes are allowed in the production area, be sure to wear appropriate shoes when working. 8. Eating and drinking material is not allowed in production area. MANAGEMENT POLICY 1. Proceed always with ambition and youthfulness. 2. Respect sound theory, develop fresh ideas and make the most effective use of time. 3. Enjoy your work and encourage open communication. 4. Strive constantly for a harmonious flow of work 5. Be ever mindful of the value of research and endeavor.

GUIDING PRINCIPLES 1. Simplicity 2. Concentration 3. Speed : Grasping he essence of what we must do, a focus on critical issues. : Focus our resources and our thinking where they are most needed to reach the essential goal. : Rapid implementation SAFETY POLICY & HOUSEKEEPING It is the policy of Atlas Honda Limited to provide its all associates with a safe and pleasant work environment and to maintain all equipment and machinery in proper working condition. Since safety and productivity go hand-in-hand, it is the responsibility of each associate to keep his own ork area clean and orderly at all times. By working together, we can maintain an environment that is safe and clean. If at any time an unsafe or unsanitary condition exists, bring this to the attention of your superior or the Human Resource & Administration Department promptly, so that the condition can be corrected. GUIDELINES To ensure safety of all associates and to create a clean and pleasant work environment, all associates should adhere to the following basic safety and housekeeping guidelines: 1. Follow all established safety regulations. 2. All required safety outfits (i. . safety shows, earplugs, safety glasses and gloves etc) be worn at all times. Failure to do so will warrant disciplinary action. 3. Always wear uniforms during working hours and be sure to put on the required safety outfits while at work. 4. All accidents/injuries, should be reported to the immediate supervisor and HR & Administration department immediately. 5. Associates should walk at all times, do not run. 6. Do not engage in any form of horseplay, practical jokes, throwing things, etc as such activities are dangerous and will not be tolerated. 7.

Only authorized associates should drive the fork lifters inside the factory. 8. Do not enter processing sections or operate equipment not under your charge. Never enter restricted areas unless you have been authorized to do so. 9. Equipments, tools and spare parts are to be properly arranged, keep clean, orderly and in their proper locations. 10. Handle carefully all equipments, tools fixtures and spare parts etc. Never transfer or take them out without proper authorization from your supervisor. 11. Never operate any machine or equipment until you have been properly instructed on how to use it safely and properly. 2. Do not use any vehicle unless you have been authorized to do so. When you are authorized to drive a company vehicle, drive carefully to avoid any injury and damage to the vehicle/property. 13. Walkways have been specified to provide associates with a safe walking area. All associates and guests should use only these walkways inside the plant. 14. Use only specified entrances, exits and passageways inside the plant. 15. All personal belongings should be stored in the assigned lockers or other designated places. Company is not liable for any loss, theft or damage o any belongings or valuables of the associates. 16. Smoking is allowed only in specified areas. Smoking in restricted areas will be subject to disciplinary action. 17. Handle all inflammable materials with care. 18. Always follow good housekeeping practices and keep all common areas (meeting rooms, locker rooms, canteen, offices, plant ground) and work areas clean and orderly at all times. 19. Put all waste and trash into the designated trash containers. Littering of any kind is strictly prohibited. 20. Floors should be clean and dry at all times.

Wet floors pose a safety hazard to all of us. ASSOCIATE Anyone who has entered into an employment contract with the Atlas Honda Limited will be called “Associate”. SUPERVISOR Any person who controls the job affairs or is assigned to get a job done from his/her juniors is called “Supervisor”. EMPLOYMENT Approval of appointment Chief Executive Officer is authorized to approve an appointment on a prescribed employment requisition form. Minimum Qualification Minimum qualification for appointment in management grade will be Graduate. For nonmanagement staff minimum qualification will be Metric.

Written Test Written test will be conducted for short listed candidates on the basis of computer proficiency, general knowledge and related subject for management grade 11 and below. Interview Depending upon the Grade, the pre-employment and selection, interview shall be conducted at the following levels: Grade 11 & above 12 & below Preliminary interview GMHR/GM MHR/Manager Final interview CEO/GDHR/GEC Member GMHR/GM/CEO Selection of candidate Group Executive Committee is authorized to select the candidate for the position of Grade 11 & above.

