2016

HUMAN CAPITAL MANAGEMENT

LSE Financial Services Limited
March 02, 2016 with Proposed changed

LSE Financial
Services
Limited

HUMAN CAPITAL
MANAGEMENT MANUAL

TABLE OF CONTENTS
1.

GENERAL

1)
2)
3)
4)
5)
6)
7)
8)

DEFINITION
PURPOSE & SCOPE
LAYOUT AND HOW TO USE
RESPONSIBILITY
APPLICABILITY
DISTRIBUTION AND INTERPRETATION
ESTABLISHING NEW OR REVISED POLICIES
INTEGRATION CLAUSE AND RIGHT TO REVISE

EMPLOYMENT PRINCIPLES

1)
2)

POLICY STATEMENT
EMPLOYMENT PRINCIPLES

3.

ETHICS AND LEGAL RESPONSIBILITIES

1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)

CONFLICT OF INTEREST AND CODE OF CONDUCT

REPORTING POTENTIAL CONFLICTS
FINANCIAL INTEREST WITH LSEFSL RELATED BUSINESSES
ACCEPTANCE OF GIFTS AND ENTERTAINMENT
CORRECTIVE ACTIONS
CODE OF CONDUCT
CONFIDENTIALITY
PROTECTION FOR BLOWING
PROTECTION FOR FEMALE STAFF AGAINST HARASSMENT
DISCIPLINARY ACTION
WORK PRODUCT OWNERSHIP

4.

RULES & REGULATIONS

1)
2)
3)
4)
A.
B.
C.
D.
5)
6)
7)
8)
9)
10)
11)
12)

POLICY STATEMENT
COMPANY PROPERTY
USE OF TELEPHONE
USE OF PERSONAL COMPUTER
PROPRIETARY OR LICENSED SOFTWARE/HARDWARE
DATA BACKUP
PC/LAN USAGE AND CONTROL
ON-LINE USE OF EMAIL
CONTACT WITH THE MEDIA
BEHAVIOR IN PUBLIC
WORKING HOURS
HOLIDAYS
PUNCTUALITY
ATTENDANCE
SHORT LEAVE POLICY
INDEMNIFICATION

6
6
7
7
7
8
8
8
8

9
9
9

10
10
10
10
10
11
11
12
12
12
12
13

14
14
14
14
14
14
15
15
15
15
15
16
16
16
16
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13)
14)

STOPPAGE OF WORK
TERMINATION/DISMISSAL

17
17

5.

RECRUITMENT & SELECTION

1)
2)
3)
4)
5)
6)
7)

POLICY STATEMENT
MANPOWER PLAN & CONTROL
MANPOWER PLAN
CHANGES TO APPROVED MANPOWER PLAN
MANPOWER CONTROL
RECRUITMENT AT SENIOR POSITIONS
RECRUITMENT FOR THE OTHER STAFF

6.

CONDITIONS OF EMPLOYMENT

1)
2)
3)
4)
5)
6)

POLICY STATEMENT
PROBATIONARY PERIOD
EVALUATION OF PERFORMANCE DURING PROBATION PERIOD
CONFIRMATION OF SERVICE
ENTITLEMENTS ON CONFIRMATION
EXTENSION OF PROBATION PERIOD

7.

COMPENSATION

1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)

POLICY STATEMENT
SALARY
LEAVE FARE ASSISTANCE
CAR MONETIZATION
LOANS & ADVANCES
GROUP LIFE INSURANCE
PROVIDENT FUND
BONUSES
PERFORMANCE OF HAJJ
CHILDREN EDUCATION ALLOWANCE
MARRIAGE GIFT
FUNERAL EXPENSES
EOBI (EMPLOYEES' OLD AGE BENEFITS)
MEAL RE-IMBURSEMENT

8.

INCREMENTS

1)
2)
3)
4)
5)
6)
7)

POLICY STATEMENT
ELIGIBILITY
EFFECTIVE DATE OF INCREMENTS
CONSIDERATION OF SALARY INCREMENTS BEFORE 1ST JULY
DETERMINATION OF MAXIMUM INCREMENT PERCENTAGE AND SALARY ADJUSTMENTS
SALARY ADJUSTMENTS
ISSUANCE OF INCREMENTS LETTERS

LEAVE ENTITLEMENT AND ENCASHMENT

1)
2)

POLICY STATEMENT
EARNED LEAVE

19
19
19
19
19
20
20
22

25
25
25
25
25
25
26

27
27
27
28
29
29
30
30
31
31
31
31
31
31
32

33
33
33
33
33
33
33
34

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35
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4)
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CASUAL/SICK LEAVE
MATERNITY LEAVE
PATERNITY LEAVE
APPROVING AUTHORITY

35
36
36
36

10 TRAVEL POLICY
1)
2)
3)
4)
5)
6)
7)
8)

37

POLICY STATEMENT
DOMESTIC
OVERSEAS
LOCAL CONVEYANCE
CURRENCY ARRANGEMENTS
TRAVEL AUTHORIZATION
TRAVEL ADVANCE
TRAVEL SECURITY POLICY

37
37
38
39
40
40
40
40

11 MEDICAL POLICY
1)
2)
3)
4)
5)

41

POLICY STATEMENT
MEDICAL EXPENSES
EMPLOYEES MEDICAL SCHEME
INPATIENT BENEFITS
PROCESSING OF CLAIMS

41
41
41
41
41

11 SEPARATION POLICY
1)
2)
3)
4)
5)
6)
7)
8)

42

POLICY STATEMENT
RESIGNATION
TERMINATION/DISMISSAL
RETIREMENT
PERMANENT DISABILITY
FINANCE/HRC RESPONSIBILITIES
THE EMPLOYEE RESPONSIBILITIES
CLEARANCE

42
42
42
43
43
44
44
44

13 PERFORMANCE MANAGEMENT SYSTEM

1)
2)

46

POLICY STATEMENT
PERFORMANCE APPRAISAL SYSTEM FOR EMPLOYEES

46
46

14 TRAINING & DEVELOPMENT

1)
2)
3)
4)

48

POLICY STATEMENT
PROFESSIONAL DEVELOPMENT
LEADERSHIP DEVELOPMENT
PROCEDURE

48
48
49
49

15 PROMOTION
1)
2)
3)

50

PURPOSE
POLICY
PROCEDURE

50
50
51

16 INTERNAL TRANSFER
1)
2)

52

PURPOSE
POLICY

52
52
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17. ORIENTATION/INDUCTION PROGRAM

1)
2)

53

POLICY STATEMENT
PRINCIPLES

53
53

18. GRIEVANCE PROCEDURE

1)
2)
3)
4)
5)
6)

55

PURPOSE
POLICY
PROCEDURE
COMMUNICATION
MANAGEMENT'S ROLE
STAFF SOCIAL CLUB

55
55
55
56
56
57

19 STAFF RECORDS
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)

58

POLICY STATEMENT
RESPONSIBILITIES
STAFF RECORD
EMPLOYEE PRIVACY
CUSTODY OF STAFF RECORDS
LIST OF MANDATORY DOCUMENTS IN PERSONAL FILE
PERSONAL FILE CHECKLIST
ACCESS TO HEAD OF DIVISIONS
OTHER DOCUMENTS IN PERSONAL FILE
CORRECTION OF OWN PERSONAL DATA

58
58
58
58
58
59
59
59
59
59

20 SAFETY & HEALTH

1)
2)
3)
4)
5)
6)
7)

60

POLICY STATEMENT
PRINCIPLES
ACCOUNTABILITY AND RESPONSIBILITY
SMOKE- FREE WORKPLACE POLICY
DRUG FREE WORKPLACE
BUSINESS/PROFESSIONAL ATTIRE
CONDUCT OUTSIDE OF WORK

60
60
60
61
61
61
61

ORGANIZATIONAL CHART
ANNEXURE I

63
FORMS
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1.

HUMAN CAPITAL
MANAGEMENT MANUAL

General
1) This Policy Manual shall be called the LSE Financial Services Human Capital Policy
Manual.
2) This Policy shall apply to all the Employees of the Company, whether regular,
contractual or part time.
3) This Policy shall come into force from the date of its approval from the Board, and any
other HRC Policy Manual earlier in use shall be repealed with this Manual from the
effect of this date.
4) Each subsequent amendment or change would become a part of this Manual from the
effect of the date of approval of the same by the Board.

1) Definition
Unless there is anything inconsistent in the subject or context:
1) Company means the LSE Financial Services Ltd.
2) Board means the Board of Directors of LSE Financial Services Limited.
3) HRC Committee means Human Capital Committee of the Company as
formulated by the Governing Board of Directors from time to time.
4) Chairman means the Chairman of the Board of Directors of the Company.
5) Executive means the Managing Director/Chief Executive Officer of the
Company.
6) Managing Director means the MD/CEO of the Company.
7) Management means the MD/Chief Executive Officer of the Company.
Secretary means Company Secretary of the Company, appointed under
Article 110 of the Articles of Association of the Company.
8) Statutory Appointments/Positions/Office Holders mean the positions of the
Chief Executive Officer, the Company Secretary, Chief Financial Officer, Head of
Internal Audit and the Compliance Officer, and may contain all such positions
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mentioned or added in the Articles of Association of the Company from time to

time.
9) Employee or Employees of the Company means any person who is on the
payroll of the Company whether regular, contractual or on part time basis.
10)
Service includes the period during which an Employee is on duty, and
the period of authorized leave, but does not include a period of overstayed
leave without permission or leave without pay.
11)
Pay means the Gross monthly salary of the Employee for the post held
by him substantively and includes any other emoluments paid to him
12)
Words denoting the singular number shall include the plural number and
vice versa.
13)
Words denoting the masculine gender shall include feminine gender and
vice versa.

2) Purpose & Scope

This Manual is a collection of Corporate Human Resource Policies and Guidelines,

developed to assist the Company in its day-to-day HRC Management activities and
decisions.
The HRC policies contained herein cover the full range of the HRC cycle and are
intended to ensure order and consistency in completion of HRC routines.
The contents of this Manual are the embodiment of the LSEFSLs philosophy on
managing its human capital and are designed to ensure that all Employees work with
the same information on HRC Policies in vogue.
LSEFSL retains all managerial and administrative rights and prerogative entrusted to it
and conferred on employers inherently and by law. These include, but are not limited
to: the right to exercise judgment in establishing and administering policies, practices
and procedures, and to make changes therein without notice; the right to take
whatever action is necessary to achieve organizational goals; and the right to set
standards of productivity and services to be rendered by Employees, etc

3) Layout and How to Use

The policies presented in this Manual have been grouped together according to
function, and each group has been assigned a series number.
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The Subject Index lists chapters, sections and subject titles for the policies, appendices
and guidelines in the Manual.

