Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 1
TABLE OF CONTENTS
CHAPTER I....................................................................................................4
PRELIMINARY.............................................................................................4
Title............................................................................................... ...................4
Commencement...............................................................................................4
Extent...............................................................................................................4
Amendment.....................................................................................................4
Definition........................................................................................................4
Interpretation of Rules....................................................................................5
CHAPTER II..................................................................................................6
EMPLOYMENT.............................................................................................6
Category of Employees ...................................................................................6
Contract Employees..........................................................................................6
Staffing Pattern.................................................................................................6
Employment Eligibility....................................................................................6
Recruitment......................................................................................................7
Probation Period...............................................................................................8
Foreign Worker Recruitment ………...............................................................8
Employment Agreements ................................................................................8
Working Hours ................................................................................................9
Overtime ..........................................................................................................9
Breaks ....................................................................................... .....................10
CHAPTER III ..............................................................................................11
OCCUPATIONAL SAFETY AND COMPENSATION ..........................11
Occupational Health and Safety ....................................................................11
Workers Compensation .................................................................................12
CHAPTER IV ..............................................................................................14
CODE OF CONDUCT AND DISCIPLINE ..............................................14
Code of Conduct ............................................................................................14
Disciplinary Committee .................................................................................14
Disciplinary Action……... ………….............................................................15
Serious Misconduct………………. ...............................................................15
Grievance Procedure .....................................................................................16
CHAPTER V ................................................................................................17
REGULATION ON DISCRIMINATION, SEXUAL
HARASSMENT AND PRIVATE TRADE ...............................................17
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 2
Discrimination Regulation .............................................................................17
Sexual Harassment Procedure .......................................................................17
Private Trade ............................................................................... ..................18
CHAPTER VI ..............................................................................................19
SALARY, DEDUCTIONS, AND BENEFITS ...........................................19
Salary ............................................................................................ .................19
Deduction of TDS ..........................................................................................19
Deduction of Health Contribution .................................................................19
Annual Increment ..........................................................................................19
Provident Fund ............................................................................ ..................20
Mobile Phone Allowance ..............................................................................21
Construction Site Allowance .........................................................................21
Site Mess Allowance .....................................................................................21
Safety Dress and Shoes .................................................................................22
Use of Company Vehicle ...............................................................................22
CHAPTER VII .............................................................................................23
LEAVE AND PUBLIC HOLIDAYS .........................................................23
Casual Leave ............................................................................... ..................23
Earned Leave .................................................................................................23
Maternity Leave .............................................................................................24
Paternity Leave ..............................................................................................25
Bereavement Leave .......................................................................................25
Medical Leave ...............................................................................................25
Study Leave ...................................................................................................26
Power to Refuse or Revoke Leave ................................................................27
Public Holidays .............................................................................................27
CHAPTER VIII ...........................................................................................28
PERFORMANCE EVALUATION AND TRAINING ............................28
Performance Evaluation ................................................................................28
Training .................................................................................... .....................28
CHAPTER IX ..............................................................................................30
TRAVEL AND TRANSFER ......................................................................30
In-Country Travel ..........................................................................................30
Travel outside the Country ............................................................................30
Transfer ..........................................................................................................30
CHAPTER X ................................................................................................32
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 3
RETIREMENT, RESIGNATION AND TERMINATION .....................32
Retirement .....................................................................................................32
Resignation ....................................................................................................32
Retrenchment Notice .....................................................................................32
Termination ..........................................................................................32
Handing and Taking ......................................................................................32
Gratuity ..........................................................................................................33
Provident Fund Benefits ................................................................................33
Death of an Employee ...................................................................................33
Physical Impairment of an Employee ............................................................34
Annual Increment at Retirement ...................................................................34
CHAPTER XI ..............................................................................................35
STAFF WELFARE SCHEME ...................................................................35
Welfare Scheme .............................................................................................35
Welfare Scheme Deduction ...........................................................................35
Welfare Scheme Benefits ..............................................................................35
ANNEXURE 1: Performance Evaluation ....................................................36
ANNEXURE 2: Employment Agreement (Regular Employee) ..................37
ANNEXURE 3: Employee Agreement (Contract Employee)……………...38
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 4
CHAPTER I: PRELIMINARY
Title
1. This Service Rules and Regulations including all the annexure shall be
called the Internal Service Rules and Regulations.
Commencement
2. The Internal Service Rules and Regulation shall come into effect from the
time of endorsement by the Chief Labour Administrator.
3. The Chief Executive Officer and three representatives of the employees
shall sign the Internal Service Rules and Regulations.
4. The Internal Service Rules and Regulations shall supersede all office
orders, management decisions, and all such existing rules and
regulations.
Extent
5. The Internal Service Rules and Regulations shall be binding and
applicable to all the employees of the company unless specified
otherwise in specific sections.
