MTN GROUP MANAGEMENT SERVICES (PTY) LIMITED

HUMAN RESOURCES

Document Name : Separation Policy

HR Discipline : Talent Acquisition

HR Domain : Separation

Author : Eva Kavuma

Date : 7 November 2012

Version: : Ready for Approval and Authorisation

File Reference : Policy - Separation_v3

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 MTN GROUP MANAGEMENT SERVICES (PTY) LIMITED
HUMAN RESOURCES

1. T ABLE OF C ONTENTS

1. TABLE OF CONTENTS .................................................................................... 2

2. AUTHORISATION ......................................................................................... 3
3. APPROVAL ................................................................................................. 3
4. DISTRIBUTION LIST...................................................................................... 3
5. INFORMATION CLASSIFICATION ........................................................................ 3
6. STATEMENT OF INTENT .................................................................................. 4
7. RATIONALE ................................................................................................ 4
8. SCOPE ..................................................................................................... 4
9. AUDIENCE ................................................................................................. 5
10. POLICY STATEMENT (SEPARATION).................................................................... 6
11. RELATED POLICIES ....................................................................................... 8
12. RELATED PROCESSES / PROCEDURES ................................................................. 9
13. RELATED STANDARDS ................................................................................... 9
14. RELATED ROLES .........................................................................................10

Explanatory Note:

A policy is a broad set of principles or rules, which shape human behaviour

towards a well defined-purpose or end. A policy may refer to specific processes,
standards and roles required to ensure compliance.

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 MTN GROUP MANAGEMENT SERVICES (PTY) LIMITED
HUMAN RESOURCES

2. AUTHORISATION

This document is authorised by:

Name Title Date Signature

Group President and

Phuthuma Nhleko
CEO

3. APPROVAL

This document is approved by:

Name Title Date Signature

Group Executive:
Paul Norman
HR

4. DISTRIBUTION L IST

This document is to be distributed as follows:

Name Department

5. INFORMATION C LASSIFICATION

5.1. Access to this policy document is unrestricted within MTN

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 MTN GROUP MANAGEMENT SERVICES (PTY) LIMITED
HUMAN RESOURCES

6. STATEMENT OF I NTENT

6.1. This document sets out to describe and define the principles and rules
that govern employee separation, with the objective of properly informing
the decisions and actions of the involved parties.

7. R ATIONALE

7.1. Separation can arise from a variety of voluntary and involuntary factors.
Irrespective of the causal factor, it is in both the company’s and
employees’ interests that workplace relationships are terminated in a
regulated manner that allows for timeous and effective outcomes,
including:

 recovery of company assets, intellectual property and any confidential

material

 settlement of moneys due to employees and/or to the company

 implementation of post-separation benefits, where applicable

 collection of information to improve learning

7.2. This policy is mandated in order to maintain fairness, consistency and

transparency throughout all MTN OUs.

7.3. Properly implemented, this policy also provides assurance within and
outside MTN that the company is meeting its legal responsibilities and
acting according to its own values regarding employee separation.

8. SCOPE

8.1. This policy governs the termination of the employment relationship of

permanent employees, at any MTN level of work, resulting from any of the
following voluntary and involuntary causal factors:

 Death
 Disability
 Dismissal
 Resignation
 Retirement
 Retrenchment and
 In certain instances the Transfer of an employee, including the taking
up of an expatriate contract or secondment.

8.2. This policy does not apply to expatriate employees (see Policies –
Separation of MTN Group Expatriates and Separation of MTN
International Expatriates Employees).

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 MTN GROUP MANAGEMENT SERVICES (PTY) LIMITED
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8.3. The policy is applicable to all MTN OUs.

9. AUDIENCE

9.1. The primary audience for the separation policy comprises HR Managers
and Partners at MTN OUs.

9.2. A secondary audience comprises senior line managers and interested

MTN employees.

9.3. This policy is owned and maintained by the domain owner for Separation
at MTN Group Human Resources.

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 MTN GROUP MANAGEMENT SERVICES (PTY) LIMITED
HUMAN RESOURCES

10. POLICY STATEMENT (SEPARATION )

Responsibilities

10.1. Overall management responsibility for the effective separation of

employees from the company rests with HR Operations in each OU.
However, involved line managers and separating employees themselves
are expected to understand and to fulfil their responsibilities in ensuring
clean separation.

Detail in Related Policies and Processes

10.2. Rules governing the terms of separation, for example notice periods,
retirement ages, treatment of outstanding leave and rules applicable to
other employee benefits, are recorded in:

10.2.1. Relevant legislation.

10.2.2. Letters of appointment which are compliant with the Standard –

MTN Terms and Conditions of Employment, and also in

10.2.3. Policy and Standards documents governing MTN employee

Remuneration, Benefits and Talent Acquisition disciplines.

Keeping the Record Straight

10.3. Causal factors for separation will always be properly identified and
internally recorded. For example, dismissal arising from disciplinary
action, incapacity or under-performance may not be recorded as
resignation.

