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Document Name: Hong Kong Employee Handbook Owner: Human Resources Department Revision 8 Effective Date: January 1, 2014 Page 1/ 27 Employee Handbook CEVA Logistics (Hong Kong) Limited

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Document Name: Hong Kong Employee Handbook Owner: Human Resources Department Revision 8 Effective Date: January 1, 2014

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Employee Handbook

CEVA Logistics (Hong Kong) Limited

Document Name: Hong Kong Employee Handbook Owner: Human Resources Department Revision 8 Effective Date: January 1, 2014

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This handbook explains some of the Company’s terms and conditions, and employment guidelines in more details. It is intended to promote consistency and better understanding of the Company’s policies such as terms and conditions of employment, compensation & benefits, employee relations, training & development, etc, thus avoiding misunderstanding and disputes before they arise. Every effort has been made to ensure that the Handbook is prepared in line with our corporate values, policies and procedures, the local Employment Ordinance and the market practices.

This Handbook is effective January 1, 2014 and it supersedes and replaces all previous employee handbooks, announcements and policies whether made in written or verbally. Unless the context requires otherwise a word denoting the singular shall include the plural, and a word denoting the masculine gender shall include the feminine gender.

The company reserves full discretion to add, modify, or delete provisions of this handbook, or the policies, procedures and standards. Employee may check with your immediate supervisor / Head of Department or the Human Resources Department to obtain current information regarding the status of particular policy, procedure, or practice.

We are confident you will enjoy your career with CEVA.

Document Name: Hong Kong Employee Handbook Owner: Human Resources Department Revision 8 Effective Date: January 1, 2014

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CEVA Logistics is passionate about supply chain management. It is our mission to deliver value to our customers through robust and reputable supply chain solutions on a local, regional and global scale.

We go beyond the boundaries of traditional supply chain management and design innovative solutions based on state-of-the-art technology, advanced supply chain engineering and our global operational expertise.

Everything we do is measured by rigorous standards. We invest in relationship management to ensure perfect communication with our customers. In line with this, our Mission is clearly stated as follows:

OUR MISSION

CEVA will be the world’s leading logistics provider, by delivering continuous improvement to our customers through operational excellence and providing total focus on customer satisfaction and innovation.

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CEVA China DNA

Document Name: Hong Kong Employee Handbook Owner: Human Resources Department Revision 8 Effective Date: January 1, 2014

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1. Introduction

1.1 Company Profile 8

2. Company Policies & Practices

2.1 Conflict of Interest 9

2.2 Outside Employment 9

2.3 Confidentiality 9

2.4 Electronics Communications and Information Security 9

2.5 Receipt of Gifts or Offers 9

2.6 Code of Conduct 9

2.7 Gambling & Consumption of Alcohol and Drugs 9

2.8 Safety Rules 10

2.9 Security Rules 10

2.10 Punctuality & Attendance 10

2.11 Appearance and Dress Code 11

2.12 Company Premises 11

2.13 Non-Smoking Policy 12

2.14 Company Image 12

2.15 Salary Tax Deduction 12

2.16 Work Arrangement during Typhoon and Rainstorm 12

3. Employment

3.1 Equal Employment Opportunity and diversity 13

3.2 Employment of Relatives 14

3.3 Background Checks 14

3.4 Letter of Employment 14

3.5 Probation and Confirmation 14

3.6 New Employee Orientation 14

3.7 Job Duties 14

3.8 Job Opportunities and Transfers 15

3.9 Personnel Information 15

3.10 Staff Card 15

3.11 Hours of Work 15

3.12 Time Keeping Procedures 15

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4. Compensation & Career Development

4.1 Payment of Salary 17

4.2 Overtime and Other Allowance 17

4.3 End of Year Bonus (Double Pay) 17

4.4 Incentive Schemes 17

4.5 Performance Review 18

4.6 Salary Review 18

4.7 Training & Development 18

4.8 Company Nominated External Training 18

4.9 Training Subsidy 18

5. Benefits

5.1 Holiday and Leave

5.1.1 Public and Company Holidays 19

5.1.2 Annual Leave 19

5.1.3 Sick Leave 20

5.1.4 Marriage Leave 21

5.1.5 Compassionate Leave 21

5.1.6 Maternity Leave 21

5.1.7 Child-care Leave 22

5.1.8 Examination Leave 22

5.1.9 Jury Service Leave 22

5.2 Insurance and Mandatory Provident Fund (“MPF”)

5.2.1 Employees’ Compensation Insurance 23

5.2.2 Group Medical Scheme 23

5.2.3 Group Dental Scheme 23

5.2.4 Group Life Insurance 23

5.2.5 Business Travel Insurance 23

5.2.6 Mandatory Provident Fund (MPF) 23

5.3 Other Benefits

5.3.1 Company Properties 24

5.3.2 Business Travel 24

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6. Termination of Employment

6.1 Resignation & Termination 25

6.2 Summary Dismissal 25

6.3 Retirement 26

6.4 Final Payment 26

7. Management Prerogative 26

8. Acknowledgement 27

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1. INTRODUCTION

1.1. Company Profile

CEVA Logistics is one of the leading supply chain companies in the world, with annual revenues in 2011 of Euro 7 billion and 51,000 employees operating 1,000 sites in over 170 countries worldwide.

