Human Resources Policy Manual 12 June 2011-Approved and Final

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Table of Contents
Chapter
Title
Page
2
Introduction
Work Relation
Manpower Planning and Recruitment
Work Schedule and Leaves
4.1
Work Schedule
4.2
Leaves
12
19
Salary Administration and Promotion
29
Compensations and Benefits
34
Health Care
46
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Advanced Petrochemical Company
Uncontrolled if printed
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Introduction
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1. Introduction
1.1 General Instructions
The purpose of this manual is to serve as a working guide for all employees in the
Company. This manual will be used to govern the conduct of the Companies internal
business and relationship with its employees.
The manual has been devised in accordance with the statutory requirements. The
Companys internal rules and its contractual obligations are subject to all laws of the
Kingdom of Saudi Arabia. The manual clarifies the Company standpoint and thereby
eliminates the need for individual decision-making in day-to-day affairs. This also ensures
uniformity in decisions across units and geographical locations.
While using this manual, it must be remembered that no two situations are exactly the
same. Further it is neither practical nor feasible to anticipate all possible work situations in
advance and present policies, which supply complete ready-made answers. Within the
framework illustrated in the manual it is possible to address probable situations that may
arise in the normal course of business and employee relations.
1.2 Policy Presentation and Maintenance
The HR Manager & EMT are responsible for the overall maintenance and presentation of
the Policy manual. They are also responsible for any revisions, alterations, additions and
distributions with the approval of the General Manager of Human Resources. Copies of
the manual will be distributed to the Department Managers and any changes to the
manual will be regularly communicated to employees through official memos/notifications.
The updating of the manual is the responsibility of HR Department. The policy manual will
also be available for easy reference on the Companys Intranet.
1.3 Organization of Manual
The Human Resources Policy Manual is organized into 8 Chapters as follows:
1
Introduction
Work Relation
Work Schedule
Leaves
Salary Administration and Promotion
Health Care
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1.4 Policy Clarifications

Managers and Supervisors in the company should share the administrative responsibilities
of this policy manual. The functions, that have primary responsibility for the policy manual,
are referred to in the text by title or function.
All queries relating to the interpretation of the policy manual or cases wherein any
clarification pertaining to the Policy Manual is required where responsibilities are not
clearly assigned amongst functions should be referred to the HR Departments Manager.
All cases where the Policy Manual does not suitably cover a situation, all such exceptions
are to be dealt with by the General Manager of Human Resources.
Disclaimer: The ADVANCED Personnel Policies Manual is an explanatory document
intended to assist Employees of ADVANCED in the determination of their respective
employment benefits to which they may be eligible as well as their respective obligations
to ADVANCED in return. The policies contained in this document do not represent, and
may not be construed as, legally binding terms and conditions of employment. Rather, the
policies contained in this document are discretionary policies established by ADVANCED
for its Employees and are subject to change by ADVANCED without consent of, or
compensation to, such Employees.
Furthermore, the Company reserves the right to change/modify/alter/add any content of
this manual without any notice. This being a classified document/information, employee is
required to retain its confidentiality and use it only for personal awareness/orientation. This
document does not have any legal sanctity and therefore cannot be cited as reference to
gain any advantage inside or outside the company.
1.5 Definitions
Words and expressions used in this Manual have the following meanings:
Expression
Meaning
Administering Health Insurance

Annual Agreement of Medical & Health Policy
Policy
Apprentice
Is the non-employee trainee engaged by the Company to be

trained within a specified period of time as per a training
contract.
Approval Authority
The authority vested in an individual to approve / disapprove

of a process / decision.
Basic Salary
Employees regular monthly basic salary, which excludes all

allowances, bonuses, business assignment (including training)
payments of overtime or any other compensation.
Board
The Board of Directors of the Company
Company
Means the Advanced Petrochemical Company.
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Meaning
Compensation Administration
Guidelines
These Guidelines have been designed and formulated by HR,

recommended by EMT and approved by Board of Directors
and will be reviewed on an annual basis if required. The
company may modify or revise these guidelines at any time
based on business need.
Co-Op Trainee
Students from universities and colleges trained by the

Company.
Department Manager
Head of a Department within a Function.

Department
Managers are the first level of direct reports to the Function
Head.
Direct Hire
Employees who have been directly hired by Company.
Eligible Dependents
The persons who have been designated as dependent(s) on

the employee according to Company policies and employment
contract. For Saudi employees (wife(s), sons till they get jobs
or reached the age of 24, which is earlier, daughters till they
get jobs or get married, which is earlier, and legally dependent
parents (as certified by a Court of Justice)), for Non Saudi
employees (wife and Four Children up to the age of 18 years
old).
Employee
Is a person who is recruited as a permanent employee by the

Company under an employment agreement for a specified or
unspecified period to work for the Company and be under its
direct control and supervision. This excludes apprentices,
daily rate hires, contractor employees, loanees, seconded
staff, summer students and Co-op trainees.
Executive Management Team
A committee comprising of the CEO, President, Vice

President and General Managers appointed by BOD.
Function Head
Head of a function or General Manager who manages a

number of Departments under him.
GOSI
The General Organization for Social Insurance.
Government
The Government of the Kingdom of Saudi Arabia.
Join Date
The date the employee joins the Company as mentioned in

the employment contract.
K.S.A.
The Kingdom of Saudi Arabia.
Labor Law
The "Labor Law" issued under Royal Decree No. M/21 dated
6 Ramadhan 1389H (15 November 1969), and including any
amendments thereto.
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Meaning
Married Status
A married employee whom declared as married in the

employment contract or any amendment thereafter.
Approval Authority Schedule
Manual of Delegated Authority.
Next Higher Authority
An employee who is the Immediate Superiors superior.
Out of Policy
Situations such, that are not clearly inferred and not covered
by the policy manual and have to be handled by the Human
Resources Department. It requires approval of two levels
higher than normal approval but no higher than the CEO.
Point of Origin
The place mentioned as the point of origin in the employee

contract.
Saudization
Is the policy to promote and develop quality Saudi nationals to

take jobs of higher technical skills and to increase the number
of Saudis in the work force.
Single Status
An employee, who may be married or single, whom declared

as a single in the employment contract.
Summer Trainee
Non-employee students trained by the Company.
Year or Month
Years or months of the Gregorian calendar unless specified

as 'Hijra Date'.
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Chapter 2: Work Relations
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Work Relation
2.1 Overview
The policy covers the basic principles that govern the disciplinary and grievance procedures
followed by the Company and standards of business ethics/conflict of interest situations.
2.2 Objective
The objective is to achieve the highest level of ethical work practices and professionalism in
business. It also seeks to propagate employee satisfaction by creating an effective system of
grievance handling and disciplinary procedures.
2.3 Responsibility
i
Employees:
Are responsible for adhering to work rules established

by the Company and maintaining ethical and
professional standards.
ii
Human Resources Department:
Is responsible for handling any breach of policy.
iii Concerned Department:
It is the responsibility of the concerned departments to

report and take action against any lack of
professionalism on part of the employees. The
department should also address any grievances of the
employee.
2.4 Policy Details

2.4.1 Conflict of Interest
Refers to situations wherein personal interests clash with those of the Company.
2.4.1.1 Guidelines
i.
Company employees are prohibited from having a direct or indirect

personal interest in the Companys contracts or projects or with the
contractors doing business with the Company.
ii.
No employee should hold a controlling personal stake in another firm,

which does business or intends to do business with the Company; this
includes holding a position, having a controlling financial stake or any form
of ownership in such a firm.
iii. Employees are prohibited from holding any position in another firm, which
does business or intends to do business with the Company.

iv. Company employees are prohibited from engaging in any trade other than
their span of work as employees of the Company.

2.4.1.2 Non Prohibited Actions
The following are examples of non prohibited actions:
i.
Employees participating in social affairs, which do not interfere in the

normal conduct of business.
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Employees having limited interests in other firms, which do or intend to do

business with the Company, provided they have disclosed such
information.
iii. Family members of employees having a stake in other companies or
holding a job position in another organization in cases where a potential

conflict of interest situation does not exist.
2.4.2 Business Ethics
Refers to maintain the highest standards of ethics, morals and professionalism
concerning conduct in business dealing.
2.4.2.1
Guidelines
All employees must abide by the following policy intent that:
i.
The Company shall maintain the highest ethical standards in its conduct of
business. It shall be honest in its dealings with internal as well as external
stakeholders. The Company shall avoid all situations, which can be termed
as illegal or dishonest.
ii.
The Companys records/audits shall be maintained at the highest level of

integrity. Any instance of falsification will be dealt with strictly.
iii. Company information of confidential nature shall not be disclosed to third
parties and any information regarding any other organization with which the
Company does business shall be kept confidential. This information might
have come by the means of normal business dealings. Any such
information shall be disclosed only after prior approval from the Company
delegated authorities.
iv. In case of legal dealings, confidentiality shall be maintained at all times.
v.
All employees of the Company are to abide by the rules of the Kingdom of
Saudi Arabia during the conduct of business dealings. Any violation is
considered as breach of the Company policy on business ethics.
vi. All employees are to show concern for the society and its customs in due
course of business.
vii. No employee should indulge in any sort of bribery, dishonest means to gain
favors for the Company. Any such actions could lead to punitive action
against employees.
2.4.2.2
Non-Prohibited Actions
The following are examples of non prohibited actions:
i.
Employees purchasing equipment/vehicles on an open bid basis.
ii.
Participation in civic affairs, which does not lead to ethical concerns for the
Company.
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2.4.3 Grievance Procedure

