COMMUNICATION REGARDING REVISED TELKOM RECRUITMENT SERVICES PROCESS

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1 61 Oak Avenue, Highveld, Techno Park, Centurion 0157, Private Bag X148, Centurion March 2016 COMMUNICATION REGARDING REVISED TELKOM RECRUITMENT SERVICES PROCESS 1. BACKGROUND 1.1. Historically Telkom appointed a recruitment service provider panel which was contracted for a specified period. This panel would be used to source all Telkom s sourcing requirements. This presented limitations on business around recruiting the right candidate for job, if the candidate was not presented through an agency on the panel To address the business requirement we have changed the way we engage with our recruitment service providers. Effective 01 March 2016, Telkom will no longer have only specific Service Providers for sourcing of external candidates. Instead we will make positions available to any Placement Agency accepting our standard terms and conditions via our recruitment portal The positions advertised on our recruitment portal will be from entry levels up to Specialist and Management levels as well as people with disabilities (on any level) on a permanent or contractual basis This requirement is national with the majority of positions (90%) based in Gauteng. These specific services excludes Executive search The Supplier will be required to identify candidates and submit necessary documentation of suitable candidates to Telkom for permanent/contractual placements (including people with disabilities) The Telkom grading levels will be from entry level positions up to M4/S4 (Senior Manager/Specialist). On the Patterson system this up to D upper levels and on the Hay system this will be equal to a maximum of 734 points The terms and conditions will be as per Annexure A below and registration on the HR portal and submission of CV s in response to an advertised post will mean you have accepted our terms and the fixed placement fee. 1.8 For any questions/clarity on the above contact Carl Munnik at munnikcw@telkom.co.za or Nonhlanhla Lauretta Maselela at maselenl@telkom.co.za Telkom SA SOC Limited: Reg no 1991/005476/30. Directors: JA Mabuza (Chairman), SN Maseko (Group Chief Executive Officer), DJ Fredericks (Chief Financial Officer), S Botha, G Dempster, T Dingaan, N Kapila*, I Kgaboesele, K Kweyama, K Mzondeki, RN Njeke, F Petersen, R Tomlinson, LL Von Zeuner. Company Secretary: E Motlhamme *India

2 ANNEXURE A TERMS AND CONDITIONS FOR RECRUITMENT SERVICES IN THESE TERMS AND CONDITIONS, TELKOM SA SOC LIMITED IS TELKOM AND THE SUPPLIER SUPPLIER AND TOGETHER THE PARTIES. 1. TERMS These terms and conditions (Agreement) are applicable to the Services ( Services ) as set out in the below attached Appendix 1. Telkom do not accept and hereby reject any terms and/or conditions quoted or offered by Supplier. 2. THE SERVICES 2.1 Supplier will perform the Services specified in this Agreement and Appendix 1. Telkom will not incur any liability to the Supplier for any Services, including the obligation to pay, until Supplier has been provided with a valid purchase Agreement by Telkom in respect of the Services to be performed. 2.2 Any Services shall be performed by appropriately qualified and trained personnel using reasonable skill and care and to a high standard of quality in accordance with generally recognised commercial practices. 2.3 Supplier warrants, represents and undertakes on an on-going basis that: Services will be free from defect, free from any Third Party rights and interests (including liens, charges and options) and that the use or possession by Telkom of any Deliverables will not subject Telkom to any claim for infringement of any Intellectual Property Rights of any Third Party; all documents, data, software or other materials relevant to the supply of the Services are kept under secure conditions with appropriate back-up arrangements in place; it will discharge its obligations under this Agreement with all due skill, care, timeliness and diligence including Good Industry Practice and (without limiting the generality of this clause) in accordance with its own established internal procedures and with the Code of Ethics of the Association of Personnel Service Organisations; that any of Supplier s employees, agents and subcontractors which are selected to provide the Services shall possess the appropriate skills and will be sufficiently experienced, efficient and qualified to perform the tasks designated to them in accordance with this Agreement; in relation to each candidate, Supplier will exercise due diligence in screening resumes and warrants that all such documents forwarded to Telkom will be free of known misrepresentations; it has and will continue to have all rights in and to the supplier tools necessary to perform Supplier s obligations under this Agreement; and the performance of its obligations under this Agreement and Telkom s use of the Services, any of Services and any licences granted by Supplier to Telkom will not infringe any Intellectual Property Rights of any Third Party. 2.4 Except as expressly stated in this Agreement, all warranties and conditions, whether express or implied by statute, common law or otherwise are hereby excluded to the extent permitted by law. 2

