U



Updated 12/21/10

U.S. - LEAVE OF ABSENCE

Family and Medical Leave of Absence Process

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Contents

• Introduction

• Eligibility

• Duration

• Approval

• Process

• Return to Work from FMLA Leave

• Compensation and Benefits

• Substitution of Paid Leave

• Short Term Disability and Workers Compensation

• Need for Leave Beyond the FMLA

• Domestic Partners

• Applicable Law

• Prohibited Actions

• Amendment or Termination of this Document or Process

• Definitions

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Effective January 1, 2011, Nortel HR Shared Services is the first point of contact for employees to initiate a request for a leave that is covered under the Family and Medical Leave Act of 1993 (FMLA). Nortel HR Shared Services can be contacted at 919-905-9351, ESN 355-9351 or 1-800-676-4636.

Terms in this process document, which are not defined where they initially appear, are defined in the Definitions section at the end of the document.

[pic]Introduction

The Family and Medical Leave Act of 1993 (FMLA) is the federal law under which certain types of leaves of absence, which Nortel refers to as FMLA Leaves, are provided to eligible employees who request them for up to a total of 12 weeks in a calendar year or, in the case of a Military Caregiver Leave, as described below, up to a total of 26 weeks in a single 12 month period. This document provides guidelines and process information to employees regarding FMLA Leaves for which they may be eligible.

FMLA Leaves may be taken by eligible employees for the following reasons:

• due to the employee's own Serious Health Condition that makes the employee unable to perform the functions of the employee's job (Employee Serious Health Condition Leave);

• to care for the employee's child during the 12 month period after birth or placement for adoption or foster care (Newborn/Placement Leave);

• to care for the employee's Spouse, Son or Daughter, or Parent who has a Serious Health Condition (Family Serious Health Condition Leave);

• Military Exigency Leave;

• Military Caregiver Leave.

Nortel does not provide paid FMLA Leave. However, employees may be eligible to receive pay while on an FMLA Leave under the Nortel Short-Term Disability Plan, Nortel's Paid-Time Off Programs (i.e., vacation) or Workers Compensation. See sections below on Substitution of Paid Leave and Short Term Disability and Workers Compensation for further details. Also, see the section regarding Applicable Law for details on state or local laws that may be more generous.

[pic]Eligibility

An employee who meets the following requirements is eligible for an FMLA Leave:

• The employee has at least 12 months of employment with Nortel. Although months of employment are not required to be consecutive, periods of employment prior to a break in employment of 7 or more years will not be counted except as required under the FMLA. In determining when 12 months of employment has occurred for purposes of this requirement, Nortel will consider any part of a week during which an employee is on the payroll as a week worked by the employee and 52 weeks worked as equal to 12 months of Nortel employment.

• The employee must have worked at least 1250 hours during the 12 month period immediately before the leave begins.

• Nortel must employ at least 50 employees within 75 miles of the employee's work location. For these purposes, home-based employees are considered to be employed from the site (i) of their assigned home base, (ii) from which their work is assigned or (iii) to which they report.

[pic]Duration

FMLA Leaves Other than Military Caregiver Leave: An eligible employee may take up to a total of 12 weeks of FMLA Leaves (other than Military Caregiver Leave) in a calendar year.

Military Caregiver Leave: An eligible employee may take up to 26 weeks of Military Caregiver Leave in a single 12 month period, which commences the first day the leave begins and ends 12 months after that date. If any Military Caregiver Leave 26 week leave entitlement remains at the end of the 12 month period, it is forfeited. Additionally, the 26 weeks of available Military Caregiver Leave is reduced by any other FMLA Leave that is taken by the employee during that 12 month period. Military Caregiver Leaves are on a "per injury" and "per Covered Service Member" basis, which means that only one such leave is available for the care of a particular injury of a particular Covered Service Member but additional leaves are available if the Covered Service Member suffers a subsequent serious injury or illness or to care for a different Covered Service Member.