Grievance Procedure deals with the effective handling of employee complaints against
operational conditions or fellow employees. Grievance Procedure promotes an
atmosphere of employee satisfaction wherein employees can work at optimal levels.
2.4.3.1 First Level Hearing
i. An employee must initiate his own complaint in writing and submit it to the
immediate supervisor.
ii. The employee should discuss his grievance with the immediate supervisor.
The supervisor will conduct an investigation and then reply to the employee
regarding the complaint within five (5) working days (the reply may be
verbal or written, as appropriate).
2.4.3.2 Second Level Hearing
i. In the event the matter is not satisfactorily addressed at the supervisor's
level, then the employee may appeal to the next level of supervision
(usually Department Manager) who shall attempt to solve the complaint
within ten (10) working days.
ii. If the matter is not solved at the Department Manager level, employee may
raise the matter to the Function Head level who shall attempt to solve the
complaint within ten (10) working days.
iii. If the matter is not satisfactorily resolved, then, the employee should seek
the assistance of the Human Resources Department.

2.4.3.3 Third Level Hearing
i. On submission of a written compliant by the employee, Human Resources
shall notify the concerned Department Manager that there is an employee

complaint pending.
ii. Human Resources Department will schedule another meeting of all parties
to resolve the matter. At that meeting, the Human Resources representative

functions as a neutral mediator seeking to arrive at a solution acceptable to
all parties.
iii. The Complainant(s) and Supervisor may bring in other Company staff
members as witnesses at this point in the process.

iv. The Department Manager or departmental representative shall have five (5)
working days after the parties meet to respond in writing to the complaint.
v. If the case is not settled or if the nature of the grievance is such that it can
have implications for other employees as well, the complaint may be

escalated to the higher levels (Function Head, General Manager of Human
Resources and President and CEO).
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2.4.3.4 Employees Rights as Per Law

i. If the grievance or complaint is not finally settled within the Company, or the
employee is not satisfied with the final written decision, the employee may
submit his grievance with the relevant jurisdiction authority according to the
Labor law.
ii. In such case, it is the responsibility of the Human Resources Manager or
the Company representative to follow up and solve such a grievance or

complaint with the government agency.
2.4.3.5 Fair Treatment to All Employees
i. No employee shall suffer from any unfair treatment because of the fact that
he has presented a grievance or complaint under the provisions of this

policy.
ii. An employee must be allowed time off from regular duties as required for
grievance hearings without any deduction in pay.

2.4.4 Disciplinary Procedure
Company will impose penalties for violations as per the Company Schedule of
Penalties and Rewards attached to the Work Rules.
2.4.5 Rights to Ownership-Inventions/Patents
Inventions made in due course of work are treated to be as property of the
Company. The employee will be rewarded for such an act but the usage/patent of
the invention will belong to the Company.
Special awards may be given for any extraordinary achievements made by the
employees.
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Chapter 3: Manpower Planning and Recruitment
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3.1 Overview
The Manpower and Recruitment policy covers all policies and procedures, which are
related to the manpower strength of the Company and the process of recruitment.
3.2 Objective
To enable the Company to implement its business strategy by:
i Planning for manpower requirements
ii
Recruiting quality talent
iii Promoting Saudization

3.3
Responsibility
The Human Resources Department under the overall authority of the General Manager
of Human Resources is responsible for preparing the manpower plan and ensuring the
compliance with the manpower and recruitment policy. The General Manager of Human
Resources along with the Function Heads and the EMT finalize the preparation of the
annual manpower plan, which also outlines the manpower budget for the year.
Responsibilities for administrating this policy should be in line with Approval Authority
Schedule.
3.4
Manpower Plan
3.4.1 Development of Annual Business Plan for All Functions
i.
Before the start of the new financial year, the Function Heads prepare and
finalize a business plan for their function which will include the manpower
plan.
ii.
New positions to be introduced, or new skills / competencies required within

the organization, will be identified for recruitment.
iii.
Overall Saudization targets and Saudization status will be determined as part

of the manpower plan.
3.4.2 Determine Manpower Requirements

i.
The Function Heads along with Human Resources will determine the
manpower requirements for positions including middle management and
below supervisory level, based on competency gaps, number of qualified
nationals, exits, promotions and succession plans, change in business
processes, introduction of new activities/processes/technologies and yearly
business plan.
ii.
Function Head - GM, Human Resources along with the EMT will determine
manpower requirements for top management positions Section Head Level
and above.
3.4.3 Benchmarking
i.
Once in 3 to 5 years, HR Department will conduct or participate in a survey to

estimate benchmark manpower productivity ratios in the industry.
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HR Department will also estimate changes within the organization, like

introduction of new technology, processes and systems that could impact
manpower productivity and any associated changes in the skill/competency
requirements.
iii.
Human Resources will revise

accordingly.
3.4.4 Consolidation of Manpower Plan
the
manpower
planning
assumptions
i.
Human Resources will consolidate the overall manpower requirements for the
function based on inputs from the Function Heads.
ii. Human Resources will consolidate all the top management manpower
requirements based on inputs from the EMT.
iii. Human Resources will then consolidate all the plans across the Company, by
analyzing data on promotions, transfers and exits, and identify opportunities
for internal sourcing across functions.
iv. General Manager of Human Resources will identify positions that can be
saudized in the current years plan during the manpower consolidation
planning process.
v. The overall manpower plan will then be consolidated for the Company and the
final drafted manpower plans for each function will be drawn up with all
necessary data.
3.4.5 Recruitment Plan
i.
Human Resources will determine the joint recruitment plan based on the
functional manpower plans.
ii. The recruitment manpower plan will specify the required number of nationals
and non-nationals, different sources of recruitment for different positions. For
e.g. numbers hired through campus recruitment / recruitment agencies /
advertisements etc.
iii. The cost of recruitment will also be factored.
3.4.6 Manpower and Recruitment Budget
Human Resources will prepare the manpower and recruitment budgets. These
would include a cost assessment of the entire manpower plan, including cost of
salary and benefits, overhead costs, recruitment costs (sourcing costs, travel for
interview costs etc), advertising costs and incidental costs like visa processing for
expatriates, relocation costs etc. These costs will be factored into each functions
budget under the manpower costs head and then in to the overall budget of the
Company.
3.4.7 Approval
There will be a three stage process of the manpower budget:
i.
First recommendation will be from the respective Function Heads;
ii.
Final recommendation from EMT for final approval by Board.
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Once the manpower budget has been finalized, inputs will be provided to the
section within HR Department responsible for recruitment.
Sourcing
3.5.1 Internal Sourcing
i.
In case of vacancies, first priority will be given to internal aspirants.

Candidates from across the Company are allowed to apply for the vacancy.
ii. The responsibility to announce such vacancies will rest with the Human
Resources Department.
iii. Intranet/notice boards will display the vacancies and positions available,
including the requisite qualifications and experience needed for these
positions.
iv. Every applicant must seek the Department Managers permission before the
application is sent to the Human Resources Department.
3.5.2 External Sourcing
External sourcing could be done through any of the following avenues:
i.
Recruitment advertisement;
ii. Recruitment agencies;

iii. Labor Office;
iv. Campus visits (University/technical colleges/Craft institutes);
v. Company website;
vi. Walk-in interviews; and
vii. Employee referrals.
3.6
Recruitment Process
The Company will reimburse the travel fare from to hometown and staying expenses
for those candidates called for any stage of the process as per Company policy.
3.6.1 Application Form
i.
Each applicant for a vacant position has to fill up the employment application
form.
ii. The applicant also needs to present supporting proof of the above
information in the form of certificates, diplomas etc that have to be submitted
in duplicate along with the application form.
iii. On joining, the employee needs to present the original certificates.
3.6.2 Identification
All national job applicants must possess a valid Saudi Arab National I.D. Card or
an official Saudi Arab Government document proving citizenship of Saudi Arabia.
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3.6.3 Medical
All prospective employees prior to final selection with the Company will have to
undergo a compulsory medical test. The medical test will be conducted at the
Company facilities or at a medical facility approved by the Company. The cost of
this test will be borne by the Company.
3.6.4 Saudi Government Clearance
For certain jobs the final employment letter will be given only after approval of the
requisite Government agencies (e.g. for Industrial Security Jobs).
3.6.5 Age Restrictions
i.
The minimum age for any employee is 18 (eighteen Hijra) years.
ii. Minimum age limit for Non Saudis will be 21 Gregorian years.
iii. Saudi students below the age of 18 years maybe selected as summer
trainees.
iv. Any exceptions to the age restrictions need to have prior approval of the
General Manager of Human Resources.
3.6.6 Education
i. All job applicants must possess the requisite educational qualifications for a
particular job.
ii. All exceptions require prior approval of the General Manager of Human
Resources.
3.6.7 Offer of Employment
The Company extends offers of employment to selected candidates as per the
vacancies available. The offer of employment is communicated to the candidate
by a letter or a contract of employment, which details out the terms and
conditions of employment applicable to the specific employee.
3.6.8 Joining Date
i. The joining date for any new employee is the first day at work as specified in
the employment contract.

ii. Any candidate who fails to join the organization within a month of the stipulated
date as per the offer letter, without informing the Human Resources
Department and obtaining approvals will be deemed to have rejected his offer
of employment with the Company.
3.6.9 Joining Procedure
i. A copy of the employment contract needs to be signed by the employee, as a
mark of acceptance of the terms and conditions of employment and will be

submitted to the HR Department.
ii. Every recruited candidate on joining will have to fill up other necessary forms
for detailed information.

