Regulations on Labor Discipline in Chemical Enterprises

Order on Safety Production in the Chemical Industry Department
Issuing authority: Ministry of Chemical Industry
Document number: Order No. 10 of the Ministry of Chemical Industry
Date of issuance: October 08, 1994
Date of entry into force: October 08, 1994
Fourteen prohibitions in production areas
1. Strengthen control over open flames; smoking is prohibited within the factory area. II. Minors are not allowed to enter the production area. III. During working hours, sleeping, engaging in personal tasks, leaving one’s post, or doing anything unrelated to production is prohibited. IV. Drinking is prohibited before and during shifts. V. It is prohibited to use flammable liquids such as gasoline to clean equipment, tools, and clothing. VI. Those who do not wear labor protection equipment as required are not allowed to enter the production area. VII. Equipment without complete safety devices shall not be used. 8. Equipment and tools that are not under one’s own responsibility shall not be used. IX. Maintenance work shall not commence if safety measures are not implemented. 10. Equipment that has been shut down for maintenance must not be put back into use without a thorough inspection. 11. It is prohibited to carry out work at heights without a high-altitude work permit, without wearing a safety belt, or when the scaffolding or stepping boards are not secure. 12. Work is not permitted if a scaffold is not properly secured on asbestos shingles. 13. Mobile power tools without installed electric shock protection devices must not be used. 14. Employees who have not obtained a safety operation permit are not allowed to work independently ； Workers in special types of jobs are not allowed to work without obtaining the necessary certifications. The six strict requirements for operators: 1. Strictly implement the shift handover system. II. Conduct thorough routine inspections. III. Strictly control process parameters. IV. Strictly implement the operating procedures (forms). V. Strictly abide by labor discipline. VI. Strictly enforce safety regulations. Six prohibitions for hot work: 1. Hot work is prohibited without an approved hot work permit. II. Work involving open flames is prohibited if reliable isolation from the production system cannot be ensured. III. No cleaning; if the replacement is unsatisfactory, welding is prohibited. IV. Do not remove flammable materials in the vicinity; welding is prohibited. V. Hot work is prohibited if a hot work analysis is not conducted on time. VI. Without fire protection measures, welding is prohibited. Eight necessities for entering containers and equipment: First, it is necessary to apply for permits, obtain the relevant approvals, and get authorization. II. Safety isolation must be implemented. III. The power supply must be cut off, and safety lighting must be used. IV. Replacement and ventilation must be carried out. V. Safety analysis must be conducted within the specified time frame. VI. Required protective equipment must be worn. VII. Someone must be stationed outside the device for monitoring and to remain at their post. VIII. Backup rescue measures must be in place. Seven prohibitions on motor vehicles: 1. Driving without a license or permission is strictly prohibited. II. Driving under the influence is strictly prohibited. III. Speeding and driving with the gear in neutral are strictly prohibited. IV. Driving with illness is strictly prohibited. V. Mixing passengers and goods in vehicles is strictly prohibited. VI. Overloading the vehicle is strictly prohibited. VII. Vehicles without flame arrestors are strictly prohibited from entering fire-prohibited areas.

