UK Employee Handbook HSBC Group Management Services Ltd (HGMS) September 2016
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Contents Contents... 2 1.0 Terms and Conditions... 8 1.1. Job Title... 8 1.2. Duties... 8 1.3. Grade... 8 1.4 Pay... 9 1.5 Performance Review... 11 1.6 Hours of Work... 11 1.7 Leave... 12 1.8 Absence from Work... 13 1.9 Location and Mobility... 15 1.10 Cars... 16 1.11 Expenses... 17 1.12 Retirement and Pensions... 17 1.13 Standards of Conduct... 17 1.14 Confidentiality... 18 1.15 Inventions and Other Intellectual Property... 18 1.16 Employee Records... 19 1.17 Notice Periods... 19 1.18 Return of Property... 22 1.19 Suspension... 22 1.20 Competition Obligations... 22 2
1.21 Fitness and Propriety 23 1.22 Disciplinary and Grievance... 23 1.23 Variation and Changes... 24 1.24 Rights of Third Parties... 24 1.25 Definition of Group... 24 2.0 Code of Business Ethics and Responsible Behaviour ('the Code')... 25 3.0 Rules and Regulations... 26 3.1 General... 26 3.2 Security and Fraud Prevention... 26 3.3 Communications... 27 3.4 Personal Finance... 27 3.5 Commitments Outside the Company/Dual Employment... 27 3.6 Giving and Receiving Gifts and Benefits... 28 3.7 Diversity & Inclusion... 28 3.8 Compliance with Financial Services Regulations and Rules... 28 3.9 Whistleblowing... 33 3.10 Data Protection... 36 3.11 Use of Information Technology... 37 3.12 Social Media... 40 3.13 Health, Safety and Fire... 43 3.14 Dealing with the Media... 43 3.15 Circulars, Instructions and Authority... 44 3.16 Dress and Appearance... 44 3.17 Alcohol and Drug Misuse... 45 INTERNAL 3
3.18 Capability Procedure... 46 3.19 Grievance Procedure... 48 3.20 Disciplinary Procedure... 50 3.21 Flexible Working... 53 4.0 Benefits and Facilities... 56 4.1 Beneficial Loans... 56 4.2 Charities... 56 4.3 HSBC Childcare Scheme... 57 4.4 Open Line... 57 4.5 HSBC Group Sports and Social Clubs... 58 4.6 Long Service Awards... 58 4.7 Private Medical Plan... 58 4.8 Medical Examinations... 58 4.9 Mortgage Subsidy Scheme... 58 4.10 Employee Accounts... 58 5.0 Your Career with the Company... 59 5.1 Role Evaluation... 59 5.2 Employee Learning and Development Investing in Your Future... 59 5.3 HSBC European Council... 60 5.4 Maternity and other family related policies and procedures... 60 5.5 Special Leave... 60 5.6 Support for Disabled Employees... 61 4
January 2016 Dear Colleague Welcome to HSBC Group Management Services Ltd (HGMS) (the "Company"). I would like to wish you every success during your employment with us, whether you have recently joined the Company or whether you are an existing employee. This Employee Handbook (the "Handbook") is designed both to introduce you to the Company and to be of continuing use during your employment with the Company. Together with your offer letter (as defined in section 1.0 below), section 1 of this Handbook sets out the terms and conditions of your employment. Sections 2, 3, 4 and 5 of this Handbook are non-contractual and provide guidance on the high standards of conduct that are expected of you and some of the main discretionary employee benefits which may be available to you. The Handbook also provides you with information on where to find the main policies and procedures that will affect your employment. For the most part these are contained on the HSBC Group s HR intranet portal ( HRDirect ) and will be marked as being applicable to the Company in particular. In the event of any conflict between the HRDirect and this Handbook, this Handbook shall take precedence. The Handbook is therefore an important document and it is essential that you read the Handbook thoroughly and carefully before accepting an offer of employment with the Company or, if you are a current employee, as soon as possible after the Handbook is issued. Paper copies of the Handbook will not be issued. Instead, this Handbook will only be available via HRDirect which can be found on the Company's intranet site or recruitment websites. This will allow the Company to keep the Handbook up to date and reflects the Company's policy of minimising paper products. General amendments to the Handbook will be issued from time to time on the Company's intranet site. As these amendments may revise your contract of employment it is essential that you refer to the Handbook, as set out on HRDirect which can be found on the Company's intranet site, and familiarise yourself with these amendments. I hope that you will find the information contained in the Handbook both informative and helpful. If you require clarification or any additional information please refer to your entity manager. Human Resources 5
The purpose of the Handbook is to: Set out and clarify your terms and conditions of employment. Set out and clarify the rules and regulations which you must abide by. Summarise the benefits you may be entitled to. Set out some of the main issues which may be of interest to you during your employment. The Handbook provides this information so that you may know what is expected of you and what you can expect from your colleagues and the Company. This Handbook applies only to employees of the Company on HGMS employment contracts. Separate handbooks are issued for employees in other parts of the HSBC Group (as defined in section 1.24 of this Handbook) within the UK and those employees working on the Channel Islands or the Isle of Man. This Handbook supersedes earlier versions of the employee handbook which may be referred to in your current offer letter from the Company. All references in such documents to earlier Handbooks should now be taken to refer to this Handbook. The Handbook is divided into a number of sections: Introduction This section explains the importance of the Handbook and introduces the various sections of the Handbook and other HR Resources. Section 1 Terms and Conditions of Employment This section, together with your offer letter (as amended by any subsequent communications from the Company), solely form the terms and conditions of your employment. It therefore sets out important information on the rights and obligations which apply during the course of your employment. Section 2 Code of Business Ethics and Responsible Behaviour The Code of Business Ethics and Responsible Behaviour deals with and provides guidance on the standards of behaviour that the Company expects of all employees. Section 3 Rules and Regulations This section sets out important information about the standards of conduct which you must abide by as an