COLLECTIVE AGREEMENT BETWEEN PETROLIAM NASIONAL …

Collective Agreement between PETRONAS & KAPENAS Semenanjung Malaysia 2019-2021

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COLLECTIVE AGREEMENT

BETWEEN

PETROLIAM NASIONAL BERHAD (PETRONAS)

AND

KESATUAN KAKITANGAN

PETROLIAM NASIONAL BERHAD SEMENANJUNG MALAYSIA

2019 - 2021

Note:

1. Revision of Article: Outstation Reimbursement as per MOU signed between Company & KAPENAS Semenanjung Malaysia for the revision to take effect from 9th November 2020.

2. If require any clarifications, please contact Industrial Relations, Human Capital Expertise.


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TABLE OF CONTENTS

PART 1 – STATUTORY

ARTICLE TITLE PAGE

1 Parties to the Agreement 6

2 Preamble 7

3 Title of Agreement 8

4 Effective Date, Duration and Implementation 8

5 Modification and Amendments 8

6 Legislation 9

7 Interpretation and Arbitration 9

8 Language 9

PART 2 – EMPLOYER - UNION RELATIONS

ARTICLE TITLE PAGE

9 Recognition of the Company 9

10 Recognition of the Union 10

11 Leave on Trade Union Business 10

12 Check- Off 11

PART 3 – DEFINITIONS

ARTICLE TITLE PAGE

13 Definitions 11

PART 4 – PROBATION

ARTICLE TITLE PAGE

14 Probation Period for New Employees 12

PART 5 – WORKING HOURS

ARTICLE TITLE PAGE

15 Hours of Work 13

16 Rest Day 14

17 Public Holidays 14


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PART 6 – RATE OF PAY

ARTICLE TITLE PAGE

18 Overtime Work 14

19 Work on Rest Day 15

20 Work on Off Day 16

21 Work on Gazetted Public Holiday 17

PART 7 – INCREMENT, BONUS AND PROMOTION

ARTICLE TITLE PAGE

22 Annual Increment 18

23 Bonus 18

24 Promotion 19

PART 8 – ALLOWANCES

ARTICLE TITLE PAGE

25 Call Back Pay 20

26 Standby Allowance 21

27 Hardship Allowance 21

28 Shift Allowance 22

29 Covering Allowance 23

30 Acting Allowance 23

31 Sarawak/Sabah/ F.T. Labuan Allowance 24

32 Laundry Allowance 24

PART 9 – REIMBURSEMENT

ARTICLE TITLE PAGE

33 Meal Reimbursement 24

34 Outstation Reimbursement 25

35 Travel Reimbursement 27

36 Permanent Transfer Reimbursement 27

37 Driving Licence Reimbursement 30


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PART 10 – LEAVE

ARTICLE TITLE PAGE

38 Annual Leave 30

39 Accumulation of Annual Leave 32

40 Compassionate Leave 32

41 Sick Leave 33

42 Special Paid Leave 34

43 Transfer Leave 35

44 Industrial Accident Leave 35

45 Prolonged Illness 35

46 No Pay Leave 36

47 Hajj-Umrah Leave 36

PART 11 – MEDICAL BENEFITS

ARTICLE TITLE PAGE

48 Medical Benefits 37

49 Dental & Optical Benefits 38

50 Maternity Benefits 38

51 Special Medical Examination 39

PART 12 – RETIREMENT AND OTHER SEPARATION BENEFITS

ARTICLE TITLE PAGE

52 Retirement Contribution Scheme 39

53 Group Term Takaful (GTT) 41

54 Retrenchment Benefit 41

PART 13 – GRIEVANCE PROCEDURE

ARTICLE TITLE PAGE

55 Settlement of Grievance 42


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PART 14 – FINANCING

ARTICLE TITLE PAGE

56 Vehicle Financing Scheme 44

57 Home Financing Scheme 45

PART 15 – OTHERS

ARTICLE TITLE PAGE

58 Tools and Working Equipment 46

59 Uniform 47

60 Disabled Employee 47

61 Festival Advance 48

62 Home Leave Passage 48

PART 16 – SCHEDULES

SCHEDULE TITLE PAGE

I Grievance Form & Individual Grievance Handling Flow

Chart 51

II Position Titles in PETRONAS & Its Subsidiaries 54

III Salary Range for PETRONAS & Its Subsidiaries 59


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ARTICLE 1 : PARTIES TO THE AGREEMENT

This Agreement is made this ____________ between Petroliam Nasional Berhad (PETRONAS)

a company incorporated under the Companies Act 1965, having its registered office at Tower 1,

PETRONAS Twin Towers, Kuala Lumpur City Centre, 50088 Kuala Lumpur (hereinafter referred

to as the “Company”) of the one part and the Kesatuan Kakitangan Petroliam Nasional Berhad

(PETRONAS) Semenanjung Malaysia, a trade union of Employees, registered under the Trade

Union Act 1959 and having its registered Head Office at 41B, Tingkat 2, Jalan SG 3/10, Taman

Seri Gombak, 68100 Batu Caves, Selangor (hereinafter referred to as the “Union”) of the other

part.

The Company shall include the following subsidiaries:-

• PETRONAS Carigali Sdn Bhd

• PETRONAS Dagangan Bhd

• PETRONAS Gas Bhd

• PETRONAS Penapisan (Terengganu) Sdn Bhd

• PETRONAS Penapisan (Melaka) Sdn Bhd

• PETRONAS Property Management Services Sdn Bhd

• Malaysia LNG Sdn Bhd

• Malaysia LNG Tiga Sdn Bhd

• PETRONAS LNG Sdn Bhd

• PETRONAS Chemicals MTBE Sdn Bhd

• Polypropylene Malaysia Sdn Bhd

• PETRONAS Chemicals Ethylene Sdn Bhd

• PETRONAS Chemicals Polyethylene Sdn Bhd

• PETRONAS Research Sdn Bhd

• PETRONAS Management Training Sdn Bhd

• PETRONAS Chemicals Marketing Sdn Bhd

• Prime Sourcing International Sdn Bhd

• Gas District Cooling (M) Sdn Bhd

• OGP Technical Services Sdn Bhd

PART 1 – STATUTORY


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• PETRONAS Chemicals Fertiliser Kedah Sdn Bhd

• PETRONAS NGV Sdn Bhd

• Vinyl Chloride Malaysia Sdn Bhd

• PETRONAS Chemicals Ammonia Sdn Bhd

• PETRONAS Trading Corporation Sdn Bhd

• PETRONAS Chemicals LDPE Sdn Bhd

• PETRONAS Chemicals Aromatics Sdn Bhd

• PETRONAS Technical Training Sdn Bhd

• PETRONAS Chemicals Group Berhad

• PETRONAS Chemicals Fertiliser Sabah Sdn Bhd

• PETRONAS Technical Services Sdn Bhd

• Sanzbury Stead Sdn Bhd

• Malaysian Refining Company Sdn. Bhd.

• PETRONAS Refinery & Petrochemicals Corporation Sdn. Bhd

and any other subsidiaries agreed upon by both parties from time to time.

ARTICLE 2 : PREAMBLE

The objective of this Agreement is to provide a clear understanding of the relationship between

the Company and the Union in matters concerning the terms and conditions of employment for

all Employees in positions represented by the Union, to stabilize their terms and conditions of

service, to clarify the rights and responsibilities of the Company, its Employees, the Union and its

members, to provide an orderly and effective means of conducting any negotiations or resolving

any misunderstandings or grievances, during the term of this Agreement.

Both parties acknowledge the fact that the well being of the Company as well as its Employees

is dependent upon a common determination to work together in the closest cooperation. The

parties to this Agreement affirm their desire to create a relationship of mutual respect and

confidence.


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ARTICLE 3 : TITLE OF AGREEMENT

This Collective Agreement will be cited as PETROLIAM NASIONAL BERHAD (PETRONAS) and

KESATUAN KAKITANGAN PETROLIAM NASIONAL BERHAD (PETRONAS)

SEMENANJUNG MALAYSIA AGREEMENT 2019 – 2021 (hereinafter referred to as the

"Agreement").

ARTICLE 4 : EFFECTIVE DATE, DURATION AND IMPLEMENTATION

(i) This Agreement shall take effect from 1st January 2019 and shall remain in force for a

period of three (3) years expiring on 31st December 2021 provided that if a new Agreement

has not been agreed to before 31st December 2021, then this Agreement shall continue

to be valid until superseded by the new Agreement.

