Askari Investment Management Limited

HR Policy
INDEX
1.
GENERAL
5.
INCENTIVES AND AWARDS 1.1 Short title
5.1 Variable Compensation Plan
1.2 Commencement and Application 5.2 Performance Awards (non-
monetary) 1.3 Definitions
6.
PAID LEAVE ENTITLEMENT 1.4 Regulations to form part of
Employment Contract 6.1 Annual/Sick Leave 1.5 Right to
Amend/Alter/Cancel/Waive or Modify Regulations 6.2 Conditions 1.6
Masculine Gender to include Feminine Gender 6.3 Maternity Leave
2.
WORKING DAYS & HOURS 6.4 Paternity Leave
3.
GRADES, APPOINTMENT, PROMOTION & RESIGNATION 6.5
Bereavement Leave 3.1 Tiers
7.
BENEFITS 3.2 Appointments 7.1 Hospitalization 3.3 Creation,
Abolition and Re-Designation of Posts 7.2 Gratuity
3.4 Probation 7.3 Provident Fund
3.5 Confirmation 7.4 Life Insurance 3.6 Resignation
8.
TRANSPORTATION FACILITY 3.7 Termination 8.1 Car 3.8
Dismissal 8.2 Fuel Reimbursement based on actual 3.9
Performance Review Report
9.
LATE SITTING COMPENSATION
4.
SALARY ALLOWANCES & PERQUISITES
10.
TRAVEL 4.1 Introductions
10.1 Domestic Travel 4.2 Salary
11.
ENTERTAINMENT 4.3 Leave Fare Assistance
12.
MOBILE PHONES 4.4 Allowances
13.
ADVANCE 4.5 Petrol
14.
TRAINING & DEVELOPMENT 4.6 Motor Vehicle
15.
SPECIAL POSITIONS 4.7 Furnishing Entitlement 4.8 Joining
Bonus

1.

GENERAL

1.1 Short title

These regulations may be called the employees service regulations, 2005.

1.2 Commencement and Application

These regulations shall be deemed to have come into force with effect from May 30, 2005. These
regulations shall apply to all executives (including CEO), officers, clerical and support staff of the
company other than:

a) Consultants/contract employees who will be governed by their contract of employment as

would be framed at the sole discretion of the management.

b) Persons engaged on temporary/daily wage basis.

1.3 Definitions

In these regulations unless there is anything repugnant to the subject or context:

1.3.1 "COMPANY" means Askari Investment Management Limited, Incorporated in

Pakistan, having its head office in Islamabad.

1.3.2 "BRANCHES" mean all the branches of the Company.

1.3.3 "CHAIRMAN" means the Chairman of the Board of Directors or any person
acting/officiating on his behalf.

1.3.4 "CHIEF EXECUTIVE OFFICER" means the Chief Executive of the Company,
or any person acting/officiating on his behalf.

1.3.5 "TIER" means the classification of posts or grade of employees.

1.3.6 "COMPETENT AUTHORITY" means the Chief Executive Officer or any

authority to which the Board of Directors delegates powers.
1.3.7 "EMPLOYEE" means full time employees of the Company on monthly salary and
includes executives, officers, clerical and support staff.

1.3.8 "OFFICERS" means full time employees of the Company but excludes
support staff.

1.3.9 "TEMPORARY EMPLOYEE" means an employee who has been engaged for
work, which is temporary in nature.

1.3.10 "PROBATIONER" means a person employed on probation against a substantive

vacancy.

1.3.11 "PROBATIONARY SERVICE" means service rendered during the period of

probations.
.
1.3.12 "DUTY" includes:

1.3.12.1 Service as a probationer.

1.3.12.2 Period of training in or outside Pakistan after becoming a regular employee.

1.3.13 "SERVICE" means and includes the period during which an employee is on duty
as well as on leave duly authorized by the Competent Authority, specified in these regulations,
but does not include any period during which an employee is absent from duty without permission
or overstays his leave unless specifically permitted by the Competent Authority.

1.3.14 "SALARY" means the amount to be drawn monthly by an employee as salary fixed
for him but does not include allowances.

1.3.15 "ALLOWANCE" means recurring or non-recurring payment related to the service,

other than Salary granted to an employee, e.g. petrol allowance, medical, residence telephone,
guard etc.