employee, and which you should expect from your colleagues. Section 4 Benefits Section 4 of the Handbook outlines some of the discretionary benefits which you may have access to during your employment and sets out where further information can be obtained in respect of each benefit. Section 5 Your Career with the Company This section sets out information on learning and development and other matters which may be relevant during your career with the Company. About HR Procedures, Policies and other HR Documents The principal HR procedures and policies which are applicable to the Company and your employment can be found on HRDirect, each policy indicates which of the HSBC Group companies it applies to. You should be guided to the policy that applies to your employment but you should check that it is marked as being applicable to the Company. At the end of most sections of the HRDirect, there are "contact point" tables, so that you know who has the expertise to guide you with any specific issues. 6
It is important that you take an opportunity within the first few weeks of your employment with the Company to familiarise yourself with the format and contents of the policies and procedures on HRDirect that are applicable to your employment with the Company. The policies and procedures on HRDirect do not form part of your contract of employment unless expressly stated to be contractual. Other sources of information are specific to certain situations, such as the UK Compliance Manual (contact your local RC team for the current version) and may be referred to on the Regulatory Compliance (RC) Sharepoint Site. If you cannot locate a copy of a policy on the RC Sharepoint site, you should be able to obtain a copy from your local compliance contact. Where a matter is referred to in the Handbook and further information is contained in other documents, directions to the appropriate document will normally be provided. Please note, however, that any documents referred to in this Handbook do not form part of your contract of employment (unless otherwise expressly stated) and are not incorporated into your contract of employment by reference. What is the difference between a policy and a procedure? Most of the sources of information are referred to as 'policies' and/or 'procedures'. A policy usually describes the Company's approach to a certain issue. A procedure usually describes the process which the Company will follow in respect of a particular issue. Some subjects will have both a policy and a procedure and for other subjects the policy may form part of the procedure. Regardless of whether information on a particular subject is called a 'policy', a 'procedure' or both, the key factor is that they set out guidance on how you should act, and how the Company will act towards you. 7
1.0 Terms and Conditions This section of the Handbook, together with your offer letter (as amended by subsequent communications from the Company), form your terms and conditions of employment. In addition, they set out the details which the Company, as your employer, is required to give you under section 1 of the Employment Rights Act 1996. For the avoidance of doubt, references in this Handbook to your 'offer letter" means any letter or document (other than the Handbook) issued to you by the Company that is expressly stated to form or constitute part of your terms and conditions of employment and/or employment contract (and as may have been amended by any subsequent communications from the Company). 1.1. Job Title Your current job title is as stated in your offer letter or subsequent communication from the Company, and may be amended periodically by notice to you in writing or by circular. Your job title and reporting line are as stated in your offer letter. The Company reserves the right to change either your job title and/or reporting line from time to time for operational and/or organisational reasons or for any other reasons that the Company may reasonably consider necessary. 1.2. Duties Your duties are as set out in your role profile or as detailed to you by your entity manager. However, you will need to take a flexible approach to your duties and in particular from time to time, you may be required to undertake such alternative or additional duties as may be commensurate with your grade. On occasions for training purposes or operational reasons, you may also be required to carry out duties at a higher or lower grade as necessary. Deputising in other grade duties is a developmental opportunity and a contribution to overall teamwork and customer service. 1.3. Grade All positions within the Company are given a grade, which is allocated to a particular role by a process of evaluation that assesses and ranks roles according to content. Your grade is initially stated in your offer letter and any changes will be notified to you in writing or by circular. The Company operates a system of grading known as "Global Career Bands". The tables below set out the Global Career Band (or GCB) and details of which employee are covered by which contract types. Employees Global Career Band Individuals employed on nonflexible New entrants after the contracts introduction of flexible contracts 0 BG0 BW0 1 BG1 BW1 2 BG2 BW2 3 BG3 BW3 4 BG4 BW4 5 BG5 BW5 6 BG6 BW6 7 BG7 BW7 8 BG8 BW8 8
1.4 Pay 1.4.1 Payments to You Your pay comprises a basic salary and any entitlement to other allowances as stated in your offer letter or other communication from the Company. Any changes will be notified to you in writing or by circular. Your basic salary is pensionable and any allowances are non-pensionable, unless otherwise stated. Payment will be made into an account in your name, in 12 equal monthly installments on or around the 20th of each month. This means that you will be paid in arrears for work done up to the 20th of each month and in advance for working from the 20th to the end of the month. However, depending on the date in the month you join the Company, the payment period and/or date of your first salary payment may vary. Payment is subject in all cases to statutory deductions of income tax and employee national insurance contributions and any other deductions which the Company may be obliged to make. You will receive an online monthly pay statement detailing gross pay and deductions. Further details on this are set out on HRDirect. 