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24.1 Minimum Employment Levels

In selecting employees to carry out its Mining Operations under this Agreement the Company shall give preference to qualified and competent the State executives, officers, engineers, consultants, technicians and skilled and semi-skilled labour.

24.2 Investment in Skills of Local Work Force
The Company shall develop and implement an annual training plan with the objectives to:

(a) Organize training of its employees to upgrade employees’ skills and provide further practical experience;
(b) Train employees in line with the Company’s short and mid-term human resource plans; and
(c) Upgrade selected employees’ qualifications by enrolling them in studies inside or outside the State on a contractual basis to further upgrade their professional qualifications.

24.3 Labour Training and Capacity Enhancement

The Company shall develop and implement a comprehensive training program for the State personnel in the State and in other countries, if necessary, and carry out such program for training and education in order to meet the requirement for various classifications of skilled and semi-skilled full time employment for the Project.

24.4 Management Training and Capacity Enhancement

The Company shall develop and implement training for the State personnel in the State and in other countries, if necessary, in order to qualify them for technical, administrative and managerial positions, with the objectives to:

(a) Establishing and operating a vocational and training institute to provide vocational, technical and advanced training programs in the community;
(b) Furnishing on-the-job counterpart training, not only in the State but to the extent reasonably feasible in the offices of the Company in the State, in order that the beneficiaries may receive training in the overseas aspects of the Company’s shipping, marketing and accounting functions;
(c) Providing scholarships for inhabitants of affected communities to pursue studies, including advanced studies in the the State or abroad; and
(d) Enhancing such training and educational opportunities as already exist in the vicinity of the local community.

*Some of the below examples are the full labor sections of actual agreements and may cover issues that are dealt with elsewhere in the MMDA, such as 19.2 Company Hiring Decisions and 16.0 Expatriates.

Example 1
ARTICLE 6 Employment and Training of Host Country Citizens

6.13

(a) [Company] shall employ [Country] personnel to the maximum extent practicable consistent with efficient operations, subject to the provisions of Law.
(b) [Company] shall not be limited by the terms of this Agreement in the appointment and dismissal of personnel, which it may do subject to the Law. Nonetheless, due to the particular characteristics of the Project, the [Country] shall grant to [Company], its Affiliates, contractors and/or subcontractors, authorizations related to special work schedules that permit the execution of the Project in accordance with the international standards applicable to mining and the Laws.
(c) [Company] shall seek to provide direct participation by the citizens of [Country] in the Project through the inclusion of [Country] nationals in the management of the Project. [Company] shall train [Country] nationals to occupy responsible positions in connection with the Project.
(d) [Company] shall conduct a comprehensive training program for [Country] personnel in the [Country] and in other countries, if necessary, and carry out such program for training and education in order to meet the requirement for various classifications of full time employment for its operations in [Country]. [Company] shall also conduct a program to acquaint all expatriate employees and contractors with the laws and customs of [Country].
(e) [Company] and its contractors may bring into [Country] such expatriate individuals and their dependents as in [Company]’s judgment are required to carry out the operations efficiently; provided however, that [Country] may make known to [Company], and [Company] shall duly observe, objections based on grounds of national security or foreign policy of [Country]. [Company] shall make arrangements for the acquisition of all necessary Permits (including entry and exit permits, work permits, visas and such other permits as may be required). [Company] will be allowed to provide specific benefits internationally recognized as expatriate allowances related to offshore assignments.

Example 2
8. Chapter Eight: Labor Relations, Employment and Training

8.1 The Investor and its Affiliates shall comply with the provisions of relevant labor, employment and social security laws and regulations of [Country]. In implementing its remuneration policies, the Investor will ensure fair wages and equal remuneration for work of equal value.
8.2 During the term of this Agreement, the Investor and its Affiliates and the Government will cooperate together to ensure that there is a suitably qualified Project Workforce available to meet the timeframe of the Project.
8.3 A citizen of [Country], foreign nationals, and people without citizenship, employed by the Investor under a contract must be covered by social insurance as required by law.
8.4 In accordance with Article [x] of the Minerals Law, not less than 90% (ninety percent) of the Investor’s employees will be citizens of [Country].
8.5 In accordance with Government Resolution Number [x] dated [date] making amendment to the Annexure of Resolution Number [x] of [year] on establishing the quota of work force and professionals to be received from abroad in [year] made under the authority of the Law on Sending Labor Force Abroad and Receiving Labor Force and Specialists from Abroad, the Investor will utilise best efforts to work with entities that contract with the Investor to provide labor to the Project to ensure that:

8.5.1. for construction work during the Construction Period and Expansion Periods, not less than 60% (sixty percent) of the entities’ employees will be citizens of [Country]; and
8.5.2. for mining and mining-related work, not less than 75% (seventy five percent) of the entities’ employees will be citizens of [Country].

