HR Manual at 01-06-2011

Human Resources Policy
Manual
For
Saudi Electricity Company
To All Visitors:
We would like to welcome you and draw your kind attention to the following:
This is a literal translation of SEC Human Resources Policy Manual which was
originally formulated in Arabic. As per the rules and laws prevailing in the
Kingdom of Saudi Arabia, Arabic is the ruling language. (*See Article number
(9) of the Saudi Labor Law below). Therefore, in case of any difference or
contradiction between the English text and the Arabic text, whether in drafting
or content or interpretation, such departures shall neither deprive nor originate
or grant any right or privilege to any person or party, unless it is clearly
stipulated in the Arabic text.
Thank you.
Human Resources Policy Department
* Article number: (9) of the Saudi Labor Law reads as follows:

(Use of Arabic language is mandatory in keeping data, records, files, employment agreements and any other
documents stated in these regulations or any executive decisions and directives issued by the employer to his
employees. If the employer chooses to use a foreign language along with Arabic for any of the said purposes,
Arabic only shall be the ruling language).
Human Resources Policy Manual
Latest Updates
Page 1 of 1
Date of
Issue/Update Chapter Item No Subject Addition/ Change
Condition no. (4) is modified to

indicate the performance
01/06/2011 Two 2-9 Reinstatement
appraisal level required from the
applicant for reinstatement.
Eligibility of Annual
A clarification is added to the
Increment During
01/06/2011 Four 4-6-2 eligibility of Annual Increment
Unpaid Leave/
during the unpaid absence.
Absence.
Paragraphs no. (4-6-9-1) & (4-
6-9-2) are modified by deleting
Controls for Saudi
the previous condition stating
Employees to pursue
that concerned employee should
01/06/2011 Four 4-6-9 University studies
have an average not less than "
while in Company
Good" so that the new
service.
academic qualification can be
added to Company records.
Eligibility & amount
of allowance for
Power Plant no. (10) is added to
workers at
list of Generation, Transmission
01/06/2011 Four 4-8-5-1 Generation,
& Transformer stations eligible
Transmission &
for work allowance.
Transformer
stations.
Payment of Work
Allowance to
A new paragraph is added on
workers at
the methodology of paying the
Generation,
work allowance to workers at
01/06/2011 Four 4-8-5-4 Transmission and
Generation, Transmission and
Transformer
Transformer Stations during
Stations during
Work & Training assignments.
Work & Training
assignments.
Compensating
A new paragraph is added
Company engineers (
showing the amount to be borne
Saudis & non-
by the Company out of the
01/06/2011 Nine 9-13 Saudis) for their
membership fees payable by its
membership to the
engineers to the Saudi
Saudi Association of
Association of Engineers.
Engineers.
Condition no. (4) is modified to
Conditions of indicate the performance
01/06/2011 Eleven 11-11-1
Reinstatement appraisal level required from the
applicant for reinstatement.
Red line below text indicates addition or change Date of addition or change: 01/06/2011 Date of Issue: 01/04/2005
Table of Contents
Page 1 of 1
Table of Contents
Section Subject
Introduction Introduction to Manual
Definitions Definitions of Manual's Terms
Chapter 1 Manpower Planning
Chapter 2 Employment & Placement
Chapter 3 Work Schedules, Time Off and Over time
Chapter 4 Salary, Increments and Allowances
Chapter 5 Benefits
Chapter 6 Vacations
Chapter 7 Performance Management
Chapter 8 Employee Development
Chapter 9 Reimbursement of Expenses
Chapter 10 Work Relations
Chapter 11 Termination of Service
Dates of
Dates of Policies Implementation
Implementation
Previous Issued
Previous Issued Updates
Updates
Red line below text indicates addition or change Date of addition or change: Date of Issue: 01/04/2005
Introduction
Page 1 of 1
The Company aims at establishing HR policies characterized by reliability,

equity and competition that can attract, motivate and keep personnel in its
service, and eventually enable them to perform its functions efficiently. The
Company's HR Policy is designed to realize these basic objectives in
accordance with the legal requirements, the Company's Organizational Chart
and List of Rewards and Penalties.
This HR Policy Manual explains the rules, which organize and control the
relationships between the Company and its employees. They are applicable to
all employees, but exclude non- employee trainees (trainee contracts), daily
hires, summer students, cooperative programs students, contractors' staff,
consultants of independent contracts and loaned employees.
The Manual covers the information and methodology necessary for occupants
of all levels of supervisory positions to manage their personnel. It also shows
the scope of responsibilities for implementing those policies properly.
Occupants of supervisory positions at all levels in the Company are responsible

for discharging the approved HR regulations, each in his respective area. On the
other hand, Human Resources Policy Department shall be responsible for
interpreting the intentions and application of such policies.
Policies of this approved manual supersede all HR regulations issued before,

and each of the regional HR Services Departments will be responsible for the
control and implementation of the Company's HR policies and procedures stated
in this manual.
Saud AbdulAziz Al-Shammari

Senior VP, Human Resources
Definition of Terms
Page 1 of 6
For consistency of interpretation, the following terms and expressions are

defined as follows in this Manual, unless otherwise specified:
Government
Means the Government of the Kingdom of Saudi Arabia.
Company
Means the Saudi Electricity Company (SEC) as established by Ministerial
Resolution no.(153) dated 5/9/1420H, and endorsed by the Royal Decree
no.M/16 dated 6/9/1420H, and announced by the decision of Minister of
Commerce no. 2047 dated 30/12/1420H.
Board
Refers to the Board of Directors of Saudi Electricity Company, which is its
highest authority.
President & CEO

The highest executive authority in the Company, who reports to Board of
Directors.
Executive Management
Means the President & CEO and Executive and Senior Vice Presidents.
Executive Vice President / Senior Vice President

Heads an organizational unit known in the (Company's Organizational Chart) as
Business Unit and reports directly to President &CEO.
Sector Executive Director, Operating Area

Heads an organizational unit within the Distribution &Customer Services
Business Unit at a specific operating area, and usually he reports directly to
EVP, Distribution & Customer Services.
Sector Executive Director (SED)

Heads an organizational unit known in the (Company's Organizational Chart) as
Sector, and reports usually to EVP/SVP.
Definition of Terms
Page 2 of 6
Department Manager
Heads an organizational structure known in (the Company's Organizational
Chart) as department, and normally reports directly to a Sector Executive
Director.
Division Manager
Chart) as division, and normally reports directly to a Department Manger.
Section Head
Chart) as section, and normally reports directly to a Division or Department
Manager.
Unit Supervisor
Chart) as unit, and normally reports directly to a section or Division Head.
Employee
Means a person regularly employed by the Company under an employment
agreement to perform work for the Company under its direct supervision and
control. It excludes non-employee trainees, daily rate hires, summer and co-op
students, contractor employees, independent consultants of special contracts and
employees seconded from other parties.
Employment Agreement
Means a written agreement concluded between the Company and the employee
whereby the employee agrees to work, for a specified or unspecified period, in
return for an agreed salary, under the direction and control of the Company.
Independent Consultant
Means a technical or administrative expert engaged by the Company on a
specified term agreement to provide specialist consultancy services. He neither
has the Company's regular employee status, nor the Company's approved HR
Policies are applicable to him.
Definition of Terms
Page 3 of 6
Contractor Employee
Means a person employed by a contractor who performs work for the Company.
He does not have Company employee status, nor governed by the provisions of
these HR policies.
Single Status of Saudi Employee

Refers to an unmarried Saudi employee.
Single Status of Expatriate Employee

Means the expatriate employee who is not married or married but resides
without his family in the Kingdom.
Eligible Saudi Employee Dependents

Means the eligible wife/wives and children of the Saudi employee who under
the provisions of the Company's approved HR Polices are entitled to receive
Company benefits.
Eligible Expatriate Employee Dependents

Means the eligible wife/wives and children of the expatriate employee, residing
with him in Saudi Arabia on a Company sponsored valid residence visa, and
who under the provisions of the Company's approved HR Policies are entitled to
receive Company benefits.
Non-Employee Trainee
Means a person engaged by the Company under a training program at one of the
Company's training centers in order to learn technical or administrative skills
within a specified period in accordance with the provisions of a training
agreement. Non-Employee Trainees are not considered Company employees
and are consequently not governed by these approved HR Policies.
Basic Salary
Means the regular monthly basic salary of the employee. It does not include
overtime pay, allowances or any other form of compensation or benefits.
Definition of Terms
Page 4 of 6
Business Assignment
Means temporary assignment for Company work entrusted to the employee to
discharge at a location other than his normal work place, within or outside its
area of concession, such as attending meetings and visiting sites etc.
Training Assignment
Means any temporary training assignment decided by the Company, whose
primary objective is to improve an employee's skills, and to develop his
technical, professional and/or managerial abilities. It includes attending
seminars, lectures, courses, workshops, and professional conferences, or
participating in any classroom activity.
Calendar
Means the Gregorian calendar, unless otherwise specified, by which all periods
and limits provided for in this Manual shall be computed.
Year
Means a period of twelve (12) Gregorian months or three hundred fifty six
(365) days, unless otherwise stated.
Calendar Day
Means a period of twenty - four (24) hours.
Working Day
Means the period covering the working hours according to the assigned work
schedule.
Continuous Service
Means the uninterrupted service of the employee with the Company from date
of employment. It shall include periods of working days, all Company
approved vacations and leaves, but excludes periods of absence for more than
(90) consecutive days.
Occupational Disability
Means an employee's disablement from work due to a work related injury or an
occupational disease in accordance with the provisions of the Occupational
Hazards Branch of Social Insurance Regulations in Saudi Arabia.
Definition of Terms
Page 5 of 6
Non-Occupational Disability
Means an employee's disablement from work due to an injury not related to
work or an occupational disease.
Work Organizational Chart

Means the Company’s Work Organizational Chart, sanctioned by the Ministry
of Labor in KSA, and as amended from time to time.
Penalties and Rewards Regulations

Means the Company's disciplinary provisions and rewards, sanctioned by the
Ministry of Labor in KSA, and as amended from time to time.
Labor Law
Means the Labor Regulations of the Kingdom of Saudi Arabia issued by Royal
Decree No. M/51 of 23/8/1426H (27/9/2005), as amended from time to time,
and any related decrees, rules or decisions which supplement or interpret the
Labor Regulations.
Manual
Means the Company’s Human Resources Policies Manual as set forth herein
and as amended from time to time.
Point of Origin
With respect to expatriate employees means the city or town in the country of
the expatriate employee's nationality, or the place of domicile where the
employee is entitled to reside and work permanently, as established by the
Company in his employment agreement.
Point of Recruitment
Means the location, as specified in the employment agreement, at which the
employee was hired for work in Saudi Arabia (via the Company's agents
abroad).
Definition of Terms
Page 6 of 6
Professional Development Program – PDP

Means a Saudi fresh graduate (university degree) assigned to a Company
development program for a period of (2) years to enable him occupy the target
job.
On Job Training Program

Means a training program assigned to (non- employee) trainees who have
graduated from the Company's Training Centers. It aims at teaching the trainee
how to perform duties on site, which is one of the basic responsibilities of
supervisors. Usually official programs for on job training to enhance
productivity and work skills are established.
Job Development Program (Route)

Means a development program which aims at preparing employees for
occupying the technical and professional jobs and posts of unit supervisors.
Administrative Development Program (Leadership)

Means a development program which aims at preparing employees for the
middle and higher administrative jobs (section head and higher).
Repatriation
Means the final trip from Saudi Arabia of an expatriate employee and his
eligible dependents to his country, following the end of his employment with
the Company. Repatriation of eligible dependents on an exit only visa may be
made before the end of the employee’s employment.
End of Service Award

Means the benefits payable to the employee by the Company on termination of
his service as stated in Chapter (11) of this Manual.
Social Insurance Regulations

Means the Social Insurance Regulations of the Kingdom of Saudi Arabia issued
by the Royal Decree No. M/33 of 3/9/1421H, and any related decrees, rules or
decisions, which supplement or interpret the Social Insurance provisions.
Chapter 1: Manpower Planning
Page 1 of 3 Back to Chapter's
Manual's Main Menu
Table of Contents
Paragraph Subject
1-1 Policy Statement
1-2 Manpower Planning Procedures
Page 2 of 3 Back to Chapter's Main Menu

It is the policy of the Company to plan its manpower as far ahead of
requirements as possible. Labor shall be maintained at a minimum level
consistent with the achievement of the Company’s operational objectives.
Labor should be a positive factor that contributes to the development
programs and plans of the epoch.
Manpower is a significant cost center of the Company’s operations and
as such, forms an integral part of the general operating process and plan.
Success of the plan mainly depends on the efficiency of this factor and its
interaction with other elements.
Setting the instructions and directions for the plan is entrusted to
Manpower Planning Dep. This task includes the procedures and
authorities of the various administrative and job levels and compliance
with the guidelines set by the higher authorities.
1-2 Manpower Planning Procedures

The Executive Management of the Company will establish the business
and growth objectives of the Company, rate of Saudization and
improvement of performance and establishing the digital and quantity
indicators to measure achievement in line with the following procedures:
A. Manpower Planning Dep. guided by the Company's general business

objectives set by the Executive Management shall establish the
directives and guidelines for the Manpower Plan, and shall arrange to
obtain the President &CEO approval to it. Proper arrangement shall
be made with the Operational Planning Department in order to have
the appropriate directives and guidelines included in the manual for
Operational Budget and Operational Plan. Then it shall be distributed
to all Business Units, Sectors and Departments in order to consult
when preparing their manpower plans for the ensuing periods, in line
with the Company objectives and its development plans.
B. Each Department Manager shall plan annually the manpower required
for the efficient operation of the department for the following period
as specified by the Executive Management, taking into account all the
present and new activities assigned to the competent department for
the purpose of fulfilling all strategies and targets of the plan, along
with realizing the Saudization rate within the manpower requirements.
The department's program for the number of the present and proposed
jobs, number of required employees and available vacancies as per

the approved organizational charts shall be indicated. Then the
departments' plans shall be gathered and sent to the Sectors and
Business Lines to formulate the comprehensive plan for the Business
Line, which shall be forwarded to Operational Planning Dep. at the
HR Planning Sector.
C. Operational Planning Dep. shall, in coordination with Manpower
Planning Dep., review the various manpower plans of the Business
Units and compare them with the instructions provided for the
preparation of Operational Budget and Operational Plan. Then
competent Business Unit VP will be advised of the notes and
differences from the original instructions. Finally, such plans will be
forwarded to President & CEO after being modified as appropriate in
order to be discussed with the concerned Business Unit VP.
Chapter 2: Employment & Placement
Page 1 of 8 Back to Chapter's
Manual's Main Menu
Table of Contents
Paragraph Subject
2-2 Responsibility
2-2-1 Employment& Placement Department
2-2-2 Department Managers
2-2-3 Approval of Employment
2-3 Priorities of Employment
2-3-1 From Within the Company
2-3-2 Employment of Saudis
2-3-3 Employment of non- Saudis
2-4 Standards of Employment
2-4-1 Saudis
2-4-2 Non- Saudis
2-5 Service Date
2-5-1 Saudis
2-5-2 Non- Saudis
2-6 Employment Mechanism
2-6-1 Employment Requisitions from Depts.
2-6-2 Announcement within the Company
2-6-3 Interview by Proponent Department
2-6-4 Employment Offer
2-6-5 Medical Examination
2-6-6 Employment Agreements
2-6-7 New Employee's Orientation to Company Structure
2-6-8 Probationary Period
Controls for Brining Expatriate Employee's
2-7
Family to Kingdom
2-8 Placement
2-9 Reinstatement

It is the Company’s policy to recruit employees in accordance with its
established manpower needs, by filling vacant positions with the most
suitable candidates. In the selection of such candidates, the Company
will be guided by the requirements of the job and the candidates'
qualifications, taking into account certain factors such as education,
training, experience, skills and other characteristics as determined by the
Company.
The Company gives priority in employment to Saudi nationals.
Recruitment of expatriate employees is determined by job requirements,
in case of non-availability of qualified Saudi candidates for filling the
vacancies.
All personnel employed by the Company, regardless of their country of
origin or citizenship, are governed by the applicable laws, regulations
and decrees of the Kingdom of Saudi Arabia, in addition to the
Company’s internal work rules and the provisions of their respective
individual employment agreements.
2-2 Responsibility
2-2-1 Employment & Placement Department
Employment & Placement Dep. is responsible for:
(A). Coordinating with Manpower Planning Dep. the preparation and
compilation of the Company’s annual manpower needs (numbers
and specialties) from all departments in the Company.
(B). Ensuring due priority is given to the employment of Saudi
nationals.
(C). Determining the best employment sources that satisfy the
Company's targets.
(D). Reviewing employment requisitions to ensure compliance with
the approved manpower budget.
(E). Determining the availability of suitable candidates within the
Company to fill approved personnel requisitions through
appropriate employee placement. If such candidates are not
available, then they will be sought from outside.
(F). Employing independent consultants (by virtue of separate
contracts) as per the approved budgets and regulations.
(G). Preparing the employment procedures for the successful

candidates, including the salary package and employment offer
according to approved controls.
(H). Employing graduates of the Company's training centers at the
various departments.
(I). Employing summer students and the cop programs trainees at the
Company's various departments.
2-2-2 Department Managers

Department Managers (in coordination with the Employment &
Placement Department and Manpower Planning Dep.) are
responsible for:
(A). Preparing the annual manpower plan for their respective
departments, according to their manpower needs, taking into
account the Company’s Saudization plan and other manning
objectives.
(B). Submitting personnel requisitions for approved departmental
vacancies.
(C). Final selection of the most suitable candidates for the vacant
positions.
2-2-3 Approval of Employment

Approval of personnel recruitment shall be made according to the
established table of authorities.
2-3 Priorities of Employment

2-3-1 From within the Company
Priority will be given to filling vacancies from inside the Company.
2-3-2 Saudis
The Company places a high priority to its Saudization plan.
Expatriate candidates, local hires and others, may be employed only
in those positions for which qualified Saudis are not available.
2-3-3 Non- Saudis

The Company shall consider filling vacant positions with qualified
non-Saudi nationals available locally in the employment market of
the Kingdom before initiating efforts of recruitment from out of

Kingdom.
2-4 Standards of Employment

2-4-1 Saudis
Saudi applicants for any post should meet the following
requirements:
A. The minimum hiring age shall be eighteen (18 H) Hijra years.
B. The candidate must possess the required academic qualifications
and experience to carry out the job.
C. Pass the interview / test process.
D. Meet the medical standards established by the Company for the
job by virtue of a medical report issued by the Company's
medical department or any medical party approved by the
Company.
E. He should be of good conduct and discipline. Candidates for
Industrial Security jobs should be provided with a clearance
letter from the competent authorities, along with written
agreement of the Industrial Security High Commission to such
employment.
2-4-2 Non-Saudis
Non -Saudi applicants for any post should meet the following
requirements:
A. The minimum hiring age shall be twenty one (21) Gregorian
years.
B. The candidate must possess the required academic qualifications
and experience to carry out the job.
C. Pass the interview/ test process.
D. Meet the medical standards established by the Company for the
job by virtue of a medical report issued by the Company's
medical department or any medical party approved by the
Company.
E. He should be of good conduct and discipline.
F. He should be allowed to work in the Kingdom.
G. If hired locally, the employee must have a written permission
from his previous employer, valid passport and valid resident
permit and work permit, and should obtain the government
approval to transfer sponsorship.
2-5 Service Date

2-5-1 Saudis
For Saudi employee the service date is the date he reports for duty.
2-5-2 Non- Saudis

For expatriate employees recruited from outside the Kingdom,
service date is the date of arrival into Saudi Arabia as arranged by
the Company. For expatriate employees who are hired locally in
Saudi Arabia, the service date is the date on which the employee
reports for duty.
2-6 Employment Mechanism

2-6-1 Employment Requisitions from Departments
When a need for employment exists, proponent department shall send
a Job Filling Form to the Employment & Placement Div. at the
respective Operating Area, making sure that the following
requirements are satisfied:
1. Vacancy is available.
2. Approved budget is available.
3. Form for filling the vacancy is completed.
4. Job description is available.
2-6-2 Announcement within Company

Vacant and newly created positions will be posted within the
Company, before seeking external candidates.
2-6-3 Interview by Proponent Department

Short listed candidates will be referred to the proponent department,
along with preliminary interview records and evaluation, for the
purpose of conducting thorough job interviews and tests, to
determine best fit and compatibility of candidate to the open position.
The regional E&P Divisions will provide assistance to the proponent
departments as needed or requested.
2-6-4 Employment Offer

All employment offers shall be in accordance with the Company's
approved Salary Scale. Also, all offers should be written in Arabic
for Arabic speakers or in both English and Arabic for non- Arabic
speakers.
2-6-5 Medical Examination

Candidates recruited in Saudi Arabia shall undergo pre-employment
medical examination at the Company’s designated medical facility.
Candidates recruited outside Saudi Arabia shall undergo the medical
examination at the medical facilities designated by the Company, the
appropriate Saudi Embassy or Consulate. The findings of the
designated medical facility shall be subject to review by the
Company’s medical services in-Kingdom, as per the Company's
approved Health Controls.
2-6-6 Employment Agreements

Employment agreements offered to new employees are generally two
types:
(A) Unspecified Term

Such contracts are used for Saudis and non- Saudis.
See Attachment No (1) of Employment Agreements of un-
specified term for Saudis and non- Saudis (at the end of this
chapter).
(B) Specified Term

Specified term employment agreements are used for non-
Saudis in special cases where employment is expected to be for
short durations.
See Attachment No (2) of Employment Agreements of
Specified Term for non- Saudis (at the end of this chapter).
2-6-7 Orientation
The regional E&P Divisions shall arrange to meet with every new
employee, explain the history, organization and activities of the
Company, the terms and conditions of his service, his rights,
obligations and accountabilities, and eventually introduce him to the
department where he will work.
2-6-8 Duration of Probationary Period

The probationary period for the new employee will be three
Gregorian months. The probationary period duration shall be clearly
stated in the employment agreement. An employee may be put on
probation only once during his regular employment with the
Company. The purpose of such probation period is the assessment of
employee's ability to perform the job functions. In order to terminate
the employee's services during the probationary period, neither notice
period nor end of service reward needs to be given to him.
2-7 Controls for Brining Expatriate Employee's Family to KSA

The Company (at its sole discretion) shall have the right to approve
request of the Expatriate Employee to bring his family to the Kingdom,
but this approval is not considered a right for the employee. In case
request is approved employee should satisfy all the following
requirements:
1. Meet the conditions set out by government of the KSA in this respect
(bringing families to the Kingdom).
2. Employee's grade shall not be less than (47) as per the New Salary
Scale.
3. Employee should have passed his probationary period (the first (90)
days of his service.)
4. Employee's family members should be (mentally and physically) fit.
2-8 Placement
Company Management shall consider filling vacancies by qualified
personnel form the Company itself, in order that maximum use is made
of its available human resources via permanent employment and transfer
as follows:
1. Searching for qualified personnel for vacancies from within the
Company.
2. Transfer of unplaced personnel to vacancies.
3. Transfer of personnel whose health conditions require change of job
nature or location.
2-9 Reinstatement
Employees whose services with the Company are ended may be rehired
subject to the following conditions:
1. Availability of a vacancy and the Company need for reemployment.
2. Settlement of all the severance benefits payments in respect of his
previous period of service with the Company.
3. More than one hundred eighty (180) days have lapsed since his
services with the Company ended.
4. Academic qualifications of the applicant for reinstatement should not
be less than Secondary School Certificate, and his performance
appraisal level during each of the last three years not less than
"Meets All Expectations".
5. If termination of his previous service was made by the Company,
then authority for such reemployment will be for the President
&CEO, but if his previous service was ended because of his
resignation, then authority for reemployment will be as per the
approval list for new employees.
Chapter 2
Attachment (1): Employment Contract of Unspecified Term
Page 1 of 9 Back to the attachment reference
Employment Contract
(Unspecified Term – For Saudis)
This Employment Contract is made this ______ day of ________________ (Gregorian

Year) ______ corresponding to the ______ day of _________________ (Hijra Year)
______ at (City) ______________________
Between The Saudi Electricity Company in the Kingdom of Saudi Arabia, hereinafter
called “THE FIRST PARTY”
And __________________________________ hereinafter called “THE SECOND

PARTY” with ID No______________________ issued at __________Date______.
THE SECOND PARTY accepts employment with THE FIRST PARTY subject to the
following:
1). Duration of Contract

The duration of this contract shall be for an unspecified period starting from
___________________________ (Gregorian Date) corresponding to
___________________________ (Hijra Date).
2). Classification
The FIRST PARTY appoints THE SECOND PARTY in the position of
_________________________________________ at grade ______. The FIRST
PARTY shall have the right to change the position of THE SECOND PARTY and
transfer him to any location within Saudi Arabia as per THE FIRST PARTY’s
requirement in accordance with article No.(15) of SEC Organizational Chart.
3). Probationary Period

THE SECOND PARTY shall be on probation for the first ninety (90) days of
employment. THE FIRST PARTY has the right during the probationary period to
terminate this contract at any time without advance notice.
4). Salary
THE FIRST PARTY shall pay THE SECOND PARTY a basic salary of SR
________ (Saudi Riyals ____________________________) per Gregorian
month. THE SECOND PARTY shall be entitled to begin earning his salary
starting from the date stated in Clause (1) of this contract.
5). Work Schedule and Working Hours

THE SECOND PARTY’s work schedule shall be eight (8) hours per day or forty
(40) hours per week excluding breaks and travel time. THE FIRST PARTY shall
have the right to amend this work schedule as per its requirement and THE
Chapter 2
SECOND PARTY shall abide by the said work schedule as designated by THE
FIRST PARTY.
6). Fees and Taxes

THE SECOND PARTY shall pay all applicable fees and taxes that may be
imposed in connection with his employment. THE FIRST PARTY shall pay all
fees and taxes imposed on THE SECOND PARTY in connection with THE
SECOND PARTY’s travel, if such travel is directed by THE FIRST PARTY.
7). Inventions and Right of Ownership

Any inventions by THE SECOND PARTY during employment under this
employment contract shall be the property and exclusive right of THE FIRST
PARTY, taking into account provisions of article no.(12) of Patents System at
Labor Regulations.
8). Training
" Second Party" who was trained in an "I.T.P Program" or sent for training or
study by "First Party" shall be obliged to work for the First Party for a period
equal to duration of such training or study. In case "Second Party" dose not
comply with this condition, he shall be obliged to compensate the "First Party" for
the costs of the said training or study.
9). General Provisions

THE SECOND PARTY’s employment shall be governed by THE FIRST
PARTY’s policies/ procedures/work rules/manuals and Saudi Arabian Labor Law.
Any amendments in THE FIRST PARTY’s policies/ procedures/ work
rules/manuals, the Saudi Arabian Labor Law, and any other Regulations of the
Government of Saudi Arabia related to this contract, shall be binding on THE
SECOND PARTY from their effective date, without any amendments to the terms
and conditions of this contract.
"Second Party" acknowledges that he has read the applicable executive charts of
the First party upon signing this contract.
EMPLOYEE ON BEHALF OF SAUDI ELECTRICITY COMPANY

(SECOND PARTY) (FIRST PARTY)
Name: Name:
Signature: Signature:
Date: Date:
Chapter 2
Employment Contract
(Unspecified Term – For Non-Saudis)
This Employment Contract is made this ______ day of ________________

(Gregorian Year) ______ corresponding to the ______ day of _________________
(Hijra Year) ______ at (City) ______________________ hereinafter referred to as
“Point of Recruitment”.
Between The Saudi Electricity Company in the Kingdom of Saudi Arabia,

hereinafter called “THE FIRST PARTY”
And __________________________________ hereinafter called “THE SECOND

PARTY” with ________________________ as Country of Citizenship.
THE SECOND PARTY accepts employment with THE FIRST PARTY subject to
the following:
1) Duration of Contract
The duration of this contract shall be for an unspecified period starting from
_________________________(Gregorian Date) corresponding to
_______________ (Hijra Date).
2) Classification
_________________________________________ at grade ______. The
FIRST PARTY shall have the right to change the position of THE SECOND
PARTY and transfer him to any location within Saudi Arabia as per THE
FIRST PARTY’s requirement.
THE SECOND PARTY fully understands and agrees that he is obligated to
develop Saudi Nationals as part of his assignment as directed by THE FIRST
PARTY.
3) Employee's Social Status upon Employment ( Bachelor Status):

THE SECOND PARTY agrees that his employment status upon
commencement of work in Kingdom of Saudi Arabia shall be bachelor
status. The status may be changed from bachelor to family upon the written
consent of THE FIRST PARTY after THE SECOND PARTY completes the
probationary period which is set out in Clause (5) of this contract.
Chapter 2
4) Family Status
THE SECOND PARTY shall be eligible for family status after completing
the requirement specified in the previous clause. Family members of THE
SECOND PARTY are:
a) The wife.
b) The dependent children below the age of nineteen (19) Gregorian years
who reside with him in Saudi Arabia on a residence visa.
5) Probationary Period
employment. THE FIRST PARTY has the right during the probationary
period to terminate this contract at any time without advance notice.
6) Salary
________ (Saudi Riyals ____________________________) per Gregorian
month. THE SECOND PARTY shall be entitled to begin earning his salary
starting from the date stated in Clause (1) of this contract.
7) Work Schedule and Working Hours

THE SECOND PARTY’s work schedule shall be eight (8) hours per day or
forty (40) hours per week excluding breaks and travel time. THE FIRST
PARTY shall have the right to amend this work schedule as per its
requirement and THE SECOND PARTY shall abide by the said work
schedule as designated by THE FIRST PARTY.
8) Fees and Taxes

imposed in connection with his employment, along with any fees related to
residence in Saudi Arabia and travel to and from SAUDI ARABIA for
himself and his eligible dependents. THE FIRST PARTY shall pay all fees
and taxes imposed on THE SECOND PARTY in connection with THE
SECOND PARTY’s travel, if such travel is directed by THE FIRST PARTY.
9) Transportation Upon Employment and End of Service

Upon employment and at end of service (except as provided for in a, b and c
below), THE FIRST PARTY shall provide THE SECOND PARTY with one-
way lowest cost economy class air transportation between the Country of
Citizenship and Saudi Arabia, as per THE FIRST PARTY’s policy.
If THE SECOND PARTY is granted family status, THE FIRST PARTY
shall provide similar air transportation in respect of THE SECOND
PARTY’s eligible dependents for their travel between the Country of
Citizenship and Saudi Arabia as per THE FIRST PARTY’s policy.
Chapter 2
THE FIRST PARTY shall not provide the abovementioned air

transportation in the following instances:
a) When transfer of sponsorship for joining work with the FIRST PARTY
has taken place in Saudi Arabia or if such transfer of sponsorship to
another employer has taken place in Saudi Arabia upon termination of
employment with the FIRST PARTY.
b) If THE FIRST PARTY rehires THE SECOND PARTY in Saudi Arabia
under a new employment contract and THE SECOND PARTY was
provided with round trip air transportation under the previous
employment contract in the same Gregorian year.
c) If THE SECOND PARTY stays in Saudi Arabia for any reason after
termination of service.
10) Housing Allowance

THE FIRST PARTY shall pay THE SECOND PARTY a housing allowance
as per THE FIRST PARTY’s policy.
11) Transportation Allowance

THE FIRST PARTY may provide THE SECOND PARTY with means of
transportation between THE SECOND PARTY’s work site and residence
location or pay him a transportation allowance as per THE FIRST PARTY’s
policy.
12) Vacation
THE SECOND PARTY shall be granted a paid annual vacation upon
completing twelve (12) Gregorian months of continuous service. The
duration of the vacation shall be as per THE FIRST PARTY’s policy.
THE FIRST PARTY shall provide THE SECOND PARTY with round trip
lowest cost economy class air travel tickets for himself and his eligible
dependents between Saudi Arabia and Country of Citizenship as per THE
FIRST PARTY’s policy.
13) Public Holidays

THE SECOND PARTY shall be entitled to paid public holidays as per THE
FIRST PARTY’s policy.
14) Overtime
THE FIRST PARTY may require THE SECOND PARTY to work
additional hours in excess of eight (8) hours per day or forty (40) hours per
week or to work on rest days or recognized public holidays. THE FIRST
PARTY shall compensate THE SECOND PARTY if he is in a job grade
eligible for overtime compensation as per THE FIRST PARTY’s policy.
Chapter 2
THE SECOND PARTY who is in a job grade not eligible for overtime
compensation and is requested by THE FIRST PARTY to work additional
hours to meet operational requirements shall do so without additional
compensation for the excess hours worked.
15) Medical Care

THE FIRST PARTY shall provide THE SECOND PARTY and his eligible
dependents staying with him in the Kingdom with appropriate medical care
in Saudi Arabia as per THE FIRST PARTY’s policy.
16) Sick Leave

THE FIRST PARTY’s policy will be applicable in this respect.
17) Occupational Disability Compensation

THE FIRST PARTY’s policy, Rules of General Organization for Social
Insurance (GOSI) and Saudi Arabian Labor Law will be applicable in this
respect.
18) Termination of Contract

This Employment Contract may be terminated in the following
circumstances:
a. If either party intends to terminate this contract, that party shall give the
other party a thirty (30) days written notice or pay him in lieu of such
notice or the remainder thereof.
b. By THE FIRST PARTY without prior notice or reward if THE
SECOND PARTY breaches the terms and conditions of this contract or
for any other reason as stipulated in Article(83) of Saudi Arabian Labor
Law.
c. Due to ‘Force Majeure’ beyond the control of THE FIRST PARTY.
19) Obligations of SECOND PARTY

During the term of this contract THE SECOND PARTY shall:
a. Devote time to carry out the duties of his job and observe at all times the
instructions of THE FIRST PARTY.
b. Conduct himself in such a manner so as not to bring any discredit upon
himself or THE FIRST PARTY.
c. Along with family members staying with him in the Kingdom, respect
religious directions, observe the customs, social and moral traditions of
Saudi Arabia.
d. Not, directly or indirectly, seek or engage in employment, service, or
business for himself or with others in Saudi Arabia without written
consent of THE FIRST PARTY.
e. Not practice, directly or indirectly, any kind of political activity.
Chapter 2
f. Not divulge or impart any proprietary information relating to the

business of THE FIRST PARTY to outside parties.
20) Inventions and Right of Ownership

PARTY.
21) End of Service Reward

THE FIRST PARTY’s policy and the applicable Saudi Arabian Labor Law
shall be applied in this respect.
22) General Provisions

PARTY’s policies/ procedures/work rules/manuals and Saudi Arabian Labor
Law. Any amendments in THE FIRST PARTY’s policies/ procedures/ work
rules/manuals, the Saudi Arabian Labor Law, and any other Regulations of
the Government of Saudi Arabia related to this contract, shall be binding on
THE SECOND PARTY from their effective date, without any amendments to
the terms and conditions of this contract.
(The Arabic version of this contract is the official document according to
provisions of Saudi Arabian Labor Law).

Name: Name:
Chapter 2
ATTACHMENT TO
EMPLOYMENT CONTRACT – MEDICAL STAFF
This attachment shall constitute an integral part of the Unspecified Term

Employment Contract concluded between The Saudi Electricity Company, “THE
FIRST PARTY” and ______________________________________________ “THE
SECOND PARTY” on / / .
Part One: Amendment of Clauses (6) and (7) of the Employment Contract to read
as follows:
6. Salary
THE FIRST PARTY shall pay THE SECOND PARTY a basic salary of
(_____________) Saudi Riyals per Gregorian Month as detailed below:
• Amount of SR against five (5) days, forty (40) hours work
per week, eight (8) hours per day, including the wages for the weekends
(Thursdays and Fridays).
• Amount of SR against eight (8) hours work on Thursdays
or any day-off as may be decided by THE FIRST PARTY.
THE SECOND PARTY shall be entitled to begin earning his salary starting
from the date stated in Clause (1) of this Contract.
7. Work Schedule and Working Hours

A) THE SECOND PARTY’s work schedule shall be eight (8) hours per day or
forty (40) hours per week excluding breaks and travel time.
THE SECOND PARTY agrees to work in two (2) shifts daily, the first shift
from(08:00 AM) to (12:00 Noon) and the second shift from (04:00 PM) to
(08:00 PM), in addition to eight (8) hours work on Thursdays which is paid
for to THE SECOND PARTY as mentioned in clause (6) above.
Both parties agree that THE SECOND PARTY shall in all cases work as
per any work schedule assigned from time to time by THE FIRST PARTY
not exceeding the daily work hours specified in this Contract.
B) THE FIRST PARTY has the right to put THE SECOND PARTY On-
CALL as per THE FIRST PARTY’S policy.
Chapter 2
Part Two: Following are additional clauses to the Employment Contract

mentioned above:
1) Legal Guardian (Mahram):

Female employee shall be fully responsible for her legal guardian (Mahram)
including any consequences or liabilities arising out of his actions, and shall
also bear all his expenses. FIRST PARTY shall provide out patient medical
care to THE SECOND PARTY'S Guardian (Mahram) at FIRST PARTY'S
clinics.
2) Employment of Both Spouses

If THE SECOND PARTY (both husband and wife) are working for THE
FIRST PARTY, dependent children's benefits shall be given only to the
husband. Duplication of benefits shall not be given to the employed wife.
3) Penalty and Compensation Claims:

THE SECOND PARTY shall be responsible for all penalties and
compensation claims arising out of negligence while performing his duties
and as may be decided by the relevant authorities in Saudi Arabia.
(The Arabic version of this attachment is the official document according to
provisions of Saudi Arabian Labor Law).

