rough draft human resource policies pertaining to human resource management

Human Resource Policies and Procedures Pertaining to Human

Resource Management

Introduction

The Institute espouses the following interlinked values pertaining to the management and development

of people within it for the purpose of reaching a sustainable peak performance at work for the best

interest of the Institute as a whole:

Trust

The Institute recognizes that trust is critical in the working of human relationship. Enforcement

of rules would mean little without the presence of trust in personal and professional

relationships. Therefore, the Institute espouses trust as one of its primary values which forms

the basis for sustainable and healthy professional relationships at work. It believes that trust

begets trust and propagates immediate improvement in relationships and work results.

The underlining mechanism of trust is the continual exchanges of good will and good faith that

reciprocate each other and build upon relationships to even greater heights.

The Institute recognizes that each member of the staff and faculty is intrinsically motivated to

perform their best given the prevailing circumstances and conditions. Thus, it is within the

Institute’s responsibility to try to set and maintain the best possible conditions for work at the

workplace.

Openness

A culture of trust would not be possible without the cultivation of openness at work. Openness

through the appreciation of feedback and criticism creates an environment that relieves

unnecessary tensions and miscommunications that could otherwise hinder peak performance

delivery and stale the work environment to the long-term detriment of the Institute. The

Institute believes that everyone matters and everyone has a voice because everyone

contributes, small or big, to the greater good of the institute as a whole.

Empowerment

The Institute believes that individual employee should be empowered as much as possible and

viable because empowerment creates greater sense of responsibility, commitment and job

satisfaction that correlate positively with the quality of work.

Empowerment may refer to entrustment of greater discretion on the part of employee or

greater degree of decision making power pertaining to one’s professional responsibilities and to

training and other professional development activities that would directly and indirectly

underpin one’s performance at work.

Accountability

The Institute believes that accountability should go in hand with empowerment and is a critical

component in the cultivation of trust at the workplace. Claiming ownership of one’s work

irrespective of the outcome should be considered as principle work ethics in professional life.

Professional fulfillment and growth

The Institute recognizes that at the end of the day, fulfillment at work would probably come

before even the amount of salary one is making, especially in the long run. Job satisfaction ranks

as one of the most prevalent factor in the delivery of peak performance and maintaining high

job retention. As more people resign, the institute would suffer investments in its human capital

development.

The door does swing both ways but if the institute had problems maintaining its best people the

institute would suffer greatly and it would indicate a serious larger issue within the management

as a whole.

Highly competent people are not easy to replace, despite widespread beliefs to the contrary and

it is the view of the Institute to attempt to cultivate a fulfilling work condition for all employees

wherever viable. Employees’ fulfillment at work is in line with the Institute’s best interests.

Arguably, job satisfaction ranks as one of the most prevalent reasons for high productivity and

loyalty. Therefore, the Institute recognizes that satisfied employees are likely to be ones who

are most productive and loyal. In practice, the levels of professional growth and fulfillment

from one’s work could be indicative of one’s job satisfaction. Thus, the Institute places

concern that all employees should be given fair opportunity to grow professionally to the

realization of their best potentials for the sake of the Institute and their careers/professional

lives. Fulfillment although could primarily be an internal driver, could also be propagated

through more humanistic management approaches that offer more flexibility and tolerance

and view employees as valuable resources to be groomed for bigger responsibilities.

The HR values acronym

extraOrdinary-FEAT

F: Fulfillment

E: Empowerment

A: Accountability

T: Trust

Extra-O: Openness

Employment status

Based on the nature and bond period of employment there are 4 statuses pertaining to an employment:

1. Probationary employment: a new recruit for indefinite employment goes through a three month probationary period. A probationary employment should not exceed a maximum 3 month period and a performance appraisal would be conducted to decide on the more permanent status of the new recruit in question near the end of the probationary period.

2. Indefinite employment: Employees who have met the set prerequisites might be offered an indefinite employment status with the Institute to receive remuneration on monthly basis in exchange for rendered services for an indefinite or substantially long period of time.

3. Definite employment: Employees who have met the set prerequisites might be offered a definite employment based on written agreement (contract) and receive remuneration in

exchange for rendered services for a preset period of time. Contract renewal or termination would be governed by the quality of rendered services and other considerations as stipulated in the written agreement (contract).