Exception to the duration of FMLA Leaves: If a husband and wife, who are both employed by Nortel, each request a Newborn/Placement Leave, Family Serious Health Condition Leave to care for a Parent or a Military Caregiver Leave, the amount of those Family Leaves available to each employee will be limited by the amount of those Family Leaves taken by the other employee. For example, if during a calendar year a wife takes 8 weeks of Newborn/Placement Leave, her husband will only be eligible for 4 weeks of Newborn/Placement Leave during that calendar year. However, during that calendar year the wife will be eligible for an additional 4 weeks of Family Leave (excluding Military Caregiver Leave) for other qualifying reasons and the husband will be eligible for an additional eight weeks of Family Leave for other qualifying reasons.

FMLA Leaves on a Reduced Schedule Basis or Intermittent Basis: Although FMLA Leaves are generally taken for full consecutive work days, employees may be eligible to take Employee Serious Health Condition Leaves, Family Serious Health Condition Leaves, and Military Caregiver Leaves on a Reduced Schedule Basis or Intermittent Basis subject to certain conditions provided that, if medical treatment is involved and planned, the employee makes reasonable efforts to schedule that medical treatment so that it is not unduly disruptive to Nortel's operations. Employees may also take Military Exigency Leaves on an Intermittent Basis or Reduced Schedule Basis. Nortel will determine in its sole discretion whether to permit employees to take Newborn/Placement leaves on an Intermittent Basis or Reduced Schedule Basis.

Employees who take FMLA Leave on a Reduced Schedule Basis or on an Intermittent Basis will be paid for time worked (in arrears). They must report the hours worked and FMLA Leave hours used to the Leave Administrator and submit completed Time/Premium Pay Sheets to Payroll in order to receive pay for time worked.

[pic]Approval

The Nortel Leave Administrator is responsible for approving and monitoring all employee requests for FMLA Leaves.

[pic]Process

An FMLA leave cannot be initiated through the Employee Self-Service (ESS) tool. You should contact your Manager or the Nortel HR Shared Services for assistance in processing this type of absence. See below.

The following is the process for requesting an FMLA Leave:

1. Employees must provide 30 calendar days advance notice of the need for an FMLA Leave by advising their manager and contacting Nortel HR Shared Services when the need for the leave is foreseeable. Examples of foreseeable FMLA Leaves are those based on the birth or placement of a child or the employee's planned medical treatment.

When a leave is unforeseeable or a foreseeable leave is needed earlier than expected (e.g., the employee's unanticipated illness or injury, occurrence of a Military Exigency, premature birth), employees must give as much notice of their need for the leave to their manager and Nortel HR Shared Services as practicable.

Employees are also expected to report their absence through the Employee Self-Service Tool (Absence and Attendance), if the nature of the absence is reportable in that tool, and to follow any other practice for reporting an absence within their organization, such as contacting their manager.

When notifying Nortel HR Shared Services of a request for FMLA Leave, the employee must provide enough information to determine preliminarily if the leave may qualify for FMLA protection (e.g., the employee informs Nortel HR Shared Services of the employee's hospitalization or a Military Exigency that has occurred) and the timing and expected duration of the leave. The employee must also indicate if the requested leave is for a reason for which an FMLA Leave was previously taken.

2. Within 5 Business Days following an employee's notice to Nortel HR Shared Services of a request for an FMLA Leave, the Nortel Leave Administrator will provide the employee with the following documents:

o The Employer Notice of Eligibility for Leave-This document tells employees if they meet the basic FMLA requirements (12 months of employment in total and 1250 hours of work in the preceding 12 month period).

o Employer Notice to Employee of Rights and Responsibilities-This document provides information related to the request for an FMLA Leave, including certain information included in this process document. Employees will be notified through this notice if Nortel considers them to be Key Employees.

o Certification document-The employee will be provided with a Certification document, which is appropriate for the type of FMLA Leave requested, for completion.

3. Within 15 calendar days of receipt of the Certification document referenced above from the Nortel Leave Administrator, the employee must return the completed Certification document to the Nortel Leave Administrator.

4. Within five Business Days of receipt of the completed Certification document from the employee, the Nortel Leave Administrator will notify the employee in writing whether the leave will be designated and counted as FMLA Leave and provide certain other information provided in this process document and under the FMLA regulations.

