Collective Bargaining Agreement between Geothermal Development Company Limited Of the first part And Kenya Electrical Trades and Allied Workers Union Of the second part FEBRUARY 2019

WHEREAS, it has been agreed that the remuneration, terms of engagement and working conditions of such employees shall be settled by negotiations between the Employer and the Trade Union; and

WHEREAS following the negotiations held, the Parties have consequently agreed to enter into this Agreement whose terms shall be effective from the 1st of January 2018 (The effective date) governing the terms and conditions of employment for Unionisable employees of the Company.

NOW THEREFORE the parties hereto hereby agree as follows: -

1.The following documents attached hereto shall be deemed to form an integral part of this Agreement and as may be amended from time to time by mutual agreement of the Parties:

a.The Recognition Agreement

b.The following Appendices: -

Appendix A: Salary/Wages Structure; and

Appendix B: Schedule of Personal Protective Equipment.

2.The mutual rights and obligations of the Union Members and the Employer shall be as set forth in this Collective Bargaining Agreement, inter alia

a.Maintain mutually satisfactory working relations;

b.Establish and maintain favorable conditions of employment; and

c.Provide procedures for handling of discipline and resolution of disputes and grievance(s)

1.DEFINITIONS

Unless the context otherwise requires, the following terms whenever used in this CBA have the following meanings: -

"Allowance" means extra monies payable to Employees not being part of the wages/salary for specific purposes, to defray certain expense i.e. housing allowance transport allowance, daily subsistence allowance et al;

"Basic Salary" means the amount payable to an Employee exceptive of any benefits, overtime compensations or any form of deductions;

"Agency Fee" means the amount payable to a trade Union by Unionisable Employees who are benefiting from the terms of the CBA but are not members of the Trade Union.

"Consultative Committee" means CJC, BCC and any other constituted sub-committees

"Company/Employer" refers to Geothermal Development Company Limited (GDC);

"Continuous Service/Employment" means consecutive and continuous days, weeks, months, and/or years of employment where there is no break in service involving separation of the employment/contract of service;

"Child/Children" means biological or adopted issues;

"Dependants" means the declared spouse-one (1) - and six (6) children below the age of twenty-five (25) and persons living with disability of all age who is fully dependant on the Employee;

"Disability" means a physical, sensory, mental or other impairment, including any visual, hearing, learning or physical incapability, which impacts adversely on social, economic or environmental participation;

"Gross salary" means an Employee's earning- basic salary, allowances, overtime pay and bonuses-prior to any deduction and tax;

"High rate" refers to overtime allowance earned by an employee during weekends, rest days and gazetted Public holidays;

"Low rate" refers to overtime allowance earned by an employee in excess of the normal working days/hours i.e. Monday to Friday and extra hours earned by shift workers beyond 12 working hours while on shift;

"Parties" refers to the Company and the Trade Union;

"Probation" refers to the period during which an employee's ability and suitability are assessed;

"Redundancy" means loss of employment by involuntary means involving termination of employment at the initiative of the employer, where the services of an employee are superfluous;

"Remunerative Allowance" means the allowances that are paid with the salary i.e. house allowance, transport allowance, leave allowance, transfer allowance et al;

"Rest Days" means the off days a shift worker is granted after completion of the recommended monthly working hours in the case for shift workers and Saturdays and Sundays in the case of regular employees;

"Shift cycle" means a regularly constituted rota that determines the sequence of work;

"Shift Worker" means an employee of regularly constituted shift cycle or as may be amended from time to time;

"Subscription Fee "means monthly contribution to KETAWU and COTU by a Union Member or payment on behalf of the Employee by the Employer to a professional body;

"Trade Union" means KETAWU;

"Trade Union Member" means to an Employee who has subscribed to KETAWU;

"Unionisable Employee/Employee" means a staff eligible for membership to the trade union; and

"Wages" means monetary compensation paid by an Employer to an Employee in exchange for work done excepting allowances

Whenever the masculine is used in the Agreement, it shall be construed as meaning the feminine or the neuter where the context so admits or requires and the converse shall hold as applicable.

2.APPLICATION

3.EXTRA CLAIMS

The parties to this agreement undertake that during the period of operation of the agreement, there shall be no further claims for wages or salary increases or improvements in employment conditions sought/ or granted except for those provided under the terms of this agreement or any adjustment as provided for under this agreement.

4.EFFECTIVE DATE DURATION AND RENEGOTIATION OF THE AGREEMENT

4.2Amendment of the CBA

4.2.1Parties to the CBA shall give at least two months' notice expressing intent to amend the terms of the CBA.

4.2.2No variation or modification of the terms of the CBA shall be made except by written amendment agreed upon and signed by both parties.

4.3Extension/Renegotiation of the CBA

4.3.1Prior to the lapse of the term of this CBA, either party may give at least two (2) months' notice expressing intent for the terms of the CBA to continue in force for a further period as may be agreed upon or its intention to renegotiate a new Agreement.