Amendment
6. The Board of Directors in consultation with three representatives of the
employees shall amend the Internal Service Rules and Regulations as
and when necessary. However, the amendment of Internal Service Rules
shall be submitted to Chief Labour Administrator, MoLHR for
verification.
Definition
7. In this document unless the context requires otherwise:
“Company” means the Vajra Builders Private Limited
“Board of Directors” means the institution of the Board of
Directors
‘Board Director” means the individual director of the Board of
Directors
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 5
“Board” means the Board of Directors as an institution.
“Advisory Board” means the institution of Advisory Board (AB)
“Chief Executive Officer” means the executive head of the company
“Employee” mean an employee of the company
“Salary’’ means the gross monthly pay of an employee of the
company
“Regular” means permanent employee
“Contract” means employee recruited for a specific period
‘’Immediate family member’’ means spouse, children and parents of
both employees and spouses
“Government” means the Royal Government of Bhutan.
“Grievance” means complaint by workers or an employer
“National Minimum Wage” means wage for unskilled workers set
by government
“Accident” means unintended or unforeseen mishap at workplace
“Gratuity” means benefit scheme without employees’ contributions
“Provident Fund” means benefit scheme with employees and
employers’ contributions
Interpretation of Rules
8. Any question relating to the interpretation of these rules shall be referred
to the Chief Executive Officer. The issues not covered by these rules
shall be dealt according to the Regulations on Working Condition 2009.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 6
CHAPTER II: EMPLOYMENT
Category of Employees
9. The first category of employees shall be regular employees. They shall be
permanent employees eligible for all benefits provided by the company
and bound in entirety by the Internal Service Rules and Regulations.
10. The second category of employees shall be contract employees. They
shall be professionals, specialists and multi-skill construction workers
recruited for a specific period.
Contract Employees
11. A contract employee shall be recruited for a period ranging from one year
to three years, renewable at the end of each contract period.
12. A contract employee shall be eligible for benefits provided by the
company and bound by rules and regulations of the company unless
specified otherwise in any of the sections.
Staffing Pattern
13. The Board of Directors or the Chief Executive Officer, in consultation
with Advisory Board, shall determine the manpower requirement for the
company from time to time.
14. The Board of Directors or the Chief Executive Officer shall decide the
salary of the newly created positions in consultation with Advisory
Board of the company.
Employment Eligibility
15. An applicant for a vacant position in the company must show the
documentary evidence that:
a. He/she is a Bhutanese citizen unless foreign national
requirement specified.
b. He/she meets all formal qualification and experience
requirements specified
c. He/she meets all health and fitness requirements specified
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 7
d. He/she is eighteen years and above
16. An applicant shall not be eligible for employment if:
a. He/she has been convicted of a criminal offence
b. He/she had his/her employment terminated from other
public/private organization
c. He/she has been compulsorily retired from other public/private
organization
d. He/she has been adjudged by a competent medical authority as
mentally unsound
e. He/she has not attained the age of 18 years at the time of
employment.
Recruitment
17. The Chief Executive Officer in consultation Advisory Board shall
determine the following for every new position:
a. Employment category
b. Salary
c. A job description of the position
d. Formal documents required
e. Academic qualifications required
f. Relevant experiences required
18. The Chief Executive Officer shall decide the manner in which
recruitments shall be carried out. Vacancies may be announced through
mainstream media, social media, or through word of mouth.
19. A new employee shall be recruited directly by the Chief Executive
Officer or through a formal competitive selection process depending on
the nature of the position.
20. Recruitment through a formal competitive selection process shall follow a
standard procedure of announcing the vacancies, receiving applications,
short-listing, and selection interview.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 8
21. A panel consisting of the Chief Executive Officer, General Manager and
the respective Head of Division shall carry out the selection interview.
22. The Chief Executive Officer or General Manager or Chief HRO shall
thoroughly brief the applicant on his/her position and responsibilities,
salary and incentives, initial place of posting and possible future places
of posting before the recruitment is formalized.
Probation Period
23. An employee, whether regular or contract, shall serve a probation period
of six months. He/she shall be regularized or appointed for a full term
only upon the satisfactory completion of the probation. The probation
period can be shortened if his/her immediate supervisor recommends on
finding him/her performing extremely well.
24. The company shall discontinue the employment of an employee on
probation with a seven-day notice if his/her performance is found poor or
unsatisfactory.
25. An employee under probation period may terminate a contract of
employment with the company by giving seven-day notice.
26. The probation period shall not be considered as part of active service and
the employees on probation shall not receive benefits given to other
regular employees unless specified otherwise.
Foreign Worker Recruitment
27. The recruitment of foreign workers shall be carried out in line with the
provisions of the Foreign Workers Recruitment Agents Regulation 2009.
Employment Agreement
28. An employment agreement shall be signed between the company and an
employee at the time of recruitment. The agreement shall include all
details including the category of the employee.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 9
29. The agreement shall also include the nomination of an immediate family
member to be contacted during emergency and to receive benefits in the
event of the death of an employee.