(ii) Either party may serve on the other three (3) months’ written notice to negotiate a new

agreement, but no such notice shall be given before 30th September 2021. The party

serving the notice shall also submit proposals on terms and conditions of a new Agreement

for negotiation. In the event of deadlock in negotiation the provisions of the current terms

and conditions of employment shall prevail until superseded by new terms and conditions

concluded between the parties or awarded by the Industrial Court.

(iii) This Agreement shall not apply to Employees who cease to be employed by the

Company prior to the effective date of this Agreement.

ARTICLE 5 : MODIFICATION AND AMENDMENTS

(i) During the period of this Agreement neither the Company nor the Union shall seek to vary,

alter, modify, annul or add to any of its provisions in anyway whatsoever except by an

agreement between the parties.

(ii) Any variation to terms of this Agreement shall be jointly deposited by both parties with the

Industrial Court for its cognizance within one (1) month from the date of the agreement on

the said variation.


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ARTICLE 6 : LEGISLATION

In the event that any legislation should supersede, vary, repeal or add to any of the provisions of

this Agreement then the relevant provisions of this Agreement shall be deemed to be amended

accordingly. However, if the benefits contained in this Agreement are more favourable, they will

continue to apply if so permitted by law. The effective date of such amendment shall be the

effective date of the new legislation.

ARTICLE 7 : INTERPRETATION AND ARBITRATION

(i) In the event of a change in the interpretation of any of the provisions of this Agreement,

the resultant benefit, if any, will be limited in its application to the time when the matter

was first raised by either party.

(ii) Any dispute relating to the implementation or interpretation of this Agreement shall be

referred to the Industrial Court for decision in accordance with the provisions of the

Industrial Relations Act 1967 unless settled by negotiation between the Company and the

Union.

ARTICLE 8 : LANGUAGE

This Agreement shall be written both in English and Bahasa Malaysia. In the event of a conflict,

the English version shall prevail.

PART 2 – EMPLOYER - UNION RELATIONS

ARTICLE 9 : RECOGNITION OF THE COMPANY

The Union recognises the right of the Company to operate and manage its business in all respects

subject to the provisions of any law for the time being in force. In exercise of its management

rights, the Company shall not breach any of its obligations under the terms of this Agreement.


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ARTICLE 10 : RECOGNITION OF THE UNION

(i) The Company recognises the Union as the sole principal and collective bargaining body

in respect of and on behalf of all Employees who are members of the Union employed by

the Company with the exception of those Employees who are employed in the following

capacities :-

a) Managerial capacity;

b) Executive capacity;

c) Technical Trade Specialist (TTS);

d) Confidential capacity such as:

(1) All Employees involved in secretarial duties or services.

(2) All Employees whose work involved confidential matters relating to

Company policies and Employee relations.

e) Security capacity such as :-

(1) Security personnel.

(2) Fire and Safety Supervisors, Fire and Safety Assistants and Fire Fighting

Assistants.

(3) Radio Operators.

f) Probationary and Temporary / Fixed Term Contract capacity.

(ii) The Company shall not give any benefit monetary or otherwise in excess of the provisions

of this Agreement to Employees who are not members of the Union.

ARTICLE 11 : LEAVE ON TRADE UNION BUSINESS

(i) An Employee intending to carry out his duties or to exercise his rights as an Officer of the

Union shall apply in writing to the Company for paid leave of absence stating the duration

of and the purpose for which such leave is applied for and the Company shall grant the

application for leave if the purpose of the leave is acceptable to the Company and the

duration of leave applied for is for a period that is no longer than what is reasonably

required for the purpose stated in the application. Provided that the Employee shall not be

entitled to leave with pay for the duration of his absence if the purpose for which he is


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absent from work is not to represent the members of the Union in relation to industrial

matters concerning the Company.

(ii) The Company will give due consideration in granting leave of absence to its Employees

who are officers of the Union to attend approved trade union conference or courses. The

period of leave shall not exceed twenty (20) man-days per year. Provided if such leave is

granted all cost incurred in attending the said conference or courses shall be borne by the

Union.

(iii) For the purpose of this Article, “Officer of Trade Union” means “Officer” as defined under

the Trade Union Act, 1959.

ARTICLE 12: CHECK-OFF

The Company shall continue to deduct Union dues from Employees’ monthly Salary and remit

the same to the Union's Head Office, provided that such Employees have made a request in

writing to the Company to do so.

PART 3 – DEFINITIONS

ARTICLE 13 : DEFINITIONS

In this Agreement, unless there be something in the subject matter or context inconsistent

therewith, the following definitions are made:-

i) Company Doctor

Shall mean a Company employed and/or appointed doctor/clinic or a registered medical

practitioner or a clinic whose name is contained in the list of Panel General Practitioner Clinics

circulated by or for the Company to the Employees from time to time.

ii) Dependent Children

Shall mean children or legally adopted children who have attained the age twenty one (21) years

and below, unmarried and unemployed. Registered handicapped children who are unmarried and

unemployed are recognized under this definition regardless of the age.


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iii) Employee

Shall mean all persons who are employed by the Company on a permanent basis in bargainable

positions as listed in Schedule II which shall include those who are temporarily seconded to other

firms, companies, or any other organization provided their employment remains with the

Company.

iv) Family

Shall include:-

a) A legally married husband or wife; and

b) Dependent Children;

of an Employee.

v)Gender and Number

Words importing the masculine gender shall also include the feminine gender. Words importing

the singular number shall include the plural number and vice versa.

vi) Salary

Shall mean the basic monthly fixed amount of money paid or payable to an Employee in respect

of work performed or services rendered to the Company but does not include bonus, overtime

payments, shift allowance and other allowances of whatever nature.

vii) Service

Shall mean service expressed in years, and calendar months and days where applicable,

viii) Wages

Shall mean the Salary including shift allowance and incentive allowance.

PART 4 – PROBATION

ARTICLE 14 : PROBATION PERIOD FOR NEW EMPLOYEES

(i) The normal period of probation for a new Employee should not be less than six (6) months.

However an Employee’s probation period may be extended for a further three (3) months


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from the original six (6) months period if in Management’s evaluation the initial probation

period is insufficient for Management to gauge his performance and suitability.

(ii) The probationary employment is subject to termination without assigning any reason

thereof by either side giving twenty four (24) hours’ notice in writing to the other.

PART 5 – WORKING HOURS

ARTICLE 15 : HOURS OF WORK

(i) The working hours for shift Employees and regular offshore Employees shall be an

average of forty two (42) hours per week. All other Employees shall work thirty nine (39)

hours per week.

(ii) Where, due to any operational requirements or exigencies, the existing working hours

require changes, both parties shall discuss the proposals with the view to arriving at an

amicable settlement.

(iii) Working hours will be deemed to commence from the time the Employee reports to his

place of work and to terminate at the time he leaves his place of work in accordance with

the schedule or working hours at each work site and as laid down by the Company from

time to time.

(iv) Shift Employees will work in accordance with the hours of work laid down in the

Departmental Shift Schedule, which shall be notified to the Employees.

(v) In order to ensure continuity of operations, all shift Employees shall remain on duty until

relieved by the succeeding shift Employees or permitted to leave by the Supervisors in

charge.

(vi) For the purpose of this Article, ‘shift work’ means work which by reason of its nature

requires to be carried on continuously or continually, as the case may be, by two or more

shifts.


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ARTICLE 16 : REST DAY

(i) Except for regular offshore Employee, every Employee shall be allowed in each week a

rest day to be scheduled by the Company.

(ii) Rest days for shift Employees shall be as prescribed in shift schedule.

ARTICLE 17 : PUBLIC HOLIDAYS

(i) Every Employee shall be entitled to a paid holiday on all gazetted or declared Federal and

State Public Holidays applicable to the locality.

(ii) For 39 hours a week Employee, should a public holiday fall on a designated rest day of

the Employee concerned, the working day following immediately thereafter shall be a paid

holiday in substitution thereof and should a public holiday fall on the designated off day of

the employee concerned, the preceding working day shall be a paid holiday in substitution

thereof.

(iii) For Employees working in states where the working days are from Sunday to Thursday,

the paid holiday in substitution for public holidays that falls on either a rest day or off day

will be the working day immediately thereafter

(iv) Should a public holiday fall within the period when an Employee is on annual leave or sick

leave, the Company shall grant another day as a paid holiday in substitution for such public

holiday or the day substituted hereof.

PART 6 – RATE OF PAY

ARTICLE 18 : OVERTIME WORK

(i) Overtime shall be paid to an Employee when the Employee is requested by the Company

to work in excess of the Employee’s normal hours of work.

(ii) Overtime work performed shall be paid at 1 ½ times the hourly rate.


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(iii) Where a day Employee is required to work through the normal lunch break and no time

off is given in lieu thereof, the period so worked shall be paid overtime at 1 ½ times the

hourly rate.