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iii. In case the candidate is not residing in the country it will be the responsibility
of the Company to ensure that the visa and/or residential permit (as may be
applicable) are processed for the candidate.
iv. HR Department will also ensure that the candidate provides the required
documents (in original) specified as per the Saudi Laws.

v. Human Resources and Industrial Security Departments will use the detailed
information form to provide the candidate with an Identity Card of the

Company. The employee should carry the identity card with him at all times
during employment with the Company. Loss of identity card should be
reported immediately to the Industrial Security Department.
3.6.10 Employee Orientation
i. The HR Department together with other functional areas will provide a
comprehensive orientation program to the new employees. This is for new

employees to be aware of the Company policies, work culture, compensation
and benefits, general safety regulations and the Companys business ethics
and conflict of interest policies.
ii. The immediate supervisor of the employee will participate in this exercise to
3.7
brief him about general working conditions and any other job related
information.
Probationary Period
i. All newly hired employees need to undergo a 3-month (90-day) probationary period
(also referred to as the trial period) in order to have confirmed employment status.
ii. The probation period will be clearly stated in the employment contract.
iii. The Company shall not place an employee on probation more than once throughout
his employment with the Company.

iv. Other than in case of emergencies the employee shall not be entitled to any kind of
leave during the period of probation.

v. The probationary period shall be included in calculating the employees period of
continuous service.
vi. The Company can terminate the employees employment contract during the period
of probation for any reason whatsoever. This termination can be with or without
notice.
vii. Immediate supervisor should submit a report two (2) weeks prior to the end of the
3.8
probation period, regarding the employees performance. The same shall form the
foundation of the employee confirmation with the Company.
Employment of Relatives
i. Saudi employees can refer relatives for vacant positions, but they need to satisfy
the minimum educational/experience criteria required for the job.

ii. In no such case will a relative be employed under direct supervision of another
relative or vice versa.

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iii. All exceptions need to have prior approval of the General Manager of Human
Resources.
3.9
Re-Employment of Former Employees

3.9.1 Objective
i. This policy ensures re-acquisition of critical talent required by the Company.
ii. It covers all former employees of the Company, who have not been otherwise
terminated for disciplinary reasons.

3.9.2 Conditions for Re-Employment
i. The overall performance review in the last period of employment must show
good performance.
ii. The candidate must not have been terminated for cause.
iii. A former employee will be employed only if a job opening exists and he is
qualified for that position.

iv. The candidate has acquired critical competencies or useful experience.
3.10
Selection of Apprentices / Summer Students / Co-Op Trainees

As per the Saudi Labor and Workmen Law, the Company may select apprentices. The
Apprentices shall be selected at the discretion of the HR Department and in line with
Company approved plan.
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Chapter 4: Work Schedules and Leaves
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4.1 Work Schedule
4.1.1 Overview
It is the policy of the Company to operate work schedules suited to its operational
requirements. Employees should be prepared to work overtime in response to
emergencies or operational needs. The Company will always seek to reduce
overtime working to the absolute minimum and to control its use strictly. It is also a
requirement of the Company that its employees should be prepared to work on shift
where this is an operational requirement.
The Work Schedules policy covers a description of different work schedules, on call,
call in and start and end of work.
4.1.2 Objective
The work schedules policy envisages establishing work conditions and timings to be
followed in the Company as standard procedures.
4.1.3 Responsibility
i. Human Resources Department:
Is responsible for deciding the timings of the

Regular, Shift and Ramadan schedules for
the Company.
ii. Concerned Department:
Department Managers will be responsible for

coordinating and scheduling shifts for their
Departments. They will also consult the
Human Resources Department prior to
effecting any changes in the schedules. The
Department Managers will be responsible for
disseminating schedules and timings to their
employees.
iii. Employee:
It is the responsibility of the employee to

report punctually for all assigned schedules.
4.1.4 Policy Details

4.1.4.1 Regular Schedule
The regular day work schedule for employees assigned to the day schedule
is eight (8) hours per day, five (5) days a week; Saturday through
Wednesday, and a total of forty hours of work per week followed by two
days off with pay. The start and end hours of daily work will be from 7:30
A.M to 4:00 P.M inclusive of a 30 minutes lunch break only as decided by
the company.
4.1.4.2 Shift Schedule
The standard working hours for all employees in the shift schedule is eight
(8) hours a day, the number of days of work and rest will be as per the work
cycle for operations. There will be three shifts for employees under the shift
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schedule. The work timings will be determined as per operational

requirements and employees may be rotated amongst various shifts.
4.1.4.3 Ramadan Schedule
Working hours for all Muslim employees during the month of Ramadan will
be reduced to six (6) hours a day, the exact work timings will be announced
by the Human Resources Department. There will be no equivalent
decrease in the level of salary paid to Muslim employees and those Muslim
employees who are required to work for eight (8) hours will be
compensated according to the overtime policy.
Non-Muslim employees will work as per the normal timings of the regular
schedule and shift schedule during this period.
4.1.4.4 Rest days
4.1.4.4.1 For Employees on Regular Schedule
Employees under the regular schedule will have Thursday and
Friday as the days of rest during the week.
4.1.4.4.2 For Employees on Shift Schedule
Employees under the rotating shift schedule are entitled to the
rest days as per the published shift schedules which should
ensure that the operations do not come to a standstill.
4.1.4.5 Overtime
Overtime is the time worked over the normal working hours as listed by the
various schedules.
(For more details refer to chapter 6 Compensation and Benefits).
4.1.4.6 On Call / Call In
To meet any emergencies and operational requirements, employees may
be put on-call and may be called-in to perform duties after their working
hours.
(For more details refer to chapter - 6 Compensations and Benefits).
4.2 Leaves
4.2.1 Overview
The policy covers different kinds of leaves an employee is entitled to associated
policies.
4.2.2 Objective
The policy endeavors to allow employees leave as per the standard rules and
procedures.
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4.2.3 Responsibility
It is the responsibility of the Human Resources Department to finalize different kinds of
leave schedules and assign authorities to authorize leaves.
Type of Leave
Process Responsibility
Approval Authority
Public Holidays
Human Resources
President and CEO
Annual Leave
Supervisor
Department Manager
Deferring of
Annual Leave
Supervisor/Work Location
Human Resources
Department Manager (10 working

days or less), Function Head (for
more than 10 working days)
Recall from
Leave
Department Manager
Function Head
Emergency
Leave
Department
Manager/Work Location
Human Resources
Department Manager (3 Day)
Hajj Leave
Department Manager
Human Resources Manager
Examination
Leave
Supervisor/Work Location
Human Resources
Department Manager / Human

Resources Manager
Sick Leave
Company Physician
Company Physician
Patient
Accompaniment
Leave
Department
Manager/Authorized
Physician
Human Resources Manager
Unpaid Leave
Department Manager
/Work Location Human
Resources
Function Head, Manager of Human

Resources (up to 10 days), CEO
for more than 10 days
Occupational
Sickness Leave
Supervisor/Authorized
Physician
Department Manager, Head

Work Location Manager of Human
Resources
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4.2.4 Policy Details

All leave applications will be submitted using the forms as per the specified leave
entitlement policies.
4.2.4.1
Public Holidays
Company will grant the following recognized official holidays to its employees
with full pay:
i. Eid Al-Fitr:
Five (5) working days.
ii. Eid Al-Adha: Five (5) working days.

iii. National Day:
One (1) day.
In order to maintain operations throughout the year, employees whose shift

schedules require that they work during public holidays shall be paid overtime
as per the overtime policy.
4.2.4.2
Annual Leave
4.2.4.2.1 Qualification period
A new employee should have worked for nine (9) months from the
hiring date before being eligible to take annual leave. However,
exception to this will need to be justified by Department Manager
and approval by Function Head.
4.2.4.2.2 Annual leave accruement
1.83 working days per month on the basis of 12 months. After three
(3) years of continues service, the annual leave is 2.08 working
days per month on the basis of 12 months.
4.2.4.2.3 Scheduling of Leave
As far as possible annual leave periods need to be planned and
agreed at the start of the financial year and in case an employee
wishes to split his annual leave it should be communicated to the
Department Manager. While every effort will be made to
accommodate employees choice of leave period, the needs of the
Company take precedence and it may not always be possible to
grant specific dates.
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4.2.4.2.4 Deferring Annual Leave

