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 IMAX CORPORATION EMPLOYEE HANDBOOK No part of this handbook may be copied or distributed without the written authorization of IMAX Corporation January 2006 Revised March 2012

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IMAX CORPORATION

EMPLOYEE HANDBOOK

No part of this handbook may be copiedor distributed without the writtenauthorization of IMAX Corporation

January 2006

Revised March 2012

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WELCOME TO IMAX

CORPORATION

On behalf of your colleagues, I welcome you toIMAX CORPORATION and wish you every

success here.

We believe that each employee contributesdirectly to IMAX’s growth and success, and wehope you will take pride in being a member ofour team.

Our goal here is to provide quality products andgreat service to our customers and to do thismore efficiently and economically than ourcompetitors. By satisfying our customers’needs, they will continue to do business with us

and fuel our growth into the future.

You are an important part of this process foryour work directly influences our company’sreputation.

We are glad you have joined us, and we hopeyou will find your work to be both challengingand rewarding.

Sincerely,

 Al BulakPresident

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January 2006Revised March 2012 

TABLE OF CONTENTS

SECTION 1: THE WAY WE WORK

A Word About This Handbook 1

Building For The Future 3

A Company Culture In Support Of OurObjectives 4

Reporting Violations – Duty to Report 5

Equal Employment Opportunity 6

Americans With Disabilities Act 7

A Word About Our Employee RelationsPhilosophy 8

Non-Harassment – Harassment-FreeWorkplace 8

Sexual Harassment is Forbidden AndIllegal 10

A Workplace Free of Threats And Violence 14

Violence and Weapons Prohibited 14

Definitions 15

Examples of Workplace Violence 16

Reporting Workplace Violence 18

Personal Protective Orders 18

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 January 2006

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SECTION 2: YOUR PAY AND

PROGRESS CONTINUED)

Performance Management 5

Performance Reviews 6

Compensation Program 7

Job Descriptions 7

Pay Ranges 7

Merit Increases/Pay Increases 8

Pay Advances 8

Overtime 9

SECTION 3: TIME AWAY FROM WORK

AND OTHER BENEFITS

 

Employee Benefits 1

Holidays 1

Vacation 3

Sick Days 5

Bereavement Leave 6

Jury Duty (All Employees) 7

Voting Leave (All Employees) 7

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 January 2006

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SECTION 3: TIME AWAY FROM WORK

AND OTHER BENEFITS

 

CONTINUED)

Medical Insurance 8

COBRA 8

Disability Leave 9

Family & Medical Leave Policy (FMLA)(FMLA) 11

Social Security 18

Unemployment Insurance 18

Workers Compensation 19

401 (K) Qualified Retirement Plan 19

Professional Development 20

Employee Assistance Program (EAP) 20

Company Discounts 21

SECTION 4: ON THE JOB

Non-Disclosure 1

Attendance and Punctuality 2

Workweek and Overtime 4

Meal Time 4January 2006

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Revised March 2012 iv

SECTION 4: ON THE

JOB CONTINUED)

Breaks 5

Work Assignments 5

On The Job Training 5

Coaching For Personal Development 6

Clean Up 7

Employee Conduct & Work Rules 7

Progressive Discipline 9

Corrective Action Program 10

Computer Software Licensing 17

Customer and Public Relations 18

Solicitation and Distribution 18

Changes in Personal Data 18

Protecting Company Information 19

Conflict of Interest/Code of Ethics 19

Care of Equipment 20

Outside Employment 21

Employment of Relatives 21

January 2006

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January 2006Revised March 2012  vi

SECTION 5: SAFETY IN THE

WORKPLACE

Each Employee’s Responsibility 1

Fire Drills 3

Good Housekeeping 4

Smoking In the Workplace 4

Concealed Weapons Prohibited 4

Workplace Monitoring 5

Security Inspections 6

Search and Seizure 6

Workplace Violence Prevention 9

Substance Abuse 14

Drug Testing 16

Criminal History Background Check 17

Motor Vehicle Records Check (MVR) 19Receipt of Employee Handbook and

Employment At-Will Statement 22

Receipt of New Employee Handbook,Changes, Revisions or Additions ToThe Employee Handbook 24

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January 2006Revised March 2012 vii

SECTION 1:

THE WAY WE WORK 

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January 2006Revised March 2012

A WORD ABOUT THIS HANDBOOK

This Employee Handbook contains informationabout the employment policies and practices ofIMAX Corporation. We expect each employee toread this Employee Handbook carefully, as it is avaluable reference for understanding your job andIMAX. The policies outlined herein should beregarded as management guidelines only, which in adeveloping business will require changes from timeto time. IMAX retains the right to make decisionsinvolving employment as needed in order to conductits work in a manner that is beneficial to theemployees and IMAX. This Employee Handbook

supersedes and replaces any and all prior EmployeeHandbooks and inconsistent verbal or written policystatements. Except for the policy of at-willemployment, which can only be changed by thePresident of IMAX in writing, IMAX reserves the rightto revise, delete and add to the provisions of thisEmployee Handbook. All such revisions, deletionsor additions must be in writing and must be signedby the President of IMAX. No oral statements orrepresentations can change the provisions of thisEmployee Handbook.

The provisions of this Employee Handbook are not

intended to create contractual obligations withrespect to any matters it covers. Nor is thisEmployee Handbook intended to create a contractguaranteeing that you will be employed for anyspecific time period.

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 January 2006Revised March 2012  1

IMAX is an at-will employer. This means thatemployment with the company is “at-will” for anindefinite period of time and that your employment

can be terminated, with or without cause, at any timewithout prior notice, at the option of either you or thecompany. Although other terms and conditions of employmentmay change, this “at-will” employment relationshipwill remain in effect throughout your employmentwith the company unless it is specifically modified byan expressed written agreement for a specified timeexecuted by the President of IMAX and you. This“at-will” employment relationship may not bemodified by any oral or implied agreement. Thesestatements about the “at-will” nature of employmentconstitute the complete understanding between the

company and you regarding the subject.

No Employee Handbook can anticipate everycircumstance or question about an employee’semployment with an employer. As the companycontinues to grow, the company, in its sole andabsolute discretion, reserves the right, at any time,to amend, modify, alter or terminate any statements,policies or practices regarding your employment,including those set forth in this Employee Handbook,as well as any employee benefits. Only thePresident of IMAX may make exceptions to, ormodify the policies, practices and benefits of thecompany, excluding the “at-will” employment policy,

which may not be modified under anycircumstances.

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 January 2006

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 At all times, you represent IMAX, and it is up to youto put your best foot forward. Our company existswith your efforts. Don’t underestimate yourcontribution to it. A great many people outside the

business who invest their time, money and faith inus are part of that equation. They are ourcustomers, our vendors and many other servicecompanies, who will determine how fast we grow,how many people we employ, how many productswe sell and the profit we make. In order to retainthese organizations and customers, we want toensure that our good service continues by alwaysgiving them the best possible value and quality.Working together and working well provides us witha bright future and with the most importantcommodity, a good reputation.

A COMPANY CULTURE IN SUPPORT

OF OUR OBJECTIVES

Every organization has a “culture” or a set of values,attitudes and beliefs, and a way of doing businesswhich distinguishes it from other companies. IMAXis no different in that regard. We have establishedsome basic business and humanistic philosophiesas the foundation of our cultural environment. 

Our culture is comprised of a few key elements,especially our commitment to quality service, ourdesire to outperform our competition, and our

dedication to achieving our  goals.  We believesuperior achievement demands that we worksmarter, faster and more skillfully than ourcompetitors.We look for individuals with a high energy level andthe willingness to apply their skills to get the jobdone.

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January 2006Revised March 2012 4

None of this can be accomplished without themutual support and respect that we have for oneanother and our recognition that many individualswith diverse talents contribute to the company’ssuccess. You play an important role in the

achievement of our goals. We hope yourexperience will be challenging, enjoyable, andrewarding.

REPORTING VIOLATIONS-DUTY TO  

REPORT  

You and all employees have a duty to reportviolations of the following: laws; regulations andordinances; safety issues; violations of theprovisions of this Employee Handbook; and thepolicies and practices of the company, published orotherwise. Failure to report a violation is a violation

of the provisions of this Employee Handbook.If you believe or suspect a violation has occurred,you are required to promptly report the conduct toyour supervisor, Human Resources, or to anymanager or officer of the company. The reportshould be specific and should include the factualbasis for the allegations, providing the names ofindividuals involved and the names of anywitnesses.

It is recommended that you first report any incidentsto your supervisor, as we encourage all employeesto use a chain of command. However, you may

bypass anyone and report the conduct directly toany one of the above named at any time.

 All reports will be investigated promptly, impartiallyand as confidentially as reasonably possible.

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January 2006Revised March 2012 5

Employees should treat any report as confidential.IMAX expects every employee involved in aninvestigation to cooperate and assist the company inits investigation of the reported conduct.

You or any other employee will not be subjected toany form of retaliation or discipline for making agood faith report. Retaliation against any individualfor making a good faith report of a violation or forparticipating in an investigation of a report isprohibited and may be grounds for termination.Reports made in bad faith or false and maliciousreports will subject the reporting employee todisciplinary action, up to and including termination ofemployment.

If the company determines that a violation hasoccurred, appropriate disciplinary action will be

taken against the offending employee(s), up to andincluding immediate termination of employment.The company reserves the right to take appropriatelegal action with respect to any violation.

EQUAL EMPLOYMENT OPPORTUNITY

IMAX is committed to equal employmentopportunity. IMAX will not discriminate againstemployees or applicants in any of its employmentpractices on the basis of: race, color, sex, age,national origin, ancestry, citizenship, physical ormental disability, religion, marital status, pregnancy,

sexual orientation, veteran status or other legallyprotected status. Equal employment opportunityapplies to all aspects of employment, from hiringthrough termination, including promotion, placement,training and compensation.

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January 2006Revised March 2012 6

In addition, age (between 40 and 70) and disabilityare protected classes in the State of Georgia.

Sex and handicap are protected classes in the Stateof Illinois.

Race, color, religion, sex, national origin, age,handicap and genetic information are protectedclass in the State of Oklahoma.

If you believe you have been subjected to orwitnessed any form of unlawful discrimination, youare required to promptly report the conduct using thereporting procedures previously described.

You may discuss equal employment opportunityrelated questions with your supervisor or any othermember of management.

AMERICANS WITH DISABILITIES ACT

IMAX is committed to providing equal employmentopportunities to otherwise qualified individuals withdisabilities, which may include providing reasonableaccommodation where appropriate. In general, it isyour responsibility to notify the Human ResourcesDepartment of any need for accommodation. Upondoing so, the Human Resources Department will askyou to provide medical certification for your needsand for your input for the type of accommodationyou believe may be necessary, or the functional

limitations caused by your disability. Also, whenappropriate, we may need your permission to obtainadditional information from your physician or othermedical or rehabilitation professionals.

January 2006

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A WORD ABOUT OUR EMPLOYEE

RELATIONS PHILOSOPHY

IMAX is committed to providing the best possibleconditions for maximum development and goal

achievement for all employees. Our practice is totreat each employee as an individual. We seek todevelop a spirit of teamwork - individuals workingtogether to attain a common goal.

In order to maintain an atmosphere where thesegoals can be accomplished, we provide acomfortable and progressive workplace. Mostimportantly, we have a workplace wherecommunication is open and problems can bediscussed and resolved in a mutually respectfulmanner. We take into account individualcircumstances and the individual employee.

IMAX firmly believes that with direct communication,we can continue to resolve any difficulties that mayarise and develop a mutually beneficial relationship.

NON-HARASSMENT - HARASSMENT

FREE WORKPLACE

IMAX prohibits harassment and similar intimidatingconduct of one employee by another employee,supervisor or third party for any reason, andharassment is not tolerated under anycircumstances.

January 2006

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No retaliation action will be taken against anemployee because he or she, in good faith, reportsor participates in the investigation of a violation ofthis policy. Violations of this policy are not permittedand may result in disciplinary action, up to andincluding termination of employment.

See the company’s complete Human ResourcesPolicy Number HR 007, Discrimination and Harassment-Free Workplace for more detailedinformation prohibiting this behavior.

SEXUAL HARASSMENT IS

FORBIDDEN AND ILLEGAL

Sexual harassment is illegal under state and federallaw, forbidden, and not tolerated by IMAX under anycircumstances. Sexual harassment of oneemployee by another employee, supervisor or third

party is against company policy and is unlawful.The purpose of this policy is not to regulate themorality of employees. It is to assure that in theworkplace, no employee is subject to sexualharassment.

While it is not easy to define precisely what sexualharassment is, it includes: Unwelcome sexualadvances, requests or solicitations for sexual favors,unwelcome or offensive touching or physicalcontact, and other verbal (such as jokes or teasingof a sexual nature), physical, visual (such aspictures or drawings), or other behavior of a sexual

nature, constitutes “sexual harassment” when:

•  Submission to such conduct is made eitherexplicitly or implicitly as a term or conditionof an individual’s employment;

January 2006

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•  Submission to or rejection of such conductby an individual is used as the basis foremployment decisions affecting theindividual; or

•  Such conduct has the purpose ofunreasonably interfering with an individual’swork performance or creating anintimidating, hostile or offensive workenvironment.