(iv) The payment of overtime for all Employees shall be computed as follows:-

12 X Monthly Wages Number of hours

worked in excess of

normal hours of work

--------------------------- x x 1 ½

52 x Y

Where Y = 39 or 42 working hours per week as per Article 15.

(v) Overtime shall be totaled up at the end of the month and any balance of more than fifteen

(15) minutes shall be rounded up to one (1) hour.

(vi) When an Employee earns more than RM2,100.00 per month, overtime shall be calculated

as if the Employee’s Wages was RM2,100.00 per month and this ceiling is also applicable

to Articles 19, 20 , 21 and 25 (ii) b).

ARTICLE 19 : WORK ON REST DAY

All Employees except for 2 x 12 hours shift Employees and regular offshore Employees who are

required by the Company to work on their scheduled rest day shall be paid according to the

following:-

(i) For work which does not exceed half of his normal hours of work

- ½ day pay :-

Monthly Wages

--------------------- x ½

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(ii) For work which is more than half and up to his normal hours of work

- 1 day pay :-

Monthly Wages

--------------------- x 1

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(iii) For work which is more than normal hours of work

- 3 times hourly rate of pay for every additional hour worked :-


worked in excess of


--------------------------- x x 3

52 x Y


For Employees who work on 2 x 12 hours shift and regular offshore:-

For 2 x 12 hours shift Employees and regular offshore Employees who are required by the

Company to work on their scheduled rest day, the applicable formula for all situation in (i),

(ii) and (iii) is as follows :-


worked

--------------------------- x x 2

52 x 42

ARTICLE 20 : WORK ON OFF DAY

All Employees who are required by the Company to work on their scheduled off day shall be paid

according to the following:-


worked

--------------------------- x x 1½

52 x Y


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Where Y = 39 or 42 working hours per week per Article 15.

ARTICLE 21 : WORK ON GAZETTED PUBLIC HOLIDAY

All Employees except for 2 x 12 hours shift Employees and regular offshore Employees who are

required by the Company to work on any gazetted public holiday applicable to the Employee’s

place of work shall be paid according to the following :-

(i) For work which does not exceed his normal hours of work

- 2 days pay :-

Monthly Wages

26 x 2

(ii) For work carried out in excess of his normal hours of work, he shall be paid 4 ½

times of his hourly rate of pay for every additional hour worked :-

12 x Monthly Wages

52 x Y x

Number of hours

worked in excess of


x 4 ½


For Employees who work on 2 x 12 hours shift or regular offshore:-

For 2 x 12 hours shift Employees and regular offshore Employees who are required by the

Company to work on any public holiday applicable to his place of work, the formula for

situation in (i) and (ii) above is as follows :-

12 x Monthly Wages

---------------------------- x Number of hours worked x 2.5

52 x 42


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PART 7 – INCREMENT, BONUS AND PROMOTION

ARTICLE 22 : ANNUAL INCREMENT

(i) The Company will grant an Employee the first annual increment on the anniversary date

of his appointment. Subsequent increments will be effective on 1st January of each year

but the payment will be by 30th April backdated to 1st January, provided that the

anniversary date of the Employee falls before the 1st September. If the anniversary date

of the Employee falls on or after the 1st September of the year, the next annual increment

will not be given on the following 1st January, but the 1st January of the next following

year. For example, if an Employee’s anniversary falls on 1st September 2019 thereafter,

the next annual increment will be on 1st January 2021.

In the event of other payment of monies (if any) should become due to the Employee on

the 1st January of the year, for the purpose of calculation, the Company shall first effect

the calculation of the annual increment prior to effecting calculation of any other changes

to the Employee’s Salary.

(ii) The payment of annual increment will be based on Employee’s performance planning and

appraisal (PPA) rating. Employee that meet Company’s requirement shall be paid an

annual increment at a percentage (%) to be determined by the Company.

(iii) An underperforming Employee will not be entitled for the annual increment and will be

subjected to the Company’s Employee Performance Management policy.

(iv) The Company may at its absolute discretion grant merit increment(s) to an Employee.

(v) An Employee whose Salary has reached the maximum of the scale may be paid a lump

sum Performance Allowance based on his performance rating.

ARTICLE 23 : BONUS

(i) The Company shall pay bonus to the Employees on the following basis:


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a) a one (1) month’s bonus equivalent to the Employee’s last drawn basic Salary for

all confirmed Employees for the Employee’s continuous employment with the

Company during the whole of every calendar year (i.e. from 1st January to 31st

December).

b) a prorated bonus to the Employees who obtain their confirmation of Service by or

before 31st December.

c) a prorated bonus to all confirmed Employees who leave the Company prior to 31st

December.

(ii) An Employee who takes leave of absence from work without pay shall not be entitled to

the proportionate share of the bonus payment for the period of such absence.

(iii) No bonus payment shall be made to an Employee if:-

a) The Employee is dismissed by the Company; or

b) The Employee resigns without acceptance by the Company; or

c) The Employee attain rating four (4) for his performance during the given

performance cycle.

(iv) The bonus payment payable to an Employee who retires in accordance with Article 52

(Retirement Contribution Scheme) in respect of the calendar year in which the Employee

retires shall be calculated as if the Employee had been employed for a whole of that year

and shall not otherwise be calculated in proportion to that part of that year for which the

Employee has actually been employed.

ARTICLE 24 : PROMOTION

(i) It is the Company’s policy to promote Employees from within the organization as far as

possible if a vacancy occurs. Where it is not possible to fill a vacancy from within the

organization the Company will recruit other suitable person to fill such vacancy.

(ii) Promotion involves the movement from one grade to another higher grade within the non-

executive scheme. Upon promotion an Employee will be paid an adjustment to the

Employee’s prevailing Salary at the rate of 10% of the midpoint of the grade into which


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the Employee has been promoted effective from the first day of the Employee’s promotion.

Such Employee shall be subject to a probation period for promotion of three (3) months.

In the event the Employee is not confirmed, the Employee shall be reverted to the

Employee’s previous grade and Salary.

PART 8 – ALLOWANCES

ARTICLE 25 : CALL BACK PAY

(i) Call back work is work outside an Employee’s normal working hours and is not continuous

to or an extension of the normal working hours or planned overtime work.

(ii) The rate for call back pay shall be as follows :-

a) Four (4) hours straight time pay at four (4) hours hourly rate of pay calculated

based on Employee’s Wages and not being subjected to ceiling as per Article 18

(vi), or;

b) Overtime rates for the actual hours worked;

whichever is the greater.

(iii) Call back pay shall be treated separately for each occasion on which the Employee is

called back.

(iv) For the purpose of computing overtime payment for such call back, it shall be deemed to

commence from the time the Employee reports for duty at the place of work or work site.

(v) An Employee who is called back to work under this Article shall be reimbursed on his

travelling expenses from his residence to workplace.

(vi) An Employee who is called back to work on his off day, rest day or gazetted or declared

Public Holiday shall be entitled to a minimum of four (4) hours straight pay or the applicable

rate of pay under Article 19, 20 or 21 whichever is greater.


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(vii) When an Employee is required to work on call back more than four (4) hours after

midnight, he shall be given a reasonable period of time off.

ARTICLE 26 : STANDBY ALLOWANCE

(i) a) When an Employee is required to work on standby hours outside the Employee’s

normal working time and while performing his scheduled standby duty the Employee is

not permitted to go anywhere beyond 50 km away from the Employee’s residence, the

Company will pay a standby allowance as follows (refer table below):-

Standby Day Rates

Public Holiday/Rest Day RM 20.00 per day

Normal Day/Off Day RM 15.00 per day

b) An Employee shall only be scheduled to work on standby for up to a maximum of seven

(7) days in any one calendar month.

(ii) An Employee is required to respond to any call and perform any work as instructed by the

Employee’s superior during standby and failure by the Employee to comply with this

requirement may subject the Employee to disciplinary action

ARTICLE 27 : HARDSHIP ALLOWANCE

(i) An Employee who is required to work in areas where normal community facilities are out

of reach shall be paid a hardship allowance of RM 85.00 per day for all grades.

(ii) This allowance will be paid subject to the following conditions:-

a) The Employee is required to live ‘on the job’ in remote onshore areas such as

jungle, exploration, drilling, gas transmission line, and survey sites;

b) The accommodation is in the form of tent or temporary shack;


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c) The Employee is required to stay overnight in places mentioned in (a) and (b)

above for not less than six (6) hours between 6.00 p.m. to 6.00 a.m.

(iii) An Employee who is paid hardship allowance will be entitled to any other outstation

allowances subject to Article 34: Outstation Reimbursement.

