04.04 Foreign Assignment PDF

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ETHIOPIAN AIRLINES GROUP Rev.

03
HUMAN RESOURCES MANAGEMENT
PROCEDURES MANUAL 01-Jan-2019

HUMAN RESOURCES ADMINISTRATION AND CORPORATE


GOVERNANCE

SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

1. Purpose

The purpose of this Foreign Assignment Administration Procedure is to establish


guidelines for selection, development, and administration of foreign assignment in line
with Ethiopian’s HCM Strategy, such as but not limited to;

1.1. Meeting the fast growth strategy of Ethiopian by training and developing adequate
number of qualified employees for Foreign Assignment at any time.

1.2. Developing employees to have well versed and all rounded airline experience to
assume top management positions in the future.

1.3. Retaining talented and high caliber employees of Ethiopian.

1.4. Being in line with and further implement Ethiopian’s value statement as equal
opportunity employer committed to diversity and fairness.

2. Revision History

Date Rev No. Change Reference Section


01 Apr 2014 00 Complete Whole Section
01 Sep 2017 01 Major Whole Section
01 Sep 2018 02 Partial 4.5, 4.6, 4.10, 4.11, 4.13, 4.14, 5.7, 5.8 & 5.10,
7.1.1.2, 7.1.2.2, 7.1.2.2, 7.1.3, 7.3.1 & 7.2,
7.3.4, 7.3.6., 7.3.7 7.4.1, 7.4.6, 7.4.9, 7.4.11,
7.4.12–7.4.14 7.4.15, 7.5.4, 7.5.5, 7.5.7, 7.11
01-Jan-2019 03 Minor 3.2 (gender statement) and minor numberings

3. Persons Affected

3.1. All employees

3.2. All words denoting any gender include all genders.

4. Policy: Refer Section 03 of the MPM.

The Policy of this Foreign Assignment Administration Procedure is to ensure that;

4.1. Foreign Assignment process is transparent, and is based on objectively determined


criteria.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

4.2. Foreign Assignment is primarily in the interest of Ethiopian while it shall give
incentive to high performers and enhance motivation of competent employees.

4.3. Foreign Assignment is based on achievement rather than entitlement.

4.4. Before the Assignee is made to start the Foreign Assignment, he shall sign a
Service Commitment Contract with Ethiopian wherein the Assignee commits to
serve Ethiopian back at home base upon return, for as long as the foreign
assignment period.

4.5. The Service Commitment Contract to be signed by and between a foreign assignee
and Ethiopian shall clearly indicate the equivalent amount of fee/cost that Ethiopian
will claim in the event of default in addition to all other related damages resulting
from pecuniary and non-pecuniary damage against Ethiopian. To this effect,
Ethiopian may from time to time revise the amount of cost/fee attached to each
period of foreign assignment and the same shall be mentioned in the Service
Commitment Contract (SCC).

4.6. Under normal circumstances, Ethiopian foreign assignment terms are; three (3)
years for MRO Technical Managers and Finance, one (1) year for A/C Technicians
deployed to other Organizations and three (3) to five (5) years for Commercial and
Cargo Positions. However, this period may be extended or shortened at the full and
sole discretion of Ethiopian. Notwithstanding to the aforementioned terms of
foreign assignment, Ethiopian may at any time terminate any foreign assignment
or recall or reassign the employee as it deems necessary.

4.7. Without prejudice to the application of Ethiopia's Pension Laws, an employee who,
after completion of the Foreign Assignment and/or during foreign assignment,
resigns, fails or is unwilling to serve Ethiopian for the service commitment terms
provided in the Service Commitment Contract (SCC) and/or this Procedure shall
not be entitled to any service related rights and privileges, including but not limited
to, company clearance (certificate of service), ticket benefits, and other benefits
and payments provided for under the policies of Ethiopian.

