Disciplinary Procedures & Updates Presentation on Misconduct

Increase staff awareness on disciplinary procedures and misconduct, share disciplinary statistics, provide examples of disciplinary decisions, distinguish between major and minor misconducts, and explain the disciplinary process flowchart. Understand the importance of discipline in an organization, criteria for misconduct, types of misconduct (minor and major), and consequences for each. The presentation emphasizes the impact of disciplinary actions and aims to educate employees on how to avoid being subjected to disciplinary measures.

• Disciplinary procedures
• Misconduct awareness
• Employee relations
• Workplace discipline
• Presentation update

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1. DISCIPLINARY PROCEDURE & UPDATE TO: MSEM COASTAL TOWN HALL. APRIL, 2018 Presented by: Naji Al-Sulaimani Head of Employee Relations PCR5

2. OBJECTIVES OF TODAY'S PRESENTATION Increase Staff Awareness on the Disciplinary Procedure & How to Avoid Being there. Share the latest Disciplinary Statistics. Show Examples of Disciplinary Decisions taken. Differences between Major & Minor Misconducts & their Consequences. It is Not this But it is And 2 Confidential 2 Policy Exception Status

3. WHAT IS DISCIPLINE? discipline Confidential 3 Policy Exception Status

4. DISCIPLINE & MISCONDUCT Discipline: No organisation can function efficiently without reasonable standards of discipline. If disciplinary action is taken you should understand the reason and its effect on you. Misconduct criteria : The act must be intentional and the person committing the act must be aware that the act is wrongful. The act is reckless and the Employee does not care for the consequences of his or her action. The act must have some general relation with the employment of the Employee in the Company. Confidential 4 Policy Exception Status

5. TYPES OF MISCONDUCT Minor Misconduct: A violation which does not lead to a Disciplinary Panel. The impact of the punishment may include a Note to File or Warning Letter. Examples: Absence without permission. Action contrary to or non-compliance of Company procedures. Not wearing the safety uniform provided by the Company while at work Unauthorised use of Company vehicles or equipment, or Leaving the workplace during office hours without permission. Major Misconduct: A serious/severe violation against Oman Labor Law/PDO which leads to a Disciplinary Panel and may result in a severe punishment including Final Warning or Dismissal. Examples: Unauthorised absence for more than 10 days in any one year or more than seven consecutive days. Harassment or discrimination. Fraud and/or misrepresentation. Causing serious Damage or loss of the Company's goods or property. Breaches of the Company's policy on Conflict of Interest. Committing immoral acts within the Company's premises. Breaches of the Company's 12 Life Saving Rules. Breaches of the Company's policy for the use of its information technology systems. Confidential 5 Policy Exception Status

6. DISCIPLINARY PROCESS FLOWCHART Major Misconduct Minor Misconduct Confidential 6 Policy Exception Status

7. No. of Major Misconduct Cases 2017 30 26 25 20 13 15 10 10 7 6 3 5 3 4 4 5 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 Ethics & Behaviour Ethics & Behaviour Ethics & Behaviour Ethics & Behaviour D&I LSR Violation Conflict of Interest D&I LSR Violation Conflict of Interest Unauthorised Absence Unauthorised Absence Unauthorised Absence Unauthorised Absence Unauthorised Absence Total Total Total Total Cheating/Falsifying Documents Cheating/Falsifying Documents Cheating/Falsifying Documents Breach of Confidentiality Breach of Confidentiality Poor Performance Poor Performance Poor Performance Year End Total Cases Gross Negligence company Gross Negligence company Materials Materials Q1 Q2 Q3 Q4 Total Cases (up to Q4.2017) Confidential 7 Policy Exception Status

8. NUMBER OF MINOR MISCONDUCT CASES 2017 Number of Minor Cases YTD 2017 40 Number of Minor Misconduct Cases 36 35 30 Unauthorised Absence Gross Negligence company Materials Poor Performance 00 25 4 6 20 4 Cheating/Falsifying Documents D&I 15 11 10 7 Ethics & Behaviour 2 6 4 4 2 2 5 LSR Violation 0 0 0 11 Conflict of Interest 0 7 Breaching Confidentiality None Compliance to Procedures 2 0 Confidential 8 Policy Exception Status

9. Disciplinary Stats MAJOR MISCONDUCT CASES PER DIRECTORATE All Disciplinary Cases Total: 62 Cases 26 Notes: Major Misconducts Minor Misconducts The Well Engineering and Oil south Directorates have the biggest populations in PDO. 36 The majority of Disciplinary Cases take place in these two directories. Confidential 9 Policy Exception Status

10. Consequences taken for Major Violations 2017 No of Major Misconduct Cases with Consequences - 2017 30 26 25 20 15 11 11 10 10 7 6 5 4 4 3 3 5 2 2 2 1 1 1 1 1 0 0 0 0 0 0 Dismissal Dismissal Dismissal Dismissal No action No action No action No action No action Final Warning Final Warning Final Warning Final Warning Final Warning Total Decisions Total Decisions Total Decisions Total Decisions First Warning/Verbal Warning First Warning/Verbal Warning First Warning/Verbal Warning First Warning/Verbal Warning First Warning/Verbal Warning Total Decisions 2017 Q2 Q3 Q4 Total Cases (up to Q4.2017) Confidential 10 Policy Exception Status

11. VIOLATIONS TO LSRS Confidential 11 Policy Exception Status

12. SUMMARY OF DISCIPLINARY CASES No. of Misconduct Cases (2009 to 2017) 2009 2010 2011 2012 2013 2014 2015 2016 2017 . Total No. of Cases Dismissal 4 5 1 4 2 12 9 5 11 53 Final Warning 2 4 0 4 2 2 5 11 11 41 Verbal & First Warning 1 1 3 5 6 1 35 39 38 129 Total No. of Case 7 10 4 13 10 15 49 55 60 223 Key Notes: - Verbal and First Warning are formally recorded and tracked by the HR Business Partners since 2015. - Dismissal cases reported are the total cases recommended by the Disciplinary Panel and approved by PCD & MD. -In 2017, DP recommended Four cases to be lowered from Major misconduct to Minor misconduct. Issued First warning/letter of concern/verbal warning. Confidential 12 Policy Exception Status

13. LEAD TIME TARGET The Lead time is counted from submission of the case to the Disciplinary Panel Focal Point to Decision being Approved by MD/PCD. Lead time target to reach a decision for Major Misconduct= 14 calendar days 14 Calendar days days 80 % Cases 2017 Q1-Q4 20% cases Delay is mainly on availability of staff Confidential 13 Policy Exception Status

14. CURRENT CHALLENGES IN THE DISCIPLINARY PROCESS 1. Staff awareness of the process despite the policy is Available in EPM. 2. Violations are either reported late or Not Reported. 3. Dealing with cases of absence due to imprisonments. Proposals / Way Forward: Continue to share with Management and Employees statistics of decisions taken on disciplinary issues/cases. Capitalise on Supervisors Training & Enhance Capability of Supervisors to deal with misconducts. Working on lean project to Improve the Quality of Investigation process to be followed by another project on Efficiency of Disciplinary process. Share observations with senior leaders following disciplinary cases to capture learning. 1. 2. 3. 4. Confidential 14 Policy Exception Status 14

15. QUESTIONS? Confidential 15 Policy Exception Status