Some examples of sexual harassment prohibited bythe company include, but not limited to:

•  Obscene gestures;•  Flirtatious whistling or catcalls;•  Lewd, off-color, sexually oriented comments

or jokes;•  Explicit, derogatory sexual remarks;•  Suggestive or sexually explicit posters,

calendars, photographs, graffiti or cartoons;•  Physical contact such as sexually

suggestive touching, patting, grabbing,pinching, rubbing, massaging or brushingagainst another’s body;

•  Requests for sexual favors;•  Any repeated or unwanted verbal or physical

sexual advances that are offensive orobjectionable to the recipient; that cause therecipient discomfort or humiliation; or thatinterferes with the recipient’s jobperformance;

•  Threat or insinuation that lack of sexualcooperation will adversely affect the victim’s

employment, wages, promotionalopportunities, assigned duties, evaluation,shifts, or other aspects of employment orcareer development;

January 2006Revised March 2012 11

•  Violating someone’s personal space;

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•  Foul or obscene language;•  Repeated requests for dates;•  Sexual assault, battery or rape; and/or•  Any other conduct or behavior deemed

inappropriate by the company

Sexual harassment of an employee is forbidden and

will not be tolerated. Violations of this policy mayresult in disciplinary action, up to and includingtermination of employment.

There will be no adverse action taken againstemployees who, in good faith, report violations ofthis policy or participate in the investigations of suchviolations.

 Any employee who feels that he or she is a victim ofsexual harassment should:

•  Make it clear to the harasser that you object

to the activity and that you expect it tocease; and

•  Immediately make a report to the HumanResources Department using the reportingprocedures described earlier in thisEmployee Handbook. If you prefer not todiscuss the matter with the HumanResources Department, you may contactany other member of management or thePresident of IMAX.

•  Any employee who feels that he or she is avictim of sexual harassment should not:

  Ignore the harassment; or•  Resign your position.

January 2006Revised March 2012 12 IMAX will investigate every reported incidentimmediately. Any employee, supervisor or agent of

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IMAX who has been found to have violated thispolicy may be subject to appropriate disciplinaryaction, up to and including immediate termination ofemployment.

IMAX will conduct all investigations in a discreet andconfidential manner. IMAX recognizes that everyinvestigation requires a determination based on allthe facts in the matter. We also recognize theserious impact a false accusation can have. Wetrust that employees will continue to act responsibly.

The reporting employee and any employeeparticipating in an investigation under this policy hasthe assurance of IMAX that no reprisals or retaliationwill be taken as a result of a sexual harassmentcomplaint. It is our policy to encourage discussionof the matter and to help protect other employeesfrom being subjected to similar inappropriatebehavior.

See the company’s complete Human ResourcesPolicy Number HR 007, Discrimination and Harassment-Free Workplace for more detailedinformation prohibiting this behavior.

January 2006Revised March 2012 13 

A WORKPLACE FREE OF THREATS  

AND VIOLENCE  

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 One of the most fundamental concerns of acompany should be the safety of its employees inthe workplace. IMAX will exercise due diligence toprovide each employee a workplace “free ofrecognized hazards”, including violent acts, orthreats of violent acts against employees or thirdparties within its facilities in accordance with theGeneral Duty Clause, Section 5(a)(1) of theOccupational Safety and Health Act. IMAX will takeany reasonable action, legal and administrative, asappropriate to provide a safe and secure workplacefor all employees, visitors, or the general publicwithin all company facilities. All employees areresponsible for complying with this policy.

VIOLENCE AND WEAPONS  

PROHIBITED

 Acts or threats of workplace violence that involve oraffect the company will not be tolerated, including,but not limited to, acts or threats which:

•  Interfere with an individual’s workperformance;

•  Create an intimidating, hostile or offensivework environment;

•  Occur on the company’s premises; or•  Occur during the performance of an

employee’s work.IMAX’s prohibition against acts or threats ofworkplace violence, and the possession orinappropriate use of weapons, applies to all persons

involved in the company’s operations, including, butnot limited to, employees, contractors, vendors oranyone else on the company’s premises or adjacentto the company’s premises.January 2006

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DEFINITIONS

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“Acts”

 means any conduct that is sufficiently

severe, offensive or intimidating to alter theemployment conditions of IMAX or that creates ahostile, abusive, intimidating, harassing or coercivework environment for one or more employees, orother persons, on the company’s premises. Acts of

workplace violence include those that result or couldresult in damage to the company’s premises, thecompany’s equipment, or to property of employeesor others situated on the company’s premises.

“Company’s Equipment”  means any

personal property, vehicle, equipment, machinery ortools of the company, whether owned, leased orotherwise used by the company or its affiliates.

“Company’s Premises”

 means any property

owned, leased or otherwise occupied or used by thecompany or its affiliates.

“Employee”

 means any person who is

employed by the company in a full-time, part-time ortemporary status.

“Threats”

 mean any act or verbal statement

that has the effect of placing a reasonable person infear or apprehension about his or her own emotionaland/or bodily well-being or the well-being of anotherperson. Any behavior that causes suffering orserious discomfort will also be construed as a threat. Acts or verbal statements by non-employees, whichare directed toward any employee and which evoke

fear for personal well-being, are also addressed bythe company policy.

January 2006

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employees or others situated on the company’spremises. Threats of violence, even if made in a“joking” manner, will be taken seriously by thecompany.

“Weapons”

 mean any object or instrument

intended by the user or designed to cause bodilyinjury or death to another person. Examplesinclude, but are not limited to, firearms, handguns,knives, bombs, tools, vehicles, etc.

EXAMPLES OF WORKPLACE

VIOLENCE

•  All threats or acts of violence occurring onthe company’s premises, regardless of therelationship between the company and theparties involved in the incident;

•  All threats or acts of violence occurring off

the company’s premises involving someonewho is acting in the capacity of arepresentative of the company;

•  All threats or acts of violence occurring offthe company’s premises involving anemployee if the threats or acts affect thelegitimate interests of the company;

•  Any acts or threats resulting in theconviction of an employee or agent of thecompany, or of an individual performingservices for the company on a contract ortemporary basis, under any criminal codeprovisions relating to violence or threats of

violence which adversely affect thelegitimate interests and goals of thecompany;

January 2006Revised March 2012 16 

•  Hitting, striking or shoving an individual;

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You and every person on the company’s premisesor adjacent to the company’s premises is stronglyencouraged to report incidents of threats or acts ofworkplace violence, including the possession orinappropriate use of weapons on the company’spremises or adjacent to the company’s premises, ofwhich he or she is aware. Circumstances to bereported include, but are not limited to: threatsreceived, comments of others advocating violentacts or threats, phone calls or other messagescontaining abusive, obscene or threateninglanguage, stalking behavior and any observations ofworkplace violence. 

Workplace violence should be immediately reportedusing the reporting procedures described earlier inthis Employee Handbook.

See the company’s complete Human ResourcesPolicy Number HR 006, Workplace Violence Risk 

Reduction Policy for more detailed informationprohibiting this behavior.

PERSONAL PROTECTIVE ORDERS  

If an employee has obtained a protective orderagainst any individual, the employee is encouragedto notify his or her immediate supervisor, the nextlevel of management or the Human ResourcesDepartment of the protective order if there is anyperceived potential danger to themselves, to otheremployees or to others on the company’s premises.The supervisor or next level of management must

advise Human Resources so that additionalprotective measures, as deemed necessary by thecompany in its sole discretion, may be taken. January 2006Revised March 2012 18

CRIMINAL HISTORY/BACKGROUND

CHECKS, MOTOR VEHICLE RECORDS

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dispense, transport or be under the influence ofother controlled substances on company premises,in company vehicles or while engaged in companybusiness.

Company employees shall report to work with theirabilities unimpaired by alcohol, drugs or othercontrolled substances, and shall remain sothroughout the performance of their duties for thecompany.

The proper use of prescribed drugs as part of amedical treatment program is not a violation of thispolicy, although it is important for the company toknow such use is occurring in the event of anadverse affect on job performance or behavior.

IMAX reserves the right to notify, and to turn overevidence, to any appropriate law enforcementagency in the event of illegal drug activity by any

employee. Any employee who is convicted under acriminal drug statute for a violation occurring in theworkplace during any company-related activity orevent will be deemed to have violated this policy andwill be subject to disciplinary action, up to andincluding termination of employment.

See the company’s complete Human ResourcesPolicy Number HR 008, Drug and Alcohol-Free Workplace for more detailed information prohibitingthis behavior.

January 2006Revised March 2012 20

ENVIRONMENTAL HEALTH AND

SAFETY

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IMAX believes that your health and safety and thatof others around you are very important. Thefollowing are some of the major health and safetyrules of our company. You are expected to knowthem and abide by them. Please help us make the

company a healthful and safe place to work – beyour own health and safety advisor and know therules.

GENERAL RULES

•  All posted health and safety rules must beobeyed. 

•  Report all unsafe or unhealthful conditionsand practices to your supervisor. 

•  Safety glasses and/or other safetyequipment must be worn in all designatedareas as required. 

•  Personal protective equipment such asglasses, shoes, rubber/leather gloves,hearing protection, aprons, etc., may berequired to be worn when performing certain jobs. 

•  All loose-fitting “over shirts” must be tuckedin, hair longer than shoulder length must bepulled and tied back, and long-hanging jewelry must not be worn while working onequipment that has moving parts. 

•  Walk, do not run. •  Smoking is permitted only in posted areas

outside. •

  Obey all warning signs and tags. •  Practical jokes and horseplay are forbidden. •  All accidents must be reported, including

minor injuries, to your supervisor. January 2006Revised March 2012 21

•  Be alert to fire hazards and report any thatyou see to your supervisor. 

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•  Keep aisles and walkways clear. •  Use designated areas for stock, skids and

boxes or packing materials. •  Keep fire doors clear of obstacles. •  Wear steel-toed safety shoes where

required by management. •  Practice good housekeeping in your work

area by keeping it clean at all times. 

MATERIAL HANDLING

•  Do not lift awkward or heavy materialsalone. Get help.

•  Crouch close to the load you are lifting.Bend your legs and keep your back straight.Lift correctly.

•  Report any sharp corners or protrudingobjects to your supervisor.

•  Have a firm grip on material and a firm

footing.•  Use mechanical devices for lifting when

possible.•  Be alert and keep out from under overhead

loads.

EQUIPMENT

•  Do not use any machine or piece ofequipment unless you have been authorizedto do so and are properly trained. You mustnever use any equipment that has beenlocked or tagged out of service or repair. It

is the responsibility of all employees toreport to management, any equipment yoususpect to be unsafe in any way.

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WORK HABITS

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•  Jewelry, neckties, long sleeves or looseclothing while working at or around movingmachinery is strictly prohibited. 

•  Keep aisles, passageways and stairwaysclear. 

•  Clean all spills immediately. •  Keep oily rags and other flammable

materials in covered cans. •  Do not distract any operator of machinery or

equipment. •  Do not continue to work if you feel ill. •  Properly care for all protective equipment. •  Practice good housekeeping. 

FIRE PREVENTION

In case of fire, immediately notify the supervisorclosest to the fire area. In case of minor fires, use afire extinguisher if you have attended the training; if

not, notify your supervisor. Learn the locations of fireextinguishers in your work area. Notify yoursupervisor after the extinguisher has been used or ifit has low pressure.

HAZARD COMMUNICATION

The company will comply with the regulationsestablished by State and Federal OSHA Laws toensure that all chemicals used at the company areevaluated for hazardous properties and that theemployees working with these chemicals areinformed of these hazards. It is important foremployees to review the labels on these products

and follow the manufacturer’s instructions for safeusage.

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ON-THE-JOB INJURIES

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If you become ill or sustain any injury, (even ascratch, cut, sliver, etc.), no matter how slight, whileat work, you must promptly report this to yoursupervisor. Your supervisor and you will completean injury report. Minor injuries may too oftenbecome major problems. If you are treated withcompany first aid, make sure it is recorded in the firstaid log book. Do not attempt self-remedy ormedications. If medical help beyond first aid isrequired, your initial assessment by a physician willbe paid for by the company, either through yourmedical coverage (if you were not injured on the job)or through the state workers’ compensation systemif the investigation determines that your injury didoccur at work.

CATEGORIES OF EMPLOYMENT

FULL-TIME EMPLOYEE -   An employee who

is regularly scheduled to work 40 hours per weekand who maintains continuous employment statusand is designated by his or her immediatesupervisor as full-time via appropriate personnelrecords. A full-time employee is eligible for allemployee benefits.

PART-TIME EMPLOYEE   -  An employee who

is regularly scheduled to work less than 40 hours perweek and who maintains continuous employmentstatus and is designated by his or her immediatesupervisor as part-time via appropriate personnelrecords. A part-time employee may be eligible for all

or some employee benefits.

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EXEMPT EMPLOYEES -  Pursuant to

applicable Federal and State laws, exempt

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employees are not subject to the same recording oftime worked as are the non-exempt employees andare not entitled to overtime pay, and are not subjectto certain deductions to their weekly salary.

NON-EXEMPT EMPLOYEES -   Are subject

to applicable Federal and State Wage and HourLaws, and all hours worked each week must berecorded and reported according to establishedprocedures. Non-Exempt Employees are entitled toovertime pay as prescribed by State and FederalLaws.

When you are hired, your supervisor will notify youof your employment classification.

EMPLOYMENT DATE - The date an

employee is hired and paid by IMAX payroll system.

SENIORITY DATE - Is the actual date of hirefor an employee. This date is used for the purposeof calculating vacation, employee benefits, including401(k), and seniority. For most employees, theseniority date is the same date as the date of hire.For some employees, such as temporary andcontract employees, the seniority date will vary.Contact Human Resources or review your benefitplan document for more information.

ANNIVERSARY DATE - 

The first day you

report to work will be recorded in company recordsas your anniversary date. This date is used to

calculate many different company benefits. If youhave any questions regarding your anniversary date,please contact your supervisor or the HumanResources Department. January 2006

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NEW EMPLOYEE ORIENTATION

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Upon joining our company, you were given this copyof our Employee Handbook. When you receive thisEmployee Handbook, please sign the receipt pageand return it to your supervisor prior to beginningwork. You will be asked to complete personnel,

payroll and benefit forms.

If you lose your Employee Handbook, or if itbecomes damaged in any way, please notify yoursupervisor as soon as possible to obtain areplacement copy. Your supervisor is responsiblefor the operation of your department. He or she is agood source of information about IMAX and your job.