4. Part-time employment: Employees who are deemed qualified to render certain services but are either unable to render full time services to the Institute or are unable to be offered a permanent nor contract-based employment for some reason might be offered a part-time employment status with the Institute. A part-timer employee would devote a fraction of full-time work hours to render specified services to the Institute.

Job grade

Job grade is a system that defines the career ladder within the institute that encompasses the level of seniority and authority recognized at the Institute. The following description doesn’t pertain to the career ladder of members of the faculty (which could be found in the Faculty Handbook):

1. Clerical position: constitutes staff or administrative positions within the institute2. Middle management (supervisors): that constitutes assistants to heads of departments and

heads of units3. Senior management (head of departments/managers): that constitutes the heads of

departments4. Top management (top executives): that constitutes the President, CEO, COO, and Directors

Note that some departments may forgo the middle management hierarchy altogether, depending on their specific needs.

Statement of Responsibilities 111

The Institute as the employer

The Institute bears the following responsibilities with regard to the people it has pooled under its employment:

1. Provide decent remuneration in exchange for rendered services provided by the employees to the Institute in accordance with related government regulations.

2. To ruminate and act for the wellbeing of its employees in the event of work related accidents based on its discretion and good will.

3. Implement work safety procedures in accordance with applied regulations.4. To assign employees in accordance with their abilities and skills as well as the

institutional needs.

The employees as the employed

The employees as the employed bear the following responsibilities to the Institute as the employer:

1. To carry out orders or duties with care and a sense of responsibility, decent in quality in accordance with one’s job description and other tasks in accordance with written or spoken instructions from one’s superior for the benefit of the Institute.

2. Achieve the predetermined goals in accordance to one’s position at work.3. In performing one’s responsibilities at work, an employee is required to follow the set out

work procedure and comply with applied regulations including ones related to workplace health and safety concerns.

4. To comply with applied employee guidelines and the institutional regulations that refer to the state employment act.

5. Provide full and accurate disclosure to the Institute regarding one’s performance at work pertaining to one’s responsibilities at work.

6. To keep confidential all privileged information gotten from one’s position at work and from one’s association at work from external parties.

7. To care and check for items belonging to the Institute that are entrusted to him/her. Negligence of the entrusted items might be processed by the Institute based on its authority and discretion by adhering to presumption of innocence.

8. To give feedback to the Institute through one’s direct superior or other channels appointed for it.

9. To safeguard the good name of the Institute.10. To maintain the discipline and personal hygiene at the workplace and adhering to the ethics

and morals of employment.11. Avoiding abject and threatening words and actions to fellow employees, both superior and

subordinate.12. Respecting fellow employees, direct and indirect superiors, students, and guests at the

workplace.

Remuneration 111

Remuneration refers to compensation received in exchange for rendered services (work done).

Remuneration of rendered services is provided on monthly monetary basis. Payment is made at the end of each month for services rendered during the month via bank transfer.

The amount of remuneration is decided based upon the job value occupied by each employee by considering the size of responsibilities, level of performance, expertise, hierarchy of the position, risk factors and the national standards of pay.

Re-evaluation of the amount of remuneration is done annually near the end of the year (August-November) based on the levels of dedication, performance, character (integrity) and work achievement of respective employees during the year.

Basis for Acceptance 111

Objective professionalism forms the basis for acceptance to work at the Institute. This means a person

who has met the set qualifications for an open position or who has demonstrated reasonable ability and

character to fulfill his/her responsibilities for the position he/she is applying for is acceptable to occupy

the position. Absence of evidence to the contrary however is not taken as positive evidence that one is

capable to perform the responsibilities tied to the position. Successful appraisal during the probationary

period signifies the Institute’s confidence for the new recruit to occupy the position he/she is applying

for and be entrusted with the responsibilities that the position entails.

Reasonable ability to fulfill one’s intended responsibilities covers qualifications or experience as well as

physical, mental, and cognitive fitness to fulfill the intended responsibilities properly.

Probationary Period

Commonly, a new recruit for indefinite employment is made to go through a three month probationary

period. Each new recruit upon acceptance will be introduced a three month probationary period from

the start.

During the probationary period, the institute has the right to end employment at any time with a month

advance termination notice.