4.8. In addition to Paragraph 4.7 above, such employee shall further refund Ethiopian
the cost incurred by Ethiopian as per the terms and conditions of the Service
Commitment Contract (SCC) and other related damages as may be advised by
Ethiopian.

4.9. The Assignee shall exhaustively clear accrued annual leave before taking over the
foreign assignment position.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

4.10. The Assignee shall clear all vacations accrued during the foreign assignment prior
to expiration of his assignment. Notwithstanding to the preceding statement, the
last year’s vacation may be postponed due to unforeseen and exceptional
circumstances. Salary for the last year’s accrued vacation and prorated accrued
vacation of current year shall be paid per the foreign assignment position’s salary
scale provided that the currency of payment shall be Ethiopian Birr (ETB) and
appropriate tax shall be paid to the foreign country. However, if payment of tax in
the foreign country is not possible, then the tax payment shall be effected in
Ethiopia in accordance with the relevant and applicable laws of Ethiopia.

4.11. An employee on foreign assignment shall always comply with the laws of the host
country in which he is assigned, which are required to be observed by residents
including personal income tax matters. Any personal income derived from the
foreign assignment shall be declared to pertinent local tax authorities, as required
under the law, and tax shall be paid unless there is tax exemption under the
relevant law of the concerned state. To this effect, for Ethiopian personnel
deployed to a customer airline and where there is tax exemption, the customer
airline shall be required to secure the tax exemptions accordingly. Non-compliance
to personal income tax issues shall attract the most serious administrative
measure(s) by Ethiopian including retroactive payment.

4.12. Where there are instances where tax may not accrue while salary is due, an
amount estimated on the basis of prevailing tax provisions shall be deducted and
held by Corporate Finance Division until such time the tax payment becomes due.
Any amount held in excess shall be refunded to the Assignee while any required
additional amount shall become claimed from and payable by the Assignee.

4.13. Notwithstanding to the provisions herein, Ethiopian may choose to engage local
personnel to fill in the positions of foreign assignment if such engagement is found
to be in the best interest of Ethiopian.

4.14. The concerned Respective HR Offices and Mgr. HRM Office (for corporate divisions)
and Manager Outstation Maintenance Administration in case of MRO shall keep
accurate and up-to-date records of all foreign assigned employees to the positions
under their supervision including but not limited to the beginning and end of their
assignment dates, their annual leave accrual and allotment and other
administrative matters in accordance with this and other applicable Company
Procedures. Manager HRD and PMS shall also maintain a copy of foreign
assignment service commitment contract.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

5. Definition

For the purpose of this procedure, unless the context requires otherwise;

5.1. Assignee: shall mean a candidate selected to assume a Foreign Assignment (Field
Office) Position.

5.2 Candidate/s: shall mean an employee of Ethiopian short listed as a potential


Assignee for foreign assignment.

5.3. Foreign Assignment: shall mean assignment for more than ninety (90) days to a
location outside of Ethiopia for the performance of Ethiopian foreign assigned
activities and includes assignment to the service of third parties.

5.4. Foreign Assignment Selection Panel or “Panel”: shall mean a management


group set-up to evaluate and propose Candidates for Foreign Assignment for CEO’s
approval. The composition of such Panel shall be as indicated under paragraph 7.2
below.

5.5. Field Office Position: shall mean the position dedicated for foreign assignment,
Regional Director, Area Manager, Finance Manager, Technical Manager/Technician
(Director, Manager, Team Leader and other non-managerial position), Traffic and
Sales Manager or Manager Airport Services or Manager Cargo Services or any other
position which is determined by Ethiopian in the future.

5.6. Head Office: shall mean the principal place of business of Ethiopian located in
Ethiopia.

5.7. Secondment: shall mean a foreign assignment of qualified Ethiopian employee(s)


to the service of another organization for a limited period of time based on
Secondment Agreement signed between Ethiopian and the concerned Organization.

