Written contract.
The necessary particulars defining the rights and obligations of the parties are provided
in writing. This is where a contract of service for an employee is made for a period ex-
ceeding 6 months or the number of working days equivalent to 6 months or stipulates
conditions of service, which differ materially from those customary in the district of
employment for similar work or is foreign contract of service. The contract is made in
writing (Sect 42 of the employment ordinance CAP 366). It can be permanent/sea-
sonal/specific duration as long as it is not less than 6 months as provided above.
Oral contract
An oral contract is made for a service period of less than 6 months. The terms of con-
tract are discussed orally and agreed upon between the employer and the employee. The
employer is obliged to keep records of terms in written form and produce them when-
ever required to do so by a labour officer. This helps to have a ‘record of oral contract’
in a standard version. Therefore, all contracts of service other than contracts, which are
required by the employment ordinance CAP 366, or any other law to be made in writing
are made orally. However, no oral contract is deemed to be valid and binding unless the
employment commences within one month from the date of the contract.
Subject to any agreement that may be made between the parties, an oral contract is
terminable by either party where the contract is daily, and the wages are payable at in-
tervals of less than one week and at the close of any day without notice.
Performance management
Although TTLP is a multinational corporation, there is no evidence that an open per-
formance system exists. However, there are plans to introduce the system although the
pace is fairly slow. The official view of appraisal is that the departmental heads submit
annual appraisal reports to the general manager. The assessment is communicated to the
employee who is given the opportunity to defend himself. This is done between Febru-
ary and March prior to the end of the financial year. The department heads forward con-
fidential reports to the general manager on every trainee under their departments once
every three months. If the individual’s progress is below normal, the reporting authority
gives advice on action to be taken.
In cases of probation, departmental heads submit confidential reports with respect to
employees on probation before their period of probation, which is six months, expires.
The report contains recommendations as to whether the employee should be confirmed,
probation period extended or service of the employee terminated. The employee has the
opportunity to defend the appraisal when the probationary period ends and in case the
probationary period is extended or service is terminated.
Development of reward management package
The company uses the traditional concept ‘compensation’ rather than the fashionable
one in the contemporary human resource management of ‘reward’.
Compensation is awarded to employees based on a graduated basis according to job
grade whilst considering market factors for each job category. The TTLP compensation
policy is to award such salaries and benefits as would achieve, as far as practical. In
adopting this compensation policy, TTLP considers several factors in order to achieve