1100001343/ WO # 027 Workers Welfare Plan

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Worker Welfare Plan

Contents

1.Commitment to Worker Welfare. 5

2.Scope 5
3.Objective 5
4. Fundamental Principles of Worker Welfare 6
5.Compliance with Legal Requirements 7
6. Guidance Notes 7
7. AL-SHALAWI Roles and Responsibilities 7
8. General Requirements 8
9. Policy Implementation 10
10. Escalation process 11
11. Contractor Pre-selection and Supplier Screening 11
12. Imminent Danger 11
13. Contractor compliance 12
14. Training 12

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Worker Welfare Plan

1.Commitment to Worker Welfare.
Al-Shalawi firmly believes in supporting and protecting the health, safety, welfare, security, and
dignity of each worker on its projects. Ethical recruitment and employment practices, safe work
practices, as well as safe and healthy living and working conditions are critical elements to our way of
delivering work. We recognize that welfare arrangements and quality facilities not only improve
workers’ health and well-being, but also enhance performance, efficiency, and health and safety
compliance. Such conditions are also essential to achieving our Target Zero philosophy and our
mission of helping clients build a better and more sustainable world. Al-Shalawi is committed to
establishing and maintaining high worker welfare standards for our employees and individuals
working on Projects on our behalf. In addition, we will share this policy with our clients, and strive to
influence other firms in our industry to adhere to the practices outlined in this Policy as well as local
regulations. We commit to continuously improving our services to clients in this area by engaging
with relevant stakeholders and drawing from international best practices. Al-Shalawi aspires to be at
the forefront of our industry, acting as catalysts for change both on our Projects and in the wider
community in which we work.

2.Scope
This Scope of Work is for the Emergency Road repairs required on the Gayal Road sections between Gayal and
ARAMCO Road Roundabouts. The Contractor shall repair the depressed/ rutted areas identified.

• Core sample testing (6 No.).

• Removal and safe disposal of asphalt wearing and asphalt base courses.
• Removal and safe disposal of aggregate basecourse and subbase.
• Proof roll/ compaction of the existing substrate following excavation of the 850mm road build up the
substrate to be tested, any soft spots to be addressed. Substrate to be compacted to 95% MODAASHTO.
• Compaction of subbase layer to 95% MODAASHTO, Field density Testing (FDT} to be carried out by the
Contractor and inspected by third party.
• Laying and compaction of aggregate base course to required thickness including FDT. Compaction to be
98% MODAASHTO.
• Application of bituminous prime coat on aggregate base course.
• Installation of bituminous base course adhering to MOT standards.
• Application of bituminous tack coat to the bituminous base course.
• Installation of bituminous wearing course to the required level.
• Application of new road markings as per existing.
•
3. Objective

As an ethical company, we will take appropriate measures as outlined in this Policy to ensure
that the Contractors in our supply chain and with whom we work on Projects hold an
equal regard for the health, safety, and welfare of their Project Workers.

Worker Welfare Issues

Worker Worker Accommodation Safety

Recruitment Management
•Contract abuse •Discrimination •Facility standards •Skills and training

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Worker Welfare Plan

•Recruitment fees •Harassment and •Food and water •Health & safety
•Human rights abuse •Laundry facilities •Communications
•Employment •Restricted freedom •Health care •Welfare facilities
freedom of movement •Lifestyle and •Health care
•Repatriation •Disciplinary leisure
practices
•Working hours
•Wages & benefits
•Freedom of
association

