hr policy guidelines 2009

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HHHUUUMMMAAANNN RRREEESSSOOOUUURRRCCCEEESSS PPPOOOLLLIIICCCYYY GGGUUUIIIDDDEEELLLIIINNNEEESSS Date: January 2009 Revision No.: 0 Issue No.: 1

This document provides guidance and is exclusively for use by the staff members of Bank Alfalah Limited. Any act of divulgence shall be viewed very seriously and shall warrant disciplinary / penal action.

CHAPTER 1. HUMAN RESOURCE STRATEGY

1.1. Vision

To be the premier organization operating locally & internationally that provides the complete range of financial services to all segments under one roof.

1.2. Mission

To develop & deliver the most innovative products, manage customer experience, deliver quality services that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.

1.3. Corporate Culture & Core Values

Corporate Culture Bank Alfalah aims to inculcate a nurturing and invigorating corporate culture based on providing a safe, healthy and supportive environment where staff members are valued, respected and able to realize their full potential. This culture is based on the following core values: Core Values

• Humility • Extreme Customer Care/Focus • Courtesy and Respect • Honesty, Integrity and Trust • Commitment and Hard work • Creativity, Innovation and Quality • Justice and Fairness to all Stake-Holders • Open, Honest and Direct Communication • Provider of growth and equal opportunity

1.4. Introduction & Background of HR Strategy

Introduction Strategic human resource management at Bank Alfalah is linked to the overall strategy of the institution. By playing the role of a strategic partner and a change agent, Human Resource Division of the Bank aims to provide all units with an effective workforce, ensure that all employees have ample opportunities for learning and development, and to act as an advisor to the field management, helping them in keeping all employees happy, motivated and productive. Objective The objective of this strategy paper is to document the strategic direction of HR Division, outlining steps that need to be taken to ensure that the institutional objectives are achieved. From this standpoint the HR strategy is directly linked with the organization’s overall objectives.




1.5. Mission Statement of Human Resource Division

HR Division at Bank Alfalah aims to align its strategy and action plans with the organizational strategy, acting as a strategic partner to field and HO units in order to:

• Manage change and conflict • Develop commitment to shared values • Constantly and consistently align structures, skills, staff, culture and systems to shared values

1.6. Elements of the HR Strategy 1.6.1. Recruitment

We aim to induct the right people, with the right skills, in the right place at the right time. This aspect of HR job is crucial for attainment of organizational objectives. This will be achieved in three ways: By inducting substantial numbers of fresh graduates every year under the Management Trainee Officers, Operations Officers, Cash Officers and Sales Officers batches. By systematically inducting experienced bankers as and when needed, through a centralized recruitment system, using the Bank’s Recruitment Portal, advertising in papers and using head hunters for senior positions. By implementing appropriate selection tests and interviews at junior levels and panel interviews at senior levels.

1.6.2. Training & Development Training and development of staff is considered to be of crucial importance for Bank Alfalah’s long term sustainable growth. In order to ensure that the skill levels of all BAL team members are at optimal levels, detailed plans are prepared to meet training needs the entire staff of the Bank. Much of the training is to be conducted in-house, while the rest (especially for senior levels), is to be outsourced, using high quality local and international training providers. Training within the Bank is implemented through the two Training & Development Centres (TDCs) at Karachi and Lahore. Content wise, the training effort is channelized through the following main groups: Technical training in fields of Banking Operations, Credit, Trade Finance, Consumer Finance. Training in Sales and Customer Service skills Managerial skills Leadership skills Personal effectiveness skills Current topics like Anti Money Laundering Measures, KYC, Basle II etc.

1.6.3. Compensation and Benefits We need to ensure that our salary package and benefits are in line with the market. Towards this end, every year the Bank participates in a recognized benchmarking survey.

1.6.4. Performance Management System A performance based, just and fair Performance Management System is in place, under which supervising officers evaluate performance of their people based on pre-agreed targets, covering multi-pronged performance criteria.




1.6.5. Retention & Motivation of Employees The biggest challenge we face in the coming years is retaining top talent within the organization. Efforts in this area will focus on the following HR actions:

• Systematic job rotation of all employees • Career counseling • Succession planning • Systematic Reward and Recognition schemes. • Establishing an organization-wide talent pool and grooming its members for future

managerial assignments • Offering senior level positions and overseas posting to existing employees through

internal job postings, under merit based selection criteria

• Establishing a variety of internal communication channels i.e.: o Newsletter o Employee Portal o Monthly staff meetings o Notice boards at central employee locations at all offices (like lunch room or main

back-office circulation area etc.) o Annual ‘Voice of Employee’ survey

1.6.6. A Nurturing Corporate Culture

Bank Alfalah adheres to a number of core values, which form the basis of a nurturing and invigorating corporate culture. We need to ensure that all BAL policies and procedures conform to the said culture.

1.6.7. Organized Employee Relations Programme A proper mechanism has been established at HRD whereby a number of HR Relationship Managers have been assigned the task of providing HR related service and support to an optimum number of employees at the Bank’s branches/units.

1.6.8. Compliance with Regulatory Requirements HRD ensures that, at all times, our policies and procedures are in line with Labour Laws, Taxation related rules and other governmental regulations.




CHAPTER 2. ORGANIZATIONAL STRUCTURE OF BANK ALFALAH LIMITED

2.1. Organizational Structure of Bank Alfalah Limited

The Management structure is headed by the Chief Executive Officer. In the absence of CEO, the Co-Chairman of Executive Committees officiates as Acting CEO and the Chairman of Central Management Committee of the Bank. The Chief Operating Officer will directly report to the Chief Executive Officer of the Bank. In the absence of CEO and Co-Chairman of Executive Committees, the Chief Operating Officer will be acting as Chairman of CMC and Central Credit Committee. Divisions at Head Office are supervised by Group Heads/ General Managers/ Divisional Heads. The branch network of Conventional & Islamic Banking is headed by Group Head Branch Banking & SME and Group Head Islamic Banking. The following Executives will directly report to the office of CEO, with the exception of Group Head - Audit & Inspection Division:

Co-Chairman Executive Committees Group Head Credit & Collections Group Head Corporate & Investment Banking Group Head Islamic Banking Group Head Treasury & Financial Institutions Chief Financial Officer Chief Compliance Officer General Manager Legal Affairs and Company Secretary General Manager Risk Management Executive-in-Charge, Establishment & Administration

The following Executives are reporting to Co-Chairman Executive Committees: Group Head Priority Banking and Wealth Management

Group Head Learning

General Manager International Business

General Manager Human Resources and Quality Assurance

General Manager Group Marketing

General Manager Strategic Planning

The following Executives are reporting to Chief Operating Officer:

Group Head Branch Banking & SME

Group Head Consumer Finance

Group Head Operations

Group Head Commercial Banking

General Manager Information Technology

The Management has also formed various committees to run bank’s affairs effectively such as ;

Central Management Committee Central Credit Committee Strategic Planning Committee Network Expansion Committee

Asset & Liability Management Committee Central Finance, Expenditure & Budget Review Committee Information Technology Committee Human Resources Management Committee etc.




The current organizational chart of the Bank stating all Groups/ Divisions with their reporting lines and scope of responsibilities is as follows:-

2.2. Groups/ Divisions Executive Position Scope of Responsibilities

1 CEO and Director

Chief Executive Officer and Board Member

2 Co-Chairman Executive Committees Priority Banking and Wealth Management Learning International Business Human Resources and Quality Assurance Group Marketing Strategic Planning

3 Chief Operating Officer Branch Banking & SME

Consumer Finance Operations Commercial Banking Information Technology

4 Chief Compliance Officer SBP Compliance

Internal/External Audit Compliance Coordinator – SBP Inspection

5 Chief Financial Officer

Financial Control and Budgeting Central Payment and Expenditure Control Taxation and Excise Monitoring and Automation Treasury Settlement Nostro & HO Reconciliations Establishment & Administration

6 Executive-in-Charge – Estab & Admin Division

Establishment & Administration Procurement of Hardware Engineering, Maintenance & Security Printing & Stationery

7 Group Head – Audit & Inspection

Audit & Inspection reporting to the Board

through the Board’s Audit Committee Fraud & Investigation Unit

8

Group Head – Branch Banking & SME

Branch Network of Conventional Banking Central/Regional/Area Offices Rural Finance SME Branch Expansion

9 Group Head – Commercial Banking

Commercial Banking Management of Commercial Credits Commercial Deposits

10 Group Head – Consumer Finance

Cards Mortgages Autos Personal Loans




11 Group Head – Corporate & Investment Banking Corporate Banking Investment Banking

12 Group Head – Credit & Collections

Credit Equity Management Portfolio Credit Monitoring

13 General Manager – Credit Monitoring

Monitoring of entire Credit Portfolio of the Bank CIB SBP Foreign Exchange Returns SBP Financial Returns

14 Group Head – Islamic Banking

Central/Regional/Area Offices Islamic Banking Branch Network of Islamic Banking

15 Group Head – Operations

Export Refinance Central Test Keys / SWIFT. Centralized Account Opening Centralized Trade Finance Call Centre Credit Administration Department Temenos Bank Transformation Project Centralized Clearing Department

16 Group Head – Priority Banking & Wealth

Management Priority Banking Wealth Management

17 Group Head – Learning Learning

18 Group Head – Treasury & Financial Institution

International Banking Treasury Rupee Traveller Cheques MoneyGram

19 General Manager – International Business

UAE Representative Office Afghanistan Operations Bangladesh Operations WBU Bahrain Operations

20 General Manager – Legal Affairs Division

Company Secretary Legal Department

21 General Manager HR & QA

Human Resources Quality Assurance Internal Communication

22 General Manager – IT Division

Procurement of Software Entire Operations of Banking Package Electronic Mail & Web Management

22 General Manager – Risk Management Division Treasury Risk

Credit Risk Operational Risk I.T. Security & MIS




The Organogram will be subject to periodic (at least annual) review and updation by the HRD so as to reflect any changes therein. However, the HRD will maintain an updated Organogram at all times.




CHAPTER 3. OBJECTIVES, CONTENTS & COMPLIANCE

3.1. Objectives of HR Policy Guidelines

The HR Policy Guidelines have been prepared with the objective of providing information and guidance to staff members and management of branches and other working units of the Bank. These guidelines should remain available with Branch Managers (in the case of branches), Unit/ Divisional Heads, Area Managers, Regional Managers, General Managers and Group Heads at Head Office.

3.2. Compliance

Management of branches and other units of the Bank must ensure compliance to the provisions contained in this HR Policy Guidelines in letter and in spirit. HRD will monitor compliance of these policy provisions.

3.3. Scope & Application

These Service Rules apply to all employees of the Bank and supersede all previous rules and regulations issued from time to time. Rules pertaining to contractual staff are documented in the service contracts issued to such employees. All employees of the Bank will conform to and abide by all the rules and regulations of the Bank including these service rules, with such amendments as may be effected from time to time.

3.4. Amendments to Service Rules

The contents of this HR Policy Guidelines may be amended from time to time to suit the requirements of the Bank. The authority to amend these rules rests with the Central Management Committee (CMC), which will be subsequently approved by the Board. Amendments in this HR Policy Guidelines will be advised to all units by HRD.




CHAPTER 4. BASIC WORK PLACE RULES General norms of office behavior that all employees of Bank Alfalah need to abide with are briefly described below.

4.1. Office Discipline & Decorum 3.1.

All staff members working in any Unit/Branch will :-

4.1.1 Observe, comply with and obey all orders and directives which may, from time to time, be given by any person or persons under whose jurisdiction, supervision or control they may be placed.

4.1.2 Conduct themselves in orderly and civilized manner so as to maintain a pleasant and conducive working environment, and not to disturb their colleagues working in close proximity.

4.1.3 To use low tone of voice and not speak loudly to colleagues across desks.

4.2. Dress Code

Dress code for all male employees of the Bank is suit and necktie. Female employees should also dress elegantly (keeping in mind our cultural norms) without being ostentatious. Employee may wear national dress on Fridays. Similarly, staff members of units not dealing directly with customers may attend office without jackets and neckties (business casual dress) on Saturdays. Non clerical staff i.e. messengers, security guards, office boys, machine operators, maintenance staff will always be in uniform.

4.3. Courtesy and Manners

Employees of Bank Alfalah will maintain utmost courtesy and exemplary manners when interacting with clients or with each other. Any violations of this code should be brought to the attention of supervising officials as well as the HRD for their information, record and remedial or disciplinary action.

4.4. Smoking and Chewing ‘Paan’ (beetle leaves) at the Office

Smoking and chewing of ‘Paan’ is prohibited in all offices of the Bank. Customers may politely be informed of this regulation, introduced in the interest of health and welfare of all concerned as well as keeping the premises neat and clean and pollution-free. Through these rules Bank Alfalah demonstrates to the outside world that as an institution it cares for the people and the environment.

