General Conditions of Employment Axpo Employees

Transcription

1 General Conditions of Employment Axpo Employees Effective: October 1 st, 2015 Version 4.2

2 General Conditions of Employment Axpo Table of contents 1 General Section Page 1.1 General Scope Code of conduct and directives Duty of loyalty and diligence Start and end of the employment relationship Starting date Credit of years of service within the Axpo Group End of the employment relationship Working time rules for employees in Function Levels 1 to Scope Standard working time Allocation of working time / skeleton time / contact time Breaks Deployment outside skeleton time Bridging days Overtime Working time balance, compensation of overtime Time recording Absences Departing employees Working time rules for employees in Function Levels 8 to Basis Settlement of overtime Negative time recording Holidays, public holidays, days off, leave Holidays Paid public holidays Paid days off Unpaid leave Service anniversary Family allowances Reporting obligations Personal data Inability to work Rights to the products of the employee s work Secondary employment Mandates and secondary employment on behalf of Axpo Data protection Duty of confidentiality Communication and information media 8 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 I

3 General Conditions of Employment Axpo Table of contents Page 1.15 Addictive substances Protection of personal rights, occupational safety and health promotion, mobbing and sexual harassment at the workplace Services available from social advisory unit Participation within the company and the employee representative body Amendments to the Regulations Entry into effect 9 2 Salary system / MbO 2.1 Principle for performance-oriented remuneration Scope Overview Job Evaluation / Function level Salary management CRPC General Determation of the available funds for CRPC Individual calculation basis of the CRPC Factor dependent on function level Factor dependent on individual performance Calculation of the CRPC Factor dependent on performance in case of absences Time of CRPC payment New hires / Departures Change of level of employment Amendments 14 3 Remuneration and Supplements 3.1 Work clothes Annual remuneration Laundry Direct distribution Supplements in the event of operational complications Category A (CHF 10 per hour) Category B (CHF 30 per hour) Site fire brigade and first-aid organisation in the Nuclear Energy Division Pay agreement for members of the site fire brigade and first-aid organisation 14 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 II

4 General Conditions of Employment Axpo Table of contents 4 Pension Provision, Insurance and Continued Payment of Salary Page 4.1 Pension fund Principle Partial early retirement, continued insurance of previous insured salary Continued insurance in the event of employment beyond normal AHV retirement age Insurance benefits and continued payment of salary during illness Basic prerequisite Continued payment of salary and sick pay insurance Insurance benefits and continued payment of salary in the event of an accident Compulsory accident insurance pursuant to the Accident Insurance Act (UVG) UVG supplementary insurance Supplementary continued payment of salary by the Employer Continued payment of salary in the event of death Continued payment of salary during military, community and civil defence service Continued payment of salary during pregnancy and maternity leave Pregnancy Maternity leave Reduction of holiday entitlement Breastfeeding breaks Insurance cover during business trips abroad 18 5 Expenses 5.1 General Scope The definition of expenses Principle of expenses reimbursement Credit cards Business trips Travel costs Reimbursement of travel costs Public transport Air travel Use of vehicles Board and lodging expenses Expenditure on food Accommodation costs Work clothes Annual compensation Laundry 22 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 III

5 General Conditions of Employment Axpo Table of contents Page 5.5 Other costs Minor expenses Representation costs Validity Approval by the cantonal tax authorities 22 6 Training and Development 6.1 Principles Cost-sharing of external training and development courses Training categories The Axpo cost-sharing model Amount of cost-sharing Obligations of the course participant Training and Development Agreement Repayment obligation Guidelines Procedural provisions Administrative procedure Payment modalities Repayment obligation Quality control Training goals / transfer of acquired know-how 26 Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 IV