ARTICLE 28 : SHIFT ALLOWANCE

(i) Payment of shift allowance is made to compensate for the inconvenience experienced by

an Employee who is required to work on shift in accordance with the schedule approved

by the Company.

(ii) Employees assigned on a temporary or regular basis to work on a rotating shift schedule

will be paid a shift allowance or a proportion for part of a month in accordance with the

following rates :-

2 x 8 hours shift cycle : RM250.00 per month



(iii) In the event that an Employee is taken off from shift work either because of cessation of

such shift work or because of transfer to day work, his shift allowance shall be withdrawn.

The withdrawal of the shift allowance will be effective as from the first day of the month

following the cessation of shift work.

(iv) An Employee working on shift will continue to receive the appropriate shift allowance as

set out in Clause (ii) while:

a) on annual leave, accumulated leave or compassionate leave up to a maximum

period of two (2) calendar months.

b) on sick leave or training up to a maximum period of two (2) calendar months.

c) relieving another Employee on day work on a temporary basis up to a maximum

period of two (2) calendar months.


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ARTICLE 29 : COVERING ALLOWANCE

(i) When an Employee is assigned to perform the full duties and assumes the full

responsibilities of a position graded higher than the Employee’s own Salary grade on a

temporary basis for at least one (1) day during the absence of the substantive holder, he

will be entitled to be paid a covering allowance.

(ii) The rate of the covering allowance shall be calculated on the following daily basis:-

Minimum Salary of

Daily Rate = 25% x Position Grade Covered

----------------------------------

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(iii) For such covering assignment, the Employee will be notified in writing stating the period

and the purpose for which he is placed.

(iv) Employee shall be allowed to cover another Non-Executive position only with the

exception for plant turnaround and shutdown for a limited duration only.

ARTICLE 30 : ACTING ALLOWANCE

(i) When an Employee is assigned to perform the full responsibility of a position graded higher

than the Employee’s own Salary grade on a permanent basis in-lieu of promotion, or

(ii) His current position warrants a review for a higher grade, he will be entitled to be paid an

allowance calculated on a monthly basis until he is confirmed to such graded position, or

until completion of such position review as per the following:-

Monthly Rate = 25% X Minimum Salary of Position Grade the Employee is Acting on

(iii) For such acting assignment, the Employee will be notified in writing of the starting period.


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(iv) In the event that an Employee is taken off from such acting position, this acting allowance

shall be withdrawn.

(v) Employee shall be allowed to perform acting assignment only on another Non-Executive

position and not any other position within the Company.

ARTICLE 31 : SARAWAK/SABAH/ F.T. LABUAN ALLOWANCE

An Employee who is serving permanently in Sarawak or Sabah or F.T. Labuan will be paid

Sarawak/Sabah/F.T. Labuan Allowance equivalent to 15% of monthly Salary.

The above shall make reference to relevant article relating to Sarawak/Sabah/F.T Labuan

Allowance in the respective collective agreements.

ARTICLE 32 : LAUNDRY ALLOWANCE

The Company shall pay RM40.00 per month to each uniformed Employee where the laundry

facilities are not provided by the Company.

PART 9 – REIMBURSEMENT

ARTICLE 33 : MEAL REIMBURSEMENT

(i) A meal reimbursement of RM10.00 will be paid to an Employee irrespective of whether he

works on normal working days, off days, rest days, gazetted or declared Public Holidays:-

a) If he is required to work for two (2) consecutive hours of overtime or more

immediately preceding the commencement of his normal working hours;

b) If he is required to work two (2) consecutive hours of overtime or more immediately

following the end of his normal working hours;

c) If he is called back from home to work for not less than two (2) consecutive hours;

d) If he, being a regular day Employee, is required to work through the normal lunch

period.


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e) If he is required to work two (2) consecutive hours of overtime between 10.00 p.m.

to 2.00 a.m.

(ii) This Article is not applicable to offshore Employees as meal is provided by the Company.

ARTICLE 34: OUTSTATION REIMBURSEMENT

(i) An Employee who is required to work on approved official business travel beyond the 50 km

radius from his base shall be entitled to outstation reimbursement as follows:-

a) Subsistence Reimbursement

An Employee who is required to travel outstation on official duties is entitled to claim

subsistence reimbursement as per the following rates:

Domestic

Business

Travel Rates

Description Rate

Day Trip Rate Day trip rate is applicable when the business

travel does not involve an overnight stay at the

business travel destination.

MYR 100

Overnight

Stay Rate

The overnight stay rate is applicable:

• When the business travel involves an overnight stay at the business travel destination.

• From the first day until the last day of business travel including travelling days, i.e. days that employee had spent for travelling from work base/home residence to the business travel destination, and vice versa.

MYR 140/day

• In the event that employee travels between 2 or more outstation locations during

the business trip, the travelling day rate shall not be applicable as employee is on

outstation.


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• The start and the end times of travelling should be as close as possible to the

business event which necessitated the Employee to embark on business travel;

however, the Employee’s safety and readiness to work should not be compromised

for that matter.

• For the purpose of this Article “subsistence reimbursement” includes meal

reimbursement without any recourse to Article 33.

b) Accommodation Expenses

Accommodation expenses are meant to cover hotel expenses (with receipt) or lodging

(without receipt) by an Employee at the following rates:-

Area Actual amount supported by receipt but

subject to the following maximum per

night

Maximum without

receipt per night

Peninsular

Malaysia/

Sarawak/Sabah &

F.T. Labuan

RM350.00++ RM35.00

• The Company shall reimburse actual amount of hotel rate if Employee stays at

approved hotel as per the list provided by the Company.

c) Laundry Expenses

An Employee shall be entitled to claim laundry expenses with receipt of up to a maximum

of RM20 per day

(ii) Overseas

An Employee who is required to travel overseas on the Company’s business shall be paid

overseas allowance equivalent to that provided for Executive Salary Grade G1.


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ARTICLE 35 : TRAVEL REIMBURSEMENT

(i) An Employee has to obtain prior approval for any business travel and to comply with the

required process relating thereto from the Company.

An Employee who is required to use his own vehicle in the performance of his duties shall

be reimbursed his transport expenses at the following rates:-

a) Motorcar

80 cent per kilometer

b) Motorcycle/Scooter

40 cent per kilometer

(ii) An Employee using other means of transport for travelling on Company’s business shall

be reimbursed the actual expenses or fares incurred, as follows :-

a) Train fare, taxi, bus or e-hailing services.

b) Where such facilities are not available, the Employee may travel by air provided

that prior approval by the Company has been obtained.

(iii) The Company shall reimburse any parking fees, toll and ferry charges incurred by the

Employee during the course of such business trip.

ARTICLE 36 : PERMANENT TRANSFER REIMBURSEMENT

(i) A permanent transfer is a transfer for more than six (6) months duration and outside the

50 km radius from his original work place which involves an Employee having to move his

household and Family.

(ii) An Employee permanently transferred shall be reimbursed as follows:-


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a) Pre-transfer Expenses

Where necessary the Company may require the Employee to make a visit to his

new location prior to taking up his new appointment and in such cases the

Company will pay for the cost of transport including board and lodging as per

Article 34 for a maximum of five (5) days (including travelling time).

b) Lease Termination

An Employee who is living in rented premises under a long lease agreement will

not be transferred until the expiry of the lease. However, if due to exigency of

service, it is necessary to effect a transfer sooner, the Company will reimburse the

Employee up to one (1) month’s rent to compensate for the lease.

c) Transfer Allowance

Transfer

Rate

From Peninsular Malaysia to Sabah,

Sarawak, F.T. Labuan & vice versa.

3.5 months basic Salary or

RM5,000.00 whichever is higher.

Within Peninsular Malaysia or within

Sabah, Sarawak & F.T. Labuan or

between Sabah, Sarawak and F.T.

Labuan.

3 months basic Salary or RM4,000.00

whichever is higher.

d) Travel Expenses

The Company shall pay for the expenses of travelling to the new work place for

Employee, spouse and Dependant Children:-

1) Within Peninsular Malaysia

- Second class train fares for Employee, spouse and Dependant Children.


29

2) Peninsular Malaysia to Sarawak, Sabah and F.T. Labuan and vice

versa or within Sarawak and Sabah

- Economy class air passage for the Employee, spouse and Dependant

Children.

e) Transportation of Household and Personal Effects

The transportation of household and personal effects shall be arranged by the

Company or in the event of such arrangement cannot be made, an Employee is

entitled to claim the expenses incurred in accordance with any of the following rate.