30. The employment agreement between the company and a contract
employee shall include the duration of employment.
31. One copy of the employment agreement shall be given to an employee
and one copy retained with the company.
32. The company shall provide a written notice of thirty days to an employee
if the company decides to terminate the employment agreement for any
reason. The length of notice period shall be same for the employer and
the employees.
Working Hours
33. The standard working days shall be from Monday to Saturday and the
standard timing shall be from 9:00 am to 5:00 pm.
34. The standard working hours shall be eight hours in a day and forty-eight
hours in a week.
Overtime
35. The company shall pay an employee employed below supervisory level,
overtime of a minimum of the employee’s normal rate of pay when
employee is required to work outside of the normal working hours.
36. Overtime works shall not exceed two hours in a day and twelve hours in a
week. All overtime works shall be voluntary and shall not be forced on
an employee.
37. If an employee below supervisory level is required to perform overtime
work between the hours of 10:00 pm and 8:00 am in the following
morning besides his/her normal day shift, the employer shall pay an
additional 50% of the normal rate of pay for the number of overtime
hours worked.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 10
38. A pregnant employee shall not be required to work between the hours of
10:00 pm and 8:00am in the following:
a. 140 days before she is due to give birth and 56 days after she has
given birth to the child; or
b. at any other time if the employee produces a medical certificate
showing that such work would endanger the child or the mother.
39. Overtime shall be covered and accounted for in the annual increment of
salary.
Breaks
40. An employee shall be entitled to a rest break of ten minutes after two
hours from the beginning of each day’s work and a meal break of thirty
minutes after four hours of work. The breaks shall not be included in the
working hours.
41. The employees in a group, with the agreement of the company, may
forego the rest breaks and add to the meal break or forego altogether and
finish the day’s work earlier.
42. The duration of the breaks shall be negotiated between the company and
the employees. However, the total duration of breaks shall not be less
than thirty minutes in an eight-hour working period.
43. An employee shall have a rest period of twelve continuous hours in a
twenty-four hour period and a rest period of twenty-four continuous
hours in a one-week period.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 11
CHAPTER III: OCCUPATIONAL SAFETY AND COMPENSATION
Occupational Health and Safety
44. The company shall develop and implement an Occupational Health and
Safety Programme (OHSP) according to the General Rules and
Regulations on Occupational Health and Safety in Construction,
Manufacturing, Mining, and Other Service Industries 2006.
45. The OHSP shall identify risks and hazards at the construction sites and
outline the procedures for preventing, eliminating, and minimizing those
risks and hazards.
46. The company shall train all the employees in the OHSP and conduct
rehearsals and refresher trainings on a regular basis.
47. The employees at each construction site shall elect one employee to look
after the OHSP and to represent the employees in the health and safety
matters.
48. Any employee observing an unsafe element at workplaces shall report to
the site representatives or to the management immediately. The company
shall attend to any unsafe element without delay.
49. The Chief HRO in co-ordination with OHS Committee shall inspect the
health and safety at the construction sites on a regular basis. The
inspection report along with the reports by the site representatives shall
be submitted to the Department of Labour.
50. The company shall brief the employees on the provisions of the General
Rules and Regulations on Occupational Health and Safety in
Construction, Manufacturing, Mining, and Other Service Industries
2006 and make a copy of the rules available to them.
51. An employee shall, at all times, adhere to the health and safety standards
of the OSHP and not endanger the lives of other employees and any
other people present at the workplaces.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 12
52. An employee shall refuse to work if the working environment presents an
imminent and serious danger to his/her life or health. He/she shall
immediately notify the management.
53. The company shall not withhold the salary of an employee refusing to
work due to health and safety reasons provided he/she informs the
management and stays at the workplace.
54. The company shall provide an employee with all required personal
protective equipments free of cost and train him on the proper use of
those equipments.
55. The company shall immediately notify the Chief Labour Administrator,
MoLHR of an accident or an incident at work place.
Workers Compensation
56. The company shall insure all the employees with an authorized insurance
company and implement a compensation system in line with the
provisions of the Workers Compensation Regulation 2009.
57. The company shall pay the premiums on time and shall not deduct from
the salaries of the employees. In the event of the policy lapse due to non-
payment of premiums, the company shall pay the compensations liable
under the Workers Compensation Regulation 2009.
58. The company shall immediately notify the Department of Labour of any
serious accident that claims life or causes serious bodily injury. In the
event of death, the company shall report to the Royal Bhutan Police.