For compelling business reasons or personal reasons, and with
approval of the Department Manager (or function Head for more
than 5 working days), an employee may defer up to 10 working days
of his leave entitlement of the current year to the following year;
provided that it is exceptional and justified.
4.2.4.2.5 Days Off and Public Holidays, Within an Annual Leave Period
Since leave is granted on the basis of working days, regular days-off
and public holidays falling within a period of annual leave are not
included within the leave.
4.2.4.2.6 Late Return from Annual Leave
Upon return of the employee from leave, he will report to his
immediate supervisor. If an employee, for unavoidable reasons, fails
to return from his leave on time, he must notify his supervisor
immediately of his delay, of the reason thereof, and of the expected
date of his return (in writing). This will require Function Head
approval.
An employee who fails to comply with the provisions of the above
and/or to present proper justifications to support his claim is liable to
disciplinary action.
4.2.4.2.7 Early Return from Annual Leave
When the employee returns from leave earlier than the stipulated
period, he will be allowed to defer the remaining part of his annual
leave to the following year on the condition that he obtains his
Functional Head approval.
4.2.4.2.8 Recall from Annual Leave
Requesting an employee to interrupt his leave to resume duty shall
be done on the approval of the Function Head.
He shall be reimbursed for the transportation costs and any other
additional costs he incurs during this recall.
4.2.4.2.9 Non-Saudi National Employees
The Company shall provide Non-Saudi national employees at the
time of their annual leave, one time per year an excursion round trip
tickets on Economy Class or as specified in his Employment
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Contract, or cash in lieu equivalent to the excursion airfare to their

country of origin covering self and their eligible in-Kingdom resident
dependents.
4.2.4.2.10 Payment, During Annual Leave
An employee proceeding on his annual leave will be paid minimum
three days prior to his departure.
i Regular salary; and
iiEntitled allowances for the total days of his leave, including
housing allowance and days-off and public holidays falling within

the period.
Upon payment of the employees salary and allowances, the usual
deductions from his payment will be made.
No payment in lieu of annual leave shall be made to an employee
during his employment; he will be paid for the balance of his
accrued annual leave upon his termination.
4.2.4.2.11 Annual Leave Advance Salary Request
Any Advance Salary will be paid only if the vacation period ends
after the scheduled pay day of each month and leave period is not
less than 10 working days.
Advance Salary Request is to be submitted to HR before the 18th of
the month.
4.2.4.2.12 Work, During Annual Leave
Employees are prohibited from working for any other party during
their annual leave (whether paid or unpaid).
4.2.4.2.13 Sickness, During Annual Leave
An employee who falls sick during his annual leave will not be
eligible for sick leave unless the sickness requires him to be
admitted to a hospital, in such case the employee should inform his
immediate supervisor and Company physician about such sickness.
The employee, upon return will have to produce documentary proof
of the sickness and then will be granted sick leave. This needs to be
approved by the Company physician. The number of authorized
days for which the employee had fallen sick will be considered as
sick leave.
4.2.4.3
Marriage Leave
Upon an employees marriage, a paid leave for a period of five (5) working
days will be granted. Employee should submit marriage certificate along with
the leave application form.
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Child Birth
When a child is born to an employee during the course of his employment
with the Company, he shall be granted a paid leave for one (1) working day.
Employee should take this leave within 30 days of the child birth and should
submit birth certificate to avail this leave. A non Saudi national employee can
avail this leave if he is on a marital status in the employment contract.
4.2.4.5
Relatives Death
In event of the death of an employees spouse, ascendant
(parent/grandparent) or descendant (children/grandchildren) the employee
will be entitled to paid leave for three (3) working days. Death certificate
should be submitted to avail this leave.
4.2.4.6
Emergency Leave
In emergency cases which cannot be postponed and require the immediate
presence of the employee, the employee may take a maximum of ten (10)
working days during the calendar year. The maximum permissible leave is
three (3) working days for each emergency leave.
4.2.4.7
Hajj Leave
Once during employment with the Company, a Muslim employee will be
granted a Hajj leave of five (5) working days with pay if operation
requirements permit.
Advance permission from an employees Department Manager must be
received at least one month in advance in order to avail of this leave.
4.2.4.8
Examination Leave
A Saudi employee who is pursuing his studies at an educational institute or
university and is required to sit for an examination shall be granted leave
with full pay for the actual number of days of the examination. An employee
should not be re-appearing for examinations, it should be his first attempt
and his enrolment in the institution should have prior approval from the
Company.
Furthermore, an employee shall have to produce the following documents to
avail of this leave.
i Certificate of enrolment at an educational institution.
iiEvidence of attendance for all days of the examinations.
4.2.4.9
Unpaid Leave
On an annual basis employees are allowed unpaid leave up to a maximum of
thirty (30) calendar days. Unpaid leave is granted after an employee has
exhausted his annual leave entitlement.
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4.2.4.10 Sick Leave

Employees will be granted sick leave on an annual basis as follows:
i First thirty (30) days with full pay.
ii Next sixty (60) days with three fourth (3/4) pay.
iii Following sixty (60) days without pay.
4.2.4.11 Medical Escort Leave

When an employee is required to accompany his eligible dependent for
medical treatment within or outside the Kingdom, an employee may be
granted paid leave up to fifteen (15) working days per year.
(Please, Refer to the Health Care, Chapter 7, Page 49-50, 7.8.2)
4.2.4.12 Occupational Sickness Leave
Employees will be granted sick leave on an annual basis as follows:
i First six (6) months with full pay.
ii Next five (5) months with three fourth (3/4) pay.
See GOSI procedures-Industrial Accidents for more information.

4.2.4.13 Non-Industrial Sick Leave
Employees may be granted non-industrial sick leave only if approved by the
Company Physician following receipt of an appropriate medical certificate
detailing the illness and the need for absence from work.
4.2.4.14 Payment, During Sick Leave
i Up to a total of 30 Calendar days on full basic remuneration.
ii Up to a total of a further 60 Calendar days on 75% of full basic
remuneration.
iii Up to a total of a further 60 Calendar days leave without pay.
Sick leave will be granted on submission of a medical report verified by

Company physician and approved by the Work Location Human Resources.
If employee exhausts all sick leave days in a calendar year then his medical
status will be evaluated by the Company physician and will be treated in
accordance with Company and Labor regulations which will decide the
employability status of the employee.
4.2.4.15 Non-Industrial Illness
3.2.4.15.1 Notification of Illness
Employees who are unable to report to work due to illness, which
is not caused by or related to their employment, must advise their
departments within 48 hours and in due course forward a
certificate to this effect from a medical center.
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4.2.4.16 Salary Continuation While on Occupational Sick Leave

In case of a work related injury (including injuries sustained while commuting
to or from work) the employee is entitled to occupational leave at full pay for
a maximum period of six (6) months followed by a maximum period of five
(5) months with three fourth (3/4) pay. If after eleven (11) months, the
employee does not return to work, he will be required to undergo a medical
examination to establish whether he is likely to be able to return to work. If
medical examination establishes that the employee cannot return to work,
his services will be terminated with full end of service award and
compensation as per GOSI.
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Chapter 5: Salary Administration and Promotion
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5. Salary Administration and Promotion (In line with Compensation Administration Guidelines).
5.1 Overview
It is the Company's policy to administer the salaries & promotion of its employees in a
manner which attracts, retains, and motivates the competent and motivated personnel
required to manage and operate its business activities with maximum efficiency and
minimum cost.
5.2 Objectives
i. Continually monitoring competitor salaries and benefits as well as significant changes in
the cost of living in each area of operation.
ii. Taking into account significant differences between jobs.
iii. Rewarding employees based on the level of their work performance and on their
contribution to the Companys success.
5.3 JOB EVALUATION
It is the intent of the Company management, through job evaluation, to maintain
consistency in the compensation in proportion to the requirements of jobs.
5.4 JOB DESCRIPTION
A job description is intended to distinguish a specific job from other jobs in the Company.
It summarizes the purpose and scope of the job, outlines its duties and responsibilities,
and describes the skills and qualifications required for satisfactory performance. The job
description is used to objectively evaluate jobs with a view to assigning them to their
respective appropriate grades.
5.5 SALARY SCALE
The Salary scale comprises a number of grades that provide different salary levels where
differences between jobs are taken into account based on the Company Job Evaluation
System.
5.6 SALARY AND GRADE CRITERIA UPON EMPLOYMENT
New employee's basic salary and grade are defined as per the Entry Level Table of the
Compensation Administration Guidelines.
5.6.1
Maximum Pay:
No employee's basic salary shall exceed the maximum for his assigned salary
grade level.
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Minimum Salary:
A candidate, who has the minimum qualifications and experience required for the
job as specified in the job description, shall be hired at the minimum of the grade
range established for the position.
5.6.3
Hiring Rates Above The Minimum Of The Grade Range:

A candidate whose qualifications and years of experience exceed the minimum
requirements of the job, may be paid a starting salary exceeding the minimum of
the grade range established for the position in proportion to his qualifications and
years of experience required for the job provided such qualifications and years of
experience are job related.
5.6.4
Transfer Within Same Department and Increase in Salary:

