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SLLN Employee Handbook

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1

Your Journey With Shangri-La Begins Here

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ABOUT SHANGRI-LA

We believe, with the right attitude, anything is possible Our name, Shangri- La, was inspired by James Hilton’s legendary novel “Lost Horizon”. Hilton’s book was about a tranquil haven in the mountains of the Himalayas, called Shangri-La, which cast a spell on all who resided there. As a hotel group, Shangri-La began in 1971 with our first deluxe hotel in Singapore. Today, the group comprises over 101 deluxe hotels and resorts in key cities in Europe, Asia Pacific, Canada and the Middle East. Based in Hong Kong, we are expanding globally with hotels under development throughout Asia, Europe, and North America.

Our portfolio includes a range of different brands for guests to enjoy:

Shangri-La City Hotels

Shangri-La Resorts

Traders Hotels

Kerry Hotels

CHI, The Spa at Shangri-La

We also offer our luxury hospitality at two of Asia’s most prestigious recreational clubs:

• Aberdeen Marina Club, Hong Kong

• Xili Golf and Country Club, Shenzhen

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Our Philosophy

“Shangri - La Hospitality from a Caring Family”

You will hear us talk about this quite a bit and the truth is that there is a family behind the brand and we encourage a family environment, underpinned by our Core Values. Our Vision

“To be the first choice for our guests, colleagues, shareholders and business partners”

This is where we are going, our destination if you like. When we think about our ultimate goal, this is what we have in mind. Our Mission

“To delight our guests every time by creating engaging experiences straight from our hearts”

…and this is how we go abo ut achieving Our Vision one guest at a time.

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Our Core Service Values They are at the heart of everything we do, from our relationships with colleagues to our recruitment to the way we carry out our business relations with guests and suppliers.

Respect

Due regard for the feelings, wishes, or rights of others

Humility

The quality of having a modest or low view of one’s importance

Courtesy

The showing of politeness in one’s attitude and behaviour towards others

Helpfulness

Giving or ready to give help

Sincerity

The absence of pretense, deceit, or hypocrisy

Selflessness

Concerned more with the needs and wishes of others than with one’s own

Our Leadership Competencies

Drives Business Results

Can be counted on to consistently deliver business results with a bottom line and customer centric approach.

Builds Collaborative Partnerships

Facilitates business success by building and maintaining supportive and trusting relationships within and outside Shangri-La.

Drives Innovation Fosters an environment that supports experimentation, rewards risk taking, accepts failure, reinforces curiosity and challenges the status quo.

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Leads Teams Develops and leads high performing teams to achieve business goals, role modelling the Shangri-La values. Develops People Understands and is committed to people development. Supports growth opportunities, provides coaching and constructive feedback. Develops Self Exhibits a continuous and proactive desire to learn; acquires knowledge and skill-sets to meet exciting and future business

Our Guiding Principles

• We will ensure leadership drives for results.

• We will make guest loyalty a key driver of our business.

• We will enable decision-making at the guest contact point.

• We will be committed to the financial success of our own unit and of our company.

• We will create an environment where our colleagues may achieve their personal and career goals.

• We will demonstrate honesty, care and integrity in all our relationships.

• We will ensure our policies and processes are guest and colleague friendly.

• We will remain deeply committed to our social responsibility by making a positive contribution to our communities, environment, colleagues, guests and business partners.

Before we start… We will be referring to “Your Manager” often throughout this handbook. When we say “Your Manager” we mean your immediate Manager (the person in charge of your department). At Shangri-La, this person will normally be a Senior Service Manager or a Service Manager.

If in doubt, please ask or refer to your departmental Delegation of Authority document.

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Where we refer to the Company, this means Shangri-La Hotel, At the Shard, London (or SLLN).