1) Transportation by air not more than 240 kilos each for Employee and

spouse and 120 kilos each for the accompanying children; or

2) Transportation by sea not more than 500 cubic feet for married Employee

or 300 cubic feet for single Employee; or

3) Maximum rental of three (3) 8 ton lorries or two (2) train coaches or three

(3) medium size boats.

The Company will also bear the cost of storage and insurance up to a maximum

load, custom duties, export and import duties that may be levied on the household

effects provided that the items have been bought prior to notification to transfer.

f) Transportation of Motor Vehicle

The Company will reimburse the cost of transportation and insurance charges for

transportation of one (1) motor vehicle provided that the said motor vehicle has

been bought prior to notification of the transfer and shall be subject to the

Employee’s entitlement under his term of employment.

The Company shall not be responsible for the cost of custom duties, export and

import duties that may be levied on the motor vehicle transported by the Employee.


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(iii) This Article is also applicable to Employee whose personal request for transfer is made

after serving at least three (3) years at the current work location, and has been approved

by the Company.

ARTICLE 37 : DRIVING LICENCE REIMBURSEMENT

The Company will reimburse expenses related to the renewal of driving licenses and permit fees

to employees who are required by nature of their job to drive the Company’s vehicles as an

integral part of their duties.

PART 10 – LEAVE

ARTICLE 38 : ANNUAL LEAVE

(i) The Company shall grant the Employees paid annual leave based on the following:-

a) Annual leave entitlement for an Employee who works thirty-nine (39) hours per

week are as follows:-

Service with Entitlement

Company Per Year

Up to 5 years 16 days for each completed year

Above 5 years 22 days for each completed year

b) Annual leave entitlement for an Employee who works forty-two (42) hours per week

(i.e. 3 x 8 hours shift and 2 x 8 hours shift) are as follows:-


Company Per Year




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c) Annual leave entitlement for an employee who works on 2 x12 shift are as follows:-


Company Per Year



d) Annual leave entitlement for regular offshore Employees subject to Offshore

Administrative Guidelines (OAG) are as follows:-


Company Per Year

Up to 5 years 19 days

Above 5 years 26 days

(ii) Leave entitlement for any incomplete year shall be calculated proportionately. Any fraction

of a day's leave greater than one half shall be counted as one (1) day.

(iii) Annual leave shall be taken in the year in which it accrues and the granting of such leave

is always subject to the exigencies of the Company's operations.

(iv) The Company reserves the right to recall any Employee who is on leave or cancel such

leave if the exigencies of the service requires the Employee's service at any time.

(v) If an Employee's Service has been terminated by the Company or if an Employee resigns

before the Employee has taken the annual leave which the Employee is entitled, the

Company shall pay the Employee his rate of pay in respect of every day of such leave.

However, if an Employee has taken leave in excess of his entitlement at the time of

termination or resignation, the Company shall deduct the pay from the Employee his rate

of pay in respect of any such excess leave.

(vi) The Company may reschedule the work of an individual Employee who goes on leave.

Such rescheduling may take place at short notice for the purpose of substituting for

another Employee who is granted leave.

(vii) In order to facilitate the orderly grant of annual leave throughout the year, the Company

may request Employees from time to time to state in advance their preference as to the

dates on which they wish to take annual leave.

(viii) An Employee shall not absent himself from duty for the purposes of annual leave without

the prior approval of the Company.


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ARTICLE 39 : ACCUMULATION OF ANNUAL LEAVE

(i) Shift Employee

Subject to the Company's approval, shift Employees may accumulate a portion of his

annual leave over a period not exceeding two (2) consecutive years of Service provided

that the following conditions are complied with :-

a) That the accumulated annual leave which is carried forward for that particular year

must be utilized within the next two (2) years.

b) That the balance or accumulated leave for that particular year shall be forfeited if

not fully utilized within the next two (2) years.

(ii) Non-shift Employee

For non-shift Employees, the maximum number of leave that could be carried forward into

the following year is ten (10) days and it shall be forfeited if not fully utilized in that following

year.

ARTICLE 40 : COMPASSIONATE LEAVE

(i) The Company will grant paid leave to an Employee under the following circumstances:-

a) Employee’s first marriage in life

- 5 working days

b) Paternity Leave

- 5 working days per occasion

c) Death of a member of

Employee’s Immediate Family


d) Hospitalization of spouse,

Dependant Children, parents or

parents-in-law

- 2 working days per year


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e) Marriage of legal child/children

during one ceremony


Such leave(s) shall not be accumulated.

(ii) In the event an Employee faces any natural calamity arising out of severe flood, fire,

landslide, earthquake, etc., resulting in the Employee’s residence being damaged, wholly

or partially, to the extent that the Employee has to seek temporary shelter elsewhere, the

Employee shall be granted one (1) day paid leave.

(iii) Where a particular case merits additional consideration, the Company may extend the

number of days indicated above and the decisions rendered in such cases shall be based

on the merits of the individual case.

(iv) “Immediate Family” member includes Employee’s spouse, children, parents and parents-

in-law, grandparents, brothers and sisters and legally adopted children.

(v) All application for compassionate leave shall be submitted/ supported by documentary

evidence where applicable.

ARTICLE 41 : SICK LEAVE

(i) Sick leave shall be defined as a period of absence from work and where no hospitalisation

is necessary as is certified by the Company’s Doctor or Government Hospital Authorities.

(ii) An Employee will be granted paid sick leave as follows:-

Without Hospitalisation Up to 22 working days per calendar year

Hospitalisation up to 60 consecutive days per calendar year


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(iii) Sick leave will only be granted on the recommendation of the Company’s Doctor, dental

surgeon or in case of emergency when an Employee cannot be attended to by the

Company’s Doctor, dental surgeon or appropriate Government Hospital Authorities, a

certificate of recommendation by a registered medical practitioner may be accepted. Any

recommendation subsequent to the emergency must be certified by the Company’s

Doctor or dental surgeon.

(iv) Sick leave without hospitalisation in excess of the number of days mentioned in Clause

(ii) (a) above shall be deductible from the annual leave entitlement of the Employee

concerned.

(v) The Company will consider to grant an Employee sick leave in excess of sixty (60) days

on the recommendation of the Company’s Doctor or Government Hospital provided

always the Employee who is on such leave is under the care of the Company’s Doctor or

Government Hospital Authorities.

ARTICLE 42 : SPECIAL PAID LEAVE

The Company may give due consideration to applications for special paid leave for the following

purposes:-

(a) Attending Employee’s convocation day or sitting for an examination which the Company

considers will be of benefit to the Employee in the Employee’s present work or future

assignment with the Company, or

(b) Representing sports as an athlete, youth's program and cultural performance for

Divisional, State, National or International level, or

(c) Attending Outward Bound school, at the discretion of the Company, or

(d) Taking part in national service training programmes.


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ARTICLE 43 : TRANSFER LEAVE

An Employee who is on transfer is entitled to unrecorded leave as follows:-

(i) Within Peninsular Malaysia

Three (3) working days.

(ii) From Peninsular Malaysia to Sarawak, Sabah, F.T. Labuan

Three (3) working days.

This leave shall be taken at the time of transfer.

ARTICLE 44 : INDUSTRIAL ACCIDENT

An Employee who meets with an accident arising out of and in the course of his employment with

the Company, shall be granted:

(i) Leave on full pay up to six (6) months on the recommendation of the Company’s Doctor

or a Medical Officer appointed by the Social Security Organization (SOCSO).

(ii) Coverage of any medical expenses incurred in the treatment and rehabilitation.

ARTICLE 45 : PROLONGED ILLNESS

(i) An Employee who is certified by the Company’s Doctor or Government Hospital Authority

to be mentally unsound, or suffering from illness requiring prolonged treatment such as

tuberculosis, cancer, leukaemia, poliomyelitis, leprosy or cerebral thrombosis shall upon

confirmation of such illness by the appropriate medical authorities be granted up to a

maximum of nine (9) consecutive months leave on full pay and a further nine (9)

consecutive months without pay.

(ii) Provided that no paid leave will be granted unless the Employee undergoes the course of

treatment recommended by the Company’s panel Doctor, registered medical practitioner

or the appropriate Government Hospital Authority


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(iii) In certain instances, the Company, at its sole discretion and based upon the diagnosis

and advice of the Company’s Doctor, may consider, on case by case basis, other

prolonged illness as falling within the provisions of Clause (i) above.

(iv) Upon recovery, the Employee may resume duties on production of a fitness certificate from

the appropriate medical authority. Should he fail to recover sufficiently to the satisfaction of

the Company, the Employee shall be medically boarded out.

(v) For the purpose of this Article, ‘pay’ refers to Salary.