5. If the Nortel Leave Administrator determines that the Certification document submitted by an employee is incomplete, i.e., one or more of the spaces for information has not been completed, or insufficient, i.e., the information provided is vague, ambiguous or unresponsive, the Nortel Leave Administrator will provide the employee with written notice of information required to make the Certification document complete and sufficient and the employee will have 7 calendar days to supply the required information. If an employee fails to provide the required information on a resubmitted Certification document for an Employee Serious Health Condition Leave, a Family Serious Health Condition Leave or a Military Caregiver Leave, the Nortel Leave Administrator may contact the Health Care Provider who completed the Certification document to clarify or authenticate the medical certification. If the employee fails to provide the above required information or fails to grant any permission required for the Nortel Leave Administrator to talk to the Health Care Provider for purposes of clarification or authentication of the Certification document, the FMLA Leave may be denied. If the employee never submits the required Certification document, the leave is not an FMLA Leave. Additionally, if the Nortel Leave Administrator doubts the validity of a medical Certification document for an Employee Serious Health Condition Leave or Family Serious Health Condition Leave, the employee may be required to obtain a second medical opinion at Nortel's expense and, if there is conflict in the first and second medical opinions, even a third medical opinion at Nortel's expense. If the employee is ultimately determined to not be entitled to the FMLA Leave, the leave is not an FMLA Leave.

6. The Nortel Leave Administrator may send the employee additional Certification documents for completion during an FMLA Leave. When that occurs, the employee must return the completed Certification document to the Nortel Leave Administrator within 15 calendar days of its receipt and issues with any subsequent Certification will be addressed as described in #5 above.}

7. Employees who fail to return to work at the end of their FMLA Leave will be considered to have voluntarily terminated their employment effective the first working day following the expiration of their FMLA Leave unless they have applied for and been approved for a personal leave under the circumstances described below in the section entitled Need for Leave Beyond the FMLA.

[pic]Return to Work from FMLA Leave

• Employees returning from an FMLA Leave must contact the Nortel HR Shared Services to report the first day returned to work so that the FMLA Leave is properly closed.

• If an employee who takes an Employee Serious Health Condition Leave applies and is approved for Short Term Disability benefits during that leave, that employee will be required to provide a certification from their Health Care Provider stating that they are able to return to work as provided under the Medical Leave of Absence Process, which applies to employees applying for and receiving Short Term Disability benefits. Employees who request an Employee Serious Health Condition Leave are not required to apply for Short Term Disability benefits.

• Employees on FMLA Leave must contact their manager 5 Business Days before the earlier to occur of (i) their desired return to work date and (ii) the return to work date indicated on the Certification document provided to the Nortel Leave Administrator. This notice provides the employee's manager time to make any necessary plans for the employee's return to work

|[pic] |On the day an employee returns to work, the employee's manager must notify HR Shared Services |

| |(919-905-9351, ESN 355-9351 or 1-800-676-4636) in order for the employee to be returned to active status |

| |and to restart the employee's regular pay. Please note that HR Shared Services requires confirmation of |

| |the employee's return to work by the employee's manager. |

• If Nortel has not designated an employee as a Key Employee in the Employer Notice to Employee of Rights and Responsibilities, the employee is generally entitled to be returned to the same position that the employee held when the FMLA Leave began or an Equivalent Position provided that the employee can perform the essential functions of the job. However, an employee on FMLA Leave has no greater right to reinstatement or to other benefits and conditions of employment than if the employee had been actively employed during the period during which the FMLA Leave occurred. For example, an employee who would have been terminated due to position elimination as a result of a reduction-in-force if the employee had been actively working during the period of the FMLA Leave is not required to be reinstated at the end of the FMLA Leave if the employee's position is not available when the FMLA Leave ends.

• If an employee is designated as a Key Employee in the Employer Notice to Employee of Rights and Responsibilities and Nortel determines at the time the employee is scheduled to return to work from an FMLA Leave that reinstatement will cause substantial economic hardship to Nortel, Nortel will notify the employee in writing that it is denying the employee reinstatement.