Attendance and Labor Discipline Management System: In order to maintain a good operational order, improve work efficiency, ensure the smooth progress of business activities, and help employees maintain good physical condition and high energy levels so that they can perform their duties effectively, this system has been formulated in accordance with relevant regulations and taking into account the actual circumstances of Qiqihar Beixing Special Steel Co., Ltd. (hereinafter referred to as “the Company”). Attendance Management Article 1: The attendance management of all departments and teams within the company is under the oversight of the Corporate Management Department, which assigns part-time attendance officers to carry out supervision and inspections. Article 2: The attendance clerk shall submit the attendance records for the previous month by the 1st of each month to the labor affairs officer for consolidation. The labor officer has the right to conduct random inspections of these records. Article 3: Company standards > The standard working hours are as follows: Morning: 8:00–12:00; Afternoon: 13:30–17:30. Article 4: Production positions may set their own working hours based on the specific conditions of production; such arrangements must be submitted to the Corporate Management Department for approval before the specified hours can be adopted for tracking attendance. Article 5: Attendance documents include attendance records and attendance reports. Attendance records are the daily records of employees’ attendance kept by the attendance clerk, along with the relevant supporting documents. The attendance report is a statistical table prepared by the attendance clerk at the end of the month, and it should include: department name, employee name, days scheduled to work, actual days worked, overtime hours, number of days off, tardiness, early departure, and hours (days) of absenteeism. Article 6: Employees must strictly adhere to the scheduled working hours; they are not allowed to be late or leave early, to leave their posts without permission, and certainly not to be absent from work. Article 7: The attendance clerk shall strictly adhere to the attendance system, accurately record employees’ attendance, and must not report false or incomplete information. Article 8: Those who fail to arrive at work 15 minutes after the specified starting time will be recorded as being late once ； Those who leave work 15 minutes before the scheduled end time are recorded as having left early once. Article 9: When an employee needs to leave their post temporarily, they must request permission from their direct supervisor. They may leave only after another employee has been assigned to take over their responsibilities, and the duration of such absence shall not exceed 15 minutes. Otherwise, it will be treated as unauthorized absence from duty. Article 10: Any of the following behaviors shall be counted as absenteeism: (1) Being late or leaving early by more than 15 minutes on that day ； (2) Failing to show up on the scheduled day without proper justification ； (3) The certification materials provided despite not being at the post are found to be false upon verification ； (4) Those who leave their post without permission for a cumulative period of over 1 hour after arriving at work ； Article 11: In the case of tardiness or absenteeism as mentioned in the aforementioned provisions, if it is confirmed after investigation by the human resources department that the employee acted bravely to help the factory avoid losses, then the records of tardiness or early departure will not be revoked, and the records of absenteeism can be changed to official leave. The corresponding penalty remains unchanged, but rewards may be granted in accordance with the company’s relevant reward policies. Article 12 Provisions on rewards and penalties regarding attendance management: (1) A tardy arrival or early departure results in a deduction of 5 salary points ； After three times in the same month, 10 points will be deducted each time ； (2) If the total number of tardies and early departures in a given month reaches 6, or if the total time spent in such instances exceeds 1 hour, it is counted as one day of absenteeism. (3) For leaving the post without permission for within 15 minutes, 5 merit points will be deducted each time ； For durations of 15–30 minutes, 10 points will be deducted from the salary for each occurrence ； 30-60 minutes, 20 points deducted per session. (4) Absent from work for half a day: 40 points deducted from salary ； For one day of absenteeism, 80 points from salary will be deducted ； (5) If absenteeism amounts to 3 days in a single month or 10 days throughout the year, a warning penalty shall be issued. (6) Employees who are absent from work for a total of 5 days in a given month, or 15 days throughout the year, shall be dismissed. (7) If an employee maintains perfect attendance throughout the year, with no instances of being late, leaving early, taking sick leave, personal leave, or being absent from work, they may be awarded a commendation upon their own application and with the approval of the Corporate Management Department. (8) If the attendance clerk reports falsely or omits information, 10 points will be deducted from their salary for each such incident ； If it exceeds 4 times in that month, one warning penalty will be issued. (9) Employees who have difficulties with attendance shall be given a warning or a demerit record depending on the severity of the situation. (10) Those who privately alter or damage attendance records shall be given