4. Fundamental Principles of Worker Welfare

AL-SHALAWI Workers and all Workers of Contractors (which includes by definition Sub-
contractors) working on behalf of AL-SHALAWI (within our supply chain) on Projects shall
be treated on the basis of the following fundamental principles:
•The employment and welfare policies and standards of our Contractors shall be in line with
the requirements set out in legislation in the country of work.
•Workers shall be provided with information about their human and labour rights and
entitlements under the law and this Policy using appropriate methods and language to ensure
they understand;
•The dignity of Workers shall be protected and preserved. Inhumane treatment, abuse and
humiliating disciplinary action is not permitted;
•Forced, compulsory, bonded, or indentured labour, human trafficking practices, or any other
violations of human and labour rights in accord with the work country, international
standards, and this Policy, shall not be tolerated;
•Recruitment, selection, and hiring shall be conducted in a fair and ethical manner and
without discrimination on the basis of nationality, gender, sexual orientation, pregnancy
status, family status, ethnicity, social status, political affiliation, race, or religion;
•Employers shall ensure that Foreign Migrant Workers understand the terms and conditions
of their employment and are provided with written contracts in a language that they
understand. Illiterate Foreign Migrant Workers shall have the terms and conditions verbally
communicated to them;
•Workers shall be provided a clean, secure, safe, and healthy working environment;
•Where Contractors are responsible for their Workers’ living arrangements, Contractors shall
be expected to provided clean, secure, safe, and healthy living environment;
•Workers shall have unrestricted access to water and toilet facilities at all times;
•All Workers must be treated equally and fairly, irrespective of their nationality, gender,
sexual orientation, pregnancy status, family status, ethnicity, social status, political affiliation,
race, or religion;
•Wage payments shall be made as agreed and on time;
•Persons under the age of 16 shall not be employed;
•Workers have the freedom to exercise their in-country legal rights, including raising a
grievance, freedom of movement, resignation, freedom of association, or refusing to perform
work that poses an unacceptable safety or health risks for the type of Project for which
Workers have accepted employment;

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•All Workers shall at all times have the freedom of movement outside normal working hours,
unless there are legitimate safety or security issues that might threaten the health, safety, and
well-being of the Worker;
•Appropriate assurance programs must be implemented to ensure this Policy is implemented;
•Senior management shall be engaged and provide leadership and oversight on the
implementation of this Policy;
•Contractors, subcontractors and third parties falling under the coverage of this Policy will
bear full responsibility for fulfilling the requirements of this Policy.

5.Compliance with Legal Requirements

All AL-SHALAWI Project Contractors will be expected to adhere to the following:
• The relevant laws, including regulations, decrees, orders, guidelines, decisions, or
directives issued by the relevant authorities in the country of operation;
• Any relevant amendments or additions to the aforementioned laws and any relevant
new law promulgated during the implementation of the Main Contract and Sub-Contracts.
• Any contractual provisions in contracts requiring adherence to and implementation of
policies and practices that meet or exceed the worker welfare standards set forth in this
Policy.
Any conflicts between law and the requirements of this Policy shall be resolved by the
Regional Managing Director in consultation with Health and Safety, Procurement, the
Regional Legal Department, and the AL-SHALAWI Project Manager.

6. Guidance Notes
The guidance notes provide a recommended route to compliance and shall be implemented
wherever it is necessary to ensure the proper operation of this Policy.
• Guidance Note 1 – Prequalification Questionnaire
• Guidance Note 2 – Worker Welfare Survey
• Guidance Note 3 – Worker Accommodation
• Guidance Note 4 – Ethical Recruitment and Employment
• Guidance Note 5 – Worker Welfare Management Plan
• Guidance Note 6 – Worker Communication
• Guidance Note 7 – Records and Access
• Guidance Note 8 – Key Performance Indicators

7. AL-SHALAWI Roles and Responsibilities

7.1 AL-SHALAWI Project Manager
The AL-SHALAWI Project Manager must have a thorough understanding of this Policy, and
meet the requirements contained within. At all times the Project Manager must whenever
practical provide appropriate support and guidance on this Policy to AL-SHALAWI staff, our
Contractors, and the Client. The Project Manager is ultimately accountable for the assurance
program and ensuring implementation of this Policy.

7.2 AL-SHALAWI Facilities Lead / Office Manager

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The AL-SHALAWI Facilities Lead/Office Manager must have a thorough understanding of
this Policy, and meet the requirements contained within. At all times the Facilities
Lead/Office Manager must whenever practical provide appropriate support and guidance on
this Policy to AL-SHALAWI staff and our Contractors.

