Deputation Allowance Policy

DEPUTATION ALLOWANCE POLICY

Module no MAT HR/ Total Pages 6
Issue Date Initiated by HR
Revision No. & Date Approved by MAT India Management
Subject Deputation Allowance Policy Supersedes All earlier policies
Applicable to All Employees of MAT India Distribution All employees

DEPUTATION ALLOWANCE POLICY

Table of Content

1. Purpose………………………………………………………………………………..…………………………..…….……….1
2. Scope ……………………………………………………………………………………………………………….….….………2
3. Eligibility…………………………………………………………………………………………………………….…..……….2
4. General guidelines……………………………………………………………………………………..………………..….3
5. Management Discretion…………………………………………………….….…………………………………………6
6. Policy review……………………………………………………………………..…..…………………………………….…6

1 Purpose

The purpose of this Deputation Allowance Policy is to provide guidelines for the provision of
deputation allowances to employees who are required to move from one city to another for a
period of one year or less.

The policy aims to compensate employees for the additional expenses incurred due to the
temporary relocation and to ensure consistency and fairness in the allowance calculation.

VP- HR GMD GM- MINT

For Internal Circulation Only
 Deputation Allowance Policy

2 Scope

This policy applies to all departments within MAT India, including permanent employees (ML2
and above) and consultants (employees continuing with MAT India post-retirement).

3 Eligibility
3.1 MAT India Employees are eligible for deputation under the following conditions-

 Minimum of two years of service with the company.

 Demonstrated strong record of service and performance.

 Willingness to undertake deputation.

 Clear disciplinary and vigilance record.

 Medically fit for deputation.

 Possesses unique and valuable skills that are not easily replicable or available in the place
of deputation.

 Not approaching retirement within the next two years.

3.2 The following employees are not eligible for deputation-

 Direct recruited from the open market, whether on a permanent or temporary basis.

 Employees who have been permanently transferred to a new position.

 Employee who have been temporarily appointed based on their personal request.

 Position created out of organization re-structuring, whether in the same location or

different locations.

VP- HR GMD GM- MINT

For Internal Circulation Only
 Deputation Allowance Policy

4 GENERAL GUIDELINES
4.1 Deputations of employees to be exclusively assigned by management*.
4.2 Employees assigned to a Deputation are entitled to a Deputation allowance, based on the
Cost of Living Index.
4.3 For Employees being sent on Deputation from Sonipat or Kharagpur to Chennai to receive
the allowance as stated below.

CTC Range (In lac) Deputation Allowance % of CTC

Below 10 25 %
10 to 15 20 %
Above 15 15 %

4.4 For Employees being sent on Deputation from Chennai to Sonipat or Kharagpur.

CTC Range (In lac) Deputation Allowance % of CTC

Below 10 10 %
10 to 15 8%
Above 15 6%

VP- HR GMD GM- MINT

For Internal Circulation Only
 Deputation Allowance Policy

4.5 The initial deputation period may last for one year, with the possibility of extension for an
additional year upon mutual agreement between the company and the employee.
4.6 The total duration of deputation cannot exceed two years under any circumstances.
4.7 The period of deputation commences upon the employee's relieving date from their
parent organization/department and concludes on the date of taking over charge at the
parent organization/department following reversion from deputation.
4.8 Deputation allowance to be granted only during the deputation period and ceases once
the employee is transferred back to their original location.
4.9 In exceptional cases where the deputation is no longer feasible or in the best interest of
the employee or the company, management reserves the right to recall the employee to
the parent company before the scheduled completion of the deputation period.
4.10 In the event of premature termination of the deputationist's services, the company or
employee is required to give at least one month's advance notice to both the lending
company or department and the reporting manager.
4.11 This enables all stakeholders to make appropriate plans and transition arrangements.
4.12 Deputation allowance to be terminated, in case of completion or voluntary request by
the employee for transfer back to the base location.
4.13 If an employee on deputation owns a vehicle and intends to relocate it to the new
location, the Parent company to cover the costs associated with transporting the vehicle.
4.14 However, if an employee does not possess a vehicle, the company to be accountable for
covering their transportation expenses during the deputation period, both from the
company to the employee's residence and vice versa.
4.15 Deputed employees not entitled to receive daily allowances as per the company's travel
policy.
4.16 Employees on deputation may avail salary advances in accordance with the company’s
existing “Salary Advance Policy”.
4.17 Additionally, employees may also request an advance of the deputation allowance,
extending up to four months, to cover the initial shifting and settling expenses.