3 3. PAYMENT 3.1 The fee ( Fee ) for the Services shall be as stated in Appendix 1 of this Agreement and no increase will be accepted by Telkom unless agreed by Telkom in writing. 3.2 Telkom shall pay to the Supplier the Fee in accordance with the invoicing and payment provisions set out below. Notwithstanding any other provisions contained herein, the Supplier shall not provide any Services to Telkom and Telkom shall not incur any liability to the Supplier, including the obligation to make any payment, until the Supplier has been provided with a valid purchase Agreement by Telkom in respect of the Services to be provided. 3.3 Telkom does not allow advance payments to the Supplier. 3.4 The Supplier shall deliver to Telkom the invoices in respect of the Services provided and, where applicable, the proof of delivery in respect of the Services delivered, and a statement reflecting the invoices delivered to Telkom in the previous calendar month/s, on or before the 5th (fifth) day of the following calendar month. 3.5 The Supplier shall deliver the invoice and the statement to: Telkom SA SOC Limited Accounts Payable Private Bag X145 Pretoria Telkom shall only be liable to make payment to the Supplier upon receipt of all the documents contemplated in clause It is specifically recorded that no liability to pay shall arise until such time as the correct and complete documentation as envisaged in clause 3.4 has been received by Telkom. 3.8 Telkom shall pay the Supplier on the last business day of the calendar month following the month in which the correct and complete documentation as envisaged in clause 3.4 has been received by Telkom. 3.9 At all material times, the Supplier shall comply with all tax laws of the Republic of South Africa, and where applicable comply with the tax laws applicable to the relevant taxes in its country of residence. Telkom shall at any time be entitled to request proof of such compliance from the Supplier and the Supplier shall be obliged to produce such proof, failing which Telkom shall be entitled to terminate the Agreement Telkom shall make all payments electronically to the Supplier s bank account. The Supplier shall furnish the particulars set out below to Telkom not less than 30 (thirty) days before payment is due: Name of account holder Account number Name of Bank Branch code Address Rolling number/sort code/aba number 3.11 If the Supplier is registered as a South African VAT vendor in terms of the Value Added Tax Act, Act 89 of 1991 as amended ( VAT Act ), the Parties warrant that they are, and undertake to remain, registered for Value Added Tax ( VAT ) in terms of the VAT Act. In Agreement for 3

4 payment to be effected by Telkom, invoices issued by the Supplier will be original tax invoices, complying with the requirements of the VAT Act The amounts payable exclude VAT and VAT at the rate applicable on the date of invoicing will be payable in addition to such amounts The name, address and VAT registration number of the Supplier and the name, address and VAT Registration number of Telkom will appear on all tax invoices For foreign currency invoices the consideration and VAT amounts, as well as the conversion rate of foreign currency invoices, shall be reflected in South African Rand (ZAR) on the tax invoices, as per the requirements of Section 20 (4) and (5) Of the VAT Act. The amounts of the VAT and the consideration shall be converted to the exchange rate to be used on foreign currency tax invoices which is the daily exchange rate as published on the South African Reserve Bank ("SARB") website converted to ZAR on the date the tax invoice is issued The daily exchange rate is the weighted average of the SARBS's daily rates at approximately 10:30 am. The information is published on the following website: Telkom shall be entitled to deduct settlement discounts, (if any) agreed upon by the Parties from any amount owing to the Supplier and off-set off any amounts owing by the Supplier to Telkom against any amount Telkom owes to the Supplier Payment of an invoice shall not prevent Telkom from subsequently disputing all or any of the fees in good faith whether during or after the term of the Agreement. 4. RISK AND TITLE 4.1 Risk in the Services shall pass to Telkom upon acceptance of the Services by Telkom. 4.2 Title in the Services will transfer to Telkom upon payment of the related Invoice. 5. INDEMNITY 5.1 Supplier will indemnify Telkom in respect of all losses, claims, damages, fines or costs of whatever nature arising directly from: (i) (ii) (iii) (iv) (v) (vi) any breach of any warranty, term or condition contained herein; non-delivery, late delivery or short delivery; damage to property or injury to any person that arises from any defect in the Services or their packaging or from your performance of the contract; misleading or inaccurate information contained in any associated instructions or documentation; infringement or alleged infringement of any patent, trade mark, copyright, design right or other intellectual property rights; and/or any other act or omission by Supplier, your servants, agents or subcontractors in relation to this Agreement. 6. OWNERSHIP RIGHTS All rights (including ownership and copyright) in any specifications, instructions, plans, drawings, patterns, models, designs or other material furnished to or made available to Supplier by Telkom or created by Supplier for Telkom pursuant to this Agreement shall be and remain Telkom s sole property and Supplier shall not (except to the extent necessary for the implementation of this Agreement) without Telkom s prior written consent use or disclose any such specifications, plans, drawings, patterns, models, designs, materials or any other information (whether or not relevant to this Agreement) which Supplier may obtain in connection with this Agreement and in 4

