Work Regulations_ENG l Canadian Solar Thailand

Translation

WORK REGULATIONS
of

Canadian Solar Manufacturing (Thailand) Co., Ltd.

Office location: 168/2 Moo 4, Bo Win, Si Racha, Chon Buri
Tel: 033-678-530
Type of business: Manufacturing and distributing energy
saving photovoltaic cells, solar modules and electronic
components mainly made of photovoltaic cells

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Contents

Section Page

Section 1 General provisions 3

Section 2 Employment 3

Section 3 Regular working days, regular working hours and rest periods 7

Section 4 Leaves, and criteria for taking leave 9

Section 5 Holidays, and criteria for taking holidays 13

Section 6 Criteria concerning overtime works and work on holidays 15

Section 7 Date and place of payment of wage, overtime pays, holiday pay and 18

holiday overtime pay

Section 8 Discipline and disciplinary action 18

Section 9 Grievance procedures 28

Section 10 Termination of employment, cessation of employee status, 30

severance pay, and special severance pay

Section 11 Health and safety 35

Section 12 Applicability and its announcement 36

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Section 1
General provisions
Objectives
To ensure its smooth, efficient, and effective operation, the company has set these work
regulations. The company aims that its employees adopt the regulations as workplace
guidelines. The company also aims that its employees fully understand these regulations,
realise their duties as well as responsibilities of their positions, understand what they can
expect from the company, and what the company expects from hiring them. This helps
strengthen and maintain good understanding among employees, between employees and
their supervisors, and between supervisors and supervisors so that working together is
efficient, pleasant, and successful, leading to all the company’s objectives being achieved.

Definition of terms
In this document, the following definitions shall apply:

‘Company’ means Canadian Solar Manufacturing (Thailand) Co., Ltd. and its branches.
‘Employee’ means a person employed to work for the company, being appointed a
position and to perform assigned duties.
‘Supervisor’ means an employee appointed by the company to hold a position as a
supervisor of any line in charge of overseeing workplace operations, and ensuring
compliance with the regulations and practices introduced by higher-level supervisors.
‘Regulations’ or ‘Work regulations’ means these work regulations.

Section 2
Employment
The content in this section consists of information about recruitment, selection, placement,
appointment, and intra-company transfer, where there is a vacancy. Where there is a
vacancy, the company shall try to recruit, select, and appoint a person to fill that position
by considering qualified current employees first. However, the company reserves the right
and power to consider, recruit, select, and appoint non-employee candidates various
positions if it is deemed appropriate.

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Employment terms and conditions

Recruitment must comply with a previously specified workforce. Increasing or reducing
workforce must conform to what is approved by the managing director or an appointed
person.

The managing director or an appointed person has authority to recruit, test, interview,
select, place, appoint, hire, transfer, reassign, or dismiss candidates or terminate
employment.

The company reserves the right to have its employees working off-site. To make such a
decision, the company shall consider needs, appropriateness, or conditions of employment
of each position. It shall be done in compliance with relevant labour laws.

Types of employment
For the benefit of management, the company classifies an employee as follows:

A monthly employee is an employee that the company agrees to hire and pay monthly
wages.
A daily employee is an employee that the company agrees to hire and pay daily
wages. A daily employee does not receive wages on a weekly holiday.
An output-based employee is an employee that the company agrees to hire and pay
wages based on work output, calculated in output units.
A probationary employee is an employee that the company agrees to hire on a
probationary employment contract of no longer than 119 days.
A specially-contracted employee is an employee that the company contracts in
various cases.

Any work or inventions, discovered by an employee, or resulted from his/her work, in the
course of his/her employment, in all cases, shall belong absolutely to the company.

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An employee is not entitled to any compensation, or to sell or transfer said work or
inventions to any other persons or juristic entities, unless consented by the company in
writing.

Transfer, appointment, and change of position of an employee

To ensure smooth and efficient operations of the company, the company has the absolute
right to exercise discretion to transfer any employees from one department or one part of
the company to another department or another part within the company or its branches. In
addition, the company has the right to reassign responsibilities of any employees, to appoint
any employees, and to change of position of any employees from any position as the
company deems appropriate. An employee transferred, appointed, or changed of position
is entitled to wages, benefits, and welfare of his/her new positions. The company shall
comply with the relevant labour laws.

Resignation

An employee wishing to resign must express his/her intention by filing a written resignation
form at least 30 days prior to the desired effective date. The form must be submitted directly
to his/her supervisor. In the event that an employee violates the work regulations, the
company shall file a claim for damages occurred.

Confidentiality

An employee must keep all company news and information confidential. These also include
technical, industrial, business, commercial, financial information, or any other information
known due to being a company employee. An employee must not utilise company news and
information for his/her interests, disclose said information to others, or to exploit said
information by any means in such a manner that probably results in damaging the
company's reputation, damages, or loss of benefits, directly or indirectly. This applies to
all employees, both when he/she is an active employee of the company and after his/her
employment is terminated, regardless of termination causes.

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If an employee violates any regulations in this part, under any circumstances, resulting in
damages to the company or the company's reputation, employees shall face serious
disciplinary action and his/her employment may be terminated. Additionally, a said
employee must be responsible for the damages resulted from their violation of the
regulations in this part and pay the company indemnity amounting to an actual loss incurred,
starting from the date of receiving a written notice from the company.

Invention

In all cases, when intellectual property including work, inventions, or others are made or
invented by an employee alone or jointly with any other person in the course of his/her
employment, a said employee must disclose such information immediately to the company.
Intellectual property including work, inventions, or others made or invented by a said
employee shall all become the company's property. A said employee has no right to claim
or take any legal action in order to obtain ownership of said intellectual property, including
work, inventions, or others, made or invented. In addition, a said employee is not entitled
to receive any compensation derived or resulting from said intellectual property, and, under
any circumstances, has no right to make a copy of said intellectual property, or to sell or
transfer it to any other persons or legal entities.

If an employee violates any regulations in this part, under any circumstances, resulting in
damages to the company or the company's reputation, employees shall face serious
disciplinary action and his/her employment may be terminated. Additionally, a said
employee must be responsible for the damages resulted from his/her violation of the
regulations in this part and pay the company indemnity amounting to actual loss incurred.