1.4.2 Salary Review The Company reviews its current levels of pay each year. Any changes to your basic salary, which are awarded at the Company's sole discretion, will be notified to you by letter, circular or in your monthly pay statement. An increase in a particular year does not give rise to (or expectation of) entitlement to an increase in the following year or subsequent years thereafter. 1.4.3 Discretionary Bonus Award You may be considered for a discretionary bonus award dependent upon your annual performance during the previous calendar year. Any such payment will usually be made in March. This will enable the performance of the Group, which determines the potential overall bonus pool available for distribution to be established before discretionary awards are announced. The payment and amount of any bonus award will be entirely at the discretion of the Company, and there is no contractual entitlement for you to receive a bonus at any time, irrespective of whether a bonus has been paid to you or others on previous occasions. If you leave the Company prior to the payment date or are under notice of leaving the Company but are still employed at the payment date, you will not receive an award. This includes those employees resigning following maternity leave. 1.4.4 Allowances You may be eligible for certain contractual and/or non-contractual allowances, as are applicable from time to time. Your offer letter or subsequent communications from the Company will specify the type and level of any allowance to which you may be entitled. Any subsequent withdrawal or variation will be notified to you in writing or by circular. Further information is provided in HRDirect. 1.4.5 Overtime and Additional Hours Where you are required to work beyond your normal hours, payment will be made to GCB 7/8 employees, in respect of any such hours, in accordance with the Company's rules on authorisation, eligibility and rates of pay. Overtime payments are non-pensionable. Key time employees (as determined by your contract type or as notified to you in writing by the Company) in GCB 7/8 will not be eligible for overtime payments until they work more than 7 hours in one day or 35 hours in one week. Any hours worked by key time employees in GCB 7/8 grades above their normal hours, but below the limits for overtime payments, will count as additional contractual hours ("Additional Hours"). Additional Hours are pensionable and will also be used in the calculation of any bonus payments, where any such payment is calculated on number of hours worked. 9
Generally, no overtime payment will be made to employees at level GCB 6 or above who work in excess of 35 hours per week. However, in exceptional circumstances key time employees who are in a GCB 6 or above level role, may be permitted to work Additional Hours, for which they will be remunerated as set out above in respect of GCB 7/8 level employees. Further details are set out on HRDirect. 1.4.6 Public and Bank Holidays Some employees receive overtime payments in respect of Public and Bank holiday working in accordance with the Company's policies and procedures on authorisation, eligibility and rates of pay. For further information please refer to HRDirect. 1.4.7 Incorrect Pay and Deductions from Pay under the Employment Rights Act 1996 (Part II) There may be an occasion when through error or omission you receive less than your contractual pay and/or allowances. Should such an unfortunate circumstance arise the Company will rectify the situation and any contractual pay and/or allowances not paid to you will be paid on the first opportune pay-day following notification or identification of the omission or error. Conversely, if any error or omission results in any overpayment of pay and/or allowances being made to you it is accepted that the Company reserves the right to deduct any such overpayment(s) from any monies owed to you by the Company on the first opportune pay-day following identification or notification. The Company will take into account individual circumstances and try to achieve a jointly agreed repayment schedule. In the event that the overpayment is made in respect of your final salary payment (or other payment due on termination of employment), or if you are under a repayment schedule and your employment terminates, the Company reserves the right to request that you repay such sums owed, on demand. If your employment ends and the number of days holiday you have taken exceeds your pro-rata entitlement for the holiday year, an appropriate deduction will be made from your final pay or if this is not possible the Company reserves the right to request that you repay such sum on demand. The Company will give you an opportunity to discuss the proposed repayment, and the Company will take into account your personal circumstances prior to determining a repayment schedule. If the holiday entitlement you have taken is less than your pro-rata entitlement and it is not operationally practical for the outstanding days to be taken during the notice period, payment of pro-rated basic salary only in lieu of outstanding holiday entitlement will be made, unless your employment is terminated by reason of gross misconduct or if you fail to give appropriate notice. Payments or deductions will not be made in respect of any Bank or Public holidays accrued or taken in excess of entitlement. If you are summarily dismissed or leave the Company without giving due notice, you will not be entitled to any payment for accrued holidays or holiday pay. 1.4.8 Tax and National Insurance on Benefits Each year the Company will issue to you a P60 Certificate, which states your total earnings and deductions for the tax year ending 5 April. You may be liable to tax on the financial value of benefits in kind. Benefits in kind include items which may be provided to you periodically by the Company such as private health insurance, cars and beneficial rate loans. If you need to communicate with HM Revenue and Customs, quote your tax reference and NI number, both of which are given on your pay statement. Address any queries to: 10
