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04.04 Foreign Assignment PDF
04.04 Foreign Assignment PDF
04.04 Foreign Assignment PDF
03
HUMAN RESOURCES MANAGEMENT
PROCEDURES MANUAL 01-Jan-2019
1. Purpose
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.
1.4. Being in line with and further implement Ethiopian’s value statement as equal
opportunity employer committed to diversity and fairness.
2. Revision History
3. Persons Affected
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.
4.4. 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.
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.
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.
5.3. 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.
5.5. 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.
5.8. 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.
5.10. 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.
6.3 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
Managerial/leadership Skill 5 4 3 2
Communication 5 4 3 2
Teamwork 5 4 3 2
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.
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.
7.3. 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.
7.3.7.3. 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.
7.4.1. 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.
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.
7.4.11. 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.
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.
7.5.9. 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.
7.6.1. 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.
7.7.1. Similar selection criteria should be followed for ADD Sales OJT assignment
who will be candidates for foreign assignments.
7.8.1. For Ethiopian MRO field office positions, refer to Technical Procedure
Manual (TPM) Section 1.1, 1.6 and 1.44.
7.8.3. For Commercial and Cargo field office positions refer SOP
NO.COMM/749/01.
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.
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
tasks or any other reason deemed to be justifiable per the reasonable and
unilateral judgment of Ethiopian.
7.11.5. Re-Assignment
7.11.6. Promotion
7.11.6.1. Up on his return, the applicable period for his promotion in the
progression scheme is due,
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