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NORTHLAND ENERGY SERVICES (U.K.

) Ltd

NORTHLAND ENERGY SERVICES U.K. LTD

FIELD OPERATORS PERSONNEL MANUAL

EASTERN HEMISPHERE OPERATIONS

July 2001

Issue Date: 01.07.2001

Issue No:REV 1

Document Ref: Personnel Manual

Author: Roy McIntosh

Page 1 of 38

Approved By: Simon Peach

NORTHLAND ENERGY SERVICES (U.K.) Ltd

Index
1.0 INTRODUCTION ........................................................................................................ 4
2.0 GENERAL CONDITIONS OF EMPLOYMENT .................................................... 5
2.1 Recruitment .................................................................................................................. 5
2.2 Joining .......................................................................................................................... 5
2.3 Classification ................................................................................................................ 5
2.4 Employees on rotation.................................................................................................. 6
2.5 General ......................................................................................................................... 7
2.6 Availability................................................................................................................... 7
2.7 Training ........................................................................................................................ 7
2.8 Appraisals..................................................................................................................... 7
2.9 Promotion ..................................................................................................................... 8
2.10 Equal Opportunities...................................................................................................... 8
2.11 General Obligations...................................................................................................... 8
2.12 Inventions and Patents.................................................................................................. 8
2.13 Outside Activities of Employees.................................................................................. 9
2.14 Company Information .................................................................................................. 9
2.15 Termination of Employment ...................................................................................... 10
2.16 Repayment of Monies ................................................................................................ 10
2.17 Sickness or Injury....................................................................................................... 11
2.18 Private Medical Treatment ......................................................................................... 11
3.0 COMPANY HEALTH, SAFETY & ENVIRONMENTAL POLICY STATEMENT 2001 ..... 12
4.0 HOURS OF WORK ................................................................................................... 13
5.0 LEAVE ........................................................................................................................ 14
5.1 Annual Leave ............................................................................................................. 14
5.2 Compensatory Leave.................................................................................................. 14
5.3 Leave General.......................................................................................................... 15
5.4 National Holidays....................................................................................................... 16
5.5 Compassionate Leave................................................................................................. 16
5.6 Jury Service ................................................................................................................ 16
5.7 Public Duties .............................................................................................................. 16
5.8 Leave of Absence ....................................................................................................... 17
6.0 COMPENSATION..................................................................................................... 18
6.1 General ....................................................................................................................... 18
6.2 Payment of Salary ...................................................................................................... 18
6.3 Standby Time ............................................................................................................. 18
6.4 Bonuses Offshore, Onshore and Special .................................................................... 19
6.5 Maintenance /International Travel Bonus .................................................................. 19
6.6 Overseas Rotational Bonus Payments........................................................................ 19
6.7 Special Bonuses.......................................................................................................... 20
7.0 EXPENSES ................................................................................................................. 21
7.1 Meal and Travel Allowance ....................................................................................... 21
7.2 Travel.......................................................................................................................... 21
7.3 Entertainment Expenses ............................................................................................. 21
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7.4 Credit Cards................................................................................................................ 21


7.5 Company Cars ............................................................................................................ 22
7.6 Private Cars ................................................................................................................ 22
7.7 Hire Cars..................................................................................................................... 22
7.8 Telephones.................................................................................................................. 22
7.9 Relocation Allowance ................................................................................................ 22
7.10 Expenses General .................................................................................................... 23
7.11 Expenses Taxation................................................................................................... 23
7.12 FOREIGN CURRENCY............................................................................................ 23
8.0 BENEFITS .................................................................................................................. 24
8.1 Pension Plan and Death Benefit Scheme ................................................................... 24
8.2 Business Travel and ACCIDENT Insurance.............................................................. 24
8.3 DISCIPLInary PROCEDURE.................................................................................... 24
9.0 ALCOHOL AND DRUG POLICY .......................................................................... 30
10.0 COMPANY PERSONNEL DRIVING POLICY .................................................... 31
11.0 PERSONAL COMPUTERS & SOFTWARE ......................................................... 34
12.0 APPENDICES ............................................................................................................ 36
12.1 MILEAGE RATES .................................................................................................... 36
12.2 HIRE CAR GRADES ................................................................................................ 36
12.3 BONUS RATES 2001 Eastern Hemisphere Operations........................................ 37
12.4 Geographical Coefficient ........................................................................................... 38

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1.0

INTRODUCTION
This Manual outlines the Companys personnel policies that apply to Field
Employees of NES UK LTD.
This manual provides guidance to management and employees in the application of
the Companys personnel policies.
Changing conditions make modifications necessary from time to time and the Company
reserves the right to change or revise its personnel policies or their application as occasion
may demand.
In accordance with the provisions of the Contract of Employment Act 1978 as amended,
employees are required to comply with policy amendments, and changes in their application,
as notified in written statements or in such documents notified to employees.
If there is any conflict between the personnel policies detailed in this manual and in
statements of terms and conditions of employment (and any agreed amendments thereto)
issued to individuals employees, the terms and conditions detailed in those
statements (together with any agreed amendments thereto) will prevail.
Employees are encouraged to discuss their personnel problems with their Supervisors
and Management.
Definition
In this Manual the word company means the employing company Northland Energy
Services UK LTD.
The word employee means any person employed by Northland Energy Services UK LTD.

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2.0 GENERAL CONDITIONS OF EMPLOYMENT


2.1

RECRUITMENT
Authority to recruit and employ rests with those members of Management so
authorised, but the appropriate immediate Supervisor should have an opportunity to
interview and approve candidates.
Each new employee will be carefully chosen, not only for ability and qualification to
handle the immediate opening but also with a view to suitability for future advancement.

