Employee Handbook (HBEU) - HSBC careers site

Employee Handbook (HBEU)Dear ColleagueWelcome to HSBC Bank plc (the “bank”). I would like to wish you every success during youremployment with us, whether you have recently joined the bank or whether you are anexisting employee.This Employee Handbook (the “Handbook”) is designed both to introduce you to the bank andto be of continuing use during your employment with the bank.Together with your offer letter, the Handbook sets out the terms and conditions of youremployment, guidance on the high standards of conduct that are expected of you and someof the main employee benefits which may be available to you. The Handbook also providesyou with information on where to find the main policies and procedures that will affect youremployment which, for the most part, are contained in the HR Procedures Manual which canbe found on the bank's intranet site.The Handbook is therefore an important document and it is essential that you read theHandbook thoroughly and carefully before accepting an offer of employment with the bank or,if you are a current employee, as soon as possible after the Handbook is issued.Unlike previously, paper copies of the Handbook will not be issued. Instead, this Handbookwill only be available via the bank’s intranet or recruitment website. This will allow the bank tokeep the Handbook up to date and reflects the bank’s policy of minimising paper products.General amendments to the Handbook will be issued from time to time by circular. As theseamendments may revise your contract of employment it is essential that you refer to theHandbook, as set out on the bank’s intranet, and familiarise yourself with these amendments.I hope that you will find the information contained in the Handbook both informative andhelpful. If you require clarification or any additional information please refer to your linemanager.Mark SheridanHead of Human ResourcesHSBC Bank plc

such documents to earlier Handbooks, including “Let’s Work Together”, should now be takento refer to this Handbook.About HR Procedures, Policies and other HR DocumentsThe Human Resources Procedures Manual (the "HR Procedures Manual"), which can befound on the bank's intranet site, contains the bank’s principal HR policies and procedures.You can navigate through the HR Procedures Manual by using the A-Z index. At the end ofmost sections of the HR Procedures Manual, there are "contact point" tables, so that youknow who has the expertise to guide you with any specific issues.It is important that you take an opportunity within the first few weeks of your employment withthe bank to familiarise yourself with the format and contents of the HR Procedures Manual.The HR Procedures Manual does not form part of your contract of employment.Other sources of information are specific to certain situations, such as the ‘EmployeeMaternity Guide’ or the ‘Business Instruction Manual - Compliance’ and are referred to in theHR Procedures Manual and can be obtained from your line manager or through the bank'sintranet.Where a matter is referred to in the Handbook and further information is contained in the HRProcedures Manual or other documents, directions to the appropriate document will normallybe provided. Please note, however, that any documents referred to in this Handbook do notform part of your contract of employment (unless otherwise expressly stated) and are notincorporated into your contract of employment by reference.What is the difference between a policy and a procedure?Most of the sources of information are referred to as ‘policies’ and/or ‘procedures’. A policyusually describes the bank’s approach to a certain issue. A procedure usually describes theprocess which the bank will follow in respect of a particular issue. Some subjects will haveboth a policy and a procedure; in other subjects the policy may form part of the procedure.Regardless of whether information on a particular subject is called a ‘policy’, a ‘procedure’ orboth, the key factor is that they set out guidance on how you should act, and how the bankwill act towards you.

1. Terms and ConditionsThis section of the Handbook, together with your offer letter (as amended by subsequentcommunications from the bank), form your terms and conditions of employment. In addition,they set out the details which the bank, as your employer, is required to give you undersection 1 of the Employment Rights Act 1996.For the avoidance of doubt, references in this Handbook to your ‘offer letter’ means any letteror document (other than the Handbook) issued to you by the bank that is expressly stated toform or constitute part of your terms and conditions of employment and/or employmentcontract (and as may have been amended by any subsequent communications from thebank).1.1 Job TitleYour current job title is as stated in your offer letter or subsequent communication from thebank, and may be amended periodically by notice to you in writing or by circular.1.2 DutiesYour duties are as set out in your job description or as detailed to you by your line manager.However, you will need to take a flexible approach to your duties and in particular from time totime, you may be required to undertake such alternative or additional duties as may becommensurate with your grade. On occasions for training purposes or operational reasons,you may also be required to carry out duties at a higher or lower grade as necessary.Deputising in other grade duties is a developmental opportunity and a contribution to overallteamwork and customer service. When an employee deputises in a higher graded job, apayment may be made, by prior agreement and in accordance with the bank's rules as theymay exist at the time.1.3 Grade/Global Career BandsAll positions within the bank are given a grade or Global Career Band (GCB) allocated to aparticular job by a process of job evaluation, which assesses and ranks jobs according tocontent.Grades for non-managerial employees are known as clerical grades and are prefixed by theletter S or E, followed by ‘0’ ‘B’ 'C' 'D' W' ‘K’ ‘J’ ‘L’ ‘F’ ‘S’ or ‘X’ which denotes the level offlexibility in your working hours.Your grade is initially stated in your offer letter and any changes will be notified to you inwriting or by circular. In addition, set out below is a table of changes to grade names, whichhave taken place over the past few years.Clerical EmployeesPreviousGradeNewGradeBusinessAreaS03-5 No change BankwideS04-5 SJ4-5B03-5 SB3-5C03-5 SK3-5BranchNetworkBranchNetworkMilton KeynesBranchContract type/descriptionIndividuals employed before the introduction offlexible contracts in their business area.Individuals who accepted flexible terms.New entrants after the introduction of flexiblecontracts.Individuals who accepted flexible terms.D03-5 SD3-5 Milton Keynes New entrants after the introduction of flexible

flexible contracts in their business areaM96 3 TA3 Individuals employed before the introduction offlexible contracts in their business areaM97 2 TA2 Individuals employed before the introduction offlexible contracts in their business areaM98 1 TA1 Individuals employed before the introduction offlexible contracts in their business areaM99 0 TA0 Individuals employed before the introduction offlexible contracts in their business areaMB3 6 TB6 Branch Network - new entrants after theintroduction of flexible contractsMB4 5 TB5 Branch Network - new entrants after theintroduction of flexible contractsMB5 4 TB4 Branch Network - new entrants after theintroduction of flexible contractsMD3 6 TD6 Milton Keynes Branch - new entrants after theintroduction of flexible contractsRegulated SalesforceOldContracttypeGCBNewContracttypeContract type/descriptionG70 6 RA6 Regulated contractG71 6 RB6 Regulated contractG72 6 RC6 Regulated contractG73 5 RA5 Regulated contractG74 5 RB5 Regulated contractG76 3 RA3 Regulated contractH78 4 RA4 Regulated contractHG0 5 RE5 Regulated contractHG1 5 RF5 Regulated contractHG2 5 RG5 Regulated contractHG3 5 RH5 Regulated contractHG5 5 RJ5 Regulated contractHG6 6 RE6 Regulated contractHG7 5 RK5 Regulated contract

HG8 4 RB4 Regulated contractHG9 4 RC4 Regulated contractUK Operations / CTS / Head OfficeOldContracttypeGCBNewContracttypeContract type/descriptionMC3 6 TC6 Individuals who accepted flexible termsMC4 5 TC5 Individuals who accepted flexible termsMC5 4 TC4 Individuals who accepted flexible termsMF3 6 TF6 New entrants after the introduction of flexiblecontractsMF4 5 TF5 New entrants after the introduction of flexiblecontractsMF5 4 TF4 New entrants after the introduction of flexiblecontractsMF6 3 TF3 New entrants after the introduction of flexiblecontractsHBEU departments in 8 Canada Square (8CS)OldContracttypeGCBNewContracttypeContract type/descriptionMW3 6 TW6 New entrants after the introduction of flexiblecontractsMW4 5 TW5 New entrants after the introduction of flexiblecontractsMW5 4 TW4 New entrants after the introduction of flexiblecontractsMW6 3 TW3 New entrants after the introduction of flexiblecontractsMW7 2 TW2 New entrants after the introduction of flexiblecontracts1.4 Pay1.4.1 Payments to YouYour pay comprises a basic salary and any entitlement to other allowances as stated in youroffer letter or other communication from the bank. Any changes will be notified to you inwriting or by circular. Your basic salary is pensionable and any allowances are nonpensionable,unless otherwise stated.Payment will be made into an account in your name with the bank, in 12 equal monthlyinstalments on or around the 20th of each month. This means that you will be paid in arrearsfor work done up to the 20th of each month and in advance for working from the 20th to theend of the month. However, depending on the date in the month you join the bank, the

payment period and/or date of your first salary payment may vary. Further details on this areset out in the Salaries section of the HR Procedures Manual, which is available through thebank’s intranet.Salary and, where applicable, any allowances, accrue in respect of each hour or part thereof,which you work.Payment is subject in all cases to statutory deductions of income tax and employee nationalinsurance contributions and any other deductions which the bank may be obliged to make.You will receive a monthly pay statement detailing gross pay and deductions.1.4.2 Bank AccountIt is a requirement of your employment that you maintain an account with the bank, into whichyour salary will be paid. For new entrants working within centralised sites and the bank’sHeadquarters this account will usually be domiciled within the National Sort Code (40-01-00).For new entrants working within the branch network, the account will usually be held at thebranch where you are to work initially.1.4.3 Salary for Clerical GradesThe bank reviews its current levels of pay each year and where appropriate seeks to agreethrough negotiation any changes with Unite.Any changes to your basic salary will be notified to you by letter, circular or in your monthlypay statement. In addition current pay bands applicable to your grade and/or area of work areset out in the Rates - salaries and allowances section of the HR Procedures Manual which isavailable on the bank’s intranet.1.4.4 Salary for Management and Salesforce BandsThe bank reviews its current levels of pay each year. Any changes to your basic salary will benotified to you by letter, circular or in your monthly pay statement. Current minimum salarylevels applicable to management band employees up to and including band GCB4 andminimum and target salaries for Salesforce grade employees are set out in the Rates -salaries and allowances section of the HR Procedures Manual which is available on thebank’s intranet.1.4.5 Incentive SchemesThe bank currently operates performance related discretionary incentive schemes designedto reward employees according to their efforts and the achievements of the bank. Theexistence of, and rules of the schemes are entirely discretionary and operate in accordancewith non-contractual rules, which may be in place from time to time. Further information isdetailed in the HR Procedures Manual (Incentive pay awards), which is available on thebank’s intranet.Separate incentive schemes apply to members of the regulated Salesforce and to SeniorManagers. The existence of and rules of such schemes are also entirely discretionary andoperate in accordance with non-contractual rules, which may be in place from time to time.Further details of such schemes will be communicated directly to such employees or will beset out in the HR Procedures Manual from time to time.1.4.6 AllowancesYou may be eligible for certain non–contractual allowances, as are applicable at the time.Your offer letter or subsequent communications from the bank will specify the type and levelof any allowance to which you may be entitled. Any subsequent withdrawal or variation will benotified to you in writing or by circular. Further information is provided in the HR ProceduresManual (Allowances), which is available on the bank’s intranet.1.4.7 Overtime and Additional HoursWhere you are required to work beyond your normal hours, payment will be made to clericalgrade employees, in respect of any such hours, in accordance with the bank's rules on

authorisation, eligibility and rates of pay. Overtime payments are non-pensionable and are notused in the calculation of any other benefits which are reliant on hours worked.Key time employees in clerical grades will not be eligible for overtime payments until theywork more than 7 hours in one day or 35 hours in one week. Any hours worked by key timeemployees in clerical grades above their normal hours, but below the limits for overtimepayments, will count as additional contractual hours (“Additional Hours”). Additional Hours arepensionable and will also be used in the calculation of any incentive payments, where anysuch payment is calculated on number of hours worked.No overtime payment will be made to management band employees who work in excess of35 hours per week. In exceptional circumstances key time employees who are in amanagement band, may be permitted to work Additional Hours, for which they will beremunerated as set out above in respect of clerical grade employees.Further details are set out in the HR Procedures Manual (Overtime) which is available on thebank’s intranet.1.4.8 Public and Bank HolidaysSome employees receive payment in respect of Public and Bank holiday working inaccordance with the bank's policies and procedures on authorisation, eligibility and rates ofpay. For further information please refer to the HR Procedures Manual (Public and BankHoliday working) which is available on the bank’s intranet.1.4.9 Incorrect Pay and Deductions from Pay Under the Employment Rights Act 1996(Part II)There may be an occasion when through error or omission you receive less than yourcontractual pay and/or allowances. Should such an unfortunate circumstance arise the bankwill rectify the situation and any contractual pay and/or allowances not paid to you will be paidon the first opportune pay-day following notification or identification of the omission or error.Conversely, if any error or omission results in any overpayment of pay and/or allowancesbeing made to you it is accepted that the bank reserves the right to deduct any suchoverpayment(s) from salary on the first opportune pay-day following identification ornotification. The bank will take into account individual circumstances and try to achieve ajointly-agreed repayment schedule.In the event that the overpayment is made in respect of your final salary payment (or otherpayment due on termination of employment), or if you are under a repayment schedule andyour employment terminates, the bank reserves the right to request that you repay such sumsowed, on demand.If your employment ends and the number of days holiday you have taken exceeds your prorataentitlement for the holiday year, an appropriate deduction will be made from your finalpay or if this is not possible the bank reserves the right to request that you repay such sum ondemand. The bank will give you an opportunity to discuss the proposed repayment, and thebank will take into account your personal circumstances prior to determining a repaymentschedule.If the holiday entitlement you have taken is less than your pro-rata entitlement and it is notoperationally practical for the outstanding days to be taken during the notice period, paymentin lieu of outstanding holiday entitlement will be made.Payments or deductions will not be made in respect of any Bank or Public holidays accrued ortaken in excess of entitlement.If you are summarily dismissed or leave the bank without giving due notice, you will not beentitled to any payment for accrued holidays or holiday pay, including (where relevant) anyaccumulated lieu days due to Saturday or rest day working.1.4.10 Tax and National Insurance on Benefits

