Payroll regulations in the Company

Extract from the provisions of the Company Collective Labour Agreement MICHELIN Polska Sp. z o.o. concluded on June 4, 2013
Consolidated text including amendments introduced by Additional Protocol No. 5 of November 14, 2024
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Employee Classification Rules

CHAPTER IV

REMUNERATION

DETERMINING THE PAYROLL FUND

Art. 16

 

§1. The Company's payroll fund for each year is determined by the employer

§2. The participation of company trade union organisations in the shaping of the payroll fund by means of negotiations shall be ensured; these should start no later than 15 January of a given year.

  1. The increase in the average remuneration in a calendar year and the date(s) of a pay rise, as well as the new base remuneration rates corresponding to the pay grade categories, shall be determined by an agreement concluded between the Company and the company trade union organisations by the end of February of a given calendar year

  2. When determining the average remuneration increase, the inflation rate and the Company's financial situation and possibilities, in particular, shall be considered

  3. If no agreement is reached within the deadline set out in section 1, the decision shall be made by the Human Resource Manager by the end of March of the calendar year in question, taking into account the joint arrangements made. If this is the case, pay charts shall be introduced by the order of the Human Resource Manager

 §3. Pay charts setting out the base remuneration rates for blue-collar and white-collar jobs shall be established, as specified in Appendix 1 to this Agreement

 §4. The parties to this Agreement shall establish new base salary rates corresponding to the pay grades in the form of a pay chart, following the conclusion of negotiations, but not later than the end of February of the year in question. Pay charts shall be introduced by the order of the Human Resource Manager. §2 section 3 shall apply accordingly.

RULES FOR REMUNERATING EMPLOYEES

Art. 17 

§1. Employees shall be entitled to the following remuneration components for their work:

  1. base remuneration,

  2. variable bonuses,

  3. system bonuses,

  4. allowance for night work,

  5. seniority allowance,

  6. overtime allowance.

§2. The variable bonuses referred to in section 1(2), to which an employee shall not be entitled for the period of excused absence from work due to illness, are included in the salary base and sickness benefit

§3. The remuneration components referred to in subsections 1(3), (4) and (6) shall be due for the time actually worked in the respective system or circumstances and shall be included in the remuneration base and sickness benefit in the amounts paid

 Art. 18

§1. Employees shall be paid the base salary specified in the employment contract as a monthly rate or an hourly rate resulting from the personal pay grade category

§2. If an hourly rate determines the remuneration, the base remuneration shall be paid as a fixed lump-sum monthly wage, resulting from multiplying the hourly rate of base remuneration determined in the employment contract by the average monthly number of working hours in the calendar year

Art. 19 

Employees shall be entitled to a variable bonus in accordance with the rules set out in Appendix 2 to the Collective Labour Agreement.

Art. 20 

§1. Payment of remuneration for a monthly period to all employees to whom the Collective Labour Agreement applies shall be made on the date specified in the Workplace Regulations.

§2. The remuneration components due for an employee for periods longer than one month shall be paid in arrears on dates specified in the Labour Law.

 

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CHAPTER V

BONUSES AND ALLOWANCES

 Art. 23

The seniority allowance and jubilee bonus shall be calculated on the basis of a reference amount. The reference amount shall be set out in Appendix 3 to this Agreement.

Art. 24 

§1. Employees working in a four-brigade or similar work system are entitled to system allowances. The system allowances are paid for each hour worked in the respective system..

§2. The amount of the system allowances is defined in Appendix 3 to this Agreement. 

Art. 25

§1. Night work is understood to be the time between 10:00 p.m. and 6:00 a.m..

§2. Employees doing night work are entitled to additional remuneration for each hour worked at night.

§3. The amount of the allowance referred to in §2 is set out in Appendix 3 to this Agreement..

§4. The amount of the allowance referred to in §2 may not be lower than that arising from the Labour Law.