59. The company shall be responsible in processing the claims from the
insurance company and compensating the employees for injury or death
as per the Workers Compensation Regulation 2009 within fourteen days
from the date of receiving the report.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 13
60. If an employee dies through accident during the work of the company, the
company, in addition to the compensations receivable from the insurance
company, shall pay a death benefit of:
a. Employee serving up to one year :Nu.10000/-
b. Employee serving up to two years :Nu.20000/-
c. Employee serving up to three years :Nu.30000/-
d. Employee serving more than three years :Nu.100000/-
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 14
CHAPTER IV: CODE OF CONDUCT AND DISCIPLINE
Code of Conduct
61. An employee of the company shall at all times observe the following
code of conduct:
a. Exhibit a high standard of integrity, honesty and loyalty in
his/her service to the company.
b. Maintain professional excellence and uphold transparency and
accountability.
c. Not engage in any activity that directly or indirectly conflict with
the interest of the company.
d. Not receive anything that shall be construed as bribes from any
person or give anything that shall be construed as bribes to any
person in works related to the company.
e. Not engage in activities that shall be construed as proselytisation
or associate with any political party in the name of the company.
f. Not do anything that may tarnish the image and reputation of the
company during or after working hours or in the work place or
outside the work place.
g. Shall observe the rules and regulations of the company and not
misuse the facilities of the company.
Disciplinary Committee
62. The disciplinary committee shall consist of the Chief Executive Officer,
Director, General Manager, Chief HRO and one of the three
representatives of the employees signing the Internal Service Rules and
Regulations.
63. The disciplinary committee shall decide all matters related to discipline
and misconduct of the employees in the company.
64. An employee shall be given a reasonable opportunity to defend
himself/herself against any allegation before a disciplinary action is
taken.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 15
Disciplinary Action
65. Disciplinary action shall be taken against any employee for:
a. Coming late to work without any satisfactory reasons or without
permission from the supervisor/manager repeatedly.
b. Failure to come to work without any satisfactory reason or
without permission from the supervisor/manager for several
times.
c. Coming to work under the influence of alcohol or drugs.
d. Indulging in any violence during or after the working hours or
inside the workplace or outside the workplace.
66. The category of disciplinary actions shall be as follows:
a. The first category of written warning.
b. The second category of suspension from work for a period of up
to one month without salary.
c. The third category of termination.
67. The three disciplinary actions listed in section 63 shall be taken stepwise
for minor misconduct. However, in the case of a serious misconduct, the
third category disciplinary action shall be taken directly.
Serious Misconduct
68. The following behaviour or actions, but not limited to, shall be treated as
serious misconduct:
a. Providing false personal information or fake documents during
recruitment.
b. Being involved in any form of insubordination or disobedience
to any authorized senior employees.
c. Accepting or giving bribes when undertaking works for the
company or in anything related to the company.
d. Being involved in theft, vandalism, and fraud or misusing of
company’s revenue/property.
e. Being convicted for any criminal offence in a court of law both
inside and outside the country.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 16
f. Abusing and assaulting any employee of the company or any
other people related or unrelated to the company’s works.
g. Discriminating another employee or any other person related to
the company.
Grievance Procedure
69. The Internal Grievance Procedure shall be prepared in consultation with
the employees and shall be reviewed periodically. The procedure shall be
written in simple language and presented in easy format.
70. The employer shall not retaliate against the complainant. Both the
employer and the employee lodging a complaint shall take every effort in
resolving the complaint within the stipulated time and within the
company without having to notify to the Chief Labour Administrator.
71. Employee who lodges the complaint shall be subject to disciplinary
provisions of the Internal Service Rule.
72. Detailed written complaint shall be received by the designated officer
within two working days and commence an investigation within five
working days. The complaint shall be dealt with within ten working days
from the commencement of the investigation.
73. If a grievance remains unresolved following an attempt to settle it by
applying the workplace grievance procedures at a workplace, the party or
the parties who initiated the grievance shall notify the Chief Labour
Administrator that a labour dispute exists.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 17
CHAPTER V: REGULATION ON DISCRIMINATION, SEXUAL
HARASSMENT AND PRIVATE TRADE
Discrimination Regulation
74. The company shall respect and protect an individual employee’s gender,
marital status, ethnicity, region, language, nationality, caste, creed, and
religion.
75. An employee shall not discriminate another employee based on sex,
marital status, ethnicity, region, nationality, caste, creed, and religion.
76. Discrimination of any form shall be considered a serious misconduct
under this internal service rules and regulations and any employee guilty
of discrimination shall be dealt accordingly.
Sexual Harassment Procedure
77. Sexual harassment shall mean making an unwelcome sexual advance or
unwelcome request for sexual favour to other person and engaging in
any other unwelcome conduct of sexual nature in relation to the other
person.
78. The conduct of sexual nature shall include: making any oral or written
remark or statement with sexual connotation to a person or about a
person in his/her presence; and making gesture, action or comment of
sexual nature in a person's presence. However, the conduct is not sexual
harassment if it is welcome.
79. The victim shall complain in writing identifying the alleged harasser
describing the incident including places, times and dates and bring it to
the attention of the person designated in the procedure.
80. The designated officer shall acknowledge the complaint within two
working days and commence an investigation within five working days.
The outcome of the investigation shall be communicated to the victim
within ten working days from the commencement of investigation.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 18
81. The victim may lodge a complaint with the Chief Labour Administrator,
Ministry of Labour and Human Resources if he/she is not satisfied with
the outcome of the internal complaint procedure.