6 1 General Section 1.1 General To make the General Conditions of Employment more readable, all references shall be made to the masculine form Scope The General Conditions of Employment form an integral component of the individual employment contract. They shall apply to the employment relationship between the respective company in the Axpo Group (Employer) with its registered office in Switzerland and to its employees employed in accordance with Swiss law. Any deviatory arrangements in the individual employment contract shall take precedence over the provisions of the General Conditions of Employment. The individual employment contract may exclude application of the General Conditions of Employment in full or in part Code of conduct and directives All of the companies in the Axpo Group are committed to the principles of compliance with the law, integrity and ethics. These fundamental rules are summarised in the Code of Conduct and apply to all employees. The General Conditions of Employment contain various references to subject-specific directives. These directives shall also be adhered to by employees in the absence of any provision to the contrary in the individual employment contract. The directives may be amended or rescinded by the Employer at any time Duty of loyalty and diligence The employee shall carry out the tasks assigned to him carefully and conscientiously, adhering to Axpo s regulations, guidelines and directives and the instructions of his line manager and upholding the interests of his employer and customers in good faith. He shall use the materials made available to him in an economical and correct manner and handle Axpo s property with due care. In the event that the employee causes damage to the Employer or a third party intentionally or as a result of gross negligence, he may be obliged to pay compensation. The Employer reserves the right to offset any claims for damages against any amounts due to the employee (particularly salary claims). 1.2 Start and end of the employment relationship Starting date The employment relationship shall start on the day agreed in the employment contract Credit of years of service within the Axpo Group Years of service from previous employment relationships (including time spent in an apprenticeship) with a company in the Axpo Group shall be fully credited End of the employment relationship The employment relationship shall end upon termination, upon expiry in the case of fixed-term contracts, upon termination by mutual agreement, upon retirement or upon the death of the employee. Termination The employment relationship may be terminated in writing by either party after the end of the probationary period subject to a period of notice of three months to the end of the month. The employment relationship may be terminated without notice at any time for good reason (Article 337 of the Swiss Code of Obligations). Retirement The employment relationship shall be terminated without special notice at the end of the month in which employees reach the age of 63. Employees born in 1951 and 1952 will continue to retire at the end of the month in which they reach the age of 63. Employees born in 1953 and 1954 will retire when they reach the age of 64. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 1

7 1 General Section Employees of Axpo Kompogas AG, Axpo Holz + Energie AG and Axpo Kleinwasserkraft will generally retire at the end of the month in which they reach the age of 65. Any further employment beyond the normal retirement age stipulated by PKE shall be by written arrangement. 1.3 Working time rules for employees in Function Levels 1 to Scope The working time rules apply to all full-time and part-time employees in Function Levels 1 to 7 who are in receipt of a monthly salary. They also apply to employees who carry out shift or on-call work in the absence of any provisions to the contrary in the Shift and On-Call Regulations Standard working time Axpo has an annual working hours model. The weekly net standard working time for full-time employees is 41 hours. The daily standard working time is 8.2 hours. The standard working time for part-time employees is based on their respective degree of employment Allocation of working time / skeleton time / contact time The allocation of working time shall be generally based around the operational requirements of the individual sections/departments. Wherever possible, account shall be taken of employees personal circumstances. Employees shall be generally required to work from Monday to Friday during the period from 6am to 8pm (skeleton time). The individual sections/departments may define daily contact times. The line manager shall be responsible for compliance with the rules on working time Breaks Employees shall take breaks as prescribed by law, with breaks generally to be scheduled during the middle of working time: 15 minutes in the case of daily working time of more than 5.5 hours 30 minutes in the case of daily working time of more than 7.0 hours 60 minutes in the case of daily working time of more than 9.0 hours The daily net standard working time shall include a break of 15 minutes. This break should be taken on the company premises or in proximity to the employee s current place of work. The timing of breaks shall be determined by the organisational unit. In general 1 hour is deducted for the lunch break when working away from the workplace. Other breaks shall not be counted as working time and should be recorded Deployment outside skeleton time Work shall only be carried out outside skeleton time if required for operational reasons and if expressly requested by the line manager. The following time supplements shall apply: 50% for work carried out Monday to Saturday between 8pm and 6am; 25% for work carried out on Saturday from 6am to 8pm; 50% for work carried out on Sunday and on public holidays. Supplements cannot be accumulated (e.g. for night work on a Saturday). Planned nigh work (between 8pm and 6am) and work on Sundays and public holidays require approval and must be reported to HR Services in advance Bridging days The Employer may specify work-free bridging days for the respective location. Public Holiday Calendar Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 2