4) Responsibility
Each Policy has a statement of the philosophy within which related decisions are made
and a statement of where responsibility belongs.
Several policies emphasize and articulate the two-way responsibility of the employer
and the employee. All responsibilities are especially incumbent on the designated
individuals. They are expected to fulfill them to the best of their ability in the interest of
the LSEFSL.
All Employees are required to comply with the contents of this Policy Manual. Every
employee is expected to be familiar with the basic legal requirements that apply to
his/her duties. LSEFSL requires its Employees to report to the LSEFSL any actual or
apparent violation of LSEFSL policies or procedures without prejudice.

5) Applicability
The contents of this Manual are applicable to all Employees in the service of the LSE
Financial Services Limited (LSEFSL), whether regular, contractual or part time
Employees irrespective of any cadre/grade.

6) Distribution and Interpretation

The copies of HRC Policy Manual are available to the departments with a master copy in
the Office overseeing the Human Resource Function.
In order to ensure that policy interpretations are consistent, the Head of Human Capital
(HRC) or his/her nominee is solely responsible for interpreting HRC policy application
and intent. His/her interpretations shall be applicable in all situations. Questions
concerning applicability and interpretation of policies in the manual should be
addressed to Head of HRCM.

7) Establishing new or revised policies

Standard policies concerning the relationship between LSEFSL and its Employees will be
written and made available to all concerned through inclusion in the policy manual.
Board of Directors may direct that new policies be issued and administered.
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The Head of Human Resource is responsible for disseminating all new or revised
personnel policies, as issued to all heads of divisions who are responsible for due
custody of this Manual.

8) Integration clause and right to revise

This Manual contains the employment policies and practices currently in effect. All
previously issued Manuals and any inconsistent policy or benefit statements or
memoranda are hereby superseded. LSEFSL's employment policies are constantly
under review and may be changed or amended from time to time at the discretion of
the Board of Directors. Periodically, additions and deletions may reflect changes in the
applicable laws and needs of LSEFSLs Employees.
The effective date of any
amendment to this Manual will be set forth on the respective new pages.

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Employment Principles

1) Policy Statement
LSEFSL strives to follow a pre-defined pattern of employment principles in all its
employment activities to ensure standardization in all recruiting practices and
procedures.

2) Employment Principles
a. To provide equal opportunity in all aspects of employment for all persons.
b. To prohibit discrimination in employment because of age, disability, marital status,
ethnicity, religion, gender; to prohibit sexual, racial and other forms of unlawful
harassment.
c. To promote the full realization of equal employment opportunity through a positive,
continuing, result-oriented program of affirmative action.
d. To use good faith efforts to achieve affirmative action goals for minority persons and
women.
e. To select the individuals who best meet the needs of the selecting departments.
f.

To enhance opportunities for mobility and promotion of qualified candidates who are
current LSEFSL Employees.

g. To pay/offer competitive packages to its Employees/prospective

according to their capabilities subject to availability of funds.

Employees

h. To create healthy working environment in all its departments.

i. To comply in all aspects with the requirements of labor and other applicable laws .

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3.

Ethics and Legal Responsibilities

1)

Conflict of interest and Code of Conduct

This policy has been designed to inform Employees of LSEFSLs stand on conflict of
interest. This policy applies to all Employees of the LSEFSL. The purpose of this policy is
to protect Employees from any conflict of interest that might arise.
The LSEFSL expects its Employees to conduct business according to the highest ethical
standards of conduct. Employees are expected to devote their best efforts to the
interests of the LSEFSL. Business dealings that appear to create a conflict between the
interests of the LSEFSL and an employee are not allowed. The LSEFSL recognizes the
right of Employees to engage in activities outside their employment which are of a
private nature and unrelated to LSEFSLs business. However, the employee must
disclose any possible conflicts so that the LSEFSL may assess and prevent potential
conflicts of interest from arising. A potential or actual conflict of interest occurs
whenever an employee is in a position to influence a decision that may result in a
personal gain for the employee or an immediate family member (including, but not
limited to, spouse, children, parents, siblings etc.) which results to the detriment of the
LSEFSLs business dealings.
Although it is not possible to specify every action that might create a conflict of
interest, this policy sets forth the ones which most frequently present problems. If an
employee has any question whether an action or proposed course of conduct would
create a conflict of interest, he or she should immediately contact the Human Capital
Department to obtain advice on the issue.
A violation of this policy will result in immediate and appropriate disciplinary action up
to and including immediate termination.

2)

Reporting Potential Conflicts

An employee must promptly disclose actual or potential conflicts of interest, in writing,

to his or her Department Head. Approval will not be withheld unless the relationship
interferes with the employee's duties or damages the LSEFSLs and Customers
relationship.

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3)

HUMAN CAPITAL
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Financial Interest with LSEFSL Related Businesses

An employee and his or her immediate family shall not own or hold any interest in a
supplier, customer or a competitor of the LSEFSL.

4)

Acceptance of Gifts and Entertainment

No employee shall solicit or accept gifts, lavish entertainments or other benefits from
potential and actual suppliers or competitors.
Exempted from this policy are the items such as diaries, calendars, t-shirts, pens, trade
show bags and all other customary things that employees may obtain, as
representative of the Company having value of less than Rs. 5,000/- at events such as
conferences, training programs, seminars, visits and trade shows or on any special
occasion etc. Likewise any employee of LSEFSL should only entertain any business
contact within the above limits.
Any questions regarding this policy should be addressed to the Human Capital
Department.

5)

Corrective actions

Violation of the conflict of interest policy will be dealt with appropriately. Remedial
action may include, for example, training, referral to counseling and/or any other
corrective/disciplinary actions as may be deemed appropriate by the Management on
the facts and circumstances of the case including infliction of any penalty in accordance
with law.

6)

Code of Conduct

The LSEFSL expects all Employees to maintain good discipline at all times in order to
promote a healthy atmosphere needed for the smooth conduct of business activities.
The following acts of an employee, inter-alia, are deemed to amount to indiscipline:a)
b)
c)
d)
e)
f)
g)

Sexual harassment
Disregard or disobedience of rules or orders of superiors,
Improper and insolvent behavior,
Making false or misleading statements,
Inefficient, negligent carelessness or wasteful working,
Absent/late attendance and absence without leave,
Installation of unlicensed and unauthorized software on LSEFSLs computers
network, standalone and notebooks,

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h) Not abiding by the disclosure policy regarding trading in the stock market as
may be framed or amended by the Compliance Officer of the Company from
time to time.
The following acts of an employee, inter-alia, shall be deemed as misconduct:
a)
b)
c)
d)
e)
f)

Willful insubordination or disobedience

Breach of trust, fraud or dishonesty
Theft of LSEFSL's business or property
Willful damage or loss to LSEFSL's goods or property
Taking or giving bribes or any illegal gratification
Habitual absence without leave or un-intimated absence for more than 10
days
g) Habitual late attendance
h) Habitual negligence or willful neglect of duty, riotous or disorderly behavior
i) Going on strike or inciting others to go on strike in contravention of provisions
of the law or rules of the LSEFSL
j) Engaging in racial, religious or sexual harassment and slander.
k) Unauthorized use of LSE FSLs equipment and equipment for personal
benefits
l) Disclosing work related or sensitive information to media, or any other person
not authorized to receive the same.
m) Seeking financial favors from LSEFSLs suppliers, venders and competitors.
n) Attempting to intentionally write, generate, compile, copy, propagate,
execute or introduce any malicious email, letters or computer codes, such as:
virus, worm, logic bomb, or Trojan into the LSEFSLs network or computing
resources.
o) Not following the Clean desk practice for clearing the tables/desks before
leaving the office.

7)

Confidentiality

The LSEFSL requires its Employees to maintain strict confidentiality regarding the
following matters:
a) Remuneration, increments and employment terms of self and others.
b) Business affairs of the LSEFSL with the third parties engaged in business with the
LSEFSL or other companies, firms and institutions.
c) Any other type of information about the LSEFSL affairs, the affairs of its Members,
LSEFSL Employees, and Business, whether official, privileged, confidential or
otherwise that any employee knows or becomes aware of.

8)

Protection for Whistle Blowing

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The above confidentiality related code of conduct shall not affect LSEFSLs commitment
to promote Whistle Blowing. LSEFSL shall encourage the acts of whistle blowing about
the alleged dishonest or illegal activities occurring in the administration of the
Company. In this respect, it shall be deemed as a moral responsibility of all Employees
of the Company to report in writing any alleged misconduct such as any violation of
LSEFSL policies, rule, regulation, fraud, health/safety violations, and corruption. The
Employees who shall act as Whistle Blowers through proper written compliant shall be
protected from any adverse action against them as a reprisal. However, this protection
shall not be available if it is found that an Employee, instead of first reporting the
matter in writing to the Head of HRC Committee, has shared the same information with
any other person whosoever.

9)

Protection for Female Staff against Harassment

There shall be an Inquiry Committee to enquire into complaints under the Protection
against Harassment of Women at the Workplace Act, 2010.
All proceeding shall be in accordance with and governed by the provisions of the
Protection against Harassment of Women at the Workplace Act, 2010.
No policy and procedure shall be adopted by the Company in dealing with the
underlying complaints which is contravention with the procedure laid down in the act.

10) Disciplinary Action

The LSEFSL reserves the right to initiate disciplinary action, issue warning letters, or
dismiss, terminate the services of an employee who has been found guilty of
indiscipline, misconduct or for breach of confidentiality and leaking secrets of the
LSEFSL in relation to the factors mentioned above.

11) Work Product Ownership

All Employees of the LSEFSL must be aware that the LSEFSL retains legal ownership of
the product of their work. No work product created while employed by the LSEFSL can
be claimed, construed, or presented as property of the individual, even after
employment by the LSEFSL has been terminated or the relevant project completed.
This includes written and electronic documents, audio and video recordings, system
code, and also any concepts, ideas, or other intellectual property developed for the
LSEFSL, regardless of whether the intellectual property is actually used by the LSEFSL.
Although it is acceptable for an employee to display and/or discuss a portion or the
whole of certain work product as an example in certain situations (e.g., on a rsum, in
an informal meeting with a prospective client), one must bear in mind that information
classified as confidential must remain so even after the end of employment, and that
supplying certain other entities with certain types of information may constitute a
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conflict of interest. Contractual Employees must be particularly careful in the course of

any work they discuss doing, or actually do, for a competitor of the LSEFSL.

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4.
1)

HUMAN CAPITAL
MANAGEMENT MANUAL

Rules & Regulations

Policy Statement
The primary purpose of this policy is to set Office Rules that exist within the LSEFSL
and to set clear boundaries for the Employees with regards to standards of behavior
and conduct expected of them.

2)

Company Property
Company property includes but not limited to:
a. Office furniture, computer, printer, mobile phone, pager, stationery, staff card,
medical card, corporate card, telephone card and other office equipment and
facilities;
b. Company records and documents including memos, correspondences, forms,
Board/Committee papers & minutes, library reference materials, company
accounts, client related information, contacts, etc. in paper, tape, diskette or
electronic form.
Employees should take good care of and avoid waste when using company property. It
is Employees responsibility to safeguard the company property being used by them
from damage and loss. They are liable for the replacement cost of damaged or lost
items. Upon termination of employment, they should return all company property in
their possession to their Heads of Division/Department, the Administration Department,
the Company Library and/or the Human Capital Department as appropriate.