CEVA was formed in 2006 when Apollo Management, a private equity group, acquired the logistics division of TNT. The company was then re-named CEVA, after the Italian mathematician Giovanni CEVA, who at age of 31 formulated CEVA’s Theorem, a proof in synthetic geometry, in 1678. CEVA acquired EGL Eagle Global Logistics and merged the two companies in Mid 2007. CEVA aims to be the most admired company in the supply chain industry. To reach this ambitious goal, CEVA will be guided by three strategic imperatives – Unity, Growth and Excellence: Unity: One company – one team. CEVA is a richly diverse organization and operates seamlessly as one company, sharing the same passion to deliver world class solutions and service to its customers. The company has some of the best supply chain professionals in the industry and develops this talent in an inspiring work environment. Growth: Outperform market growth. In each industry sector and country where CEVA operates, the company grows faster than the market. It leverages its scale and global presence to improve efficiency and to provide a complete service offering. CEVA is easy to do business with. The customer focus and flat organization structure gives it speed and flexibility. Excellence: Perfection is CEVA’s goal. Every day employees strive to be better. CEVA systematically measures progress. It implements best practices on a global scale and a LEAN culture is the basis for operations excellence.

For further information, please visit www.cevalogistics.com or our company intranet site.

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2. COMPANY POLICIES & PRACTICES

2.1. Conflict of Interest

Employee must avoid any situation where his personal interests may conflict or

appear to conflict with the interest of the Company or its customers. In case of

possible conflict, Employee must report immediately to his immediate supervisor /

Head of Department.

2.2. Outside Employment

Employee is prohibited to undertake outside employment unless prior written

permission from the Company has been obtained.

2.3. Confidentiality

Employee shall not at any time, during the continuation or after the termination of

employment, directly or indirectly, divulge to third parties any details of the Company’s

business, finance, transactions and affairs. The disclosure of such information may

lead to disciplinary or legal action.

2.4. Electronics Communications and Information Security

Employee should be familiar and comply with the IS&S information security policy.

Details please refer as posted on CEVA intranet.

2.5. Receipt of Gifts or Offers

Employee shall not accept gifts or any offers from persons dealing with the Company.

He shall also inform the donor the Company’s policy of prohibiting any gift and offer

acceptance and this may result in disciplinary action by the Company.

2.6. Code of Conduct

Practice honesty and integrity in all dealings with colleagues, customers, suppliers

and competitors. Avoid getting into situations where there is a conflict of interest or

the improper use of inside information. Refrain from any dealing that might reflect

badly on one’s integrity and good name or that of the Company’s. Please refer to

Code of Conduct as posted on CEVA intranet.

2.7. Gambling and Consumption of Alcohol and Drugs

Gambling and consumption of alcohol and drugs are not permitted in the work areas

and are causes for summary dismissal.

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2.8. Safety Rules

To maintain a safe, productive and pleasant work environment, Employee shall

observe the following safety rules:

- Observe all safety signs, instructions and follow correct work procedures.

- Do not operate machines, equipment or Company vehicles unless authorized.

- Keep all emergency exits, fire-fighting equipment, switch rooms and electrical

panels clear at all times.

- Employee shall know the location of fire alarms, extinguishers in the work place,

and the equipment. Fire drill will be organized regularly.

- Report safety hazards and unsafe acts or conditions to immediate supervisor /

Head of Department immediately for corrective actions.

- Report all accidents and injuries, no matter how minor to the immediate supervisor

/ Head of Department as well as Human Resources Department immediately.

2.9. Security Rules

It is the Company’s policy to maintain tight security. Employee shall cooperate in

maintaining strict compliance to the security rules:

- Employees in warehouse are required to wear Company uniform at all times

during working hours. Tampering with or altering the size or style of uniform is

prohibited.

- Display staff card before entering the Company’s premises and at all times in the

premises. The staff card must be worn above waist level with the photo facing

outward.

- When reporting in for work or off duty, use staff card / own punch card to key

attendance. Assist other Employee punching card is strictly prohibited.

