CHAPTER - 5: RECRUITMENT, SELECTION AND PLACEMENT Back to Manual Index 5.

1 Initiation of Staff Hiring All units/Branches of the Bank should systematically forecast their future staffing requirements for timely induction of competent high quality staff. Requirement of additional staff/ replacement should be intimated to HRD through Divisional Heads/ Regional Managers/ General Managers/ Group Heads offices. All open positions are first posted internally by HRD at the request of branch/ dept. concerned on the Employee Portal for a minimum period of seven days. Incase vacant positions can not be filled in through internal resources then such vacancies will be filled in through external hiring as per Banks recruitment policy. Staff hiring may be done in batches, in small groups or individually. The management of the Bank may, at its discretion, employ expatriates. The Bank complies with the relevant provisions of the Emigration Ordinance/Law when hiring such employees. 5.2 Hiring of Batches When a whole batch of fresh officers is hired, they are first trained at the Banks Training & Development Centre (TDC) and then posted to Branches/HO Divisions based on requirement. These batches will be hired under the following categories; 5.2.15.2.25.2.35.2.45.2.5Management Trainee Officers (MTOs) Operations Officers (OOs) Cash Officers (COs) SME Officers/ Credit Officers/ Lease Finance Officers (LFOs)/ Rural Finance Officers (RFOs) Any other category of staff required by the Bank

Before initiating hiring of batch officers, HRD informs all units of approximate timings of such hiring and enquires about their city-wise requirements before the hiring process starts. 5.3 Hiring in Small Groups Hiring in small groups may be done according to planned phases of expansion of existing branches/units, or upon establishment of new branches/units, or for creating/replenishing staff pools maintained under the supervision of Area Managers/ Regional Managers/ Group Heads in major banking centres. 5.4 Individual Hiring Individual hiring is to be done from time to time when a branch or unit has a need to induct additional staff, or for replacement of outgoing staff. The Manager of the Branch/ Department where recruitment is to be made will first fill out the Job Requisition Form and send to HRD. After minimum of 7 days of posting on portal, if suitable replacement within the Bank is not available, then external recruitment is allowed subject to HRE Factor ( for BB & SME Group) and other requirements being met and a genuine business need is established. Hiring Managers (in initial selection interviews) must not commit any salary range or other perks to perspective external candidates in their initial interviews. Both Salary and Range will be first agreed by HRD and then conveyed to the candidate after clearance by Interview Panel.

5.5

Minimum Entry Requirements 5.5.1- Minimum entry requirement for employment in Bank Alfalah Ltd. in officers cadre is graduation from a recognized university of home country or abroad. However, condition of graduation may be waived by CEO to suit the requirements of the Bank, especially for cashiers, sales/ verification/ recovery staff of various Products/ Call Centre, However, such employees will be on Contractual Employment. Their services will be regularized after clearance of test and completion of graduation. 5.5.2- Persons deputed by External Service Providers must possess matriculation or higher degree. However, condition of matriculation may be waived by HRD to suit the requirements of the Bank.

5.6

Recruitment of Close Relatives BAL does not prohibit employment of close or blood relatives of current employees, provided that they meet required eligibility criteria, no conflict of interest is likely to arise and prior approval is obtained from GM HRD. Candidate once appointed should not be placed in the same Branch/Unit in which his/ her close/blood relative is already working. All candidates, at the time of interview are required to disclose their relationship (if any) with the existing employees in their application form.

5.7

Selection Responsibility and Authority 5.7.1- The schedule given below summarizes the assignment of hiring authority and responsibility :Dept. Head/ AM/ RM BM R R --R R A R R --R Recommended Approved GM/ GH/ Heads R R R -A Interview CEO Panel/ HRD A R R ---A A A --

Regular/Contractual Officer I III Officer IV VI Officers VII VIII Officers IX Outsourced Services

HRD Test ---R

GM HRD -R R -Oversee

5.7.2- All appointments of Branch managers, Divisional Heads, Area/ Regional Managers, Range VII and above require subsequent ratification from Boards Advisory Committee. 5.8 Selection Test All regular and contractual candidates for Range I, II & III must undergo a selection test arranged by HRD. Those obtaining 50 % or above points (allowing for two grace marks) will go to the next step in the hiring process. However, condition of written test can be waived for contractual employment, especially for Product Departments/ Cash Officers/ Call Centre staff etc. The employees of these departments will however have to appear for the test before their services are regularized. 5.9 Selection Interview Selection interviews should be conducted and evidenced by duly filled interview sheets, as follows: 5.9.1- For Branch Staff : By Branch Manager & Area Manager/ Regional Managers/ Panel Members approved by HRD 5.9.2- For Branch Manager & Area Office Staff: By concerned Area Manager/ Regional Manager/ Group Head/ Panel Members approved by HRD. *BM/ Team Leaders should be interviewed by CEO/ Co-Chairman Executive Committees (any one) 5.9.3- For Product Departments Staff: By concerned Manager & Product Head/ Group Head/ Panel Members approved by HRD 5.9.4- For Head Office Division Staff: By concerned Manager & General Manager/ Group Head/ Panel Members approved by HRD. 5.10 Panel Interviews: All candidates will be interviewed by panels of senior officers at Karachi and Lahore. Panel members will be approved by the CEO. 5.11 Issue of Offer/Appointment Letters Offer / Appointment letters will be issued by HRD to be jointly signed by authorized signatories i.e. Recruitment Manager/ DGM/ GM HR as the case may be. 5.12 Verification of Antecedents HR will arrange verification of references provided by the officers and their highest educational degree/certificate from the concerned university/board. Feedback from his/her last employer (especially incase of Financial Institutions) will also be obtained with regards to his/her honesty, integrity and performance before confirmation of