a reprimand. Leave Management Article 13 The company classifies leave into two main categories: welfare leave and non-welfare leave. Benefits leave includes: weekly rest days, annual statutory holidays, home leave, marriage leave, bereavement leave, maternity leave, etc. Non-welfare leave includes sick leave, personal leave, official leave, etc. Article 14: All types of leave include public holidays; in the event of a statutory holiday, it will be postponed. Article 15: Sick leave is the time applied for by enterprise employees to stop working and rest for treatment due to illness or injury not resulting from work. Except in emergency cases, sick leave must be requested in advance (no later than 15 minutes after the start of working hours on that day), and a medical diagnosis certificate issued by a legitimate medical institution is required. Article 16: For long-term sick leave, the compensation standards vary depending on the employee’s length of service and tenure with the company, as follows: Based on actual years of service and years worked at the company, the maximum duration of sick leave is 10 years for those with up to 20 years of service, and 6 months, 9 months, 12 months, 18 months, or 24 months respectively for those with more than 20 years of service. If the sick leave exceeds the limits specified above, the company may place the employee on suspension until the employment contract is terminated. Leave due to work-related injuries is regulated separately. Article 17: The authority to approve sick leave is as follows: (1) For sick leave of up to 1 day, it shall be approved by the direct supervisor, with a report filed with the department manager and workshop supervisor ； (2) For sick leave of up to 3 days, it shall be approved by the department manager or workshop supervisor and filed with the Enterprise Management Department ； (3) For sick leave of less than 30 days, it shall be approved by the deputy general manager in charge ； (4) If the cumulative sick leave exceeds 30 days, it must be approved by the general manager. Article 18: For personal leave, a written request must be submitted in advance. After approval, temporary handover of duties must be carried out before leave can be taken. Article 19: The authority to approve personal leave is as follows: (1) For personal leave of up to 1 day, it shall be approved by the department manager or workshop supervisor, and the approval shall be filed with the Enterprise Management Department ； (2) For leave of absence up to 3 days, it shall be approved by the deputy general manager in charge ； (3) For leave of absence of less than 5 days, it shall be approved by the general manager ； (4) In principle, the leave of absence for personal reasons shall not exceed 7 days in a given year. Otherwise, they should be suspended. Article 20: A person may apply for official leave for one of the following reasons: (1) To exercise the right to *vote ； (2) Representative meetings at the district level or above convened by organizations such as ***, political parties, trade unions, youth leagues, and women’s federations, with elected representatives in attendance ； (3) Serving as a people’s assessor, witness, and defender in people’s courts ； (4) Conference on Model Workers and Advanced Workers ； (5) For trade union activities of trade union grassroots members who are not required to leave their jobs as stipulated by the Trade Union Law, when these activities take no more than 2 working days per month ； (6) Those who have received awards at the district level or above and attended award ceremonies ； (7) When leaders at or above the level of deputy general manager of the company are designated to attend meetings or mass activities. Article 21: In principle, public holidays shall not exceed 3 days per occasion and 5 days per year, **except as otherwise specified. Article 22: The criteria for entitlement to welfare leave are specified in the Employee Welfare Policy. Article 23: Except as provided above, approval authority for leave requests shall be granted by the superior at the next higher level ； If the general manager or deputy general manager takes leave for more than 3 days, it must be approved by the board of directors. Article 24: Except for public holidays, statutory holidays, and leave for emergency situations, employees must fill out a \"Leave Request Form\" in advance to apply to the approver, and the leave can be taken only after approval. Those who truly have an urgent matter and cannot request leave in advance may ask for leave by phone or delegate someone else to do so, and must complete the formalities for leave approval afterwards. One must go through the proper leave procedures before leaving the workplace; otherwise, it will be considered absenteeism. Article 25: After an employee takes leave, their direct supervisor shall arrange for someone else to take over their duties temporarily ； When the general manager or deputy general managers are away, they must inform the office of their itinerary and schedule for record-keeping. Article 26: The leave request form shall be kept by the attendance officer in the department where the employee works, and the attendance officer in that department must record the information accurately. The person requesting leave should return to work on time and indicate that the leave has been completed upon arrival. Article 27: Once an employee’s leave period has ended, if they fail to apply for an extension two days in advance or if their extension request is not approved, they must return to work. Those who fail to arrive at work on