Employee Handbook of Chica Enterprises - Case Study Example

Employee Handbook/HR Manual Student's Name: Course Name and Number: Instructor's Name: Date Submitted: CHICA ENTERPRISES. UAE Head Office: Floor 22 Wafi Business Centre Dubai P.O. Box 16754 Telephone: 04 563288 Fax 04 563265 Table of contents. i. Company Background…………………………………………………………………………………………………………………3 ii. Welcome to Chica Enterprises……………………………………………………..……………….…………………………….4 iii. About the Company……………………………………………………………………….……..……………………………………5 iv. About the HR department………………………………………………………………………..…………………………………6 v. Employee Probation……………………………………………………………………………….…………………………………..7 vi. Remuneration and Benefits…… …………………………………….………..………………………………………………….7 vii. Attendance Policy and Hours of Work …………………………………………….………………………………………….8 viii. Annual Leave…………………………………………………………………………….……………………………………………….9 ix. Health Insurance……………………………………………………………………………………………………………………….10 x. Equal Employment Policy………………………………………………………………………………………………………..11 xi. Behavior at Work ………………………………………………………………….…………………………………………………12 a. Telephone/ internet Use………………………………………………………………..……………………………….12 b. No Smoking Policy…………………………………………………………………………………………………………..13 c. Dress Code Policy…………………………………………………………………………………………………………….14 xii. Maternity Leave……………………………………………………………………………………………………………………....14 xiii. Performance Review…………………………………………………………….………………………………………………….15 xiv. Resignation/Termination of Employment………………………………………………………………………………….15 xv. Acknowledgement…………………………………………………………………………………………………………………….16 Company background. Chica Enterprises was founded in 1998, but has over the years rose to be one of the leading beauty products retailing company in the world. The headquarters is in Italy, Europe where it was founded. Chica Enterprises has made its physical presence in other continents such as the Latin America, US, Asia as well as the recent move into the Middle East. The group proudly operates over 150 outlets across the world ranging from small local express shops to superstores operating 24 hours a day. It has increased its job creation opportunities and now employs over 1500 employees globally up from the initial 65. In the Middle East, Chica Enterprises will be in eight branches across three Emirates namely Dubai, Abu Dhabi and in Sharjah. In the long run, the company intends to venture in the other emirates, as well. Entry into the foreign markets has been mostly through direct ownership of express shops or outlets though, in some instances, distribution agents are used. Welcome to Chica Enterprises A note from the CEO Chica Enterprises is one of the fastest and successful retail companies in the industry. It has rose from a single outlet in Italy and had its presence felt in over 40 countries across the globe. It’s my delight to welcome the new staff on board as well as thank those who have been here to see the growth of the company since its inception. I am certain you will find it fulfilling and exciting to work with Chica Enterprises, and we look forward to a fruitful relationship. Our employees have always been viewed as one of our most valuable resource as without them we can do less. This manual will act as a guide to all the Chica employees although there are some minimal variations based on the prevailing labor laws of the countries we exist in. Most policies that govern the staff of the company will be highlighted, and it will answer many queries regarding your employment. For further clarifications feel free to inquire with the local human resources department. Wish you an exciting and rewarding experience. Once again, Welcome! Sincerely, Peter Gonzales CEO. About the Company. Vision: To be the unique and leading global beauty products provider of choice for men and women. Mission statement: Empowering people across the globe improve their inner and outer self through offering beauty solutions that are innovatively developed and scientifically tested. Core values: Our core values include integrity where high standards of ethical standards are observed. Teamwork is also vital where the spirit of togetherness despite our diversity is embraced. We value innovation which is a vital aspect in today’s highly competitive and dynamic world. Passion of what we do and social responsibilities where we give back to the society we operate in are other core values of the company. Products: Chica Enterprises deals with beauty products ranging from bath and body including soaps hair removal, body wash, bath accessories as well as hand and body lotions. Additionally, there are fragrances which include body sprays and perfumes for all genders. Hair care products available include shampoos and conditioners, treatments, oils, weaves as well as the hair cutting and styling tools. Moreover, Chica Enterprises stocks varied make up products which range from eye, face and nails. Skin care products retailed at Chica Enterprises include the cleansers, moisturizers, exfoliators, oil control products as well as lip care products such as lipsticks and lip gross. Other products by the company include Shaving products Massagers and spa. About the HR department Chica Enterprises adheres to the Federal Law No 8 of 1980 labor laws which govern the United Arab Emirates employment relations. The laws categorically dictate issues such as the leave, hours of work an employee should work, employees’ benefits as well as the employer employee relations. The current senior HR Manager at Chica Enterprises for the MENA region is Mr. Ali Al Baloushi. The human resources department will ensure an open door policy and will welcome any issues that employees feel are best handled by it. Notably, resolving issues with the immediate supervisor ensures urgent responses, but employees should escalate matters when necessary (Armstrong, 2009; Patrick Wright et al, 2011). The role of the human resources department will include but not limited to the following: 1. Developing the company policies and practices. 