82. A person who contravenes above sections shall be guilty of an offence
which shall be a petty misdemeanor. The court may impose fine at the
rate of daily minimum wage rate to a maximum of 3000 days in
accordance to the severity of the offence.
83. The employer shall be legally liable if he/she has knowingly ignored or
failed to take action on a sexual harassment case. However, employer
shall not be liable to the victim if he/she had prepared and implemented
sexual harassment policy and have clear internal procedures for handling
sexual harassment complaints.
84. If a victim is dissatisfied with the outcome of the Internal Complaint
Procedure or who chooses to by-pass that procedure may lodge a sexual
harassment complaint with Chief Labour Administrator.
Private Trade
85. An employee shall not engage in any private trade that conflicts with the
interest of the company. He/she shall declare the business or trade of
his/her spouse and other immediate family member.
86. An employee shall not purchase/procure goods and services for the
company from his/her spouse or other immediate family members
without the consent of the Chief Executive Officer.
87. An employee shall not use the company’s equipment and other facilities
for his/her private business/trade. He/she shall also not use office time
for private works.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 19
CHAPTER VI: SALARY, DEDUCTIONS AND BENEFITS
Salary
88. The Chief Executive Officer in consultation with Advisory Board shall
fix the salaries of the employees at the time of recruitment. No salary
shall be below the National Minimum Wage.
89. The salary shall be payable at the end of every month.
90. An employee shall be entitled to two month’s salary advance at times of
emergency in one financial year. The site office shall have the authority
to sanction one month’s salary advance. The amount exceeding one
month’s salary shall be forwarded to the Head Office.
91. The advances availed by an employee shall be deducted from his/her
salaries within six months from the date of availing the advances. The
total amount of deduction shall not reduce wage payment less than 50%
of the total wage. He/she shall not be entitled to another salary advance
if the advances of the previous year have not been liquidated.
92. An employee on a probation period shall not be entitled to any salary
advance. He/she shall be eligible for salary advance immediately after
he/she is regularized or appointed for a full-term.
Deduction of TDS
93. The company shall deduct TDS (Tax Deducted at Source) from the
salaries of the employees as per the taxation rules and regulations and
deposit with the Regional Revenue & Customs Office.
Deduction of Health Contribution
94. The company shall deduct 1% from the salaries of the employees as the
health contribution to the government and deposit with the government.
Annual Increment
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 20
95. An employee shall receive an annual performance increment of
maximum ngultrum two thousands if his annual performance assessment
is satisfactory.
96. The annual performance increment shall be given upon completion of a
minimum of 12 months of active service for both regular and contract
employees.
97. An employee on a probation period and on a yearlong study/medical
leave shall not be entitled to an annual performance increment.
Provident Fund
98. 10% of the basic salary for the employees with university degree and 5%
of the salary for other employees shall be deducted as provident fund.
The company shall make equal amount of contributions to the
employees’ provident fund.
99. An employee on probation shall not be eligible for provident fund
scheme. He/she shall be eligible for the provident fund scheme
immediately after he/she is regularized or appointed for a full-term.
100. The company shall maintain a separate provident fund account with an
authorized financial institution, which shall maintain an individual
provident fund account for each employee.
101. An employee contributing to the provident fund for a minimum of five
years shall be entitled to the full amount of the provident fund including
interests earned on severance of employment other than for termination
for serious misconduct.
102. An employee contributing to the provident fund for less than five years
shall be entitled to the portion of his/her contributions and the interest
earned from the contribution on severance of employment.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 21
103. An employee terminated for serious misconduct shall be entitled to the
portion of the provident fund contributed by him/her and the interests
earned from there
104. The portion of the provident fund contributed by the company and the
interest earned shall be given back to the company on severance of
employment of the employees contributing to the provident fund for less
than five years and of the employees terminated for serious misconduct.
105. In the event of the death of an employee his/her immediate family
nominated in the employment agreement shall receive the provident fund
due to him/her.
Mobile Phone Allowance
106. The mobile phone voucher allowances shall be given to the following
employees as follows:
a. Base In-charge :Nu.1000 per month
b. Supervisors :Nu.500 per month
c. Drivers/Operators :Nu.200 per month
d. Other staff :Nu.100 per month
107. The employees eligible for the mobile phone allowance listed in the
section 101 shall include even those employees on probation.
108. The Chief Executive Officer shall revise the mobile phone voucher
allowances from time to time depending on the need and in
consultation with Advisory Board.
Road Construction Site Allowance
109. An employee working at a road construction site shall be entitled to a
site allowance of ngultrum two thousands per month.
110. The employees working in the road construction sites eligible for site
allowances shall include even those employees on probation.
Site Mess Allowance
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 22
111. All construction sites shall have common mess for all staff, provided
free of cost by the Company.
Safety Dress and Shoes
112. All employees shall be provided with a pair of safety shoes, a set of
uniform, safety helmet, reflector jacket and T-shirt in a year.