8 1 General Section The working time required to compensate for bridging days shall be settled individually through the employee s time account. Individual work on bridging days must be agreed in advance with the employee s line manager Overtime The employee shall be obliged to work overtime if required insofar as he can reasonably be expected to do so in good faith. Overtime shall be defined as the difference between standard working time and the number of hours actually worked. Any working time subject to a supplement must be at the express instruction of the line manager or be subsequently approved by him Working time balance, compensation of overtime The individual working time balance shows the difference between the working time actually carried out (including any absences charged to working hours) and the standard working time. Regular efforts should be made to keep the employee s working time balance at a reasonable level. In the event of an excess / shortfall of 120 hours, the employee must agree a timetable for reducing the number of excess hours / shortfall in agreement with his line manager. As a general rule, employees should take time off in lieu («compensation») if they have a positive working time balance. Compensation must be agreed with the employee s line manager and be taken within 12 months at the latest. The Employer shall be entitled to instruct the employee to compensate for any overtime with an equivalent number of hours off. Overtime may, by mutual agreement, be compensated in the form of salary without supplement pursuant to Article 321c (2) of the Swiss Code of Obligations. If an employee has a positive holiday balance, reduction of this positive balance shall take precedence over compensating for overtime Time recording Working time (including all breaks and absences in accordance with Chapter 1.3.4) is recorded in the electronic time recording system. The employee shall be personally responsible for recording his working time truthfully. Employees may not appoint a deputy to record working time on their behalf. Any non-compliance shall be punished Absences Work-related absences / Work performed outside the workplace The actual number of hours absent shall be recorded for work-related absences. The standard daily working time shall be the maximum working time recorded for participation in training and development courses and attendance at trade fairs and conferences. The amount of travel time that may be recorded shall be the time spent travelling between the destination and normal place of work or place residence if the employee s place of residence is closer to the destination. In the case of international travel, a maximum of 8.2 hours (standard daily working time) of travel time shall be compensated per journey. Long-term absences The standard daily working time shall be the maximum amount of time that may be recorded per day for long-term absences such as holidays, illness, accident, therapy, military service, civil defence service, fire-fighting service and youth/sport or apprentices camps. Short-term absences Given flexible working time, personal affairs (e.g. medical or dental appointments, blood donation, appointments with the authorities) should wherever possible be dealt with during the employee s free time and, as a general rule, outside contact time. Holding public offices The maximum number of hours that may be recorded per day of absence (on a working day) by employees exercising public offices (see Section Secondary employment and public offices) shall be the standard daily working time. A maximum of 150 working hours shall be granted per calendar year for this purpose. If more than 150 working hours are dedicated to such functions during working hours, these shall be compensated or offset against salary. Regardless of the extent of the absences, Axpo may at any time request a reduction in the degree of employment in accordance with the average absences. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 3

9 1 General Section Departing employees The employee is responsible for ensuring, in agreement with his line manager, that his working time balance is as close as possible to zero upon termination of his employment relationship or commencement of retirement. In the event of the employee being released from his duties, any positive working time and holiday balance shall be deemed to have been compensated during the period of leave of absence. Any shortfall in the number of hours worked shall be offset from the employee s final salary payment. 1.4 Working time rules for employees in Function Levels 8 to Basis The working hours for employees in Function Levels 8 to 13 shall be in response to operational requirements. The basis shall be weekly working time of 45 hours, with the actual hours worked to be determined by the employee himself. Working time shall not be recorded, with the exception of negative time recording pursuant to Section These working time rules also apply to employees who carry out shift or on-call work in the absence of any provisions to the contrary in the Shift and On-Call Regulations Settlement of overtime Employees in Function Levels 8 to 13 shall receive five additional days of holiday to cover any overtime that may be required. Holiday entitlement shall, however, be limited to 35 days (bridging days shall not be counted as holidays for this purpose) Negative time recording Absences such as holidays, training and development courses, military service, youth and sport camps, accidents, illness, or secondments abroad must be recorded (negative time recording). 1.5 Holidays, public holidays, days off, leave Holidays Employees shall agree the timing of their holidays with their line manager. Employees must take at least two consecutive weeks holiday during each calendar year. Holidays should be taken during the calendar year for which they were granted. In exceptional cases, holidays may be carried over to the next year, in which case they must be used by no later than 31 May of the following year. Holiday entitlement The employee is entitled to paid holiday per calendar year as follows: 30 working days in the case of employees up to the age of 20; 22 working days with effect from the calendar year in which the employee celebrates his 21 st birthday; 25 working days with effect from the calendar year in which the employee celebrates his 36 th birthday; 27 working days with effect from the calendar year in which the employee celebrates his 50 th birthday; 30 working days with effect from the calendar year in which the employee celebrates his 57 th birthday. During the employee s first or last year with the company, his holiday entitlement shall be calculated in line with the duration of the employment relationship in the calendar year concerned on a pro rata basis. In the case of part-time employees, holiday entitlement shall be based on their degree of employment. In the case of employees paid on an hourly wage basis, holiday entitlement shall be settled financially in the form of a separate salary supplement. Illness or accidents during holidays If the employee falls ill or has an accident during his holiday through no fault of his own and is thus prevented from enjoying the relaxation aspect of his holiday, such days shall not be counted as holiday upon submission of a doctor s certificate confirming that the employee was fully unfit for work on the days in question. Doctor s certificates should be submitted to the employee s line manager without delay. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 4

