Personnel Regulations

CHAPTER 1 - GENERAL PROVISIONS

Purpose

Clause 1. The purpose of this regulations is to regulate the general principles with respect to the rights and obligations and the working conditions of the personnel of TEMSAN YAPI VE MAKİNA ENDÜSTRİ A. Ş.

Scope

Clause 2. This regulations covers all the personnel who work for TEMSAN YAPI VE MAKİNA ENDÜSTRİ A. Ş. under a contract of employment. The provisions of this regulations also apply for those of foreign nationality for matters not included in their contracts and procedures.

Terms Used in the Regulations

Clause 3. In this regulations;

TEMSAN means the legal personality of TEMSAN YAPI VE MAKİNA ENDÜSTRİ A. Ş.,

Company Management means the Top Management (CEO) acting on behalf of the Board of Directors of TEMSAN YAPI VE MAKİNA ENDÜSTRİ A. Ş.,

Human Resources means the department which is responsible for the management of the Human Resources of the company.

Reserved Provisions

Clause 4. The right is reserved to apply the provisions of relevant clauses in the Labour Law, the Social Security and General Health Insurance Law, the Unemployment Insurance Law, and the other laws, statutory rules and orders pertaining to working life.

CHAPTER 2 - RECRUITMENT

Recruitment Requirements

Clause 5. The below conditions are required for recruitment of the personnel that will work for TEMSAN:

1. 1. Not to have received a sentence because of any infamous crime or not to have been sentenced because of any grave crime limiting public rights,
   2. To have had the education, knowledge, skills, competence and experience required by the job,
   3. To be suitable for the health requirements of the job and submit the required documents,
   4.  Not to have an employment contract terminated because of the clauses 25/ii of the Labour Law no 4857.

The aforementioned requirements of recruitment may be changed by the Company Management according to the characteristics of the candidate to be recruited or of the job to be employed for.

Job Application of a Candidate

Clause 6. When the candidate personnel who want a job apply to TEMSAN by means of job application channels, they fill in a “Job Application Form” organized by the Human Resources. It is essential for the “Job Application Form” to be filled in completely and correctly. Having completed this form does not mean that one has been accepted for a job. Candidates are responsible for filling in the job request form completely and correctly and for the correctness of the details that they have provided. Those who have provided details contrary to the truth are immediately dismissed even if they have been recruited.

Since the personnel to be recruited are asked, according to the characteristics of the personnel and of the job to be employed for, about their details with respect to their commercial, administrative, and occupational status, and family and immediate relatives further to the requirement for acceptance of any recruitment and of TEMSAN Ethical Code, these details required to have been stated by the personnel.

The Human Resources may request, under the seal of secrecy, details from the references provided on this Job Application form, from the previous workplaces of the candidate, and from other sources deemed appropriate. In addition, the Human Resources may use various methods of evaluation in order to determine the suitability of the candidate for the job.

Recruitment of the Candidate and the Documents Required

Clause 7. A candidate approved for recruitment is informed of the nature of the job to be employed for, the job starting date, the wage, the method and time of payment of the wage, and of whatever has not regulated in this regulations, if any, and of the documents required for recruitment and the date when to start the job.

In the event that the required documents are whole and complete, an employment contract and its annexes are signed before starting the job. Signing of the employment contract and the other documents mean that this regulations and the other requirements have all been accepted.

The candidate’s date of starting the job is the date provided on the employment contract. The employment contract is kept in the personnel’s file.

Employment Contracts

Clause 8. TEMSAN may make an indefinite or fixed term employment contract with the recruited personnel for up to 24 months when deemed necessary and depending on the nature of the job according to the provisions of the Labour Law no 4857. In this case, the contract is automatically terminated without notification and without any compensation at the end of the term of the contract.

Trial Period

Clause 9. The recruited personnel is subject to a trial period of 2 months. During the trial period, both the employer and the recruited personnel have the right to terminate the labour contract without considering the term for notification of termination. In this case, the candidate is only entitled to get the wage for the period of employment.

Training of Starting the Job for the New Personnel (Orientation)

Clause 10. A Training Program of Starting the Job (Orientation) is carried out in order to ensure the recruited personnel adapt to the workplace.