Each year the bank will issue to you a P60 Certificate, which states your total earnings anddeductions for the tax year ending 5 April.If you earn at the rate of £8500 or more (set by HM Revenue & Customs) in any tax yearincluding "benefits in kind", you will be liable to tax on the financial value of those benefits.Benefits in kind include items which may be provided to you periodically by the bank such asprivate health insurance, cars and beneficial rate loans.If you need to communicate with HM Revenue and Customs, quote your tax reference and NInumber, both of which are given on your pay statement. Address any queries to:HM Revenue and CustomsWest Yorkshire and Craven AreaCentenary Court1 St Blaise WayBradfordWest YorkshireBD1 4YLTelephone: 0845 302 14321.5 Performance ReviewEach employee’s performance is reviewed annually, the present review period being thecalendar year. Further details are set out in the HR Procedures Manual (PerformanceReview) which is available on the bank’s intranet.1.6 Hours of Work1.6.1 GeneralDifferent working arrangements apply depending on your grade. Such working arrangementsrelate both to the number of normal hours worked in a week (based on a full time position)and to the way normal hours may be scheduled. In particular, you will note that someemployees work on ‘non-flexible’ schedules and other employees work on ‘flexible’ schedules.Whether you work on a non-flexible or flexible schedule depends on your grade, work locationand your job in the bank. Details of which grades are on non-flexible or flexible schedules areset out below.Grades S03 to S05, SS1 to SS6 (pre-accreditation on to flexible terms) TA6 to TA4(which apply to employees whose continuous employment with the bank started before 1December 1996 and are known as ‘non-flexible’ grades): The standard working week is 35hours and this is normally for 7 hours per day (excluding a one hour unpaid lunch break)Monday to Friday inclusive. The normal working day, unless advised otherwise, will be9.00am to 5.00pm Monday to Friday inclusive. For non-shift employees the bank can vary, bymutual agreement, the start and finish time between the hours of 8.00am and 10.00am and4.00pm and 6.00pm respectively.For those employees on "flexible" contracts, different parameters will apply depending onthe first 2 letters of your grade/contract type, as set out below. Unless otherwise stated yourschedule will normally include a one hour unpaid lunch break each day. Specific scheduleswill be advised to you locally or set out in your offer letter, but may be changed, onreasonable notice, within the parameters set out below.Clerical SF, SL and SW and Managerial PH, PI, PJ, PK, PL, PM, PN, TF, TW: Thestandard working week is 35 hours. The maximum number of days you may be required towork in any week is 6, over 7 calendar days, Monday to Sunday. The days of the week onwhich you work need not be consecutive. Your scheduled daily working hours will be amaximum of 10 working hours per day, although you may agree to work longer hours asovertime.

Clerical SC, SX and Managerial PA, PB, PC, PD, PE, PF, PG, TC: The standard workingweek is 35 hours. The maximum number of days you may be required to work in any week is6, over 6 calendar days, Monday to Saturday, or Sunday to Friday. The days of the week onwhich you work need not be consecutive. Your scheduled daily working hours will be amaximum of 10 working hours per day, although you may agree to work longer hours asovertime.Clerical SJ: The standard working week is 35 hours. The maximum number of days you maybe required to work in any week is 5, over 6 calendar days, Monday to Saturday, andbetween the hours of 8.00am to 8.00pm. The days of the week on which you work need notbe consecutive. You will be required to work a maximum of one Saturday in every twoconsecutive Saturdays. Your scheduled daily working hours will be a maximum of 10 workinghours per day.Clerical SB and Managerial TB and ET, E0C and E0R: The standard working week is 35hours. The maximum number of days you may be required to work in any week is 5, over 6calendar days, Monday to Saturday, and between the hours of 8.00am to 8.00pm. The daysof the week on which you work need not be consecutive. At the bank's discretion, time andday "slides" may form part of the schedule within the following parameters:Time and day "slides" within the core schedule of 8.00am to 8.00pm, Monday toSaturday, provided 50% of the employee’s current schedule remains unchanged.Changes to the core schedule will only be made as a result of individual agreement orby collective agreement with Unite.Employees contracted to work less than an average 35 hours per week can agreeeither a time or a day slide according to their personal and domestic circumstances. Ifyou elect a day slide the bank may alter the days on which you work, but not thetimes in those days that you work. If you choose a time slide the bank may alter thetimes in the day when you work, but not the days on which you work.Clerical SD and SK and Managerial TD: The standard working week is 35 hours. Themaximum number of days you may be required to work in any week is 5 out of 6 on any dayof the week. The days of the week on which you work need not be consecutive. Yourscheduled daily hours will be a maximum of 10 working hours per day, although you mayagree to work longer hours as overtime.The parameters set out above apply to both clerical grades and managerial band employeesup to Global Career Band 4 (GCB4) unless: you are a member of the Salesforce, in which case the standard working week is 35hours and may include weekends, Public and Bank holidays. Your specific hours ofwork will be flexible depending on the operational requirements of the business andmay include such further hours as are necessary for the fulfilment of your duties; or you work on a shift basis, in which case any working parameters will be set out inyour offer letter.Senior management employees are required to work such hours as are necessary for theproper fulfilment of their duties.1.6.2 Overtime and Additional HoursThe bank aims to ensure that persistent overtime or additional hours are unnecessary.However, occasions may arise where, due to unforeseen or unavoidable circumstances, youmay be required to work beyond your normal hours. In these circumstances overtimepayments will be made to clerical grade employees in respect of such hours in accordancewith the bank's policies and procedures. Key-time employees in clerical grades will be not beeligible for overtime payments until they work more than 7 hours in one day or in excess of 35hours in one week.

Subject to prior agreement and in accordance with the polices and procedures onauthorisation and eligibility key time employees who work hours above their normal hours butbelow the limits for overtime payments will be paid at their hourly rate of basic salary for suchhours. These hours are known as ‘Additional Hours’. Additional Hours are pensionable andwill count towards any incentive payment calculation which is based on hours of work.Further details are set out in the HR Procedures Manual (Overtime), which is available on thebank’s intranet.1.6.3 Working Time Regulations 1998The above regulations set limits on working hours and create a legal entitlement to minimumrest breaks and paid holiday entitlement. Further details on the regulations appear in the HRProcedures Manual (Working Time Regulations 1998), which is available on the bank’sintranet.1.7 Leave1.7.1 Holiday EntitlementThe bank’s holiday year runs from 1 January to 31 December each year.During Core Leave, employees must be physically away from their workplace and activelydiscouraged from participating in work-related activities from a remote location e.g. accessingBlackberry’s. Line managers must not place employees under duress to respond to workrelatedmatters during core leave and it is acceptable for an employee not to undertake anywork-related activity during this period.Employees may attend training courses, conferences or conventions during their core leaveas long as the events are not held on HSBC Group premises. Such events must not accountfor more than 50% of the core leave period.Minimum core leave is detailed below:CategoryFull time employees with 20 or more daysannual leave allowancesPart time employeesMinimum Core Leave10 working days, which may include Bankand Public Holidays that fall on normalworking days.Pro rata the above calculations. i.e. anemployee working 3 days a week with anannual leave allowance of 12 days (full timeequivalent allowance of 20 days) should takea minimum core leave of 6 working days, (i.e.two working weeks of 3 days a week).Leave arrangements for employees whose working pattern exceeds 7 hours per day, or whoare working a recognised shift pattern, may vary. These arrangements will be advised to youat the time of introduction of the working pattern.(i) Clerical GradesClerical Grades other than S03-S05, SJ4-SJ5, SS1-SS6 on non-flexible schedules and SK3-SK5 are entitled to 25 days paid leave.Clerical Grades S03-S05, SJ4-SJ5, SS1-SS6 on non-flexible schedules and SK3-SK5:Completed years of servicePaid leave (working days)Under 3 21

1.8.1 Absence Due to Sickness or InjuryIf you are unable to attend work because of your sickness or injury you must telephone yourline management no later than your normal starting time (or as soon thereafter as reasonablypracticable) in order to advise them of your absence and its reason.If your absence lasts for 7 calendar days or less you will need to complete a self certificationform.If your absence exceeds, or is likely to exceed, one calendar week, you must consult yourdoctor and obtain a medical statement expressing the doctor's opinion of the reason for yourabsence from work. This must be sent by post or delivered to your manager. If furthercertificates are required, these must also be sent to your manager by post or delivered. If yourillness lasts longer than one calendar week, you should contact your manager to advise himor her of your current prognosis at least once a week, unless agreed otherwise.You may be asked to give your consent for the bank to obtain a prognosis from your doctor.You may also be required to visit a medical adviser appointed by the bank and you will alsobe requested to give your consent to any report prepared by such medical adviser beingdisclosed to the bank.Reporting requirements may be varied by local arrangement at your place of work, when anyparticular requirements will be brought to your attention during your employment. If you areunclear about the arrangements in place you should speak to your line manager.1.8.2 Salary and Other Payments During Periods of AbsenceNo salary or other allowances or incentive payments will be paid for periods of unauthorisedabsence.Payments may be made for periods of absence due to reasons other than sickness or injuryat the bank’s absolute discretion.Subject to you following the absence rules laid down by the bank, basic pay less anyStatutory Sick pay (“SSP”), Incapacity Benefit or other similar benefit, will be continued for alimited period during authorised absence due to sickness or injury. The period for whichsalary will be paid currently depends on the length of your service with the bank and is asshown in the following tables:Employees: S03-5, SJ4-5, SS1-6 and SK3-5 employed prior to 1 April 1999 and GCB6-GCB1 employed on non flexible contracts. Regulated employees employed before 1st December 1999.ServiceMaximum period of normal pay granted*Less than 2 yearsBetween 2 and 3 yearsBetween 3 and 5 yearsOver 5 years8 weeks (40 working days)16 weeks (80 working days)26 weeks (130 working days)52 weeks (260 working days)* The maximum period is the maximum granted in any one year starting 6 April whetherabsence is owing to a single illness or succession of illnesses.Employees:

SB3-5, SD3-5, SC3-5**, SF3-5, SX1-6, SL1-6, SW3-5, TC3-6** and GCB6-GCB1on flexible contracts employed prior to 1 st December 2006. Regulated employees employed from 1st December 1999 to 30 November 2006.ServiceMaximum period of normal pay granted***Less than 3 yearsBetween 3 and 5 yearsOver 5 years8 weeks (40 working days)16 weeks (80 working days)26 weeks (130 working days)** Current levels of entitlement were retained on conversion to flexible contract where thesewere higher than the periods of normal pay granted in this table. However, any futureprogression is based on the above table.*** Calculation of maximum period of normal pay granted will be based upon a rolling 12month period whether absence is due to a single illness or succession of illnesses.Employees:On flexible contracts employed from 1st December 2006 in grades/bands SB3-5,SD3-5, SF3-5, SW3-5, GCB6-GCB1 and all regulated grades.ServiceMaximum period of normal paygranted****Up to 6 monthsBetween 6 and 12 monthsBetween 1 and 3 yearsBetween 3 and 5 yearsOver 5 yearsStatutory Sick Pay only2 weeks (10 working days)8 weeks (40 working days)16 weeks (80 working days)26 weeks (130 working days)**** Calculation of maximum period of normal pay granted will be based upon a rolling 12month period whether absence is due to a single illness or succession of illnesses.All sick pay is calculated and paid monthly in arrears following the receipt of the Absencereturn form completed by your line manager.Bank sick pay includes any entitlement you may have to Statutory Sick Pay (SSP). If banksick pay ceases, you may still be entitled to SSP (for up to 28 weeks' sickness in total). Thebank reserves the right to refuse to pay sick pay (including SSP) if it has reasonable cause tothink that you are not genuinely sick, or are abusing the sick pay policy.You should be aware that the bank may reduce your holiday entitlement for the holiday yearon a pro-rata basis related to your attendance during that year. Any incentive schemearrangements, as may exist, may also be affected.Should your SSP entitlement exceed bank arrangements as set out in the HR ProceduresManual then, on exhaustion of any bank sick pay, you will be paid SSP in accordance withyour statutory entitlement. Payment of SSP is dependent on you satisfying rules regardingperiods of incapacity, the period of entitlement, qualifying days and rules for the notification ofabsence.