ARTICLE 46 : NO PAY LEAVE

An Employee may be granted leave without pay for a maximum period of twelve (12) months

throughout his Service with the Company provided that he has fully utilized his annual leave or

he is not eligible for paid annual leave subject to the following conditions:

i) Such leave shall be granted at the discretion of the Company having regard to the

Company’s operations.

ii) Failure on the part of the Employee to report for duty upon the expiration of his leave

of absence shall be deemed to be breach of his contract of Service with the Company

and his services with the Company shall be liable to be terminated.

ARTICLE 47 : HAJJ-UMRAH LEAVE

All Muslim Employees may apply for Hajj or/and Umrah Leave subject to the prevailing

Company’s policy on Hajj-Umrah Leave benefit. In the event that Company decides in the future

to revise the benefit less favorable than the prevailing policy, the revised benefit shall be agreed

by both parties.


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PART 11- MEDICAL BENEFITS

ARTICLE 48 : MEDICAL BENEFITS

(i) The Company shall provide medical benefits to the Employee and his Family members as

follows:

Item Coverage

Government Private

General

Practitioner

Full coverage of medical consultation including treatment and

medicines.

Outpatient

specialist

Full coverage of medical

consultation including treatment

and medicines upon

recommendation of the

Company’s Doctor (including

ante-natal and post-natal).

Treatment & medicines provided

by private specialist in Malaysia

upon recommendation of the

Company’s Doctor (including

antenatal and post-natal) subject

to a maximum of RM 5,000 per

financial year.

Hospitalisation

and surgical

treatment

Second class ward charges at a

Government Hospital or in the

event that a second class ward

accommodation is not available,

first class ward charges until

such time when a second class is

available.

Private Hospital subject to a

maximum of RM 50,000 per

financial year(including

Hospitalization required for

maternity-related sickness but

excluding delivery).

(ii) Subject to Section 60F, Employment Act, 1955, the medical benefits which are described

above shall be subject to the following conditions:-

a) Medical benefits shall not include the cost of medical or surgical appliances, and

artificial dental appliances.

b) The Company shall not pay for any optical charges.


38

c) The Company shall not pay for any costs or expenses incurred for treatment in

respect of injuries, illness, disease sustained as a result of participation in wrongful

or dangerous activities on the part of the Employee.

d) The Company shall not pay for any expenses incurred in respect of illness, injury

or disablement arising from any fault, carelessness, indiscretion of the Employee,

the use of drugs not medically prescribed, excessive use of alcohol or any breach

of the peace or disorderly conduct.

e) If and when any form of National Health Service or other type of Government

sponsored medical benefit is introduced, the responsibilities of the Company in

respect of the provision for medical benefits shall be to the extent that the services

and benefits so introduced are adequate, be accordingly reduced.

f) The Company shall not pay for any expenses incurred due to maternity including

miscarriage beyond five (5) occasions during the Service with the Company.

(iii) Other terms and conditions shall be as per the PETRONAS’ Medical Benefits policy and

procedures.

ARTICLE 49 : DENTAL & OPTICAL BENEFITS

(i) The dental and optical benefits are made available to the Employee and his Family

members as per the prevailing Company’s policy on Dental & Optical Benefits.

(ii) Any balance remaining from the maximum reimbursable amount shall automatically lapse at the end of each financial year and shall not be carried forward to the following year.

(iii) In the event that Company decides in the future to revise the benefits to less favorable

than the prevailing policy, the revised terms shall be agreed by both parties.

ARTICLE 50 : MATERNITY BENEFITS

(i) Maternity Leave

(a) Every female Employee shall be entitled to paid maternity leave for a period of

ninety (90) consecutive days (including public holidays) in respect of each

confinement. However, a female Employee shall not be entitled to paid maternity

leave if at the time of her confinement she has five (5) or more surviving children.


39

(b) Absence from work due to miscarriage before the 22nd week of pregnancy shall not

be considered maternity leave but as normal sick leave.

(c) Application for maternity leave shall be supported by a recommendation from the

Company’s Doctor.

(ii) Delivery Expenses

(a) The Company shall provide second class ward charges at a Government Hospital

or in the event that a second class ward accommodation is not available, first class

ward charges until such time when a second class is available.

(b) Alternatively, the Company shall cover the cost of delivery expenses incurred by

the Employees at Private Hospitals, subject to a maximum of RM7,000

regardless of delivery type.

(c) For the purpose of clarity, delivery means the process of birth through normal

delivery or caesarian until discharge.

(d) The Company shall cover delivery expenses up to five (5) occasions during the

Service with the Company.

For the purposes of this provision, any miscarriage before 22nd weeks of pregnancy shall not be

considered as a delivery.

ARTICLE 51 : SPECIAL MEDICAL EXAMINATION

An Employee may be required to undergo special medical examination including X-Ray as

directed by the Company and the expenses for such medical examination shall be borne by the

Company.

PART 12 – RETIREMENT AND OTHER SEPARATION BENEFITS

ARTICLE 52 : RETIREMENT CONTRIBUTION SCHEME

(i) All confirmed Employees of the Company shall be covered under the PETRONAS

Retirement Contribution Scheme (PRCS).


40

(ii) The retirement age for the PRCS are as follows:

Category Age Criteria

(1) Sixty (60) a) For all female Employee;

b) For all male Employee except for category (2)

below

(2) Fifty-five (55) a) For all male Employee who have accepted the

offer of variation of their retirement age from

sixty (60) to fifty-five (55) and received

compensation for the said variation.

Employee who falls under category (1) above can request for optional retirement. Such

request for optional retirement is upon the Employee attaining the age of fifty-five (55) and

above but before he/she attains the age of sixty (60) and subject to the Company’s

guideline on optional retirement.

(iii) The Company shall contribute the following percentage of the Employee’s Salary in

addition to the statutory Employer’s contribution to the Employee’s Employee Provident

Fund (EPF) account:

Years of Service Additional Employer’s

Contribution Rate on Salary

Less than 5 yrs

(upon Employee’s confirmation) 3%

5 – 9 years 5%

10 years and above 7%

(iv) The quantum stated in the table above shall be maintained regardless of the statutory

rate of the Employer’s EPF contribution


41

ARTICLE 53 : GROUP TERM TAKAFUL (GTT)

(i) Every Employee is insured for twenty-four (24) hours in respect of death or total permanent

disablement arising from accidents or diseases. The eligibility criteria and amount of sum

assured shall be as per the prevailing Company’s policy on Group Term Takaful.

(ii) The premium for the Group Term Takaful (GTT) policy is borne solely by the Company.

The beneficiary of the GTT shall be the Company and it is at the sole discretion of the

Company to assign such benefits to the Employee or his beneficiary (ies) in the manner

as the Company deems fit.

(iii) In the event that Company decides in the future to revise the amount of sum assured lower

than the prevailing policy, the amount shall be agreed by both parties.

ARTICLE 54 : RETRENCHMENT BENEFIT

(i) An Employee will be eligible to receive retrenchment benefit if his employment is

terminated by the Company on the grounds of redundancy resulting from any

reorganization or economic measures within the Company.

(ii) In the event of redundancy, the Company shall give a written notice of retrenchment to

the redundant Employee at least three (3) months before the date his employment is to

be terminated. The Company will adopt the principle of “last in first out” except where,

after due consideration in the opinion of the Company, the Employees who might

otherwise be laid off, is better qualified to meet the Company’s requirements.

(iii) An Employee whose employment is terminated on the ground of redundancy shall be paid

the lump sum of the retrenchment benefits in accordance with the following formula:

1.5 x Last Drawn Basic Salary x Number of Years of Service

or

12 x Last Drawn Basic Salary


42

whichever is higher.

(iv) An Employee receiving retrenchment benefits shall forfeit all seniority right of re-

engagement and if such Employee is at any time thereafter be re-employed by the

Company, he shall be treated as a new Employee for all purposes.

(v) The bonus payment payable to an Employee who is retrenched in respect of the calendar

year in which he is retrenched shall be calculated as if he had been employed for a whole

of that year and shall not otherwise be calculated in proportion to that part of that year for

which he has actually been employed.

PART 13 – GRIEVANCE PROCEDURE

ARTICLE 55 : SETTLEMENT OF GRIEVANCE

Grievances shall be settled according to the following procedure with the aim of reaching earliest

agreement at the lowest possible level and of maintaining continuous good relations between

both parties.

For the purpose of this Article, a grievance is defined as a complaint by an Employee concerned

which the Employee brings to the attention of the Employee’s immediate superior and which is

subsequently not resolved to the satisfaction of the Employee.