3)

Use of Telephone

Telephones are for business use. Employees should minimize private phone calls during
working hours for personal interests in order to avoid interruption to the work and
operations of their Divisions/Departments.

4)

Use of personal computer

Employees should be aware of the IT security standards and guidelines established and
communicated by Information Technology Division, especially those relevant to their
daily work on PC and various computer application systems. All Employees are required
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to observe the corporate standards and guidelines regarding the use of corporate PC
hardware, software and related system services.

a. Proprietary or licensed software/hardware

I.
II.

III.
IV.

V.

Must not bring in any illegal/unauthorized software and/or hardware;

Must not install any special PC software/hardware for testing or evaluation
purposes without obtaining prior approval from their Heads of
Division/Department;
Must never disassemble, add or alter the hardware configuration of their
assigned PC;
Must not make unauthorized copies of LSEFSL's software by whatever
means; and
Must ensure their software is properly licensed and only used in
accordance with the rights of the software licensing conditions and
agreements.

b. Data backup
The Employees should backup their PC data regularly to minimize data loss due
to hard disk failures.

c. PC/LAN usage and control

I.
II.

Should not use their office PC to do personal work not relevant to their
company job duties. All data and files are sole properties of LSEFSL; and
Should report any irregularities on their PC hardware and software to the
IT Help Desk.

d. On-line use of email

All Employees are required to follow the acceptable use of internet and electronic
resources. All Employees are entirely responsible for maintaining the
confidentiality of their password and account. Furthermore, they are entirely
responsible for any and all activities that occur under their account and must
agree to notify the Technology Services Division immediately of any unauthorized
use of their account or any other breach of security.
Employees are not permitted to display, download or distribute defamatory,
discriminatory, offensive or obscene materials. LSEFSL Internet access must not
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be utilized to communicate information that may infringe any intellectual

property rights or violate the terms of any applicable laws or regulatory
requirements.
Visits to unlawful or inappropriate web sites and chat rooms are strictly
prohibited.

5)

Contact with the media

Only the Media Relations staff is authorized to deal with the media. Employees should
avoid making personal comments to or answering queries about LSEFSL from the
members of the media. They should refer all media enquiries to the Media Relations
Staff. Any employee found involved in the unauthorized contact with media shall face
disciplinary action.

6)

Behavior in Public

LSEFSL expects its Employees to behave with integrity and act lawfully on or off duty,
and at social or private occasions. Employees must be careful when expressing views
and opinions about the operations of LSEFSL. They should refrain from commenting on
individual cases and from disclosing or discussing information which may be market
sensitive.

7)

Working Hours
Details of the working hours shall be communicated to all and displayed on the
LSEFSLs notice board. Employees may be required to work on a shift basis in which
case their hours of work would be appropriately adjusted. However, the shift is
restricted to a maximum of 8 hours a day, unless otherwise prescribed by the
Management.

8)

Holidays
The LSEFSL provides for weekly day(s) off for all Employees in compliance with the
provisions of the law and in accordance with general business practice.
The LSEFSL also grants all gazette holidays announced by the Federal Government from
time to time under the Negotiable Instruments Act. A detailed list of all public holidays
shall be displayed on the LSEFSL's Notice Board.
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9)

HUMAN CAPITAL
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Punctuality
All Employees must be punctual for work every morning and after lunch. Employees
who attend office late without justifiable reasons or have a poor attendance record will
be subject to disciplinary action which may range from deduction of earned
leaves/salary to the dismissal from the services.

10) Attendance
a) Daily Attendance is maintained by the thumb impression in the machine.
b) The LSEFSL shall issue warning letters to those employees who have a

tendency for late attendance. Such warnings shall be routed through the
Head of Department at his own discretion.
c) Deductions are made from the employee's salary for unapproved absence from
work.
d) If the employee so requests, and submits a leave application form to this effect,
the salary deduction can, at the discretion of the Management be replaced with
an appropriate adjustment to his balance of leave.

11) Short leave policy

All Employees with written approval of the Head of the Division may avail short leave.
Head of the Division shall ensure that the short leave is only used for emergency work.

12) Indemnification
Both the Employees and LSEFSL will indemnify and hold each other harmless from any
claim, demand, or damage, including reasonable attorneys' fees, asserted by any third
party due to or arising out of any good faith implementation of this manual.

13) Stoppage of Work

The LSEFSL may at any time stop work in any department(s) of the establishment,
wholly or partly for any period if this is required due to:
a)
b)
c)
d)
e)
f)

Fire.
Catastrophe.
Civil commotion.
Breakdown of equipment and installations etc.
Stoppage of power supply.
Epidemics.
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g) Other causes beyond the LSEFSL's control.

Notice for such stoppage of work is displayed on the Notice Board of the department
concerned or on the LSEFSL's Notice Board as soon as practicable. Such notice shall
also specify when work is to be resumed and whether the Employees affected are to
remain at or leave the place of work.

14) Termination/Dismissal
In the event of commission of acts considered as misconduct as defined in section 3
Termination/Dismissal of Separation Policy of this HRC Manual, the Management shall
decide on the appropriate course of action against the employee including but not
limited to termination/dismissal without payment of any service benefits which an
Employee is otherwise entitled to. However in case of any misconduct involving breach
of trust, fraud or dishonesty would be punishable by dismissal from services.

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Part II
Selection,
Recruitment &
Compensation

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5. Recruitment & Selection

1) Policy Statement
LSEFSL is committed to recruiting the suitably qualified candidates for approved
positions and maintaining a resource pipeline while engaging in hiring and selection
practices that are in compliance with the applicable laws. It is LSEFSLs policy to
provide equal opportunities to all candidates.
The primary purpose of this policy is twofold:
a) to ensures fair, consistent and free from bias and prejudice procedure during
recruitment and selection activities, and
b) to enable LSEFSL to attract, retain and develop talented people in pursuit of its
overall organizational goals.

2) Manpower Plan & Control

The aims of manpower planning of LSEFSL are:
a) to ensure that LSEFSL acquires and retains the optimum number of Employees
with the required skills, expertise and competence;
b) to exercise effective control of staffing and the associated cost; and
c) to assist in optimum resources allocation so that potential manpower surplus or
shortage can be anticipated and alleviated as much as possible.

3) Manpower Plan
Heads of Division/Department are required to conduct a thorough review of the
operations, structure and manpower of their Divisions/Departments every year, and
furnish recommendations of manpower plan for the following financial year to the HRC
department. The HRC department is responsible for reviewing the recommendations
and compiling a corporate manpower plan for each financial year. The manpower plan
sets out the number of posts by level and by Division /Department.

4) Changes To Approved Manpower Plan

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The manpower plan/headcount for each financial year shall be included in the annual
budget of the Company, and shall be regarded as official once approved by the Board.
No change is permitted unless major developments or functional requirements emerge,
which necessitate changes to the plan subject to the consent of the Board

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5) Manpower Control
In order to optimize Human Capital utilization and to maintain cost effectiveness,
stringent manpower control should be exercised. Recruitment should only be carried
out in accordance with the bases of operational needs and approved manpower
plan/headcount. Whenever an employee leaves the LSEFSL, the Head of
Division/Department should assess the manpower of his Division/Department to see if a
replacement is necessary. Where a replacement is required, internal transfer or
promotion should be considered before pursuing external recruitment.

6) Recruitment at Senior Positions

a. Definition

i.

Statutory Officers/Positions/Appointments

The recruitment against statutory positions shall be made as per the Articles of
Association of LSEFSL:

Managing Director/Chief Executive Officer

This position shall invariably be filled through open advertisement and the
selection of the best and the most suitable candidate by the Board upon the
recommendation of the HRC Committee. The appointment of the MD/CEO shall
be made in accordance with Article 101 of the Company and shall be subject to
the approval of the SECP.

Secretary

The Board shall appoint a Secretary in consultation with the Managing

Director/CEO, as required under Article 110 of the Memorandum and Articles of
Association of the Company. A designated Secretary may also be assigned any
other duty/work by the Board.
Other Statutory Positions
CFO, Head of Internal Audit and Compliance Officer shall be referred as Statutory
Positions as per NBFC rules and CCG.

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b. Sourcing Methods
Statutory positions shall be filled on open merit basis through, one or more of the
following recruitment approaches, to identify the most suitable candidates for the
statutory and Statutory Position positions:

c. Advertising the Post

Advertising the post helps communicate clearly and openly to the public the
requirements of the position and the selection criteria which may apply to the hiring
process. The methods for advertising the post shall include:
i. advertised in the local press and journals; and
ii. advertised on LSEFSL website and/or recruitment websites.

d. Executive Search
Recruitment consultants can tap into private sector networks and are skilled at
promoting opportunities to potential candidates. They can reach a wide pool of
candidates, and can reduce the time burden on the HRC Committee. In using executive
search, the following points shall be considered:
i.

in selecting the search consultant, international search firm with good reputation,
extensive global search experience and proven track record shall be considered;
ii. the consultant should show a commitment to diversity and equality issues, and
demonstrate how such commitment is reflected in its practice and approach; and
iii. Precise job descriptions and person specifications should be agreed between the
consultant and the Selection Committee.

e. Internal Candidates
Given that having continuity at the managerial positions can be beneficial to the
operation of the LSEFSL, internal candidates with the relevant technical expertise and
management experience may be recommended by the HRC Department for the
consideration of the HRC Committee. All internal candidates will be evaluated on the
same basis vis--vis the other candidates. Where an internal candidate and an external
candidate for the same position are deemed to have comparable qualifications,
experience, and competencies, etc., the internal candidate will be given
preference.

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f. Selection Criteria
The selection criteria shall be determined by the HRC committee which would prescribe
the factors to be considered for the short listing of the candidate. The following two
sets of selection criteria shall be considered, at minimum, in the recruitment process:

a. Shortlist Criteria
The shortlist criteria shall focus on the factual requirements of the person
specification. In short-listing candidates for interview, the following factors shall
be considered:
I.
academic, professional and technical qualifications (most relevant
qualifications shall be marked maximum);
II.
relevant work experience; and
III.
leadership and management experience.

b. Final Selection Criteria

The final selection criterion is applied to evaluate the evidence gathered through
interviews and discussions following the initial shortlist. The final selection
criteria shall focus on, inter alia, personal qualities, past performance, potential,
communication, interpersonal skills, professional and personal integrity.

g. Offer and Approval

i.

Offer
Remuneration packages for the statutory and Statutory Position positions shall
be finalized by the Board on case to case basis.

ii.

Approval
The approval for the appointments of statutory positions shall be given by the
Board. The requirements of the Memorandum and Articles of Association of the
LSEFSL shall be followed by the Board wherever expressly provided for. In
general, all Statutory positions shall be appointed by the Board in consultation
with the Managing Director/CEO.