IMMIGRATION REFORM AND

CONTROL ACT I-9)

In compliance with the Federal Immigration Reform

and Control Act of 1986 (IRCA), as amended, IMAXis committed to employing only individuals who areauthorized to work in the United States.

Each new employee, as a condition of employment,must complete the Employment EligibilityVerification Form I-9 and present documentationestablishing identity and employment eligibility.Copies of these documents may be placed in theemployee’s master personnel file located andsafeguarded in the Human Resources Department

If an employee is authorized to work in this country

for a limited time period, the individual will berequired to submit proof of renewed employmenteligibility prior to expiration of that period to remainemployed by IMAX.January 2006

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SUGGESTIONS AND IDEAS

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We are always interested in your constructive ideasand suggestions for improving our operations. Yoursuggestions must be submitted to your supervisor orthe Human Resources Department. We willinvestigate your suggestion and you will be notified if

it is feasible to be put into practice.

We believe that suggestions indicate initiative. Withyour approval, we will place the written suggestion inyour personnel file and consider it at the time of yourEmployee Performance Review.

TALK TO US

IMAX encourages you to bring your questions,suggestions and complaints to our attention. We willcarefully consider each of these in our continuingeffort to improve operations.

If you feel you have a problem, present the situationto your supervisor so the problem can be settled byexamination and discussion of the facts. We believeyour supervisor is able to satisfactorily resolve mostmatters.

If you still have questions after meeting with yoursupervisor, or if you would like further clarification onthe matter, please contact the Human ResourcesDepartment and they will review the issues andmeet with you to discuss possible solutions.

Your suggestions and comments on any subject areimportant and we encourage you to take everyopportunity to discuss them with us. Your job willnot be adversely affected in any way because youchoose to use this process.January 2006

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If at any time you do not feel comfortable speakingwith your supervisor or the next level ofmanagement, you may discuss your concerns withany member of management with whom you feelcomfortable, or the Human Resources Department.

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SECTION 2:

YOUR PAY AND

PROGRESS

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RECORDING YOUR TIME

IMAX is required by law to keep accurate records ofall actual hours worked by non-exempt employees,including hours worked each day and total hoursworked each work week. Non-exempt (hourly)

employees must record their regular hours worked,using a swipe card and ETC (electronic time clock),accounting for meal periods, overtime, absences,holidays and vacations.

Your supervisor will inform you whether or not youare required to swipe an ETC card. If you arerequired to swipe an ETC card, the following rulesmust be observed:

•  Non-exempt employees should arrive at theworkplace no more than 10 minutes prior totheir scheduled starting time in order to use

the break room, lunch room or restroomfacilities prior to beginning their shift. Non-exempt employees should not stay at theworkplace more than 10 minutes after theirscheduled stop time without expressed, priorauthorization from their supervisor.

•  Allow sufficient time to swipe in and startwork on time. Do not swipe your card morethan five minutes before the beginning orafter the end of your shift.

•  Swipe in immediately prior to starting work,before and after meal periods, when leavingat the end of a work shift, or leaving thepremises for approved personal reasons.You are expected to work until the end ofyour shift.

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•  You are not permitted to swipe the card ofanother employee under any circumstances.

•  Corrections or alterations must be approvedor initialed as soon as possible by yoursupervisor in order to be valid.

•  If you fail to swipe your ETC card in or out atthe appropriate time, corrections will bemade by your supervisor to reflect theaccuracy of time worked, and in addition,you may be subject to disciplinary action, upto and including, termination of employment.

•  Altering, falsifying, tampering with timerecords, or recording time on anotheremployee’s time record will result indisciplinary action, up to and includingtermination of employment.

•  All employees subject to this policy arerequired to accurately record all time workedwithout exception.

Non-exempt employees should report to work nomore than 10 minutes prior to their scheduledstarting time nor stay more than 10 minutes aftertheir scheduled stop time without expressed priorauthorization from their supervisor.

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PAYDAY

 

You will be paid biweekly on Thursday for the periodwhich has ended on the previous Sunday. Whenour payday occurs on a holiday, you normally will bepaid on the last working day before the holiday.

Please review your paycheck for errors. If you find amistake, report it to the Human ResourcesDepartment and they will assist you in taking thesteps necessary to correct any errors.

The company believes your pay information is highlyconfidential and it should be treated as such.

PAYCHECK DEDUCTIONS

IMAX is required by law to make certain deductionsfrom your paycheck each pay period. Suchdeductions typically include Federal and State taxes

and Social Security (FICA) taxes. Depending on thebenefits you choose, there may be additionaldeductions. All deductions and the amount of thedeductions are listed on your pay stub. Thesedeductions are totaled each year for you on yourForm W-2, Wage and Tax Statement.

It is the policy of the company that exempt (salaried)employees’ pay will not be “docked”, or subject todeductions, in violation of salary pay rules issued bythe United States Department of Labor and anycorresponding rules issued by the state government,as applicable. However, the company may make

deductions from employees’ salaries in a way that ispermitted under Federal and State Wage and HourRules.

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Employees will be reimbursed in full for any isolated,inadvertent, or improper deductions, as defined bylaw.

Exempt employees may be subject to the followingsalary deductions, except where prohibited by StateLaw, but only for the following reasons:

•  Absences of one or more full days beforeeligibility under such a plan, policy, orpractice or after replacement compensationfor such absences has been exhausted;

•  Suspensions for violations of safety rules;•  Suspensions of one or more full days for

violation of company policies and practices;

•  Payment of actual time worked in the firstand last weeks of employment, resulting in aproportional rate of an employee’s fullsalary;

•  Any unpaid leave taken under the Familyand Medical Leave Act; or

•  Negative paid-time-off balances, in whole-day increments only.

If questions or concerns about any pay deductionsarise, employees may discuss and resolve them withthe Human Resources Department.

GARNISHMENT/CHILD SUPPORT

If your wages are garnished by a court order, ourcompany is legally bound to withhold from your pay

check the amount indicated in the garnishmentorder. IMAX will, however, honor Federal and Stateguidelines which protects a certain amount of anemployee’s income from being subject togarnishment.January 2006Revised March 2012 4

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DIRECT DEPOSIT

You have the option of receiving your pay in a “live”payroll check or having your pay directly depositedinto your bank account through our Direct DepositProgram. We encourage you to use Direct Deposit.

You will have to complete a Direct Deposit RequestForm and provide a voided check from the bankaccount you wish to use for direct deposit.

PERFORMANCE MANAGEMENT

To ensure the success of our employees, it isessential that employees are provided jobperformance feedback. Supervisors are encouragedto provide ongoing feedback to their employees fromtheir first day on the job. Supervisors will conductannual Employee Performance Evaluation Reviews

and present them to the employees during themonth of December, with possible salary increaseseffective the second pay period of January eachyear. Performance, not longevity, is the key factorfor merit increases in salary. Superior jobperformance not only increases the size of yourmerit increase, but can enhance your opportunitiesfor promotion. Several factors may influence yoursalary progression: the requirements of the job; thetype of work performed; attendance; punctuality andother relevant factors including the profitability of thecompany and where your current pay falls within apay range. This process is vital for continuous

improvement of employee performance.

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PERFORMANCE REVIEWS

Your performance is important to our company. Asstated above, your supervisor will review your jobprogress from the first day you report to work,updating your progress as you perform your duties

and responsibilities. It may be necessary, from time-to-time, based on your supervisor’s perspective ofhow well you are performing your duties, to set new job performance plans and goals as deemednecessary. Annual Employee PerformanceEvaluation Reviews will be conducted each yearduring the month of December.

This review process will consist of a meeting withyour supervisor to discuss past performance, areasin need of improvement, future goals and objectives,timetables and, as appropriate, your advancementpotential. Each review will focus on such factors asthe quality, quantity and timeliness of your work,knowledge of your job, initiative, attendance,personal conduct record and your perceived overallattitude toward your job and the company.

Our performance review program provides the basisfor better understanding between you and yourdepartment manager with respect to your jobperformance, potential and development withinIMAX. It is also at this time, based upon the positiveresults of your evaluation, that you may or may notreceive a salary increase.

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COMPENSATION PROGRAM

The IMAX compensation program is designed tocompensate qualified employees appropriately forthe work they perform. The compensation programis comprised of job descriptions, merit increases,

incentive compensation and pay policies.

JOB DESCRIPTIONS

IMAX maintains a job description for each position inthe company. Your job description outlines theduties and responsibilities of the position for whichyou have been hired. If the duties andresponsibilities of your position change, the jobdescription is revised to reflect those changes. Ifyou have any questions concerning your jobdescription, you may contact your supervisor or theHuman Resources Department.

PAY RANGES

Pay ranges are established for each pay gradebased on analysis of market pay levels forcomparable jobs within our industry.

Pay ranges are reviewed annually by HumanResources and adjusted to conform to market paylevels for comparable jobs in the community and theindustry.

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MERIT INCREASES/PAY INCREASES

 Assuming an employee’s performance meets theminimum requirements, an employee may beeligible for an annual merit increase. Meritincreases are considered once per year and occur

based upon the results of your annual employeeperformance evaluation. This annual reviewprocess will take place in December of each yearand earned pay increases will occur in the secondpay period of January each year.

PAY ADVANCES

Pay advances will not be granted to employees.

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OVERTIME

There may be times when you will need to workovertime so that we may meet the needs of ourcustomers. Non-exempt employees must have allovertime approved in advance by their supervisor.

In the case of mandatory overtime, your supervisorwill attempt to give you ample advance notice of theneed to perform overtime duties.

Overtime compensation is paid to all non-exemptemployees in accordance with Federal and StateWage and Hour Laws. Overtime is based on actualhours worked. Time off on sick leave, vacationleave or any authorized leave of absence will not beconsidered hours worked for purposes of performingovertime calculations. Failure to work scheduledovertime or overtime worked without priorauthorization from the supervisor may result in

disciplinary action, up to and including termination ofemployment. As business dictates, you areexpected to report to work as requested.If you are entitled to overtime pay under applicablelaw, you will be paid overtime as follows:

•  At the rate of one and one-half (1 !) timesyour regular hourly rate;

•  When you actually work more than 40 hoursin a work week; and

•  Where State Wage and Hour Lawrequirements so order.

Hours away from work due to vacation, holidays,personal time, sick leave or any other absence willnot be counted for the purpose of computingovertime. Exempt employees do not receiveovertime pay.

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SECTION 3:

TIME AWAY FROM

WORK AND OTHER

BENEFITS

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EMPLOYEE BENEFITS

IMAX has developed a comprehensive set ofemployee benefit programs to supplementemployees regular wages. Our benefits represent ahidden value of additional income to our employees.

This Employee Handbook briefly describes thecurrent benefit plans maintained by IMAX. Refer tothe actual plan documents and summary plandescriptions if you have specific questions regardingthe benefit plan. Those documents are controlling.IMAX reserves the right to modify its benefits at anytime. We will keep you informed of any changes.

HOLIDAYS

Our company normally observes the followingholidays during the year:

New Year’s DayMemorial DayFourth of JulyLabor DayThanksgivingThe Day after ThanksgivingChristmas (2 days)

In addition to the above holidays, you will be givenone Floating/Personal holiday that may be taken atyour discretion with approval from management.

If one of the above holidays occurs on Saturday, itnormally is observed on the preceding Friday. If theholiday occurs on Sunday, it normally is observed onthe following Monday.

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 All requests for vacation time must be pre-approved,in writing, by your supervisor before you can take

vacation. Generally vacation request approvaldepends upon operating requirements, length ofemployment (seniority considerations), and havingenough employees to cover the responsibilities ofthe department.

Newly hired employees may only take accrued vacation time when they have worked for thecompany for a period of six (6) months.

For Example: After six months of continuousservice, employees would have accrued 20hours of vacation time and they would be

allowed to take these 20 hours of accruedvacation based upon the approval of theirsupervisor.

Only accrued vacation time may be used andemployees are not allowed to “borrow” vacation timeor have a negative vacation balance.

The company offers this vacation benefit because itbelieves employees need to take a break from theirduties and responsibilities and get “re-energized”.

Vacation time may be carried over to the followingyear, up to a maximum of two days accrued.

Upon termination of employment, eligible employeeswho have provided at least two weeks’ advancenotice of their resignation will be paid any accrued but unused vacation in their final pay check.

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SICK DAYS

Full-time, non-exempt employees are eligible for

paid sick days each year. Sick days are calculatedaccording to your hire date, that is to say, youaccumulate sick leave each month.

The company allows non-exempt employees amaximum of six (6) sick days or 48 hours of sicktime per year and these hours are accrued at therate of 4.0 hours per month. Only accrued sick timecan be used and must be used in minimumincrements of ! day or 4.0 hours.

Non-exempt employees are not allowed to usenegative sick time. If the employee is ill and does

not have any sick time balance, that employee willbe docked in pay for time absent from work.

A Non-exempt employee who is eligible to use sicktime, and has time available, may use such sick timeto care for a sick child. However, this time will becounted against that employee’s sick time balance.

Sick days cannot be carried over to the followingyear. If you do not use your sick days during theyear, you will lose them.

Employees are not paid for earned or unused sick

days upon termination of employment.

Exempt employees (salaried) are not eligible for sickdays or sick time pay.

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BEREAVEMENT LEAVE

Full-time and Part-time employees who wish to taketime off due to the death of an immediate familymember should notify their supervisor immediately.Employees will be paid up to three (3) days ofbereavement leave per year. If an employeerequires more than three days to attend funeralservices or to make arrangements for funeralservices, this additional time will be unpaid.

Bereavement leave will normally be granted unlessthere are unusual business needs or staffingrequirements. Employees may, with theirsupervisors’ approval, use any available vacation forpaid time off as necessary.

Exempt employees may be provided time off withpay when necessary to comply with State andFederal Wage and Hour Laws.

IMAX defines “immediate family” as the employee’sspouse, parents, grand-parents, children, or siblings.