4.3.2Notice of intent to negotiate a new CBA and discussions on the new agreement is to commence at least eight (8) months prior to the expiry date of this Agreement.

4.3.3Until such a date as a new CBA is agreed upon, the existing terms and conditions of this CBA shall remain in force.

5.PURPOSE MANAGEMENT OF THE CBA AND DISPUTE SETTLEMENT

5.1Purpose

This CBA sets out the framework for reasonable working conditions of the Unionisable employees and increase efficiency in the work place.

6.LEVEL OF REPRESENTATION

Employees in Job Grade GD8 to GD12 shall be eligible to voluntarily join The Trade Union (KETAWU) as guided by the provisions of the Recognition Agreement and as may be amended from time to time by mutual consent.

7.UNION MEMBERSHIP

7.1Both Parties recognize that this CBA imposes serious duty (ies) and responsibility (ies) on the Employer, the Trade Union and its members. The Parties realize that the responsibilities laid on them can only be fulfilled if a high standard of discipline and mutual respect in the organization is maintained between both the employer and the employee.

7.2Union membership shall be voluntary and shall take effect upon registration by the staff to the Union. The Employer will uphold the freedom of association to be granted to employees.

7.3Both the Trade Union and the Employer undertake to observe the provisions of the Labour Laws and any other legislation that applies to the welfare of employees. The Employer shall not engage in such practices as:

7.4Subject to the terms of this Agreement and any other relevant laws and regulations, no eligible employee shall be denied the right to be a member of the Trade Union.

8.COLLECTION OF TRADE UNION DUES & AGENCY FEES

8.1The Employer undertakes to recover all union dues (Subscription and agency fees).

8.2Dues from registered Union members shall be recovered upon receipt of advice from the General Secretary, KETAWU.

8.3Eligible Employees who are non-subscribing members of the Trade Union but by default benefit from the terms of the CBA shall be subjected to an agency fee worked out by the union subject to the agency fee, not exceeding the applicable trade union dues; The agency fee will be payable during the CBA implementation period.

8.4Union dues shall be collected through check-off system.

8.5The check-off system shall operate under the conditions laid down in the Labour Relations Act, 2007 and other enabling laws.

8.6The amounts deducted shall be subject to guidelines under relevant legal provisions-Employment Act No 11 of 2007

The Employer shall remit the collected Trade Union dues to KETAWU and COTU- K respectively on the same day Salary is paid.

9.ENGAGEMENT

9.2An appointment offer may be withdrawn if a candidate does not accept the offer in writing and take up the appointment within thirty (30) days from the date of receipt of the letter of offer.

9.3Every Unionisable employee shall have access to the Human Resource Policies & Procedures and any other work related manuals.

9.4Every Unionisable employee who joins the Trade Union shall have access to the current Collective Bargaining Agreement (CBA).

10.1.2The period of probation may be extended if satisfactory progress has not been made by the employee. A notice of extension of not less than seven (7) working days shall be issued by the Employer in writing, prior to the expiry of the probation period informing the employee the intent to extend the probation period giving reasons occasioning the need for the extension. In any case, such extension shall not exceed three (3) months.

10.1.3During the probation period, in case the Employer wishes to terminate employment, a notice of not less than one (1) month shall be issued to the Employee indicating intent of termination of the contract of service.

10.2Induction

While on probation, a newly engaged employee shall be given on the job training and any induction relevant to the execution of the job.

10.3Duties & Responsibilities

This will be clearly defined in writing detailing the job description which shall form the basis of performance assessment and discussions.

11.GENERAL TERMS OF ENGAGEMENT OF THE DIFFERENT FORMS OF EMPLOYMENT CONTRACTS

11.1Forms of Contracts applicable

11.1.1Fixed term Contracts

These are contracts with a defined term/duration. Unless otherwise terminated, the Contractual relation will be terminated at the end of the said period. For purposes of this CBA, contracts exceeding one (1) year.

11.1.2Permanent and Pensionable/ Open ended contracts

The employment contract or Offer Letter sets the duration of employment to a set retirement age. (60 or 65 for persons with disability)

11.2Application of the CBA

11.3All Unionisable Employees shall be entitled to the negotiated terms under this CBA where applicable.

11.4The terms and conditions of employment of the different forms of employment as defined hereinabove shall be in accordance with the employment contract, provisions of the Employment Act 2007 No. 11 of 2007 and other applicable legislation and regulatory provisions.

11.6The terms and conditions of other forms of contract employees will be as detailed in their employment contracts.

11.7Through a competitive process, priority may be given to persons who had previously served under this category where vacancy(ies) is available and the skill is required

12.CONDITIONS OF EMPLOYMENT AND TERMINATION

12.1WORKING HOURS AND SHIFT SCHEDULES

12.1.1Management shall regulate the working hours of each employee in accordance with the provisions of the Employment Act and other enabling legislation as set out herein below and as may be amended from time to time.