[pic]Compensation and Benefits

The following Nortel compensation and benefits coverages will continue in accordance with the terms and conditions of the applicable plans and programs during an FMLA Leave as summarized below, provided the employee is eligible for and, if applicable, enrolled in those plans and programs and the employee continues to make any necessary and timely payments for coverage during the FMLA Leave. However, Nortel retains the right to change its compensation and benefit plans and programs, including reducing or eliminating those plans and programs, at any time and those changes will apply to employees on FMLA Leaves. Also, if there is any difference between the summary below and the terms and conditions set out in the applicable plan or program documents, the plan or program documents will govern.

• Compensation - An FMLA Leave Absence is a leave without pay and the employee will not receive pay during the FMLA Leave unless eligible for benefits under the Nortel Short-Term Disability Plan, Nortel's Paid-Time Off Programs (i.e., vacation) or Workers Compensation in accordance with the terms of those programs. See sections below on Substitution of Paid Leave and Short Term Disability and Workers Compensation for further details. Also, see the section below regarding Applicable Law for details on state or local laws that may be more generous.

• Medical and Dental Medical and Dental/Vision/Hearing Care Coverage (Health Care Coverage) - Medical and dental/vision/hearing care coverage, including spousal and dependent coverage, may be continued during an employee's FMLA Leave. If the FMLA Leave is less than one month (22 working days), all Health Care Coverage employee premiums will be deducted from the employee's first wages following return to work. However, if the FMLA Leave is longer than one month (22 working days), an employee who wishes to continue Health Care Coverage must pay employee premiums in monthly installments to a Nortel designated benefits billing service by the first day of each month to which the coverage applies. If the FMLA Leave is on a Reduced Work Schedule Basis or Intermittent Basis, all Health Care Coverage employee premiums will be deducted from the employee's wages as long as they are sufficient to cover the premiums. If not, the employee must pay the employee premiums in monthly installments to the Nortel designated benefit billing service, as described above. Please Note: If employees are receiving vacation pay or STD payments from Nortel during their FMLA Leave, as described in the Sections on Substitution of Paid Leave and Short Term Disability and Workers Compensation, the employee premiums for their Health Care Coverage will be deducted from those payments. If an employee is receiving Workers Compensation during an FMLA Leave greater than one month and the employee wishes to continue Health Care Coverage, the employee must pay the employee premiums in monthly installments to the Nortel designated benefit billing service, if any Nortel payments that may be made do not cover employee premiums.

• Short-Term Disability (STD) and Long-Term Disability (LTD) - STD and LTD coverage is discontinued during the FMLA Leave, unless (i) the employee's FMLA Leave is on a Reduced Work Schedule Basis or Intermittent Basis and the employee is receiving partial wages from Nortel, (ii) the employee substitutes vacation pay from Nortel while on the FMLA Leave, as described in the Section on Substitution of Paid Leave or (iii) it is an Employee Serious Health Condition Leave and the employee has been approved by Nortel for STD benefits during that leave. If STD and LTD coverage continues during FMLA Leave under one of the exceptions above, employee premiums for STD or LTD, if any, will be deducted from the wages or payments the employee is receiving from Nortel while on the FMLA Leave. If the wages or payments are not sufficient to pay the premiums, the employee must pay the employee premiums in monthly installments to a Nortel designated benefits billing service by the first day of each month to which the coverage applies.

• Life and AD&D Insurance - Life insurance and accidental death and dismemberment (AD&D) insurance coverage, including any spousal and dependent coverage, continues during an employee's FMLA Leave. If the FMLA Leave is less than one month (22 working days), all insurance premiums will be deducted from the employee's first wages following the return to work. However, if the FMLA Leave is longer than one month (22 working days), an employee who wishes to continue coverage must pay employee premiums in monthly installments to a Nortel designated benefits billing service by the first day of each month to which the coverage applies. If the FMLA Leave is on a Reduced Work Schedule Basis or Intermittent Basis, all life and AD&D coverage premiums will be deducted from the employee's wages as long as they are sufficient to cover the premiums. If not, the employee must pay the employee premiums in monthly installments to the Nortel designated benefit billing service, as described above. Please Note: If employees are receiving vacation pay or STD payments from Nortel during their FMLA Leave, as described in the Sections on Substitution of Paid Leave and Short Term Disability and Workers Compensation, the employee premiums for their Life and AD& D coverage will be deducted from those payments.