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7) Recruitment for the Other Staff

a. Staff Requisition
Where any replacement or additional employee(s) is required, the Head of
Division/ Department should complete and forward a Staff Requisition Form to
the Human Capital Department to initiate the recruitment. The form would
specify clearly the job summary and the job requirements for the position and
shall be endorsed by the Head of Division/Department. If the request for
additional employee(s) is unbudgeted, then the approval of the Board is required.
Where the headcount is approved, the Managing Director/CEO, Head of the HRC
Department, and Head of Division/Department should first consider internal
transfer or promotion before pursuing external recruitment.
i.

Internal Sourcing

The Human Capital Department will issue an internal vacancy announcement to

invite applications from Employees. Employees may apply to the Human Capital
Department in accordance with this announcement.
ii.

External Sourcing

If it is decided by the Management that an external recruitment advertisement is

necessary, the Human Capital Department will adopt one or a combination of the
following external sources of recruitment which is/are considered being
appropriate and cost effective.

Media
The Human Capital Department will liaise with the Division/Department to
prepare the recruitment advertisement and place it in the:

Job Opportunities Section of LSEFSL's Web Site or other recruitment web site(s)
as appropriate; and
most appropriate and effective newspaper(s) and/or other publication(s).

University/College Recruitment

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For fresh graduate or summer job vacancies, the Human Capital Department will
approach the Appointment Services of universities or colleges.
b. Selection Guideline and Criteria

i.

Shortlist Criteria
In short listing candidates for interviews, the following factors should be
considered and marked:
academic, professional and technical qualifications;
working experience;
job knowledge and technical know-how; and
Management experience, if required.

c. Information Gathering during Interviews

During the interviews, interviewers should only ask questions that relate
directly to the job requirements. Where it is necessary to assess whether
personal circumstances will affect job performance, interviewers should
discuss these objectively without questioning the candidates about their age,
marital status, pregnancy, family status, race, nationality, religion, or political
orientation etc. In case of disabled applicants, job-related information on
disability and medical history can be asked to determine the applicant's
ability, and the need for special services and facilities, to carry out normal
duties.
Assessment of the candidates and due recommendation of the interviewers
should be properly documented on the Interview Assessment Form after
interviews. All forms and documents containing personal data of applicants
should be returned to Human Capital Department for further handling,
irrespective of whether the applicants are appointed or not.

d. Final Selection Criteria

Judging from information gathered through interviews, the final selection
criteria including desirable personal attributes, potential for further
development, past performance, job expectation and career aspiration are
applied to further evaluate the suitability of the candidates to the job.
If all things are equal, preference will be given to internal candidates taking
into consideration the recommendation of their Heads of Division/Department
in addition to all other criteria.
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e. Offer and Approval

i.

Offer

When a suitable candidate is identified, the Human Capital Department will

finalize the terms and condition in consultation with the Management.
In determining the grade and salary of a prospective employee, the following
factors will be considered:
academic, professional and technical qualifications and working
experience;
job knowledge and technical know-how;
recent earnings;

ii.

prevailing market rate of the vacant position;

availability of suitable candidates in the market;
internal relativity of LSEFSL; and
job grade and salary range of the vacant position.

Approval

The appointments of all staff other than the statutory positions are subject to
the approval of the Managing Director.

f. Reporting Duty
On their first day of employment, new team members will usually report to the
Human Capital Department to complete the engagement formalities and attend
a briefing before they report for duty to the designated Division/Department.
Heads of Division/Department should arrange for new Employees' job induction
once they have reported for duty. New Employees will also be invited to attend a
Staff Orientation Program conducted by the Human Capital Department to help
them better understand the mission, the objectives and the organization
structure of LSEFSL, as well as its rules and regulations, and the code of conduct.

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6.

Conditions of Employment

1)

Policy Statement
The primary purpose of this policy is to provide a framework to ensure fair and
consistent approach by Line Managers in managing probation, confirmation,
entitlements and separation for Employees. The objective of this policy is to
demonstrate the LSEFSLs commitment towards attracting and retaining talented
people and creating an environment which enables the LSEFSL and its people to
achieve their potential.

2)

Probationary Period
New Employees are confirmed in their appointment after successful completion of the
probation period stipulated in their appointment letters. The minimum length of the
probation period for all categories of staff is three months.

3)

Evaluation of performance during Probation Period

Performance of the employee during the probation period is evaluated by his Head of
Division/Department for the purpose of confirmation on the prescribed Performa
(Probationary Evaluation Report).

4)

Confirmation of Service
At the end of the probation period, HRC Department initiates the confirmation process
by sending the Probationary Evaluation Report to the Head of the Department. The
Head of Department approves the confirmation by sending his/her recommendation to
HRC on this Report. Based on the recommendations contained in the Probationary
Evaluation Report, the LSEFSL either:
a. confirms the employee in his job;
b. extends the probation period; or
c. terminates services of the employee
A confirmation letter is issued to the candidate only when all formalities have been
completed.

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Entitlements on Confirmation
Upon confirmation of service, the new employee becomes entitled to the
following benefits:
a. Membership of Provident Fund in accordance with the deed of the Provident
Fund.
b. Medical benefits scheme
After confirmation of service, the employee is required to fill the following forms:
a. Hospitalization Insurance Registration Form
b. Provident Fund Declaration/Nomination Form
The employee is obliged to inform the LSEFSL whenever any change occurs in
any of the particulars given in the above forms.

6)

Extension of Probation Period

If the performance of a new employee is not satisfactory, the Management may
at its sole discretion extend the said probation period or terminate his/her
employment. However, the probation period of up to 6 months may be extended
following which either the employee is retained or the probation of up to 3
months is extended only once.
The decision of termination of employment is communicated to the employee
followed by an exit interview (Exit Interview form) by the concerned department.
In case of the need for an extension of the probation period, the supervisor shall
intimate HRC department about the need for the employee to be placed in
extended probation.
Any leave availed during the probation period shall not be counted towards the
probation period.

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Compensation

1) Policy Statement
The compensation management system at LSEFSL shall aim to achieve a fair and
attractive pay and benefits system with emphasis on rewarding individual performance,
contribution and competence. The objective of compensation management is to help
LSEFSL achieve its strategic objective while ensuring market competitiveness and
internal equity.

2) Salary
The LSEFSL shall have 6 salary grades for the Human capital of the Company as given
hereunder: The salary and benefits for Executive and Statutory Position positions shall be
determined by the Board.
Sr. No.
6

Grade #

Salary Grade

Executive

Managing Director/CEO

Statutory Position

Secretary/ CFO, HOIA and

Compliance Officer

Managerial
Managerial

Manager
Deputy Manager, Assistant
Manager
Senior Officer, Officer

Officers
3
2
1

Officers
Skilled/Technicians
Unskilled

Dy. Officer, & Assistant

Officer
Skilled/ Technician etc;
Unskilled /peon, Security
Guard etc;

Abbreviated
Salary
Grade
As approved by the
Board
S-4.2 to S-4.3

M-3.1 to M-3.3
M-2.1 to M-2.3
A- 1.4, & A- 1.3, B-1.3
& B- 1.4
A-1.2, & A- 1.1
Tech.
G.

a. Salary remuneration structure:

All Employees, apart from being assigned appropriate job titles, will also be
assigned salary grades based on their job scope.

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Each salary grade will have a defined salary range. Employees falling in a
particular salary grade will be given salaries within the range depending upon
their level of experience, proficiency and competence to perform the assigned
job. The defined salary range will give the Management considerable flexibility in
administering an objective and equitable salary policy. Salaries of individual
Employees will not be allowed to exceed the defined maximum of the applicable
salary range for their respective grade.
Salary ranges will be reviewed from time to time and may be revised as needed
in line with significant changes in the cost of living indices and other market
driven circumstances as decided by the Board.
Defined salary ranges and salaries of individual staff members will remain
confidential with relevant functionaries of the Human Resource Department and
the Managing Director.

b. Compensation Elements
I.

House Rent Allowance

House Rent allowance will be provided at 40 % of the basic salary to the
Employees in all grades.

II.

Utility Allowance
Utilities allowance will be provided at 10% of the basic salary to
Employees in all grades.

III.

Medical Allowance
Medical Allowance will be provided at 10 % of basic salary to Employees in
all grades.

IV.

Acting up and additional Responsibility Allowance

An employee would receive an-acting up allowance with the approval of
the Board, if he is asked to undertake the full duties and responsibilities of
a higher graded role for a continuous period as approved by the respective
authority.

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3) Leave Fare Assistance

All Employees are entitled to encash as Leave Fare Assistance (LFA) equivalent
to 15 earned days leave during each year. Employees who join or leave during
the year and thus serve for less than the full year will be entitled to a pro rata
amount based on the number of months service during the year. For the grant of
LFA it will be mandatory for the employee to proceed on leave. All Employees will
be given 15 days leave with half gross salary as the Leave Fare Assistance (LFA).

4) Car Monetization
LSEFSL may follow a policy of monetization of the cars and fuel allowance as per the
entitlement for each salary grade. The authorization of the car and fuel allowance is
given in the following table.
Designation
Executive
Statutory Positions
Managers having Grade 3.1
and above
Deputy Manager

Cars
As authorized by the Board
Upto
1300cc
or
as
authorized by the Board
Upto 1000 cc or

Fuel & Maintenance

As authorized by the Board
300 liters or cash in lieu
100 liters or cash in lieu
50 liters or cash in lieu

5) Loans & Advances

LSEFSL shall operate a loan policy for its Employees who are in the whole-time
employment of the Company.
The grant of loan shall be based on the principle that the loan repayment amount
would come to about 1/3 rd total salary of the employee and the loan repayment period
shall not exceed 60 months in any case, whatsoever.

a. LOAN AGAINST PROVIDENT FUND

Employees having one year of service may be entitled for loan against Provident
Fund to be approved by the Trustees of Provident Fund.
(i)

The loan cannot be claimed as a matter of right.

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The maximum loan amount shall be up to 80% of employees portion. The

loan shall be repaid in 60s equal monthly installments and the installment
shall not exceed 1/3rd of Gross Salary.

(iii)

For recovery of loans in case of any eventuality beyond the control of

Employee, e.g. death, disability etc; the group life insurance shall be assigned
to the Company.

(iv)

If any Employee resigns/retires or is dismissed from service before full

recovery of the advance/loan, the outstanding amount shall be recovered in
one lump sum installment before the settling of dues.

(v)

Notwithstanding anything contained herein, the Company shall have the right
to initiate any legal action against the Employee in order to recover the
outstanding amount.

(vi)

No fresh loan shall be entertained / allowed before the expiry of at least one
month from the repayment of previous loan. However, the availed loan may
be enhanced once, during the tenure of the availed loan, within the entitled
limit of the availed loan.

b. Salary Advance
Salary Advance may also be available to Employees, for their specific needs
e.g., house rent advance etc.
Advances against current salaries are permitted to individual members of the
staff at the discretion of the Managing Director. The maximum amount would
be equal to one months total salary and allowances. The advance, which will
be interest free, will be repayable within a maximum period of 12 months.
In case of termination of service for any reason whatsoever, the employee is
obliged to pay to the LSEFSL the outstanding balance amount. The LSEFSL
has the right to recover the balance amount from the Provident Fund, Gratuity
or any other dues payable to the employee if he is not in a position to pay off
the loan balance.

c. Medical Loan
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All Employees are entitled for Medical Loan up to Rs. 250,000/- for themselves
and dependent for such treatments which are not covered by Health
Insurance Company.