While;

12.1.2.2 Hardship areas working hours shall be from Monday to Friday 7:00am to 3:00pm with one (1) hour lunch break between 1.00pm and 2.00pm. as may be further regulated subject to applicable laws and regulations

12.1.3The above stipulated hours may change from time to time, however, this will be done through involvement of the Trade Union and a notice of sixty (60) calendar days shall be given to the affected staff.

12.1.4Ordinary working hours shall not exceed 8 hours per day and any hours in excess of eight hours shall be compensated subject to approval.

12.1.5Shift working hours shall not exceed the stipulated shift hours any hours in excess of the regulated shall be compensated subject to approval.

12.1.6Shift workers7 time shall be spread over the period of a shift rota to suit local conditions provided that: -

12.1.6.1No employee shall work continuous shift, unless an emergency renders this necessary.

12.1.6.2In the event of change in a shift rota, Employees will be given a twenty-four (24) hour notice.

12.1.7Shift working hours shall not exceed an average of one hundred and sixty-eight (168) hours over a shift cycle of 12 hours.

12.2EXCESS PAYMENT OF NORMAL WORKING HOURS

Table 1; Rates applicable for payment in excess of normal working hours

12.2.2Overtime will be calculated as follows: -

High rate overtime allowance =2 x the number of hours worked per month x basic salary 175.5 hours per month

12.2.3Overtime will be payable to employees on special assignment (consultancy work) within and/or outside the country subject to the Employer regulating the working hours. Employees on fieldwork shall be entitled to overtime as provided for under the hereinabove clauses on work hours and overtime.

12.2.4Employees on probation and other forms of contracts of service who are required to work beyond the stipulated hours of work shall also be entitled to overtime at the aforementioned rates.

12.2.5Overtime must be approved prior to engaging an employee subject to maximum acceptable working hours as stipulated in relevant legislation.

12.3LEAVE

12.3.1.2After the completion of the probation period, an employee whose services are terminated before the completion of 12 months will be entitled to leave on pro rata basis computed at 2.5 days for each month worked.

12.3.1.3An employee resigning from the services of the Employer or have their services terminated shall be entitled to an accrued leave at the rate of 2.5 days per complete month of service.

12.3.1.4Leave shall be applied for in writing by the Employee and would require Management's approval before commencement.

12.3.1.5Leave will be taken the same year it is due and shall not be accumulated without the express agreement of the Management in writing and in compliance with the relevant provisions of the law. Where an employee is required to remain on duty, he/she will be informed in writing.

12.3.1.6An Employee in gazetted hardship areas shall be entitled travel time of one (1) day each way.

12.3.1.7Where an Employee is recalled from leave on account of work or Training, or any other function of the Employer, at least a minimum of twenty four (24) working hours' notice will be given. In the event of interrupted leave, he/she will be reimbursed transport costs upon availing documentary proof. Such leave shall not be forfeited as long as it is documented.

12.3.2COMMUTATION OF ANNUAL LEAVE

Except in exceptional circumstances, annual leave may not be commuted for cash. The Managing Director & CEO shall be responsible for authorizing commutation of leave for cash where leave is not taken due to exigencies of service.

Commutation of leave will be calculated based on the employee's one (1) month's basic salary for the relevant year.

12.3.3COMPASSIONATE LEAVE

12.3.3.1An employee who has exhausted his annual leave entitlement may be granted compassionate leave up to 10 working days in a leave-year.

12.3.7CHILD ADOPTION LEAVE

An employee who has been granted adoption rights under relevant legislation and wishes to take leave for purposes of bonding with the child, will be entitled to adoption leave in accordance with the employment Act subject to submission of adoption order and as per the provisions of the HRPP and as may be amended from time to time.

Table 2: Child Adoption Leave

12.3.8EMERGENCY LEAVE

The Employer shall grant emergency leave up to the employee's leave entitlement on application depending on the situation. The days shall be recovered from the employee's annual leave entitlement.

12.3.9RELIGIOUS HOLIDAYS

Employees who are members of religious denominations, whose holidays are celebrated on days other than gazetted public holidays, may be granted one (1) day leave with pay on each year upon written request which must be submitted before the leave is taken. The days shall be recovered from the Employee's annual leave entitlement.

12.3.10.1Employees on their own initiative and time may undertake relevant postgraduate/equivalent studies for self-development. Employees are eligible for a 50% refund of the amount spent on tuition and examinations if the course had been approved prior to commencement

12.3.10.2The Employer shall encourage employees to develop their potential by providing part-time release during working hours, which shall not exceed eighteen (18) months.

12.3.10.3The courses should receive prior approval and should not interfere with the Employer's work. Heads of departments must be informed of the intended studies at the application phase and in any other case, three (3) months prior to commencement of studies (offer: three (3) months prior for long courses and one (1) month for short courses.)

12.3.10.4Employees on study leave are not entitled to annual leave or leave accrual for the period they are on study leave, they will also not be entitled to leave allowance for the said period.

12.3.10.5Employees will not lose any leave days accumulated before commencement of the study leave.

12.3.10.6There shall be no provision for unpaid study leave.