10 1 General Section Reduction of holiday entitlement If an employee s unpaid leave lasts longer than one month, his annual holiday entitlement shall be reduced by 1/12 for each additional full month. Absences that are not due to the fault of the employee due to illness, accident, military service or civil defence: Holiday entitlement shall not be reduced in the case of absences that are not due to the fault of the employee up to a total duration of three months per year. If the total duration exceeds three months, the employee s holiday entitlement shall be reduced by 1/12 for each additional full month absent Paid public holidays The Employer shall determine the paid public holidays. A maximum of 12 paid public holidays shall be granted per calendar year. No compensation shall be provided if a public holiday falls on a weekend, during military service or during a period in which the employee is absent due to his being unfit for work Paid days off The employee shall be given paid days off for events in accordance with the following list: a) Employee s own wedding 3 days b) Paternity leave or parental leave when adopting small children * 5 days c) Death of the employee s spouse, co-habiting partner or child 5 days d) Death of another relative who lived in the employee s household, a sibling or of a parent or parent-in-law of the employee If the journey time is longer than 3 hours each way e) Moving house (provided that the move is not related to the termination of the employment relationship) 2 days + 1 day 1 day * If the employee s wife or partner gives birth, the father shall be entitled to 5 days paid leave. This paternity leave must be taken within two months of the birth of the child/children. Otherwise the entitlement shall be lost. This rule also applies when adopting small children up to the fourth birthday. With regard to the following events, the employee shall receive time off as follows if the events fall on a working day: f) Accompanying youth and sport camps (official confirmation required, 1 per year) max. 5 days g) Marriage of the employee s own children, grandchildren, siblings and parents 1 day h) Organising unplanned care of sick children or dependents who require support * max. 3 days i) Baptism, communion or confirmation of children 1 day j) Attendance at funerals of closely related persons in Switzerland abroad max. 1 day max. 2 days k) Active participation in a Swiss national competition (maximum once per year) 1 day * Entitlement applies per calendar year and per child / dependent in need of support. Part-time employees are entitled to days off on a pro rata basis in accordance with their degree of employment Unpaid leave In justified cases, and upon written request from the employee, the Employer may grant unpaid leave provided that operational circumstances permit. Unpaid leave shall only be granted if the performance of duties and achievement of the department s goals shall not be impaired as a result. The employee shall have no entitlement to have a request for unpaid leave approved. Unpaid leave shall result in a reduction of holiday entitlement (see Section Reduction of holiday entitlement). The employee s attention is drawn to the fact that taking unpaid leave could have an impact on his insurance position. Details in accordance with the information sheet Unpaid leave Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 5

11 1 General Section 1.6 Service anniversary After a long period of service, the employee shall receive a loyalty bonus, which shall be paid after 5 full years of employment in the following amounts: 5 years of employment CHF 2000 gross 10 years of employment CHF 3000 gross 15 years of employment CHF 4000 gross 20 years of employment CHF 5000 gross From the 25th year of service every 5 years of employment CHF 6000 gross The Employer shall deduct the statutory and regulatory contributions from the loyalty bonus. The loyalty bonus may be awarded in the form of paid holiday if the employee prefers, provided that operations will not be adversely affected as a result. The following paid holiday shall be granted in such cases: 5 years of employment 3.5 days of paid holiday 10 years of employment 5.0 days of paid holiday 15 years of employment 7.0 days of paid holiday 20 years of employment 8.5 days of paid holiday From the 25th year of service every 5 years of employment 10.5 days of paid holiday This holiday must be taken within a year of the loyalty bonus falling due. If the employment relationship is terminated as a result of retirement or disability, the next loyalty bonus due shall be paid out on a pro rata basis. In the case of part-time employees, entitlement shall be based on the average degree of employment over the previous 12 months. 1.7 Family allowances The amount of children s and educational allowances shall correspond to those laid down by law. 1.8 Reporting obligations Personal data The employee must report any changes in his personal circumstances such as marital status, surname, place of residence, birth of children, death of children and partners, and also commencement, duration and end of children s education, changes to bank account and postal account details and further information that is crucial to the employment relationship, providing HR Services with such information in writing without delay and without being requested to do so. If the employee is absent from his place of residence for more than eight weeks, he must, without being requested to do so, provide HR Services with an alternative delivery address to which notifications can be sent with legally binding effect. Should the employee fail to provide such information, notifications sent to the registered residential address shall be deemed to have been sent with legally binding effect Inability to work Long-term and foreseeable absences must be reported as soon as possible but no later than 5 working days in advance. Any case of inability to work must be reported to the employee s line manager immediately. Accidents that do not result in the inability to work must also be reported to HR Services without delay. If an absence due to inability to work lasts longer than 5 days, a doctor s certificate must be submitted to HR Services without being requested and without delay, stipulating the likely duration, scope and cause (illness or accident) of the inability to work. In individual cases, however, the Employer shall be entitled to request a doctor s certificate as of the first day of the period of absence. In the case of long-term inability to work, HR Services must be supplied with a new doctor s certificate at least every 4 weeks documenting the inability to work. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 6