If you are absent from work due to an accident or a condition sustained on or off duty that isthe fault of a third party, any bank sick pay paid to you in respect of such absence will berecoverable by the bank only if, and to the extent that, you recover damages in respect ofyour injury, condition or absence from work. You will be notified if these circumstances apply.Further details on absence are set out in the HR Procedures Manual (Absence management).1.9 Location and MobilityYour initial location will be as stated in your offer letter from the bank. You may be required totravel to customer sites and premises and on occasion to attend training sessions andmeetings elsewhere.There may also be times when the bank needs you to be flexible with your work location,which may mean a permanent or temporary move. Subject to business needs, the bank will,wherever possible, take into account your personal and domestic circumstances beforerequiring you to move. Set out below are the bank’s mobility requirements. Although thegeneral mobility requirement is dependent on grade, the bank’s requirements under anybusiness recovery plan (see section 1.9.5) apply to all grades.Employees whose work location is stated as ‘home’ in their offer letter are also covered bythese requirements. Some employees may have the option of working from home from timeto time by mutual agreement in line with business needs. However, this arrangement is notcontractual and the employee’s base remains as stated in their offer letter.1.9.1 Senior ManagementIf you are a senior management grade employee you may be required to work at or from anyoffice, branch or location of the bank or within different companies of the HSBC Group (asdefined in section 1.25) in the UK. A change of your place of residence may be required fromtime to time at particular stages of your career.In addition there may be some roles where there is a requirement to work outside of the UK.There may also be roles where occasional overseas travel is necessary, and in suchsituations, personal and domestic circumstances will be taken into account.1.9.2 ManagementIf you are a management grade employee (including if you are a Management Trainee) youmay be required to work at or from any office, branch or location of the bank in the UK. Achange of your place of residence may be required from time to time at particular stages ofyour career.In addition there may be some roles where there is a requirement to work outside of the UK.There may also be roles where occasional overseas travel is necessary, and in suchsituations, personal and domestic circumstances will be taken into account.1.9.3 Executive TraineesIf you are on the bank’s Executive Management Programme, you are likely to be requiredfrom time to time to work at or from any office, branch, or location of the bank in theUK. National flexibility is required as an Executive Trainee. A change of your place ofresidence is likely from time to time at particular stages of your career.In addition there may be some roles where there is a requirement to work outside of the UK.There may also be roles where occasional overseas travel is necessary, and in suchsituations, personal and domestic circumstances will be taken into account.1.9.4 Clerical GradeIf you are a clerical grade employee you may be required to work at or from any office, branchor location of the bank in the UK, within reasonable travelling distance of your existing

location or your home. What is deemed a reasonable journey will depend on a number ofcircumstances that will include normal travelling time and public transport availability.1.9.5 Business Recovery PlansThe bank has business recovery plans in place in the event of a major disaster taking placeand the working environment being compromised. Depending on the nature and longevity ofthe disaster and the nature of the role you are carrying out at the time, you may be identifiedas a key member of staff. If you are identified as such, you may be contacted and expectedto report for work at a different site, for a temporary period, to recover critical businessdisruption.1.10 Cars1.10.1 Management Car SchemeEmployees in bands GCB4 and above and Salesforce employees on Grades RB4, RC4 andRA4 are eligible to participate in the HSBC Company Car Scheme (the “Car Scheme”) subjectto the existence of and rules of the Car Scheme as they may exist from time to time.If your normal hours are less than 35 hours per week, the benefit will be pro rata to yournormal hours.If you change your normal hours, any contributions/cash back will be adjusted accordingly.For further information please refer to the HR Procedures Manual (Car Scheme), which isavailable on the bank’s intranet.1.10.2 Management Car LoanEmployees who are in bands GCB5 who are not Job Car holders may apply for amanagement car loan subject to its existence, limits and terms as may apply from time to time.Should you subsequently become eligible to participate in the Management Car Scheme, orbe issued with a Job Car, no further car loans will be agreed, but any existing car loan cancontinue until normal expiry or until the car is sold when the loan must be repaid.For further information please refer to the HR Procedures Manual (Car Loan), which isavailable on the bank’s intranet.1.10.3 Job CarsOn appointment to certain jobs you may be provided with a car under the bank's Job Carscheme.A job car is provided when it is an essential requirement for the performance of the job. It is abranch/department asset (not a personal resource) and allocation is reviewed regularly toensure continued eligibility. As a result, the provision of a Job Car may be withdrawn by thebank at any time. For further information on Job Cars, please refer to the HR ProceduresManual (Car Scheme), which can be accessed through the bank’s intranet.1.10.4 Salesforce Job Car SchemeSpecial arrangements apply to employees in Grades RA5, RB5, RD6, RC5, RD5, RF5, RG5,RH5, RI5, RJ5, RE6, RK5 and band GCB6/GCB5 managers working in certain specifiedSalesforces. For further information please refer to the HR Procedures Manual (Car Scheme)which is available on the bank’s intranet or your offer letter.1.10.5 Motoring OffencesIf, as a result of a motoring offence, you lose your driving licence and as a consequence arenot able to undertake your duties satisfactorily you must make suitable alternativearrangements acceptable to the bank to enable you to perform your contract of employment.

If you are not able to do so the bank will attempt to identify an alternative position, notinvolving driving. However if this is not possible or you do not accept the alternative positionthen your employment will be terminated, by the bank, by giving due notice.It is accepted that should an alternative role be identified, your salary, benefits and all otherterms and conditions of employment would mirror that of an employee at that grade and leveland not that of your current position. Any such alternative role will normally be an establishedposition. You will therefore not be entitled to automatically return to your current role if yourdriver’s licence is returned, although you will be able to apply and be considered for positionswhich require a driving licence.1.11 ExpensesYou will be reimbursed for expenses incurred on the bank's business which are:incurred and claimed strictly in accordance with the bank's rules on expenses;andsupported by the appropriate level of authorisation and documentation.To take best advantage of the bank's buying power, arrangements exist for purchase ofcertain services through given suppliers or through a central point. Such arrangements mustbe complied with.Further details are available in the Expenses Policy & Procedures Manual, which is availablevia Lotus Notes.1.12 Retirement and PensionsThe normal retirement age in the bank is currently 65 and your employment will terminateautomatically at the end of the month in which your 65th birthday occurs, in accordance withthe Retirement policy as stated in the HR Procedures Manual. For members of the HSBCDefined Benefit Section (DBS) of the Pension Scheme, the ‘pensionable retirement age’ willincrease to 65 with effect from 1 April 2010, thereby bringing it in line with the ‘normalretirement age’. However, members who choose to pay member contributions with effect from1 July 2009, will be able to elect to make further contributions to retain the age at which theycan take an unreduced pensions before age 65.Members of the HSBC Defined contribution Section (DSC) of the Pension Scheme can retireat any age from 50 (rising to 55 from 2010) but the Principal Employer’s and the Trustee’sagreement is needed for retirement before age 60.1.12.1 The HSBC Bank (UK) Pension Scheme - Defined Contribution SectionThe HSBC Defined Contribution Section of the Pensuion Scheme (“DCS”) is applicable toemployees who entered service on or after 1 July 1996.The DCS is contracted in to the State Second Pension (S2P) which replaced the StateEarnings Related Pension Scheme (SERPS) in April 2002.The DCS Scheme is a savings style type of pension which provides:oooa pension on retirement;an ill-health pension (which unless you are eligible for payment under Group IncomeProtection which pays a minimum of 30% of your salary regardless of your length ofservice, currently applies if you have five years membership and are unable tocontinue in employment because of serious ill-health); andsecurity for your dependants, which is currently:-• a lump sum of four times your final pensionable salary (unless you elected adifferent level of benefit through My Choice payable through the Group’s

separate Life Assurance Scheme) if you die in service plus a refund of yourown pensions contributions;• a spouse's or civil partner’s pension;• a qualifying children's allowance.Further details about the DCS, including the DCS Explanatory Booklet, Frequently AskedQuestions and details of the DCS Administration Team, are available on the DCS IntranetSite (www.futurefocus.staff.hsbc.co.uk/dbs/). You can also call on 01737 227570 (externalcompany Towers Watson).The pension benefits detailed in the handbook are subject to the Trust Deed and Rules of theHSBC Bank (UK) Pension Scheme which may be changed from time to time to the extentpermitted by the Trust Deed and Rules.1.12.2 The HSBC Bank (UK) Pension Scheme - Defined Benefit SectionThe Defined Benefit Section ("DBS Scheme") is applicable to most employees in servicebefore 1 July 1996.The DBS Scheme is based on your final salary and pensionable service accrued during yourmembership of the DBS Scheme. The DBS Scheme provides:oooa pension on retirement;an ill-health pension (if you have five years membership and are unable to continue inemployment because of serious ill-health); andsecurity for your dependants:-• a lump sum of four times your final pensionable salary (unless you elected adifferent level of benefit through My Choice), payable through the Group’sseparate Life Assurance Scheme) if you die in service;• a spouse's or civil partner’s pension;• a qualifying children's allowance.The DBS Scheme is contracted-out of the state second pension (S2P) which replaced theState Earnings Related Pension Scheme (SERPS) in April 2002.Further details about the DBS Scheme, including the DBS Member Guide and details of theDBS Scheme Administration Team are available on the DBS Scheme Intranet Site(www.futurefocus.staff.hsbc.co.uk/dcs/).Important points to note are:From 1 July 2009 if you chose to pay member contributions (commencing withpayments of 1% pa with effect from 1 July 2009 and increasing by 1% pa up to amaximum of 5% pa) you will build up pension benefits at your existing accrualrate (for most members this is a rate of 1/60 th of your final pensionable salary foreach year of pensionable service).If you chose to pay member contributions, you will have the additional option(effective from 1 April 2010) of making an additional 3% contribution to retain theage at which you can currently take an unreduced pension before the age of 65.From 1 July 2009 if you chose not to contribute your future benefits will build upat a lower rate of 1/80 th .Completion of the Expression of Wish form and/or Specified DependantsNomination Form can assist the Trustee when making payments in the event ofyour death.The DBS Scheme is contracted-out of the state second pension (S2P) whichreplaced the State Earnings Related Pension Scheme (SERPS) in April 2002.Employees who joined the DBS before 1 January 1975 have the option to retireand draw their pension from age 55, (with provision for a reduction of part of the

pension in some cases) subject to providing notice to the bank in accordancewith their contract of employment.Ill-health pensions are based upon your actual period of pensionable serviceaccrued to the date of actual retirement. For members of certain sections of theScheme this may be further enhanced at the discretion of the Trustee.You are eligible to pay additional voluntary contributions (AVCs) through the DSCrange of funds to increase your benefits payable from retirement.Further details about the options available to you can be viewed in the online Benefits Guidein My Choice on the My Reward Centre site www.myreward.staff.hsbc.co.uk or by contactingMy Reward Centre on 0845 603 3133.You can also contact the DBS Scheme Administration Team by phone on 01737 227570(external company Towers Watson); email hsbcdbs@towerswatson.com or by post.The pension benefits detailed in the handbook are subject to the Trust Deed and Rules of theHSBC Bank (UK) Pension Scheme which may be changed from time to time to the extentpermitted by the Trust Deed and Rules.1.12.3 Salesforce Bonus Pension SchemeCertain Salesforce employees may be eligible to participate in the Salesforce Bonus PensionScheme under which the bank will make contributions in respect of bonus earnings. Furtherdetails are set out in your offer letter or are available from HSBC Actuaries and ConsultantsLimited who you can call on 7688 5318 (Internal) or 01727 885318 (External).1.13 Standards of ConductBanking is a business based on the utmost integrity and mutual trust. In order to maintain andsafeguard the trust and confidence of our customers and the public, the bank placesparamount importance on the maintenance of certain standards of conduct. The bank’sstandards of conduct are principally made up of certain rules, regulations and ethicalprinciples. These are set out in sections 1-3 of the Handbook and it is essential that youfamiliarise yourself with the content of the Handbook and observe the bank’s standards ofconduct. In addition other specific rules and regulations may apply in your place of work andwill be brought to your attention during your employment.Due to the need for integrity and trust in our business and the rapidly developing nature of thebusiness, it is not possible to set out standards of conduct in every situation. You should seekguidance from your line manager should you be in any doubt about the correct action to takein any situation.A failure to abide by the standards of conduct may lead to disciplinary action being taken,including dismissal.1.14 ConfidentialityYou must from the date of the commencement of your employment and thereafter, observestrict confidentiality in respect of any and all information held by the bank, including dealings,transactions, procedures, policies, decisions, systems and other matters of a confidentialnature of and concerning the bank, the HSBC Group and allied or associated companies ofthe bank or Group (all such subsidiary and other companies being referred to as “theCompanies”). Such confidentiality relates to any and all transactions (including, but not limitedto the state of any account and matters relating to customers’ or clients’ business or personalaffairs) of the bank or the Group and of each of the Companies with their respectivecustomers, clients, suppliers or associates, except when required or authorised to disclosesuch information by the bank or by law.

