TIME AWAY BENEFIT FREQUENTLY ASKED QUESTIONS (FAQs) Updated October 30, 2015
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1 TIME AWAY BENEFIT FREQUENTLY ASKED QUESTIONS (FAQs) Updated October 30, 2015 Medtronic s time away approach provides eligible employees with the flexibility to balance work and home life. It includes: Paid Time Off (PTO) bank Company holidays Anniversary Bonus Week Year-end break Summer hours Combined, these components offer a competitive benefit that meets a range of employee needs while supporting our business. ELIGIBILITY 1. Do all Medtronic employees participate in the time away benefit? No, interns and other temporary employees are not eligible for the time away benefits described in these FAQs. Certain other employee groups are outside of the scope of these policies, in that they do not accrue or track their time away: employees in pay bands S1-S3 (for legacy Covidien, this is field sales roles), field based employees in the Diabetes Group, field based employees in the Cardiac and Vascular Group who are exempt and commission eligible, employees Director level and above (for legacy Covidien, this is Grade H and above). These employees will coordinate with their manager to take time away when it works for them. As a guideline, they ll look to the annual time off benefits provided to other Medtronic employees. PTO 2. What is a PTO bank? A PTO bank pools sick days, vacation days, personal days, and floating holidays without differentiating between them, allowing you flexibility in how you use your time away. 1
2 3. Why has Medtronic decided to adopt a PTO bank? A PTO bank offers employees more flexibility to choose how and when to spend their time away. In addition to providing important vacation time, it continues to allow employees to observe holidays, traditions, and other events that don t fall within the company s paid holiday schedule. It s also intended to simplify time tracking for both employees and their supervisors. 4. How does it work? The number of days you receive in your PTO bank is based on your Continuous Service Date at Medtronic, as defined in the Global Length of Service Policy. The longer you work here, the more PTO days you earn, up to a maximum of 35 days per calendar year. 5. When will the PTO bank replace our current time-off policy? The new time away benefits, including the PTO bank, will take effect on January 1, In this transition year, legacy Medtronic employees will see the new PTO time available to them beginning on the first pay period of 2016 which begins December 26, I m a legacy Covidien employee. Are my years of Covidien service recognized when determining my PTO bank? Your Continuous Service Date under Medtronic, used to determine your PTO accrual, equals your Company Seniority Date under legacy Covidien so previous years of service from legacy Covidien will be recognized and counted towards your overall years of service under the PTO bank. For more information, review the Global Length of Service Policy. 7. Do I receive all of my PTO at once? Each calendar year, you will start with 40 hours of PTO in your bank. From there, PTO accrues on a monthly basis (February thru December), meaning you earn your time away throughout the year. 8. Do new employees start with any PTO? Yes, new employees will receive 40 hours of PTO when they are hired, and time will then accrue on a monthly basis. The monthly accrual will begin the first of the month following hire.
3 9. Will my PTO carry over? No, you must use your annual allowance of PTO by April 16 of the next calendar year. In effect, this will give you 16 months to use the PTO you earn in a calendar year. Because of state laws, if you work in California, Montana, Nebraska, the District of Columbia and Maryland*, you will accrue up to one and a half times your annual allowance in your PTO bank. For example, if your annual allowance of PTO days is 20 and you work in one of these states, you can have up to 30 days in your bank at any given time. If you reach this limit, you will stop earning PTO until you take time away and reduce the balance in your PTO bank. *Legacy Medtronic employees hired on or before June 17, 2011 who were working in Maryland on this date and continue to work in Maryland. 10. Will I have more or less PTO in this new approach than I do now? The PTO bank is philosophically different from the time away benefits that both Medtronic and much of Covidien historically offered. Some employees may experience a slight decrease in the total number of days available; however, generally speaking most employees at both legacy Medtronic and legacy Covidien will have as much or more paid time off available than before. 11. If I leave or retire from Medtronic and have remaining days in my PTO bank, will I be paid for the balance of my PTO? Yes, you will be paid for any unused PTO that you have already accrued. For example, if your annual PTO allowance is 30, but you ve only accrued 10 days since January 1, you will only be paid for 10 days when you leave Medtronic. You will not be reimbursed for the 20 days that you have not yet accrued. The payout will also not include any hours previously forfeited per the no carryover provision. 12. If I leave Medtronic, can I use my PTO for my notice? No, you cannot extend your termination or retirement date with PTO or ABW. 13. Can I borrow time away? Yes, Medtronic allows up to 40 hours of borrowed time with manager approval.