If an employee may be temporarily assigned the tasks of a job at the same or a
higher-grade level inside or outside the Dept. within the Company on a trial basis
or temporarily replaces another employee, this is not a promotion justifying an
increase.
5.7
ANNUAL INCREASE
An annual increase may be granted to an employee in recognition of his job performance
during the year. The percentage of such increase is based on the employees
performance evaluation rating. However, an employee who has already reached the
maximum of his jobs salary range cannot receive an increase which will take him above
this limit.
5.7.1
Considerations in Granting Annual Increase:

An annual increase is not automatically granted to an employee, but is governed
by a specific policy. Nevertheless, every employee must be taken into
consideration in preparing the annual increase budget. This does not mean that
every employee is guaranteed a salary increase.
5.7.2
Annual Increase and Promotion Budget:

Every year the Company Management decides the annual increase and promotion
budget as a percentage of total basic salaries of employees based on Advanced
Management recommendation. Annual increases and promotion increments are
part of the related approved budget according to approved Company policy.
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Annual Increase Percentage:

An employees annual increase is between zero and ten percent (0-10%) of his
current basic salary, subject to Advanced Management recommendation.
5.7.4
Effective Data of Annual Increase:

Annual increase for all employees (if granted) shall be effective as from 1st April
every year.
5.7.5
Eligible Employees:
In order to be eligible, the employee must have adequate performance appraisal
rating and must have not less than one year in the job. For new employees, the
increase shall be pro-rata based on the period of their service, provided they shall
have successfully completed the probationary period.
5.8
SALARY ADJUSTMENT
In exceptional cases where it is found that an employees salary is underestimated based
on his job evaluation, the authorized official may adjust the employees salary based upon
a recommendation by the employees department reviewed by Human Resources and
Approved by EMT. The salary must be in agreement with the job evaluation, provided the
employee satisfies all the job requirements and has a performance appraisal rating not
less than Very Good. Such salary adjustment shall be effective from the month following
the date of approval thereof.
5.9
PAYMENT OF SALARIES
Salaries are paid to employees in Saudi Riyals during the last week of each Gregorian
calendar month. The salary shall be deposited in the employees bank account, as
designated in writing by him at local bank. If the payday is a holiday, the salary shall be
paid on the preceding working day.
5.9.1
Deductions:
Salaries of all employees are subject to certain deductions required by
Government Regulation or authorized by the Employee. Such deductions may
include, but are not restricted to, authorized contributions to social insurance plan
by employees or repayment of personal debts to the Company.
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Pay Slips:
Every month on a date prior to the deposit of salaries as their respective accounts,
all employees receive either manual or electronic pay slips showing details of their
monthly payable amounts, deductions and net pay.
5.10
PROMOTION
Employees are promoted on the basis of merit, job performance and efficiency.
5.10.1 Basis for Promotion:
The basis for promotion is the employees efficiency and excellence in job
performance as evidenced by performance appraisal reports. The basic salary
increase for a promotion will not exceed ten percent (10%) of employees prepromotion basic salary in any one job performance period, provided the salary
shall neither exceed the maximum salary limit nor shall it be less than the minimum
salary limit for the salary grade.
5.10.2 Conditions of Promotion to a Higher Position:
i.
ii.
iii.
iv.
v.
vi.
A vacancy exists within the approved organizational structure.

Employee shall have the required qualifications for the higher position
and shall be the best candidate.
Minimum of one year since the employee was last promoted.
Employees last performance appraisal rating was not less than Very Good.
Employees immediate supervisor recommends promotion.
The EMT has the authority to approve the promotion.
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Compensation and Benefits
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6.1 Overview
The policy covers all aspects of benefits, compensation, allowances, and reimbursements
provided to employees and the rules that govern their applications.
6.2 Objective
The objective of this policy is to compensate employees and to maintain a certain level of
quality of life as its the Policy of the Company to maintain an acceptable remuneration
package system that will:
i
Attract and retain suitable qualified employees.
ii
Reflects the evaluated differences between levels of jobs.
6.3 Responsibility
It is the responsibility of the Human Resources to recommend the appropriate benefit,
allowances, and compensation and their interpretation.
6.4 Policy Details
6.4.1
Transportation Allowance
6.4.1.1
Purpose
The purpose of this allowance is to enable the employee to cover
expenses incurred in commuting to and from his place of work.
6.4.1.2
Details
Monthly Transportation allowance will be allocated as 10% of the monthly
basic salary of an employee, restricted by a minimum of SR. 500 and a
maximum of SR. 1,500 except the below table:
Level
Allowance
President & CEO
10% of Basic Salary (No Limitation) or Car with

maximum value of SR. 550,000.00
VP / General Manager
10% of Basic Salary (No Limitation) or Car with

maximum value of SR. 350,000.00
Managers
10% of Basic Salary with maximum SR. 2000 or Car

as per the Company Policy
6.4.1.3
Unpaid Company Transportation

Transportation allowance will not be paid in the following cases:
i. Employee is assigned a 24-hr Company vehicle.
ii. Transportation is provided by the Company.

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Details
Any Saudi employee working in the Industrial Security Department shall
be eligible for an Industrial Security Allowance, which will be 15% of the
monthly basic salary.
Shift Allowance
6.4.3.1 Purpose
The Company recognizes that certain work patterns, necessary for
operations are less convenient for employees as compared to a standard
working day.
6.4.3.2
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Industrial Security Allowance

6.4.2.1 Purpose
The purpose of this allowance is to fulfill with the regulation of the Higher
Commission of Industrial Security.
6.4.2.2
6.4.3
Rev.
Date
Page
Details
Employees working on a rotating shift pattern will be paid a fixed shift
allowance of 15% of the monthly basic salary.
Housing Allowance
6.4.4.1 Purpose
To assist employees in bearing the costs of accommodation, the
Company provides a housing allowance.
6.4.4.2
Details
Employees who are not provided with housing will be paid an annual
housing allowance equal to three (3) basic salaries except for board of
appointees are eligible for four (4) basic salaries.
i.
6.4.4.3
This amount will be subject to a minimum of SR. 25,000 annually for

unmarried employees and SR. 40,000 annually for married
employees.
Advance Housing Allowance

i.
The employees who have fulfilled the Three (3) Months Probation
Period may apply for the (12) months advance housing allowance.
ii.
Employee may make a written request before the deadline for

advance housing allowance at least one moth.
iii. Employee should provide a guarantor to the advance housing
allowance, who is also an Advanced employee and not one guarantor

to another employee.
iv. In case of termination of employment with the company and in the
absence of receivable from employee to cover the amount, the

guarantor shall be the one to shoulder the remaining balance of the
advance housing allowance.
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The salary deduction of the advance housing allowance will take

effect on the same payroll month when the advance housing
allowance is granted.
v.
vi. Employee who have availed the advance housing allowance and wish
to make advance payment for the remaining installments to renew the

advance housing allowance, conditions are as follows:
6.4.5
Employee has the right to pay the remaining installments for

advance housing allowance at any time.
If advanced repayment is made, the employee is not eligible for

another advance housing allowance before completing (12) month
from the date of receiving the advance housing allowance.
Furniture Allowance
6.4.5.1 Purpose
To assist employees in bearing the costs of furniture, the Company
provides a furniture allowance.
6.4.5.2
Details
The Company pays a one-time furniture allowance to Saudi employees
who completed two (2) years continues service throughout their
employment in the company. Furniture allowance differentials that may
result from the change of an employees job during the employee service
with the company shall be paid. Employees who were previously
employed by the Company and returned to service are not eligible for
furniture allowance if they had been paid such allowance before they left
service and it was paid in the full amount allowable for the employee. In
the event that this allowance has not been fully depreciated before
leaving service, the employee shall repay the Company the balance of
said allowance. The furniture allowance eligibility as per the below table:
Level
6.4.5.3
Amount
President & CEO
90,000.00
VP / GM / Manager
75,000.00
Other Employee
50,000.00
Depreciation Period and Recovery of Furniture Allowance
The furniture allowance is depreciated in full after five (5) years from date
of receipt thereof. Furniture allowance shall be recovered from the
employee if the employee is resigned or terminated. Termination of
employment because of the employees death or total permanent
disability shall be excluded.
6.4.6
Emergency Response Team Allowance (ERT)

6.4.6.1 Purpose
This is necessary for the safety of the individual emergency response
team member and for the protection of Advanced plant and property.
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Details
The Company pays all employees in the emergency response team a
special monthly allowance of SR. 500 as per the approved policy of
emergency response team eligibility, qualification, membership and
incentive.
Employment Allowance
6.4.7.1 Purpose
To assist Saudi employees in settling into a new job location at the
commencement of employment after completing the probationary period.
6.4.7.2 Details
An employment allowance of one basic Salary with a minimum SR. 5,000
and a maximum SR. 10,000 is to be paid to all newly appointed Saudi
employees. However, those who were re-hired shall not be entitled to
receive this allowance again.
6.4.8
Relocation Allowance
6.4.8.1 Purpose
The primary objective of this policy is:
i. To compensate employees for a change or interruption in lifestyle due
to relocating from one work location to another on a permanent basis.
ii. To encourage employees to relocate and maintain an even distribution
of manpower across different work locations.
6.4.8.2 Details
The Company pays a transferee a relocation allowance of two month basic
salary with minimum of five thousand Saudi Riyals (SR. 5,000) to help
them defray the moving and travel expenses associated with his transfer
from one area to another.
6.4.9
Overtime
6.4.9.1 Purpose
To compensate for the additional time worked beyond eight (8) hours per
day to meet operational requirements, Company shall pay an overtime
allowance.
6.4.9.2 Eligibility
i.
All employees are financially compensated for overtime.
ii. Managers and above are not eligible for overtime and therefor shall be
compensated with additional five (5) working days which will be added
to their annual vacation.
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6.4.9.3 Details
i.
Upon work requirements and with the prior approval of the Functional
Head, if an employee is required to work overtime in excess of their
normal daily working hours, an overtime allowance is paid.
ii.
Overtime worked on regular workdays will be paid at one and a half

times the employees normal time.
iii. Overtime worked on employees rest days and public holidays will be
paid at double the employees normal time.