Name: Name:
Chapter 2
Attachment (2): Employment Contract of Specified Term
Employment Contract
Specified Term – For Non-Saudis
This Employment Contract is made this __________ day of _______________

(Gregorian Year) ____________ corresponding to the _____________ day of
_____________ (Hijra Year) ______ at (City) _________________ hereinafter
referred to as “Point of Recruitment”.
Between The Saudi Electricity Company in the Kingdom of Saudi Arabia, hereinafter
called “THE FIRST PARTY”
And _____________________________________________ hereinafter called “THE
SECOND PARTY” with as "Country of Citizenship."
THE SECOND PARTY accepts employment with THE FIRST PARTY subject to the
following:
1. Duration of Contract
The duration of this employment contract is (12) Gregorian months starting from:
_______________ (Gregorian), to ____________________( Gregorian). This
contract shall be renewed for an identical period unless either party advises the
other of its wish not to renew it before the original contract period expires or the
renewed contract period (30) days in advance.
2. Classification
_________________________________________ at grade ______. The FIRST
PARTY shall have the right to change the position of THE SECOND PARTY and
transfer him to any location within Saudi Arabia as per THE FIRST PARTY’s
requirement.
THE SECOND PARTY fully understands and agrees that he is obligated to
develop Saudi Nationals as part of his assignment as directed by THE FIRST
PARTY.
3. Employee's Social Status upon Employment (Bachelor Status) :

THE SECOND PARTY agrees that his employment status upon commencement
of work in Kingdom of Saudi Arabia shall be bachelor status. The status may be
changed from bachelor to family upon the written consent of THE FIRST PARTY
after THE SECOND PARTY completes the probationary period which is set out
in Clause (5) of this contract.
Chapter 2
4. Family Status
THE SECOND PARTY shall be eligible for family status after completing the
requirements specified in the previous clause. Family members of THE SECOND
PARTY are:
A. The wife.
B. The dependent children below the age of nineteen (19) Gregorian years who
reside with him in SAUDI ARABIA on a residence visa.
5. Probationary Period
employment. THE FIRST PARTY has the right during the probationary period to
terminate this contract at any time without advance notice.
6. Salary
(________) Saudi Riyals per Gregorian month. THE SECOND PARTY shall be
entitled to begin earning his salary starting from the date stated in Clause (1) of
this contract.
7. Work Schedule and Working Hours

THE SECOND PARTY’s work schedule shall be eight (8) hours per day or forty
(40) hours per week excluding breaks and travel time. THE FIRST PARTY shall
have the right to amend this work schedule as per its requirement and THE
SECOND PARTY shall abide by the said work schedule as designated by THE
FIRST PARTY.
8. Fees and Taxes

imposed in connection with his employment, along with any fees related to
residence in Saudi Arabia and travel to and from SAUDI ARABIA for himself and
his eligible dependents. THE FIRST PARTY shall pay all fees and taxes imposed
on THE SECOND PARTY in connection with THE SECOND PARTY’s travel, if
such travel is directed by THE FIRST PARTY.
9. Transportation Upon Employment and End of Service

Upon employment and at end of service (except as provided for in a, b and c
below),THE FIRST PARTY shall provide THE SECOND PARTY with one-way
lowest cost economy class air transportation between the Country of Citizenship
and Saudi Arabia, as per THE FIRST PARTY’s policy.
If THE SECOND PARTY is granted family status, THE FIRST PARTY shall
provide similar air transportation in respect of THE SECOND PARTY’s eligible
dependents for their travel between the Country of Citizenship and Saudi Arabia
THE FIRST PARTY shall not provide the abovementioned air transportation in
the following instances:
Chapter 2
A. When transfer of sponsorship for joining work with the FIRST PARTY has
taken place in Saudi Arabia or if such transfer of sponsorship to another
employer has taken place in SAUDI ARABIA upon termination of
employment with the FIRST PARTY.
B. If THE FIRST PARTY rehires THE SECOND PARTY in Saudi Arabia

under a new employment contract and THE SECOND PARTY was provided
with round trip air transportation under the previous employment contract in
the same Gregorian year.
C. If THE SECOND PARTY stays in Saudi Arabia for any reason after
termination of service.
10. Housing Allowance

THE FIRST PARTY shall pay THE SECOND PARTY a housing allowance as
per THE FIRST PARTY’s policy.
11. Transportation Allowance

THE FIRST PARTY may provide THE SECOND PARTY with means of
transportation between THE SECOND PARTY’s work site and residence location
or pay him a transportation allowance as per THE FIRST PARTY’s policy.
12. Vacation
THE SECOND PARTY shall be eligible to a paid annual vacation upon
completing twelve (12) Gregorian months of continuous service, the duration of
which shall be determined as per THE FIRST PARTY'S POLICY. Also, THE
FIRST PARTY shall provide THE SECOND PARTY, and his eligible dependents
with round trip lowest cost economy class air travel tickets between Saudi Arabia
and the Country of Citizenship as per THE FIRST PARTY’s policy.
13. Public Holidays

THE SECOND PARTY will be entitled to paid public holidays as per THE FIRST
PARTY’s policy.
14. Overtime
THE FIRST PARTY may require THE SECOND PARTY to work additional
hours in excess of eight (8) hours per day or forty (40) hours per week or to work
on rest days or recognized public holidays. THE FIRST PARTY will compensate
THE SECOND PARTY if he is in a job grade eligible for overtime compensation
THE SECOND PARTY who is in a job grade not eligible for overtime
compensation and is requested by THE FIRST PARTY to work additional hours
to meet operational requirements shall do so without additional compensation for
the excess hours worked.
Chapter 2
15. Medical Care

THE FIRST PARTY shall provide THE SECOND PARTY and his eligible
dependents staying with him in the Kingdom with appropriate medical care in
Saudi Arabia as per THE FIRST PARTY’s policy.
16. Sick Leave

THE FIRST PARTY’s policy will be applicable in this respect.
17. Occupational Disability Compensation

THE FIRST PARTY’s policy, Rules of General Organization for Social Insurance
(GOSI) and Saudi Arabian Labor Law will be applicable in this respect.
18. Termination of Contract

This Employment Contract may be terminated in the following circumstances:
A. By THE FIRST PARTY without prior notice or end of service reward for
any reason stated in Article (80) of Saudi Arabian Labor Law.
B. By THE FIRST PARTY if THE SECOND PARTY breaches the terms of
this contract.
C. Due to ‘Force Majeure' beyond the control of THE FIRST PARTY.
19. Obligations of SECOND PARTY

During the term of this contract THE SECOND PARTY shall:
A. Devote time to carry out duties of his job and observe at all times the
instructions of THE FIRST PARTY.
B. Conduct himself in such a manner so as not to bring any discredit upon
himself or THE FIRST PARTY.
C. Along with his family members staying with him in the KINGDOM,
respect religious directions, observe the customs, social and moral
traditions of Saudi Arabia.
D. Not, directly or indirectly, seek or engage in employment, service, or
business for himself or with others in Saudi Arabia without written consent
of THE FIRST PARTY.
E. Not practice, directly or indirectly, any kind of political activity.
F. Not divulge or impart any proprietary information relating to the business
of THE FIRST PARTY to outside parties.
20. Inventions and Right of Ownership

PARTY.
21. End of Service Reward
THE FIRST PARTY’s policy and the applicable Saudi Arabian Labor Law shall
be applied in this respect.
Chapter 2
22. General Provisions

PARTY’s policies/ procedures/work rules/manuals and Saudi Arabian Labor Law.
Any amendments in THE FIRST PARTY’s policies/ procedures/ work
rules/manuals, the Saudi Arabian Labor Law, and any other Regulations of the
Government of Saudi Arabia related to this contract, shall be binding on THE
SECOND PARTY from their effective date, without any amendments in relation
to the terms and conditions of this contract.
(The Arabic version of this contract is the official document according to
provisions of Saudi Arabian Labor and Workmen Law).
ON BEHALF OF SAUDI ELECTRICITY

(EMPLOYEE)"SECOND PARTY"
COMPANY "FIRST PARTY"
Name:--------------------------- Name:----------------------------------
Signature:------------------- Signature:-----------------------
Chapter 3: Work Schedules, Time Off & Overtime
Table of Contents
Paragraph Subject
3-2 Responsibility
3-2-1 Executive Management
3-2-2 Human Resources Sector
3-2-3 Department, Division and Section Heads
3-2-4 Employees
3-3 Work Schedules
3-3-1 Standard( Regular) Work Schedule
3-3-2 Non- Standard (Irregular) Work Schedule
3-3-3 Shift Work Schedule
3-3-4 Ramadan Work Schedule
3-3-5 Prayer and Rest Periods
3-4 Rest Days
3-4-1 Standard Schedule
3-4-2 Non- Standard Schedule
3-4-3 Shift Schedule
3-4-4 Weekly Rest Days
3-4-5 Weekly Rest Days During Work/ Training Assignments
3-5 Overtime
3-5-1 Eligibility
3-5-2 Cases for Overtime Payment
3-5-3 Overtime Rate Calculation
3-5-4 Shift Work Schedules
3-5-5 Call-In
3-5-6 Eligibility of Call- In Pay
3-5-7 Call- In Rate
3-5-8 On Call Status
3-8-9 Eligibility to On – Call Status
3-5-10 Computation of On – Call Rate
Red line below text indicates addition or change Date of addition or change: 01/09/2007 Date of Issue: 01.04/2005

It is the policy of the Company to establish work schedules taking into
account operational needs, the type of work assignments required, legal
requirements, and the need to maximize efficiency and economy in the use
of personnel. Whenever possible and practical, uniform work schedules
will be instituted in order to provide consistency in the various areas of the
Company's Operating Areas.
The Company shall keep overtime work to a minimum level consistent
with operating requirements. Overtime will be scheduled and paid for in
accordance with the applicable Labor Regulations, internal work rules, and
appropriate human resources practices.
3-2 Responsibility
3-2-1 Executive Management

Executive Management is responsible for authorizing new work
schedules and approving any changes required in the current ones.
3-2-2 Human Resources Business Unit

The Human Resources Business Unit, in consultation with other
Business Units, is responsible for:
(A). Reviewing all work schedules proposed by the Company's
various departments,
(B). Ensuring that they conform with statutory requirements and
Company policy, and
(C). Defining the procedures for controlling overtime.
3-2-3 Department, Division and Section Heads

Department, Division and Section heads will assign work to
employees within their respective organizations in accordance with
the approved work schedules. It is their responsibility to:
(A). Ensure maximum utilization of available manpower,
(B). Make certain that all employees within their organizations are
employed for the full established schedule, and
(C). Implement necessary controls for the minimum use of overtime.
3-2-4 Employees
Employees must be punctual and must work their full schedules.
They should not absent themselves from duty without having good
justification or the consent of the direct supervisor.
3-3 Work Schedules

Basic work schedules are set up by the Company’s Executive
Management for each department or group of employees based on
operating requirements, provisions of the Labor Regulations and the
Company’s Human Resources Policies.
3-3-1 Standard (Regular) Work Schedule

The normal standard day work schedule established for employees
assigned to the day schedule is eight (8) hours per day, five (5) days
per week (Saturday through Wednesday) with a total of forty (40)
hours per week followed by two (2) days off with pay, Thursday and
Friday. Starting and ending hours of the daily work schedule will be
determined in accordance with operational requirements, season and
demands of the geographical area.
3-3-2 Non-Standard (Irregular) Work Schedule

A Non-Standard (Irregular) work schedule involves non-standard
hours and or non-standard weekly rest days; it also may involve a
shift schedule.
3-3-3 Shift Work Schedule

A shift schedule will be devised when operations must be conducted
continuously all over the day. A variety of schedules may exist from
time to time to accommodate actual operational requirements.
3-3-4 Ramadan Work Schedule

The Ramadan work schedule applies only to Muslim employees. The
Standard and Non-Standard work schedules will be reduced to six (6)
hours per work day. When it is necessary for the employee to work
more than six (6) hours, he will be compensated as per the
appropriate overtime policy.
3-3-5 Prayer and Rest Periods

All Muslim employees will be allowed reasonable time off during
work periods to fulfill their religious obligations. However, it is the
responsibility of supervisors to ensure proper coverage of the job
duties for the safety of employees and operation of the Company
facilities.
All employees are allowed to have a short food and rest break.
3-4 Rest Days

3-4-1 Standard Schedule
Employees assigned to a Standard (Regular) work schedule will
normally have Thursday and Friday as days of rest with pay per
week.
3-4-2 Non-Standard Schedule

Employees assigned to a Non-Standard (Irregular) work schedule,
consistent with operational requirements and the approved work
schedule, will also have due days of rest with pay per week which
may be other than Thursday and Friday.
3-4-3 Shift Schedule

Employees assigned to a Shift work schedule will receive rest days
(in kind or pay) equal to other employees assigned to Standard work
schedules. In case of any difference in rest days from those of
standard schedule, they will be compensated as per the rules. The rest
days given will be consistent with shift rotation schedules and
operational requirements.
3-4-4 Weekly Rest Days

Employee shall be eligible for the weekly rest (standard time), if he
works at least one day during the week. Weekly rest shall be
recorded as follows depending on work days during the week which
precedes or follows the weekly rest:
Work Days Next

No. Work Days During the Week Weekly Rest
Week
One day or (more) of actual work
Actual work or any type
1 and the rest days of the week are Normal time
of leave.
leave of any type.
Two days or (more) are public Actual work or any type
2 holiday and the rest work days are Normal time of leave.
leave of any type.
One day or (more) are actual work
and/ or two days or (more) are public
Annual leave form the
holiday and the rest work days are
3 Normal time beginning of the week
taken as leave from the annual leave
(full week or part of it).
balance continuous to next week
(complete next week or part of it).
Two days or (more) are paid or
unpaid leave( mixed, not of one type) Actual work or public
4 and the rest work days are taken as Normal time holiday from the
leave from the annual leave balance ( beginning of the week.
for this week only).
One day or (more) are paid or unpaid
leave and the rest work days are Annual leave from the
5 taken from the annual leave balance, Annual Leave beginning of the week
continuous to next week ( full next (full week or part of it).
week or part of it).
Actual work or any type
6 Public holiday for all work days. Normal time
of leave.
Leave of any type (mixed not of one Leave with or without
type), except the annual leave, The same type pay from the start of the
7 continuous to the next week, the of leave that week, continuous from
same type of the leave taken in the ends the week. the previous week (full
last day of this week. week or part of it).
Four days or (more) are annual leave
and the remaining work days are Actual work or a leave
8 Annual leave.
leave with/ without pay or a public of any type.
holiday for one day only.
Actual work or leave of
9 Sick leave for all work days. Sick leave.
any type.
Industrial Actual work or leave of
10 Industrial injury for all work days.
injury. any type.
Examinations leave for all work Examinations Actual work or leave of

11
days. leave. any type.
12 Hajj leave for all work days. Normal time.
any type.
Leave of sport activities for all work Leave of sport Actual work or leave of
13
days. activities. any type.
Patient's escort leave for all work Patient's escort Actual work or leave of
14
days. leave. any type.
15 Leave without pay for all work days. Unpaid leave.
any type.
Absence from work for all work Absence from Actual work or leave of
16
days. work. any type.
Note:
1. "Actual Work" means regular work or a Work/Training assignment inside or
outside the Kingdom.
2. "Leave of Any Type" means the various types of paid leaves, public holiday,
annual leave or a leave without pay.
3-4-5 Weekly Rest Days during Work/ Training Assignments

3-4-5-1 Employees Working on Regular Work Schedule
If an employee working on a regular work schedule attends a
Work/ Training assignment (inside or outside the Kingdom)
during his weekly rest days (Thursday and Friday) and he
neither takes the rest days nor any alternative days, he shall
then be compensated by alternative days for the his weekly
rest days, provided he takes such rest days within a period of
sixty (60) days from date of the said work assignment or
training course.
3-4-5-2 Employees Working on Shift Schedule

If a shift worker employee attends a work/training assignment during
his weekly rest days (inside or outside the Kingdom) and he neither
takes the rest days nor any alternative days, he will be compensated by
alternative rest days equal to those which overlapped with the work/
training assignment period, provided he will take the substitute rest
days within a period of sixty (60) days from the date when that work/
training assignment ends.
3-5 Overtime
Any work assigned to the employee outside the regular work hours or
during the public holidays (Eid al-Fiter, Eid al-Adha, and the National
day holidays) or during the weekly rest days or during any work/ training
assignment inside the Kingdom, shall be considered overtime.
3-5-1 Eligibility
(A). Employees in job grades (50) and below are eligible to receive
overtime.
(B). And employees in grades above (50) and work in shifts system.
3-5-2 Cases for Overtime Payment

Overtime compensation will be paid to eligible employees for:
(A). Work in excess of eight (8) hours per day.
(B). Work in excess of six (6) hours per day during Ramadan for
Muslim employees.
(C). Work on the weekly days of rest.
(D). Work on Company observed Public Holidays.
(E). When overtime work overlaps with any Work/ Training
assignment as per the following controls:
• Work/ Training assignment is carried out in the Kingdom.
• Overtime work should be requested for an emergency case
such as power outages that may affect a wide sector of
customers, indispensable maintenance of some stations and
working in a remote area that needs to be completed within a
short period of time.
• Approval of Sector's ED should be obtained for overtime
work during work/ training assignments.
3-5-3 Overtime Rate Calculation

Overtime work rate equals: (150%) of the regular rate and it is
calculated as follows:
A. Daily Overtime Rate: (1.5) × (Monthly Basic Salary X12 Months) ÷
365 days
B. Hourly Overtime Rate: Daily Overtime Rate ÷ Daily Overtime
Hours
C. Overtime Hours Rate: Rate for one Overtime Hour X Number of
Overtime Hours.
Example:
An employee whose basic salary is (SR 10 000) and he worked for
(14) overtime hours during any of the Gregorian months.
Its calculation is as follows:
• Daily overtime rate: (1.5) x (10 000 x12)÷ 365= SR 493.15
• Hourly overtime rate: 493.15 ÷ 8= SR 61.64
• Rate for overtime hours: 61.64x 14= SR 862.96
3-5-4 Shift Work Schedules

Shift schedule workers (7-2, 7-2, 7-3) or work schedule (5-2,5-2,5-
1) shall be compensated for the increase of work days and
decrease of rest days:
The Company shall compensate workers on schedules:
(7-2, 7-2, 7-3) or work schedule (5-2,5-2,5-1), 5% of the daily basic
salary for each day the worker deserves a shift allowance, as a
compensation for work days increase and decrease of rest days in this
work schedule rotation.
3-5-5 Call - In
Call of the employee and assigning him duties outside his regular
work schedule when Company business requires, after the regular
work hours or during rest days or public holidays or any type of
vacation.
3-5-6 Eligibility of Call in Pay

1. Employees in grades (50) and below,
2. And employees in grades above (50) and work on shift system are
eligible for call in compensation.
3-5-7 Call in Rate

Any employee who is called in for shall be compensated as follows:
Period Spent in Duty Compensation in Compensation in Over

(Call in for Duty) Normal Rate Time Rate
Less than (1) work hour (4) Normal hours rate
and up to (2) work (against the first (2) Not applicable
hours. work hours)
(4) Normal hours rate Overtime rate (150%)
More than (2) hours. (against the first (2) for the time that follows
work hours) the first (2)work hours
3-5-8 On - Call Status

It is a situation when the employee is asked to be ready to report to
duty whenever he is called at any time during days of rest and public
holidays only.
3-5-9 Eligibility to On – Call Status

1. Employees in grades (50) and below.
2. Employees in grades above (50) and work on shift system.
3-5-10 Computation of On – Call Rate

When the Company business requires an employee to be on call
status only during days of weekly rest or public holidays (for a
period of one day or more), he will be compensated as follows:
3-5-10-1 If not called in

If the employee (put on call status) is not actually called to
duty, he shall be compensated by four (4) hours straight time
pay for every day.
3-5-10-2 If Called In
If the employee (put on call status) is actually called to duty,
he shall be compensated for that as per schedule shown on
paragraph no.3-5-7 in this Manual.
Chapter 4: Salary, Increments and Allowances
Table of Contents
Paragraph Subject
4-2 Responsibility
4-2-1 Responsibility of Direct Supervisors
4-2-2 Responsibility of Human Resources Sector
4-3 Job Description and Salary Structure
4-3-1 Job Descriptions
4-3-2 Job Families
4-3-3 Job Evaluation
4-4 Hiring Salaries
4-5 Basic Salary
4-5-1 Monthly Basic Salary Calculation
4-6 Salary Increases
4-6-1 Annual Increment
4-6-2 Eligibility of Annual Increment During Unpaid Leave/
Absence
4-6-3 Partial Annual Increment Upon of Service End
4-6-4 Employees Promotions
4-6-5 Promotion Increases
4-6-6 Promotions of on- Job ( Non University Graduate) Trainees
4-6-7 Calculation of Increase to Basic Salary
4-6-8 Employment& Promotion of Employees on the New Interim
Organizational Chart
4-6-9 Controls for Saudi Employees to Pursue University Studies
while in Company Service
4-6-10 Controls for Employee's Eligibility to Promotion if his
Services End After that Date
4-6-11 Adjustment of Salaries of Expatriate Employees who have
Obtained the Saudi Nationality
4-7 Authorities of Temporary Assignments
4-7-1 Assignments As Per Replacement Plan
4-7-2 Assignments Not Covered by the Replacement Plan
4-7-3 Assignments for Vacant Administrative Positions
4-8 Allowances
Paragraph Subject
4-8-1 Housing Allowance
4-8-2 Transportation Allowance
4-8-3 Additional Transport Allowance for the Two Shift Workers
Additional Transport Allowance for Meter Readers( Against
4-8-4
Use of their Cars in Meter Reading Activities)
Work Allowance for Workers at Generation, Transmission&
4-8-5
Transformer Stations
4-8-6 Shift Allowance
4-8-7 Industrial Security Allowance

It is the policy of the Company to pay equitable and competitive salaries and
allowances according to sound and formal salary administration programs. The
programs shall be carefully balanced with basic salaries and allowances
designed to attract, retain and motivate required qualified personnel.
Specifically, the salary programs are designed to achieve the following
objectives:
A) Relate the pay to the job grade.
B) Recognize differences in responsibilities, skill levels and job value.
C) Maintain a competitive level of pay with comparable employers in
Saudi Arabia and abroad.
D) Reward individual employees based on their work performance.
4-2 Responsibility
4-2-1 Direct Supervisors
The responsibilities of Department Managers and supervisory staff
for the salary administration program are as follows:
(A). Understanding the Company’s policy and procedures on salary
administration, effectively applying them and consulting with the
regional HR Services Departments, as required.
(B). Reviewing and appraising the work performance of employees
under their supervision and making appropriate salary increase
recommendations for them in accordance with established
policy, and
(C). Updating and providing information on job functions and
responsibilities, identifying new jobs or changes in existing jobs,
and asking Organization Studies Department to reflect such
changes in new or revised job descriptions and profiles for job
evaluation purposes.

The Human Resources Business Unit will:
A. Prepare and review all recommendations related to salaries and
allowances and ensure its equity and harmony with the Company's
policies and procedures.
B. Furnish advice and assistance to managerial and supervisory staff
at all levels regarding the interpretation and application of salary
administration policies and procedures.
C. Monitor the levels of pay and changes in cost of living and other
economic factors in Saudi Arabia and the recruiting source
countries.
D. Conduct or participate in market salary surveys and recommend
accordingly to Executive Management or Board of Directors.
4-3 Job Description and Salary Scale

4-3-1 Job Descriptions/Role Profile
A job description/role profile is a formal document providing a
record of the contents and purpose of a job, which serves to
distinguish it from other jobs in the Company. It summarizes the
scope of the job, defines its duties and responsibilities, key
accountabilities, organizational relationships, performance indicators
and describes the skills and qualifications required for its satisfactory
performance. Normally uniform methodology is used for such job
description.
A job description or role profile is prepared for each job, or a group
of positions or jobs of identical or comparable job content,
designated under a single job title. It is used as the basic document to
evaluate jobs for placement in appropriate grades according to the
established salary grade structure.
4-3-2 Job Families

Job Families are a means for defining work in situations where the
nature of work is similar, but the level of work is differentiated
according to the accountabilities, skills and competencies required to
do the job.
Job Families allow for added flexibility in line with the continually
changing needs of the business, increased focus on the person doing
the job as well as a step towards developing career ladders mirroring
managerial progression.
4-3-3 Job Evaluation (Job Grading)

Job evaluation is essentially connected to job description. It is used to
determine the job's value in line with the Company's own system,
which gives digital values for such evaluations. This process leads to
logical distribution of jobs over the Company's approved salary scale
taking in to account the crucial differences of obligations and

responsibilities for each job.
It is the Company’s intention to maintain consistency in the
application of its salary structures, and to recognize significant
differences in job duties and responsibilities.
Management has established grade differentials to compensate
employees on the basis of the duties and responsibilities of their
assigned jobs. To ensure equitable and consistent classification,
management has established a Job Evaluation System, which
measures the value of each job according to required job know how,
problem solving and accountability.
Accordingly, all jobs in the Company shall be described and
evaluated under the approved Job Evaluation System. In general, job
description and evaluation aims at determining the appropriate level
of salary, benefits and compensations for each job and facilitating the
management of salaries, compensations and benefits.
4-4 Hiring Salaries

A new employee who possesses the minimum qualifications and
experience required for the position as specified in the job description
will normally be hired at the minimum of the grade range established for
the position.
4-5 Basic Salary

It is the employee's monthly basic pay, which does not include payments
for overtime, allowances or any other form of compensations and
benefits.
4-5-1 Basic Salary Calculation

Monthly basic salary shall be calculated by using these factors:
(A). Employee's monthly basic salary.
(B). Number of month's calendar days.
(C). Number of paid days during the month.
(D). Employee's earned basic salary in the moth =
(Number of paid days during the month ÷ month's calendar days)
× employee's basic salary).
Example:
An employee whose basic monthly salary is (SR 10, 000) and he
had an unpaid leave for (7) days during February, 2007.
Method of Calculating Wage for the Normal Working Days:

Number of paid days = days of the moth – days if absence in the
moth = (28- 7) = 21
Wage eligible for the employee in this month = (21 ÷ 28) x 10,000 =
SR 7,500.
4-6 Salary Increases

4-6-1 Annual Increment
A) Full annual increment will be given to all eligible staff on the
first of April of each Gregorian year. The following categories
will be excluded:
1. Saudi employees of PDP program, as their increment will be
after the elapse of (12) months form date of the last annual
increment (or date of employment).
2. Employees hired during the first three months of the
previous Gregorian year; (that is to say, have completed
more than (12) months from date of employment or up to the
end of March this year) will be given two increments in this
Gregorian year: the first for one full year after completion of
(12) months, and the second will be at the start of April. The
latter will be a relative increment equals to number of
months spent in service from date of first increment divided
by (12) months and multiplied by the full annual increment,
taking into consideration salary place at Salary Scale after
the first increment, so that rate of second increment can be
determined.
3. Employees hired or given an annual increment during the
period form the start of May up to December of the last year;
(that is to say, have completed less than (12) months from
date of employment or last annual increment up to the end of
March this year) will be given a relative annual increment
equals to the number of months which the employee spent in
service since date of employment or last increment, divided
by (12) months and multiplied by the complete annual
increment.
4. New employees hired by the Company during the first three

months of the current Gregorian year will not be given an
annual increment at the beginning of April this year, and
their annual increment will be granted in the next Gregorian
year.
5. Salaries subject to GOSI subscriptions will be modified for
those who are eligible for an annual increment in January
this year;( that is to say, those hired in January last year or
who belong to the PDP program whose annual increment
becomes eligible in January this year), and GOSI will be
advised accordingly.
6. Saudi employees retiring normally during this year will be
given the due annual increment (in advance) at the start of
January this year, (so that they can utilize GOSI adjustment
of their salaries in computing their pensions). GOSI will be
advised accordingly.
B) Employee's eligible annual increment will be determined by his

performance average and his salary location within the
appropriate grade salary range, as follows:
More than
Less than Between Distribution
Grade
Performance Minimum Minimum of
Midpoint Up
Category Limit of Limit &Grade Performance
to Maximum
Grade Salary Midpoint Rates
Limit
Significantly exceeds 12% 8% 7%
expectations (1) 15%
Exceeds expectations (2) 10% 6% 5% 20%
Meets all expectations (3) 8% 4% 3% 60%
Meets minimum 6% 2% 0%
expectations (4)
Does not meet 5%
expectations (5)
0% 0% 0%
C) Company Business Lines will comply with the distribution of
performance rates as shown in the above table of (paragraph: B).
Categories of the following employees will be excluded from
the said performance rates distribution:
1. Employees participating in the PDP program.
2. Employees participating in the OJT program.
D) An employee will be given a partial annual increment if his
salary (after adding the complete annual increment) will exceed
the maximum range of the salary of his grade. His new salary
(after adding the partial annual increment) will be equal to the
maximum range of the salary of his grade.
E) Employees whose salaries have reached or exceeded the

maximum range of their salary grades will not be granted
annual increments.
4-6-2 Eligibility of Annual Increment During Unpaid Leave/Absence

A. As for the unpaid leave, (whether given upon request of
employee or as the balance of his sick leave is already used),
such cases will be treated as follows:
Days of Unpaid Leave Method of Treatment
During Annual
Increment Period
(30) days or less, Days of unpaid leave will not be
whether (continuous or deducted from the eligibility period for
intermittent). annual increment. Employee will be
granted complete annual increment.
More than (30) days, Days of unpaid leave will be deducted
whether (continuous or from the eligibility period for annual
intermittent). increment. Employee will be granted
partial annual increment.
B. As for unpaid absence, such period of unpaid absence shall be

deducted from the eligibility period for annual increment and
employee will be granted a partial annual increment only.
C. Method of calculating the Partial Annual Increment due for
employee:
• Unpaid Leave for more than (30) days (Continuous or Intermittent):
Annual increment amount due for one year – {(days of unpaid
leave the duration of which is (31) days or more ÷365) X
increment amount due for one year)}.
• Unpaid Absence:
Annual increment amount due for one year – {(days of unpaid
absence ÷365) X increment amount due for one year)}.
Example (1)
Date of last annual increment employee had: 1/4/2009.
Date of next increment to the employee: 1/4/2010.
Amount of annual increment eligible for one year: SR400.
Employee had an unpaid leave of (31) days duration (continuous or
intermittent) during the annual increment's eligibility period; (i.e.
form date of last annual increment to date of due- current annual
increment) = 400 – {(31 ÷ 365) X 400} = SR366.027 (SR366).
Example (2)
Employee had an unpaid leave of (163) days (continuous or
intermittent) duration during the annual increment's eligibility period;
(i.e. form date of last annual increment to date of due- current annual
increment).
Amount of annual increment eligible for one year: SR500.
In this case the partial annual increment due for the employee will be
calculated as follows:
Amount of eligible annual increment for one year – {unpaid leave the
duration of which is (31) days or more ÷365) X increment eligible
for one year:
= 500 – {(163 ÷ 365) X 500} = SR 276.71 (SR277).
4-6-3 Partial Annual Increment Upon End of Service

A. Eligible employees whose services are terminated for any of the
following reasons:
(A) Early retirement (B) Normal retirement (C) Medical disability
(D)Death.
will be granted a partial annual increment if six (6) months pass
from date of last increment.( Date of annual increment eligibility
for all employees is the first of April each year). Gregorian month
during which employment or service termination is made will be
considered a complete month regardless of when such
employment or termination falls therein.
B. A performance appraisal for the employee's service period (from
the beginning of the Gregorian year in which employee's services
are terminated up to date of such termination) shall be made,
provided that such appraisal rating given to employee shall not be
higher than his previous year appraisal rating by more than one
level.
C. Appraisal given to employee shall not be considered part of the
percentage allocated to the appropriate Business Unit by end of
the Gregorian year. Rules of granting annual increment due to
employee as per rate of increment based on employee's
performance and location of his salary within the appropriate
grades' salary range will be taken into account when calculating
the annual partial increment.
D. Calculation of Partial Annual Increment due for the Employee:
Last Monthly Basic Salary X Rate of Annual Increment due for
one complete year (as per the assessment shown in "B" above) X
(Number of months which passed from date of last annual

increment employee had ÷ (12) months).
4-6-4 Employees Promotion

4-6-4-1 Eligible employees will be promoted as per the Company's
approved plan, provided that the following conditions are
satisfied:
A) Employee obtains an assessment of "Meets All Expectations"
rating or higher (in his last appraisal).
B) Vacant position is available for promotion.
C) Three (3) years (36 months) (*) at least have passed
since date of employment or the last promotion. In case of
promotion before three years from date of employment or last
promotion, approval authority shall be as follows:
Period Employee Spent in Grade Approval Authority
From (1) to less than (3) years VP, Business Unit
(*) The month during which employment or promotion is made will be
considered a complete month regardless of when such employment or
promotion falls therein.
4-6-4-2 Rate of promotions shall not exceed fifteen (15%) of the personnel
of each Business Unit in the Company. This rate includes
employees of all grades and classifications, but the following are
excluded:
A) Promotions to positions of Division Managers and higher as
per the new interim Organizational Chart.
B) Promotions of PDP program graduates who spent (12)
months or more since date of graduation.
C) Promotions of OJT program graduates in accordance with
the OJT program graduates (non- university graduates).
4-6-4-3 Conformity of promotion granted to employee with the

appropriate personal development plan and the employee's
professional route plan will be checked.
4-6-4-4 Qualifications and experiences of concerned employee will not be
lower than the requirements of the position for which he is
proposed to be promoted (as per job description).
4-6-4-5 The BA or MA degree should be issued by an approved university

in the Kingdom, and in case such degree is issued by a foreign
university it has to be accredited by the appropriate authorities in

the Kingdom.
4-6-4-6 Ensure that promoted positions are approved in the Company's
Organizational Chart.
4-6-4-7 Promotions plan will be approved by the appropriate approval
authority (as per the Approval Signatures Manual). Promotions
will be implemented in line with the approved plan, and in case of
any change, approval of higher authority should be obtained.
4-6-4-8 Promotion effectiveness will be on either of the following dates:

• The beginning of June.
• The beginning of December.
4-6-5 Promotion Increases

A) The Company grants the employee who is regularly promoted to a
job of higher grade or whose job has been upgraded through job
evaluation, a promotion increase equals to (5%) of the basic
salary, provided that his new salary will remain within the grade
salary range of the promoted position. (New salary will not be less
than minimum range of the salary grade, nor exceeds the
maximum range of that salary range).
B) When the Saudi graduates (from both university and the
Company's Training Centers) who are hired before 1/1/2003, are
promoted, the employee's salary after adding the promotion
increase will be considered. If the salary remains less than the
approved employment pay for the appropriate specialization (as
per the approved salary scale effective 1/1/2003), employee's
salary will be increased to be equal to the approved pay for that
specialty.
C) Promotion increase will be effective from the first day of the
Gregorian month in which promotion was made.
4-6-6 Promotions of On – Job (non - University Graduate) Trainees

Graduates of Company Training Centers will be promoted to grade
forty six (46) as per the following controls:
Performance Assessment Date of Promotion Eligibility to Grade

during On- Job Training (46)
Significantly Exceeds After three (3) years from date of graduation
Expectations from the Company Training Center or upon
completion of on – job training period,
whichever is longer.
Exceeds Expectations After three and a half years (3.5) from date of
graduation from the Company Training
Center or six (6) months from date of
completing the on – job training period,
Meets All Expectations After four (4) years from date of graduation
from Company Training Center or one (1)
year from date of completing the on – job
training period, whichever is longer.
Meets Minimum Expectations After four and a half years (4.5) from date of
graduation from Company Training Center
or one and a half years (1.5) from date of
completing the on – job training period,
4-6-7 Calculation of Increase to Basic Salary

Cases where the basic salary is increased:
1. Annual increment only.
2. Promotion only.
3. Promotion and annual increment to gather.
4-6-7-1 Annual Increment Only

Rate of annual increment is determined by two factors:
A) Performance assessment.
B) Place of employee's salary within the grade range.
Table of Increments will be used to determine rate of the eligible

annual increment, provided new salary shall not exceed the
maximum limit of the employee's grade range.
Basic Salary after adding the increment rate = (Basic Salary ×
Increment Rate) + Basic Salary.
4-6-7-2 Promotion Increase Only

As per paragraph no.4-6-5 of the HR Policy Manual the company
shall grant the eligible promotion increase to all grades which is
equal to (5%) of the basic salary, provided new salary does not
exceed the maximum limit of the new grade salary range, nor it
does be less than the minimum limit of the grade range to which
employee is promoted.
Basic Salary after adding promotion increase = (Basic Salary ×
5%) + Basic Salary.
4-6-7-3 Calculation of Salary Increase when both the Promotion and
Annual Increment Coincide
Salary increase shall be calculated as per following order:
1. Determination of promotion increase rate.
2. Determination of annual increment rate (by comparing the
current salary with the present grade midpoint).
3. Addition of promotion rate to annual increment rate to get
the new salary.
(Basic Salary × the total of promotion and annual increment
rates) + Basic Salary.
New salary shall not exceed the maximum limit of the new
grade range to which the employee is promoted, nor be less
than the minimum limit of that grade range.
4-6-7-4 Examples on Applications of Increases to Salaries

Example (1)
A Saudi employee, grade (48) and his basic salary is (SR 9000).
His performance assessment rate is 'Very Good' and he is
promoted to grade (49).
Salary range midpoint of Grade (48) is (SR 7953).
Eligible promotion rate is (5%).
Eligible annual increment rate is:
As the current basic salary is (SR 9000), which is higher than the
salary range midpoint of grade (48), eligible annual increment rate
is (5%).
Total of eligible promotion rate +eligible annual increment rate =
(5%) + (5%) = (10%).
New Salary = (Basic Salary × Total of Promotion and Annual
Increment Rates) + Basic Salary.
= (9000 × 10%) + 9000 = SR 9900.
Example (2)
A Saudi employee, grade (51) and his basic salary is (SR 16500).
His performance assessment rate is 'Very Good' and he is
promoted to grade (53). Salary range midpoint of grade (51) is
(SR 11879).
Eligible promotion rate is (10%).
Eligible annual increment rate is:
As the current basic salary is (SR 16500) which is higher than
range midpoint of grade (51), eligible annual increment rate is
(5%).
Total of eligible promotion rate +eligible annual increment rate =
(5%) + (10%) = (15%).
New Salary = (Basic Salary × Total of Promotion and Annual
Increment Rates + Basic Salary).
= (16500 × 15%) + (16500) = SR 18975
4-6-8 Employment and Promotion of Employees on the New Interim

Organizational Chart
Appointing employees on the New Interim Organizational Chart will
be made as per the following controls:
4-6-8-1 Controls for Employments and Promotions of Employees to

Division Managers and Higher:
1. Employee's qualifications should not be less than the targeted
position requirements (as per job description).
2. If the grade of the job at which the employee is appointed is
higher than his current position by one (1) grade, he will be
promoted at the beginning of June (1/6) or December (1/12),
whichever is closer to date of appointment.
3. If the grade of the job at which the employee is appointed is
higher than his current position by two(2) grades, he will be
promoted to the new position grade as follows:
• First promotion will be given to him at the beginning of
June (1/6) or December (1/12) whichever is closer to date
of employment.
• Employee will get the second promotion after the elapse
of twelve (12) months from date of having the first
promotion.
• Employee will remain on Acting Status until he gets the

grade of his appointed position.
4. Approval authority shall be as per the approved table of
authorities.
4-6-8-2 Controls for Employments and Promotions of Employees to

Supervisory Positions at the Level of Section Head or Unit
Supervisor:
A) Ensure that qualifications of nominated employee match the
requirements of targeted position.
B) Then nominations will be compared with the replacement
lists, and approval of Administrative and Professional
Development Dep. will be obtained. In case of any change to
the said approved lists, appropriate department in
coordination with the Administrative and Professional
Development Dep. will obtain endorsement of competent
authority to the same. If no replacement lists are available
for the nominated job, competent department then will
provide the approval authority with a list showing
department's employees holding the same grade of the
nominee or higher.( Example: when an employee at grade:50
is nominated for a position at grade:52, such list will cover
employees at grades: 50,51,52 53 and higher.).
C) If the grade of the position to which the employee is
nominated is higher than his current job by one grade,
employee will be granted the new grade with effect from
date of employment, provided that twelve (12) months have
passed since his last promotion. If he has not completed the
twelve (12) months period requirement, then he will be on
Acting Status until he gets the nominated job grade after the
passage of twelve (12) month from date of the last
promotion he had.
D) When the position to which employee is nominated is two
(2) grades higher than his current job grade, his promotion
will be as follows:
1. If the employee has spent twelve (12) or more months
from date of his last promotion, then he will be given one
grade at the date of appointment. His second promotion
will be after the elapse of twelve (12) months from date
of employment, and he will remain on Acting Status until

he is granted the nominated job grade.
2. If the employee has spent less than twelve (12) months
from date of his last promotion, a letter from his
Department Manager will be issued assigning him duties
of the supervisory job (keeping his previous job title
without any change). His first promotion for one grade
will be made when he completes twelve (12) months
from date of his last promotion, and he will remain on
Acting Status for the (supervisory job) until he is granted
the nominated job grade. His second promotion will be
given after the elapse of twelve (12) months from date of
the first promotion.
E) If the difference between the nominated job grade and the
employee's current grade is three (3) grades or more, a letter
from the appropriate Department Manager assigning him
duties of the supervisory job will be issued. Then he will be
promoted to a job higher than his current job by one grade
within the range of his scope of work (provided that he has
completed twelve (12) months from date of his last
promotion). After that he will be gradually promoted to a job
higher than his own by one grade (within the same job route)
after the elapse of each twelve (12) months). Employee will
remain on Acting Status until he reaches the grade of his
nominated job.
F) Approval authority for employment and promotion will be as
follows.
Difference between Employee's Approval Authority for
current grade and the targeted job Employment or Promotion.
grade(on which Employee will be
appointed or promoted)
One grade As per approved list of
authorities
Two grades or more Business Unit VP
4-6-8-3 Examples on Employments and Promotions to Supervisory

Jobs
Example (1)
Target Job: Section Head, Distribution Materials Planning,
Materials Dep., Central Region, Grade,52.
Employee's current job: Analyst: B, Materials Stock Planning, and

his current grade, which he got on 1/1/2004 is (49).
SN Date Job Title Grade Remarks
Analyst-A, Materials Promotion with
1 1/1/2005 Stock Planning 50 grade from date of
assignment.
Senior Analyst, Promotion with
2 1/1/2006 Materials Stock 51 grade
Planning
Section Head, Promotion with
3 1/1/2007 Distribution Materials 52 grade for the
Planning appointed job
Example (2)
Target Job: Section Head, Operation, Power Plant, Grade,52.
Employee's current job: Senior Operator, Power Plant, and his
current grade which he got on 1/1/2004, is (49).
(No job on grade: 51 exists in the Job Route of Operation Section
(1-4) no:1).

Operation Promotion with grade
1 1/1/2005 Superintendent, 50 from date of assignment
Power Plant
(Acting) Section Promotion with grade
2 1/1/2006 51
Head, Operation
Section Head, Promotion with grade for
3 1/1/2007 52
Operation the appointed job
Example (3)
Target Job: Section Head, Operation, Power Plant, Grade: 52.
Employee's current job: Senior Operator, Power Plant, and his
current grade, which he got on 1/7/2004, is (49).