• Long-Term Investment Plan (LTIP) - If the employee is participating in the LTIP and receiving pay from Nortel while on FMLA Leave (e.g., through wages as a result of leave taken on a Reduced Schedule Basis or Intermittent Basis, or as a result of receiving vacation pay or STD), contributions to the LTIP will continue unless the employee contacts the 401(k) Service Network (1-800-726-0026) and notifies them to suspend contributions. If the employee is not receiving pay from Nortel during the FMLA Leave, the contributions will be suspended during the leave. While employee contributions continue, applicable Nortel matching contributions to the LTIP will continue. Any reduction or elimination of employee pay during an FMLA Leave will reduce the Nortel contribution to the LTIP. If an employee's contributions have been suspended during the FMLA Leave, the employee must contact the 401(k) Service Network in order to resume employee contributions through payroll deductions upon return to work.

|[pic] |If an employee has an outstanding loan from the LTIP which is being repaid through payroll deductions, the|

| |employee should contact the 401(k) Service Network regarding arrangements for continued loan payments. If |

| |the employee is receiving pay while on FMLA Leave (e.g., through wages as a result of leave taken on a |

| |Reduced Schedule Basis or Intermittent Basis, or as a result of receiving vacation pay or STD), loan |

| |payments will continue to be deducted. However, if the employee is not receiving pay from Nortel during |

| |the FMLA Leave or the employee's Nortel pay does not cover the amount of the scheduled loan payments, the |

| |employee must contact the 401(k) Service Network (1-800-726-0026) to arrange to continue making the loan |

| |payments directly. The 401(k) Service Network will send the employee an ACH Enrollment Form with |

| |instructions for completing and making loan payments. |

• Retirement Plan - If an employee's benefit has not vested at the time the FMLA Leave commences, vesting service accrual during the FMLA Leave will be determined under the terms of the retirement plan.

• Holidays - Any holiday that occurs in a work week during which an employee takes FMLA Leave and receives wages or pay for a partial week of work (i.e., wages for work performed during the week before or after the FMLA Leave begins or ends or while on FMLA Leave on a Reduced Schedule Basis or Intermittent Basis or vacation pay) will be paid and will not be counted as FMLA Leave. However, a holiday that occurs during a full week of FMLA Leave during which an employee does not receive any wages or vacation pay will not be paid and it will be counted as FMLA Leave.

• Vacation - If the FMLA Leave is less than one month (22 working days), the employee's vacation will continue to accrue at the usual rate as provided in the Nortel Paid Time Off Policy. However, if the FMLA Leave is longer than one month (22 working days), the employee's vacation accrual will be discontinued for the remainder of the FMLA Leave. Vacation accrual also continues during FMLA Leave while employees are receiving wages (i.e., during an FMLA Leave on a Reduced Schedule Basis or Intermittent Basis) vacation pay, STD payments or workers compensation payments in accordance with the Nortel Paid Time Off Policy. When vacation accrual is discontinued during a FMLA Leave, HR Shared Services will take the necessary action within the HR tool to re-start the employee's vacation accrual upon their return to work.