12 1 General Section The Employer and respective insurer shall be authorised at any time to request that the employee be examined or assessed by a doctor appointed by the Employer or insurance company. 1.9 Rights to the products of the employee s work All products of the employee s work created during the exercise of his duties and in fulfilment of his contractual obligations alone or in cooperation with others shall belong exclusively to the Employer. In particular, the Employer shall be entitled to all rights relating to inventions, works, designs and topography within the meaning of the laws on patents, copyright, design and topography, including all rights of use and personal rights, to the extent that the latter may be transferred and in particular including the right to process and further develop such products. The employee shall not be entitled to any additional compensation for these rights. Where the transfer of such rights requires assignment, the employee shall declare such assignment at the time of the creation of these rights, with such declaration applying to all current and future (known or unknown) types of use. The employee shall refrain from exercising any personal rights and, in particular, from being named as the author or inventor. This assignment shall also include, without entitlement to additional compensation, the rights to work results that are created by the employee in the exercise of his duties but not in the fulfilment of his contractually agreed tasks. An exception applies to inventions and designs conceived by the employee in the course of his employment otherwise than as part of the duties for which he was employed that the Employer does not release to the employee within six months pursuant to Article 332 (3) of the Swiss Code of Obligations. In such a case, the employee shall be paid appropriate remuneration as defined in Article 332 (4) of the Swiss Code of Obligations. The employee shall be obliged to inform the Employer in writing without delay of the creation of intellectual property as referred to above and to issue all declarations and provide all documents required by the Employer to assert, implement and/or exercise the above rights Secondary employment Employees are obliged to get approval from their line manager before taking up any secondary employment that is related to what they do at Axpo, that is likely to consume a significant amount of time or that could give rise to a conflict of interest with their work for Axpo. This includes, specifically, the following secondary activities: Assuming a public or political office Assuming directorships or management roles at professional organisations or trade associations, with customers, business partners or Axpo competitors. The line manager informs the appropriate Compliance Officer about the planned secondary employment. If this is compatible with the employee s contractual work obligations and there are no objections from the Compliance Officer, the employee informs HR Services. Activities outside Axpo, secondary employment or private mandates that are not related to Axpo s business activities, that have no potential for a conflict of interest, and are not associated with a particularly large amount of time do not require approval Mandates and secondary employment on behalf of Axpo The Employer shall be entitled to payments received by the employee (e.g. in the capacity of a member of the board of affiliates or partner plants) in the fulfilment of his duties, such as in particular consultancy fees, meeting fees and any expenses received. Expenses incurred by the employee shall be paid in accordance with the Expenses Regulations. If the employee takes up a form of secondary employment on behalf of the Employer, or if he is released from his duties on full pay to carry out a voluntary form of secondary employment, he shall assign any monies received for this secondary activity to the Employer Data protection The Employer shall only process data relating to the employee for the purpose of evaluating his suitability for employment or are required for the purposes of the execution of the employment contract. The Employer shall adhere to the provisions of the Data Protection Act when processing such data. Personal data may be exchanged within the Axpo Group. The employee agrees to his personnel data being held in the HR information systems and being used for commercial purposes. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 7