Non-competition

While working for the company, an employee must not engage in any business having a
competing nature that is not the company’s business. An employee is not allowed to
participate in any manner, in any businesses having nature competing with the company’s
business, whether such participation results in payment or not. In addition, an employee is

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not allowed to be involved or play a part, directly or indirectly, in any other companies of
the same type of work or business, or that compete with the company, as an owner, a
shareholder, a consultant, or a director within Thailand, since the day an employment
contract is terminated, regardless of the circumstances.

If an employee violates any regulations in this part, under any circumstances, resulting in
damages to the company or the company's reputation, employees shall face serious
disciplinary action and his/her employment may be terminated. Additionally, a said
employee must be responsible for the damages resulted from his/her violation of the
regulations in this part and pay the company indemnity amounting to actual loss incurred,
starting from the date he/she receives a written notification from the company.

Probation
The company requires a probationary period. The conditions and criteria appear in the
probation contract.

Section 3
Regular working days, regular working hours and rest periods

1. The company has specified regular working days, regular working hours and rest periods
as follows:

1.1 Office/factory: For a full-time employee (exempt type), the regular working
days are from Monday to Friday. Weekly holidays are Saturday and Sunday.

Regular working hours are from 8.30 - 18.00 hours.
A rest period is from 12.00 - 13.00 hours.

Weekly holidays are Saturday and Sunday. A full time employee (exempt type) is not entitled
to overtime pay, holiday pay, or holiday overtime pay, but able to convert cumulative
additional hours worked to leave days accordingly. However, if necessary, or under special

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circumstances, that worked hours must be converted to wages where it must first be
approved by the managing director.

1.2 Factory: For a factory employee (DL and IDL shift work), his/her regular working
hours shall not exceed 8 hours per day. Weekly, his/her cumulative regular working hours
shall not exceed 48 hours, with alternate weekly holidays.

Shift 1: Regular working hours are 8.30 - 17.30 hours.
Rest periods during shift are:
Period 1: 10.00 - 10.10 hours
Period 2: 11.20 - 12.00 hours or 12.00 - 12.40 hours
Period 3: 15.00 - 15.10 hours

Shift 2: Regular working hours are 20.30 - 5.30 hours.
Rest periods during shift are:
Period 1: 22.00 - 22.10 hours
Period 2: 23.20 - 24.00 hours or 24.00 - 00.40 hours
Period 3: 03.00 - 03.10 hours

Remarks: Given necessity, the company can reschedule regular working hours. In such
case, the company shall inform its employees in advance of new regular working hours,
which, cumulatively, shall not exceed the above mentioned regular working hours.

2. All employees must strictly comply with the working hours specified by the company.

3. The company reserves the right to change working days, working hours, holidays, and
rest periods of some departments, parts, or across the company to facilitate its
administration if it believes that such a change is appropriate and will improve workplace
performance. The company shall inform all employees in advance and manage in
compliance with the Labour Relations Act, 1975 (BE 2518).

4. Lateness and early leave

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4.1 Lateness: Any employee who believes he/she might be late for work must
urgently inform his/her supervisor by phone. After his/her arrival at the company, a said
employee must immediately submit a written explanation identifying the cause of the
lateness to his/her supervisor.

4.2 Early leave: Any employee who wishes to take early leave must file a relevant
request form on all occasion. In addition, his/her request must be approved by his/her
supervisor prior to the leave.

4.3 Lateness and early leave are determined by a 30-minute mark, and, after 8 hours
have passed, it is considered a one-day absence.

Section 4
Leave, and criteria for taking leave

1. Types of leave are specified by the company as follows:

1.1 Sick leave;
1.2 Maternity leave;
1.3 Leave for sterilisation;
1.4 Leave for military service;
1.5 Leave for training or developing knowledge and ability.

2. Criteria for taking leave

2.1 Sick leave
2.1.1 An employee is entitled to paid sick leave on days that he/she is actually

ill, but not more than 30 working days per calendar year in total. Sick leave can only
be taken when an employee is ill, injured, or cannot report for work due to other
illness-related causes without knowing in advance.

2.1.2 Sick leave must be notified as soon as possible, normally within the first
2 hours of regular working hours on the first day a sick leave is to be taken. An
employee himself/herself or other people must notify the company or his/her

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supervisor of the leave through any means. If a notification cannot be given in the
said manner, it must be given as soon as possible. A company leave form must be
submitted to an employee's supervisor within the first 2 hours of his/her regular
working hours on the first day he/she returns to work.

2.1.3 To take sick leave after an employee has reported for work, approval
must be obtained from his/her supervisor.

2.1.4 For sick leave taken for 3 consecutive days or longer, the company
requires an employee to present a medical certificate issued by a first class medical
practitioner or from a government clinic such as a public health centre. If an
employee cannot present such medical certificate, he/she must provide the company
with an explanation. In case where the company has arranged for a physician to
examine an employee, a medical certificate should be issued by a said physician,
unless an employee cannot receive an examination from a said physician.

2.1.5 An employee who takes sick leave excessively without justification and
is proved by the company that he/she is not genuinely sick shall be taken appropriate
disciplinary action against by the company on a case-by-case basis.

2.1.6 Not only is taking false sick leave considered providing false information
to a supervisor, it is also considered a serious violated act against the company on
ground of dishonesty. The company shall take disciplinary action according to the
regulations.

2.1.7 Information about sick leave and a number of sick days taken will be
used for determining salary/wage increase.

2.1.8 If an employee wishes to take sick leave and does not stay in the
company’s first-aid room, a said employee can take a minimum of 4-hour leave each
time.

2.1.9 A day an employee absents himself/herself from work due to an accident
or illness resulting from work, or due to maternity leave will not be counted towards
sick leaves.

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2.2 Maternity leave
2.2.1 A pregnant female employee has the right to take maternity leave before

and after childbirth as long as 98 days (including all holidays) each time. The
company shall pay an employee who takes maternity leave wages equal to her
working day's wage throughout the leave period, but no longer than 45 days. An
employee wishing to take maternity leave must notify the company at least 30 days
in advance.