2.2

JOINING
New employees are required to: 2.2.1 Undergo a medical examination (including chest x-ray where necessary) carried out
by a Company appointed doctor. Employment is conditional upon the examinees
standard of health being acceptable to the Company.
2.2.2 Provide a curriculum vita.
2.2.3 Provide satisfactory references from previous employers and/or the details of one or
more referees whom the Company may approach.
2.2.4 Provide details of his/her bank account for salary payment.
2.2.5 Provide income tax form P45 relating to previous employment.
2.2.6 Provide Company with his/her National Insurance Number.
2.2.7 Be in possession of a valid passport.
2.2.8 Be in possession of a valid driving licence.
2.2.9 Sign a contract of employment.
2.2.10 Each new employee will be provided with a Statement of Terms and Conditions of
his/her employment.

2.3

CLASSIFICATION
Operations employees are basically involved in UBD Services, Well Testing and Electronic
Data Measurement services offshore and onshore and categories include:
Engineer
Service Co-ordinator
Senior Supervisor
Supervisor
Senior Operator
Operator
Assistant Operator
Trainee Operator

Grade 12
Grade 11
Grade 10
Grade 8 9
Grade 6 7
Grade 4 5
Grade 3
Grade 1 2

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2.4

EMPLOYEES ON ROTATION
Personnel on rotation have the same grade structure as above and conditions of employment
with the following exceptions.
2.4.1
2.4.2
2.4.3
2.4.4

Working period will be 30 days on/30 days off


Holiday entitlement is forfeited.
There will be no days off accrual.
Travel days will be in time off period, 50% travel bonus applicable.

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2.5

GENERAL
It is a condition of Company Employment that, not withstanding classification and category,
all employees will undertake to carry out any tasks within their capabilities if requested by
the Company or any person duly authorised by the Company.

2.6

AVAILABILITY
It is a requirement within the company that all field employees are available for work 24
hours a day, 7 days a week. Employees are required to be available for operations both
onshore and offshore in the UK or overseas.
The Company has the right to change employees assignments, job titles, work schedules, or
employment locations at its discretion.

2.7

TRAINING
Training course are organised by the Company to provide employees with additional
professional qualification, to improve knowledge in their own speciality, to provide
knowledge of new equipment, techniques and safety.
Employees are required to undergo such training whenever and wherever directed by
the Company and refusal to do so constitutes a serious disciplinary action.
The training may be either in the UK or abroad. During training periods compensation will
be at basic salary. Accommodation will be provided and fixed meal allowances paid, if
training is carried out away from the employees home base area.
The Company will pay for the costs of such training, however should the employee
decide to leave the Companys service within 12 months, the course fees in respect of
the minimum training requirements, i.e. Combined Offshore Survival/Fire Fighting/First
Aid Course, may be recoverable from the employee.

2.8

APPRAISALS
Performance appraisals are made at regular intervals, at least once per job, and discussed
with employees by their Supervisors, before submission to Management. Management will
also conduct annual appraisals.

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2.9

PROMOTION
The Management, upon recommendation by area Managers/Supervisors, will decide
upon promotions.
Recommended candidates for promotion will be assessed on past performance,
professional qualification, attitude, ability and experience.
It is Company policy to promote from within the Company whenever possible.

2.10 EQUAL OPPORTUNITIES


The Company seeks at all times to encourage employees to develop full potential in
employment irrespective of race, colour, creed, marital status, disability or sex.
Northland complies with current U.K. legislation with regard to employment and does not
discriminate on the grounds of race, colour, creed, marital status, disability or sex.
Northland will only deviate from this compliance if there is a statutory exemption covering
the employment of individuals.
2.11 GENERAL OBLIGATIONS
Employees are required to: 2.11.1 Obey all lawful orders given by the Company or any person duly authorised by the
Company, use their best endeavours to promote the interest of the company, devote
their entire time and attention to their duties and not engage in any other business.
2.11.2 Regularly, promptly and fully report to the Company or to any person duly
authorised by the Company to receive such reports as to the performance of their
duties and as to the business and affairs of the Company, which may come to their
knowledge.
2.11.3 Ensure that their passport, driving licence, survival and medical documents
(including required vaccinations) are at all times current.
2.12 INVENTIONS AND PATENTS
All employees shall agree that the Company, shall be entitled to sole benefit of, exclusive
property in, any invention and/or improvements in plant, machinery, process or other things
which may be discovered during their employment.

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2.13 OUTSIDE ACTIVITIES OF EMPLOYEES


The Company expects its employees to exercise good judgement with respect to their
activities apart from their employment with the Company, and does not wish to interfere
with the use they make of their own time. However, if their outside activities involve the use
of Company time, equipment, or information, detract from their or other employees job
performance, or are otherwise prejudicial to its interests, such activities naturally become a
matter of justifiable concern to the Company. Such activities include working for a
competitor or engaging in outside business or employment where the knowledge of
Company information or affairs might be used for personal gain. Whenever an employees
contemplated or existing outside activity appears to conflict with Company interest, a
thorough investigation will be made. If such conflict exists, Management will discuss the
matter with the employee, a frank explanation given of how the Company interests or the
employees job performance is affected, and the employee advised to make a decision
between his/her regular employment and outside activity. Continuance by the employee
thereafter in the activity conflicting with the Companys interest may be considered as
grounds for termination.
2.14 COMPANY INFORMATION
Employees must not, in any circumstances or at any time, whether during the
continuance or after the termination of Company employment, impart any information
regarding the business affairs of the Company or of any associated Company, to any person,
firm or company except under the direction of and with the consent of the Company or in so
far as may be required by a Court of competent jurisdiction.
It is the policy of the Company to protect its legal position by taking appropriate action in
the instances where it believes confidential Company information has been used wrongfully
by a present or former employee for personal gain.

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2.15 TERMINATION OF EMPLOYMENT


An employee will be required to give or will be given notice of termination of
employment on the following scale: -

Years of Service

Period of Notice

On part of the company


Probationary period
1 weeks
After Probationary period and less than 4 weeks
5 years
5 12 years
1 week for each complete year of service
12 years or more
12 weeks
1 calendar month

On part of the employee

The Company has the option of paying basic salary in lieu of notice.
2.16 REPAYMENT OF MONIES
On the date of termination, for whatever reason, any sums due by the employee to the
Company may be off set by the Company against any sums due from the Company to
the employee.