He will be on Acting
Status on the appointed
Senior Operator, job without promotion.
1 1/1/2005 49
Power Plant ( He did not complete 12
months since his last
promotion)
2 1/7/2005 Operation 50 Promotion with grade
Superintendent
Power Plant
(Acting) Section
3 1/7/2006 51 Promotion with grade
Head, Operation
Section Head, Promotion with grade for
4 1/7/2007 52
Operation the appointed job
4-6-9 Controls for Saudi Employees to Pursue University Studies while

in Company Service
4-6-9-1 Regular and Irregular (part time or correspondence)

programs:
In case of regular and irregular study programs (par time or
correspondence) the following must be satisfied:
A. Company approval to study program is obtained in advance,
in order to ensure that it will not affect work progress.
B. Speciality of study should be among those needed and
approved by the Company and that it is related to employee's
current job.
C. Employee should sign an undertaking that he will not ask for
any promotion because of obtaining the University degree.
After graduation and having the university degree, employee's
qualifications in the company records shall be changed and
his university degree will be taken into account when
candidates for promotions/ position placements will be
selected.
4-6-9-2 Full Time University Study (after having an unpaid leave)

In case of full time university study( after having an unpaid leave)
the following conditions should be satisfied:
(A) Company approval to study program is obtained in advance
by applying the unpaid leave policy as per its duration.
(B) Speciality of study should be among those needed and
approved by the Company and related to employee's current
job.
(C) Employee should sign an undertaking that he will not ask for
any promotion because of obtaining the University degree.
After graduation and having the university degree, employee's
qualifications in the company records shall be changed and his
university degree will be taken into account when candidates
for promotions/ position placements will be selected.
4-6-10 Controls for Employee's Eligibility to Promotion when his Services

End after Date of Eligibility
A. When date of promotion effectiveness falls before the employee's
end of service with the Company because of early or normal
retirement or disablement or termination or work contract expiry or
death, he will be in this case entitled to promotion and his end of
service award will be calculated according to the new salary ( after
the promotion increase).
B. When the employee's services with the Company were ended
because of resignation or absence or any of the reasons stated in
article no (80) of the Saudi Labour Law and the termination date
falls within the month ( Gregorian calendar) in which the
employee's promotion becomes effective, employee in this case
shall not be eligible for the promotion. End of service award will be
calculated according to the salary without the promotion increase.
C. When the promotion effectiveness date falls in a Gregorian month
prior to the Gregorian month in which the end of service becomes
effective, employee then will be eligible for the promotion and his
end of service award will be calculated according to the new salary
after the promotion increase regardless of the cause for such end of
service.
4-6-11 Adjustment of Salaries of Expatriate Employees who have

Obtained the Saudi Nationality
Salary of the expatriate employee who has obtained the Saudi
nationality shall be adjusted by granting him the equivalent of his
current salary in the Saudis' Salary Scale as follows:
First: "COMPA- RATIO" for the employee's current salary in the
Expatriates' Salary Scale shall be determined as per the following
formula:
Basic salary (at time of obtaining Saudi nationality) ÷ the grade's
range midpoint as per the Expatriates' Salary Scale.
Second: Employee's new salary as per the Saudis' Salary Scale shall be
determined as per the following formula:
"COMPA- RATIO" of the employee's salary as per the
Expatriates' Salary Scale (produced in first above) x the grade's
range midpoint as per the Saudis' Salary Scale, provided that
employee's new salary shall not exceed the maximum limit nor
be less than the minimum limit of his grade salary, as per the
Saudis' Salary Scale.
Third: Employee's salary shall be adjusted as from date of obtaining

the Saudi nationality. Date of issue of employee's national ID
(Hafeza) shall be considered the Company's approved date for
him to obtain the Saudi nationality.
4-7 Authorities for Assigning Temporary Administrative Jobs

4-7-1 Authorizations as per Replacement Plans
If authorizations are made in line with the Company's approved
replacement plans, approval authorities will be as follows:
*Level of Acting Approval Authority for Acting
Position Status
Section/Unit Head Division Manager
Division Manager Department Manager
Department Manager SED
SED EVP/SVP
SED, Operating Area EVP, Distribution & Customer
Services
EVP/SVP President &CEO
* Note: If the incumbent reports to an administrative level higher
than the above approval authority, assigning authority will be to
the higher administrative level for whom the incumbent reports.
4-7-2 Assignments are not covered by Replacement Plans

If authorizations are not covered by the Company's approved
replacement plans, approval authorities will be as follows:
**Level of Acting Approval Authority for Acting
Position Status
Section/Unit Head Department Manager
Division Manager SED
Department Manager EVP/SVP
SED and above President &CEO
** Note: If the incumbent reports to an administrative level similar or higher
than the above approval authority, assigning authority will be to the
administrative level directly higher than the authority for whom the
incumbent reports. (Such authority will not surpass President & CEO).
4-7-3 Assignments for Vacant Administrative Positions

Employees authorized to discharge duties of vacant administrative
jobs will have the term (Acting Assignment- AA) added to their
titles, while those authorized to perform the functions of jobs

occupied by others(during their vacations for example) will have the
term(Acting) added to their titles.
4-8 Allowances
4-8-1 Housing Allowance
4-8-1-1 Eligibility
All Company employees (including non- Saudi Muhrams-
guardians) are eligible for housing allowance. In case furnished or
unfurnished housing is provided, rent of such housing units will
be deducted from the appropriate employee's salary in accordance
with the Company's approved housing rent chart.
4-8-1-2 Amount of Housing Allowance
All employees are paid (25%) of their basic monthly salary
subject to a minimum of (SR15,000) fifteen thousands Saudi
Riyals per year.
4-8-1-3 Method of Payment
Housing allowance will be paid monthly within the monthly
salaries of employees.
4-8-1-4 Continuation or Suspension of Payment of Housing Allowance
See Attachment no. (1); entitled the Approved table for
Continuation or Suspension of Payment of Allowances (at the end
of this chapter).
4-8-1-5 Practical Example on How Housing Allowance is Calculated
An employee whose monthly housing allowance is (SR 2500) and
he took an unpaid leave of (7) days during February 2008.Eligible
monthly housing allowance will be calculated as follows:
Eligible monthly housing allowance: (monthly housing allowance
x number of days worked during the month ÷number of days of
the month)
Eligible housing allowance for the month: 2500 x (21 ÷ 28) =
SR 1875
4-8-2 Transportation Allowance

4-8-2-1 Eligibility
All regular employees who are not provided Company
transportation are eligible to receive the transportation allowance.
4-8-2-2 Amount of Transportation Allowance

Grades Monthly Transport
Allowance in( SR)
Grades: 40-47 500
Grades: 48-51 600
Grades: 52-54 800
Grades: 55-56 1000
Grades: 57-58 2000
Grades: 59- 61 3500
4-8-2-3 Continuation or Suspension of Allowance

1. The Company will not pay the regular transport allowance to
employees who are provided with means of transportation for
commuting between their residence and workplace.
2. Payment of transport allowance will continue for employees
who reside at their workplace.
3. Regular transport allowance to employees who are provided
with Company means of transport will continue to be paid
during the various types of eligible vacations,(during which
transport allowance is paid), work and training assignments, if
the employee returns the car to the Company; (i.e. not kept in
his possession).
See Attachment no. (1); Approved Table for Continuation or
Suspension of Payment of Allowances (at the end of this chapter).
4-8-2-4 Practical Example on How Transport Allowance is Calculated

An employee on grade (50) and gets a monthly transport allowance
of SR 600. He took an unpaid leave of (7) days during February
2008.
Eligible transport allowance for the month: (monthly transport
allowance x days worked during the month ÷ days of the month
Eligible transport allowance for the month: 600 x (21÷ 28) SR 450
4-8-3 Additional Transport Allowance for the Two Shift Workers

4-8-3-1 Eligibility
An additional transport allowance will be paid to employees who
wok on two shifts schedules.
4-8-3-2 Amount
It is equal to the regular transport allowance.
4-8-3-3 Method of Calculation
A) This allowance will be payable for any days worked on two
shifts during any Gregorian month.
B) Additional transport allowance for the two shift workers will
be calculated as follows:
(Monthly transport allowance) x (days of the month worked
by employee on two shifts ÷ days of the month).
4-8-3-4 Examples of Applications for Calculating Additional

Transport Allowance to Employees Working on Two Shifts
Example (1)
An employee, grade: (49) worked in two shifts at the Company
clinic (Eastern Region) during April 2008G. (In that month there
were four (4) Fridays not worked by the employee and four (4)
Thursdays worked by the employee on one shift only).
In this case, his additional transport allowance will be as follows:
(Monthly transport allowance x days of the month worked by
employee on two shifts ÷ days of the month)
= 600 × (22÷ 30 = SR 440
Example (2)
An employee, grade: (47), at Office Services Dep. worked on two
shifts for nine (9) days during January 2008G. (During this month,
there were ten (10) days of weekends). He also worked on one
shift for eight (8) days and he had a vacation for four (4) days.
In this case, his additional transport allowance will be as follows:
Eligible monthly additional transport allowance: (monthly
transport allowance x days of the month worked on two shifts) ÷
days of the month
=500 x (9 ÷ 31) = SR 145.16
4-8-3-5 Continuation or Suspension of Payment of Allowance

Additional transport allowance will not be paid to employees who
work on two shifts, if the Company provides them with means of
transport for commuting between their residence and work place

for both work shifts.
Suspension of payment of Allowances (at the end of this chapter).
4-8-4 Additional Transport Allowance for Meter Readers (against Use

of their Cars in Meter Reading Activities)
4-8-4-1 Classification and Amount of Allowance

Meter Readers who use their own cars in activities of meter
reading and bills distribution will be eligible to an additional
transport allowance as per the following details:
Work Days in Monthly
Reading Area
Gregorian Month Allowance
Inside cities and neighboring
(1) work day or more. SR500
villages.
Desert or agricultural areas
(3-11) work days. SR 1000
outside cities at a distance of
(10) km or more (from cities
(12) work days or more SR 1200
borders on unpaved roads).
Rough mountain areas (3-11) work days. SR1100
( unpaved roads) (12) work days or more SR1400
4-8-4-2 Method of Application

Employee will get the highest allowance according to his work
days in the Gregorian month, taking in to account the number of
work days in which the meter reader uses his car as follows:
(Monthly additional transport allowance for meter readers) x
(days of the month worked by employee ÷ number of days of the
month).
4-8-4-3 Examples of Application on How the Additional Transport

Allowance for Meter Readers is Calculated
Example (1)
An employee worked in the city for eighteen (18) days during
April 2008, and for two (2) days in desert or agricultural areas at a
distance of ten (10) km or more from the city, and he had a
vacation for two (2) days. In this case, he will be entitled to an
additional transport allowance of five hundred Saudi Riyals
(SR500), but since he had a two – day vacation, his work days in
the month were = (30) days – two day leave = (28) days.
Eligible allowance will be calculated as follows:
Allowance eligible for the month = (monthly additional transport

allowance for meter readers) x (days worked by employee during
the month ÷ number of days of the month)
= 500 x (28÷ 30) = SR 450
Example (2)
An employee worked during March 2008 for ten (10) days in a
desert or agricultural area (10) km or more away from the city,
and he spent the rest of the month working in the city or the
neighboring villages and he had a vacation for five (5) days. In
this case, he will be entitled to an additional transport allowance
of one thousand Saudi Riyals (SR1000), but since he had a five
(5) days vacation, days worked by him during the month are:
eligible allowance will be calculated as follows:
(31) days –5( days of vacation) = (26) days.
Eligible allowance for the month = (monthly additional allowance
for meter readers) x (days of the month worked by employee ÷
days of the month)
= 1000 x (26 ÷ 31) = SR 838.71
Example (3)
An employee worked during January 2008 for fifteen (15) days in
a rough, mountain area, and he spent the rest of the month
working in the city or the neighboring villages and he had a
vacation for eight (8) days and three (3) days of authorized
absence. In this case, he will be entitled to an additional transport
allowance of one thousand four hundred Saudi Riyals (SR1400),
but since he had an eight (8) days vacation and three (3) days of
authorized absence, days worked by him during the month are =
(31) days – (8) days of vacation – (3) days of authorized absence)
= (20) days.
Eligible allowance for the month = (monthly additional transport
allowance for meter readers) x (days of the month worked by
employee ÷ days of the month)
= 1400 x (20 ÷ 31) = SR 903.22
4-8-4-4 Continuation or Suspension of Payment of Allowance

Additional transport allowance for meter readers will not be paid
to such employees, if the Company provides them with means of
transport for performing the reading activities.
Suspension of Allowances payment (at the end of this chapter).
4-8-5 Remote (Generation, Transmission &Distribution) Plants and

Stations Allowance
4-8-5-1 Eligibility and Allowance Amount
The Company pays employees who work in power plants,
transmission and transformer stations located fifty kilometers (50)
km or more from main cities (See Attachment no:2 for an
approved list of these stations) an allowance as per the following
three categories:
First Category: includes Saudi employees who satisfy all the
following four conditions:
1. Work in the Generation Business Unit.
2. Work at one of the following stations: Power Pant (9), Power
Plant (10), Rabegh, al-Shuaaibah, Ghazlan, Qaryah,
Shadqam and Faras.
3. Perform engineering or technical or supervisory ( over an
engineering or a technical group) jobs.
4. The last Performance Assessment Rating for each one should
not be less than "Meets All Expectations".
Amount of Allowance for the First Category:
An allowance of (25%) of the basic salary will be paid to those
Saudi employees, whether they reside at the stations or travel
daily between their permanent residence and their work locations
at the stations.
Second Category: includes Saudi and Expatriate employees who
(do not meet requirements of the First Category) and travel daily
between their permanent residence and their work locations at
those stations.
Amount of Allowance for the Second Category:
An additional transport allowance will be paid to each employee,
equal to his eligible monthly transport allowance as per his grade.
Third Category: includes Saudi and Expatriate employees who
(do not meet requirements of the First Category) and stay at the
Company residence at the station.
Amount of Allowance for the Third Category:

An allowance of 10% of the basic salary with a minimum limit of
SR 500 and a maximum limit of SR 1000 will be paid to them
each month.

Work allowance for workers at generation, transmission and
distribution stations will be calculated as per the following
formula:
(monthly work allowance for workers at generation, transmission
and distribution stations) x ( days of the month worked by
employee ÷ days of the month).
4-8-5-3 Examples of Application on How Work Allowance for

Workers at Generation, Transmission and Transformer
Stations is Calculated
Example (1)
An employee at grade (49) works at a generation station (Second
Category) more than (50 km) away from the nearest main city.
He travels daily from his permanent residence to his work place at
the station. He had a vacation of (12) days during April 2008. In
this case he will be entitled to an additional transport allowance
equals to the standard monthly transport allowance, but since he
had a leave of (12) days during April 2008, the number of days
worked by him during the month =
(30) days – (12) days of vacation = (18) days.
Eligible allowance for the month = (monthly work allowance for
workers at generation, transmission and distribution stations) x
days of the month worked by employee ÷ days of the month)
= 600 x (18 ÷ 30) = SR 360
Example (2)
An employee at grade (45) and his basic salary is SR 6150.He
works at a generation station (Third Category) more than (50
km) away from the nearest main city. He lives at the Company
housing in the station. He had a vacation of (23) days during
February 2008. In this case he will be entitled 10% of his basic
salary i.e. (SR615), but since he had a leave of (23) days during
February 2008, the number of days worked by him during the
month = (29) days – (23) days of vacation = (6) days.

Eligible allowance for the month = (monthly work allowance for
workers at generation, transmission and distribution stations) x
= 615 x (6 ÷ 29) = SR127.24
4-8-5-4 Payment of Work Allowance to Workers at Generation,

Transformer and Transformer Stations during Work &
Training Assignments
First: Employees delegated to Work& Training Assignments
for a period less than (30) days:
• If the employee receives the stations allowance ( at his
current work place):
Stations allowance payable to him at his permanent work place
shall continue to be paid to him (regardless of the location of
the work or training assignment).
• If the employee does not receive the stations allowance ( at his
Stations allowance then shall not be paid to him (regardless
of the location of the work or training assignment).
Second: Employees delegated to Work & Training
Assignments for a period of (30) days or more:
• If the employee receives the stations allowance ( at his current
work place):
- Stations allowance payable to him at his permanent
work place shall be suspended.
- Stations allowance due for the employee at his
temporary work or training assignment shall be paid to
him for the whole duration ( as per the approved
eligibility requirements of stations allowance).
• If the employee does not receive the stations allowance ( at his
Stations allowance due for his temporary work or training
assignment shall be paid to him for the whole duration ( as per
the approved eligibility requirements of station allowance).

Payment of work allowance for workers at remote stations
(Generation, Transmission and Transformer) who are provided
with Company means of transport for commuting between their

residence and work place will continue.
4-8-6 Shift Allowance

A) First Category: The Company pays employees working on
changeable shifts (morning, evening, night) a shift allowance
amounting to (10%) of the monthly basic salary subject to
minimum amount of four hundred Saudi Riyal (SR400) per
month.
B) Second Category: The Company pays employees working on
fixed shifts (always evening or night) a shift allowance
amounting to 5% of the monthly basic salary subject to
minimum amount of two hundred Saudi Riyals (SR200) per
month.
C) Third Category: The Company pays employees working on
shifts which start or end two hours or more before or after the
official time a shift allowance amounting to(5%) of the
monthly basic salary subject to minimum amount of two
hundred Saudi Riyal (SR 200) per month.

Shift allowance will be calculated as per the following formula:
(monthly shift allowance) x ( days of the month worked by
employee ÷ days of the month).
4-8-6-3 Examples of Application on How Shift Allowance is Calculated

Example (1)
An employee at grade (44) and his basic salary is (SR5230). He
works at a changeable shift system (morning- evening- night). He
had a vacation of (11) days during May 2008. In this case he will
be entitled to a shift allowance equals to (10%) of the basic salary
i.e. (SR523), but since he had a leave of (11) days during May
2008, the number of days worked by him during the month =
(31) days – (11) days of vacation = (20) days.
Eligible allowance for the month = (monthly shift allowance) x
= 523 x (20 ÷ 31) = SR 337.42
Example (2)
An employee at grade (51) and his basic salary is (SR10820). He
works at a fixed shift system. He had a new born baby leave for (1)
day and a vacation of (9) days during March 2008. In this case he
will be entitled to a shift allowance equals to (5%) of the basic
salary i.e. (SR541), but since he had a new born baby leave for (1)
day and a vacation for (9) days during March 2008, the number of
days worked by him during the month =
(31) days – (1) new born baby leave - (9) days of vacation = (21)
days.
= 541 x (21 ÷ 31) = SR 366.48
Example (3)
An employee at grade (49) and his basic salary is SR (6720). He
works at a shift system that starts (2) hours before the standard
time. He had an examination leave of (7) days during March 2008.
In this case he will be entitled to a shift allowance equals to (5%)
of the basic salary i.e. (SR336), but since he had an examination
leave of (7) days during March 2008, the number of days worked
by him during the month =
(31) days – (7) days of examination leave = (24) days.
= 336 x (24 ÷ 31) = SR 260.13

Suspension of Allowances Payment (at the end of this chapter).
4-8-7 Industrial Security Allowance

Consistent with the directives of the Saudi Ministry of Interior the
Company pays Saudi employees assigned to Industrial Security
Departments an industrial security allowance amounting to (15%)
of monthly basic salary subject to minimum amount of four
hundred Saudi Riyal (SR 400).

Industrial Security Allowance will be calculated as per the
following formula:
(monthly Industrial Security allowance) x ( days of the month
worked by employee ÷ days of the month).
4-8-7-3 Examples of Application on How Industrial Security Allowance
is Calculated
Example (1)
Saudi employee working at the Industrial Security Department at
grade (51) and his basic salary is (SR11300).He had an
unauthorized absence for (4) days during January 2008. In this case
he will be entitled to an Industrial Security Allowance of (15%) of
the basic salary i.e. (SR1695), but since he had an unauthorized
absence for (4) days during January 2008, the number of days
worked by him during the month =
(31) days– (4) days of unauthorized absence = (27) days.
Eligible allowance for the month = (monthly Industrial Security
Allowance) x days of the month worked by employee ÷ days of the
month) = 1695 x (27 ÷ 31) = SR 1476.29

Suspension of Allowances Payment (at the end of this chapter).
Chapter 4 ِ
Attachment no: (1): Continuation or Suspension of Payment of Allowances
Back to Chapter's Main Menu
Additional Additional
Industrial Transport for Shift Remote Transport
Item Housing Transport
Security Two Shifts Allowance Stations for Meter
Employees Readers
1 Regular work days(one shift) Continues Continues Continues N/A N/A Continues Continues
2 Work days on two shifts Continues Continues Continues Continues Continues(*) Continues Continues
3 Work days on shift schedule Continues Continues Continues Continues Continues Continues Continues
Weekly rest days (considered regular work
4 Continues Continues Continues suspended Continues Continues Continues
days)
5 Annual vacation(regardless of how long it is) Continues Continues Continues Suspended Suspended Suspended Suspended
Public holidays in which employee does not
6 Continues Continues Continues Suspended Suspended Continues Continues
work ( Feasts& National day)
Paid leaves (examinations, marriage, baby
7 Continues Continues Continues Suspended Suspended Suspended Suspended
birth, Hajj, kinsman death)
Patient escort leave ( if distance between
employee's treatment place and residence is 50
8 km and less)
1. First thirty days
Continues Continues Continues Suspended Suspended Suspended Suspended
2. Next thirty days
Patient escort leave (if distance between
employee's treatment place and residence is
9 more than 50 km )
1. First thirty days
2. Next thirty days
A. Leave for the practice of sports, cultural
and social activities ( In – Kingdom)
10 B. Leave for the practice of sports, cultural
and social activities ( Out - of – Continues Continues Continues Suspended Suspended Suspended Suspended
Kingdom)
Note:
(*) Shift allowance shall not be paid for employees whose employment contracts state that their daily duties will be performed on two shifts (such as doctors at
Company clinics).
Chapter 4 ِ
Industrial Transport for Remote Transport
Security two Shift
Shift
Stations for Meter
Employees Readers
A. Sick leave ( fully paid):
1. Employees whose services are less than
(5) years, ( first 30 days)
2. Employees whose services are (5) years Continues Continues Continues Suspended Suspended Suspended Suspended
and less than (10) years, ( first 45 days)
3. Employees whose services are(10) years
and more, (first 60 days)
11 B. Sick leave (75% pay):
1. Employees whose services are less than
(5) years, (next 60 days)
2. Employees whose services are (5) years Continues Continues Continues Suspended Suspended Suspended Suspended
and less than (10) years, (next 90 days)
3. Employees whose services are (10)
years and more, (next 120 days)
C. Sick leave( because of work injury) Continues Continues Continues Suspended Suspended Suspended Suspended
A. In- Kingdom work and training
Continues Continues Continues Suspended Suspended Continues Continues
assignments for (5) days or less
B. In- Kingdom work and training
assignments for (6) days up to (6) Continues Continues Continues Suspended Suspended Suspended Suspended
months
C. In- Kingdom work and training
12 assignments for more than (6) months:
1. In- Kingdom work and training
assignments for more than (6) months, Continues
directly related to Industrial Security
Continues Continues Suspended Suspended Suspended Suspended
2. In- Kingdom work and training
assignments for more than (6) months, not Suspended
Chapter 4 ِ
Industrial Transport for Remote Transport
Security two Shift
Shift
Stations for Meter
Employees Readers
A. Out – of- Kingdom work and training
assignments for two months and less
B. Out – of - Kingdom work and training
assignments for more than two months:
1. Out – of - Kingdom work and training
13
assignments for more than (2) months, Continues
Continues Continues Suspended Suspended Suspended Suspended
2. Out – of - Kingdom work and training
assignments for more than (2) months, not Suspended
Leave without pay (upon request of
employee or to settle period of absence
from work):
A. Leave without pay( for the first (30) days
during any Gregorian year(365) days Continues Continues Continues Suspended Suspended Suspended Suspended
from date of the first unpaid leave)
14 B. Leave without pay(for more than the
first (30) days during any Gregorian
Suspended Suspended Suspended Suspended Suspended Suspended Suspended
year(365) days from date of the first
unpaid leave)
C. Leave without pay given to the sick
employee after using the balance of his Continues Continues Continues Suspended Suspended Suspended Suspended
annual and sick leaves.
Unauthorized absence from work ( for any
15 Suspended Suspended Suspended Suspended Suspended Suspended Suspended
period)
Allowance for using personal mobile A. Payment continues when employee (actually) works for at least one day in the Gregorian month.
16 telephone in performing Company business B. Payment is suspended when employee is absent or on leave (of any type) for the whole Gregorian
month.
Chapter 4
Attachment (2): List of Power Stations (Generation, Transmission and Transformer)
located (50 km) or more form the main cities:
Station Operating Area
Power Plant (9) Central
Power Plant (10) Central
Al-Jubah Central
Rabigh Western
Al- Shuaaibah Western
Yanbuaa Western
Dhiba Western
Taima Western
Amluj Western
Al-Wajh Western
Yabreen Eastern
Salwa Eastern
Ibin Tiwalah Eastern
Al- Ewaiqliah Eastern
Al- Raqaai Eastern
Rawdhit Bin Habas Eastern
Ghazlan Eastern
Al-Qariah Eastern
Al-Safaniah Eastern
Al- Juaaimah Eastern

Chapter 4
Attachment (2): List of Power Stations (Generation, Transmission and Transformer)
located (50 km) or more form the main cities:
Station Operating Area
Al-Othmaniah Eastern
Shadqam Eastern
Faras Eastern
Araairah Eastern
Fursan Southern
Sultanah & Khaldiah Southern
Al- Kharkhir Southern
Beesh Southern
Samtah Southern
Sharourah Southern
Chapter 5: Benefits
Table of Contents
Paragraph Subject
5-2 Responsibility
5-2-1 Human Resources
5-3 Health Services Plan
5-3-1 Eligibility
5-3-2 Eligibility to Medical Care
5-3-3 Level of Hospitalization in Contracted Hospitals
5-3-4 Medical Referral ( When Treatment Not Available)
5-3-5 Compensation of Medical Costs
Allowances in Case of IN- Kingdom Referral for a Distance
5-3-6 of (201 Km) and More and Out –of – Kingdom Without any
Distance Limitation
5-3-7 Patient Escort
5-3-8 Medical Care Exclusions
5-3-9 Cases of Parts/ Bone Marrow Transplant
5-3-10 Company's Right to Provide Some of the Excluded Services
5-3-11 Updating List of Exclusions
5-3-12 Employee's Responsibility for Heath Care
Medical Care Eligibility for Dependents of Expatriate
5-3-13
Employee Below Grade (47)
5-4 Saving and Thrift Plan
5-5 Gifts, Certificates and Parties of Continuous Service
5-5-1 Eligibility
5-5-2 Certificates and Parties
5-5-3 Gifts
5-5-4 Signature Authority for the Continuous Service Certificates
Gifts, Certificates and Parties of (Early &Normal)
5-6
Retirement
5-6-1 Eligibility
5-6-2 Gifts
Chapter 5: Benefits
Paragraph Subject
Signature Authority for End of Service Certificates (Early
5-6-3
& Normal Retirement)
Rewarding Competent Employees When Customers
5-7
Violations are Detected
5-8 End of Service Award
5-9 Occupational Disablement Benefits
5-10 Amount Payable to Employee's Widow
5-10-1 Eligibility
5-10-2 Amount
5-10-3 Controls for Payment of Employee's Widow's Amount
Amount Payable to Employee in Case of Total
5-11
Disablement
5-11-1 Eligibility
5-11-2 Amount
Chapter 5: Benefits

It is the Company policy to provide employees a range of benefits to
enable them meet their basic needs, satisfy legal requirements, and
maintain the Company’s competitive position, taking into account
prevailing practices in the work market in the Kingdom.
5-2 Responsibility
A. Prepare and review employees' benefits policies.
B. Implement benefits policies.
C. Circulate all benefits policies to Company's departments and
respond to any inquiry thereto.
Direct supervisory staff should understand the provisions and
applications of these plans and be in a position to explain them to
their employees, as required.
5-3 Health Services

5-3-1 Eligibility
It is the Company policy to provide competent medical care to its
employees and eligible dependents, which includes outpatient clinics
service, hospitalization (diagnostic services, treatment, medicines,
delivery and surgical operations), except what is excluded by the
Company's Health Care Policy.
Chapter 5: Benefits
5-3-2 Eligibility to Medical Care

Sons Daughters
Item Employee Wife/wives (Gregorian (Gregorian Parents
year) year)
o/p clinics
Saudi employee covered covered 18 *** marriage*
**
Expatriate employee covered covered 18 18 not covered
(non-
Trainee–non employee o/p clinics
employee)
Early retired Saudi
employee through the
o/p
company until he covered covered 18*** marriage*
clinics**
reaches age of normal
retirement
Early retired Saudi
employee through the
Company, when he
o/p
reaches normal age of o/p clinics** not covered not covered not covered
clinics**
retirement (for five
Gregorian years)
****
Saudi employee
o/p clinics o/p clinics
normally retired, (for not covered
** ** not covered not covered
five Gregorian
years****)
Saudi employee
terminated because of
occupational o/p clinics
covered covered 18 marriage*
disablement, (for one **
Gregorian year from
date of termination).
Dependents of decedent
o/p clinics
Saudi employee,( for
N/A covered 18 Marriage* **
one Gregorian year from
date of death)
Chapter 5: Benefits
Notes
The employee needs to provide evidence that his daughter is not married and to sign
an acknowledgment at the HR Services Department or before the site Department
Manager, when his daughter exceeds (19) years old. (The father's family ID issued by
the Civil Affairs Dept. is the approved official document that proves that the girl is in
*
the father's or the husband's custody and according to which Company's medical care
will be provided to her if she is registered in the family ID of the father who is still in
Company employment).As for mentally and physically disabled daughters there is no
age limit.
Outpatient clinics include the Company's medical centers and the contracted
hospitals and dispensaries. Such service covers:
(consultation, treatment, medicine, analyses, and x - ray with a maximum cost of three
**
hundred fifty Saudi Riyals (SR 350) for each check up or the analysis or an x - ray,
but it excludes hospitalization, surgeries and the one day operations), provided that
treatment is furnished by one treating party.
This age is extended to twenty four (24) years if the children are enrolled in regular
***
study courses. As for mentally and physically disabled there is no age limit.
This item covers cases of retirement in the Company since establishment on 5/4/2000.
**** Health service (at outpatient clinics) shall continue for five (5) years, provided that
such rule is applied from 1/5/2005.
5-3-2-1 Treatment of the Saudi Employee's Daughter who Becomes Widow

In case daughter of the Saudi employee becomes widow and she is not
covered by any medial care from a (private company or organization)
through:
1. Her employment ( if she works).
2. Her deceased husband employment.
3. Employment of any of her sons.
She will be added to the eligible dependents of her father, but her sons
and daughters will not be added.
5-3-2-2 Treatment of the Saudi Employee's Daughter who is Divorced

In case daughter of the Saudi employee is divorced and she is not covered
by any medial care from a (private company or organization) through:
1. Her employment ( if she works).
2. Employment of any of her sons.
She will be added to the eligible dependents of her father, but her sons
and daughters will not be added.
Chapter 5: Benefits
In both of the above cases (5-3-2-1,5-3-2-2) employee will be required to

provide each year a proof that the widow or divorced daughter is not
married yet as per the family record of the deceased husband or
employee's family record for the divorced daughter.
5-3-3 Level of Hospitalization in Contracted Hospitals

Employee's Level of Hospitalization in Contracted Hospitals
Grade Employee Wife Children
53 and above Single room Single room Single room
Remaining
Shared room Shared room Shared room
grades
Note: Single room with a maximum cost of (SR600) per night.
5-3-4 Medical Referral (when Treatment not Available)

A) In – Kingdom Medical Referral
1. If the medical treatment is not available at the medical
facility where the employee and his eligible dependents are
registered, concerned cases shall be referred to the nearest
medical facility where the required treatment is available, in
accordance with appropriate procedures at Health Services.
2. If the medical facility to which the employee or any of his

eligible dependents referred is (201 km) away from the one
where they are originally registered, he shall be entitled to
respective daily allowances, if such referral is approved by
the Company's Health Services.
3. If the employee wishes to have a medical service for himself
or any of his eligible dependents outside the medical facility
where they are registered, the Company shall refer him to its
contracted facility, provided the Company shall not bear the
appropriate heath service (allowances). Off time shall be
treated as follows:
• If the (employee) is the patient, he shall have a sick
leave.
• If the patient is one of his eligible dependents, he shall
not have a patient escort leave.
Chapter 5: Benefits
B) Out-of-Kingdom Referrals
3. If the employee or any of his eligible dependents have a
case that can not be treated in the Kingdom by virtue of a
medical report, it shall be referred to a medical facility
outside the Kingdom, and treatment follow – up shall be
made in the Kingdom.
4. If medical treatment abroad is cheaper, appropriate referral
shall be made for treatment outside. (Example: treatment in
Jordan for residents in the Northern Region).
5. Employee shall be entitled to (allowances) related to
referral outside the Kingdom. Expatriate employee is
excluded if treatment is made at his country of origin and
therefore he shall be granted neither the daily allowance nor
the housing allowance.
C) Authority for Treatment Referral Outside the Kingdom
1. Referral for treatment at Bahrain/ Jordan will be within the
authority of ED, HR Services Sector.
2. Referral for treatment at other countries will be within the
authority of SVP, Human Resources.
5-3-5 Compensation of Medical Costs

5-3-5-1 Categories Eligible for Compensation
A) Employees and their eligible dependents covered by
medical care as per the Health Care Chart.
B) Early retired employees and their eligible dependents
covered by the medical care as per the HealthCare Chart.
5-3-5-2 Compensation of Medical Costs in Emergency Cases

1. In - Kingdom
A) Employee and his eligible dependents covered by the
medical service shall be entitled to have the necessary
medical care in case of emergency at Company clinics
or contracted hospitals and dispensaries at all regions
of the Kingdom.
B) If the employee or any of his eligible dependents visits
any of the non- contracted hospitals or dispensaries he
shall be compensated (75%) of the total actual cost of
treatment or the cost of the surgery/ action at contracted
hospitals, with a maximum limit of one hundred Saudi
Chapter 5: Benefits
Riyals (SR100) for medical consultations, whichever is

less.
2. Out- of- Kingdom
A) During annual leave or any authorized absence, the
employee shall be compensated (75%) of the total
actual cost of the treatment, compared with cost of the
same surgery / action at the contracted hospital where
the employee has his file, whichever is less.
B) During business / training assignments the employee
shall be compensated (100%) of the treatment actual
reasonable cost.
C) Early retired employees and their eligible dependents
covered by medical care shall be compensated (75%)
of the total actual cost of the treatment, compared with
cost of the same surgery / action at the contracted
hospital where the employee has his file, whichever is
less.
5-3-5-3 Compensation of Costs of Delivery
1. In – Kingdom
A) Delivery costs cover mother and the baby and in case
of any complications to any of them, employee should
advise Health Services within (48) hours. Such
complications shall be treated as emergencies.
B) Normal delivery In-Kingdom, as per the actual cost
with a maximum limit of three thousands Saudi Riyals
(SR3000).
C) Caesarean In-Kingdom delivery, as per actual cost
with a maximum limit of six thousands Saudi Riyals
(SR 6000).
2. Out- of- Kingdom (During Annual Vacation)
A) Delivery costs cover mother and the baby, and in case
of any complications to any of them, the Company
shall not incur any additional expenses.
B) Normal delivery Out-of-Kingdom, as per the actual
cost with a maximum limit of one thousand and five
hundred Saudi Riyals (SR1500).
C) Caesarean delivery Out-of-Kingdom, as per actual
cost with a maximum limit of three thousands Saudi
Riyals (SR 3000).
Chapter 5: Benefits
5-3-6 Allowances in case of In–Kingdom Referral for a Distance of

(201) km and more and Out–of–Kingdom without any Distance
Limitation.
5-3-6-1 Transport
A) When Airport is Available Nearby the Medical Facility
1. The Company shall provide excursion air tickets to the
patient and his escort.
2. If the employee is the patient and no escort is
approved for him and he chooses to travel by land, he
shall be compensated for the excursion air ticket to
destination.
3. If more than one person travel together, (patient and
one or two approved escorts) and they choose to travel
by land, the employee shall be compensated fifty (50
halalas) for each km he crosses. (This allowance
covers both the employee and the escorts).
B) When Airport is not Available Nearby the Medical
Facility
1. Employee shall be compensated fifty (50) halalas for
each km he crosses to destination. (This allowance
covers employee and escorts).
2. Air travel category higher than excursion will be
provided to the patient whose case necessitates that,
when recommended by a medical report approved by
the Company.
5-3-6-2 Residence
Company shall either provide accommodation or pay its actual
cost at a maximum rate of two hundred Saudi Riyals (SR200)
each night, for the employee and escort.
Item Visit Hospitalization
Daily
Employee/ escort Employee Escort – abroad
allowance
Living & (SR 100) only for
(SR150) (SR100)
1 transport admission &
daily daily
( in kingdom) discharge days
(SR100) (SR50)
2 transport(Arab & admission &
daily daily
Asian countries) discharge days
(SR150) (SR100)
3 transport( other admission &
daily daily
countries) discharge days
Chapter 5: Benefits
5-3-7 Patient Escort

When the patient is one of the employee's family members, he shall
be allowed to escort him, and if he is seven (7) years old or less both
parents may escort the patient. In case the patient is the employee
himself, he shall travel alone unless his medical condition requires
availability of an escort.
5-3-8 Medical Care Exclusions

1. Dental care, this includes dental implantation, crown, bridges,
full and partial denture, scaling and polishing,
2. Rehabilitation: problems that need long term nursing and
rehabilitation services such as cases of accidents, moral
misconduct and training of mentally retarded, communication
problems, and any type of rehabilitation and aiding apparatus.
3. Ophthalmology: eyesight correction by laser, lazic or other
operations, contact lenses, medical and sun glasses, cross-eye
surgery after ten (10) years of age.
4. Hearing aids: hearing related apparatus.
5. Compensational tools: apparatus and industrial requirements
such as medical shoes, medical wheel chairs, oxygen cylinders
and evaporators etc…
6. Plastic surgery: optional operations unless required by a medical
need.
7. Addiction: treatment of psychiatric and neurological cases related
to drug abuse (addiction) (including smoking).
8. Dermatology: baldness and hair loss due to non-medical causes,
hair transplant, all non-medical shampoos, hair and skin care
compounds, and allergy test and vaccine.
9. Infertility: treatment of infertility (primary or secondary), birth
control measures unless it is medically necessary, artificial
insemination, impotence, every implements and operations that
help getting pregnant, and impotence treatment.
10. Physiotherapy after delivery, weight control (gain or loss of
weight), traditional treatment, acupuncture, hypnosis.
11. Any experimental or un-authorized treatment or not licensed
by Ministry of Health in the Kingdom of Saudi Arabia.
12. Medicines that are not priced by Ministry of Health in the
Kingdom of Saudi Arabia / Medical requirements except Insulin
needles, compress bondages, knuckle supports in all sizes, and
Chapter 5: Benefits
walking sticks (which should be leased and returned after

recovery).
13. Patient escort in contracted hospitals for patients who are older
than ten (10) years old.
14. Consultation with visiting consultants in contracted hospitals,
on request of employee.
15. Cost incurred as a result of over-staying in the Hospital after
attending physician has signed the discharge order.
16. Any check up, examination or treatment made upon the
employee's own request.
17. Work injures related to General Organization for Social
Insurance (GOSI).
18. Cases of parts or bone marrow transplant.
5-3-9 Cases of Parts/Bone Marrow Transplant

In case the employee/ any of his covered family members is
involved in part's or bone marrow transplant, he shall be entitled (as
per regulations) to a sick / escort leave, provided it is approved by
Health Services.
5-3-10 Company's Right to Provide Some of the Excluded Services

The Company reserves the right to provide whenever necessary some
excluded services based on the actual costs to be incurred by
employee.
5-3-11 Updating List of Exclusions

This list of exclusions shall be updated and approved by the HR
Commission.
5-3-12 Employee's Responsibility for Heath Care

Every employee is responsible for:
A) Reporting any medical case to the Company’s clinic or to its
designated medical facility.
B) Undergoing any required medical examination.
C) Abiding by the medical advice of the attending physician.
D) Following the established procedural rules for medical treatment.
E) Optimum utilization of medical services Company provides.
Chapter 5: Benefits
5-3-13 Medical Care Eligibility for Dependents of Expatriate Employee

Below Grade (47)
5-3-13-1 In case expatriate employee's family members (below grade
47) are brought to the Kingdom at the expense of the previous
companies (before 1/1/2003) and the employee used to get
medical care for his family members, the Company shall
continue to provide such medical care for his eligible
dependents as per the appropriate regulations until the end of
his services in the Company.
5-3-13-2 If the employee obtains an agreement to bring his family
members to the Kingdom at his own expense after he
undertakes that he will not ask for medical care for his
dependents and he is still below grade (47), the Company in
this case shall not provide medical care to his family
members.
5-3-13-3 If the employee referred to in item no. (5-3-13-2) above is
promoted to grade (47) and he asks for medical care to his
family members, he should apply for modification of his
status so that his family members become eligible for medical
care as per the appropriate regulations.
5-3-13-4 If the employee's family members (wife and children) are at
the sponsorship of a different party for whom the wife works,
they will not be eligible for the medical care service which the
Company provides to its employees.
5-4 Saving and Thrift Plan

The Company's Board of Directors approved the Saving & Thrift Plan
for the Saudi employees. The Company shall allocate a contribution
against the amounts contributed monthly by each participating
employee, so as to motivate its employees continue in service and
encourage them to save. Approved policy states the basic rules:
1. Implementation of the policy will be restricted to Saudi employees
only.
2. Employee's contribution will range between (1% -10%) of the basic
salary.
3. Company undertakes to invest participants' savings as per the
principles and rules of Islamic investment in Islamic funds and
portfolios of low risks.
Chapter 5: Benefits
4. Company will allocate an amount equals to (100%) of the

participant's monthly contributions of his account. Participant's
eligibility to Company contributions will be calculated when the
participation ends as follows:
A. Calculation of Company contributions:
Years of continuous contribution Eligible percentage of Company
accumulated contribution based on
years of continuous contributions
Upon completion of the 1st year 10%
nd
Upon completion of the 2 year 20%
Upon completion of the 3rd 30%
th
th
tht
th
th
Upon completion of the 9th year 90%
th
Upon completion of the 10 100%
Year or more
B. Approved Saving & Thrift Policy regulates all rules and
procedures of this policy and it is considered the official
document referred to in respect to all aspects of this policy.
See Saving & Thrift Plan and the attached regulations and instructions
(Attachment no:1).
5-5 Gifts, Certificates and Parties of Continuous Service

5-5-1 Eligibility
The Company recognizes the services of its employees upon
completion of each five (5) years of continuous service by issuing
them the appropriate service certificates.
5-5-2 Certificates and Parties

1. Employees who have completed five (5) years of continuous
service shall be presented the certificates by their work sites
supervisors.
2. Employees who have completed ten to fifteen (10-15) years of
continuous service shall be presented the certificates by their
departments in a cake and tea party.
Chapter 5: Benefits
3. Employees who have completed (20, 25, 30, 35, 40) years of
continuous service shall be presented the certificates and gifts in
a dinner or lunch party.
5-5-3 Gifts
Gift value shall be added to monthly salary when employee
completes years of service prescribed in the policy as follows:
Years of service 10 15 20 25 30 35 40
Gift value for Dep.
Managers & above in 1000 1500 2000 3000 4000 5000 6000
Riyal
Gift value for the rest
500 750 1000 1500 2000 2500 3000
of employees in Riyal
*Employees on grade (55) and above shall be treated as Department
Managers with regard to value of Continuous Service Gift.
Employees who have completed ( 25,30,35,40) years of continuous

service with the Company shall be granted a paid leave as (per
paragraph no: (6-12) of Chapter 6)
5-5-4 Signature Authority for the Continuous Service Certificates

Years of Experience Signature Authority
5 or 10 years Employee's Department Manager
15, 20 or 25 years Employee's Sector ED
30, 35 or 40 years EVP/SVP Business Unit
5-6 Gifts, Certificates &Parties of Early and Normal

Retirement
5-6-1 Eligibility
The Company recognizes the services of its employees’ who are
taking (early or normal) retirement by issuing them appropriate
recognition certificates in a Lunch or Dinner party to be held in
their honor.
5-6-2 Gifts
Gift value shall be added to end- of - service dues according to
years of service as follows:
Chapter 5: Benefits
Years of Service Maximum Value of Gift

10 or less SR 2000
More than 10 to 20 SR 3000
More than 20 to 30 SR 4000
More than 30 SR 5000
5-6-3 Signature Authority for (Early and Normal) Retirement

Certificates
Years of Experience Signature Authority
10 yeas or less Employee's Department Manager
More than 10 years & up to 30 Employee's Sector ED
More than 30 years Employee's EVP/SVP Business Unit
5-7 Rewarding Competent Employees When Customers

Violations are Detected
Competent employees related to customers' meter reading, testing and
maintenance are eligible to an award as follows when customer violations
are detected by them:
(A) An award equals to (50%) of the violation's fine amount collected
from the concerned customer shall be paid to him. Such violation
should be included within the Company's accredited list of
violations as per the approved policy.
(B) Such award shall be distributed as follows:
− (50%) of the award amount will be paid to the employee who
has reported the violation.
− (25%) of the award amount will be paid to the employee who
has confirmed the violation.
− (25%) of the award amount will be paid to the competent
administrator who has contacted the customer and collected the
fine from him.
− The said award will be paid after collecting the fine from the
customer and entering it in Company records.
− Such award(s) will be distributed equally among employees
when the violation is detected by more then one employee or
more than one employee is asked to confirm the violation or
more than one employee is asked to contact the customer and to
collect the appropriate fine from him.
Chapter 5: Benefits
− Payment of the award will be made in accordance with the

approved procedures and documents for violations detection.