CHAPTER 3 – DUTIES AND RESPONSIBILITIES

No Working for Others

Clause 11. The personnel may not accept a duty under any labour contract at any public or private organization other than TEMSAN. They may not get engaged in any business in person or indirectly, and they may not afford advantage from any company.

The personnel who work as an arbitrator, a mediator or an expert for judicial or administrative authorities are exempt from this ban. Duty of representation or membership at committees established under law and at nongovernmental organizations is subject to approval of the Company Management. Working for an institution or organization other than TEMSAN in areas within the profession or speciality of the personnel is subject to written approval of the Company Management.

Confidentiality and Protection of Trade Secrets

Clause 12. The personnel undertake that they will keep confidential the information that is provided for them by TEMSAN for their job, or is possible to be accessed or learnt due to their presence at the workplace and gives TEMSAN a competitive advantage, that they will never use in any way the information after leaving the job, that they will not conduct work that will create an environment of unfair competition, and that they will not disclose it to third parties without written consent of TEMSAN. Any personnel violating the prohibition of competition is obliged to indemnify the employer’s unobtainable profit or the like.

They may not disclose to and/or share with third parties the confidential information described as “Trade Secrets” such as TEMSAN-developed confidential software, technology, knowledge, systems, practices, method, or ideas, practices, designs, modes, works, inventions not yet heard about or known in industry without the written consent of the Company Management.

Use of Information Technologies

Clause 13. The recruited personnel are required to sign and have a copy of a “Commitment on Ensuring Confidentiality and Safety”. A department within TEMSAN responsible for Data Processing services inspects whether they comply with the clauses in the Commitment on Ensuring Confidentiality and Safety.

Occupational Health and Safety

Clause 14. TEMSAN takes precautions subject to laws and regulations for occupational health and safety, and the personnel are obliged to comply with any precaution taken for occupational health and safety. The personnel are obliged to use and protect the Personal Protective Equipment provided for them, and take a new one when they are unusable. They are obliged to wear the work clothes given by the employer 2 times a year one for the summer and one for the winter.

In addition, the recruited personnel are trained and given against signature an “Instructions for Occupational Health and Safety”.

It is forbidden at TEMSAN’s workplaces for, except the personnel required to use a telephone as part of the job, all the personnel working at production to talk on the phone, listen to music, go on the internet, send messages, play games etc., namely, be busy with activities done on a telephone, and to smoke out of break times since these pose danger in terms of occupational health and safety and decrease efficiency. Smoking is forbidden out of the areas determined as smoking areas during break times. Labour contract of the personnel violating this rule is terminated subject to Paragraph 2 of Clause 25 of the Labour Law no 4857.

Appearance and Wearing Regulation

Clause 15. The personnel is obliged to wear in accordance with their duty, TEMSAN’s seriousness and culture and take care of their personal appearance. Appearance and wearing may be regulated by the decision of the Company Management for temporary or permanent periods. This regulation is notified through a procedure or an announcement.

Obligation to Notify Personal Details and Changes

Clause 16. The personnel are obliged to immediately notify to the Human Resources the changes in their marital status, the changes in their residence, any changes in their special life that could concern their job, and the official changes, if any, like military service by documentation, and others by declaration. Depending on the characteristics of the job, the personnel are obliged to notify the information about their trade, administrative, occupational, family and immediate relatives, and the changes in their business operations.

CHAPTER 4 – WORKING CONDITIONS AND REGULATION OF WORKING LIFE

Working Periods

Clause 17. Weekly working time is 45 hours. The Company Management determine and apply the flexible working orders, weekly working time described in the Labour Law as required by the job and circumstance by not exceeding an average of 45 hours.

The Company Management may divide the weekly working time into days differently, distribute it differently by not exceeding 11 hours in a day within the legal equalization period, and instruct catch-up/equalization work when deemed necessary.

Work attendance of the personnel is followed through a face reading system. The personnel are obliged to introduce themselves to the system at work entries and exits (including late entries or early exits for any reason such as leaves, hospital visits, duties, etc.) for complete record keeping and for avoidance of loss of rights of them.