Chief Executive Officer is authorized to select the candidate for the position of Grade 12 & below. Pre-Employment Medical Test Clearance of pre-employment medical test is necessary before joining of the selected candidates from Shaukat Khanum Memorial Hospital for Sheikhupura Plant and Aga Khan Hospital for Karachi Plant. Offer Letter Offer letter will be issued to selected candidates after clearance of pre-employment medical test. Appointment Letter Appointment letter will be issued to: Management Staff signed by Non-Management Staff : : GMHR Notified Factory Manager Joining Report

Joining Report will be submitted by all new employees on joining. Induction Program On joining induction program will be issued for all management staff to create understanding about interaction between the departments and improving productivity. Probationary Period Probationary period for employment will be 90 days for associates up to Supervisor level and 180 days for associates in Management Cadre. An associate who is observed to be unfit or incompetent and does not meet performance standards set by the Company shall be terminated. However if management thinks fit, probationary period may be extended. Confirmation

An associate who has completed the probationary period shall be confirmed by the company on job unless otherwise notified by the management before expiry of 90 days or 180 days as the case may be. Increment Letter Increment letter will be issued to: Management Staff Grade 9 & above Management Staff Grade 10 & below Non-Management Staff : : : CEO GMHR Notified Factory Manager Change in Personal Information Any change in personal information like change of address, telephone number, marital status, nominee and educational qualification and training etc. should be intimated to Human Resource Department as soon as possible.

Transfer Whenever the business conditions so require, an associate can be transferred any where or any place within Atlas Group Companies in Pakistan. Resignation An associate who intends to resign from the service of the company will be required to give the company one month’s notice in writing or pay one month’s salary in lieu of such notice. Likewise, if the company wants to terminate services of the associate, the company will give one month’s notice in writing or pay one month salary in lieu of such notice. Termination/Dismissal An associate may be terminated/dismissed or lay off for the following relevant reasons: 1. . 3. 4. 5. 6. Serious misconduct or gross violation of discipline. Gross and habitual neglect of duties. Fraud or willful breach of company’s trust. On commission of a criminal offence Violation of company rules. An associate suffering from any disease which is prejudicial to his health, as well as the health of others. 7. All acts/omission stated as misconduct/offences in the law of the land (including labour laws) 8. The employment of an associate may also be terminated/lay off on ground which are not mentioned above. Retirement The associate shall retire at the age of 60 years. Clearance Certificate

On separation an associate will submit a clearance certificate duly signed by the respective departmental managers/ Department heads before leaving the job. EMPLOYEE’S BENEFITS Car/Motorcycle Management Staff Management staff are entitled for Car and Motorcycle on company policy and Motorcycle on installment according to their grade entitlement: Grade 11 & above Grade 13 & 12 Grade 15 & 14 Non-Management Staff Non-management staff are entitled for Motorcycle on installment basis. : : : Car under company’s policy scheme Motorcycle under company’s policy scheme Motorcycle under installment scheme Bonus

Management Staff Bonuses are allowed to management staff as per target set in the Annual Budget of the company for the financial year. Non-Management Staff Bonuses are allowed to Non-management staff as per Management/CBA agreement. Gratuity Management Staff Gratuity equal to 15 days basic salary for each year is allowed for management staff. Employees will be eligible for membership after completion of 10 years service. Non-Management Staff Karachi Plant Gratuity equal to 10 days basic salary for each year of service after 5 years. Gratuity equal to 20 days basic salary for each year on retirement from service.