Employee whose services are terminated from the Company will be
eligible for a Service Termination Award in accordance with articles
no.(84, 85 & 87)of the Saudi Labor Law, taking into account exceptions
stated in articles no.(80 & 81) of the same law. For more details on
Service Termination Award, see Chapter (11) in this manual.
5-9 Disability Benefits

An employee who is inflicted with an occupational disablement (partial
or total) will be compensated in accordance with GOSI regulations.
5-10 Amount Payable to Employee's Widow

5-10-1 Eligibility
Wife(s) of the employee, who dies while in Company service,
deserves a lump sum amount to be paid by the Company.
5-10-2 Amount
A lump sum amount equal to five months basic salaries with a
minimum limit of thirty thousands Saudi Riyals (SR30,000), and in
case employee left no wife(s) the amount will be paid to the
(dependents) of the decedent employee.
5-10-3 Controls for Payment of Employee's Widow(s) Amount

(A) When the Company knows about the death of the employee,
its representative shall visit his family to extend condolences
and to give them a check in the amount assigned to decedent
employee's family by the Company, if they are available in the
Kingdom. However, if they live abroad, Company
representative shall call them to extend condolences and to see
how the said check can be sent to them.
(B) The Company shall use its official records to substantiate the
decedent employee's wife/ wives, unless proved otherwise.
Chapter 5: Benefits
(C) The whole amount shall be paid to the decedent employee's

wife, but if he has left more than one it will be divided
between them equally.
(D) If the Company finds out that the decedent employee has left
no wife/ wives alive, the said amount shall be paid to his
children (sons & daughters) through the legal custodian as per
following controls:
1. Amount shall be paid to children (sons and daughters)
who are less than (18 H) years.
2. Amount shall be distributed equally between the children
(sons and daughters).
(E) If the decedent employee has left neither wife nor any children
(who are less than 18 H years), amount shall not be paid.
5-11 Amount to be paid to Employee in Case of Total Disablement

5-11-1 Eligibility
Employee whose services are terminated from the Company
because of total disablement will be eligible for a lump sum amount
to be paid by the Company.
5-11-2 Amount
A lump sum amount equal to five months basic salaries, with a
minimum limit of thirty thousands Saudi Riyals (SR30,000) will be
paid.
Chapter 6: Vacations
Table of Contents
Paragraph Subject
6-2 Annual Vacation
6-2-1 Eligibility
6-2-2 Advance Leave Balance
6-2-3 Scheduling of Annual Leave
6-2-4 Sickness during Vacation
6-2-5 Sickness Before Vacation
6-2-6 Public Holiday during Vacations
6-2-7 Splitting, Connecting and Disconnecting
6-2-8 Financial Compensation for Vacation
6-2-9 Imprisonment Period As Part of Vacation
6-2-10 Extension of Annual Vacation
6-2-11 Late Return from Vacation with Notification
6-2-12 Delay in Return from Vacation with Notification
6-2-13 Late Return from Vacation without Notification
6-2-14 Deferral of Annual Vacation
6-2-15 Termination of Service during or Immediately After Vacation
6-2-16 Work during Annual Vacation is Prohibited
6-2-17 Overlapping of All Types of Leaves with Annual Leave
6-2-18 Air Tickets, Visas and Advance Leave Pay
6-3 Holidays of Eids & Public Occasions
Treatment of Holidays of Eids & Public Occasions during
6-3-1
Work& Training Assignments
6-4 Marriage Leave
6-5 Birth of Child Leave
6-6 Hajj Leave
6-7 School/ College Examination Leave
Controls for Granting Employees in- Kingdom Governmental
6-7-1
Schools/ Colleges Examinations Leave
Controls for Granting Employees in- Kingdom Private
6-7-2
Schools/ Colleges Examinations Leave
6-7-3 Clarifications on Examinations Leave
6-8 Sick Leave
Paragraph Subject
6-9 Patient Escort Leave
6-10 Sports& Cultural Activities Leave
6-10-1 Participation in Sports Activities
6-10-2 Participation in Cultural and Social Activities
Leave for Participation in Improvement (Tahseen)
6-11
Program
Leave for Employees who Completed (25,30,35,40)
6-12
Years of Continuous Service
6-13 Detention of Employee by Authorities
6-13-1 For Reasons Related to Company Business
6-13-2 For Reasons Not Related to Company Business
6-14 Death of Immediate Family Member
6-15 Leave without Pay
6-15-1 Duration of Leave Without Pay
6-15-2 Conditions for Leave Without Pay
6-15-3 Approval Authorities for Leave Without Payِ
6-16 Delivery Leave

It is the policy of the Company to grant eligible employees a number of
vacations: annual vacation or leaves with pay (such as Eids, examinations
and sick leaves and others) or leave without pay. The policy is designed
to provide the employee with the opportunity for mental and physical
relaxation away from his work environment, so that he may return to his
job refreshed and with renewed energy to carry out his work duties. It
also aims at giving the employee the chance to fulfill some of his
personal obligations.
6-2 Annual Leave

6-2-1 Eligibility
A) All employees will be eligible for an annual leave, the duration
of which depends on their grades as follows:
1. Employees in grades 40- 50 will be given (2,75 days for each
Gregorian month of service).
2. Employees in grades 51- 61 will be given (3 days for each
Gregorian month of service).
B) Monthly eligibility of annual leave for the paid days is calculated
as follows:
Paid days during the month X Daily eligibility of annual leave
for that month, as per the following table:
Daily Eligibility of Annual Daily Eligibility of Annual
Days of the
Month Leave ( for Paid Days) to Leave ( for Paid Days) to
Month
Employees in Grades: 40-50 Employees in Grades: 51-61
January (1) 31 0.08871 0.09678
28 0.09822 0.10715
February (2)
29 0.09483 0.10345
March (3) 31 0.08871 0.09678
April(4) 30 0.09167 0.10000
May(5) 31 0.08871 0.09678
June (6) 30 0.09167 0.10000
July (7) 31 0.08871 0.09678
August (8) 31 0.08871 0.09678
September (9) 30 0.09167 0.10000
October (10) 31 0.08871 0.09678
November
31 0.09167 0.10000
(11)
0.09678
December (12) 31 0.08871
6-2-2 Advance Leave Balance

At the start of January each Gregorian year all annual vacations
entitlements for all employees working for the Company under work
contracts of unspecified period and placed on the payroll by the end
of December of the last year shall be recorded in advance, as follows:
A) Thirty three (33) days for each Gregorian year (for employees in
grades 40 – 50).
B) Thirty six (36) days for each Gregorian year (for employees in
grades 51- 61).
6-2-3 Scheduling of Annual Leave

A) New employee will be entitled to take the first annual leave after
the completion of twelve (12) months in service. However,
employee may, with the approval of Department Manager, and
for satisfying the Company's operational needs, take his first
vacation after the completion of nine (9) months in service.
When employee has emergency circumstances or a bad need to
take a short annual leave before he completes (9) months in
service, she should then apply for (a short leave) as per the
following conditions:
• Employee should have completed the probationary period
(the first ninety days of service).
• Short leave duration shall be restricted to eligible earned
days and shall not include (the advance vacation days),
provided that the allowed short leave shall not exceed (13)
days.
• No advance salary shall be paid for the requested leave.
• No air tickets shall be issued to the expatriate employee.
• Application shall be recommended by employee's direct
supervisor and approved by the Department Manager and
higher.
B) Second annual leave and the next ones may be taken as long as
the eligible leave balance is recorded for the employee and the
Company's business allows it.
6-2-4 Sickness During Vacation

If the employee falls sick during his annual leave, the leave shall be
extended by the number of his sick leave days, as per the following
conditions:
A) Sick leave report should be issued be the Company clinic or by
any other hospital or dispensary contracted with the Company or
any state hospital or dispensary.
B) Such sick leave should be promptly reported by the employee to

his department.
C) Such sick leave should be approved by the competent medical
party in the Company.
6-2-5 Sickness Before Vacation

The employee shall have the right to postpone his annual leave
approved earlier if he is given a sick leave before he starts his annual
leave.
6-2-6 Public Holidays During Vacation

Public holidays include Eid al-Fitter, Eid al-Adha and the Kingdom
national day. If any public holiday falls during the annual vacation,
such public holiday shall not be counted part of the annual leave
balance of the employee.
6-2-7 Splitting, Connecting and Disconnecting of Vacation
A) Annual leave may be split into more than one part.
B) The employee may connect his annual leave to all other leaves.
C) Company may discontinue the employee's annual leave by an
authority higher than the one which gives the leave if work
interest so requires.
6-2-8 Financial Compensation for Vacation

It is absolutely forbidden to compensate the employee financially for
his annual leaves while he is in service. He should exhaust them all
before retirement.
6-2-9 Imprisonment Period as Part of Vacation

Periods of imprisonment which does not lead to service termination
may be computed part of the annual leave if the employee concerned
so desires.
6-2-10 Extension of Annual Vacation

The employee may request to extend his vacation based on his
vacation credits or without pay in case his balance is exhausted. The
Company, at its sole discretion, will consider such a request based on
operational requirements and justifications presented in support of
the request. If the Company grants the request, the extension
becomes effective only after the employee receives the Company’s
preliminary approval. The type of extension will be decided in light
of the justification presented.
6-2-11 Late Return from Vacation with Notification

The employee must make every effort to notify his department of the
reasons for any delay and the anticipated date of return from
vacation. The department will immediately inform the regional HR
Services Department.
Unforeseen circumstances, such as (serious illness or death of a
family member, an airline unforeseen delay, etc.) would be
considered by the Company to justify late return and extension of
vacation, provided the employee promptly notifies the Company at
the time of such occurrence and subsequently produces documentary
evidence acceptable to the Company justifying such late return.
6-2-12 Delay in Return from Vacation without Notification

When the employee is late in his return from vacation and the
Company is not notified of the reason for such delay, the following
procedures shall be taken:
A) A notice shall be sent to the employee after the elapse of five (5)
days from date of his anticipated return asking him to report to
work within ten (10) days.
B) If the employee does not report to work on the eleventh (11th)
day from date of the notice sent to him his name shall be dropped
from the payroll.
6-2-13 Late Return from Vacation without Notification

If, after a late return, the employee has not notified the Company, and
the reason for the delay is considered to be justifiable by the
Company, the days of absence will be treated as unauthorized leave
without pay, and the employee may be subject to appropriate
disciplinary actions in accordance with the Company’s corrective
guidance policy.
But if the justifications given by the employee for his late return from
vacation were not acceptable to the Company, the Company shall
have the option to apply the actions stated in its Rewards and
Penalties Chart which may reach terminating his services.
6-2-14 Deferral of Annual Vacation

Vacations may be taken towards the end or during the year in which
they are earned. However, if, due to operational requirements or for
personal reasons, an employee is unable to take all or part of his
vacation entitlement during the current year, the number of days not
taken may be deferred to the following year, provided all deferred
balance is taken in that year.
6-2-15 Termination of Service During or Immediately After Vacation

An employee's service may not be terminated by the Company during
his vacation. Similarly, an employee may not leave the Company’s
service during or immediately following his vacation without the
required contractual written notice after his return from vacation (as
per Chapter (11) of this Manual).
6-2-16 Work during Annual Vacation is Prohibited

An employee is not allowed to work, with or without pay, during his
annual vacation. If an employee does not comply with this provision,
the Company will have the right to deduct his vacation pay for the
period he worked for a third party and he will be subject to corrective
guidance action, (if such behavior is proved to the Company).
6-2-17 Overlapping of All Types of Leaves with the Annual Leave

Leaves overlapping with the annual leave will be treated as
follows:
Type of Leave
Overlapping with Action
the Annual leave
Eids and occasions If the Eids and occasions leaves fall within the annual leave, such
Leave leaves shall not be considered part of the annual leave balance ( as per
the approved policy, paragraph no: 6-2-6 of the Human Resources
Manual). Overlapping days shall be recorded as days of Eids and
Occasions leave.
Birth of New Baby If the new born baby leave falls within the annual leave, such leave
Leave shall not be considered part of the annual leave balance. Overlapping
day shall be recorded as leave of New Born Baby.
Examinations Leave
Marriage Leave If any of the following leaves: Examinations, Marriage, Hajj,
Sports, Patient Escort falls within the annual leave, such leaves shall
Hajj Leave
not be considered part of the annual leave balance. Overlapping days
Sports Practices shall be recorded as leaves of Examinations, Marriage, Hajj, Sports
Leave and Patient Escort.
Patient Escort Leave
Unpaid Leave Unpaid leave shall not overlap with the annual leave. Employee
should first use all his balance of annual leave before starting the
unpaid leave ( as per the approved policy, paragraph no: 6-15-5 of the
Human Resources Manual).
Sick Leave Annual leave shall be extended by the actual number of sick leave
days ( as per the approved policy, paragraph no: 6-2-4 of the Human
Resources Manual).
Death of Kinsmen If leave of the death of a kinsman falls within the annual leave, such
Leave leave shall not be considered part of the annual leave balance.
Overlapping days shall be recorded as days of Kinsman Death Leave.
6-2-18 Air tickets, Visas and Advance Leave Pay

A. The Company shall provide the expatriate employee (including
the guardian employees" Muhrams") with air ticket(s) and Exit
Re- entry visas (as per regulations) when he takes an annual
leave of fourteen (14) days or more.
(See Chapter (9) of this Manual for details on Reimbursement of
Expenses).
B. When an employee takes an annual vacation of fourteen (14)
days duration or more he shall be entitled to have the salary of
that vacation in advance if he requests.
6-3 Holidays of Eids and Public Occasions

Employee will have a holiday with full pay in the following Eids and
occasions:
A) Eid Al Fitr
Five (5) days which shall include the day following the twenty ninth
(29) day of Ramadan according to calendar of Umm-Al-Qura.
B) Eid Al Adha
Six (6) days which shall include the day of Waqfa on Arafat.
C) National Day
One (1) day for Saudi National day.
The Company will normally announce these holidays in its annual
calendar.
6-3-1 Treatment of Holidays of Eids & Public Occasions During

If an employee who works on normal working hours or on shift
system happens to be in a work or training assignments (inside the
kingdom or abroad) during any of the public holidays (Eid al-Fiter,
Eid al-Adha or the National day) and he neither takes these days
off nor he takes alternative days, he shall then be compensated by
alternative days as public holiday, provided that he takes such
leave within sixty (60) days from end of the work or training
assignment.
6-4 Marriage Leave

On the occasion of his marriage the Company grants employee three (3)
work days.
6-5 Birth of Child Leave

On the occasion of the birth of his child in the Kingdom of Saudi Arabia
the Company grants the employee one (1) paid work day; to be taken
within fifteen (15) days of the child’s birth in order to enable him
finalize the child's registration formalities.
6-6 Hajj Leave

The Muslim employee who worked for at least one year in the Company
will be granted five (5) work days with pay for performing the
pilgrimage once during his service with the Company. Hajj leave may be
taken in conjunction with Eid al-Adha holiday and the annual vacation,
if taken during that season.
The company can control granting Hajj leave in accordance to work
schedule.
6-7 School/College Examinations Leave

The Company will grant the Saudi employee who purses his studies a
leave of absence with pay covering the total number of days of the
examinations period subject to the following conditions:
6-7-1 Government Schools/Colleges in the Kingdom

A) Enrollment in the school/college is approved by the Company.
B) The examination leave applies only to mid-year and end of year
examinations.
C) The examinations being taken are not repeat exams on
failed courses of previous year.
6-7-2 Private Schools/Colleges in the Kingdom
A) Enrollment in the school/college is approved by the Company.
B) The examination leave applies only to mid-year and end of year
examinations.
C) The examinations being taken are not repeat exams on failed
courses of previous year.
D) The private school/college is accredited by the appropriate

Government institution or agency (Ministry of Education, General
Organization for Technical Education or Ministry of Higher
Education… etc.).
E) The school/college follows a similar system of semesters or
quarters as the Government schools/colleges and not short
courses.
F) The course of study being pursued is related to the employee’s
work and serves the interests of the Company.
6-7-3 Special Clarifications on Examinations

1. As for the continuous examinations, their leave shall be for the
whole period.
2. As for the un-continuous examinations (during which some days do
not have examinations), the employee shall have leave for each day
of examination and the day before.
6-8 Sick Leave

6-8-1 Any employee who proved his sickness by medical report from the
Company doctor or a medical facility approved by the Company and
his medical condition does not allow him temporarily to work shall
have the right to have a sick leave (as per the approved regulations)
for each Gregorian year during any Gregorian calendar year (from
January 1 to December 31) in an accumulative way, as follows:
Years of Service At 100% of Pay At 75% of Pay Without Pay
Following (60) Following (30)
Less than five (5)years First (30) days
days days
Five (5) years, but less Following (90) Following (30)
First (45) days
than ten (10) years days days
Following (120) Following (30)
Ten (10) or more years First (60) days
days days
6-8-2 Arrangement of sick leaves fully paid and sick leaves with three
quarters of pay and the eligible annual vacation and the unpaid sick
leave for a period of (30) days as stated above shall be as follows:
A. Employee shall use the total eligible sick leaves (fully paid or three
quarters of the wage) as stated in the above item no: 6-8-1.
B. Employee shall use the annual vacations eligible (by virtue of his
service, but does not include the advance annual vacations
balance).
C. Employee shall use the unpaid sick leave for a period of thirty (30)
days, as stated in item no: 6-8-1 above.
6-8-3 When the employee exhausts his sick leave (full/ three quarters of
pay) and the annual leave balance, the Company may terminate his
services or grant him a sick leave without pay, with the approval of the
President& CEO, for a period not more than one Gregorian year (365
days). In this case payment of the following allowances shall continue:
A) Housing allowance.
B) Regular transport allowance.
C) Industrial security allowance.
6-8-4 Leaves overlapping with Sick Leave shall be treated as follows:

Type of Leave
Overlapping Action
with Sick Leave
Not applicable. Employee can not have an annual leave while he is in a
Annual Leave
sick leave.
Eids and
occasions Leave
Examinations
Leave If any of the following leaves: Eids & Occasions, Examinations,
Marriage, Hajj, Sports and Patient Escort falls within the sick leave,
Marriage Leave
sick leave shall not be extended. Overlapping days shall be recorded as
Hajj Leave per type of leave: Eids & Occasions, Examinations, Marriage, Hajj,
Sports Practices Sports , Patient Escort.
Leave
Patient Escort
Leave
Not applicable. Employee can not have an unpaid leave while he is in
Unpaid Leave
sick leave.
Sick leave shall not be extended by the one day new born baby leave if it
New Born Baby falls within the sick leave, but employee shall be entitled to take the new
Leave born baby leave when he comes back to duty( provided that he takes such
leave within a period of (15) days from date of resuming duty).
Sick leave shall not be extended by days of the Kinsman Death Leave if it
falls within the sick leave, but employee shall be entitled to take the
Death of
Kinsman Death Leave when he comes back to duty( provided that such
Kinsmen Leave
coming back to duty happens before the elapse of (4) working days from
date of the said kinsman death).
6-9 Patient Escort Leave

An employee maybe granted leave of absence with pay to accompany a
sick immediate family member (wife and children only) for up to sixty
(60) calendar days, in an accumulative way during any Gregorian
calendar year(from January 1 to December 31). The pay during this leave
will be in accordance with the following:
Distance between employee’s The following thirty
First thirty (30) days
residence and place of treatment (30) days
Fifty (50) kilometers or less 50% of rate of pay 25% of rate of pay
More than fifty (50) kilometers 100% of rate of pay 50% of rate of pay
The request for this leave of absence must be supported by medical

recommendations from a competent authority approved by the Company.
6-10 Sports and Cultural Activities Leave

As per the Council of Ministers Resolution no. 310 dated 27/10/1429H
approving organization of the participation of employees from both the
Government and Private Sectors in national occasions locally and abroad,
sports and cultural activities leaves will be determined as follows:
6-10-1 Participation in Sports Activities

Saudi Employee will be granted leave of absence with full pay to
participate in any of the sports activities inside or outside the Kingdom
(as per the above resolution of Council of Ministers) as follows:
A. In-Kingdom: up to a maximum of sixty (60) days.
B. Out-of-Kingdom: up to a maximum of ninety (90) days.
Games of track and field and swimming will be excluded, where
participants will be allowed more days of absence not exceeding in
total thirty (30) days for the period specified in paragraph (B).
When the Kingdom's team or any club of collective or individualistic
games got qualified for the world's cup championship or the Olympic,
Asian or Arabic games competition, concerned employee will be
allowed an additional period of absence from work more than the
periods specified in paragraphs (A) &(B) above, but not exceeding the
following periods:
A. Up to a maximum of thirty (30) days for the collective games.
B. Up to a maximum of sixty (60) days for the individualistic games.
Such periods will be distributed over the In- Kingdom's preparation

programs and programs of preparation and periods of participation
outside the Kingdom.
6-10-2 Participation in Cultural and Social Activities

Saudi employee will be allowed to have a leave of absence with full
pay (as per the above resolution of Council of Ministers)when he
participates in competitions, evenings, dual gatherings, exhibitions,
meetings, cultural conferences, festivals, youth delegations,
symposiums and training, the total of which not exceeding the
following:
A. Up to a maximum of thirty (30) days for In- kingdom
participations.
B. Up to a maximum of sixty (60) days for Out-of- Kingdom
participations.
In all cases employee is subject to submitting documentation of
recommendation from the Youth Affairs President or his deputy or
from the Minister of Culture & Information or his deputy within an
adequate time before the beginning of his leave.
For each Gregorian year, in an accumulative way during one
Gregorian calendar year ((from January 1 to December 31)).
The regional Human Resources Services Department will advise the
competent agency at the Youth Affairs Presidency(Olympic
Commission, Sports Unions) or other beneficiary departments of SEC
agreement to its employee participation provided that such beneficiary
department shall bear wages of the employee participating in the
sports or cultural activities. Total full wages during the employee's
participation in the that activity which includes( basic salary + other
eligible allowances during the leave period) will be indicated.
6-11 Participation in the Improvement (Tahseen) Program

Participants in the improvement studies shall be given leave with pay as
follows:
A. Team Leader: two days when the improvement study is completed.
B. Team Members: one day when the improvement study is completed.
C. Quality Advisor: one day for each improvement study completed
during the Gregorian calendar year in accordance with the operational
plan of each department, subject to a maximum limit of three (3) days
during the Gregorian calendar year. Such leave can not be carried
forward to the next Gregorian calendar year.
6-12 Leave for Employees who Completed (25, 30, 35, 40) Years
of Continuous Service
Employees completing (25,30,35,40) years of continuous service with the
Company will be given a leave with pay for (3) work days. Such leave
should be used by the eligible employee within a period of six (6) months
from date of completing the said period of continuous service.
6-13 Detention of Employee by Authorities

6-13-1 For Reasons Related to Company Business
If an employee is detained by the Government authorities for
reasons related to Company business (that includes Motor Vehicle
accidents during the course of carrying out the Company’s business
or in his way to work):
A) The Company will keep him on the payroll and continue to
pay him if the conduct for which he is detained is related to or
takes place while he performs his duties for the Company, as
per the Company's appropriate regulations.
B) But if the reason for which he is detained is due to an non-
criminal act because of discharging a job entrusted to him by
the Company, the Company shall continue to pay his wage,
and when he is released by the Government authorities the
Company shall keep him on the payroll and the appropriate
act as per its Chart of Penalties and Rewards shall be applied
against him.
6-13-2 For Reasons Not Related to Company Business

If an employee is detained by the Government authorities for
reasons not related to Company business, then the Company shall
have the right to take the following actions:
In case of employee's absence without the Company knowledge the
following shall be taken:
(A). Send a notice to the employee, after five (5) days asking him
to report to duty within ten (10) days, otherwise he will be
dropped from payroll due to his unauthorized absence.
(B). If the employee does not report to duty on the eleventh (11th)
day he will be dropped from payroll.
If it is found out that the employee's absence is due to detention by
Government authorities, the following shall be taken:
A) The Company will allow the detained employee a grace period
of one month (30 days) from the date of his detention to return
to duty and be reinstated to the payroll if he produces
documentation proving his innocence. (The period of detention
will be deducted from his outstanding vacation credits, if he has
any, or considered leave without pay).
B) If the employee does not return to duty within the grace period
of thirty (30) days the Company will consider extending the
grace period by another period of sixty (60) days or not.
C) If the employee returns to duty within the ninety (90) days
period specified by the Company after being released by the
Government authority detaining him without issuing any
decision of condemnation against him, the Company shall allow
him to return to duty without taking any decision against him
until appropriate instructions from the detaining Government
authority are received. But if the employee does not return to
duty within the said grace period of ninety (90) days, his
employment contract will be terminated without end of service
award or notification or compensation, in accordance with the
provisions of article (80, paragraph 7) of the Saudi Labor Law.
D) An employee on a specified term employment agreement will
be terminated at the end of the grace periods, ninety (90) days,
or the expiry of his employment agreement, whichever occurs
first.
6-14 Death of Immediate Family Member

In the case of death of an immediate family member employee will be
granted three (3) consecutive work days with pay starting from date of
death up to the fourth day only. Immediate family members include wife,
ascendants, descendants, brothers and sisters. The following definitions
will be taken in to account:
A. Ascendants: employee's parents and grand parents regardless of how
high they are.
B. Descendents: employee's sons and daughters and grand sons and
grand daughters regardless of how low they are.
C. Real brothers and sisters are:
• Real brothers and sisters (from the paternal and maternal sides).
• Paternal brothers and sisters only.
• Maternal brothers and sisters only.
(This does not include the fostering brothers and sisters).
6-15 Leave without Pay

6-15-1 Duration of Leave Without Pay
Employee will be granted a leave without pay the duration of which
does not exceed (180) days ( continuous or distributed) during a
period of three (3) years, if such employee has provided convincing
justifications to the Company management such as the following:
• Pursuing studies in short courses related to employee's
profession with the Company.
• Accompanying one of the close family members to study.
• Extending unpaid sick leave after using the sick leave as
approved in paragraph no: (6-8-1) of the HR Manual.
• Escorting one of the close family members during medical
treatment.
• Emergency circumstances that affect one of the employee's
immediate family members.
6-15-2 Conditions for Leave Without Pay

The Company grants employee leave without pay according to the
following conditions:
A. Employee must provide the appropriate supporting documents
with his application for leave without pay.
B. Employee must use the balance of his annual leave before he
may start an unpaid leave.
C. Employee's Department Manager should agree to the possibility
of keeping the employee's position vacant. Also, a suitable
temporary alternative who can perform the employee's duties
during his absence is made available.
6-15-3 Approval Authorities for Leave Without Pay

The Company grants leave without pay according to the following
approval authorities:
Duration of Leave Without Pay Approval Authority
From (1) to (7) days Department Manger
From (8) to (14) days Sector Executive Director
From (15) to (30) days Executive/ Senior VP
From (31) to (180) days President &CEO
In case of leave without pay which exceeds seven (7) cumulative
days during the Gregorian year, agreement of Employee's
Department Manager is required, together with concurrence of all
managerial levels preceding the final authority (as per the above table
of authorities).
If the employee applying for (the leave without pay) works

immediately under the direct supervision of the man of authority
approval then should be sought from the higher level of authority.
6-15-4 For the leave of absence without pay the total duration of which is
more than the first thirty (30) days during any Gregorian (365 days)
year from date of the first leave without pay, Company will
discontinue all allowances and employee will bear all amount of
insurance payment (employee share and Company share).
6-15-5 After getting his leave without pay approved by the competent man
of authority, employee shall pay in one advance payment all
insurance contributions mentioned above with regard to the whole
period of the leave.
6-15-6 The leave of absence without pay that does not exceed ninety (90)
continuous days shall be considered part of the employee's service
with the Company for which he deserves end of service award.
However, the leave of absence without pay which is more than ninety
(90) continuous days shall not be considered part of the employee's
service nor he shall get any end of service award against that period.
6-15-7 The Company shall continue to provide the employee and his eligible
family members with medical coverage during the leave of absence
without pay which does not exceed three hundred sixty five (365)
days, but when it reaches three hundred sixty six (366) consecutive
days or more, the Company then shall cease from providing such
service to the employee and his eligible dependents.
6-15-8 The Company shall not grant the employee a leave of absence
without pay unless his annual leave balance (from previous years and
not the coming one) is used. It is to be noted that the employee shall
not be entitled to any annual leave against the leave of absence
without pay whatever its period could be.
6-15-9 Rules of leave without pay shall be applicable to employees loaned to

other parties outside the Company if such parties pay their salaries.
6-15-10 In case of leave without pay for more than thirty (30) consecutive
days, employee needs to sign the appropriate acknowledgement form
before he starts his leave.
(See Attachment no.(1) – Acknowledgement Form for employee

applying for leave without pay for more than thirty (30) days (at the
end of this Chapter).
6-15-11 Leaves overlapping with leave without pay shall be treated as

follows:
Type of Leave
Overlapping with Action
Unpaid Leave
Annual leave does not overlap the unpaid leave for employee should
use all his due annual leave balance before he may start the unpaid
Annual Leave leave. It is to be noted that employee is not entitled for an annual for the
unpaid leave period whatever its duration ( as per the approved policy,
paragraph no: 6-15-5 of the Human Resources Manual).
Eids and occasions
Leave
Examinations Leaves overlapping with the (unpaid) leave will be treated as follows:
1.If the (cumulative) unpaid leave during one Gregorian year does not
Leave
exceed (30) days and it is intervened with any of these leaves: Eids &
Marriage Leave Occasions, Examinations, Marriage, Hajj, Sports, Patient Escort,
Hajj Leave New Born Baby and Death of Kinsman, unpaid leave shall not be
Sports Practices extended. Such intervening days shall be recorded as per the type of
that leave and days of unpaid leave will be reduced by the number of
Leave
the days of the intervening leave(s).
Patient Escort 2.If the (cumulative) unpaid leave during one Gregorian year exceeds
Leave (30) days and it is intervened with any of these leaves: Eids &
Sick Leave Occasions, Examinations, Marriage, Hajj, Sports, Patient Escort,
New Born Baby and Death of Kinsman, unpaid leave shall not be
New Born Baby
extended. Such intervening days shall be recorded as unpaid leave.
Leave
Death of Kinsmen
Leave
6-16 Delivery Leave

Female employee working for the Company shall be entitled to a delivery
leave as per articles no. (151,152) of the Saudi Labor Law:
Article no. (151) of the Saudi labor Law:
A female worker shall be entitled to a maternity leave for the four weeks
immediately preceding the expected date of delivery and the subsequent
six weeks. The probable date of delivery shall be determined by the
physician of the firm or pursuant to a medical report certified by a health
authority. A woman may not work during the six weeks immediately
following delivery.
Article no. (152) of the Saudi labor Law:
During the maternity leave an employer shall pay the female worker half
her wage if she has been in his service for one year or more, and a full
wage if she served for three years or more as of the date of
commencement of such leave. A female worker shall not be paid any
wage during the regular annual leave if she has enjoyed in the same year
a maternity leave with full wage. She shall be paid half her wage during
the annual leave if she has enjoyed in the same year a maternity leave at
half wage.
Chapter 6 Attachment (1): Acknowledgment by Employee applying for a
leave without pay for more than thirty (30) days)
Acknowledgment& Undertaking
(By Employee applying for a leave without pay for more
than thirty (30) days)
I, the undersigned: ……………………………………………., employee no:…………………
do hereby acknowledge that l have applied for a leave without pay for the duration of:
……..days, starting from: ……….. and ending on:……………, for the purpose of:
……………………………………………………………………………………………………
If I need to extend this leave, the Company's appropriate approval shall be obtained. This
acknowledgment relates to this application and any extension in the future. Moreover, I have
read the controls and conditions of granting unpaid leave, and hereby agree to apply them on my
application or any further extension that may be approved in the future:
First: For the leave of absence without pay the total duration of which is more than the first
thirty (30) days during any Gregorian (365 days) year from date of the first leave
without pay; Company will discontinue all allowances and employee will bear all
amount of insurance payment (employee contribution and Company contribution).
Second: The leave of absence without pay that does not exceed ninety (90) continuous days
shall be considered part of the employee's service with the Company for which he
deserves end of service award.
Third: The leave of absence which is more than ninety (90) continuous days shall not be
considered part of the employee's service nor he shall get any end of service award
against that period.
Fourth: The Company shall discontinue providing the employee and his eligible family
members with medical coverage during the leave of absence without pay if its
duration exceeds three hundred sixty five (365) consecutive days.
Fifth: The Company shall not grant the employee a leave of absence without pay unless his
annual leave balance (from previous years and not the coming one) is used.
Sixth: It is to be noted that the employee shall not be entitled to any annual leave against the
leave of absence without pay whatever its period could be.
Seventh: Before he starts his unpaid leave, Employee undertakes to pay all insurance
contributions (both employee and Company shares) in one advance payment for the
whole period of the leave (by an endorsed check issued in the Company name).
Eighth: Duration of leave without pay which exceeds thirty (30) days will not be counted
towards annual leave eligibility.
Ninth: The rules for leave without pay shall be applicable to employees seconded to other
parties outside the Company if such parties pay their salaries.
Tenth: Employee should not start his unpaid leave before being approved by the authorized
person.
Accordingly, I hereby sign this deed at my own free discretion.
Name: ………………………...…
Signature: ……………………….
Date: …………………………….
Chapter 7: Performance Management
Table of Contents
Paragraph Subject
Link Between Performance Management and Business
7-2
Performance
7-2-1 Performance planning
7-2-2 Follow Up& performance Guidance
7-2-3 Review & Performance Assessment
7-2-4 Reinforcement
7-3 Performance Management Mechanism
7-3-1 Review of Skills & Competencies
7-3-2 Performance Rating
7-3-3 Employee Performance Reviewer
7-3-4 Performance Planning
7-3-5 Performance Development
7-4 Responsibility
7-4-1 Direct Supervisor
7-4-2 The Employee
7-4-3 Over- Viewer

Performance Management System is a method for planning, orienting,
developing, enhancing and appraising the employee's job performance in
order to ensure fulfillment of the Company objectives.
The comprehensive goal of this system is to establish a culture whereby
managers, individuals and groups assume the responsibility for ongoing
development of Company business and enhancement of their skills and
capabilities, so that Company targets can be efficiently realized. More
specifically this Management aims at the following:
A) Appraising employee's performance of his current job.
B) Defining employee's development needs.
C) Defining procedures needed for job performance development.
D) Establishing a classification system that distinguishes levels of
performance.
E) Establishing criteria for granting annual increments or promotions in
line with Company regulations.
In implementation of the above, a new system has been approved in the
Company for Performance Management. It has been applied at stages
with effect from the start of January 2004. This new system consists of
four factors: Performance Planning, Performance Orientation,
Performance Appraisal and Results Enhancement.
7-2 Link Between Performance Management and Business

Performance
Performance Management is an on-going process in which employees

and supervisors play interconnected and interdependent parts. It can be
briefed in the following four stages:
At the beginning of each year, a meeting shall be held between the
employee and his supervisor to clarify:
A. Outlook and objectives and the targets in a downward arrangement
(for each of the Company, Business Unit, Sector and Department).
B. Defining the job's most important targets and performance criteria
for the next year.
Eventually success achieved in those fields can be measured and

calibrated. All these activities should be related to Company targets for
the next year.
7-2-2 Follow- up & Performance Guidance

A. Performance Management is an ongoing process. Therefore
employee and his supervisor should pay proper attention to
performance development all over the year through:
1 Performance control.
2 Feedback.
3 Guidance and support.
4 Periodical reviews (by the employee himself or the
supervisor).
B. Implementation of the employee's personal development plan during
the year in line with his job route line and its current and future
requirements.
7-2-3 Review and Performance Assessment

Discussion and review of performance against the agreed objectives
shall be made in an official meeting between supervisor and the
employee once at least during the year as per the following axes:
A) Annual assessment.
B) Assessment by supervisor, employee himself and colleagues.
C) Comparison of performance to required objectives, standards and
required competencies.
D) Planning and improvement.
E) Development needs.
7-2-4 Reinforcement
There should be some type of support and reinforcement to make the
Performance Management Program successful through:
A) Link to promotions and annual increments plan.
B) Top Management compliments of distinguished achievements.
C) Link to Job Route Planning and replacement schedules.
7-3 Performance Management Mechanism

Performance Management Program shall be implemented as follows:
7-3-1 Review of Skills and Competencies

Direct supervisor shall review the employee skills and competencies
in accordance with the notes laid down during the appraisal period last
year. Supervisors may learn more about competencies by consulting
the Company's appropriate manual. The most important competencies,
which shall be reviewed in this appraisal, are as follows:
1. Experience: it is related to acquiring and efficiently applying
technical skills and know how for the job and work interests.
2. Achievement: it is related to establishing high performance
standards that lead to achieving bigger quantities of work in better
quality criteria.
3. Initiative: it is related to the ability to recognize work chances
and risks and to take the appropriate action in the right time. It
also includes the optimal use of available resources.
4. Customer Service: means the ability to be aware of the
importance of internal and external customers and seriousness in
extending the best service and readiness to develop at all times.
5. Trouble-shooting: it is the ability to dismantle problems to their
basic components and using that for evaluating and developing
the Company performance.
6. Commitment: means compliance to Company rules and trying
the best to realize its interests and maintaining loyalty to it at all
times, even when it is difficult to do that.
7. Working with others: means being aware of the benefits of
working/ cooperating with others for work achievement.
8. Flexibility: means readiness to accept new work methods and
ability of adaptation to changeable circumstances.
9. Safety: means understanding and complying with all safety
related procedures and encouraging others to do the same.
10. Confidence: means proper manifestation of the individual's faith
in his own capacities and the ability to react properly to each case.
11. Influencing others: means the ability to choose proper ways to
affect others for work interests.
12. Planning: means use of a comprehensive outlook to determine
priorities and targets and to identify future requirements.
13. Developing others: means showing readiness and commitment to
develop others and to improve their skills in order to enable them
meet current and future work needs.
14. Group Leading: means creating the suitable environment and

making available necessary resources to enable the group perform
its duties efficiently. This is in addition to motivating group
members to make them succeed in their mission.
Skills and competencies stated above are appraised and reviewed in

line with the following levels:
Level Code
Significantly exceeds expectations 1
Exceeds expectations 2
Meets all expectations 3
Meets minimum expectations 4
Does not meet expectations 5
7-3-2 Performance Rating

General rating for performance level depends on the review of skills
and competencies, along with the employee's performance. Normal
distribution of performance rates in a Business Unit will be as follows:
Significantly exceeds expectations 15%

Exceeds expectations 20%
Meets all expectations 60%
Meets minimum expectations
5%
Does not meet expectations
7-3-3 Employee Performance Review

Direct supervisor shall review his subordinates' performance during
the year defining their contributions, achievements and obstacles.
Accordingly, he shall also define the employee's skills development
during the last year and the needs for improvement next year. Direct
supervisor is responsible for deciding the employee's overall appraisal,
which should cover the whole appraisal period.
Once the appraisal report is signed by him and also presented to the
employee and singed by him, it shall be submitted to the higher
authority for review and approval.