HM Revenue and Customs West Yorkshire and Craven Area Centenary Court 1 St Blaise Way Bradford West Yorkshire BD1 4YL Telephone: 0345 302 1432 1.5 Performance Review Each employee's performance is reviewed annually. For further information please refer to HRDirect. 1.6 Hours of Work 1.6.1 General Different working arrangements apply depending on your grade. Such working arrangements relate both to the number of normal hours worked in a week (based on a full time position) and to the way normal hours may be scheduled. In particular, you will note that some employees work on 'non-flexible' schedules and other employees work on 'flexible' schedules. Whether you work on a non-flexible or flexible schedule depends on your grade, work location and your job in the Company. Details of which grades are on non-flexible or flexible schedules are set out below. The hours of work described below set out what the Company can request of you. However, regardless of whether you work on a non-flexible or flexible schedule, you may request to vary your working hours, and may apply for flexible working as outlined in the Flexible Working section of the HRDirect. Any request to change your hours of work, either permanently or temporarily, should be discussed with your entity manager. (i) Non Flexible Grades starting with BG: The standard working week is 35 hours and this is normally for 7 hours per day (excluding a one hour unpaid lunch break) Monday to Friday inclusive. The normal working day, unless advised otherwise, will be 9.00am to 5.00pm Monday to Friday inclusive. The Company can vary, by mutual agreement, the start and finish time between the hours of 8.00am and 10.00am and 4.00pm and 6.00pm respectively. (ii) Flexible Grades starting with BW: The standard working week is 35 hours. Unless otherwise stated your schedule will normally include a one hour unpaid lunch break each day. Specific schedules will be advised to you locally or set out in your offer letter, but may be changed, on reasonable notice, within the following parameters: The maximum number of days you may be required to work in any week is 6, over 7 calendar days, Monday to Sunday. The days of the week on which you work need not be consecutive. Unless agreed otherwise, your scheduled daily working hours will be a maximum of 10 working hours per day. The parameters set out above apply to all GCB 4, GCB 5, GCB 6, GCB 7 and GCB 8 employees. Employees at GCB 3 or above are required to work such hours as are necessary for the proper fulfilment of their duties. 11
1.6.2 Overtime and Additional Hours The Company aims to ensure that persistent overtime or additional hours are unnecessary. However, occasions may arise where, due to unforeseen or unavoidable circumstances, you may be required to work beyond your normal hours. See also Section 1.4.6. 1.6.3 Working Time Regulations 1998 The above regulations set limits on working hours and create a legal entitlement to minimum rest breaks and paid holiday entitlement. Further details on the regulations appear on HRDirect. All employees may work additional hours to their normal weekly hours. To the extent that employees determine their additional hours (for example by prioritising tasks, choosing when to work extra hours and for how long) or work additional hours voluntarily, these additional hours will not count as part of the hours the Company requires employees to work. Required hours must not exceed an average of 48 per week unless the employee has agreed to waive limits on maximum working hours by signing an opt-out agreement. 1.7 Leave 1.7.1 Holiday Entitlement The Company's holiday year runs from 1 January to 31 December each year. During Core Leave (i.e. the minimum number of days holiday per year which must be taken consecutively), employees must be physically away from their workplace and actively discouraged from participating in work related activities from a remote location e.g. accessing Blackberry. Entity managers must not place employees under duress to respond to work-related matters during core leave and it is acceptable for an employee not to undertake any work-related activity during this period. Employees may attend training courses, conferences or conventions during their core leave as long as the events are not held on HSBC Group premises. Such events must not account for more than 50% of the core leave period. Minimum core leave is calculated as below: Category Full time employees with 20 or more days annual leave allowances Part time employees Minimum Core Leave 10 working days, which may include Bank and Public Holidays that fall on normal working days. Pro-rata the above calculations i.e. an employee working 3 days a week with an annual leave allowance of 12 days (full time equivalent allowance of 20 days), should take a minimum core leave of 6 working days, (i.e. two working weeks of 3 days a week). Any holiday entitlement not taken by 31 December normally may not be carried forward to a subsequent holiday year. The dates when holiday entitlement is to be taken must be agreed in advance with your manager. i) You are eligible for an annual holiday entitlement. Entitlements are detailed in the table below. Global Career Band Benefit 0-3 30 days 4-6 28 days 7 27 days 8 25 days 12
Promotion On promotion any additional holiday entitlement will be awarded on a pro-rata basis for the remainder of the holiday year. Key Time Employees Employees whose normal hours are less than 35 hours per week are entitled to pro-rated paid holiday which is proportional to their normal hours, when compared to the holiday entitlement for a full time employee. Individual entitlement will be set out in your offer letter or will be provided in writing by your entity manager. (iii) Commencing or Leaving Employment during the Holiday Year If your employment starts or finishes part way through the Company's holiday year your holiday entitlement will be pro-rated to the actual period worked during that holiday year. Please see Section 1.4.8 regarding pay in respect of holiday upon termination of employment. 1.7.2 Public and Bank Holidays The recognised Public and Bank holidays in the UK are: New Year's Day, Good Friday, Easter Monday, May Bank Holiday, Spring Bank Holiday, August Bank Holiday, Christmas Day and Boxing Day. In addition to the holiday entitlement in Section 1.7.1, employees whose normal working hours are 35 hours per week will receive 8 days in recognition of the Bank and Public holidays. Key-time employees will receive an entitlement in respect of Bank and Public holidays which is proportional to their normal hours of work. Individual entitlement will be set out in your offer letter or will be provided by your entity manager. Further details are set out on HRDirect. 1.8 Absence from Work You must wherever possible gain prior agreement from your entity manager before being absent from work. In that case an explanation satisfactory to the Company must be given for your absence. If the absence is due to your sickness or injury as set out below, you must comply with the Company's rules and procedures; or If your absence is due to any other reason you must telephone your entity manager at your normal starting time, or as soon thereafter as is reasonably practicable, in order to advise of your absence and provide a satisfactory explanation for the absence. When you return to work you must attend a return to work interview as required by the Company. If your absence is unauthorized or the Company considers the explanation you have given for your absence, verbally, in writing, or through your self certification form, to be unsatisfactory or false then action under the Company's disciplinary procedures may be taken against you. Further details on absence are set out on HRDirect. 13