Service Levels Throughout your career with Shangri-La you may often hear about “Levels” or “Service Levels”. These are the same across all our hotels and they help us ensure consistency across our portfolio. There are also “Corporate Levels” which align with the Hotel levels. Your contractual letter of appointment will show your level appropriate to your position. Please find both Corporate and Hotel levels as below:

Hotel Levels

Corporate Levels

Level 1 or Service Executives

M3

Level 2 or Senior Service Managers

M2

Level 3 or Service Managers

M1

Level 4 or Service Leaders

E1, E2, E3

Level 5 or Service Associates

N1, N2

Now on with the handbook… This handbook provides information with regards to many of our benefits and employment policies and procedures and needs to be read in conjunction with your individual letter of appointment and employment contract. Those involved in managing others, whether our own employees or contractors, should find that this handbook also provides clear guidance concerning the procedures to be used. It is particularly important that managers apply the policies and procedures contained herein, such as the disciplinary, grievance and equal opportunities consistently and fairly both to treat employees with the respect they deserve and to ensure that our hotel complies with legislation.

We are committed to conducting our business with honesty and integrity and

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to protecting your health, safety and welfare and that of all those who work for us by providing a safe place of work. We expect all our colleagues to maintain high standards. Each section of the handbook complies with the latest relevant legislation and is correct at the time of publication. However, for business and legal reasons, change is inevitable from time to time and you should note any amendments issued by us in the future. This will be communicated to you and updated copies of the handbook made available through company computers and or through email.

It should be noted that any breach of our rules, policies and procedures may lead to disciplinary action being taken against you.

If you have any queries about anything in the handbook, you should raise them with your manager or the human resources team.

There is an index at the end of the handbook, in pages 172 and 173. Get there fast by pressing Ctrl+End keys.

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Part One

Your Employment ABOUT YOUR EMPLOYMENT

Further details of the terms of your employment are set out below. In the event of a conflict between this policy and your contract of employment, the terms of your contract of employment shall prevail. Should you have any queries, please contact the Human Resources Department.

ALTERATIONS TO TERMS AND CONDITIONS OF EMPLOYMENT

The Company reserves the right to alter terms and conditions of employment, following appropriate consultation with employees.

Consultation may be done on an individual basis, or collectively through staff representatives, according to the nature and scale of the change being proposed. Any decision to change terms and conditions of employment will take account of the benefits accruing from the change and the impact that the change will have on the employees affected. If you are affected by any change to your terms and conditions of employment, you will receive written confirmation of the change and a reasonable period of notice. This employee handbook is also subject to periodic revision. Such changes may be driven by new developments in the business climate and evolving legislative requirements. Adjustments to any contractual aspects of the handbook will be handled in accordance with the procedure outlined above. Any amendment to the provisions contained in non-contractual policies or provisions will be notified to you in writing with a statement that the amendment supersedes the relevant provision in this handbook.

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CONTINUOUS SERVICE DATE

If you transfer jobs from one property to another within Shangri-La, your continuous service date is stated in your contract of employment as the first day on which you joined the Group.

JOB RESPONSIBILITIES

Your job duties and responsibilities are set out in your Job Description and in any verbal or written instructions that may be given to you by your manager or HR colleague. Your Job Description and any written or verbal instructions are intended as a guide to your main areas of responsibility, rather than as a full description of them. Because of the changing nature of the business, your duties and responsibilities may change in the future. We reserve the right at any time during your employment to require you to undertake any additional or reasonable alternative duties within your capability. This includes transferring you to another job function, to another department or to another hotel within Shangri-La. Of course if we require you to transfer to another job, department or hotel, we will give you a reasonable period of notice. In the event of a colleague consistently not meeting the required standards of work performance, a Performance Management programme will be implemented by your Manager. If there is no significant improvement in performance as a result of this programme, disciplinary action may be taken.

ATTENDANCE AT WORK: CONTRACTUAL HOURS

The number of hours that you have been contracted to work is contained in your written particulars of employment.

Your Manager may ask you to work additional hours, above those you have been contracted to work. When this happens, you may be given time off in lieu or may be paid for these hours at your standard hourly rate. Your Manager will advise you whether time off in lieu or payment will be given. Overtime hours must be authorised in advance and are at the Company’s absolute discretion.

