Welcome NASSCOM

about us Irish Multinational with 70 offices in 17 countries Irish Multinational with 70 offices in 17 countries Formed in Dublin, Ireland in 1982 Formed in Dublin, Ireland in 1982 Queen’s Award for Enterprise; International Trade, 2002 & 2006 Queen’s Award for Enterprise; International Trade, 2002 & 2006 Established in Chile in 1997 Established in Chile in 1997 Turnover 2010 (Chile): US$17,000,000 Turnover 2010 (Chile): US$17,000,000 3 offices and 52 staff in Santiago 3 offices and 52 staff in Santiago SERVICES SERVICES Search & Selection Search & Selection Personnel Evaluation Personnel Evaluation Temporary Staffing Temporary Staffing Outsourced Staffing Outsourced Staffing

employee motivators KEY MOTIVATORS  Employment stability  Multinationals  Salary  Office location  Benefits Additional health insurance Canteen/lunch vouchers Bonuses (Sept 18th/holidays) Carparking  Promotion Opportunities  Training

employment law Complex and rigidComplex and rigid Quite pro-employeeQuite pro-employee Significant fines for non-complianceSignificant fines for non-compliance New fast-track employment tribunalsNew fast-track employment tribunals New favourable legislation for temp staffingNew favourable legislation for temp staffing Sophisticated subcontracting lawsSophisticated subcontracting laws Substantial maternity rightsSubstantial maternity rights Complex Trade Union legislationComplex Trade Union legislation

hours of work & min wages MIN SALARY & HOURS of WORK Minimum salary: Ch$165,000 gross monthly Profitable companies (quarterly) must also pay Profit Share to all employees: currently equivalent to Ch$65,313 Maximum working hours: 45 per week Maximum 2 hours overtime per day (50% premium) Overtime for weekend and holidays (100% premium) EMPLOYER CONTRIBUTIONS Unemployment Insurance 2.4% or 3% (capped to % of UF90) Work related accident insurance: 0.95% minimum Disability Insurance (SIS): 1.87% TOTAL MAX ON-COST: %TOTAL MAX ON-COST: %

contract types & on-costs PERMANENT CONTRACT (indefinite)PERMANENT CONTRACT (indefinite) Gross salary + 2.4% (unemployment insurance) % (work related accident insurance) % (SIS) ► TOTAL ON-COSTS = 5.22% ► TOTAL ON-COSTS = 5.22% FIXED TERM CONTRACT (up to 2 years)FIXED TERM CONTRACT (up to 2 years) (Maximum of 2 consecutive contracts) Gross salary + 3%(unemployment insurance) %(work related accident insurance) % (SIS) ► TOTAL ON-COSTS = 5.82% PROJECT CONTRACT (pegged to project duration)PROJECT CONTRACT (pegged to project duration) Gross salary + 3%(unemployment insurance) %(work related accident insurance) % (SIS) ► TOTAL ON-COSTS = 5.82%

SALARY PAYMENT Salaries are paid monthly on the last working day Net salary is paid on this date to the employee Employer must retain items A,B,C & D and pay these deductions to corresponding entities on the 10th of the following month Employer Contributions are also payable on the 10th of the following month Employee & Employer Contributions are a matter of public record and delayed or non-payment are subject to fines

contract termination costs VOLUNTARY RESIGNATIONVOLUNTARY RESIGNATION (Employee decision) (Employee decision) + Salary to date + proportional holiday pay (1.75 days for each month worked) COMPANY NEEDSCOMPANY NEEDS (Company decision) (Company decision) + Salary to date + one month’s paid notice + length of service payment (one additional salary for each year of service) + proportional holiday pay MUTUAL ACCORDMUTUAL ACCORD Negotiated settlement based on circumstances GROSS MISCONDUCTGROSS MISCONDUCT + Salary to date + proportional hoilday pay

documentation AN ORDERLY HR DEPT IS A MUST Signed contracts of employment on premises Attendance records (daily and weekly) Signed pay slips Evidence of healthcare, pension and personal taxation payments made in representation of employees Contract termination documentation Internal Procedure Manual: Hygiene, Safety at Work and Sexual Harassment Complaints manual.

employee protection MATERNITY RIGHTS ► ► 5 months statutory maternity leave for female ► ► 5 days paid leave for fathers ► ► Female employees with maternity entitlement may not be fired until 14 months after birth without the express written permission of a Judge ► ► Employers with 20 or more female employees are obliged to pay nursery fees for the child for 24 months or provide free childcare facilities at the place of work ► ► Female employees with new borns are entitled to 1 hour rest periods each working day for 24 months following the birth of their child TRADE UNION RIGHTS ► ► For a company with 50 or more employees, at least 25 employees or 10% of the total employees are required to form an official Trade Union ► ► 8 employees or more may form a provisional Trade Union for 1 year ► ► To continue beyond the first year, the provisional Trade Union must increase its numbers to 25 members ► ► Trade Union leaders may only be fired only for gross misconduct and with the express permission of a Judge for 30 months following his/her appointment

summary PRO Large employment pool of well educated workers Large employment pool of well educated workers High employee commitment High employee commitment Relatively low salaries Relatively low salaries Low employer contributions Low employer contributions Favourable new Temporary Staffing laws Favourable new Temporary Staffing laws Good work ethic Good work ethic Good training incentives Good training incentives CON Rigid employment legislation Low levels of English (3% of total population, 30% of Professionals) Overly protective maternity rights Overly protective Trade Union rights (industrial sector)

Presented by: Brendan Morrison Managing Director (Chile) Ph: (00 562) Carole Tynan Search & Selection Manager Ph: (00 562) www.grafton.cl