1.8.1 Absence Due to Sickness or Injury If you are unable to attend work because of your sickness or injury you must telephone your entity manager at your work location no later than your normal starting time (or as soon thereafter as reasonably practicable) in order to advise them of your absence and its reason. If your absence lasts for seven calendar days or less you will need to complete a self-certification form. If your absence exceeds, or is likely to exceed, one calendar week, you must consult your doctor and obtain a medical statement stating that you are not fit for work and expressing the doctor's opinion of the reason for your absence from work. This must be sent by post or delivered to your manager. If further certificates are required, these must also be sent to your manager by post or delivered. If your illness lasts longer than one calendar week, you should contact your manager to advise him or her of your current prognosis at least once a week, unless agreed otherwise. If you are sick during a period of annual leave, you must comply with the above notification procedures in order to reclaim annual leave and receive Company Sick Pay, which for the avoidance of doubt means: You must telephone your entity manager no later than your normal starting time (or as soon as thereafter as reasonably practicable) on each day you are sick or injured in order to advise them that you are sick or injured; If your absence lasts for seven calendar days or less you will need to complete a self-certification form; and If your absence exceeds, or is likely to exceed, one calendar week, you must consult your doctor and obtain a medical statement expressing the doctor's opinion of the reason for your absence from work. This must be sent by post or delivered to your manager. If further certificates are required, these must also be sent to your manager by post or delivered. If your illness lasts longer than one calendar week, you should contact your manager to advise him or her of your current prognosis at least once a week, unless agreed otherwise. You may be asked to give your consent for the Company to obtain a prognosis from your doctor. You may also be required to visit a medical adviser appointed by the Company and you will also be requested to give your consent to any report prepared by such medical adviser being disclosed to the Company. The payment of Company Sick Pay (as defined in section 1.8.2 below) will be conditional upon you attending an appointment with such medical adviser. Reporting requirements may be varied by local arrangement at your place of work, when any particular requirements will be brought to your attention during your employment. If you are unclear about the arrangements in place you should speak to your entity manager. 1.8.2 Salary and Other Payments During Periods of Absence Employees whose normal hours are less than 35 hours per week may receive pro-rated payments described in this section in proportion to their normal hours, when compared to the entitlement for a full time employee. No basic salary, allowances or bonus payments will be paid for periods of unauthorised absence. Payments may be made for periods of absence due to reasons other than sickness or injury at the Company's absolute discretion. Subject to you following the absence rules laid down by the Company, pay (which is inclusive of any Statutory Sick pay ("SSP") or other similar benefit) known as 'Company Sick Pay' will be continued for a limited period during authorised absence due to sickness or injury. The period for which Company Sick Pay will be paid currently depends on the length of your service with the Group and is as follows: For all employees Service Less than 3 years Between 3 and 5 years Maximum period of Company Sick Pay granted eight weeks (40 working days) 16 weeks (80 working days) 14
Service Over 5 years Maximum period of Company Sick Pay granted 26 weeks (130 working days) Calculation of Company Sick Pay eligibility will be based on a rolling twelve month period whether absence is due to a single illness or a succession of illnesses. Maximum period is the maximum granted in any one year starting 6 April whether absence is owing to a single illness or succession of illnesses. The Company reserves the right to limit paid sick leave in respect of a single continuous sickness absence, or a succession of related sickness absences (for example, due to a common underlying cause). The maximum period of normal pay granted in such cases may be restricted to that applying on the day the first absence commenced (see table above) irrespective of whether absence extends beyond 6 April, into a second sick leave year. 'Company Sick Pay' includes basic salary and other contractual allowances (except, for the avoidance of doubt, the Fixed Pay Allowance, as defined below). Fixed Pay Allowance means the fixed pay allowance (whether payable in cash or shares) that is paid to an eligible employee (who has been duly notified as such) subject to and in accordance with the terms of the FPA Policy (as defined below) in force from time to time. FPA Policy means the Group s Fixed Pay Allowance policy and terms and conditions in force from time to time. Company Sick Pay includes any entitlement you may have to Statutory Sick Pay (SSP). If Company Sick Pay ceases, you may still be entitled to SSP (which is currently for up to 28 weeks' sickness in total). The Company reserves the right to refuse to pay Company Sick Pay (including SSP) if it has reasonable cause to think that you are not genuinely sick, or are abusing the sick pay policy. Should your SSP entitlement exceed Company arrangements then, on exhaustion of any Company Sick Pay, you will be paid SSP in accordance with your statutory entitlement. Payment of SSP is dependent on you satisfying rules regarding periods of incapacity, the period of entitlement, qualifying days and rules for the notification of absence. Failure to comply with the Company's sickness absence procedures may lead to loss of entitlement of Company Sick Pay and/or disciplinary action. If you are absent from work due to an accident or a condition sustained on or off duty that is the fault of a third party, you should immediately notify the Company of all the relevant circumstances and any claim, settlement or judgement made in connection to it and any Company Sick Pay paid to you in respect of such absence will be recoverable by the Company only if, and to the extent that, you recover damages in respect of your injury, condition or absence from work. You will be notified if these circumstances apply. Further details are set out on HRDirect. 