12.3.10.7An employee shall be granted ten days exam leave per year upon submission of exam timetable.

12.3.10.8Employees attending short self-sponsored courses of less than two weeks within the financial year that are relevant and beneficial to the line of work will be deemed to be on duty.

12.4PAYMENT OF SALARIES/WAGES AND REMITTANCE OF OTHER DEDUCTIONS

12.4.1The Employer shall pay salaries on or before the 26th day of each month except in December where payment may be earlier.

12.4.2Trade Union members shall be advised of their respective monthly pay on or before the 26th day of each month.

12.4.3Any other deduction such as (RBS, HELB, SACCO, Insurance premiums, Bank loans etc.) shall be remitted on or before the end of each month.

12.4.4Statutory deductions such as PAYE, NHIF and NSSF shall be remitted on/or before the 9th of each month.

12.5PERFORMANCE MANAGEMENT & DISCUSSIONS

12.5.1The performance of each employee shall be reviewed twice a year through a documented performance management system and the outcome communicated to the concerned employee.

12.5.2Merit increments shall be performance based.

12.5.3Merit increments shall be granted to employees on the advice of the Functional Heads of the respective units.

12.6PRINCIPLES OF PROMOTIONS

12.6.1The Management reserves itself the prerogative over promotions.

12.6.2Consideration of employees for promotion shall be in accordance with the career guidelines/scheme of service for each cadre, which shall specify the minimum requirements in terms of recognized qualifications, merit, ability and work experience.

12.6.3Employees who pass examinations or obtain a certificate approved by management but cannot be promoted due to lack of vacancy shall be awarded a salary increment within the appropriate scale and as per the Company's training policy.

12.6.4Employee shall only be promoted to better terms of employment, failure to which, the Employee may opt to decline the promotion.

12.7TRANSFERS

12.7.1Employees' transfer shall not be arbitrary but for purposes of enhancing productivity.

12.7.2An employee, to the extent possible shall be given a one (1) month written notice of intent to transfer prior to reporting date to the new station. Negotiation with the employee will be done before the transfer is effected in instances of short notice.

12.7.3An employee shall not be expected to relocate to his new station until transfer dues are fully settled.

12.9STAFF WELFARE

12.9.1The Employer shall provide adequate transportation to employees engaged on assignment.

12.9.2Where Company transport is not available, employees may use their own transport upon prior approval and will be reimbursed the cost by the company as detailed in clause 13.2.4 on mileage allowance.

12.9.3Employer shall provide adequate, quality and balanced meal to employees on shift assignment.

12.9.5Camping crew shall be provided with adequate bedding.

12.9.6The Employer shall provide camping crew with 3 pieces of bathing soap

each of 200grams per shift.

12.9.7The Employer shall provide laundry services to camping crew restricted to PPE's and bedding.

12.9.8Other than the designated and reserved parking for company vehicles, the Employer shall provide ample parking spaces for employees subject to

availability of funds, parking space and procedure on first come first serve basis for undesignated parking spaces.

12.9.10The company will endeavor to provide recreational facilities in appropriate localities.

12.9.13The Employer will facilitate renewal of Driving Licenses for designated drivers.

12.10REDUNDANCY

12.10.1It is accepted by the Employer that all practicable steps should be taken to avoid redundancy, but when it does arise, there should be consultation with the Trade Union at the earliest possible moment.

12.10.2The Employer will consider whether there are any alternative employment positions within the company before redundancy is declared.

12.10.3Where employment is terminated on the account of redundancy, the following principles and procedures shall apply: -

12.10.3.1The Trade Union and the Labour Officer of the area shall be informed five (5) months in advance of the reasons for and extent of the intended redundancy.

12.10.3.2The Employer shall have due regard to seniority in time, the skill, ability and reliability of each employee belonging to a particular category of employees affected by the redundancy.

12.10.3.3No employee will be discriminated against for being a member of Trade Union.

12.10.3.4Any leave due to an employee shall be paid for in cheque.

12.10.3.5Where an employee is declared redundant, the Employer shall give one (1)

month notice in lieu of which, the employee will be paid one (1) month's salary and other benefits as prescribed in the Employee's Contract of Service.

12.10.3.7The Employer will provide transport for the declared family members and household items to the preferred destination within Kenya.

12.10.4Re-engagement

When subsequent vacancies occur, prior consideration will be given to the employees previously declared redundant subject to competitive process.

12.11DISPUTE/GRIEVANCE RESOLUTION PROCEDURE

12.11.1Grievance Resolution Procedure

Industrial grievances will be handled as provided in the Recognition Agreement between the employer and the Trade Union and as detailed below: -

12.11.1.1All meetings involving industrial relations allegations, complaints and grievances from shop floor level shall be minuted and the minutes signed and confirmed by the parties concerned. The parties will be expected to appoint a chairperson and secretary during such meetings. 

12.11.1.2In case, of an issue between a Unionisable employee and any of the company Employees, the shop steward shall discuss the matter with the relevant supervisors within three (3) working days.