- Photo-taking and video shooting for company assets will not be allowed in the

premises unless authorized.

- Visitor is allowed to enter the premises only after proper registration at the

reception counter and escorted by Employee.

- Illegal, dangerous and unsafe properties (e.g. flammable substances) are strictly

prohibited to be brought into the company premises. Employee violating such

rule will be subjected to disciplinary action and liable to any related incidents

incurred.

2.10. Punctuality and Attendance

Employee shall observe his punctuality and attendance. If he is unable to report for

work or report on time, he shall notify his immediate supervisor / Head of Department

30 minutes before his normal working hours and give reasons for his absence. If his

immediate supervisor / Head of Department is not available, he shall notify the Human

Resources Department.

If Employee has to leave work place during working hours because of illness or any

other reasons, he shall obtain prior approval from his immediate supervisor / Head of

Department to ensure sufficient manpower planning ahead.

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Shall Employee fail to turn up for work without prior notification, it may constitute a bad

performance rating or disciplinary action, including dismissal.

In cases of sickness, Employee is required to provide completed leave application

form together with original medical certificate issued by registered medical practitioner

to his immediate supervisor upon the 1st day when he returns to work.

All Employees must record their actual time worked for payroll and benefit purposes.

Any departure from work for any non-work related reason must also be reported and

pre-approved by immediate supervisor / Head of Department.

Sales personnel and managerial level employees are also required to report absence

from work for reasons such as leaves of absence, sick leave, or business

appointment.

It is the Head of Department and Employee’s responsibility to ensure the accuracy of

all time record and attendance. Any errors in the timecard should be reported

immediately to the immediate supervisor / Head of Department, who will attempt to

correct legitimate errors.

Altering, falsifying, and tampering with time records, or recording time on another

Employee’s time record is prohibited and subject to disciplinary action, up to and

including termination of employment.

2.11. Appearance and Dress Code

Personal appearance and hygiene play an important role in projecting a professional image in the community and to the customers we serve. Our appearance should always reflect what is appropriate for our job, personal safety and in business manner. Employee should dress appropriately at all times, especially if they will be dealing with clients and external parties in person. Appropriate business attire for weekdays include shirts, trousers, socks and dress shoes for male Employees. Examples of attire for female Employees are dresses, blouses, skirts, business pants suits and dress shoes or boots. Smart casual is allowed only during Friday and weekends which includes neat jeans, polo shirts and sports-shoes.

Uniform will be provided by the Company to Employee who is required to wear while

on duty. It is the responsibility of Employee to maintain his uniform in good shape and

in good condition. All uniforms are the Company properties and should return to the

Company upon termination of employment otherwise HK$50 will be charged for each

non-returnable item. Please refer guidelines on dress code for details.

2.12. Company Premises

No Employee may indulge in any commercial activity, business or utilize any facilities

of the Company for private purpose.

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Employee is responsible for the custody of personal property in the Company’s

premises or sites. The Company will not be responsible for any damage or loss of

personal properties.

2.13. Non-smoking Policy

Smoking is strictly prohibited in all areas within the office, toilets and warehouse

premises.

2.14. Company Image

An employee is prohibited at any time to speak vulgar language in the office. It will

neither be respectful to his colleagues nor to himself, also creates a negative impact

to the Company image. Violation may lead to disciplinary action including dismissal.

2.15. Salary Tax Deduction

Employee is responsible for the payment of his Hong Kong Salaries Tax. In the event

of any unsettlement, the Company has the obligation to pay the same as requested by

the Inland Revenue Department and thereafter deduct the total sum from his salary.

2.16. Work Arrangement during Typhoon and Rainstorm

In order to provide continuous service to our customers, individual department shall

set up emergency unit comprising Employees who are required to be on duty when

Typhoon Signal No.8 or above is hoisted or black rainstorm. Employees so

appointed shall be given instructions, including transportation arrangements for

reporting duty and immediate supervisor / Head of Department should keep specific

precautionary measures for working during the period including keeping Employee in

a safety workstation when the weather is bad.

Employee who has difficulties in reporting or resuming duty on time should inform

immediate supervisor / Head of Department immediately or he should take annual

leave for the absence.