6) Group Life Insurance

All Employees on the payroll of the LSEFSL will be covered under a Group Life Insurance
policy which entitles them to an insurance benefit equal to 36 gross salary amount of
their respective salaries upon death of an insured employee or in case of any serious
bodily injury. In case an employee of LSEFSL is not insured for any reason, then LSEFSL
shall provide the benefit out of its own funds under any situation warranting payment
to the heirs of an employee.

7) Provident Fund
All Employees on the payroll of LSEFSL are entitled to be members of the Provident
Fund. The employees contribution, equal to 10% of his basic salary, is deducted each
month from the payroll. The LSEFSL shall contribute an equal amount and both the
employees and the LSEFSL's contributions will be paid to the Fund each month.
Employees are registered as members of the Provident Fund on submission of the
Provident Fund Declaration/Nomination form. This fund will be established/registered
as a Trust and the trustees shall be from out of the Statutory Position of LSEFSL.

8) Bonuses
The LSEFSL shall provide for bonuses on a yearly basis to all or specified categories of
Employees with the approval of the Board of Directors of the LSEFSL. As matter of
policy, the Bonus shall only be paid out the profits for the year and not out of the
accumulated profits, and shall be at the sole discretion of the Board.

9) Performance of Hajj
One Employee of the Company, drawing gross salary up to Rs. 50,000/- shall be
selected by the ballot every year to perform Hajj at the expense of the Company. The
selected Employee shall be entitled to Hajj package as per Government rates and an
allowance of Rs. 40,000/- each towards out of pocket expenses as well as special Hajj
leave as a special case.

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Provided that only Muslim Employees subject to a continuous 5 years service with the
Company at the time of balloting, shall be eligible to participate in the balloting for Hajj.
It will also be noted that the Employee had never been issued a warning on grounds of
misconduct.

10) Children Education Allowance

Employees having salary up to Rs. 50,000/-, shall be given a children education
allowance of Rs. 1,000/- per school /college going dependent per month. The said
allowance can be availed for three (3) children only.

11) Marriage Gift

All Employees getting married will be paid an amount of Rs. 25,000/- as gift on the
occasion of their marriage. Marriage gift will be given only once during the employment
with the Company.

12) Funeral Expenses

All Employees of the Company are entitled of Rs. 25,000/- as Funeral expenses in case
of death of any dependant family member.

13) EOBI (Employees' Old Age Benefits)

The LSEFSL will contribute, every month to the Employees' Old Age Benefit Institution
contribution (EOBI), established under the Employees' Old Age Benefits Act, 1976, at
the rate of 5% of the monthly salary up to a maximum of Rs.500 per month or as may
be specified by law from time to time in respect of every person in insurable
employment with the LSEFSL.
The EOBI uses these contributions to provide old age pensions and other benefits to
Employees, contributions to EOBI, refunds of contributions, payment of pensions and
grants and other related matters are governed by the Employees' Old Age Benefits Act,
1976 and other related rules and regulations.

14) Meal re-imbursement

All Employees are entitled to re-imbursement of meal for working on a weekly holiday,
gazetted holiday or beyond normal working hours. The rates for meal re-imbursement
shall be prescribed by the Management from time to time.
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The Employees may claim reimbursement of meal expenses as per below table for
working after 08:00 P.M duly approved by their divisional heads.
Executive /Statutory Position
Manager/Deputy
Mangers
/Assistant
Managers
Sr. Officer / Officer / Assistant Officer
Technician / Others

On acutal basis
Upto Rs. 400 per meal
Upto Rs. 300 per meal
Upto Rs. 200 per meal

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Increments

1) Policy Statement

To grant periodic salary increases to Employees on the basis of merit, and inflation
within the framework of equitable compulsion.

2) Eligibility
All Employees who have completed one year service on 30 th June will be eligible for
salary increment.
Performance increments will not be given to Employees who are rated as improvement
needed. However, revision of their salary may be considered by the Management on
case to case basis.

3) Effective Date of Increments

All increments will be effective from the 01 July each year.

4) Consideration of Salary Increments before 1st July

Only exceptional cases may be considered for salary increment any time before the 01
July each year, on case to case basis. These exceptional cases will be specially
recommended by the Head of Divisions, duly endorsed by the Head of HR, and
approved by the CEO/MD, subject to the budget approved by the Board each year.
The Employees, who have not completed one year service on the 30 th of June, may be
given average increment for the year based on satisfactory performance.

5) Determination of Maximum increment percentage and Salary

Adjustments
Overall Salary increase shall be approved by the Board. The annual Salary Increments
include maximum increment percentage and Salary Adjustment if required.
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The process for the Annual Salary Increments for the Employees will be the
responsibility of Head of HR.

6) Salary Adjustments
Salary adjustments may be considered on a case to case basis under special
circumstances to retain talent or to address any inequity. Apart from the above factors
any increase is subject to the approved annual budgets for staff costs.
Salary adjustments are recommended by the respective Head of Division, who will
forward the recommendations to the Head of HRC for further approval by the MD/CEO,
subject to the HRC budget approved by the Board.

7) Issuance of Increments Letters

The LSEFSL shall issue increment letter to the Employees concerned based on the
approved scheduled of increment. Each employee must be advised in writing of his/her
salary increment, the resulting total salary figure for the year, and the percentage
increase represented by the increment.

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1)

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Leave Entitlement and Encashment

Policy Statement

Rest and recreation is important for the wellbeing of Employees, and contingencies
arising from illnesses and unforeseen eventualities require Employees to be away from
work. To cater to such requirements, LSEFSL has the following leave policy.

2)

Earned Leave
All Employees who have completed one year of service are entitled to thirty (30)
working days of leave with pay. Public holidays will be excluded but the weekends
falling within the leave period requested, shall be included as part of leave. Maximum
of forty-five days earned leave can be taken at one time.
Leave entitlement for new Employees are pro-rated during the first year of service.
a. Earned Leave Schedule:The Employees may submit anticipated earned leave schedules to their line
managers at the start of each year in order to streamline and effectively
accommodate their varying leave requirements. HRC may require a copy of the
schedule from time to time. A completed Leave Application Form is submitted for
approval at least fifteen (15) days in advance prior to the anticipated start of the
leave. (This may be relaxed in the event of unforeseen circumstances).
b. Earned Leave Accumulation and Encashment:A maximum of 45 days Earned Leave balance may be accumulated by the
Employees in their account. Any leave balance in excess of 45 days shall expire.

3)

Casual/Sick Leave

Employees are entitled to leave during illness, up to a maximum of 10 calendar days.

Up to five days Sick Leave may be availed at any time without a medical certificate.
Similarly a maximum of five days casual leave may be allowed at one time. A medical
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certificate may be required for availing more than five days Sick Leave at a time.
Casual/Sick leave can neither be accumulated nor encashed. Sick Leave in excess of
entitlement will be treated as leave without pay, except in cases of prolonged illness,
including conditions arising from an accident and supported by medical reports and
certificates. Extending beyond the normal entitlement of casual/sick leave, the balance
of earned leave will be adjusted against the absence. If there is no balance left in
employees earned leave account then this will be treated as leave without pay under
extraordinary circumstances and would require approval by the Management.
Casual/Sick Leave for the current year may be availed by the Employees at any time
after their confirmation. Casual and Sick Leave during probationary period may be
granted as a special case, if recommended by Head of Department and approved by
the Managing Director.

4)

Maternity Leave

Maternity leave will be available to women Employees for a maximum of 60 days for
upto two pregnancies. This will be addition to the other types of leaves admissible to
the female Employees.

5)

Paternity Leave
A male employee who is the expecting father of an expecting child or father of a new
born child will be eligible for a maximum of 05 working days paid paternity leave upto
two children.

6)

Approving Authority
Employee shall submit Application to avail any type of leave to the respective
authorities for approval.

Type of Leave

Grade

Approving
Authority

Extraordinary/Leave
With or Without Pay

All Employees

MD

All other leaves

Casual/Sick Leave

CEO /
MDs Direct Reports
All other Employees

MDMD
Head of Divisions

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Iddat Leave
The iddat leaves for 4 months and 15 days with pay for the iddat period in case of
demised death of husband of female employee and allowed to make amendment in HR
manual.

8)

Hajj Leave
15 days Hajj leaves with pay for those employees who perform hajj at their own
expenses.

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10 Travel Policy

1)

Policy Statement
The principal intent of this policy is that Employees who incur travel expenses as a
result of the required business travel should neither gain nor lose personal funds as a
result of travel.

2)

Domestic

a. Airfare

Entitlements for domestic inter-city transportation are:

CEO/MD & Other Statutory Economy Plus

Positions
Others
Economy
Class
airfare
b. Boarding and Lodging
All travel must be supported by prior authorization on the Authorization Form.
Entitlements for boarding and lodging when on domestic travel are:
i.

LSEFSL will arrange the hotel. Employees of Executive and Statutory Position
grade are entitled to 4/5 Star hotel accommodation. Other Employees are
booked in any other hotel approved by the Management.

ii. Out of pocket: An out of pocket allowance of Rs. 2,000/- per day for the
Executives, Rs. 1,500/- for the Statutory Position and Rs. 1,000/- for
managerial and Rs. 500/- for all other Employees shall be allowed for the days
of outstation travel/duty including the days of journey.
iii. Per diem outstation allowance, in cases where boarding and lodging is not
arranged or availed, is allowed at the following rates:
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Salary Grade Allowance

CEO/MD & Statutory Position
Managers
Deputy Manager, Assistant
Manager
Senior Officer, Officers, Junior
Officer & supervisor

iv.

(Rs)
4,500/3,000/2,500/1,500/No use of

mini bars except mineral water at hotels will be allowed.

c. Business Expenses
The following types of expenses during domestic travel on the LSEFSL's business
are allowed at actual:I.
II.
III.
IV.
V.
VI.
VII.
VIII.

Postage and telegrams/telex/fax charges.

Airport tax and fees, etc.
Laundry (if the stay is three days or more).
Pressing charges.
Use of business center
Entertainment for business purposes only.
Car rental (on actual) for grades Statutory Position & above.
Meal as per actual.

d. Local conveyance
Entitlements for conveyance allowance within the city other than monetized
vehicles are as follows:

Staff Category
Allowance in Rs
Staff using personal
Actual
vehicle
Staff
using
public
Actual
transport

3)

Overseas

a. Airfare
In the case of foreign travel, the employee is entitled to the following class of air
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Staff category
Executive & Statutory Positions
Managerial and Others

Class
of
Air
ticket
Economy Plus
Economy

The air ticket available in each case is to be with minimum number of stopovers.
The extra cost, if any, for changing routes and stopovers has to be borne by the
employee himself. Such change should not disturb the official business for which
the travel is being made.
b. Boarding & Lodging
As far as foreign boarding and lodging are concerned, Employees may be on
either allowance or expense status.
Allowance Status: Employees on foreign trips on allowance status are entitled
to a daily allowance according to their salary grades as under:
Salary Grade
Executive
Positions
Others

&

Statutory

Allowance/day
(US$)
300
150

The daily allowance is payable for the day of travel till the day of ending the
journey. If the journey time exceeds 15 hours, an extra day's daily allowance is
granted.
c. Expense status:
Employees proceeding on foreign business trips on expense status are
entitled to the actual expenses as follows:i.