• Continuous Service Date - If your leave is less than one month (22 working days), there will be no impact to your Continuous Service Date (CSD). However, if your leave is longer than one month (22 working days), HR Shared Services will automatically adjust your service date after you return to work.

|[pic] |Any employee who engages in work for pay or profit outside of their Nortel employment during an FMLA Leave without |

| |the consent of Nortel will be considered to have voluntarily terminated employment with Nortel, and the FMLA Leave |

| |will automatically end. |

[pic]Substitution of Paid Leave

Employees who take FMLA Leave may have paid time off, i.e., vacation days, available under Nortel's vacation policy that could be used during their otherwise unpaid FMLA Leave. If employees do not choose to take available vacation days during an unpaid FMLA Leave, Nortel will require them to use available vacation (in whole day increments) while they are on an unpaid FMLA Leave.  All unused carry-forward vacation days (including partial day balances) will be required to be used. In order to achieve the whole day increment requirement, current year vacation accrual amounts may be reduced; this reduction will equal no more than the partial amount/remainder that was not present in the employees carry forward time account but is required to reach the whole day increment. Vacation days used by employees during an FMLA Leave will count against their time available for FMLA Leave. Employees must follow the normal processes in requesting vacation days in these circumstances in addition to following the required processes outlined in this document in requesting FMLA Leave.

[pic]Short Term Disability and Workers Compensation

Employees who take an Employee Serious Health Condition Leave may also be eligible for benefits under Nortel's Short Term Disability Plan or, if the health condition is work-related, for workers' compensation. Employees are encouraged to apply for those benefits if eligible, but they are not required to do so in order to receive FMLA Leave.

Employees initiate Short Term Disability benefits by calling Nortel HR Shared Services at 1-800-676-4636 and should refer to the Medical Leave of Absence Process for all necessary information pertaining to benefits and pay during Short Term Disability. More detailed information about the Short Term Disability Plan is in the most recent Short Term Disability Plan Summary Plan Description in the SPD folder. If Nortel determines that an employee who is receiving Short Term Disability or workers' compensation meets the requirements for FMLA Leave, Nortel will designate and count the time off taken in connection with Short Term Disability or Workers Compensation as FMLA Leave.

In the event of absence due to work-related accident, injury, or illness, employees must follow the Nortel Work Related Accident/Injury Reporting Process and update designated Nurse contact within process to ensure appropriate coordination.

[pic]Need for Leave Beyond the FMLA

An employee who has taken the maximum amount of FMLA Leave in a calendar year or, with respect to Military Caregiver Leave, in a 12 month period, and needs an additional period of leave can request a Personal Leave of Absence. Additionally, an employee who has a need for a leave of absence for other than their own Serious Health Condition that is not covered by the FMLA solely because the individual to whom the leave relates is not covered under the FMLA (e.g., a, brother, sister, grandparent) can request a Personal Leave of Absence. Additional information can be found within the Personal Leave of Absence Process.

[pic]Domestic Partners

The FMLA does not provide leaves for employees to care for their Domestic Partners under the Family Serious Health Condition Leave or Military Caregiver Leave or for the reasons provided under the Military Exigency Leave when their Domestic Partner is a Covered Military Member. However, Nortel will provide these leaves to an employee who meets the requirements set out in the Eligibility section under the terms and conditions set out in this process if the employee would have otherwise received the leave but for the fact that the Domestic Partner is not a Spouse. All of the eligibility and process requirements described for FMLA Leave will apply to these leave situations involving Domestic Partners but the leaves provided will not be counted against the employee's FMLA Leave entitlement.

[pic]Applicable Law

This document and the process described by this document are intended to comply with the FMLA, including the FMLA regulations, and Nortel will administer and interpret this document and process in compliance with the FMLA and those regulations. Many of the terms used in this document, including the capitalized terms, are defined in the FMLA regulations and summary definitions have been provided in this document. If there is a difference between the definitions in this document and the FMLA regulations, the definitions of the terms in the FMLA regulations will be followed. Further, if applicable state or local law provides more generous benefits to an employee than the FMLA, Nortel will comply with that state or local law. California residents: Please refer to Services@Work for more information on specific leave and wage replacement programs that are available to California based employees.

[pic]Prohibited Actions

Nortel prohibits the following:

• Interference with, restraint or denial of the exercise of any right provided under the FMLA or any similar state or local law;

• Discharge or discrimination against any person for opposing any practice made unlawful by FMLA or any similar state or local law or for involvement in any proceeding under or relating to FMLA or any similar state or local law.

Employees or applicants who feel that they have been subject to any of the prohibited actions described above are encouraged to report this immediately to a member of Nortel management, including their manager, or Nortel Human Resources.