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Work Arrangement during Typhoon

Signal No.3 or below Signal No.8 or above

The signal is in force

before normal working

hours

Employee shall report duty

as usual

Employee is not required

to report duty except

Employee of Emergency

Unit

The signal is issued during

working hours

Employee shall report duty

as usual

Employee should be

released except Employee

of Emergency Unit

The signal is issued before

commencement of working

hours and is cancelled 4

hours or more before the

end of working hours

Employee shall report duty

as usual

Employee is required to

return to work within 2

hours after cancellation of

the warning

Work Arrangement during Rainstorm

Amber and Red Storm Black Rainstorm

The signal is in force

before normal working

hours

Employee shall report duty

as usual

Employee is not required

to report duty except

Employee of Emergency

Unit

The signal is issued during

working hours

Employee shall report duty

as usual

Employee should continue

his work

The signal is issued before

commencement of working

hours and is cancelled 4

hours or more before the

end of working hours

Employee shall report duty

as usual

Employee is required to

return to work within 2

hours after cancellation of

the warning

3. EMPLOYMENT

3.1. Equal Employment Opportunity and Diversity

CEVA applies equal opportunity. It is the Company’s policy not to discriminate against

any Employee or applicant on the basis of race, color, religion, national origin, sex,

age, family status, sexual preference and disability, and sexual harassment is

prohibited in the Company. In keeping with this policy, discrimination or harassment

on any of the above by any of CEVA Employee will not be tolerated and shall report to

immediate Supervisor / Head of Department and Human Resources Department

immediately for further handling.

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3.2. Employment of Relatives

The Company permits the employment of relatives as long as it does not create any

potential conflicts of interest. All employment must receive approval from the Human

Resources Department and Head of the Department at the time of employment.

Related staff cannot work in positions where one might be able to assign, check,

process review, approve, audit, or otherwise affect the work of his relative, or where

one might be able to influence the salary progress or promotion of his relative.

Declaration must be submitted to Human Resources Department / Head of

Department if Employee has a relative working within the Company.

3.3. Background Checks

CEVA recognizes the importance of maintaining a safe workplace. Before hiring an

individual, the Company reserves the right to investigate an individual’s criminal

history, motor vehicle record, personal references, employment and educational

background, as well as other relevant information that is reasonably available to the

Company.

3.4. Letter of Employment

A letter of employment shall be issued to all new Employees by the Human Resources

Department.

3.5. Probation And Confirmation

Employee, unless otherwise stated in his Letter of Employment, will undergo a

probationary period. The length of the probationary period will be specified in his letter

of employment. During this period, Employee will be appraised on his performance,

competencies and suitability for the job. If deemed necessary, the probation period

may be extended for a further period. Upon confirmation of his employment on a

permanent basis, he will be eligible for the fringe benefits as mentioned.

3.6. New Employee Orientation

The Company provides an orientation program for all new Employees. This program

includes an explanation of general Company information, employee benefits and the

completion of the necessary personnel forms, etc.

3.7. Job Duties

Immediate supervisor / Head of Department will explain the job responsibilities to an

Employee concerned. However, the job responsibilities may change from time to

time during his employment to maintain flexibility. The Company reserves the right,

at any time, to alter or change job responsibilities, reassign or transfer job positions or

assign additional responsibilities. Employee will be given prior notification when

such changes are necessary.

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3.8. Job Opportunities And Transfers

Internal job posting / vacancies in the Company are avenues for Employee to advance

their career in CEVA. Job openings will be posted on job portal and Employee may

apply for the position. The announcement of the internal job postings is at the

discretion of the Company.

Transfer is also available from site to site for certain Employees. The Company

reserves the right to initiate and require a transfer of Employees from one location to

another in the interest of Company’s business needs or as a career development

move for Employee. Details please refer as posted on CEVA intranet.

3.9. Personal Information

Employee information recorded in the personnel file must be accurate and up-to-date.

It is the responsibility as Employee to inform the Human Resources Department of

any changes in personal particulars such as correspondence address, telephone

numbers, marital status, qualifications, emergency contact, criminal history, etc.

An Employee who furnishes the Company with incorrect information or suppresses

any material fact may subject to disciplinary action including dismissal.

3.10. Staff Card

Staff Card will be issued to an Employee upon commencement of work. Employee

shall carry the card while in Company premises. The staff card is the property of the

Company and must be returned to the Human Resources Department on termination

of employment. An administration fee of HK$50 shall be charged for card lost.

3.11. Hours of Work

Given the nature of our industry, the normal business and working hours varies in

different department and based on customers’ demand. Employee will be assigned a

work schedule / roster each month which prepared by his immediate supervisor /

Head of Departments. It may be necessary to change individual work schedule on

either a short-term or long-term basis with short or without notice. Employee is

required to work according to the assigned schedule unless any special approval by

his immediate supervisor / Head of Department. Employee may be required to work

extra hours from time to time to meet Company’s objectives. All Employees may be

required to work overtime during weekdays, weekends or holidays either when

requested to do so by the Company or when the proper performance of his work so

requires.