At the end of the three month probationary period, a review meeting will take place between the new

recruit, his/her immediate supervisor along with the possibility of higher level supervisor in addition to

an HR officer. In addition to quarterly probationary performance assessment, the meeting will also

decide on the status of the new recruit and one of the following outcomes could happen, based

primarily on the performance assessment of the new recruit during the period and the suitability of the

recruit’s personality to the Institute’s culture:

1. The probationary period is extended for another three month (if the new recruit was initially

introduced to a three month probationary period)

2. The new recruit is offered a contract based employment

3. The new recruit is offered a full time employment

4. The new recruit is being let go (effective at the end of three month probationary period)

The maximum probationary period for a new recruit is three months and not more as governed by the

Indonesian Employment Act No. 13 Year 2003. six months and not more (2 times of 3 month

probationary period)

The review meeting should discuss on the performance of the new recruit during the probationary

period by taking into consideration the opinion of the new recruit himself/herself and that of his/her

immediate supervisor or higher level supervisor that the new recruit has a direct reporting relationship

to. Self-assessment and that of the recruit’s superior’s ought to be done in written format prior to the

meeting and the content discussed during the review meeting. The purpose of the review meeting is to

align and clarify the expectations of the management and the new recruit himself/herself over his/her

job responsibilities and the expected levels of performance. In addition, it should be made clear that any

feedback given both by the management or the new recruit himself/herself should be made in a

constructive manner in order to further develop both the management and the new recruit’s

professionalism and to respect both parties irrespective of the outcome of such a meeting.

Definite Employment

The terms governing a definite employment ought to be stipulated in a written agreement referred to as

employment contract. Definite employment is meant for rendition of services which could be completed

within specified period of time of not more than three year period.

The initial period of contract should not exceed two years and is extendable, once, by another year in

accordance with the Indonesian Employment Act (Act No. 13 Year 2003).

Internship Article 22

Internship falls within the definite employment category. However the purpose of internship is less of

rendition of service but leans toward training and development of the interns themselves.

Terms governing an internship ought to be stipulated in an internship agreement that should specify the

period of internship and the rights as well as responsibilities of the intern and Institute.

Internship entails the issuance of certificate by the Institute upon completion of the stipulated period.

Standards of Conduct

Equal Opportunity Employment

Indonesia International Institute for Life Sciences (i3L) is committed to selecting and recruiting

employees free from any discrimination of religious, racial, ideological, gender, and physical

nature.

Recruitment, hiring or promotion process which is suspected to be in breach of the Institute’s

equal opportunity policy should be reported to the Director of Academic Affairs (for faculty) or

the head of the Human Capital and Legal Affairs department (for non-faculty) to be further

followed-up. The Director of Academic Affairs or head of the Human Capital department is

compelled upon receipt of such report to verify and investigate the validity of the report which

upon reasonable confirmation must be passed-on to the Academic Senate (for faculty) or to the

Chief Operating Officer (COO, for non-faculty) for formal adjudication of those responsible of the

discriminatory practice that goes against the values and policies of the Institute.

Nepotism

It is inappropriate for employees with familial ties to be in direct reporting relationship to each

other at the workplace and it would constitute an ethical breach of the company’s standards of

conduct. Furthermore, any business dealings that involve payment should also be free of familial

ties between the decision maker involved in the dealing at the Institute and the beneficiary of

payment. However, exceptions could be made when prior notification of such ties are revealed

in advance and reported to the Institute’s COO. Moreover, any activities that would directly

benefit an employee with familial ties ought to be relegated to another employee. Failure to do

so would be deemed as a breach of the Institute’s standards of conduct.

Every member of the Institute is expected to be aware of the potential conflict of interest arising

from the performance of their duties and to be willing to relegate the conflicting professional

duty and to clearly disclose such potential conflict of interest due to involvement of immediate

family or household member to his immediate superior. Failure or neglect to do so may be

viewed as act of nepotism by the Director of Academic Affairs (if faculty member) or the COO

(non-faculty) and may be subject to sanctions by the Academic Senate upon report by the

Director of Academic Affairs (for faculty) or by the Chief Operating Officer (for non-faculty). The

Director of Academic Affairs or COO may however, in his/her discretion, bring the report to the

Ombudsman Committee comprising of the COO, Director of Business Enabler and the Director of

Academic Affairs, to try to resolve the issue confidentially. Failure to resolve the issue through

the Ombudsman Committee would compel the Director of Academic Affairs to report the case

to the Academic Senate for formal adjudication (for faculty) or the COO to adjudicate the issue

(non-faculty).