4.5. Attendance and Punctuality

Punctuality is one of the basic rules of office discipline, which needs to be meticulously observed by all employees of the Bank. Office timings of the Bank are as follows. These timings may be changed by the Bank’s management to comply with governmental regulations/State Bank of Pakistan. Monday to Thursday: 9:00 a.m. to 5:00 p.m. (with one hour lunch/prayer break) Friday: 9:00 a.m. to 5:00 p.m. (with two hours lunch/prayer break) Saturday: 9:00 a.m. to 1:30 p.m. (without break) Timings During Ramadan :- Monday to Thursday & Saturday: 8:30 a.m. to 1:45 p.m. (without break) Friday: 8:30 a.m. to 12:30 p.m. (without break) (Timings in some areas in Pakistan and overseas branches may vary to comply with local laws) (Certain staff members may be required to observe different timings to suit the needs of the Bank)




4.5.1. Branch Managers and Heads of HO Divisions and Departments must ensure that their staff observes these timings.

4.5.2. Employees, who are going to be late for any reason, should inform their Branch Manager as early as possible. Employees at Area Offices/ Regional Office should inform the respective Area Managers/ Regional Managers and those at Head Office should inform the respective Departmental/ Divisional Heads, General Managers/ Group Heads.

4.5.3. Management may, at its discretion, excuse late arrivals in case of natural disasters or extraordinary circumstances.

4.5.4. All staff will sign the attendance register upon their arrival in the Bank, mentioning the time of arrival.

4.6 Alternate Saturday Off: All Branches/Offices, after obtaining approval from concerned Regional Managers/ General Managers/

Group Heads , may arrange Alternate Saturday (weekend) Off facility for their staff, provided that : 4.6.1 Service to external / internal customers does not suffer. 4.6.2 Security of the Bank’s assets is not compromised.

4.6.3 Concerned branch / office clearly lays down the “Alternate Saturday Off” roster indicating names of staff members acting a back ups to those.

4.7. Late Sitting It is recommended that all employees of the Bank should endeavor to leave the office maximum

by 06:00 p.m. but in no case later than 06:00 p.m. on normal business days, and by 2:00 PM on Saturdays (weekends). However, where regular late sitting becomes necessary for business duties are rotated amongst various staff members rather than over-burdening a few individuals. It is recommended that Late sitting registers should be placed in all offices to record incidences of late sitting. Its contents should also be perused by management of concerned Branch/Group/ Region/Area/Unit on a regular basis to ensure proper remedial measures where necessary.

4.8. Code of Ethics All staff members must sign the “Code of Ethics” document which contains details of norms of office

behavior.




CHAPTER 5. RECRUITMENT, SELECTION AND PLACEMENT 5.1. Initiation of Staff Hiring

All units/Branches of the Bank should systematically forecast their future staffing requirements for timely induction of competent high quality staff. Requirement of additional staff/ replacement should be intimated to HRD through Divisional Heads’/ Regional Managers’/ General Managers’/ Group Heads’ offices. All open positions are first posted internally by HRD at the request of branch/ dept. concerned on the Employee Portal for a minimum period of seven days. Incase vacant positions can not be filled in through internal resources then such vacancies will be filled in through external hiring as per Bank’s recruitment policy. Staff hiring may be done in batches, in small groups or individually. The management of the Bank may, at its discretion, employ expatriates. The Bank complies with the relevant provisions of the Emigration Ordinance/Law when hiring such employees.

5.2. Hiring of Batches

When a whole batch of fresh officers is hired, they are first trained at the Bank’s Training & Development Centre (TDC) and then posted to Branches/HO Divisions based on requirement. These batches will be hired under the following categories;

5.2.1. Management Trainee Officers (MTOs) 5.2.2. Operations Officers (OOs) 5.2.3. Cash Officers (COs) 5.2.4. SME Officers/ Credit Officers/ Lease Finance Officers (LFOs)/ Rural Finance Officers (RFOs) 5.2.5. Any other category of staff required by the Bank

Before initiating hiring of batch officers, HRD informs all units of approximate timings of such hiring and enquires about their city-wise requirements before the hiring process starts.

5.3. Hiring in Small Groups

Hiring in small groups may be done according to planned phases of expansion of existing branches/units, or upon establishment of new branches/units, or for creating/replenishing staff pools maintained under the supervision of Area Managers/ Regional Managers/ Group Heads in major banking centres.

5.4. Individual Hiring

Individual hiring is to be done from time to time when a branch or unit has a need to induct additional staff, or for replacement of outgoing staff. The Manager of the Branch/ Department where recruitment is to be made will first fill out the ‘Job Requisition Form’ and send to HRD. After minimum of 7 days of posting on portal, if suitable replacement within the Bank is not available, then external recruitment is allowed subject to HRE Factor ( for BB & SME Group) and other requirements being met and a genuine business need is established. Hiring Managers (in initial selection interviews) must not commit any salary range or other perks to perspective external candidates in their initial interviews. Both Salary and Range will be first agreed by HRD and then conveyed to the candidate after clearance by Interview Panel.




5.5. Minimum Entry Requirements 5.5.1. Minimum entry requirement for employment in Bank Alfalah Ltd. in officer’s cadre is graduation

from a recognized university of home country or abroad. However, condition of graduation may be waived by CEO to suit the requirements of the Bank, especially for cashiers, sales/ verification/ recovery staff of various Products/ Call Centre, However, such employees will be on Contractual Employment. Their services will be regularized after clearance of test and completion of graduation.

5.5.2.

Persons deputed by “External Service Providers” must possess matriculation or higher degree. However, condition of matriculation may be waived by HRD to suit the requirements of the Bank.

5.6. Recruitment of Close Relatives

BAL does not prohibit employment of close or blood relatives of current employees, provided that they meet required eligibility criteria, no conflict of interest is likely to arise and prior approval is obtained from GM HRD. Candidate once appointed should not be placed in the same Branch/Unit in which his/ her close/blood relative is already working. All candidates, at the time of interview are required to disclose their relationship (if any) with the existing employees in their application form.

5.7. Selection Responsibility and Authority 5.7.1 The schedule given below summarizes the assignment of hiring authority and responsibility :-

Regular/Contractual Dept. Head/

BM AM/ RM HRD

GM/ GH/

Heads GM HRD

Interview

Panel/ HRD

CEO

Officer I – III R R Test R -- A -- Officer IV – VI R R -- R R R A Officers VII – VIII -- -- -- R R R A Officers IX -- -- -- -- -- -- A Outsourced Services R R R A Oversee -- -- R Recommended A Approved 5.7.2 All appointments of Branch managers, Divisional Heads, Area/ Regional Managers, Range VII

and above require subsequent ratification from Board’s Advisory Committee.

5.8. Selection Test All regular and contractual candidates for Range I, II & III must undergo a selection test arranged by HRD.

Those obtaining 50 % or above points (allowing for two grace marks) will go to the next step in the hiring process. However, condition of written test can be waived for contractual employment, especially for Product Departments/ Cash Officers/ Call Centre staff etc. The employees of these departments will however have to appear for the test before their services are regularized.

5.9. Selection Interview Selection interviews should be conducted and evidenced by duly filled interview sheets, as follows :

5.9.1 For Branch Staff : By Branch Manager & Area Manager/ Regional Managers/ Panel Members approved by HRD

5.9.2 For Branch Manager & Area Office Staff: By concerned Area Manager/ Regional Manager/ Group Head/ Panel Members approved by HRD. *BM/ Team Leaders should be interviewed by CEO/ Co-Chairman Executive Committees (any one)




5.9.3 For Product Departments’ Staff: By concerned Manager & Product Head/ Group Head/ Panel Members approved by HRD

5.9.4 For Head Office Division Staff: By concerned Manager & General Manager/ Group Head/ Panel Members approved by HRD.

5.10. Panel Interviews: All candidates will be interviewed by panels of senior officers at Karachi and Lahore. Panel members will be

approved by the CEO.

5.11 Issue of Offer/Appointment Letters Offer / Appointment letters will be issued by HRD to be jointly signed by authorized signatories i.e.

Recruitment Manager/ DGM/ GM HR as the case may be.

5.12. Verification of Antecedents

HR will arrange verification of references provided by the officers and their highest educational degree/certificate from the concerned university/board. Feedback from his/her last employer (especially incase of Financial Institutions) will also be obtained with regards to his/her honesty, integrity and performance before confirmation of services.

5.13 Probationary Period & Confirmation of Services

5.13.1.

As a standard practice, service of new entrants to Bank Alfalah Ltd. is to be subject to a probationary period. Length of this period is to be determined as follows :

For those with less than five years of prior relevant experience : Six Months For those with prior relevant experience of 5 years and above :

Three Months

Confirmation letters will be issued by HRD on recommendation of concerned Branch Managers and AM/ GM/ RM/ GH. For Product Department Staff, concerned Product Department Head may recommend confirmation cases.

5.14. Renewal of Contract

5.14.1.

Officers hired on retainership contract will be relieved from the services of the Bank unless the contract is renewed.

5.14.2. Before the end of the contract period, the Head of concerned Branch/Unit should fill a “Contract Renewal Form” and forward the same to HRD through concerned Group Head/ GM/ Divisional Head.

In case of renewal of contract for further one year concerned officer will be eligible for salary increase (if recommended by the concerned GH/ GM/ Div Head) based on his/her performance rating. Renewal of Contract for above 60 years of age staff will be approved by CEO.

5.15 Placement of New Entrants

As far as possible, attempt is to be made to select candidates belonging to the area where they need to be posted, in order to minimize disturbance and dislocation to newly recruited employees. However, in terms of the Bank’s service contract, services of an employee are transferable anywhere in the country or overseas branches to suit the requirements of the Bank.




5.16 Minimum Service Agreement for three years from new employees (who have less than one year’s prior banking experience)

All new joiners of the following categories are required to sign the Bond for Minimum Service Agreement of three years service, as elaborated below:

Category Minimum Service

Surety Bond amount *

5.16.1 MTO Batch Officer Three years Rs. 300,000/- 5.16.2 Cash/ Operations/ SME/ Agri Batch Officers/ all other batches Three years Rs. 200,000/- 5.16.3 All new employees with less than one year’s banking experience Three years Rs. 100,000/- *1/3rd of the amount of surety will be reduced for every completed year of service

5.17 Re-Hiring Policy

Those staff who had worked with BAL can be considered for re-employment subject to following: • He/ She was not involved in any disciplinary action • Performance Rating was never below “Good” • No adverse comments/ records available on his/ her personal file • Salary will be fixed based on current assignment and responsibility • Salary of re-hired person should be in line with other officers of his/ her seniority level • Verification of antecedents from previous employer • After clearance of Panel interview and approval from GM HRD




CHAPTER 6. JOB DESCRIPTION / JOB ROTATION

6.1. Job Description

6.1.1. All new employees of the Bank should initiate preparation of their Job Description and should get it finalized with the help of their immediate supervisors within 30 days of joining at their place of posting. The Job Description duly signed and agreed by both the employee, his/her immediate supervisor and manager should be sent to HRD for record. Concerned Branch Managers/ Area Managers ( and in case of Head Office Staff, concerned Departmental Heads will be responsible for compliance of this requirement

6.1.2. The purpose of the Job Description is to clearly define the job responsibilities of each employee and to ensure that the employees are made aware of and understand what is expected from them. The standardized Job Description Form is made available to all employees at the time of joining.

6.2. Components of Job Description Form

BAL’s Job Description Form has a standardized format, which comprises of employee’s brief service particulars like name, Job Title, Department/ Branch’s Name, salary range, basic and gross. It also contains the name of the reporting officer, with his job title and salary range.

BAL’s JD Form include what employee actually does, how he or she does it, and what the job’s working conditions are. It contains sections that cover the following information about the job:

• Purpose of Job (Summary)

• Primary duties and responsibilities

• Secondary/ Additional Responsibilities

• Performance Standard

• How many staff reporting to employee

• Working relationships/ Contacts within and outside the Bank

• Job Specification which shows the desired human traits and experience for the job (to be completed by Reporting Officer)

Job Description form has to be signed by the Job Holder, immediate Reporting Officer and Branch Manager/ Departmental Head at HO.

6.3. Job Rotation

6.3.1. Periodic rotation of staff between various assignments is used by Bank Alfalah as a means of broadening areas of expertise of concerned staff. This is also done to ensure smooth transition from one job to another in case a staff member leaves the job, or is transferred to another job or location.

6.3.2. Staff members posted at branches should be rotated periodically according to the following guidelines:

• For clerical, supervisory and officer level positions, rotation may be done upon completing around three years in one assignment, approved by CMC/ Board.

• For Departmental Heads or Managers the maximum period in one assignment should not exceed five years.




CHAPTER 7. INDUCTION, TRAINING & DEVELOPMENT

7.1. In-Service Training

7.1.1. Training Need The objectives of training activities are to keep BAL employees abreast of latest professional knowledge and skills in all areas of banking, as well as to reinforce a passion for the highest quality of customer service at all levels. For this purpose a systematic approach for conducting TNA on scientific basis is being developed by a sub-committee of Learning Council comprising of members from TDC and HRD. The proposed TNA exercise will be launched as soon as it is fine-tuned and after taking all the stake-holders into confidence.

7.1.2. Annual Training Plan An Annual Training Plan shall be circulated on quarterly basis for both Training and Development Centres, keeping in view the requirements of various departments of the Bank currently identified through the annual appraisal form and feedback from Audit Division. After conducting the TNA, this training plan will be more reflective of actual training needs of our staff. The plan would list all workshops, courses & seminars to be offered during the quarter.

7.1.3. Minimum Training For All It is obligatory for each employee of the Bank to attend at least two days of training in a calendar year. Branches, Area Offices and Head Office Divisions/Departments are to send their nominations for training courses in advance (as prescribed by the concerned Training & Development Centre). Employees are encouraged to take initiative and get them nominated through their supervising officers for training courses relevant to their needs.