13 1 General Section 1.13 Duty of confidentiality The employee shall be obliged to maintain the strictest possible confidentiality with regard to all confidential information of which he acquires knowledge through the course of his work. This duty of confidentiality encompasses knowledge of any information that is not in the public domain and with regard to which it can be assumed that the Employer would wish confidentiality to be maintained. It applies specifically to company and production secrets, including such information as details of customers and suppliers, business strategies and organisation, and finance and accounting. The employee may not disclose to any third party or use for his own purposes commercial, operational or technical information that is entrusted to him or otherwise become known to him in the course of his employment duties that relates to the Employer and is confidential in nature. This duty shall continue to apply to the same extent even following the termination of the employment relationship Communication and information media The communication and information media provided by the Employer such as the Internet, intranet, , telephone and fax shall be used primarily for business purposes and shall be treated with the appropriate due care. The private use of the company s communication and information systems shall only be permitted with due regard for the Employer s interests. The Employer s interests shall include, in particular, ensuring that its resources (working time, network, storage space, capacity etc.) are only used to a negligible extent and that security is not impaired. Employees may not install their own or third-party computer programs on the Employer s electronic systems or copy the Employer s software to their own or third-party electronic systems. Accessing websites and Internet platforms that have immoral or illegal content is also prohibited. The use of all company communication and information systems may be logged. The logging and evaluation of such records shall be used to monitor compliance with the applicable directives and to uphold other justified interests of the Employer. These shall include in particular: guaranteeing that processes that are of relevance to business can be tracked; monitoring and guaranteeing the security and functioning of information and communication systems; as well as monitoring and planning capacity. Access to business data may in particular result in the Employer s inspection of any private data stored by the employee in the system. Where there are signs of unlawful use or use that is in contravention of the company directives, the Employer may, without notifying the employee concerned in advance, monitor and record the employee s private and business use of communication and information media and keep such records on file as evidence. The Employer reserves the right to enforce disciplinary measures extending to immediate dismissal as well as measures available under criminal and/or civil law. Further information is available in the directive Use of IT and Internet services 1.15 Addictive substances The consumption of alcohol, drugs or other addictive substances by employees during working hours or when on call is strictly prohibited. Additionally, employees may not arrive for work under the influence of alcohol, drugs or other addictive substances. The Employer may allow alcoholic drinks to be consumed at special events. The Employer shall support the employee if he has such problems and shall invite him to seek help from in-house and external experts. Should the employee be unwilling to seek treatment for his addiction and to adhere to the agreements made, the Employer reserves the right to impose sanctions under labour law extending to termination of the employment relationship. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 8

14 1 General Section 1.16 Protection of personal rights, occupational safety and health promotion, mobbing and sexual harassment at the workplace Axpo respects and protects the personal rights of employees and gives due consideration to their health. Axpo takes measures to prevent accidents and damage in accordance with the valid guidelines. All employees are obliged to remedy any faults that impede occupational safety as soon as possible and to report such faults to their line manager and/or the safety officer (SiBe). Axpo shall not tolerate sexual harassment or mobbing, racist or other forms of discrimination against the personal rights of employees or forms of behaviour that harm third parties. Further information can be found in the Directive on dealing with mobbing and sexual harassment at the workplace 1.17 Services available from social advisory unit The employee, his family and retired employees have at their disposal access to an impartial social advisory unit, which they can use free of charge. Further information on the services provided by the Social advisory unit can be found in Insider 1.18 Participation within the company and the employee representative body The purpose of participation within the company is to maintain and promote constructive cooperation in the mutual interests of the Employer and employee with the following aims: promotion of employees and thus of the company s performance employees personal development and work satisfaction employees co-responsibility and contribution to shaping the company promotion of a good working climate within the company the proper and respectful treatment of employees Participation in the employee s personal area of work encompasses exercising rights and assuming duties and responsibilities that extend beyond carrying out his assigned tasks. The employee representative body ensures participation that goes beyond the employee s area of duties and is composed exclusively of members of staff who are themselves elected by staff. Management recognises the employee representative body as the sole representative of participation within the company and issues statements on the proposals put forward by this body. The aim of exchange between management and the employee representative body is to promote mutual agreement and trust. Further information is available in the staff representative body (MAV) regulations on Insider Participation within the company and articles of association of the staff representative body (MAV) 1.19 Amendments to the Regulations These Regulations shall apply until further notice and may be amended, replaced or rescinded by the Executive Board following discussion with the employee representative body at any time. Any amendments to these Regulations shall be communicated to the employee in writing and shall enter into effect on the stated date provided that the employee does not lodge an objection in writing within 30 days of receiving such notification 1.20 Entry into effect These Regulations shall enter into effect on 1 January Upon the entry into effect of these Regulations and the related internal guidelines, all previous regulations and related guidelines shall cease to apply. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version 4.2 9