113. The eligibility for safety dress and shoes shall include even those
employees on probation periods.
114. The technicians, masons, and others carrying out vocational works shall
be provided with a pair of gumboots in addition to safety shoes and
uniform.
Use of Company Vehicle
115. An employee shall be allowed to use company vehicles with the
approval of the Chief Executive Officer or any other authorized officials
for personal works at times of emergency. However, he/she shall bear
the cost of the fuel.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 23
CHAPTER VII: LEAVE AND PUBLIC HOLIDAYS
Casual Leave
116. A casual leave of ten days shall be granted to an employee in one
calendar year. Sundays and public holidays falling in between the casual
leave days shall not be counted as part of the leave days.
117. A casual leave shall not exceed five days at one time and it shall not be
added to any other leave to extend the duration of leave availed by an
employee.
118. The unused casual leave shall not be encashed but added to the
following year’s casual leave. The maximum casual leave that can be
accumulated by an employee is three years and extra days shall lapse.
119. An employee undergoing a long term training/study or on a probation
period shall not be entitled to any casual leave.
Earned Leave
120. An earned leave of 2.5 days per month or 30 days per year shall be
granted to an employee. However, an employee on a probation period
shall not be eligible for any earned leave.
121. Sundays and public holidays falling in between the earned leave days
shall not be counted as part of the leave days.
122. An earned leave shall be availed for a part of the working day.
123. The unused earned leave, in part or full, shall be added to the following
year’s earned leave. The maximum earned leave that can be accumulated
by an employee is three years and extra days shall lapse.
124. The earned leave shall not be granted for a period spanning for more
than thirty days with weekends and other public holidays in between at
one time. The next earned leave shall be granted only after thirty days.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 24
125. In case of disagreement between the management and an employee
regarding the dates for taking earned leave, the management shall have
the right to decide on the dates but with a written notice of fourteen days
in advance.
126. The salary for the days taken as earned leave shall be paid in advance if
an employee going on leave applies for advance payment. However, the
advance payment shall not be considered a part of the annual salary
advance entitled to him/her.
127. An earned leave, accumulated to a minimum of thirty days, shall be
encashable at the rate of the employee’s basic salary before taxes are
deducted.
128. An employee resigning from the company shall be entitled to encash
his/her entire earned leave.
Maternity Leave
129. A maternity leave of three months shall be granted to a female employee
giving birth to a child. She shall have the right to decide the commencing
date with proper notification in advance.
130. In the case of miscarriage, the maternity leave shall be granted for a
period of four weeks or the number of days advised for rest by the
doctor.
131. The maternity leave shall include Sundays and public holidays falling in
between the leave days.
132. An employee on a maternity leave shall be granted an earned leave in
continuation to the maternity leave if she applies. She shall also be
entitled to take an unpaid leave in continuation to her maternity leave but
with the agreement of the management.
133. An employee returning from a maternity leave shall be given the same
position or a similar position with no change in the salary.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 25
134. A maximum of three periods of maternity leave shall be granted to a
female employee during her service with the company.
Paternity Leave
135. A paternity leave of ten days including Sundays and public holidays
shall be granted to a male employee on the delivery of his child starting
from the day of delivery.
136. An employee on a paternity leave shall be granted an earned leave in
continuation to the paternity leave if he applies. He shall also be granted
an unpaid leave with the agreement of the management.
137. A maximum of three periods of paternity leave shall be granted to a
male employee during their service with the company.
Bereavement Leave
138. A bereavement leave of 21 days shall be granted to an employee at the
time of the death of an immediate family member.
139. The bereavement leave shall include Sundays and public holidays
falling in between the leave days.
140. The employees may avail an earned leave of not more than thirty days in
continuation to the bereavement leave if he/she so desires.
Medical Leave
141. A medical leave of five days shall be granted to the employees in a year.
The medical leave shall not include Sundays and public holidays falling
in between the leave days.
142. An employee on a probation period shall not be eligible for any medical
leave. He/she shall be eligible for a medical leave immediately after
he/she is regularized or appointed for a full-term.
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Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 26
143. An employee shall submit medical prescriptions or certificates signed by
a competent medical authority on the request of the company. Failure to
produce such evidence shall result in the revocation of leave.
144. A medical leave shall be availed for a part of the working day.
145. The unused medical leave shall not be encashed but added to the
following year’s medical leave successively for five years. Any unused
medical leave, thereafter, shall lapse.
146. An employee may avail any number of earned leave due to him/her in
continuation to the medical leave. The Chief Executive Officer shall
decide case-by-case on any other issues related to medical leave.
Study Leave
147. A study leave of up to two years shall be granted to an employee having
served in the company for five years or more to pursue higher
study/training in a relevant field and in a recognized institute/university.
148. An employee seeking to pursue long-term training/study shall seek the
approval of the Chief Executive Officer before applying for
admission/scholarship.
