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MOZAMBIQUE

HUMAN CAPITAL

TERMINATION

1. Overview

This Policy sets out the necessary guidelines within which the services of employees can be terminated.

2. Employee-Originated Terminations

2.1 Expired fixed-term contracts, unless terms are extended or a new contract is generated.

2.2 Resignation, subject to the following conditions:

• The requisite notice period must be given in writing. However, illiterate employees may provide notice verbally to the relevant line Manager who must record the request

• The effective resignation date must be in accordance with the agreed notice period as stipulated in the Letter of Appointment or Employment Contract. If such period has not been stipulated, then resignation shall require prior notice of fifteen (15) days, where the period of service is greater than six months but not more than three years; or thirty (30) days, where the period of service is greater than three years

• The notice period may be reduced by a collective agreement. However, this must not be less than two (2) weeks for an employee who has worked for twelve (12) months or more

• Notice may not be given during leave or run concurrently with leave, except sick leave.

2.3 Absconsion

• An employee who takes unauthorised leave for a period of fifteen (15) working days without notification is considered absconded

• An absconded employee may be dismissed on account of misconduct after due process is followed

• There is a strict no-work-no-pay rule for unauthorised leave. An employee who is absent from his / her duties without proper authorisation and notification after the lapse of previously authorised leave may face disciplinary action and be considered a deserter.

2.4 Retirement

Please refer to the Retirement Funds Policy for further information pertaining to retirement age, benefits and applicable conditions.

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MOZAMBIQUE

3. Termination of Services by Grindrod

3.1 Compulsory Retirement

• An employee is obliged to retire at the compulsory retirement age as stipulated by the Labour Law nr 23 / 2007 of August 1 and other applicable legislation unless otherwise required to support the ongoing operations of Grindrod through a fixed term contract

• Notice of retirement is to be served three (3) months prior by the employee in order to expedite benefit pay-outs

• Management should examine positions in which employees are approaching retirement age and make the appropriate succession plans

• Please refer to the Retirement Fund Policy for further information pertaining to retirement age, benefits and conditions applicable.

3.2 Incapacity

Please see the Incapacity Policy.

3.3 Dismissal

Guidelines to consider investigating dismissal:

• Continuous decline in performance and unresponsiveness to support in delivering job functions. Please reference the Performance Management Policy

• Inability to adapt to changing work requirements and changes in the job (this excludes attitudinal orientation)

• Disposition which impedes performance and the team’s performance

• The investigation into dismissal must show that the work performance of the employee concerned has decreased to such an extent that discharge is unavoidable and in the interests of Grindrod

• Any recommendation on dismissal must be fully investigated and motivated by the relevant Manager and authorised by the Divisional Chief Executive or Chief Executive Officer, depending on the level of employee and where the employee is based. No employee may be dismissed before disciplinary proceedings have been instituted and conducted, in accordance with the provisions of the Labour Law.

• For matters relating to misconduct please refer to the Disciplinary Policy.

3.4 Retrenchment

Please refer to the Retrenchment Policy.

3.5 Death

Please refer to Grindrod’s Funeral Policy.

3.6 Supervening Impossibility of Performance

• When an employee is unable to render services due to supervening actions or factors, Grindrod will treat each case on its own merits, regarding termination payments, benefits and paperwork

• Examples of such supervening actions or factors include, but are not limited to, lengthy imprisonment or being prevented from returning to the Company or the country, through civil or military action or acts of nature for a lengthy period or permanently.

3.7 Consensual Termination of Employment

In certain cases, the employee and the Company may agree to end the employment contract on terms negotiated. The negotiation will also dictate the package, effective date of termination and notice period requirements.

TERMINATIONHUMAN CAPITAL

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MOZAMBIQUE

4. Termination Procedure

4.1 In the event of a termination, the relevant forms and checklists must be completed. Payment will not be released unless the termination checklist is completed.

4.2 The relevant line Manager must submit the resignation letter and acceptance thereof, together with termination form to the Human Resources Department.

4.3 The employee concerned must complete an exit interview with the Human Resources Department and / or complete an exit questionnaire.

4.4 Grindrod reserves the right to conduct a medical exam at exit.

4.5 Relevant Manager to sign off final leave credits for the employee, confirming that all leave recorded for the preceding month is correct and that all leave taken has been processed.

4.6 Management is responsible for ensuring that all Grindrod property has been returned and, if not, must inform the Human Resources Department in writing of the amount to be recovered, per item. This may include advances, costs associated with mobile phone and mobile Internet access through 3G, petty cash, private telephone calls, etc.

4.7 Termination pay will include notice pay, if applicable, overtime and outstanding leave and will be paid at the end of the month and / or within seven (7) days from the end of the month in which the termination was applied, subject to the completion of necessary documentation.

4.8 Human Resources Department will issue a certificate of service to the employee concerned.

TERMINATIONHUMAN CAPITAL