Confidentiality Class External Confidentiality Label Document Type Page

Ericsson Internal Instruction 1 (6)

Prepared By (Subject Responsible) Approved By (Document Responsible) Checked

EPRIYKA Priyanka Kapoor BMASDB [Abhishek Kumar LL]

Document Number Revision Date Reference

BMAS-20:010869 Uen B 2020-09-29 Local Instruction

Company Lease Accommodation

Enclosures

1 Standard Company Leased Accommodation Agreement

2 Undertaking by the employee

Application

This document is to define and describe the eligibility and process for availing the Company
Leased Accommodation in EGI and shall be available to the employees, who are at the level
of Director (i.e. Job Stage 9) and above subject to approval from EGI MD and EGI People
Head.

Contents

1 Instruction .................................................................................................................................. 2
1.1 Coverage .................................................................................................................................2
1.2 Entitlement .............................................................................................................................2
1.3 Execution of Company Leased Agreement .................................................................2
1.4 Forms to be submitted to MOAI LAS team by the employee. ...............................2
1.5 Closure of Present Lease Agreement and Signing of a Fresh Agreement .........3
1.6 Renewal of the present lease agreement .....................................................................3
1.7 Brokerage................................................................................................................................4
1.8 Security Deposit ....................................................................................................................4
1.9 General Guidelines ...............................................................................................................4
1.10 Exception for Mumbai.........................................................................................................5
1.10.1 Personal Lease Mumbai .....................................................................................................5
1.11 Interfaces (Distribution/filing) .........................................................................................5
1.11.1 Internal ....................................................................................................................................5
1.11.2 External ...................................................................................................................................6
2 Responsibility ............................................................................................................................ 6
3 Contacts for this Instruction ................................................................................................... 6
4 References .................................................................................................................................. 6
5 Change Information ................................................................................................................. 6
Confidentiality Class External Confidentiality Label Document Type Page

Ericsson Internal Instruction 2 (6)

Prepared By (Subject Responsible) Approved By (Document Responsible) Checked

EPRIYKA Priyanka Kapoor BMASDB [Abhishek Kumar LL]

Document Number Revision Date Reference

BMAS-20:010869 Uen B 2020-09-29 Local Instruction

1 Instruction

1.1 Coverage

Company Leased Accommodation shall be available to the employees, who are at the level
of Director (i.e. Job Stage 9) and above subject to approval from EGI MD and EGI People
Head.

1.2 Entitlement

The entitlement of CLA is equivalent to HRA entitlement as mentioned in the appointment

terms / salary review communication.

1.3 Execution of Company Leased Agreement

The eligible employee, who is desirous of availing CLA facility, should prepare an agreement
as per the enclosed draft.

Vendor Assessment NEFT Confirmation Supplier's Basic WHT Sheet.xls Vendor Code
Checklist.doc Letter.doc Information.doc Template (Rohit Sehgal).pdf

Documents required for opening a new vendor code:

1. Approved New CLA Letter

2. WHT Sheet
3. Vendor Code Templates
4. Vendor Assessment Checklists
5. Approved NEFT forms
6. Supplier Basic Information
7. Copy of Cancelled Cheque
8. Landlord PAN Card Copies

1.4 Forms to be submitted to MOAI LAS team by the employee.

1. Employee Undertaking form: To be filled by employee

2. RTGS Form: The landlord has to get this filled by the concerned bank in which he is
having an account, in order to open a “Vendor Code”
3. Details of landlords
Confidentiality Class External Confidentiality Label Document Type Page

Ericsson Internal Instruction 3 (6)

Prepared By (Subject Responsible) Approved By (Document Responsible) Checked

EPRIYKA Priyanka Kapoor BMASDB [Abhishek Kumar LL]

Document Number Revision Date Reference

BMAS-20:010869 Uen B 2020-09-29 Local Instruction

Draft Information
sheet rev .doc

The employee should also take a written clearance from MOAI LAS team, in case he/she is
expected to give any security deposit or advance rent to the landlord. This should be a part of
the rent agreement.

CLA Agreement should be prepared on Ericsson Letter Head and the maximum tenure of
the lease is 11 months.

1.5 Closure of Present Lease Agreement and Signing of a Fresh Agreement

Before an employee can enter into a fresh agreement, he/she would be expected to furnish
the house vacation and “no dues certificate”, from the current landlord, after serving due
notice to the landlord as per the agreement. This should also be accompanied by a demand
draft or NEFT transaction in favor of EGI from the landlord, if any security deposit is involved.
All the above shall be employee’s responsibility. The company will disburse any further
security deposit/advance rent for the new lease agreement, only on completion of the above
requirements.

1.6 Renewal of the present lease agreement

A “letter of renewal of the lease agreement”, is to be made on the company letterhead and
the same signed by the authorized signatory of EGI. The employee has to inform MOAI LAS
team, at least one month before the expiry of the current lease agreement.

MOAI LAS team would share the copy of the letter of extension, duly signed by the authorized
signatory on behalf of the company shall be sent to the employee and landlord. Also, with the
accounts department by raising a ticket at “https://ericssonsourcingssc.service-
now.com/navpage.do”.