You should be aware that any breaches of the above, including the unauthorised "browsing"of accounts, is likely to lead to disciplinary action and may result in dismissal for grossmisconduct.Disclosure of customers' or clients' business or personal affairs is not permitted without thecustomers’ or clients’ authority. This is a requirement of bankers' confidentiality, the BankingCode, and the Data Protection Act 1998. Any contravention may lead to action under thedisciplinary procedures, as well as individual liability under data protection legislation.If you are approached by any third party, in particular any media source, and asked to makeany comments or provide any information to such persons, under no circumstances shouldyou respond without having sought permission and guidance from your line manager who,where appropriate and necessary, will seek permission and guidance from Group CorporateAffairs. Guidelines on regulations and procedures regarding the handling of informationrelating to customers, clients and employees are set out in the HR Procedures Manual (DataProtection - use, retention and disclosure of personal data; and Data Protection - regulationsfor staff files), which is available on the bank's intranet.Nothing in this clause prevents you from making a protected disclosure under the bank’swhistle-blowing procedure, in respect of any malpractice or unlawful conduct. Further detailson the bank’s whistle-blowing policy are set out at paragraph 3.9 of this Handbook or areavailable in the HR Procedures Manual (Whistle blowing), which is available on the bank'sintranet.1.15 Inventions and Other Intellectual PropertyYou may make inventions or create other intellectual property during your employment. In thisrespect you have a special responsibility to further the interests of the bank and the HSBCGroup given your position at the bank and the remuneration paid to you under your contractof employment.In recognition of your position, remuneration and responsibility, you acknowledge and agreethat any invention, improvement design, process, information, copyright work, trade mark,trade name or get-up or any other intellectual property (together the “Intellectual Property”)made, created or discovered by you during your employment (whether capable of beingpatented or registered or not) in conjunction with or in any way affecting or relating to thebusiness of any company in the Group or capable of being used or adapted for use in such acompany or in connection therewith shall be immediately disclosed to the bank and shallbelong to and be the absolute property of the bank or such member of the Group as the bankmay direct.However, the above clause shall only apply to the extent that any invention was made by youin the course of your Duties and (i) such invention was reasonably expected to resulttherefrom; or (ii) at the time of making the invention, because of the nature of your Duties andthe particular responsibilities arising therefrom, you have a special obligation to further theinterests of the bank. For the purpose of this clause ‘Duties’ means in the course of yourduties or in the course of duties falling outside your normal duties but which have beenspecifically assigned to you.You acknowledge that you have no rights, interest or claims, either during your employmentor after the termination of your employment, in or to any such Intellectual Property and youshall not use such Intellectual Property other than during the period of your employment andfor the purpose of the bank or the Group.If and whenever required to do so by the bank, (whether during your employment or after itstermination), you shall at the expense of the bank or such Group company as the bank maydirect:

apply or join with the bank or such Group company in applying for letters patent orother protection or registration in the United Kingdom and in any other part of theworld for any such Intellectual Property; andexecute and do all instruments and things necessary for vesting the said letterspatent or other protection or registration when obtained and all right title and interestto and in the same absolutely and as sole beneficial owner in the bank or such Groupcompany or in such other person as the bank may specify.You agree that you irrevocably and unconditionally waive all rights under Chapter IV of theCopyrights, Designs and Patents Act 1988 in connection with your authorship of any existingor future copyright work, in whatever part of the world such rights may be enforceable.Nothing in this clause shall be construed as restricting your rights or those of the bank underthe Patents Act 1977 and in particular, sections 39 to 43 Patents Act 1977.The above clauses are specific to the laws applicable in the United Kingdom.1.16 Employee RecordsIn accordance with data protection legislation, it is important that the bank's confidentialpersonal records are maintained as accurately as possible. You must record any change inyour personal circumstances (such as a change of your name, address or marital status) inthe way set out in the Human Resources Procedures Manual (Personal detail change), whichis available on the bank’s intranet.Employees in a position regulated by the Financial Services Authority must also ensure thatany adverse change in their credit or other status is notified to their line manager, as this mayaffect their standing with the Financial Services Authority.1.17.1 Termination of Employment by the BankEmployees are entitled to a minimum notice period of termination from the bank, as set outbelow, or to any such longer period as may be statutorily required, unless your employment isterminated summarily on the grounds of gross misconduct.The bank's notice may be handed to you personally or sent to your last recorded address.Notice periods applicable when the bank terminates your contract of employment arecurrently as follows:(i) Clerical Grades and Management Bands up to and including GCB4 and all RegulatedSalesforce grades.ServiceDuring the first five years of continuous employment:After 5 years of continuous employment and up to 12years of continuous employment:Minimum Notice:One calendar monthOne week per completed year ofcontinuous employment12 or more years of continuous employment: 12 weeksIf, however, your employment ends on grounds of redundancy you will be entitled to anyperiod of notice which may apply at the time of the redundancy under any security ofemployment agreement with any trade union or other such representative body.(ii) Bands GCB3 and aboveThe bank will give you at least six calendar months' notice.

1.17.2 Termination of Employment by You(i) Clerical Grades and Management Bands up to and including GCB4 and all RegulatedSalesforce grades.Unless otherwise agreed, you are required to give the bank at least one calendar month'snotice in writing, which you must ensure is received by your line manager before the noticebegins to run.Verbal resignations will not be accepted.(ii) Bands GCB3 and above.Unless otherwise agreed, you are required to give the bank at least three calendar months'notice in writing, which you must ensure is received by your line manager before the noticebegins to run.Verbal resignations will not be accepted.1.17.3 Garden LeaveThis paragraph applies to any notice period, regardless of whether notice was given by you,or by the bank.The bank shall be under no obligation to provide you with any work and may at any timerequire you to stop carrying out your duties and to no longer attend your place of work (oftenknown as ‘garden leave’) or contact any employees, offices, officers, customers or clients ofthe bank for the duration of the notice period. Alternatively, the bank may provide you withwork of a different nature to that which you would normally perform under your contract ofemployment, and at a different location, during your notice period.During any such period you will continue to be bound by the terms and conditions of yourcontract of employment and you will receive pay and most benefits in the normal way. Youwill not accrue any incentive payment in respect of any period when you are not required tocarry out your duties and attend work and any commission will only be paid in respect ofcredits already earned.If you have any accrued, but untaken leave, you will be deemed to have taken this during anysuch period when you are not in attendance at work, provided that you are not carrying outany work on behalf of the bank during such a period.1.18 Return of PropertyOn the termination of your employment for whatever reason, or at any time at the bank'srequest, you must immediately deliver to the bank, or to anyone specified by the bank, anyand all books, documents, records, computer hardware and software and other disks or tapeskept or made by you and in your possession or control relating to the bank’s business, yourcomputer, mobile, blackberry, any materials, credit cards, keys, passes, cars, equipment orother property (including any copies, drafts, extracts, summaries or reproductions of suchproperty) belonging to or related to the business of the bank, or any other company within theHSBC Group, its or their clients, customers or suppliers and you must not retain any otherdocumentation or property of the bank, or the HSBC Group, in your possession or control.1.19 Competition Obligations1.19.1 Confidential InformationFollowing termination of your employment, you will continue to be bound by your obligationsof confidentiality, as set out in 1.14. In particular, you shall not divulge, use, or in any otherway cause to enter into the possession of a third party, any lists or details of customers, orproducts, or any item of confidential information, or knowledge that was gained by virtue of

your employment, or in respect of which the bank or any company in the HSBC Group isbound by an obligation of confidence to a third party.1.19.2 Restrictive CovenantsIf you are a senior management band employee (being GCB3 and above), the followingadditional obligations apply:(i) For a period of six months commencing with the date of the termination of youremployment (the “Relevant Period”) with the bank you will not, whether on your own behalf orwith or on behalf of any other person, company, firm or other organisation, directly orindirectly, whether by yourself, by your employees or agents or otherwise howsoever,approach, solicit, canvass, or advise, sell to or offer to sell to, or interfere with or endeavour toentice away, or cause to be approached, solicited, canvassed, advised, sold to or offer to besold to, or interfered with or enticed away from the bank for the purpose of offering orperforming banking or related financial services to any customer or client or potentialcustomer or client of the bank with whom you have had personal contact in respect of offeringor performing banking or related financial services – whether by way of a meeting, telephone,letter or otherwise – during the period of six months immediately preceding the date oftermination of your employment.(ii) During your employment and for the Relevant Period commencing with the date of thetermination of your employment either on your own account or with or for any other person,firm, company or organisation, you will not directly or indirectly, whether by yourself, by youremployees or agents or otherwise howsoever, approach, solicit, canvass, or advise, sell to oroffer to sell to, or interfere with or endeavour to entice away, or cause to be approached,solicited, canvassed, advised, sold to or offer to be sold to, or interfered with or enticed awayfrom the bank, any employee of the bank or HSBC Group of band GCB5 or above with whomyou have worked in the previous six months or, in the case of termination, in the six monthsprior to your termination, for the purpose of enticing the employee away from the bank ordiscouraging the employee from being employed by the bank or the Group company.(iii)The restrictions set out at clauses 1.19.2 (i and ii) shall only apply to banking or otherrelated financial services which are similar to or competing with the bank’s financial productsor services which were developed by you (or whose development was known to you), orwhich were offered for sale, or advised upon or serviced or supervised by you during the sixmonths prior to the termination of your employment. The restrictions shall not apply to thetaking out of financial services, in the ordinary course of usage, by you or your immediatefamily.(iv) The Relevant Period set out at clauses 1.19.2 (i and ii) shall be reduced by the period oftime (if any) that you are required by the bank not to undertake any active employment duties,prior to the termination of your employment (commonly known as ‘Garden leave’) as set out inclause 1.17.3.(v) You acknowledge that the duration, extent and application of each of these restrictions areno greater than is necessary for the protection of the legitimate interests of the bank and youagree having regard to the circumstances of your employment and duties that thosecovenants do not work unfairly or harshly upon you.(vi) Whilst these restrictions are accepted by all parties to be reasonable in all thecircumstances it is agreed that if any such restriction shall be judged to go beyond what isproperly considered reasonable in all the circumstances but would be adjudged to bereasonable if part or parts of the wording thereof were deleted then you agree that therestriction shall continue to apply save for the deletion of the offending part.(vii) Each of these sub-clauses shall be deemed to constitute a separate agreement with thebank, for the benefit of the HSBC Group.

(viii) You acknowledge that damages will not be an adequate remedy for any breach of therestrictions set out 1.19.2 (i and ii) and you shall not seek to resist an application for aninjunction in respect of any breach or threatened breach of any or all of the restrictions on thegrounds that there is an alternative adequate remedy in damages.Specific obligations apply to Salesforce employees on Regulated Salesforce Grades and areset out in your offer letter.1.20 Disciplinary1.20.1 Rules and ProcedureContravention of any of the terms of your contract of employment or the bank’s standards ofconduct, rules, regulations, compliance requirements and other rules which may apply to youis viewed most seriously and will normally result in disciplinary action (which could includedismissal) being taken under the bank's Disciplinary Procedures.The bank’s Disciplinary procedures - HSBC Bank plc are set out in the HR ProceduresManual, which are available from your line manager or on the bank intranet at your place ofwork.If you are dissatisfied with a disciplinary decision relating to you, then you can appeal to HRService Delivery (Employee Relations Team, HR Service Delivery, Mayfields Court, MaylandsAvenue, Hemel Hempstead Herts, HP2 4SE) or other person, as set out in the DisciplinaryProcedures. Such appeals will normally be held by a level of management above the levelresponsible for the decision. Full details of how to go about this and the steps that follow suchan application are set out in full in the Disciplinary Procedures.1.20.2 Disciplinary SanctionsWhere you have been the subject of disciplinary action under the Disciplinary Procedures andafter the procedure has been exhausted it is decided a disciplinary sanction, short ofdismissal, should be imposed, the bank may impose on you one or more of the followingsanctions:-(a) a disciplinary transfer to an alternative place of work;(b) a downgrading with reduction in pay;(c) forfeiture of pay; loss of a specified amount of pay related to an offence(s);(d) stoppage/postponement of your next pay award, either salary and/or incentive payment;(e) reduction in payeither in addition to or in replacement of any other disciplinary sanction which appearsappropriate to the particular circumstances.1.21 Grievance ProcedureIf you have a grievance related to your employment, you have a right to apply in writing forredress. Full details of how you should go about this, including the person to whom youshould apply, and how your grievance will be dealt with are set out in the bank’s grievanceprocedure. The Individual grievance procedures - HSBC Bank plc is set out in the HRProcedures Manual, which is available from your line manager or on the bank’s intranet atyour place of work.1.22 Variation and ChangesAny variations and changes to your individual terms and conditions of employment will benotified to you in writing within one month of the change(s), either by circular or via your paystatement.1.23 Collective Agreement and Employee Representation

1.23.1 Employee RepresentationThe bank currently has a collective agreement with Unite in respect of clerical grades. Mattersrelating to pay and conditions of service are subject to negotiation and/or consultation.If you are employed in a clerical grade, whether or not you are a member of Unite, from timeto time your terms and conditions will be subject to variation following negotiations and/orconsultations under this agreement, which will be notified to you by circular within one monthof the change.1.23.2 National Council of ManagersConsideration of issues relating to management band employees up to and including GCB4and Salesforce grades is currently through a National Council, representing business areasacross the bank. The Council is composed of elected representatives drawn from managersin the bands set out above, representatives elected by Unite managerial members, and theNational Secretary of Unite responsible for HSBC Bank plc issues.1.24 Rights of Third PartiesThe Contracts (Rights of Third Parties) Act 1999 allows persons (including companies) to gainrights under a contract, even if they are not a party to the contract, unless the contract statesotherwise.No person who is not a party to this contract has or shall have any rights under the Act toenforce any term of this contract. No consent of any third party shall be required under thatAct to terminate or change this contract.1.25 Definition of Group“HSBC Group” or the “Group” means, for the purpose of these terms and conditions, HSBCHoldings plc and any company that for the time being is a holding company of HSBCHoldings plc or a subsidiary of HSBC Holdings plc or a subsidiary of a holding company ofHSBC Holdings plc (and the terms subsidiary and holding company shall have the meaningsascribed thereto by sections 736 and 736A Companies Act 1985) and/or an associatedemployer of HSBC Holdings plc as defined in section 231 of the Employment Rights Act 1996.