7.3 AL-SHALAWI Responsible Health & Safety Manager

The AL-SHALAWI Responsible Health & Safety Manager (RHSM) has oversight with
regard to this Policy on specific Projects and is authorized to coordinate and assess the
specific Project procedures to implement this Policy. The RHSM will assist in the
implementation of the Project assurance program.

7.4 AL-SHALAWI Legal Department

The AL-SHALAWI Legal Department will provide guidance on legal matters affecting the
implementation of this Policy as requested by specific Projects.

7.5 AL-SHALAWI Procurement Lead

The AL-SHALAWI Procurement lead is responsible for managing the Project
supplier/subcontractor prequalification process under this Policy; leading the issuance of
Contractor solicitations and evaluation of proposals; supporting Project facility inspections
under this Policy, awarding supplier/subcontract agreements, communicating with
suppliers/subcontractors and
resolving issues; performing oversight functions and monitoring performance; and
maintaining a register of prequalification questionnaire submissions.

7.6 AL-SHALAWI External Sales / Business Development Lead

The AL-SHALAWI External Sales/Business Development lead (or the appropriate client
relationship manager) shall be responsible for: engaging with Clients to discuss the content
and benefits of this Policy; encouraging Clients to adopt the standards set forth in this Policy;
and making provisions for AL-SHALAWI to support the implementation of this Policy as
part our services to Clients.

7.7 AL-SHALAWI Market / Regional Risk Manager

The AL-SHALAWI Market/Regional Risk Manager shall be responsible for: early
identification of potential Policy violation risks (potentially in go/no-go phase); ensuring that
Policy violation risks are included in the
pursuit/project risk register; and verifying that appropriate mitigation actions are in place.

7.8 AL-SHALAWI Human Resources Manager

The AL-SHALAWI Human Resources department shall be responsible for ensuring that our
Project contingent labour workforce and our direct Project Workers are treated in accordance
with the requirements of this Policy.

8. General Requirements

8.1 Ethical Recruitment and Employment

The recruitment of all Project Workers shall be conducted in accordance with this Policy.
AL-SHALAWI reserves the right to audit and prohibit the use of certain recruitment agents,
sub-contractors, or suppliers based on Policy violation risks identified during audits and the

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Worker Welfare Plan

supplier selection process, including a history of non-compliance with worker welfare
requirements and other risk factors.
Contractors may be terminated and prevented from working with AL-SHALAWI on future
projects if the requirements of this Policy are not applied on our Projects.
→ GUIDANCE NOTE GN4: Ethical Recruitment and Employment

8.2 Identity Documents and Passports

Foreign Migrant Workers shall be in full ownership of their passports and other personal
documents. The contractors shall make available to Foreign Migrant Workers safe lockable
storage facilities where they can store and access their personal documents.

8.3 Equality
All Project Workers, irrespective of their nationality, gender, sexual orientation, pregnancy
status, family status, ethnicity, social status, political affiliation, race, or religion, shall be
treated fairly with regard to hiring and opportunity or treatment in employment. Contractors
and Sub-contractors will be expected to develop policies as well as effective and efficient
procedures to implement, monitor, and ensure company-wide adherence to this Policy.

8.4 Freedom of movement

All Project Workers shall at all times have the freedom of movement outside normal working
hours, unless there are safety or security issues that threaten the health, safety, and well-being
of the Worker.

8.5 Grievance
Contractors shall have a system for a confidential, effective grievance reporting and
resolution process for all Project Workers on site and in worker accommodation.