5.8. Service Commitment Contract (SCC): shall mean a contractual agreement that
clearly specifies the rights and obligations of foreign assigned employee on one
hand and Ethiopian on the other hand in which the employees clearly commit
himself to serve the Airline in return for the benefit from the ongoing acquisition or
refinement of skills and knowledge, including job mastery and professional
development through foreign assignment coupled with short and long term career
development trainings.

5.9. Returning Employee/Returnee: shall mean an employee returning to Home


Base from Foreign Assignment.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

5.10. Personal Development Course: shall mean theoretical and practical modularized
trainings to be given for foreign assigned candidates.

6. Responsibility

6.1 CCO, COO, CFO and VP Corporate HRM shall be jointly responsible for the proper
and smooth implementation of this procedure.

6.2 MD ET International Services, MD ET Cargo & Logistics Services and MD ET MRO


Services are also responsible for the procedures in this Section.

6.3 Respective HR Offices, Mgr. HRM Office for corporate divisions and Manager
Outstation Maintenance Administration for technical foreign assignments shall also
be responsible for the proper implementation of this Procedure.

7. Procedures

7.1. Eligibility and Selection Criteria

7.1.1. Eligibility Criteria

7.1.1.1. A candidate for foreign assignment could be from any division


of Ethiopian who satisfies the following requirements.

7.1.1.2. A Candidate for foreign assignment shall be:

a. An active, full-time employee of Ethiopian who has served


Ethiopian for a minimum period of (5) five years unless
there is an exception. When there are candidates with
equal merit, the senior has a priority.

b. Identified and developed to fill key or senior or middle


management or foreign assignment positions per the
Succession Plan Program of Ethiopian.

c. Willing to sign a Service Commitment Contract (SCC) to


serve Ethiopian for a period of one year at home base for
each year worked in Foreign Assignment.

d. Take Ethiopian management development courses


(TLDC/MDC/BCM/EDC) and completed successfully if the
Assignee is expected to have a supervisory role during the
foreign assignment.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

e. A candidate who exhibits an outgoing personality,


helpfulness, positive attitude, communication skill and
language proficiency in English, (spoken and written) with
proficiency of Level III. Speaking additional languages like
French, Arabic, German, Italian and so on should be
advantageous.

7.1.1.3. A Candidate for foreign assignment shall have an average


performance of at least 3.0 BSC/ISC rating for the last two
consecutive performance evaluation periods.

7.1.1.4. A Candidate for foreign assignment shall have proven record of


demonstrating Ethiopian corporate value, safety, customer focus,
integrity, ethics, respect and candor.

7.1.2. Selection Criteria

7.1.2.1. The Panel shall conduct evaluation of Candidate's values based


on the following parameters:

ET’s Corporate Consistently Frequently Typically Sometimes


Values and Demonstrate Demonstrate Demonstrate Demonstrate
Behavioral
Competencies

Managerial/leadership Skill 5 4 3 2

Communication 5 4 3 2

Teamwork 5 4 3 2

Integrity, Intelligence and 5 4 3 2


Energy

Safety and Security 5 4 3 2


Ability to get things done
now by any means 5 4 3 2

7.1.2.2. Selection panel (section 7.2.1.1.) should include all concerned


MDs/VPs/CXOs.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

7.1.2.3. As a part of value competence evaluation, candidates’ personal


file and audit records shall be thoroughly reviewed in order to
understand and value the candidates’ background track records.

7.1.2.4. In addition to the above, the selection technical criteria


specified under the Standard Operating Procedure of concerned
division shall be applicable to the extent of its consistency with
this Corporate Procedure.

7.1.2.5. Service year in managerial positions shall be computed by


assigning different weights to different positions and the field of
assignment. This requirement applies for Commercial, Cargo and
Finance divisions and the applicable weights shall be specified in
the respective manuals mentioned under paragraph 7.7 below.