The procedures to be followed in addressing any grievance shall be as follows:-

i) Settlement of Grievance at 1st Level

If an Employee has a grievance, he may submit Grievance Form to his immediate superior. Once

Immediate Superior received the Grievance Form, he shall organize a formal meeting within

seven (7) working days.


43

At this stage, if the Employee so wishes, the Employee can be accompanied by Union branch

representatives. The Supervisor may be accompanied by representatives from Human Resource

Management Department (HRMD) of the respective OPU/HCU.

ii) Settlement of Grievance at 2nd

Level

If a grievance submitted by the Employee is not resolved within a period of seven (7) working

days after it has been brought up at 1st Level, the Employee shall have the right to escalate the

grievance to 2nd

Level with the Head of Department. Once the Head of Department received the

Grievance Form, he shall organize a formal meeting within seven (7) working days.


representatives. The Head of Department may be accompanied by representatives from HRMD

of the respective OPU/HCU.

iii) Settlement of Grievance at 3rd

Level

If a grievance submitted by the Employee is not resolved within a period of seven (7) working

days after it has been brought up at 2nd

Level, the Employee shall have the right to escalate the

grievance to 3rd Level with the Head of HRMD. Once the Head of HRMD received the Grievance

Form, he shall organize a formal meeting within seven (7) working days.


representatives. The Company may be assisted by representatives of the Company's Head Office

and the Union Branch by representatives of the Union Headquarters.

iv) Settlement of Grievance at 4th

Level

If any grievance remains unsettled after a formal meeting or any subsequent formal meetings at

the 3rd Level after a period of seven (7) working days, it shall then be brought up for discussion at

a formal meeting with the Group HRM and Union Headquarters representatives.


44

Where the grievance remains unsettled, it shall be referred within sixty (60) days by either party

to the Ministry of Human Resources. Subject to the immediate requirements of the Company's

operations, neither party shall take any unilateral action to the detriment of the other party during

the period the grievance is being processed in accordance with the procedure set out herein.

(v) Extension of Time Limits

In all steps of the grievance procedure where a time limit is specified, such time limit shall only be

extended by mutual agreement by the Employee or Union representative, and the Company.

PART 14 – FINANCING

ARTICLE 56 : VEHICLE FINANCING SCHEME

1) Vehicle Financing Scheme under the Islamic principles is provided to eligible

Employees as follows:-

a) Motorcar

(i) Motorcar financing under the Islamic principles is provided to all

confirmed permanent Employees of Job Grades NE4 - NE6 and

NT3 - NT5 only.

(ii) The maximum financing entitlement is RM38,000.00 (Ringgit

Malaysia Thirty Eight Thousand Only).

(iii) The profit rate will be at 4% per annum, calculated at monthly rest.

(iv) The selling price shall be repaid by equal monthly installments

deductible from the Employee’s Salary as follows:

a. for “New Motorcar”


45

over a period not exceeding eighty-four (84) calendar months

(7 years) but in no event shall it be extended over a period

exceeding the Normal Retirement Age of the Employee.

b. for “Used and Reconditioned Motorcar”

selling price must be repaid by equal monthly installments

deductible from the Employee’s Salary over a period not

exceeding sixty (60) calendar months (5 years) or the period

up to the Normal Retirement Age, whichever is earlier.

b) Motorcycle

(i) Motorcycle financing under Islamic principles is provided to all

confirmed permanent Employees.

(ii) The maximum financing is RM6,000.00 (Ringgit Malaysia : Six

Thousand Only)

(iii) The profit rate will be at 4% per annum, calculated at monthly rest.

(iv) The selling price must be repaid by equal monthly installments

deductible from the Employee’s Salary over a period not exceeding

forty-eight (48) calendar months (4 years) both for “new” and “used”

motorcycle.

2) Other terms and conditions as per the Vehicle Financing Scheme policy and procedure

shall apply.

ARTICLE 57 : HOME FINANCING SCHEME

(i) A Home Financing Scheme may be granted to an eligible Employee for any of the following

purposes:-


46

a) to purchase a house and the land thereof excluding shop houses;

b) to purchase a residential land with the intention of building a house thereon.

(ii) The amount of the Home Financing entitlement shall be equivalent to ninety (90) times of

the Employee’s Salary subject to a maximum of RM200,000.00 (Ringgit Malaysia : Two

Hundred Thousand Only).

(iii) An interest (for conventional loan) or profit (for Islamic Financing) at the rate of 3.5% per

annum, calculated at monthly rest, shall be charged on the Home Financing. The

repayment period must be by equal monthly installments deductible from the Employees’

Salary over a period not exceeding three hundred (300) months or twenty five (25) years

or a period up to the Normal Retirement Age, whichever is earlier.

(iv) Other terms and conditions as per the Housing Loan/Home Financing Scheme policy and

procedure shall apply. In the event that the Company introduces a new financing scheme

to replace the current Home Financing Scheme, the new financing scheme shall

supersede the current and all new applications shall be subject to the new scheme.

PART 15 – OTHERS

ARTICLE 58 : TOOLS AND WORKING EQUIPMENT

(i) The Company shall make available all appropriate tools, equipment, personal protective

equipment and other accessories that are necessary for the daily work or operations.

(ii) Such tools, equipment, personal protective equipment and accessories shall always

remain the property of the Company and the employee will be responsible for their

safekeeping and proper use.

(iii) An Employee provided with such tools, equipment, personal protective equipment and

other accessories shall use them as required by the Company's safety and operating

procedures, regulations and instructions.


47

ARTICLE 59 : UNIFORM

(i) The Company will provide uniforms to Employees whose work, in the opinion of the

Company, involves regular contact with the public or as an identification or safety.

Uniforms may also be provided to Employees in other positions because of the special

nature of their work and to such other positions as may be determined by the Company

from time to time. The design and type of the uniforms shall also be determined by the

Company.

(ii) For the purpose of this Agreement such Employees shall be defined as 'Uniformed

Employees'.

(iii) The Company will provide each Uniformed Employee with three (3) pairs of uniforms per

year and subsequent supply of uniforms shall be on the 1st of July every year. The

Company will provide uniforms to the Uniformed Employees upon reporting for duty for

employment. Subsequent supply of uniform will be on 1st July of each year provided that

the reporting date of the Uniformed Employees falls before the 1st March. If the reporting

date of the Uniformed Employees falls on or after the 1st March of the year, the next supply

of uniform will not be given on the following 1st July, but the 1st July of the next following

year. For example, if a Uniformed Employee’s reporting date falls on 1st March 2019

thereafter, the next supply of uniform will be on 1st July 2020.

(iv) The Company shall provide two (2) pairs of safety shoes or boots and three (3) pairs of

socks per year to each Uniformed Employee.

(v) A Uniformed Employee provided with uniforms shall wear them at all times whilst on duty.

ARTICLE 60 : DISABLED EMPLOYEE

The Company shall give consideration to provide alternative employment on the basis of the

Employee's capabilities who suffers disability due to an accident or illness incurred during the

course of his employment.


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ARTICLE 61 : FESTIVAL ADVANCE

(i) The Company will grant relevant festival advance to Employee equivalent to one third (1/3)

of the Employee’s monthly basic Salary on the following occasions:-

(a) To each Muslim Employee not less than seven (7) days before Hari Raya Aidil

Fitri.

(b) To each Chinese Employee not less than seven (7) days before Chinese New

Year.

(c) To each Hindu Employee not less than seven (7) days before Deepavali.

(d) To each Christian Employee not less than seven (7) days before Christmas.

(ii) The said advance shall be recovered by the Company from the Employee in and up to

maximum of six (6) equal consecutive monthly installments.

(iii) The first installment shall commence at the end of the following month in which the

advance is paid.

ARTICLE 62 : HOME LEAVE PASSAGE

(i) The following categories of Employees are entitled to visit their home town once a year.

a) Employees originated from Peninsular Malaysia who are appointed in Peninsular

Malaysia and transferred to Sabah, Sarawak & Labuan.

b) Employees originated from Peninsular Malaysia who are appointed in Sabah, Sarawak

or Labuan and working in Sabah, Sarawak and Labuan

c) Employees originated from Sabah, Sarawak and Labuan who are appointed in Sabah,

Sarawak or Labuan and transferred to Peninsular Malaysia,

d) Employees originated from Sabah, Sarawak and Labuan who are appointed in

Peninsular Malaysia and working in Peninsular Malaysia.


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(ii) The Home Leave Passage shall be provided to the Employee, his or her Spouse and

Dependant Children.

(iii) The Company shall bear the actual cost of return airfares from the major airport town

nearest to his posting to the major airport town nearest to his hometown. The Company

shall also reimburse the actual cost of transportation from his posting to the nearest major

airport and from the airport nearest to his hometown to his hometown. This provision

applies equally for the return trip.