2.2.2 If after taking maternity leave in 2.2.1 and an employee is still not able
to return to work, the company shall allow additional unpaid leave of no longer than
30 days.

2.2.3 In case of an emergency where an employee is not able to submit a
leave form in advance, an employee must notify his/her supervisor of reasons by any
means, such as phone or notification performed by an employee’s relative or spouse.

2.2.4 If a pregnant employee has a medical certificate from a first class
medical practitioner stating that she can no longer work the same work, she has the
right to request the company to reassign her responsibilities temporarily, before or
after her delivery as appropriate.
2.3 Leave for sterilisation

2.3.1 The company allows an employee to take paid leave for or as a result of
sterilisation. A period of leave is determined by a first class medical practitioner.

2.3.2 An employee who wishes to take sterilisation leave must notify his/her
supervisor at least 15 days in advance, and can take said leave only if the request is
approved.

2.3.3 On the first day an employee returns to work, a corresponding medical
certificate must be submitted to his/her supervisor as supporting evidence for the
leave.

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2.4 Leave for military service
2.4.1 In the case an employee needs to leave for military service, for

inspection, military drilling, or for readiness testing, an employee is entitled to paid
leave for its entire period, but no longer than 60 days in total per calendar year
(consecutively and including all holidays).

2.4.2 To take military service leave for readiness training, an employee must
notify the company within 7 days from the first day an employee is informed of or
receives a military call out/recall.

2.4.3 An employee must report for work within 3 working days from the date
he is dismissed from military service. If a said period is over and a said employee
does not contact the company without valid reasons, or a said employee refuses to
return to work in a position proposed by the company (with equal or higher level and
wages), it is considered that a said employee renounces his right to work with the
company and voluntarily resigns from being the company’s employee.

2.4.4 An employee conscripted in the army is given an advantage on return.
2.5 Leave for training or developing knowledge and skills

2.5.1 Leave for training or developing knowledge and skills
An employee is entitled to take leave for training or developing knowledge and
skills in the following cases:

1) For the purpose of the labour and social welfare or upgrading skills
and expertise to improve an employee’s performance;

2) To take an educational assessment organised or allowed to be
organised by the government, however, not including leave for continuing
further study. An employee must submit a leave form at least 7 days in
advance. Said leave can only be taken upon the company’s approval. It shall
be unpaid leave, except if an employee takes holiday leave for such event.

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2.5.3 An employee must submit a leave form to his/her supervisor for approval
at least 7 days in advance. A said form must clearly state the reason of the leave,
including supporting documents such as an acceptance letter of a training,
programme details, etc. An employee is entitled to take leave for training or
developing knowledge and skills for a maximum of 30 days or 3 times per year,
whichever applicable.

2.5.4 The company may not allow an employee to take leave for training or
developing knowledge in the following cases:

1) In the year such leave is to have effect, an employee has already
been approved of leave for training or developing knowledge and skills for at
least 30 days or 3 times; or

2) The company has shown that an employee’s leave may cause
damages or affect the company's business operations.

2.6 Leave to attend necessary personal business

An employee is entitled to leave to attend his/her necessary personal business. An
employee must submit a corresponding leave form at least 7 days in advance. Leave
to attend necessary personal business can only be taken after it is approved by a
section head, a supervisor, or a manager. Per one calendar year, leave to attend
necessary personal business can be taken up to 12 days of which, according to the
relevant labour laws, a maximum of 3 days are paid leave.

Section 5
Holidays, and criteria for taking holidays

1. Weekly holidays
1.1 Saturday and Sunday

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1.2 As specified in the company’s holiday calendar, if necessary, the company may
re-issue a work schedule which is different than as previously stated. In such case, the
company shall inform employees in advance of such change where updated working hours
must not exceed previous regular working hours. The company shall strictly comply with
the Labour Relations Act, 1975 (B.E. 2518).

2. Traditional holidays

The company designates at least 13 traditional holidays per year, including National Labour
Day. However, these traditional holidays may be differently scheduled each year based on
appropriateness where an employee shall receive wages equal to the wages paid for a
regular working day. The company shall announce its traditional holiday schedule in advance
and by December each year. If a traditional holiday falls on an employee’s weekly holiday,
an employee shall be granted an additional holiday on the following working day in lieu of
a said traditional holiday.

3. Annual holiday (vacation leave)

3.1 An annual holiday is set as follows:

3.1.1 In the 1st – 3rd year of his/her employment, an employee is entitled to
a paid annual holiday up to 6 working days.
3.1.2 In the 3rd – 6th year of his/her employment, an employee is entitled to
a paid annual holiday up to 7 working days.
3.1.3 In the 6th – 10th year of his/her employment, an employee is entitled to
a paid annual holiday up to 8 working days.
3.1.4 From the 10th year of his/her employment onwards, an employee is
entitled to a paid annual holiday up to 10 working days.

3.3 Accumulation of unused annual holiday from any previous years shall be
transferred to the first half of the following year. However, cumulatively, an annual holiday
must not exceed 12 working days per year.

3.4 The company shall determine an annual holiday of each employee. An employee
who wishes to take an annual holiday leave must submit a request form at least 7 working

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days in advance and can only take said leave once a supervisor approves in writing.
Otherwise, it is considered that an employee is absent from duty without justifiable reason.

3.5 Annual holiday leave must not be taken shorter than 0.5 hour each time.
3.6 If an employee resigns from the company, there shall not be a holiday leave in
that month, unless said resignation is to have effect from the 25th of that month. An
employee must use up all holiday leaves before the day the resignation takes effect. If, due
to nature of his/her work or caused by the company itself, an employee is not able to use
up his/her holiday leaves, said unused leaves shall be converted into wages and paid to an
employee in the last payment. Said leaves are calculated by dividing an employee’s base
salary by 30, and multiplying it by a number of unused holiday leaves.