1.3.16 "DEPENDENTS" include the employee's spouse, unmarried daughters and sons
up to the age of 21, who are wholly dependent on the employee and are not earning members
themselves. Dependents would also include non-earning parents wholly dependent on the
employee. The total dependents should not exceed six (6) in number.

1.3.17 "INITIAL PAY" means the salary fixed at the time of induction of the employee.

1.4 Regulations to form part of Employment Contract

Unless expressly inconsistent with the terms and conditions of appointment these regulations
shall be deemed to be an integral part of the contract of any employee for the time being
employed by the Company.

1.5 Right to Amend/Alter/Cancel/Waive or Modify Regulations

The Competent Authority has the right to amend, modify and interpret/waive any of the
regulations herein laid down or add other regulations as may be found necessary from time to
time. However the Board of Directors would endorse the key changes.

1.6 Masculine Gender to include Feminine Gender

The masculine gender will also include feminine gender unless specified otherwise.

2.

WORKING DAYS & HOURS

Monday through Thursday: 9:00 a.m. to 5:15 p.m. Lunch Break: 1.30 pm to 2.30 p.m.
Friday 9:00 a.m. to 5:15 p.m. Lunch Break: 1.00 p.m. to 3.00p.m.

Saturday: 9 a.m. to 1.30 p.m.

Saturdays have short working hours and have been earmarked as non-public dealing days.

One Saturday of each month shall be given off at the discretion of the Competent Authority.
Normally it will be the last Saturday of the month.

The intent is to utilize working Saturdays for special activities that are crucial and important but
not often urgent, hence, do not receive due attention.

A timetable designating Saturday activities will be prepared every year and updated as and when
required.

These will include, but will not be limited to, the following:

1. Internal management meetings.

2. Board meetings.
3. Brain storming session.
4. Employee's performance appraisal.
5. Review of performance and budgets.
6. Training session.
7. Clearing up of desk and office, filing and storing away of old papers.

3.

GRADES, APPOINTMENT, PROMOTION & RESIGNATION

3.1 Tiers:

The Company will strive to be lean and de-layered. The employees will be hired under one of the
following tiers:

o Chief Executive
o Tier -1
o Tier -2
o Tier -3
o Tier -4
o Tier -5
o Support Staff

3.2 Appointments

Only such positions can be filled up as have been approved by the Board or a subcommittee of
the Board designated to do so.

Appointments to all posts, other than those for Divisional Head & Tier -1, shall be made by the
Chief Executive and one Divisional Head or Tier-1 officer. Incase a Tier -1 officer is not available
or, in the opinion of the CEO, is inappropriate, then in lieu of the Tier -1 officer a designate Board
member will approve the appointment.

The Chief Executive and designate Board members will make appointments of Divisional Heads
and Tier -1 officer

3.3 Creation, Abolition and Re-Designation of Posts

The Competent Authority shall be empowered to create temporary or regular posts and to abolish
or re-designate any existing category or post as per need of the Company. The board would
approve the creation of posts beyond the sanctioned budget.

3.4 Probation

Except the employees appointed on contract or on deputation or on special terms, all employees
appointed to a post in each Tier, shall on appointment be placed on probation for one month.

The Competent Authority may at its discretion, increase/waive the whole or part of the probation
period.

Employees transferred from Askari Bank may not be placed on probation, at the discretion of the
Competent Authority, and may be allowed to carry forward leave and some other privileges.

3.5 Confirmation

An employee will be confirmed on satisfactory completion of the probationary period. However,

before confirmation is due, where necessary, the employee should get medically examined, the
cost of which would be borne by the Company, and provide two references of reputable persons.

3.6 Resignation

An employee of the Company may resign from the service of the Company after providing one
month's prior notice in writing or in lieu of notice, pay to the Company an amount equal to his one
months salary for the notice period.

3.7 Termination
In the event of a confirmed employee's service being dispensed with, one month's notice period
will be served by the Company otherwise the payment equal to one month's salary shall be made
in lieu thereof.

3.8 Dismissal

The Company has a right to dismiss, terminate, discharge or otherwise punish an employee
found guilty of misconduct.

3.9 Performance Review Report

A performance review report on the work and conduct of each employee shall be initiated every
quarter at the end of March, June, September and December, by the supervising officer on the
prescribed form to the Competent Authority.