5 particular (but without prejudice to the generality of the foregoing) Supplier shall not refer to Telkom or this Agreement or use any trademark belonging to Telkom in any advertisement without our prior written Agreement. 7. TERMINATION Should the Supplier fail to deliver the Services at the time agreed or should the Supplier not comply with any other essential condition of this Agreement, Telkom shall be entitled to terminate the Agreement summarily in writing, without any adverse cost implications for Telkom. Telkom shall also be entitled to terminate the Agreement for convenience by giving the Supplier 15 (fifteen) days written notice of its intention to do so. 8. BROAD-BASED BLACK ECONOMIC EMPOWERMENT ( BBBEE ) Supplier warrants, represents and undertakes that it is a level [ ] BBBEE contributor, measured in terms of the BBBEE Codes and any BBBEE Code published in terms of section 9(1) of the BBBEE Act 2003 in respect of the sector in which Supplier operates, and hence has a BBBEE recognition level of 100% (one hundred per cent). 9. DISCLOSURE OF INFORMATION The existence of this Agreement will not be confidential but the Supplier may not make known any information concerning this Agreement to anyone, including the press, without Telkom's written approval. 10. HEALTH AND SAFETY Supplier will comply with Telkom policies on health and safety. Supplier will ensure that those of its employees, agents and subcontractors that are involved in the provision of the Services also comply with such Telkom policies and all health and safety-related applicable law. 11. REQUIRED CONSENTS Each Party will obtain all third party and regulatory approvals, licences, consents and rights necessary for the other Party to receive or perform the Services or comply with its obligations pursuant to the Agreement and to receive the benefit of the Services. 12. CANVASSING AND EMPLOYEES Neither Party shall under any circumstances offer, promise or make any gift, payment, loan, reward, inducement, benefit or other advantage, which may be construed as being made to solicit any favour, to any of the other Party s employees 13. ASSIGNMENT The Supplier may not without the prior written approval of' Telkom, cede, delegate, relinquish or transfer to anyone his rights and/or obligations in terms of this Agreement. Telkom reserves the right to cede, delegate or transfer to a third person ifs rights or obligations in terms of this Agreement. Subject to such conditions as Telkom may deem appropriate, Supplier may not subcontract or assign its rights or obligations unless Telkom has consented in writing. Where Telkom consents, Supplier will remain jointly and severally liable with the sub-contractor or assignee for their acts and omissions. 14. WAIVER Should Telkom delay or fail to enforce any of the terms or conditions of this Agreement or the resulting contract, it shall not constitute a waiver of Telkom s right to enforce any other term, or the same term on a later occasion, unless expressly confirmed by Telkom in writing. 15. SEVERABILITY In the event of any term or condition of this Agreement being deemed or held to be void or unenforceable the other terms and conditions shall remain in full force and effect. 5