Immediate supervisors of the absent personnel notify the human resources of them until not later than 9.00 o’clock together with their reason for absence.

Overtime Work

Clause 18. The personnel are obliged to do their assigned job within daily normal working time, and the units are obliged to organize their operations in a way that does not require overtime work. When necessary, TEMSAN may, subject to legal provisions and limitations, have the personnel work overtime at times out of the weekly working time.

National Festivals and General Holidays

Clause 19. Days of national festivals and general holidays are provided below:

1. New Year Holiday: 1 day (January 1)
2. Ramadan: 3,5 days (Eve is half time.)
3. Festival of the Sacrifice: 4,5 days (Eve is half time.)
4. National Sovereignty and Children’s Day: 1 day (April 23),
5. Labour and Solidarity Day: 1 day (May 1)
6. Youth and Sports Day: 1 day (May 19),
7. Democracy and National Unity Day (July 15),
8. Victory Day: 1 day (August 30)
9. Republic Day: 1,5 days (October 29 from 13.00, October 28).

TEMSAN may, when deemed necessary, have its personnel work on the days of national festivals and general holidays by paying them an overtime wage.

Paid Annual Leaves

Clause 20. Any employee with at least one year of work, including the trial period, starting from the day of starting the job, is allowed a paid annual leave. Periods of paid annual leaves are applied as follows according the recruitment date and the completed time of service:

A paid annual leave of 14 business days is allowed to those who have completed 1-5 years,

20 business days to those who have completed 6-14 years, and

26 business days to those who have completed 15 years and more.

A paid annual leave may not exceed 26 business days under any circumstances.

Saturday is considered a business days when calculating leave days. The duration of a paid annual leave to be allowed to the personnel aged 18 and younger, and to the personnel aged 50 and older may not be less than 20 business days.

The personnel are required to actually use their right of paid annual leave within the year of deserving. Right of leave is not replaced by money payment during work. In the event of any termination of the labour contract for any reason, wage of a worker for the times of annual leave deserved, but not used is paid to him or the right holders based on the wage on the date of the termination of the contract.

The personnel may not work for a paid job within the time of leave.

Collective Paid Annual Leaves

Clause 21. In the event that the personnel are allowed a collective paid annual leave, procedure is applied as per the Regulation prepared by the Ministry of Labour and Social Security. This kind of collective paid annual leaves are allowed between the beginning of April and the end of October.

Casual Leaves

Clause 22. The personnel are allowed a paid casual leave limited to the reasons provided below to be documented within 10 days.

1. 3 calendar days in case of marriage of an employee,
2. 5 calendar days in case of giving birth by a spouse of an employee,
3. 3 calendar days in case of death of a mother, father, sibling, spouse or children of an employee,
4. A paid leave is allowed for up to ten days in whole or in parts within one year for use of one working parent only based on a medical report for treatment of a handicapped child by at least seventy percent or with a chronic disease.

Sickness and Sick Leaves

Clause 23. The personnel are applied the principles provided below in cases of sick leaves due to sicknesses.

1. A sick employee who will not be able to go to work notifies his manager of the circumstance within 24 hours.
2. The employee is required to submit a report, in cases of sick leaves, from the Social Security Institution.
3. The employee is not paid anything other than the pension against incapacity to work to be paid by the Social Security Institution.

The right of the personnel to terminate the labour contract without notification in cases such as sicknesses, accidents, births and pregnancy originates after the aforementioned cases have exceeded six weeks’ time over the terms of notification in Clause 17 based on the working time of the worker at the workplace. These terms are not binding for occupational accidents.

Pregnancy and Maternity

Clause 24. Action is taken as per the Labour Law in case of pregnancy and maternity. It is essential that any female employee is allowed a leave for 16 weeks, 8 being before birth and 8 after it. In case of multiple pregnancy, two weeks’ time is added to the leave of eight weeks before birth. However, the female worker may, at her option, work at the workplace until three weeks before birth with the doctor’s approval if her health status is appropriate. Then, the times for which the female worker has worked are added to the times after the birth.

In case of a preterm birth, the female employee is allowed the times of non-working not used before birth by adding them to the times after the birth.