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2.17 SICKNESS OR INJURY


In the event of sickness or injury, involving absence from work, the Companys Sick Pay
Scheme will pay employees full pay less the appropriate, according to earnings, weekly (or
daily) rate of Statutory Sick Pay (SSP) for a continuous or cumulative period of 2 months in
each calendar year, in accordance with the rules of the Companys Sick Pay Scheme.
Thereafter SSP is payable in accordance with the rules for the payment of SSP.
On the expiry of the continuous or cumulative maximum period of two months absence,
there is no further entitlement to Companys Sick Pay or any other remuneration from the
Company, (except for any entitlement to SSP, and/or to benefit from the Companys
Personal Accident Insurance). The Company, at its discretion, may extend Companys Sick
Pay beyond two months in exceptional circumstances.
2.18 PRIVATE MEDICAL TREATMENT
The Company operates a Group Private Medical Scheme for the benefit of certain
employees. Eligible employees must have completed six months Company service
before entering the Scheme, and as membership is optional, an employee must elect to join.
The Scheme provides for the employees a choice of private consultation and specialist
treatment free of charge and, where in-patient hospital treatment is necessary, the choice of
a private hospital or nursing home accommodation to a set cost limit and surgeons and
anaesthetists fees free of charge. The Company pays the whole cost of the Scheme
subscriptions in respect of the employees. Members can elect for their wives/husbands and
children to be included in the scheme but the additional subscription to cover the latter will
be borne by the member.
Full details of the Scheme are available on request from the Companys Personnel
Department.

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3.0

COMPANY HEALTH, SAFETY & ENVIRONMENTAL POLICY


STATEMENT 2001
It is the policy of Northland Energy Services [NES] (UK) Ltd., to conduct its business
operations in a manner which, protects people, the environment and property, so far as is
reasonably practicable, from the hazards and the risks presented by its undertakings.
People are our most valuable asset, and their health, safety and continuous development are
our prime consideration. Elimination and reduction of unacceptable risks to health and
safety, together with the protection of the environment, are of equal importance to all other
business principles. Therefore, no job is so important that time cannot be taken to ensure the
risk to health, safety or damage to property or environment is minimised.
The objective of the Company is No Harm to People, Damage to Property or the
Environment. To achieve this objective, the goals of the Company Health, Safety
and Environmental Policy are to:

Identify the hazards and significant risks presented by our activities.


Implement Safe Systems of Work and other necessary Control Measures to eliminate
or reduce, to as low as is reasonably practicable, those risks.
Identify and comply with all applicable health, safety and environmental legislation
and other relevant standards in the implementation of Safe Systems of Work.
Continuously develop our personnel through monitoring of training needs and
provision of relevant training, to help promote health, safety and environmental
awareness and develop a positive health, safety and environmental culture amongst all
employees and contractors.
Implement and maintain effective arrangements for consultation and co-operation
between the Company, all employees and their nominated representatives, our
customers, external agencies, members of the public and the enforcing authorities.
Implement systems and procedures for elimination and reduction of risk through
purchasing, storage, transporting, use and final disposal of materials and equipment,
including reduction, re-use and recycling schemes and planned preventative
maintenance.
Actively encourage timely reporting and thorough investigation of all accidents and
near miss incidents, to identify root causes and corrective actions, together with the
implementation of procedures to establish a No Blame Culture way of thinking
throughout the whole Company.
Identify and control workplace health risks through implementing appropriate health
surveillance and health care programs.
Provide arrangements for auditing Company Management Systems and Workplace
and Process Controls, to ensure identification of opportunities for improvement and
allocation of cost-effective corrective action and Company resources.

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The Vice President, Eastern Hemisphere has executive responsibility for health, safety and
environmental protection within NES (UK) Ltd. However, this responsibility is delegated
throughout all sections of the company, Management, every employee and Company
contractors and all visitors to Company premises and sites Safety is Everyones
Responsibility.

4.0

HOURS OF WORK
Normal hours of work are as follows: At the normal base of employment:
Great Yarmouth Base 08.30 12.30 and 13.30 17.00
There is no overtime entitlement should these working hours be exceeded.
Hours of work on Operations away from normal base, offshore and onshore, will be
determined by the clients shift patterns and personnel will be notified after being assigned.

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5.0
5.1

LEAVE
ANNUAL LEAVE
Annual leave entitlement for operational field staff is as follows: Annual leave is also considered as Compensatory Leave.
Personnel on rotation do not have any annual leave entitlement.
4 weeks (30 calendar days) per annum. For service periods of less than one year, leave will
be calculated at 2.5 days per month of completed service.
No more than 21 days leave may be taken at any single time. The minimum period to be
taken must be in excess of 4 days. No annual leave is to be taken between 15th December
and 15th January.
Staff must request leave dates as early as possible and no later than 1 month before, unless
operations permit, and agreed dates are subject to management approval. The Operations
Manager will co-ordinate the leave plans of field staff to avoid overlapping. Extended
periods of offshore work may be required by employees in order to honour leave
arrangements for colleagues during peaks of activity.
Every effort will be made to respect leave plans but due to operational requirements it
may be necessary to alter or defer leave arrangements.
Compensation for annual leave booked but deferred because of operational
requirements will be one extra day for each day of annual leave deferred. Unused
leave is not normally carried over at year-end. However at the discretion of the Vice
President a maximum of 10 days can be carried forward, but must be used within the
first quarter of the following year.

5.2

COMPENSATORY LEAVE
Operational field staff are entitled to compensatory leave in addition to annual leave as
follows: For periods of work offshore, when offshore bonus is payable, and for periods of work
onshore outside the UK when onshore bonus is payable, each 2 days worked will accrue 1
days leave (2/1).
Compensatory leave may only be taken with the prior authorisation of the Operations
Manager.

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When on Compensatory leave, staff are required to advise their Operations Manager of their
contact point and to make themselves available for work (i.e. contactable) on each of the
compensatory leave days.
It is essential that compensatory leave is taken at the first opportunity and during periods of
low activity, and employees may be directed to do so by their Manager.
At the Companys discretion, large accruals of 2/1 leave may be liquidated by cash
payment at the request of the employee and/or at the option of the Company but only
according to the following rules: !
!
!