There is no entitlement to overtime. If you choose to work on at the end of

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your shift without the prior approval of your Manager, this will not be considered overtime and you will not be entitled to payment, or time off in lieu, for these hours. Employees in service manager and senior service manager positions are expected to manage their own time and will not be paid for any overtime hours worked.

Any lieu time accrued does not have any financial value and will not be paid when leaving the company or transferring to another position or hotel.

WORKING TIME

Working time is defined as approved hours worked when a colleague is actually carrying out their duties and activities at the Company’s premises (which includes our satellite office) but excludes meal breaks or travelling to and from the Company’s premises from home. Travel between the hotel and the satellite office is working time.

RECORDING WORKING HOURS

Your Manager will tell you how to record the times and hours that you work and you must follow the procedures laid down for this purpose. This will normally be through the ADP hand-reader located in the hotel entrance or your department which you are advised to use upon starting and finishing work. You must not allow anyone else to record your working hours for you, and you must not record working hours for anyone else. It is a very serious disciplinary offence to falsify your own timekeeping records or those of anyone else (please refer to the section on Gross Misconduct under the Disciplinary Policy later in this handbook). As your attendance record is largely based on the sign-in and sign-out recorded on the hand-readers, you are strongly advised not to come to the hotel when you are not due to work, or loiter either before the start or the end of your shift.

ROTAS

Because our business operates 24 hours a day, every day of the year, there are no set working patterns in many departments. The hours you will be

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required to work will be displayed on a rota within your department.

It is your responsibility to make sure that you know when you are scheduled to work and you are not allowed to change shifts with a colleague without your Manager’s approval in advance.

REPORTING FOR WORK

Our guests expect and deserve the highest quality of service from us. Therefore, it is vital that you start work on time and that you are not absent without good reason. You are expected to report for duty, ready and in uniform (if applicable), at the time indicated on your rota. This means therefore, that if you need to visit your locker or get changed, you will need to arrive sufficiently early to ensure that you are ready to start work on time in your department.

BREAKS

Although breaks in addition to the daily meal breaks are not required by law, some departments may be able to offer their employees short breaks on occasion. These breaks are at the discretion of your Manager and will vary depending on business needs. Please avoid using the lift wherever possible to keep it available for room service, housekeeping or other operational departments; and if taking a short break please consider using your department back of house area instead of the staff restaurant.

ATTENDANCE

Being absent or late impacts your colleagues as well as our guests. Since our work depends upon teamwork, when you are not at work, everyone else must adjust to assume your work load. It is your responsibility to report for your scheduled shifts of work on time and appropriately attired. If you are going to be late or are unable to report to work, contact your Manager immediately. If they are unavailable you must make contact with the Duty Manager or the Human Resources department straight away.

WORKING TIME REGULATIONS

These regulations lay down certain rights that workers have in relation to their

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working time, the principal one being the right to limit their working hours to no more than 48 hours per week, averaged over a 17 week reference period. The regulations also provide for minimum periods of daily and weekly rest, breaks at work and further stipulations in respect of night workers and young workers. However, individual colleagues and workers can opt out of the 48 hour weekly limit on working time, and a number of the other regulations can be varied if these variations are agreed. Your manager or the Human Resources department may ask if you want to opt out of the 48 hour weekly limit by signing an agreement to this effect. In some instances this will be included as a clause in your contract of employment. You are not obliged to opt out and if you do so, and subsequently change your mind, you can retract your agreement by giving written notice as laid down in the agreement document.

SECOND JOBS/MOONLIGHTING

We understand that on occasion you may decide to obtain additional employment while employed by the Company. This is explicitly prohibited for some positions and you are encouraged to look at your terms and conditions of employment for more details. In those cases where your particulars of employment permit it, we ask that you think seriously about the effects that such extra work may have on the limits of your endurance, overall health, and effectiveness on the job. We will hold all employees to the same standards of performance and attendance, and cannot make exceptions for those who also hold jobs outside the Company. The Working Time Regulations place an obligation on us to safeguard your health and safety by monitoring your working hours if they are likely to exceed the 48 hour weekly limit. This limit applies to your total working hours, not just to the hours you work for us. For this reason, you must tell your Human Resources department if you have another job and your total working hours (i.e. the hours you work for us plus the hours worked in your other job) averaged out at more than 48 hours per week. In this case, you will be asked to sign an opt-out agreement so that you can work more than 48 hours per week. The Working Time Regulations allow you to do this, so long as there is no obvious risk to your health and safety involved in doing so.