12.11.1.3Where a solution is not reached, the shop steward will report to the BCC Representative while the supervisor to report to the next level supervisor where applicable or the Head of Department/Regional Human Resources Employee within three (3) working days.

12.11.1.4Where a solution is not reached between the Head of Department and BCC Representative, the matter is referred to Regional Manager by the parties and resolved within five (5) working days.

12.11.1.5In the event of failure to reach an agreement, the Regional Manager/Human Resources Employee shall notify the General Manager Human Resources and the Branch Secretary within three (3) working days for guidance and referral to either BCC/CJC or otherwise.

12.11.1.6Where the matter is referred to BCC, the BCC shall endeavor to resolve the matter within twenty-one (21) working days from the date of receipt.

12.11.1.7In an event of a grievance remaining unsettled, either side wishing to proceed with the matter in contention will refer it to the Central Joint Council, the Central Joint Council shall endeavor to resolve the matter within twenty-one (21) working days from the date of receipt.

12.11.1.8In an event of a grievance remaining unsettled, the CJC Chairperson/Secretary shall in turn report to the MD & CEO/General Secretary respectively. Both written notifications shall be submitted not later than 14 days from the day the matter is unresolved by the CJC.

12.11.1.9The General Secretary and the MD &CEO, upon receipt of the written notifications, shall discuss the matter in an effort to reach an amicable settlement within a month.

12.11.1.10Where no settlement is achieved, either side wishing to proceed with the matter in dispute will report the matter to Ministry in charge of labor in accordance with Labor Relations Act 2007 and other enabling legislation.

12.11.1.11 Any party from either side found contravening the above procedures in the form of lock-out or withdrawal of labour will be in serious breach of discipline contrary to the Provisions of the Labour Relations Act 2007.

12.11.2Discipline Procedure

12.11.2.1An employee who contravenes provisions of the Public Officers Code of Conduct as detailed in the Public Officers Ethics Act No 3 of 2003 (as amended from time to time), commits minor, major, or gross misconduct as provided for in the HRPP and related legislation will be subject to disciplinary process.

12.11.2.2In determination of an offence, an Employee's misconduct shall be evaluated on whether it falls under breach of code of conduct, minor, major or gross misconduct and thereafter the applicable disciplinary procedure shall apply.

12.11.2.3An employee will have a choice to have a representative of their choice exempting an advocate or a trade Union representative.

12.11.2.4The Trade Union member may have the option to have a Trade Union representative present during hearing in instances of possible termination.

12.11.2.5Where disciplinary action has been taken against an employee, the employee shall be advised in writing.

12.11.3Alternative Interventions in The Discipline Process

12.11.3.1Alternative interventions are other efforts undertaken by an employer to address an employee's misconduct other than traditional disciplinary action. This is guided by the Public Service Commission Act No. 10 of 2017 and Public Service Disciplinary Manual of 2016 and as may be amended from time to time.

12.11.3.2Alternative intervention may result in modified behaviour if used early on in the discipline process for less serious offences but may not be effective in more serious issues or habitual offences. The appropriateness of the

particular approach will vary based upon the nature of the offence and personality of the individual whose conduct needs correcting.

12.11.4Alternative Discipline Interventions

12.11.4.1Counselling

12.11.4.1.1Counselling is an intervention to communicate helpful information and provide necessary support in management of psychological challenges.

12.11.4.1.2In the event an employee violates the provisions set out in the policy the immediate supervisor, shall determine whether the employee qualifies for counselling. Thereafter, the Supervisor will provide guidance and counselling on a one on one basis with the employee, the employee may opt to invite another employee of choice.

12.11.4.1.3If it becomes obvious the matter is more serious, discussions should be adjourned and further referral for assistance made or formal disciplinary procedure commences.

12.11.4.1.4Counselling may be provided for staff facing challenges that are either work related, personal or post discipline.

12.11.4.2Guidance and Training

12.11.4.2.1This can be used by supervisors to address poor performance of an employee when there is no misconduct contributing to the problem. Supervisors have the responsibility to have regular meetings with employees to explain workplace rules or whenever an employee is unclear about management expectations. Supervisors should also identify individual shortcomings which can be addressed through guidance and appropriate training.

12.11.4.3Discipline Dispute Resolution Mechanism

12.11.4.3.1This can be used effectively to resolve, reduce or even eliminate workplace disputes that may come from a circumstance where disciplinary action is appropriate. Alternative dispute resolution affords an opportunity to create solutions that are uniquely tailored to address issues at hand.

12.11.5Application of Alternative Interventions

12.11.5.1.1When applying alternative interventions the following should be observed: -

i.The specific offence/ shortcoming that needs to be addressed;

ii.Employee's admission of wrongdoing/willingness to participate in the appropriate intervention;

iii.The specific form of alternative intervention that will be used and its duration and

iv.Notification of the possible penalty for a subsequent offence.

12.12 TYPES OF OFFENCES

The following are offences that lead to disciplinary process including the offences provided for in the Disciplinary Policy under the HRPP.