8.6 If the Investor provides employment and income earning works and services to a number of foreign nationals within the specified percentage set forth in Clause 8.4, it shall pay a monthly workplace charge of twice the minimum monthly wage established by the Government for each foreign national to the Employment Promotion Fund.
8.7 If the Investor employs more foreign nationals than the specified percentage set forth in Clause 8.4, the Investor shall pay a monthly fee of 10 (ten) times the minimum monthly salary for each foreign national in excess of the specified percentage.
8.8 After the payment referred to in Clause 8.7 has been submitted to the budget of the relevant [Province] or district under Article [x] of the Minerals Law a portion of this fee shall be allocated to be spent on the OT Training Strategy and Plan specified in Clause 8.13 to train citizens of [Country] to upgrade their skills or learn new skills in accordance with the rules established by the [Government Body] of the relevant [Province] or district.
8.9 Breaches of the labor quotas set out in Clauses 8.4 and 8.5 shall not constitute a breach of this Agreement and Clause 10.7 shall not apply.
8.10 The Government shall provide support requested by the Investor to facilitate and expedite the granting of all Permits necessary for the engagement of such foreign nationals of the Project Workforce.
8.11 The Investor will use its best endeavours to maximize the participation on a competitive basis of qualified citizens of [Country] as engineers for the Project and within 5 (five) years of the Commencement of Production the Investor must use its best endeavours to ensure that no fewer than 50% (fifty percent) of its employed engineers, and within 10 (ten) years of the Commencement of Production that no fewer than 70% (seventy percent) of its employed engineers, shall be citizens of [Country].
8.12 Within 90 (ninety) days after the Effective Date, the Investor will submit to the Government for public release a detailed and comprehensive 5 (five) year [Country] nationals training strategy and plan for the Project (“Training Strategy and Plan”).
8.13 The Training Strategy and Plan will focus on training skilled workers for the Project and training them for professions, and improving their vocational and professional skills, relevant to the Project and mining in [Country] generally and specifically in [region].
8.14 The Investor shall, in accordance with its annual training plan:

8.14.1. organize training of its employees at its Core Operations to upgrade employees’ skills and provide further practical experience;
8.14.2. train employees in line with the Investor’s short and mid-term human resource plans; and
8.14.3. upgrade selected employees’ qualifications by enrolling them in studies inside or outside [Country] on a contractual basis to further upgrade their professional qualifications.

8.15 The Investor shall establish a graduate scholarship program for assisting in the education of [Country] nationals in mining related disciplines, with an emphasis on engineering related disciplines, within which scholarships over a 6 (six) year period from the Effective Date will be granted to 120 (one hundred and twenty) students studying at [Country] universities and to 30 (thirty) [Country] students studying at international universities. The scholarship program will cover tuition fees and living expenses. The Investor shall provide the students holding scholarships with an opportunity to participate in work experience and training at the Project or at a suitable international mining operation.
8.16 The Investor shall establish and maintain health and safety systems and procedures at the Project to ensure a safe workplace which complies with the Law on Labor Safety and Health and all applicable health and safety laws and regulations in [Country] while complying with all requirements under the Labor Law, including in respect of collective bargaining.
8.17 To enable all employees on the Project to be trained to international standards, the Government shall render all support for the adoption, within 6 (six) months of the Effective Date, of an international mining education and training curricula at selected domestic universities and vocational training institutions.

Example 3
ARTICLE 6. Training and Human Resources Management

6.1 The Company will comply with the Training and Human Resources Management Programme applicable from time to time.
6.2 The Company may, with the consent of [Government] (which consent shall not be unreasonably withheld), amend or alter the Training and Human Resources Management Programme, with a view to securing the maximum training of and benefits to [Country] citizens from the Facilities. If the Company is unable to comply with the Training and Human Resources Management Programme due to circumstances beyond its control, then such non-compliance shall not constitute a default under this Clause 6 and the Company may give notice of alternative or revised plans to the part of the Training and Human Resources Management Programme affected.
6.3 Should the Company give notice pursuant to Clause 6.2, [Government] shall within thirty (30) days either:

(a) approve those alternative or revised plans; or
(b) meet with the Company to discuss and agree upon the alternative or revised plans.