Section 6
Criteria concerning overtime work and work on holidays

If the nature or type of work demands uninterrupted performance, failing which damage
will result, or the work is urgent, the company shall require that an employee work overtime
on a normal working day, work on holiday, as well as work overtime on holiday, as
necessary, without an employee’s prior consent.
Otherwise, the company may require that an employee work overtime on a normal working
day, work on holiday, as well as work overtime on holiday, from time to time, with prior
consent of an employee.
Overtime work on a normal working day, work on holiday, and overtime work on holiday,
taken altogether, must not exceed 36 hours per week.

Regarding land transport section, the company shall require its employee who work as
vehicle drivers to work overtime, given their prior written consent, for a maximum of 2 hours
per day, unless caused otherwise by force majeure, accidents, or traffic related problems.
If an employee is ordered to work overtime or on holiday where he/she will not be able to
perform the duties as designated, he/she must notify his/her supervisor with reasons in

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advance. Failing to notify or the request is not approved, it is considered as violating an
order, abandoning his/her duty, or absenting from work.

If an overtime work on a regular working day, work on holiday, and overtime work on
holiday is approved by the managing director or an authorized person, an employee will be
paid accordingly in compliance with the relevant laws.

Criteria concerning overtime work
1.‘Overtime work’ means work performed in excess of or beyond the normal working period
in a day as agreed to by the company and its employee on a working day or holiday, as the
case may be.

‘Work on holiday’ means work performed on holiday during regular working hours.
‘Overtime work on holiday’ means work performed in excess of or beyond the normal
working period in a day on holiday.

2. If the company requires an employee to perform overtime work on a regular working
day, a said employee is entitled to overtime pay at the rate as follows:

At least 1.5 times the rate of the hourly wage rate earned per hour on a normal
working day, or at least 1.5 times of the rate of wage per unit of work output earned per
unit on a normal working day for work done by an employee who is paid on the basis of
work output.

3. If the company requires an employee to perform overtime work on holiday, a said
employee is entitled to overtime pay at the rate as follows:

At least 3 times the rate of the hourly wage rate earned per hour on a normal working
day, or at least 3 times of the rate of wage per unit of work output earned per unit on a
normal working day for work done by an employee who is paid on the basis of work output.

4. Holiday pay

4.1 For an employee who is entitled to wages on holidays, weekly holidays, traditional
holidays, and annual holidays and works on holiday, he/she shall receive an additional
amount of at least 1 time of the amount of the hourly wage rate earned per hour on a

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normal working day, for the hours working overtime, or at least 1 time of the rate of wage
per unit of work output earned per unit on a normal working day for work done by an
employee who is paid on the basis of work output.

4.2 For an employee not entitled to wages on holidays, he/she shall receive an
additional amount of at least 2 times of the amount of the hourly wage rate earned per hour
on a normal working day, for the hours working overtime, or at least 2 times of the rate of
wage per unit of work output earned per unit on a normal working day for work done by an
employee who is paid on the basis of work output.

5. For the purpose of calculating the hourly wage rate earned per hour on a normal working
day, a monthly wage for a monthly employee shall be divided by thirty and then divided by
a number of regular working hours. For a daily employee, a daily wage shall be divided by
a number of regular working hours.

6. An employee who has the authority or is designated by the company to perform any of
the following tasks shall not be entitled to overtime pay and overtime pay on holiday.
However, an employee who is designated by company to perform tasks referred to in (3)
(4) (5) (6) (7) (8) or (9) shall be entitled to a remuneration in an amount equal to the hourly
rate of wage for working day on the basis of the actual hours worked:

(1) An employee who has the authority to act on behalf of the company in relation
to employment, granting of pension, or termination of employment;

(2) Itinerant vending or inciting purchase of merchandise upon which sales
commission is payable;

(3) Railway service operation which includes work on railway carriages and facilitating
railway transportation;

(4) Opening and closing water gates or floodgates;
(5) Recording water levels and measuring water volumes;
(6) Firefighting or prevention of public hazards;
(7) Work with nature or condition of having to perform away from workplace and
definite working hours of which are unable to fix;

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(8) Taking turns watching or guarding premises or property which is not in the normal
scope of work of the employee;

(9) Other works as prescribed in the Ministerial Regulations
An employee in (1) and (2) is not entitled holiday pay, unless the company otherwise agrees.

Section 7
Date and place of payment of wage, overtime pay, holiday pay, and holiday
overtime pay
The company specifies that payment of wage, overtime pay, holiday pay, and holiday
overtime pay from the 26th of a previous month until the 25th of a current month shall be
paid to an employee once a month and no later than the 5th of a following month. Payment
is made at the company’s office or as a money transfer to an employee's savings account of
a bank designated by the company and also agreed with an employee.

If employment is terminated before the date a wage, overtime pay, holiday pay, and holiday
overtime pay is paid, the company shall pay said monies to an employee within 7 days from
the date of termination of the employment.

Section 8
Discipline and disciplinary action
1. The company has set rules and regulations in this section with the following objectives:

1.1 To be used by a supervisor as a guideline in assessing, encouraging, correcting,
or improving subordinates’ behaviours.

1.2 To ensure fairness to employees regarding the company’s engagement.
1.3 To provide practical guideline on conforming to the company’s discipline, leading
to prosperity of the company and its employees.
1.4 To help improve business operations of the company and achieve its objectives
by means of orderliness, just, legitimacy, and to bring peace in working together.

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2. For the company’s policy, the company has set the policy regarding discipline of
employees as follows:
2.1 A supervisor must try to prevent issues regarding disciplinary action, by using

personnel administration principles or good governance.
2.2 Typically, disciplinary action will be taken progressively to offer an employee an

opportunity to improve himself/herself, unless the action in question is very serious.

3. To achieve workplace orderliness and efficiency an employee must comply with the
following rules:

3.1 General discipline
3.1.1 An employee must behave as a good citizen, conform to the rules and

regulations of the society, not committing evil acts, nor committing or be part of any
act violating the law, both on the company premises and off.

3.1.2 An employee must obey and comply with lawful orders of his/her
supervisor.

3.1.3 An employee must strictly comply with the rules, regulations and orders
set by the company.

3.1.4 An employee must notify the company of any changes in his/her status
to the company including a name or surname change, a change of address of
residence, a marital status, a childbirth, a death of a family member, a change of
national ID card, within fifteen days from the day a change occurs in each case.