Unless the lease is extended / renewed, EGI FSSC team will not release the rent amount
(NEFT). Hence, employees are advised to ensure timely action at their end.

Closure / termination of the lease agreement

A notice, “Notice for termination of lease agreement”, would be served as per the terms of
lease, by MOAI LAS Team, on employee’s request. The onus for timely serving of the notice
would rest on the concerned employee. In the event of a shortfall of notice period, recovery
of rent for the number of days of consequential shortfall in notice period (if any), made by the
landlord, would be deducted from the concerned employee’s salary.
Confidentiality Class External Confidentiality Label Document Type Page

Ericsson Internal Instruction 4 (6)

Prepared By (Subject Responsible) Approved By (Document Responsible) Checked

EPRIYKA Priyanka Kapoor BMASDB [Abhishek Kumar LL]

Document Number Revision Date Reference

BMAS-20:010869 Uen B 2020-09-29 Local Instruction

The employee must obtain a clearance confirmation from the landlord at the time of vacation
and send it to MOAI LAS team, along with the security deposit if any, in the form of a cheque
or Demand Draft favoring the organization EGI.

1.7 Brokerage

The brokerage payable by the Organization shall be limited to a maximum of 30 days’ rent.
It shall be paid against an invoice from the broker through NEFT in the name of the
brokerage firm. Any exception from this would need approval from the concerned People
(HR) Head. Brokerage shall be paid once in a year. To get this payment broker will have to
provide NEFT form & other details mentioned in clause 3.10

1.8 Security Deposit

The company will pay a maximum of three months security deposit. Any exceptions to this to
be approved by the concerned People (HR) Head in advance. Though not advised, in case the
landlords are insisting for advance rental, then a maximum of three months rental can be paid
as advance. The responsibility of recovery the security deposit from the landlord lies with the
employee.

1.9 General Guidelines

The SSC / Accounts would normally pay monthly rental by the 7th of every month. If the rent
is in excess of the entitlement, the excess amount shall be adjusted from the employee’s
salary.

No security deposit / advance rent shall be disbursed in case of a self-lease. It is essential,

that the executive, for whom the accommodation is being taken on lease, informs the
company in case the house/flat belongs to any of his relatives and if so, the relationship.

A standard Lease will have only one month’s notice period on either side. It is not advisable
to break-up the rent into monthly rent and hire charges for fitting and fixtures.
Confidentiality Class External Confidentiality Label Document Type Page

Ericsson Internal Instruction 5 (6)

Prepared By (Subject Responsible) Approved By (Document Responsible) Checked

EPRIYKA Priyanka Kapoor BMASDB [Abhishek Kumar LL]

Document Number Revision Date Reference

BMAS-20:010869 Uen B 2020-09-29 Local Instruction

It is possible that the date of signing the lease and the date when the rent liability starts (i.e.
the date of effective occupation) need not to be the same. The Finance department will be
responsible to ensure that payments are made only when due.

The lease agreement will be signed only by EGI People (HR) or his authorized signatory on
behalf of the Company For EGI, the lease agreement will be signed by EGI People (HR) Head.

Any deviation from the enclosed format of the deed, if required by the owner, would need
prior sanction of EGI People (HR) (for details check clause 3.4).

1.10 Exception for Mumbai

 Lease agreement is different. To be approved by EGI People (HR)

 Security deposit can be a maximum of 10 months rental
 Brokerage is a maximum of 2 months rental
 Any exception from above needs prior approval from EGI People (HR)
.

1.10.1 Personal Lease Mumbai

The company will advance 50 % of the security deposit subject to a maximum payment of 6
months security deposit. This will be recoverable in minimum 3 months to maximum 12
months depending on the number of months of security deposit paid by the company.

In cases where company contribution towards security deposit is upto 1.5 months, the same
shall be recovered from the employee in 3 months. In all cases where company contribution
is more than 1.5 months and upto a max of 6 months, the recovery shall be made in double
the period. (For e.g.: if the security deposit is for 6 months, the company contribution towards
security deposit will be 3 months and this will be recovered in 6 months from the employee.)

1.11 Interfaces (Distribution/filing)

1.11.1 Internal

From the employees

 On approval of draft lease agreement
 On approval of security, advances and broker’s fees
 On undertaking for the CLA
To the employee
 Approved CLA agreement
Confidentiality Class External Confidentiality Label Document Type Page

Ericsson Internal Instruction 6 (6)

Prepared By (Subject Responsible) Approved By (Document Responsible) Checked

EPRIYKA Priyanka Kapoor BMASDB [Abhishek Kumar LL]

Document Number Revision Date Reference

BMAS-20:010869 Uen B 2020-09-29 Local Instruction

 Approved security & advance rent

 Approved invoices
With EGI Finance & Shared Service Centre
 On information related to rent, security, advance & brokerage payment

1.11.2 External

With the Landlord (Lesser)

 On issues related to CLA agreement
 On notice for termination and security deposit refund
With the broker - on payment of brokerage charges

2 Responsibility
Responsibility of the employee to initiate & MOAI LAS team to support.

3 Contacts for this Instruction

Process Owner – People Function, GSC India

Process Team – MOAI LAS

4 References
Total Rewards – Group Directive

5 Change Information
The document is updated basis the revised template for Local Instructions