8.6 Accommodation standards

Project Worker accommodation standards contained in national/local regulations should be
considered as a baseline. Where Project Worker accommodation requirements are not
specified in national/local laws and regulations, those standards contained in Guidance Note
GN3 shall apply. Where there is any conflict, the higher of the standards should be applied
where feasible.
If a Project Worker accommodation facility is being managed by a Contractor or Sub-
contractor, the accommodation standards must be specified, and mechanisms to ensure that
those standards are implemented should also be established.s
→ GUIDANCE NOTE GN3: Worker Accommodation

8.7 Management of Accommodation

Project accommodation facilities must be operated or overseen by an experienced and
competent accommodation manager, with sufficient resources and the organisation to operate
the facility to the required standards. The manager should have the authority and
responsibility for overseeing staff and ensuring the implementation of the standards of this
Policy.
→ GUIDANCE NOTE GN3: Worker Accommodation

8.8 Communication

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Contractors shall have a process to ensure that their Project Workers are well-informed about
this Policy, that an effective two-way communication process exists, and that they encourage
an open and honest dialogue on questions about this Policy.

→ GUIDANCE NOTE GN6: Worker Communication

8.9 Records and access

Contractors shall keep and maintain in a safe, fireproof, and secure location all relevant
information and records concerning their compliance with their own policies and practices
that meet or exceed the standards set forth in this Policy. Access to Project Worker personal
information shall be limited to authorized personnel.

8.10 Insurance
Contractors shall have adequate general insurance coverage, and comprehensive employee
medical and work-related accident insurance suitable and applicable for their workforce.

9. Policy Implementation
The requirements described in this Policy are applicable as outlined below and are dependent
on our role or contractual relationship with the Client:

9.1 AL-SHALAWI and our supply chain

On AL-SHALAWI Projects, and in our Project offices, we will ensure that the requirements
of this Policy are implemented by AL-SHALAWI and that our Contractors have their own
policies and practices that meet or exceed the standards set forth herein. Where areas of non-
compliance are observed, Contractors will be provided an opportunity and the guidance to
address these issues; however, where no improvement is observed, this will be escalated and
may lead to Contractors being terminated and prevented from working with AL-SHALAWI
on future projects.

9.2 Third-party Contractors

On Projects where Contractors are not directly employed by AL-SHALAWI but we have a
direct role providing Project site supervision services including health and safety services, we
will:
I. Share this Policy, guidance notes, and best practice resources with our client and encourage
their adoption and flow down to other contractors to the Client.
II. Offer our clients the opportunity to provide assurance services (at a negotiated rate) to
ensure that client requirements and local/national /NEOM laws concerning worker welfare
are implemented and enforced, and report any observed violations to the Client.

9.3 Projects where we do not provide site services

Where we perform work on a Project site but do not provide supervision or health and safety
services to our client, we will share this Policy with our clients to reinforce their
understanding of the importance of having a clearly defined worker welfare standard, such as
this Policy. During the Project, we will inform our client of any observed practices or
conditions that would violate the standards of this Policy.

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10. Escalation process

On Projects where the requirements of this Policy are not adopted and adhered to, this will be
escalated to the Regional Managing Director. Each Project will be reviewed and, depending
on the outcome of the review, a decision will be made on next steps and necessary future
involvement.

11. Contractor Pre-selection and Supplier Screening

11.1 Our direct Contractors

With our direct supply chain on AL-SHALAWI Projects and in our offices, prior to the
selection of our Contractors we will assess their level of commitment to worker welfare as
part of our standard tendering process.

→ GUIDANCE NOTE GN 1: Prequalification Questionnaire

Prior to commencing work with AL-SHALAWI on a Project, our Contractors who provide
labor services (e.g., construction workers, cleaning staff, etc.) will be required to submit a
Worker Welfare Management Plan, which will form part of an integrated HSE Management
plan. The scope and complexity of each Worker Welfare Management Plan shall be
commensurate with the risk presented. Each Worker Welfare Management Plan will be
assessed to ensure compliance with local legal requirements and the requirements of this
Policy, will be reviewed by the Responsible Health and Safety Manager, and will be
approved by the AL-SHALAWI Project Manager.

→ GUIDANCE NOTE GN5: Worker Welfare Management Plan

11.2 Third-party facilities and contractors

On projects in which we are employed to support a Client with the selection of their
contractors and suppliers who provide labor services on a Project, we will offer to work with
our Client (at a negotiated fee) to integrate the standards set forth in this Policy into their
standard tendering and selection process and assist them in evaluating their supply chain’s
level of commitment to the standards set forth in this Policy and legally required worker
welfare standards under applicable local laws and regulations.