Sexual Harassment

The Institute views sexual harassment a serious offence and usually carries the penalty of

immediate dishonorable discharge if proven correct. Sexual harassment is viewed as a serious

offence because it is contrary to scholastic values, discriminatory in nature, degrading to the

dignity of a person and potentially bringing psychological and mental anguish and devastation

that potentially may ruin a person’s career.

.Report of allegation of sexual harassment should be submitted to the Director of Academic

Affairs (for faculty) or the COO (non-faculty) as immediately as possible since it is more difficult

to gather evidence and testimonies the longer the report is withheld. Upon verifying the validity

of allegation within a reasonable degree, the Director of Academic Affairs (for faculty) ought to

pass-on the report to the Academic Senate for formal indictment, investigation, hearing and

passing of sanctions (or the COO for non-faculty for adjudication based on his discretion). Based

on the severity of the case, the alleged person may also be reported to the Police for due legal

process.

Unprofessional Conduct

Amorous relationship between two persons in direct reporting relationship to each other or

between an employee and a yet graduating student would constitute a breach of the Institute’s

standards of conduct.

Report of inappropriate relationship between immediate subordinate and superior, or between

two faculty members with relation of asymmetry of power and direct reporting, or between

faculty member or staff and student should be submitted to the Director of Academic Affairs (for

faculty) or the COO (for non-faculty) who will, in his/her discretion, either attempt an informal

closed mediation through the Ombudsman Committee (comprising of the COO, Director of

Business Enabler and the Director for Academic Affairs) or file a formal report to the Academic

Senate for formal indictment, hearing and passing of sanction (for faculty) or be adjudicated by

the discretion of the COO (for non-faculty). Failure to resolve the issue through the Ombudsman

Committee would automatically compel the Director of Academic Affairs to file a formal report

to the Academic Senate (for faculty). Note that romantic relationships between people involving

no apparent relation of power such as those between completely different departments are not

subject to this policy.

Conflict of Interest and Conflict of Commitment

With full-time employment, employees are expected to render their primary loyalty to the

Institute over any other institutions with the exception of state authorities. Therefore, when an

employee stood to gain directly from the performance of his professional duty as required by

the Institute, he or she would be required to disclose the nature of his would be benefit and

upon the discretion of the Director of Academic Affairs (for faculty) or the COO (for non-faculty)

he/she might be required to temporarily relegate the related duty to another designated

employee.

Conflict of interest and conflict of commitment may also refer to instances whereby an

employee is faced with a situation that would directly harm either his personal interests or

those of the Institute’s. In such instances, an employee would be required to report the nature

of his conflict of interest/commitment to his/her direct supervisor so that appropriate decision

could be taken to avoid harm to the Institute’s best interests. Failure to report such conflict

would constitute a breach to the Institute’s standards of conduct.

Any possible occurrence of either conflict of interest or conflict of commitment should be

reported to the Director of Academic Affairs to be further verified, investigated and followed-up

with appropriate actions (for faculty) or the COO (for non-faculty). Report shall be treated as

confidential retaining the anonymity of the reporter throughout the process. Upon reasonable

verification by the Director of Academic Affairs, with her discretion, she may file a formal report

to the Academic Senate (for faculty). Other avenue of resolution that may be pursued by the

VPAA or COO includes an informal and confidential mediation through the Ombudsman

Committee (which membership consists of the COO, Director of Business Enabler and the

Director of Academic Affairs). Failure to resolve the issue through the Ombudsman Committee

automatically would compel the Director of Academic Affairs to file a formal report to the

Academic Senate (for faculty) or the COO to adjudicate the issue based on his discretion (non-

faculty).

Formal Induction

Formal induction into an indefinite employment position entails the issuance of a formal appointment

letter that covers the full name of the new employee, his assigned position within the Institute, detailed

job description, as detailed as viable, and the scope of his/her responsibilities. In addition, an induction

program should be arranged for new employees within three months of joining. The purpose of an

induction program is to verify and clarify any doubts regarding the expected levels of performance at

the Institute and to introduce new employees to the culture of the Institute and to align their

expectations to the Institute’s mission and vision.

Hours of work

The standard hours of work at i3L is from 8:00 AM to 5:00 PM with lunch break in between from 12:00

PM to 1:00 PM (Friday from 11:30 AM – 1:30 PM).