6.4.9.4 Standby Duty
Some jobs require that an employee be on standby duty in his residence
or in the area of the city where he works to respond to any emergency
calls. Compensation for standby duty for all levels of employees (except
incumbents of Executive Management Team) is paid as follows:
6.4.9.4.1 Weekly Working Days
Compensation is equivalent to two (2) normal working hours per
24 hours on standby duty.
6.4.9.4.2 Official Holidays and Weekends (Weekly Rest Day)
Compensation is equivalent to four (4) normal working hours per
24 hours on standby duty, whether the employee was called or
not.
6.4.9.5 Call to Work
If the employee is called while on standby duty, actual hours worked are
counted on the following basis.
i. After official working hours during weekdays One hour is counted as
one and a half hours

ii. Official holidays and weekends (weekly rest days) One hour is
counted as two hours.

6.4.9.6 Overtime Pay Calculation
Overtime pay is calculated according to the following formula:
i. Normal Working Days:
Overtime Pay (Time and a Half) = (1.5 x Monthly Basic Salary x Actual
Hours Worked)/240
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ii. Weekly Rest Days and Official Holidays (Double Time):

Overtime Pay = (2 x Monthly Basic Salary x Actual Hours Worked ) /
240
6.4.9.7 Overtime during periodic maintenance and construction period for
Manager and above
Incumbents of Managers and above who are authorized to work overtime
during periodic maintenance and construction period will be compensated
on the same basis as other employees, provided that such compensation
shall not exceed 25% of the employees monthly basic salary.
6.4.10 Continuous Service Award
6.4.10.1 Purpose
Company endeavors to promote loyalty towards the organization and
appreciate employees who contribute in the form of sustained
performance and continuous service.
6.4.10.2 Details
i. Service award is based on the length of service.
ii.
For the first five years of continuous service an employee is given an

award/gift equivalent to SR. 2,500 this amount allocated for the gift is
increased by SR. 2,500 for every five-year period of continuous service
put in by the employee.
6.4.11 Medical Care Related Services

(Refer to Chapter 7 and Medical Insurance Policy and Other Medical Services)
6.4.12 Business Assignments
6.4.12.1 Overview
i. Any official work (which may include, but is not restricted to
commercial visits, sales visits, training, visits to vendor locations,
project execution) at a location that is away from the regular work
location of the employee.
ii. The business assignment policy specifically relates to the
reimbursement provided to employees when they have to travel on
business related issues.
6.4.12.2 Purpose
The primary objective of this policy is:
i. To reimburse employees fairly for expenses incurred during travel.
ii. To encourage people to travel as and when a business need arises.
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6.4.12.3 Details
6.4.12.3.1
Approval Authority
Approval Authority for Business Trips is as per the Approved
Authority Schedule.
6.4.12.3.2
In Kingdom
i. For short deputation (up to 150 km) assignment trips within
the area that do not require an overnight stay, such as from

Jubail to Dammam the Company pays an employee an
allowance according to the following:
a. SR. 250 per day when using own car.
b. SR.100 per day when using a Company car (provided
with fuel).
ii. If the assignment requires an overnight stay, the InKingdom per diem policy will be applicable.
iii. For deputation (more than 150 km) assignment trip, the
following chart indicates the various provisions for the
employee:
Ticket
Class
Per Diem
President & CEO
First
SR. 1,500
First
SR. 1,250
Manager
Business
SR. 1,000
Other Employee
Economy
SR. 750
Level
iv. 20% of per diem will be deducted if transportation is

provided.
v. 40% of per diem will be deducted if accommodation is
provided.
vi. 40% of per diem will be deducted if food is provided.
vii. Airport transfers is provided by the Company or
reimbursed at SR. 300 between Jubail and King Fahad
Airport for round trip.
viii. Airport transfer at the destination point between airport

and hotel/ business assignment location is reimbursable
at actual with maximum reimbursable amount SR. 200 for
round trip. Supporting invoices are to be submitted.
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ix.
In case of air ticket class upgrade in kingdom, VP

approval is required.
x.
The maximum reimbursable accommodation with

supporting receipts is as follows for the following
positions:
Level
Accommodation
Managers and
Above
Reimbursable at Actual Cost.
The reimbursable expenses should not

Other Employee exceed daily per diem unless accompanying
department manager level or above.
xi.
For period beyond 30 days, per diem is given to

employees for the first 30 days (including travel day(s)) as
per the in-kingdom per diem schedule. After the initial
period of 30 days, a monthly allowance of 100% of the
basic salary of the employee subject to minimum of SR.
4,000 and maximum of SR. 8,000 is paid. This amount is
in addition to provision of furnished accommodation to the
employee, as per HR standards.
6.4.12.3.3 Out of Kingdom

i. For Period Between 1 to 60 Days:
Level
Ticket Class
Per Diem
President & CEO
First
SR. 2,500
First
SR. 2,000
Business
SR. 1,500
Manager
Other Employee
Economy
SR. 1,200
ii. 20% of per diem will be deducted if transportation is provided.
iii. 40% of per diem will be deducted if accommodation is
provided.
iv. 40% of per diem will be deducted if food is provided.
v. Airport transfers is provided by the Company or
reimbursed at SR. 300 between Jubail and King Fahad
Airport for round trip.
vi. Airport transfer at the destination airport is reimbursable
at actual for positions General Manager and above, while
for Managers and below, the maximum reimbursable
amount is SR. 500 for round trip (to and from the airport).
Applicable supporting invoices are to be submitted.
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vii. In case of air ticket class upgrade for GCC, VP approval

is required, all tickets class upgrade outside GCC
required President & CEO approval
viii. The maximum reimbursable accommodation is as follows
for the following positions:
Level
Accommodation
Managers and
Above
Reimbursable at Actual Cost.
The reimbursable expenses should not

Other Employee exceed daily per diem unless accompanying
department manager level or above.
ix. Other Charges: actual expenses such as visa charges &
airport tax are reimbursed at actual cost. Applicable
supporting invoices are to be submitted.
x. For period beyond 60 days, per diem is given for the first
60 days (including travel day(s)) as per out-kingdom per
diem schedule. After the initial period of 60 days, a
monthly allowance of 100% of the basic salary of the
employee is paid subject to a minimum of USD. 3,000 and
a maximum of USD. 5,000. This amount is in addition to
provision of furnished accommodation including basic
utilities (water, electricity and heating gas) to the
employee, as per HR standards.
6.4.12.3.4 Travel Days

i.
Travel days will be considered as part of business/training

trip and will be paid with per diem. The employees will not
be reimbursed during working days off against the travel
days failing on weekends and public holidays.
ii. The following table determines the travel days with

respect to the distance being traveled for the trip:
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Jubail
Eastern Province in KSA
Central Province in KSA
a day
West, North and South in KSA
1 day
GCC
1 day
Iraq, Jordan, Syria, Turkey, Yemen, Iran

Singapore, Hong Kong, Philippines, Pakistan,
India, Malaysia, Indonesia and Thailand
Europe
North and Central African Countries
2 days
South Africa, Botswana, Namibia, Mozambique

Japan, Korea, China, Taiwan, Australia, New
Zealand
North And South America
4 days
6.4.13 Education of Children

6.4.13.1 Purpose
This policy ensures that Non-Saudi National employees on family status
contract are provided with educational assistance for their children in the
Kingdom in order for the childrens employee to continue their education
as in their home country if possible.
6.4.13.2 Details
Non-Saudi National employees will be reimbursed for the educational
cost for their dependent children with a Maximum of four (4) children at
their embassy schools, or equivalent type of educational institutions if
not found; for ages (5) up to (18) years old. The four children education
cost will be covered with a maximum reimbursement for each child not to
exceed 10% of the annual basic salary. All reimbursement is subject to
the following:
i.
Prior Company approval should be obtained.
ii.
Employee should obtain invoices from the school and submit it to

the Company for reimbursement.
iii.
The children are physically resident in the Kingdom of Saudi Arabia

