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Co., Ltd.Employee Handbook1st February 2011IndexDISCLAIMER . 3CODE OF BUSINESS ETHICS . 4SALARY AND JOB POTENTIAL. 6EQUAL EMPLOYMENT OPPORTUNITY POLICY. 6HUMAN RESOURCE POLICIES . 7EMPLOYEE BENEFITSPublic Holidays 7Annual Leave . 7Medical Insurance . 8Sick Leave . 8Unemployment Insurance 8Compensation for Work Connected Injury . 8Pension . 8Change of Status or Termination . 8Performance Appraisal . 9Lunchtime. . 9Funeral Leave/Bereavement Benefits . 9Marriage Leave 9Maternity Leave .10Paternity Leave 10Employment with Other Employers.10EMPLOYMENT WORK RULESEmployee Conduct & Work Rules .11Drug Free Workplace . 13Sexual Harassment Policy .13Complaints . 14Hours of Work . 15Break Time 15Work Week, Paydays and Pay Periods . 15Probationary Period . 15Overtime . 15Tardiness . 15Absenteeism . 16Solicitations .16Confidentiality .16Safety Rules 17Pre-placement Physical Examinations . 17Patent Rights. 17Resignation of Employment . 17Dismissal Procedures .17Personal Details 17Personal Phone Calls/Mail 18Training . 18DisclaimerBy signing the following, I hereby acknowledge that I have received a copy of the Companys Employee Handbook. I understand that it is my responsibility to become familiar with and abide by its contents. I further understand and agree to the following: THIS HANDBOOK REPRESENTS A BRIEF SUMMARY OF SOME OF THE MORE IMPORTANT COMPANY POLICIES RELATIVE TO EMPLOYMENT, BUT IS NOT INTENDED TO BE ALL INCLUSIVE OF COMPANY POLICIES OR PRACTICES. THE COMPANY RETAINS THE RIGHT IN ITS BUSINESS JUDGEMENT TO MODIFY, SUSPEND, INTERPRET, OR CANCEL IN WHOLE OR PART THESE POLICIES AS ALLOWED BY PRC GOVERNMENT LABOUR LAWS. THE COMPANY DOES NOT RECOGNIZE VERBAL OR IMPLIED CONTRACTS FOR EMPLOYMENT. THE CONTENTS OF THIS HANDBOOK DO NOT CONSTITUTE AN EXPRESSED OR IMPLIED CONTRACT OF EMPLOYMENT. THIS HANDBOOK SUPERSEDES ANY PREVIOUS HANDBOOK, APPLICATION, MEMORANDA OR MATERIALS PROVIDED.Employees Name:_(Please Print in English and Chinese, as in ID card)Employees Signature:_Employees ID number:_Date: _Witness: _Title: _Date: _Code of Business EthicsThe Company is committed to policies and practices, which will strengthen our company and inspire public confidence in our Company, products and our management.Company CODE OF BUSINESS ETHICS is as follows:1. The Company will strive at all times to conduct the affairs to merit public confidence in our business and industry. The Company will not make payments to domestic or foreign dignitaries or persons other than authorized sales representatives in the Peoples Republic of China or foreign countries in order to fulfill a legal contractual agreement. The Company will not make contributions to any individual or organizations that would be construed as politically motivated.2. The Company will strive to see that our employees are given every opportunity to progress within the Company and are appropriately compensated for their work.3. The Company will deal fairly with customers and suppliers and extend to them the same treatment we wish to receive ourselves. In this respect the Company will not receive, accept or offer gratuities, unauthorized finders fee payments, bribes or other illegal compensation which would tend to subvert free competition.4. The Company will compete vigorously to serve our customers and expand our business but will avoid unfair and/or unethical practices.5. The Company will seek through sound management practices to produce the profit necessary for the continued progress of the business and so fulfill our responsibilities to our stockholders, employees, customers, and community.6. Employees of the Company shall avoid outside affiliations which can put them in a position of potential or actual conflict of interest with the Company. Employees of the Company may not, directly or indirectly:(a) Own stock or have any other interest in a competitor, customer, or supplier, except for the ownership of less than 5% of the securities of a company whose securities are widely held and publicly traded;(b) Serve as a member of the Board of Directors (or similar body) of, or perform work or render service to, any organization having a competitive relationship with the Company.7. Gifts, except of nominal value, shall not be given to customers or anyone else having business dealings with the Company. Lavish entertainment of or with those having business dealings with the Company will be avoided.8. All business expenses paid for by the company or its employees during the course of business must be of a business nature and approved by management.9. It is the policy of the Company that the possession or use of alcoholic beverages or illegal drugs (including the unlawful use of prescription drugs) within Company buildings or on Company property is strictly forbidden. Since the use of alcoholic beverages or drugs by an employee will adversely affect job performance and renders the employee potentially dangerous to co-workers as well as to himself/herself, the consumption of alcoholic beverages or the use of drugs so as to cause the employee to be at work or to report to work under the influence of intoxicating beverages or illegal drugs is also forbidden. An employee reporting to work or at work under the influence of drugs or alcohol will be subject to dismissal.Salary and Job PotentialThe Company takes pride in the fact that anyone can go as far as their individual ability takes them. Salaries and