1.9 Location and Mobility Your initial location will be as stated in your offer letter from the Company. You may be required to travel to customer or supplier premises and on occasion to attend training sessions and meetings elsewhere. There may also be times when the Company needs you to be flexible with your work location, which may mean a permanent or temporary move. Subject to business needs, the Company will, wherever possible, take into account your personal and domestic circumstances before requiring you to move. Set out below are the Company's mobility requirements. Although the general mobility requirement is dependent on grade, the Company's requirements under any business recovery plan (see Section 1.9.3) apply to all grades. Employees whose work location is stated as 'home' in their offer letter are also covered by these requirements. Some employees may have the option of working from home from time to time by mutual agreement in line with business needs and subject to the any home-working policy in force from time to time. However, this arrangement is not contractual and the employee's base remains as stated in their offer letter. 1.9.1 Employees in GCB 6 or above 15
If you are a GCB 6 or above employee you may be required to work at or from any office or location of the Company or within different companies of the HSBC Group (as defined in Section 1.24). A change of your place of residence may be required from time to time at particular stages of your career, although the Company will wherever possible and before requiring you to move, take into account your personal and domestic circumstances. In addition there may be some roles where there is a requirement to work outside of the UK. There may also be roles where occasional overseas travel is necessary, and in such situations, personal and domestic circumstances will be taken into account where practicable. 1.9.2 Employees in GCB 7/8 If you are a GCB 7/8 employee you may be required to work at or from any office or location of the Company or the HSBC Group (as defined in Section 1.24) in the UK, within reasonable travelling distance of your existing location or your home. What is deemed by the Company to be a reasonable journey will depend on a number of circumstances that will include normal travelling time and public transport availability. 1.9.3 Business Recovery Plans The Company has business recovery plans in place in the event of a major disaster taking place and the working environment being compromised. Depending on the nature and longevity of the disaster and the nature of the role you are carrying out at the time, you may be identified as a key member employee. If you are identified as such, you may be contacted and expected to report for work at a different site, for a temporary period, to recover critical business disruption. 1.10 Cars 1.10.1 Management Car Loan Employees who are in GCB 5 or above may apply for a management car loan subject to its existence, limits and terms as may apply from time to time. Should you subsequently become eligible to participate in the management car scheme no further car loans will be agreed, but any existing car loan can continue until normal expiry or until the car is sold when the loan must be repaid. For further information please refer to HRDirect. 1.10.2 Motoring Offences If, as a result of a motoring offence, you lose your driving licence and as a consequence are not able to undertake your duties satisfactorily you must make suitable alternative arrangements acceptable to the Company to enable you to perform your contract of employment. If you are not able to do so the Company will attempt to identify an alternative position, not involving driving. However if this is not possible or you do not accept the alternative position then your employment will be terminated, by the Company, by giving due notice. It is accepted that should an alternative role be identified, your salary, benefits and all other terms and conditions of employment would mirror that of an employee at that grade and level and not that of your current position. Any such alternative role will normally be a permanent role. You will therefore not be entitled to automatically return to your current role if your driver's licence is returned, although you will be able to apply and be considered for positions which require a driving licence. 16
1.11 Expenses You will be reimbursed for expenses incurred on the Company's business which are: Incurred and claimed strictly in accordance with the Company's rules on expenses in force from to time; and Supported by the appropriate level of authorisation and documentation. To take best advantage of the Company's buying power, arrangements exist for purchase of certain services e.g. travel, through given suppliers or through a central point. Such arrangements must be complied with. Further details are available on HRDirect. 1.12 Retirement and Pensions The Company does not currently operate a fixed retirement age. Retirement will be a matter of individual choice for employees. If you wish to retire, you are required to provide at least your contractual notice period prior to the proposed retirement date. The Company also requests that you give more notice wherever possible, as this will assist in succession planning and handover arrangements. It is important that you consider your pension options and benefits before deciding to retire and the Company recommends that you obtain independent financial advice. Please refer to your pension documentation and/or Towers Watson for details of your pension arrangements. 