Through discussion with the employee, direct supervisor will define
the job's most important targets for the coming twelve months.
Targets, assessment criteria and duration during which such goals will
be realized shall be defined. Also, current year achievements will be

defined. Then both parties shall sign the defined objectives which will
also be approved by the higher authority.
7-3-5 Performance Development

Direct supervisor and job holder shall agree on the personal
development plan for the coming twelve (12) months by defining the
required skills/ competencies in relation to his job objectives now and
in the future. Naturally, criteria for targets achievement measurement,
along with development plans and training programs, which the
employee is planned to attend, shall be specified.
Notes shall be taken, and the development plan shall be signed by the
employee, his direct supervisor and approved by the higher authority.
7-4 Responsibility
7-4-1 Direct Supervisor
Employee performance appraisal is a basic responsibility of direct
supervisors. Supervisory staff will assume the duties of effective
application of the performance management program in respect of
their subordinates.
7-4-2 The Employee

A. Follow up his performance and always compare it to job standards
and objectives agreed upon with supervisor at the beginning of the
year.
B. Apply the development plan agreed upon with the direct
supervisor.
C. Seek guidance, orientation of the direct supervisor whenever
needed.
D. Arrange to take corrective actions when needed in line with
directions of direct supervisor.
E. Propose whatever thought to develop work performance.
7-4-3 Over-Viewer
Once the employee's performance appraisal is completed by his
immediate supervisor, the higher managerial authority (not lower than
Division Manager) shall review his performance planning,
development and appraisal. He will be responsible for ensuring that
consistent standards of performance appraisal and management are

applied throughout the organizational units.

The HR Business Unit is responsible for coordinating the
implementation and timely conclusion of the Performance
Management process and providing necessary advice. This involves
ensuring that:
A. All Company employees are appraised in accordance with the
provisions of the Company's Performance Management System.
B. Performance is evaluated against the requirements of their jobs in
accordance with established work standards and job descriptions /
role profiles.
C. All direct supervisors receive appropriate training to apply the
Performance Management System.
D. Follow up and periodic review of the Performance Management
System and introduction of necessary adjustments thereto, in order
to fulfill Company objectives.
Chapter 8: Employee Development
Table of Contents
Paragraph Subject
8-2 Responsibility
8-2-1 Line Department
8-2-2 HR Development Sector Departments
8-3 Saudization
8-4 Performance Management
8-5 Career Development Planning
8-5-1 Training Needs Analysis
Development Plan Based on Industrial Needs and Company
8-5-2
Objectives
8-5-3 Tracking Employee's Development Progress
8-5-4 Monitoring Job Performance Subsequent to Development
8-5-5 Review of Development Program
8-6 Succession Planning
8-6-1 Purpose of Succession Planning
8-6-2 Benefits of Succession Planning
Succession Planning- Managerial & Professional Development
8-6-3
Department
8-7 Development Programs
8-7-1 Personal Development Plans ( Route/ Leadership Program)
8-7-2 Fresh Graduates Development Plan( Qualifying Program)
8-7-3 Secret Career Route Plan and the Succession Tables
8-7-4 Competence Questionnaire
8-8 Training Programs
8-8-1 Industrial Training Programs for non- Employees
8-8-2 The on –Job Training Programs (OJT)
8-8-3 Short Technical Programs for Employees
8-8-4 Administrative Short Training Programs for Employees
8-8-5 Competence Training Programs
8-8-6 English Language Training
8-8-7 Qualifying Training Programs
Paragraph Subject
8-8-8 Special Training Programs Offered Upon Request
8-8-9 Supported Training Programs
8-8-10 Vendors Training Programs

The Company provides training for its employees in order to achieve
maximum productivity and to enhance the development and
qualifications of Saudi personnel in line with the Company’s Saudization
objectives. Consequently, the Company’s management assists Saudi
employees to improve their skills and to develop their technical and
professional abilities to the maximum of their potential, in line with the
Company’s requirements.
The Company has established training and development programs to
achieve these objectives, consistent with its manpower requirements. The
programs will include preparing prospective employees through
management, professional, technical and administrative development
programs. The Company will also ensure on-going career development
and succession planning for qualified employees designed to improve
their knowledge and skills and to enable them assume higher
responsibilities.
The Company’s training and development programs are essentially
intended for Saudi nationals. In special cases, determined by
management on a case by case basis, non-national employees may be
trained to meet specifically identified work requirements.
8-2 Responsibility
8-2-1 Business Units Departments
Unit departments are primarily responsible for determining manpower
and training needs. They will develop individual development plans
annually on Performance Management Forms. Managers and
supervisors are also expected to provide opportunities for training
employees under their direction, evaluating their progress, and
reporting on such progress in accordance with established training and
development programs.
8-2-2 HR Development Sector Departments

HR Development Sector Departments/ Training / Managerial&
Professional Development Dep./ Training Services Department are
responsible for determining the Company’s training targets, choosing
appropriate training sources and developing and administering training
and career development activities, in accordance with the Company’s
operating requirements and the Saudization plans. Managerial &
Professional Development Department is also responsible for

maintaining up-to-date training records for all employees covering
their individual development programs.
8-3 Saudization
The Saudization Plan aims at preparing Saudi employees to qualify them
to replace expatriates in accordance with the Company’s objectives. The
plan will include identifying a target job for each employee, preparing
individual development programs and on the job training programs for
the employees’ training and development, and ensuring effective
implementation of such programs.
The Training and Managerial & Professional Development Departments
will be responsible for coordinating the implementation of the
Saudization Plan, in consultation with the departments concerned.
8-4 Performance Management

Performance Management is a component that links and interacts all
Training & Development operations to develop the various Human
Resources processes. Among other things it allows the employee and his
supervisor to discuss and define the behavioural competencies and
identify training skills needed for consistent and good performance of the
job. All this will be linked to employee's appraisal and entitlement for
annual increment.
8-5 Career Development Planning

Career development is a series of interdependent activities and an
important aspect of the integrated HR system that allows management to
ensure a continued supply of well trained employees who are current with
the industry trends and technological developments needed for the
efficient operation and development of the organization, and assess, via
the use of the performance management process, on a continuing basis,
the availability of qualified employees in management and professional
jobs.
8-5-1 Training Needs Analysis

The manager / supervisor through the use of the performance
management process should be able to identify the employee’s
strengths and weaknesses. The weakness gaps in the employee’s
performance are defined as training needs. The training needs are
discussed, agreed, recorded on the appraisal form and copied to
competent departments in the HR Sector for further coordination and
handling.
8-5-2 Development Plan Based on Identified Needs and Company

Objectives
Based on the training needs analysis that resulted largely from the
performance management process the manager / supervisor will
discuss, review and agree with the employee, consulting and
coordinating with the Training and Managerial Development
Department, on a development plan that will satisfy the business
objectives of the department/ section/ unit.
8-5-3 Tracking Employee's Development Progress

As the development plan goes into effect, the manager / supervisor
along with the Development Department will track and evaluate the
progress of the individual, coach, revise the plan if necessary to
ensure that end result meets the desired results for the objectives of
the Company.
8-5-4 Monitoring Job Performance Subsequent to Development

Upon completion of the employee’s training as described in the
development plan and resumption of his full duties the manager /
supervisor will monitor and evaluate his performance to determine
whether or not the anticipated improvements in performance were
realized.
8-5-5 Review of Development Program

The regional Professional and Managerial Development Department
along with the manager /supervisor will review the development
program that was drawn up and put into effect to determine the
success level of such program(s) for potential use in future instances.
Development Programs should be tailored to meet specific individual
needs and always geared towards meeting the Company’s business
and growth objectives.
8-6 Succession Planning

8-6-1 Purpose of Succession Planning
Succession planning is a tool of career development. The purpose of
succession planning is to identify, develop and track “high potential”
employees and professionals for future leadership positions.
8-6-2 Benefits of Succession Planning

8-6-2-1 The Employee
(A). It is a clear sign to the employee that the Company cares to
develop him to assume higher responsibilities.
(B). It improves communication between employee and the
Company.
(C). It encourages continuity of service, nurtures the
development of employee skills, employee morale and job
satisfaction and opens the path to upward mobility.
8-6-2-2 The Company
(A). Developing its own future executives rather than recruiting
from outside.
(B). Customizing training programs for future managers to
meet their prospective needs.
(C). Increasing loyalty and commitment to the Company.
(D). Attracting quality applicants.
(E). Surviving and competing in the local and global work
environment through development of qualified manpower
in the near and far range.
8-6-3 Succession Planning-Managerial & Professional Development

Succession planning is a critical tool in the career and management
development of employees in the Company.
Towards this purpose, Managerial & Professional Development
Department in coordination with the competent departments at the
various sectors and business units oversee and implement the
succession plans. In this regard, it shall discharge the following duties:
8-6-3-1 Gather Information on Individuals with Potential
Managerial & Professional Development Dep. will gather
information on individuals seen to have potential for
professional growth and construct a profile; such as educational
background, work experience, skills, training programs
attended, behavioral competencies, etc.
8-6-3-2 Compare and Match Information with Profile of Key Jobs

Managerial & Professional Development Dep. will study and
compare profiles of the individuals with potential to determine
the degree of “fit” with the Key jobs under consideration and
develop a short list of “successors” for each Key position.
8-6-3-3 Training and Development Needs

Managerial & Professional Development Dep., working closely
with the manager concerned, will further review the identified
training and development needs of the individual and
recommend a development plan to satisfy those needs. The plan
will be coordinated with the regional Training Department and
for fine tuning and implementation.
8-6-3-4 Review and Update Succession Plans on a Timely Basis

Once the development plan goes into effect, Managerial &
Professional Development Dep. will conduct regular reviews of
the individual’s progress and the effectiveness of the plan and
introduce revisions and adjustments as necessary to ensure
satisfaction of the Company’s objectives.
8-7 Development Programs

8-7-1 Personal Development Plans ( Route/ Leadership Program)
Each direct supervisor shall be committed to draft a development plan
for his subordinates at the beginning of each Gregorian year. This
activity is shown in section four of the Performance Management
Form which includes the key training programs and work functions.
8-7-2 Fresh Graduates Development Plan (Qualifying Program)

1. Direct supervisor will prepare the development plan for the fresh
graduate employee before the second week end from date of
appointment, provided it is reviewed and approved before the end
of the first month.
2. Plan will cover the employee's prescribed program period which
ranges between one to two years, and it includes all training and
development duties and programs which serve the target job.
3. Employee's evaluation and annual increment will depend on the
performance appraisal rate for all duties contained in the plan.
8-7-3 Secret Career Route Plan and the Succession Table

1. Each direct supervisor will prepare the five year secret plan for his
employees' jobs route (for the coming five years), which is
considered the basis for succession tables. This plan will be
annually updated in simultaneous with the succession table review.
2. Each official will prepare a succession table for all leadership and
supervisory jobs under his control, and then will have it approved
by his direct manager (department manager at minimum) each
year. Then it will be sent to Managerial& Professional
Development Department.
8-7-4 Competence Questionnaire

Supervisors will complete the competence questionnaire periodically,
and its results will be connected to the following systems:
1. Performance Management System: direct supervisor will review
the harmony between results of the questionnaire and level of
performance in the Performance Management form.
2. Development plans: results of the questionnaire will guide
preparation of the employee's development plan.
3. Appointment/ Succession: harmony between results of the
competence questionnaire and readiness of the nominees for
leadership positions will be observed. Appropriate authority will
approve the succession tables as per reports of the Managerial &
Professional Development Department. Also, results of the
competence questionnaire will be consulted when the
appointment/ succession decisions are issued.
4. Training requirements: training based on competence as per the
competence questionnaire results will be adhered to by training
coordinators/ training departments.
8-8 Training Programs

8-8-1 Industrial Training Program for non- Employee
This is one of key programs on which the Company depends to secure
its needs for Saudi technicians in O&M fields and for the purpose of
saudization of its jobs. It covers the Company's needs in power
generation, transmission and distribution, electrical, electronic and
mechanical engineering, and preparation of power plant operators. It
also provides some other specialties that serve the Company's
services. This program is intended for graduates of High School (the
Scientific and Industrial branches) or any other qualifications deemed
suitable by the Company. The Company will specify its duration,

procedures and controls. Usually it is conducted in two stages: one for
the basic training and the second for craft (specialized) training.
8-8-2 The On-Job Training (OJT)

This program starts where the industrial program ends and it is
intended for those who successfully pass requirements of the first one,
and it is conducted at job sites. The field determines its duration. It
aims at upgrading skills efficiency for industrial program graduates to
meet the requirements of target jobs. Such development is achieved
through an approved training plan. Proper coordination should be
made with competent departments to establish on - job training for
each graduate. Regional Training Department will periodically follow
up the proper implementation of the training plan with the various
administrative levels within the trainee's work department, to ensure
proper implantation of the training plan.
Transfer of Graduates of Company's Training Centers to

Work at Jobs Other than those they were Trained for:
Employees graduating from the Company's Industrial Training
Program (ITP) are absolutely not allowed to transfer to jobs other
than those they were trained for (whether such jobs are of technical
or administrative nature), unless they are unable to perform duties
of their trained jobs due to some critical health condition (as per an
official medical report sanctioned by a medical facility approved
by the Company). In such a case approval of the EVP/SVP of the
Business Unit where the employee woks will be sought when the
employee transfers to a job within his division or when the transfer
is made to another department within the same business unit. In
case transfer is made to a job in another business unit, then
approvals of both EVP/SVP for the employee's current business
unit and the one he plans to transfer to will be obtained.
8-8-3 Short Technical Programs for Employees

Employees will be nominated to participate in short duration
professional and technical programs held in –house or out of
Company to update knowledge and exposure of employees to the
latest developments in Company related technologies and professional
management techniques, so as to prepare them for assuming higher
jobs.
8-8-4 Administrative Short Training Programs for Employees

The Company offers this program to upgrade administrators and to
provide them with knowledge and managerial skills that contribute to
performance improvement in quantity and quality at all the Company's
administrative levels. These programs cover plenty of areas relating to
management, organizational conduct and human relations. Usually
they are accurately chosen and annually updated as per the actual
needs of the Company's sectors actual needs.
8-8-5 Computer Training Programs

The Company provides training courses on Computer uses and
applications, either at the Company's training centers or at a
specialized party in the Kingdom. These courses aim at improving
employees' skills and abilities in using computer and its applications.
8-8-6 English Language Training

The Company provides English Language programs either at its
training centers or at a specialized party in the Kingdom, in order to
upgrade employees' efficiency in English to enable them match
developments in technology of O&M, work skills, manuals of
maintenance and other various fields.
8-8-7 Qualifying Training Programs

The Company offers qualifying and training programs to its Saudi
employees who have limited educational background to teach them
reading and writing skills that serve their daily activities. Then they
can be given some basic technical information and rules of safety for
the work they are going to assume. This program aims also at utilizing
available human resources after being trained and qualified as
technical assistants in fields which, the Company needs.
8-8-8 Special Training Programs Offered upon Request

Development Sector Departments, upon the request of other Business
Units, will design, prepare and implement other technical, advanced
training programs for the activities of those Business Units, in order to
develop and qualify engineers and technicians so as to assume higher
responsibilities. Such plans will be in harmony with their job and
development routes, and it should be approved by the appropriate
authority at both the proponent department and the HR Business Unit.
8-8-9 Supported Training Programs

8-8-9-1 Definition of Program
It is a development program geared towards the national human
resources who wish to acquire or develop skills related to their
current or target duties.
8-8-9-2 Controls for Attending the Program
(A). Program is useful for the employee's current or target
work.
(B). Nomination request will be initiated by the employee
himself and approved by his department. There should be
no urgent need for the program.
(C). Required training program should not be available within
activities of the Company's Training Centers.
(D). Program is not required to be within the employee's
development plan.
(E). Nominee is not able to attend the Company's approved
training programs.
(F). Training will be conducted outside the employee's
official working hours.
(G). Duration of training is six (6) month in maximum.
(H). Training cost will be included in the budget of the
nominated employee department.
(I). Obtaining accreditation from training authorities will be
the responsibility of Training Department in line with
specific controls and criteria.
(J). This program does not cover the Diploma, BSC,MA and
PhD programs.
(K). Approval of the following managerial levels:
• Department Manager of the nominated employee.
• Department Manager of the Managerial &Professional
Development.
• Regional Training Department Manager.
8-8-9-3 Costs Compensation
To know about the policy for cost compensation in this
program, see Chapter (9) in this Manual.
8-8-10 Vendors Training Programs

The Company, through its various Business Units and Sectors,
nominates some of its employees for training on the installation and
operation of machineries and equipments of its contracts with its
contractors and suppliers. This activity could be carried out either
in–Kingdom or at work sites or abroad at the manufacturers' locations.
Chapter 9: Reimbursement of Expenses
Table of Contents
Paragraph Subject
9-2 Responsibility
9-2-1 The Employee
9-2-4 Accounts Control Departments
Reimbursement of Work& Training Assignments
9-3
Expenses
9-3-1 In – Kingdom Work Assignments(Not More than 180 Days)
9-3-2 In – Kingdom Training Assignments(Not More than 180 Days)
9-3-3 In – Kingdom Training Assignments(For More than 180 Days)
Out –of- Kingdom Work& Training Assignments (Not More
9-3-4
than 60 Days)
In & Out – of- Kingdom Work and Training Assignments for
9-3-5
One Day( without Staying Overnight)
Advance on Work & Training Assignments Expenses ( In
9-3-6
&Out – of- Kingdom)
9-4 Reimbursement of Supported Training Expenses
9-5 Reimbursement of Permanent Transfer Expenses
Requirements for Reimbursement of Permanent Transfer
9-5-1
Expenses
9-5-2 Amount of Permanent Transfer Expenses Reimbursement
9-6 Controls of Serving Meals by Company Other Parties
9-6-1 Serving Meals to Guests from outside the Company
Serving Meals during Courses, Meetings, Seminars,
9-6-2
Workshops, Conferences and Gatherings
9-6-3 Serving Lunch Meals during Safety Visits
9-6-4 Serving Lunch Meals during Work Visits
9-7 Compensation for Air Tickets to Expatriate Employees
9-7-1 Eligible Family Members
9-7-2 Distribution of Air Tickets
9-7-3 Cases in Which Air Tickets are Issued
9-7-4 Eligibility
Paragraph Subject
9-7-5 Cases in Which Air Tickets are not Issued
Eligibility of Air Tickets to Family Members of
9-8
Expatriate Employees whose Grade is Below (47)
Reimbursement of Expatriate Employees Fees for
9-9 Passports, Work Permits, Residence Permits and
Transfer of Sponsorship
Reimbursement of Expatriate Employee's Personal
9-10
Effects Shipment Expenses
9-11 Reimbursement of Mobile Telephone Expenses
9-12 Reimbursement of Driving License Expenses
Compensating Company Engineers ( Saudis & non-
9-13 Saudis)for their Membership Fees to the Saudi
Association of Engineers

The Company will reimburse employees for authorized expenses incurred
by them while carrying out Company business, as per its approved
regulations.
9-2 Responsibility
9-2-1 The Employee
The employee is responsible to keep accurate records and supporting
documents of expenses incurred on behalf of the Company while
carrying out its business. He shall also raise expense claims via his
direct supervisor in a timely manner for reimbursement.

Direct supervisor is responsible to authorize incurring of expenses on
behalf of the Company, to verify accuracy, legitimacy and compliance
with company policy of expense claims raised by employees under his
supervision prior to processing. He is also responsible to exercise
budgetary control on expenses in his area of responsibility.

The Human Resources Business Unit is responsible to prepare and
interpret the Company policy with respect to reimbursement of
expenses and ensure compliance with its approved regulations. HR
Business Unit will also review these policies and recommend
appropriate amendments when necessary.
9-2-4 Accounts Control Departments

Accounts Control Departments are responsible to process
reimbursement of expenses in accordance with Company policy in a
timely manner.
9-3 Reimbursement of Work & Training Assignments Expenses

Durations of Work and Training Assignments covered by expenses
reimbursement policy as follows:
• In – Kingdom work and training assignments: not exceeding as a total
period (for both work & training assignments) (180) cumulative days
during the Gregorian year (from January 1 to December 31).
• Out – of – Kingdom work and training assignments: not exceeding as

a total period (for both work &training assignments) (60) cumulative
days during the Gregorian year (from January 1 to December 31).
• In case duration of the work or training assignment is continuous and
exceeds (180) days inside the Kingdom, it will be considered totally
beyond this policy and therefore needs (approval of the President&
CEO).
• In case duration of the work or training assignment is continuous and
exceeds (60) days outside the Kingdom, it will be considered totally
beyond this policy and therefore needs (approval of the President&
CEO).
For information on how travel time is recorded and on how In – Kingdom and Out
– of – Kingdom Work and Training Assignments are compensated, see
Attachment no (3).
9-3-1 In-Kingdom Work Assignments (Not More Than (180) Days)

9-3-1-1 Reimbursement of Work Assignments Expenses for the First
Ninety (90) Days during the Gregorian Year
First Case:
If the assignment location is (100-200) km away from the current
workplace and the employee usually returns daily from the
temporary workplace to his permanent residence, the Company
will provide the employee with:
1. Means of transportation or reimburse him for daily
transportation expenses (at a rate of fifty (50) hallas for each
km he crosses by land).
2. Free meal or meal allowance of (SR 25) per day.
Second Case:
In case where the place of assignment is (100-200) km away
from the current workplace and the employee is unable to return
to his regular place of residence daily, the Company will provide
the employee with:
1. Means of transportation or reimburse him for transportation
expenses for the assignment start and end (at a rate of fifty
(50) hallas for each km he crosses by land).
2. Free accommodation in areas where the Company has such
facilities or at contracted hotels.
3. When the employee is deputed to an area where no

Company accommodation nor contracted hotels are
available, employee shall be paid a daily allowance
according to his grade, as follows:
Grades: 40 - 52 (SR 200)
Grades: 53 - 56 (SR 250)
Grades: 57 - 61 (SR 300)
4. Free meals or meal allowance of (SR 75) per overnight
stay.
Third Case:
If the assignment location is (201) km or more from the current
workplace (and the employee stays at the assignment location),
the Company will provide the employee with:
1. Means of transportation or reimburse him for the
transportation expenses at the start and end of the assignment:
A) Issue of air tickets as per the employee's grade shown
below:
Grades In-Kingdom
40-54 Economy
55-56 First Class
57-61 First Class
Note:
In case, an employee is assigned the duties of Department
Manger or higher he shall receive for work assignments the
same class of air tickets as department managers do, only
during his delegation period.
B) In- Kingdom assignments at a distance of (201) km or
more for which the employee travels by air, expenses of
land travel to airport shall be reimbursed as follows:
1. If the distance between the current workplace and
the airport of departure or between the airport of
arrival and the hotel is (100) km or less the
employee shall receive no compensation for the land
travel, as it is considered included in the daily
allowance.
2. If the distance between the current workplace and
the airport of departure is more than (100) km,
employee shall be compensated for the distance
which exceeds the first (100) km at a rate of fifty
(50) hallas for each kilometer of the surplus

distance.
3. If the distance between the airport of arrival and the
hotel is more than (100) km, employee shall be
compensated for the distance which exceeds the first
(100) km at a rate of fifty (50) hallas for each
kilometer of the surplus distance.
C) In- Kingdom assignments at (201) km distance or more
where an airport is available but the employee prefers to
travel by land, the employee in this case shall be
compensated for the due air ticket value (at the price
which the Company purchases).
D) If air travel is not available at the start and end of the
assignment nor the Company provides a means of
transportation, employee then shall be compensated for
the land distance he crosses at a rate of fifty (50) hallas
each kilometer.
2. Employee shall be given the option to choose between:
• To have a daily allowance to cover other expenses (A),
and reimburse the actual reasonable accommodation
costs. (Actual reasonable costs of accommodation means
that the employee uses a single room at one of the
hotels contracted with Company or at one of those
which gives discount to Company employees, provided
that payments to the employee as: (daily allowance +
hotel accommodation costs) shall not exceed (the
comprehensive daily allowance), OR
• Receive a total allowance to cover expenses of
accommodation and other costs (B), as per (nights of
stay) according to the following table:
Grade Daily Allowance Including
Daily Allowance (A)
Group Accommodation (B)
40-52 SR 300 SR 600
53-56 SR 350 SR 700
57-61 SR 400 SR 800
Note:
Daily allowance as per option (A) shall be paid in all cases to
cover the last day of the assignment.
Fourth Case:
workplace and the employee has to return daily from the
temporary workplace to his permanent residence (with his
department's consent), compensation to him shall be restricted to:
1. A means of transportation shall be provided for his daily
travel or pay him fifty (50) hallas for each kilometer he
crosses in the daily land travel.
2. A free meal shall be provided or pay him (SR 25) as a meal
allowance.
9-3-1-2 Reimbursement of Work Assignments Expenses Duration of

which Exceeds the First Ninety (90) Days during the
Gregorian Year (Assignment Location is 100 km or More
from the Current Workplace)
Compensation shall be as follows:
First Case:
If the employee returns daily from the work assignment place to
his permanent residence, he shall be compensated as follows:
allowance.
Second Case:
If the employee can not return daily from the work assignment
place to his permanent residence, he shall be compensated as
follows:
1. A means of transportation shall be provided or pay him the
travel costs for the assignment start and end at a rate of
fifty (50) hallas for each kilometer he crosses.
2. Free accommodation at Company housing if available or at
a contracted hotel.
3. In cases where neither Company accommodations nor
contracted hotels are available in the work assignment area,
employee shall be paid a daily accommodation allowance
according to his grade as follows:
Grades: 40-52 (SR 100)
Grades: 53-56 (SR 150)
Grades: 57-61 (SR 200)

4. Free meals shall be provided or pay him (SR 75) for each
night of stay.
9-3-1-3 In – Kingdom Work Assignments for Employees Working in
Remote Areas
If the employee's permanent workplace is located in a remote
area (50 km or more from the nearest city), the distance then
between his permanent residence city and the assignment
location shall be considered. If it is (100) km or more, he will be
compensated as per the appropriate rules for In – Kingdom Work
Assignments Costs Reimbursement at a distance of (100 -
200km).
9-3-2 In – Kingdom Training Assignments (Not More Than 180 Days)

9-3-2-1 Reimbursement of Training Assignments Expenses for the
First Thirty (30) Days during the Gregorian Year
First Case:
workplace, and the employee returns daily from the temporary
workplace to his permanent residence, he shall be compensated
as follows:
1. A means of transportation shall be provided or pay him for
the daily travel expenses (at a rate of fifty (50) hallas for each
kilometer he crosses by land).
2. A free meal shall be provided or pay him (SR25) as a meal
allowance.
Second Case:
workplace, and the employee can not return daily from the
temporary workplace to his permanent residence, he shall be
compensated as follows:
1. A means of transportation shall be provided or pay him the
travel costs for the assignment start and end (at a rate of fifty
(50) hallas for each kilometer he crosses by land).
2. Free accommodation at Company housing if available or at a
contracted hotel.
3. In cases where no Company accommodation nor contracted
hotels are available in the assignment area, employee shall be
paid a daily accommodation allowance according to his

grade, as follows:
Grades: 40-52 (SR 200)
Grades: 53-56 (SR 250)
Grades: 57-61 (SR 300)
4. Free meals shall be provided or pay him (SR 75) for each
night of stay.
Third Case:
workplace (and the employee stays at the assignment location),
the Company will provide the employee with:
1. Means of transportation or reimburse him for the
transportation expenses at the start and end of the assignment.
A) Issue of air tickets as per the employee's grade as shown
below:
Grades In-Kingdom
40-54 Economy
55-56 First Class
57-61 First Class
Note:
In case, an employee is assigned the duties of Department Manger or
higher, he shall receive for work and training assignments that happen
during his delegation period only the same class of air tickets as a
department manager or higher.
B) In- Kingdom assignments at a distance of (201) km or

more for which the employee travels by air, expenses of
land travel to airport shall be reimbursed as follows:
1. If the distance between the current workplace and the
airport of departure or between the airport of arrival
and the hotel is (100) km or less, employee shall
receive no compensation for the land travel, as it is
considered included in the daily allowance.
2. If the distance between the current workplace and the
airport of departure is more than (100) km, the
employee shall be compensated for the distance which
exceeds the first (100) km at a rate of fifty (50) hallas
for each kilometer of the surplus distance.
3. If the distance between the airport of arrival and the
hotel is more than (100) km, the employee shall be
compensated for the distance which exceeds the first

(100) km at a rate of fifty (50) hallas for each
kilometer of the surplus distance.
C) In- Kingdom assignments at (201) km distance or more
where air travel is available but the employee prefers to
travel by land, the employee in this case shall be
compensated for the due air ticket value (at the price
which the Company purchases) .
D) If air travel is not available at the start and end of the
assignment nor the Company provides a means of
transportation, employee then shall be compensated for
the distance he crosses by land at a rate of fifty (50)
hallas for each kilometer.
2. Employee shall have the option to choose between:

• To have a daily allowance to cover other expenses (A),
and reimburse the actual reasonable accommodation
costs. (Actual reasonable costs of accommodation means
that the employee uses a single room at one of the hotels
which gives discount to Company employees, provided
that payments to the employee: (daily allowance + hotel
accommodation costs) shall not exceed (the
comprehensive daily allowance).
• Or to receive a total allowance to cover expenses of
accommodation and other costs (B) as per (nights of stay)
according to the following table:
Grades Daily Allowance Daily Allowance Including
Group (A) Accommodation(B)
40-52 SR 300 SR 600
53-56 SR 350 SR 700
57-61 SR 400 SR 800
Note:
Daily allowance as per option (A) shall be paid in all cases to
cover the expenses of the last day of the assignment.
Fourth Case:
If the assignment location is (201) km or more a way from the
current workplace, and the employee has to return daily from the
temporary workplace to his permanent residence with (his
department's consent), compensation to him shall be restricted as

follows:
allowance.
9-3-2-2 Reimbursement of Training Assignments Expenses which

Exceed the First Thirty (30) Days during the Gregorian Year
(Assignment Location is (100) km or more from Current
Workplace)
Compensation will be made as follows:
First Case:
If the employee returns daily from the training assignment place
to his permanent residence, he shall be compensated as follows:
1. A means of transportation shall be provided for the daily
travel, or pay him for the daily travel expenses at a rate of
fifty (50) hallas for each kilometer he crosses by land.
allowance.
Second Case:
If the employee cannot return daily from the training assignment
place to his permanent residence, he shall be compensated as
follows:
1. A means of transportation shall be provided, or pay him the
travel costs for the assignment start and end at a rate of
fifty(50) hallas for each kilometer he crosses.
2. Free accommodation at Company housing if available or at a
contracted hotel.
3. In cases where no Company accommodation, nor contracted
hotels are available in the training assignment area, employee
shall be paid a daily accommodation allowance according to
his grade, as follows:
Grades: 40-52 (SR 100)
Grades: 53-56 (SR 150)
Grades: 57-61 (SR 200)
4. Free meals shall be provided or pay him (SR75) for each
night of stay.
9-3-2-3 In – Kingdom Training Assignments for Employees Working

in Remote Areas
If the employee's permanent workplace is located in a remote
area (50 km or more from the nearest city), the distance then
between his permanent residence city and the assignment
location shall be considered. If it is (100) km or more, he will be
compensated as per the appropriate rules for In – Kingdom
Training Assignments Expenses Reimbursement at a distance of
(100 - 200km).
9-3-2-4 In – Kingdom Training Assignments at A Distance of (50-99)

km
If the training assignment location is (50-99) km away from the
employee's permanent workplace, and the employee returns daily
from the training assignment place to his permanent residence at
a distance of (50-99 km), he shall be compensated as follows:
1. A means of transportation shall be provided or pay him for
the daily travel expenses (at a rate of fifty (50) hallas for
each kilometer he crosses by land).
allowance.
9-3-3 In-Kingdom Training Assignments (for More than 180 Days)

9-3-3-1 Reimbursement of In - Kingdom Training Assignments
Expenses at A Distance of (201)km or more for A Period
More than (6) Months
As for Saudi employees assigned to In – Kingdom training
assignments (for the purpose of re- qualification at the
Company's Training Centers according to a specific training
program duration of which is more than (180) consecutive days),
and its distance from the current workplace is (201)km and more,
employee will be compensated as follows:
A. Housing:
1. Free accommodation for the employee at assignment
location will be provided.
2. If the Company does not provide free accommodation to the
employee, he will be paid a daily housing allowance of
(SR100).
3. If the Company provides the employee with free housing

accommodation, but he does not want to use it, he then will
not be entitled to a housing allowance.
B. Reimbursement of Daily Expenses

Employee will be compensated with an amount of (SR75)
for each day of training assignment.
9-3-4 Out-of- Kingdom Work and Training Assignments (Not More

Than 60 Days)
9-3-4-1 Air Tickets
The Company shall provide the employee with air tickets to the
place of assignment as follows:
Grades Group Out - of- Kingdom
40-54 Economy
55-56 Business
57-61 First Class
Note:
1. When Business Class is not available (for grades: 55-56), First Class
shall be issued.
2. In case, an employee is assigned the duties of Department Manger or
higher, he shall receive for work and training assignments that happen
during his delegation period only the class of air tickets as department
managers or higher.
9-3-4-2 Compensation
Employee assigned to a Work or Training Assignment outside
the Kingdom for a period not exceeding (60) days shall be
allowed to choose one of the following choices:
• Employee will have a daily allowance to cover other

expenses (A) and reimburse him for the actual reasonable
accommodation costs, provided that such amount payable
for housing cost shall not exceed the amounts determined
for each country as per (Attachment no:1).If the
appropriate actual housing costs can not be substantiated
employee then shall be paid the housing allowance
specified for the country where the assignment takes place
as per (Attachment no:1).
• Or receive a total allowance to cover expenses of

accommodation and other costs (B), (as per nights of stay)
according to the following table:
Grades Daily Allowance Daily Allowance Including
Group (A) Accommodation(B)
40-52 SR 600 SR 800
53-56 SR 700 SR 1000
57-61 SR 800 SR 1200
Note:
Daily allowance will be paid in all cases to cover expenses of the
last day of the assignment.
9-3-4-3 Land Transport

Out – of- Kingdom assignments where the employee travels by
air, expenses of land travel to airport shall be reimbursed as
follows:
A) If the distance between the current workplace and the
airport of departure or between the airport of arrival and the
hotel is (100) km or less, employee shall receive no
compensation for the land travel, as it is considered
included in the daily allowance.
B) If the distance between the current workplace and the
airport of departure is more than (100) km, employee shall
be compensated for the distance which exceeds the first
(100) km at a rate of fifty (50) hallas for each kilometer of
the surplus distance.
C) If the distance between the airport of arrival and the hotel is
more than (100) km, employee shall be compensated for the
distance which exceeds the first (100) km at a rate of fifty
(50) hallas for each kilometer of the surplus distance.
D) Out –of– Kingdom assignments where air travel is available
but employee prefers to travel by land, the employee in this
case shall be compensated for the due air ticket value (at
the price which the Company purchases) .
9-3-5 In and Out– of- Kingdom One- Day Work and Training
Assignments (Without Staying Overnight)
As for In-Kingdom work and training assignments up to (201) km or
more form the current workplace, and Out-of- Kingdom work and
training assignments of unspecified distance between the current
workplace and the assignment location, which continues for one day
(without staying overnight there), employees (of all grades) shall be
paid an amount of one hundred fifty Saudi Riyal (SR150), to gather
with the prescribed daily allowance, to enable them cover additional
travel expenses.
9-3-6 Advance on Work and Training Assignments Expenses for In and

Out – of – Kingdom Locations
9-3-6-1 Advance on In - Kingdom Work and Training Assignment
Expenses for A Distance of (201) km or more and All Out-
of-Kingdom Work and Training Assignments
The Company shall provide the employee with a cash advance,
when requested, in order to enable him cover the expected
expenses during the work or training assignment as per the
following controls:
1. The distance between In- Kingdom work and training
assignment location and the current workplace shall not be
less than (201) km, and in Out – of - Kingdom work and
training assignments such distance shall be unspecified.
2. Employee is expected to stay at least for three (3) nights on
the work or training assignment site.
3. Advance payment shall be calculated as follows:
Nights of stay X comprehensive daily allowance (allowance
to cover accommodation costs and other expenses) + daily
allowance for the last day of the assignment, as per the
delegated employee's grade.
9-3-6-2 Advance on Expenses of In-Kingdom Work and Training

Assignments Which are (100-200) km Away from the
Current Workplace, if Employee Can not Return Daily to
Permanent Residence
The Company shall provide the employee with a cash advance,
when requested, in order to enable him cover the expected
expenses during the work or training assignment as per the
following controls:
1. Distance between work or training assignment location and

the current workplace shall be (100-200) km.
2. Employee is expected to stay at least for six (6) nights on the
work or training assignment site.
3. When neither a Company accommodation nor a contracted
hotel is available at the assignment site, and employee
secures accommodation for himself, he will be compensated
as follows:
Nights of stay X daily allowance (allowance to cover
accommodation costs) as per the delegated employee's grade
+ (food allowance (SR75) X nights of stay).
9-3-6-3 Settlement of Advance Account
Advance payment account shall be settled within fourteen (14)
days period from the date employee resumes duty.
9-4 Reimbursement of Supported Training Expenses

A. The Company will bear (80%) of the training program costs, with a
maximum limit of six thousands Saudi Riyals (SR6000).
B. Employee will bear (20%) of these costs.
C. Employee will be compensated for (the Company's percentage) when
he successfully completes the training program, by virtue of an official
receipt issued by the training party proving that the employee has fully
settled the program's costs.
9-5 Compensation of Permanent Transfer Expenses

9.5.1 Requirements for Permanent Transfer Expenses Reimbursement
A. Company initiates transfer for work requirements.
B. Transfer entails change of employee's residence. (Employee
should substantiate the change).
C. Distance between employee's normal workplace and the new
location shall not be less than (50) km, for employees transferred
between cities or governorates of the Kingdom.
D. Permanent transfer is approved by the employee's Business Unit
VP.
9.5.2 Amount of Permanent Transfer Expenses Reimbursement

A. The Company shall pay the (Saudi) employee two basic salaries
with a minimum limit of nine thousands Saudi Riyals (SR9000)
when permanently transferred on Company demand.
B. The Company shall pay the (expatriate) employee one basic salary
with a minimum limit of four thousands five hundred Saudi Riyals
(SR4500) when permanently transferred on Company demand.
9-6 Controls of Serving Meals by Company or Other Parties