job assignments are reviewed regularly and productive employees are rewarded for their good performance and hard work. We are anxious to have able and dedicated employees grow with us. The salary, subsidy and bonus are confidential information of the Company. Any disclosure of the information of the salary, subsidy, bonus and/or other benefits committed by the employee shall be deemed as a serious violation of the rules and regulations of the Company, which will result in disciplinary action which could result in termination.SalaryThe salary is paid monthly. According to PRC Government regulations, employees individual income tax, and the personal contribution to the social security insurance scheme, the public housing reserve, and other PRC Government mandatory employee contributions will be deducted and paid from monthly salary payment. Salary Adjustment(a)The purpose of the individual salary review is to determine the appropriate salary to pay an employee based on his individual performance, the Company achievements and Companys business operation status.(b)In principle, an employees salary may be reviewed at year end each year. Companys achievements, employees job performance, and economic conditions are among the factors that may be taken into account during annual review. The management decision during such reviews shall be considered final.Equal Employment Opportunity PolicyThe Company is committed to providing equal employment opportunity in all aspects of personnel for all applicants and employees regardless of their sex, race, age, handicap, disability, religion, national origin, or other condition or factor, as defined and prescribed by applicable law. By hiring, compensating, training, and promoting employees on the basis of merit, we assure the continued success of Company operations and the full utilization of our human resources.Our goal is to provide an environment that fosters and encourages the personal and professional growth of employees. The Company prohibits any form of harassment, the making of offensive remarks, or other abusive conduct directed at employees regarding their sex, race, age, handicap, disability, religion, national origin or other protected classification. Any employee who feels subjected to or witnesses such behavior shall immediately report it to their manager/supervisor or to Division Human Resources or Corporate Human Resources Department. Any questions about this policy shall also be brought to the attention of the same persons. Allegations of violations of this policy will be promptly investigated in as confidential a manner as possible and appropriate corrective action will be taken if, and where, warranted. Employees may raise concerns without fear of reprisal.Human Resource Policies The work rules which follow are the result of much thought and consideration on the part of the Company. They were designed to let you know what the Company expects of you in the performance of your job.Employee BenefitsThe information given below summarizes the benefits available to our employees. Public HolidaysAll full-time employees are entitled to basic paid public holidays as announced by Chinese central and local government. Currently the PRC Government have listed 11 days public holiday per year as; New Years Day, Spring Festival, Qingming Festival, May Day, Dragon Boat Festival, Mid-Autumn Festival and National Day.If a holiday falls on a Saturday, or a Sunday, (the previous Friday or the following Monday will be considered a holiday) subject to management discretion. Paid holidays that occur during the scheduled vacation period of an employee shall not be considered as vacation time off.Annual LeaveEmployees who have successfully completed the probationary period will be eligible for annual leave. Employees earn annual leave on a monthly basis. Annual leave must be requested at least fourteen (14) working days in advance and is subject to management approval. Regular employees of the Company will be eligible for Annual Leave based on the following schedule.l 1 9 years of total work service = Ten (10) working days per yearl 10 19 years of total work service = Fifteen (15) working days per yearl 20 years of total work service = Twenty (20) days per yearAnnual leave that the employee has earned for the year is valid until December 31st the following year. Unused leave cannot be paid or applied for after that time.Medical InsuranceThe Company will arrange medical insurance for eligible employees according to PRC Government laws and regulations.Sick LeaveRegular employees are entitled to five (5) days of sick leave in any one year with full payment of the basic salary with valid certificate of diagnosis. If the sick days are more than 5 days, the payment of salary shall be subject to the local laws and regulations.Unemployment InsuranceYour unemployment insurance benefit has been established according to the local laws and regulations, to provide benefits for you in the event you should become unemployed.Compensation for Work Connected InjuryThe Company provides Workers Compensation coverage according to local laws and regulations for employees who are injured on the job.In order to protect your rights to qualify for benefits, you must report any injury immediately to your supervisor and also complete an accident report detailing the circumstances and conditions relative to the accident.PensionThe pension insurance will be arranged by the Company