Gratuity equal to 30 days gross salary for each year for Non Provident Fund Members for Non Provident Fund period. Sheikhupura Plant Gratuity equal 15 days basic salary for each year of service on completion of 10 years of service. Provident Fund On confirmation of employee 11% of basic salary is allowed as employee contribution on account of Provident Fund. Group Life Insurance Management Staff As per company policy group insurance is allowed to management staff according to their grade entitlements. Minimum Rs. 200,000 and Maximum Rs. 1,687,500/= Non-Management Staff As per law Non-management staff is entitled for group insurance of Rs. 00,000/=. Healthcare Insurance/Hospitalization Plan Management Staff As per company policy management staff is allowed hospitalization plan according to the grade entitlements on appointment. Minimum Rs. 150,000/= – Maximum Rs. 500,000/= per person, per year. Medical Management Staff 12% of basic salary is allowed to management staff of Grade 11 & below as medical expenses reimbursement. Medical entitlement (OPD facility for self, spouse and children) with upper limit is being introduced for staff in Grades 5 to 10 which is as follows:Grade 5 ~ 8 Grade 9 ~ 10 & S-1 ~ S-2 Rs. 40,000 per annum Rs. 30,000 per annum

Payment on submission of actual receipts. Non-management staff Medical re-imbursement is allowed @ 10% of gross salary less special allowances to nonmanagement staff who are not covered under Sindh Employees Social Security institution. Medical re-imbursement is allowed @ 8% of gross salary less special allowances to Nonmanagement staff who are covered under Sindh Employees Social Security Institution. Personal Accident Insurance All permanent employees will be covered against accidental death and disability under the Personal Accident Insurance Scheme up to seven years basic salary (last drawn). Risk of terrorism excluded.

Compensatory Leave Compensatory leave shall be allowed to management staff working on any off day/holiday. Inconvenience allowance Inconvenience allowance is allowed to management staff working on any off day/holiday as per grade entitlements: Grade 15 to 14 Grade 13 to 11 Grade 10 & above Rs. 500/= Rs. 750/= Rs. 1,000/= Non-management staff working on off day/holiday are entitled for overtime as per law/company policy. Personal Loan Personal Loan facility is allowed to management staff up to 45% of Basic Salary 12 (twelve) times, recovery shall be made in 18 equal installments commencing the month after disbursement.

Welfare Loan Welfare Loan is allowed to Non-management staff up to Maximum Rs. 10,000/=, recovery shall be made in 10 equal installments. Recreation/Travelling Allowance Non-management staff are entitled for Leave Fare Assistance @ Rs. 800/= per year on availing 21 days privilege leave. Best Attendance Allowance Non-management staff are entitled for best attendance award @ Rs. 5000/= on full attendance during the year. Meal Allowance Non-management staff are entitled for meal charges @ Rs. 45/= per meal where meal is not provided. Breakfast Those working in C shift are entitled for breakfast

Marriage Allowance Marriage allowance will be paid to Non-management staff @ Rs. 8,000/= on his/her first marriage. Marriage Gift A gift of Rs. 2,000/= will be given to Management Staff on his/her first marriage. Uniform Washing Allowance Uniform Washing Allowance will be paid to the Sanitation Staff @ Rs. 150/= per month. Fair Price Shop Fair price shop facility is available within the factory premises to provide low price items to the associates. Ex-Gratia Grant upon Death Rs. 13,000/= shall be paid to the legal heirs/dependents of the deceased for Non-management staff to meet the funeral expenses.

WORKING HOURS Regular schedule of work will be eight (8) hours per working day, from Monday to Friday and Alternate Saturday, total of not more than forty eight (48) hours per week, except where the nature of work or exigencies of the business operations require the establishment of a special working schedule. Shift Timings GENERAL SHIFT Working Hours A SHIFT Working Hours B SHIFT Working Hours C SHIFT Working Hours 11. 00 a. m. to 07. 00 a. m. 03. 00 p. m. to 11. 00 a. m. 07. 00 a. m. to 03. 00 p. m. 08:20 a. m. To 05:50 p. m. 5-S ACTIVITIES

To ensure clean and pleasant work environment, all associates should ensure 5-S activities at their respective workplace as well as in the establishment. 1. SEIRI (Sort Out) : Defected & wasteful parts/items should be kept separately which will lead to more space availability. Distinguishing of required parts & tools so that they can be quickly traceable to reduce operation time which will lead to increase efficiency. Cleanliness of work place, machines & parts will lead to smooth operations. 2. SEITON : (Put in Order) 3. SEISOU : (Cleanliness) 4.