7.2. New Joiners’ Training

All newly inducted staff members are provided systematic training in groups at Bank’s Training & Development Centres at Karachi or Lahore, to make them well conversant with Bank’s operating procedures, rules, history and culture before they commence their job with the Bank. Furthermore, the purpose of this training programme is to emphasize on customer service, courtesy and manner, as well as a number of other unique focus areas. Training plan for new joiners

Category Total Duration 7.2.1. For Branch Officers Five days (Two days of orientation training., followed by three days

of technical training) 7.2.2. For Branch Dept. Heads Four days (Two days of orientation training, followed by two days of

technical training) 7.2.3. For Branch Managers Two-day orientation session 7.2.4. For Head Office Staff Two-day orientation session Programme Structure First and third Mondays of every month, training courses will be

organized in small batches. In some cases, training will be imparted through individual instruction and systematic and guided study of operational manuals (followed by quizzes).

Venue TDC Karachi (for branches in Southern Areas and Area Multan) TDC Lahore (for other Northern Areas)




Faculty Mostly in-house faculty, plus some field specialists. For Branch Managers’ orientation session, concerned Area Manager and one or two available Group Heads/ GMs will be invited for discussions/ presentations.

Course Contents Detailed contents are handed over to candidates upon their arrival at the TDC.

7.3. Batch Training Programme

As per the requirements, the Bank recruits batches of fresh graduates under various schemes through a competitive process and offers them comprehensive training. The batch trainees will be also required to go through on-job training by way of structured rotation programs at the end of every module.

7.4. External Training

In order to augment in-house training efforts, external training providers will be utilized on a periodic basis, by nominating Bank Alfalah’s employees to external courses. Alternatively, external training consultants may be invited to conduct training programs exclusively for BAL employees, whenever deemed necessary.

7.5. Branch Managers’ Mandatory Training

All Branch Managers are required to undergo one-month comprehensive training to equip themselves with upto date skills in areas of banking, management, customer service, personal effectiveness and IT etc. Such training is usually divided into four one-week modules in each quarter. Basic Plans and Time Schedule for Branch Managers’ Training Module

Total Duration Four weeks (broken in four one-week modules)

Participants Managers of all branches

Programme Structure Four one-week modules evenly spread over the year (one in each quarter). These modules will be run twice every quarter to cover the entire Branch Manager Population (including IBD Branches)

Venue TDC Karachi (for participants from Southern Areas and Area Multan)

Training for participants from Northern Areas will be conducted at some external location at Lahore due to inadequacy of space and other constraints at TDC Lahore Premises.

Faculty A Combination of in-house faculty, field specialists, senior BAL Executives and external Trainers.

7.6. Training Allowance for Training Faculty Members

In order to induce BAL employees to contribute in the important venture of Training and Development on core banking modules i.e. Operations, Trade Finance, Credits & other management/ soft skill areas depending on the nature of batch, existing staff selected for faculty position who are posted at field or Head Office, will be provided secondment allowance equivalent to 20% of their gross salaries per month, with the minimum of Rs. 10,000/- and maximum of Rs. 40,000/- p.m.

The period of secondment allowance should not exceed more than three years.

After the period of three years, if the said staff wants to continue in the same position, he/ she will not

be entitled for Title allowance.




For Short period placement of any officer to TDC as faculty member, the following Title Allowance may

be allowed: For Range IV – VI ------- Rs. 50,000/- per month For Range VII– VIII ------- Rs. 75,000/- per month




CHAPTER 8. INTERNSHIP POLICY

8.1. Internship Policy

Bank Alfalah offers internship positions to eligible students from well known educational institutions. Bank may offer internship positions to presentable and responsible looking candidates who fulfill the eligibility criteria. Only a small number of candidates may be offered internships at a given point in time, as per guidelines issued by HRD. Major objectives of offering these positions are:

8.1.1. To provide practical training and exposure to intending interns as a service to students, educational institutions and to the community as a whole.

8.1.2. To evaluate fresh interns as a potential source of future hiring.

8.2. General Provisions

8.2.1.

Duration of Internship Upto maximum of two months

8.2.2.

Eligibility Minimum educational qualification is graduation preferably in Commerce, Business, Economics or other discipline relevant to the concerned Division/ Unit of the Bank. Preference is given to those applicants who are supposed to do an internship as a part of their post-graduate studies, or as an eligibility condition for admission to post-graduate courses of study.

8.2.3. Monthly Stipend A stipend of Rs.3,000/- per month shall be paid to interns upon completion of the internship period. Non-graduate student if accepted for internship will not be eligible for any stipend.

8.2.4. Number of Interns Branches, Area Office and HO Divisions/ Groups (Unit wise) may recommend as per following guidelines: Unit Number of Interns HO Divisions/ Groups (Unit Wise) One or Two Branches/ Units with staff over 80 Upto four Branches/ Units with staff over 40 Upto three Branches/ Units with staff over 20 Upto two Branches/ Units with staff below 20 One

8.3. Approval Authority

To ensure the uniformity, internship processing is centralized at HRD Lahore and Karachi, as per following:

Area/Group Consumer Banking Group PB & Wealth Management Group BB & SME Group (North & Central) Islamic Banking Group (North & Central) CIB Group Comm. Banking Group (North & Central)

Approval Authority HRD Lahore




All HO Divisions based at Karachi Commercial Banking Group (South) BB & SME (South) Islamic Banking (South)

HRD Karachi

8.4. Selection Procedure

• Applications and CVs may be received at Branches and Area Office or HO – Divisions/ Groups or HRD. • The initiating office will conduct selection interviews to determine the confirmation of candidate with the

eligibility criteria stated above. At Head Office, AM/ RM/ GM/ GH (as the case may be) along with unit in-charge, where an intern is going to be posted, would interview and sign the ‘Internship Selection Interview Sheets’. For Branches, Internship sheets will be filled and signed by Branch Managers and Area Managers.

• Completed Interview Sheets along with CV, Photograph, copy of CNIC and copies of testimonials along

with letter of recommendation from the Education Institution of candidates should be forwarded to the respective HRD Office for approval and issuance of offer letters.

• HRD will issue “internship letter” and forward the same to concerned branches/ Units where they will be

accepted by interns under their signatures. Branches will forward original accepted internship letter to HRD and retain a copy for their record.

• On completion of internship, supervising officers will complete the Internship Evaluation Form, which will

be returned to HRD for issuance of internship certificates and for future reference. • Internship letter will be duly accepted and signed by intending intern and forwarded to HRD.

Confidentiality and Secrecy Bond should also be signed by intending intern and kept on Branch’s file.

8.5. Issuing of Internship Certificate

Internship Certificate is an official document and may only be issued by authorized officers of HRD. No other branch/ Unit or office of the Bank is authorized to issue Internship Certificate. Copies of Internship Evaluation Form and Internship Certificate should be retained in Branch/Unit files for future reference.




CHAPTER 9. SALARY, ALLOWANCES & BENEFITS FOR PAKISTAN BASED STAFF

9.1. Introduction

Staff monthly salary is disbursed before the end of each month usually on 26th/27th of the month. Salary & allowances of each employee is a confidential matter. Those officials, who due to reasons of procedural expediency, are in the knowledge of salary particulars of their colleagues, must treat such information as confidential. Their failure to do so may result in disciplinary proceedings against them. In order to disburse salary on time, branches are advised to ensure that all salary amendments must reach HRD latest by 20th of every month as per.

9.2. Advance against Salary

Employees in need of funds for an emergency may be allowed advance against salary for the current month to be adjusted in full on disbursement of salary. Since this facility is only meant for emergencies, no staff member may be allowed to make a habit for applying for such advance. Approval shall be obtained from the Departmental Head/ Branch Manager and forwarded to HRD. As a matter of policy, a staff member may avail this facility only twice during a calendar year under the following conditions :-

9.2.1. If the staff member is proceeding on leave and next payday falls during vacation period.

9.2.2. In case of emergency.

9.3. Effect of Leave without Pay on Salary

Salary deduction on account of leave without pay will apply to the entire salary package of the concerned employee, including allowances and perks. Moreover, weekends and public holidays falling during this period will also be considered as part of leave without pay.

9.4. Salary & Allowances for Officers & Executives (Minimum starting pay)

9.4.1.

Salary and allowances of officers and executives of the Bank are as follows: (All Amounts in PKR)

Range Basic House Util. Conv. Driver’s All.

Furnit. All.

Telep. Resid* Cell* Gross

I 5,000 2,000 500 500 - - - - 8,000 II 7,500 3,000 750 750 - - - - 12,000 III 9,334 3,734 933 1,000 - - - - 15,001 IV 14,000 5,600 1400 1,250 - 2,750 - - 25,000 V 23,834 9,534 2383 1,500 - 2,750 - - 40,001 VI 31,500 12,600 3150 - - 2,750 - - 50,000 VII 35,667 14,267 3567 - 7,000 4,500 3,000 2,000 70,001 VIII 85,667 34,267 8567 - 8,000 6,500 4,000 3,000 150,001 IX 181,334 72,534 18133 - 9,000 9,500 5,500 4,000 300,001 * Area Managers/ Branch Managers below Range VII are eligible for Telephone Residence allowance upto Rs.3,000/- per month * Area Managers/ Branch Managers below Range VIII are eligible for Cell Phone Allowance upto Rs.3,000/- per month

* BM transferred as Team Leader at any Group will continue to draw Title, Tel. Residence and Cell Phone Allowance permissible to BM * Team Leaders ( Range IV, V, VI and VII) are entitled for monthly Cell Phone Allowance of Rs. 3,000/-

9.5. Salary & Allowances for Non-Officers (Minimum starting pay) (All amounts in PKR) Cadre Basic House Utilities Conveyance Gross Supervisory

Secretary / Protocol / Any supervisory Position

5,000 2,000 500 400 7,900




Clerical Assistant / Cashier / Typist / Technical Staff (Maintenance)

4,800 1,920 480 300 7,500

Non-Clerical Peon / Tea / Office Boy Driver / Guard / Non-Technical Staff (Maintenance) / Sweeper / Cleaner

4,000* 1,600 400 200 6,200

* This Basic salary is inclusive of Cost of living allowance of Rs 300 as per the S.R.O. 606 (I)/98 dated June 6, 1998.

9.5.1. Reimbursement Limits (for Officers and Executives) (Amounts signify maximum limits payable on a reimbursement basis).

Salary Range Mobile Phone Limit

News paper Magazine

I No No No II No No No III No*** No No IV No*** No No V No*** No No VI No*** No No VII 2,000*** **** **** VIII 3,000*** Yes Yes IX 4,000*** Yes Yes

*** A small limit may be allowed on functional basis, to be advised through HRD. Based on functional requirement, cellular phone limit for following will be as under :-

Branch Managers/ Area Managers (Below range VIII) Rs.3,000/- p.m. Cases where monthly expenses of an officer exceed approve limits should be referred, indicating reason, ( duly recommended by his / her supervising officer) to concerned DGM, HRD for obtaining necessary approval & record keeping.

**** Allowed only for Branch Managers and Senior Management at HO: One mass circulation & a business paper

^ Club Member-ship Group Heads and General Managers will be eligible to have one corporate club membership at their place of posting that includes joining fee of one approved club plus fixed monthly fees for self and family.

9.5.2. Job cum Grade Fuel Entitlement Job related fuel entitlement of various positions are as follows: (Staff will avail the higher facility out of Grade and Job Fuel Entitlement)

Sr # Functional Title/ Range Fuel Entitlement p.m. (Litres) 1 Group Heads 700

2 General Managers EI / CFO (Range IX) Regional Managers (VIII & IX)

500

3 Divisional Heads RMs (Below VIII) DGM/ Reg. Heads/ Head SME/ Prod Head Area/Zonal / Branch Manager (Range VIII)

300

4 Product Head/AM/ ZM ( Below VIII ) BM (Range VII) Range VII Officers

250

5 BM (Below VII) Team Leaders (Range IV, V & VI) Range VI Officers

200




9.6. Accommodation

At the discretion of the Bank’s Management, furnished or unfurnished accommodation upto reasonable rental value may be provided to senior officers/ Branch Managers, transferred from their permanent locations to fulfill the Bank’s requirements, with the prior approval from HRD. Other staff members when transferred out of city of the permanent residence to suit the Bank’s requirements may be entitled to the following additional allowance (this needs prior approval from HRD before transfer is implemented). Officers transferred to new location at their own request will not be entitled for this allowance) :-

(All amount in PKR per month)

Salary Range Married Officers Unmarried Officers I – III 6,000 4,000 IV – VI 8,000 6,000

VII 10,000 8,000 (In specific circumstances, for managerial assignments, CEO may approve higher limits)

9.7. Fuel Allowance

At the discretion of the management, officers posted in business units such as Consumer Finance, Agriculture Finance, Credit Marketing, Quality Assurance Officers, are allowed payment of Fuel Allowance ranging between 50 ltrs. to 200 ltrs. (Based on their functional requirements if recommended by concerned Heads of Division / Departments). Such approvals are obtained from HRD by concerned Group.

9.8. Cell Phone Facility

Those who are below salary range VII but due to their functional requirement need mobile phone facility, will be eligible for reimbursement of upto maximum Rs.1,500/- per month subject to maintenance of their own mobile phone set. This facility will be available based on recommendations from GH/ GM/ Divisional Head and approval from HRD.

9.9 Title Allowance

Title Allowance may be paid to following position holders till such time they hold these positions.