Room Rent: Reasonable hotel accommodation will be arranged by the

LSEFSL.

ii.

Meals: Actual normal meal expenses of the employee including tips.

iii.

Actual normal charges for dry cleaning, laundry, pressing, valet, etc.

iv.

Cash Allowance for miscellaneous expenses for different grades is as

follows:
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Salary Grade
Executives
Statutory Position& Others

Allowance /Day (US $)

100
75

Hotel Stay
5 Star
4/3 Star

d. Business Travel
The following types of expenses for the foreign travel on the LSEFSL's
business are reimbursable at actual:

4)

Passport Renewal Fee.

Visa and related fees.
Vaccination charges.
Airport and Foreign Travel Tax.
Taxi fare
Telephone, trunk calls, fax.
Business Center Expense

Local conveyance
The Employees are entitled to claim local conveyance expenses at actual for
taxis from hotel to workplace and other locations when travelling for business
purposes.

5)

Currency Arrangements
For the purpose of meeting expenses while on foreign trips, the LSEFSL advances
sufficient funds to buy foreign Company as allowed by the State Bank of Pakistan in
accordance with the current Company Control Regulations. Finance Department
arranges to buy the foreign currency(ies) as required in this respect.

6)

Travel Authorization
All local, domestic and foreign travel expenses shall be within the limit of the annual
travel & conveyance budget approved by the Board. MD/CEO shall be authorized to
designate anyone for the business related travel within this budget. Any travel/visit
expense beyond the authorized travel budget shall be subject to the approval of the
Board.
All travel must be supported by prior authorization on the Travel Authorization Form
and requires the approval of the Head of Division and the Managing Director.
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Travel Advance
Travel advances are provided to the Employees to meet expenses incurred while
travelling on the LSEFSL's business. Each advance shall be cleared before taking
another advance.

8)

Travel Security Policy

The statutory position holders of LSEFSL will not travel together on the same aircraft,
unless deemed necessary by the Managing Director.
More than three heads of departments will not travel together on the same aircraft.
More than 30% Employees from the same department will not travel together in the
same aircraft.
More than 50 % Employees from the same department will not sit in the same vehicle
during road travel.
More than 50 % Employees from the same department will not travel together in the
same train.
More than 50% of the Board of Directors will not travel together in the same aircraft. In
case of necessity this may be exempted by the Managing Director.

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11 Medical Policy

1) Policy Statement
The principal intent of this policy is to provide all kinds of medical care to Employees
working with the LSEFSL be it medical benefit or health insurance; and to provide
significant support for and protection against potentially large financial expenses.

2) Medical Expenses
All Employees are entitled to the reimbursement of actual medical expenses up to a
maximum of 10 % of their basic salary or paid a monthly medical allowance equal to
10% of their basic salary.

3) Employees Medical Scheme

The LSEFSLs Employees and their dependents are also covered under Group Medical
Insurance Scheme. Employees are registered under this scheme on submission of
"Hospitalization Insurance Registration Form.

4) Inpatient Benefits
The inpatient benefits shall be as per the following categories:Staff Category
A
B
C

Salary Grades
Executive, Statutory Position
Managers,
Deputy
Manager,
Assistant Managers.
Senior Officer, Officer, Junior
Officer, Supervisor

5) Processing of claims

a) Claims for hospitalization will be processed as per practice of existing

Insurance Company.

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b) LSEFSL may advance money to the hospitalization bills of its Employees as

per the insurance limits and subsequently claim the reimbursement from the
Insurance Company.

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11 Separation Policy

1) Policy Statement

This policy regulates the conditions under which Employees' jobs may be discontinued,
terminated or the appointment may be cancelled or the position may be made
redundant.

2) Resignation
An employee who wishes to resign from the LSEFSL's service is required to give two
months prior notice or agree to severance salary in lieu thereof.
The employee submits his letter of resignation to the Head of Division, who calls him
for an interview, and tries, particularly if the employee in question is a good performer,
to determine if the cause of resignation emanates from a problem which can be solved.
If, after this interview, the employee still wishes to resign, the Head of Division forwards
his resignation to HRC along with a handwritten note giving details of the interview
mentioned above.
On receipt of the resignation from the Head of Division, HRC calls the employee for
another interview and another attempt is made to retain the services of the employee.
All possible efforts are made to see that genuine grievances of good Employees are
resolved and that they do not resign from the LSEFSL's service as a result of such
grievances. However, if the employee is still determined upon resigning even after the
second interview, employees resignation is forwarded to the Managing Director by the
HRC department.

3) Termination/Dismissal
The LSEFSL can terminate an employees service by giving him two months notice or
salary in lieu thereof.
No notice or salary in lieu thereof is required in cases where an employee is dismissed
due to misconduct. Acts and omissions including but not limited to the following shall
be treated as misconduct:a. Conduct of acts prejudicial to good order or service discipline or unbecoming of
an Employee;
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b. Fraud, corruption or commission of acts that may reasonably be considered

corruption;
c. Willful insubordination or disobedience, whether alone or in combination with
others, to any lawful and reasonable order of a superior;
d. Theft or dishonesty in connection with the employers business or property or of
any other employees belongings;
e. Willful damage to or loss of employers or any other employees goods or
property;
f.

Taking or giving bribes or any illegal gratification;

g. Habitual absence without leave or absence without leave for more than ten days;
h. Habitual late attendance;
i.

Habitual breach of any law applicable to the Company;

j.

Riotous or disorderly behavior during hours at the office or any act subversive of
discipline;

k. Habitual negligence or neglect of work;

l.

Frequent repetition of any act or omission like disregard or disobedience of rules

or orders, improper behavior such as drunkenness or addiction to drugs, making
false or misleading statements, inefficient, dilatory, careless or wasteful working,
malingering;

m. Unauthorized disclosure of information.

n. Intentional non-compliance with Company policies.
o. Conviction by a court of law.
p. Any act contrary to the interest of Company
q. Preventing an Employee from performing his duties
r.

Enticing employees against Management or the Board of Company.

The dismissal of an employee due to misconduct follows the completion of due process
under which the employee concerned shall be given an adequate opportunity to defend
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himself before the Management. The recommendations of this Management shall be

deemed as final.

4) Retirement
The normal retirement age for all Employees of the LSEFSL is sixty years. No employee
shall either be retired before this age or retained after this age.

5) Permanent Disability

The LSEFSL may also discontinue the service of an employee in case of permanent
disability. This type of separation can take place on the grounds of any serious ailment
or permanent disability which, in the opinion of the Management, may or is likely to
interfere with the adequate performance of duties by an employee. Such employee
may be given any separation/disability amount by the Board in addition to the payment
entitled under the Insurance Policy.
Cases of possible permanent disability are investigated by the Head of Department and
a Medical Officer (Registered Medical Practitioner). This report is signed by the
employee's Head of Department and the Medical Officer.
After approval from the CEO/MD, the Separation Letter is issued to the employee. The
LSEFSL may also give one time severance package of any value to such Employees
with approval of the Board.

6) Finance/ HR Responsibilities
Finance/ HR shall perform the following operations relating to the separation:
a)
b)
c)
d)
e)
f)

Stop salary and other related payments.

Remove from headcount.
Calculate outstanding loan amounts.
Calculate other dues.
Cancel the signing power and any other Power of Attorney, if relevant.
Pay out all outstanding expense claims of the leaving Employees up to the
last working day.
g) Takeover all LSEFSL assets from the employee such as car, mobile phone, lap
top, or any other equipment or material in the employees possession.
h) Check if any disciplinary proceeding against the employee leaving is
underway.
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7) The Employee Responsibilities

The employee has to make sure of the following:
a) Return all assets to the LSEFSL, and make any payments over and above the
prescribed limit. In case any dues are pending, the LSEFSL has the right to
deduct the amount from any and all dues payable to the employee.
b) Repay any outstanding transport/house loan with accrued mark up.
c) Settle account with Trustees of Employees Provident Fund.
d) Submit clearance form to HRC before departing.

8) Clearance
Employees leaving the LSEFSL obtain Clearance from HR, pay any outstanding dues,
and hand over the LSEFSLs assets to the respective departments. Once this is done
final settlements are completed in a timely manner.
Employees must submit all expense claims up to the last working day (fuel, medical,
telephone, allowances) to Finance/Relevant offices no later than 3 days from the last
working day. Any expense claims submitted later than that are not entertained.
Finance Department prepares the Full and Final settlement while the HRC Department
prepares the Experience Letter.
Outgoing Employees return their employee ID card on the last working day to HRC for
cancellation.
Cheques covering final settlement of account are collected by outgoing Employees
from the Finance Department. They are requested to confirm their contact details
before leaving office on their last working day.

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13 Performance Management System

1) Policy Statement
LSEFSL is committed to staff development that enables all its Employees to reach their
optimum potential. The focus of this practice will be on enhancing employee
performance, improving their knowledge and skills base and provide opportunities for
career progression
The Performance Appraisal System (PAS) at LSEFSL aims to develop a result and
performance oriented framework and to encourage personal development of the
Employees. Performance Appraisal Review of employees work and achievements is
carried out to monitor their progress in achieving assigned goals and objectives and to
provide them with feedback and guidance for their career development.
LSEFSL is also committed to provide appropriate and necessary training on the basis of
need assessment, and on a case by case basis. These can be both on-the-job and
through training courses, to every team member in line with their needs and according
to his/her job description to enable them to perform assigned duties in the best
possible manner.
LSEFSL supports internal career progression.
This policy is applicable to all staff of LSEFSL.

2) Performance Appraisal System for Employees

The appraisal for each employee will be carried out by his or her immediate supervisor
(the Appraiser).
Once appraisal is done by the supervisor for all his direct reports, all the appraisals will
be forwarded to respective reviewer for his review.
The key dates for performance appraisal process will be:
a) Commence Performance Appraisal Exercise: 01 March of every year.
b) Appraisal review timeline: 01 March and ends by 15 March.
c) Developing new objectives, guidelines: 15 March to 25 March.
The Head of HRC will distribute the Performance Appraisal Form according to the
number of Employees in the department along with a timeline of completing the
exercise.
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The Head of Departments will then distribute the forms to managers/supervisors who
have people reporting to them.