3.12. Timekeeping Procedures

All employees must record their actual time worked for payroll and benefit purposes.

Any departure from work for any non-work related reason must also be reported and

pre-approved by immediate supervisors / Head of Department.

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Sales personnel and managerial level employees are also required to report absence

from work for reasons such as leaves of absence, sick leave, or personal business.

It is the responsibility of Employee to ensure the accuracy of all time records. Any

errors in time record should be reported immediately to his Manager.

Altering, falsifying and tampering with time records or clocking time for another

employee is prohibited and subject to disciplinary action, including termination of

employment.

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4. COMPENSATION & CAREER DEVELOPMENT

4.1. Payment of Salary

Salary and allowances (if any) of an Employee are stated in his letter of employment.

Payment will normally be made into individual designated bank account on or around

25th of each calendar month.

Where the Employee has not worked for a full calendar month, salary will be

calculated on a pro-rata basis.

Payment is subject to all statutory deductions and MPF contributions and any other

deductions which the Company obliged to make.

4.2. Overtime and Other Allowances

It is the Company policy to keep overtime work to a minimum. Job must be well

planned and overtime working is carried out only when necessary. All overtime

payment shall be calculated in unit of 1 hour. The time spent on meals and training

shall be excluded from overtime calculation. Please refer to the guidelines on

overtime and other allowances for details.

4.3. End of Year Bonus (Double Pay)

Subject to the clause stated in the Letter of Employment, Employee who has

successfully completed 12-months’ continuous service at the end of each calendar

year (i.e. from January 1 to December 31) will be entitled to a year-end bonus

equivalent to one month’s basic salary.

New Employee who has not been employed for the whole payment period but has

successfully completed the probation period and the service for not less than 3

months before the end of each calendar year, he will receive a pro-rata payment with

reference to the length of employment in the relevant payment period.

Existing Employee who has been employed for less than three months of the

particular calendar year and dismissed or redundant by the Company will entitle

pro-rata payment with reference to the length of employment in the relevant payment

period.

If Employee resigns or is dismissed by the Company in accordance with Section 9 of

the Employment Ordinance of HKSAR before the payment period, he shall not be

entitled to any payment. (amendment on 1st January 2014)

4.4. Incentive Schemes

An employee is eligible for incentive scheme according to the Letter of Employment.

The offering of incentive is subject to management discretion and no incentive will be

entitled upon submission of resignation before the incentive was paid.

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4.5. Performance Review

The performance review will be conducted bi-annually in the first and third quarter. All

information will serve as a reference for measuring how well the performance of an

Employee. Employee is encouraged to participate in the discussion to achieve

two-ways communication with his immediate supervisor/Head of Department

regarding his performance and development opportunity.

4.6. Salary Review

Unless otherwise specified in the Letter of Employment, an Employee’s salary

normally will be reviewed once per calendar year. The Company may, at its sole

discretion, make salary adjustment to incorporate the merit and market adjustment,

having ascertained the relative market levels, internal equity and individual

performance. Salary adjustment, if any, will be in line with the movement of relative

market values, job scope, economic variable and the company and individual

performance.

4.7. Training & Development

Employee is encouraged to upgrade his skills and develop competencies. His training

and continuous education begins with his first assignment and throughout his career

in the Company. Both formal and on-the-job training are available for all Employees

from time to time. Employee is encouraged to discuss his training needs with his

immediate supervisor / Head of Department during the performance review.

4.8. Company Nominated External Training

The Company may from time to time provide external training to the Employee for

further enhancement and development. Such courses are usually in line with the

individual development plans and Employee will abide by the policy.

4.9. Training Subsidy

All employees who are confirmed probation, may apply for Company Sponsorship for

certified course or technical certificate. Employee should fill and submit the External

Training Application Form (available in Human Resources Department) together with

the course information to Human Resources Department for application. Approval

will be subject to the Company’s training budget and the job necessity. The Employee

has to abide by the regulations relating to company-sponsored courses. For those

application approved, binding contract may be applied regarding to the retaining of

service otherwise return of training fee is required.

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5. BENEFITS

5.1. Holiday and Leave

5.1.1. Public and Company Holidays

Employee is eligible for all Public Holidays which are stipulated by the HKSAR. If he is

required to work on statutory holiday, an alternative holiday will be arranged in

accordance with the Employment Ordinance of HKSAR.

Any leave applied or taken during early release specially granted by Management will

be counted as one day. (Amendment on 1st January 2014)

5.1.2. Annual Leave

Employee shall be entitled to paid annual leave. The common leave year used for

calculating annual leave shall be a period from the January 1 to December 31 of a

calendar year.