Officer Position Allowance in PKR per month Group Head/ General Manager/ EI 35,000 Regional Manager 25,000 DGM/ Regional Head/ Product Head 20,000 Area Managers 15,000 Branch Managers 10,000 Chief Cashiers 3,000 Tellers/Cash Officers 2,000 Asst. Manager (Call Centre) 5,000 Supervisor (Call Centre) 3,000 Officer (Call Centre) 2,000

9.10 Evening and Gazetted Holiday Allowance (Shift Allowance) for Call Centre Staff The following Evening and Gazetted Holiday Allowance is awarded to Call Centre Staff only, through

centralized payroll: Nature Allowance Evening Allowance Rs. 150/ day Gazetted Holiday and Sundays Rs. 1,000/- per day




9.11 Car Allowance/ Self Liquidating Car Loan (SLCL) in lieu of Bank Car

9.11.1.

Objective Car Allowance is paid in lieu of Bank Car Facility from Range VI onwards. This allowance covers Car Loan installment (if any) maintenance expenses, insurance etc.

9.11.2. Eligibility Monthly Car Allowance/ SLCL will be provided to employees in range VI & above upon joining the Bank’s service, or on being promoted to such salary range.

9.11.3. Entitlement Grade Entitlement:

Salary Range Car Allowance per month Equivalent Bank Car on SLCL VI 20,000/- Cultus 1000cc VII 30,000/- Honda City 1300cc VIII and IX 50,000/- Honda Civic 1800cc Job Related Entitlement: Functional Title Car Allowance Self Liquidating Car Loan Amount* GH/ GM/ RM

AM (RangeVII & above) BM (Range VIII)

50,000/-

1,725,000/-

AM upto Range VI BM upto Range VII

Team Leaders V & VI

30,000/-

1,080,000/-

BMs(New/ Sub/ Smart Branch) Team Leaders (Range IV)

20,000/-

779,000/-

*SLCL Amount will be allowed based on the prevailing Ex- Factory Price as approved by

Management. 9.11.4. Car on Bank’s Account

In addition to Car Allowance/ SLCL, Group Heads/ GMs/ Range IX Executives/ Regional Managers of Range VIII will be provided second Car on Bank’s account based on their functional requirement as per following:-

Functional Title Bank Car Group Head Honda Accord/ Toyota Camry General Manager Regional Manager (Range VIII & IX) Executive-in-Charge

Honda City 1300cc

9.11.5. Repair & Maintenance

Maintenance of Bank the Car provided to above Executives will be on Bank’s account upto reasonable extent.

9.12 Profit Bonus/Special Cash Prize/Ex-Gratia

Profit Bonus will be paid to the employees as and when declared by the Bank’s Management, based on guidelines provided in the respective bonus circular. Special cash awards/Ex-gratia/Bonuses may be paid based on outstanding performance with the approval of CEO.




9.13 Provident Fund (PF)

9.13.1.

All permanent confirmed employees are eligible for membership of Bank Alfalah Ltd. Employee Provident Fund Scheme. An employee will contribute an amount equivalent to one month’s basic salary in a year (8.33% of monthly basic salary) towards the Provident Fund Scheme and an equivalent amount will be contributed by the Bank.

9.13.2. PF deduction will continue to be made from monthly salary even if an employee has resigned and is working during the notice period. Membership of PF Scheme will be automatically cancelled on the last working day of the notice period.

9.14 Cash Award on Passing Institute of Bankers Diploma Exams

Bank Alfalah, as a matter of policy encourages its employees to appear for the IBP Diploma Exams, the syllabus of which has recently been upgraded and expanded to include additional subjects important for professional bankers. Towards that end, it has been decided to award cash prizes to those employees who pass the said exams, as detailed below:

Stage of IBP Diploma 1st Attempt 2nd Attempt 3rd Attempt Onwards I 50,000 30,000 10,000 II 75,000 50,000 15,000

III 100,000 75,000 25,000 Cash Awards received upon qualifying in IBP Diploma Exams will be refunded to the Bank if employee

resigns from the Bank with in one year of receipt of said cash award. Accordingly, at the time of payment of cash awards, concerned employees are required to sign an undertaking to serve the Bank for a minimum period of one year.

9.15 Reimbursement of professional courses’ fee

Bank Alfalah encourages its officers and staff to enhance their professional competence to meet the growing challenges of the financial industry. Part of the cost of registration/admission/exam fees will be reimbursed to those employees who undertake and successfully complete higher degrees and professional courses related to banking and finance (from recognized institutions) to improve their competence and qualifications. Details of this facility are available with HRD. In case an employee resign within one year of last payment received, all payments made in respect of above will have to be refunded to the bank by the said employee. Detailed policy guidelines are available in HRD record. Accordingly, at the time of reimbursement of educational expenses, concerned employees are required to sign an undertaking to serve the Bank for a minimum period of one year.

9.16 Staff Insurance

The Bank has arranged the following types of insurance for its full time staff, at its own expense. The Bank’s Management may decide, at its discretion, to apply some or all of the benefits of any of these policies to staff engaged on contractual basis. Various features relating to these policies are subject to amendment from time to time. Benefits currently available are briefly introduced below:

9.16.1. Hospitalization Insurance Coverage for Employees and their dependent Parents, Spouse and

Children All regular employees and only those contractual employees who are 60 years and above

and are on Bank’s payroll and have submitted Hospitalization Insurance Form to insurance company are covered under hospitalization insurance arranged through Bank’s approved Insurance Company.

All contractual employees (below 60 years of age) who are on bank’s payroll will also be eligible for Hospitalization Insurance (for self only).




9.16.2. Follow-up Treatment In addition to the above, regular employees, their parents, spouses and children suffering from serious illness (see list below) will be entitled for reimbursements of cost of medicines, lab tests and consultation fee subject to the following,

9.16.2.1. If the treatment is likely to continue for a minimum period of six months or more. 9.16.2.2. If the treatment expenses for one month are equivalent to 10% or more of the

monthly Basic Salary of the concerned employee. These claims will be lodged to HRD on Follow-up Expenses Claim Form as per along with

medical bills, doctor’s prescriptions etc. List of Diseases Eligible for Follow-up Treatment Cardiovascular disorders

Strokes Cancer

Multiple Scleroses Hepatitis B & C Major burns

Tuberculosis

(Any other disease, as approved by Management, may be added to the list)

Dependents (Hospitalization and Follow-up Treatment)

• In case of working spouse (if not covered under insurance from his/her employer), will be eligible for coverage from the Bank.

• Working parents are not considered “dependents” and therefore are not entitled for coverage. They will be eligible only if they are fully dependent and live with the officer.

• Unmarried / Widowed / Divorced daughters, living with parents will be allowed insurance facility without age limit.

• Male children above 25 years of age are not covered under bank’s hospitalization policy. Male children below 25 years but married or engaged in gainful employment are also not covered under this policy.

9.16.3. Group Mortgage Insurance Coverage Lives of Employees of the Bank are covered upto the outstanding balance of House Finance liability (in the name of concerned employee or spouse) with the Bank would be taken over by the Insurance Company and no liability will be borne by the family of the deceased (subject to completion of certain formalities required by the insurance company).

9.16.4. Group Mortgage Insurance Coverage For Conveyance Finance (for Clerical and Non-Clerical Staff Only) Lives of Clerical and Non-Clerical Staff members are covered upto the outstanding Conveyance Finance liability with the Bank which would be taken over by the Insurance Company and no liability will be borne by the family of the deceased.

9.16.5. Life Insurance Coverage All employees of the Bank, who are on Bank’s payroll (whether in regular or contractual employment), upto the age of 65 years, will be covered under the Group Life Insurance arranged through insurance company as per following details.

Category Range Sum Assured in PKR A IX & above 5,000,000 B VII – VIII 3,000,000 C IV – VI 2,000,000 D I – III 1,500,000

E Non-officers 1,000,000

9.16.5.1. In addition to life coverage, the Bank has also obtained coverage for permanent

disability due to accident and sickness upto the age of 60 years. In case of disability, benefit will be paid according to percentage of disability as per schedule provided by the insurance company.

9.16.5.2. The insurance policy is subject to conditions and exclusions provided by the




insurance company details of which shall be maintained by the Human Resources Division.

9.16.5.3. Coverage: - Death due to any cause Disability due to sickness and accident as per schedule of disability

9.16.6. Pay Continuation Plan In addition to Life Insurance, Bank has also obtained Insurance Policy of Pay Continuation Plan. Under Pay Continuation Plan, incase of death of an employee or permanent total disability (natural cause/ accident), their family members [as per nomination form] will be paid last drawn monthly Base Salary (i.e. summation of Basic Salary, House & Utilities) for five years, which will be effective from the date of death of employee/ permanent total disability. The salient features are as follows:

Sum Assured : Last drawn Base Salary Payment Period : Five Years Age Limit : 18 to 65 years Exclusion : None Free Cover Limit : Up to Base Salary of Rs. 195,000/- p.m. are covered

without filling Health Questionnaire and completion of medical examination

9.16.7. Medical Checkup In addition to hospitalization cover, special arrangements have been made with the insurers whereby they will arrange for annual medical checkup of all officers in salary ranges VII and above. Executives of the Bank in range VIII and IX are also eligible for comprehensive annual medical checkup.

9.17 Uniform for Non-Clerical & Maintenance Staff

All Non-clerical and Maintenance staff are provided uniform as per following details :-

Season Clothing Item Pairs of socks Pairs of shoes Summer Two safari suits Two One

Winter One suit (jacket & trousers) with two shirts Four One

9.18 End Service Benefits

BAL employees are entitled to the following end of service benefits:

9.18.1. Provident Fund (Own + Bank) plus investment income. (As per PF Rules)

9.18.2 Gratuity payment:- (As per Gratuity Rules) If period of service is less than 05 years, no gratuity will be payable.

If period of service is 05 years and above, gratuity will be payable equivalent to one month’s basic salary (last drawn) for each completed year of service.

Period of any overseas posting other than with Bank Alfalah Limited will be excluded from the total service for calculation and payment of gratuity. Further, for the period of overseas posting with Bank Alfalah Limited any local law governing gratuity will be applicable and if he/she is posted back in Pakistan the period of overseas posting with Bank Alfalah Limited shall be excluded provided gratuity is paid according to the local laws of overseas posting.

Unpaid study leave or long leave without pay will not be considered for payment of Gratuity or any other benefit.

No Gratuity is payable if services are terminated on misconduct

9.18.3 Encashment of un-availed Privilege Leave (only in case of death / termination / Voluntary Severance Scheme)




9.19 Income Tax Liability

Employees are personally responsible for preparation and submission of their personal income tax and any other personal taxation returns and reports, and for the payment of taxes, and of other statutory dues. The Bank undertakes no responsibility or liability in this respect, except for deduction of taxes at source, depositing the same with the concerned authorities, submitting required statements to the income tax department, and providing a salary and tax certificate for the tax year to the concerned employees.

9.20 Other regulatory requirements

The HRD will ensure deductions of Employees’ Old Age Benefit Contributions, Social Security Contributions, Education Cess, etc. as per the rules and provisions of the relevant statutes (if applicable).

9.21 Salary Ranges/ Job Gradings

Bank Alfalah’s salary ranges provide a structure to which basic rates of pay is linked to various positions. All the employees are placed in these ranges based on seniority, level of current responsibilities, market value of these jobs and to pay and reward them based on their responsibility levels.

BAL salary ranges start with Range I (entry level position) end with Range IX [Group Head/ General Manager level position]. These ranges reflect an individual’s position, responsibilities, size of the operation (Branch / Dept.) and scope of assignment. Based on these considerations, various positions fall into BAL Salary ranges as follows:

Job Positions Range Band Group Head/ General Manager IX Head of Division/ DGM/ Regional Manager/ Regional Heads/ Product Heads VII - VIII Senior Managers at HO and Group Offices/ AGM VII Area Managers/ Zonal Managers VI - VII Branch Managers according to size of the branch Team Leaders according to size of portfolio Head of Department of Large Size Branch (Credit/ Trade Finance/Operations Manager

etc.) National Sales Managers Head of Large Department at Head Office Division

V – VII

Head of Credits/Foreign Trade/Operations Dept. of Medium size Branch Relationship Managers at SME Dept Heads at HO with more than 5 years relevant experience

IV - V

Head of Dept at Small size branch Branch Sales Officer or Branch Sales Supervisor Senior Officer at HO Divisions with more than 5 years of relevant experience Secretaries of Group Heads & GM

III - IV

Credit Officer or Trade Finance Officer CD In-Charge or Chief Cashier of Large size branch Officers with more than 3 years of relevant experience ( Officers at Head Office, Officers of

Consumer Finance, Mortgages, SME, Rural Finance, Leasing, General Banking, Operations, Cash, CD In-Charge, IT, Accounts, Customer Service/ Relationship Officer etc.)

Secretary with 5 years or more relevant experience MTO (Post Graduates or foreign qualified)

III

Fresh Officers – Post Graduates or 4 years BBA/BS etc Officers who are Graduates with less than 3 years of relevant experience (Officers at HO,

Officers of Consumer Finance, Mortgages, SME, Rural Finance, Leasing, General Banking, Operations, Cash, CD In-Charge, IT, Accounts, Customer Service Officer etc.)

II

Entry level position / Fresh Graduates / Cash/Operations Officer I




CHAPTER 10. PERFORMANCE APPRAISAL SYSTEM

10.1. Introduction

Bank Alfalah’s performance appraisal system is improved and upgraded from time to time in line with the Bank’s requirements, as well as with industry practices. HRD keeps all units of the Bank informed of the PA system and procedure currently in use. Units are also notified deadlines for goal setting, periodic monitoring and final appraisals.