In addition, some departments may be required, out of necessity, to work in shifts.

The management also recognizes that every employee might have his/her own unique needs pertaining

to daily working hours. As such, to maintain high morale and performance, the Human Resource

Department might grant minor leniency regarding working hours of individuals under the pretext that

the leniency doesn’t degrade coordination with their coworkers and approval must be obtained from

both their immediate supervisor and the head of department and justifiable reasons are provided for

the minor change in working hours and that the change wouldn’t put the institute’s interests at a

disadvantage. Thus, it is possible to start working, say, at 7:00AM and finish at 4:00 PM or to start at

09:00 AM and to finish at 6:00 PM to avoid traffic congestion on the way home and avoid unnecessary

waste of time on the commute. The management views the employees’ well-being as paramount to

their effectiveness at work and believes that well-rested employees would display sustainable high

performance at work.

Note that abrupt sudden changes to one’s working hours would not be accommodated unless it is a

matter of emergency. Any submission for working hour leniency should be made well before time and

will be locked for a minimum duration of a single month. The approval process could take a few weeks

to a month and would become effective immediately upon approval for the agreed period of time or

until further notice.

Work shifts

Work shifts are used at i3L to accommodate some measure of flexible working hours.

Generally there are two types of work shifts:

1. Weekdays (Monday to Friday)

a. 07:00 AM – 04:00 PM

b. 08:00 AM – 05:00 PM

c. 08:00 AM – 06:00 PM

2. Weekdays and Saturday/*Sunday

Weekdays Saturday

- 07:00 AM - 03:00 PM - 08:00 AM – 02:00 PM

-08:00 AM - 04:00 PM - 09:00 AM – 03:00 PM

- 09:00 AM - 05:00 PM - *02:00 PM – 08:00 PM

- *01:00 PM – 09:00 PM

*Sunday

-*08:00 AM – 02:00 PM

*The text with asterisk is meant to accommodate the building management department

hence the peculiarity of the shift timing.

Break time

The official break time during work hours is from 12:00 PM – 01:00 PM except for Friday which

is from 11:30 AM – 13:30 PM to accommodate the Friday prayer.

Changing working hours: procedure

1. Change in Work Hours can only be done via the approval of each department head.

2. They will need to be submitted to the HR department no later than a month prior to

the proposed change. Special consideration will be given for special circumstances

provided valid and good reason is given for the late submission of work hours

change.

Out of station reporting

When an employee is going to be away from the office for the whole day duration for matters

related to the Institute’s business then he or she is required to report his/her out of station

status prior to the occasion.

1. The attendance system won’t be able to know you were away for i3L business when

you didn’t register for the day.

2. Thus for out station businesses you need to manually report in to the HR

department via the head of your department no later than a week prior to the

planned date. The head of department upon report of his/her subordinate needs to

report the out station status of the reporter no later than a week prior to the

planned date unless the plan was sudden and good reason was provided.

Coming for work on supposedly day off

1. When an employee comes to work on his supposedly day off upon request or

approval from his/her direct supervisor for more than 6 hours (such as Saturday or

Sunday or National Holiday, etc) then he or she is entitled, in exchange, for a

replacement day off unless it is counted toward his/her usual work shift (such as for

some staff in the BM team).

2. Report of coming to work on a supposedly day off henceforth to be termed ‘day on

reporting’ should be made in the earliest day possible from the day of the

supposedly ‘day on’.

3. Submission of replacement day off should be made no later than a week prior to the

proposed day and should be approved by the related head of department.

Being late for work

The Institute recognizes that hours logged in for work don’t necessarily equate to productivity.

However employees need to adhere to prescribed work rules in order to maintain discipline and

cultivate a sense of fairness. Thus the following prescribed guidelines.

The Institute shall tolerate lateness up to 10 minutes long.

Three (3) days consecutive lateness of more than 10 minutes would result in oral

reprimand

Repetitive lateness of more than 10 minutes long for more than 5 times per month

would result also in oral reprimand.

More lateness within a month period would result in a reprimand letter of first degree

The would be issuance of the 2nd reprimand letter of first degree within 3 month period

justifies the issuance of a reprimand letter of second degree, unless good and valid

reason is provided.