Join date before Jan 1, 02 Join date on/ after Jan 1, 02

Length of Service General &

Supervisory

(days)

Assistant

Managers or

above

(days)

A1-A4 Grade

(days)

A5-A7 Grade

(days)

M1 Grade or above (days)

1st year 11 13 11 14 17

2nd

year 11 13 11 14 17

3rd

year 12 15 12 15 18

4th

year 13 17 13 16 19

5th

year 14 19 14 17 20

6th

year 15 21 (max) 15 (max) 18 (max) 21 (max)

7th

year 16

8th

year 17

9th

year 18

10th

year 19

11th

year 20

> 12th

year 21 (max)

New Employee with less than one completed year of service will be calculated on

pro-rata basis. All leaves taken within probation period will be treated as no paid leave.

According to the Employment Ordinance of HKSAR, Employer has the right to

arrange Employee to take his annual leave entitled in previous year. Employee is also

allowed to carry forward his leave balance by the end of the year while is subjected to

the maximum number of days as stated below.

Yearly Leave Entitlement Max. Leave Days To Be Carried Forward

11to 18 days 5 days

19 days or above 7 days

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Any annual Leave carried forward should be taken on or before March 31 of the

following year and no encashment is allowed. All untaken leave (exceed legal

entitlement) will be forfeited automatically without compensation.

For Employee who was confirmed promotion, he is eligible to receive the annual leave

entitlement of the new grade from the date of his promotion.

For Employee who has transferred from other station, he is eligible to receive the

annual leave entitlement as above from the date of his transfer.

Completed leave application must be submitted to Immediate Supervisor / Head of

Department for approval and forwarded to the Human Resources Department for

records. One month advance notice is required if Employee wishes to take a

consecutive leave for one week or above. Approval is subject to the consideration that

normal operation of the department is being ensured.

It is the Employee’s responsibility to notify the Human Resources Department of any

subsequent changes of leave schedule. Any leave taken exceeds the leave

entitlement of an Employee will be counted as no pay leave.

If an Employee has tendered his resignation, any unused annual leave balance will be

paid with his final payment. Employee is not allowed to take annual leave during the

notice period. All leave application submitted will be cancelled automatically upon the

submission of resignation. (amendment on 1st January 2014)

5.1.3. Sick Leave

If Employee is unable to report duty due to sickness or injury, he shall notify his

immediate supervisor / Head of Department 30 minutes before his normal working

hours.

Employee will be granted sick leave in accordance with the Employment Ordinance of

HKSAR up to 120 days and he will receive 4/5 salary paid for a sick leave period not

less than 4 days. On top of these 120 days, the Company would grant 12 full paid

sick leave days (8 days for outpatient and 4 days for inpatient visits) in one calendar

year upon completion of probation period. Employee who has not completed the

whole calendar year will be have pro-rata basis sick leave days.

Employee who takes any sick leave during his probation period will be counted as no

pay leave. If Employee takes more than 12 days of sick leave within a year, the

excess sick leave will be calculated in accordance with the Employment Ordinance of

HKSAR, otherwise as no pay leave.

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Completed leave application together with sick leave certificate issued by a registered

medical practitioner must be submitted to the immediate supervisor / Head of

Department and Human Resources Department for approval via HR e-Portal.The

original sick leave certificate should be forwarded to the Human Resources

Department for records the day after his return to duty.

Employee who falls ill during the rest day and / or vacation leave period will not be

allowed to claim for replacement of rest day / annual leave even if he obtained sick

leave certificate. (Amendments on 1st January 2014)

5.1.4. Marriage Leave

Employee who is confirmed probation may be granted marriage leave up to 3 working

days. Marriage leave must be taken within 2 months before or after the date of

registration of marriage.

Completed application together with copy of marriage certificate must be submitted to

his immediate supervisor / Head of Department for approval and forwarded to the

Human Resources Department for records. Application will not be accepted for

Employee who has tendered his resignation.

5.1.5. Compassionate Leave

Employee who is confirmed probation may be granted compassionate leave up to 2

working days in case of death of a family member. Leaves can be taken separately

within 2 months after the death of family member. A “family member” is defined as

parents, child, spouse, sibling, grandparents or parents-in-law. Completed

application must be submitted to his immediate supervisor / Head of Department for

approval together with supporting documents and forwarded to the Human Resources

Department for records.

5.1.6. Maternity Leave

Female Employee who continuously worked for 40 weeks in the Company will be

granted 4/5 paid maternity leave in accordance with the Employment Ordinance of

HKSAR. Maternity leave shall be a continuous period of 10 weeks from the date of

commencement of the leave. With the agreement of the Company, a pregnant

Employee may decide on the date of commencement of her 10 weeks maternity leave,

provided that such date is within a period of not less than two weeks before, and not

more than four weeks before, the expected date of confinement.