2. Code of Business Ethics and Responsible Behaviour (‘TheCode’)Banking is a business founded on mutual trust and public confidence. These attributes haveto be earned and sustained over a long period by the successive generations of people whowork in the business and can be lost overnight by irresponsible or unethical behaviour. Thepurpose of this Code is to set out in some detail the enduring principles which havetraditionally been observed throughout the bank. They fall under three general principles -integrity, fidelity and self-respect - basic qualities which the bank expects of every employee.They also include certain corporate values to which the bank subscribes and which mustgovern our business ethics.These qualities are also reflected in the Core Standards of Behaviour which form part of theperformance measurement process. The Core Standards of Behaviour are set out at 2.5 ofthe Handbook.Whilst the Code is not contractual, it does form part of the general standards of conduct whichthe bank expects all employees to reach. Failure to abide by the Code may result indisciplinary action being taken against you, which could include dismissal.The Code (including the Core Standards of Behaviour) may be altered or modified from timeto time by notice to you or by circular.2.1 IntegrityIntegrity implies being fully worthy of the trust placed in us by our clients and employer bybeing honest, impartial and truthful. This means:Acting at all times in an honest and upright manner both in our corporate andpersonal dealings, recognising that our personal conduct may reflect on the bank.Scrupulously refraining from illegal, fraudulent, dishonest or unethical behaviour,particularly in relation to financial and/or business dealings.Never using confidential information for personal gain or abusing the trust placed inus by the bank and our customers.Avoiding conflict between self-interest and the interest of the employer or customer,and being ready and willing to disclose any potentially compromising or conflictingbusiness relationships or shareholdings.Ensuring that where the employment of relatives of existing employees is beingconsidered that the existing employee is not involved in the decision making processof recruitment, salary, promotion or retention. In addition, relatives should not beinvolved in the transacting, processing or auditing of the same activity. It is importantto ensure that there are no conflicts of interest in the roles of relatives.Observing rules for personal dealings in securities.Avoiding gifts, services or hospitality, on a scale which could be interpreted asaffecting integrity or the ability to exercise independent judgement. (See also therules at 3.6 of this Handbook)Declining secondary employment or offers of consultancies or directorships, exceptas may be provided for by your offer letter or expressly approved in advance inwriting by the bank. (See also the rules at 3.5 of this Handbook).2.2 FidelityFidelity in banking embraces duties of loyalty, confidentiality and citizenship in relation to theaffairs of the bank and our customers. This means:Promoting the good standing and name of the bank and defending it againstunwarranted criticism.Marketing by personal example, including normally conducting our banking andfinancial services needs through the bank.

Ensuring that any undertakings given are within our personal capacity and fullyhonoured.Safeguarding all the bank’s information and restricting access to any confidential orsensitive documents.Keeping our customers' business, financial and personal affairs confidential by notdisclosing information to third parties without their express consent, except whererequired by law or established banking practice.Taking care over our communications – oral, written or electronic – to prevent othersacquiring confidential information.Complying fully with the laws and regulations of all countries in which we do businessand with the published codes of relevant institutions.Not knowingly engaging in business which might in any way be associated with, orregarded as supportive of, illegal or criminal activities, construed as bribery orcorruption or, which would be contrary to the national interest of the United Kingdom.2.3 Self-RespectSelf-respect is enhanced by professionalism, good citizenship and conscientiousness. Thismeans:Maintaining your dignity and promoting that of fellow employees, by not bullying orvictimising colleagues for any reason and by promoting equal opportunities within thebank.Acquiring the necessary skills, knowledge and experience to conduct businessdealings or tasks in a professional manner and keeping abreast of currentdevelopments.Acting with the utmost courtesy at all times.Giving due consideration not just to the immediate financial effects of decisions butalso their wider implications.Avoiding practices which could make you vulnerable to financial difficulties or whichcould lead to malpractice e.g. gambling (except for very modest stakes).Seeking help and advice from colleagues where difficulties arise in matters ofprofessional judgement or conduct and adopting an approach of openness andteamwork.2.4 Corporate Values (in relation to personal conduct)These include:Not knowingly allowing the bank to place itself in a position where its duty to onecustomer or client conflicts with its duty to another.Ensuring that the provision of banking services (particularly where this may involvecredit facilities) to suppliers or potential suppliers of goods and services to the bank,is considered on a wholly objective basis and not tied to any form of reciprocalagreement.Observing the spirit and letter of regulatory requirements, recognising that theFinancial Services Authority exercises supervisory responsibility for the HSBC Groupas a whole and not just over its banking subsidiaries registered in the United Kingdom.Maintaining bank records and systems so that all transactions are recorded in anaccurate and prompt fashion and not falsifying records or obscuring, omitting ormisrepresenting facts in records or communications.Reporting to the appropriate internal level of authority any behaviour whichcontravenes the law, regulatory requirements, or the spirit of this Code.2.5 Core Standards of BehaviourThe HSBC Group has integrity, trust and excellent customer service at the heart of its values.Application of these in all that we do builds our reputation, unites us, sets us apart from thecompetition and ultimately makes us even more successful.

Active ListeningListens carefully to customers and colleagues giving them undivided attention andasking thoughtful questions to confirm facts.Is genuinely concerned about others and is ready to act in their best interests.UnderstandingGreeting customers, clients, and colleagues in a polite, friendly and personalisedmanner.Demonstrating a pleasant, enthusiastic, helpful manner when dealing with customers,clients, colleagues and other people whom we work with or who work in our premises.Communicating relevant information clearly and accurately.Treating all customers, clients, colleagues and other people whom we work with orwho work in our premises, with dignity and respect, ensuring that each receives thevery best service.Handling all customer, client and colleague enquiries, instructions and complaintspromptly, willingly, accurately and efficiently.Freedom to DeliverTaking pride in providing excellent customer service and personal responsibility forgetting things right first time.Positively challenging existing processes in order to improve the quality of serviceand remove the barriers that impede us from deepening our relationship withcustomers and clients.Adopting a 'can do' approach and taking appropriate action to meet the needs ofcustomers, clients and colleagues.IntegrityActing in an open and honest way, recognising that personal conduct reflects on thebank.Attending work regularly and punctually and being committed to the team effort.Actively promoting HSBC as a reputable organisation.Maintaining appropriate standards of responsible behaviour, dress and appearance.StraightforwardWelcoming feedback and readily apologising when mistakes have been made.Addressing all matters, particularly difficult issues, with frankness, facts and tact.Ensuring that all commitments given are achievable and fully honoured.Forward ThinkingDeveloping skills and knowledge required to do your current job well and improveyour own performance.Being adaptable and maintaining a positive approach to change.Thinking ahead and anticipating customers' and colleagues' needs.TeamworkSharing knowledge, best practice and experience to support colleagues in theachievement of their goals.Leading by example, contributing to team morale.Actively contributing to the overall team effort.

Treating all colleagues with dignity and respect.Placing team goals before own individual goals, if appropriate.

3. Rules and RegulationsWhilst the rules and regulations do not form part of your contractual terms and conditions ofemployment, they do form part of the general standards of conduct which the bank requiresall employees to maintain. Failure to abide by any of the rules and regulations may result indisciplinary action being taken against you, which could include dismissal.These rules and regulations may be altered or modified at any time by notice to you or bycircular.3.1 GeneralYou must not act at any time in any way which, in the opinion of the bank, might cause thebank to be brought into disrepute. You must at all times act with the utmost integrity andhonesty in all your personal and business dealings.You must report any known breaches of rules or regulations, including those by fellowemployees, to your line manager or another appropriate manager as soon as you becomeaware of them.3.2 Security and Fraud PreventionIn the interests of security, fraud prevention, your safety and customer service, the bankreserves the right to:Issue security passes, which may include a photographic image of you.Search any baggage carried by employees (including hand baggage and parcels ofany description) or vehicles entering or leaving bank premises.Carry out checks on your educational and professional background and undertakecriminal record and/or credit reference checks.Fraud prevention databases have been established for the purpose of allowingemployers to share data on their employment fraud cases. Should our investigationsidentify fraud or the commission of any criminal offence by you [on your part] whenapplying for, or during the course of your employment with us, we will record thedetails of this on the relevant fraud prevention databases. We and other organisationsmay also access this information to prevent fraud and money laundering.Where an employee has committed an act of dishonesty either in relation to Groupfunds or customer accounts then the act should be reported to the appropriateauthorities and support provided in relation to any prosecution. As appropriate,refunds of any misappropriated monies should be made to the customer. Notificationshould also be made to the Group’s insurers.Carry out telephone and CCTV monitoring in HSBC’s workplace; andMonitor the use of e-mail, the internet, voicemail and text messages sent to banktelephones (mobile or otherwise), which have either originated from or been receivedvia bank equipment.In addition, in the interests of security and fraud prevention, the bank reserves the right toinspect bank accounts and other facilities held by any employee.You should also be aware that any information or evidence gained from such monitoring maybe admitted as evidence in disciplinary situations. The bank will issue appropriate notificationshould any further monitoring be necessary in addition to the above.3.3 CommunicationsYou are expected at all times to maintain the highest standards of professionalism andintegrity in all that you do, including your communications with colleagues, customers, clientsand the public. These standards apply to communications that are verbal, written (e.g. memo,letter, report) and electronic (including, but not limited to fax, e-mail, mobile phone textmessages, telephone, voicemail or the internet). If sensitive or confidential information needs

to be sent by email to external parties it should only be transmitted using encryption becauseunencrypted data could be intercepted and used to commit fraud and/or to damage thereputation of the bank.3.4 Personal FinanceYou are expected at all times to conduct your personal finances in accordance with the bank'srules and conditions under which financial facilities are granted to you.You must not borrow money by overdrawing your bank account without prior authority. If youare in financial difficulty, you must consult Customer Credit Services or your account-holdingmanager for advice immediately.The rules and conditions under which financial facilities are granted to you by the bank fromany source are set out in appropriate application forms and/or will be provided to you at thetime the facilities are granted to you. All employee borrowing is subject to customer lendingcriteria.You must not borrow from, or lend money to, customers or other employees except in thecourse of authorised business.You must not gamble, except for very modest stakes, and must never put yourself in asituation where you are financially reliant upon the outcome of a bet or financial speculation.You must gain the prior agreement in writing of your General or Executive Manager if youwish to be a personal guarantor for any loan.3.5 Commitments Outside the Bank/Dual EmploymentYou must gain the prior agreement in writing of a senior manager if you wish to:take or continue with an additional job either inside or outside the bank;become or remain a director of a company;engage in any other business – this includes business activities undertaken bywhatever medium, including business interests in internet web sites; and/oract as an executor, or administrator, attorney or trustee (except for near relatives i.e.spouse, partner, mother, father, grandparent, brother, sister, child, grandchild).Permission will not be granted for you to take on any other role which could adversely affectyour job with the bank, for example, where it would mean you are unable to take proper restperiods as required by the Working Time Regulations 1998 or which would subject you to anactual or possible monetary liability. Further guidelines are provided in the HR ProceduresManual (Dual employment - commitments outside the group) which is available on the bank’sintranet.3.6 Receiving Gifts and BenefitsYou must not accept or give any gift, hospitality, or other personal benefit from or to any thirdparty which is likely to influence (or which other people may think likely to influence) yourjudgement or conflict with your duties to any customer or member of the HSBC Group.In circumstances where a refusal to accept a gift/hospitality/other personal benefit would beconsidered discourteous, or the gift/hospitality/other personal benefit offered or received is ofnominal value, is appropriate, will not conflict with your duties to the bank or customer, andcould not be construed as bribery, then certain rules apply. Full details of this policy can befound in the ‘Giving or receiving gifts, hospitality and other personal benefits’ section in theHR Procedures Manual.3.7 Diversity