9-6-1 Serving Meals to Guests form Outside the Company
1. Company shall cover costs of serving meals (breakfast, lunch and
dinner) to its guests from outside and their companions form its
employees without specifying the hospitality amount.
2. Approval authority for covering serving meals (breakfast, lunch
and dinner) to guests from outside the Company shall be entrusted
to SED and higher of the hosting party.
9-6-2 Serving Meals during Courses, Meetings, Symposiums,

Workshops, Conferences and Gatherings
When meals are served by the Company or one of its agents during
courses, meetings, symposiums, workshops, conferences and
gatherings which are held inside or outside the Company (locally or
abroad) with its participation , the following controls shall be
followed:
(A). Meals shall be free when served and no amount will be deducted
from the employee against the served meals.
(B). Light meals, tea and coffee will be free and no amount will be
deducted from Company employees.
9-6-3 Serving Lunch Meals during Safety Visits

When Company officials pay safety visits to sites and stations and the
situation requires serving a lunch meal, the following controls will be
followed:
(A). Costs will be paid from the inviting department's budget.
(B). Costs of the lunch meal in one visit shall not exceed (SR2000).
(C). Approval for serving the lunch meal will be within the
authorities of SED, Operating Area in his capacity as Head of the
Safety Committee.
9-6-4 Serving Lunch Meals During Work Visits

When any of the Company officials (VP and higher) pays a tour visit
to any of the work sites (50 km) or more away form his permanent
work place ( whether the visit is made within the same boniness unit
or to another one) and the situation requires serving a lunch meal, the
following controls will be followed:
(A). Costs will be paid from the inviting department's budget.
(B). Costs of the lunch meal in one visit shall not exceed (SR1000).
(C). Approval for serving the lunch meal will be within the
authorities of S/EVP, of the hosting Business Unit.
9-7 Air Tickets Compensation to Expatriate Employees

Expatriate employee (including the guardian employee" Muhram") and
his eligible family members (wife and children below nineteen (19)
Gregorian years old) is eligible for up to four (4) air tickets ( each
Gregorian year) when he takes his annual vacation and in case of
recruitment and end of service. (No duplication of air tickets will be made
in case both spouses work for the Company) as per the following:
9-7-1 Eligible Family Members

Eligible family members to air tickets cover (the wife/ wives,
children) who are brought to the Kingdom through the Company by
virtue of a residence visa or those who hold a valid residence permit
and sponsored by the Company or the employee (but does not include
those brought to the Kingdom otherwise).
9-7-2 Distribution of Air tickets

Up to (4) air tickets as a total in maximum to the employee and his
eligible family members (wife(s) and children below the age of (19)
years old as per the Gregorian calendar). See Attachment no: (2).
9-7-3 Cases in Which Air Tickets are Issued

A. Recruitment
The Company shall issue the expatriate employee and his eligible
family members (one – way air tickets only) (distributed as per
Paragraph no: 9-7-2 above) who are brought to the Kingdom from
his country of origin by virtue of a residence visa.
B. Annual Vacation
The Company shall provide the expatriate employee and his
eligible dependents (return air tickets) once during the Gregorian
year (distributed as per Paragraph no: 9-7-2 above).
C. End of Service
The Company shall provide the expatriate employee and his
eligible dependents (one way air tickets) (distributed as per
Paragraph no: 9-7-2 above). The Company shall not provide air
tickets to the employee and/or his eligible dependents if his
service with the Company ends and he chooses for any reason to
stay in the Kingdom.
9-7-4 Eligibility
9-7-4-1 Air Travel
Air travel will be made from the air port nearest to the city where
the employee works in the Kingdom to the country of origin.
(nearest air port to the city stated in the work contract).
Country of origin means (country) of the expatriate employee.
As for the air port nearest to the city stated in the employment
contract, it differs according to the contracts concluded with the
expatriate employees; some of them state as follows:
• City of origin where the employee permanently resides.
• City of employment where employment was made with
employee.
• Capital of the employee's country of origin.
In the above cases the same procedure will be continued as
agreed with employee (the place to which he is normally
delivered at the present time) as stated in his work contract. With
regard to new contracts that will be concluded with expatriate
employees with effect from 1/1/2007, City of Origin is indicated
within the contract's text to be signed by the concerned
(expatriate) employee, as shown in the contract copy attached to
this Manual.
Examples on Travel form the Air Port Nearest to the City
Where the Employee Works in the Kingdom (When he takes
his annual vacation, upon recruitment or end of service):
First Example:
Case: An employee works in (Trubah Governorate), Western
Region where no air port is available in the city and the nearest
domestic airport is in (Taif) about (170 Km) away from there. He
will leave from that airport to the nearest international air port in
(Jeddah), then to his country of origin.
Compensation:
1. Employee will be compensated for the (70 km) surplus to the
first (100km) as per the (applicable policy) at a rate of (50
Hallals) for each kilometer he crosses by land from his work
place (Trubah) to the nearest domestic air port (Taif). This
makes an amount of (SR35) only. When he returns he will be
compensated in the same way.
2. Employee will also be provided with a domestic return air
ticket(s) or compensate him for its cash value from the nearest
domestic air port (Taif) to the international airport in Jeddah.
3. Also employee will be provided with (return air) ticket (s)
from Jeddah International Airport to his country of origin or
compensate him for its value.
Second Example:
Case: An employee works in (Al-Kharj) city where no airport is
available and it is away from the nearest domestic and
international airport (Riyadh) by about (80 km), from where the
employee can leave to his country of origin.
Compensation:
1. Employee will not be compensated for the land travel
between (Al-Kharj) and (Riyadh) as the distance between
those two cities is less than (100 Km) as per the applicable
policy.
2. Employee will be provided with return air ticket(s) form
Riyadh International Airport to his country of origin or
compensate him for its value from.
Third Example:
Case: An employee works in (Al-Qurayat) Governorate in the
northern part of the Kingdom. In that area there is a domestic
airport and the nearest International Airport inside the Kingdom
is in (Riyadh or Jeddah).
Compensation:
1. Employee will be provided with (return) domestic air ticket(s)
from the nearest airport (Al-Qurayat) to the International
Airport( Riyadh or Jeddah).
2. Employee will also be provided with (return) air ticket(s)
from (Riyadh or Jeddah) airport to his country of origin or
compensate him for its value.
9-7-4-2 Land Travel

If the distance between the city where employee works and the
nearest departure airport in the Kingdom is more than (100Km),
he and his family will be compensated for the distance that
exceeds (100km) at a rate of (50 Hallalas) for each kilometer he
and his family cross in their departure and return travels as
follows:
Compensation for Land
People Travel by Land
Travels
Employee travels alone
Employee travels with all his family He will be compensated at a
members rate of (50) Hallalas for each
If part of the family members travel kilometer he crosses more than
regardless of their number the (100Km) distance specified
If one of the employee's family member in the applicable policy.
travels
9-7-4-3 Cash Compensation

1. If the employee or his family or both of them wants to spend
his annual vacation in the Kingdom, he will be then
compensated for the air tickets value.
2. If the employee or his family or both of them wants to travel
by land or sea or by their own way (through another agent or
carrier for example), he will be in this case compensated for
the air tickets value.
3. Air tickets value (referred to in items no: 1& 2 above): in
January of each Gregorian year, the lowest price of air
tickets will be determined for all months of the Gregorian
year. Accordingly, employee or his eligible family members

will be compensated for the air tickets at the lowest price
when he takes his annual vacation and requests
compensation for air tickets at any time of the year. Such
prices shall not include any taxes or any additional fees.
9-7-4-4 Class of Air Tickets

Class of air tickets (referred to in item no: 9-7-4-1 above- "Air
Travel") will be the lowest cost economy class. (Company will
bear the air ticket price along with fees added to its value).
9-7-4-5 Leave Duration

Issue of air ticket(s) or payment of its value to employee and his
family members and issue of Exit& Re- entry visa to employee
only will be subject to employee's taking a vacation of (14) days
or more from his annual leave balance.
9-7-5 Cases in Which Company Does Not Issue Air tickets

The Company shall not issue air tickets to expatriate employee and his
eligible dependents in any of the following cases:
1. When the Company engages the expatriate employee via local
change of sponsorship.
2. When the Company re-hires the expatriate employee locally with a
new employment contract and the employee got before return air
tickets for the same Gregorian year under his previous work
agreement.
9-8 Eligibility of Air Tickets to Family Members of Expatriate

Employee Whose Grade is Below (47)
9-8-1 If the family members of the expatriate employee whose grade is
below (47) were brought to the Kingdom by any of the previous
Companies (before 1/1/2003) and the employee used to get air ticket
for his family members, the Company shall continue to issue such air
tickets to his eligible family members as per the applicable policy until
the end of his service with the Company.
9-8-2 If he employee used not to get air tickets for his family members and
that he got the Company's agreement to bring them to the Kingdom at
his own expense after he had made an undertaking that he will not ask
for air tickets for his family members and he is still below grade (47),
the Company in such a case will not provide air tickets to his family
members.
9-8-3 When the employee referred to in (section no:9-8-2 above) is

promoted to grade (47) and he wants to have air tickets to his family
members, he should then apply for adjustment to his status so that his
family can be eligible for air tickets as per the applicable policy.
9-8-4 If the employee's family (wife and children) is sponsored by another

party for whom the wife woks, family members then will not be
eligible for air tickets which the Company issues to its employees.
9-9 Expatriate Employees' Fees for Passports, Work Permits,

Residence Permits and Transfer of Sponsorship to
Company
Type of Fee Employee Eligible Dependents
1 Issue/ renewal of residence permit Company expense Employee expense

2 Issue/ renewal of work permit Company expense Not applicable
Exit& Re-entry visas (once a year
3 when the employee takes air Company expense Employee expense
tickets to have his annual leave )
4 Passport issue / renewal Employee expense Employee expense
5 Sponsorship transfer to Company Company expense Not applicable
9-10 Reimbursement of Expatriate Employee's Personal Effects

Shipment Costs
The Company shall reimburse the expatriate employee (upon employment
and end of service) the costs he incurs for shipment of excess baggage up
to fifty (50) kilos by non – accompanying air cargo or equivalent in value
if he chooses to ship his effects in another way.
In case of expatriate employee's death, the Company shall arrange

shipment of his personal and domestic belongings up to one hundred (100)
kilos by non- accompanying air cargo or the equivalent in value, by any
other means of shipment.
9-11 Mobile Telephone Expenses Reimbursement

The Company will reimburse the employee whose job requires the use of
his personal mobile telephone in the course of carrying out the
Company’s business by granting him a flat rate of two hundred Saudi
Riyals (SR 200) per month to cover all expenses incurred.
The Company will modify this amount in the light of changes introduced
to Mobile Telephone charges.
9-12 Drivers License Expenses Reimbursement

The Company will reimburse the employee the cost of driver's medium
cars and equipment license (public), and cost of driver's license
insurance, if his job requires the use and operation of Company vehicles
or equipment. Employee shall bear expenses for the light (private)
driver's license. The Company may help him in producing such license if
his job requires that.
9-13 Compensating Company Engineers ( Saudis & non-

Saudis)for Membership Fees to Saudi Association of
Engineers
The company shall bear half of the membership fees of its engineers(
Saudi and non- Saudis) payable to the Saudi Association of Engineers
and the concerned engineer will bear the second half of the said fees.
Chapter (9)
Attachment no: (1): Housing Allowance as per Country in case of Work&
Training Assignments outside the Kingdom for a Period not More than (60)
Days
Housing Allowance As Per Grade

Country
40-52 53-56 57-61
Argentina 800 900 1000
Emirates (UAE) 650 750 850
Jordan 400 400 500
Spain 1000 1100 1200
Australia 550 650 750
Germany 650 750 850
America (USA) 850 950 1050
Indonesia 400 500 600
Ireland 400 500 600
Italy 1200 1300 1400
Bahrain 400 500 600
Brazil 400 450 550
Britain (UK) 1300 1400 1500
Belgium 850 950 1050
Poland 400 500 600
Thailand 450 550 650
Turkey 600 700 800
Czechoslovakia 650 750 850
South Africa 400 500 600
Denmark 700 800 900
Russia 1550 1650 1750
Singapore 550 650 750
Syria 400 400 500
Sweden 950 1050 1150
Switzerland 800 900 1000
China 700 800 900
Oman 700 800 900
France 1000 1100 1200
Philippines 400 400 500
Cyprus 600 700 800
Qatar 800 900 1000
Canada 500 600 700
South Korea 900 1000 1100
Kuwait 650 750 850
Lebanon 400 450 550
Egypt 400 400 500
Page 1 of 2
Housing Allowance As Per Grade
Country
40-52 53-56 57-61
Morocco 600 700 800
Malaysia 400 400 400
Mauritius 550 650 750
Monaco 950 1050 1150
New Zealand 500 600 700
Austria 650 750 850
India 600 700 800
Holland 800 900 1000
Japan 600 700 800
Greece 600 700 800
Page 2 of 2
Chapter: (9)
Attachment no:(2) Rules of Eligibility to Air Tickets for Expatriate Employees
Distribution of Air
S.N Example Eligible Persons
Tickets
1 An employee works for the Employee Full Air Ticket
Company and therefore eligible Son or daughter (15) Full Air Ticket
to air tickets for him self and his years old. (eligible)*
family members as per the Son or daughter (13) Full Air Ticket
appropriate policy. His wife is years old. (eligible)*
not sponsored by the Company as Son or daughter (12) Full Air Ticket
she works and sponsored by years old. (eligible)*
another party. He has three * Eligible: Issue of air tickets is subject to
children. children being sponsored by their father who
works for the Company.
2 A lady works for the Company The lady (employee) Full Air Ticket
and therefore is eligible to air Son or daughter (12) Full Air Ticket
tickets for her self and her family years old. (eligible)*
as per the appropriate policy. Her Son or daughter (9) *(Eligible) Air Ticket,
husband is not sponsored by the years old. as per the appropriate
Company as he works and policy (75%) for the
sponsored by another party. The (9) years old child.
lady has (3) children (12,9 and 1 Son or daughter (1) *(Eligible) Air Ticket,
year old). year old. as per the appropriate
policy (10%) for the
(1) year old child.
* Eligible: Issue of air tickets is subject to
children being sponsored by their mother who
works for the Company.
Company and therefore is First wife Full Air Ticket
eligible to air tickets for him self Second wife Full Air Ticket
and his family as per the Son or daughter (17) Full Air Ticket
appropriate policy. The employee years old.
has (2) wives and (1) son (17)
years old.
Page 1 of 2
Distribution of Air
S.N Example Eligible Persons
Tickets
Company and therefore is eligible Wife Full Air Ticket
to air tickets for him self and his Son or daughter (8) Air Ticket, as per the
family as per the appropriate years old. appropriate policy,
policy. The employee has a wife (75%) for the (8) years
and (3) children (8, 6 and 1) years old child.
old. Son or daughter (6) Air Ticket, as per the
years old. appropriate policy,
(75%) for the (6) years
old child.
Son or daughter (1) Air Ticket, as per the
year old. appropriate policy,
(10%) for the (1) year
old child (Illegible).
Naturally, the employee will request (4) air
tickets: for himself, his wife, and the eldest
children. The infant (no:5 in the family serial
order) will be illegible for an air ticket, as the
policy determines (4) air tickets as a maximum
number.
Company and therefore is eligible Wife Full Air Ticket
to air tickets for him self and his Son or daughter (11) Air Ticket, as per the
family as per the appropriate years old. appropriate policy,
policy. The employee has a wife (75%) for the (11) years
and (1) child (11) years old. old child.
It is to be noted that employee does not use the
allowed maximum number of air tickets(4), but
he gets air tickets for all his family members
staying with him in the Kingdom.
Air tickets Eligibility:
In all the above cases and the similar ones, air tickets will be issued only to eligible family
members who hold (a valid residence permit and sponsored by the Company or the
employee). The Company shall in case whatsoever bear any difference in air tickets prices
if he employee's family due to special circumstances stays for long period outside the
Kingdom.
Page 2 of 2
Clarifications on In – Kingdom and Out –of- Kingdom Work & Training
Assignments
Date of Implementation 1/7/2008 Page 1 of 16

Recording Travel Time for In – Kingdom Work & Training Assignments at
(201Km) or More Away form the Current Work Place
Employee may leave early at the middle of the work day preceding the assignment if he satisfies the following requirements:
1. Work or training assignment is in kingdom at a distance of (201Km) or more from the current work place.
2. Assignment requires staying over night at its location in the night preceding start of the assignment.
3. Travel for assignment is made during the work days.

In – Kingdom Work & Training Assignments (201Km) or More Away From the
Current Work Place
Duration of Arrival at Staying Leaving Compensation Compensating Travel Expenses
Assignment Assignment Overnight at Assignment Travel by Air Travel by Land
Location (when Work Location Location (when
compensation compensation
starts) ends)
One day Day of assignment Without staying Day of assignment Daily allowance (as Air ticket ( as per A. In case air travel
overnight* per grade) + appropriate policy) is available and
(SR150) (for all Air ticket as per employee chooses to
grades) to cover policy travel by land he
expenses incurred by will be compensated
employee as an for the due air ticket
additional value ( as per the
compensation for price air ticket
transport. purchased by the
One day One day before Staying overnight Day of assignment Comprehensive Company)
assignment starts one night before day allowance ( as per b. If air travel is not
of assignment** allowance) + daily available at the
allowance for the assignment start and
day of assignment end and Company
More than one day One day before Staying overnight Last day of Comprehensive does not provide a
assignment starts one night before assignment allowance ( as per means of transport,
assignment starts grade) according to employee will be
nights spent there + compensated at a
daily allowance for rate of 50 hallals for
last day of each km he crosses
assignment by land.
* If work or training assignment starts at a late time of the day( and there is enough time for travel in that day) as determined by the man of authority who
approves the assignment.
** If work or training assignment starts at an early time of the day or there are no travel reservations at the same day, as determined by the man of authority who

Recording Travel Time for out- of-Kingdom Work & Training Assignments
If employee's travel for ( out –of- Kingdom work or training assignments) falls during work days, he will be entitled to have
paid days for travel both before and after the assignment to be determined as per the assignment location, as follows:
Area Days Assigned for Travel

Departure Return
Counties of North/ South Two days Two days
Americas and the Far East:
(Brunei, Cambodia, China,
Hong Kong, Indonesia, Japan,
Malaysia, Laos, Korea,
Philippines, Singapore,
Thailand, Vietnam, Australia,
New Zealand)
Rest of the world: One day One day
If location of the (out –of- Half day Half day
kingdom) assignment is less
than (100km) from the
employee's current work place

Out – of - Kingdom Work & Training Assignments Less Than (100Km) From the
Current Work Place
starts) ends)
(SR150) (for all employee chooses to
grades) to cover travel by land he
One day One day before Staying overnight Day of assignment Daily allowance ( as Company)
assignment starts one night before day per grade) plus b. If air travel is not
of assignment** compensation for the available at the
housing real, assignment start and
reasonable expenses( end and Company
as per grade) + daily does not provide a
allowance for day of means of transport,
assignment employee will be
OR compensated at a
Comprehensive rate of 50 hallals for
allowance ( as per each km he crosses
grade) for nights by land.
spent there + daily
allowance for the
last day of
assignment

starts) ends)
More than one day One day before Staying overnight Last day of Daily allowance ( as Air ticket ( as per A. In case air travel
assignment starts one night before assignment per grade) plus appropriate policy) is available and
assignment starts compensation for the employee chooses to
housing real, travel by land he
reasonable expenses( will be compensated
as per grade) for for the due air ticket
nights spent there + value ( as per the
daily allowance for price air ticket
the last day of purchased by the
assignment Company)
OR b. If air travel is not
Comprehensive available at the
allowance ( as per assignment start and
grade) for nights end and Company
spent there + daily does not provide a
allowance for the means of transport,
last day of employee will be
assignment compensated at a
rate of 50 hallals for
each km he crosses
by land

Out – of - Kingdom Work & Training Assignments (100Km) or More From the
Current Work Place
starts) ends)
(SR150) (for all employee chooses to
grades) to cover travel by land he
One day One day before Staying overnight Day of assignment Daily allowance ( as Company)
assignment starts one night before day per grade) plus b. If air travel is not
of assignment** compensation for the available at the
housing real, assignment start and
reasonable expenses( end and Company
as per grade) + daily does not provide a
allowance for day of means of transport,
assignment employee will be
OR compensated at a
Comprehensive rate of 50 hallals for
allowance ( as per each km he crosses
grade) for nights by land.
spent there + daily
allowance for the
last day of
assignment

starts) ends)
More than one day One day before Staying overnight Last day of Daily allowance ( as Air ticket ( as per A. In case air travel
assignment starts one night before assignment per grade) plus appropriate policy) is available and
assignment starts compensation for the employee chooses to
housing real, travel by land he
reasonable expenses( will be compensated
as per grade) for for the due air ticket
nights spent there + value ( as per the
daily allowance for price air ticket
the last day of purchased by the
assignment Company)
OR b. If air travel is not
Comprehensive available at the
allowance ( as per assignment start and
grade) for nights end and Company
spent there + daily does not provide a
allowance for the means of transport,
last day of employee will be
assignment compensated at a
rate of 50 hallals for
each km he crosses
by land

Example (1) – Recoding Travel Time and Compensation When In- Kingdom Work
& Training Assignments are Held at (201Km) or More From the Current Work
Place
An employee at grade (52) and his current work place is at al-Jubeil and he is assigned to attend a one –day meeting (Sunday-
11/5/2008) at al-Ihssa region. The meeting will start at (11 AM). His assignment will be treated as follows:
Travel Time: employee has enough time to travel from al-Jubeil Region to al-Ihssa region in the same day (Sunday), since the
meeting will be held at a late time.
Compensation: employee will be compensated as follows:

Duration of Assignment Arrival at Assignment Staying Overnight at Leaving Assignment Compensation
compensation starts) compensation ends)
One day Sunday Without saying Sunday Daily allowance
overnight (SR300) + additional
compensation for
transport (SR150)
= SR450
Work assignment will be recorded in the "Work / Development Assignment Permit" form as follows:
Travel Day: Arrival at Assignment When Assignment Starts: Nights Spent at the Assignment Location:
Location:
11/5/2008
11/5/2008 11/5/2008
Date When Assignment Leaving Assignment When Coming Back None
End s: Location: From Assignment :
11/5/2008 11/5/2008
11/5/2008

Place
An employee at grade (50) and his current work place is at al-Jubeil and he is assigned to attend a one –day meeting (Tuesday-
6/5/2008) at al-Ihssa region. The meeting will start at (8 AM). His assignment will be treated as follows:
Travel Time: as the meeting will be held early, employee does not have time to travel to assignment location in the same day
(Tuesday). Employee in this case will be allowed to leave early at the middle of Monday (5/5/2008) working hours.
One day Monday One night Tuesday Compressive allowance
(Monday evening) (SR600) +Daily
allowance for the
assignment's last day
(SR300) = (SR900)
Location:
5/5/2008
5/5/2008 6/5/2008 1
Date When Assignment Leaving Assignment When Coming Back
End s: Location: From Assignment :
6/5/2008 6/5/2008
6/5/2008

Place
An employee at grade (53) and his current work place is at Riyadh, and he is assigned to attend a (3) day training assignment at
Jeddah from Monday (9/6/2008) to Wednesday ((11/6/2008). His assignment will be treated as follows:
Travel Time: as the meeting will be held early, employee does not have time to travel to assignment location in the same day
(Tuesday). Employee will be allowed to leave early at the middle of Sunday (8/6/2008) working hours.
Three days Sunday Three nights ( evenings Wednesday Compressive allowance
of Sunday, Monday and (SR700) x nights spent
Tuesday) there (3) + Daily
allowance for the
(SR350) = (SR2450)
Location:
8/6/2008
8/6/2008 9/6/2008 3
Date When Assignment Leaving Assignment When Coming Back from
Ends: Location: Assignment :
11/6/2008
11/6/2008
11/6/2008

Example (4) – Recoding Travel Time and Compensation When Out –of - Kingdom
Work & Training Assignments are Held at (201Km) or More From the Current
Work Place
An employee at grade (51) and his current work place is at Damamm. He is assigned to attend a (1) day work assignment
(Sunday) 13/7/2008 at Bahrain. His assignment will be treated as follows:
Travel Time: employee will be allowed to leave early at the middle of Saturday (12/7/2008) working hours.
One day Saturday One night Sunday Housing allowance
(Saturday evening) (SR400) +daily
allowance (SR600) +
Daily allowance for the
(SR600) = (SR1600)
Location:
12/7/2008
12/7/2008 13/7/2008 1
13/7/2008
13/7/2008
13/7/2008

Work Place
An employee at grade (51) and his current work place is at Damamm. He is assigned to attend a (3) day training assignment
from Tuesday (27/5/2008) to Thursday (29/5/2008) at Bahrain. His assignment will be treated as follows:
Travel Time: employee will be allowed to leave early at the middle of Monday (26/5/2008) working hours.
Three days Tuesday Three nights Thursday Housing allowance
(Evenings of Monday, (SR400) +daily
Tuesday and allowance (SR600) x
Wednesday) nights spent there (3) +
Daily allowance for the
(SR600) = (SR3600)
Location:
26/5/2008
26/5/2008 27/5/2008 3
29/5/2008
29/5/2008
29/5/2008

Work Place
An employee at grade (54) and his current work place is at Riyadh. He is assigned to attend a (5) day training assignment from
Sunday (13/7/2008) to Thursday (17/7/2008) at UAE. His assignment will be treated as follows:
Travel Time: employee will be allowed to have Thursday (12/7/2008) as a paid travel day.
Five days Saturday Six nights Friday Housing allowance
(Evenings of Saturday, (SR750) +daily
Sunday, Monday, allowance (SR700) x
Tuesday, Wednesday nights spent there (6) +
and Thursday) Daily allowance for the
(SR700) = (SR9400)
Location:
12/7/2008
12/7/2008 13/7/2008 6
18/7/2008
17/7/2008
18/7/2008

Work Place
An employee at grade (57) and his current work place is at Riyadh. He is assigned to attend a (5) day training assignment from
Monday (5/5/2008) to Friday (9/5/2008) at USA. His assignment will be treated as follows:
Travel Time: employee will be allowed to have Saturday and Sunday (3-4/5/2008) as a paid travel days.
Five days Sunday Six nights Saturday Housing allowance
(Evenings of Sunday, (SR1050) +daily
Monday, Tuesday, allowance (SR800) x
Wednesday, Thursday nights spent there (6) +
and Friday) Daily allowance for the
(SR800) = (SR11900)
Location:
3/5/2008
4/5/2008 5/5/2008 6
11/5/2008
9/5/2008
10/5/2008

Chapter 10: Work Relations
Table of Contents
Paragraph Subject
10-2 Company Obligations
10-3 Employee Responsibility
10-4 Grievance Procedures
10-4-1 Policy
10-4-2 Grievance Procedures
10-4-3 Clarification on Route of Grievance Procedures
10-5 Violations and Penalties
10-5-1 Policy
10-5-2 Penalties that May Be Imposed On Employee
10-6 Conflict of Interest Policy
10-6-1 Policy
10-6-2 Cases of Conflict of Interest
Procedures for Obtaining Commercial Registration or
10-7
Profession License
10-7-1 Policy
10-7-2 Committee Formation
10-7-3 Decisions of Committees
10-8 Prevention and Safety
10-9 Work Injuries and Occupational Diseases
10-10 HealthCare

It is the Company’s policy to establish and maintain a climate
favourable to the development of harmonious and effective
relationships between the Company and its employees, and amongst
employees themselves at all levels. Towards this end, the Company
shall establish a sound system of communications between itself and
its employees to promote good understanding by employees of its
objectives, policies and procedures. To assist in the implementation
of this policy, the Company has established procedures for handling
of disciplinary infractions through corrective guidance and dealing
with employee grievances.
10-2 Company Obligations

A. The Company shall treat its employees nicely in a way that shows
its concern in their affairs and interests. It also shall refrain form
any remarks or actions that degrade their religion or dignity.
B. The Company shall give employees time to exercise their rights in
accordance with its Organizational Chart without any influence on
wages.
C. The Company shall facilitate all missions of competent official
agencies representatives relating to inspecting, controlling or
overseeing the proper implementation of Labor regulations and
any rules issued there from. The Company shall also provide all
information necessary for those agencies to perform their duties
and responsibilities.
D. The Company shall pay employee his wage at the time and place
prescribed in the contract or by customs. In all cases, proper
attention shall be given to respective rules.
E. If the employee reports to duty in the daily period prescribed by
the employment agreement or indicates readiness to assume duty
within the said time, he shall be paid for that day, if he is
prevented from performing duty by a reason attributable to the
Company only.
F. The Company, its agent or any other authorized person shall
practice strict control over employees to prevent them from
bringing in to workplaces any materials prohibited from religious
or legal point of views ( as per the rules prevailing in KSA.). If
such material is found with any employee, he will be subject to
strict disciplinary actions as stated in the Violations & Penalties

Table, together with the religious (Shariaa) punishments.
10-3 Employee Responsibility

Employee should observe the following:
A. Employee shall behave properly at workplace or in public.
B. Employee will treat all persons with whom he transacts business
in a courteous manner.
C. Employee shall commit and dedicate his full time and attention to
fulfilling the duties of his job and carry out the supervisors’
directions precisely and faithfully in accordance with the
established policies and procedures.
D. Employee should use designated safety procedures and
equipment and follow safety instructions to protect his life and
avoid accidents.
E. Employee shall maintain and use Company equipment, vehicles,
tools and facilities for the sole purpose of doing the Company’s
business.
F. Employee will be responsible for his own actions and behaviours,
and the supervisor will be responsible for the efficiency of
operations within the scope of his responsibility.
G. Employee should comply with established work schedules and
attendance timings and not absent himself without permission or
justifiable reasons.
It is also absolutely prohibited for the employee to commit any of
these acts:
A. Misuse authority.
B. Influence or interfere with the progress of others' work except
within the scope of his authority.
C. Accept gifts, gratuities or bribes directly or indirectly.
D. Disclose secrets that he had access to by his job nature even after
leaving service with the Company.
E. Accept other work or employment without approval of the
Company.
F. Managers and supervisors use of their subordinates to discharge
services not related to Company business for their own interests.
G. Keep any business document or copy outside the workplace.
H. Give any speech or information to newspapers or media or deliver

lectures or write articles on Company business without its prior
consent.
I. Practice any type of professional or commercial activity without
the Company consent.
10-4 Grievance
10-4-1 Policy
Without any prejudice to employee's right to complain to
competent Labor Office or Labor Disputes Settlement
Commissions, employee may complain against any action or
procedure taken against him in accordance with Articles no: (70
&71) of the Chapter (13) of the Company's Organizations Chart.
10-4-2 Grievance Procedures

(A). If the grievant employee belongs to any of the Company
departs/ divisions he should follow these procedures:
1. Any employee may, within one week of knowing
about any action or procedure taken against him,
present a written grievance to his immediate
supervisor seeking consideration under the
Company’s grievance procedures. The supervisor will
review the grievance, discuss it with the employee
concerned, and endeavor to effect a satisfactory
solution within three (3) working days. If the
supervisor succeeds in finding a suitable solution
acceptable to the employee within the said period at
maximum from the date of submitting the grievance,
he will then prepare a written report, to be signed by
both parties, of his findings and the outcome of the
discussions with the employee.
2. If a satisfactory solution is not reached within this
period, the employee's immediate supervisor shall
refer the matter to the next level of supervision. The
next level of supervision will hear the employee's
grievance, review its circumstances and furnish a
reply to the employee, to be signed by both parties,
within a period of three (3) working days from the

date the grievance was referred to him.
3. If the decision under the second step is not acceptable
to the employee, the second level supervisor will refer
the matter to the third level of supervision, who will
review the case and consult with the regional HR
Services Dep. and meet with the employee concerned.
He will render a decision within a period of three (3)
working days from the date the grievance was referred
to this level. Decision shall be signed by both parties.
4. If the employee is not satisfied with the decisions
taken so far his supervisor will refer the grievance to
the next level of supervision. This level of supervision
will review the grievance with the employee and the
third level of supervision and try to resolve the
grievance within four (4) working days from receiving
the case. Finally decision reached shall be signed by
both parties.
5. If the employee does not accept the decision of the
fourth level of supervision, he may request referral of
the grievance to the Grievance Committee which is
composed of:
• The regional Manager of HR Services Department
at the employee's operating area (Head)
• Employee's Department Manager (member)
• The regional Legal Department/Division (member)
at the operating area where the employee works.
This committee will look in to the case, discuss it with the
employee, and give its recommendation, by majority, to
the respective party within five (5) working days from the
date of receipt. Then such recommendations shall be
raised to the employee's Sector ED. Employee's Sector ED
will issue the final Company decision within two (2)
working days of receiving recommendations of the
grievance committee.
(B). If the grievant employee is directly supervised by the
respective Sector ED, grievance then will be raised to the
Sector ED who will review the case and discuss it with the
employee. A decision will be made and reported to the
employee within ten (10) working days from date of
grievance. If such result is not accepted by the employee,

the case will be referred to the Business Unit VP who will
meet the employee and discuss the case with him. Finally
a decision regarding the grievance will be made within ten
(10) working days from date of submitting the grievance.
(C). If the grievant employee is directly supervised by Business
Unit VP, grievance then will be raised to the Business
Unit VP who will review the grievance and discuss it with
the employee. The a decision will be made and reported to
employee within a period of ten (10) working days from
date of submitting the grievance. If such result is not
accepted by employee, the case will be referred to the
President& CEO who will meet the grievant employee and
discuss the case with him. Appropriate decision will be
issued within a period of ten (10) days from date of
submitting the grievance.
(D). If the grievant employee is directly supervised by the
President & CEO, grievance will be raised to the President
&CEO who will review the case and discuss it with
employee. Appropriate decision will be issued within a
period of twenty (20) days from date of submitting the
grievance.
(E). If the employee belongs to one of the Company's
departments/ divisions, such manager will advise the
grievant employee of the final decision within a period not
exceeding one working day from date of receiving such
final decision form the respective Sector ED, to whom the
employee belongs. But if the direct supervisor for the
grievant employee is Sector ED, such Sector ED will
advise the employee of the decision made by the Business
Unit VP not later than one day from date of receiving the
final result reached by the Business Unit VP to whom the
employee belongs.
(F). In case grievant employee reports to Business Unit VP,
such Business Unit VP will advise the employee of the
decision made by the President & CEO not later than one
working day from date of receiving the final decision from
the President & CEO. When the direct supervisor for the
grievant employee is the President & CEO, the President
& CEO himself will advise the grievant employee of the

decision made by him within a period of twenty (20)
working days from date of receiving the grievance.
10-4-3 Clarification on Route of Grievance Procedures

Level of
1st Step 2nd Step 3rd Step 4th Step 5th Step 6th Step 7th Step
Grievant
Employee's Submit Submit Submit Submit Submit Submit Report
Direct grievance grievance grievance grievance grievance grievance Final
Supervisor: to Unit to Section to Division to Dept to to Sector Decision
Unit Supervisor Head Manager Manager Competent ED to
Supervisor (1) (2) (3) (4) Committee (5) Employee
(5) (E)
Employee's Submit Submit Submit Submit Submit Report
Direct grievance grievance grievance grievance grievance Final
Supervisor: to Section to Division to Dept to to Sector Decision
Section Head Manager Manager Competent ED to
Head (2) (3) (4) Committee (5) Employee
(5) (E)
Employee's Submit Submit Submit Submit Report
Direct grievance grievance grievance grievance Final
Supervisor: to Division to Dept to to Sector Decision to
Division Manager Manager Competent ED Employee
Manager (3) (4) Committee (5) (E)
(5)
Employee's Submit Submit Submit Report
Direct grievance grievance grievance Final
Supervisor: to Dept to to Sector Decision to
Department Manager Competent ED Employee
Manager (4) Committee (5) (E)
(5)
Employee's Submit Submit Report
Direct grievance grievance Final
Supervisor: to Sector to Decision to
Sector ED ED Business Employee
(5) Unit VP (E)
(B)
Employee's Submit Submit Report
Direct grievance grievance Final
Supervisor: to to Decision to
Business Business President Employee
Unit VP Unit VP &CEO (E)
(C) (C)
Employee's Submit Report

Direct grievance Final
Supervisor: to Decision to
President President Employee
&CEO &CEO (E)
(D)
• Refer to the explanation shown in paragraph no. (10-4-2) in this manual for each of the items as per
the letters or numbers indicated before it.
• Time given for each functional level should be observed and time allocated for each item should be
complied with.
10-5 Violations & Penalties

10-5-1 Policy
Committing any of the acts stated in the Violations & Penalties
Table annexed to Rewards & Penalties Chart shall be considered a
violation, which deserves penalty.
10-5-2 Penalties That May Be Imposed On Employee

(A). Caution: it is a verbal or written reminder drawing the
employee's attention to the violation he committed and
asking him to observe Company regulations related to job
performance and that such behavior should not be repeated
by him in the future.
(B). Written Notice: it is a written reminder served by the
Company to the employee drawing his attention to the
violation he committed and the possibility of facing a
stronger action if such violation is continued or repeated in
the future.
(C). Termination of Service with Benefits: it is the justifiable
termination of an employee from service for a violation he
committed without affecting his service termination benefits.
(D). Termination of Service without Benefits: it is termination
of an employee's work contract without any award or
compensation for committing any of the violations stated in
Article (80) of the Labor Regulations.
10-5-3 If the violation is repeated for the fifth time, the Company shall
have the right to terminate the employee with award, unless such
violation entails termination without award.
10-5-4 Penalty imposed on the employee should be suitable to type and

range of violation.
10-5-5 No penalty shall be imposed on the employee unless the offence is

reported to him in writing, his written statement is obtained, and
the circumstances of the offence are verified and duly recorded.
10-5-6 Deductions from employee's salary against violations he

committed within one month will not exceed the wage of five (5)
days.
10-5-7 Not more than one corrective action shall be taken for the same
act or offence. Also no action shall be taken against any offence
that took place outside the work site, unless it is directly related to
the work, the Company, the supervisory staff or the like.
10-5-8 Penalties decided along with actions to be taken in case of

repeating such offence shall be reported to the employee, and
shall be asked to sign. If that is not possible such document shall
be sent to the address in his service file via registered mail. In case
employee refuses to accept the notice or his address is not
identifiable a report shall be drafted and approved by his manager
and shall be kept in his file. (In such a case the Company shall be
entitled to take the appropriate action).
10-5-9 Each employee shall be allocated a Penalty Sheet where date of

each violation and the corrective action taken shall be indicated.
10-5-10 President & CEO is the only party authorized to suspend the
services of the employee until proper investigation in to offences
attributed to him is made without affecting payment of his wages.
10-5-11 Investigation with the suspended employee should be made within

a period of one month (30) days from date of service suspension,
but investigating party may ask President &CEO for extension for
another period.
10-5-12 President &CEO or his delegate shall have the authority to

approve or to alleviate the penalty and to determine the
investigation party.
10-5-13 Violations relating to attendance committed after three (3) months

of the first one will not be considered a repetition of the
occurrence and will be treated as if it occurred for the first time.
Also, if the same violation relating to Labour Law or employee’s
behaviour is committed after six (6) months from date of the
previous one, it shall not be considered a repetition of the offence,
and shall be treated as if it occurred for the first time.
10-5-14 Without any prejudice to the employee's right to object before the
competent commission under the provisions of Article (91) of the
Labour Law, employee shall be entitled to appeal to the Company
Management against any corrective action imposed on him, in
accordance with the appropriate rules of the Company's

Organizational Chart.
10-5-15 The above articles shall not affect the Company's right to
terminate the employment agreement as per the provisions of
articles (80, 75 & 76) of the Labour Law.
10-5-16 Authorities of Imposing Penalties

Penalty Authority *
Warning Division Manager
First Notice Department Manager
Second Notice Department Manager
Third Notice Sector ED
Fourth Notice Sector ED
Final Notice Sector ED
Service Termination with
EVP/SVP Business Unit
Reward
* Note:
If the concerned employee reports to an administrative level higher than
the authority imposing the penalty as shown above, then authority for
imposing penalty will be to the higher level to whom the employee reports.
10-6 Conflict of Interests Policy

10-6-1 Policy
It is the Company policy that all employees (including
independent consultants and seconded employees), and their
family members registered in the Company, must avoid all
situations in which their personal interests conflict with the
Company's interest, in connection with their dealings with
contractors, suppliers, customers, vendors, and any other
individuals, organizations or companies doing or seeking to do
business with the Company or to compete with the Company.
All Company employees must disclose in writing to their
supervisors any positions they hold outside the Company and any
interest they or their registered family members may have with
other companies, commercial organizations or any parties doing
or seeking to do business with the Company.
General Rule: The existence of any personal interest for the

employee or any connection with outside commercial, industrial,
professional, financial, or technical organizations, doing or
seeking to do business with the Company will, even if disclosed,

may probably constitute a conflict of interests.
10-6-2 Cases of Conflict of Interest:

Following are some explanatory examples, including but not
limited to these cases of interest conflict:
(A). Maliciously using his powers or his influence in the
Company for his personal interest, or for others' interest.
(B). Divulging or releasing information considered to be the
Company's property, which he possesses or could access
because of his position, even if he has already left the
Company, with or without the intention of making direct or
indirect profit for himself or any of his family members.
(C). Act as guardian, trustee, or agent with pay or without pay,
for any person or organization that has a direct or indirect
interest with any party doing or seeking to do business with
the Company.
(D). Purchase of any materials, tools, equipment or properties
based on information from inside the Company for the
purpose of selling or leasing these items to the Company
with the intention of making profit.
(E). Any saying or act that may affect the Company's shares in
the market.
(F). Accepting gifts or services from any party doing or seeking
to do business with the Company. In this respect, all gifts
received by the employee or any of his registered family
members from any person connected with such an
organization should be reported to his supervisor. Examples
of such items are:
1. Traveling tickets provided by firms doing or seeking to
do business with the Company.
2. Trips and the like paid, in part or in whole, by such
organizations.
3. Hotel bills paid in part or in whole.
4. Entertainment parties provided to the Company's
employee or his registered family members by any
organization, which may result in bias or favoritism by
the employee to such an organization.
5. Gifts, such as rugs, home furniture, jewelry and clothes
etc.
6. Repair or construct any property for the employee or his
registered family members by or at the expense of any
organization doing or seeking to do business with the

Company.
7. Receiving any amount of money or things of value by
the employee or any of his registered family members
from an organization doing or seeking to do business
with the Company.
8. Using facilities such as apartments, automobiles, or
offices …etc. by the employee or any of his registered
family members, if such facilities are owned by any
Company.
9. Receiving interest – free or low- interest loans from any
Company by the employee or any of his registered
family members.
10. Providing any personal services, such as providing
maids and the like …etc. to the employee or any of his
registered family members by any organization doing or
seeking to do business with the Company.
11. Settle bills payments for employee or his registered
family members, by any party doing or seeking to do
business with the Company.
Conflict of Interest Policy will be signed by Department Mangers
and higher every three (3) years, and only once for the rest of
Company employees. (See Attachment no:2)
10-7 Obtaining Commercial Registration or Profession License

10-7-1 Policy
Employee will not be allowed to practice any type of
professional or commercial activity without Company's approval.
However, Company will look into employee's application for
having a commercial registration or profession practice license
by presenting it to a specialized commission for consideration,
recommendation and approval or rejection.
See Attachment no: (1); Application Form for Commercial
Registration or License (at the end of this Chapter).
10-7-2 Commission Formation

When an employee applies for a commercial registration or
profession license, a commission will be formed to consider
production of any of these documents in line with the

administrative level of the applicant.
10-7-2-1 Applicant is an Employee (Below Department Manager
Level)
Commission will be established as follows:
A. Regional HR Services Department Manager ( Head)
B. Employee's Department Manager (Member)
C. Regional Legal Affairs Department/ Division Manager
(Member)
10-7-2-2 Applicant is Department Manager
A. HR Services Sector ED (Head)
B. Applicant's Sector ED(Member)
C. Department/ Division Manager, Legal
Affairs(Member) (To determined by the SVP, Legal
Affairs)
10-7-2-3 Applicant is Sector ED
A. Human Resources VP (Head)
B. Applicant's Business Unit VP (Member)
C. SVP, Legal Affairs (Member)
10-7-2-4 Applicant is EVP/SVP
Application will be referred to President & CEO.
10-7-3 Decisions of Commissions

Commissions decisions will be made by majority of votes, and
applicant's immediate supervisor will advise him of the final
result of the competent commission regarding his application
within one week form date of that decision.
10-8 Protection & Safety

10-8-1 All employees should strictly comply with the protection and
safety rules established by the Company to avoid any risk or
accident.
10-8-2 The Company shall undertake implementation, follow up and

periodical review of an accident–prevention program, by
adopting the following acts:
(A). Providing a safe workplace.