[pic]Amendment or Termination of this Document or Process

Subject to applicable law, Nortel has the right to amend, replace or terminate this document, including the process described in the document, at any time and for any reason without notice to employees. This document provides a guideline for employees regarding Nortel's FMLA Leave policy and process it is not a contract between Nortel and its employees.

[pic]Definitions

To the extent that any of the definitions below conflict with the definition of those terms as defined under the FMLA or regulations issued under the FMLA, the terms below will be interpreted consistently with the FMLA or regulations issued under the FMLA.

• Business Days - means Monday through Friday but excluding any holidays observed by Nortel.

• Covered Military Member - With respect to Military Exigency Leave, means an individual who is on active duty or call to active duty status in the National Guard or Reserves in support of a contingency operation. It does not include individuals in the Regular Armed Forces.

• Covered Service Member - With respect to Military Caregiver Leave, means a current member of the Armed Forces, including a member of the National Guard or Reserves, or a member of the Armed Forces, the National Guard or Reserves who is on the temporary disability retired list.

• Domestic Partner - means an unmarried individual of either gender who is certified by required proof to be:

o not married to anyone else

o not related to the employee by blood that would prohibit legal marriage in the state in which the employee lives,

o the employee's sole and exclusive partner whom is publicly represented as the employee's Domestic Partner,

o sharing in the employee's financial obligations,

o living with the employee and meeting all of the requirements listed above for at least 12 months immediately before the employee certifies Domestic Partnership,

o mentally competent to consent to a contract, and

o age 18 or older

An employee's Domestic Partner must be qualified under the benefits program rules including the employee's completion of an Affidavit of Domestic Partners available on Services@Work, or completing the affidavit online prior to the time of the leave request. Contact HR Shared Services for more information.

• Equivalent Position - means a position that is virtually identical to the position the employee held prior to the start of the FMLA Leave in terms of pay, benefits and working conditions.

• FMLA or Family and Medical Leave Act of 1993 - means the federal statute that requires employers to provide unpaid leaves of absence to eligible employees for certain qualifying reasons as described in this document.

• Health Care Provider - means a doctor of medicine or osteopathy authorized to practice medicine or surgery in the state where the practice occurs, or any other person capable of providing health care services as determined by the Secretary of the Department of Labor. The latter includes:

o podiatrists

o dentists

o clinical psychologists

o optometrists

o chiropractors (limited to treatment consisting of manual manipulation of the spine to correct a subluxation as demonstrated by X-ray to exist)

o nurse practitioners, clinical social workers, physician's assistants and nurse-midwives

o Christian Science practitioners listed with the First Church of Christ, Scientist, in Boston, MA

• Intermittent Basis - means an FMLA Leave that is taken in separate blocks of time due to a single qualifying reason.

• Key Employee - means a salaried employee who is among the highest paid 10% of all Nortel employees within 75 miles of that employee's worksite and whose reinstatement following an FMLA Leave will cause substantial economic hardship to Nortel.

• Leave Administrator - the Nortel delegated representative that provides intake services for all FMLA Leave requests and approves and monitors all FMLA Leaves.

• Military Caregiver Leave - means an FMLA Leave that allows an eligible employee, who is the Spouse, Son, Daughter, Parent or Next of Kin of a Covered Service Member to care for that service member who is undergoing medical treatment, recuperation or therapy, is otherwise in outpatient status or is otherwise on the temporary disability retired list for a serious injury or illness incurred in the line of duty while on active duty in the Armed Forces that may render that service member medically unfit to perform duties of the service member's office, grade, rank or rating.