according to the local laws and regulations.Change of Status or TerminationWithout any limitations by any section of this Handbook, the Company has the right, in its sole discretion, to make and implement decisions relating to an individuals position, compensation, retention, and/or other terms and conditions of employment. The Company is not bound by anything to the contrary which may be communicated to employees. No company representative is authorized to modify this Handbook or to enter into any agreement, oral or written, contrary to this Handbook. Company Policies and practices with respect to any matters are not to be considered as creating any contractual obligation on the Companys part or as stating in any way that termination will occur only for “just cause”. Statements of specific grounds for termination set forth in this Handbook or in any other Company documents are examples only, not an all-inclusive list, and thus, are not intended to restrict the Companys right to terminate an employee at its will but within accordance with current PRC Labour Law.All benefits that are due and payable at termination will be paid in accordance with applicable law. The employee will be notified of the benefits that may be continued and of the terms, conditions, and limitations of such continuance.Performance AppraisalYour supervisor will keep you informed regularly of your performance level. The performance appraisal review process has been established as the formal means to ensure this. The first review you will receive will be scheduled at the end of your probationary period. Periodic reviews are conducted thereafter.Lunch TimeEmployees are given 30 minutes lunch time to be taken between 1130hrs and 1330hrs during normal work day. The actual time to be agreed by the employees supervisor.Funeral Leave/Bereavement BenefitsFuneral leave is provided for eligible employees in case of the death of a relative as indicated below. If requested an employee may be allowed up to three days with pay to attend to the funeral of a direct relative, (which is defined as the employees spouse, parent, child, or sibling). The paid days shall be limited to the basic Monday to Friday workweek. Funeral leave shall not be applicable towards days after the funeral for other purposes, such as settling the estate of the deceased. One paid day may be granted to attend the funeral of other family members, defined as grandparents or parents-in-law). Marriage LeaveMarriage leave is provided to eligible employees. The time off for marriage leave includes Saturday and Sunday. A relevant marriage certificate is required for the marriage leave. The employee is required to apply for such leave prior to his/her marriage and the marriage leave shall be taken within twelve (12) months from the date of the marriage registration. The marriage leave is for the first marriage only.For employees first marriage for males below 25 years of age and females below 23 years of age, the marriage leave is three (3) CALENDER days.For employees first marriage for males who are 25 years of age and older and females who are 23 years of age and older, the marriage leave is 15 CALENDER days.Maternity leaveAll female employees are entitled to maternity leave under the birth control policy as set forth below:(1)Maternity leave will be 90 calendar days. For first birth mothers 24 years of age there will be an additional 30 calendar days bringing the total to 120 calendar days. For cases of twins, dystocia or surgical delivery an additional 15 calendar days will be added for each factor. All time off under the maternity leave includes Saturday and Sunday.(2)Any rest days or public holidays within the maternity leave period shall be counted as part of the maternity leave.(3)An employee who applies for the maternity leave shall submit a leave application form attached with a medical certificate confirming her pregnancy and specifying her expected date of confinement via her immediate superior to Human Resources Department for record at least three (3) weeks before the expected date of confinement.(4)With the agreement of individual manager concerned, if the female employee returns to work before the expiration of her maternity leave, full salary will be paid accordingly. (5) Any female employee who takes any day-off for her pregnancy check-up, post confinement medical treatment will be counted as sick leave and be paid in accordance with Sickness Allowance. For all of sick leave the employee will receive 2/3 of her salary for a maximum period of 30 days.(6) In a case where all sick paid leave for the year has been used up, employee may apply for unpaid leave.Paternity LeavePaternity leave is provided for eligible male employees under the birth control policy. In cases of first birth mothers 24 years of age, the father employees paternity leave will be three (3) calendar days. Employee should request leave in advance and submit a copy of the childs birth certificate for verification.In other circumstances no paternity leave is provided.Employment with other EmployersThe Company shall have no liability for any retirement pension, housing, medical or other social obligations arising from the employees previous or future employment relationship with another Employer. If the Employee has health problems resulting primarily from activities, incidents or exposure to an unhealthy environment that occurr
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