2. Safeguard the company from legal liability by ensuring compliance with the set or prevailing employment and safety laws. 3. Conducting administrative duties such as employee’s document or records keeping while ensuring confidentiality. 4. Promoting employee retention, development and motivation especially of those that have excellent performance. All employees are expected to, update any information that may affect their benefits for instance the birth of a child or marriage. 5. Organizing regular training for employees. 6. Promoting discipline in the company by employing a fair disciplinary system. 7. Rewarding thus motivating employees by putting in place a fair and equitable compensation system. 8. Dismissing nonperforming and non-compliant staff members. 9. Ensuring a safe and conducive working environment for all employees. Employee Probation Chica Enterprises will be subject to probation for a period of not more than 6 months, a period in which one is expected to show outstanding performance to warrant confirmation. During this period, both the employee and the company are at liberty to terminate the contract without a notice. The company is not liable to pay any end of service benefits when the contract is terminated while the employee is on probation (HSBC, The World Bank and PWC, 2010). The duration of permanent employees is a maximum of 4 years with a probability of renewal if the employee’s performance is commendable. Remuneration and Benefits Permanent employees will be eligible for gratuity which will be based on the prevailing UAE laws precisely Article 132 of the UAE labor laws. Gratuity will be to employees who have served for over one year after 4 years of continuous work. The calculation will be based on the last month of work pay (HSBC, The World Bank and PWC, 2010). Chica Enterprises will cover for the cost of repatriation. However, if the employee terminates the contract willingly and without a notice, the company will not be at liberty to cater for such costs. After 2 years of service, non UAE national employees can obtain residence visas for spouses and children, but a marriage certificate must be provided. In addition to getting a gratuity, UAE nationals will be pensionable (HSBC, The World Bank and PWC, 2010). The company will refund the employees any money spent while on duty especially travel while marketing on a weekly basis. Details on the limit refundable will be communicated in due course. Employees intending to further their education will be supported financially. However, those who have worked for over one year and shown good performance will be eligible. Sponsored employees are expected, to manage their time effectively, so that their education is not at the expense of the company’s profitability. Attendance Policy and Hours of Work It will be the responsibility of all employees to report working and in a timely manner. Failure to report or lateness increases the company’s costs of production, causes delays and generally inconveniences other employees. In case one is ill, they are expected to report to their immediate supervisors in the shortest time possible preferably within or before the reporting time so as to reduce production gaps. Continuous absenteeism will require a written explanation evaluated by the immediate supervisor before other measures are taken. Persistent lateness is unacceptable as it has a negative impact on production and the general well-being of a company. Persistent lateness and absenteeism will attract a written communication from the company and should the status continues, disciplinary action will be taken including and up to termination of the contract. (Brown, R, 2005). Normal reporting time is 8.00 am and closing 5.00 pm with a one hour lunch break between. Closing hours during the Ramadan season will be at 3.00 pm. Due to the nature of work or as business may necessitate, employees may be asked to work on holidays, weekends or extend the normal scheduled time. All employees are expected to comply, but notices will be given in advance. The computation of overtime compensation will be 25% above the normal wage rate, but this may rise up to 50% if the overtime is from 9.00pm to 4.00 am. Working on national holidays attracts 50% above the normal rate compensation if one day off compensation is issued or 150% if no off day is issue. The company will reserve the right to use either. (HSBC, the World Bank and PWC, 2010). Annual Leave Employees will be entitled to an annual paid leave of 30 days if they have worked for a year and 2 days per month if they have worked for more than six months, but less than a year. The 10 normal public holidays as well as others that the government may endorse do not count as annual leave days. Sick leave and maternity leave are also independent of annual leave (HSBC, The World Bank and PWC, 2010). Leave days not taken within the year will be carried forward to the next