3.7.1 The Central Role of DiversityDiversity is central to HSBC’s brand and we value the rich diversity, skills, abilities andcreative potential that people from differing backgrounds and experiences bring to theworkplace. Good practice in the implementation of customer and employee diversity policiessets us apart from our competitors and is crucial for business success. Every employee playsa vital role in providing quality service to all our customers and helping to create an inclusiveworking environment, where everyone can realise their full potential.3.7.2 Your ObligationsA key aspect of creating a diverse workplace and client base is the non-toleration of any formof discrimination in relation to sex, marital status, pregnancy, gender reassignment, race,colour, disability, sexual orientation, age, religion or other similar belief, ethnic or nationalorigin.The bank will also not tolerate any form of harassment, victimisation or bullying of any kind.Discrimination, harassment, victimisation and bullying are extremely serious violations of yourterms and conditions of employment. Any such behaviour is likely to lead to disciplinary actionand may result in your dismissal for gross misconduct.3.7.3 AssistanceFurther details are provided in the HR Procedures Manual (Diversity). In particular, if youbelieve you are the victim of any form of discrimination, harassment, victimisation or bullyingyou should follow the guidance and advice set out in the HR Procedures Manual (Diversity)which is available through the bank’s intranet, and you may also want to seek help from yourline manager or from Open Line, the bank’s confidential and free advice and informationservice.3.8 Compliance with Financial Services Regulations and Rules3.8.1 Compliance RiskYou must be fully aware of your responsibility to comply with applicable laws, rules and codesand to abide by all published compliance regulations including the bank's procedures forpersonal dealing in securities.US citizens & other US persons wherever located must also ensure that they comply with USDepartment of the Treasury's Office of Foreign Assets Control (OFAC) in relation to USsanctions imposed against certain countries on humanitarian or national security grounds.In addition, all branch managers and other managers at bands GCB5 and above have explicitresponsibility (which is reflected in their job description) to implement the Group CompliancePolicy by containing any compliance risk in conjunction with the relevant Compliancedepartment. The term “compliance” embraces all relevant laws, rules and codes with whichthe business has to comply.3.8.2 Operational RiskAll employees must ensure that they keep themselves abreast of changes to operatingprocedures and practices, advised legal and regulatory requirements and the impact of newtechnology as appropriate to their specific roles.In addition managers must continually reassess the operational risks inherent in the business,taking account of changing economic or market conditions, legal and regulatory requirements,operating procedures and practices, management restructurings, and the impact of newtechnology. Once identified, operational risks must be recorded in the Group OperationalRisk Database Online Network (GORDON) as described in the Operations FIM, andappropriate measures should be taken to minimise the bank's exposure to them.

This requirement is contained within managerial and staff job descriptions and, if appropriate,should be converted into a suitable performance objective for relevant individuals.All direct reports of the CEO and COO or equivalent, and, in turn, their direct reports mustcomplete a formal takeover process when moving to a new role to ensure and orderly anddocumented transfer of management responsibility. Any breaches of internal or externalrule/procedures/regulation/law identified during the takeover process must be detailed in areport submitted to the appropriate level of functional management which outlines the issuesand proposes an appropriate remediation plan.3.8.3 Consumer ProtectionThe main piece of legislation in the UK which provides protection to consumers is theFinancial Services and Markets Act 2000 (“FSMA”). The FSMA requires all firms in the UKundertaking “regulated activities” to be authorised by the Financial Services Authority (“FSA”)and some individuals to be individually registered as an “Approved Person”. The FSA setsout detailed rules with which all authorised firms and individuals must comply. These rulesmust be followed whenever a regulated activity is undertaken. Further information onregulated activities can be found in the Business Instruction Manual – Compliance, which isavailable on the bank’s intranet.Procedures which reflect regulatory requirements are also incorporated in office proceduresmanuals and circulars. Observance of the Group’s policies and procedures will ensure thatthe interests of customers, as well as the Group’s reputation, are protected and will minimisethe risk of penalties being imposed upon a Group company and/or upon an employee, whichcan arise from non-compliance. In particular, employees must comply with the requirementsof the Business Instruction Manual - Compliance and the Business Instruction Manual - DataProtection which can be accessed through the bank’s intranet site.As part of your job, you may be required to be registered as an Approved Person with theFSA by way of a formal agreement. If so, this will require you not only to abide by the FSA’sprinciples and rules but additionally to accept personal responsibility for certain actions underthe FSMA.3.8.4 Dealing Rules - UK Employee Dealing ProceduresPersonal dealing in securities by all employees is subject to specific procedures, which maybe amended from time to time, and which must be strictly observed at all times. If you are anew employee, a copy of the guidelines to employees will be made available to you when youcommence employment, and you should read them on receipt.If you wish to buy or sell securities (e.g. stocks and shares, but see the procedures for a fulllist of what is deemed to be a security) you must observe the UK Employee DealingProcedures. These set out procedures and conditions to ensure that employees' dealingscomply with the Group's policy, the Financial Services Authority regulations and the CriminalJustice Act 1993. It is very important for you to understand the implications of theseregulations.In particular, you should read carefully the restrictions which apply if you are in possession ofinside information. Dealing when in possession of such information, passing such informationto others or procuring others to deal while in possession of such information are criminaloffences under Part V of the Criminal Justice Act 1993. This is a complex piece of legislationand it is essential that the advice of your line manager is sought before dealing if you haveany doubt about the transaction.There are special rules for dealing in HSBC Group Securities which affect certain employees.A full copy of the UK Employee Dealing Procedures is contained in the Business InstructionManual – Compliance which is available on the bank’s intranet.

Failure to observe the UK Employee Dealing Procedures may result in disciplinary action,including dismissal, being taken against you. You may also be subject to criminal prosecution.3.8.5 Lending - Conflicts of InterestIf you are involved in recommending or approving any credit facility or counterparty limit for acustomer in which you or any connected person have a significant investment, you mustinform your line manager immediately in writing. Your line manager will need to be satisfiedthat the investment does not and will not influence approval of credit facilities or counterpartylimits and keep a note of these details.A "connected person" is defined in the Business Instruction Manual – Compliance (UKEmployee Dealing Procedures).A "significant investment" is defined as:any investment in an unlisted company or partnership;any other investment with a market value of £15,000 or more.Failure to comply with any of these requirements is likely to lead to disciplinary action andmay result in your dismissal for gross misconduct.3.8.6 Money Laundering DeterrenceYou must abide by all published money laundering rules, regulations and procedures'Money Laundering' is the name given to the process by which the identity of illegally obtainedmoney is changed so that it appears to have originated from a legitimate source. Banks andother financial institutions may be used unwittingly as intermediaries for the transfer or depositof funds derived from criminal activityCriminals and their associates use the financial system in order to hide the source andbeneficial ownership of money by making payments and transfers of funds from one accountto another, purchasing monetary instruments such as drafts and travellers cheques and usingsafe-deposit facilities to provide storage for bank notes. The process is also used in thefinancing of terrorism although the funds involved may not in themselves be the proceeds of acriminal act.The HSBC Group has developed and introduced a Money Laundering DeterrenceProgramme – Global Policy and Principles (GPPs) that generally reflects the anti-moneylaundering legislation in the UK. Each relevant business operation has introduced theappropriate internal procedures to ensure compliance with the GPPs and the local legislationwhere applicable.The following list is by no means comprehensive, but identifies some of the key aspects ofwhich everyone dealing with customers and clients should be aware:care should be taken to verify the identity of all new clients (including in somesituations those non-customers for whom business is occasionally undertaken) andthe ownership of all accounts properly establishedbe alert to unusual or large transactions which may give rise to suspicionsif you become suspicious that funds held on an account or transactions undertakenare related to criminal activity, you must report the matter to the Money LaunderingReporting Officer (“MLRO”) in accordance with local reporting requirements. Failureto report suspicions or failure to report where there are reasonable grounds forsuspicion may lead to action being taken against you under the bank's procedure forgross misconduct.

Within some jurisdictions (including the UK) local legislation imposes severe penalties onindividuals (including possible imprisonment) on conviction of offences detailed under locallaw. All employees must therefore be constantly alert to their responsibilities and the risks towhich they are exposed. The existing anti-money laundering legislation in the UK placespersonal responsibilities on all employees and provides that you are committing an offence ifyou:know or suspect, or have reasonable grounds to know or suspect, that anotherperson is engaged in money laundering and do not report your knowledge orsuspicion; and/orreveal in any way to a person (customer, non-customer or employee) that they arethe subject of a report or an investigation.Further details are provided in the Business Instruction Manual – Compliance which isavailable on the bank’s intranet or can be obtained from the Money Laundering team on 79917312 (Internal) or 020 79917312 (External).You must be fully aware of your responsibility to comply with applicable laws, rules and codesand to abide by all published compliance regulations including the bank's procedures forpersonal dealing in securities.3.9 Whistle-BlowingThe Public Interest Disclosure Act 1998 and the US Sarbanes-Oxley Act 2002 are designedto provide employees, and other persons such as agency temps, with a procedure to disclosegenuine concerns, which seem to involve unlawful conduct or financial malpractice, and toprotect them from victimisation when making disclosures. This is why such disclosures areknown as ‘protected disclosures’. The disclosure of wrongdoings within an organisation iscommonly known as 'whistle-blowing'.One of the bank's key business values is to be a fair and objective employer and so it hasdeveloped a procedure, in line with the above Acts, to help you raise any concerns aboutwrongdoings at work. Under the bank’s procedure the following are protected disclosures:1. Breaches of legal and regulatory requirements by any Group company, including thecommittal of a criminal offence, a miscarriage of justice or a failure to comply with alegal obligation.2. Failure to adopt policies consistent with the Group Standards Manual.3. Fraud or deliberate error in the preparation, evaluation, review or audit of anyfinancial statement.4. Fraud or deliberate error in the recording and maintaining of financial records of anyGroup company.5. Deficiencies in or non-compliance with any Group company’s internal accountingcontrols.6. Deviation from full and fair reporting of any Group company’s financial condition.7. Misrepresentation or false statement to or by a Group Executive Officer orAccountant regarding a matter contained in the financial reports or audit of any Groupcompany.You can make a protected disclosure by reporting the matter to your line manager or HumanResources. However, any disclosures falling within categories 2-7 must, due to our legalobligations, be reported to Group Compliance. If you feel unable to raise the matter with yourline manager, or Human Resources, for whatever reason, you should call the GroupCompliance telephone 'hotline' on 799 12155 (Internal) or 020 7991 2155 (External).Alternatively, you may send an email to: compliancedisclosureline@hsbc.com or make aprotected disclosure in writing, to the Head of Group Compliance, HSBC Holdings plc, Level42, 8 Canada Square, London, E14 5HQ.

However, if your concern relates to your personal position, rather than a concern aboutmalpractice, it will normally be more appropriate for you to use the bank’s Individual grievanceprocedures - HSBC Bank plc, which is set out in the HR Procedure Manual and can beaccessed through the bank’s intranet.Full details of the ‘Whistle-blowing’ procedure, along with the HSBC Group’s general policy ondisclosure, are contained in the HR Procedures Manual.3.10 Data Protection3.10.1 Personal Data and Sensitive DataThe type of personal data that we hold will include information relating to payroll processing,references, family and other contact details and records (including, for example, jobapplications, and when relevant, details of any grievance and disciplinary procedures) relatingto your recruitment and career with us.We will only collect and process data in a fair and lawful manner. Sensitive data will only beprocessed with your agreement, unless required to meet statutory obligations. The types ofsensitive data we hold about you may comprise of:(i) Information about your health, which would be used to ensure compliance:with health and safety and occupational health obligations;when considering any health issues that may affect your ability to work;if you are disabled;should you require time off work or special arrangements to look after a familymember or friend, we may keep a record of such absences;for administration and management of insurance, pension, sick pay and other similarbenefits.(ii) Recording racial or ethnic origin or religious beliefs. This data is held to fulfil our statutoryobligations to ensure equality of opportunity at work.(iii) Information for security, fraud prevention, and regulatory purposes. We may in the courseof your recruitment and periodically during your career undertake appropriate security andcredit reference checks.In some instances we may be required by law to provide certain information to a third party,such as the HM Revenue & Customs, governmental or non-governmental regulatory bodies.Information may also be exchanged with other members of the HSBC Group for purposesconnected with your career, and for audit requirements. Information may also be processedon our behalf by members of the HSBC Group, and/or third parties. However, whether or notsuch information is processed outside the European Economic Area (where there may beless stringent data protection laws) it will be protected by a strict code of secrecy and securityand will only be used in accordance with our instructions. If your personal data is transferredor held overseas, we will ensure your rights as an individual are protected.In order to give you information about products and services we provide together withproducts supplied by selected third parties, we may use, analyse and assess information thatis held about you. We may pass information to other members of the HSBC Group so thatthey may do the same, but your name and address will not be disclosed for marketingpurposes unless you have given your consent.Under Data Protection legislation, you can ask in writing for a copy of certain personal recordswe currently hold about you. A charge of £10 will be made.