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JURY DUTY – All Employees

IMAX encourages employees to fulfill their civic

responsibilities by serving jury duty when required.Employees may request unpaid jury duty leave forthe length of absence. If desired, employees mayuse any available vacation for paid time off.

Exempt employees may be provided time off withpay when necessary to comply with state andfederal wage and hour laws.Employees must show the jury duty summons totheir supervisor as soon as possible to enablesupervisors to make arrangements to accommodatetheir absence. Employees are expected to report forwork whenever the court releases them. IMAX orthe employee may request an excuse from jury dutyif, in IMAX’s judgment, the employee’s absencewould create serious operational difficulties.

IMAX will continue to provide health insurancebenefits for the full term of the jury duty absence.Vacation, sick leave, and holiday benefits willcontinue to accrue during unpaid jury duty leave.

VOTING LEAVE - All Employees

IMAX believes that every employee should have theopportunity to vote in any Municipal, County, State

or Federal election, general primary or specialprimary. Any employee whose work schedule doesnot provide him or her two consecutive hours eitherbetween the opening of the polls and the beginningof his or her shift or between the end of his or hershift and the close of the polls will be granted up totwo paid/unpaid hours off in order to vote.

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Exempt employees may be provided time off withpay when necessary to comply with state andfederal wage and hour laws.

Notify your supervisor of the need for voting leave assoon as possible. When you return from votingleave, you must present a voter’s receipt to yoursupervisor as soon as possible.

MEDICAL INSURANCE

Eligible full-time employees may enroll in either asingle or a family contract after completing threemonths of employment. Information and enrollmentforms may be obtained from the Human ResourcesDepartment.

Premiums are paid through appropriate payrolldeductions.

Upon termination of employment, you may beentitled to continuation or conversion of the groupmedical insurance plan in accordance with the termsof the policy and/or applicable state and federal law.For more information, contact the Human ResourcesDepartment.

COBRA

You and your covered dependents will have the

opportunity to continue medical benefits for a periodof up to 36 months under the provisions of theFederal Consolidated Omnibus BudgetReconciliation Act (COBRA) when group medicalcoverage for you and your covered dependentswould otherwise end due to your death or because:

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•  Your employment terminates, for a reasonother than misconduct;

•  Your employment status changes due to areduction in hours;

•  Your child ceases to be a “dependent child”under the terms of the medical plan;

•  You become divorced or legally separated;or,

•  You become entitled to Medicare.

In the event of divorce, legal separation, or a child’sloss of dependent status, you or a family membermust notify the plan administrator within 30 days ofthe occurrence of the event. The plan administratorwill notify the individuals eligible for continuationcoverage of their right to elect COBRA continuationcoverage.

DISABILITY LEAVE

IMAX provides medical leaves of absence withoutpay to eligible employees who are temporarilyunable to work due to a serious health condition ordisability. For purposes of this policy, serious healthconditions or disabilities include inpatient care in ahospital, hospice, or residential medical care facility;continuing treatment by a health care provider; andtemporary disabilities associated with pregnancy,childbirth and related medical conditions.

Eligible employees are granted medical leaves inaccordance with the company’s policies regardingFamily and Medical Leave of Absence HR 001;Extended Medical Leave of Absence HR 002; and Personal Leave of Absence HR 003.  Thesemedical leaves are very explicit in their content, and

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set the rules by which employees are able to usethem. January 2006Revised March 2012 9

Eligible employees should make requests formedical leave to their supervisors at least 15 days inadvance of foreseeable events and as soon as

possible for unforeseeable events.

 A health care provider’s statement must besubmitted verifying the need for medical leave andits beginning and expected ending dates. Anychanges in this information should be promptlyreported to IMAX. Employees returning frommedical leave must submit a health care provider’sverification of their fitness to return to work.

Employees who sustain work-related injuries areeligible for a medical leave of absence for the periodof disability in accordance with all applicable laws

covering occupational disabilities.Subject to the terms, conditions and limitations ofthe applicable plans, IMAX will continue to providehealth insurance benefits for the full period of theapproved medical leave as stated in each medicalleave of absence policy.

Benefit accruals such as vacation, sick leave andholiday benefits, will not continue during theapproved medical leave period.

So that an employee’s return to work can beproperly scheduled, an employee on medical leave

is requested to provide IMAX with a least one weekadvance notice of the date the employee intends toreturn to work. When a medical leave ends, theemployee will be reinstated to the same position, it ifis available, or to an equivalent position for whichthe employee is qualified, unless otherwise requiredby state and federal law.

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If an employee fails to return to work on the agreedupon return date, IMAX will assume that theemployee has resigned.

For further information about the company’s variousleave policies you should contact the HumanResources Department.

FAMILY AND MEDICAL LEAVE ACT

FMLA)

Eligible employees may take up to 12 weeks ofunpaid family medical leave within a 12 monthperiod and be restored to the same or an equivalentposition upon their return to work.

To be eligible for Family and Medical Leave, (FMLA)you must satisfy both of the following conditions:

•  Worked for the company for at least 12months and for at least 1250 hours in thepast 12 months; AND 

•  At the time leave is requested either: (a)worked at a worksite with 50 or moreemployees or (b) worked at a worksite withless than 50 employees if 50 or moreemployees are employed within 75 miles ofthe worksite.

Eligible employees may take Family and MedicalLeave ONLY for any of the following reasons:

1. The birth of your child and to care for suchchild;

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2. The placement of a child with you foradoption or foster care, and in order for thenewly placed son or daughter;

January 2006Revised March 2012 11

3. To care for a spouse, child, or parent(“covered relations”) with a serious healthcondition; and

4. Because of your own serious healthcondition that renders you unable to performthe essential functions of your position.

 Any leave due to the birth and care of a child or theplacement of a child for adoption or foster care, andcare of the newly placed child, must be completedwithin one (1) year of the date of birth or placementof the child.

If you request leave because of a birth, adoption orfoster care, placement of a child or to care for acovered relation with a serious health condition anyaccrued paid vacation, personal days or family leavemust be used first as part of your Family andMedical Leave (FMLA).

If you request leave because of your own serioushealth condition or to care for a covered relation witha serious health condition any accrued paidvacation, personal days, family leave or medical orsick leave must be used first as part of your Familyand Medical Leave (FMLA).

The substitution of paid leave time for unpaid leavetime does not extend the 12 week leave period. Also, your Family and Medical Leave (FMLA) will runconcurrently with other types of leaves, such asworker’s compensation disability leave for instance.

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 During an approved Family and Medical Leave(FMLA), the company will maintain your healthbenefits under the same terms and conditionsapplicable to employees not on leave.January 2006Revised March 2012 12

•  If paid leave is substituted for unpaid Familyand Medical Leave (FMLA), the companywill deduct your portion of the health planpremium as a regular payroll deduction.

•  If your leave is unpaid, you must pay yourportion of the premium by makingarrangements with your supervisor.

•  Your health coverage may cease if yourpremium payment is more than 30 days late.If your payment is more than 30 days late,we will send you a letter to this effect. If wedo not receive your co-payment within 15

days of this letter, your coverage will cease.

If you elect not to return to work at the end of theleave for at least 30 calendar days, you will berequired to reimburse the company for the cost ofthe premiums paid by the company for maintainingcoverage during your unpaid leave, unless youcannot return to work because of a serious healthcondition or because of other circumstances beyondyour control.

When spouses are employed by this company, theyare entitled to a combined total of 12 weeks’ leave:(1) for birth, adoption, or foster care and in order tocare for such a child; or (2) to care for a parent witha serious health condition. Each individual isentitled to 12 weeks’ leave because of his or herown serious health condition or to care for theserious health condition of his or her child or spousewithout counting leave time taken by the otherspouse.

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Leave due to a serious health condition may betaken intermittently (in separate blocks of time dueto a single health condition) or on a reduced leave

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schedule (reducing the usual number of hours youwork per workweek or workday) if medicallynecessary. If the leave is unpaid, the company willadjust your salary based on the amount of timeactually worked. In addition, while you are on anintermittent or reduced schedule leave, the companymay temporarily transfer you to an availablealternate position that better accommodates yourrecurring leave and that has equivalent pay andbenefits.

You must complete the appropriate Family and

Medical Leave (FMLA) forms. These forms arecontained in the company’s policy HR 001, Family and Medical Leave Policy (FMLA), and areavailable from your supervisor or from the HumanResources Department. If your need for Family andMedical Leave (FMLA) is foreseeable, (in the caseof pregnancy), you must give 30 days prior writtennotice. If this is not possible, in the case ofemergency, you must give notice to your supervisoras soon as practicable (within 1 or 2 business daysof learning of your need for leave). Failure toprovide such notice may be grounds for delay ofleave and it could be denied. If your need isbecause of a planned medical treatment, attempt toschedule the treatment to avoid disrupting thecompany’s operations.

MEDICAL CERTIFICATION FOR A

SERIOUS HEALTH CONDITION

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If you are requesting leave because of your own or acovered relation’s serious health condition, theappropriate Health Care Provider must supplymedical certification. Obtain a medical certificationform from your supervisor or from the HumanJanuary 2006Revised March 2012 14

Resources Department. If possible you shouldprovide the medical certification within 15 days afteryou request leave. If you provide at least 30 daysnotice of your need for medical leave, you mustprovide the medical certification before your leavebegins or the leave may be denied. If you do notprovide the required medical certification in a timelymanner, your leave may be delayed until it isprovided or denied.

The company, at its expense, may require anexamination by a second health care provider

designated by the company, if it reasonably doubtsthe medical certification you initially provide. If thesecond health care provider’s opinion conflicts withthe original medical certification, the company, at itsexpense, may require a third, mutually agreeable,health care provider to conduct an examination andprovide a final and binding opinion. The companymay require subsequent medical recertification.Failure to provide requested certification within 15days if such is practicable, may result in delay offurther leave until is it provided.

TRACKING YOUR LEAVE

The 12-month period in which 12 weeks of leavemay be taken will be tracked based on the first dayof the FMLA leave.

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REPORTING WHILE ON LEAVE

If you take leave because of your own serious healthcondition or to care for a covered relation with aserious health condition, contact your supervisor ona prescheduled basis regarding the status of themedical condition and your intention to return towork. In addition, you must give notice as soon aspracticable (within two business days if feasible) ifthe dates of leave change or are extended or initiallywere unknown.

RETURNING TO WORK

If you take leave because of your own serious healthcondition (except if you are taking intermittentleave), you must provide medical certification thatyou are able to return to your normal work duties,without restriction before you can return to work.Obtain return-to-work medical certification formsfrom your supervisor or from the Human ResourcesDepartment.

Employees failing to complete the return-to-work

medical certification form will not be permitted toreturn to their normal work duties until it is provided. 

Certain highly compensated employees or “keyemployees” may be denied restoration to their prioror equivalent position. Key employees are thoseemployees who are among the highest paid tenpercent of employees within 75 miles of the

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worksite. Denial is based on the followingconditions:

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•  The denial is necessary to preventsubstantial economic injury to the employer;

•  The employer has notified the employee ofhis or her “key” employee status as well asits decision to deny restoration should theleave take place or continue; and

•  The employee elects not to return to workafter being notified of the employer’sdecision.

EXTENDED LEAVE FOR SERIOUS

HEALTH CONDITION

Leaves taken because of your own serious healthcondition may be extended on a month-to-monthbasis for a maximum of an additional eight (8) weeksupon: (1) written request to the company; (2) proofthat the serious health condition has continued; and(3) approval by the company (which is subject to itsbusiness needs). If you do not return to work on theoriginally scheduled return date nor request inadvance an extension of the agreed upon leave withappropriate documentation, you will be deemed tohave voluntarily terminated your employment withthe company. If you request an extension of your

leave beyond the initial 12 weeks period, you mustsubmit medical certification of your continuedserious health condition in advance for each monththat the leave is extended. Reinstatement is notguaranteed on an extended leave and will dependon company needs. See the company’s policy

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HR 002, Extended Medical Leave, for moredetailed information.

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NO WORK WHILE ON LEAVE

The taking of another job while on Family andMedical Leave (FMLA) or any other authorized leavemay lead to disciplinary action, up to and includingtermination of employment.

STATE AND LOCAL FAMILY AND

MEDICAL LEAVE LAWS

Where state or local Family and Medical Leave(FMLA) laws offer more protection or benefits toemployees, the protection or benefits provided bysuch laws will apply.

SOCIAL SECURITY

During your employment, you and IMAX bothcontribute funds to the Federal Government tosupport the Social Security Program. This programis intended to provide you with retirement benefitpayments and medical coverage once you reachretirement age.

UNEMPLOYMENT INSURANCE

Upon separation of employment, you may beentitled to unemployment insurance. Informationabout unemployment insurance can be obtainedfrom the Human Resources Department.

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WORKER’S COMPENSATION

On-the-job injuries are covered by our Worker’sCompensation insurance policy. This insurance isprovided to you at no cost. If you are injured on the job, no matter how slightly, report the incidentimmediately to your supervisor. Consistent withapplicable state law, failure to report an injury withina reasonable period of time could jeopardize yourclaim.

We ask for your assistance in alerting management

to any condition which could lead or contribute to anemployee accident.The waiting period for workers’ compensation is upto 14 days, without hospitalization, for any singlework-related illness or injury.

 Additionally, IMAX will attempt to provide areasonable accommodation which is medicallynecessary, feasible, and does not impose an unduehardship on IMAX as prescribed by applicablefederal, state or local law.

401 k) QUALIFIED RETIREMENT

PLAN

IMAX provides eligible employees with a 401(k)Qualified Retirement Plan which is an excellentmeans of long-term savings for your retirement. Thecompany’s contribution at the present time is 100percent of the employee’s contribution, up to a

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maximum of six percent (4%) of their annualcontribution. However, IMAX reserves the right tomodify or change this policy at any time, with orwithout notice.