1.13 Standards of Conduct The Company is committed to maintaining the highest ethical standards in relation to the work we do, to the services provided and in terms of compliance. The HSBC Group Values, which are set out in full in the Group Standards Manual describe how the Group operates internally, with customers and with the wider community. All employees are expected to have and reflect Group Values. These values also integrate the HSBC Group s core business principles and key business values, which are set out this section 1.13 of this Handbook. Section 3 reminds you in brief of the Group s Values, as well as setting out standards of conduct and compliance to which all employees must comply. The Code of Conduct sets out in summary the HSBC values (as defined in the Group Standards Manual) and the minimum standards of conduct expected of the Company's employees. The Code is subject to review and updating as appropriate and therefore you should adhere to the most recent version of the Code. It is everyone's responsibility to demonstrate the values and principles in all of our interactions with colleagues, customers, regulators and the wider community. It is essential that you familiarise yourself with the Code of Conduct, the content of this Handbook and that you observe the Company's standards of conduct. In addition other specific rules and regulations may apply in your place of work and will be brought to your attention during your employment. Due to the need for integrity and trust in our business and the rapidly developing nature of the business, it is not possible to set out standards of conduct in every situation. You should seek guidance from your entity manager should you be in any doubt about the correct action to take in any situation. A failure to abide by the standards of conduct may lead to disciplinary action being taken, including dismissal. Where there is a legal or regulatory requirement, Regulatory Compliance will report breaches of conduct and decisions related to individual s fitness and propriety to the relevant Regulators and/or law enforcement agencies. 17
1.14 Confidentiality The Company considers confidentiality and security of information to be a top priority. Therefore, information relating to the Company's business, employees, clients and customers must not be disclosed to employees or other persons outside the Company or any HSBC Group Company except as properly authorised in the course of performing your duties. During your employment and after your employment has terminated (without limit in time), you shall not directly or indirectly use, copy or disclose to any person, other than in the proper performance of your duties for the Company, any of the trade secrets and confidential information of the Company or any other Group Company. Trade secrets and confidential information shall extend to all information of a confidential nature or in the nature of a trade secret concerning the organisation, business, finances, databases, clients, employees or other affairs of the Company or any Group Company whether they come to your knowledge orally or in writing and, if written, whether contained in Company documentation, on computerised record, on software, or original or copies or otherwise. You must also use your best endeavours to prevent the unauthorized use, copying or disclosure of confidential information and trade secrets. It is fundamental that you treat all information relating to the Company's or any HSBC Group Company's business, clients, customers and employees or officers acquired by you in the course of your work as strictly confidential. You must not use this information for your own personal advantage or for the advantage of a third party. These confidentiality requirements also extend to statutory prohibitions against insider dealing. It is a condition of your employment that you will during your employment and, after your employment ends, comply with all Company and HSBC Group terms and conditions in relation to confidentiality, conduct and compliance. You are reminded that all proprietary and client information is confidential and should not be disclosed to third parties in contravention of normal confidentiality requirements. Proprietary information includes trade secrets and confidential information as defined in this paragraph and therefore can include technical, operating or financial information which is not available to third parties and if disclosed without authorisation could harm the best interests of the Company or any HSBC Group Company. You should be aware that any breaches of this section 1.14, including the unauthorised "browsing" of accounts (such as customer bank accounts and/or Group email accounts), may lead to disciplinary action and, for the avoidance of doubt, may result in dismissal for gross misconduct. Disclosure of customers' or clients' business or personal affairs is not permitted without the customers' or clients' authority. This is a requirement of bankers' confidentiality, the Banking Code and the Data Protection Act 1998. Any contravention may lead to action under the Company s disciplinary procedures, as well as individual liability under data protection legislation. If you are approached by any third party, in particular any media source, and asked to make any comments or provide any information to such persons, under no circumstances should you respond without having sought permission and guidance from your entity manager who, where appropriate and necessary, will seek permission and guidance from Corporate Media Relations. Guidelines on regulations and procedures regarding the handling of information relating to customers, clients and employees are set out on HRDirect. Nothing in this section prevents you from making a disclosure under the Company's whistle blowing procedure, in respect of any malpractice or unlawful conduct. Further details on the Company's whistle blowing policy are set out in Section 3.9 of this Handbook or are available on HRDirect. 1.15 Inventions and Other Intellectual Property You may make inventions or create other intellectual property during your employment. In this respect you have a special responsibility to further the interests of the Company and the HSBC Group given your position at the Company and the remuneration paid to you under your contract of employment. In recognition of your position, remuneration and responsibility, you acknowledge and agree that any invention, improvement design, process, information, copyright work, trade mark, trade name or get-up or any other intellectual property (together the "Intellectual Property") made, created or discovered by you during your employment with the Company or any Group Company (whether capable of being patented or registered or not) in conjunction with or in any way affecting or relating to the business of any company in the Group or capable of being 18