!
!
!

5.3

Total accrual must exceed 40 days.


Cash liquidation will not reduce the accrual to less than 30 days.
Cash liquidation will be paid at basic salary levels prevailing at the date on which the
leave was earned and will be paid on a straight day basis, i.e. 1 days pay for 1 days
leave.
No more than two such liquidations will be allowed in any one calendar year.
Any negative compensatory leave days at year-end will be offset by annual leave
balance.
Liquidations can only occur in the second half of the year.

LEAVE GENERAL
All leave payments will be made at the current basic annual salary rates.
New employees cannot take annual leave until six months Company service has been
completed unless previously agreed at interview. An employee, whose employment is
terminated for any reason other than summary dismissal for serious misconduct, will be paid
for salary in lieu of leave calculated at the pro-rata rates indicated in the foregoing.
Deductions will of course be made for leave already taken during the year.
No pay in lieu of leave will be made to an employee summarily dismissed for serious
misconduct.

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5.4

NATIONAL HOLIDAYS
National holidays are not applicable to field staff.
If field staff are required to work on 25th, 26th December or 1st January (one days leave in
lieu will be given for each day worked in addition to 2/1 leave earned.

5.5

COMPASSIONATE LEAVE
An employee who is absent from work on compassionate grounds is not entitled to
any remuneration from the Company for the period of absence. However, in deserving
circumstances such as the death or serious illness of a direct relative, the Company, at its
discretion, will grant paid leave.
Direct relatives are defined, as wife/husband, either of their parents or their dependants, or
in the case of an unmarried employee, their mother or father.
Payment in respect of such compassionate leave will be confined to basic salary and
will not include offshore, onshore or any other operating or special bonus.

5.6

JURY SERVICE
Special leave without pay will be granted, to any employee required to attend a Court of
Law for jury service or as a witness, or to attend a statutory tribunal as a witness. A claim
for loss of earnings in these cases may be made to the Court Authorities.

5.7

PUBLIC DUTIES
Employees are entitled to reasonable unpaid leave to serve on certain public and statutory
bodies as defined in the Employment Rights Act 1996. This right is subject to the reasonable
requirement of the Company that its works shall not be interrupted unnecessarily.
Permission is required as to the times and dates of leave, once an overall amount has
been approved.

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5.8

LEAVE OF ABSENCE
In exceptional circumstances, the Company may grant an employee unpaid leave of
absence for a limited period.
If granted, during the period of absence, no vacation rights will accrue.

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6.0
6.1

COMPENSATION
GENERAL
The Companys objective is to pay each employee according to the value of his job, in fair
comparison with those of similar concerns, and according to the quality of his
performance, in an equitable manner that will provide incentive for improvement and
progress.
A salary is established for each recognised level of job value and is adjusted
periodically to recognise changes in industry earning levels and/or to ensure that it
compares fairly with those of similar concerns.

6.2

PAYMENT OF SALARY
Employees salaries together with any other payments due will be paid directly to
employees bank accounts monthly, normally on the last working day of the month.
Salary deductions will be made for Income Tax, National Insurance, and pension
contributions and for other purposes approved by the Company and authorised by the
employee.
Employees will receive a monthly statement showing details of salary deductions and any
discrepancies should be brought to the attention of the finance department within one month.

6.3

STANDBY TIME
There will no compensation for standby periods, employees are to be available for
work 24 hours a day 7 days a week unless annual leave has been previously booked
and approved.

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6.4

BONUSES OFFSHORE, ONSHORE AND SPECIAL


Offshore, Onshore and Special Bonuses are payable to operations field staff in
accordance with the charge rates listed in 13.3. Operational staff are on 24 hour call
and when offshore may be required to work very long hours, sometimes in excess of 12
hours per day. Additionally, assignments vary considerably in length from 1 or 2 days to 35
days without relief. Bonus rates reflect this unpredictability. Bonuses are due when
personnel are charged to the customer, travel and maintenance periods at overseas locations.
Personnel required to attend Client meetings or perform duties above their current grade will
at the discretion of their manager be eligible to one half days bonus payable at the lowest
bonus rate for their current grade.
If 25th or 26th December or 1st January is worked and bonuses are applicable, a
supplementary bonus equal to the applicable basic rate bonus will be paid. On other
National Holidays, bonuses will be paid at standard rate.
Operational bonuses are payable for the following eventualities:
a)
b)
c)
d)

6.5

Offshore Operations invoiced to client.


Onshore Operations invoiced to client.
Overseas Operations Travel days
Overseas Operations Maintenance days

MAINTENANCE /INTERNATIONAL TRAVEL BONUS


Maintenance/travel bonus is payable for the following eventualities.
a) On the job training (not on charge to clients) at site of onshore or offshore operation,
not including courses at Northland base or elsewhere.
b) Performing equipment maintenance and work at Northland base other that
individuals home base.
c) At a client wellsite not during operation phase.
d) Standby and travel days before or after international operation while away from
home base.

6.6

OVERSEAS ROTATIONAL BONUS PAYMENTS


Personnel working on rotation overseas will be paid bonus at the same rates as shown in the
table 13.3 with the following exceptions.
Personnel will receive 10 days minimum bonus per month whether invoiced to a client or
not. If an excess of twenty days per month are worked which are invoiced to a client the
bonus will be paid for every day invoiced to the client.

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6.7

SPECIAL BONUSES
6.7.1 Training Course Bonus
Payable to supervisors & UBD engineers running approved training courses at
locations and NES base. Applicable for training of both Northland and customer
personnel. Payable at the lower bonus rate for Supervisors.
6.7.2 General
No operating bonuses are payable for any work carried out at NES UK base e.g.
report writing, whether or not invoiced to the client, pre job preparation or post job
maintenance.
6.7.3 Service completion bonus Senior Field Staff & UBD Engineers
An amount of the Senior Supervisors bonus will be withheld and made payable on
satisfactorily completion of the following reporting (see table 13.3)
!
!
!
!
!
!
!