SEIKETSU : (Neat & Tidy) 5. SHITSUKE (Discipline) : Keep yourself, your cloth neat and clean which will lead to improved working environment. Follow the standards and correct practices which will lead to increase in consciousness and level of controls. ATTENDACE AND PUNCTUALITY The company is relying on you for a full day’s work to help and meet required schedules. When you are late, leave work early or become absent, other workers will have to carry your workload, thus causing them under hardship. Therefore, you are expected to observe strict punctuality in attendance.

If you know in advance that you are going to be late or absent from work, you should give advance notification and get approval from your immediate supervisor so that position can be filled, if necessary. Avoid frequent tardiness and absences as this can adversely affect your performance evaluation. Also, never make false statements concerning absences, tardiness, under time and overtime. Late Arrival You are considered tardy when you fail to report to work at the exact time you are scheduled to work. Late arrival at work place effects company operations, as well as the work of your fellow workers.

In addition as per detailed in our code of conduct, late arrival carries the following penalties.
• • On 4th late arrival 1 leave will be deducted. In case of no leave in balance, it will be treated as 1 day leave without pay. It will effect the appraisal of the individual. Short Leave If it should be necessary for you to leave work early for whatever reason you must first ask your immediate supervisor for approval. Leaving from your work area early without prior approval from your supervisor will be subject to disciplinary action. Short Leave, even if approved, will be subject to salary deduction.

Attendance Monitoring For the purpose of attendance monitoring as well as scrutiny, all associates are required to register their working time through the use of Sweeping Time Card in Time Machine System (TMS). 1. Mark your attendance card as soon as you arrive at the office or plant. 2. At the end of the workday, log-out before leaving the office or plant. 3. If, at any time during the workday, it is necessary for you to leave the plant/office for whatever reason, then you should log your departure and arrival at the Time Machine System. 4.

Associate leaving the office/plant for personal reasons shall submit short leave application duly signed by manager concerned. 5. Associate leaving the office/plant for official business shall submit short leave application at the gate while leaving the office/plant duly singed by the concerned manager. 6. Associate leaving the work place without prior authorization from respective supervisor will be considered as absent and disciplinary action will be taken. 7. Under no circumstances an associate will log-in and log-out another associate using his time card, as this will constitute falsification of official company record.

Absence For absence due to illness and other unavoidable reasons, the company must be notified for approval through written application or make a telephone call as soon as possible, stating the reason for your absence and the expected number of days you will be absent or otherwise if labour laws attract, disciplinary action would be initiated. For absence due to illness for 3 days or more, the associate must submit a medical certificate from an authorized doctor. The absent associate must file a leave of absence immediately on the same day that he/she returns to work.

Leave Entitlements Management staff is entitled for 26 working days privilege leave. Non-management staff is entitled for 21 days privilege leave, 10 days casual leave and 10 sick leave. During probation period the associate is not entitled for privilege leave. However, after confirmation within a calendar year of service, he/she may avail proportionate leave credits. Leave Credits The leave calendar runs from January to December of each year. Accumulation of 78 days privilege leave is allowed to management staff. Non-management staff is allowed to accumulate 90 days privilege leave.

Sick leave and Casual leave are not allowed for accumulation. Leave Encashment Management staff is not allowed for leave encashment. However, non-management staff is allowed encashment of remaining balance of sick leave and casual leave at the end of the year. Maternity Leave All the married female associates are eligible for 12 weeks maternity leave with pay – six weeks pre-natal and six weeks post-natal. Such female associates must submit medical certificate, stating expected date of delivery, along with the leave application. GENERAL PLANT POLICIES Entering & Leaving the Plant

Associates must show their identity card to the Security Staff on duty, if required to do so, before permitted to enter. Associate should enter and leave the plant or office only through designated entrances and exits. Uniforms In order to maintain quality, ensure safety, improve work efficiency and maintain the company’s distinguished image, the company provides uniforms and safety outfits to associates. All associates are expected to wear the prescribed uniform and safety outfits, during working hours. Associates should also wear their Company ID card at all time.