The report to the extent considered fit by the Competent Authority will be discussed with the
officer to enable him to improve his performance. The decision of the Competent Authority in this
regard will be final and binding.

4.

SALARY ALLOWANCES & PERQUISITES

4.1 Introduction

The emoluments to an employee will have two components: Fixed and Variable. This portion
pertains to the fixed emoluments. This is composed of salary, allowances and perquisites as
listed in the table below:

SALARY ALLOWANCES & PERQUISITES TABLE

Tier-1 Tier-2 Tier-3 Tier-4 Tier-5

Salary
LFA ONE SALARY PER ANNUM

Allowances Rs. 21,500 18,000 14,700 4,750 2,000

Petrol Liters 350 300 250 200 *100

Motor Vehicle 1600cc 1500cc 1300cc 1000cc

Price Cap Rs. 1,300,0001,050,000 850,000 610,000

Amortise 4
Furniture 400,000 250,000
years
Joining Bonus- Amortise 4
300,000 200,000 150,000 100,000
discretionary years
* Discretionary

4.2 Salary

The Competent Authority will fix the salary of all officers and subordinate staff. Gross salary will
be composed of basic, house rent and utilities. Its composition will be worked out on the advice of
the CFO and can be changed from time to time at the discretion of the Competent Authority.

4.3 Leave Fare Assistance

All permanent employees, after completion of one-year service shall be entitled to LFA.

One gross salary provided an employee must have availed a minimum of 15 days annual holiday.

4.4 Allowances

Allowance to officers will be provided as per the "Salary, allowance and perquisite table" which
will be reviewed periodically and approved by the Board or its subcommittee as decided by the
Board.

The employee will be given a basket of allowances to choose from. They can "cafeteria shop"
and decide on the allowances they require under the guidance of the CFO. The allowances they
choose will, however, not exceed the pecuniary sum laid out in the table.

4.4.1 Basket of Allowances

o Driver and/or Guard

o Residence Telephone and/or a mobile
o Club subscription/entertainment

4.5 Petrol

Petrol quota will be provided to entitled officers. The fuel provided is for official and personal use.

Fuel allowance for Tier-5 is a maximum of 100 liters and the full amount or part there off may be
provided to selected officers at the discretion of the Competent Authority.

The officer will undertake to maintain the fuel bills and be paid against the claim.

The fuel claimed will be reimbursed at the prevailing market price as announced by the Company
from time to time.

4.6 Motor Vehicle

The Company will lease the motor vehicle for the officers. The details are covered under Policy #
8.1. In the event of a delay on the part of the Company beyond two weeks from the date of
entitlement, and unless the Company has booked a vehicle for which it is incurring a leased cost,
the Company will pay an amount equal to the lease installment pro rated for the period from the
date of entitlement to the date the car is delivered, less two weeks.

4.7 Furnishing Entitlement

The facility is available every 4 years.

The officer must submit bills of furniture and equipment acquired. Furniture so acquired will be
depreciated over 4 years on a straight-line basis.

If the officer leaves the services of employment prior to the expiry of the four years from the date
of availing this entitlement, he will be bound to return to the Company the amount equal to the un-
amortized balance.

4.8 Joining Bonus

To attract talent or to expedite joining of an employee, the Competent Authority (CEO and one
Director) can offer a joining bonus upto a maximum of the amount stipulated. This sum will be
amortized over a minimum period of 3 years or longer at the discretion of the Competent
Authority. Where the officer leaves prior to expiry of three years, he will have to refund the
unamortized amount.

5.

INCENTIVES AND AWARDS

5.1 Variable Compensation Plan

A comprehensive Variable Compensation Plan is to be sketched out and all permanent

employees in the organization are eligible for that. This will be based on the performance of the
Company and individual officer.

5.2 Performance Awards (non-monetary)

Askari Investment Management Limited Employee Recognition Program acknowledges

exceptional performance, focusing on achievement, performance and milestones.

6.