3.1.5 An employee must maintain good hygiene, and not dispose objects nor
litter outside of the container as designated by the company.

3.1.6 An employee must help monitor the use of and conserve the company's
materials, tools, appliances, energy and other things.

3.1.7 An employee must not be late for work, nor leave early, nor taking leave
without a justifiable reason too excessively.

3.1.8 All types of employee’s leaves according to the work regulations, or
according to the company announcements must be approved by a relevant
supervisor, or an authorized person, prior to taking such leave.

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3.1.9 An employee must not help, support, convince, accomplice or ignore the
misconduct of other employees.

3.1.10 An employee must not be hired to work for other people, or to conduct
any business, that may affect his/her working hours or the company's business.

3.1.11 An employee must not use items, tools or equipment, or the company's
products for self-interest, or for other purposes not related to the company’s
business, without approval.

3.1.12 An employee must not behave or act in a way that damages the
company's reputation or may cause damage to the company.

3.1.13 An employee must be cautious about and look after the company's
property, and must notify his/her supervisor when causes damage or loses the
company property,

3.1.14 An employee must not post any announcements, advertisements, or
write any messages, distribute leaflets or published documents on the company
premises without prior approval. An employee, also, must not remove of or tamper
with the company’s documents, announcements, or orders.

3.1.15 An employee must not disclose or conceal any fact that may cause the
company any damages.

3.1.16 An employee must not insult, defame, abuse, or act appropriately
against others, his/her supervisors, customers, or visitors.

3.1.17 A female employee must notify her supervisor in writing when
pregnant.

3.1.18 An employee must not refuse a medical examination and annual health
examination without justification.

3.2 Regulations concerning entering and exiting the company premises

3.2.1 An employee who is required by the company to record working hours
must do so himself/herself, every time when report for work or leave work, as
specified by the regulations. An employee must not let other people record working
hours on behalf of himself/herself, and must not do so for others.

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3.2.2 An employee must dress appropriately on the company premises.
3.2.3 An employee who leaves the company premises during working hours
or breaks, regardless of circumstances, must comply with the regulations. In the case
of leaving and not returning, he/she must record the time of leaving.
3.2.4 An employee must present his/her identification card to the company’s
security officers when entering the company or when asked to.
3.2.5 An employee must not enter or be in the workplace without permission,
unless required by his/her duties.
3.2.6 To take things or property of the company away from the company, an
employee must present a letter of approval, and he/she must allow to be checked by
security officers when entering and leaving the company.
3.2.8 An employee must not spend time greeting or meeting visitors for any
personal businesses. If necessary, an approval must be obtained from his/her
supervisor, and such events must only be held in a designated time and area.
3.2.9 An employee must not bring pets to the company or its premises.
3.2.10 An employee must not import, use, or possess weapons, drugs,
intoxicants, or illegal items on the company premises.
3.2.11 An employee must not enter the company intoxicated.
3.3 Reporting for work
3.3.1 An employee must report for work regularly on days and in hours
specified by the company.
3.3.2 An employee must strictly comply with the rules regarding attendance
record policy.
3.3.3 An employee must strictly comply with the regulations regarding leaves
and holidays.
3.3.4 An employee must comply with the company’s schedule regarding time
reporting for work, leaving to and returning from work outside the workplace and
leaving work.
3.3.5 An employee must not lose, damage, or edit any message on a time
card.

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Translation

3.4 Performance

3.4.1 An employee must comply with the company’s order to transfer him/her
to any department, whether temporary or permanently.

3.4.2 An employee must perform his/her duties to the best of his/her ability,
with honesty and diligence.

3.4.3 An employee must perform his/her duties with determination, resilience,
and physical and mental readiness, as a reasonable person would act.

3.4.4 An employee must utilise all his/her working hours for the benefit of
his/her duties.

3.4.5 An employee must not work for any other person or organization that
may affect his/her work performance to the company, whether it is paid or unpaid,
or receiving benefits or not.

3.4.6 An employee must not consume alcohol or take drugs, or be intoxicated
on the company premises, or while performing duties.

3.4.7 An employee must not post any announcements, gather for or organise
any meetings or discussion within the company, including distribute any documents
without permission from the managing director.

3.4.8 An employee must not allow unauthorised people on the company
premises without permission.

3.4.9 An employee must not smoke on the company premises, except within
a designated area.

3.4.10 An employee must not violate the company’s dress code.
3.4.11 An employee must not use any machinery or tools which is irrelevant
to his/her duties.
3.4.12 An employee must not eat food or snacks during working hours.
3.4.13 An employee must not abandon his/her duties or be absent without
justification.
3.4.14 An employee must not perform any inappropriate act that compromises
his/her performing duties properly and honestly.

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Translation

3.4.15 An employee must perform his/her duties, or responsibilities as
assigned by his/her supervisor.

3.4.16 An employee must obey orders of his/her supervisor regarding
promotion, transfer, or assignment.

3.4.17 An employee must maintain his/her health and be ready to work for
the company.

3.4.18 An employee must comply with the rules of the security team.
3.4.19 An employee must comply with regulations of his/her supervisor
regarding equipment use.
3.4.20 An employee must wear or use safety and hygiene equipment.
3.4.21 In the case that an employee expresses an intention to work overtime,
work on holiday, as the case may be, but fails to report for work without justifiable
reason, resulting in the company’s damages, the company may take disciplinary
action against him/her.
3.4.22 An employee must not lie down or fall asleep in an area where
machinery is operating or in a driveway.
3.4.23 An employee must not run or tease one another while working.
3.4.24 An employee having an infectious disease must not enter the company,
unless otherwise allowed.
3.4.25 An employee must not carry drugs, alcohol or be intoxicated while
working, or on the company premises both during working hours and off.
3.5 Protecting the company’s confidentiality
3.5.1 An employee must maintain the confidentiality of customers of the
company, and other employees, or any other people related to the company.
3.5.2 An employee must protect the confidentiality and reputation of the
company.
3.5.3 An employee must not disclose rates of wages or monthly salaries, raises
of himself/herself or others, intentionally or not, in such a manner that they are
known by other irrelevant people.