Do not make any alterations on the ID card and use these only for official company business. All company issued uniforms and other safety outfits remain the property of the company. Uniforms due for replacement should be surrendered to Human Resource & Administration Department. Failure to wear the prescribed uniform and safety outfits shall be subject to disciplinary action, as contained in the code of conduct. Lockers Each associate is provided with a locker for his personal belongings. Keep your uniforms, and other personal belongings in your assigned locker.

Whenever necessary, the company has the right to inspect the associate’s lockers. Do not keep any valuables, the company will not be responsible for any loss or damage to one’s belongings. Using the Canteen Canteen timings are strictly followed as per shop/department timings. Since the canteen is self-service, associates are expected to set the chairs and clear the tables upon leaving. Use only the designated passage ways when entering or leaving the canteen. The canteen may also be used for business discussions and other small group activities whenever necessary.

Before using the canteen for this purpose, please get prior approval from Human Resource & Administration Department. Personal Calls The company telephones are strictly for business use only. However, you can make a personal call only from exchange after filling “Telephone/Fax Request Slip”, duly approved by your departmental head. The expense of such calls will be charged to respective associates as per PTCL bill. ASSOCIATE’S CONDUCT Standards of conduct Associates are expected to follow proper instruction from the supervisors. All associates are strongly encouraged to make a distinction between fficial company business and personal interests. For instance company materials, equipment and tools etc, are not for personal use. As responsible members of the community, all associates are expected to comply with the laws. Never act in violation of the law. Associates are expected to manage their personal finances in a responsible manner. Excessive borrowings beyond the capacity to pay back as well as gambling are strictly prohibited. In respect for individual belief, associates should not engage themselves in political or religious activities within company premises.

Whenever an associate is invited to deliver a speech, attend meeting and social gathering in relation to his official duties, he/she should first obtain prior approval from management. Leaflets and other printed material may not be distributed inside company premises without prior approval form management. Associates should also avoid actions which corrupt public morals or damage the reputation of the company. As an associate of a distinguished motorcycle manufacturing company, you are expected to comply with all traffic rules and regulations and practice safe driving habits.

Always keep in mind that you are a member of the AHL family. Any action that you do reflects on all your fellow workers. Company Events From time to time, the company sponsors activities such as parties, sports, festivals and picnic etc, to promote fellowship among associates. While these events are normally not held during working hours, associates are expected to be present and participate in these events. During such company events, associates are also expected to maintain behavior standards and demonstrate proper respect for fellow workers.

Conflict of Interest It is the policy of the company to prohibit associates form engaging in any activity, practice or act, which conflicts with the interest of the company and its customers. Such actions will be subject to disciplinary action. Examples of conflict of interest are: 1. Accepting outside employment or consultancy work in an organization that does business with the company or is a competitor. 2. Engaging inside business without prior approval from the company. 3. Financial interest in a firm that does business with the company. 4.

Accepting gifts or favor form any person or firm doing business with the company or using your position to obtain such gifts or favors. 5. Conduct that is disloyal, disruptive, competitive or damaging to the company; 6. Engaging in motorcycle denting, painting, repairing or making other than company business at home / workshops etc. Confidential Information Associates may be entrusted with confidential information such as business plans, financial statements, model changes research and development projects or long-range production schedules.

The nature of our business is highly competitive and release or leakage of this type information can be damaging to the company. As an associate, you are expected to keep such information as company records, reports, technical data and other documents strictly confidential. Violation of the confidentiality shall be subject to severe disciplinary action. SECURITY Identity Card For security purposes, all associates are issued an identification card. You should have this card in your possession at all times. Guest visiting the plant and offices should obtain a Visitor’s card form the Security staff.

Inspection and Gate Pass It is security’s purpose to protect company property as well as the property and belongings of associates. In addition to routine inspections at the plant entrance. The company may also conduct other inspection activities including locker inspection to ensure the safety and security of the plant. All associates should allow themselves to be checked when entering or leaving company premises. You should also allow your belongings for inspection while entering or leaving company premises, if asked to do so.