7.1.2.6. If two or more Candidates scored same grade, the Candidate with
knowledge of the local language of the place of assignment shall
be given priority.

7.1.2.7. If Candidates score same grade and both of them are well
conversant of the local language of the place of assignment, the
Candidate with higher company seniority date shall be selected.

7.1.3. Selection Areas

7.1.3.1. MASs should be selected from areas of Express/Cargo/ADD


Hub/IOCC

7.1.3.2. AMs/TSMs should be selected from Express/Marketing/


Ethiopian Cargo/GCC/Sales/ADD Ticket Offices/ Region offices/
Customer Services. In addition, candidates in other Divisions
with outstanding performance can be candidates for AM/TSM
assignments with ADD Sales OJT experience.

7.1.3.3. Those who are selected for AMs/MASs/TSMs should pass


through ADD sales office for OJT, for a minimum of three
months.

7.1.3.4. AMs, MASs, TSMs for Europe/Americas/Asia should be selected


from those in Africa unless there is an exception.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

7.2. The Panel

7.2.1. Panel Members

7.2.1.1. For Commercial and Cargo Foreign Assignment

a. VP Marketing,
b. MD ET Cargo & Logistics Services,
c. MD ET Ground Services,
d. VP Customer Services, and
e. Mgr. HR & Finance –Commercial, Mgr. HR & Finance Cargo,
as the case may be and
f. Mgr. HRD and PMS from corporate HRM for final review.

7.2.1.2. The Candidates selected by the Panel for Commercial and Cargo
foreign assignments will be sent for the approval of MD ET
International Services and Chief Commercial Officer and MD ET
Cargo & Logistics Services respectively and then VP Corporate
HRM and the Group CEO’s final approval.

7.2.1.3. For MRO Foreign Assignments

a. Concerned MRO Directors


b. Mgr. MRO HR and Finance Office
c. Mgr. Admin & Outstation Maintenance
d. Mgr. HRD & PMS for final review

7.2.1.4. The Candidates selected by the Panel for MRO foreign


assignments will be sent for the approval of MD ET MRO
Services and Chief Operation Officer and then VP Corporate
HRM and the Group CEO’s final approval.

7.2.1.5. For Finance Foreign Assignments

a. Concerned Finance Managers


b. Mgr. HRM Office
c. Mgr. HRD and PMS

7.2.1.6. The Candidates selected by the Panel for Finance foreign


assignments will be sent for the approval of the Chief Finance
Officer and then VP Corporate HRM and the Group CEO’s final
approval.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

7.2.2. Responsibilities of the Panel

7.2.2.1. To select the best candidate for foreign assignment based on


competence and performance.

7.2.2.2. To implement this procedure and Standard Operating Procedure


of the concerned divisions.

7.2.2.3. To establish objective criteria for the selection process.

7.2.2.4. To show high transparency and fairness on the selection


process.

7.3. Pre-Assignment

7.3.1. Respective divisions’ HR Offices shall collect list of Candidates from all
divisions of Ethiopian, as applicable, based on the parameters set under
Clause 7.1 above and the selection criteria specific to each division as set
out per 7.7 below. The respective HR Office shall advise selected
potential Candidates to the respective VP/MD to which the selected
Candidates belong to.

7.3.2. The respective HR Office shall then submit the list of potential Candidates
for evaluation and selection by the Panel.

7.3.3. The Panel shall conduct Behavioral competence and ET corporate value
evaluation of the Candidates and shall release the results of such
evaluation as per 7.2.1 of this Procedure.

7.3.4. The Panel shall average out the rating and incorporate it in ranking Table
applicable for each division. The Candidate with the top ranking shall be
selected for Foreign Assignment as an Assignee.

7.3.5. Ethiopian shall endeavor to advise the assignee of the Foreign


Assignment three (3) months prior to the commencement date of the
Foreign Assignment. The Assignee shall, within this period, prepare
himself for such Foreign Assignment. If Ethiopian is not in a position to
meet the three (3) months prior notice, under exceptional circumstances,
a shorter notice period as may be met by Ethiopian shall be given to the
Assignee.

