PROCESS NOTE

FOR MOVEMENT i.e. Thermax Limited to Thermax

International Tanzania Limited

Date: 17th December 2021

PROCESS:

Step 1 : Employees having Indian ticket number will have to resign from the services of
Thermax Ltd. And will be given a new ticket number in Thermax International Tanzania
limited.

Step 2: Employees will be paid in local Tanzania currency.

Step 3: F&F will be done for each employee LTA & Medical balance and Leave balance
would be settled for the employee against the Loans, advances or any other outstanding
dues.

Step 4: On boarding by Ihr team in Tanzania, with new ticket number. Employee
contracts to be issued with new compensation in local currency and Thermax
International Tanzania Limited Entity.

TREATMENT OF RETIRALS:

PF:

 The contribution to PF ceases and employees can withdraw the accumulated PF

after the final settlement of dues with the help of the PF department.
 From the date of separation to the last date of employment in Tanzania,
contribution towards social security (equivalent to PF) is being paid in Tanzania
also.
 Suggestion is not to withdraw the PF.
 In the event of employee leaving and the amount received from the Government
authorities towards PF equivalent contribution in Social Security will be set off
against the interest loss on accumulated PF in India. The interest on the
accumulated balance in India will be calculated on the yearly interest rate declare
by the Government of India.
 Example:
a) PF accumulated in India=Rs.5,00,000
b) Interest on PF declared by Govt. eg: 5% = Rs. 25000
c) PF Equivalent BPJS withdrawal Amount = Rs. 20,000
d) PF Equivalent BPJS withdrawal Amount = Rs. 30,000
e) In scenario bullet # ( c) Thermax will pay Rs. 5000 to the Expat Employee
f) In scenario bullet # ( d) Thermax will make no payment w.r.t. interest loss
on PF

SUPERANNUATION: (as applicable)

 The superannuation balance will be maintained and interest would be accrued to

the employees.
 When the employee leaves the company, he / she should indicate the choice for
superannuation withdrawal.
  The current rule for superannuation withdrawal is enclosed. However the law
applicable at the time of withdrawal will prevail and the enclosed document about
current rules of superannuation withdrawal is just to provide clarity on current
rules regarding withdrawal.

GRATUITY: (as applicable)

 Gratuity will be paid when an employee leaves / retires from the group company
only if the minimum criteria for gratuity to be applicable are met.
 For the purpose of calculations of number of years period served in Tanzania and
period served in India
 The gratuity would be calculated on the notional basic which will be arrived at by
increasing the India basic by 2% per year.
 The India basic of employees as on 1st November’21 or from the date of
deputation will be maintained by the Divisional HR department for future
reference and calculations

MEDICLAIM IN INDIA:

 Will continue for employee’s family in India

 Employees will be covered in local Tanzania insurance policy.