EOW report finalised and accepted by client and archived


Operational Equipment report
Equipment refurbishment report
Crew appraisals
Lessons learned and recommendations
Stock change reports received weekly for job duration
Complete end of job stock check.

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7.0
7.1

EXPENSES
MEAL AND TRAVEL ALLOWANCE
Whilst travelling on Company business, accommodation will be reimbursed at actual
cost if this has not been arranged by the company. A daily allowance will be reimbursed at
20.00 per day, which has been agreed with the local Inland Revenue.
The total for any 24-hour period will not exceed 20.00 and will be reduced by 3.00 when
bed and breakfast accommodation is supplied. The daily allowance covers all meals,
laundry and incidental expenses. Claims for meals/drinks/monies etc against receipts or on
hotel bills are not permitted. The above allowances only will be payable.
Where the Company or it customer provides accommodation with meals subsistence
will not be payable.

7.2

TRAVEL
All travel arrangements will be organised at the operations home base and will be approved
by the relevant department manager or V.P. The standard of air travel when authorised by
the Company will be by the most appropriate and economical fares on scheduled air
services. Higher standards of air travel may only be used, at the discretion of and with the
authorisation of Management, where special circumstances such as operational emergencies
warrant.
When air travel is not authorised, travel to and from assignments is by public road or
rail transport (or where unavailable by taxi), and hire cars, other means of private transport
will only be reimbursed if authorised and approved in advance by Management.

7.3

ENTERTAINMENT EXPENSES
The Company will reimburse entertainment expenses incurred in an effort to improve
customer relations. Management must approve such expenses in advance, and the
relevant expense claims must specify purpose and identify guest(s)

7.4

CREDIT CARDS
Company Credit Cards are not provided. Staff required to travel abroad and in other
special circumstances may obtain Credit Card facilities privately and charge the annual
Credit Card fee (standard cards only) to the company where this card will be wholly used for
company business, with prior Management approval.

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7.5

COMPANY CARS
Company vehicles are not provided for personal use.

7.6

PRIVATE CARS
From time to time employees may be authorised by Management to use their own private
cars on Company business in which case a mileage charge may be claimed by the employee
in accordance with the scale set out in Appendix 13.2. No other expense is claimable in
respect of this.

7.7

HIRE CARS
Cars may only be hired in accordance with 13.2 (Hire Car Grades) at company expense,
authorised and approved in advance by management.

7.8

TELEPHONES
Business calls made on personal mobiles while at locations will be reimbursed. All
other calls will be for the individuals account. Copies of itemised British Telecom
bills or equivalent telephone companies must support expense claims in respect of
telephones calls. When on company business at client wellsites a telephone allowance of
5.00 per week is payable. This allowance requires receipts or telephone cards to be
produced when claiming.

7.9

RELOCATION ALLOWANCE
It is not anticipated that this will be relevant to Eastern Hemisphere operations at this
time. Should this become a need it will be dealt with on a case-by-case basis.

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7.10 EXPENSES GENERAL


The procedure for claiming back reimbursable expenses is to enter them on the
appropriate Company expense form and to submit the form, together with relevant
receipts attached, either to the appropriate base offices or to head Office as directed, on a
monthly basis. Expense claims must be submitted in a timely manner for prompt payment
and to ensure that the client is recharged where applicable. All expense claims must be in
excess of 50.00 to reduce administration costs in processing the claim and be submitted
within 60 days of the expenditure, claims made after this time will not be accepted.
Typical allowable expenses include:
!
!
!
!
!

Passport renewal
Mileage
Business telephone call (Itemised)
Taxis when used in respect of business
Fuel charges for company hire cars

7.11 EXPENSES TAXATION


By Inland Revenue ruling the Company is obligated to declare for tax purposes
individuals expenses whether directly paid by the Company or reimbursed by the
Company.
Where individual claims are made for tax relief on expenses, such claims are a private
matter between the individual and the tax authorities and the Company cannot become
directly involved.
7.12 FOREIGN CURRENCY
Any expense incurred for currency exchange is for the employees account. Rates of exchange
to be used when claiming expenses incurred during overseas assignments will be that as
stated on the Oanda website. The site can be visited at www.oanda.com

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8.0
8.1

BENEFITS
PENSION PLAN AND DEATH BENEFIT SCHEME
On successful completion of your probationary period you will be entitled to join the
Companys group personal pension plan, which is voluntary. The company will match the
employees contribution up to an agreed maximum; the maximum amount may vary over
time.
The company also operates a life assurance scheme for employees. The benefit will be paid
to your dependants in the unfortunate event of your death whilst employed by Northland
Energy Services (U.K.) Ltd. The amount of benefit will be equal to four times your annual
basic salary. You will automatically become a member of the scheme on successful
completion of your probationary period.

8.2

BUSINESS TRAVEL AND ACCIDENT INSURANCE


To assist you in emergency cases where you need medical cover and you are away from the
office on company business, we have arranged with Cega Emergency Service a special
service for you to use. It is available 24 hours a day to provide practical help and assistance.
If an accident occurs or you have any medical problems whilst away call Cega Emergency
Service
From the UK
Outside the UK
Fax

01243 621060
44 1243 621060
01243 773169

You should therefore ensure you carry details of these numbers with you whilst you are
away from the office in case you need medical attention.
The Northland insurance policy is with GAN insurance company and our policy number is
8096H00765.

8.3

DISCIPLINARY PROCEDURE

8.3.1 INTRODUCTION
This document details the procedure that would be followed in the event of it proving
necessary to take action of a disciplinary nature against employees. The intention is that
potential disciplinary cases be dealt with at an early stage with a view to resolving problems
as quickly and fairly as possible. The Employer wishes to emphasise and encourage
improvements in individual conduct.
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8.3.2

PROCEDURE
The procedural steps set out below are a guide and will not be followed in full in every case.
The point at which the procedure is entered or the omission of any of the stages will depend
entirely on the seriousness of the offence. Thus, a series of minor offences or a repetition of
one such offence may involve the entire procedure whilst a more serious offence may well
call for a final warning. Gross misconduct will lead to instant dismissal.
It should be recognised that informal admonitions given by an employees superior are part
of their working relationship and are outside the limit of disciplinary procedure.