7.3.6. Foreign assignment, reassignment or recall letter shall be signed by the


respective Vice President/Managing Director and approved by the Chief

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

Commercial Officer/Chief Operating Officer/Chief Finance Officer, as the


case may be and as applicable and finally by VP Corporate HRM and the
Group CEO.

7.3.7. Training and OJT:

7.3.7.1. Before taking on the Foreign Assignment, the Assignee shall


undergo the Modularized Personnel Development Course Training
of theoretical and practical nature for foreign assigned
employees. The training shall include the activities of different
business units such as airport activities, sales offices and all other
back office activities to enable foreign assignees ready for foreign
duties and responsibilities.

7.3.7.2. VP Corporate HRM, MD Ethiopian Aviation Academy and the


responsible Division of the foreign assignment position shall
jointly be responsible for the preparation of the appropriate
training curriculum and delivery of the required training modules
for foreign assigned employees.

7.3.7.3. The duration and other details of the training shall be determined
in accordance with the relevant Training Curriculum of EAA
prepared per paragraph 7.3.7.2 above.

7.4. During Foreign Assignment

7.4.1. The period of assignment to a foreign location shall begin on the first
date of the month the employee reports for duty at the foreign location
and shall end on the date the employee leaves the foreign location where
he was assigned. In exceptional circumstances, the beginning of the
foreign assignment may be the first day the employee reports for duty at
the foreign location.

7.4.2. The foreign assigned employee shall always comply with the laws of the
host country to which he is assigned, which are required to be observed
by residents.
7.4.3. The foreign assigned employee shall always declare all personal income
pay tax as per the tax law of the country he is assigned. Regional
Directors and/or Area Managers are also required to assure both
employees and corporate tax obligations are properly discharged.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

7.4.4. The foreign assigned employee needs to conduct himself according to the
acceptable business etiquettes and codes of conduct to preserve
Ethiopian’s name, reputation and image.
7.4.5. The foreign assigned employee shall maintain good relationships and
rapport with local authorities, business partners and the local
communities at large to the best interest of Ethiopian.

7.4.6. The foreign assigned employee shall communicate his respective Regional
Director or Director or Manager as the case may be in case he wants to
travel out of the city even during his weekend. He shall be reachable in
any available means of communication and shall travel within the
reasonable distance radius.

7.4.7. The foreign assigned employee shall carry out the work and discharge
responsibilities as per the duties/responsibilities listed in his Job
discerption, BSC targets and initiatives stipulated for that particular field
office position.

7.4.8. Failure to meet targets and deviation from the duties/responsibilities shall
entail serious single or multiple, as the case may be, administrative
measures.

7.4.9. The foreign assigned employee shall exercise his duties and
responsibilities within the permits of the power of attorney conferred
upon him.

7.4.10. In the case of poor performance, the employee on Foreign Assignment


shall be recalled to Head Office at any time for discussion with his
immediate supervisor and the pertinent VP/MD, and shall be given the
chance to improve his performance within the shortest time possible. The
employee shall be given all the required support and assistance from the
Head Office and will be required to submit revamping action and business
plan to improve the performance of the area to which he is assigned.
However, if his performance does not improve for the consecutive three
evaluations, the employee may be permanently called off from the
Foreign Assignment with immediate notice.

7.4.11. All foreign assignees on the position of Technical Manager and Finance
Manager shall administratively report to respective Area
Managers/Regional Directors in outstation and functionally to their
respective Managers i.e., Mgr. MCC, Mgr Admin and Outstation
Maintenance and Manager Payables Control & Disbursement ,
respectively.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

7.4.12. All personal travel requests of foreign assigned employees shall be


approved by their respective Vice Presidents/Managing Directors and
their ticket requests shall be authorized on the Ethiopian Employees E-
Ticket System. Such travels shall be made in their vacation days which
shall not be authorized while they have less than five working days’
vacation.