12.12.1Minor Offences

Punishment for minor offences shall range from caution to warning (oral or written). Examples of minor offences include, but are not limited to, the following: -

a.Continued lateness to work;

b.Absence from duty for not more than twenty-four (24) working hours without permission;

c.Idling and loitering during working hours;

d.Avoiding work on account of false sickness;

e.Misuse of company telephone facilities and other equipment/ property; and

f.Rumour peddling.

12.12.2Major Offences

Punishment for major offences will range from severe reprimand to dismissal/ termination of employment contract. Examples of major offences include, but are not limited to the following:

a.Absence from work for a period of not more than forty-eight (48) working hours without permission.

b.Entering into paid/unpaid employment/ occupations which in the view of the management may not be in the company's interest or that results to conflict of interest.

c.Breach of standing regulations

d.Assessed poor performance for a period of three consecutive years

e.Repetition of minor offences (Three offences)

f.Contravention of traffic laws while using the company's vehicles

g.Misuse of Company's vehicles by: -

i.Carrying unauthorized passengers;

ii.Driving without valid driving license;

iii.Using Company's vehicle without authorization;

iv.Driving Company's vehicle without adequate fuel.

12.12.3Gross Misconduct offences

Punishment for gross misconduct offences may result in summary dismissal and/or prosecution in a court of law. Examples of gross misconduct offences include, but are not limited to:

a.Absence from work for a period of more than forty-eight (48) continuous working hours without permission

b.Repetition of major offences

c.Willful neglect to perform official duties or to carelessly and improperly perform any work which is in one's line of duty

d.Insubordination

e.Willful misuse/ damage of the company's property

f.Physical violence on self or other employees

g.Use of abusive or offensive language

h.Soliciting, giving or accepting bribes or commissions (this includes accepting gifts from suppliers). If an employee is given a gift by a supplier, irrespective of whether in cash or other forms, he/she must declare the same to the Company as per the Gift Declaration Policy.

12.12.3.1Absence from Duty without Leave

12.12.3.1.1Where an Employee is absent from duty without leave, reasonable or lawful cause, for a period exceeding twenty-four (24) hours and the employee cannot be traced within a period of ten (10) days from the commencement of such absence, or if traced, no reply to a charge of absence without leave is received from the Employee, the employee may be summarily dismissed. The following steps shall apply;

a.Establish the exact dates the Employee was absent from duty. If not traced through personal contacts and next of kin within a period of then (10) days from the commencement of such absence, the salary and other remunerative allowances shall be stopped with effect from the date of absence and a report of the missing Employee be made to the Trade Union, nearest police station and the Human Resource Office for appropriate action.

b.The Employee shall be issued with 'Show Cause Letter' through his/her last known address through registered mail, giving a reasonable period within which to respond but not less than ten (10) days. The nature of the offence and the contemplated actions shall be stated clearly in the letter. A scanned copy of the show cause letter may be sent to the Employee through electronic mail.

c.If the Employee does not respond, the case shall be submitted to the relevant HR Committee which shall make a recommendation to the relevant authority empowered under the regulations for decision.

d.If the Employee has responded, the representations shall be analysed alongside the charges and the findings submitted to the relevant committee for recommendation to the MD & CEO.

e.The decision of the Company and the right of appeal or application for review will be communicated to the Employee, Trade Union, relevant professional bodies and labour office where applicable. The communication will be prompt but not later than fourteen (14) working days from the date of decision making.

12.13 PROCEDURE FOR DISCPLINARY PROCESS

12.13.1Verbal Warning

12.13.1.1In the event of initial instance of minor offences committed by an Employee, the immediate supervisor will issue a verbal (oral) warning in the presence of a neutral witness, in respect of the first instance of minor offences or of any failure to reach minimum standards of conduct or performance on the job.

12.13.1.2A copy of the record, such as diary, for such a warning indicating that there was a meeting between the supervisor and the Employee should be kept by the supervisor. The verbal warning should be in form of structured discussion which may entail counseling.

12.13.1.3The Employee should be informed of the alleged offence and what is likely to befall him or her in case the offence(s) is repeated in future.

In the event the Employee repeatedly commits minor offences irrespective of verbal warning(s), a written warning should be given to the Employee by his or her supervisor.

12.13.2Show Cause Letter

12.13.2.1The employee shall be informed through a show cause letter by the supervisor in consultation with HR, in writing on the allegation against them.

12.13.2.2The employee shall be given seventy-two (72) hours on receipt of the show cause letter or other reasonable time that may be determined to respond in writing within which he/she shall offer their defense (representation) and or reasons to exonerate him/herself from blame;

12.13.2.3on receipt of the defense from the Employee, the Supervisor shall respond to the Employee with the findings within seventy-two (72) hours;

12.13.2.4On expiry of the specified period of response to the 'show cause letter', and the employee has not responded/unsatisfactory response, the case shall be presented to the relevant Supervisor/Disciplinary Committee for deliberation and recommendation;

12.13.2.5In a case where the committee receives satisfactory response from the employee, the matter will be closed within seven (7) days from the date of determination and the same communicated in writing to the employee;

12.13.2.6In the event the investigation reveals further offencc(s) against the Employee, a further show cause letter shall be issued to the Employee.