(B). Providing necessary personal protection equipment and
enlightening employees regarding safety at workplaces and
outside.
(C). Maintaining work environment and reducing health risks to
the minimum.
(D). Periodical inspection of activities and workplaces to ensure
that used appliances are in sound condition and safety
means are used.
(E). Proposing improvements necessary for work methods and
safety means.
(F). Reporting to Company management on the status of
protection and safety.
(G). Upgrading employees' awareness of prevention.
(H). Inspecting and reporting accidents to Company
management, including preventive means and precautions
that shall preclude occurrence of such events.
(I). Keeping records and statistics for accidents.
10-8-3 The above mentioned program shall observe a group of controls

related to safety regulations and rules such as:
(A). Posting announcements on work risks and preventive
methods at prominent places in work sites.
(B). Keeping cleanliness of work sites.
(C). Providing protection means as per work requirements such
as: protective clothes and shoes, gloves, glasses etc…
(D). Providing good water for drinking and washing.
(E). Providing necessary water closets at work sites.
(F). Providing sufficient illumination for work places, roads and
corridors during work periods.
10-8-4 The Company shall take the necessary procedures to protect the
employee and maintain his safety especially the following:
(A). Constructing protective barriers to siege the movable or
dangerous parts of the work machinery.
(B). Banning smoking at work places.
(C). Providing all means necessary for fire fighting and the
suitable fire extinguishers. The Company shall display at all
work places the instructions that should be followed in
cases of fire.
10-8-5 The Company shall provide all special work uniforms which
employees are required to wear.
10-9 Work Injuries and Occupational Diseases

10-9-1 When any employee is afflicted with a work injury or an
occupational disease, he should promptly report it to his direct
supervisor who shall in turn advise the competent department to
report the accident to GOSI Office, Occupational Risks Branch.
10-9-2 The Company's Medical Facility should immediately report to

Management any phenomenon that may indicate emergence of
any contagious or epidemic diseases among employees.
10-9-3 Work injuries and occupational diseases shall be subject to

provisions of Occupational Risks Branch, GOSI Regulations.
10-10 Health Care

The Company shall provide medical care to its employees and their
eligible dependents as per its established policy. (For more details,
see Chapter 5, Item 5-3, Medical Services)
Chapter: (10)
Attachment :(1) Obtaining Commercial Registration or License
Back to the Attachment Reference
Form no. (1) (To be completed by the concerned employee (the applicant)
An Application by the Company Employee to Obtain Commercial

Registration or License
First: Applicant's Personal data:

Name: ………………………………………….. Employee no: ……………….
Permanent Address: …………………..……… Telephone no: ………………..
Second: Data of the Required Commercial Registration or License:

• Location of activity: ………………………………………………...……………
• Type of activity for which the Commercial Registration or License is required:
……………………………………………………………………………………
• Detailed description for the Activity:
……………………………………………………………………………………
……………………………………………………………………………………
………….................................................
• Legal Status of the applicant in the activity: Owner: Partner:
• Nature of Work which the applicant will practice in this activity:
…………………………………………………………………………...……….
• Number of his Weekly Working Days in this activity: ……………………….…
• When employee will assume his duties in the required activity after completing
his Company's working hours: from: ……….….. PM to: ………...… PM.
• State in details the number and types of the licenses and Commercial
Registrations you have in hand and your legal status (Owner/ Partner) and your
work nature in each activity:
(1) ………………………………………………………………………...………
(2) ……………………………………………………………………………...…
(3) ………………………………………………………………………………...
(4) ………………………………………………………………………………..
Employee's Acknowledgement
I, the undersigned, hereby declare that I personally have made this application to
the Company and that the information stated above is true and correct, and I hereby
sign:
Name: ---------------------------------- Signature: -----------------------------
Date: ----------------------------------
Chapter: (10)
Form no. (2) Records and Data of the Employee Applying for Commercial
Registration or License
First: Data of Job History:
Date of employment: …………………………. Job Title: ………………………….

Department where he works: ………………………...Work location:……………...
Grade: ……………………. Monthly basic salary: ……………………
Second: Data of Employee's Performance, Leaves and Attendance:
• Level of performance during the last three years: ……………………………...

• Date of last promotion he had: …………………………………………………
• Violations committed by employee during the last year: …………………..…..
…………………………………………………………………………………..
• Employee's attendance during the last year:………………………………….…
………………………………..............................................................................
• Leaves without pay he had during the last two years: ………………………….
…………………………………………………………..………………………
• Emergency leaves he had during the last year: ………………………………...
…………………………………………………………………………………..
• Authorized absence without pay during the last two years: ………..…………..
…………………………………………………………………………………..
• Authorized absence with pay during the last two years: …………………….…
…………………………………………………………………………………..
• Unauthorized absence without pay during the last two years: …………………
…………………………………………………………………………………..
• Sick leaves he had during the last two years: …………………………………..
………………………………………………………………………………….
Prepared by Employee's Department: Reviewed by the Regional HR

Services Dept:
Name: --------------------------------------- Name: -----------------------------
Job Title: ----------------------------------- Job Title: -------------------------
Signature: --------------------------------- Signature: -----------------------
Date: ---------------------------------------. Date: -----------------------------
Chapter: (10)
Form no.(3) Acknowledgement and Declaration by the Company Employee

on his Application for Commercial Registration or License
Acknowledgement and Undertaking
I, the undersigned: …………………….……, Employee no: …………… do hereby

acknowledge that my application which I made to the Company on: ……………..,
to obtain a Commercial Registration/ License does not conflict with its interests.
Moreover, I shall have no right to practice any activity not compliant with the
applicable controls and procedures of the Conflict of Interest Policy, especially the
practice of the subject activity in a way contradictory to my duties in the Company
or any of its interests. I shall not have any transaction with the Company through
the subject activity that yields, directly or indirectly, material or moral interest or
privilege to my self or any of my family members. Whenever I recognize such
contradiction to Company procedures regarding Conflict of Interest Policy, I shall
immediately report it to Company Management. I am fully aware that by virtue of
this acknowledgment and declaration, in case of any violation to any of the
procedures of the Company's Conflict of Interest Policy, the Company shall have
the right to take the appropriate disciplinary actions including service termination
without benefits and ending any relationship or transaction between the Company
and organization owned by me personally or in my capacity as a partner, or if it is
owned by any of my relatives.
Furthermore, the Company shall be entitled to take all regular actions if the subject
activity causes any harm to the Company, or if it is proved that Company approval
to this application was based on cheating, giving false information or hiding
information that should be exposed, or as a result of taking any illegal action. All
this shall be taken without any prejudice to the Company's right to claim any
compensation for any material losses afflicted upon it or any profits I might have
made as a result of such actions.
This acknowledgement is complementary to the Company's Conflict of Interest
Policy which I have signed upon my employment in the Company.
Accordingly I hereby sign:

Name: -----------------------------------------
Signature: ------------------------------------
Date: ------------------------------------------
Chapter: (10)
Form no.(4) Commission Decision on the Employee's Application for

Obtaining Commercial Registration or License
Controls to be Observed by the Appropriate Commission when Considering

Applications Made by Some Employees Seeking Company Approval to
Produce Commercial Registration or License
Name of applicant: ……………………………...… Employee no.: ……………….

His Department: ……………………………… Designation: ………….…………...
Date of application: ………………………..… Commercial Registration/License is
required for this activity: ……………………………………………………..……..
after Company's office hours at the employee's Operating Area.
City: ……..…………….
(1) Applicant should be Saudi national.

(2) Approval should be restricted to the practice of one activity in the Commercial Registration or for
one License only.
(3) No License or Commercial Registration for the practice of contracting activities, O&M works,
cleaning and commercial agencies shall be given.
(4) Licensed activity shall not conflict with the Company's public interest in part or in whole, nor
shall it affect the employee's performance of his job duties in the Company, or his Company's
working hours, or with other commitments and obligations stated in the regulations to be observed
by the employee.
(5) Once commission approves employee's application for a Commercial Registration or License, he
shall sign an acknowledgement confirming that licensed activity shall not contradict with his job
duties, and that he shall promptly report such conflict to the Company Management. He is also
required to divulge to the Company any personal interest, whether direct or indirect, he himself
may have or any of his family members in any works carried out for the Company.
(6) The acknowledgement to be made by employee after approval of the commission shall state that,
in all cases, if a conflict of interest between the Company's business and the employee's practice
of a professional or commercial activity is discovered, Company shall have the right to take all
regular actions including service termination without benefits and ending any relationship or
transaction between the Company and his organization, whether owned by himself personally or
any of his relatives or if he is a partner in any other form.
(7) Applicant's performance assessment rating during the last two years shall not be less than "Good".
(8) Applicant should have spent in the Company's service not less than five consecutive years.
(9) Appropriate commission shall have the right to reject any employee's application for having a
commercial registration or professional license even if he has satisfied all requirements and
conditions in that regard. In such a case employee's department shall advise him accordingly.
Commission's Decision: Approval ( ) Rejection ( ) Date: ( )

Name: ……………………………………………………………………..
Commission Members:
Signature:
Name: …………………….. Date: ………………………………..
Designation: Signature:
…………………………………. ……………… (Head)
…………………………………. ……….…….. (Member)
…………………………………. ………..….… (Member)
Chapter: (10)
Attachment :( 2) Conflict of Interest Policy page1 of 2
Conflict of Interest Policy

It is the Company policy that all employees (including independent consultants and
seconded employees), and their family members registered in the Company, must avoid
all situations in which their personal interests conflict with the Company's interest, in
connection with their dealings with contractors, suppliers, customers, vendors and any
other individuals, organizations or institutions doing or seeking to do business or to
compete with the Company.
All Company employees must disclose in writing to their supervisors any positions they
hold outside the Company and any interests they or their registered family members
may have with other companies, commercial establishments or any parties doing or
General Rule: The existence of any personal interest for the employee or any
connection with outside commercial, industrial, professional, financial,
or technical organizations, doing or seeking to do business with the
Company will, even if disclosed, may probably constitute a conflict of
interests. Following are some explanatory examples, including but not
limited to these cases of interest conflict:
1. Maliciously using his powers or his influence in the Company for his
personal interest, or for others interest.
2. Divulging or releasing information considered to be the Company's
property, which he posses or could access because of his position,
even if he has already left the Company, with or without the intention of
making direct or indirect profit for himself or any of his family members.
3. Act as a guardian, trustee, or agent with pay or without pay, for any
person or organization that has a direct or indirect interest with any
party doing or seeking to do business with the Company.
4. Purchase of any materials, tools, equipment or properties based on
information from inside the Company for the purpose of selling or
leasing these items to the Company with the intention of making profit.
5. Any saying or act that may affect the Company’s shares in the market.
6. Accepting gifts or services from any party doing or seeking to do
business with the Company. In this respect, all gifts received by the
Employee Signature Date

Chapter: (10)
Attachment :( 2) Conflict of Interest Policy page2 of 2
employee or any of his registered family members from any person

connected with such an organization should be reported to his
immediate supervisor. Examples of such items are:
- Traveling tickets provided by firms doing or seeking to do business

with the Company.
- Trips and the like paid, in part or in whole, by such organizations.
- Hotel bills paid in part or in whole.
- Entertainment parties provided to the Company's employee or his
registered family members by any organization, which may result
in bias or favoritism by the employee to such an organization.
- Gifts, such as rugs, home furniture, jewelry, clothes … etc.
- Repair or construct any property for the employee or his registered
family members by or at the expense of any organization doing or
- Receiving any amount of money or things of value by the
employee or any of his registered family members from an
organization doing or seeking to do business with the Company.
- Using facilities such as apartments, automobiles, or offices…etc.
by the employee or any of his registered family members, if such
facilities are owned by any organization doing or seeking to do
business with the Company.
- Receiving interest-free or low-interest loans from any organization
doing or seeking to do business with the Company by the
employee or any of his registered family members.
- Providing any personal services, such as providing maids and the
like... etc. to the employee or any of his registered family members
by any organization doing or seeking to do business with the
Company.
- Settle bill payments for employee or his registered family
members, by any party doing or seeking to do business with the
Company.
ACKNOWLEDGEMENT
I HEREBY ACKNOWLEDGE THAT I have read and understood the Saudi Electricity
Company Conflict of Interest Policy and I shall abide by this Policy during my employment
with the company.
Employee Name Employee Badge No.
Employee Signature Date

Chapter 11: End of Service
Table of Contents
Paragraph Subject
11-2 Responsibility
11-2-1 The Employee
11-2-2 Direct Managers and Supervisors
11-2-3 Regional Human Resources Services Department
11-2-4 Approval Authority
11-3 Types of Termination of Service
11-3-1 Resignation
Employee Leaves Service for Cases Stated in Article (81) of the
11-3-2
Labor Law
11-3-3 Early Retirement
11-3-4 Service Termination for Reaching Age of Normal Retirement
11-3-5 Service Termination for Death
11-3-6 Service Termination for Medical reasons
11-3-7 Service Termination in Line with Article (80) of the Labor Law
Service Termination in Line with Articles (75&76) of the Labor
11-3-8
Law
11-3-9 Service Termination for Total Disability
11-3-10 Service Termination for Government Instructions
11-3-11 Service Termination by Mutual Agreement
Service Termination on Expiry of Specified Employment
11-3-12
Agreement
11-4 Notice Period of Service Ending
11-4-1 Upon Resignation
11-4-2 Upon Termination by the Company
11-4-3 Waiver of Notice Period ( One Month)
11-5 Service Period
Calculation of Service Period for Employees who Joined the
11-5-1
Company Before 1/1/2003
Calculation of Service Period for Employees who Joined the
11-5-2
Company On OR After 1/1/2003
Method of Calculating Service Period in Case of Hijra and
11-5-3
Gregorian Calendars
Paragraph Subject
11-6-1 Calculation of End of Service Award
11-6-2 Settlement of Service Award
Treatment of Weekly Rest/ Public Holidays when
11-7
Employee's Services are Ended
Terminating Employee Services for any Reason (Other Than
11-7-1
Death)
11-7-2 Service Termination Because of Death
11-8 End of Service Certificate
11-9 Eligibility of Air Tickets Upon Service Termination
11-10 Shipment of Personal Effects
11-11 Reinstatement
11-11-1 Conditions of Reinstatement
11-11-2 Settlement of Period of Absence
Settlement of Insurance Contributions for Period of
11-11-3
Discontinuation from Work
Settlement of Allowances for Period of Discontinuation from
11-11-4
Work

The Company endeavours to establish and maintain stability in
employment, consistent with its requirements for efficient and economic
operations. It is recognized, however, that a number of employees will
leave the Company’s service for various reasons.
In case of termination, the Company will carefully consider the
circumstances of each case and ensure full compliance with the
provisions of the applicable Company policies, procedures, employment
agreements, Company's Organizational Chart and Table of Violations&
Penalties, and the Saudi Labour Regulations.
11-2 Responsibility
11-2-1 The Employee
The employee is responsible to observe and comply with the
Company’s bylaws and Labor Regulations to remain in good
standing and continue in the employment of the Company.
11-2-2 Direct Managers and Supervisors

Each manager and supervisor is responsible to:
(A). Investigate and check the circumstances leading to termination
of service in each case.
(B). Seek the advice of the Regional Human Resources Services
Department concerning the Company’s policies for
finalization of service termination procedures.
11-2-3 Regional Human Resources Services Department

The regional HR Services Dep. is responsible to:
(A). Advise Company departments on the application of
Company’s termination policies.
(B). Review each case to ensure proper justification for the
termination action and compliance with approved rules.
11-2-4 Approval Authority

Approval authority for termination of the services of any employee
shall be in line with the established Approval Authority Guidelines.
11-3 Types of Termination of Service

11-3-1 Resignation
(A). Employee's Right to Resign
Any employee who is engaged with the Company by an
unspecified employment contract may terminate his
employment with the Company through resignation by
giving his immediate supervisor a written notice of at least
one month (30) days prior to the effective date of leaving the
Company's service.
(B). Determining the Reasons for the Resignation
Before accepting an employee's resignation, the supervisor
shall attempt to determine the reason(s) for such resignation.
In coordination with the competent department at HR
Business Unit, supervisor will review the reasons
surrounding the resignation.
(C). Date of Service Termination Effectiveness
Service termination because of resignation becomes effective
on the date that follows last day of work.
11-3-2 Employee Leaves Service for Cases Stated in Article (81) of the
Labor Law
If the Company breaches the provisions of the employment
agreement as provided in Article (81) of the Labor Regulations the
employee has the right to terminate his services without giving
notice or prejudicing his right to the end of service award.
11-3-3 Early Retirement

A Saudi employee may request early retirement if he meets the
criteria established by the Company for that purpose. The
Company may at its sole discretion accept or reject the request.
Alternatively, the Company may offer early retirement to selected
employees or group of employees for purposes consistent with its
business objectives. (For more details, see the approved Early
Retirement Regulation).
Also see Attachment no: (1) regarding Early Retirement Contracts
for Saudi employees (at the end of this Chapter).
11-4-3-1 Approval Authorities for Early Retirement Requests

Requests for early retirement shall be approved in line with
the applicant's administrative level as per the following table:
Applicant's
Administrative Recommendation Revision Endorsement Approval
Level
Committee for
Below Dept. Business Unit
Dept. Manager early retirement Sector ED
Manager VP
requests revision
Committee for
Business Unit President
Dept. Manager Sector ED early retirement
VP &CEO
requests revision
Committee for
President HR
Sector ED Business Unit VP early retirement
&CEO Committee
requests revision
Business Unit Board of
President &CEO - HR Committee
VP Directors
11-3-4 Service Termination for Reaching Age of Normal Retirement

11-4-4-1 Reaching Age of Normal Retirement
Employee reaches normal retirement when he completes sixty
(60) Hijra years of age at the end of the day preceding his
birthday as per the Hijra calendar.( If the employee's birth
date is recorded according to Gregorian calendar it will be
converted to equivalent Hijra date as per Um alqura calendar).
11-4-4-2 Effective Date
(A). Saudi employee whose date of birth falls at the
beginning of the Hijra month shall normally retire at his
birthday date as per the Hijra calendar. (Example an
employee whose date birth is Rajab 1, will normally
retire on Rajab 1).
(B). Saudi employee whose birth date is not at the beginning
of the Hijra month shall retire with effect from the start
of the Hijra month that follows the one in which he
reaches normal retirement age. (Example: an employee
whose birth date is Shaaban 12, will normally retire with
effect from Ramadan 1).
(C). Expatriate employee will normally retire on the day
following the date he reaches the age of sixty (60) (as

per the Hijra calendar). (Example: an employee whose
birth date is Rabeaa Awal 15,1369H, will complete his
(60) Hijra years on Rabeaa Awal 14,1429H and
therefore will normally retire with effect from Rabeaa
Awal 15,1429H). In cases where expatriate employee's
birth date is recorded in the Gregorian calendar only, the
day and month of that date will be the first of July of the
employee's birth year. The first day of July of the
employee's birth year will be converted to the Hijra
equivalent date as per Um al- Qura calendar.
11-4-4-3 Employee's Approved Date of Birth
Age as stated in the Company records at the time of
employment is the basis for determining age of normal
retirement. No subsequent change to date of birth will be
considered for service continuation.
11-3-5 Service Termination for Death
Termination of service due to the death of an employee shall be
effected from date of that death as stated on the (official death
certificate).
11-3-6 Service Termination for Medical Reasons
The Company may terminate the services of the employee who is
absent for medical reasons more than the period allowed in Chapter
(6) of this Manual, if he has used his sick leaves and the due
balance of annual leaves.
11-3-7 Service Termination in Line with Article (80) of the Labor Law
11-4-7-1 During Probationary Period
The Company may terminate the services of the employee
during his probationary period without a notice period or
service termination award, if he is proved to be unable to
perform his job properly or to satisfy its requirements.
11-4-7-2 Termination for Breaches

The Company may terminate the employee without notice or
end of service award, if he commits any of the violations
covered by Article no: (80) of the Labor Law.
11-3-8 Service Termination in Line with Articles (75&76) of the Labor

Law
The Company may terminate services of the employee for
justifiable reasons (such as job cancellation, reduction of
manpower, Company re- organization or for any other convincing
cause), after advising him within thirty (30) days before service
termination. Employee in this case will be eligible for service
termination award.
11-3-9 Service Termination for Total Disability

The Company will have the right to terminate employee's services
in case of total permanent disability, when a medical certificate
from the Company's approved medical facility establishes the case.
The date when service termination becomes effective will be left to
the discretion of authority party.
11-3-10 Service Termination for Government Instructions

Services of an employee will be terminated when the government
authorities revoke or do not renew his work permit or residence. In
such a case employee will be entitled to end of service award.
11-3-11 Service Termination by Mutual Agreement

Employment may be terminated by mutual agreement between
Company and employee. Employee in this case will be eligible for
end of service award.
11-3-12 Service Termination on the Expiry of Specified Employment

Agreement
Employee's service with the Company will terminate when his
employment agreement with it expires if it is of a specified term
category. Employee in this case will be entitled to end of service
award, and his service will end form the date that follows his last
workday as per contract.
11-4 Notice Periods

11-4-1 Upon Resignation
Employee of unspecified term employment agreement should, in
case of resignation, give the Company a written notice of at least
one month (30) days period before he leaves the Company service.
11-4-2 Upon Termination by the Company

The Company will give an employee who is on an unspecified term
employment agreement and who is being terminated, a written
notice period of at least one month (30) days, prior to the effective
date of the end of service, except in the following cases:
(A). Termination is made during the probationary period.
(B). Discharge for cause - Article (80) of the Labor Law.
(C). Termination in case of death.
11-4-3 Waiver of Notice Period (One Month)

11-4-3-1 Waiver of Resigning Employee from the One Month Period
Notice
If the resigning employee wants to be exempted form the
one month notice period, he should write to his direct
supervisor accordingly, giving his justifications for such
exemption, when asked to do so. If the authority party
accepts such justifications, the Company usually gives
waiver.
11-4-3-2 Approval Authority for the One- Month Notice Waiver

(A). Authority of recommendation for exemption from the
one- month notice period will be for the Department
Manager for whom the resigning employee works.
(B). Approval authority for exemption form the one –
month notice period will be for the Sector ED where
the resigning employee works. In case the resigning
employee applying for the waiver works directly under
the authority party, the request then should be raised to
higher managerial level.
11-4-3-3 Deduction of the One – Month Notice Period Wage

Salary of the one- month notice period will be deducted from
the resigning employee's end of service award, if he does not
continue his service through the notice period nor have the
appropriate exemption.
11-5 Service Period

11-5-1 Calculation of Service Period for Employees who Joined the
Company Before 1/1/2003
Service period for employees who joined the Company before
1/1/2003 will be calculated by adding the following two periods
together:
(1) From date of joining Company service up to 27/10/1423H,
corresponding to ( 31/12/2002G), service period will be
calculated as per the Hijra calendar.
(2) From the first of January 2003 up to date of end of service,
service period will be calculated as per the Gregorian
calendar.
11-5-2 Calculation of Service Period for Employees who Joined the

Company on OR after 1/1/2003
Service period will be calculated as per the Gregorian calendar.
11-5-3 Method of Calculating Service Period in Case of Hijra and

Gregorian Calendars
(A). Years: Each year shall be calcualted complete year regardless
of its location ( in the service among the years calcualted as
per the Hijjra or Gregorian calendars).
(B). Months: Months ( wether Hijjra or Gregrian) wil be
converted to part of the year by dividing the months over (12).
(C). Days: when days are part of the Hijjra service period, days
will be divided over (354) days, while if days are part of the
Gregorian service period, days will be calcualted over (365)
days.

11-6-1 Calculation of End of Service Award
End of service award for employees whose services are terminated
will be calculated as per the attached controls (see Attachment no:
2).
11-6-2 Settlement of End of Service Award

The Company will settle all end of service dues for the employee
with the Company, including but not limited to the following:
(A). Salary through the last day worked.
(B). End of service award in accordance with Labor Law.
(C). Any dues for the Company with employee will be deducted
from his account.
11-7 Treatment of Weekly Rest/ Public Holidays when

Employee's Services are Ended
11-7-1 Terminating Employee Services for any Reason (other than
Death)
If services of the employee are ended for any reason and that
termination effectiveness date falls within days of the weekly rest
or the public holiday, such weekly rest or public holiday will be
treated as follows:
A. If the service termination effectiveness date falls within the
weekly rest and the employee worked the last work day directly
preceding the weekly rest, wage of weekly rest will be paid to
him in full.
B. If the service termination effectiveness date falls within the
public holiday and the employee worked the last work day
directly preceding the public holiday, wage of the public holiday
will be paid to him in full.
C. If the service termination effectiveness date falls within the
weekly rest directly followed by public holiday and the
employee worked the last work day directly preceding the
weekly rest, wage of weekly rest only will be to him in full, but
not the wage of the public holiday.
D. If the service termination effectiveness date falls within a
weekly rest day that directly follows a public holiday and the
employee has worked the last working day directly preceding
the public holiday, wages of public holiday and the weekly rest
days will be paid to him together in full.
11-7-2 Service Termination Because of Death

If services of the employee are terminated because of death and the
services termination effectiveness date falls within days of weekly
rest or public holiday, days of weekly rest or public holiday will be

treated as follows:
A. Wage of the death day will be paid in full to the heirs of the
deceased employee.
B. If the employee's death happened in the day (directly) preceding
weekly rest or public holiday, wages of the weekly rest or
public holiday in addition to wage of the death day will be paid.
C. If the employee's death happened during weekly rest or public
holiday, wage of the weekly rest or public holiday will be paid
in full.
D. If the employee's death happened in the day (directly) preceding
the weekly rest which is ( directly) followed by public holiday
or vice versa, wage of the ( days of the weekly rest + public
holiday), along with wage of the death day will be paid in full.
11-8 End of Service Certificate

The regional HR Services Department will issue a service certificate to
each terminated employee indicating the date of employment, date of
termination, the nature of last work performed (job title) and a statement
of his last salary on termination.
11-9 Air tickets Eligibility upon Service Termination

The Company will issue the expatriate employee and his eligible family
members upon termination of service with it due air tickets in line with its
approved policies and the details of Chapter (9) of this Manual.
11-10 Shipment of Personal Effects

(A). The Company shall reimburse the expatriate employee (upon
employment and end of service) the costs he incurs for shipment of
excess baggage up to fifty (50) kilos by non – accompanying air
cargo or equivalent in value if he chooses to ship his effects in
another way.
(B). In case of expatriate employee's death, the Company shall arrange
shipment of his personal and domestic belongings up to one
hundred (100) kilos by non- accompanying air cargo or the
equivalent in value by any other means of shipment.
11-11 Reinstatement
11-11-1 Conditions of Reinstatement
An employee, whose services were terminated under Article (80)
of the Labour Law or unauthorized absence, may be reinstated
subject to the following:
1. Period of absence from the Company’s service is not more than
(180) days.
2. The reasons for his absence from work are acceptable to the
Company.
3. The employee’s job is still vacant and operations require that it
should be filled.
4. Academic qualifications of the applicant for reinstatement will
not be less than the Secondary School Certificate, and the level
of his work performance appraisal during each of the last three
years will not be less than " Meets All Expectations ".
5. Approval of President & CEO.
11-11-2 Settlement of Period of Absence

When the employee is reinstated, period of absence will be settled
by deducting it from his outstanding annual vacations. If not
covered, the rest will be considered an unpaid leave.
11-11-3 Settlement of Insurance Contributions for the Period of

Discontinuation from Work
When employee is returned to duty, insurance contributions for the
period of discontinuation from work will be settled as follows:
1. Employee will bear the complete social insurance contributions
for the period of discontinuation from work (before returned to
duty), which exceeds thirty (30) days including (both shares of
the employee and that of the Company).
2. Employee will bear all fines imposed by GOSI as a result of not
paying (both shares of the employee and the Company) on its
specified date.
3. The Company will arrange to pay the amounts shown in
paragraphs (1&2) above as usual, provided that such amounts
will be deducted from the employee's monthly salaries within a
period not exceeding six (6) months from date of his return to
duty.
11-11-4 Settlement of Allowances for the Period of Discontinuation

from Duty
All allowances will be suspended from employee for the period
exceeding the thirty (30) days, as stated in the table entitled
(Continuation or Suspension of the Payment of Allowances).
Chapter 11
Attachment (1) Early Retirement Contract for Saudi Employees
Early Retirement Contract for Saudi Employees

(Employee shall have his full salary paid By Company)
On ……/ ……/ 14 H ( …../ …../ 20 G), this contract is concluded between:

1. Saudi Electricity Company represented in this contract by Mr. ……..in his capacity
as "………." ( First Party).
2. Employee: ………………….., with work ID no: ( ), Saudi citizen, and
with national ID no: ( ), issued at: ……………, ( Second Party).
Preamble:
As the" Second Party" at his sole discretion and wish has asked the" First Party" to
grant him early retirement in accordance with its applicable regulations, terms and
conditions, and since "First Party" has agreed to the "Second Party's" request for
early retirement in line with the said regulations, "Second Party" shall have his full
retirement salary paid by the "First Party".
Accordingly both parties agreed on the following:
1. The above preamble shall be considered an integral part of the contract.
2. "First Party" agrees to the "Second Party's" application for early retirement
with effect form ……../……/ 20 G.
3. "First Party" shall pay "Second party" retirement salary on monthly basis, as
per the Gregorian calendar, amounting to SR ……(in figures) ………(in
letters), with effect from ……/……/ 20 ….G).
4. "First Party" shall continue to pay "Second Party" the amount sated in item
no (3) of this contract up to: …../ …../ 20… G, which is the date when
"Second Party" shall reach the age of (60 years), as per the Hijra calendar in
compliance with "First Party's" applicable regulations for Early Retirement.
5. "First Party" shall not consider any modification introduced by "Second
Party" to his date of birth with the intention of shortening his age from date of
his normal retirement which is due on …../……./ 14…..H.
6. "First Party" shall cease from paying "Second Party's" subscriptions to GOSI
with effect form the date mentioned in item no.(2) of this contract.
7. As long as "Second Party" receives a monthly retirement salary from "First
Party" he should promptly and without any delay advises the "First Party"
when he receives the first time any retirement salary form GOSI. In this case
the monthly salary of early retirement as stated in item no.(3) of this contract
shall be modified as follows:
Page 1 of 9
Chapter 11
A. If the GOSI retirement salary is equal to or more than the Company's

retirement salary, Company then shall cease from paying the monthly
retirement salary (and GOSI retirement salary only shall be paid).
B. If GOSI retirement salary is less than the Company's retirement salary,
Company then shall pay him the difference monthly, as per the formula
stated in the Company's early retirement chart, when he is granted early
retirement.
8. If the "Second Party" stops collecting his monthly retirement salary from
GOSI for any reason whatsoever after collecting that salary form GOSI (even
for one moth), " First Party's" obligations towards the " Second Party" shall
remain as stipulated in item no.(7) of this contract.
9. "First Party" shall continue to provide "Second Party" and his eligible family
members with health care services until "Second Party" reaches the age of
normal retirement, (60 Hijra years) as per the date specified in item no.(5) of
this contract or total disablement or death (whichever occurs first) in
accordance with the applicable Health Services Regulations of the First Party
and any modifications thereto.
10. "Second Party" or his relatives (promptly and without any delay) shall report
to the" First Party's" competent department (Regional HR Services
Department at the area where Second Party used to work when he was granted
early retirement) and GOSI, of any total disablement which may be afflicted
upon Second Party. In case such accident is not reported "Second Party" shall
bear all medical care costs incurred by "First Party" as a result of providing
health service to "Second Party" and his eligible family members, form date
"Second Party" suffered total disablement. "Second Party" shall have no right
to object to such ruling.
11. Heirs of the "Second Party" (promptly and without any delay) shall report to
the "First Party's" competent department (Regional HR Services Department
at the area where Second Party used to work when he was granted early
retirement) and GOSI, the death of the decedent. In case such accident is not
reported heirs shall bear all medical care costs incurred by "First Party" as a
result of providing health service to "Second Party's" eligible family members,
from death date of the "Second Party". Heirs of the "Second Party" shall have
no right to object to such ruling.
12. When "First Party" is advised of "Second Party's" total disablement, "First
Party" then shall cease payment of the monthly retirement salary to the
"Second Party", with effect from date total disablement takes place.
13. "First Party" shall stop payment of the monthly retirement salary when
"Second Party" dies, with effect from date of that death.
Page 2 of 9
Chapter 11
14. "Second Party" shall be obliged to complete annually the appropriate form
prepared by "First Party" regarding "Second Party's" general health
condition, after the elapse of one year from date of early retirement until he
reaches age of normal retirement (60 Hijra years), as per the date specified in
item no. (5) of this contract. Such form shall be approved by the competent
health authorities of the "First Party". In case "Second Party" fails to do so,
"First Party" shall have the right to suspend providing health care services to
"Second Party" and his eligible family members and to stop payment of the
monthly retirement salary until "Second Party" completes the said form and
gets it endorsed by "First Party's" competent health agency.
15. "Second Party" shall provide "First Party" with a copy of his Family ID
Record Card along with original for authentication. "Second Party" shall
advise "First Party" of any change to the said card, whether by deletion or
addition. In case "Second Party" fails to do so, he shall bear all health care
costs incurred by "First Party" as a result of providing health care services to
"Second Party's" family members who are already deleted from the Family ID
Record Card. "Second Party" shall have no right to object to such ruling.
16. "Second Party" shall be subject to all modifications introduced by "First
Party" to its health care services policy form time to time. "Second Party"
shall have no right to object to such ruling.
17. "Second Party" shall in no case have right return to "First Party's" service
after early retirement.
18. "First Party's" applicable Early Retirement Regulation and any amendments
thereto shall control any area not covered by this contract.
For: First Party For Second Party

(Saudi Electricity Company) (Employee)
Name: ........................................................ Name: ........................................................
Signature: ................................................. Signature: .................................................
Date: .......................................................... Date: ..........................................................
Page 3 of 9
Chapter 11

(Difference Between GOSI Retirement Salary and the Company's Retirement Salary)
On ……/ ……/ 14 H ( …../ …../ 20 G), this contract is concluded between:

1. Saudi Electricity Company represented in this contract by Mr. ………………..
in his capacity as " ………………" (First Party).
2. Employee: …………………….., with work ID no: ( ), Saudi citizen,
and with national ID no: ( ), issued at: ……………, (Second Party).
Preamble:
early retirement in line with the said regulations, "Second Party" shall receive the
difference between GOSI retirement salary and the " First Party's" retirement salary.
Moreover, "Second Party" shall apply to GOSI for early retirement salary to be paid
to him in line with its appropriate regulations, once this contract is singed.
2. "First Party" agrees to the "Second Party" request for early retirement
with effect form ……../……/ 20G.
3. "First Party" shall pay "Second party" retirement salary on monthly basis, as
per the Gregorian calendar, amounting to SR ……( in figures) ………(in
letters), with effect from ……/……/ 20 ….G). The said amount represents the
difference between GOSI retirement salary and SEC retirement salary as per the
approved retirement regulation of the "First Party".
4. "First Party" shall continue to pay "Second Party" the amount sated in item
no (3) of this contract up to: …../ …../ 20… G, which is the date when "Second
Party" shall reach the age of (60 years), as per the Hijra calendar in compliance
with "First Party's" applicable regulations for Early Retirement.
7. "Second Party" shall take all necessary actions to receive his retirement salary
form GOSI, without any delay. Failure to do so shall be the "Second Party's"
responsibility and consequently he shall have no right to ask "First party" to
pay him the monthly retirement salary.
Page 4 of 9
Chapter 11
GOSI for any reason whatsoever after concluding this contract, he shall have no
right to ask "First Party" to pay him any increase to the Company's monthly
retirement salary shown in item no.(3) of this contract. "First Party's"
obligations shall be restricted to the contents of this contract only.
members with health care services until "Second Party" reaches age of normal
retirement (60 Hijra years) as per the date specified in item no.(5) of this
contract or total disablement or death (whichever occurs first), in accordance
with the applicable Health Care Services Policy of the First Party and any
modifications thereto.
to the "First Party's" competent department (Regional HR Services
early retirement) and GOSI, of any total disablement which may be afflicted
upon Second Party. In case such accident is not reported "Second Party" shall
bear all medical care costs incurred by "First Party" as a result of providing
health service to "Second Party" and his eligible family members, form date
"Second Party" suffered total disablement. "Second Party" shall have no right
to object to such ruling.
result of providing health care service to "Second Party's" eligible family
members, from death date of the "Second Party". Heirs of the "Second Party"
12. When "First Party" is advised of "Second Party's" total disablement, "First
Party" then shall cease payment of the monthly retirement salary to the
"Second Party", with effect from the date when total disablement takes place.
13. "First Party" shall stop payment of the monthly retirement salary when
"Second Party" dies, with effect from date of that death.
item no.(5) of this contract. Such form shall be approved by the competent
"First Party" shall have the right to suspend providing health care services to
Page 5 of 9
Chapter 11
"Second Party" and his eligible family members and to stop payment of the
monthly retirement salary until "Second Party" completes the said form and
gets it endorsed by "First Party's" competent heath agency.
Record Card along with original for authentication. "Second Party" shall
"Second Party's" family members who are already deleted form the Family ID
17. "Second Party" shall in no case have right to return to "First Party's" service
after early retirement.
For: First Party Second Party

Name: ........................................................ Name: ........................................................
Date: .......................................................... Date: ..........................................................
Page 6 of 9
Chapter 11

(No Retirement Salary shall be paid by the Company to the Retiree as GOSI
Retirement Salary is Either Equal or More than that of the Company)
On ……/ ……/ 14 H (…../ …../ 20 G), this contract is concluded between:

1. Saudi Electricity Company represented in this contract by Mr. ………………..
in his capacity as " …………………." (First Party).
2. Employee: ………………….., with work ID no: ( ), Saudi citizen,
and with national ID no: ( ), issued at: ……………, (Second Party).
Preamble:
early retirement in line with the said regulations, "Second Party" shall receive his full
retirement salary form GOSI and " First Party's" obligations shall be restricted to
providing health care services to " Second Party" and his eligible family members.