7.4.13. All ticket requests for family members of foreign assigned employees
shall be conducted through Ethiopian Employees E-Ticket System for
ticket authorization and benefit management purpose.

7.4.14. All Company business travel requests of all foreign assigned employees
shall be approved by respective Vice Presidents/Managing Directors and
tickets shall be issued by Area Offices upon approval.

7.4.15. All foreign assigned employees shall use Company properties, especially
Company cars, for Company businesses only. It is the responsibility of
the assignees entrusted with Company cars to properly safeguard and
use same as paterfamilias (diligent and caring owner).

7.5. Post-Assignment

7.5.1. The Assignee has to return back to his/her Home Base upon the expiry of
his assignment unless advised otherwise by his respective division, three
months prior to the expiry date.

7.5.2. An employee on Foreign Assignment can be called back to Head Office upon
completion of the Foreign Assignment or, at any time, upon Ethiopian's
decision.

7.5.3. An employee who has completed the time set for his Foreign Assignment
per his respective division shall return to Head Office on the date advised
for his return by Ethiopian and shall serve Ethiopian at home base on the
position he is assigned by Ethiopian.
7.5.4. An employee who has completed the time set for his Foreign Assignment
shall serve Ethiopian for as long as the foreign assignment period
irrespective of whether he signed a Service Commitment Contract or not.

7.5.5. Without prejudice to the application of Ethiopia's Pension Laws, an


employee who, after completion of the Foreign Assignment, resigns, fails or
is unwilling to serve Ethiopian for the service commitment period provided

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

in the Foreign Assignment Agreement and/or under this Procedure, shall


not be entitled to any service related rights and privileges, including but not
limited to, company clearance (certificate of service), ticket benefits, and
other benefits and payments provided for under the policies of Ethiopian. In
addition, such employee shall further repay to Ethiopian the amount of cost
stated under the Service Commitment Contract and other related damages
as may be advised by Ethiopian.

7.5.6. Performance is to be measured through achievements as per performance


indicators which are indicated in the BSC target for each Field Office
Position.

7.5.7. Each concerned Business Unit/Division in coordination with their respective


HR Office or Mgr. HRM Office (for corporate Divisions) in coordination with
Mgr. HRD and PMS shall arrange appropriate placement to a Returning
Employee prior to the latter's return to Home Base.

7.5.8. A returning employee shall serve Ethiopian in the position assigned by


Ethiopian at head office. Ethiopian shall try, to its utmost ability, to assign
returning employees to a management position as they are equipped with
international experience. Ethiopian may decide, at its own discretion, to re-
assign a returning employee to another foreign assignment after the
returning employee has served Ethiopian for a number of years decided by
Ethiopian.

7.5.9. There shall be a handover and take over period between the outgoing and
incoming foreign assigned employee as per the position requirement of the
assignment after the end of the foreign assignment of the returning
employee.

7.5.10. A Returning Employee shall exhaustively clear foreign accrued vacation


before placement to the newly assigned position.

7.5.11. Save exceptional and unforeseen circumstances, no vacation postponement


shall be made in any year while on foreign assignment.

7.5.12. Save exceptional and unforeseen circumstances, in the case where an


employee directly transferred from one foreign assignment to another, he
shall exhaustively clear his foreign accrued vacation before the transfer.

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

7.6. Relief Assignment

7.6.1. The eligibility and selection criteria for relief assignment shall be the
same as the eligibility and selection criteria of foreign assignment.

7.6.2. Respective HR Offices and Mgr. HRM Office (for corporate divisions) shall
have pool of candidates ready for a relief assignment.

7.7. ADD Sales Assignment

7.7.1. Similar selection criteria should be followed for ADD Sales OJT assignment
who will be candidates for foreign assignments.