The managers/supervisors then will set appointments with the employee under
review in order to start the Performance Appraisal process.
The formal performance appraisal process is one of assessing, summarizing and
developing the work performance of an employee.
The completed Appraisal Form will be read by the employee and returned to their
supervisors duly signed.
The Performance Appraisal Forms will then be sent to the designated reviewer for
final review.
To assess the employees performance, the following Performance Appraisal Ratings
will be used:
A - Exceeded all expectations: Performance has been consistently at an
exceptional level during the year. Extraordinary initiative, innovative flair, and
sound judgment demonstrated in carrying out complex work responsibilities,
very often at a high level.
B - Achieved all targets and exceeded expectations on some:
Performance has been at a highly competent level during the year. Employee
has excelled in applying work knowledge/ skills to job responsibilities and often
performed significantly above expected performance level on some of the
complex parts of the job.
C - Achieved all targets: Performance during the year has met expectations
well for competence, and quality and quantity of work.
D - Achieved some targets: Performance during the year has not met
requirements for most of the key responsibilities. Immediate significant
improvement is needed in major areas of work responsibilities to come up to a
satisfactory level of performance.
E Improvement needed: Performance during the year has failed to meet
the minimum acceptable standards with respect to assigned duties and
responsibilities, thereby requiring immediate remedial action. Performance to
be reviewed in the next quarter.

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Training & Development

1) Policy Statement
LSEFSL is committed to provide appropriate and necessary training, both on-the-job
and through training courses, to every team member to enable them to perform
assigned duties in the best possible manner.
Aim of this policy is to enhance their skills, professional knowledge, work
efficiency/productivity and their optimum utilization.

2) Professional Development
The three core areas with which Development/training is provided are:
a)

Technical Training

This is mostly on-the-job understanding of the work techniques used by

LSEFSL. However, incumbents when hired must fulfill the minimum
requirements in terms of qualifications and experience to perform the
assigned role.
b)

Managerial Training
From time to time, Employees will be imparted training in this area
depending upon the skill set needed to perform the functions at
supervisory categories commensurate with his/her position. This is both
on the job through direct mentoring and coaching by the employees
supervisor or on case to case basis. The Employees will also be eligible
for training workshops.
Training of Employees can take place in various forms:i

Institutional Training at the concerned institute or arranged at

LSEFSL premises

ii

In house Training

iii On Job Training

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iv Seminars at concerned institute or at LSEFSL premises

c)

Leadership/Educational Development
This will be done through the following ways.

d)

Educational Development
Subject to the approval of the policy, LSEFSL may pay 50% tuition fee to
all such eligible Employees who take admission in any accredited
educational institution for the purpose of enhancement of their
educational qualification.

3) Leadership Development
In order to ensure well rounded development of the Employees of the managerial
and above level cadre, LSEFSL may nominate the most suitable Employees for
Leadership Development courses/programs such as for Strategic Decision
Making, Executive Leadership, and Effective Communication types of programs
etc.

4) Procedure
The HRC Department will inform all Head of Departments about the courses
being offered in-house at LSEFSL and by external Training Institutes, every
quarter or at scheduled times, and ask for employee nominations from each
department.
Head of Divisions or the employee concerned may also suggest training
programs other than the ones referred to by HRC Department on their own
initiative.
The HRC Department will be responsible for ensuring that all training programs
are provided according to the yearly training budget.
Each Divisional Head will be responsible for nominating candidates for training.
They will fill out the Employee Training Record (ETR), and forward it to the
Human Resource Department for further processing.
The Trainee reports are forwarded to the Head of Department for review who
may share the report with the employee at his/her discretion. It will be then sent
to the HRC Department for filing in the employees personnel file.

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Employee Training Record (ETR) form will be maintained for each employee by
the HRC Department. This record will be updated for any training received by the
employee.
Any training offered by the vendors should be centralized through the HRC
Department. The training and development expense shall be met out of the
budget allocated by the Board each year.
The Employees will retain all original certificates; however, photocopies of all
training certificates should be submitted to the HRC Department within a week
after training ends. HRC will place these in the Employees personal file.

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Promotion

1) Purpose
LSEFSL aims to provide career advancement opportunities for Employees to develop
and utilize their potential whenever possible, while at the same time recognizing their
outstanding performance. Promotion based on merit provides pathways or potential
avenues for Employees to aspire for higher grades, so as to maintain a clear and stable
career development structure enabling the advancement and retention of quality staff.

2) Policy
It is in the interest of both the LSEFSL and the individuals that all Employees are
encouraged to seek and gain advancement within the LSEFSL. Whilst the Management
reserves the right to appoint the most suitable person to any particular post, whether
an internal candidate or external one, it is the LSEFSLs policy to promote from within
whenever and wherever possible.
Selection for promotion should be based on merit with due consideration of the
following factors:
a)
b)
c)
d)
e)
f)
g)
h)

job knowledge and technical know-how;

competence and potential;
performance and quality of work;
academic/professional/technical qualifications;
honesty, integrity and commitment to work;
working attitude and interpersonal skills; and
personal attributes and tact.
Age, sex, marital status, pregnancy, family status, disability, race, nationality or
religion should not be considerations for promotion.

Whenever any vacancy arises, the Heads of Division/Department should

consider the possibility of promoting existing Employees from within before
recruiting externally. Under normal circumstances, Heads of Division/Department
may recommend promotion for their Employees, if they meet the requirements of and
are suitable for the vacant positions. Alternatively, Employees who fulfill the
requirements of and consider themselves suitable for the vacant positions may apply
for the positions by responding to internal vacancy announcements.
Under exceptional circumstances, promotions driven by business/operational needs,
individual merit and competency, and/or added responsibilities will be considered on a
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case-by-case basis. Heads of Division/Department should provide full justifications

when making recommendation of the promotion.
To be eligible for promotion to the next higher grade, Employees should have
demonstrated potential for further development and possess relevant experience,
qualifications and attributes prescribed for the position.
In general, promotion driven by vacancy is subject to approval of the Heads of
Division/Department. In the case of Employees reporting directly to the Heads of
Division/Department, approval from both the Heads of Division/Department and the
MD/CEO has to be sought except for statutory positions
On promotion to a higher grade, Employees may receive the entry pay of the new
grade or a promotional increase which is equitable. They will also be eligible for
benefits applicable to the new grade.

3) Procedure
The Head of Division shall evaluate all Employees in his/her department who have
served three years on a position/grade for promotion. For promotion recommendation,
the Head of Division/Department should complete and forward a Promotion Evaluation
Form with full justification to the Human Capital Department. The Human Capital
Department will review the recommendations and ensure that appropriate approval is
granted.
Upon approval of the promotion, the Human Capital Department will prepare a letter
incorporating all changes in terms and conditions of employment and send the letter to
the promoted Employees. They are required to sign and return a copy of the letter to
the Human Capital Department, signifying acceptance of the new terms and conditions.

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Internal Transfer

1) Purpose
Internal transfer is encouraged by LSEFSL as it gives Employees opportunities to widen
their exposure and pursue development in other streams within LSEFSL. It also enables
LSEFSL to deploy Employees to areas where they can best contribute to and meet the
manpower requirement and planning of LSEFSL.

2) Policy
It is the policy of LSEFSL to consider internal transfer for existing Employees whenever
a suitable job opportunity arises. All things being equal, preference will be given
to internal candidates so that Employees are provided with opportunities to widen
their exposure and further their career development within LSEFSL.
a) All Employees should have equal opportunities for transfer. It should be
nondiscriminatory and based on job related factors. Age, sex, marital status,
pregnancy, family status, disability, race, political orientation, nationality or
religion should not be considerations for transfer.
b) Employees may be transferred from one post to another or from one
Division/Department to another for career development or operational/structural
reasons. Requests for transfer may be made either by Heads of
Division/Department or by Employees. Transfer should not, however, be used as
a means to shift undesirable or problem Employees to another
Division/Department. Neither should it be used for internal staff poaching.
c) Transfer can only be successful if agreed by both the releasing and the recruiting
Heads of Division/Department. A waiting period is normally required to enable
the releasing Division/Department to find a replacement.
d) As one of the main reasons for transfer is career development, frequent transfer
is not encouraged. Employees should remain in their positions for at least two
years before any transfer is considered.

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17. Orientation/Induction Program

1) Policy Statement
The objective of this procedure is to ensure that all joiners are aware of and understand
the LSEFSLs vision and values. The Orientation Program will help new Employees in
adjusting to their job and work environment.

2) Principles
Orientation programs are conducted for all new Employees. These programs are
specially tailored for each employee and their duration varies with the nature of the
employee's job. Immediate supervisor is required to provide orientation plan to the
employee and get it signed by him/her.
New Employees are briefed on all relevant points pertaining to the organization as a
whole and their department as a microcosm. Information includes but is not limited to
general information on the LSEFSL, services offered, organizational chart, job content,
departments and functions, employee benefits etc.
All new regular Employees from all levels are required to complete the orientation
program. The individual orientation helps the employee fit better into the workplace
and affects his relationship with colleagues and hence his future performance.
It comprises:
a) Personal introduction to all working relationships (also outside of the
department)
b) Information on all practical points related to locations, computer access,
telephone, keys etc.
c) Explanation of various existing HRC and administrative procedures.
General information on Human Resource Policies given to Employees cover;
a)
b)
c)
d)
e)
f)
g)
h)

Position classification.
Confidentiality of salaries and business information.
Performance Appraisal system.
Promotion and recruitment policy.
Training and development opportunities.
Salary payment dates and information on the procedure
Performance and safety hazards.
Any matters of operational importance specific to the department.
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Every employee is required to sign his awareness about the LSEFSLs standard code of
ethic and business practices.
Information provided to the employee is documented and is placed in his/her employee
file.

Part III
Grievances
& Relations
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a.

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18. Grievance Procedure

1)

Purpose

As a LSEFSL policy, LSEFSL is committed to ensuring fair treatment of all Employees

when dealing with their grievances with a view to addressing problems in the best
possible manner.

2)

Policy

LSEFSL's policy is that Employees should:

be provided a fair treatment on their grievances by the Management

LSEFSL;

be given a fair hearing concerning any grievance;

have the right to channel their grievances to the Chief Executive
the case of grievances against the Chief Executive to the Chairman;
have the right to appeal to the Chairman against a decision made
Chief Executive.

of the

and in
and
by the

The aim of this policy is to establish a proper channel for Employees to voice out their
grievances and to settle grievances. Employee grievances may include but are not
limited to, unfair treatment to staff, sexual harassment and concerns about possible
improprieties in financial reporting or internal control. Regardless of the issues and/or
individuals involved, no one shall suffer retaliation for involvement in employee
grievances. All grievances shall be handled independently and treated in strictest
confidence. Grievances which are made anonymously shall not be handled.