• Military Exigency Leave - means an FMLA Leave that is available to an eligible employee whose Spouse, Son, Daughter or Parent is a Covered Military Member. The following are qualifying reasons for which Military Exigency Leave may be taken:

o Short notice deployment: Available when the Covered Military Member receives less than 7 days of notice prior to the call to duty and can be taken for a period of 7 days beginning on the date of notification to address any issues arising from the short notice of deployment;

o Military events and related activities: Available for attendance of official ceremonies, programs or events sponsored by the military related to the Covered Military Member's active duty or call to active duty or to attend family support or assistance programs and informational briefings sponsored by the military, military service organizations or the American Red Cross that are related to the active duty or call to active duty;

o Childcare and school matters: Available to address childcare or school matters relating to the Covered Military Member's Son or Daughter that arise because of the active duty or call to active duty;

o Financial and Legal Arrangements: Available to make or update financial or legal arrangements, such as drawing up and executing financial and healthcare powers of attorney and updating a will, to address the Covered Military Member's active duty or call to active duty or to act as the Covered Military Member's representative with respect to military benefits while on active duty or call to active duty and for a period of 90 days following the end of the active duty status;

o Counseling: Available to attend counseling for the employee, the Covered Military Member or the Son or Daughter of the Covered Military Member;

o Rest and Recuperation: Available for 5 days each time the Covered Military Member is given short-term temporary rest and recuperation during the deployment in order to provide the employee with time to spend with the Covered Military Member;

o Post-Deployment Activities: Available to attend reintegration events or other official programs or ceremonies sponsored by the military for up to 90 days after the end of active duty status or to address issues related to the death of the Covered Military Member while on active duty status; and

o Additional Activities: Available to address other events that arise from the Covered Military Member's active duty or call to active duty provided that the employee and Nortel agree that the event qualifies as an "exigency" and to the timing and duration of the leave.

• Next of Kin - With respect to Military Caregiver Leave, means the nearest blood relative other than the Covered Service Member's Spouse, Parent, Son, or Daughter, in the following order of priority: Blood relatives granted legal custody of the Covered Service Member, brothers and sisters, grandparents, aunts and uncles, and first cousins, unless the Covered Service Member has specifically designated in writing another blood relative as his or her nearest blood relative for purposes of Military Caregiver Leave.

• Parent - means a biological, adoptive, step or foster father or mother, or any other individual who stood in loco parentis to the relevant person when the person was a Son or Daughter, as defined below, under age 18 or age 18 or older and incapable of self-care because of a mental or physical disability at the time the relevant FMLA Leave began. This term does not include "parents in law".

• Reduced Schedule Basis - means an FMLA Leave that is taken through a decrease in the employee's usual number of hours worked per work week or hours worked per work day.

• Serious Health Condition - An illness, injury, impairment, or physical or mental condition that involves either an overnight stay in a hospital, hospice or residential medical care facility or continuing treatment by a Health Care Provider for a condition that either prevents the employee from performing the functions of the employee's job or prevents the qualified family member for whom the employee is providing care from participating in school or other daily activities. Subject to certain conditions, the continuing treatment requirement may be met by a period of incapacity (i) of 3 consecutive calendar days combined with (a ) at least two visits to a health care provider, both of which must occur within 30 calendar days of incapacity and the first of which must occur within 7 calendar days of incapacity or (b) one visit to a health care provider within the first 30 calendar days of incapacity and a regimen of continuing treatment, (ii) due to pregnancy or (iii) due to a chronic condition. Other conditions may meet the definition of continuing treatment.

• Son or Daughter - Individuals covered by this term will depend on the nature of the FMLA Leave. Generally the term refers to the biological, adopted or foster child, a stepchild, or a legal ward of the employee or, with respect to Military Exigency Leaves for childcare or school matters, Covered Military Member, or a child for whom the employee or the Covered Military Member, as applicable, stands in loco parentis, who is either under age 18 or age 18 or older and incapable of self-care because of a mental or physical disability. However, when used in the context of Military Caregiver Leave or Military Exigency Leave (other than Military Exigency Leaves to make arrangements for childcare and school), the term includes an individual of any age who is the biological, adopted or foster child, stepchild, or legal ward of the employee or the Covered Service Member, as applicable, or a child for whom employee or the Covered Service Member, as applicable, stands in loco partentis.

• Spouse - Means a husband or wife as defined or recognized under applicable state law for purposes of marriage in the state where the relevant person resides, including common law marriage where the relevant person resides in states where it is recognized.

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