8.3.3 OFFENCES OTHER THAN GROSS MISCONDUCT


8.3.3.1 Verbal Warning (For Minor Offences) In case of minor offences the employee will
be given a formal verbal warning.
8.3.3.2 First Written Warning (For Repeated Minor Offences or a More Serious Offence) If
a more serious offence occurs or another minor offence occurs after the issue of a
formal verbal warning the employee will be given a first written warning.
8.3.3.3 Final Written Warning (For Repeated Minor Offences and Very Serious Offences) If
another offence occurs after the issue of a first written warning or if there is an action
which the Employer considers very serious offence a final written warning will be
given to the employee.
8.3.3.4 Dismissal is regarded as the ultimate step and in cases other than gross misconduct
will take place where the employee on a former occasion has been issued with a final
written warning in respect of a similar matter or other cause of complaint.
8.3.3.5 Where a decision to dismiss has been taken the employee will be informed that he
will receive a formal written notice of this decision, together with a clear statement
of the reasons for dismissal.

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8.3.4

PROCEDURE APPROPRIATE AT EACH STAGE


8.3.4.1 At each stage the complaint against the employee shall be notified to the employee
and he shall be interviewed and give the opportunity to state his case. He shall be
told that he can be accompanied by a friend or fellow employees of his choice. At
every stage the employee shall be informed of:
8.3.4.2 His/her alleged shortcoming/misdemeanour
8.3.4.3 What in the view of the Employer needs to be done by way of improvement.
8.3.4.4 The period of time during which such improvement is to be shown (this period must
be reasonable and take into account the nature of the improvement which is to be
carried out).
8.3.4.5 If any assistance or training is to be provided this will be detailed in writing after any
stage within the procedure. If a verbal warning is given then the written record of this
warning will be made in the employees file.
8.3.4.6 As each warning is given by the employer and the employee shall agree (or in default
of the agreement between the employer and the employee, the Employer shall
specify), the period of time to be allowed for improvement not only to be achieved
but also to be sustained.

8.3.5 OFFENCES INVOLVING GROSS MISCONDUCT


8.3.5.1 The Employer will summarily dismiss any employee who he considers to be guilty of
gross misconduct.
8.3.5.2 Before any disciplinary action is taken the employee shall be interviewed and
informed of the allegations against him and the employees to be given ample
opportunity to state his case. He shall be told that he can be accompanied by a friend
or fellow employee of his choice. When a decision in respect of the matter has been
made the employee will be informed and where this decision is to dismiss the
employee will be informed that he will receive formal written notice of this decision.

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8.3.6

SUSPENSION
At each stage the Employer reserves the right to suspend the employee without pay for a
period not exceeding three days, for a longer period with pay should further suspension be
necessary in circumstances where:
8.3.6.1 The action complained of requires the immediate removal of the employee from their
place of work pending a decision concerning any disciplinary action to be taken
and/or
8.3.6.2 The action complained of/alleged requires investigation and it is considered by the
Employer that is undesirable for the employee to remain on duty.

8.3.7

APPEALS
The employee has a right to appeal against any disciplinary action taken against him. The
wish to appeal should be notified in written to the Vice President of the Eastern Hemisphere
and shall be heard whenever possible within 24 hours of the disciplinary plenary interview.
In cases where the disciplinary action has been taken by the Vice President of the Eastern
Hemisphere then no appeal can be made, but he will review his decision as if it were an
appeal if so requested. Unless the appeal is made within five days of the interview, it will be
assumed the employee accepts the disciplinary action taken.

8.3.8

DISCIPLINARY RULES
The disciplinary rules set our hereunder are provided to indicate the standards of
performance and behaviour at work which can reasonably be expected from employees.
It is impossible to list all possible acts of indiscipline which could occur in any employment,
and it should therefore be noted that the rules indicated below are not exhaustive and can
serve only as a guide.

8.3.9 Gross Misconduct


Except in trivial cases which will be treated as misdemeanours the following are examples
of actions which constitute gross misconduct and will lead to summary dismissal:

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8.3.9.1 Refusal to carry out reasonable instructions from a superior.


8.3.9.2 Theft, either from the Employer, its employees, clients, customers or agents,
including the unauthorised possession of any of the Employers goods, materials,
products or produce.
8.3.9.3 Fraud: any deliberate falsification of records or any deliberate attempt to defraud the
Employer or fellow employees. Fraud can include falsification of time sheets, travel
claims, self-certification forms, etc.
8.3.9.4 Violence: any fighting or violence involving any fellow employee or any other
person which takes place on the Employers premises or while on the Employers
business.
8.3.9.5 Indecency which is related to employment with the Employer.
8.3.9.6 Deliberate damage to Employers property, or to the property of fellow employees.
8.3.9.7 Intoxication on the Employers premises or the bringing of intoxicants or illegal
drugs on to the Employers premises at any time.
8.3.9.8 Gross carelessness or negligence: including any action or failure to act which
threatens the health or safety of any fellow employee or member of the public
including any disregard of safety rules which jeopardises the safety of those on the
Employers premises.
8.3.9.9 Failure to comply with the provisions of the Employers Safety Policy.
8.3.9.10 Failure to observe the confidential nature of information concerning the Employer
and the Employers clients
8.3.9.11 Any conduct which does or may bring the Employers business into disrepute.
8.3.9.12 Breach of contract of employment: any fundamental breach of contract which
renders continuation of employment impossible including failure to meet statute
related provisions.
8.3.9.13 Sleeping on duty.
8.3.9.14 Harassment of other members of staff or of others, whether the harassment is sexual,
racial or of any other kind.