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You can obtain a copy of the Summary PlanDescription which contains the details of the planincluding eligibility and benefit provisions from theHuman Resources Department. In the event of anyconflict in the description of the plan, the official plandocuments, which are available for your review,shall govern. If you have any questions regardingthis plan, see your plan administrator.

PROFESSIONAL DEVELOPMENT

IMAX believes in supporting the individual growth ofour employees. To encourage professionaldevelopment, IMAX may pay a portion of companyrequired, work-related classes and seminars.

 All employees may participate in this programimmediately upon hire.

Our company may pay for all professional educationcourses required by IMAX.

EMPLOYEE ASSISTANCE PROGRAM

 All employees may participate in our Employee Assistance Program (EAP).

Our Employee Assistance Program (EAP) offershelp to employees and their immediate familymembers with a wide range of problems. Situationsaddressed by the EAP include marriage and family

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problems, emotional problems, alcoholism andalcohol abuse, drug abuse and dependency,financial problems, compulsive gambling and eatingdisorders, to mention a few. Your conversations andall records are strictly confidential.

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The administrative cost of this program is fully paidby IMAX. Additional information on these servicesmay be obtained from the Human ResourcesDepartment.

COMPANY DISCOUNTS

Full-time employees may purchase merchandise ata reduced price. Any purchases made through thisdiscount program must be for your personal orfamily use and not for resale.

 All purchases of these products must be paid, in full,at the time of purchase.

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SECTION 4:

ON THE JOB

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NON-DISCLOSURE

In your job, you may have access or be exposed toinformation regarding the company. Each employeeis prohibited from disclosing, directly or indirectly, toany unauthorized person, including otheremployees, business or other entity, or using for theemployee’s own purposes, any confidentialinformation. The protection of confidential businessinformation and trade secrets is vital to the interestsand the success of IMAX. Such confidential

information includes, but is not limited to:

•  Vendor Information;•  Sales and shipping reports profit margins;•  Compensation data;•  Computer hardware and processes;•  Computer programs and codes;•  Customer lists, credit information or

customer-handling methodology;•  Customer preferences;•  Company financial information;•  Information regarding costs, profits, markets,

market studies and forecasts;•  Cost of goods and discounts offered;•  Marketing strategies;•  Substance of agreements with customers

and others;•  Consulting and training programs and

arrangements;•  Competitive analysis;•  Pending projects and proposals;

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•  Billing and fee policies and data;•  Key personnel data;•  Know-how information;•  New materials research;

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•  Pending projects and proposals;•  Proprietary production processes;•  Research data and development strategies;•  Master files;•  Any and all information concerning company

operational details and business plans; and•  Company policies and procedures.

Employees who are exposed to confidentialinformation may be required to sign a non-disclosureagreement as a condition of employment.Employees who improperly use or disclose tradesecrets or confidential business information will be

subject to disciplinary action, up to and includingtermination of employment and legal action, even ifthey do not actually benefit from the disclosedinformation.

ATTENDANCE AND PUNCTUALITY

Your consistent and regular attendance is essentialto the successful operation of our company. IMAXhas adopted the following guidelines for attendanceand punctuality. Absences and tardiness, while sometimesunavoidable, results in disruption of the normal

routine of the company’s operations and increasesthe burden on your co-workers who must share anincreased workload when you are absent from work.IMAX expects all employees to assume diligentresponsibility for their attendance and promptness.

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 Accordingly, it is your responsibility to arrive at workin sufficient time to begin work at the start of yourscheduled shift. Attendance and punctuality areimportant factors for your success within ourcompany. We work as a team and this requires thateach person be in the right place at the right time.January 2006

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If you plan to be absent or tardy, you must seekapproval from your supervisor in advance as soonas possible in order for the absence to be excused.Unplanned absences or tardiness, such as thoseresulting from sickness or other emergencies mustbe reported to your supervisor, or, in his or herabsence, another member of management at least two hours prior to the start of your scheduled shift.Please do not leave messages with fellowemployees. Failure to properly notify the companywill result in an unexcused absence or tardy.

 You must personally call in each day you will beabsent unless prior arrangements have beenmade with your supervisor or if personal ormedical leave has been granted. You must nothave a friend or family member call for you.Texting or email is not accepted.

Failure to call in each day will result in the absencebeing considered unexcused. If you are absent forthree consecutive days without personally reportingin, you will be deemed to have abandoned your joband voluntarily resigned from your employment.

 Attendance and punctuality are some of the factorsused in determining whether you are entitled to amerit increase or promotion. Tardiness and/orabsenteeism that is not excused or excessive in the judgment of the company is grounds for disciplinaryaction, up to and including termination ofemployment.

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Personal issues requiring time away from work, suchas doctor’s appointments or other matters, should bescheduled during your non-work hours wheneverpossible.

January 2006

Revised March 2012 3IMAX has established a point system to be used toaccount for absences and tardiness of non-exemptemployees which is included in the company’sattendance policy. See the Human ResourcesPolicy Number HR 010, Attendance Policy for moredetailed information.

WORKWEEK AND OVERTIME

The workweek for a full-time employee is 40 or morehours per week. Please report to work promptly atyour scheduled time each day. Although you are not

normally required to work more than 40 hours perweek, from time to time your supervisor may ask thatyou work beyond your normally scheduled workhours. When this occurs, management will attemptto give you advance notice of these mandatoryassignments.

Because of the nature of our business, your workschedule may vary depending on your job. Checkwith your supervisor if you have any questions aboutyour hours of work.

MEAL TIME

Warehouse Employees

Up to 30-minutes, unpaid meal break must be takeneach day. Your supervisor is responsible forscheduling and approving this time.

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Office Employees

Up to 60-minutes, unpaid meal break must be takeneach day. Your supervisor is responsible forscheduling and approving this time.January 2006

Revised March 2012 4BREAKS

Warehouse Employees

Two, 15-minute paid breaks each day will bescheduled and approved by your supervisor, unlessotherwise noted.

Office Employees

Two, 15 minute paid breaks each day will bescheduled and approved by your supervisor.

WORK ASSIGNMENTS

Work assignments will be distributed by yoursupervisor. When possible, you will be advised offuture assignments in advance, so you will haveample time to prepare for the assignment.

Once you have begun an assignment you will reportdirectly to your supervisor for all matters relating toits completion. Upon completion of the assignmentyou must report back to your supervisor that the

assignment has been completed and await furtherinstructions or work assignments.

ON THE JOB TRAINING

Your supervisor is responsible for initiating all on the job training for employees within your department.

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This may include safety training, participation in off-site training and continuing education whennecessary for job safety and work performance.

Training will be conducted during regular workinghours whenever possible.January 2006

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IMAX will pay for any required training programs.Employees may be tested from time to time toevaluate the effectiveness of the training program.

If you have any questions regarding training, pleasecontact your supervisor.

COACHING FOR PERSONAL

DEVELOPMENT

 An important aspect of your work experience is togrow and develop both as an employee and aperson. We live in a constantly evolving world,where skill levels and performance standards arerising. It is important that each person is able andwilling to grow and develop.

The best way to develop is through feedback fromother people in the company. Coaching is theprocess whereby you receive constructive input thatallows you to improve. Without coaching, you maynever realize your full potential. Seeing allemployees reach their full potential is an importantpart of working for the company.

Coaching may require either giving or receivingnegative feedback. However, if you do not receivethe feedback, you cannot grow. Coaching alsoinvolves providing positive reinforcement so that youcan repeat the desired acceptable performance orbehavior.

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We should not be afraid to either receive or givecoaching or feedback because it permits us tobecome better people and better at our jobs.Coaching should be done in a positive environmentwhere open discussion can take place.

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Coaching should be valued, encouraged andwelcomed. Coaching and giving feedback maycome from many different sources. It may comefrom a manager or co-worker. We can learn fromone another. This is what coaching and feedback isall about.

CLEAN UP

Toward the end of each shift, ten minutes aredesignated for cleaning the work area of dust,excess dirt on the floors, cardboard boxes, broken

packing crates, and other debris. This time is alsoused to allow employees to wash themselves aswell. This time is paid by the company.

EMPLOYEE CONDUCT AND WORK

RULES

To ensure orderly operations and provide the bestpossible work environment, IMAX expects you tofollow rules of conduct that will protect the interestsand safety of all employees and the organization. Itis not possible to list all the forms of behavior thatare considered unacceptable in the workplace. The

following are examples of infractions of rules ofconduct that will result in disciplinary action, up toand including termination of employment:

•  Submission of an employment applicationcontaining false information;

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•  Theft or misappropriation of property,materials, services or equipment fromcompany or employees.

•  Unauthorized possession or removal ofcompany property from the workplace;

•  Falsifying, altering or destroying anytimecard or record, punching someoneelse’s timecard or permitting someone elseto punch your time card.

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•  Falsifying other company records;•  Working under the influence of alcohol or

legal and illegal drugs;•  Possession, distribution, sale, transfer or

use of alcohol or illegal drugs in theworkplace, while on duty, or while operatingemployer-owned vehicles or equipment;

•  Fighting or threatening violence in theworkplace;

  Engaging in actions that endangeremployees, customers or visitors, or thatendanger or damage company property ordisrupts the flow of work;

•  Sleeping while on duty;•  Violation of safety or health rules;•  Negligence or improper conduct leading to

damage of employer-owned or customer-owned property;

•  Smoking in prohibited areas;•  Unauthorized possession of firearms, other

weapons or explosives, or threatening touse a firearm, other weapons or explosiveswhile on duty;

•  Excessive absenteeism or any absencewithout notice that results in a no call, noshow for three days or more;

•  Absences, tardiness or departure from theworkplace without proper notification orauthorization;

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•  Insubordination or neglect of duties,unsatisfactory or poor performance;

•  Creating or contributing to unsanitary orunsafe workplace conditions;

•  Unauthorized use of telephones, mailsystem or other employer-owned equipment;

•  Unauthorized disclosure of business“secrets” or confidential information;

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•  Exercise poor judgment or decisions bymanagement that directly violate companypolicies, endanger employees,inconvenience customers or cause damageto the company;

•  Threatening an employee to the point itcreates a hostile work environment thatmakes the employee fear for his/her job;

•  Threatening an employee with the possibletermination of employment without

 justification.

Employment with IMAX is at the mutual consent ofIMAX and the employee, and either party mayterminate that relationship at any time, with orwithout cause, and with or without advance notice.

PROGRESSIVE DISCIPLINE

The purpose of this policy is to state IMAX’s positionon administering fair, equitable, and consistentdiscipline for unsatisfactory conduct or unacceptablebehavior in the workplace. The best disciplinary

measure is the one that does not have to beenforced and comes from good leadership and fairsupervision at all employment levels.

IMAX’s own best interest lies in ensuring fairtreatment of all employees and in making certainthat disciplinary actions are prompt, uniform, and

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impartial. The major purpose of any disciplinaryaction is to correct the unacceptable behavior,prevent recurrence, and counsel the employee forsatisfactory service in the future.

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Disciplinary action may call for any of four steps:verbal/written warning, written warning, suspensionwith or without pay, or termination of employment,depending on the severity of the infraction and thenumber of Corrective Action write-ups received todate. There may be circumstances when one ormore steps are bypassed depending upon theseverity of the infraction.

Progressive discipline means that, with respect to

most disciplinary problems concerning employeeunacceptable behavior, these steps will normally befollowed: a first offense may call for a verbal/writtenwarning; a next offense may be followed by a writtenwarning; another offense may lead to suspension,with or without pay; and the final step may lead totermination of employment.

IMAX recognizes that there are certain types ofunacceptable employee behavior that are seriousenough to justify either a suspension or in somecases warrant immediate termination ofemployment.

By using progressive discipline, we hope that mostemployee unacceptable behavior issues can becorrected at an early stage, benefiting both theemployee and IMAX.

For additional information concerning this subject,see Human Resources Policy Number HR 004, 

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Progressive Discipline for more detailedinformation.

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CORRECTIVE ACTION PROGRAM

Progressive Discipline)

OBJECTIVE  

The company is committed to being the industryleader in satisfying our customers and providingthem with the highest quality goods and services.To meet this goal, performance objectives areestablished for all employees. If an employee failsto meet performance goals and objectives, acorrective action plan will be developed to improveperformance to an acceptable level. The purpose ofour Corrective Action Program is to recognizeemployee unacceptable behavior and give thatperson an opportunity to correct it.

CORRECTIVE ACTION PROCEDURES  

Depending on the nature and severity of theunacceptable behavior, the corrective action mayrange from a verbal/written warning to termination asoutlined in the company policy. See HR Policy Number  HR 004, Progressive Discipline for more

detailed information.  When making a decision onthe appropriate step in the corrective actionprocedure, the employee’s entire record will beconsidered.

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ESTABLISHING PERFORMANCE 

 An employee with a performance, behavior, and/orattendance problem, (depending upon the situation),will be given notice of the problem and anopportunity to improve before formal correctiveaction is taken, unless the action endangersthemselves or others. The purpose of the notice isto establish a basis for performance, behavior and/orattendance; identify the area(s) in which theemployee must demonstrate immediate andcontinued improvement; and help the employeedevelop a plan and time frame for improvement.

Notice of an opportunity to correct the problem maynot be appropriate in all instances in the judgment ofthe company, depending on the nature and severityof the unacceptable behavior as well as theemployee’s performance history.

DOCUMENTING PERFORMANCE 

HISTORY:  

Documentation is part of the corrective actionprocess. Documentation may include attendancerecords, safety records, previous corrective actionnotices, performance evaluations, critical incidentfiles, memoranda and other written communication.Documentation is simply a written record of poorperformance, violation of company policies,unacceptable behavior and/or attendance.

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MANAGEMENT RESPONSIBILITIES  

Supervisors and Managers are responsible foradministering the Corrective Action Program(Progressive Discipline). The role of the HumanResources Department is to ensure that the action isappropriate and consistent within the facility and withpast practices to ensure that the company policy isadministered in a fair and equitable manner to allemployees.

