Page 27 - Employee Handbook

Employee Handbook

By using progressive discipline, we hope that most employee problems can be corrected at an early stage, benefiting
both the employee and National Paints.

Resolving Employment Relationship Problems and Disciplinary Action

National Paints employees who fail to follow Company guidelines and Procedures shall be given disciplinary action
accordingly.

Warnings are provided by the Management to ensure that employees understand and acknowledge the policy that the
employee has failed to follow.

Written warnings are provided for higher sanctions, which may include deduction in the Monthly Salary, depending
on the offense made by the employee.

If verbal and written warnings exceeded the allowable measure by the company, an employee may be terminated for
repetitive offense.

In addition, the management also reserves the right to impose the following disciplinary measures as per UAE labor
law:

1. Warning.
2. Fine.
3. Suspension from work with reduced pay for a period not exceeding ten days.
4. Forfeiture or deferment of periodic increment in establishments where such systems are applied.
5. Forfeiture or deferment of promotion.
6. Dismissal from service but reserving the right to end of service benefits.
7. Dismissal from service together with forfeiture of all or part of the benefits, provided that penalties shall not
be imposed for reasons other than those specifically prescribed in Article (120) of the law.

*The measures mentioned above will not be imposed until the employee has received in writing an explanation of his
violation and given a chance to defend himself. His statement of defense will be written, filed and used by the
management as a basis for the final decision. In cases where the suspected employee is found to be guilty, the
punishment imposed shall be provided in writing to the employee.

Immediate Employment Termination

An employment contract can be terminated by employee or the company provided that the provisions of the law are
observed. National Paints may dismiss an employee without notice in any of the following cases:

 If employee adopts a false identity or nationality or submits forged certificates or documents.
 If employee is on probation and is dismissed during the probationary or on its expiry.
 If employee makes a mistake resulting in substantial material loss for the company.
 If employee discloses any confidential information to a third party.
 If employee is found in a state of drunkenness or under the influence of a drug during working hours.
 If employee assaults his supervisor/ manager or any of his workmates.
 If the employee is absent from work without a valid reason for more than seven consecutive days or more
than 20 non-consecutive days.

National Paints Factories Co. L.L.C. Page 27