6 16. GOVERNING LAW This Agreement shall be governed and interpreted in accordance with the laws of the Republic of South Africa and shall be subject to the jurisdiction of the South African courts to which the Supplier hereby irrevocably' submits but without prejudice to Telkom s right to take proceedings against the Supplier in other jurisdictions. 17. FORCE MAJEURE Neither Party will be liable to perform its obligation to the extent that it is prevented from or delayed in the carrying on of its obligations hereunder due to circumstances beyond its reasonable control ( Force Majeure ) including, but not limited to, acts of God, fire, flood, lightening, war, revolution, acts of terrorism. Telkom will have the right to terminate any Agreement where Supplier is unable to perform its contractual obligations owing to a situation of Force Majeure which has continued for at least one day. 18. NOTICES Any notice given under or pursuant to this Agreement may be sent by hand or by post or by facsimile transmission or other means of telecommunication resulting in the receipt of a written communication in permanent form and if so sent or transmitted to the address shown (or to such other address as the party may by notice to the other have substituted therefor), shall be deemed effectively given on the day when in the ordinary course of the means of transmission it would first be received by the addressee in normal business hours. 19. VARIATIONS No variation to these terms and conditions shall be binding unless agreed in writing between the authorised representatives of Telkom and Supplier. 20. COMPLIANCE WITH APPLICABLE LAWS Each Party shall, and in the case of Supplier, ensure that, each of its subcontractors, performs its obligations and exercises its rights pursuant to this Agreement in accordance with all applicable laws 21. HEADINGS The headings to these terms and conditions shall not affect their interpretation. 6

7 APPENDIX 1 1. SERVICES Supplier is required to identify candidates and submit necessary documentation of candidates for permanent placement services for Telkom for specialist/management and people with disabilities (Services). 2. REGISTRATION PROCESS IN ORDER FOR SUPPLIER TO PROVIDE TELKOM WITH THE SERVICES, SUPPLIER MUST REGISTER ON THE PORTAL TO GAIN ACCESS TO TELKOM VACANCIES Please complete the information requested in SECTION A and SECTION B below. To receive a user login and password please complete the information requested below and same to thompsd@telkom.co.za. You should receive your login credentials within 3 days, failing which please send a follow up to the same address and cc cvtelkom@telkom.co.za and munnikcw@telkom.co.za SECTION A: SUPPLIER INFORMATION Name of Placement Agency Company Registration Number VAT Registration Number BBBEE Rating (Level) BBBEE Rating Expiry Date SECTION B: SUPPLIER E-CONTACT INFORMATION Details User 1 User 2 User Name User Surname Mobile Number Fixed Line Number Address 7

8 3. SUPPLIER INSTRUCTIONS AND OBLIGATIONS: 3.1 Supplier must add at least one generic address that can be accessed even after primary user has left the employ of Supplier. 3.2 Once Supplier has completed the information above and sent same to Supplier will be registered by Telkom and IT will receive an with login credentials. 3.3 Once registered Supplier will receive notifications of Telkom s vacancies where the Services of placement are required. This notification will contain a link for Supplier to access the full job specification on Telkom s web-based recruitment portal. 3.4 From this point onwards, Supplier will be able to submit CV s for the relevant jobs via the Telkom online recruitment portal. 3.5 Supplier must avail itself for requirements brief (via telecon) where required. Contact details will be supplied in the advert. 3.6 CV s submitted by Supplier will be filtered according to the minimum criteria and the shortlisted candidate CV s will be submitted to the Telkom HR business partner for further review and processing. 3.7 Supplier will be contacted by the relevant Telkom HR business partner should its candidate be shortlisted for interviews. 3.8 Supplier must conduct employment reference checks and integrity assessments (qualifications, work history, citizenship, professional registration, criminal/credit verification and any additional checks prescribed by Telkom) on all candidates before they can be appointed by Telkom. Proof of verification must be provided to Telkom before an offer is made to the candidate. 3.9 If the Supplier s candidate is appointed by Telkom, the Supplier will receive a placement fee of 15% on the Total Annual Package (includes the basic salary, pension and benefits but excludes TELKOM s team award plan and Surplus Target Earnings/Commission.) This amount will be paid in accordance with the provisions of clause 3 of this Agreement. 4. GUARANTEE Supplier gives a guarantee that its appointed candidate shall remain in the employ of Telkom for a minimum period no less than three (3) months. Should an employee placed by the Service Provider resign or be lawfully dismissed for any reason whatsoever within a three (3) months period from the commencement date of employment within Telkom, Supplier shall at the option of Telkom, replace the employee with another applicant approved by Telkom s Human Resources Division, or refund TELKOM 100% of the placement fee. 8