12.13.2.7Show cause letters shall be hand delivered (where possible), sent by post and/ or forwarded via mail and telephone calls will be used as a follow up as may be applicable.

12.13.3Interdiction

12.13.3.1Interdiction refers to temporarily stopping an accused Employee from performing official duties to give room for investigation.

12.13.3.2The interdiction process entails the following: -

a.An employee may be interdicted where major offences or gross misconduct likely to lead to dismissal is reported and requires further investigation, or a report that an employee has been charged in criminal proceedings is received;

b.If the case relates to a criminal charge the Employee shall be served with an interdiction letter;

c.If the misconduct is one which can lead to dismissal but is not of criminal nature the employee shall be served with a show cause letter which shall also contain a communication on interdiction;

d.An employee on interdiction shall be entitled to half of his/her basic salary , full house allowance and medical entitlement;

e.An employee on interdiction should not leave the duty station without the permission of the immediate supervisor or any other Employee who is authorised to give such permission;

f.An employee whose interdiction has been lifted shall promptly be served with a decision letter. Any withheld salary, allowances and benefits shall be restored with effect from the date it was withheld

g.The matter occasioning the interdiction shall be settled within a duration of six (6) months in the event the matter has not been resolved, the interdicted Employee resumes duty pending determination of the case.

h.Interdiction shall be administered by the MD & CEO or any other delegated authority.

12.13.4Suspension

12.13.4.1Where an Employee has been charged with:-

a.A criminal offence, the MD & CEO shall suspend the Employee from the exercise of the functions of the office pending consideration of the Employee's case.

b.The MD & CEO may suspend an Employee against whom proceedings for dismissal have been taken if, as a result of those proceedings, the MD & CEO determines that the Employee ought to be dismissed

c.An Employee who is suspended shall receive a half basic salary and full house allowance, but other benefits shall be withheld by the Employer: Provided that an Employee on suspension shall enjoy medical benefits

d.Where an Employee has been suspended but is not dismissed or otherwise punished, any salary, allowances or any other benefit withheld shall be restored to the Employee upon termination of the proceedings.

e.Where an Employee has been suspended and is not dismissed but a penalty is imposed, any salary, allowances or any other benefit withheld shall not be restored upon termination of such proceedings: Provided that upon termination of the proceedings, the Employee shall be reinstated to the office held at the commencement of the proceedings or demoted in accordance with the prevailing terms and conditions of service applicable to the office and with effect from the date of the decision to terminate the proceedings.

f.An Employee who is suspended shall not leave the duty station without notification/ permission of the supervisor in consultation with HR.

12.13.5Punishment

12.13.5.1In the event that the explanation is not satisfactory, punishment shall be determined and communicated to the employee.

12.13.5.2Punishment shall include, but not limited to: -

a.Written warning/reprimand.

b.Withholding of annual increments.

c.Recovery of days of absence from salary.

d.Surcharge.

e.Reduction in rank (demotion).

f.Termination of Service.

g.Summary dismissal.

12.13.6Written Warning

a.If the explanation is not satisfactory the disciplinary committee shall recommend punishment where upon a warning letter shall be addressed to the employee through the Head of Division and Head of Department;

b.The employee shall acknowledge receipt of the letter in writing;

c.The First written warning shall be applied in the case of repetition of an offence for which an oral warning has been given. A warning letter shall be in force for twelve (12) months;

d.The second written warning shall be issued to an employee who has committed a minor offence repeatedly within the validity of the first warning letter;

e.The third written and final warning shall be issued when the employee commits the same or another offence of similar severity, during the validity of the second warning letter;

f.Before a final warning is issued to an employee, the reasons contemplated will be made known to the employee in writing, and he/she shall be provided with an opportunity to answer within seventy-two (72) hours;

g.After the third and final warning, if the offence is repeated or the failure not corrected, or the employee commits an offence of similar severity, the employee may be summarily dismissed;

h.The warning shall lose effect after one (1) year from the date of the third and final warning following satisfactory improvement in performance and/or behaviour, but will not be removed from the employee's file until the employee leaves the Company;

i.Exceptions to the formal disciplinary procedures shall apply in cases of serious misconduct that justifies only one written warning which will act as the first and final warning. (Insubordination, verbal abuse, refusal to obey lawful instructions and unauthorized absence of more than 48 hours.)

12.13.7Surcharge Procedure

a.This procedure shall apply to an employee on account of misappropriation of Company's monies or property, or misuse of the same.

b.In all surcharge cases, a Show Cause Letter must be issued and the employee allowed to make his/her defence.

c.The following guidelines shall apply to this procedure;

i.Surcharge shall be implemented in monthly instalments that shall not exceed twenty five percent (25%) of the employee's monthly basic salary subject to the 2/3 rule.

ii.At retirement, termination, or expiry of contract any outstanding amount of surcharge shall be settled from the employee's terminal dues.

iii.The employee shall sign an agreement to any surcharge that will be outstanding on termination or expiry of the contract.

d.Surcharge shall not be effected until the case is concluded.