12. Imminent Danger

Regardless of the role AL-SHALAWI or a Contractor is performing on a Project, if a
situation is observed that presents a real and immediate serious risk of death or serious
physical harm, responsible individuals working for AL-SHALAWI or our Contractors shall
be allowed to take immediate steps to remove the employees or others from that situation.

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13. Contractor compliance

13.1 Audit and inspection of AL-SHALAWI facilities and contractors

Where we are providing facilities to Project Workers on a Project, we shall ensure that the
minimum requirements laid out by this Policy are implemented. AL-SHALAWI reserves the
right to conduct regular inspections and audits of its own and Project Contractors’ facilities,
program documentation, and records. Such audits may include but shall not be limited to
inspection of a Contractor’s work site and Worker accommodation, review of employment
records, interviews of workers and management, and review of internal self-audit and
monitoring records.
AL-SHALAWI expects that all Contractors shall cooperate with AL-SHALAWI and make
all places of work, living quarters, documents, and records available as necessary and
expeditiously provide any information requested. Any obstruction of the audit activities of
the AL-SHALAWI designated personnel, including providing falsified records, shall be
construed as a material breach of the applicable contract.
→ GUIDANCE NOTE GN2: Worker Welfare Survey
→ GUIDANCE NOTE GN8: Key Performance Indicators

13.2 Audit and inspection of third-party contractors

On Projects where the contractors are not directly employed by AL-SHALAWI and where
we have a direct role providing construction site supervision services, we will offer our client
the ability (at a negotiated rate) to provide worker welfare assurance services to ensure that
Client requirements and local/national laws are implemented and enforced. If so employed,
we will report any identified violations directly to the Client.

→ GUIDANCE NOTE GN2: Worker Welfare Survey

→ GUIDANCE NOTE GN8: Key Performance Indicators

13.3 Contractor self-audit/monitoring

Contractors on a Project shall have an internal mechanism and procedure to regularly audit
the implementation of their own policies and practices that meet or exceed the standards set
forth in this Policy.

13.4 Targets, objectives, and reporting

Key Performance Indicators shall be reported on by Contractors as well as any Policy
violations discovered from their own internal inspection and audit program.
Contractors are encouraged to develop welfare targets and objectives and shall measure and
review performance

→ GUIDANCE NOTE GN8: Key Performance Indicators

14. Training
Training is an essential element for effective implementation of this Policy. All Project
Managers, Business Development leads, Human Resources staff, Contracts and Procurement
staff, and the Responsible Health and Safety Mangers will receive training on the key
provisions and requirements of this Policy.
The training will include:

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Term/Acronym Definition
• Awareness of the unique concerns of Foreign Migrant Workers,
• Communication of Policy requirements to affected parties,
• Overview and implementation of this Policy statement and guidance documents,
• How to work with the supply chain to assure adherence to and implementation of their
own policies and practices that meet or exceed the requirements of this Policy,
• How to implement an assurance program at a Project level,
• How to report potential violation of this Policy, and
• Understanding of minimum Project site accommodation standards and hygiene
requirements.
General awareness training of this Policy will be provided to all AL-SHALAWI employees
through the annual AL-SHALAWI ethics awareness training.