10.4. In order to protect the economic interests of the company as well as the
interests of other benefit fund members, criteria for the payment of
separation benefits shall be strictly applied. For example, an employee
who resigns from the company or is dismissed shall not be paid a
retrenchment package or receive ill-health or early retirement benefits.

Benefits Funds

10.5. In certain OUs the company has established contributory and non-
contributory benefits funds such as a retirement fund, disability insurance
fund and funeral expense cover for the purpose of providing employees
who separate, in accordance with the rules of these funds, benefits to
which they and/or their dependents are entitled. In order to ensure that
the benefits from these funds are properly expedited, the company will:

10.5.1. Properly register all employees and beneficiaries with the

appropriate benefits funds at the commencement of, and during,
the employment relationship.

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10.5.2. Instruct applicable funds timeously with separation or termination

notices.

Return of Company Assets and Intellectual Property

10.6. Separating employees are liable to return, replace or compensate the

company for loss or damage to all company assets with which they have
been issued during the course of their employment. Separating
employees are also liable to return any company intellectual property,
confidential documentation and materials. Such assets or the value
thereof shall be recovered by the company on or before the date of
separation.

10.6.1. Recoveries may be made by the company from payments due in

respect of pay and leave pay but not by attaching money due to
separating employees as a consequence of withdrawal from any
retirement fund.

Employee Indebtedness

10.7. Separating employees are liable to refund the company any outstanding
monies that may have been advanced or lent to them by the company. If
not voluntarily refunded, the company may recover such debts in
accordance with 10.6.1.

Exit Interview

10.8. Wherever practical employees separating from the company are entitled,
and will be invited, to attend an exit interview in order to provide the
company with information that will help improve the MTN work
environment and the company’s recruitment and retention performance.
Such an interview will be conducted by OU HR Operations personnel,
using the prescribed form (Standard – Exit Interview) prior to the date of
separation. Specific responses will remain confidential to the OU HR
Operations department.

Preparing to Leave

10.9. Employees who are due to separate from the company, or depart from a
specific employment relationship, at a determined future date shall be
accorded all rights and privileges normally associated with their
employment and may be expected to fulfil their normal employment
obligations up until the date of separation.

10.9.1. If so required, separating employees may be requested to

dedicate time to the induction and training of a person designated
to replace them.

10.9.2. Notwithstanding ‎10.9 and if permitted by OU Conditions of Service

and/or local labour legislation, it will be MTN practice to “wind-
down” the employment relationship of separating employees by,

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for example, permitting them to take unused annual leave and to

spend reasonable time attending to personal matters arising from
their impending separation from the company.

10.9.3. Employees whose relationship with the company is terminated by

immediate dismissal in accordance with the Employee Relations
Policy shall be escorted from the company’s premises as soon as
all separation procedures and settlements have been effected and
shall immediately forfeit their non-statutory rights, privileges and
benefits.

Certificate of Service

10.10. All separating employees are entitled to obtain a “Certificate of Service”

from MTN which provides salient details of the duration and nature of their
employment and, only if requested by the employee, the rewards
therefrom. The company shall not unreasonably deny a separating or ex-
employee’s request for a more informative testimonial. A template for
such a certificate is available in the related Standard – Certificate of
Service.

11. R ELATED P OLICIES

11.1. Cellular Communications policy

11.2. Commission policy

11.3. Connection policy

11.4. Disability Benefits policy

11.5. Employee Relations policy

11.6. Expatriate Remuneration and Expatriate Benefits policies

11.7. Leave policy

11.8. Medical Funds policy

11.9. Notional Share Scheme policy

11.10. Performance Bonus policy

11.11. Recruitment policy

11.12. Remuneration policy

11.13. Retirement Funds policy

11.14. Retrenchment policy

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11.15. Separation of MTN Group Expatriates

11.16. Separation of MTN International Expatriates

11.17. Share Scheme policy

12. R ELATED PROCESSES / PROCEDURES

12.1. Separation process

12.2. Cellular Communications process

12.3. Commission process

12.4. Connection process

12.5. Disability Benefits process

12.6. Employee Relations process

12.7. Expatriate Remuneration and Expatriate Benefits processes

12.8. Leave process

12.9. Medical Funds process

12.10. Notional Share Scheme process

12.11. Performance Bonus process

12.12. Recruitment process

12.13. Remuneration process

12.14. Retirement Funds process

12.15. Retrenchment process

12.16. Share Scheme process

13. R ELATED S TANDARDS

13.1. Standard - MTN Terms and Conditions of Employment

13.2. Standard – Exit Interview

13.3. Standard – Certificate of Service Template

13.4. Standard – HR Separation Checklist

13.5. Other standards as referenced in the related policies

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14. R ELATED R OLES

14.1. HR Manager/Partner Separation Role

14.2. Line Manager Separation Role

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