3.10.2 Employees' ResponsibilitiesUnder the Data Protection Act 1998 all employees have a responsibility to ensure that theirown personal data is accurate, up-to-date and kept secure. Unauthorised disclosure of thirdparty personal data is a serious offence and can result in prosecution. Therefore you mustensure that you:do not disclose any individual’s personal data without authority;do not treat personal data carelessly;lock all data (including disks, tapes, paper printouts etc) away when not in use;do not disclose your computer password to any unauthorised person;only use personal data for the lawful purposes for which the bank has beenregistered;do not write personalised or derogatory comments about a customer, client,colleague or any other third party.Guidelines on regulations and procedures regarding the handling of information relating tocustomers and employees is set out in the HR Procedures Manual (Data Protection - use,retention and disclosure of personal data and Data protection regulations for staff files), whichis available on the bank’s intranet.3.11 Use of Information TechnologyYou must strictly observe the bank's rules in relation to information technology. In particularyou must:conform with any security measures which are in place to protect the bank's dataand/or computer equipment and access control;exercise proper control over passwords, Personal Identification Numbers or any othersecurity mechanisms, and ensure that any information technology resources whichare in your control (such as access to a computer, laptop, mobile phone, blackberry)are kept secure and safe at all times;lock all devices when not in use;erase all information when it is no longer required to ensure it cannot be recoveredmaliciously. This includes physically destroying any CD and DVD media that cannotbe erased;observe any rules, regulations, codes or internal procedures which are in place withregard to the use of the bank’s equipment including mobile phones, 2 way pagers,blackberrys and PDAs (whether for business or personal use);ensure that guests, visitors and contractors are aware of the bank’s policies regardingthe use of the bank’s equipment.be vigilant and report any contravention of the bank’s Security Guidelines to seniormanagement or to IT Security on 790 27969.You must not:install or use unauthorised software on bank equipment either on or off bankpremises;use unauthorised computer equipment to process the bank's data;make unauthorised copies of software;enter systems without proper authority;access or attempt to access any data maintained on any of the Group computersystems, which you are not specifically authorised to access;access customer or employee records without a specific business need or operationalreason;effect changes or make transactions on your own account or any account with whichyou are associated;take photographs or video images in any bank premises, using any kind of equipment(including mobile phone cameras) without the prior permission of senior managementor security management;

connect (physically or by any type of wireless) any unauthorised device to the bank’scomputer systems or networks. No personal data storage device is to be attached tothe bank’s systems without prior management approval and without ensuring that theappropriate security controls for data storage are applied (A personal data storagedevice is defined as any non bank owned device that has the capability to have datatransferred and stored on it);take photographs that infringe personal privacy or customer or client confidentiality(for example on special occasions, at award ceremonies etc), or that compromise thesecurity of employees, customers, clients, premises and equipment;use mobile phones in areas such as computer rooms, network rooms and tradingfloors where their use may cause distraction or a breach of security or complianceregulations. Relevant business specific or local instructions should be followed.Digital recording devices such as floppy discs, CDs and DVDs should only be used to storebank and/or Group information if there is no other alternative. Devices of this type arevulnerable to compromise and can be easily read. You must consider carefully the risks ofstoring sensitive information on mobile recording devices and the potential danger to the bankif the information is lost. As a matter of course, if documents are being physically transported,they should be password protected. If in any doubt, err on the side of caution and do not usethese devices until you have spoken to your line manager for advice.Mobile recording devices should never hold the only copy of information stored. Another copymust always exist on a bank owned computer to provide contingency.In all circumstances local management may restrict use of these devices further if it isdeemed appropriate and in the interests of the security of the bank and/or Group’s informationand the protection of employees, customers and clients.Unauthorised software comprises any software that is not on the Group's IT list of approvedsoftware or which has not been procured via the Purchasing Department (or futureequivalent) and includes any unsolicited software, demonstration software that has not beenpreviously checked by Group IT Security and any software that is delivered in such a way thatit may have been tampered with.You are required to act in accordance with the bank's policies and guidelines on the securityof information and the use of information technology at all times. Security Guidelines on theregulations and procedures regarding information technology are encapsulated in thedocument entitled Group IT Security Standards which is available on the Group IT intranetunder IT Security, Group IT Security Awareness.The policy explaining the appropriate use of Group e-mail systems and the Internet, and alsowhat is inappropriate use, is contained in the HR Procedures Manual (Internet, email andcompany mobile phones), which is available on the bank’s intranet and in the Security andFraud Functional Instruction Manual. You should note that the bank may monitor the contentof emails and other electronic messages sent from its property. The bank will also monitorInternet use and content when using the internet.Failure to comply with any of these requirements and, in particular, the use of unauthorisedsoftware on Group equipment is an extremely serious violation of your terms and conditionsof employment. Any such failure is likely to lead to disciplinary action and may result in yourdismissal for gross misconduct.3.12 Health, Safety and FireThe bank attaches the greatest importance to the health, safety and welfare of its employeesat work. Every effort is made to provide safe working conditions and to prevent fire or otherdamage.

However, no safety policy is likely to be successful unless it has the co-operation of allemployees. Everyone should do everything possible to prevent injury to themselves or others.The Health and Safety at Work Act 1974 and subsequent regulations place the duty on everyemployee, while at work, to:take reasonable care for the health and safety of themselves and others; andco-operate with the employer in meeting the duties and requirements of the relevantstatutory provision.As an employee of the bank, you have a personal responsibility to take care of yourself andothers and to avoid placing yourself or others in a situation that is hazardous or a risk tohealth.You must also ensure that you are familiar with all bank emergency procedures, includingactions to take on discovery of a fire, bomb or other hazard. If you are unsure about orunfamiliar with the bank’s emergency procedures you must speak to your line manager. Asyour employer, the bank has a duty to the health, safety and welfare of all employees.In addition, an incident may require you to exit your place of work at short notice or anincident may occur, preventing access to your place of work. In these circumstances youneed to be aware of the number to telephone to receive updated information and to reportyour safety (employees based in Headquarters: 08000 322722; employee based elsewhere:0800 731 3575) and which web sites will provide you with information (http://www.hsbc.com/).These responsibilities, together with procedural arrangements, are detailed in the BusinessInstruction Manual (BIM) – Health, Safety and Fire, which is available through the bank’sintranet under Branch Procedures Manuals.The specific objectives of the bank's Health, Safety and Fire Policy are to:promote a healthy and safe working environment;ensure each employee accepts health and safety as a major part of their individualresponsibilities;identify health, safety and fire hazards in advance, and control the risks; andensure all legal requirements are satisfied.A Central Safety Committee consisting of representatives of the bank, Unite and the NationalCouncil of Managers meets at regular intervals to discuss health, safety and fire issues, andexchange information and resolve problems.Unite representatives in the workplace (known as Joint Accredited Office Representatives)are recognised by the bank and Unite as Health and Safety Representatives, as definedunder legislation within an area of representation jointly agreed. In this capacity, they mayinspect the workplace and advise management of their findings.Further details on health and safety, including information on first aiders and specific areas ofrisk, such as upper limb disorders and night workers are contained in the HR ProceduresManual.3.13 Circulars, Instructions and AuthorityKey communications about changes to procedures, rules, regulations and terms andconditions of employment will be detailed in a circular, which will be published on the bank’sintranet.You are required to read and observe all instructions applicable to you and all appropriatecirculars issued by the bank.

You are required to ensure that you act at all times within the authority granted to you by thebank.3.14 Dress and AppearanceWhether or not your job involves contact with the public, you are required to dress in a waythat the bank considers appropriate to the business situation. Account will be taken ofreligious and cultural norms. Styles that could offend normally accepted standards will not bepermitted.Dress and appearance requirements may be varied by local arrangement at your place ofwork. Any particular requirements will be brought to your attention during your employment.3.15 Alcohol and Drug MisuseAn employee who suspects they have a drug or alcohol dependency is actively encouraged toseek help through the bank’s Occupational Health Services or Open Line, a free andconfidential service which provides counselling and information to all bank employees. Detailson Open Line can be found on the bank's intranet under HR & Learning, Health & Family.In order to help the employee (and subject always to the employee’s permission),Occupational Health will usually need to liaise with the employee's line manager who willtherefore need to be advised in general terms as to the nature of the problem. Clinical detailsare not disclosed and remain confidential unless the individual gives written permission to thecontrary.Dependency is distinguished from cases where an employee might occasionally arrive atwork under the influence of alcohol or drugs. Such cases will be dealt with under normaldisciplinary procedures. Incapability at work caused by alcohol or drugs is treated as a veryserious matter and may result in your dismissal for gross misconduct.

4. Benefits and FacilitiesYou may be eligible to take advantage of certain benefits and facilities provided by the bankfrom time to time. Further information will be available at your place of work in respect of otherbenefits and facilities which may be available to you locally.The benefits set out in this section are only a summary. Full details and/or further informationon specific benefits can be obtained from the HR Procedures Manual and the Best Place toBank for Employees and the My Reward sites, which are available on the bank’s intranet.These benefits do not form part of your contract of employment. The introduction of SalarySacrifice for the flexible benefit scheme – My Choice – represents a change to your contractof employment. By making pension and/or flexible benefit scheme choices, you will bedeemed to have accepted the change in your contract of employment. All benefits andfacilities are subject to certain rules on eligibility and operation, which may change from timeto time.4.1 Beneficial Loans4.1.1 Personal LoansUnsecured personal loans at concessionary rates may be available in accordance with thelimit and terms which may be in force at the time.4.1.2 Season Ticket LoansInterest free season ticket loans, repayable via payroll deduction, may be available to you.Additional information is available in the HR Procedures Manual (Season ticket loan scheme),which can be accessed through the bank’s intranet.4.2 Charities4.2.1 Give as You EarnThrough this scheme, run in association with the Charities Aid Foundation, you can, viapayroll deduction, make tax free donations to charities of your choice. Your money can goeither direct to nominated charities, or you may be able to hold an account with the foundation,enabling you to donate in a flexible manner. Further details are available in the HRProcedures Manual (Charity scheme – Give as You Earn (GAYE)), which is available on thebank’s intranet.4.2.2 Pound for Pound SchemeThe bank will, subject to certain rules, match charitable funds raised through employee timegiven and fund raising events to a certain limit, per person per event per annum. For furtherinformation please see the Charity scheme - Pound for Pound (£ for £) section or telephoneInt 7991 0638/ DDI 0207 991 0638.4.2.3 ‘Keep the Change!’‘Keep the Change!’ is a simple and regular way to donate the odd pennies from your netsalary to six nominated charities each month. For example, if you earn £900.17 then bysigning up to ‘Keep the Change!’ you can donate the 17p to charity. If your salary varies eachmonth then the pennies donated may also vary. The maximum you give each month is 99p.Distribution costs are covered by the earned interest and therefore 100% of the moniesdonated will be received by the nominated charities. The donations will be received by thecharities within 30 days of receipt by the distribution company. Further details are available inthe HR Procedures Manual section Charity Scheme – Keep the Change!, which is availableon the bank’s intranet.

4.3 HSBC Childcare SchemeAll UK-based employees across the Group (except those based in the Offshore Islands) areeligible to join the HSBC childcare scheme. This scheme:• offers choice and flexibility to working parents.• Enables employees to take advantage of the tax and national insurance incentivesavailable to working parents.Parents can purchase electronic vouchers that can be used to pay for a variety of childcarefor children up to 16 years of age. The benefits of these ‘virtal’ vouchers are:• Their flexibility, as they can be used to pay for nursery care, childminders, nannies,au pairs, out of school clubs and holiday playschemes.• Tax and NI exemption on up to £55 per week per employee (or £243 per month) offees paid via salary sacrifice.4.3.1 The HSBC Childcare Scheme at a GlanceIndependentnurseryChild minderNanny/ aupairAfter schoolcareHolidayplayschemeRelativeYou can join the scheme, provided that your childcare provider is approved or registered,and the first £243 per employee per month spent on childcare via salary sacrifice will be taxand NI free.You can save up to £692 per year (basic rate tax payers) or up to £1195 per year (higher ratetax payers).You are notable to join thescheme if arelativeprovides allyour childcareMembership of the Scheme is subject to certain eligibility criteria and basic pay thresholds.For full details of the childcare scheme, please refer to the HR Procedures Manual (Childcareprovisions), which is available on the bank’s intranet.4.4 Open LineTo help employees manage personal or work difficulties, the bank offers all UK-basedemployees access to Open Line, a free and confidential counselling service. Open Lineprovides practical help and counselling on personal issues, such as bereavement, depressionand relationship problems. Help is also available with a wide range of work related difficulties,such as bullying and harassment, lack of confidence, work stress and role problems. OpenLine can also provide support when employees are experiencing stress in connection withmatters which are the subject of disciplinary or grievance investigations or proceedings.Telephone support is available 24 hours a day, 7 days a week. To make an appointment tosee or speak to a counsellor please call between 9.00 am – 5.00 pm Monday to Friday,Counselling appointments are available outside these times.The service can be contacted by telephone or in writing, and is open Monday to Friday 9 amto 5pm. Appointments for telephone or face-to-face counselling can be made during thesehours, or, by prior arrangement outside these hours. The telephone number is 08457 666 999,and the textphone for deaf employees is 08455 854054.