7.7.2. Candidates selected for foreign assignments from different Divisions


companywide shall be trained to acquire the necessary skill and experience
at ADD Sales office.

7.8. Other Procedures

Field offices assignment, selection, development and performance procedure


specific to each division as the nature of the job requires, due to different
specialties, shall be dealt with in the following:

7.8.1. For Ethiopian MRO field office positions, refer to Technical Procedure
Manual (TPM) Section 1.1, 1.6 and 1.44.

7.8.2. For Finance field office positions refer FIN/SOP/01.

7.8.3. For Commercial and Cargo field office positions refer SOP
NO.COMM/749/01.

7.9. Relocation Allowance

(Refer Section 04.02.04 of this Chapter)

7.10. Foreign Assigned Personnel Salary

(Refer to Section 04.02.01 of this Manual)

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SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

7.11. Special Provisions Applicable To Foreign Assignment of Ethiopian


Personnel To Other Organizations

Without affecting the applicability of the preceding provisions on foreign assignment,


the following special provision shall apply on foreign assignment of Ethiopian
personnel to other organizations and they shall prevail on similar matters.

7.11.1. Expenses

7.11.1.1. All formalities for the necessary travel (if any) of assigned
employees or employees engaged in preliminary surveys,
studies etc., shall be handled by Ethiopian in accordance with
existing policies and all expenses shall be chargeable to the
third party organization.

7.11.1.2. Ethiopian shall charge the organization to which the employee


has been assigned, all expenses involving salaries including
pension, fringe benefits and any other costs in connection with
maintaining the employee on Ethiopian payroll.

7.11.2. Performance Evaluation

Ethiopian may evaluate and rate the performance of foreign assigned


employees on technical areas during their assignment period.

7.11.3. Salary Increase

The assigned employee will be carried on Ethiopian payroll for the duration
of assignment and the home base ETB salary figure will be updated by
Manager Employees Rewards and Time Management whenever there is
salary increase at home base. The applicable pension and tax deductions
are made from the updated salary effective the revision date.

7.11.4. Recall

Notwithstanding to the duration of the foreign assignment indicated in the


assignment letter and/or service commitment contract, Ethiopian rely at
any time terminate the foreign assignment of any employee or recall or
reassign the employee due to poor performance, misconduct, reduction of

SECTION 04.04 Page 15 of 16


ETHIOPIAN AIRLINES GROUP Rev. 03
HUMAN RESOURCES MANAGEMENT
PROCEDURES MANUAL 01-Jan-2019

HUMAN RESOURCES ADMINISTRATION AND CORPORATE


GOVERNANCE

SECTION 04.04 FOREIGN ASSIGNMENT ADMINISTRATION PROCEDURE

tasks or any other reason deemed to be justifiable per the reasonable and
unilateral judgment of Ethiopian.

7.11.5. Re-Assignment

7.11.5.1. An employee returning from assignment will be placed at host


division by maintaining his previous position at home base by
taking “Transition” phrase as prefix and keep his updated Job
Grade, Salary and Allowances.

7.11.5.2. The employee is guaranteed re-assignment with due


consideration for the qualification and experience acquired
during his assignment.

7.11.5.3. Unless there is objective ground justifying placement to a lower


grade position, the employee will not be placed on lower grade
position than the position held prior to the date of assignment.

7.11.6. Promotion

An non-management employee assigned to the service of another


organization shall be promoted to the next progression ladder up on his
return at end of the assignment period when;

7.11.6.1. Up on his return, the applicable period for his promotion in the
progression scheme is due,

7.11.6.2. Demonstrated the required commendable performance during


his foreign assignment;

7.11.6.3. Completed the mandatory trainings for his promotion;

7.11.6.4. Passed the applicable promotional examination; and

7.11.6.5. Fulfilled other requirements of the Progression Scheme


Procedure.

***.***

SECTION 04.04 Page 16 of 16

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