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8.3.9.15 Discrimination against other members of staff, applicants for employment or others
which is on the grounds of sex, marital status, race, colour, religion, ethnic origin,
nationality or disability or any other serious breach or nonobservance of the
Employers Equal Opportunities Policy or Code of Practice.
8.3.9.16 Obtaining unauthorised access to, making unauthorised use of or making
unauthorised amendments to information on computers, computer software or
computer hardware.
8.3.10 Misdemeanours
The following are examples of action which may be regarded as action warranting
disciplinary action amounting to less than summary dismissal, and for which dismissal may
be appropriate if corrective action is not taken after the issue of a written warning
8.3.10.1 Unauthorised absence: including unauthorised absenteeism or unauthorised absence
from the work place.
8.3.10.2 Poor standard of work; or inadequate attention to work.
8.3.10.3 Poor timekeeping or attendance: every member of staff is required to give constant
and regular attendance within the terms of their contract of employment.
8.3.10.4 Provocative, abusive or truculent behaviour.
8.3.10.5 Sexist or racist conduct or behaviour of any kind.

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9.0

ALCOHOL AND DRUG POLICY


All pre-employment medicals will include procedures for testing for the presence of
drugs and/or alcohol in the appropriate manner.
Employees are prohibited to be under the influence of alcohol and/or drugs. Or be in
possession of alcohol, drugs or any controlled substances and are forbidden to distribute,
purchase or sell any of these items or substances during working time, or during periods
when it is likely that they will be called upon for work.
Employees are advised that if necessary the Company reserves the right to search
possessions, lockers, baggage and quarters of any person subject to this policy on premises
owned or controlled by the Company or clients of the Company.
Any employee who fails to co-operate with any such search will be removed from the
premises and will not be permitted to return, pending further investigation.
The Company at its discretion reserves the right to request that employees undergo
random drug/alcohol test as required.
Any employee who refuses to participate in medical evaluation for alcohol or drug
testing or tests positive for the presence of alcohol or any controlled substance will
not permitted to perform any work or service on Company premises or business.
Any employee who is unfit to work as a result of alcohol or drug use will be
immediately removed from their place or work and will never again work on Company
business or premises as an employee of the Northland Energy Corporation.

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10.0 COMPANY PERSONNEL DRIVING POLICY

1)

2)

3)

4)
5)
6)

7)

8)

9)

10)

11)

12)

The following are guidelines, which must be adhered to by anyone driving or travelling in a
Company vehicle or Company leased vehicle. Employees are those employed directly by
the Company or other personnel operating under the Companys instruction - otherwise
referred to below as person," individual or driver.
Any person driving a Company vehicle or Company leased vehicle will do this with due
care and attention as if it was their own property - any person found abusing Company or
Company leased property may be subject to disciplinary action.
Any person driving a Company or Company leased vehicle will leave it in a fit state to allow
subsequent drivers to use the vehicle without hindrance. Any vehicle will be delivered back
to Great Yarmouth Base with fuel in it (not empty) allowing subsequent re use.
Vehicles, which have their own fuel cards are to be returned to the Yard Admin Assistant
after refuelling and all receipts are to be logged in the envelope with each vehicle. Mileage
should be annotated on any receipts.
Such vehicles or fuel are only to be used on Company business unless agreed otherwise by
Management.
Only fuel obtained from a regular service station will be used (on site red industrial diesel
will not be used).
No employee will tamper with any speed limiting or statutory devices, such as Tacographs,
fitted to any Company or Company leased vehicle. Any resulting prosecution against an
individual will be the individual's responsibility.
A Company approved service outlet will only carry out servicing of any vehicle. Emergency
repairs in the field must be reported to Great Yarmouth Base. Avoidable damage to vehicles
may be for the individuals, not Company account, at the discretion of the company Insurers.
Where a vehicle is used outside the immediate Great Yarmouth area (10 miles) a mileage
logbook is provided. This will be filled in and signed on a daily basis by each employee
using the vehicle. The logbook should also be used for noting any servicing/repair
requirements. Additionally these should be reported to the Great Yarmouth base.
Hazardous goods may only be transported by Company vehicles when a driver is available
with the applicable ADR qualifications (When such a person is not available, all such goods
should be transported by Third Party Contractors with the applicable documentation).
All employees will observe all applicable local and client site traffic laws, regulations and
speed limits in all vehicles. Any violation of these laws/speed limits, etc., where
prosecution or client disciplinary action occurs, is the individual's responsibility and no
assistance can be expected from the Company. Reckless and dangerous driving will not be
tolerated.
Any Parking Tickets/Fines will be for individual, not Company, account. Any resulting
conviction, disqualification or ban can affect the individual's employment with the Company
where driving is a term or condition of employment.
All employees driving Company vehicles are required to lodge copies of their U.K
and, where applicable, International driving licenses with Great Yarmouth base. Until
the Company has received a copy of the license and/or notification of points,
disqualifications, etc, an employee is not permitted to drive a Company vehicle.

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13)

14)

15)
16)

17)
18)

Any accident of whatever nature, will be reported to Great Yarmouth Base and an
Accident Report Form (obtainable from Great Yarmouth Base) will be filled in by the
individual concerned and forwarded to Great Yarmouth Base as soon as possible.
No employee may be in control of a Company owned or leased vehicle whilst under
the influence of Alcohol or any substance likely to impair safe driving ability. Any person
violating the above will be subject to instant dismissal pending a disciplinary hearing.
Mobile telephones, or other radio communications devices, shall not be used whilst
the vehicle is in motion unless fitted with hands free operation.
As a matter of personal safety, any person driving a Company vehicle is expected to
observe the following:
Only authorised and/or designated drivers shall drive vehicles.
A walk around is to be carried out before driving any vehicle to check tyres (including
spares), lights, indicators, horn, wipers, mirrors, fluid levels, etc.
Adequate supplies of emergency provisions must be maintained, e.g., first aid kit,
drinking water and means of communications.
A vehicle will not be driven with any warning lights showing on the dashboard.
Before reversing, a clear path must be confirmed by the driver.
Any load in vans/trucks will be adequately secured to prevent loss or shifting. On open
backed vehicles the necessary ropage/securing devices should be fitted.
Passengers are not to be carried on the back of open backed vehicles.
Seat belts shall be worn at all times.
Personnel should take regular breaks from driving on long journeys, i.e. 15 mins break
every 2 hours driving.
Private vehicle users Company personnel that use their own private vehicles on Company
business shall observe the following before using their vehicles:
A copy of their current motor vehicle insurance, which includes cover for business use,
shall be provided to the Company.
(Note: the Company shall pay a mileage allowance at current Inland Revenue rates to
cover fuel, additional business use insurance cover and general wear and tear).
A copy of the vehicles current MOT Certificate shall be provided.
The general provisions of sections 10 17 above shall be complied with.
Personnel should take regular breaks from driving on long journeys, i.e., 15 min.s
break every 2 hours driving.
Smoking is not permitted in leased vehicles at any time.