PAID LEAVE ENTITLEMENT

6.1 Annual/Sick Leave

Entitlement

Sick Leave Annual Leave

1st year of employment: 10 3 weeks
Subsequent years of employment: 10 4 weeks

6.2 Conditions
.

a) Leave can be taken after the completion of the probationary period.

b) The Department Head must approve the Leave Application Form, prior to the intended leave.

c) In case of more than three (3) days sick leave at one given time, the Leave Application Form
must be supported by a doctor's certificate.

d) If the sick leave entitlement is exceeded, then the excess sick leaves will be adjusted from
Annual Leave balance, if any.

e) In case a Annual Leave balance is exhausted, the excess Sick Leave will be deducted from the
salary.

f) Employee earns his Annual Leave on completion of one year's service in the company

g) The leave may be accumulated upto 8 weeks.

h) Advance Annual Leave may be allowed at the discretion of the Competent Authority

i) Application for Annual Leave must be made at least one month in advance to enable the
administration to work necessary arrangements; otherwise the application may be declined
without allowing the benefit of accumulation.

j) If Annual Leave is not availed, the employee may on application, get paid in lieu thereof at the
rate of 100% of the salary drawn by him.

k) Encashment shall not be admissible for leave period of more than 2 weeks per annum.

6.3 Maternity Leave

Entitlement A total of eight (8) weeks before and after the delivery.

6.4 Paternity Leave

Entitlement A maximum of three (3) days leave can be taken from the date of delivery.

6.5 Bereavement Leave

Entitlement A maximum of three (3) days can be availed

Condition Applies to only immediate family members (parents, parents in law, spouse, siblings &
children)

7.
BENEFITS

All Benefits apply only after the employee has successfully completed his / her probation period
and is a permanent employee. (Details to be worked out).

7.1 Hospitalization

Entitlement All employees of the Company and their dependents are covered under
hospitalization insurance.

Also available for contract employees.

To be arranged through an insurance company.

7.2 Gratuity

Entitlement On leaving the service of the Company/death, employees or their survivors, shall
receive gratuity.

At least three years of continuous service with the Company.

Not to be paid to employees who are dismissed from the Company's service on account of
misconduct.

One month's last drawn percentage of (to be determined) salary for each completed year of
service.

7.3 Provident Fund

Membership All those employees who have completed one months' service with the Company

The membership of the Fund is compulsory.

Contribution Equal contribution is made by the employees and the Company at __ % of Salary
per month.

Encashment On leaving the Company's service/death, both the member's own contribution and
the Company's contribution along with the profits thereon are paid to the employee or his
nominees.

7.4 Life Insurance

In the event of an employees' death the beneficiaries of the employee shall also receive the
insurance benefits as per insurance coverage with the Insurance Company:

Life insurance facility is also available to contract employees.

All outstanding Advances & Loans to the employee shall be referred to the Board of Directors in
case of the death of an employee.

8.

TRANSPORTATION FACILITY

8.1 Car

1. The company would provide cars to designated officers for official and private use as per
policy.

2. The vehicles to be provided to the officers are defined in the policy. These are defined by the
vehicle engine horse power (CC) and a price upper limit. An officer may choose a different
vehicle, with the permission of the CEO, provided the governing principle; that cost or risk to the
company does not increase. Any cost excess will be recovered from the employee out right or by
way of adjustment to his allowance.

3. Cars will normally be leased for five years. An employee may opt for an old vehicle as long as
he obtains prior permission from the Competent Authority. For such cars the lease period can be
reduced to four years by the Competent Authority.

4. On completion of the lease period, the employee can acquire the vehicle at 15% of its
purchase price.

5. Vehicle maintenance expenses will be borne by the Company. The cumulative expenses
during five years may not exceed 20% of the purchase price of the vehicle.

6. The company will encourage all vehicles to be environment friendly and will pay for the
conversion of the vehicle to CNG.

7. Second hand vehicles from the company pool may also be assigned to an employee.
Employees can buy back such cars after expiry of the lease provided that he has been in service
for at least five years and that the car has been in his use for at least three years.

8. In the event of a delay on the part of the Company beyond two weeks from the date of
entitlement, and unless the Company has booked a vehicle for which it is incurring lease
expense, the Company will pay an amount equal to the lease installment pro rated for the period
from the date of entitlement to the date the car is delivered, less two weeks.