Employee is obliged to inform her immediate supervisor / Head of Department and the

Human Resources Department of her pregnancy as soon as possible. Completed

application should be made at least one month before the expected date of

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confinement and should be supported by a medical certificate issued by a registered

medical practitioner certifying the pregnancy and specifying the expected date of

confinement to her immediate supervisor / Head of Department for approval and

forwarded to the Human Resources Department for records.

5.1.7. Child-care Leave

Employee who is confirmed probation may be granted child-care leave with full pay of

up to 3 working days in any calendar year. Prior approval must be obtained from his

immediate supervisor / Head of Department. He shall notify his immediate

supervisor / Head of Department 30 minutes before his normal working hours.

Completed application must be submitted to his immediate supervisor / Head of

Department for approval together with sick leave certificate or medical attendance slip

of his child issued by a registered medical practitioner and forwarded to the Human

Resources Department for record. Child care leave is only applicable to child up to the

age of 15-year-old and is granted to Employee who may require to take care his child

who is on sick. Application will not be accepted for Employee who has tendered his

resignation. (amendment on 1st January 2014)

5.1.8. Examination Leave

Employee who has confirmed his probation may be granted examination leave if it

falls during the working day at a maximum of 5 days in any calendar year.

Examination Leave is only applicable to the following categories of courses:

- Academic programmes organized by a recognized universities or tertiary

educational institutions in Hong Kong

- Professional / Certification programmes (e.g. ACCA)

Completed application together with supporting documents must be submitted to the

immediate supervisor / Head of Department for approval and forwarded to the Human

Resources Department for records. Application will not be accepted for Employee

who has tendered his resignation.

5.1.9. Jury Service Leave

Employee will receive leave with pay if he was appointed as the juror to attend court

hearing during normal working hours under the Jury Ordinance of HKSAR.

Completed application together with supporting documents must be submitted to the

immediate supervisor / Head of Department for approval and forwarded to the Human

Resources Department for records.

The minimum unit of all leaves mentioned above can be taken at any one time is half day.

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5.2. INSURANCE AND MANDATORY PROVIDENT FUND “MPF”

5.2.1. Employees’ Compensation Insurance

In compliance with Employees’ Compensation Ordinance of HKSAR, the Company

has, at its expense, covers insurance for all Employees automatically upon their

commencement of work.

In the cases of death, injury or disablement by accident arising out of and in the

course of employment, Employee is protected under the Employees’ Compensation

Ordinance of HKSAR (Chapter 282). Employee must notify the Human Resources

Department directly or through his immediate supervisors / Head of Department

immediately for any injury arises from a work accident. Failure to give prompt notice

may delay the claim of compensation.

5.2.2. Group Medical Scheme

Employee who is confirmed probation shall be entitled to Group Medical Scheme

provides by the Company. The scheme includes out-patient and hospitalization

benefits. This coverage is extended to the spouse of married Employee and his

dependents. Details of the medical benefits will be provided per year in case there are

any changes.

5.2.3. Group Dental Scheme

Employee who is confirmed probation is eligible for dental benefits. Details of the

dental scheme will be provided per year in case there are any changes.

5.2.4. Group Life Insurance

Employee who is confirmed probation is entitled to Group Life Insurance. Details of

the Group Life Insurance plan will be provided in case there are any changes.

5.2.5. Business Travel Insurance

The Company will cover travel insurance for Employee who was requested for

business trips frequently. Please refer to the Business Travel Insurance in HR

e-Portal for details.

5.2.6. MPF

Employee who has been employed for 60 days or more under an employment

contract shall be entitled to join the MPF Scheme unless he is exempted.

If the monthly relevant income of an Employee exceeds the legal requirement (i.e.

HK$25,000), Employee will be eligible for the Employer’s voluntary contribution

provided. Details of the Mandatory Provident Fund will be provided in case there are

any changes.

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The Company may make use of MPF benefits derived from the Company’s

contribution to offset “Severance Payment” or “Long Service Payment” to which the

Employee is entitled.