149. An employee availing study leave for more than one month shall not
receive salary and any other benefit.
150. An employee shall not avail any other leave in continuation to the study
leave. The Chief Executive Officer shall decide on any extension of the
study leave if so required provided the leave availed has not exceeded
twenty-four months.
151. The position of an employee going on a study leave beyond six months
shall not be protected. Upon returning the Chief Executive Officer shall
decide a new position and a new place of posting in consultation with
Advisory Board.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 27
Power to Refuse or Revoke Leave
152. The Chief Executive Officer shall have the discretionary power to refuse
any leave or revoke any leave already granted during any kind of
emergencies in the company. However, no person shall make use of,
cause or permit any form of forced or compulsory labour that is
extracted from any person under the menace of any penalty and for
which the person has not offered himself or herself voluntarily.
Public Holidays
153. An employee shall be entitled to the following 14 public holidays each
year, which is a leave with pay:
a. Traditional Day of Offering (one day)
b. Birth Anniversary of HM the King (21st February)
c. Losar (two days)
d. Zhabdrung Kuchoe (one day)
e. Lord Buddha's Parinirvana (one day)
f. First Sermon of Lord Buddha (one day)
g. Blessed Rainy Day (one day)
h. Thimphu Dromchoe (one day for Thimphu)/ Local Tshechu (one
day for respective locality)
i. Thimphu Tshechu (two days for Thimphu only)
j. Dasain (one day)
k. Dewali (one day)
l. Descending Day of Lord Buddha (one day)
m. National Day (17th December)
n. Birth Anniversary of Guru Rinpoche /Company Foundation
Day/Company Rimdro (one day)
154. An employer shall agree with his or her employees to substitute a public
holiday under section 148 above with another public holiday.
155. If an employee below supervisory level is required to perform overtime
work on public holidays, the employer shall pay an additional 50% of the
normal rate of pay for the number of overtime hours worked.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 28
CHAPTER VIII: PERFORMANCE EVALUATION AND TRAINING
Performance Evaluation
156. The performance evaluation shall be carried out for all the employees
including those retiring at the end of a calendar year. For those on
probation, the evaluation shall be carried out at the end of the probation
period.
157. The performance evaluation shall decide if an employee should be given
his/her yearly increment, if an employee on probation should be
regularized or appointed on a full-term, and if an employee should be
granted training/study leave.
158. An employee shall fill a standard Performance Evaluation Form
provided by the company and his/her immediate supervisor shall
evaluate the form on the basis of his/her job responsibilities, work plan,
and general behaviour.
159. The evaluation shall take into account an employee’s extraordinary
achievements, initiatives taken, and recognition received from both
inside and outside the country and his/her misconduct and behavioral
lapses both inside and outside the company.
160. An employee shall receive a plus point in the annual performance
evaluation if he/she does not avail any leave.
Training
161. The Chief Executive Officer shall, in consultation with Advisory Board,
prepare a human resource development plan or a list of trainings and
higher studies required to develop the professional capacity of the
company.
162. The human resource development plan shall be submitted to the
agencies dealing with private sector development such as the Bhutan
Chamber of Commerce and Industry and the Ministry of Labour and
Human Resources.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 29
163. The company shall encourage the employees to explore for training
opportunities in their relevant fields with both the government and non-
government agencies.
164. The supervisors and senior employees shall carry out short in-house
trainings or on-the-job trainings for the new and junior employees from
time to time to upgrade their knowledge and skills.
165. The Chief Executive Officer, on the advice of Advisory Board shall
nominate candidates for training/study offers received from outside the
company and granting approvals for training/study leaves.
166. An employee on probation and an employee whose performance
evaluation is marked unsatisfactory shall be eligible only for in-house
trainings or on-the-job trainings.
167. An employee availing a formal training of three months and above shall
sign a standard training bond with the company countersigned by a
guarantor that the company approves.
168. An employee on returning from a training/study shall submit copies of
the certificates and comprehensive training/study reports to the company
within fifteen days from the date of completion.
169. On successful completion of the training program, the employee shall
serve employer for the following specified duration:
a. at least one year after a short-term program and other long
term program besides masters or PhD;
b. at least three years after a masters or PhD program.
170. An employee not rejoining the company after completion of his/her
training/study shall reimburse double the expenses incurred for the
training/study whether those expenses have been borne by the company.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 30
CHAPTER IX: TRAVEL AND TRANSFER
In-Country Travel
171. An employee shall travel for official work only after obtaining approval
from the Chief Executive Officer or other authorized officials.
172. An employee with university degree shall be entitled to refund of actual
meals and accommodation expenses on submission of proper bills or
DSA entitlement as per the position in the company and to mileage at the
government rate if personal cars are used.
173. The supervisors, operators, drivers, and technicians shall be paid a daily
subsistence allowance of ngultrum five hundred per night halt and refund
of actual travel expenses if company’s vehicle is not provided.