Associates are not allowed to take out documents, parcels and other property without a gate pass duly signed by the competent authority. All vehicles leaving the company premises will also be subject to inspection. Any associate who refuses to comply with the requirement will be subject to disciplinary action. Keys The company issues keys only to authorized associates. All associates should surrender a duplicate key to their locker, desk and cabinet in a sealed envelope to division head. Do not have any spare keys made other than those officially issued to you by the company.

Personal Vehicles There are designated driving and parking areas for associates who come to work by car, motorcycle or bicycle. You should drive and park only in the designated areas. When paring your vehicles in the designated areas, be sure to park properly. However, the company will not be responsible for loss or damage to parked vehicles. Use of Company Vehicles Obtain prior approval before using any of the company vehicles for official business trip. Associates should not use the company vehicle for their personal use.

Fire Protection / Disaster Control The company maintains continuous fire protection and inspection activities and encourages participation by all associates. There are emergency exit routes, fire exists, fire extinguishers and fire hose stations placed strategically within the plant. Associates will have the opportunity to have hand-on training on fire extinguisher and briefings on the proper use of fire fighting equipments in their areas. COMPENSATION Salary Payment Date The payment is made through bank transfers by 1st day of next month.

Overtime Payment Date Overtime pay is paid to associates on 5th & 20th of each month in according with the provisions of labour laws/ company rules. Holiday Pay Compensation is made to non-management staff for work rendered on regular and special holidays, as well as the associate’s designated rest days, in accordance with the provisions of the labour Laws/Company rules. Management staff is allowed to avail in lieu of for working on holiday or claim inconvenience allowance with 30 days. Action Plan, Salary Increase & Promotions

In July of each year, management announces to all managers its basic policies and business plans. Based on this information, each division head is expected to submit an action plan for his/her division. All associates should formulate and submit their own action plan in line with the action plan set by the seniors. Achievements of the individual action plan will be the main basis for evaluation to determine salary increase and promotions. ASSOCIATE’S INFORMATION Associate’s Record Human Resource Department maintains individual files for each associate which are kept strictly confidential.

All associates should submit the following information and any change therein to Human Resource Department. 1. 2. 3. 4. 5. Home address Home telephone number & Cell Number Contact person and telephone number in case of emergency Marital status Change in dependents Bulletin Boards Company bulletin boards – used to communicate information regarding the operations of the whole company 1. Safety control bulletin boards – are used to relay safety messages. 2. Divisions, department or section bulletin boards are used to communicate information related to the operation of each division, department or section.

Emergencies In case plant operations has to be stopped due to bad weather or other calamities, the company will immediately notify all associates through the installed communication system. Whenever such communication is not available, associates should get confirmation form their respective supervisor/manager. COMMITTEES AND SELF-MANAGED ACTIVITIES Committees are organized in the company to conduct the following self-managed activities. All associates are strongly encouraged to participate in these activities. Safety Health & Environment Committee

With the improvement of safety and housekeeping as its main task, this committee acts independently to propose and promote activities which will ensure the safety and well being of all associates. Alamayar Circle Committee Aiming for No. 1 Customer Satisfaction, associates in the Production, Human Resource, Marketing, After Sales Service, Finance, and other departments independently form small groups which select and work on projects related to the theme. These groups compete to select the best team which may then be sent to participate in international NH Circle conventions, in accordance with the rules set by the management.

Canteen Committee This committee is responsible for monitoring the canteen operations to ensure the associates get clean, hygienic, delicious and well balance food. Fire Fighting Committee The purpose of this committee is to prepare the associates, to fight against the fire if set in factory premises and meet any emergence arising out of it and ensure fire equipment availability in sound condition. Welfare Fund Committee This committee is responsible for monitoring the welfare fund related activities. NOTE

This handbook is for the purpose of acquainting you with our basic policies, benefits and mutual responsibilities. It does not constitute a contract of employment in whole or in part. The company may add, change, modify or delete any of the contents of this handbook at any time. Due to changing conditions, trends or other circumstances, the company may from time to time find it necessary to terminate, modify or substitute these policies in whole or in part. We will notify you of these changes by posting them on the bulletin board or by other appropriate means.

Human Resource Manual of Atlas Honda Ltd, Pakistan

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