10.2. Objectives of Performance Appraisal

10.2.1. Improving the performance of the Bank and its staff members 10.2.2. Laying a solid foundation for relationships between staff and management 10.2.3. Clarifying performance targets for all 10.2.4. Using the process for career planning and professional development of staff 10.2.5. Review of salary, assignment and career path 10.2.6. Award of bonus(es)

10.2.7. Provide a basis for Promotion to higher salary ranges and functional responsibilities.

10.3. Role of Immediate Supervisor and Branch Manager / Unit Head

Detailed guidelines are issued by HRD by the end of each year regarding Performance Appraisal of all employees for the year.

10.4. Salary Increments/Adjustments & Performance Bonus(es)

10.4.1. Review of salary and allowances, which is based on previous year’s performance, is carried out once a year during the first quarter of every year. The Bank’s performance appraisal (PA) system is primarily based on goal setting in the beginning of a year, monitoring by supervising officers on bi-annual basis and final evaluation, using standardized performance appraisal forms at the end of the year. Some weightage is also given to evaluation of enabling personal skills and personality traits, as listed in the Appraisal Form.

10.4.2. Appraisal exercise is done only for those employees who have completed six months’ service with the Bank on 31st December and whose appraisal forms have been received from their respective offices within the specified time limit

10.4.3. The extent of salary increases will depend on the system and formulae adopted by the Bank’s Management for the year in question.

10.4.4. With reference to salary levels prevalent in the Bank and in the marketplace, salaries of certain key staff members may be adjusted during the appraisal exercise. This will be done in consultation with concerned Branch Manager/Area Manager/Regional Manager/ Divisional Heads/ General Managers/ Group Heads.

10.4.5. To reward high performance during the period under review, performance bonuses may be awarded to deserving officers based on their performance rating.

10.5. Promotion to Higher Grades

10.5.1. Promotion to higher grades depends upon operational needs on the basis of current assignment, as per Job Grade Fit, identified in Job Gradings. The other important factors are as follows:

10.5.1.1. Bank’s overall policy of promoting certain number of people in specified salary ranges to maintain a balance between number of employees in various ranges.




10.5.1.2. Requirements emanating from operating units for staff of higher seniority to suit their operational needs, based on their current assignment.

10.6. Promotion Procedure

10.6.1. The promotion procedure revolves around the following two activities, which are to be completed and recorded as described below.

10.6.2. Promotion Interview Interviews for promotions to specified positions will be conducted by one or more of the following officers of the Bank as elaborated below: Branch Manager (BM) Area Manager (AM) Regional Manager (RM) General Manager (GM) Group Head (GH) Panel (P)

For promotion to 1st Interview 2nd Interview 3rd Interview Ranges II, III, IV, V BM / Dept. Head AM/ RM/ Div. Head/ GM/ GH - Ranges VI and above BM / Dept. Head AM/ RM/ Div. Head/ GM/ GH Panel All promotions will duly approved by GM HR, Co-Chairman Executive Committees/ CEO.




CHAPTER 11. POWERS OF ATTORNEY

11.1. Issuance of Power of Attorney

11.1.1. Issuance of Power of Attorney is a matter requiring serious attention. Recommendations for issue of Power of Attorney should be forwarded to HRD on prescribed format by branches / units, duly recommended by concerned RM/ Divisional Head/ GM/ GH, keeping in view the risks attached with issuance of these powers to employees with inadequate experience or skills. At times, by judiciously reorganizing the workflow, need for additional Power of Attorney holders can be reduced.

11.1.2. If on careful examination by a Branch Manager and review by concerned Area Office, a definite need is identified, candidates for award of Bank’s Power of Attorney should be selected very carefully. Normally, confirmed employees with a minimum three years’ of banking experience should be recommended for issue of PA. For BAL Management Trainee Officers, over one year of experience (after training) may be considered adequate.

11.1.3. Delegation of authority for issuance of Powers of Attorney is as under: -

Category BM/ AM/ RM Div Head / GM/ GH HRD CEO Officers R R R A

(R = Recommend) (A = Approve)

11.1.4. Once Power of Attorney is approved by the CEO and attested by the competent court, the P.A.

document will be sent to the concerned Branch/Unit for safe custody. In case of officer’s transfer to other branch, this document may be sent to the new place of posting. In case of resignation/termination PA document may be sent to HRD for cancellation.

11.2. Specimen Signature Booklet

11.2.1. Once Power of Attorney is approved by CEO and attested by the competent court, HRD will arrange circulation of Specimen Signature and serial number of the concerned officer. It would be the responsibility of Branch Manager/Head of Unit at Head Office to keep the Specimen Signature Booklet updated.

11.2.2. On resignation/termination/death of an attorney holder, HRD will arrange cancellation of Specimen Signature of the concerned officer through circular. On receipt of circular, word “Cancelled” may be marked on the signature of said attorney holder.

11.2.3. It may be noted that all Power of Attorney holders must write Authorized Signature Number invariably wherever they sign any instrument or official correspondence.




CHAPTER 12. LEAVE RULES

All employees of the Bank including contractual staff, on completion of one year’s service with the Bank are entitled to certain number of days’ leave in a calendar year. This entitlement is spread over a few categories of leave, as elaborated below:

12.1. Privilege Leave (PL)

12.1.1. Entitlement 30 days with full pay in a calendar year, to be credited on pro rata basis to each employee’s leave account on 1st January of each year. Maximum PL balance for any employee cannot exceed 60 days.

12.1.2. New Joiners PL balance of those joining during the year will be calculated on a pro rata basis.

12.1.3. Authorization All PL should be availed after obtaining approval from the sanctioning authority.

12.1.4. Availment The employees must avail at least 15 days’ continuous leave from the available privilege leave balance during a calendar year. For this purpose, a leave roster for the entire staff strength of each unit must be drawn, under the supervision of the Head of each unit, and a copy forwarded to HRD for record. During notice period if an employee has resigned, no privilege leave will be allowed even if the leave shows credit balance.

12.2. Casual Leave (CL)

12.2.1. Entitlement 10 days in a calendar year, to be credited on pro rata basis to each employee’s leave account on 1st January of each year. Outstanding balance of CL as of December 31 shall lapse as un-availed CL cannot be carried forward to next year.

12.2.2. New Joiners CL balance of those joining during the year will be calculated on a pro rata basis.

12.2.3. Authorization All CL should be availed after obtaining approval from the sanctioning authority. However in case of emergency the concerned employee must inform the sanctioning authority by phone or fax (etc), by the morning of intended leave. In such cases, upon return, the concerned employee should submit a leave application form giving due explanation. Disciplinary action may be taken against employees who frequently absent themselves from duty on the pretext of CL without even informing the sanctioning authority.

12.2.4. Availment CL should normally be for only one day at a time. Only in cases of personal emergencies, or bereavement in immediate family, may an employee be allowed CL up to three days at one time.

12.3. Sick Leave (SL)

12.3.1. Entitlement Eight days in a calendar year, to be credited to each employee’s leave account on 1st January of each year. Maximum SL balance for any employee cannot exceed 16 days at any point of time.




12.3.2. New Joiners SL balance of those joining during the year, will be calculated on a pro rata basis.

12.3.3. Authorization For medical situations, SL should be availed after obtaining approval from the sanctioning authority. Leave application in such cases should be accompanied by a medical certificate from a registered medical practitioner

12.3.4. Availment In cases of emergencies, an employee availing SL must inform his/her sanctioning authority as soon as possible of his/her intention of availing SL. Upon resumption of duty, a leave application form must be submitted to the sanctioning authority duly supported by medical certificate for approval of the sanctioning authority. Any leave without Medical Certificate will be considered as C/ L or P/ L. This certificate must be issued by a registered medical practitioner. Where a medical certificate is not submitted with the leave application for one day leave, deduction will be made from the balance of Casual Leave. For leave availment of two or more days, deduction will be made from Privilege Leave balance.

12.4. Unpaid Study Leave / Leave Without Pay (LWP)

Leave without pay for more than one month and unpaid study leave will be approved by HRD based on merit of each case. Detailed guidelines are available with HRD.

12.5. Maternity Leave (ML)

12.5.1. Entitlement All married female employees subject to completion of four months service are entitled to maternity leave, on full pay, of maximum 12 weeks i.e. up to six weeks leave prior to delivery and at least six weeks after the baby is delivered.

12.5.2. Authorization Maternity leave should be availed after submitting leave application together with medical certificate / medical records and obtaining approval from the sanctioning authority.

12.5.3. Availment If requested by the employee and supported by a medical certificate, maternity leave may be combined with balance of P/L or S/L due to the staff member.

12.5.4. Sanction of Leave Authority for sanction of leave will be vested as per following (under advise to HRD):-

Applicant Approving Authority Branch Staff Branch Manager Branch Manager Area Manager Area/ Regional Office Staff Area Manager/ Regional Manager Area Managers Regional Manager/ Group Head Regional Managers Group Head Head Office Staff Div.Head/ GM/ GH Div. Head/ GM/ GH CEO

Application for Maternity Leave and Unpaid Study Leave/ Leave Without Pay must be

processed for approval through HRD.

12.5.5. Leave Record Proper leave records should be maintained for all employees at their respective establishments according to the prescribed format. At the end of each month the officer maintaining leave records must go through the attendance register to counter-check that all ‘absences’ or ‘leaves’ marked against various employees are supported by leave applications and other documents, as required.




Maintenance of leave records is done as follows:

Applicant Record maintained at Branch Staff Concerned Branch Branch / Chief Manager Area Offices Area/ Regional offices Area/ Regional Offices AM/ RM/ Div. Head/ GM/ GH HRD All Head Office Staff HRD Consumer Finance Consumer Finance Group All sanctioning authorities should forward approved leave applications and joining reports to

concerned offices as listed above for record keeping purposes.

12.5.6. Permission to Leave Station Where an employee proceeding on leave intends to travel outside his place of posting, the fact must be highlighted in the leave application form for specific approval of the sanctioning authority.

12.5.7. Optional Leave (Festival Leave ) Optional leave can be availed by the employees only if announced by the State Bank of Pakistan.




CHAPTER 13. TRANSFER TRAVEL & BAGGAGE RULES

13.1. Eligibility, Authorization & Other Conditions

Stipulations of these rules relate to official travel on the Bank’s business and apply to the Bank’s employees only. Expenses relating to accompanying family members will not be admissible except on permanent transfers.

13.1.1. Objectives of official travel Before official travel is contemplated and authorization obtained, the employee initiating travel plans, should identify clear and specific objectives that the visit is expected to achieve. Employees contemplating official travel, and senior officers authorizing it, should ensure that expected benefits from planned travel outweigh the costs related to such travel. In case of doubt, a thorough evaluation of travel plans may be called for.

13.1.2. Authorization for official travel Authorization for official travel and related expenses may be granted (on ‘Travel Authorization Form’) by the following authorizing officers :-

For Approving Authority Divisional Head/ GM/ GH CEO All employees working in their respective

Branches and Area Offices Divisional Head/ GM/ GH

Employees working in their Divisions / Departments

Divisional Head/ GM/ GH

All International and Inter-city travel by air for all salary ranges will be approved by CEO/ Co-Chairman Executive Committees. Whenever an “Authorizing Officer” (other than CEO or Co-Chairman Executive Committees) wishes to arrange a meeting for which more than three participants need to undertake travel, prior approval from CEO will be required. Prior to undertaking travel, concerned officers must obtain written approval from Authorizing Officers on “Travel Authorization Form” and forward a copy of the same to the office(s) responsible for purchase of travel tickets and arranging hotel accommodation. For International Travel or Training Courses outside the country, specific approval would be required from CEO/ Co-Chairman Executive Committees.

13.1.3. Exceptions and deviations Strict adherence to these guidelines should be ensured by Authorizing Officers. In extra-ordinary circumstances, exceptions may be allowed after obtaining approval from GM HRD.

13.1.4. Senior Officers traveling together As a precautionary measure, senior officers of the Bank should not travel together in groups of more than three people. This applies to all means of transport, whether by air, road or rail.

13.2. Mode of Travel

Entitlement for travel by various modes of travel is as follows :

13.2.1. Air Travel Class of Travel Designation Domestic International Range IX & above Business Class Business Class Range VIII Business Class Economy Class Others Economy Class Economy Class As far as possible the concerned officers should travel by direct routes and without any

stopovers for personal reasons.




13.3. Hotel Accommodation

13.3.1.

Staff Range Domestic International IX 5 Star 4 Star VIII 4 Star 3 Star VII 4 Star 3 Star IV – VI 3 Star 3 Star I – III 2 Star / Guest House 2 Star Clerical Staff Rs 500/= -

Non-Clerical staff Rs 250/= - 13.4. Daily Allowance

Employees who do not wish to use hotel accommodation can claim a daily-allowance to cover cost of hotel accommodation, food and refreshments, laundry etc.. Cost of local transport while on outstation duty may be claimed separately on the ‘Travel Expenses Claim Form’. For the purpose of calculating Daily Allowance, only the number of nights away from home base should be counted. Daily Allowance rates are as follows:

Staff Range Domestic (Amount in PKR)

International (Amount in USD)

IX 3,000/= 100/= VIII 2,500/= 75/= VII 2,000/= 60/= IV – VI 1,500/= 50/= I – III 1,000/= 25/= Clerical Staff 500/= - Non-Clerical staff 250/= -

13.5 Audit/ Compliance Officers’ Cash Allowance During Duty

Special arrangements have been made for audit/ compliance officers on duty. They will avail hotel accommodation usually in hotels/guest houses pre-selected jointly by respective Division and HRD. However, they will only use the hotel for bed and breakfast facility (if included with room rate). The following per day cash allowance will be admissible to them in lieu of lunch, dinner, tips, laundry, telephone calls etc.