year, but should be utilized within the first quarter of the next year or forfeited. Sick leave is permitted within the year, but only the first 15 days will be paid in full while the subsequent 30 days will be paid in half. There will be no payment for sick leave above 30 days. Documentation of one’s health well-being from a reputable hospital and the doctor will however be required to certify illness claims (HSBC, The World Bank and PWC, 2010). Being an Islam country, employees can enjoy a non-paid religious leave for the Mecca pilgrimage tour. However, this will be for employees who have worked for over two years (HSBC, The World Bank and PWC, 2010). In case of death of a close member or relative of an employee a maximum of 3 working days off will be granted. Close relatives include a child, spouse siblings or parents. Health Insurance Chica Enterprises will offer all its employees and their dependents with an insurance cover. A separate document indicating the insurance provider and the accredited hospitals will be issued separately. There will be a short term and long term disability insurance cover to permanent employees who face challenges hindering their ability to work either mentally or physically while in the line of duty. A separate guide detailing this product will be issued in due time. All permanent employees will also be entitled to a life insurance whose computation will be pegged with one’s basic income. Dental and optical insurance covers will also be offered to a certain limit per year. Employees will be advised separately on the approved service providers for the same. Equal Employment Policy Chica Enterprises appreciates diversity and fair employment and will therefore, open its doors to all qualified employees regardless of their backgrounds in terms of race, nationality, gender, color or religion. This fairness will extend to other human resources practices such as promotions and transfers, training opportunities, layoff as well as compensation. Although the preference for employment opportunities is the UAE citizens, non-citizens who have been cleared by the Ministry of Labor and Social Affairs and issued with a work permit will be considered (HSBC, The World Bank and PWC, 2010). The company protects all its employees from harassment on any basis such as race, nationality, gender or religion. All employees are expected to respect each other, and any employee who feels harassed should report the matter to their immediate supervisor or the human resources department. Harassment within the work place deters one from performing to expectation as it has intimidating effects on the victim (Armstrong, M, 2009). Soliciting of any form by one employee from another is strictly unacceptable and may attract a disciplinary action against perpetrators. Behaviour at Work, including Telephone Use, No Smoking Policy and Dress Code Policy Chica Enterprises expects all employees to behave professionally, perform excellently and have good personal conduct. All employees should be fair and honest to both internal and external customers. Internal customers are fellow employees who must be respected for effective team work. Employees are not expected to solicit for money or any favors from the customers. They are also supposed to be problem solvers and assist clients despite being in other departments. All employees are expected to sign a non-disclosure agreement that will be provided separately indicating that they will not disclose the company’s information to anyone while in services or out of service of the company. i. Telephone Use In order to reach people across varied departments, there will be a 3 digit extension number while there will be separate telephone to reach out clients on work related issues. The company telephone is intended for business and should therefore be used for work related or emergency issues only. Employees may be forced to reimburse the company for telephone costs incurred for personal use. There are pay telephones near the company premises where one can make personal calls. Employees are expected to respond to telephone calls promptly and offer solutions to the callers. Professional language must be used at all times. Calls for other employees should be transferred to the correct extensions or a message taken for them. Internet provided must be used for work related research or communication. Access to programs, software’s and information on Chica Enterprises should only be accessed by unauthorized personnel only. Sexually offensive, racial discriminatory or sexually explicit materials should not be distributed using the company’s resources. Failure to adhere to these rules will attract disciplinary action. Regular monitoring of the employees emails and internet use will be done. Downloading of entertainment based programs and games are prohibited. Work related programs and software must be in line with the set licensing and vendor’s requirements to prevent the company from liability. (Armstrong, M, 2009). Unless formally communicated, no employee should act as the company’s representative and as such should not communicate on behalf of the company through any mode of communication. This includes the media reporters, the internet or telephone conversation. Failure to adhere to this will attract disciplinary action. ii. No Smoking Policy Chica Enterprises adopts a no smoking policy at the workplace and therefore, no smoking is allowed within the