The German version of this Group-Wide Agreement shall prevail

The following Group-wide agreement on addictive behaviors in the workplace is entered into 

Merck KGaA and its subsidiaries in Germany 

- hereinafter: Merck, 

the Group Works Council of the Merck Group 

- hereinafter: the Group Works Council – 

With this agreement, the company and the Group Works Council want to create a framework which can serve as a guideline for managers and employees. It is intended to help highlight the issue of addictive behaviors in the workplace, offer support to employees who have fallen ill, increase occupational health and safety, and maintain or restore the employees' health. The provisions of the accident prevention regulations of the employers' liability insurance association apply unchanged. 

This Group-wide agreement is applicable to all Merck employees who are not senior executives pursuant to section 5 (3) of the German Works Constitution Act (BetrVG). 

All employees will be informed about controlled substances, substance abuse and dependency through regular information events. Special emphasis is placed on providing information to young people, and this is a permanent component of the training plans. Key aspects of this information are: 

A description of how addictive substances impair individuals' capacity to think, react and perform The risk to the safety and well-being of others caused by addictive substances The way in which substance abuse contributes to addictive disorders and other illnesses 

Dependency due to psychosocial disorders (Internet, gambling) 

All employees are informed about the advisory services offered by Social Counseling and about the services of cooperation partners. 

Employees and managers are trained and informed in appropriate and regularly conducted training sessions (on addictive behaviors, triggers/risk factors and consequences of addictive behavior, options for prevention and intervention) about substance abuse and addiction, addictive behaviors and all related matters. 

The example set by supervisors and individuals in positions of authority, as role models, is particularly important. 

The working group on health management (HM working group) makes decisions regarding suitable overall preventive measures. Leadership on this issue lies with Social Counseling. 

Smaller companies or sites can establish separate agreements on suitable measures. The aforementioned units provide support with regard to such agreements. If a supervisor has the impression that an employee might have an addiction problem, a counseling discussion can be conducted at any time. If the impression of an addiction problem grows stronger, it is recommended that the supervisor contact Social Counseling or the company physician in order to discuss further possible support measures. 

If noticeable irregularities in day-to-day working life give rise to the suspicion that the employee is under the acute influence of an addictive substance, the supervisor - this can be the direct line manager, or a manager with disciplinary responsibility - first has a personal discussion with the employee. If the impression that the employee is under the influence of an addictive substance is confirmed, the supervisor requests the individual to report to the Medical Center or to the responsible company physician* for examination. If the employee fails to reply with this request, or the Medical Center staff/the company physician are not available, the employee will be removed from the workplace as a precautionary measure. 

As part of his duty of care, the supervisor must ensure that the individual reaches his apartment or other suitable location outside Merck by suitable means. Any transportation costs incurred must be covered by the employee. The employee does not have any claim to compensation for the lost working hours. The supervisor notifies the HR Business Partner (HR BP), the works council and Social Counseling of the steps taken. 

If the employee can present a medical certificate demonstrating that the assumed substance abuse had not in fact taken place at the point when the objection was raised, the lost working hours will be credited to his flex-time account, and the transportation and medical costs incurred will be reimbursed upon submission of receipts. The supervisor will notify the HR BP, the works council and Social Counseling accordingly. 

As a general rule, the executive management and the Works Council expect business entertainment and parties for business-related or personal occasions in the company to be conducted without the consumption of alcohol, including during breaks. The individual companies must designate the events at which an explicit exception will be made to this rule. For Merck KGaA, for example, events at which an exception is made include service awards events, benefit and open-air events, and private events in the guest restaurant. 

Dependency on addictive substances is an illness that affects people in all areas of their lives, and particularly in the workplace. The aim of early and consistent discussions is to encourage affected employees to recognize that they have an illness and increase their willingness to accept therapy, and thus to ensure that they keep their jobs. 

Within the company, Social Counseling and the company physicians offer expert advice. Addiction therapy remains the province of external authorities, as a rule. Addicted employees who seek treatment on their own initiative receive special support from the company. 

* "Company physician" is defined as the physician commissioned by a company under the scope of this agreement. 