The would be issuance of the 2nd reprimand letter of second degree within 6 month

period justifies the issuance of a reprimand letter of third degree that would serve as a

final warning before termination of employment.

Interim Performance Evaluation

Employee performance evaluations are conducted on bi-annual basis. During the month of evaluation,

every employee will be given a self-assessment form. Heads of departments will be required to fill out

their staff evaluation forms, one for each staff under them. The content of the two forms will be then

reconciled and discussed openly in a performance evaluation meeting between individual staff and

his/her head of department.

Appraisal of each employee’s performance and its discussion should be based on professional

objectivism. Any discrepancies in perception ought to be resolved by clarifying the sources of such

discrepancies. Both written assessments from the employees themselves and the heads of departments

will be paired and filed and kept as part of the archive of the human resource department and treated

as confidential.

Openness should be viewed as critical in such meetings and therefore, no other individual other than

the head of department and the individual employee himself/herself shall be present during the

meeting. Feedback and constructive criticisms from both parties in such meetings are welcome and are

viewed as signs of openness and good will by the human resource department. Lack of feedback

however might indicate either signs of unresolved issues or lack of trust between the employee and

his/her head of department or even complicity should problems are revealed at a later time. Therefore,

the human resource department encourages employees to provide feedback or constructive criticism of

their departments or even of their superiors. Superiors, in turn, may use the chance to reflect and

improve on their management and people skills in the long run. Sustainable growth and high

performance are only possible to be cultivated in a healthy environment in which everyone feels safe to

say their minds for the benefits of the institute as a whole.

The bi-annual performance evaluations will form the basis for promotions and salary

increments/adjustments.

Compensation Management

Compensation Leave

An employee who comes in for work on supposedly day off for longer than 6 hours is eligible for

a compensation leave in exchange for his extra working day. Thus, the institute shall

compensate these extra hours not through paid overtime/hourly basis but by acknowledging

that the employee has the right for a full day compensated leave which counts as paid leave in

exchange for his/her extra hours. Note that compensated leave would only take into account

days in which employees, due to their obligation to the Institute, are made to come for work on

which they were supposed to be off and doesn’t apply to arbitrary personal decision to come to

work on supposedly day off.

Business Trip

1. Expenses for business travels, abroad or local, ought to have been allocated in the

department’s annual budget and the business travels themselves are subject to

approval from the CEO of the Institute.

2. Business travel proposal should be prepared and submitted to the Finance and

Accounting department no later than 7 days prior to the planned departure.

3. The Finance and Accounting Department has the right to reject processing the Business

Travel proposal when:

a. It has not been approved by the CEO of the Institute

b. It is submitted less than 7 days prior to the planned departure (unless the CEO

specifically approves of the late submission)

4. Each business travel ought to produce their corresponding Business Trip Report.

5. Business Trip Report should be submitted to the Finance & Accounting Department for

financial claim processing and to the CEO, President and COO of the Institute for their

reviews.

6. Reimbursement to the financial claims pertaining to any business travel would only be

done upon the approval from the head of the Finance & Accounting Department and

the CEO of the Institute.

*Daily transportation expenses will only cover the following trips: airport to hotel and vice versa as

well as from hotel to business meeting point and vice versa and from one business meeting point to

another business meeting point.

Reimbursement

Reimbursements will only take place when material evidence of expenses pertaining to the

Institute’s business activities is provided. Evidence of expenses should be submitted to the

Finance & Accounting Department for reimbursement processing. In the absence of clear

material evidence, no reimbursement is feasible. In addition, the types of activities that the

expenses belong to should also be clearly conveyed whether in written format or communicated

verbally to the department of Finance & Accounting.

Disciplinary measures

The human resource department recognizes that disciplinary procedure needs to be laid out clearly in a

culture of openness and trust that the department espouses for the benefit of the whole employees and

the institute as a whole.

The human resource department has the following procedure in dealing with breaches of

regulations/code of conduct/discipline that correlates to the severity of the breach(from least severe to

most):

1. Verbal warning

2. Reprimand letter (first to third degree)

3. Immediate termination of employment

The selected course of action in the event of a breach of discipline falls within the discretion of the

human resource department and depends on the severity and repetition level of the breach in question.

Verbal warning

Verbal warning is the least severe disciplinary procedure used to warn of a breach of discipline.