When Employee leaves the service with the Company, he is eligible to receive the

Employer’s voluntary contribution according to the following vesting scale:

Completed Year of Service % of Accrued Benefits

Less than 2 years NIL Completed 2 years but less than 3 20% Completed 3 years but less than 4 30% Completed 4 years but less than 5 40% Completed 5 years but less than 6 50% Completed 6 years but less than 7 60% Completed 7 years but less than 8 70% Completed 8 years but less than 9 80% Completed 9 years but less than 10 90% Completed 10 years or more 100%

5.3. OTHER BENEFITS

5.3.1. Company Properties

The Company may from time to time provides Employee companies properties

including notebook and mobile phone, etc. Employee must take good care of the

company assets and is obliged to compensate for any loss or damage and must

return upon his termination of employment

The company will sponsor call charges of mobile phone and blackberry for Employee

according to his business needs. Call charges for local as well as overseas will be

reimbursed subjected to the approval of his Head of Department. Completed

application must be submitted to through the relevant system and Finance

Department for further process. Employee shall use the mobile phone for business

only and he is required to manage the utilization prudently.

5.3.2. Business Travel

Request for business travel must be submitted to the Head of Department for

approval. All efforts must be made to assess the expected achievements or benefits of

the travel. Travel will be on economy class within Asia Pacific. Where possible,

air-tickets should be secured by the most effective means. It is the accountability of

the management and responsibility of the Employee to ensure that costs pertaining to

travel and entertainment are managed and contained. All claims in connection to the

business travel will be reimbursable on the production of receipts and the limit based

on the travel guidelines from Asia Pacific. Management reserves the right to query

and/or refuse to pay any claims that it deems to be excessive or outside of the

company policy.

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6. TERMINATION OF EMPLOYMENT

6.1. Resignation & Termination

Unless otherwise stated in the letter of employment, an Employee’s employment

maybe terminated either by the Employee or the Company by giving other party a

written notice or payment in lieu of notice of the prescribed period as listed below.

Under Probation

- At least 1 day notice is required by either party during the first month of probation.

- 7 days’ notice or salary in lieu of such notice is required by either party after first

month of his probation period unless it is covered by separated agreement

After Probation

- Either party is required to give at least one-month notice or salary in lieu of such

notice.

- Such notice will be based on the terms that are specified in the letter of

employment.

Employee shall deliver all keys, staff card, stationeries, uniform, books, documents,

employee handbook, correspondence, notes, materials and other properties relating

to the business, finance, or affairs to the Company upon termination of employment.

6.2. Summary Dismissal

The Company believes in counseling and giving warnings for misbehaviors and

misconduct. However, it may result in summary dismissal without prior notice and

compensation if Employee is in offence of any of the disciplines listed below including

but not limited to:

- Willfully disobey any lawful and reasonable order by superiors

- Refusal to carry out normal duties or negligence of duties

- Conviction of any criminal offence

- Give falsified personnel or any other records, including false testimonial to the

Company

- Possess firearm or drugs

- Steal and abuse of any Company properties

- Perform sub-standard duty including habitual negligence, etc

- Absent from work without permission, notification or proper explanation

- Make a false, vicious or malicious statement on the Company, its services or its

employees

- Break the regulation of commercial secrecy

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6.3. Retirement

Employee shall retire from the Company effective on the day immediately when he

reaches 65th birthday.

.

The Company, at its absolute discretion, may continue to re-employ the Employee at

the retirement age. At least one month's written notice in advance shall be given to

the Employee due for retirement notifying him of the date of his retirement and the

accrued benefits to which he will be entitled at such time. (new addition on 1st January

2014)

6.4. Final Payment

Final payment shall be released and credited into the Employee’s designated bank

account or by cheque payment when:

- All Company properties including uniforms, staff card, keys, instruction manuals,

work tools, confidential documents, etc. are returned to the Company.

- All outstanding payments are settled.

7. MANAGEMENT PREROGATIVE

This handbook illustrates the Company’s benefits, rules and regulations in effect at

the time of publication. The content of this Employee Handbook will be amended or

updated from time to time, to make it in line with the change in legal requirements and

the Company’s development. Employee will be notified when such alterations and

amendments are made. Employee is required to comply with the Company’s rules

and regulations. Any violation of the rules and regulations shall subject to disciplinary

action taken by the Company. Should there be any query, please contact the Human

Resources Department.

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8. ACKNOWLEDGEMENT

I hereby acknowledge receipt of the Employee Handbook of CEVA Logistics (Hong Kong) Limited (effective January 1, 2014) and I agree to accept and comply with all rules and regulations contained. I do not take any copy and divulge any information contained without prior permission of the Company. I understand that employee should observe all terms and conditions of this Employee Handbook. The Employee Handbook is available in the HR e-Portal as well as the individual department. Enquiries could be made to Human Resources Department at any time. If I have not expressed any concerns within the first month of the employment, it would be considered that I agree to comply and consent with the contents therein. I also understand that employee who fails to comply with rules and regulations stipulated in the Handbook, is subject to disciplinary action, including termination of employment.

Name

HKID Card / Passport No.

Position

Department

Signature

Date