(iv) Where the Employee is required to spend a night en-route, a commuted allowance to

cover lodging and subsistence shall be paid at the following rates :-

Commuted Allowance Per Night

Employee - RM60.00

Spouse - RM36.00

Dependant Children - RM18.00 per child

This provision applies equally for the return trip.

(v) An Employee is eligible for this benefit anytime within each anniversary period of his

transfer or appointment.

(vi) The provision of Home Leave Passage shall not apply to Employees whose transfers are

made on personal request.

(vii) An Employee whose Spouse and Dependant Children do not live with him at his place of

posting, the Company may instead consider paying the actual cost of return airfares for

his Spouse and Dependant Children to visit him.

(viii) The minimum period of Home Leave Passage required by an Employee to qualify for this

benefit shall be seven (7) calendar days, which shall be deducted from the Employee’s

annual leave entitlement.


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(ix) Home Leave Passage shall be properly scheduled to ensure that the Company’s operation

is not adversely affected. In this respect, the Company’s decision as regards timing of the

leave shall be final.

(x) If an Employee does not utilise the Home Leave Passage entitlement for a particular year

(Year 1) then that year’s entitlement could only be carried forward to the next year (Year

2) subject to the approval of the Head of Department. This benefit shall lapse if the

Employee does not utilise this carry forward benefit in year 2.

(xi) For the purpose of this Article, the following words shall mean:

a) Spouse – one legally married husband or wife to the Employee who is registered with

the Company;

b) Dependant Children – children or legally adopted children who have attained the age

twenty one (21) years and below, unmarried and unemployed. Registered

handicapped children who are unmarried and unemployed are recognized under this

definition regardless of the age.


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PART 16 – SCHEDULES

SCHEDULE I INDIVIDUAL GRIEVANCE HANDLING FLOW CHART


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Grievance Form

Grievance Description

(Please state facts and be specific as to the date, place and individuals involved. Please attach additional pages if necessary)

What specific solutions do you suggest in resolving your grievance?

_________________

Date:

Please circle the grievance level

Grievance Level I II III IV

Date Submitted

Name :

Staff No. :

Position Title :

Department/OPU :

Work Location :


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Grievance Form Please circle the grievance level

Grievance Level I II III IV

Date Completed

Decision and Solution:

(Please attach additional findings and decision if any)

Responded by: Received by:

_________________ ___________________

Name: Name:

Position: Date:

Staff Number: Please indicate your acceptance on the decision

Date Agree

Disagree of the findings above


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SCHEDULE II

POSITION TITLES IN PETRONAS & ITS SUBSIDIARIES

The following definitions shall be used in determining the right position titles:-

Non-Executive Non-Technical

POSITIONS DEFINITIONS

JG NENT

NE1 Clerk III

NE2 Clerk II

NE3 Clerk I

NE4 Supervisor III

NE5 Supervisor II

NE6 Supervisor I

Non-Executive Technical

POSITIONS DEFINITIONS

JG NET

SS DS MT

NT1 Technician V (SS) Technician V (DS) Technician V (MT)

NT2 Technician IV (SS) Technician IV (DS) Technician IV (MT)

NT3 Technician III (SS) Technician III (DS) Technician III (MT)

NT4 Technician II (SS) Technician II (DS) Technician II (MT)

NT5 Technician I (SS) Technician I (DS) Technician I (MT)


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Position Titles (The list is not exhaustive and subject to change)

SKILL GROUP POSITION TITLES SUB SKILL GROUP

GROUP CODE

Finance & Account (NENT)

401 Clerk III Account Payable Account Receivable Budget Taxation Cashier Credit Control General Ledger Audit Order Domestic Operation Foreign Operation Joint Venture Production Allocation System Fixed Account Debt Management Claim & Advance Investment Fund Management Treasury

Clerk II

Clerk I

Supervisor III

Supervisor II

Supervisor I

Business Planning (NENT)

402 Clerk III Research Planner Business Evaluation

Clerk II

Clerk I

Supervisor III

Supervisor II

Supervisor I

Marketing & Trading 403 Clerk III Sales Marketing Pricing Promotion Operation Networking Retail

(NENT) Clerk II

Clerk I

Supervisor III

Supervisor II

Supervisor I

Supply Chain Management (NENT)

404 Clerk III Procurement Depot/Store Warehousing Coding Inventory Contract Management Licensing Purchasing Planning Logistic Aviation Depot Terminal Warehouse Real Estate

Clerk II

Clerk I

Supervisor III

Supervisor II

Supervisor I


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GROUP CODE

Legal (NENT) 405 Clerk III Debt Recovery Secretariat Legal Loan & Conveyancing Para Legal Litigation Compliance Audio Visual & Document Management Resource Development HCU’s & Property Intellectual Property Management Education Joint Venture Companies Wholly Owned Subsidiaries

Clerk II

Clerk I

Supervisor III

Supervisor II

Supervisor I

HRM (Human Resource Management) (NENT)

406 Clerk I Salary & Benefit Industrial Relations HRIS Development Planning Talent Sourcing Training

Supervisor III

Supervisor II

Supervisor I

Administration/Corporate Affairs (NENT)

407

General Administration 407.1 Clerk III Office Services Communication Library Community Relation Media & Video DMS Radio Operator Ableseaman Convention Centre PERMATA Sport Facilities Office Facilities Guest House Gallery Heavy Vehicle

Clerk II

Clerk I

Supervisor II

Supervisor I

Telephone Operator

Driver

Corporate Affairs 407.2 Visualiser Gallery Event Management Building Maintenance Advertising Merchandising

Photographer

Receptionist

Videographer

Teacher

Assistant Teacher

Graphic

Quality Management 408


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GROUP CODE

Geoscience (NET)

409 Technician V (SS)

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Petroleum Engineering (NET)

410 Technician V (SS) Laboratory Drilling Well Services

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Technician (DS)

Civil/Structural Engineering (NET)

411 Draughtsman IV Civil Structural Maintenance Management Construction Pipeline Fabrication

Draughtsman III

Draughtsman II

Draughtsman I

Technician V (SS)

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Mechanical Engineering (NET)

412 Technician V (SS) Fitter Welder Crane Rotary Static Turbo Machinery Pipeline Maintenance Compressor Turnaround Reliability (RCM) Scheduling & Planning

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Technician (MT)

Technician (DS)

Electrical Engineering (NET)

413 Technician V (SS) Chargeman Maintenance

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Technician (MT)

Technician (DS)


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GROUP CODE

Instrument Engineering (NET)

414 Technician V (SS) Electrical Control Production Pipeline Machinery Equipment Depot Fuel Farm

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Technician (MT)

Maintenance & Inspection (NET)

415 Technician V (SS) Static Rotary Pipeline Plant Equipment

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Technician (MT)

Process Technology/Operations (NET)

416 Technician V (SS) Boiler Laboratory Panel Field Process Utilities ADTS Bagging Production Front End Mid End Back End Terminal

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Technician (MT)

Technician (DS)

HSE (Health, Safety & Environment) (NET)

418 Technician V (SS) Fireman Safety Environment Health Occupational Health Industrial Hygiene

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Technician (MT)

Medical Assistant

Project Management (NET)

419 Technician III (SS) Planning & Scheduling Plant Turnaround

Technician II(SS)

Technician I (SS)

Maritime (NET)

420 Technician V (SS) Mooring Vessel Traffic Controller Loading Marine Operation Helsman Terminal Floating Storage

Technician IV (SS)

Technician III (SS)

Technician II(SS)

Technician I (SS)

Technician (MT)


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SCHEDULE III

SALARY RANGE

PETRONAS & ITS SUBSIDIARIES

Non-Executive Non-Technical

GRADE MINIMUM (RM) MIDPOINT (RM) MAXIMUM (RM)

NE1 1,600.00 2,400.00 3,200.00

NE2 1,800.00 2,800.00 3,800.00

NE3 2,100.00 3,300.00 4,500.00

NE4 2,700.00 4,100.00 5,500.00

NE5 3,100.00 4,800.00 6,500.00

NE6 3,600.00 5,600.00 7,600.00

Non-Executive Technical

GRADE MINIMUM (RM) MIDPOINT (RM) MAXIMUM (RM)

NT1 2,000.00 3,100.00 4,200.00

NT2 2,500.00 3,800.00 5,100.00

NT3 3,100.00 4,700.00 6,300.00

NT4 3,600.00 5,600.00 7,600.00

NT5 4,200.00 6,400.00 8,600.00

COLLECTIVE AGREEMENT BETWEEN PETROLIAM NASIONAL …

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