Least severe breach of discipline constitutes breaches of discipline that do not harm the institute

financially, morally, and legally. They may include minor ethical first time breaches such as smoking

indoor for the very first time.

Reprimand letter (first to third degree)

Reprimand letters (first, second, and third degree) are used to formally warn employees of multiple-

time minor ethical breaches of discipline (Institute’s rules) or breaches that harm the institute

financially, morally, or, legally. Depending on its severity, a reprimand letter may constitute first to

third degree level of breach. Third degree reprimand letter serves as the final warning before the

final disciplinary action is to be taken i.e., termination of employment.

Immediate termination of employment

When a severe breach took place, the institute might immediately terminate the employment of the

employee in concern. When a breach of discipline severely harmed the institute either financially,

morally, or, legally, immediate employment termination could be pursued as the final measure of

disciplinary action, in addition to a possible legally binding course of action.

Exit interview

Upon resignation of an indefinite employment employee, an exit interview ought to be conducted

before the termination of employment takes effect. The exit interview should try to glean the

perspective of the resigning employee of his/her impression while working at the Institute and the

specific reasons of his/her resignation ought to be elaborated and recorded. Objective dissenting

views are also ought to be recorded for future review by the Management. The purpose of an exit

interview is to gain pertinent information of the management and people within the Institute as a

whole from the perspective of a once insider, to be used for the betterment of the Institute.

Information disclosed during an exit interview should be treated as strictly confidential to members

of the Institute and outsiders who are not made privy to the information by the Management.

Benefits

Medical insurance and claims

Outpatient treatment

For permanent employees, outpatient medical claims will be reimbursed provided that clear

material evidence of the expenses is submitted to the HR department. Note that the Institute

would only cover 80% of the expenses and that the monthly medical reimbursement is capped

at IDR 500,000 per month.

1. Outpatient medical claims cover the employee and his/her spouse as well as children

2. Doesn’t constitute dental care

3. As much as 80% of the outpatient medical expenses would be covered, capped at IDR

500,000.00 per month

Inpatient treatment

Inpatient medical expenses will be covered by a medical insurance subscribed for the employees

by the Institute to an appointed insurance company.

Indonesia’s Social Security program (Jamsostek)

The Indonesia’s state social security program called Jamsostek benefits only Indonesian citizens

1. Jamsostek will only be processed for indefinite employees of Indonesian nationality.

2. It covers:

a. Accident Insurance.

b. Life Insurance.

c. Retirement Funds.

3. Payment:

a. Each indefinite employee would pay 2% of his/her monthly salary to the

program.

b. The Institute would pay 4.24% of each indefinite employee’s salary to the

program.

Holiday allowance (Tunjangan Hari Raya-THR)

1. Holiday allowance is an annual allowance provided for supporting an employee’s main

religious celebration. This allowance benefits all employees irrespective of their

religions.

2. The allowance is provided to employees who have worked for a minimum 3 (three)

month period.

3. For employees who have worked for a minimum of a year, the amount of provided

allowance is the monthly salaries of respective employees.

4. For employees who have worked for less than a year, down to a minimum 3 (three)

month period, the amount of provided allowance is proportional to the fraction of a

year of respective employees’ monthly salaries.

Special considerations regarding remuneration

Remuneration during illness 93

1. Remuneration during illness is provided to indefinite employees who suffer from

prolonged illness on the basis of verifiable and valid statement from a medical doctor in

a written format.

2. Remuneration during illness is provided in accordance with applied legislation.

3. Provision of remuneration during illness by the Institute is given in accordance with

provisions set in XXXXX

Annual Leave xx

Permanent employees who have been working at the Institute for a minimum duration of a

year are entitled to 12 days of annual leave that can be carried forward to the next year’s

first 6 months before expiring.

Application for annual leave should be submitted to the HR no later than a week prior to the

planned day(s) upon approval from one’s direct supervisor signified by the signature of the

related head of department.

Annual Leave is counted from January the first to 31st of December the same year while

expiring in June the next year. The start of a new year automatically adds the annual leave

stock for permanent employees who have worked with the Institute for a minimum one

year period. The accumulation of rendition of service of permanent employees takes into

account their probationary period.

Sick Leave

Reasonable and valid evidence for the sick leave ought to be provided to the HR department

in the earliest possible time. However, the Institute also recognizes that ordinarily, many

people do not go to the doctor for prescription for common illnesses such as a bad bout of

flu. Therefore the Institute doesn’t demand the submission of evidence although when such

evidence does exist it should be submitted for record.