If the supervisor has the impression that a violation of an employee's duties under the terms of the employment contract indicates an addictive illness, he is required to conduct a discussion with the employee in question. Social Counseling and the company physicians can also participate in this discussion. The employee can also bring in an individual whom he trusts. During the discussion, 

the contents of the Company Agreement "Addictive Behaviors in the Workplace" are explained to the employee, support is offered, and 

the consequences of the employee's actions are pointed out to him. 

This discussion does not have any personnel consequences. 

If the employee once again violates his duties under the terms of the employment contract due to the addiction, the supervisor informs the responsible HR BP and the responsible member of the works council of the employee's addiction or risk of addiction. 

In a joint discussion attended by the HR BP, the supervisor, the Works Council, Social Counseling, the company physician and the employee (large group discussion), the addiction problem is openly discussed. The employee is offered support, and/or requirements are imposed. The results of the discussion are documented in writing by the HR BP and communicated to the participants. 

If the employee does not accept an offer of support and/or violates the requirements, a first warning will be issued for addiction-related violations of the employee's duties under his employment contract. If the employee continues to reject offers of support, and further violations of the employee's duties under the employment contract occur due to the addiction, a second warning is issued immediately). The employee must be notified that he is facing termination of the employment relationship. 

All disciplinary measures are discussed in the large group discussion. 

If the employee continues to fail to fulfill the requirements and commits further addiction related violations of his duties under his employment contract, then termination is initiated, in conformity with the co-determination rights of the Works Council. 

Upon termination, the company commits to re-employ the employee if the following conditions are met: 

The employee must demonstrate within one year after his dismissal (the date on which the employment relationship was terminated) that he 

o successfully completed an appropriate inpatient or outpatient withdrawal 

treatment after his dismissal, and O is considered abstinent at the point at which the withdrawal treatment ended. The proof (certificate of the service provider) must be submitted to the company within the one-year period after dismissal. 

The employee must return to the company no later than two months after the end of the one-year period following dismissal. The employee must submit his claim to re-employment in writing, stating the desired start date and in compliance with the deadline, no later than one month prior to the end of the one-year period following dismissal and no later than two months prior to the desired re-entry date. The timeliness of the employee's claim is determined based on the point at which his written statement is received by the company. 

One week prior to the start of his duties in the company, the employee must present a current medical certificate stating that he is considered abstinent at that point. 

On the first day on which the employee begins work, he must report to the Medical Center or to a company physician to have his capacity to work verified. 

All parties involved (company manager, Social Counseling, company physician, HR BP and Works Council) undertake to appropriately support the employee's reintegration after 

completion of treatment. 

In the event of a relapse after a successful withdrawal treatment or other support measures, the rule is that a so-called large group discussion will be convened in accordance with section 4.3 of this Company Agreement. In this large group discussion, the participants determine whether to continue with this process step or with a later process step. 

If a relapse occurs after the employee's re-employment, a shortened process applies: When irregularities (suspected addictive behaviors) are noted, the large group discussion is convened directly, support measures are offered immediately, and appropriate measures are agreed as necessary. If the employee repeatedly violates the requirements, the employment relationship can be terminated after the second violation. 

In the event that a relapse occurs during the probationary period after re-employment in the company, the employment relationship is terminated once again. 

Regardless of how much time has elapsed since the first termination, no commitment to re-employment will be offered in the framework of this company agreement in connection with the second termination. 

This Group Agreement takes effect as of January 1, 2018 and can be terminated without continuing effect at the end of a calendar year by giving three months' notice. It replaces all existing company agreements on addiction and the risk of addiction in the workplace. 

Should individual provisions of this agreement become either partly or fully invalid or impossible to implement, the validity of this agreement shall not be affected. An invalid provision will be replaced by a new, legally valid provision which most closely achieves the intent and purpose of the parties when this agreement was entered into. The same applies in the event of incomplete or missing provisions. 

If site-specific measures prove to be necessary for the implementation and support of this Company Agreement, they can be agreed with the local works councils. 

Darmstadt, December 13, 2017 

Merck KGaA 

Group Works Council