Kanepackage Mexico Payroll Migration Presentation - Process and Expected Savings and Improvement on Benefits

1. HUMAN
RESOURCES
Outsource Payroll Migration
June 1, 2019
Kanepackage Mexico SA de CV

2. HUMAN
RESOURCES
STRATEGY
Retention, Savings & Control
100%
Migration from Outsource
to Direct Contract
Outsource => Direct Contract
(100% of the employees)
June 1, 2019 – 100%
Employee Transfer
May 24 – target General
Meeting date to inform the
specifics of the Migration
May 31, 2019 – Finiquito
Processing of all Outsource
Employees
100%
100%
100%
100%
Schedule of Activities
May 1
May 6-10
May 13-14
May 16
May 20-23
May 24
May 27-30
May 31
May 31-June 6
Meeting and Discussionof the Payroll Migrationwithall employees
Preparationof Contracts and documentations
Finiquito Process for all Outsource Employees
First Payroll Cut-off for Definite Contract Employees
Also will be the first cut-off were new Pay out schedule will be implemented
Medical Insurance New Coverage Implementation
HuanResource Management Change Proposal, Discussionand Approval
Legal Consulation- Employee Benefit Coverage, Contractual and Indefinite Term
Meeting withGentex- Migrationand Payroll Management Discussion
Preparationof the MigrationProcess (Payroll Management Terms and Guidelines)
Monday Tuesday Wednesday Thursday Friday
29 30 01 02 03
MEDICAL INSURANCE -
NEW COVERAGE
(ADMIN ONLY DIRECT
EMPLOYEES)
06 07 08 09 10
13 14 15 16 17
PAPERWORKS
MEETING WITH GENTEX
TO DISCUSS THE
PAYROLL MANAGEMENT
AND CONTRACT
MIGRATION
PAPERWORKS
20 21 22 23 24
MEETING, DISCUSSION
AND ORIENTATION FOR
ALL OUTSOURCE
27 28 29 30 31
FINIQUITO FOR ALL
OUTSOURCE
HUMAN RESOURCE MANAGEMENT CHANGE PROPOSAL, DISCUSSION
AND APPROVAL
CONSULTATION WITH THE LAWYERS REGARDING
THE CHANGE PROPOSAL - IMPLEMENTATION
GUIDELINES, CONTARCT PREPARATION AND
LEGAL REPURCUSSIONS
PREPARATION OF THE MIGRATION PROCESS (PAYROLL
MANAGEMENT GUIDELINES AND TERMS AND CONDITION
CONTRACT AND DOCUMENTATIONS

3. Expected Changes Towards
the Payroll Migration
Specifics of the listed changes will be presented on the
planned meeting on Friday, May 24, 2019
Outsource Employees => Direct Contract with Kanepackage
Change on Payroll Payout Schedule - SEMANAL
Previously Outsourced Payroll Cut-off will be aligned with the
Internal Payroll Schedule
*Series of Internal Office Memorandum will also be released in
connection to the changes brought about by the outsource
Payroll Migration
‘-Employees will be identified by the type of contract, Definite and
Indefinite Termed Employee
‘-From Friday, payout will be scheduled Tuesday of the following week (to
give an ample time for payroll processing as major activities of previously
outsourced payroll will be transferred to Inhouse
‘-Outsource employees used to have a full week Payroll Cut-off (i.e. Monday to
Sunday, paid out Friday of the same week)  Inhouse cut-off is Friday (week 1)
to Thursday (week 2), paid out Friday (week 2)

4. Payroll Cut-off Alignment and Change on Payout Schedule
Uniform Payroll Cut-off Implementation
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
26 27 28 29 30 31 01
FINIQUITO FOR ALL
OUTSOURCE
***
02 03 04 05 06 07 08
60% PAYOUT - DIRECT
(MAY 31 TO JUNE 6
PAYROLL)
JUNE 09, 2019 JUNE 10, 2019 11 JUNE 12, 2019 JUNE 13, 2019 14 JUNE 15, 2019
40% PAYOUT - DIRECT
(MAY 31 TO JUNE 6
PAYROLL)
30% PAYOUT - DIRECT
(JUNE 7 TO JUNE 13
PAYROLL)
JUNE 16, 2019 JUNE 17, 2019 18 JUNE 19, 2019 JUNE 20, 2019 JUNE 21, 2019 JUNE 22, 2019
70% PAYOUT - DIRECT
(JUNE 7 TO JUNE 13
PAYROLL)
23 24 25 26 27 28 29
100% PAYOUT - DIRECT
(JUNE 14 TO JUNE 20
PAYROLL)
***
CONTRACTUAL 1ST CUT-OFF MAY 31 - JUNE 06
CONTRACT AND DOCUMENTATIONS
• May 31 – June 6 Cut-off – payout will be divided into 2, June 7 (60%) and June 11 (40%)
• June 7 – 13 Cut-off – payout will be divided into 2, June 14 (30%) and June 18 (70%)
• June 14 – 20 Cut off – payout will be 100% in June 25

5. New Payroll Procedure Allows lead time for Payroll Information Exchanges between the Third Party (handles
Payroll Management) and Inhouse Payroll Processor

6. Questions?