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Translation

3.6 Protecting the interests of the company

3.6.1 An employee must not be involved in any other business which may
affect the benefit of the company, or is the company's competitor.

3.6.2 An employee must not act in a way that is in conflict with the interests
of the company, directly or indirectly.

3.6.3 An employee must protect and promote the good reputation of the
company.

3.6.4 An employee must protect the interests of the company as if they are
his/her own.

3.7 Use and cautious care of the company's property

3.7.1 An employee must not smoke, or cause sparks in a place where
flammable materials or fuels are stored in the company, or while performing duties,
except for within a designated area.

3.7.2 An employee must not use the company’s property, for purposes not
work-related.

3.7.3 An employee must cautiously prevent the company property from being
destroyed or lost, although it is not his/her direct duty.

3.7.4 An employee must study and try to understand instructions and safety
precautions of the company property before any use.

3.7.5 An employee must use and maintain the company property as if it is
his/her own.

3.7.6 An employee must comply with orders or regulations regarding
workplace safety.

3.8 Honesty

3.8.1 An employee must not change, forge, correct, cut, or destroy the
company's documents or documents used between the company and an employee,
without the authority to do so.

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Translation

3.8.2 An employee must provide his/her accurate personal information as
required by the company. If the information provided is in accurate for any reasons,
an employee must inform the company of the correct information as soon as possible.

3.8.3 An employee must cooperate with the company in any investigation the
company conducts. Such cooperation must be in good faith.

3.8.4 An employee must not abuse his/her authority, or an opportunity
obtained as a result of working with the company in order to seek any benefits
conflicting with his/her professional ethics, regulations, laws, or the interests of the
company.

3.8.5 An employee must not report false information to his/her supervisor or the
company, or take false sick leave.

3.8.6 An employee must allow the company's security officer to inspect
him/herself if there is a suspicion of possession or obtainment of illegal items, illegal
acts or possession of weapons.

3.8.7 An employee must not conceal or distort any facts in order to gain
benefits for him/herself or other people.

3.8.8 An employee must not report or give false information to his/her
supervisor.

3.8.9 An employee must maintain his/her duties in a constructive manner,
maintain operational efficiency, and not intentionally or deliberately delay the work.

3.8.10 An employee must provide services to customers to the best of his/her
capability, and to maintain the interests of the company as well as possible.

3.9 Behaviours

3.9.1 An employee must not be involved in a fight, or harm one another on
the company premises.

This applies to other locations where the company organises or participates in
an event, assigns employees to working offsite, and in a shuttle.

3.9.2 An employee must be punctual for work-related appointments.

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Translation

3.9.3 An employee must spend money according to his/her financial status,
not allowing himself/herself to be in excessive debts.

3.9.4 An employee must not carry or possess weapons or illegal items in the
company, or while performing duties.

3.9.5 An employee must behave in a moral manner, and not commit seriously
immoral acts, both on and off the company premises.

3.9.6 An employee must obey, and follow just or lawful orders of his/her
supervisor or of the company, both verbally, and in writing and through any other
means.

3.9.7 An employee must be respectful, not speak impolitely, not act
aggressively, not express cynical behaviours, not insult, condemn or disparage other
employees or supervisors.

3.9.8 An employee must not incite, encourage or support any conflicts, fights,
or assaults among the employees of the company or between the employees of the
company and other people.

3.9.9 An employee must not intentionally commit any criminal acts, even
though he/she is not charged, such as gambling.

3.9.10 An employee must not gamble on the company premises, in the area
of the company’s accommodation, whether it is during working hours or not, or while
performing duties, whether on or off the premises and must not encourage gambling,
be in debt, or arrested in the company’s premises because of gambling.

3.9.11 An employee must not commit sexual harassment to one another
during or after working hours in the workplace, in the area of the company’s
residence, or in a shuttle bus.

4. Safety provisions

In order to maintain the safety of himself/herself and other employees, an employee must
respect and follow the following regulations. A company’s executive must strictly not allow
violation of the following regulations.

4.1 All employees must wear the company's specified uniforms including caps.

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Translation

4.2 An employee must not have his/her hair too long. If he/she wishes to have long
hair, it must be neatly tied for safety.

4.3 An employee working with machinery must, usually, circumstantially, and by
nature of work, wear protective gears including safety helmets, goggles, gloves, earmuffs,
and shoes as specified by the company.

4.4 An employee performing welding or welding-related work must wear protective
glasses to protect him/herself from arc light, leather gloves, outfits, shoes, and aprons, also,
to prevent accidents from sparks.

4.5 While operating a fork lift or a crane, an operating employee must ensure that
the vehicles are within safe distance from other employees.

4.6 Machinery and transport equipment must only be operated by qualified
employees. It is forbidden that other employees operate them.

4.7 An employee must attend to details of his/her duties in operating tools and
equipment as specified by his/her supervisor as a safety measure.

5. Disciplinary action

An employee must adhere strictly to the set discipline. It is also applicable when an
employee is in the company’s residence and vehicles. If any employee acts or refrains from
acting in such a manner considered violation of the set discipline, disciplinary action will be
considered taken against a said employer, according to the nature, level, and seriousness
of violation. The disciplinary action taken may be one or a combination of the following.
The company has specified 4 levels of disciplinary action as follows:

5.1 A verbal warning, with a written record;
5.2 A warning letter;
5.3 Unpaid, no-benefits, suspension;
5.4 Termination of employment without severance pay.

6. For termination of employment without severance pay, a company’s personnel with the
disciplinary authority shall make a decision according to the following criteria:

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Translation

6.1 An employee performing his/her duty dishonestly or intentionally committing a
criminal offence against the company;

6.2 An employee wilfully causing damage to the company;
6.3 An employee committing negligent acts causing serious damage to the company;
6.4 An employee violating company’s work regulations, regulation or order which is
lawful and just for which the company has already issued the employee a written warning,
except in a serious case for which the company is not required to give a warning. The
written warning shall be valid for not exceeding one year from the date the employee has
committed the act.
6.5 An employee absenting from duty without justifiable reason for three consecutive
working days whether or not there is holiday in between.
6.6 An employee being sentenced to imprisonment by a final court judgment. If the
offense was committed with negligence or was a petty offense, it must have caused damage
to the company.