The Corrective Action Program (ProgressiveDiscipline) has been developed to give you guidanceand provide you an opportunity for self-improvementand personal development. If an occasion happensthat you feel corrective action taken was notappropriate, or that the facts or circumstances werenot fully considered, you may question them withyour supervisor, manager, or the Human ResourcesDepartment.

The company is committed to maintainingoutstanding employee relations, and employees who

feel they may not have been treated appropriatelymay ask for the matter to be reviewed.

The Human Resources Department is available toassist employees who have questions or who needassistance in presenting their concerns.

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January 2006Revised March 2012 13

THE FOUR STEPS OF CORRECTION

ACTION PROGRESSIVE DISCIPLINE)

In the event of a problem involving an employee,including but not limited to a problem with jobperformance, violation of company policies,unacceptable behavior, and/or attendance, thecompany will ordinarily apply the four-step correctiveaction process described below. Please note,

however, that the company may elect to skip any ofthese steps when it believes that in light of all factsand circumstances, it is appropriate to do so. Thisprocess applies to all employees.

STEP ONE:

VERBAL/WRITTEN NOTICE 

In this step, the supervisor reviews the problem,obtains the employee’s acknowledgment that he/sheunderstands the performance requirement and therequired improvement, and obtains a verbalcommitment from the employee to improve. This

counseling must be documented on an EmployeeCorrective Action Notice Form and is therefore awritten record that informs the employee of what heor she did wrong and counsels them to correct theunacceptable behavior. If a written reprimand isgiven, it will typically be dated and signed by theemployee and employee’s supervisor.

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suspend the employee pending investigation and/orconsultation with the Human ResourcesDepartment. As the employee is now suspended,this suspension is the final attempt by the companymanagement to give the employee one lastopportunity to respond to discipline, to correct his orher unacceptable behavior short of termination ofemployment.

January 2006Revised March 2012 15

The suspension will be without pay and can rangefrom two (2) to five (5) days, depending upon theseverity of the offense, and is decided bymanagement in conjunction with the HumanResources Department. The employee could alsobe placed on probation for a period of 30 days tofind out if this employee is capable of correcting hisor her unacceptable behavior in order to continueemployment. The written suspension will typically

be dated and signed by the employee and theemployee’s supervisor.

If an employee refuses to sign a written suspension,another member of management will witness thefact that the employee refused to sign. A copy willbe filed in the employee’s master personnel file.

STEP FOUR:

TERMINATION  

If the employee’s performance, unacceptablebehavior, and/or attendance continues to be

unsatisfactory or the employee violates the same ora similar rule, policy or practice, the employee isterminated for failure to demonstrate immediate andsustained improvement which must be documentedon an Employee Corrective Action Notice Form.

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This is the final step when an employee has failed torespond or improve from the other corrective actionnotices (progressive discipline) to correct theirunacceptable behavior or unacceptable behavioralpattern. Before a decision is made to terminate theemployee, the case shall be reviewed with theHuman Resources Department.

January 2006Revised March 2012 16

TIME OFF INVESTIGATION  

IMAX reserves the right to suspend an employeewith or without pay to conduct an investigation anddetermine what, if any, corrective action should betaken at any step in the process. If the employee issuspended, he or she must comply with provisionsof the suspension and report back to work at the

designated time, or he/she will be considered tohave abandoned his/her job and resigned, effectivedate of the suspension.

For more detailed information concerning thecompany’s policy on corrective action, see HumanResources Policy Number HR 004, ProgressiveDiscipline.

COMPUTER SOFTWARE LICENSING

IMAX purchases or licenses the use of variouscomputer software programs. Neither IMAX nor any

IMAX employee has the right to duplicate thiscomputer software or its related documentation.Unauthorized duplication of computer software is afederal offense, punishable by up to a $250,000 fineand five years in prison.

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IMAX prohibits the illegal duplication of software.You must use the software in accordance with thelicense agreement. This policy applies not only toindividual desktop computers and laptops but tolocal area networks as well.Employees learning of any misuse of software orrelated documentation within IMAX shall notify amember of management. Employees whoreproduce, acquire or use unauthorized copies ofcomputer software will be subject to disciplinaryaction, up to and including termination.January 2006Revised March 2012 17

CUSTOMER AND PUBLIC RELATIONS

Our company’s reputation is built on excellentservice and quality of work. To maintain thisreputation requires the active participation of everyemployee.

The opinions and attitudes that customers havetoward our company may be determined for a longperiod of time by the actions of every employee.Each employee must be sensitive to the importanceof providing courteous treatment in all workingrelationships.

SOLICITATION AND DISTRIBUTION

In order to avoid unnecessary annoyances andinterruptions to your work, solicitation by anemployee of another employee is prohibited whileeither person is on working time.

Employee distribution of literature, includinghandbills, in work areas is prohibited at all times.

Trespassing, soliciting or distribution of literature bynon-employees on these premises is prohibited at alltimes.

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CHANGES IN PERSONAL DATA

To aid you and your family in matters of personalemergency, we maintain up-to-date information.Changes in name, address, telephone number,

marital status, number of dependents or changes innext of kin or beneficiaries must be given to theHuman Resources Department promptly as theyoccur.January 2006Revised March 2012 18

PROTECTING COMPANY

INFORMATION

Protecting company information is the responsibilityof every employee and we all share a commoninterest in making sure it is not improperly oraccidentally disclosed. Do not discuss company

confidential business with anyone who does notwork for us. Some information may bedepartmentally confidential and should not bepassed to other employees.

 All telephone calls regarding information concerninga current or former employee must be forwarded tothe Human Resources Department for them tohandle.

The company’s address shall not be used for thereceipt of personal mail.

CONFLICT OF INTEREST/CODE OF

ETHICS

 A company’s reputation for integrity is its mostvaluable asset and is directly related to the conductof its officers and other employees. Therefore, youmust never use your position with IMAX, or any of its

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clients, for private gain, to advance your personalinterests, to obtain favors or benefits for yourself,members of your family, or any other individual(s),corporations or business entities.

IMAX adheres to the highest legal and ethicalstandards applicable in our business. IMAX’sbusiness is conducted in the strict observance ofboth the letter and spirit of all applicable laws andthe integrity of each employee is of utmostimportance.

January 2006

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Employees of IMAX shall conduct their personalaffairs in such a fashion that their duties andresponsibilities to IMAX are not jeopardized andlegal questions do not arise with respect to theirassociation or work with IMAX.

In general, the use of good judgment, based on highethical principles, will guide you with respect toacceptable conduct. Should a situation arise whereit is difficult to determine the proper course of action,the matter should be discussed openly with yourimmediate supervisor and, if necessary, with thepresident of IMAX.

Compliance with this policy of business ethics andconduct is the responsibility of every employee.Disregarding or failing to comply with this standardof business ethics and conduct could lead todisciplinary action, up to and including termination of

employment.

CARE OF EQUIPMENT

You are expected to demonstrate proper care whenusing the company’s property and equipment. No

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property may be removed from the premises withoutthe proper authorization of management.

If you lose, break or damage any property, report itto your supervisor at once.

January 2006

Revised March 2012 20

OUTSIDE EMPLOYMENT

IMAX reserves the right to ask you to resign fromoutside employment which interferes with the abilityto perform your job duties, or is performed for

individuals or companies who are in competition withIMAX. Before considering additional employment,please discuss the matter with your supervisor or theHuman Resources Department.

EMPLOYMENT OF RELATIVES

The company does not prohibit the employment ofrelatives of an existing employee, however, in therare instance when such hiring occurs or such arelationship develops, and unless prohibited byapplicable laws, the related employees will not bepermitted to work closely with each other or withinthe same line of reporting.

 A supervisor may not hire an individual to workunder his or her supervision if that individual and thesupervisor have an on-going romantic relationship,including but not limited to, marriage, or if thatindividual is a member of the supervisor’s immediate

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family. The term “immediate family” or “relative”refers to husband, wife, fiancé, fiancée, brother,sister, parent, grandparent, child, grandchild,step/half-related individual, aunt, uncle, cousin, in-law and an individual involved in unwed cohabitationwith the employee.

If during the course of employment, a marriage,transfer, promotion or other circumstances of anemployee creates a situation in conflict with thispolicy, the company will attempt to remedy theproblem by transferring one of the employees.

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If the company determines that the transfer is notfeasible, the two employees will be given theopportunity to decide which one will resign. If theemployees do not make a decision in a timelyfashion, the company will take action as best meets

its business needs.

In the case of marriage of persons within the samedepartment, an effort will be made to assigncomparable job duties so as to minimize problems ofsupervision, safety, security and morale.

TRAVEL/EXPENSE ACCOUNTS

IMAX will reimburse employees for reasonableexpenses incurred through pre-approved businesstravel or entertainment.

 All cash advances must be pre-approved andaccounted for and date stamped expense receiptsare required.

Business expenses will be reimbursed according tothe company’s travel policy and practices as set

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forth in HR 016 – Expenses Related to BusinessTravel and Entertainment.

PERSONAL PROPERTY

IMAX is not responsible for loss or damage to

personal property.

Valuable personal items, such as purses and allother valuables, should not be left in areas wheretheft might occur.

January 2006Revised March 2012 22

VISITORS

If you are expecting a visitor, please notify thereceptionist. All visitors must first check in at thereception area and sign the visitor book and mustreceive a Visitor Badge. Visitors are not allowed inany area of the building without being accompaniedby an authorized employee. Under nocircumstances will visitors be allowed in confidential,unauthorized or potentially hazardous areas.

SIGNING IN AND OUT

 A daily sign in/sign out program is provided on eachdesk computer to maintain an accurate record ofeach employee’s location. Please use this computerlog whenever you enter or leave our building.

NATURAL DISASTERS

Natural disasters including tornados, hurricanes,earthquakes, mudslides, floods and fires are to beexpected from time to time. Although driving may bedifficult in some areas due to damaged freeways

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and streets, when caution is exercised, the roadsare normally passable or alternate routes areavailable. Except in severe cases, we are allexpected to work our regular hours. Time taken offdue to natural disasters while the business remainsopen is to be used as vacation, sick day, or isunpaid.

Exempt employees may be provided time off withpay when necessary to comply with State andFederal Wage and Hour Laws.

If extreme conditions require closing of the building,you will be notified by your supervisor.January 2006Revised March 2012 23

PERSONAL TELEPHONE CALLS

It is important to keep our telephone lines free forcustomer calls. Although the occasional use of the

company’s telephones for a personal emergencymay be necessary, routine personal calls arediscouraged and should be kept to a minimum. Ifthere is an emergency, we ask that you keep the callto three minutes. Employees are permitted to usethe phone for personal reasons during their breaks.

ELECTRONIC MAIL MONITORING

We recognize your need to be able to communicateefficiently with fellow employees. Therefore, wehave installed an internal electronic mail (E-Mail)system to facilitate the transmittal of business-related information within IMAX.

The E-Mail system is for business use only. The useof the company E-Mail system for personalcommunications or for non-job-related solicitationsincluding, but not limited to, religious or politicalcauses is strictly prohibited. Employees are also

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prohibited from the display or transmission ofsexually-explicit images, messages, ethnic slurs,racial epithets or anything which could be construedas harassment or disparaging of others.

Employees shall not use unauthorized codes orpasswords to gain access to other’s files. All E-Mail passwords must be made available toIMAX at all times.

Violation of this policy may result in disciplinaryaction, up to and including termination ofemployment.January 2006Revised March 2012 24

For business purposes, management reserves theright to enter, search and monitor the privatecompany E-Mail system and the files/transmission ofany employee without advance notice andconsistent with applicable state and federal laws.

Employees should expect that communications thatthey send and receive by the private IMAX E-mailsystem will be disclosed to management.Employees should not assume that communicationsthat they send and receive by the private IMAX E-mail system are private or confidential.

VOICE MAIL MONITORING

 

We recognize your need to be able to communicateefficiently with fellow employees and customers.Therefore, we have a voice mail system to facilitatethe transmittal of business-related information within

IMAX and with our customers.

The voice mail system is for business use only. Theuse of IMAX’s voice mail system for personalcommunications or for non-job-related solicitations,including but not limited to, religious or politicalcauses is strictly prohibited. Employees are also

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prohibited from the transmission of sexually-explicitmessages, ethnic slurs, racial epithets or anythingwhich could be construed as harassment ordisparaging of others.

 All voice mail passwords must be made available toIMAX at all times.

Violation of this policy may result in disciplinaryaction, up to and including termination ofemployment.

January 2006

Revised March 2012 25

For business purposes, management reserves theright to enter, search and monitor the privatecompany voice mail system and the voice mail ofany employee without advance notice andconsistent with applicable state and federal laws.

Employees should expect communications theysend and receive by the private IMAX voice mailsystem will be disclosed to management.Employees should not assume that communicationsthey send and receive by the private IMAX Voicemail system are private or confidential.

INTERNET USAGE

 As a growing company, we recognize the need tostay on the cutting edge of technology. This is oneof the reasons we allow employees to have access

to the Internet.The Internet is intended for business purposes useonly. Use of the Internet for any non-businesspurpose, including but not limited to, personalcommunication or solicitation, purchasing personalgoods or services, gambling and downloading filesfor personal use, must be kept to a minimum.

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Our company policies against sexual harassmentand other forms of harassment apply to the Internetand other instant message programs as well.

Violations of these policies are not permitted and

may result in disciplinary action, up to and includingtermination of employment. Therefore, employeesare also prohibited from displaying, transmitting,and/or downloading sexually explicit images,messages, ethnic slurs, racial epithets or anythingwhich could be construed as harassment ordisparaging to others.January 2006Revised March 2012 26

The equipment, services and technology provided toaccess the Internet remain at all times the propertyof IMAX. As such, consistent with applicable federaland state law, IMAX reserves the right to monitorInternet traffic, and retrieve and read any data

composed, sent, or received through our onlineconnections and stored in our computer systems.