8.2 Fuel Reimbursement based on actual

Entitled Fuel reimbursement for official work, where applicable, will be at the following rates:

- Car up to 1600 cc Rs. 6.00 per km

- Car up to 1300 cc Rs. 5.00 per km
- Car up to 1000 cc Rs. 4.00 per km

Review The Management Committee will review the above limits after every six (6) months
 9.

LATE SITTING COMPENSATION

Entitled Where officers works after 8:30 p.m., or during holidays, they will be entitled to dinner
subject to their Divisional Head approval.

Where drivers, peons and support staff work on holidays or after more than 2 ½ hours after close
of office time then they will be eligible for overtime for hours worked in excess of 2 ½ hours.

Calculation Over time will be paid at the rate of Rs. 50 per hour worked or part thus off rounded
up to nearest ½ hour.

Conditions:

a) Overtime will be paid on a monthly basis, along with the salary

b) Overtime compensation is inclusive of food and conveyance charges

c) The Department Head must approve all Overtime Application Forms

d) The Overtime Application Form must clearly state the reason for carrying out the overtime

e) All Overtime Application Forms must be submitted by the following day at the latest

10.

TRAVEL

10.1 Domestic Travel

While traveling on official duty the officers will be entitled to:

" Accommodation in a normal room of a hotel as specified in the table.

" Reimbursement of all expenses wholly and exclusively incurred for business purposes.
" A daily allowance as specified in the table.

If the officer does not avail hotel accommodation he will be entitled to an additional
allowance in lieu of accommodation.

Support
Cader: Tier-1 Tier-2 Tier-3 Tier-4 Tier-5
Staff
Business Business Economy Economy Economy
Mode of Air Travel Nil
Class Class Plus Plus Plus
Air Air Air Air Air
Mode of Rail Travel Conditioned Conditioned Conditioned Conditioned Conditioned Second Class
Class Class Class Class Class
Hotel
5 Star 5 Star 5 Star 4 Star 4 Star Nil
Accommodation
Daily Allowance
1,000 1,000 700 700 700 Nil
(Rs.)
Allowance in lieu of
Company
3,000 3,000 2,500 2,000 2,000 1,000
Accommodation
(Rs.)

Where travel's primary purpose is of training, the expenses incurred for accommodation and
travel will be stepped down for each Tier.

Where a team is undertaking travel, it is to the discretion of the CEO to take a step up or down in
cadre in terms of the hotel accommodation.

11.

ENTERTAINMENT

If you are required to entertain business associates as a part of your

Conditions: duties, you are eligible to claim reimbursement on entertainment
expenses
Prior permission for entertainment must be obtained from the CEO

a) The Entertainment Reimbursement Form (ERF) must be filled out and

Procedure:
the original invoice attached.

12.

MOBILE PHONES

Those staff whose job descriptions require easy and constant

Conditions: accessibility will be provided a mobile phone at the discretion of the
Competent Authority

a) A cell phone connection and/or a cell phone instrument may be

provided
Entitled:
b) A fixed limit per month, as recommended by the head of the
Division / Department and approved by the CEO will be given

Procedures: a) Any excess over the fixed amount will have to be borne by the
officer

b) Only in exceptional circumstances where official work

necessitated heavy phone calls, will the company bear such excess
 over the fixed limit. Excess will have to be approved by the
Competent Authority

13.

ADVANCE

Details of the policy to be worked out.

14.

TRAINING & DEVELOPMENT

The Company aims to provide outstanding opportunities from time to time, through the
year, for your professional and personal development.

Entitled: All Tiers

Training will be through short rotation such as 2/3 days to 4 weeks,

brain storming sessions, class room training, e-learning and
extensive reading.
Offer:
The company will build a book bank, subscribe to magazines and
books and obtain library memberships.

Effort will be made to utilize Saturdays for training sessions.

To stretch the training budget, cost effective solutions will be

encouraged.
Condition:
This will include step down on travel and hotel class.

Your ability to pursue development in a topic or subject matter that

Objectives: relates to your job responsibilities or helps prepare you for your
future career path is boundless and encouraged

15.

SPECIAL POSITIONS

We are considering reserving one (1) position out of every 33 in the workforce for people who
have the qualifications but are challenged (physically or mentally).

The recruitment will be on merit. Special equipment may have to be provided to such candidates
at the work place.
Such appointments will take place on the recommendation of the CEO and approval by the Board
and Executive Committee.