7. If an employee has committed the violation, the company shall issue a written suspension
order specifying the violation and prescribing the period of suspension which shall not
exceed seven days. The company shall notify a said employee prior to the suspension.
During the suspension, the company shall pay a said employee the money at the rate as
prescribed, and not be less than fifty percent of the wage for a working day as received by
the employee before his/her suspension from work. Once an investigation is completed and
it appears that a said employee is not guilty, the company shall pay a said employee his/her
wage equal to fifty percent of his/her normal working day rate, during days of the
suspension, with interest at the rate of fifteen percent per annum.

The company reserves the right to alter and introduce the company’s rules and regulations
to suit future circumstances. The company shall strictly comply with the relevant labour
laws. Those with authority to carry out investigation and take disciplinary action are the
managing director, a department head, or any assigned persons.

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Translation

Section 9
Grievance procedures

1. The company has set the criteria for grievance procedures with the following objectives:
1.1 To maintain healthy working relationship between the company and its

employees.
1.2 To remedy or eliminate grievances that can negatively affect the morale of

employees.
1.3 To ensure fair and appropriate disciplinary decisions.

2. Regulations concerning grievance filing

2.1 Scope and meaning of grievance
The company wishes that its employees and the company work together with good
understanding, resulting in benefit to both parties. Therefore, in the case that an
employee has a grievance as a result of performing his/her duties or any working
conditions, or experiencing any kinds of injustice, a said employee has the right to
file a grievance.

2.2 Methods and procedures
An employee wishing to file a grievance should follow the following procedures:

2.2.1 An employee shall file a grievance by submitting a self-signed written
grievance identifying the nature/cause of grievance and its solutions to his/her
supervisor within 7 days from the date the cause of the grievance occurs.

2.2.2 An employee must submit his/her own grievance himself/herself. The
company shall not consider it if it is submitted by someone else.

2.3 Investigation and hearing of grievance
2.3.1 After a senior supervisor receives a grievance from an employee, he/she

will try to settle a grievance and give an employee explanation verbally, or may
respond in writing to a said employee within 14 days from the day a said grievance
is received.

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Translation

2.3.2 In the case that an employee fails to hear responses from a senior
supervisor within a certain period as specified in 2.3.1, or finds a said response
unsatisfactory, an employee shall submit an appeal to an executive-level supervisor
within 7 days from the day the decision in 2.3.1 is known. An executive-level
supervisor handling a said appeal will examine the appeal and notify a said employee
of a decision within 14 working days from the day the appeal is submitted. The
decision of an executive-level supervisor is final.

2.4 Procedure for the settlement of grievances

2.4.1 In the event that an employee does not proceed to file a grievance within
the period specified in the regulations, it is considered that no grievances or appeals
occur, or grievances are settled or appeals are final, as the case may be. However,
the time period specified in the regulations may be extended upon agreement
between an employee filing a grievance and an executive-level supervisor.

2.4.2 Those with authority to examine a grievance as in 2.3.1 and 2.3.2 must
proceed with justice to bring mutual benefit between an employee and the company.
In this regard, an employee may seek advice from the department manager
regarding his/her problems and grievances, as well as correct guidelines for grievance
procedures.

2.5 Protection for an employee who files a grievance and involved parties
The company adheres to equality and justice, and is determined to maintain healthy

working relationships within the organisation. Therefore, the company shall attend and
justly examine every grievance so that it is fair for both an employee who raises grievance
and other people involved, resulting in a good labour relations atmosphere.

Section 10
Termination of employment, cessation of employee status, severance pay, and
special severance pay

1. Policy

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Translation

1.1 Although the company dearly wishes that all employees work comfortably with
the company and succeed in his/her career, but there may be times an employee wishes to
leave the company or the company is obligated to terminate his/her employment due to
different reasons.

1.2 When a person is, by status, no longer the company’s employee, under any
circumstances, he/she must return all company's property once in his/her possession
obtained because of his/her position, and any debts and liabilities a said person has to the
company must be settled.

1.3 An employee wishing to resign must submit a written notification to his/her
immediate supervisor in advance. A probationary employee must submit a written
notification at least 7 days in advance. An employee that has completed his/her probationary
period must submit a written notification at least 30 days in advance.

2. Termination of employment and cessation of employee status will occur in the
following cases:

2.1 Death;
2.2 Resignation;
Where the employment is of definite period, the company or an employee may
terminate an employment contract by giving advance notice in writing to the other party on
or before a due date of wage payment in order for the termination to take effect on the
following due date of wage payment. The advance notice needs not be longer than three
months.
2.3 Termination of employment during the probationary period;
2.4 Termination of employment due to disciplinary violation;
2.5 Termination of employment in any of the following cases entitles an employee to
severance pay:

2.5.1 Termination of employment due to redundancy, where the company
finds its current workforce to be excessive, or that any certain department needs to
be dissolved;

2.5.2 Termination of employment due to employee’s unfit health.

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Translation

2.5.2.1 Sick leave taken more than 30 days in a year, unless caused by
work-related illnesses.
2.5.3 Termination of employment due to unsatisfactory output or an employee
failing to meet certain standards of the company;
2.5.4 Termination of employment due to untrustworthy behaviours or
professional incompetence.
2.5.5 Termination due to employee's poor heath or lack of ability.;
2.5.6 Termination of employment due to retirement at age 60 (calculated
using a birth date on an ID);
2.5.7 Termination of employment due to an employee having mental disorders
or their symptoms.

3. Severance pay
3.1 An employee whose employment is terminated in the following cases is not

entitled to severance pay.
3.1.1 An employee whose employment is terminated as a result of disciplinary

action under article 5 of section 8 in these regulations.
3.1.2 The employment of definite period can be done in the case of

employment for a special project work, which is not in the normal course of business
or trade of the company and which shall have a definite beginning and ending time,
or for work of a temporary nature with ending or completion schedule, or for seasonal
work and the employment is made during the season, provided that the work must
be completed within a period of not exceeding two years for which the company and
the employee have entered into an agreement at the beginning of the employment.