Range Amount in PKR per day I – III 750/= IV – VI 1,000/=

VII & above 1,250/=

13.6 Traveling on Retirement from Service

13.6.1. An employee who retires from the service of the Bank will be reimbursed admissible one-way traveling costs for self and family members plus cost of luggage transfer for his/her journey from last place of posting to his/her permanent place of residence in Pakistan as recorded in his/her personal file at HRD.




13.7 Permanent Transfer (Inter City)

13.7.1. Tickets Air tickets (or railway or coach tickets, as applicable) for the staff member, spouse and dependent children.

13.7.2. Insurance value of personal effects The maximum value of an officer’s personal effects on which the Bank will pay the premium shall be as under :-

Range Amount in PKR VII & above 2,000,000 IV – VI 1,500,000 I – III 1,000,000 Non-officers 500,000 The insurance of personal effects will be arranged by Establishment & Administration

Division through approved insurance companies.

13.7.3. Transportation personal effects Range Container Size VII & above 40 ft. Other officers 20 ft. 13.7.4. Relocation expense

To meet extra-ordinary expenses caused by a permanent inter-city transfer, the Bank will pay 50% of monthly basic salary to an employee under transfer, with a minimum payment of Rs.5,000/- for non-officers & Rs. 10,000/- for officers (whichever is higher). If the transfer is affected at the request of officer, no relocation allowance will be payable. In case of overseas posting, one month’s basic salary fixed in local currency of place of posting will be paid at the place of posting in Overseas Country.




CHAPTER 14. STAFF FINANCE POLICY

14.1. Introduction

14.1.1. The Bank provides financing facilities to its regular employees (not contractual employees) under the following headings :

14.1.1.1. Housing finance 14.1.1.2. Conveyance finance 14.1.1.3. Furniture finance 14.1.1.4. Personal finance 14.1.1.5. Self Liquidating Car Finance (Regular and Contractual both) General information and terms and conditions pertaining to these facilities and applicable to all

such facilities are given below.

14.2. General Principles

14.2.1. Staff finance facilities are to be allowed by the Bank on a case to case basis and cannot be claimed by employees as a matter of right.

14.2.2. The aggregate amount of monthly repayment(s) of all outstanding finance(s) availed by a staff member should not exceed 50% of gross monthly salary.

14.3. Approving Authority for Staff Finance

Type of Finance Branch/Unit GM/ GH/ Div. Head HRD Housing R A A* Conveyance R A A* Furniture R R A Personal R A A*

R = Recommend A = Approve

A* = For HO Staff approving authority will be GM/ DGM – HRD

14.4. Housing Finance

Housing finance applications received from eligible employees would be reviewed on a case to case basis within the guidelines contained in the text below. All house finance applications received will be considered subject to availability of funds upto the extent of 1% of total deposit of the Bank as per the Bank’s balance sheet at the end of previous quarter. HRD is to keep a tab on the fund availability situation.

14.4.1. Eligibility Criteria For new employees without any previous banking or other professional experience: Three years-uninterrupted services with Bank Alfalah Ltd.

For experienced staff members: Total five years, including one year with Bank Alfalah. Only full time regular employment will be taken into account (internship, article ship or part time job will not be considered as previous experience).

This facility will be available to staff members for purchase or construction of residential accommodation for their personal use.

The Bank’s (CEO) retains his discretion to make exceptions to laid down policy and criteria, to suit the requirements of the Bank under the following circumstances i.e.




14.4.1.1. Where an incumbent was entitled for housing loan at his/her immediate previous organization but did not avail this facility. In this case if the loan is to be allowed, it may be sanctioned after confirmation of applicant’s services.

14.4.1.2. Where an incumbent has already availed housing loan from the previous organization and wishes to avail this facility.

14.4.1.3. Any other exceptions necessitated by extra-ordinary circumstances. 14.4.2. Repeat Loan

In principle, housing finance facility will be available to eligible staff only once during the entire service with the Bank. However, repeat house finance facility may be considered after seven years of the availment of the first finance for the purpose of acquiring better or alternative accommodation due to significant change in individual circumstances. The repeat loan facility will be for the purchase of a better property only and not for repair, renovation or extension of existing property. If any enhancement(s) was availed by a staff member the seven year period will be calculated from date of last enhancement or if loan was taken over from previous employers then from the date of sanction of the loan in previous organization.

The repeat finance facility may be allowed as per the revised entitlement less current outstanding amount.

14.4.3. Finance Entitlement Officers:- 100 Basic Salaries, subject to the following amount whichever is less :- Range Amount in million I 3.000 II 3.500 III 4.000 IV 5.000 V 6.000 VI 7.500 VII 9.000 VIII 10.000 IX 15.000 Non-Officers:- Clerical 1.000 Non-clerical 0.750 14.4.4. Markup - Officers :- Loan amount Markup per annum Upto 2.000 M 3% 2.000 M – 3.000 M 4% 3.000 M – 10.000 M

5%

10.000 M – 13.000 M

6% 13.000 M – 15.000 M

7%

Non-Officers :- Markup Free

However, in case of promotion to officer’s cadre, markup will be charged at specified rates applicable, from the date of promotion.

14.4.5. Repayment 14.4.5.1. Total outstanding House Finance plus markup should be adjusted within 20

Years from the date of disbursement or before the age of retirement whichever comes first.




14.4.5.2. In case recovery period is less than 20 years and loan installments exceed 50% of gross salary, amount of loan may be reduced. If an employee wishes to avail full loan amount, he/she will have to undertake to repay outstanding balance in lump sum upon his/her leaving the Bank.

14.4.5.3. Recovery of the installments shall commence three months after disbursement of House finance in case of purchase of an already built house/flat, and one-year after the disbursement of the first draw down of the finance, in case the house is to be constructed.

14.4.5.4. Installments shall be recovered from the monthly salary of the staff. The staff will ensure regular deduction of monthly installments from his/her salary from the due date as provided above.

14.4.5.5. In cases where the number of remaining months of service up to staff’s retirement age of 60 fall short of the maximum repayment period (240 months), the amount of the monthly installment will be increased to ensure complete recovery of the outstanding amount with mark-up up to retirement. This will be subject to the principle of maximum deduction level of 50% of gross salary as explained above. If the above mentioned conditions cannot be fulfilled, or if it is observed that the staff will not be able to repay the outstanding amount upon his/her retirement, the Bank shall have the discretion to reduce the amount sanctioned to the concerned staff member.

14.4.5.6. A case may arise where a staff member, who has drawn one or more trenches of staff housing finance, resigns from the service of the Bank, or his/her services are dispensed with before complete recovery of the advance. In such a case, the total balance outstanding against him/her, together with mark-up in full, shall become immediately due and recovered in lump sum forthwith.

14.4.5.7. The Management of the Bank at its discretion may decide to give the concerned staff member a reasonable time period for repayment of the finance. The Bank may start charging commercial markup rate on such advances after a grace period as follows :-

Three months period if the concerned staff switches over to another job Six months if the concerned staff remains out of regular employment

14.4.5.8. CEO of the Bank may grant exceptions to these rules to suit the Bank’s need. 14.5. Conveyance Finance

14.5.1. Eligibility Minimum confirmed service of one year with Bank Alfalah Ltd.

14.5.2. Finance Limit Market price of a vehicle to be acquired under the Bank’s conveyance finance scheme is to be established by concerned staff member and Chief Manager / Branch Manager of concerned branch on the basis of three alternative price quotations. For Head Office, HRD will coordinate this process.

14.5.3. Clerical/Non-Clerical Staff For purchase of a new Motor cycle (local assembled) up to 100 cc capacity

14.5.4. Officers in Salary Ranges I to III For purchase of a new Motor cycle (local assembled) up to 125 cc capacity.

14.5.5. Officers in Salary Range IV For purchase of a new motor car (local assembled) up to 800 cc or equivalent (may be allowed immediately after confirmation).

14.5.6. Officers in Salary Range V For purchase of a new motor car (local assembled) up to 1000 cc or equivalent (may be allowed




immediately after confirmation).

14.5.7. Markup For Non-Officers Markup Free

For Officers 5% per annum

14.5.8. Repayment Conveyance financing is to be repaid in 72 equal monthly installments for motor cycles and 108 equal monthly installments for motor cars, or up to the age of 60 whichever is less. If the staff resigns/retires or his/her services are otherwise terminated before complete recovery of the finance, the amount outstanding shall be repayable/ recovered in lump sum including mark-up, if any, immediately before his/her dues are settled.

14.5.9. Security The vehicle shall be hypothecated to the Bank and the Bank’s name shall be endorsed on the registration book. The vehicle shall be comprehensively insured in favour of the Bank by the employee concerned up to the amount of finance disbursed. Monitoring office will ensure that proper insurance is obtained before the vehicle is put to regular use.

14.5.10. General Rules 14.5.10.1. Conveyance finance facility will be available to the eligible staff during their

service with the Bank, with a gap of at least 5 years between two applications. 14.5.10.2. Members of staff who are provided with Bank’s car are not eligible for

conveyance finance (except Branch Managers). 14.5.10.3. It is permitted under these rules for an employee to purchase a second hand

vehicle provided the following conditions are met: 14.5.10.4. The amount of finance is within the limits set under this policy. 14.5.10.5. The vehicle is not more than five years old. 14.5.10.6. The concerned Chief Manager / Branch Manager have personally verified that

the price of the vehicle conforms with its market value. 14.5.10.7. Change of vehicle under a fresh financing facility may be allowed before the

expiry of the total period of finance, but not before the expiry of three years in case of motor cycle finance and five years in case of car finance.

14.6. Personal Finance

14.6.1. Eligibility Minimum confirmed service of one year with Bank Alfalah Ltd.

14.6.2. Entitlement Three months Gross Salary subject to the following maximum limits :- Officers For personal needs Rs. 50,000/= or 50% of entitlement For educational needs only Rs. 50,000/= or 50% of entitlement Total

Rs. 100,000/=

Non- For personal needs Rs. 25,000/= or 50% of entitlement Officers For educational needs only Rs. 25,000/= or 50% of entitlement Total

Rs. 50,000/=

14.6.3. Markup 5% p.a.

14.6.4. Repayment Rapid 18 equal monthly installments Normal 36 equal monthly installments




14.6.5. General Rules 14.6.5.1. Upon full adjustment of Personal Finance, it can be re-availed after a waiting

period of three months. 14.6.5.2. Topping up of the facility is not allowed if full entitlement is availed. 14.6.5.3. Applications for personal finance will be considered on a case to case basis,

within the laid down general principles and guidelines. 14.6.5.4. Request of Personal Finance for educational needs of staff members’ children

must be supported by copies of receipts of tuition fees and relevant course books. Expenses on stationery and transport etc. will not be admissible.

14.6.6. Security Demand Promissory Note and usual Charge Documents

14.7. Furniture Finance

14.7.1. Eligibility This facility is allowed to those confirmed Officers in Salary Range IV & above who have completed minimum two year’s service with Bank Alfalah Limited.

14.7.2. Entitlement

Range Loan Limit Installment Furniture Allowance IV – VI Rs.150,000/ Rs.2,300/ Rs. 2,750/ VII Rs.250,000/ Rs.3,830/ Rs. 4,500/ VIII Rs.350,000/ Rs.5,370/ Rs. 6,500/ IX Rs.500,000/ Rs.7,660/ Rs. 9,500/ 14.7.3. Repayment

Entire loan will have to be adjusted in maximum 90 monthly equal installments (Principal + Markup) accrued there upon. The deduction will be made at source from the Furniture Allowance.

14.7.4.

Markup 9% on reducing balance

14.7.5.

Payment Method Officers will receive cash amount to buy furniture, carpet, curtains and electronic items for personal use at their residence

14.7.6.

Security The loan is not the clean facility. The furniture items would be hypothecated. A letter of hypothecation is to be obtained.

14.7.7.

Repayment Procedure Through monthly installments as mentioned above so that loan is adjusted in 90 equal installments. On resignation / termination officer is required to pay off outstanding loan liability in full. No waiver of installment is allowed.

14.7.8.

Other Conditions

14.7.8.1. This facility is available only once in the service period. In case of promotion to Range VII, VIII or IX, topping up would be allowed according to new entitlement less furniture amount already availed. Revised furniture installment will be recovered through adjustment of loan as per above details.

14.7.8.2. The Bank’s Management, at its discretion, may allow exception in the matter of allowing repeat loan after adjustment of existing loan through regular installments.

14.7.9.

Approving Authority DGM/ GM, Human Resources Division




14.8 Self Liquidating Car Finance Self liquidating car loan facility is allowed for all Range VI and above staff [Regular and Contractual both] in

lieu of bank maintained car. Officers below range VI will continue to avail existing staff conveyance finance facility. The salient features of self liquidating conveyance finance are as follows:

Description Range VI Officers of Range VII & Branch Managers and Area Managers

of any range

Range VIII Officers Area Managers of Range VII Second Car for Range IX

Loan Amount** Rs. 779,000/- Rs. 1,080,000/- Rs. 1,725,000/-

Type of Vehicle (or equivalent) Cultus 1000 C.C City 1300 C.C Civic 1800 C.C

Tenure (maximum financing period) 5 Years 5 Years 5 Years

Monthly Car allowance Rs. 20,000/- Rs. 30,000/- Rs. 50,000/-

Markup 9% 9% 9% **SLCL Amount will be allowed based on the prevailing Ex- Factory Price as approved by Management.