building. However, there is a smoking zone outside the building where employees can exploit. The company will also not allow smoking breaks and one will need to utilize the normal break time for smoking. Smoking outside the designated area may attract disciplinary action and employees are expected to comply as well as keep the smoking zone clean. (Armstrong, M, 2009). Use of alcohol as well as other drugs is prohibited and all employees are expected to comply. No employee should be in possession or use drugs and alcohol within the company’s premises. iii. Dress Code Policy Image is everything is a common saying. Chica Enterprises will expect all its employees to portray a good image by dressing neatly and appropriately at all times. Branded t-shirts and shirts will however, be worn regularly to promote the company’s products and employees are expected to comply. The company expects all employees especially to dress conservatively. Extremely revealing clothes will not be tolerated as they send a bad message to the company’s reputation. Dressing must also not insult the UAE culture and traditions. Men should always be neatly dressed clothes and shorts and sandals will not be accepted, Maternity Leave Maternity leave will be, in addition to annual leave. Female employees who have worked for more than one year are entitled to a 45 working days maternity leave. Maternity leave for female employees whose service is below one year will be unpaid. The company will allow female employees with birth complications 100 days break from work, but they will be required to submit the necessary health records to confirm the same. However, this will not be compensated in monetary terms (HSBC, The World Bank and PWC, 2010). Paternity leave of 10 working days will be offered to father’s whose legally married wives have delivered. Support documents for the same will however, be required for verification and documentation purposes. Employees who will adopt children in the course of their stay with the company will be entitled to 30 days paid leave to allow bonding with their new family member. Necessary documents must however, be submitted to the human resources for verification and record keeping (Snell, 2010). Performance Review The success of the company will by a great magnitude rely on the performance of the employees. On this regard, monitoring of individual performance will be done closely. The supervisors and managers will discuss performance with the employees informally, but formal reviews will be made twice per year. These reviews will include, but not limited to the employees strengths and weaknesses and how to improve. The targets set will be evaluated, and a plan set to improve on the performance. The reviews will be vital in planning for staff training, wage reviews, as well as promotions. Wage reviews will be done annually and based on the outcomes, as well as the company’s profitability increment will be considered. Resignation/Termination of Employment If an employee decides to leave the company, they are expected to give a written one month notice to allow the company to make plans for a replacement. Failure to this will attract a one month pay which will be deducted from your end of job benefits. Moreover, before exit, resigning employees will be expected to fill in a brief exit form which will be vital in the processing of one’s benefits. The employee will further be expected to hand over all the company’s property to the immediate supervisor before leaving. Termination of employment The company can decide to terminate the employment contract due to, but not limited to the following reasons: Persistent absenteeism and lateness Persistent non performance Improper use of the company resources leading to losses. Drug use or possession Conviction of serious crimes by a court of law. Insubordination which includes, but not limited to use of offensive or vulgar language as well failure to follow the supervisor’s orders. Being in possession with armed weapons. Falsifying information to the company including the documents to gain employment, indicating incorrect reporting time on the attendance list or signing for someone else. Disorderliness and use of violence within the company. Stealing company’s property or from other employees. Violation of the conflict of interest rules. Employees who are terminated are at risk of losing their gratuity. Acknowledgement I acknowledge that I have read thoroughly and understand the content of all the contents of this hand book which act as a guideline concerning the company. I understand the company’s expectations of me as an employee and all the prohibitions (Hoft, 2007). Dated this ……………day …………….of ……….. Name:………………………………………… Signature: ………………………………………….. References: Armstrong, M. (2009). Armstrong's Handbook of Human Resource Management Practice. London:Kogan Page. Brown, R. (2005). The Do's and Don'ts for Writing an EMPLOYEE HANDBOOK. Rural Telecommunications, 24(5), 20-28. Hoft, J. (2007). YOUR EMPLOYEE HANDBOOK: IS IT AN ENFORCEABLE CONTRACT?. Entrepreneurial Executive, 1213-22. HSBC, The World Bank and PWC. (2010).Doing business in UAE.Take your employee handbook online: 8 tips. (2012). HR Specialist, 10(9), 1-2. Patrick Wright, et al, (2011). The Chief HR Officer: Defining the New Role of Human Resource Leaders.Hoboken:John Wiley & Sons Publishers. Snell, J. (2010). Does Your Employee Handbook Need Updating?. Franklin Business & Law Journal, (3), 15-28 Read More