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TIMEKEEPING AND UNAUTHORISED ABSENCE

We reserve the right not to pay your wages for each day of unauthorised absence from work.

Your Manager will decide the circumstances in which this is appropriate and ‘unauthorised absence’ means failure to report to work, except for: -

– Cases of genuine sickness or injury notified in accordance with the reporting of sickness/absence procedure outlined in this Handbook.

– Leave for which your Manager has already granted permission.

– A genuine reason beyond your control which is acceptable to, and agreed by us.

Unauthorised absence may lead to disciplinary proceedings, up to and including dismissal.

YOUR PAY

CONTRACTUAL PAY FOR EMPLOYEES ON PERMANENT CONTRACTS

The pay rate outlined in your written particulars of employment is paid in respect of your contractual working hours.

The pay period for employees on permanent contracts runs from 1 st until the last day of the month.

Your pay will accrue from day to day and be payable monthly in arrears on or around the 30 th of each month directly in to your bank or building society account.

CONTRACTUAL PAY FOR EMPLOYEES ON CASUAL CONTRACTS

The hourly pay rate outlined in your written particulars of employment is paid in respect of hours worked before payroll cutoff (usually 14 th of the month).

The pay period for employees on casual contracts runs from 15 th of the previous month until the 14 th of the current month.

Your pay will be payable on or around the 30 th of each month directly in to your bank or building society account.

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PAY REVIEWS

The Company reviews wages and salaries each year, usually on or around Chinese New Year. There is, however, no obligation on the Company to increase your pay rate

YOUR HOLIDAY ARRANGEMENTS

HOLIDAY YEAR

The Company’s holiday year runs from 1st April to 31st March.

HOLIDAY ENTITLEMENT FOR EMPLOYEES ON PERMANENT CONTRACTS

You are normally entitled to take 5.6 weeks’ (28 days) of paid holiday, which is inclusive of bank and public holidays, if you work a 5 day week. Time off for bank holidays can, therefore, be counted against your holiday entitlement and the Company can specify that colleagues take holiday at certain times, such as bank holidays. Holiday entitlement is accrued monthly. Therefore, during the holiday year in which you start or leave your employment, your entitlement to paid holiday will be calculated on a pro-rata basis.

Holiday entitlement for part time colleagues, or those working other than 5 days per week, is calculated pro rata to the above entitlements.

As our hotel operates 365 days a year, please note that there is no specific right to specific days off (including bank or public holidays).

HOLIDAY ENTITLEMENT FOR EMPLOYEES ON CASUAL CONTRACTS

Your holiday entitlement will depend on the number of hours that you actually work and be pro-rated on the basis of a full-time entitlement.

As our hotel operates 365 days a year, please note that there is no specific right to specific days off (including bank or public holidays).

REQUESTING HOLIDAY

You should complete your holiday request via the ADP ihcm system. If he/she

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approves your request, they will formally approve your request. If they are unable to approve the request, you will be advised accordingly.

We strongly recommend you do not make any holiday arrangements (booking travel plans etc.) until you have received signed approval fromyour Manager as such costs will not be reimbursed if approval is not granted. The Company will not be liable for any costs you incur in making arrangements prior to obtaining authorisation to take a holiday. Whilst we will make every effort to agree your holiday dates with you, we reserve the right to give you 4 weeks’ notice (or at least twice the length of the period of leave which you are required to take, whichever is the greater) to require you to take all or part of your holiday on specified dates.

UNUSED HOLIDAY ENTITLEMENT

You cannot carry forward any unused holiday entitlement from one year to the next year without written approval from the General Manager.

In the absence of this approval (which will only be granted in exceptional circumstances) you forfeit your unused entitlement.