 Additionally the time you spend on the Internet istracked through activity logs for business purposes. All abnormal usage will be investigated thoroughly.

Employees learning of any misuse of companyInternet access shall notify a member ofmanagement.

DRESS POLICY

Our customers’ satisfaction represents the mostimportant and challenging aspect of our business.Whether or not your job responsibilities place you indirect customer contact, you represent IMAX withyour appearance as well as your actions.

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Dress, grooming, and personal cleanlinessstandards contribute to the morale of all employeesand affect the business image IMAX presents to thecommunity.

During business hours, employees are expected topresent a clean and neat appearance and to dressaccording to the requirements of their positions.Employees who appear for work inappropriatelydressed will be sent home and directed to return towork in proper attire. Under such circumstances,employees will be required to sign out and will notbe compensated for the time away from work

January 2006

Revised March 2012 27

Exempt employees may be provided time off withpay when necessary to comply with State andFederal Wage and Hour Laws.

Consult your supervisor, department head, or theHuman Resources Department if you havequestions as to what constitutes professional andappropriate attire.

PERSONAL HYGIENE

Proper hygiene promotes professionalism within ourcompany and a favorable image to our customers.

Employees are expected to maintain the higheststandards of personal cleanliness and present aneat, professional appearance at all times.

REFERENCE CHECKS

Our company will not honor any oral requests forreferences. All requests must be in writing and oncompany letterhead. Generally, we will only confirm

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our employees’ dates of employment, salary historyand job title.

Under no circumstances will an employee provideanother individual with information regarding currentor former employees of our company. If you receivea request for reference information, please forward itto the Human Resources Department.

January 2006

Revised March 2012 28

PARKING

Free parking facilities are available to employees.

You are required to park within the designatedareas. IMAX is not responsible for loss, damage ortheft of your vehicle. Therefore, we suggest that youlock your vehicle’s doors at all times when leftunattended. Any vehicle parked on IMAX propertymust properly display an IMAX hang tag.

BULLETIN BOARD

Information of interest and importance to you isregularly posted on our bulletin boards that arefound throughout the company’s premises, usuallylocated in the employee break rooms/lunchrooms.

We suggest that you look at it regularly. Thesebulletin boards are for administrative use only andemployees may not post or remove any information.

LUNCHROOM

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 A lunchroom is available for your use and severalare located throughout the company’s premises. Although general custodial care is provided byIMAX, you are expected to clean up after eating inthese rooms. These rooms should be kept clean forsafe hygiene and for the next person(s) use. Pleaseshow consideration for your fellow workers.

January 2006Revised March 2012 29

IF YOU MUST LEAVE US

If you decide to leave your employment with us, we

ask that you provide your supervisor with at leasttwo weeks’ advance notice. Your thoughtfulness isappreciated and will be noted favorably should youever wish to reapply for employment with IMAX.

Employees who are rehired following a break inservice in excess of 60 days, other than anapproved leave of absence, are considered to benewly hired employees and will lose any previousseniority. Such employees are considered new andmust begin again from the effective date of theirreemployment for all purposes, including theeligibility for benefits.

 Additionally, all resigning employees are asked tocomplete a brief exit interview prior to leaving anddeliver it to the Human Resources Department upondeparture.

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Employees’ who do not give a two week notice willforfeit any unused accrued vacation time. Unusedsick time is not paid out.

 All company property, including this EmployeeHandbook, must be returned upon termination.Otherwise, IMAX may take further action to recoupany replacement costs and/or seek the return ofcompany property through appropriate legalrecourse.

You should notify IMAX if your address changesduring the calendar year in which termination occursso that your tax information will be sent to the properaddress.

January 2006Revised March 2012 30 

SECTION 5:

SAFETY IN THE

WORKPLACE

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January 2006Revised March 2012

EACH EMPLOYEE’S RESPONSIBILITY

IMAX is very concerned about the safety of ouremployees. You are our most important asset andwe know how important a properly designed, lightedand furnished workplace can impact employeehealth, satisfaction and productivity.

Safety can only be achieved through teamwork atour company. Each employee, supervisor andmanager must practice safety awareness by thinkingdefensively, anticipating unsafe situations andreporting unsafe conditions immediately. You areencouraged to notify your supervisor of anyproblems you have with lighting, seating, furniture,air quality or other issues related to your workingenvironment. We urge you to immediately informmanagement if you notice any potentially dangerouscondition.

 Additionally, your compliance with the following rulesis mandatory:

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•  You must report immediately to yoursupervisor any injury that occurs while onthe job or on the company’s premises orwhile performing company business, nomatter how minor.

•  Report unsafe equipment, hazardousconditions and unsafe acts to yoursupervisor or manager on duty. Do not tryto fix broken equipment, simply tell yoursupervisor.

•  Make sure you know the emergencynumbers for the police, fire departments,hospitals and paramedics. The numbers areposted on company bulletin boards.

January 2006Revised March 2012 1 

•  Know the location of fire exits, first aid kits,fire extinguishers, gas shut off switches andany Material Safety Data Sheets (MSDS)

and the Company Safety and Loss ControlProgram.•  Wear protective clothing if your position

warrants it.•  Obey all danger signs and report conditions

you feel may be unsafe. Common sense isthe rule.

•  Vehicle engines must be turned off when notin use.

•  When performing duties and operatingequipment, you must take care to protectyour own safety, as well as that of your co-workers and the public.

•  Clean up all spills of non-hazardous liquids

(e.g. coffee, water, oil, etc.) immediately.Report all spills involving a hazardouschemical to your supervisor and immediatelyask for assistance.

•  Footwear appropriate for your job must beworn at all times while performing yourduties.

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•  Jumping from elevated areas is notpermitted.

•  Follow marked walkways; do not walkunnecessarily in the parking lot or betweenparked cars.

•  Do not drive at a speed more than theposted speed limit or at 5 m.p.h. if notposted on our premises.

•  Do not lift awkward or especially heavymaterials by yourself. Get help if assistanceis needed.

•  Keep your work area clean at all times.

January 2006

Revised March 2012 2 •  Keep floors dry and free from oil and grease.

Passageways should remain open; aislesunblocked; materials not stored in front ofexit doors; desk and file cabinet drawers

kept closed when not in use.•  Know your responsibilities in the event of anemergency.

•  Know your responsibilities for safety andloss prevention.

•  Understand your job fully and followinstructions. If you are not sure of the safeprocedure, don’t guess, ask your supervisor.

•  Report immediately any unauthorized use ofalcoholic beverages or illegal substancesduring working hours, as this behavior willnot be tolerated. The possession ofalcoholic beverages or illegal substances onthe company’s property is forbidden.

 A violation of a safety precaution is in itself anunsafe act. A violation may lead to disciplinaryaction, up to and including termination ofemployment.

FIRE DRILLS

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Fire drills are scheduled periodically throughout theyear. These drills are an important aspect inemployee safety. We expect your completecooperation during these drills. If you have anyquestions concerning evacuation procedures, see

your supervisor.

January 2006Revised March 2012 3 

GOOD HOUSEKEEPING

Good work habits and a neat place to work areessential for job safety and efficiency. You areexpected to keep your place of work organized and

materials in good working order at all times. Reportanything that needs repair or replacement to yoursupervisor.

SMOKING IN THE WORKPLACE

Our company is committed to providing a safe andhealthy environment for employees and visitors. Toaccomplish this, smoking is allowed only indesignated areas and only during work breakperiods.

CONCEALED WEAPONS

Possession, use or sale of weapons, firearms orexplosives on work premises, while operatingcompany machinery, equipment or vehicles forwork-related purposes or while engaged in companybusiness off premises is forbidden except whereexpressly authorized by the company and permitted

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guarantee that workplace monitoring is done in anethical and respectful manner.

January 2006Revised March 2012 5 

SECURITY INSPECTIONS

IMAX wishes to maintain a work environment that isfree of illegal drugs, alcohol, firearms, explosives orother improper materials. To this end, IMAXprohibits the possession, transfer, sale or use of

such materials on its premises. IMAX requires thecooperation of all employees in administering thispolicy.

Desks, lockers and other storage devices may beprovided for employee convenience, but remain thesole property of IMAX. Accordingly, they, as well asany articles found within them, can be inspected byany agent or representative of IMAX at any time,either with or without prior notice.

SEARCH AND SEIZURE

The company has adopted this search and seizureprocedure in order to reduce the risk of workplaceviolence and to ensure compliance with othercompany policies, including, but not limited to, itsDrug and Alcohol-Free Workplace.

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The company may, upon reasonable cause, conductsearches of (1) all employees and other personsentering into or leaving property owned or leased bythe company as company premises; and (2)employees and employee work and rest areas.When searches are conducted, the company willsearch for evidence that (a) violations of thecompany’s policies have occurred or are occurring;or (b) property owned or leased by the company hasbeen misused or stolen; or (c) weapons or otherdangerous instruments are or have been present(collectively, called “Evidence”).January 2006Revised March 2012 6 Employee work and rest areas may be searchedwithout employees being present, without employeeconsent and without any additional notice toemployees.

REASONABLE CAUSE

“Reasonable Cause” in connection with searchesand seizures means there is reason to believe that asearch will turn up evidence. If a search fails touncover evidence, the failure does not negate thereasonableness of the search conducted. Thedecision to conduct a search should not beinterpreted as an accusation or belief that anyparticular employee has engaged in wrong-doing.

SEIZURE OF EVIDENCE

 

If, during a search, any evidence is found, and

regardless of whether the evidence found is the typethe search was initiated to find, the company mayseize the evidence and hold it pending the outcomeof any further investigation or disciplinaryproceeding.

SEARCHABLE ITEMS

 

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 Searches of employees and persons entering orleaving company premises may include, but not belimited to, their person, package, parcels, purses,handbags, briefcases, lunch boxes and any otheritems carried or worn to and from companypremises.

January 2006Revised March 2012 7 Searches of employees and their work areas mayinclude, but not be limited to, their person, offices,desks, files, computers, including stored documents,calendars, electronic mail and diskettes, lockers,vehicles owned or leased by the company or itsemployees and any other property owned or leased

by the company and provided for employee use, aswell as packages, parcels, purses, handbags,briefcases, lunch boxes and any other items storedin, or carried to employee work or rest areas.

Employees will not be touched during any search.However, with reasonable cause, an employee maybe requested to empty all pockets, open any closeditem taken out of any pockets, turn down pant cuffs,raise pant legs, pull down socks and remove shoesand hat.

METHODS USED FOR SEARCHING

The company may use any reasonable methodavailable to conduct searches. “Reasonablemethod” includes, but is not limited to, metaldetectors, x-ray machines, trained animals, airsampling devices and/or authorized company andnon-company personnel.

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MANDATORY COOPERATION

 

Employees who fail to cooperate with any search willbe immediately referred to the Human ResourcesDepartment and may be subject to disciplinary

action, up to and including termination ofemployment. Other persons failing to cooperatewith entrance or exit searches will not be permittedto enter company premises.

January 2006Revised March 2012 8

WORKPLACE VIOLENCE PREVENTION

IMAX is committed to preventing workplace violenceand to maintaining a safe work environment. Thecompany will exercise due diligence to provide eachemployee a workplace “free of recognized hazards”,

including violent acts, or threats of violent actsagainst employees or third parties within IMAXfacilities in accordance with the General DutyClause, Section 5(a)(1) of the Occupational Safetyand Health Act.

IMAX will take any reasonable action, legal andadministrative, as appropriate, to provide a safe andsecure workplace for all employees, visitors, or thegeneral public within all company facilities. Allemployees are responsible for complying with thispolicy.

Given the increasing violence in society in general,IMAX has adopted the following guidelines to dealwith intimidation, harassment, or other threats of (oractual) violence that may occur during businesshours or on its premises.

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 Acts or threats of workplace violence that involve oraffect the company will not be tolerated, including,but not limited to, acts or threats which:

•  Interfere with an individual’s workperformance;

•  Create an intimidating, hostile or offensivework environment;

•  Occur on the company’s premises; or•  Occur during the performance of an

employee’s work.

January 2006Revised March 2012 9 Further, the possession or inappropriate use ofweapons on the company’s premises or on propertyadjacent to any of the company’s premises,including the storage of weapons in vehicles, boats,or parking areas owned or leased by the company or

company employees, is prohibited.

IMAX’s prohibition against acts or threats ofworkplace violence, and the possession orinappropriate use of weapons, applies to all personsinvolved in the company’s operations, including, butnot limited to, employees, contractors, vendors oranyone else on the company’s premises or adjacentto the company’s premises.

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January 2006Revised March 2012 10 

EXAMPLES OF WORKPLACE

VIOLENCE

Examples of conduct expressly prohibited by this

policy include, but are not limited to, the following:

1. All threats or acts of violence occurringon the company’s premises, regardlessof the relationship between the companyand the parties involved in the incident;

2. All threats or acts of violence occurringoff the company’s premises involvingsomeone who is acting in the capacity ofa representative of the company;

3. All threats or acts of violence occurringoff the company’s premises involving anemployee if the threats or acts affect the

legitimate interests of the company;4. Any acts or threats resulting in theconviction of an employee or agent ofthe company, or of an individualperforming services for the company ona contract or temporary basis, under anycriminal code provision relating to

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violence or threats of violence whichadversely affect the legitimate interestsand goals of the company;

5. Hitting, striking or shoving an individual;6. Threatening an individual or his or her

family, friends, associates or property,with harm;

7. The intentional destruction or the threatof destruction of the company’sequipment or the company’s premises;

8. Harassing or threatening phone calls,voicemail or e-mail messages;

January 2006Revised March 2012 11 

9. The use of the company’s equipment tofacilitate an act of violence or a threatagainst any individual which includes,

but is not limited to, the use of phoneequipment, computer equipment, e-mailsystem or facsimile machines to makethreats;

10. The suggestion or intimation thatviolence is appropriate;

11. Harassing surveillance or stalking;and/or

12. Any other conduct or behavior deemedinappropriate by the company.

EMPLOYEE’S DUTY AND

RESPONSIBILITY TO REPORT

WORKPLACE VIOLENCE

You and every employee on the company’spremises or adjacent to the company’s premises isstrongly encouraged to report incidents of threats oracts of workplace violence, including the possessionor inappropriate use of weapons on the company’s

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premises or adjacent to the company’s premises, ofwhich he or she is aware. Circumstances to bereported include, but are not limited to: threatsreceived, comments of others advocating violentacts or threats, phone calls or other messagescontaining abusive, obscene or threateninglanguage, stalking behavior and any observations ofworkplace disturbance.