4 14. Even if I have PTO available, can I choose to take time off without pay instead? Medtronic may require that PTO be used in lieu of taking unpaid time-off, so you should first use PTO or ABW time to cover any days off. You may also request to "borrow" future PTO to receive pay during the year. However, if no paid time-off options are available, you may be able to take the time off without pay, subject to management approval. 15. What if I get sick and I m out of work for an extended period of time? Will I use my PTO bank or do I get disability coverage? After seven consecutive calendar days of sickness or disability, you re eligible to apply for salary continuation benefits for a short-term disability. If approved, you will receive 100% of your pay for the first eight weeks (after the seven calendar day elimination period) and 70% for the remaining 17 weeks up to 26 weeks. 16. How will Medtronic comply with paid sick leave ordinances? Employees who are in jurisdictions that provide for paid sick leave may use their PTO for paid sick time purposes, as required by state or local law. U.S. employees who do not receive PTO and who work in and meet the eligibility requirements for jurisdictions that provide for paid sick leave will receive Sick Ordinance Time as required by state or local law and outlined in Appendix I of the PTO Policy. All employees will enter a PTO reason (i.e. time away PTO or sick PTO ) in their time keeping system. 17. Can I give my PTO to someone else? Yes, Medtronic allows employees to donate PTO to a PTO donation bank as outlined in the PTO Donation Policy. Please note that this policy does not allow you to donate your PTO to a specific employee. 18. Can I buy PTO? No, Medtronic does not allow employees to buy PTO.
5 TIME TRACKING 19. What is the process for tracking my time off? You must use either Workday or your local time keeping system to track your time off. You will receive more information about time off tracking requirements later. 20. Do I still have to notify my supervisor or manager if I plan to use PTO? If so, how far in advance should I notify them? Yes, you are expected to notify your supervisor or manager of your plans to take time away to ensure adequate coverage while you re gone. You should notify your supervisor or manager as far in advance as possible or as required by your local time and attendance policy. 21. How do I know how much PTO I have in my bank? All employees, regardless of their time keeping system, can check their PTO and ABW balance in Workday at any time. 22. What will happen to the current time away benefits I have accrued when we switch to the PTO bank? Employees working in CA, MT, NE or DC Employees working in all other states Legacy Medtronic Employees Your remaining vacation and personal floating holiday hours will be transferred to your PTO bank the pay period beginning December 26, Sick time must be used by December 25, 2015 or it will be forfeited. Your vacation earned in 2015 will move to your forfeitable vacation balance in Workday and will need to be used by April 17, 2016 or the hours will be forfeited. Legacy Covidien Employees Your remaining vacation will be transferred to your PTO bank for January 1, You will receive a payout on January 15, 2016 of any time over the maximum one and a half times annual accrual. If you are at the accrual maximum as of January 1, 2016 you will not accrue additional PTO until the first of the month after you use time. If you work in CA or MT and you have any floating holidays remaining, that time will be transferred to your PTO bank for January 1, Sick time must be used by December 31, 2015 or it will be forfeited. Your vacation and personal floating holidays earned in 2015 must be used by December 31, 2015 or the hours will be forfeited.