time will be considered absent from work, unless it is due to force majeure. Article 28: If it is proven that the reason given by an employee for taking leave is fraudulent, the leave already taken shall be treated as absenteeism, and the employee shall be given a reprimand. False leave benefits Article 29 The relevant standards covered by this article are as follows: Daily working hours: 8 hours ； Actual working days per month: 22. Article 30: Sick leave benefits: (1) If the number of sick leave days in a month is less than 3, assessment is carried out as usual, but performance bonus points are deducted according to the proportion of absence ； (2) After the cumulative sick leave exceeds 30 days: for months in which the leave exceeds 15 days, the employee is exempt from assessment; their assessment score will be calculated based on the department’s average score. However, the salary points associated with flexible positions will be reduced according to the proportion of absence, and no performance-based salary points will be allocated ； If it is less than 15 days, the assessment proceeds as usual, but the salary points for flexible positions and performance-based salary points are reduced in proportion to the absence rate ； (3) For sick leave exceeding 30 days, no performance points will be calculated; instead, the monthly position points will be determined based on a certain percentage of the standard position points. The percentages are as follows: for those with less than 5 years of service: 50%; for those with less than 15 years of service: 60%; for those with more than 15 years of service: 70%. Article 31: In the event of personal leave during the month, assessments will proceed as usual, but the variable position points and performance points will be reduced according to the proportion of absence. Article 32: On the production floor, with the approval of the workshop supervisor, sick leave or personal leave of up to 3 days can be offset through compensatory time off within the same month, without affecting performance evaluations. Article 33: If there are official holidays in the month, the assessment will proceed as usual, but the performance bonus points will be deducted according to the proportion of absence. Article 34: Treatment for home visit leave: (1) If the number of days is 5 or less within the same month, regular assessments shall proceed, but the salary points for variable positions and performance-based salary points shall be reduced in proportion to the absence. (2) If the date is within the first 10 days of the month, it is not taken into account in the assessment; the assessment score for such cases is calculated based on the department’s average score. However, the salary points for positions with variable pay and performance-related salary points must be reduced according to the proportion of absence. (3) If it is after the 10th of the month, it will not be taken into account for assessment, and no performance bonus points will be awarded; the floating position bonus points will be deducted according to the rate of absence. Article 35: If the number of days of marriage leave taken in a given month is less than 5, the assessment will proceed as usual, but the performance bonus points will be deducted in proportion to the amount of absence ； If the marriage leave taken in that month exceeds 5 days, it is not taken into account in the assessment; the assessment score will be calculated based on the department’s average score, but the performance bonus points will be reduced according to the proportion of absence. Article 36: In the case of bereavement leave taken during the month, assessments shall proceed as usual, but the variable position points and performance points shall be deducted according to the proportion of absence. Article 37: During maternity leave, no assessments are conducted, and no performance points are calculated. The salary points for each position are calculated based on the standard salary point values. Article 38: During the maternity leave, no performance evaluations are conducted, and no performance-based bonuses are calculated. The salary points for these positions are calculated at 70% of the standard salary point amount. Article 39: Time off does not affect the calculation of seniority points. Labor Discipline Management Article 40: Each workshop, department, and production site may, in accordance with management needs and in line with the relevant provisions of this system, formulate its own regulations or implementation details regarding labor discipline. Article 41: The labor discipline management regulations and implementation details for each workshop and department must be submitted to the Enterprise Management Department for review, and after approval by the general manager, they shall be issued uniformly for implementation. Article 42: The penalty standards for employees who violate the aforementioned labor discipline regulations shall be determined by the Enterprise Management Department after seeking the opinions of the relevant department in charge of formulating such regulations and the Finance Department; once approved by the General Manager, they shall be issued together with the labor discipline regulations. Appendix Article 43: This system shall be formulated by the Enterprise Management Department and put into effect upon approval by the General Manager; the same applies in case of amendments. Article 44: The interpretation of these regulations is the responsibility of the Enterprise Management Department

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