Art. 26

§1. An employee performing a business task under the employer's instruction outside the town where the employer's registered office is located or outside their permanent place of work shall be entitled to reimbursement for the costs of the business trip.

§2. The Company's Human Resource Service determines the amount and conditions for determining and paying the money to which an employee is entitled for a business trip, subject to the following rules

  • money for a business trip within the country – shall be determined in the minimum amount specified in the regulations issued pursuant to Article 775 §2 of the Labour Code,

  • money for a business trip abroad – shall be determined in the minimum amount specified in the regulations issued pursuant to Article 775 §2 of the Labour Code, with the proviso that the allowance shall be determined in the minimum amount pursuant to Article 775 §4 of the Labour Code

 §3. The Human Resource Service may determine the money due for a business trip in amounts higher than those referred to in §2.

Art. 27

§1. Employees of MICHELIN POLSKA sp. z o.o. to whom this Agreement applies shall be entitled to a seniority allowance

§2. The seniority allowance is based on the reference amount referred to in Article 23 of this Collective Labour Agreement.

§3. The amount of the seniority allowance is 3% of the base remuneration after 3 years of service and it is increased by 1% for each additional year worked, up to a maximum of 20%, subject to Article 42..

§4. The length of service on which an employee's entitlement to the seniority allowance depends shall include the period of employment with Michelin Polska sp. z o.o., Michelin Group companies and the Euromaster Group under the same employment relationship, calculated from the date of the last employment. The date of last employment shall be deemed to be the first day of the month in which a contract of employment was concluded under the same employment relationship (no break in employment, even though several employment contracts were in force).

§5. Employees who terminated their employment relationship with the company because they acquired the right to a disability pension or received a rehabilitation benefit due to an accident at work or occupational disease and re-established their employment relationship shall have the periods of previous employment with the company (rounded up to the nearest whole month) added to the seniority calculated from the date of their last employment

 Art. 28

§1. Overtime allowance and allowances for work on Sundays and holidays shall be paid on the basis of the applicable labour legislation in this respect

§2. If work is performed on a Sunday, public holiday or on days off being a consequence of the work time schedule:

  1. the employee shall be provided with another day off in exchange for working on a Sunday or a holiday within the time limits specified in the relevant labour legislation;

  2. if it is not possible to provide an employee with another day off in the periods referred to in section 1, they shall be entitled to remuneration in accordance with §1,

  3. another day off shall be provided until the end of the settlement period for work performed on days off being a consequence of the work time schedule, to be used by the employee on the date agreed upon with the employer, subject to §5..

§3. If the time off is granted in accordance with §2.3, the employee shall be entitled to an allowance in the amount specified in Appendix 3 to this Agreement. This allowance shall be included in the salary and the sick pay base.

§4. The allowances stipulated in this Article shall not be paid for work on Sundays or public holidays resulting from a four-brigade schedule or a similar work system

§5. The employee shall receive an allowance for overtime work in accordance with the Labour Code unless to compensate overtime work, time off is granted at the written request of the employee or the employer grants time off in the statutory amount and time off without the employee's request

§6. The permissible amount of overtime for an individual employee must not exceed 384 or 376 hours in a calendar year, depending on the length of the employee's annual leave

§7. The employer shall implement measures aimed to reduce the need for overtime work.

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CHAPTER IX

EXTRA BONUSES

 Art. 37

§1. Employees covered by the Collective Labour Agreement, with the exception of the employees listed in Article 1, Section 3, who have worked 25, 30, 35, 40, 45, or 50 years in the company, are entitled to a jubilee bonus in the following amount:

a)   for 25 years of service 400% of the assessment base,,

b)   for 30 years of service 500% of the assessment base,

c)   for 35 years of service 600% of the assessment base,

d)   for 40 years of service 700% of the assessment base,

e)   for 45 years of service 800% of the assessment base,

f)    for 50 years of service 900% of the assessment base

§2. The assessment base is the reference amount referred to in Article 23

§3. If the employment contract is terminated due to retirement or disability pension, the jubilee bonus shall be granted in proportion to full months worked from the date of becoming entitled to the last bonus.