PAYMENT IN LIEU OF OUTSTANDING HOLIDAYS

When you leave Shangri-La, you will be paid in lieu of any accrued holidays that you have not taken. If when you leave you have taken more holidays than you have accrued, the excess days will be deducted from your final pay instalment or any other payments due to you. If you are summarily dismissed you shall only be entitled to payment in lieu of the amount of statutory holiday accrued but not taken as at the Termination Date.

UNPAID LEAVE

In a limited number of circumstances, you may be allowed to take a period of unpaid leave (for example, if you have booked holiday prior to joining us and have not accrued sufficient paid entitlement at the date your holiday starts). All requests for unpaid leave should be made to your Human Resources Director, who will then discuss it with your Manager. The decision to grant or not grant unpaid leave is at the Company’s absolute discretion.

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PUBLIC HOLIDAYS

Shangri-La Hotels recognises the following UK public holidays: New Year’s Day (1st January) Good Friday (March or April) Easter Monday (March or April) May Day Holiday (early May) Spring Holiday (late May)

Late Summer Holiday (August) Christmas Day (25th December) Boxing Day (26th December)

Or such other holidays as may be fixed by the national Government.

Because we operate 7 days per week, 365 days per year, the Company may require you to work on a public holiday.

TERMINATION OF EMPLOYMENT

PROBATIONARY PERIODS

The probationary period allows us to see if we are “right for each other”. During this time, you will be able to find out if this is the right job and right place for you. Similarly, the Company has the opportunity to make an initial assessment of whether you have the right skills and talents for your position. All employees are engaged subject to successfully completing a probationary period, which normally lasts for 3 months. If you have been employed on a different probationary period, this will be stated in your offer of employment letter and/or written particulars of employment. During the first month of the probationary period either party, (you or the Company), can terminate employment without notice (unless expressly stated otherwise). During the remainder of the probationary period, either party can terminate employment by giving 1 week notice in writing. The Company reserves the right to extend a probationary period and will advise the employee in writing of any decision to do so. During an extended probationary period, the 1 week notice requirement will continue to apply.

NOTICE BY THE EMPLOYEE

If you wish to terminate your employment after your probationary period has

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expired you are required to give 4 weeks’ written notice to the Company, unless your offer of employment letter and written particulars of employment specify a different period of notice.

NOTICE BY THE COMPANY

If the Company wishes to terminate your employment after your probationary period has expired you will be entitled to receive 4 weeks’ noti ce during the first 4 years of service. After 5 years’ continuous service you will be entitled to receive 5 weeks’ notice and, thereafter, your notice entitlement rises by 1 week for each subsequent year of continuous service to a maximum of 12 weeks’ notice after completion of 12 years’ service. This entitlement applies unless your offer of employment letter and/or written particulars of employment specify a different period of notice. SUMMARY DISMISSAL If an employee is found to have committed an act of gross misconduct, the Company may terminate employment without notice or payment in lieu of notice (please refer to the section on Disciplinary Procedures for examples of Gross Misconduct). In the case of summary dismissal, the Company reserves the right to withhold payment in lieu of outstanding holidays accrued in excess of the statutory entitlement.

RETIREMENT

The default retirement age, which allowed your employer to make you retire when you reached the age of 65 was abolished in the UK in 2010.

You should be able to retire when the time is right for you. The Company will only make you retire if this can be objectively justified in the particular circumstances. It is your responsibility to talk to your Manager or the Human Resources Department about your retirement options. If you wish to continue working beyond the government normal pension age of 65 it may be possible to change your working pattern and hours. Contact Human Resources if you wish to discuss this.

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PAY ARRANGEMENTS ON LEAVING

When an employee leaves the Company, it is our usual practice to make final wage and salary payments on the next routine pay date following the termination date. To receive your final payment, you must return all items of Company property in your possession (for example, uniform, identity card, entry card/key, office keys, laptop, mobile phone, name tag or Shangri-La pin etc.) in a satisfactory condition. The Company reserves the right to make deductions from your final payment should any of the above items not be returned to the Company.

CONFIDENTIAL INFORMATION

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