3.2 An employee whose employment is terminated will receive severance pay as
follows:

(1) An employee who has worked consecutively for one hundred and twenty
days, but less than one year, shall be paid not less than thirty days of the most recent
wage rate received by him/her or not less than the wage he/she received for work

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Translation

performed in the last thirty days as an employee who is paid on the basis of his/her
work output units;

(2) An employee who has worked consecutively for one year, but less than
three years, shall be paid not less than ninety days of the most recent wage rate
received by him/her or not less than the wage for work performed in the last ninety
days as an employee who is paid on the basis of his/her work output units;

(3) An employee who has worked consecutively for three years, but less than
six years, shall be paid not less than one hundred and eighty days of the most recent
wage rate received by him/her or not less than the wage for work performed in the
last one hundred and eighty days as an employee who is paid on the basis of his/her
work output units;

(4) An employee who has worked consecutively for six years, but less than
ten years, shall be paid not less than two hundred and forty days of the most recent
wage rate received by him/her or not less than the wage for work performed in the
last two hundred and forty days as an employee who is paid on the basis of his/her
work output units;

(5) An employee who has worked consecutively for ten years or longer shall
be paid not less than three hundred days of the most recent wage rate received by
him/her or not less than the wage for work performed in the last three hundred days
as an employee who is paid on the basis of his/her work output units.

The termination of employment in 3.2 shall mean any act of the company which
prevents an employee from continuing to work and receiving his/her wages, whether due
to the termination of the employment contract or for any other reason, and shall include
the situation where the employee cannot work and be paid because the company can no
longer operate its business.

3.3 If the company terminates an employee because improvement being made to
the working unit, production, distribution or service processes, due to the utilization of
machinery or change of machinery or technology, causing reduction in the number of
employees, and the company shall notify the Labour Inspector and the employees to be

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Translation

terminated, of the date of employment termination, reasons for employment termination,
and list of names of the employees at least sixty days in advance of the employment
termination date.

If the company fails to give advance notice to an employee of his/her termination, or gives
advance notice but shorter than the period of time specified in 3.3, the company shall pay
special severance pay in an amount equal to sixty-day wage at the most recent wage rate
received by the employee or equal to the wage for work performed in the last sixty days as
an employee who is paid on the basis of his/her work output units.

If special severance pay is made in lieu of the advance notice as in 3.3, it shall be deemed
that the company has paid remuneration instead of providing advance notice under the Civil
and Commercial Code.

If the company terminates an employee as in 3.3, and a said employee has worked
consecutively for six years or more, the company shall pay special severance pay in addition
to the severance pay in 3.2, in an amount not less than the wage received at the most
recent rate for fifteen days, for each complete year of work; or not less than the wage
received at the most recent rate for fifteen days for each complete year of work in as an
employee who is paid on the basis of his/her work output units, but the total severance pay
under this Section, in total, shall not exceed the amount of the wage at the most recent
wage rate for three hundred and sixty days or not exceed the wage for the last three
hundred and sixty days as an employee who is paid on the basis of his/her work output
units. For the purpose of special severance pay computation, where an employment period
is less than one year but the fraction thereof is greater than one hundred and sixty days, it
shall be deemed to be one year of employment.

3.4 If the company relocates its place of business and the relocation materially
affects the ordinary course of living of its employees or his/her family, the company shall
notify its employees of the relocation not less than thirty days prior to the date of relocation.
In this regard, if an employee no longer wish to work for the company, he/she has the right
to terminate his/her employment contract. He/she is entitled to special severance pay not
less than the rate of severance pay he/she would be entitled in 3.2.

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Translation

If the company fails to give an advance notice to an employee as stated in 3.4 paragraph
one, the company shall also pay special severance pay in lieu of the advance notice in an
amount equal to thirty days of the most recent wage rate received by him/her or not less
than the wage for work performed in the last thirty days as an employee who is paid on the
basis of his/her work output units.
An employee has the right to submit a request to the Labour Welfare Committee to
determine whether his/her particular case requires the company’s advance notice, or that
he/she has the right to terminate his/her contract as well as receive special severance pay
according to 3.4, paragraph 1.
To terminate a contract pursuant to 3.4 paragraph 1, an employee must exercise his/her
right within 30 days from the day the company moves its location, from the day the Labour
Welfare Committee gives its decision, or from the day the court reaches its final judgement.

Section 11
Health and safety

1. General provisions
An employee must cooperate with the company by following the given health and safety
guidelines so as to prevent potential hazards for employees and to maintain employees in
good health.
2. Annual health check
The company arranges that an employee undergoes a health check-up annually. This is
carried out by appointed first class medical practitioner. If an employee is found ill, he/she
will be temporarily suspended or restricted to work in a scope further determined. If an
employee refuses a medical examination or an annual health check-up without justification,
the company considers such doing a breach of the regulations.

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Translation

3. Use of company vehicles
3.1 An employee can only use a company vehicle when his/her immediate supervisor

gives an order to fulfil a certain task quickly. There must also be approval from a senior
supervisor and the general administration section.

3.2 A task starts when a company vehicle leaves a designated parking spot, and ends
when a task is fulfilled and a said vehicle is parked in a designated area.

3.3 In the case that an employee uses a company vehicle without permission, takes
a company vehicle to any place not work-related, or take a company vehicle home, and is
involved in an accident, he/she will be held entirely responsible for the repair of such vehicle.
The company shall strictly not be responsible for such repair.

Section 12
Applicability and its announcement
The regulations in this document are applicable to every employee.
If there are rules, regulations, announcements, or orders, which were in effect prior to the
effective date of these work regulations, found to conflict with these work regulations, those
conflicting elements should be repealed and corresponding elements in these work
regulations should be instead enforced.
Announced and effective from 1 August 2017.

Signed by: 签名 ___________________________________
(Mr. Richard Changchun Zhang)
Managing Director
常务 董事

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