General HR policies and procedures

Transparent working conditions are the starting point for building good relations with the staff. Therefore, the principles set out in the Code of Ethics in place at PGNiG S.A. and the PGNiG Group are of key importance. The values and standards of conduct enshrined in the Code highlight both the desirable and prohibited attitudes and behaviour. The HR area is also regulated through internal documents. In addition to the guidelines applicable to the entire PGNiG Group, PGNiG S.A. has in place internal regulations, including:

• Work rules – organisational work rules for employees, employee rights and obligations
• Remote work procedure – conditions for the performance of remote work, i.e. work performed outside the workplace via means of electronic communication, as well as the related rights and obligations of the parties to the employment relationship
• Remuneration rules – the terms of remuneration for work and the conditions for granting other work-related benefits
• Rules of the Company Social Benefits Fund – types of employee social benefits, detailed rules for awarding social benefits
• Recruitment procedure – description of recruitment and employment procedures for employees and persons performing work on the basis other than employment contracts
• Rules governing the conclusion of civil-law contracts at PGNiG S.A. – specifying the proper and lawful procedure for the conclusion of civil-law contracts to perform work (other than employment contracts) in the Company’s best interest
• Rules of the Employee Referral Programme – setting forth the rules of employing candidates under the Employee Referral Programme in place at the Company. The programme is designed to support the Company in recruiting, employing and retaining the best candidates interested in working at PGNiG S.A.
• Employment monitoring procedure
• Rules of promotion and change of employment terms and conditions
• Rules of the Performance Assessment System
• Rules of organisation of internships and work placements.

The PGNiG Group’s Policy on workplace kits granted to employees is one of the most important Group-wide documents. The regulations adopted under the Policy:

• Introduce Group-wide rules on defining a Workplace Kit to which an employee is entitled depending on their position,
• Rationalise and optimise expenditure on equipment and services employees need to perform their duties.

Remuneration-related matters are also governed by the Collective Bargaining Agreement executed with the trade unions pursuant to Art. 241 of the Polish Labour Code on July 15th 2009. The agreement specifies the key principles governing the provision of work under an employment contract, including working time and shifts, holiday leave, social benefits and the protection of working conditions. The rules adopted in the Collective Bargaining Agreement:

• Define the employment relationship between the employer and the employee, the contract execution rules, as well as the mandatory and optional components of a contract; Indicate the components which form an integral part of the contract, such as the job qualification sheet, job description, scope of duties or job instruction,
• Specify the conditions for terminating the contract and applicable notice periods, as well as the form of termination,
• Define the working time and which hours it covers, as well as the conditions prohibiting overtime work. At the same time, the document specifies the scope of application of an equivalent working time system and the breaks to which an employee is entitled within their working time. Furthermore, the agreement defines the circumstances in which overtime work is allowed,
• Streamlines the terms of using holiday leave and defines the number of holiday leave days for employees with both below and over 10 years of service. The document further defines the deadline by which the leave must be used. The agreement also defines the conditions under which the employer grants employees prevention and therapeutic holidays in a sanatorium.
• Further specify the terms of remuneration by laying down the rules for job classification into specific qualification levels.
• Define the terms and conditions for granting cash benefits in the form of length-of-service awards, severance payments upon the termination of employment, and other cash awards, such as the ‘St Barbara Day award’.
• Streamline the rules of establishing the Company Social Benefits Fund and organising group holidays for employees’ children, as well as of equipping workplaces taking into account the occupational health and safety regulations.

Acquiring new staff is also a vital element of the human resources policy. This area is governed by the Standard of Employee Selection and Recruitment at the PGNiG Group. The Standard aims to ensure hiring appropriately qualified staff, strengthen the internal labour market and consolidate the PGNiG Group’s image as a responsible and sought-after employer. The Standard sets out:

• Conditions for starting a recruitment process to find employees for existing or newly created job positions,
• Candidate selection rules envisaging internal and external sources of acquiring candidates,
• The tools to be used when selecting candidates, subject to the condition that the same terms must be used during a single recruitment process to maintain uniform verification,
• Rules for protection, processing and archiving of personal data.

The PGNiG Group companies manage the areas of quality, environmental protection as well as occupational health and safety on the basis of the Group-wide QHSE (Quality, Health, Safety, Environment) Policy. The QHSE Policy defines the goals and directions of the Group companies’ activities in those areas and embodies their commitment to meeting the requirements of continuous improvement of the effectiveness of of quality, environmental and occupational health and safety management systems. In the area of occupational health and safety, the Policy is also a declaration of proactive activities, eliminating or minimizing the risk of injury and occupational disease of employees. It provides guidance on how to ensure a safe workplace through Policy-based activities and measures. Its commitments under the Policy are fulfilled by PGNiG through:

• Building relationships and engaging in open dialogue with the business partners to enhance the safety of PGNiG employees, any other persons on PGNiG premises, and the local community,
• Identifying and ensuring compliance with applicable laws and other requirements,
• Implementing norms and standards that follow from good practices, and promoting safe solutions,
• Monitoring the work environment,
• Performing work in a safe, planned, organised and supervised manner,
• Identifying hazards and conducting job and workplace risk assessments;
• Applying state-of-the-art safeguards and process solutions designed to prevent accidents, mechanical failures and occupational diseases;
• Occupational and local risk assessment,
• Ensuring emergency and accident response resources and services, and taking immediate action after hazards are identified;
• Implementing corrective measures,
• Building a competent, well-informed and committed workforce.
• Promoting and implementing safety improvement and safe behaviour awareness programmes,
• Setting improvement goals,
• Ensuring the active participation of employees or their representatives and the use of consultation at all levels of management.

The PGNiG Group performs its tasks on a systemic basis, in accordance with the best standards, taking account of good industry practice. The tasks performed result from the commitments made by the Company’s Management Board in the QHSE Policy and from the need to implement and maintain the Company’s Quality, Environment, and OHS Management System.

All employees are subject to health and safety training in accordance with the established training plan, and they have access to extensive medical care. Each employee has been instructed about the occupational risk level at their workplace. Occupational health and safety training takes place regularly in accordance with the Regulation of the Minister of Economy and Labor of 27.07.2004 on training in the field of occupational health and safety, and their frequency depends on the position and the risks involved. Increasing the level of safety is also the subject of annual meetings organised by the Company’s Head Office, devoted to OHS conditions and experience sharing, and attended by representatives of external bodies, such as the National Labour Inspectorate.

PGNiG builds a safe work culture among employees, which translates into their correct behaviour, attitudes and actions. We undertake measures aimed at continuous improvement of safety of all persons staying on our premises, including visitors. New hires undergo initial OHS training, comprising basic and job-specific components.

Periodic training is held at regular intervals in accordance with the time periods set for individual positions, depending on the hazards present at the given position. In addition, each employee of the company and contractor performing work for PGNIG, as well as persons staying at the drilling rig site, undergoes induction QHSE training focusing on the hazards existing at the particular location.

Key initiatives and best practice in 2020 included:

• The ‘Safety Incidents Module” IT tool was deployed at PGNiG to record all safety incidents. The purpose is to report and analyse all unsafe situations, and to take action to prevent their future re-occurrence.
• Purchase of Bentec 2000 HP deep drilling rig by PGNiG. The unit comes with state-of-the-art systems to automate crew work and improve operational safety, including an automated drill string feeder system.
• Exalo Drilling equipped the Mechanical Workshop in Piła with mobile overhead travelling cranes to improve safety, organisation of work and working conditions of the crew.
• Exalo Drilling invested in a state-of-the-art Drillmec hydraulic system, which will automate operations and thus eliminate hazards at the most exposed workstations (derrickman, floorman). The cutting-edge technical solutions will also eliminate noise hazards.
• Geofizyka Toruń’s ‘Mission Zero’ Programme – designed to raise OHS awareness among employees and encourage them to identify hazards and assess risks prior to performing a task.
• Equipping PSG units in automatic external defibrillators (AEDs), including staff training in first aid involving the use of AEDs.
• Awareness-raising and information campaigns, such as: ‘Ergonomics at computer workstations’, ‘COVID-19’ – detailed information on safe behaviour and use of the required protections against viral infections, as well as recommendations of the Crisis Management Team, ‘Stay Safe on the Water’ awareness campaign, delivered by Group companies as part of internal communication, mostly using
• ‘Occupational Safety’ competitions and workshops at Geofizyka Toruń on the World Day for Safety and Health at Work.
• Termika continued the upgrade of the passive fire protection system of pipe-rack supports at the Lubiatów Oil and Gas Production Facility.
• Termika adapted its facilities to perform biomass testing, which will improve the safety of staff by reducing their exposure to the biological agent, and will drive down the related occupational risk.

Good practices and initiatives to improve occupational safety related to comabating the COVID-19 pandemic:

• Activities of the COVID-19 Crisis Management Team at the PGNiG Group, issuing ongoing recommendations and instructions regarding occupational safety for all Group entities and disseminating verified knowledge on how to combat the pandemic spread both during and after work.
• Placing automatic hand sanitiser dispensers in the main halls of the Group companies’ offices (also local units).
• Equipping the personnel with protective face masks and gloves.
• Temporary closure of certain facilities, including customer service points closed by PGNiG OD and PSG, depending on the unfolding epidemiological situation in Poland.
• Introducing hygienic restrictions at work (including occupancy limits for indoor spaces).
• Taking body temperature at the entrances into work establishments.
• Introducing restrictions for company canteens.
• Limiting business trips, training sessions, and business meetings.
• Signing a contract with a network of laboratories to perform screening and PCR tests.
• Regular communication to employees on how to stay safe during the pandemic.
• Offering a remote work option to office personnel and promoting it among the managers of units performing office work.