The bank will provide monthly car allowance through payroll as per the entitlement of the officer concerned. The monthly car allowance is to facilitate repayment of loan installment including Mark-Up and cover all car expenses such as insurance cost, repairs & maintenance, registration / road tax or any other expenses related to car.

The car would thus be owned by the staff member concerned, but it would be registered jointly in the name of the Bank also, to secure the Car Loan.

On leaving the service of the Bank, the staff member would be required to repay the outstanding car loan liability and the Bank would relinquish its joint ownership of the car. Moreover, on completion of 5 (Five) years service from loan disbursement date, i.e. repayment of the car loan, the Bank would relinquish its joint ownership of the car.

Branch Managers even below Range VI would be entitled for self liquidating car loan Honda City 1300 or equivalent, plus applicable allowance. ( BMs (New/Sub/ Smart

Area Manager of Range VII & above will be entitled for self liquidating car loan, for the purchase of Honda Civic 1800cc (or equivalent), plus applicable allowance.

Area Managers below Range VII will be entitled for self liquidating car loan, for the purchase of Honda City 1300cc (or equivalent), plus applicable allowance.

New joiners will be entitled this facility immediately after joining the Bank. Provision of the Policy

The officer will be allowed to utilize self liquidating car loan facility for the purchase of a new car or a second hand car, commensurate with his/ her entitlement. Incase of second hand car, the loan amount will be restricted to purchase price based on quotations and Fair Market Value. The car’s model should not be more than 5 years old.

Officer can always upgrade the vehicle by contributing his/ her money in the purchase price of new car. However, the loan will be allowed up to the extent of his / her entitlement only.

If an employee chooses to purchase a vehicle less than the loan amount available as per entitlement, the available loan amount will decrease according to the vehicle being purchased. However, monthly car




allowance will be paid in full, as per employee’s entitlement.

The loan will be disbursed subject to completion of loan documentation formalities which will be advised separately by HRD. The car will be under joint registration till the loan is fully adjusted.

The employee may top up the loan facility (subject to change of vehicle) after a minimum period of 36 months. Change of security will however be allowed with the prior permission of HRD, if officer intend to change car due to frequent trouble/ accident or any other valid reason etc. On completion 5 years and subject to adjustment of car loan, a fresh loan can be availed by the eligible employee.

In case of promotion of the employee, fresh loan will be allowed as per new entitlement, after repayment of existing loan in full and subject to change of car.

The Bank will arrange/ pay annual premium for car insurance coverage with the consent of employee, which will be deducted from the monthly salary of concerned employee.

The employee will be responsible for maintenance, road tax and other levies / taxes as imposed by the Government from time to time.

A monthly car allowance will be given in case eligible officer decides not to avail the facility subject to condition that the officer maintains a new car or second hand car as per entitlement [Documentary proof of maintenance of car should be submitted to the Bank]. The payment of car allowance would be from date of joining at the Bank for new employees. For existing employees, it will commence from the date of surrender of bank car/ availment of car loan, as the case may be.

At no point in time, officers will be eligible to have two car loans. Those who have availed staff conveyance finance facility will be required to adjust the outstanding loan, prior to the availment of self liquidating car loan.

14.9. Credit Cards

BAL Staff members are eligible to hold Alfalah Credit Card on a concessional rate of mark-up @ 18% per annum, on outstanding balance. The rate of markup is subject to the change by the Management.

14.10. Recovery of Loans

In addition to regular loan installment, Bank Alfalah reserves the right to set-off any overdue staff loans and credit cards or any dues of the bank appearing on staff name from staff members’ bonus/ arrears or retirement benefit amount.




CHAPTER 15. INTERNAL COMMUNICATION

15.1. Introduction

15.1.1. Bank Alfalah believes in promoting open, direct and honest communication among all units and individuals of the Bank. Towards this end, a number of initiatives have been launched, as described below. Efforts will continue to open up new channels of communication as and when feasible. All employees are encouraged to make use of these initiatives and channels to keep themselves informed of what is going on in the Bank, as well as to enhance their professional skills and knowledge, aimed at furthering their careers.

15.1.2. Branches and units are to assist and encourage Bank’s employees in using internal communication facilities. Overall performance of branches/units is greatly enhanced by engendering a culture of caring and sharing and opening channels of internal communication. It is suggested that branch management committees in all branches take special measures to encourage internal communication within the unit and with other units of the Bank.

15.2. Bank’s Web-site

The Bank’s website has a link to the Alfalah Intranet, intended to serve as the internal store-house for all commonly used information like Internal Circulars, SBP circulars, Employee Service Rules, Alfalah Newsletter etc. All this information will be organized and updated by concerned Head Office Divisions/Departments. All employees are encouraged to visit the Intranet Site frequently to keep themselves abreast of day to day activities of the Bank’s various functions.

15.3. E-Mail Facility

In the interest of speed and efficiency, employees should start using e-mail instead of courier / telephone, wherever feasible. While using e-mail facility, e-mail guidelines issued by the I.T. Division must be adhered to.

15.4. BAL Newsletter

BAL Newsletter is an electronic magazine issued by HRD, covering news from all around the Bank during the previous week. All units must ensure that staff members have access to the newsletter, either in electronic or in paper format. All employees are encouraged to contribute note-worthy events at their respective offices through their mentors or managers.

15.5. Monthly Branch / Unit Meetings

All Branches and Units of the Bank should hold monthly meetings involving all staff during the first week of each month. Large branches / units may hold these meetings broken department wise. Management of branches and units should arrange to draw agendas of these meetings in advance and get minutes prepared for each meeting.

Objectives of these meetings are to : 15.6.1. Encourage mutual interaction and team work 15.6.2. Focus on areas of work that need improvement, like customer service, process flow, expense

control, working conditions etc. 15.6.3. Encourage evolution of a positive culture within the branch / unit. 15.6. Employee Portal

BAL’s Employee Portal is the gateway to the latest information about the Bank and a way of bringing employees closer to members of the BAL family. The portal has been created to bridge the communication gap between HR and the employees and to facilitate at workplace. Whether staff wants to share their views on a topic or access the latest information about the Bank, with the employee portal it’s just a click away.




CHAPTER 16. DISCIPLINE

16.1. Accountability of Employee

Employees shall faithfully and punctually account to the Bank or its authorized officials for all moneys, drafts, securities, account books, registers, papers, vouchers, writings, goods and chattels or other property, which they may receive as employees of the Bank on behalf or on account of the Bank or of any member of the Bank.

16.2 Policy and Procedure relating to Disciplinary Action

During the course of normal business, instances occur where cases of fraud/ forgery / misappropriation / Embezzlement/ Negligence/ Unauthorized absence/ loose control etc. with or without malafide intention are reported. Therefore, in order to safeguard’s bank’s interest, it becomes necessary to initiate/ process disciplinary action against involved/ delinquent employee(s) of the Bank. Human Resources Division will arrange timely processing of disciplinary action case and conducting of domestic inquiries into the charges levelled against those staff members of any of the offences listed below under the heading of “Grounds for Disciplinary Action”.

16.3 Grounds for Disciplinary Action

Where an employee is found involved in; 16.3.1 Wilful insubordination or disobedience, whether along or in combination with others, to any

lawful and reasonable order of a superior. 16.3.2 Theft, fraud, or dishonesty in connection with the employer’s business or property. 16.3.3 Wilful damage to or loss of employer’s goods or property

16.3.4 Taking or giving bribes or any illegal gratification 16.3.5 Habitual absence without leave or without prior permission of competent authority for more

than ten days 16.3.6 Habitual late attendance 16.3.7 Habitual breach of any law applicable to the establishment 16.3.8 Riotous or disorderly behavior during working hours at the establishment or any act

subversive of discipline 16.3.9 Habitual negligence or negligent or work 16.3.10 Striking work or inciting others to strike in contravention of the provisions of any law, or rule

having the force of law 16.3.11 Go-slow 16.3.12 Frequent repetition of disregard and disobedience of rules or orders, making false and

misleading statements, inefficient, dilatory, careless or wasteful working or malingering. 16.3.13 Declaration of bankruptcy forced by creditors 16.3.14 Money laundering or aiding or abetting thereof 16.3.15 Any other improper conduct

16.4 Competent Authority to initiate Disciplinary Action

Head of HR (i.e. GM Human Resources) will authorize initiation of disciplinary action below Range VIII. All Show Cause/Enquiry notices/suspension/termination/dismissal letters and all other related correspondence or incidental documents will be signed by Head of HR or Deputy General Managers, HRD or any other officer officiating in their absence.




For Range VIII and above, CEO will authorize initiation of disciplinary action and formation of Enquiry Committee under his Chairmanship. However, Show Cause/Enquiry notices/punishment letters will be issued and signed by the officials as mentioned above.

16.5. Disciplinary Action Committee (DAC) for decision of cases

This committee is empowered to take final decision in cases where disciplinary action is called for against an employee of the Bank below salary range VIII. The Committee will consist of the following members:

• Mr. M Mudassar Aqil – GM Human Resources & Quality Assurance (Chairman) • Mr. Shakil Sadiq – Chief Operating Officer • Mr. Bakhtiar Khawaja – Group Head Learning • Mr. Ijaz Farooq – Group Head Islamic Banking • Mr. A. Zaheer Piracha – Area Manager Shaahdin Lahore • Mr. Ather Shehab – EI Establishment & Administration Division (Co-Chairman) • Mr. Nadeemul Haq – Group Head Operations • Mr. A. Wahid Dada – Group Head Commercial Banking • Mr. Mehr Falak Sher – Chief Compliance Officer

Quorum in a meeting will complete if four members are present, one of whom must always be the Chairman. In the absence of Chairman, Co-Chairman will preside over the meeting. However, in the absence of Chairman and Co-chairman, any one from the members nominated by the Chairman/Co-Chairman will officiate as Chairman of the DAC. Deputy General Managers HRD (for meetings at Karachi & Lahore will serve as Secretaries of the Committee. In the absence of Secretary, person nominated by Chairman will officiate as Secretary of DAC. Decisions may be taken by consensus or if any member has a view different from other member(s), he should express that in writing. In case of any member record a dissenting decision, majority’s view would prevail. If any member of the disciplinary committee is a party in the complaint or as proceeding progresses, this becomes clear that he is likely to be an aggrieved party or if a case pertains to any Dept/ Area/ Division headed by member of Disciplinary Action Committee, he should not attend disciplinary committee meeting and should abstain himself from taking part in decision making process.

16.6. Process Flow for handling of disciplinary action case

• Cases for disciplinary action from all the branches, Area Offices, Regional Office, HO Departments/ Divisions shall be referred to HRD as soon as any incident takes place. However, cases of fraud or attempted fraud should be referred to Fraud and Investigation Unit of Audit & Inspection Division immediately.

• The Division shall decide as to whether the accused employee/s need to be suspended from service and removed from the place of duty and shall issue instructions to this effect with the permission of GM HR or any officer officiating him in his absence. However, incase of fraud, forgery, misappropriation, embezzlement, theft, where integrity issue is involved, in order to strengthen the Bank’s case where all documentary and circumstantial evidences are available, it is mandatory to suspend the delinquent/ involved staff immediately by his/her Manager.

• Considering the actual facts of the case, a show cause notice under proper acknowledgement may be served within 30 days of the date of misconduct or the date of misconduct comes to the knowledge of the Management.




• Show cause notice should preferably be served to the concerned staff member personally if he/ she is attending the office, otherwise; it should be sent through registered post AD/ Courier at his/ her last provided address available in Bank’s records.

• Subject to unsatisfactory reply, domestic inquiry will be conducted. HRD will appoint the inquiry officer/ Chairman Inquiry Committee.

• The inquiry officer/ Chairman Inquiry Committee should not be below the rank and status from accused/ defendant. The inquiry officer/ Chairman Inquiry Committee and the authority empowered to issue letter of charge and punishment, should be different persons.

• The inquiry officer should have no personal bias against the delinquent employee, nor should be personally connected with the incident.

• The domestic inquiry preferably conducted at the place where the incident took place. • The department requesting HRD for initiating the disciplinary action shall nominate the staff of

the Bank as prosecutor who shall present and plead the Bank’s case before the inquiry officer/ Committee by producing documentary evidences and witnesses (if any) involved in the case.

• The Inquiry Officer/ Committee shall conduct impartial proceedings and allow both sides to record their statements, to produce documentary evidences and witnesses (if any) in favour of their respective cases. Both parties shall also be allowed to cross examine each other and also witnesses. The whole proceedings shall be recorded in writing and got signed by both the parties i.e. prosecutor and defendant along with Inquiry Officer/ Committee.

16.7. Ex-Parte proceedings/ inquiry

• If the employee/ defendant fails to report for the inquiry at the appointment time, date and venue, the Inquiry Officer should first satisfy himself as to the proof of the service of the notice of inquiry on the employee.

• After the conclusion of the inquiry proceedings, the Inquiry Officer/ Committee is required to submit their findings as to whether or not the charges levelled against the defendant are proved by the evidences recorded at the inquiry.