15 2 Salary System / MbO 2.1 Principle for performance-oriented remuneration The performance-oriented remuneration system shall provide incentive to employees for good performance. This policy shall support the Executive Board, Human Resources and managers in the salary determination process and calculation of the performance-related company result pay component (CRPC). 2.2 Scope The system described in this policy applies to all employees in Switzerland under a permanent employment contract and a monthly salary for the function levels FL 1 to FL 8 in the management units: Business area Assets; Business area Trading & Sales; Support functions of the Axpo Group; Axpo Informatik AG. Separate trader bonus plans can be applied in place of the CPC for Trading employees and managers. 2.3 Overview This policy regulates the following three areas of the performance-oriented remuneration system: Job evaluation: Guidelines for the evaluation of a position and assignment to the respective function level (see 2.4); Salary management (see 2.5); CRPC: System and measurement of CRPC (see 2.6) Overview of the performance-related remuneration system: 125% = Maximum value 100% = Midpoint 75% = Minimum value Base Salary from 75% to 125% Performance-related company result Demand on a position, Job evaluation Salary band of the Function level Salary band CRPC pot attainment of objectives PERFORM Market Comparison Individual CPRC 2.4 Job Evaluation / Function level Axpo has 13 function levels (FL1 to FL13), whereby FL13 is the highest function level. Each function level corresponds to a defined point range based on the Hay Job Evaluation system. The Hay Job Evaluation system helps evaluate and compare the requirements of a position (NOT the knowledge, experience and skills of the job holder). The Hay system identifies 8 Evaluation criteria: a) Experience and specialised knowledge (acquired through education or experience) b) Complexity of the position: Planning, organisation and integration c) Communication and influence d) Intellectual framework / freedom e) Problem complexity f) Freedom to act g) Scope /Area of influence h) Type of influence Axpo General Conditions of Employment Effective: October 1 st, 2015 Version

16 2 Salary System / MbO Evaluation of these criteria results in a score that can be assigned to one of the 13 function levels (FL). A salary band has been defined for each function level. The salary band sets the framework for the minimum and maximum salary of the respective function level. The band midpoint is determined based on external competitiveness. HR periodically compares the salary bandwidth with comparable external data and, if necessary, submits a request to the Executive Board for adjustment of the salary bands. The salary band goes from 75% to 125% of the band midpoint. If an employee is taking over a new position or his current position is substantially expanded, his function level may change. In principle salary increases granted in connection with a function level change take place in the next ordinary salary review. Interim adjustments are reviewed when the salary is under the minimum or at the lowest end of the new function level. 2.5 Salary management The Executive Board approves an annual salary budget that can be used for salary adjustments. Managers decide on the distribution of this budget based on the salary proposal lists prepared by HR. These take into account the salary compared to the market, the position in the salary band for the respective function level and the employee s performance (PERFORM Evaluation grid, see point ). The manager can take additional factors such as employee personal development or similar criteria into account. 2.6 CRPC General The CRPC is a variable incentive that enables employees in function levels 1 to 8 to benefit of the company s success. The CRPC is not a fixed salary component and is not insured under the PKE pension fund. Payment of CRPC does not substantiate a legal claim for future payments. A legal claim is also not substantiated when the CRPC was unconditionally paid out repeatedly in the past. Calculation of the CRPC takes place in three steps at the end of the financial year: 1. Review of the degree of fulfilment of RONOA (Return On Net Operating Assets) of the Axpo Group according to point 2.6.2; 2. Determining the total available funds for CRPC according to point 2.6.2; 3. Individual calculation of the CRPC according to point Determation of the available funds for CRPC To determine the CRPC, the overall performance of the Axpo Group is measured against RONOA (Return On Net Operating Assets). RONOA indicates how high operating profit before interest, taxes and exceptional items is in relation to invested capital. The basis is the financial result according to the approved yearly financial statement. The valid RONOA target values for a financial year and the respective valid upper and lower threshold values are relevant for the calculation of the available CRPC funds. The Executive Board defines the target values and the lower and upper thresholds at the request of HR and in coordination with Controlling on an annual basis. These are communicated at the beginning of a financial year. The target financial value corresponds to the budgeted RONOA. Determination of the upper and lower threshold values takes into account the relevant budgeting and economical conditions and the underlying changes in the result: If RONOA (100 % of the target value) is achieved, CHF 4000 per FTE is allocated for the CRPC. If RONOA is on or below the lower threshold value, CHF 1500 per FTE is allocated for the CPC (minimum CRPC pot). If RONOA is on or above the upper threshold value, CHF 8000 per FTE is allocated for the CPC (maximum CRPC pot). The total available CRPC funds (CRPC pot) are calculated as follows: CRPC base rate number of FTE = CPRC available funds The number of FTE is the sum of the level of employment of the CRPC eligible employees in the respective financial year according to point 2.2. Example: 100% degree of fulfilment of RONOA at 2000 FTE: CHF = CHF CRPC funds Axpo General Conditions of Employment Effective: October 1 st, 2015 Version