Workplace violence must be immediately reported toyour immediate supervisor, other members ofmanagement or to the Human ResourcesDepartment as previously described in thisEmployee Handbook.

January 2006Revised March 2012 12 This policy applies to all incidents of workplaceviolence, including those which occur off the

company’s premises, or off-hours, where the allegedoffender is a supervisor, co-worker or non-employeewith whom the employee is involved, directly orindirectly, in a business or potential businessrelationship.

If the alleged incident of workplace violence occursafter normal business hours, a complaint must befiled as early as practicable on the first business dayfollowing the alleged incident.

IMAX will promptly and thoroughly investigate allreports of threats of violence, actual violence, and ofsuspicious individuals or activities. The identity ofthe individual making a report will be protected asmuch as possible and necessary.

The nature of the workplace violence may require anemployee to contact the police or other appropriateemergency agency to immediately intervene and/orrender assistance in circumstances where an

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employee feels his or her own life or the life ofothers is at immediate risk of great bodily harm orworse. This policy does not alter any individual’sright or obligation to contact the police or otherappropriate emergency personnel.

 Anyone determined to be responsible for threats ofviolence, actual violence, or other conduct that is inviolation of these guidelines will be subject to promptdisciplinary action, up to and including termination ofemployment.

January 2006Revised March 2012 13 

SUBSTANCE ABUSE

IMAX has vital interests in ensuring a safe, healthyand efficient working environment for ouremployees, their co-workers and the customers weserve. The unlawful or improper presence or use ofcontrolled substances or alcohol in the workplacepresents a danger for everyone. For these reasons,we have established as a condition of employmentand continued employment with IMAX the followingsubstance abuse policy.

Employees are prohibited from reporting to work oractually working while using legal or illegal drugsthat might impair their performance, including the

use of alcohol. Employees may report to work if theyare using drugs that are prescribed pursuant to adoctor’s orders and the doctor has advised theemployee that the substance does not adverselyaffect his or her ability to safely perform the essentialfunctions of their job.

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In addition, employees are prohibited from engagingin the unlawful or unauthorized manufacture,distribution, sale or possession of illegal drugs andalcohol in the workplace including: on company paidtime, on company premises, in company vehicles orwhile engaged in company activities. Employeesare also prohibited from reporting for duty orremaining on duty with any alcohol in their systems.

Employees are also prohibited from consumingalcohol during working hours, including meal andbreak periods.

January 2006Revised March 2012 14 Your employment or continued employment withIMAX is conditioned upon your full compliance with

the foregoing substance abuse policy. Any violationof this policy may result in disciplinary action, up toand including termination of employment.

 Any employee who violates this policy will be subjectto termination, however, in lieu of termination, IMAXat its sole discretion, may allow the employee toparticipate in and successfully complete a treatment,counseling, or rehabilitation program asrecommended by a substance abuse professionalas a condition of continued employment and inaccordance with applicable federal, state and locallaws.

Consistent with its fair employment policy, IMAXmaintains a policy of non-discrimination andreasonable accommodation with respect torecovering addicts and alcoholics, and those havinga medical history reflecting treatment for substanceabuse conditions. We encourage employees toseek assistance before their drug and alcohol use

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renders them unable to perform their essential jobfunctions or jeopardizes the health and safety ofthemselves, or others. IMAX will attempt to assist itsemployees through referrals to rehabilitation,appropriate leaves of absence and other measuresconsistent with IMAX’s policies and applicablefederal, state or local laws.IMAX further reserves the right to take any and allappropriate and lawful actions necessary to enforcethis substance abuse policy including, but not limitedto, the inspection of company issued lockers, desksor other suspected areas of concealment, as well asan employee’s personal property when IMAX hasreasonable suspicion to believe that the employeehas violated this substance abuse policy.

January 2006Revised March 2012 15 This policy represents management guidelines onlyand should not be interpreted as a contract of

employment.

See the Human Resources Policy Number HR 008, Drug and Alcohol-Free Workplace for moredetailed information.

DRUG TESTING

IMAX is committed to providing a safe, efficient andproductive work environment for all employees.Using or being under the influence of drugs oralcohol on the job may pose serious safety andhealth risks. To help ensure a safe and healthful

working environment, job applicants and employeesmay be asked to provide body substance samples,(such as urine), to determine the illicit or illegal useof drugs and alcohol. Refusal to submit to drugtesting may result in disciplinary action, up to andincluding termination of employment.

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 As an employment condition and safety precaution,all candidates for employment are required to takeand pass a drug test prior to or very soon after theybecome an employee of IMAX.

See the Human Resources Policy Number HR 008, Drug and Alcohol-Free Workplace for moredetailed information as it applies to the following:

•  Policy Statement;•  Definitions;•  Conduct prohibited by the policy;•  Prescription medicine notification;•  Notice to employees convicted or who plead

nolo contendere (no contest) to controlledsubstances violations;

January 2006Revised March 2012 16 

•  Employee voluntary disclosure;•  Testing for Drugs and Alcohol, including;

pre-employment, post-accident, random,reasonable suspicion, return to duty, andfollow-up testing;

•  Investigation process;•  Testing procedures and confirmed positive

test results;•  Rights of test subjects (individuals);•  Confidentiality of test results;•  Disciplinary action;•  Employee appeals;•  Re-employment;•  Acceptance Acknowledgment of Receipt of

Policy for Managers, Supervisors andEmployees.

CRIMINAL HISTORY BACKGROUND

CHECK

The company has adopted a separate policy, as acondition of employment, to obtain a criminal historybackground check on each applicant to whom a job

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offer has been extended. As an employmentcondition and safety precaution, all candidates foremployment are required to have an acceptablecriminal history background check. An acceptablebackground check will allow the job candidate tocontinue the employment process, while anunacceptable check will result in the discontinuationof the employment process and the candidate willnot be hired by IMAX.Furthermore, IMAX maintains the right, at its solediscretion, to conduct criminal history backgroundchecks on all current employees of the company.

January 2006Revised March 2012 17 

 As a condition of employment and safety precaution,all employees are required to have an acceptablecriminal history/background check.

 An unacceptable criminal history background checkmay result in the company taking appropriatedisciplinary action up to and including immediatetermination of employment.While each case of an unclear criminal backgroundrecord check will be subject to an individual reviewby the Human Resources Department, the followingguidelines should be followed in determiningwhether an applicant will be disqualified based onthe criminal background check results:

1. The nature and gravity of the offense oroffenses;

2. The time that has passed since theconvictions and/or completion of thesentence;

3. The nature of the job sought.

The following convictions occurring within the lastseven (7) years will disqualify an applicant unless an exception is approved in writing by the Director ofthe Human Resources Department:

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•  Misdemeanor or felony convictions orpending charges of a theft/embezzlementnature, if directly related to the position forwhich the applicant is applying.

•  Misdemeanor or felony convictions orpending charges of an illegal/unlawful drugnature.

•  Misdemeanor or felony convictions orpending charges of an alcohol-relatednature, if directly related to the position forwhich the applicant is applying.

•  Misdemeanor or felony convictions orpending charges of a violent criminal nature.

January 2006

Revised March 2012  18 

•  Any other misdemeanor or felony convictionrelating to the honesty or integrity of theindividual.

The seven (7) year period will be calculated from thedisposition/conviction date, not the charging date.Convictions include plea of guilt, plea of nolocontendere (no contest) or plea arrangements. Applicants or employees who believe that theircriminal background record is not correct mustprovide credible documentation to explain thediscrepancy or dispute the charge/conviction.

The Company utilizes Social Security Administrations E-Verify to verify all new employees.

MOTOR VEHICLES RECORD MVR)

CHECK

The company has adopted a separate policy, as acondition of employment, to conduct a Motor VehicleRecord (MVR) Check on all candidates foremployment who may possibly drive a company

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vehicle or other motorized equipment owned orleased by the company (such as a fork lift). As anemployment condition and safety precaution, allcandidates for employment are required to initiallypass an MVR check. All employees who maypossibly drive a company vehicle or rent a vehiclefor company business are required to maintain anacceptable motor vehicle record (MVR). An unacceptable MVR result may cause appropriatedisciplinary action to be taken, up to and includingtermination of employment.The company maintains and reserves the right, at itssole discretion, to conduct a yearly audit of currentemployees’ MVR records to determine that allemployees maintain a current and acceptable MVRrecord.January 2006Revised March 2012 19 

The following criteria will be used in evaluating each

MVR report. If the MVR of an employee/applicantinclude any one of the following violations, the MVRwill be deemed unacceptable and will result in thediscontinuation of the pre-employment process,employment and/or loss of company vehicle drivingprivileges:

1. Driver’s license suspended, revoked,expired, invalid or surrendered, if not clearedwithin five (5) business days. An employeewill be suspended from driving a companyvehicle or renting a vehicle to performcompany business until the record iscleared. If the record is not cleared withinthe five (5) business days, the employee willnot be allowed to drive a company vehicle orrent a vehicle to conduct company businessand may be subject to appropriatedisciplinary action, up to and includingtermination of employment.

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2. Conviction for DWI/DWAI/DUI within thepast 36 months.

3. Convictions for three or more movingviolations within the past 12 months.

4. Ticketed or conviction for two or moreaccidents within the past 36 months.

5. Conviction for causing one or moreaccidents resulting in a fatality or bodilyinjury within the past 36 months.

6. Conviction for failure to report an accident orleft the scene of an accident within the past36 months.

7. Conviction for possession of a stolen vehicleor use of a vehicle in a crime within the past36 months.

January 2006Revised March 2012 20 

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order to facilitate the printing of the

Acknowledgment Statements

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January 2006Revised March 2012 21 

RECEIPT OF EMPLOYEE HANDBOOK

AND EMPLOYMENT AT-WILL

STATEMENT

This is to acknowledgment that I have received a copy ofthe IMAX Corporation dba IMAX Worldwide ImportsEmployee Handbook. As evidenced by my signaturebelow, I hereby acknowledge that it is my responsibility toread and familiarize myself with the material therein andrecognize that I am governed by its contents and I agreeto abide by the rules, policies and standards set forth inthis Employee Handbook. I further understand that it setsforth the terms and conditions of my employment as wellas the duties, responsibilities and obligations of myemployment with IMAX.

I also acknowledge that my employment with IMAXCorporation is not for a specified period of time and can beterminated at any time for any reason, with or withoutcause or notice, by me or by IMAX. I acknowledge that nooral or written statements or representations regarding myemployment can alter the foregoing. I also acknowledgethat no manager or employee has the authority to enter

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into an employment agreement – expressed or implied –providing for employment other than at-will.

I also acknowledge that, except for the policy of at-willemployment, IMAX reserves the right to revise, delete andadd to the provisions of this Employee Handbook. Allsuch revisions, deletions or additions must be in writing

and must be signed by the President of IMAX. No oralstatements or representations can change the provisionsof this Employee Handbook.

I also acknowledge that, except for the policy of at-willemployment, terms and conditions of my employment withIMAX may be modified at the sole discretion of IMAX, withor without cause or notice, at any time.No implied contract concerning any employment-relateddecision, terms of employment or condition of employmentcan be established by any other statement, conduct, policyor practice.January 2006

Revised March 2012 22 understand that the foregoing agreement concerning my

at-will employment status and IMAX’s right to determineand modify the terms and conditions of employment is thesole and entire agreement between me and IMAXCorporation concerning the duration of my employment,the circumstances under which my employment may beterminated and the circumstances under which the termsand conditions of my employment may change. I furtherunderstand that this agreement supersedes all prioragreements, understandings and representationsconcerning my employment with IMAX.

If I have questions regarding the content or interpretationof this Employee Handbook, I will bring them to theattention of the Human Resources Department.

NAME: (PRINT) ______________________________________

DATE: ________________________________

EMPLOYEE SIGNATURE: ______________________________________

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January 2006

Revised March 2012 23 RECEIPT OF NEW EMPLOYEE HANDBOOK,CHANGES, REVISIONS, OR ADDITIONS TO THE

EMPLOYEE HANDBOOK

I have this day received a copy of the updated EmployeeHandbook or updates of policies for my current EmployeeHandbook. I understand that I am responsible for readingthe updated Employee Handbook or the updated policiesand then placing them in my current Employee Handbook,if appropriate. The updated Employee Handbook and/orupdates of policies include:

The revised Employee Handbook, dated January 2006 which supersedes and replaces any previous Employee Handbooks.

I understand that neither the updated or revised new

policies in this Employee Handbook nor any other writtenor verbal communication by a management representativeis intended to in any way create a contract of employmentfor any specified period of time, and that these policies arefor informational purposes only. I also understand that theupdated or revised new policies do not affect myemployment at-will status, which permits the company or

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the employee to terminate the employment relationship atany time, for any reason with or without notice.

If I have questions regarding these policies, or the contentor interpretation of any policy in the Employee Handbook, Iwill bring them to the attention of the Human ResourcesDepartment.

NAME: (PRINT) ______________________________________

DATE: ________________________________

EMPLOYEE SIGNATURE: ______________________________________

January 2006Revised March 2012 24