6.4 If the discussions under Clause 6.3 do not lead to [Government]’s approval of alternative or revised plans and the Company considers [Government]’s decision to be unreasonable, the Company may elect to refer the reasonableness of [Government]’s decision to a Sole Expert in accordance with Clause 19.
6.5 If the Sole Expert determines that [Government]’s decision is not unreasonable, he shall identify to the Company the changes to the Training and Human Resources Management Programme as will be necessary to bring such programme into compliance with [Government]’s requirements in this regard and the Company shall elect whether to amend the programme accordingly or to retain the original programme. However, if the Sole Expert determines that [Government]’s decision is unreasonable, he shall declare his determination to both Parties and the proposed amendment or alteration to the Training and Human Resources Management Programme shall be deemed approved.
6.6 The Company shall not, save as provided below, be restricted in its employment, selection, assignment or discharge of personnel, provided, however, that the employment and the terms and conditions of such employment and the discharge or disciplining of personnel within [Country] shall be carried out in compliance with (i) the laws and regulations of [Country] which are, from time to time, of general application, (ii) the Collective Agreement and (iii) the terms of individual employment contracts from time to time.
6.7 The Company will, in its recruitment, selection, promotion and assignment of personnel not discriminate against comparably trained, qualified and experienced [Country] citizens.
6.8 The Company acknowledges [Government]’s policy to attract qualified [Country] citizens working overseas back to employment within the [Country] mining and metallurgical industry. In order to facilitate the fulfillment of this policy, the Company will take all reasonable efforts in its recruitment and employment of employees in professional, managerial, engineering and scientific grades to bring to the attention of such qualified [Country] citizens, positions of employment available within the Company (including, but not limited to the advertising of positions in international press and trade journals likely to have circulation amongst suitably qualified potential employees).
6.9 The Company will honour and perform the terms and conditions of the contracts of employment of the Transferring Employees save that such contracts may be varied provided that any variance shall be made in compliance with all aspects of [Country] law and regulations and the terms of the relevant Collective Agreement.
6.10 The Company will recognise, for collective bargaining purposes, the trade union currently representing the Transferring Employees.
6.11 The Company adopts the Redundancy Terms currently applicable to Transferring Employees (and agrees that years previously worked for [Company] shall form part of the accrued service of such Transferring Employees when calculating any subsequent redundancy payment to which they may become entitled upon being terminated by the Company) and agrees that no amendment or variation will be proposed or made to the Redundancy Terms which would adversely affect the Transferring Employees (or any of them) if such Redundancy Terms were to be implemented without the Transferring Employees’ consent.
6.12 Notwithstanding the provisions of this Clause 6, the Company (and its contractors or subcontractors) may bring into and retain in [Country] such non-[Country] citizens as, in the reasonable judgment of the Company’s management, are required for the efficient and successful operation of the Facilities and, at the Company’s request (which shall be accompanied by such information concerning the education, experience and other qualifications of the personnel concerned as may be required by regulations of [Country] of general application in [Country] from time to time) [Government] shall cause all necessary permits (including entry and exit permits, work permits, visas and such other permits or permissions as may be requested) to be issued to such persons and their dependents without undue delay and without hampering the continuous and efficient operation of the Facilities. Provided that [Government] shall be under no such obligation to issue the permits aforesaid to any non-[Country] citizen who is disqualified from entry by reason of previous criminal convictions, health regulations and like restrictions set out in immigration regulations of general application in [Country] from time to time.
6.13 A committee shall be formed, comprising of one member from each of the Ministry, the Company, Ministry of Labour and the local government, which shall have no powers to bind the Company but shall monitor the implementation of the Training and Human Resources Management Programme.
6.14 Such committee shall operate during the term of this Agreement and the Company shall furnish it with reports every six (6) months outlining the progress of the Training and Human Resources Management Programme, problems encountered, positions filled and the number of local people employed.

Example 4
ARTICLE 25. Employment of Host Country Personnel
25.1 During the term of this Agreement, [Company], and/or the Operator, and their Affiliates and subcontractors agree to:

a. Employ [Country] personnel to the extent they have equal qualifications.
b. Prepare and establish a comprehensive program for training [Country] personnel,
c. Ensure the housing of workers employed on site in conditions of health and safety conforming to existing or future regulations.
d. Respect the existing and future sanitary laws and regulations in force from time to time.
e. Respect the existing and future labor laws and regulations relating specifically to conditions of work, minimum wages, the prevention and remedying of work-related accidents and occupational illness, as well as relating to professional associations and trade unions.

Example 5
Section XIII
Employment and Training of (Country) Personnel

13.1. The (Contractor) agrees to employ, to the extent possible, qualified (Country) personnel in all types of mining operations for which they are qualified; and after Commercial Production commences shall, in consultation and with consent of the (Government), prepare and undertake an extensive training programme suitable to (Country) nationals in all levels of employment. The objective of said programme shall be to reach within the timetable set forth below the following targets:
[table]
13.2. Cost and expenses of training such (Country) personnel and the (Contractor’s) own employees shall be included in the Operating Expenses.
13.3. The (Contractor) shall not discriminate on the basis of gender and shall respect the right of women workers to participate in policy and decision-making processes affecting their rights and benefits.

REFER TO MMDA DISCLAIMERS AND MMDA USER’S GUIDE
PRIOR TO ANY USE OF THIS DOCUMENT.

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