Please note that, if you work in an area where calls are routinely monitored (such as aCustomer Service Centre) you should ensure you use a non-monitored phone or a privatephone, to preserve your confidentiality.Further information on Open Line can be found on the bank's intranet under HR & Learning,Health & Family.4.5 Holiday FundWork locations may run such a scheme. Details are contained in the HR Procedures Manual(Staff holiday fund account), which is available through the bank’s intranet.4.6 HSBC Group Sports and Social ClubsThe Group has two sports and social clubs for use by employees and their families. In London,activities are centred in New Beckenham and in Sheffield at Dore.There is a wide range of sports and leisure facilities available at these centres as well as arowing club at Putney, London and sailing centres country-wide. There is also a fullyequipped gym and class studios, known as ‘The Fifth Dimension’ at the bank’s Headquarters.For information and an application form, call 7213 4366 (Internal, London) or 0208 919 4366(External, London); 7055 5681 (Internal, Sheffield) or 0114 260 5681 (External, Sheffield).4.7 Healthcare PlanManagement grade employees may be eligible for company funded membership of the HSBCGroup Healthcare plan. This provides cover for yourself and your immediate family (includingpartner and dependant children up to the end of the scheme year in which they achieve theage of 21) during your employment. Information will be provided automatically to you, whenyour information has been uploaded into My Choice on the My Reward Centre site.Employees not eligible for company funded membership of the HSBC Group Healthcare Planmay select this benefit in My Choice and pay for this through salary sacrifice.The scheme operates on terms and conditions which are in force at the present time and thebank reserves the right at any time to vary or withdraw the scale or level of benefits in force.4.8 Health AssessmentsManagers in certain bands may have a company funded health assessment through one ofthe BUPA Health Screening Centres.Employees not eligible for a company funded health assessment can select this benefit withinMy Choice and pay for this through salary sacrifice.Details including information on eligibility for a company funded health assessment andfrequency of screenings are set out in the HR Procedures Manual (Health Assessments),which is available on the bank’s intranet.4.9 Mortgage Subsidy SchemeThe Mortgage Subsidy Scheme is designed to encourage employees to take their mortgageborrowing with the bank. Currently a monthly subsidy payment will be paid with salary subjectto the rules of the scheme as they may exist from time to time.Details of the scheme including information on eligibility and rates are set out in the HRProcedures Manual (Mortgage subsidy scheme), which is available on the bank’s intranet.

4.10 Staff AccountsPreferential facilities, including rates of interest, may apply to staff accounts. Details areavailable from your branch and in the HR Procedures Manual (Staff accounts), which isavailable through the bank’s intranet.4.11 HSBC Corporate CardA HSBC Corporate Card must be used by all managers, and appropriate employees, whoincur business expenses on a regular basis. Such employees will pay for appropriatebusiness travel, accommodation, and entertainment items with an HSBC Corporate Card,where issued, and subsequently reclaim such expenses.The card is provided for business expenses only and must not be used for personalexpenditure or to make cash withdrawals other than for foreign currency required forincidental expenses during a business trip. Misuse of the Corporate Card may result indisciplinary action, which could result in dismissal.Details on the HSBC Corporate Card including information on eligibility and card limits are setout in the Expenses & Policy Procedures Manual, which is available via Lotus Notes.

5. Your Career With the BankSet out in this section are some of the main issues which may affect you during youremployment, together with an outline of the bank’s policies and procedures in respect of eachmatter. Further information on each issue, and many other issues which may be of interest orwhich may affect you during your employment, are available in the bank’s HR ProceduresManual, which can be accessed via the bank’s intranet.This section does not form part of your contractual terms and conditions of employment.5.1 Job MeasurementManagerial RolesThe HSBC Group has a standard job measurement process for determining the relative sizeor importance of management jobs at Global Career Bands (GCB) 0-6.The process measures the job, not the jobholder’s performance in the role and is used toposition new roles or to reposition existing roles where the accountabilities have significantlychanged.The process provides global consistency in how jobs are documented and measured, whichensures a fair comparison of jobs across the full range of businesses and functions andsupports the framework for establishing levels of fixed pay and selected benefits.Clerical RolesThe Hay system for measuring job size is used for clerical grades. It is a well known andeffective system and is widely used across a broad spectrum of organisations. Its use in theUK is endorsed by Unite, who participate in the clerical job measurement process, and it alsocomplies with current UK law by being free of inherent bias or discrimination.Further details of the processes and their application to your job are available in the HRProcedures Manual (Job Measurement – Clerical grades / Management Bands), which isavailable on the bank’s intranet.5.2 Employee Learning and Development - Investing in Your FutureThe bank is committed to creating a learning organisation that promotes and supportsindividual development and is the envy of other global companies. We recognise that superiorknowledge and skills of our employees are vital if we are to deliver a first class service to ourcustomers, continue to grow as a business and be better than our competitors. At the sametime, we want the bank to be a great place to work where employees have job satisfaction,grow with us and make a long-term commitment to stay with the bank.Whatever your personal learning and development goals are and regardless of your careeraspirations with the bank, we have a wide range of opportunities for career development.Opportunities include the weekly 'My Next Move' and local bulletins where role vacancieswithin the bank are advertised.Learning is most effective when it is enjoyable, made as accessible as possible, with you incontrol and conducted at your own pace. Our goal is to make learning and developmentsomething that everyone in the bank is passionate about. We know that when it comes tolearning, one size does not fit all and everyone is different – we all have different levels ofknowledge or experience and we all like to learn at different speeds and in different ways.“My Learning” is a learning management system. It is your personal link to a wealth oflearning opportunities. It is a single point of access for all learning activities and informationresources and a key part of the bank’s flexible learning approach. It improves the speed,quality and effectiveness of the learning process, providing greater opportunity for all

employees to take part in learning activities, regardless of current job role, future careeraspirations or location.5.2.1 Identifying Learning and Development NeedsLearning is developing new knowledge and skills and building on and improving the skills youalready have to enable you to gain more from your current role or to prepare for your next jobwith the bank. We want you to take control of your personal learning and development byidentifying your development needs and preparing your own learning and development plan.There are several resources to help you prepare your personal learning and developmentplan including the Group Capabilities Framework and the Career Development Review. Linksto these can easily be found on the HR and Learning pages on the bank’s intranet.The Group Capabilities Framework highlights the skills and actions that best support theGroup’s Managing for Growth strategy. It describes the bank’s corporate character andtranslates this into the qualities expected of all our employees, by defining the required skills,attitudes and behaviours.The Group Capabilities Framework and “My Learning” include explanations on how to access'My Next Move'.Managers of the bank in bands GCB5-GCB4 are able to utilise the Career DevelopmentReview. It provides an opportunity for such managers to reflect on strengths and developmentneeds, identify career goals and aspirations and plan the best way forward to achieve them.5.2.2 LearningThe Learning team has learning and development professionals who are responsible for awide range of learning activities, all of which are accessible through "My Learning". The teamliaise with business units to provide the best learning solutions throughout the bank and theHSBC Group. Your learning may be provided face to face at our premier Group ManagementTraining College in Hertfordshire, through personal coaching or with online, video and paperbasedlearning materials.If you are interested in finding out more about Learning or opportunities to join the teamplease visit UKi>HR and Learning>Learning.5.2.3 Professional and Technical QualificationsIf you would like to study for a specific professional or technical qualification, the bank may beable to provide assistance. Further information about the procedures involved can be found inthe HR Procedures Manual (Professional qualifications), available on the bank’s intranet.5.3 Employee Representation5.3.1 National CouncilConsideration of issues relating to management band employees up to and including GCB4 isachieved through a National Council, representing business areas across the bank. TheCouncil is composed of elected representatives drawn from managers in the above bands,representatives elected by managerial members, and the National Secretary of Uniteresponsible for HSBC issues. Further details can be obtained from your line manager or theHR Procedures Manual, which is available on the bank’s intranet.5.3.2 UniteUnite is the only recognised union for clerical grade employees within the bank. To furthergood industrial relations within the bank, Unite are provided with certain services and facilities.In most parts of the bank the services of a Jointly Accredited Office Representative (JAOR)are available and, in addition, there are a number of full-time 'Seconded Representatives'.

Should you wish to join Unite you should contact one of these or respond to Unite'scommunications, frequently circulated within the bank. Further information can be obtained atthe Unite website - http://www.unitetheunion.com or by telephone on DDI 020 7253 9642.5.4 Maternity & Other Family Related Policies & ProceduresWomen who take maternity leave and employees who take adoption leave are encouraged toreturn to work with the bank, and during your leave the bank will keep in regular touch withyou. A detailed 'Maternity Guide' is available to explain your entitlement and obligations andthe facilities to which you may be eligible.Full details on maternity and other family related policies and procedures can be found in theHR Procedures Manual on the bank’s intranet.In order to help you return and continue your career, the bank has a number of initiatives thatmay assist you. These include:childcare facilities to aid return to work (see section 4.3 of this Handbook);a priority returners scheme, which gives preference for re-entry to the bank to thosewho apply prior to leaving and who are eligible for the scheme, if exercised within fiveyears. Further details can be found in the HR Procedures Manual (Priority returnerscheme), which is available on the bank’s intranet;family leave provisions which recognise the needs of carers of a sick child or anelderly, disabled, or chronically sick relative or other close dependant and provide forup to five days' paid family leave, in an emergency, in any one year.a flexible working policy, which aims to increase flexible working and which exceedsstatutory requirements. See HR Procedures Manual (Flexible working) which isavailable on the bank’s intranet.The bank’s Childcare Scheme and Family Leave provisions are available to all employeeswith parental responsibility for children.Further details on these and other family related policies and the procedures you shouldfollow are set out in the HR Procedures Manual (Leave, Flexible working, and Childcareprovisions).5.5 Special LeaveYou may, at the bank's discretion, be granted special paid leave for reasons such as publicduties, Duke of Edinburgh's Award Scheme Adventure Training, bank sports activities, certainH.M. Forces or Auxiliary Forces activities, or on compassionate grounds. Such leave will notnormally exceed ten days in any one calendar year.Special unpaid leave may also be granted in exceptional circumstances, at the bank'sdiscretion. Application for such leave should be addressed, in the first instance, to yourimmediate line manager. Further details are set out in the HR Procedures Manual (Specialleave arrangements) which is available on the bank’s intranet.5.6 Support for Disabled EmployeesThe bank values the individual contribution of all employees, irrespective of any disability. Therecruitment, training, career development and promotion of all employees is based on theaptitudes and skills of the individuals. Consideration of disability issues is also integrated intothe business and there are a number of initiatives in place to support the bank’s commitmentto disability.5.6.1 Reasonable AdjustmentsMost disabled people do not need special equipment or adaptations, but sometimes provisionof these can help an employee to operate more effectively at work. The bank is committed tofinding the right solutions to meet the diverse needs of all employees and will makereasonable adjustments to ensure that everyone can compete on a level playing field.

The bank will cover the costs of reasonable adjustments required, although practicaladvice/financial support from "Access to work", run by the Employment Service, may besought on an as needed basis. "Access to work" provides a range of services, such asequipment and communicators, as well as operating a fares to work scheme.5.6.2 Rehabilitation PolicyWhen an employee becomes disabled, or an existing disability worsens, every effort is madeto retain the individual in employment. The Rehabilitation Policy is designed to assistmanagers and employees, through employment assessment and consultation.Further information on the support available and the process to follow is set out in the HRProcedures Manual (Employees with a disability, illness or condition), which is available onthe bank’s intranet.

6. Security of EmploymentThe bank seeks to provide security of employment for its employees by carefully planning theadoption or development of revised business practices and procedures. It aims to avoidredundancies through seeking alternative employment for surplus employees but recognisesthat circumstances may arise where employment cannot be maintained in this way. Themanner in which job reductions and, if necessary, redundancies are handled is set out in the'Security of Employment Policy (SEP)'. This is contained in the HR Procedures Manual,together with a document entitled 'Redeployment and redundancy - your questions answered'which contains a series of frequently asked questions in redundancy situations. Any suchpayment made under these arrangements includes and extinguishes any statutoryredundancy entitlement.For senior management employees, where their employment terminates on the grounds ofredundancy as defined in the Employment Rights Act 1996 section 139 (1), the bank willapply Appendix 1-4 of the Security of Employment Policy as appropriate. Any such paymentmade includes and extinguishes any statutory redundancy entitlement.An appeal against any decision regarding redundancy must be lodged with the EmployeeRelations Team, HR Service Delivery, Mayfields Court, Maylands Avenue, Hemel Hempstead,Herts HP2 4SE within three weeks of receipt of the letter formally advising of the decisionagainst which the appeal is being made.