The female employee, at her option, is allowed an unpaid leave for up to six months after the sixteen weeks or after the eighteen weeks in case of a multiple pregnancy. This time is not considered in calculation of her right of paid annual leaves.

Female workers are allowed a breast-feeding leave of one hour and a half in total in a day for their breast-feeding of their children younger than one year old.

Health Expenses

Clause 25. Health expenses of the personnel are covered by the Social Security Institution under the provisions of the Social Security and General Health Insurance Law.

Active Military Service

Clause 26. The personnel called for compulsory military service are discharged from TEMSAN. When the personnel who have completed the compulsory military service apply to TEMSAN within the 2 months after doing so, they may be recruited again in case of vacancy. Then, the time passing for compulsory military service is not added to the personnel’s length of service.

Reserve Military Service and Legal Work

Clause 27. Labour contract of a worker who has been mobilized for a movement or any reason other than the active military service or who has left the job due to a duty of work resulting from any law is deemed to be terminated by the employer two months after the day of leaving the job. The worker has to have worked in that way for at least one year in order to benefit from that right. Two days are added for each extra year after one year’s working. This time may not exceed ninety days in total.

Wage of the worker stops during the time of waiting in order for the labour contract to be terminated. When the personnel who have completed the reserve military service apply to TEMSAN, they may be recruited again in case of vacancy.

Substitutions, Additional Duties

Clause 28. The personnel may be assigned a duty other than their own duty by proxy or as an additional duty when deemed necessary by their manager. However, this duty shall be suitable for their own position. No additional wage is paid for this additional duty.

Temporary Assignment

Clause 29. The personnel may be temporarily assigned from a job to another suitable for their qualifications within TEMSAN. In case of a temporary duty outside the city, approval of the personnel is obtained. The assigned personnel going outside the city signs a temporary assignment form.

Temporary Employment Relationship

Clause 30. TEMSAN may transfer the personnel under a temporary employment relationship at another company or for similar jobs in accordance with the legal requirements and not for longer than 6 months. The temporary employment relationship may be renewed twice at most. Then, the personnel are paid a wage as per the provisions in the contract of temporary employment relationship.

Domestic and Foreign Travel Pays

Clause 31. For domestic and foreign travels for a duty, amount of the pay and the terms of payment based on the employee’s position and current conditions is notified to him before the duty.

Career Management

Clause 32. Promotions and transfers are managed by using a systematic and continuous Abilities Management System in cooperation with global programs in order to evaluate and guide our employees’ abilities in the most correct and most objective way.

Training and Development

Clause 33. Based on a corporate culture and strategies and Human Resources policies, needs of training and development are determined as per the results of individual performances and competence evaluation and subject to requirements of a job. The personnel are obliged to attend the training and development applications for improvement of knowledge and skills and enhancing the performance and competencies, and to take the best care in this subject.

The personnel sent by the Company for a long domestic or foreign training give commitment. The Company determines the principles of this work commitment.

TEMSAN and the personnel are jointly obliged to ensure the personnel’s occupational and individual development. Records relating to the personnel’s training and development are kept in electronically or in the personnel’s file based on their type.

Performance Evaluation

Clause 34. A “Performance Evaluation” and a “Performance Monitoring Interview” are conducted monthly for each employee. A statement is taken the personnel evaluated as incompetent as a result of the performance evaluation, and they are told by a warning letter to develop themselves. In the event that they have not developed in the following month’s evaluation, a statement is taken from them and they are given a notice. In the event that they have not developed in the following month’s evaluation again, their labour contract may be terminated as per the provisions of the labour law.

At the end of the period of performance evaluation, the personnel are notified in written of the result of the performance evaluation of that period. These evaluation principles are considered for determination of the personnel’s success fee, planning of personal development, transfer to new duties, and continuation of the labour contract.

Wage Management

Clause 35. Based on TEMSAN’s wage policy, the personnel are given a wage based on their position. The wage determined for Managers, Engineers, Chiefs, Foremen and the equivalent includes the wage to be paid for the annual legal overtime work.