2. "First Party" agrees to the "Second Party's" request for early retirement with
effect form ……../……/ 20 G.
3. "First Party" shall not be obliged to pay "Second party" a monthly retirement
salary.
6. "Second Party" shall take all necessary actions to collect his retirement salary
form GOSI, without any delay. Failure to do so shall be the "Second Party's"
responsibility and consequently he shall have no right to ask "First party" to
pay him any monthly retirement salary.
GOSI for any reason whatsoever after concluding this contract, he shall have no
right to ask "First Party's" to pay him any early retirement monthly salary.
members with health care services until "Second Party" reaches age of normal
retirement (60 Hijra years) as per the date specified in item no.(4) of this
Page 7 of 9
Chapter 11
contract or total disablement or death (whichever occurs first) in accordance

with the applicable Health Services Regulation of the First Party and any
modifications thereto.
to the "First Party's" competent department (Regional HR Services
early retirement) and GOSI, any total disablement which may be afflicted upon
Second Party. In case such accident is not reported "Second Party" shall bear
all medical care costs incurred by "First Party" as a result of providing health
service to "Second Party" and his eligible family members, form date "Second
Party" suffered total disablement. "Second Party" shall have no right to object
to such ruling.
result of providing health care service to "Second Party's" eligible family
members, from death date of the "Second Party". Heirs of the "Second Party"
item no. (4) of this contract. Such form shall be approved by the competent
"First Party" shall have the right to suspend providing health care services to"
Second Party" and his eligible family members until "Second Party"
completes the said form and gets it endorsed by "First Party's" competent
heath agency.
Record Card along with original for authentication. "Second Party" shall also
"Second Party's" family members who are already deleted form the Family ID
Page 8 of 9
Chapter 11
14. "Second Party" shall in no case have any right to return to "First Party's"
service after early retirement.
For: First Party Second Party

Name: ........................................................ Name: ........................................................
Date: .......................................................... Date: ..........................................................
Page 9 of 9
Controls for End of Service Award Calculation
to SEC Employees
Controls for End of Service Award Calculation page 1 of 8

February 2008
First: Guidelines and general rules observed in establishing the controls for End of Service Award
calculation:
1. Provisions and rules of Saudi Labor Law and SEC bylaws.
2. Implementation of rules of End of Service Award calculation on eligible employees as per the Saudi Labor Law and
provisions of SEC bylaws.
3. Provisions of Saudi Labor Law represent the minimum limit of employees' rights. However, if any of the pre-
consolidation companies and before charts are unified gives its employees more rights, such act shall not be
considered contradictory to provisions of this policy.
4. Acquired rights of employees of previous consolidated companies shall not be affected.
5. During the period prior to consolidation, merits used to be given to employees working at the various operating areas
by the pre- consolidation companies and before charts are unified shall be maintained.
6. Service periods shall be calculated as per the Hijra calendar for the period prior to issue of SEC new chart and
policies, and in line with the Gregorian calendar for the period which follows.
7. As for End of Service Award calculation, treatment of SEC employees for the period which follows issue of its new
chart and policies on 1/1/2003 shall be unified.

Second: Definitions of Dates:
1/1/2003: The date on which Human Resources Policies in the Company were unified and accordingly all its employees
were subjected to one unified policy and also it was the start of using the Gregorian calendar.
27/10/1423H: Last date for using the Hijra calendar before shifting to the Gregorian calendar.
1/7/1406H: The date on which the escalating increase in the thirteen salary value as part of the End of Service Award
package payable to previous SCECO – East employees was stopped. (Salary value as of 30/6/1406H was
fixed).
1/1/2003: The date on which the thirteen month allocation factor was stopped from being added to the End of Service
Award Package calculation for the previous SCECO – East employees.
12/1/2007H: The date on which the (two salaries) allocation was stopped to be added to the End of Service Package
calculation for employees who had spent more than ten (10) years of continuous service at the pervious
SCECO- Central.
SCECO- West.
SCECO- South.
1/8/2005: The date on which (previous) modifications and clarifications to controls of End of Service Package
calculation approved by the President& CEO were put into effect.
1/2/2008: The date on which the housing allowance increase to all SEC employees by (5%) to become (25%) of the
monthly basic salary instead of the current rate (20%) was implemented.
1/2/2008: The date on which the minimum housing allowance payable to all SEC employees per annum was increased
to SR 15000.
20/2/2008: Approval date for the adjustment of the (housing allowance to (25%) of the basic salary and adjustment of the
minimum annual housing allowance to SR 15000). This End of Service Allowance calculation shall be
applicable to employees whose services end on or after 21/2/2008.

Third: End of Service Award to Company employees:
(A) Definition of complete End of Service Award as per article (84) of the new Labor Law as follows:
1/2 month wage for each of the first five years of service.
Complete month wage for each of the service years that follows (the first five years of service).
Employee shall be entitled to complete award in the following cases:

Expiry of the specified term employment contract.
If the contractual agreement was terminated by the Company in case of the unspecified term contract.
If employee completes ten (10) years of service or more in case of the unspecified term contract.
Any other cases that may be specified by the Labor Law or the Company's charts and bylaws such as (normal
retirement, early retirement, death).
(B) In cases other than what is stated above, employee of unspecified term contract will be eligible for End of
Service Award as per article (85) of the Labor Law, as follows:
Reason of Service Service Period Eligible Award
Termination
Resignation Less than (2) years None
From (2) to (5) years (1/3) of the complete award
More than (5) years but less than (10) years (2/3) of the complete award
End of Service Award calculation will be based on the last wage. Employee will be eligible to award for the
parts of the year spent in service, taking into account the End of Service calculation controls for each of the
previous companies.

Fourth: Calculation of Service Period for SEC Terminated:
(A) Employees who Joined the Company Before 1/1/2003:
Service period will be calculated by adding the following two periods together:
(1) From date of joining Company service up to 27/10/1423H, service period will be calculated as per the
Hijra calendar.
(2) From 1/1/2003 up to date of end of service, service period will be calculated as per the Gregorian
calendar.
(B) Calculation of Service Period for Employees who Joined the Company on OR after 1/1/2003
(Complete) service period will be calculated as per the Gregorian calendar.
Fifth: Method of Calculating Service Period in Case of Hijjra and Gregorian Calendars
Years: Each year shall be calculated complete year regardless of its location ( in the service among the years
calculated as per the Hijra or Gregorian calendars).
Months: Months (whether Hijra or Gregorian ) will be converted to part of the year by dividing the months
over (12).
Days: when days are part of the Hijra service period, days will be divided over (354) days, while if days are
part of the Gregorian service period, days will be calculated over (365) days.

Sixth: Calculation of End of Service Award for SEC employees as per the following distribution:
(A)End of Service Award for employees who joined the Company on or after 1/1/2003 will be calculated as
follows:
Category of Employee Service Period Factors of Monthly Wage
Employees who joined the From date of employment up to date of The last Gregorian monthly basic
Company on or after 1/1/2003 termination ( as per the Hijra calendar) salary + The last Gregorian monthly
housing allowance + The last Gregorian
monthly transport allowance.
(B) End of Service Award for employees who joined the Company before 1/1/2003 will be calculated as follows:
Category of Employee Service Period Factors of Monthly Wage

Employees who belonged in the From date of employment up to The last Gregorian monthly basic
past to the Electricity 27/10/1423H (as per the Hijra calendar) salary + The last Gregorian monthly
Corporation, Tabuk, Taima, housing allowance + The last Gregorian
Haqil, Arer, Dhumat al- Jandal, monthly transport allowance.
Rafha or employees belonging
in the past to SCECO ( Central,
Western, Eastern, Southern)
From 1/1/2003 up to date of service
termination (as per the Gregorian
calendar)
(C)When settling service dues for employees of the previous SCECOs ( Central, Western, Eastern, Southern), End of
Service Award will be calculated as per the above stated controls, taking into account the following notes:

Notes of SCECO – Central:
As for employees who spent more than ten (10) years of continuous service in the Company before 12/1/1407H, their
End of Service Award for the period that exceeds ten (10) years and up to 11/1/1407H will be calculated at a rate of
two (2) months wage for each of the years more than (the first ten years of service).
The (previous) SCECO – Central employees mean those employees who worked for the (previous) SCECO- Central
before employees of the other branches such as those of the Electricity Corporation and others joined it.
Notes of SCECO – West:

The (previous) SCECO – West employees mean those employees who worked for the (previous) SCECO- West
before employees of the other branches such as those of Tabuk, Taima, Haqil, the Electricity Corporation and others
joined it.

Notes of SCECO – East:
As for employees who joined the Company before 1/7/1406H, amount accumulated against the thirteen month salary
(up to 27/10/1423H) will be added to their account.
Amount accumulated against the thirteen month salary is the amounts accumulated for the employee as a result of
adding the thirteen month salary by SCECO- East to the elements of calculating End of Service Award for employees
who joined the Company before 1/7/1406H and continued up to or before 27/10/1423H, taking into account that the
additional salary amount was fixed as per the employee's salary on 30/6/1406H.
The (previous) SCECO – East employees mean those employees who worked for the (previous) SCECO- East before
employees of the other branches such as those of Dhumat al- Jandal, Rafha, Arer, the Electricity Corporation and
others joined it.
Notes of SCECO – South:

The (previous) SCECO – South employees mean those employees who worked for the (previous) SCECO- South
before employees of the other branches such as those of the Electricity Corporation and others joined it.

Dates of Implementation
Date of
Chapter Paragraph Subject
Implementation
1/1/2003
2 2-4-1 Employment standards for Saudis
*2/6/2009
1/1/2003
2 2-6-6 Employment Agreements
*1/6/2008
2 2-7 Controls for Bringing Expatriates Families to KSA 1/1/2003
1/1/2003
2 2-9 Reinstatement * 1/2/2006
*1/4/2011
1/1/2003
3 3-4-4 Rest Days Recording
*1/9/2007
9/5/2006
3 3-4-5 Weekly Rest days during Work & Training Assignments
*21/11/2006
3 3-5 Overtime 1/1/2003
1/1/2003
3 3-5-2 Cases when Overtime is Compensated
*1/8/2007
1/1/2003
3 3-5-3 Method of Calculating Overtime Compensation
*1/9/2007
3 3-5-4 Shift Schedules 15/11/2005
3 3-5-5 Call in to Duty 1/1/2003
3 3-5-6 Eligibility of Call in Compensation 1/1/2003
3 3-5-7 Computation of Call in Compensation 1/1/2003
3 3-5-8 Putting Employee on Call in Status 1/1/2003
3 3-5-9 Eligibility of Compensation for Putting Employee on Call in Status 1/1/2003
Computation of Compensation for Putting Employee on Call in
3 3-5-10 1/1/2003
Status
1/1/2003
4 4-5-1 Method of Calculating Basic Salary
*1/9/2007
1/1/2003
*1/1/2005
4 4-6-1 Annual Increment
*1/1/2008
*17/3/2010
1/4/2004
4 4-6-2 Eligibility of Annual Increment During Unpaid Leave/ absence *20/4/2010
*1/6/2011
1/8/2003
4 4-6-3 Partial Annual Increment upon End of Service *1/12/2004
*1/11/2009
1/4/2004
4 4-6-4 Promotions of Employees
*1/2/2005
Adding a Condition of having University Degree to Promotion 1/4/2004
4 4-6-4-5
Requirements *1/8/2007
4 4-6-5 Promotion Increase 1/1/2003
4 4-6-6 (Non Graduate) OJB Trainees Promotions 1/1/2003
4 4-6-7 Calculation of Increase to Basic Salary 1/7/2003
Controls for Appointments & Promotions of Division Manager 1/6/2004
4 4-6-8-1
Positions and Higher *1/4/2008
Controls for Appointments & Promotions of Supervisory Positions
4 4-6-8-2 1/1/2005
at the Level of Section Head or Unit Supervisor
1/6/2004
Controls for Saudi Employees to pursue university Studies while *10/5/2008
4 4-6-9
in Company Service *1/5/2009
*1/5/2011
4 4-7 Authorities for Assigning Temporary Administrative Jobs to 1/8/2003
Red line below text indicates addition or change Date of addition or change:01/06/2011 Date of Issue: 01/04/2005
Date of
Implementation
Employees
4 4-8-1 Housing Allowance 1/1/2003
4 4-8-1-1 Eligibility of Housing Allowance 1/7/2007
1/1/2003
4 4-8-1-2 Amount of Housing Allowance
*1/2/2008
1/1/2003
4 4-8-2 Transport Allowance
Additional Transport Allowance to Employees Working on Two
4 4-8-3 1/1/2003
Shifts
1/1/2003
Additional Transport Allowance to Meter Readers *1/1/2005
4 4-8-4
(Against Using their Own Cars in Meter Reading Activities)
1/1/2003
Work Allowance for Workers at Generation, Transmission and *1/1/2009
4 4-8-5
Transformer Stations *1/3/2011
*1/5/2011
4 4-8-6 Shift Allowance 1/1/2003
4 4-8-7 Industrial Security Allowance 1/1/2003
Controls for Promotion when Employee's Services End Prior to
4 4-6-10 9/8/2008
Date of Eligibility
Adjustment of Salaries of Expatriate Employees who have
4 4-6-11 Obtained the Saudi Nationality 1/2/2010
Attachment 1/6/2003
4 Continuation and Suspension of Allowances and Increases
no(1) *1/12/2007
5 5-3 Health Services 1/9/2003
1/5/2005
5 5-3-2 People Covered by Medical Care *7/6/2009
*1/3/2010
5 5-3-5-2 Reimbursement of Medical Expenses in case of Emergency 26/10/2005
Eligibility of Heath Services to Family of Expatriate Employee who
5 5-3-13 1/8/2007
is Below Grade (47)
1/3/2008
5 5-4 Thrift and Saving Plan 1/7/2008
*1/7/2009
1/1/2003
5 5-5 Gifts, Certificates and Parties of Continuous Service *1/6/2007
*16/12/2009
5 5-6 Gifts, Certificates and Parties of Early and Normal Retirement *16/12/2009
Rewarding Competent Employees when Customer's Violations
5 5-7 1/2/2009
Detected
1/1/2003
5 5-9 Amount Payable to Employee's Widow
1/1/2009
1/1/2003
5 5-10 Amount Payable to Employee in Case of Total Disability
*1/1/2009
Monthly Eligibility of Annual Leave for Months Having Unpaid 1/1/2003
6 6-2-1
Leaves *21/11/2006
6 6-2-2 Advance Leave Balance 1/1/2003
1/4/2005
6 6-2-3 Scheduling of Annual Leave
*5/4/2010
6 6-2-4 Illness During Leave 1/1/2003
6 6-2-5 Illness Before Leave Starts 1/1/2003
6 6-2-6 Public Holidays During Leave 1/1/2003
6 6-2-7 Splitting, Linking and Disconnecting Leave 1/1/2003
Date of
Implementation
6 6-2-8 Financial Compensation for Leave 1/1/2003
6 6-2-9 Calculating Imprisonment Period as Part of Leave 1/1/2003
6 6-2-10 Leave Extension 1/1/2003
6 6-2-11 Reporting Employee's Late Return from Leave 1/1/2003
6 6-2-12 Employee's Failure to Report to Company Late Return form Leave 1/1/2003
6 6-2-13 Late Arrival without Notification 1/1/2003
6 6-2-14 Deferring Annual Leave 1/1/2003
6 6-2-15 Service Termination during or Immediately after Leave 1/1/2003
6 6-2-16 Prohibition of Work during Leave 1/1/2003
6 6-2-17 All Types of Leaves Overlapping Annual Leave 1/6/2009
1/1/2003
6 6-2-18 Air Tickets, Visas and Leave's Advance Wage
*1/7/2007
6 6-3 Holidays of Eids and Public Occasions 1/1/2003
6 6-4 Marriage Leave 1/1/2003
6 6-5 Birth of New Baby Leave 1/1/2003
6 6-6 Hajj Leave 1/1/2003
6 6-7 Examinations Leave 1/1/2003
1/1/2003
1/9/2007
6 6-8 Sick Leave
1/6/2009
*1/9/2009
1/1/2003
6 6-9 Patient's Escort Leave
*1/9/2007
1/1/2003
*16/5/2005
6 6-10 Sports and Cultural Activities Practice Leave
*1/9/2007
*1/2/2009
Leave for Participation in the Improvement 28/2/2005
6 6-11
(Tahseen) Program *1/9/2007
Leave for Employees who have Completed (25,30,35,40) Years of 1/6/2007
6 6-12
Continuous Service *1/3/2009
1/1/2003
6 6-13 Employee's Detention by Government Authorities
*7/7/2008
1/1/2003
6 6-14 Leave for Death of Immediate Family Member
*16/5/2009
1/1/2003
*1/11/2004
*1/8/2008
6 6-15 Leave without Pay *16/5/2009
*1/6/2009
*1/1/2010
*28/6/2010
6 6-16 Leave without Pay for Study Pursuit Purposes 1/3/2006
6 6-17 Delivery Leave 1/9/2007
1/1/2003
9 9-3 Reimbursement of Work & Training Assignments Expenses *1/1/2005
*1/7/2008
9 9-3-1 In- Kingdom Work Assignments ( not Exceeding (180) Days) 1/1/2003
Compensation for Work Assignments for the First (90) Days during 1/6/2003
9 9-3-1-1
the Gregorian Year *1/1/2005
9 9-3-2 In – Kingdom Training Assignments (not Exceeding 180 Days) 1/1/2003
Compensation for Training Assignments for the First (30) Days 1/6/2003
9 9-3-2-1
During the Gregorian Year *1/1/2005
9 9-3-2-3 In –Kingdom Training Assignments at Distance of (50-99 )km 1/8/2004
9 9-3-3 In- Kingdom Training Assignments (Exceeding (180) Days) 1/1/2004
Date of
Implementation
Out – of – Kingdom Work and Training Assignments (not
9 9-3-4 1/1/2003
Exceeding sixty 60 Days)
1/1/2003
9 9-3-4-2 Compensation *1/1/2005
*1/10/2007
Work & Training Assignments for One Day(without Staying 1/12/2003
9 9-3-5
Overnight) *1/12/2007
9 9-3-6 Advance Payment for Work & Training Assignments 1/8/2003
1/1/2003
9 9-5 Reimbursement of Permanent Transfer Expenses
*1/2/2011
1/6/2003
9 9-6 Controls of Serving Meals by Company or other Parties
*1/6/2007
1/1/2003
9 9-7 Compensation of Air Tickets for Expatriates 1/1/2007
*1/9/2009
Eligibility of Air tickets to Family of Expatriate Employee whose
9 9-8 1/8/2007
Grade is Below (47)
Expatriate Employees' Fees for Passports, Work & Residence
9 9-9 1/1/2003
Permits and Transfer of Sponsorship to Company
Reimbursement of Expatriate's Personal Effects Shipment
9 9-10 1/1/2003
Expenses
9 9-11 Reimbursement of Mobile Telephone Expenses 1/1/2003
9 9-12 Reimbursement of Driving Licenses 1/1/2003
Compensating Company engineers ( Saudis & non- Saudis) for
9 9-13 1/10/2010
membership fees to the Saudi Association of Engineers.
1/8/2004
10 10-4 Grievance
*1/1/2008
10 10-5-16 Authorities of Imposing Penalties 1/8/2003
10 10-6 Conflict of Interest 1/6/2003
1/8/2004
10 10-7 Obtaining Commercial Registration or Profession License
*1/12/2004
10 10-10 Health Care 1/9/2003
11 11-3-3 Service Termination by Early Retirement 2/8/2003
11 11-3-3-1 Approval Authorities for Early Retirement Request 6/5/2008
11 11-3-4 Service Termination by Normal Retirement 1/12/2003
11 11-3-4-2 Effectiveness of Expatriates' Normal Retirement 1/7/2007
11 11-4-3 Exemption From the One – Month Period Notice 1/11/2004
3/9/2005
Treatment of weekly rest/ public holidays when employee's services
11 11-7 *1/7/2008
are terminated
*1/6/2010
11 11-8 Eligibility of Air Tickets Upon Service Termination 1/1/2003
11 11-9 Shipment of Personal Effects 1/1/2003
24/3/2004
11 11-11 Reinstatement of Terminated Employee to Work *1/2/2006
*1/4/2011
Settlement of insurance contributions for the period of work
11 11-10-3 1/12/2007
discontinuation
11 11-10-4 Settlement of allowances for the period of work discontinuation 1/12/2007
Note: The asterisk (*) in this table means modified on the date shown thereon-
Date of
Acknowledgement & Paragraph no: (Tenth) is added

Undertaking by to the acknowledgement to
Attach Employee Applying show that the unpaid leave
01/01/2011 Six
no:1 for a Leave without should be approved by the
Pay ( for More Than authorized person before it is
(30) days). stated.
Paragraph: (C) is modified to
clarify that the approved
Requirements for distance requirement for
Compensating compensating the permanent
01/01/2011 Nine 9-5-1
Expenses of transfer expenses is assigned to
Permanent Transfer. employees transferred between
cities or governorates of the
Kingdom.
Paragraph:(D) is modified to
show that terminated employee
is eligible to wages of public
Terminating holiday and weekly rest days,
Employee Services when his services are terminated
01/01/2011 Eleven 11-7-1
for Any Reason during the weekly rest days
(Other Than Death). which directly follow the public
holiday, if such employee
works the last working day
preceding the public holiday.
Modifying distribution of
01/05/2010 Four 4-6-1 Annual Increment Performance Appraisal Rates to
comply with approvals of 2009.
Modifying Paragraph (A) to
Eligibility to Annual
show how days of unpaid leave
01/05/2010 Four 4-6-2 Increment during
during the annual increment
Unpaid Leave
period will be treated.
Salaries Adjustment
Adding a policy for adjustment
of Expatriate
of salaries of expatiate
01/05/2010 Four 4-6-11 Employees who have
employees who have obtained
obtained the Saudi
the Saudi nationality.
Nationality
Adding a clarification on the
Eligibility to medical treatment of the Saudi
01/05/2010 Five 5-3-2
Medical Care employee's daughter who
becomes widow or divorced.
Date of
Adding an amendment to
conditions of granting the new
Scheduling of
01/05/2010 Six 6-2-3 employee his first short annual
Annual Leave
leave before he completes (9)
months in service.
Adding a clarification on how
employee's performance is
Partial Annual appraised for the period he
01/01/2010 Four 4-6-3 Increment Upon served (from the beginning of
Service Termination the Gregorian year in which his
services are terminated up to
date of service termination).
Method of granting Gifts of
Continuous Service
01/01/2010 Five 5-5-3 Continuous Service has been
Gifts
modified.
Method of granting Gifts of
Early and Normal
01/01/2010 Five 5-6-2 Early and Normal Retirement
Retirement Gifts
has been modified.
The policy for Leave Without
Pay has been modified to cover
01/01/2010 Six 6-15 Leave Without Pay a clarification on the leave
duration, conditions and
approval authorities.
Modifying requirements for
Standards of employment of Industrial
2-4-1
1/9/2009 Two Employment for Security Departments' nominees
E
Saudis
.
Adding an explanation on
Eligibility to approved documents needed for
1/9/2009 Five 5-3-2
Medical Care employee's daughter to continue
having medical care
Adding the basic articles of the
1/9/2009 Five 5-4 Saving & Thrift Plan Saving &Thrift Plan and
modifying its policy
Compensating wages Adding the number of sick leave
1/9/2009 Six 6-8-1
of sick leave days days allowed without pay.
The whole article is modified to
Arranging payment
show the gradual arrangements
of sick leave wage as
1/9/2009 Six 6-8-2 for payment of sick leave wage
per duration of
as per duration of period of
period of sickness
sickness.
Date of
Modifying article (3) to show

how air tickets value is
1/9/2009 Nine 9-7-4-3 Cash Compensation determined and according to
which cash compensation will
be made.
Controls for Saudi Modifying the whole paragraph
Employees pursuing related to controls of Saudi
1/6/2009 Four 4-6-9
college study while Employees pursing college
in Company service study while in Company service
Rewarding Adding a new paragraph
competent specifying the rewards for
1/6/2009 Five 5-7
employees detecting competent employees detecting
customers violations. customers violations
Modifying the paragraph to
Death of employee's
specify days of eligible leave
1/6/2009 Six 6-14 immediate family
when an employee's immediate
member
family member passes away
Adding a new paragraph
Overlapping of all
clarifying how all types of
1/6/2009 Six 6-2-17 types of leaves with
leaves will be treated when they
the annual leave
overlap with the annual leave
leaves will be treated when they
Treatment of leaves
overlap with the sick leave
1/6/2009 Six 6-8-4 overlapping with the
sick leave
Modifying paragraph no(6-15-

2) and adding paragraph no( 6-
1/6/2009 Six 6-15 Unpaid leave 15-3) to clarify procedures for
settlement of GOSI installment
during the unpaid leave.
Treatment of leaves
Six 6-15-9 overlapping with the
1/6/2009 leaves will be treated when they
unpaid leave
overlap with the unpaid leave
Adding a new paragraph on how
service period for employees
1/6/2009 Eleven 11-5 Service period whose date of employment is
before 1/1/2003 OR on or after
1/1/2003 will be calculated
Date of
Modifying the paragraph by

Calculation of Endadding controls for calculation
1/6/2009 Eleven 11-6-1
of Service Award of end of service award within
the attachment of Chapter 11
Modifying the paragraph of
Generation,
allowance eligibility and
Transmission &
1/3/2009 Four 4-8-5 amount by dividing eligible
Transformer Plants
employees to three categories as
Allowance
per amount of allowance
Amount payable to Increasing amount payable to
1/3/2009 Five 5-9-2
employee's widow employee's widow
Controls for payment Modifying the paragraph to
of the lump sum determine the party authorized
5-9-2
amount payable to to receive the amount to be paid
1/3/2009 Five Paragraph
employee's heirs by the Company to the decadent
(D)
when none of employee's children ( sons and
widow(s) is alive daughters)
Amount to be paid to Increasing the amount to be paid
1/3/2009 Five 5-10-2 employee in case of to employee in case of total
total disablement disablement
Sports and Cultural Modifying the sports and
1/3/2009 Six 6-10
Activities Leave cultural activities leave
Leave for employees An explanation has been added
who completed to the paragraph regarding the
1/3/2009 Six 6-12
(25,30,35,40) years period during which employee
of continuous service may use such leave
Date of
Controls for Adding an item specifying the

eligibility of salary on which the service –
employee to end award will be based in case
1/12/2008 Four 4-6-10
promotion if his employee becomes eligible for
services end after promotion before end of his
that date service
Modifying the paragraph related
Detention of
to period specified by the
employee by
Company for employee to
Governmental
1/12/2008 Six 6-13-2 report to duty, along with
authorities for
actions to be taken in case of
reasons not related to
reporting or none during the
Company business
(90) days period
Settlement of
insurance
contributions to Adding a clarification on the
GOSI by the action to be taken by the
employee having an Company against such
1/12/2008 Six 6-15-2
un-paid leave the employee when he fails to settle
total of which the insurance contributions at
exceeds (30) days the target date
during any
Gregorian year
Acknowledgement Modifying paragraph (seven) of
and Undertaking the form to show how such
Attach- Form for employee employee will be treated if he
1/12/2008 Six
(1) applying for an fails to settle the insurance
unpaid leave ( more contributions on its monthly
than 30 days) target date
Adding new paragraph showing
Treatment of weekly
how wages of weekly rest and
rest/ public holidays
public holidays will be treated
1/12/2008 Eleven 11-6 when employee's
when end of service coincides
services are
with weekly rest or public
terminated
holiday-
Specified term Modifying terms of contract
1/6/2008 Two Attach(2) contract for non- renewal and cases of contract
Saudis termination
Controls for
employment and Modifying controls for
1/6/2008 Four 4-6-8-1 promotion of employment and promotion of
Division Managers Division Managers and higher.
and higher
Date of
Promotion
Adding a condition regarding
requirements for
the relationship between the job
employees obtaining
1/6/2008 Four 4-6-9-3 proposed for promotion and the
university degrees
field of specialty showing date
while in Company
of promotion
service
Modifying the housing
Amount of housing
1/6/2008 Four 4-8-1-2 allowance for employees and
allowance
increasing its minimum limit.
• Saving &Thrift regulation
for Saudis is added-
• Regulations and
clarifications are added to
1/6/2008 Five 5-4 Saving & Thrift Plan the chart-
• Forms (1&2) of the Saving
&Thrift plan are amended-
• Some of the articles in the
chart are modified
Adding clarifications on how
Compensating
travel time is recorded and how
expenses of Work&
1/6/2008 Nine 9-3 Work& Training Assignments
Training
locally and abroad are
Assignments
compensated.
Approval authorities Approval authority for requests
1/6/2008 Eleven 11-3-4-1 for early retirement of early retirement is specified
requests as per level of the applicant.
Division Managers and higher
Categories excluded
are added to the categories
1/1/2008 Four 4-6-1 (C) form the distribution
excluded from distribution of
rates of performance
the performance rates.
List of continuation
Adding settlement of absence
or suspension of
1/1/2008 Four Attach (1) period from work to item no(14)
payment of
of leaves without pay.
allowances
Work& Training
assignments for one Clarifying cases of travel
1/1/2008 Nine 9-3-5 day (without staying compensations ( by air or
over night) locally land…).
and abroad
Modifying grievance procedures
Procedures of by adding clarifications on the
1/1/2008 Ten 10-4-2
Grievance job level of the direct supervisor
of the grievant employee.
Date of
Clarification on Adding an explanatory table on

1/1/2008 Ten 10-4-3 Grievance the route of grievance
procedures route procedures
Settlement of Adding a policy for settlement
Insurance of insurance contributions for
1/1/2008 Eleven 11-9-3 contributions for the the employee's discontinuation
period of work period from work when
discontinuation reinstated.
Adding a policy for settlement
Settlement of
of allowances for the
allowances for the
1/1/2008 Eleven 11-9-4 employee's discontinuation
work discontinuation
period from work when
period
reinstated.
The concept of the year is
modified to become (calendar
Gregorian year from January 1st
1/10/2007 Six 6-8 Sick Leave to December 31st) instead of the
(Gregorian 365 days year that
starts form date of the first sick
leave).
Patient's Escort
1/10/2007 Six 6-9 to December 31st) instead of the
Leave
( Gregorian 365 days year that
starts form date of the first
patient's escort leave).
Leave for practicing
to December 31st) instead of the
1/10/2007 Six 6-10 sports and cultural
( Gregorian 365 days year that
activities
starts form date of the first
leave for practicing sports and
cultural activities.
Leave for
Period of eligibility is explained
participation in the
to become (one calendar
1/10/2007 Six 6-11 (Improvement)
Gregorian year) instead of (one
Program, paragraph:
year).
(C): Quality Advisor
Date of
Policy of compensation for

Compensations for Work& Training Assignments
Work& Training abroad which does not exceed
Assignments abroad (60) days is modified by adding
1/10/2007 Nine 9-3-4-2
the duration of a financial allocation to cover
which does not housing expenses according to
exceed (60) days the foreign country where such
assignments are held.
Recording of Schedule of Weekly Rest
1/9/2007 Three 3-4-4
Weekly Rest Recording is modified.
Calculation of Method of calculation of
1/9/2007 Three 3-5-3
Overtime Overtime Wage is modified.
Method of
Method of calculating the Basic
1/9/2007 Four 4-5-1 calculating the Basic
Salary is modified.
Salary
Formula of calculating the
Eligibility of Annual
1/9/2007 Six 6-2-1 monthly eligibility of Annual
Leave
Leave of paid days is modified.
Adding a new item for Leave of
1/9/2007 Six 6-17 Leave of Delivery
Delivery.
Controls of serving Correcting a typing error in
1/8/2007 Nine 9-6 meals by the displaying the cost for each
Company or others visit.
Controls for bringing
families of Adding controls for bringing
Expatriate families of Expatriate
1/8/2007 Two 2-7
Employees to live Employees to live with them in
with them in the the Kingdom.
Kingdom
Adding a clarification on the
Cases of eligibility of compensation for
1/8/2007 Three 3-5-2 compensation for Overtime Work when it
Overtime Work coincides with Local Work/
Training Assignments.
Adding another
Adding another condition to
condition to
1/8/2007 Four 4-6-4-5 requirements of promotion
requirements of
regarding University Degree.
promotion
Clarification on eligibility of
Eligibility of housing
1/8/2007 Four 4-8-1-1 Sponsor Employee (Muhram) to
allowance
housing allowance.
Date of
Eligibility of Health
Adding a clarification on
Care to family
eligibility of Health Care to
members of
1/8/2007 Five 5-3-13 family members of expatriate
expatriate employees
employees who are below
who are below
grade: (47).
grade: (47)
Gifts of Continuous Modifying the policy for
1/8/2007 Five 5-5-3
Service continuous service gifts
Air tickets, Visas Clarification on Eligibility of
1/8/2007 Six 6-2-17 and Leave's Advance sponsor employee(Muhram) to
Payment air tickets.
Paid Leave to Adding a policy to grant
Employees who have employees who have completed
1/8/2007 Six 6-12 completed (25,30,35,40) years of
(25,30,35,40) years continuous service a Paid
of continuous service Leave.
Compensating Clarifying total periods of Work
expenses of Work& &Training Assignments
1/8/2007 Nine 9-3
Training expenses covered by
Assignments compensation.
Controls of serving Modifying controls of serving
1/8/2007 Nine 9-6 meals by the Meals by the Company or
Company or others others.
Compensation of Air Clarification on eligibility of
1/8/2007 Nine 9-7 tickets for Sponsor Employees "
Expatriates Muhrams" to air tickets.
Eligibility of Air
tickets to Family Clarifying Eligibility of Air
Members of tickets to Family Members of
1/8/2007 Nine 9-8
Expatriate Employee Expatriate Employee whose
whose grade is grade is below (47).
below (47)
Clarifying date of normal
Date of Normal retirement effectiveness for
1/8/2007 Eleven 11-3-4-2 Retirement expatriate employee when his
Effectiveness Date of Birth is recorded in the
Gregorian calendar only.
Modifying the policy to include
Weekly Rest during
1/1/2007 Three 3-4-5 Work/ Training
for employees working on Shift
Assignments
&Hour Basis.
Date of
Adding date of Annual

Partial Annual Increment Eligibility to
Increment upon Paragraph (A), and Amendment
1/1/2007 Four 4-6-3
termination of of the Partial Annual Increment
employee's services calculation formula in
Paragraph (B).
Official Holidays & Adding how Official Holidays
Occasions during & Occasions during Work&
1/1/2007 Six 6-3-1
Work& Training Training Assignments are
Assignments considered.
Modifying distribution of
Performance
1/1/2007 Seven 7-3-2 Performance Rates on Business
Overall Rating
Units levels .
Adding this phrase:" at a
Local Training
distance of (50-99)Km" to
Assignments at a
1/1/2007 Nine 9-3-2-4 specify the distance between
distance of (50-
places of Work Assignment and
99)Km
Permanent Residence.
Amendment and examples on
Compensating Air
policy of Air Tickets
1/1/2007 Nine 9-7 Tickets to Expatriate
Compensation to Expatriate
Employees
Employees.
Unspecified Term
Employment
Attachment Adding " City of Origin" to
1/1/2007 Two (1)
Contract for
items of contract.
Expatriate
Employees
Specified Term
Employment
Attachment Adding " City of Origin" to
1/1/2007 Two (2)
Contract for
items of contract.
Expatriate
Employees
Modifying requirements of
1/6/2006 Two 2-8 Reinstatement
Reinstatement.
New Policy/
treatment of Weekly Adding a clarification on how
Rest for Shift the Weekly Rest for Shift
1/6/2006 Three 3-4-5
Workers during Workers will be treated during
Training Training Assignments.
Assignments
Adding Work Schedule
1/6/2006 Three 3-5-4 Shift Schedule
(5-2,5-2,5-1) to the Policy.
Promotion of Adding date of Effectiveness for
1/6/2006 Four 4-6-4-7
Employees the Promotion.
Date of
Adding Early Retiree and his

Compensating
eligible family members to the
Medical Care
1/6/2006 Five 5-3-5-2 cases of (75%) compensation
expenses in case of
for medical care expenses in
emergency
case of Emergency Abroad.
Terms of granting
Examination Leave
to employees Adding the phrase:" Inside the
1/6/2006 Six 6-7-1
enrolled in State Kingdom" to the Heading.
Schools, Colleges
and Universities
New Policy/leave for
Adding a leave policy for
participation in the
1/6/2006 Six 6-11 participation in the(Tahseen)
(Improvement)
Improvement program.
program
New Policy/ Unpaid
Adding a policy for Unpaid
1/6/2006 Six 6-15 Leave for Pursuing
Leave for Pursuing Study.
Study
Clarification on Transfer of the
1/6/2006 Eight 8-8 Training Program training program graduates to
other jobs.
Clarification on Periods of
Work& Training Work& Training Assignments
1/6/2006 Nine 9-3
Assignments (Locally and Abroad) covered
by expenses compensation.
Reinstatement of Amendment to terms of
1/6/2006 Eleven 11-9-1 Terminated Reinstatement of Terminated
Employee Employee.
Adding definition of " Unit
1/7/2005 Definitions ------- Unit Supervisor
Supervisor".
Work Allowance for
workers at
Adding list of Approved
Four 4-8-5 Generation,
Stations (Attachment no: 2).
1/6/2005 Transmission and
Transformer Stations
Practicing Sports and Clarifying the Concept of
Six 6-10
Cultural Actives Gregorian Year.
People covered by Extending period of Medical
1/5/2005 Five 5-3-2
Medical Care Care to Saudi Retirees.
First Issue of the Human Resources Policy Manual.
1/4/2005

HR Manual at 01-06-2011

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Human Resources Policy

* Article number: (9) of the Saudi Labor Law reads as follows:

Condition no. (4) is modified to

The Company aims at establishing HR policies characterized by reliability,

Occupants of supervisory positions at all levels in the Company are responsible

Policies of this approved manual supersede all HR regulations issued before,

Saud AbdulAziz Al-Shammari

For consistency of interpretation, the following terms and expressions are

President & CEO

Executive Vice President / Senior Vice President

Sector Executive Director, Operating Area

Sector Executive Director (SED)

Single Status of Saudi Employee

Single Status of Expatriate Employee

Eligible Saudi Employee Dependents

Eligible Expatriate Employee Dependents

Work Organizational Chart

Penalties and Rewards Regulations

Professional Development Program – PDP

On Job Training Program

Job Development Program (Route)

Administrative Development Program (Leadership)

End of Service Award

Social Insurance Regulations

1-1 Policy Statement

1-2 Manpower Planning Procedures

A. Manpower Planning Dep. guided by the Company's general business

jobs, number of required employees and available vacancies as per

2-1 Policy Statement

(G). Preparing the employment procedures for the successful

2-2-2 Department Managers

2-2-3 Approval of Employment

2-3 Priorities of Employment

2-3-3 Non- Saudis

the Kingdom before initiating efforts of recruitment from out of

2-4 Standards of Employment

2-5 Service Date

2-5-2 Non- Saudis

2-6 Employment Mechanism

2-6-2 Announcement within Company

2-6-3 Interview by Proponent Department

2-6-4 Employment Offer

2-6-5 Medical Examination

2-6-6 Employment Agreements

(A) Unspecified Term

(B) Specified Term

2-6-8 Duration of Probationary Period

2-7 Controls for Brining Expatriate Employee's Family to KSA

This Employment Contract is made this ______ day of ________________ (Gregorian

And __________________________________ hereinafter called “THE SECOND

1). Duration of Contract

3). Probationary Period

5). Work Schedule and Working Hours

6). Fees and Taxes

7). Inventions and Right of Ownership

9). General Provisions

EMPLOYEE ON BEHALF OF SAUDI ELECTRICITY COMPANY

This Employment Contract is made this ______ day of ________________

Between The Saudi Electricity Company in the Kingdom of Saudi Arabia,

And __________________________________ hereinafter called “THE SECOND

3) Employee's Social Status upon Employment ( Bachelor Status):

7) Work Schedule and Working Hours

This Employment Contract is made this day of __________ (Gregorian

This Employment Contract is made this day of __________

This Employment Contract is made this day of _____