services. 5.13 Probationary Period & Confirmation of Services 5.13.1- As a standard practice, service of new entrants to Bank Alfalah Ltd. is to be subject to a probationary period. Length of this period is to be determined as follows : For those with less than five years of prior relevant experience : Six Months For those with prior relevant experience of 5 years and above : Three Months Confirmation letters will be issued by HRD on recommendation of concerned Branch Managers and AM/ GM/ RM/ GH. For Product Department Staff, concerned Product Department Head may recommend confirmation cases. 5.14 Renewal of Contract 5.14.1- Officers hired on retainership contract will be relieved from the services of the Bank unless the contract is renewed. 5.14.2- Before the end of the contract period, the Head of concerned Branch/Unit should fill a Contract Renewal Form and forward the same to HRD through concerned Group Head/ GM/ Divisional Head. In case of renewal of contract for further one year concerned officer will be eligible for salary increase (if recommended by the concerned GH/ GM/ Div Head) based on his/her performance rating. Renewal of Contract for above 60 years of age staff will be approved by CEO. 5.15 Placement of New Entrants As far as possible, attempt is to be made to select candidates belonging to the area where they need to be posted, in order to minimize disturbance and dislocation to newly recruited employees. However, in terms of the Banks service contract, services of an employee are transferable anywhere in the country or overseas branches to suit the requirements of the Bank. Minimum Service Agreement for three years from new employees (who have less than one years prior banking experience) All new joiners of the following categories are required to sign the Bond for Minimum Service Agreement of three years service, as elaborated below: Surety Bond amount * Rs. 300,000/Rs. 200,000/Rs. 100,000/-

5.16

Category 5.16.1 MTO Batch Officer Cash/ Operations/ SME/ Agri Batch Officers/ all 5.16.2 other batches 5.16.3 All new employees with less than one years banking experience

Minimum Service Three years Three years Three years

*1/3rd of the amount of surety will be reduced for every completed year of service. 5.17 Re-Hiring Policy Those staff who had worked with BAL can be considered for re-employment subject to following:

He/ She was not involved in any disciplinary action Performance Rating was never below Good No adverse comments/ records available on his/ her personal file Salary will be fixed based on current assignment and responsibility Salary of re-hired person should be in line with other officers of his/ her seniority level Verification of antecedents from previous employer After clearance of Panel interview and approval from GM HRD

CHAPTER - 17: RESIGNATION, TERMINATION & RETIREMENT Back to Manual Index 17.1 Resignation 17.1.1. A confirmed employee may resign from the Banks service upon giving one months/ three moths prior written notice to the Bank as per terms of their employment, failing which he/she will be liable to pay one months gross salary/ three months gross salary in lieu of notice period respectively. Management may waive notice salary to suit banks requirement. However, in this situation, salary will only be paid upto the last working day and not till the expiry of notice period. During this period, employee will not be eligible to avail leave. 17.1.2. The Banks management may, at its discretion, re-employ a person on terms as agreed between the

management and the person so re-employed, if not terminated/ resigned on disciplinary grounds. 17.1.3. During probationary period an employee can resign at any time without notice and in the event of such resignation the employee will be entitled only to the remuneration at agreed rate of salary for the time actually employed. 17.2 Termination 17.2.1. Confirmed Employee Services of a confirmed employee may be terminated by the Bank without assigning any reason by giving one months/ three months notice in writing or on payment of one months gross salary/ three months gross salary, in lieu of notice period. 17.2.2. Employees Under Probation During probationary period, services of an employee may be terminated at any time without notice and in the event of such termination the employee be entitled only to the remuneration at agreed rate of salary for the time actually employed. 17.2.3. Unauthorized absence from duty When an employee remains absent from his/her duty without proper authorization, or fails to return for duty within specified period mentioned in the written notice issued to him, he/she will be liable for disciplinary action which may include termination of service. The said written notice will not be for a period of less than one week from the date of dispatch of a letter by registered post or via reputable courier service at the employees last recorded address. 17.3 Conditions for retirement 17.3.1. All employees of Bank Alfalah Ltd. are liable to retire from the Banks services on attaining the age of 60 years. 17.3.2. The Banks management may, at its discretion, re-employ an employee due for retirement on contractual basis for a defined period. 17.3.3. The services of a person, who is thus employed, may be terminated by serving one months/ three months prior notice in writing or one months/ three months gross salary as per terms of the employment, in lieu thereof.