6 Personal floating holidays and sick time must be used by December 25, 2015 or it will be forfeited. ANNIVERSARY BONUS WEEK 23. What is the Anniversary Bonus Week (ABW)? On January 1 of your 5 th, 10 th, 15 th anniversary and beyond you will receive an additional five days of time. For example, in the year of your 10 th anniversary, you will have a total of 30 days: the 25 days of PTO, plus an extra 5 days of ABW time. You must be actively employed on January 1 of an anniversary year or you will not be eligible. You will be able to view and track a separate ABW balance in Workday. 24. Do I have to use the extra days in my anniversary year*? Yes, you must use all days earned from your ABW in that particular year by December 31, unless you work in California or Montana. Don t forget to get permission from your supervisor or manager prior to using ABW days. *Differences due to state laws. 25. If I leave Medtronic prior to using my ABW days, will those unused days be paid out? Because of state laws, if you earn ABW time while working in California, Montana, Illinois, Louisiana, Massachusetts, New Hampshire, North Dakota or Wyoming, any available but unused ABW hours will be paid out upon your termination. Employees in all other states do not receive a payout for unused ABW days. 26. I m a legacy Covidien employee who reached a 5-year anniversary in Will I receive an Anniversary Bonus Week (ABW)? No, legacy Covidien employees will be eligible for ABW time when they reach a 5-year anniversary milestone after January 1, 2016.
7 OTHER BENEFITS 27. What company holidays will we have in 2016? In 2016, the following days are designated company holidays: New Year s Day Thanksgiving Martin Luther King, Jr. Day Day After Thanksgiving Memorial Day Christmas Eve Holiday Independence Day Christmas Day Holiday Labor Day New Year s Eve Holiday As a reminder, company holidays are in addition to your PTO bank. 28. Will there be a year-end break? Yes, there will be a year-end break in December. For 2015, the year-end break is optional for Legacy Covidien employees at each local site s discretion. For 2016, all locations will participate in the year-end break. In either case, you will need to use your PTO to cover your pay during the year-end break. 29. What are the dates of the 2016 year-end break? The 2016 year-end break is scheduled for Monday, December 26 through Friday, December 30. Employees are expected to participate in the break unless specifically scheduled to work due to business or function needs. You will need to use Paid Time Off (PTO) or Anniversary Bonus Week (ABW) time to be paid for Tuesday, December 27 through Thursday, December What are summer hours? From Memorial Day to Labor Day, summer hours allow employees to work longer days during the week and leave earlier on a Friday. 31. Will we have summer hours? While Medtronic offers each work location the option to adopt summer hours between Memorial Day and Labor Day, participation is based on business needs and is at the discretion of site leadership.
8 32. Who should I contact if I have specific questions on PTO and time away benefits? For legacy Medtronic employees, contact the Human Resource Operations Center at HROC@Medtronic.com or call or For legacy Covidien employees, contact AskHR at AskHR@Covidien.com or call To review the time away benefits in detail, go to benefits.medtronic.com. This communication was prepared in accordance with the Employee Retirement Income Security Act of 1974, as amended. It describes the key features of various Medtronic employee benefit plans that provide medical, wellness, other health, life insurance and disability benefits and retirement, time-away and work/life benefits. The purpose of this communication is to give you a general understanding of the benefits available under the various Medtronic benefit plans. This communication represents only general summary information about the terms contained in the official plan document. While we have made every effort to make this communication as accurate as possible, if there are any inconsistencies between this communication and the applicable plan document, the terms of the applicable plan document shall govern. Also, any questions or interpretations concerning benefits provided under the applicable plan will be resolved using the terms of the applicable plan document, not this communication. No person can make any statements of any kind that alter the terms of the applicable plan document. Accordingly you should not consider the applicable plan to have been amended based on written or oral statements made by any employee, officer, director or representative of Medtronic, including supervisors and Human Resources representatives. If you believe that you have received information contrary to the terms of the applicable plan or this communication, please contact the Human Resource Operations Center (HROC) at or by at hroc@medtronic.com (legacy Medtronic employees) or AskHR at or by at AskHR@Covidien.com (legacy Covidien employees). These benefits are not automatically applicable to employees in collective bargaining units whose terms and conditions of employment, including benefits, are subject to the collective bargaining process.
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