§4. The period of employment entitling to the jubilee bonus is calculated as the sum of all periods of employment with Michelin Polska sp. z o.o., Michelin Group companies and the Euromaster Group, regardless of breaks in employment

Art. 38

§1. Company employees are entitled to an annual bonus, known as the thirteenth salary, calculated in proportion to the time effectively worked in the calendar year for which the annual bonus is paid.

§2. The time effectively worked is the total of all periods of work performed for the employer during the calendar year for which the thirteenth salary is paid. No-work periods included in the time effectively worked are:

a)   holiday leave,

b)  attending courses and training organised by the Company or in the interest of the Company and counted as work time under generally applicable laws

c)   exemption from the obligation to provide work for the term of office as a member of the board of the company trade union organisation and exemption for ad hoc activities associated with the trade union function

§3. The thirteenth salary shall be paid in January of the calendar year following the year for which the thirteenth salary is due. For retirees, pensioners and other persons entitled to the thirteenth salary whose employment contract has been terminated, payment shall be made in the same year.

§4. The thirteenth salary amounts to 8.5% of the employee's salary referred to in §5..

§5. The basis for calculation of the thirteenth salary is the employee's remuneration for the time effectively worked, paid under the Collective Labour Agreement in the payroll year, excluding:

a) severance pay for termination of an employee's contract for reasons on the part of the employer,

b)  compensation for a shortened notice period,

c)   compensation for termination of employment contract,

d)  retirement and disability pension severance pay,

e)   overtime payments,

f)    jubilee bonuses,

g)   variable bonus.

§6. Employees are entitled to the thirteenth salary if, in the calendar year for which the thirteenth salary is due, they worked for the Company for a total of at least 10 months, subject to §7 and §8.

§7. The thirteenth salary shall not be paid to employees with whom the employment contract was terminated pursuant to Article 52 of the Labour Code during the calendar year for which the annual bonus is payable

§8. Employees whose employment contract has been terminated due to retirement or pension shall receive the thirteenth salary in proportion to the time worked in the calendar year for which the thirteenth salary is due

§9. Employees holding positions above level L and employees working outside the Company's premises shall have their thirteenth salary included in their monthly basic salary..

 Art. 39

§1. An employee who is entitled to a disability pension or old-age pension, whose employment relationship was terminated due to retirement, in accordance with the provisions of the labour law, shall be entitled to a severance pay in the amount of one month's remuneration

§2. Depending on the total length of service at Michelin Polska sp. z o.o., Michelin Group companies and the Euromaster Group, the severance pay referred to in §1 is increased and amounts to:

  • 200% of the monthly salary if the employee was employed for at least 10 years,

  • 250% of the monthly salary if the employee was employed for at least 20 years,

  • 300% of the monthly salary if the employee was employed for at least 30 years

§3. The severance pay referred to in §2 shall include the respective statutory severance payments as referred to in §1..

§4. An employee who has received a severance pay may not reacquire the right to it.

 Art. 40

Employees may participate in the “Tyre Benefit” programme under the terms and conditions described in the benefit rules introduced by order of the Human Resource Manager

 Art. 41 

The Company offers its employees an Employee Pension Plan on the basis of the applicable legislation in this regard

Excerpt from the Work Regulations of Michelin Polska Sp. z o.o., consolidated text, introduced by Order SK No. 18/23 dated December 15, 2023.

§ 31

  1. Remuneration for work is paid once a month. The principle of payment of remuneration for work by a bank transfer to the accounts indicated by employees is applied. The deadlines for salary and wage payment for a given calendar year are determined by an order of the Human Resource Manager.

  2. The transfer to the accounts is made in time to enable the money to be withdrawn on the agreed pay day, i.e. on the 10th day of the calendar month following the month for which the remuneration is due at the latest

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  3. Payment of awards, annual bonuses, and other additional gratuities are made in accordance with separately established rules (…)