Accommodation Leased, managed, or owned worker Project dwelling facilities which may be
Facilities on- or off-site.
Agent Any Sub-Agent, person, or entity that recruits Workers for Contractors
Audit A planned and documented activity performed by qualified personnel to
determine by investigation, examination, or evaluation of objective
evidence, the adequacy and compliance with established procedures, or
applicable documents, and the effectiveness of implementation
of this Policy.
Client Organization that employs AL-SHALAWI to deliver a contractual
defined scope of work on a Project.
Contractor A Party in contracting with AL-SHALAWI on a Project; shall be deemed to
include all Sub-
Contractors, including all labour suppliers providing manpower to the
Contractor on a Project.
Country Regulations that apply to the employee in the country where the work is
Regulations performed.
Employment Voluntary and deliberate agreement between an employer and a Worker in
Agreement the country in which work is to be performed. The employment agreement
describes the terms and conditions of
employment, such as the work to be performed and the compensation for that
work.
Foreign Migrant A Worker working outside of their home country in which they are a legal
Worke resident
Guidance Note Guidance provided to the Contractor as a suggested route to compliance
Imminent Danger A workplace hazard that puts an individual at immediate serious risk of
death or serious physical harm.
Inspection Most generally, an organized examination or formal evaluation exercise. In
engineering activities inspection involves a physical site visit. The results
are usually compared to specified
requirements and standards for determining whether the item or
activity is in line with the requirements of this Policy.
International Guidelines or standards for worker welfare developed by an organization for
Standards use worldwide,
referred to in this document as a commonly accepted best practice standard.
Labour Supplier An Agent, entity, or person that supplies workers to any Contractor or Sub-
Contractor

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Law Any law, regulation, directive, decree, ministerial decision, or order issued
and amended and/or updated from time to time by governmental
authorities, in the country of work.
Main Contract A voluntary, deliberate, and legally binding agreement between the Client
and AL-SHALAWI.
Markets Business sectors by which AL-SHALAWI segments its operations
Original Offer of Original offer of employment stipulating terms and conditions of
Employment employment, issued by the employer for the recruitment of a worker
and received by a worker in their country of origin.
Placement Fees Any monies or fees paid to legalize employment of a foreign migrant
worker in the receiving country, such as work permit, residence permit,
etc.
Project A AL-SHALAWI facility or site-based construction project employing
Workers in construction, janitorial, custodial, hospitality or maintenance
activities in which the Contract requires AL-
SHALAWI to directly project manage or supervise the Project Site-specific
working conditions
Reasonably A quantitative measure of benefit against detriment. In an activity which
Practicable is not reasonably practicable, the time, effort, and/or money required to
reduce the risk further would be grossly disproportionate to the benefit
gained.
Recruitment Includes any Agent, Sub-Agent, organisation, or person in the country
Agency Home of origin that recruits workers or acts as an intermediary for the
Country purpose of recruiting a worker for an Employer.
Recruitment Includes any Agent, Sub-Agent, organisation, or person registered and
Agency Receiving licensed in the country of
Country work that recruits workers or acts as an intermediary for the purpose of
recruiting a worker for an employer.
Recruitment and Any monies payable for the recruitment of a worker.
Processing Fees
Regions Geographical locations by which AL-SHALAWI segments its operations.
RHSM Responsible Health and Safety Manager for AL-SHALAWI.
Site All parts of the physical location of a Project within a defined
perimeter/border.
Sub-Contractor Another party appointed by a Contractor to perform work on a Project;
includes any enterprise in the supply chain of the Contractor such as
Equipment Suppliers, Labour Suppliers, and other service providers
including those involved in the recruitment, selection, hiring, and day-to-
day
management of Workers.
Supply Chain Network of entities, directly or indirectly interlinked and interdependent in
serving the Client for AL-SHALAWI
Temporary Workers assigned to the Site for one period of 30 or less consecutive days
Worker over the duration of
the Works
Third-Party Contractor working on behalf of our client, who is not directly contracted by
Contractor AL-SHALAWI.
Wages Money given to a Worker in return for his service in line with the terms of
his or her employment
and applicable legal requirements, including any other entitlement such
as other allowances, overtime, end of service, etc

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Worker Welfare Refers to the protection and preservation of the dignity of Workers
throughout the entire migration cycle which includes recruitment,
mobilization, living and working, as well as in the case of migrant workers,
return to their home countries.
Welfare Standards Statement which describes a minimum standard that must be afforded to
workers by employers to ensure their health, safety, welfare, security,
employee rights, and dignity.
Workers All daily, hourly, and monthly paid workers (e.g., construction,
maintenance, field operations supervisors, managers), regardless of job
type) of AL-SHALAWI, the Contractor and Sub- Contractors on a
Project.

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