(Studying at Schools in KSA).
iv.
Schooling fees does not cover Nursery or Kindergarten levels and

levels above high school.
v.
The cost coverage will include school tuition, transportation, and

school books.
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Eligible employees are required to submit supportive documents in

witness of children age, and school registration.
6.4.14 Medical Benefits

(Refer to Chapter 7 and Medical Insurance Policy and Other Medical Services)
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Chapter 7: Health Care
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7. Health Care
7.1 Overview
The policy covers all medical issues including referrals, medical escort and industrial
sickness/injuries.
7.2 Objective
It is the policy of the Company to provide competent and adequate free medical care for
employees and their eligible dependents within reasonable costs.
7.3 Responsibility
i
Company Physician:
Responsible for recommending, establishing and

maintaining a suitable level of medical care for
employees and their eligible dependents and a
competent industrial hygiene service, annual
checkup once every year, either directly or in
collaboration with other agencies; or whenever it
is required.
ii
Responsible, in conjunction with the Company

Physician when appropriate, for:
iii Finance & Accounting:
Making recommendations to the Top

Management about levels of medical care
and benefits.
Administering
and
managing
directly
personnel aspects of medical procedures and
systems related to the health care policy.
Giving advice and assistance to Line

Managers and Supervisors on these
personnel aspects.
Administering Health Insurance Policy and other

related claims (Whenever is applicable).
7.4 Details
Advanced provides healthcare for its Saudi employees and their eligible dependants, as
well as for its Non-Saudi employees and their eligible dependents residing with them and
have regular legal residence authorization (Iqama) according to the labor contract at the
medical facilities specified or agreed to by the company.
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7.5 Medical Treatment Expenses

7.5.1 Rules for medical expenses reimbursement:
i. Advanced will shoulder 100% of the medical expenses incurred by the
employee or his dependants and provided by the company assigned medical
facilities. In case the employee wishes to seek medical treatment outside the
network medical facilities (non-assigned), Advanced will bear 80% of the
medical treatment expenses and 100% of the cost of medications, provided that
the employee must submit medical claims including all itemized bills and
medical prescriptions acceptable to the Advanced.
ii.
Medical treatment or surgery operations performed outside the Kingdom of

Saudi Arabia during official duty missions or vacations require Advanced
management prior approval, unless emergency medical treatments.
7.5.2 Rules for medical treatment of Saudi and Non-Saudi employees children
i. Saudis children: The company will continue to provide the health care coverage
for Saudis male children till they are employed or they reach the age of 25 years
whichever occurs first. The Company will continue to provide health care coverage
for females till they get married or employed whichever is first.
ii. Non-Saudis Children: The Company will cover only four (4) children not exceeding
the age of 18 years, provided that they legally reside in K.S.A.
7.5.3 Rules for medical care for Saudi employees parents
i. The employee should provide support documents issued by the court of religion
located in the same city where the employee works.
7.5.4 Expenses covered under Medical Care Program
i. Wheel chair for cases of paralysis and fractures.
ii. Crutches for cases of paralysis and fractures.
iii. Leg varicose socks.
iv. Medical brace for back pain, spinal deformities and Disk.
v. Neck disk collar.
vi. Diabetes Mellitus, sphygmomanometer, nebulizers.
7.6 Medical Treatment of Emergency Cases
i
In emergency cases involving immediate medical care such as heart attacks, the
employee and his dependents may see the nearest doctor or hospital. The company
shall pay the costs of treatment and medications subject to submission of required
supportive documents such as prescriptions and bills after duly approved by the
company's doctor.
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Medical care coverage shall be extended for the deceased Saudi employees
dependants for a period of one year effective as of the date of the death.
7.7 Medical Referral to Specialized Hospital

In case that the patient condition requires specialized medical treatment not provided by
the company assigned facilities, the patient may be referred for admission to a specialized
hospital in the Kingdom at company's account.
7.7.1
Rules for Out of Kingdom Medical Treatment

The Company will carry treatment outside K.S.A. for employee/dependant, this
needs a Medical Report from assigned medical facility showing that the illness or
treatment cannot be treated in K.S.A. and the treatment procedure is not available
as well. The Medical Report should include the following:
i
Type of Disease/Sickness
ii
Reasons of inability of in-Kingdom treatment.
iii
Suggested country where the treatment will take place.
iv
The necessity of companion with the Patient.
Expected period/duration of treatment.
vi
Any other necessary information the company may ask for to take decision.
7.7.2 Approval of Out of Kingdom Medical Treatment

Medical treatment outside the Kingdom requires company's prior approval.
7.8 Services related to healthcare in the event of referral to hospitals inside or outside
the Kingdom:
7.8.1 Transportation
The Company will ensure the transportation in the employee ticket class eligibility if
the treatment place was outside the geographical area of the working place, as
well as for the companion according to recommendation of a Medical Report, the
company will consider the transportation class the situation of the patient sickness.
This needs the pre-approval from the authorized person and decision issuance in
this regard. The supplementary services that need referral treatment inside and
outside K.S.A.
7.8.2 Room, Board and Transportation inside the city of the treatment for the
Patient and his Companion:
The Company will cover the actual expenses for Room, Board and Transportation
for both the Patient and his Companion; if it is proven that his case requires a
companion as follows:
i.
In-Kingdom: The Company shall pay SR 750 to the patient and his companion.
In case the patient is hospitalized, SR 375 shall be payable for his companion.
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ii. Out-of-Kingdom: The Company shall pay SR 1000 to the patient and his
companion. In case the patient is hospitalized, SR 500 shall be payable for his
companion.
7.9 Exclusions from the Medical Care Program
7.9.1 This policy does not cover claims arising directly or indirectly from or
consequent upon or in regard to:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.
xvi.
xvii.
Self-inflicted injury whilst sane or insane.

Impairment of an assured persons intellectual faculties by the abuse of
stimulants or depressants or by the illegal use of any solid, liquid or gaseous
substance.
Cosmetics surgery or treatment unless necessitated by an accidental bodily
injury, not otherwise excluded, occurring whilst the assured persons is covered
under this policy.
General health examinations, vaccinations (except those which declared by the
Ministry of Health) and/or prophylactics which are not for the treatment of an
ailment.
Treatment of any condition as a result of alcohol or drug abuse.
Thermal cure, rest cure, sanitaria or custodial care.
Any ailment/injury arising as a direct or indirect result of an assured persons
occupation.
The treatment of any venereal or sexually transmitted disease.
HIV (Human Immune Deficiency Virus) and/or HIV related ailment including
AIDS (Acquired Immune Deficiency Syndrome) and/or any mutant derivative or
variation caused.
All dental related services or treatment not occasioned by violent external
means Dental charges relating to prosthesis and false teeth are excluded
howsoever caused.
Sight and hearing tests and provision of visual or hearing aids unless
necessitated by an ailment (except which mentioned in optical & hearing aids
cover as per Council of Cooperative Health Insurance -(CCHI)- limit)
Transportation other than by local licensed ambulance service.
Hair fall, wigs and/or toupee.
Birth control devices, pills and/or baby supplies.
Non acute psychiatric treatment or nervous or mental disorder.
Allergy testing of any nature but if they are described by doctor and part of the
treatment of illness covered.
Any treatment connected with fertility and/or sterility and/or impotence and/or
contraception and/or hormone treatment.
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xviii.
Any hospital residential or similar charges incurred by the companion of the

assured person suffering the ailment (except which mentioned in basic
schedule).
7.9.2 This policy does not cover the health benefits in case of claims arising from:
i. War, invasion, act of foreign enemy, hostilities (whether war be declared or
not), civil war, rebellion, revolution, insurrection or overthrowing of government
by force or military or usurped power.
ii. Ionizing radiations by radio activity from any nuclear fuel or from any nuclear
waste from the combustion of nuclear fuel, the radioactive, toxic, explosive or
other hazardous properties of any explosive nuclear or nuclear component
thereof.
7.9.3 The assured person engaging in or taking part in:
i.
Armed forces or police force service or operation.
ii.
Winter sports, skin diving involving the aid of breathing apparatus, rock
climbing or mountaineering normally involving the use of ropes or guide,
potholing hunting on horseback or diving or riding in any kind of race,
parachuting or hang-gliding, water skiing, jet skiing or undertaking any other
abnormally hazardous pursuit.
iii.
Driving or riding on motor cycles or motor scooters other than mopeds.
iv.
Air or sea travel except as passenger.
v.
Deliberate exposure to exceptional danger (except in an attempt to save
human life).
vi.
Riots, strikes, terrorism, or any criminal act.
7.9.4 Medical expenses incurred outside the Kingdom of Saudi Arabia which
mentioned in geographical limits.
7.10 Rehabilitation of disabled children:
The Company shoulders 80% of the costs incurred by the employee for the rehabilitation
of his disabled children including costs of transportations in accordance with the following
controls:
i.
Rehabilitation shall be carried out in the Kingdom in a center acceptable to the

Company.
ii.
Lack of free rehabilitation facilities.
iii.
The employee is not receiving any government support or support from any other
entity.
iv.
A medical report acceptable to the company indicating the type of disability and the
required rehabilitation.
v.
Approval of the competent authority.
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7.11 Industrial Accident / Occupational Sickness