• The findings should recorded giving reasons in brief for the decision on each item of the charge, stating why he/she agrees or disagrees with the accused employee’s contention on each of the charges.

• The proceedings of the inquiry along with report should then be reviewed by HRD and recommend decision to be taken to the Disciplinary Committee, if the accused was found guilty.

16.8. Communication of Decision

The final decision of the Disciplinary Action Committee in writing should be communicated to the concerned employee by HRD. In case, if he/she is not present or refuses to accept the order, it should be sent to him/ her by Registered A.D. post and courier on his/ her address, as provided by him/ her in the service record. The order should be communicated as expeditiously as possible.

The competent authority, in its sole discretion and without limitation, may impose on him/her one or more of the following penalties:

16.9. Punishments / Penalties Consequential to Disciplinary Actions

16.9.1. Reprimand 16.9.2. Postponement or stoppage of increment/ annual increase or promotion 16.9.3. Degradation to a lower stage of pay in his/ her grade or to a lower grade 16.9.4. Compulsory retirement from the service (other then workmen).




16.9.5. Removal from service/ Termination, which does not disqualify for future employment or calls upon an employee to resign from service (other then workmen).

16.9.6. Dismissal which will involve permanent disqualification for future employment in the Bank.

16.9.7. Fine to the extent of 3% of wages for a period of one year in accordance with procedure under the payment of wages Act, 1976, only in case of workmen (employed to do manual or clerical job)

16.10. Submission of Appeal 16.10.1. If aggrieved with the order, an employee can submit appeal or application for review to

appellate Authority i.e. Chief Executive Officer/President, with in 30 days from the receipt of the punishment order.

16.10.2. The appellate authority shall have powers to pass any order within 30 days from the date of receipt of the appeal, as he/she may consider fit. The order of the authority should be communicated in writing to the applicant within 7 days.

16.11. Bank’s property in custody of employee

The Bank’s property (e.g. accommodation, car, motorcycle, house, PC/laptop, mobile phone etc.) which has been in use/custody of an employee who is retiring, resigning or is under discharge or dismissal/ compulsory retirement, must be handed over to a duly authorized representative of the Bank, on or before the employee’s last working day, unless another date has been approved in writing by the Bank.

16.12. Legal proceedings

Legal proceedings against those involved in fraud, misappropriation or embezzlement of funds may be initiated with the approval of Management if the Financial loss to the Bank is not recovered from the delinquent/ involved staff.




CHAPTER 17. RESIGNATION, TERMINATION & RETIREMENT

17.1. Resignation

17.1.1. A confirmed employee may resign from the Bank’s service upon giving one month’s/ three moths’ prior written notice to the Bank as per terms of their employment, failing which he/she will be liable to pay one month’s gross salary/ three months gross salary in lieu of notice period respectively. Management may waive notice salary to suit bank’s requirement. However, in this situation, salary will only be paid upto the last working day and not till the expiry of notice period. During this period, employee will not be eligible to avail leave.

17.1.2. The Bank’s management may, at its discretion, re-employ a person on terms as agreed between the management and the person so re-employed, if not terminated/ resigned on disciplinary grounds.

17.1.3. During probationary period an employee can resign at any time without notice and in the event of such resignation the employee will be entitled only to the remuneration at agreed rate of salary for the time actually employed.

17.2. Termination

17.2.1. Confirmed Employee Services of a confirmed employee may be terminated by the Bank without assigning any reason by giving one month’s/ three months notice in writing or on payment of one month’s gross salary/ three months gross salary, in lieu of notice period.

17.2.2. Employees Under Probation During probationary period, services of an employee may be terminated at any time without notice and in the event of such termination the employee be entitled only to the remuneration at agreed rate of salary for the time actually employed.

17.2.3. Unauthorized absence from duty When an employee remains absent from his/her duty without proper authorization, or fails to return for duty within specified period mentioned in the written notice issued to him, he/she will be liable for disciplinary action which may include termination of service. The said written notice will not be for a period of less than one week from the date of dispatch of a letter by registered post or via reputable courier service at the employee’s last recorded address.

17.3. Conditions for retirement

17.3.1. All employees of Bank Alfalah Ltd. are liable to retire from the Bank’s services on attaining the age of 60 years.

17.3.2. The Bank’s management may, at its discretion, re-employ an employee due for retirement on contractual basis for a defined period.

17.3.3. The services of a person, who is thus employed, may be terminated by serving one month’s/ three months prior notice in writing or one month’s/ three months gross salary as per terms of the employment, in lieu thereof.




CHAPTER 18. SUCCESSION PLANNING POLICY

18.1. Definition Succession Planning is the process of systematically identifying all key positions within Bank Alfalah

(especially those which are likely to fall vacant or to open up in the near future due to promotion, resignation or retirement). The next stages in the process are to select and then to prepare candidates from within the Bank of these positions.

18.2. Summary Benefits The primary benefit of succession planning is that a sequence of personnel actions is initiated so that one

or more candidates are identified for each key position in advance of actual need. This prior identification permits opportunities for mentoring and developmental activities to improve their readiness to succeed to specific positions. The benefits of succession planning are;

• BAL would grow its own future managers rather than recruiting outside the organization.

These managers will be fully conversant with the organizational culture prevailing at the Bank. • The learning curve for future managers to prepare for meeting challenges of higher

responsibility will shorten. • Commitment and loyalty among officers aspiring for higher positions will increase. Morale and

motivation will also be enhanced, while staff turnover will go down.

18.3. Key Elements of the Succession Planning Policy

BAL Succession plan to achieve its goals, the following key elements are to be incorporated in its design:

• CEO and top management support • Integration with strategic business planning and projected changes in the organization • Identification of critical management positions, skills required for incumbents and gaps in

management succession • Time lines for filling succession gaps for organizational and individual needs • Job profiling to identify critical competencies for effective performance in specific jobs • A system for communication of the succession planning process to field management • A system for identification, nomination and selection of successors, based on a review of the

data on all potential candidates, including appraisals of performance and potential, experience and skills, education, salary history and personal career goals

• Determination of training, development and experience needs of candidates, including a system for monitoring, feedback and modification of such development plans

• A review of transfer and placement needs at the point in time when those individuals are ready to advance

18.4. Critical positions to be focused

BAL Succession Plan is to focus on three tiers of management personnel in all units of the Bank. Succession plans for senior management levels in Tiers A (Senior Management) and Tier B (Managers of Branches/ Units) will be overseen by HRD. Succession plans for Tier C positions (Departmental Heads at Branches & Section Heads at HO/ Product Units) will be drawn and managed by concerned management at Tiers A and B, having received guidance and training towards this end from HRD.




18.5. Talent Pool

A Talent Pool of bright and young employees, having post graduate degrees from reputable institutions and two years’ experience with BAL, will be provided training and development, and will be promoted to positions of higher responsibility on a fast track basis.

18.6. Training and Development Needs

HRD and TDC Management, in consultation with Senior Management of the Bank, will draw Training & Development plans for all officers nominated as successors, as well as those placed in the Talent Pool. HR Committee will monitor the progress of Training & Development Centres in providing focused training to both the groups: Nominated Successors and Officers in the Talent Pool.

18.7. Steps towards Implementation

The following step by step plan is suggested for the implementation BAL Succession Planning Program:

18.7.1. HRD to institute a system of identifying gaps, getting successors nominated for Tier A and Tier B positions and to prepare a quarterly progress report to be presented in HRMC meetings

18.7.2. The HR Management Committee will review progress of succession planning program during its quarterly meetings. The committee will have the authority and responsibility to make decisions regarding ratification/ nomination of BAL staff as successors, as well as nomination to the talent pool. It will also have the authority to place staff members nominated as successors, as well as those in a talent pool, in managerial positions.

18.7.3. A Talent Pool is to be established consisting of potential candidates for managerial positions. Staff placed in Talent Pool should also be available for assignment for vacant successor positions with in their existing Branches/ Units/ Areas or in other units throughout the network.

18.7.4. Training needs are to be identified, training programs developed (or identified externally) and conducted for officers nominated as successors or placed in the Talent Pool.

18.7.5. HRD is to periodically measure the success of the succession planning program and process. A review and audit process should identify supply and demand, and verify what is working and what is not. It should also track career paths of officers nominated as successors, as well as those in the Talent Pool.




CHAPTER 19. GRIEVANCES HANDLING POLICY

19.1. Definition Bank Alfalah strives to create and maintain a work environment in which staff members are treated with

dignity, decency, respect and fairness. Employees of the Bank should be able to work and learn in a safe, yet stimulating atmosphere. The accomplishment of this goal is an essential element of Bank Alfalah’s corporate culture. The environment of the Bank should be characterized by mutual trust and goodwill; as well as the absence of unfair treatment, discrimination, intimidation, oppression or harassment.

19.2. Scope of Policy

19.2.1. Introduction Misunderstanding or grievances can arise in any organization. Most incidents that give rise to misunderstanding or grievances, resolve themselves naturally and no formal compliant is required. However, should an employee genuinely feel that he/ she has been subjected to discrimination, maltreatment, harassment, intimidation, or treated unfairly in the matter of increments and promotions, the employee should follow the procedure set out below for bringing his/ her compliant to the attention of the Bank’s Management.

19.2.2. False Accusations It may be noted that by all concerned that making false accusations or maliciously attempting to malign other employee(s) of the Bank would be an abuse of the policy and may result in appropriate disciplinary action against the complainant.

19.2.3. Treatment of Complainant An employee electing to utilize the complain resolution procedure will be treated courteously, and confidentiality will be maintained as far as possible. No employee shall be subjected to any harassment or hardship for making a bona fide complaint.

19.3. Grievances Committee The following Executives of the Bank are members of the Grievances Committee:

• Mr. Parvez A. Shahid, Co-Chairman Executive Committees • Mr. Mohammad Yousuf, Group Head – Credit & Collections • Mr. M Mudassar Aqil, Group Head – HR & QA • Mr. Nadeemul Haq, Group Head - Operations

GM HR & QA will act as the coordinator. Complaints addressed to Grievances Committee shall be submitted through GM HR & QA. The Chief Executive Officer of the Bank can appoint any other Executive of the Bank as a member of the Grievances Committee and/ or replace any member with another Executive. Any three members shall constitute quorum for a meeting and the decision of the committee may be taken by consensus or incase of any member/s record a dissenting decision, majority’s view would prevail.

19.4. Complaint Procedure

The following procedure for making a complaint shall be followed: 19.4.1. Written Complaint Essential:




No formal action will be taken on a complaint unless it is in writing and signed, containing sufficient details and grounds for complaint. The complain should be made with in 15 days from the date of occurrence of the incident to one of the following offices:

• For employees at the Bank’s branches, complaint should be addressed and submitted to the Branch Manager/ Chief Manager

• For employees at Area Office/ Regional Office, to the Area/ Regional Manager • For employees at Head Office Divisions/ Group Office, to the respective Divisional

Head/ GM/ GH 19.4.2. Complaints against Branch Managers/ AMs/ Divisional Heads/ RMs/ GMs/ GHs, should be

made through GM HR & QA. 19.4.3. Complaints against a Member of Grievances Committee should be made directly to the CEO. 19.4.4. Concerned offices should escalate the written complaints to next level i.e. Grievance Committee

within 15 working days of the receipt of the complaints. In case of absence of any responsible officer, officiating in-charge should escalate the matter within 15 working days of the receipt of complaints.

19.4.5. Impartial Investigation: Upon receiving a written complaint, the concerned Branch Manager/ Chief Manager/ Divisional Heads/ RMs/ GMs/ GHs to whom the complaint has been made (“Complaint Receiver”) along with the senior most deputy shall conduct an impartial investigation of the complaint. A copy of complaint will be provided to the employee(s) against whom the complaint has been made (the respondent) for submitting written reply/ explanation, a copy of which will be provided to the complainant.

19.4.6. Detailed Report to Grievances Committee If it is determined that the complaint is genuine and violation of this policy has occurred, the Complaint Receiver will forward a copy of his report along with documents to the Grievances Committee for its final decision.

19.4.7. Representation to the Grievances Committee If the complaint receiver does not conclude the investigation with in the stipulated time, or the complainant strongly feels that the findings have not addressed his/ her grievances satisfactorily, the complainant may make a representation to the Grievances Committee through GM HR & QA.

19.4.8. Grievances Committee Responds within 15 Days The Grievances Committee will initiate an independent investigation and within 15 days respond to the complainant. If the need arises, the Committee may extend the dead line by further period of 21 days, duly informing the complainant within 15 days of receipt of the complaint. The Committee members may dispose of complaints either by meeting in person, or on a circulation basis.

19.4.9. Investigation of Complaints The Grievances Committee is empowered to assign the responsibility of investigating against complaints received by the Committee to DGM HRD at Karachi or Lahore, or to any staff member, or a group of staff members of Bank Alfalah Limited. The staff member(s) assigned the task of investigating will report their findings to the Committee within seven days for a decision. All decisions of the Grievances Committee shall be final and binding.

19.5. Redressal & Prevention Process 19.5.1. Disciplinary Action

If it is determined that violation of this policy has occurred, the Grievances Committee will recommend that appropriate disciplinary action (as per Bank’s policy) be taken against the guilty party or parties.

19.5.2. Preventive Action If the investigation is inconclusive or it is determined that there has been no harassment or discrimination in violation of this Policy, but some potentially problematic conduct is revealed, preventive action may be suggested by the Grievances Committee.