174. The daily subsistence allowance shall be paid in full only for ten days
for travels outside the place of posting. The Chief Executive Officer
shall decide the daily subsistence allowance for travels exceeding ten
days.
175. The daily subsistence allowance shall be paid in advance before the
travel. The accounts with retrospective travel expense claims if any shall
be settled with company within one week from the date of return.
176. An employee traveling to places without motor roads shall be entitled to
porter and pony if he/she has to take equipment or clothes and ration for
a longer duration.
Travel outside the Country
177. The Chief Executive Officer shall decide the daily subsistence
allowance for an employee traveling outside the country on official work
before the travel.
Transfer
178. An employee transferred from one place to another place shall be given
a preparatory time of one week.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 31
179. The company shall post both the husband and wife, if they are working
for the company, in the same place if possible.
180. The company shall bear all the expenses related to travel including that
of the family members of the employees.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 32
CHAPTER X: RETIREMENT, RESIGNATION AND TERMINATION
Retirement
181. An employee shall retire at the age of sixty. The retirement date shall be
last day of the month in which the employee reaches the age of sixty.
Resignation
182. An employee may voluntarily resign from the company with one
months’ of notice if he/she has fulfilled all conditions laid down in the
employment agreement and has no obligations to the company.
183. An employee standing as candidate for election to the local government
or the parliament shall resign from the company. He/she shall be entitled
to reemployment in the company if he /she wishes to join back and also
if company wishes to take back.
Retrenchment Notice
184. The company shall consult with workers' association or, if there is no
such association, the employees at the work place, advising of the
number of employees liked to be made redundant and the period over
which this may occur.
185. The company shall give one month and additional notice of seven days
for every year of continuous employment by the employee for that
employer up to a maximum of 42 days.
186. The company shall notify the Chief Labour Administrator of the
proposal, including the number and categories of employees involved
and the reasons for their termination.
Termination
187. An employee shall be compulsorily retired or terminated from service
as prescribed in sections 62, 63, 64 and 65 of the Internal Service Rules
and Regulations.
Handing Taking
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 33
188. An employee leaving the company shall hand over the work
status/details, equipment, and any other thing issued to him/her by the
company to an authorized employee.
189. The company shall deduct the equivalent amount for any item missing
from the employee’s benefits.
Gratuity
190. An employee serving for a minimum of ten years shall be entitled to a
gratuity on the severance of his/her employment. His/her gratuity shall
be calculated multiplying his/her last month’s salary by the number of
years served.
191. An employee’s probation period shall be included in his/her service
duration for the calculation of his/her gratuity. However, counting from
the first day to the last day in the company, only full years shall be
considered and fraction of a year shall be ignored.
192. The gratuity shall be paid within fifteen working days from the date of
leaving the company.
193. An employee serving for less than ten full years from the date of joining
the company and the employees terminated for a serious misconduct
shall not be eligible for gratuity.
194. In the event of the death of an employee the gratuity shall be paid to
his/her immediate family member nominated in the employment
agreement.
Provident Fund Benefits
195. An employee leaving the company for any reason shall receive
provident fund benefits as prescribed in sections 93, 94, 95, 96, 97, 98,
99 and 100 of the Internal Service Rules and Regulations.
Death of an Employee
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 34
196. In the event of the death of an employee, the immediate family member
nominated in the employment agreement shall receive all the benefits
permissible under the Internal Service Rules and Regulations.
Physical Impairment of an Employee
197. An employee who is rendered handicapped or partially handicapped in
the event of accident during official duty shall be compensated as per the
Workers' Compensation Regulation if he/she chooses to resign from the
Company. He/she, however, shall be encouraged and given opportunity
to serve the company in the capacity of the job he/she is able to perform.
Annual Increment at Retirement
198. The company shall grant an annual increment if his/her annual
increment is due at the date of retirement or the following day and if
his/her performance is satisfactory.
199. The new salary amount derived with the inclusion of the last annual
increment shall be used for the calculations of all the retirement benefits
of the employee.
Internal Service Rules and Regulations 2017
Vajra Builder Private Limited, Post Box No. 1237, Hebi Lam, Changzamtok, Thimphu 35
CHAPTER XI: STAFF WELFARE SCHEME
Welfare Scheme
200. The company shall operate a welfare scheme with a separate bank
account for the benefit of all the employees including those on probation.
Welfare Deduction
201. A sum of ngultrum two hundred shall be deducted from the salary of an
employee and deposited in the Staff Welfare Scheme account every
month.
Welfare Scheme Benefits
202. The death benefits for the death of an employee and the death of his/her
family members from the Staff Welfare Scheme Fund are as follows:
a. Death of employee :Nu.25000/-
b. Death of spouse :Nu.20000/-
c. Death of employee’s parent :Nu.10000/-
d. Death of spouse’s parent :Nu.10000/-
e. Death of children :Nu.15000/-
203. An employee leaving the company for any reason shall be eligible for
total refund of his/her contribution provided he/she has not made any
claim before.