Premiums

Clause 36. The Company Management may, depending on reaching of financial and strategic objectives by TEMSAN, apply a premium system for all or some of the personnel based on the personnel’s performance results under determined principles.

Amount of the premium may change every year since it depends on the performance of TEMSAN and its personnel’s performance. Payment of premium in any year does nor require the same in the following years, and amount of the premium in a year does not constitute a criterion for other years.

Inventions, Proposals and Rewards

Clause 37. For the purpose of encouraging and highlighting the acts that will take TEMSAN to its objectives, increasing commitment, motivation and efficiency or finding the best practices, the personnel’s successes bringing measurable benefit and saving are evaluated and awarded or appreciated based on the Instructions for Proposal System. In the event that any invention belongs to TEMSAN and is subject to a patent, the personnel accept beforehand that TEMSAN may apply for a patent.

CHAPTER 5 – DISCIPLINARY TERMS

Definition and Scope

Clause 38. Disciplinary Punishments are the punishments and sanctions to be applied under employment security against those with behaviour and acts contrary to the workplace rules or with behaviour not complying with the honesty required by a duty, and the sanctions applied for the personnel’s peaceful work, collaborative work and full protection of the personnel’s benefits. The details are provided in the Regulation on Discipline.

Procedure for Disciplinary Punishments

Clause 39. He who spots a condition requiring a disciplinary punishment notifies in written the Human Resources of the details of the condition. The Human Resources makes the necessary investigation. In case of determination of a condition contrary to rules, the Disciplinary Committee convenes, decides a disciplinary punishment under the provisions stated in the Regulation on Discipline, and notifies it to the relevant employee.

CHAPTER 6 – EXPIRY OF THE LABOUR CONTRACT

Fixed Termination

Clause 40. The personnel with service of up to 6 months who resign have to give a written notice of 2 weeks, with service up to 6 months – 1,5 years a written notice of 4 weeks, with service up to 1,5 years – 3 years a written notice of 6 weeks, and with service up to 3 years and longer a written notice of 8 weeks. However, the personnel may be allowed to leave before the term of notification. Termination of the labour contract with a notification by TEMSAN is subject to the same.

Expiry of the Labour Contract due to Age Limit

Clause 41. In case of retirement due to age limit, it is not necessary to notify it to the personnel beforehand. The personnel discharged from TEMSAN in this way are paid a legal severance pay without paying a notice pay. Where deemed necessary by TEMSAN, the personnel may continue work with their approval and without being bound by that age limit.

Death

Clause 42. In case of an employee’s death, the labour contract automatically expires. Rights of the employee originated from the law and the labour contract during his employment are paid to his legal heirs upon submission of a certificate of inheritance and a certificate of release is taken.

Special Arbitrator

Clause 43. Subject to the provision of Clause 20 of the Labour Law no 4857, in case of disputes between the personnel and TEMSAN, an arbitrator is applied to.

Employment End Procedure

Clause 44. Before leaving, for any reason whatsoever, the personnel have to give the relevant persons with a report the books, valuable papers, letters, software, information, equipment, electronic or technical devices, etc. for which they were held responsible.

The personnel are responsible for the losses and damages resulting from not fulfilling that obligation. The personnel are not paid their rights and receivables, if any, until giving the aforementioned. In case of insufficient receivables, the market prices of the mentioned materials at the date requiring giving the aforementioned are collected from the personnel.

Employment Certificate

Clause 45. In case of leaving TEMSAN by an employee due to resignation or dismissal, TEMSAN gives him an employment certificate. This certificate states the employee’s duties and the length of work.

Certificate of Release

Clause 46. The employee who has left and been paid all his receivables gives a certificate of release showing that there is no relationship left with TEMSAN. The certificate of release is kept in the special file of the employee.

CHAPTER 7 – MISCELLANEOUS PROVISIONS

Relationship with the Labour Contract

Clause 47. This “Personnel Regulations”, “Disciplinary Regulations”, “Ethical Code”, and “Commitment on Ensuring Confidentiality and Safety” are part of the Labour Contract.

Effective Date of the Regulations

Clause 48. This Regulations takes effect upon the approval of the Board of Directors on 08/11/2019. Power to amend this regulations belongs to the Company Management.