Maternity Leave 82

The Institute recognizes a 3 month paid maternity leave for delivering mother employees at

the Institute. Male employees whose spouses have just delivered a newborn baby are

entitled to a 3 day paid leave from the date of delivery.

Maternity leave could be taken from one and a half month prior to estimated delivery time

up to three months of maternity leave in total.

Miscarriage Leave 82

Female employee who had a miscarriage would be entitled to one and a half month of paid

miscarriage leave or as recommended by obstetrician or midwife. In addition, a male

employee whose wife had a miscarriage would be entitled to 2 days of paid leave. 93

Sabbatical Leave Article 79

An employee who has worked at the Institute for six years has the right to 2 months of paid

sabbatical leave.

Sabbatical leave could be taken in the seventh and eight years, each constituting one month

of sabbatical leave. Taking of sabbatical leave would nullify the right to annual leave for the

year.

Sabbatical leave could be taken in each multiplicity of six year basis of rendered services.

Nuptial Allowance

Nuptial or wedding allowance is meant for every single employee who is taking the nuptial

vow for the very first time. The nuptial allowance to be provided is in the amount of

monthly salary. In addition, newly-wed employees are entitled to 3 days of paid leave 93.

Parent employee whose child is marrying is entitled to a 2 day paid leave. 93

Grief Support

In the event of a loss of loved one that includes either of parents, child or spouse, the

grieving employee is entitled to a grief support from the Institute in the amount of monthly

salary.

In addition, the passing of a member of household or close family member entitles an

employee to 2 days of paid leave 93.

Circumcision of child 93

Parenting employee whose child is having a circumcision is entitled to a 2 day paid leave. 93

Baptism of child 93

Parenting employee whose child is having a baptism is entitled to a 2 day paid leave. 93

Financial Assistance for Detainment by State Authority xx

In the event of an employee being detained by state authority, the Institute shall pay a

portion of his/her monthly salary to his/her family as follows:

With 1 dependent: 25% of monthly salary

With 2 dependents: 35% of monthly salary

With 3 dependents: 45% of monthly salary

With 4 or more dependents: 50% of monthly salary

Financial assistance for detainment by state authority shall be paid for a maximum 6 month

period from the first day of detainment.

The Institute has the right to terminate employment when the period of detainment

exceeds 6 months.

Layoff

Temporary Layoff

1. Should a situation or condition arise in which the Institute is forced to cease part or the

entire of its activities, the Institute may choose to temporarily layoff its employees

2. The institute has the right to temporarily layoff its employees to safeguard its financial

wellbeing/interests or due to unforeseen natural disasters or other forces majeures.

Retirement Age

The official retirement age at the Institute is 60 years old which is extendable to 65 years old

provided that the employee in question is still in relatively good health and is able to contribute

meaningfully to the Institute’s mission and vision.

Reprimand letter of third degree

Reprimand letter of third degree constitutes the final warning before termination of

employment. Any would be issuance of further reprimand letter would signify termination of

employment that is effective immediately.

Five consecutive days of absence without notification

An employee who is absent from work for five consecutive days without notification despite a

minimum two time effort to establish contact in reasonable manner by the Institute and who is

unable to provide valid and reasonable evidence for his absence could be considered by the

Institute to have voluntarily resigned.

169 (belum)

Severance Benefits

With the exception of voluntary resignation, termination of indefinite employment entails the payment

of severance and loyalty appreciation benefits.

The amount of severance benefits to be paid is as follows:

Period of rendered services Amount of severance benefits

Period of rendered services < 1 year 1 month salary

1 ≤ Period of rendered services < 2 years 2 month salary








In addition to the above, the Institute would also pay the following additional benefits termed loyalty

appreciation benefits depending on the period of rendered services:

Period of rendered services Amount of loyalty appreciation

benefits








Period of rendered services > 24 years 10 month salary

Closing 111

This document is made to serve as the company’s employment guidelines to be made available to

any of the Institute’s employees and is effective from the date it is signed by the CEO of the Institute

and is valid for up to 2 years or until earlier next revision whichever comes first.

CEO Designated Government Official,

Xxxxx xxxxxxx

rough draft human resource policies pertaining to human resource management

Documents