used or adapted for use in such a company or in connection therewith shall be immediately disclosed by you to the Company and shall belong to and be the absolute property of the Company or such member of the Group as the Company may direct. However, this section shall only apply to the extent that any invention was made by you in the course of your Duties (as defined below in this paragraph) and (i) such invention was reasonably expected to result therefrom; or (ii) at the time of making the invention, because of the nature of your Duties and the particular responsibilities arising therefrom, you have a special obligation to further the interests of the Company. For the purpose of this clause 'Duties' means in the course of your normal duties as set out in your offer letter or in the course of duties falling outside your normal duties as set out in your offer letter but which have been specifically assigned to you. You acknowledge that you have no rights, interest or claims, either during your employment or after the termination of your employment, in or to any such Intellectual Property and you shall not use such Intellectual Property other than during the period of your employment and for the purpose of the Company or the Group. If and whenever required to do so by the Company, (whether during your employment or after its termination), you shall at the expense of the Company or such Group company as the Company may direct: Apply or join with the Company or such Group Company in applying for letters patent or other protection or registration in the United Kingdom and in any other part of the world for any such Intellectual Property; and Execute all instruments and do all things necessary for vesting the said letters patent or other protection or registration when obtained and all right title and interest to and in the same absolutely and as sole beneficial owner in the Company or such Group company or in such other person as the Company may specify. You agree that you irrevocably and unconditionally waive all rights under Chapter IV of the Copyrights, Designs and Patents Act 1988 in connection with your authorship of any existing or future copyright work, in whatever part of the world such rights may be enforceable. Nothing in this clause shall be construed as restricting your rights or those of the Company under the Patents Act 1977 and in particular, sections 39 to 43 Patents Act 1977. 1.16 Employee Records In accordance with data protection legislation, it is important that the Company's confidential personal records are maintained as accurately as possible. You must record any change in your personal circumstances (such as a change of your name, address or marital status) in the way set out in the Employee records section of HRDirect. Employees in a position regulated by the Financial Conduct Authority or any other relevant regulator must also ensure that any adverse change in their credit or other status is notified to their entity manager, as this may affect their standing with the Financial Conduct Authority or other relevant regulator. 1.17 Notice Periods 1.17.1 Notice during probation period If you are at GCB 2-8 and your contract of employment was issued on or after 1 September 2014, your employment is subject to a probation period as detailed in your Individual Terms. Employees at GCB5-8 are entitled to one week s notice from the Company and employees at GCB2-4 are entitled to one month s notice from the Company during the probation period. You are obliged to give the Company the corresponding notice in writing during the probation period. 1.17.2 Termination of the Employment by the Company 19
Employees are entitled to a minimum notice period of termination from the Company, as set out below, or to any such longer period as may be statutorily required, unless your employment is terminated summarily on the grounds of gross misconduct or gross negligence. The Company's notice may be handed to you personally or sent to your last recorded address. Notice periods applicable when the Company terminates your contract of employment are currently as follows: (i) GCB 5, 6, 7 and 8 Length of Service (complete years) Minimum Notice 0-5 years One calendar month 5-12 years of continuous employment One week per completed year of continuous employment 12 years or more 12 weeks The notice periods set out in this section may be varied in writing or superseded by notice period contained in individual offer letters. (ii) GCB 4 The Company will give you at least three calendar months' notice. (iii) GCB 3 and above if your relevant contract of employment was issued before 1 September 2013 The Company will give you at least six calendar months' notice. (iv) GCB 3 if your relevant contract of employment was issued after 1 September 2013 The Company will give you at least three calendar months notice. (v) GCB 2 and above if your relevant contract of employment was issued after 1 September 2013 The Company will give you at least six calendar months notice. 1.17.3 Termination of Employment by You (i) GCB 5, 6, 7 and 8 Unless otherwise agreed by the Company in writing, you are required to give the Company one calendar month's notice in writing, which you must ensure is received by your entity manager before the notice begins to run. Verbal resignations will not be accepted. (ii) GCB 4 and above where the relevant contract of employment was issued before 1 September 2013 Unless otherwise agreed by the Company in writing, you are required to give the Company three calendar months' notice in writing, which you must ensure is received by your entity manager before the notice begins to run. Verbal resignations will not be accepted. (iii) GCB 3 and 4 where the relevant contract of employment was issued after 1 September 2013 Unless otherwise agreed by the Company in writing, you are required to give the Company three calendar months' notice in writing, which you must ensure is received by your entity manager before the notice begins to run. Verbal resignations will not be accepted. 20