VP- HR GMD GM- MINT

For Internal Circulation Only
 Deputation Allowance Policy

4.18 Any overpayment made by the company to be deducted from the employee's salary,
even after the expiry of the deputation period.
4.19 During the period of deputation, the employee continues to receive the perks and
benefits as outlined in their entitlement in the parent company or department.
4.20 The employee adheres to the parent company's annual leave rules.
4.21 Deputed employees are entitled to avail 4 days of paid settling support leaves (excluding
weekends), to join their new deputed organization exclusively for searching for
accommodation and managing household material/stuff.
4.22 Settling support leaves to be availed 2 days before and 2 days after joining the new
location with approval by the new reporting manager and information to HR, otherwise
lapses.
4.23 During the deputation period, employees can not avail of leaves exceeding 6 days in the
first 6 months and not exceeding 12 days in the period between 6 months and 12
months.
4.24 The employee (if living alone) to be eligible for one round trip to their base location, once
a quarter during the deputation period, subject to the approval of the reporting manager
and in accordance with the company's travel policy.
4.25 A minimum interval of 2 months between trips is mandatory.
4.26 The above does not apply if the employee is already living with family** members at a
deputed location.
4.27 The Appraisal process for employees on deputation to be conducted by their Reporting
Manager at the corporate level, following feedback from the respective Plant Director.
4.28 The Reporting Manager to assess the performance and provide feedback based on the
employee's contribution during the deputation period.
4.29 Deputation allowance to be over and above the existing CTC and to be provided as a
separate column (head) in the employee's compensation structure, ensuring
transparency and clarity regarding the allowance amount.
4.30 The calculation of deputation allowance is to be based on the employee's current year
CTC and current location of the workplace.

VP- HR GMD GM- MINT

For Internal Circulation Only
 Deputation Allowance Policy

4.31 Any change in the CTC during the year necessitates a corresponding adjustment in the
deputation allowance.
4.32 In the event of a promotion or salary increase, the deputation allowance to be adjusted
accordingly.
4.33 If an employee on deputation seeks a permanent transfer or if the company decides to
transfer the employee, the deputation allowance becomes a part of the employee's cost
to the company (CTC) and to be considered in the salary structure accordingly.
4.34 Employees generally not be selected for more than two deputations in their career,
except in cases of exceptional circumstances or specific business requirements
necessitating additional deputations.
4.35 An employee to be eligible for an adjusted deputation allowance based on the above
matrix, regardless of movements between locations, ensuring consistency and fairness.
4.36 Employees who express willingness for deputation but subsequently refuse to join after
the selection process to be disqualified from consideration for any future deputations for
a specified period, as determined by management.

5 Management Discretion

The management reserves the right to exercise discretion in exceptional cases where the
prescribed deputation allowance may not be applicable.

Such exceptions to be considered on a case-by-case basis, taking into account the specific
circumstances and justifications provided by the employee.

6 Policy Review

This deputation policy is reviewed every two years by the management, taking into account the
increase in the cost of living index, to ensure its relevance and effectiveness.

*Management refers to GMD/ MINT Director.

**The definition of family is as follows:

VP- HR GMD GM- MINT

For Internal Circulation Only
 Deputation Allowance Policy

If married- the employee, spouse, and children are considered as family.

If unmarried-the employee and dependent parents are considered as family.

VP- HR GMD GM- MINT

For Internal Circulation Only