3) Procedure
If an employee considers that his grievance is unlikely to be resolved through
discussions with his supervisor, the Head of Division/Department, the Head of Human
Capital Department or in case the grievance is of a very sensitive or serious nature
which requires the attention of the Management, he can raise his grievance directly
with the Chief Executive in the form of a signed letter. In the case of a grievance
against the Chief Executive, the employee can lodge it to the Chairman.
The Chairman/Chief Executive, as the case may be, shall acknowledge receipt of the
grievances in the first instance. He or his designate shall review and examine the case
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and decide whether any meeting with the employee and/or other relevant parties is
required so as to obtain further information or better understanding of the case. All
cases shall be handled independently and treated in strictest confidence.
Having reviewed and evaluated all the facts relating to the grievance, the
Chairman/Chief Executive, as the case may be, shall come to a conclusion. The
aggrieved employee shall duly be advised of the views/decisions of the Chairman/Chief
Executive as well as any follow up actions, if warranted. A written report of the
conclusion shall be issued by the Chairman/Chief Executive, as the case may be, and
shall be filed as an official record in the respective file of the concerned employee.
In the case of a grievance lodged to the Chief Executive, if the employee is not satisfied
with the decision made by the Chief Executive, he may appeal to the Chairman. The
Chairman shall render the final resolution to the employee. This will represents the final
decision of LSEFSL.

4)

Communication
a. Purpose
LSEFSL encourages open and candid two-way communications between
Employees at all levels. It believes that effective communication helps build
mutual understanding and trust, and contributes to a constructive and cheerful
working environment, high performance and organizational success
b. Policy
All Employees are required
implemented by LSEFSL.

to

support

the

communication

initiatives

All Employees have rights and obligations to express their views to their
superiors about LSEFSL activities and vice versa.
Views raised by Employees should be well respected, listened and considered
carefully.
Questions raised by Employees should be attended to by the Management in an
effective and efficient manner and be treated in strict confidence.
There should not be any prejudice against individuals due to differences in
opinions.

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Employees should be well informed of the development and major events of

LSEFSL, in particular those that may have an impact on their jobs and/or welfare.
Suggestions regarding improvement of communication and staff relations in
LSEFSL are most welcome.

5)

Management's role
The heads of all divisions/departments are responsible for understanding their
staff's concerns at work, sharing information and encouraging suggestions. The
Management should treat communication as equally important to other business
priority. The Management should treat matters raised by Employees in a
balanced and fair manner and in strict confidence.
a. Employees' role
Employees are encouraged to discuss their views with their immediate
supervisors, Heads of Division/Department, the Human Capital Department
and/or the Chief Executive. Employees are responsible to clarify with the
Management about the issues of which the hearsay may hamper the employee
relations and de-motivate the staff morale. Employee should actively
communicate their views, express their opinions, and raise their concerns
verbally or in writing through the following communication channels as
appropriate:
I.
II.
III.
IV.
V.
VI.

staff communication groups;

staff briefing sessions;
private interviews with superiors or Human Capital personnel;
LSEFSL's publication or newsletter;
training and development activities; and
lunches, dinners or other company social functions.

6) Staff Social club

The objectives of the Staff Social Club are:

to build and maintain harmonious

communication
and
understanding
divisions/departments;
to cultivate a sense of belonging; and
to enhance the morale of Employees.

relationships, and to strengthen

among
Employees
of
different

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a. Roles
The Staff Social Club representatives will achieve its objectives by: proposing,
planning and organizing staff social activities for staff members and, if resources
allow, their guests promoting the staff social activities for wider participation
contributing to company events for the well being of staff members The Human
Capital Department will play the following roles in different occasions as
appropriate: budget allocation driving facilitator advisor official interface
between LSEFSL and external parties in relation to organising activities
b. Composition
The Staff Social Club is governed by a committee which may comprise of such staff
as may be nominated by the CEO. The committee members will be recommended
by the Heads of Division/Department once a year.
c. Eligibility
All Employees will become members of the Staff Social Club automatically upon
joining LSEFSL
d. Activities
The Staff Social Club organizes social and recreational activities for Employees
throughout the year. All Employees are informed of the details through internal
announcements and are encouraged to participate in the activities.

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19 Staff Records

1)

Policy Statement

The primary purpose of this policy is to provide a framework for Management of

personal files of all Employees. It is intended to ensure all Personal Files are securely
stored and define authorization access.

2)

Responsibilities

The compliance of this policy is the responsibility of all Employees working in LSEFSL.

3)

Staff record

All documents provided by Employees are recorded in personal files kept at the Human
Capital Department. These files are strictly confidential and access is restricted to the
Employees themselves, Employees' Heads of Division and the Employees' potential
Heads of Division if they are being considered for a transfer.
Employees should inform the Human Capital Department of any change in their
personal data. They should complete and submit a Change in Personal Data Form with
copies of supporting documents, if any, to the Human Capital Department. Timeliness
of submission of the form is important as it may affect the payroll arrangements and/or
benefit entitlements of the Employees and their dependants.

4)

Employee Privacy

It is the LSEFSL policy to respect the privacy of its Employees. The LSEFSL will not
monitor, or disclose any personal information about employee without their prior
permission unless the LSEFSL has a good faith belief that such action is necessary to:
(1)
conform to legal requirements or comply with legal process;
(2)
protect and defend the rights or property of the LSEFSL;
(3)
act to protect the business interests of LSEFSL.

5)

Custody of Staff Records

The Human Capital Department is the custodian of Employee Personal Files. All
submitted documents are kept in the personal file, which is updated from time to time.
This file may also contain any optional documents submitted by the Employees. The file
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shall contain the application/resume/CV of the Employees, three professional references

collected at the stage of short listing from out of the list of references provided by the
Employees in their CVs/resumes/applications, and the appointment letters. The
appointment letters to the finally selected candidates shall only be issued after the
receipt of three satisfactory professional references. The HRC department shall also
maintain a log of all personal files and ensures that the borrower signs when referring
or taking the file out (e.g. for legal purposes).

6)

List of Mandatory Documents in Personal File

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

7)

Personal Data Form.

Curriculum Vitae.
Copy of the Computerized National Identity Card.
Appointment Letter.
Copies of Advanced Professional/Academic qualifications.
Three Reference letters.
Probation Evaluation Form.
Record of the approval for the Appointment from the Management/Board
Letter of Confirmation.

Personal File Checklist

Copies of documentation in personal files are made for official use only if authorized by
the Head of Human Capital. Employee related records are destroyed five years
following separation from service provided no suit or dispute involving the employee is
pending for settlement.
No employee other than employee concerned is provided access to his/her personal file
under any circumstances.

8)

Access to Head of Divisions

The Head of Departments are allowed access to the files of their team members.

9)

Other Documents in Personal File

a)
b)
c)
d)

Performance Appraisal System (PAS) documents.

Letter of Promotion.
Transfer Letter.
Disciplinary Action Letter.
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e) Appreciation/ commendation certificates.

f) Leave approvals (for Earned Leaves).

10) Correction of Own Personal Data

Both the Employees and LSEFSL have a shared responsibility to ensure that the
personal data kept by the Human Capital Department are accurate.
Employees are required to inform the Human Capital Department immediately of any
amendment to their personal data by filling in a Change in Personal Data Form. The
Human Capital Department will update the records as soon as possible but not beyond
15 days days after receipt of the form.

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20 Safety & Health

1)

Policy Statement

LSEFSL is committed to providing a safe and healthy work environment to all its
Employees. At LSEFSL, sustainability translates into managing risks to ensure the
health and protect the safety of Employees, neighbors, customers, and all others
affected by business activities, as well as protection of the environment.
These targets demand an anticipatory Management approach, which is focused on
preventive measures, systematic assessment of the process risks, and regular reviews
including audits to control and measure improvements.

2)

Principles

LSEFSL is committed to managing the impact of business on the health and safety of
Employees, contractors and members of the communities in which the business
operates and on the environment, through processes that:
a) Identify, analyze, evaluate, eliminate or manage risks that could cause an
accident, injury or illness to people, damage to property or unacceptable impacts
on the environment or the community;
b) Support the full recovery and rehabilitation of Employees in the event of work
related injury or illness;
c) Consider both short and long-term health, safety and environmental
considerations when making decisions.

3)

Accountability and Responsibility

At LSEFSL, Health Safety and Environment (HSE) is a responsibility shared at all levels.
All Employees are responsible for all operational aspects of HSE and business continuity
and the implementation of HSE policies, standards, processes, and performance
improvements throughout their organization.
All Employees are responsible for:a) Carrying out work safely and without harm to themselves, others, property or the
environment and in accordance with their training, operating procedures and
work instructions;
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b) Seeking assistance if required to undertake a task that they believe they are not
competent to perform;
c) Stopping or not starting activities that they believe carry an unacceptable level
of risk to themselves and others;
d) Not engaging in any form of harassment or workplace bullying; and
e) Reporting any hazards observed in the workplace or deficiencies with work
practice or procedures.
LSEFSL believes in Business Continuity Management. All Employees are responsible for
ensuring the uninterrupted availability of all key business functions, processes and
resources required to support essential business activities. It is an integral part of the
LSEFSL risk Management framework.

4)

Smoke- free workplace policy

LSEFSL is committed to providing a healthy workplace for its Employees. In view of the
harmful effects that are caused by smoking as well as secondhand smoke, it is
considered necessary to have a smoke-free workplace policy in LSEFSL.
LSEFSL's smoke-free workplace policy is that:
a. Smoking is prohibited in the entire office premises covering enclosed offices,
open office areas, conference rooms, pantries, toilets and lift lobbies.
b. Host Employees should take the initiative to advise their guests and visitors of
LSEFSL's smoke-free policy, where appropriate.
c. Non-Compliance to the policy may result in disciplinary action.

5)

Drug free workplace

LSEFSLs shall maintain a drug free workplace (narcotics drugs, controlled substances,
banned psychotropic substances) and manufacture, distribution, sale, possession or use
of a controlled substance shall be prohibited in the workplace.
This policy applies to all Employees of the LSEFSL and any out-sourced staff working in
the LSEFSL premises

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Business/Professional Attire

The LSEFSL is committed to upholding its professional image, specifically as it relates to

the dress and appearance of Employees. It will be incumbent for all to be dressed in an
acceptable professional manner while on the job. All Employees are required to wear
standard business attire or, if required, working clothes and/or uniforms as issued by
the LSEFSL, during the working hours. The head of HRC will be responsible for issuing
instructions regarding the desired dress code for all Employees from time to time.

7)

Conduct Outside of Work

In general, the LSEFSL does not seek to interfere with Employees off-duty activities.
However, the LSEFSL cannot tolerate off-duty conduct that in these situations impacts
negatively on the LSEFSL, either in terms of an employees individual work performance
or the business interest of the LSEFSL, including its reputation.

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``

Organizational Chart

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Annexure I

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FORMS

1.
2.
3.
4.
5.
6.

Staff Requisition Form.

Promotion Evaluation Form.
Orientation/Induction Checklist.
Probationary Evaluation Report.
Performance Appraisal Form.
Employee Training Report:Training Form.
Training Feedback Form.
7. Leave Application Form.
8. Travel Authorization Form.
9. Clearance Form.
10.
Change in Personal Data Form
11.
Hospitalization Insurance Registration Form
12.
Provident Fund Declaration/Nomination Fund

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