When an employee suffers an industrial accident or an occupational Sickness, the
General Organization for Social Insurance (GOSI) will apply.
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End of Service
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8. End of Service
8.1 Overview
This policy applies to voluntary and involuntary employee separation.
8.2 Objective
The policy endeavors to ensure that end of service is handled in a consistent manner
based on the type of termination.
8.3 Responsibility
i
It is the responsibility of the Human Resources

Department to ensure compliance with this policy.
ii
Employee:
Is responsible to comply with rules and

regulations and obtain any clearances needed as
a part of the end of service procedure.
iii Supervisors/Department Managers: Are responsible to ensure that all rules and
administrative tasks are completed for an
employee who is ending his service.
8.4 Policy Details
8.4.1 Types and Conditions for Termination
Employees could be terminated under any one of the following situations:
i.
Employee Resignation:
Employee can choose to resign from the services

of the Company after he has discussed the
reasons for the same with his Immediate
Superior.
ii.
During Probation:
If the Company finds the employee unfit during

the probationary period, it may terminate the
services of the employee without notice.
iii.
Due to Medical Unfitness:
Employees who are proven to be medically unfit

by an approved medical authority are liable to be
terminated from the services of the company on
medical ground will be entitled for compensation
of SR. 200,000.
iv.
Due to Offences:
Termination due to offences as listed in the

Schedule of Rewards and Penalties listed in the
Company Work Rules.
Non-Renewal of employment contract:

Employees
with specified term
contracts shall be notified one month in advance
of termination of services by the Company. In the
non-specified term contracts, the employees
services may be terminated at any time during
v.
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the contract period provided the employee is

given termination notice one month before.
vi.
Due to layoff:
Owing to business exigencies,

services are liable to be laid off.
employees
vii.
Due to Retirement:
On attaining the retirement age of sixty (60) years

(Hijra), however; for exceptional cases, the
approval of the President and CEO is required.
viii.
Breach of Employment Contract: An employee is liable to be terminated when he

breaches a clause of the employment contract.
ix.
Government Directives:
An employee can be terminated in accordance

with Government directives; end of service will be
paid as per the said directive or the Company
policies as applicable.
x.
Force Majeure:
Employee services are liable to be terminated

due to a Force Majeure, in such cases end of
service benefits will be paid to the concerned
employee.
xi.
Due to Employee Death:
The employee services will be terminated and his

compensations will be valued at SR. 200,000 and
distributed according to the law. Wages
entitlement will be calculated in full at the end of
the month, regardless of when the death occurred
during the month.
8.4.2 Notice Period

With exception to termination for cause listed in the schedule of Penalties and
Rewards, both Company and employee are required to submit a written notice one
month prior to the effective date of separation.
8.4.3 Payment in Lieu of Notice Period
If either party fails to submit such a notice in due time, the Company or employee
as the case may be will have to compensate the other party for the requisite period
using the employees basic salary as the basis for calculation. 30-day notice period
on termination of contract, unless otherwise specified in the employment contract.
The company reserves the right to waive this notice period in lieu of payment of
such notice.
8.4.4 End of Service Award
For details refer to Sec 8.4.9.2.3
8.4.5 Termination Proceedings
The HR Manager will be responsible for managing the termination process. With
respect to termination, the initiating, reviewing and authorizing roles of some of the
key types of terminations are given in the following table:
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Approval Authority
Resignation
Employee/ Immediate
Supervisor / Department
Manager
Function Head
Due to non competence
Immediate Supervisor /
Department Manager/
Function Head
HR Manager
During Probation Period
Department Manager/
Function Head
HR Manager
Due to medical unfitness
Approved medical authority
/ Company Physician
GM, HR and EMT

Next higher authority (not
less
than
Department
Manager)
and
HR
Manager
Non renewal of
employment contract
Immediate Supervisor
Due to layoff
Function Head and HR

Manager / GM and HR
President and CEO
Due to disciplinary action
Department Manager,
Function Head and HR
GM, HR and EMT
Due to retirement
HR Manager / Department
Manager / Function Head
GM, HR and EMT
In case of resignation, the Immediate Superior in consultation with the next higher
level must identify in writing the acceptance of resignation as well as identifying
both last working day and last day on payroll.
8.4.6 Exit Interview
An employee, whose service is terminated due to resignation and non-renewal of
employment contract on the part of the employee, will have an exit interview with
the Exit Interview (Ad-Hoc) Committee to be formed by the GM & HR Departments,
if required.
The objective of the exit interview is to consolidate the employee feedback on
circumstances leading to leaving the work.
8.4.7 Clearances
The Human Resources function will issue the employee whose service is being
terminated with a final clearance form. The employee needs to obtain no dues
certification from the concerned departments in order to qualify for final payment
and service certificate. The Employee is eligible for the following:
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Leave
Encashment
Service
Certificate
Re-employment
Eligibility
End of Service
Benefits
Resignation
Yes
Yes
Yes
Yes
Non
competence
Yes
Yes
Yes (on acquisition

of additional
qualifications)
Yes
Medical
unfitness
Yes
Yes
Depending on
Medical reports
Yes
Due to non
renewal of
employment
contract
Yes
Yes
Yes
Yes
Due to
disciplinary
action
Yes
Yes
No
Yes (except for

termination for
cause as per
the Labor Law)
Due to layoff
Yes
Yes
Yes
Yes
Retirement
Yes
Yes
Yes
Yes
8.4.8 Farewell Party

For employees who separate on conditions other than scheduled offence, the
respective departments may organize a farewell party and a memento/gift will be
given to the concerned employee.
8.4.9 End of Service Entitlement
8.4.9.1 Purpose
The purpose of this policy is to detail the employee entitlements when his
service with the Company is terminated.
8.4.9.2 Details
Company will pay End of Service Benefit (ESB) within the guidelines as
per the Company Policy as follow:
8.4.9.2.1 Eligibility
Employee will only be eligible for this benefit if he resigned or
his contract with the Company terminated without a cause.
Service period is the period from the date that the employee
joined the Company as mentioned in the employment contract.
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8.4.9.2.2 ESB Base Pay

i Employees Directly Hired by the Company:
One month pay of (Basic Salary + Housing Allowance +
Transportation Allowance).
However the ESB calculation for Transportation Allowance
should not exceed (GMs SR. 4,500, VPs SR. 5,000, CEO and
President SR. 6,000).
In all cases above, Basic Salary means the Basic Salary of the
employee at the last day on payroll.
8.4.9.2.3 ESB Calculation
Employees of the company will be entitled to an award

when their services end and will be calculated as follows:
Saudi Employees
One month's salary for each of the first five years of service.
The salary of two months for each year of service following
the first five years.
Non-Saudi Employees
A half month's (15 days) salary for each of the first three
years.
One month's salary for each year of service following the

first three years.
58

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Division

Integrated Human Resources Department Manual

Manpower Planning and Recruitment

Work Schedule and Leaves

Salary Administration and Promotion

Compensations and Benefits

Advanced Petrochemical Company

Integrated Human Resources Department Manual

Advanced Petrochemical Company

Integrated Human Resources Department Manual

Manpower Planning and Recruitment

Work Schedule and Leaves

Salary Administration and Promotion

Compensations and Benefits

Advanced Petrochemical Company

Integrated Human Resources Department Manual

1.4 Policy Clarifications

Administering Health Insurance

Is the non-employee trainee engaged by the Company to be

The authority vested in an individual to approve / disapprove

Employees regular monthly basic salary, which excludes all

The Board of Directors of the Company

Means the Advanced Petrochemical Company.

Advanced Petrochemical Company

Integrated Human Resources Department Manual

These Guidelines have been designed and formulated by HR,

Students from universities and colleges trained by the

Head of a Department within a Function.

Employees who have been directly hired by Company.

The persons who have been designated as dependent(s) on

Is a person who is recruited as a permanent employee by the

Executive Management Team

A committee comprising of the CEO, President, Vice

Head of a function or General Manager who manages a

The General Organization for Social Insurance.

The Government of the Kingdom of Saudi Arabia.

The date the employee joins the Company as mentioned in

The Kingdom of Saudi Arabia.

Advanced Petrochemical Company

Integrated Human Resources Department Manual

A married employee whom declared as married in the

Approval Authority Schedule

Manual of Delegated Authority.

Next Higher Authority

An employee who is the Immediate Superiors superior.

The place mentioned as the point of origin in the employee

Is the policy to promote and develop quality Saudi nationals to

An employee, who may be married or single, whom declared

Non-employee students trained by the Company.

Years or months of the Gregorian calendar unless specified

Advanced Petrochemical Company

Integrated Human Resources Department Manual

Chapter 2: Work Relations

Advanced Petrochemical Company

Integrated Human Resources Department Manual

Are responsible for adhering to work rules established

Human Resources Department:

Is responsible for handling any breach of policy.

iii Concerned Department:

It is the responsibility of the concerned departments to

2.4 Policy Details

Company employees are prohibited from having a direct or indirect

No employee should hold a controlling personal stake in another firm,