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19)

20)

For Field Based Operatives, i.e., those driving/travelling within foreign countries and
between remote locations, such as dessert based rig sites, the following must be observed:
Drivers must follow all local Journey Management Program requirements for provision
of passenger numbers and names, checking in with Journey Management Controllers at
designated travel points and, adhering strictly to driving time limits.
No driving must be undertaken outside of city/town limits after dark.
Drivers must ensure provision of emergency supplies and means of communication
whilst driving between remote locations.
In field journeys, regardless of duration, must be only undertaken in compliance with
Journey Management requirements.
Smoking is not permitted in leased vehicles at any time.

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11.0 PERSONAL COMPUTERS & SOFTWARE


The Company licenses the use of computer software from a variety of outside
companies. Northland does not own this software or its related documentation and,
unless authorised by the software developer, does not have the right to reproduce it.
With regards to use on local area networks or on multiple machines, Northland
employees shall use the software only in accordance with the licence agreement.
Employees learning of any misuse of software or related documentation within the
organisation shall notify their manager, the Operations Support Manager or the Personnel
Manager.
According to UK copyright law, persons involved in the illegal reproduction of software can
be subject to unlimited civil damages and to criminal penalties, including fines and
imprisonment. The Company does not condone the illegal duplication of software, and any
employee who makes, acquires or uses unauthorised copies of computer software will be
disciplined as appropriate under the circumstances. Subject to the Companys disciplinary
procedures, this may include termination of employment.
Employees must not use unauthorised software on Company personal computers. This
particularly applies to computer games that may be carriers of computer viruses. Failure to
comply with this requirement will be regarded as a serious disciplinary offence up to and
including termination.
The Internet is a powerful business tool that can provide a great deal of useful
information. Unfortunately, it can also be a distraction from productive work time
when browsing non-business related sites and sending inappropriate email in additional to
creating a legal liability for the Company.
In an effort to clarify our position on the use of the Internet and Email, while utilising
Precision owned computer systems, the following applies. The display or transmission of
sexually-explicit images, messages or cartoons, or any transmission, that contains ethnic
slurs, racial epithets, or anything that may be construed as harassment or disparagement of
others based on their race, national origin, sex, sexual orientation, age, disability, religious
or political beliefs is not permitted at any time.
Precisions Email and Internet usage policies will be enforced with zero tolerance. If,
through the course of managing our technical resources, issues come to our attention
and depending on the seriousness of the incident, disciplinary action can include
termination of employment for just cause without notice or severance in lieu of
notice.
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If you do receive any of the inappropriate material mentioned above via Email, it is
your responsibility to immediately delete the message from your system and not to
forward to anyone else.
The Company has the right and capability to monitor Internet browsing and Email
usage by each user on the system. Be responsible for using Precision's Information
Systems in an effective, ethical, and lawful manner. Individual users are responsible
for their own actions and for any outcome attributable to those actions.

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12.0 APPENDICES

12.1 MILEAGE RATES


Motor cars and vans
Up to 10,000 business miles
Over 10,000 business miles

40p per mile


25p per mile

Motor cycles

24p per mile

Bicycles

20p per mile

12.2 HIRE CAR GRADES


The grade of hire car which employees may use in approved circumstances is as follows:Grade

Classification Group

All Personnel

Group C

Any upgrade requested will be for the employees account unless otherwise approved by
your Manager. (Upgrades given by the Hire Company should not incur any cost).

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12.3 BONUS RATES 2001

Grade

Title

EASTERN HEMISPHERE OPERATIONS


UBD &
International

Onshore UK Well
Testing

Travel &
Maintenance

160.00

N/A

65.00

12

UBD Engineer

11

Project Coordinator

140.00**

100.00**

65.00

10

Senior Supervisor

130.00**

100.00**

65.00

Supervisor

110.00

90.00

55.00

Supervisor

110.00

90.00

55.00

Senior Operator

100.00

80.00

50.00

Senior Operator

100.00

80.00

50.00

Operator

90.00

75.00

45.00

Operator

80.00

65.00

40.00

Assistant Operator

70.00

55.00

35.00

Assistant Operator

60.00

45.00

30.00

Trainee Operator

50.00

35.00

25.00

Field staff on rotation will be paid 10 bonus days per month at the applicable rate. Any days
invoiced to a client in excess of 20 days per month will be paid at the rates in the above table.
**
To encourage timely and efficient reporting 20.00 per day will be
withheld from the Senior Supervisors bonus until such times that all
reporting has been satisfactorily completed.

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12.4 GEOGRAPHICAL COEFFICIENT


The following table shows the Geographical Coefficient (GC) to be applied to the bonus
rate. The GC is payable from the time of start of each assignment. The GC will be subject
to change and review at regular intervals.

Country/Region

Multiplier (GC)

EU Countries, Scandinavia & North


America
Eastern Europe
Former Soviet Union (FSU)
North Africa
Algeria, Libya
Middle East
Iran, Iraq, Yemen
Saudi Arabia
Far East
Vietnam, China, Burma & certain areas
of Indonesia

1.00
1.15
1.25
1.15
1.50
1.15
1.50
1.25
1.15
1.50

e.g. Supervisors bonus for working in Libya on UBD project.


130.00 x 1.5 = 195.00
Countries or areas not in this list will be assigned as required.

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