17 2 Salary System / MbO Individual calculation basis of the CRPC The individual calculation of the CRPC for employees is carried out based on a: factor dependent on the function level (see point ); and factor dependent on performance rating (see point ) Factor dependent on function level Participation in CRPC funds increases with the function level. This takes into account the significance of the function level and any longer working hours performed by the employee. The following factors apply in the calculation of the individual CRPC for the respective function level: Function Level Factor The function level factors are rated on a pro rata basis for employees whose function level changes during the financial year. When transferring to function level 9 or higher, the current function level factor is taken into account on a pro rata basis; an accumulation of claims from various variable compensation models for the same time period is ruled out Factor dependent on individual performance A) Basis of individual performance evaluation Individual performance evaluation is carried out based on the objectives setting and the performance evaluation system PERFORM. PERFORM is based on three performance components: objectives, main tasks and competencies that can be rated differently. Objectives The respective manager and the employee agree to objectives in the annual MbO process. Objectives relate to the overarching objectives of the organisational unit. The objectives are defined so that they are specific, measureable (or observable), ambitious but realistic, and hold to a fixed time schedule. Main taskes The main tasks are derived from the job and qualifications profile for the respective function. The profile defines the expected results and success criteria for the fulfilment of the main tasks. This builds the basis for evaluation. Competencies Competencies describe the behaviour expected of employees when carrying out their tasks and that is crucial for successful performance in the function. Competency evaluation is based on the requirements of the specific function (job and qualification profile). B) PERFORM objective agreement and performance Evaluation system Three weighting options are available in the PERFORM objective setting and performance evaluation system, whereby the choice of the weighting option is mainly determined by the upcoming activities for the subsequent year. The manager selects the appropriate option for the function. The weighting option can change again owing to a new focus in the subsequent year. 3 4 Performance components Weighting options Evaluation 1 Main duties At least 3 /maximum 6 Objectives At least 2 / maximum 6 70% 40% 30% % 40% Competencies 30% 30% 30% Main tasks and objectives agreed to annually Competencies are defined and described with behavioural descriptors 3 weighting options available 5-point scale for evaluation (see point c) Axpo General Conditions of Employment Effective: October 1 st, 2015 Version

18 2 Salary System / MbO C) Individual performance Evaluation The evaluation grid from the PERFORM objective setting and performance evaluation system consists of a 5-point scale for all three performance components: 1 = unsatisfactory expectations not met 2 = satisfactory expectations partially met 3 = good expectations fully met 4 = very good expectations mainly exceeded 5 = excellent expectations clearly /Always exceeded Each individual performance component is evaluated with a score from 1 to 5. Evaluation at level 3 means that the qualifications and performance criteria have been fully met. The average score is multiplied by the applicable weighting factor. The calculated value is not rounded off to a whole number and is used in the calculation of the individual CRPC. Example of an individual performance evaluation calculation Performance Evaluation Weighting Ø Evaluation Weighting Evaluation Main tasks 40% Objectives 30% Competencies 30% Total 100% Calculation of the CRPC The individual score for the calculation of the CRPC is the product of the «factor dependent on the function level the factor dependent on performance evaluation». The allocated CRPC funds divided by the sum of all individual scores of evaluated employees (rated according to employment level) results in the granted monetary amount per point. Example Base value for CRPC: CHF Employee in function level 6: Rating factor dependent on function level = 2.2 points (see ) Rating factor dependent on performance = 3.04 points (see ) Individual score as basis for CRPC: = points Monetary amount per point is determined by dividing the available CRPC funds by the sum of the individual score (rated according to employment level): In this example CHF Individual CRPC (individual score multiplied by the monetary amount per point): points CHF 630 = CHF Factor dependent on performance in case of absences Calculation of the CRPC for employees whose performance cannot be evaluated (e.g. due to extended sick leave, new employees, unpaid leave, etc.) a PERFORM value (= individual performance evaluation) of 2.1 points is assigned Time of CRPC payment The CRPC is paid out after publication of the approved financial statement, by February of the following financial year at the latest New hires / Departures New employees that join the company during the financial year participate in the CRPC on a pro rata basis. Employees who leave the company during the financial year do not receive the CRPC. Employees who retire during the financial year receive the CRPC proportionally Change of level of employment If the level of employment changes during the financial year, the average level of employment during the financial year is applicable Amendments The Executive Board may change or revoke these at any time with effect for future financial years without compensation. Axpo General Conditions of Employment Effective: October 1 st, 2015 Version