12.13.8SUMMARY DISMISSAL

12.13.8.1In the event of failure to heed a final written warning, an employee shall be advised that they may face summary dismissal. An employee who grossly misconducts himself/ herself will be summarily dismissed through the process detailed herein: -

a.A letter detailing the facts of the case and giving reasons for the recommended dismissal shall be sent to the individual and a copy retained in his personnel file. The employee shall be provided with an opportunity to respond within Seventy-two (72) hours.

b.An employee who is declared bankrupt or in any way commits an act which is likely to bring the Company into disrepute will be liable to summary dismissal.

c.In the event of gross misconduct (e.g. insubordination, misappropriation of Company funds, fighting within company premises, misuse of information of confidential nature, unauthorized absence, public outrageous behaviour, unauthorized drinking of alcohol in the Company's premises, conduct which brings the organization or the individual into disrepute), an employee will be liable to interdiction or suspension pending outcome of an investigation by the disciplinary committee and/or be summarily dismissed.

d.While conveying the decision of dismissal, the employee shall be informed in writing of the right to appeal within ninety (90) days.

e.Employees whose termination is through summary dismissal shall be entitled to payment of benefits in accordance with the Rules & Regulations of the Retirement Benefits Scheme. The dismissed employee will be paid for the number of days worked and any leave earned but not taken before dismissal.

f.No payment in lieu of notice will be made to the dismissed Employee. Upon dismissal, the employee will be eligible to payment of pension benefits as per rules and regulation of Company's Pensions Scheme. Service gratuity will not be paid upon dismissal on grounds of gross misconduct.

12.14RETIREMENT

12.14.1An employee of the Company shall compulsorily retire on attainment of sixty (60) or sixty-five (65) years for persons with disabilities but in strict conformity with Government guidelines and in line with the Employer policy as may be issued from time to time.

12.14.2An employee may voluntarily retire at any time on attainment of the age of fifty (50) years.

12.15CERTIFICATE OF SERVICE

12.15.1The Employer shall issue leaving employees with certificate of service as provided for in Employment Act, 2007, on a prescribed format.

13.1.1The adjustment of existing employees' basic salary will be as follows: - Increment of 5% for the first year, (2018) and 8% for the subsequent years (2019-2021) The basic salary will be adjusted each year as below: -

Table 4; Wages Increase

*CBA negotiated

13.1.2The salary entry point of the newly appointed employee shall be the minimum amount in salary scale to which he/she has been appointed subject to the level of experience, expertise and level of previous employment/salary level.

13.1.3New Employees may negotiate their starting salaries which should be within the relevant salary bands.

13.2ALLOWANCES

13.2.1DAILY SUBSISTENCE ALLOWANCE (WITHIN THE COUNTRY)

13.2.1.1Employees required to spend a night outside their duty station while o n official duty shall be paid daily subsistence allowance at the applicable rates shown in the table below, as guided by Salary and Remuneration Commission and further detailed in the HRPP, as may be amended from time to time;

Table 5; Daily Subsistence Allowance within the Country

13.2.1.2This allowance shall be paid prior to the employee's departure, in order to facilitate travel and accommodation costs.

13.2.1.3Where accommodation is provided for by the Employer, the employee will be entitled to quarter (1/4) of the daily subsistence allowance of the applicable allowance to cater for out of pocket expenses for all days spent.

13.2.2 SUBSISTENCE ALLOWANCE OUTSIDE KENYA

13.2.2.1The dailv subsistence allowance (overseas) payable to employees travelling on duty outside Kenya will be as provided for in the HRPP and as amended from time to time subject to SRC guideline.

13.2.2.2If based on the information available at the time of travel the daily subsistence allowance an employee is entitled to is inadequate, the Managing Director & CEO will have the discretion of approving the payment of full board accommodation directly to a hotel. In such an event the employee will be entitled to quarter (1 /4) daily subsistence allowance for all days spent at the rate applicable for the country being visited.

13.2.1.4Staff on training shall be guided by the Training Policy as detailed in the HRPP and as may be amended from time to time.

13.2.3WINTER CLOTHING ALLOWANCE

Employees will be eligible for winter clothing allowance of United States Dollars One Thousand (USD 1,000.00) in regions where temperatures fall below ten degrees centigrade at the prevailing HRPP rates as may be amended from time to time.

13.2.4MILEAGE ALLOWANCE

13.2.4.1Mileage allowance shall be paid to an employee who uses his/her personal car on official duties as follows;

Table 6: Mileage allowance

13.2.4.2Where the engine capacity exceeds the employee's entitlement rate, the reimbursement shall be based on the maximum of the respective job grade, on the other hand, where the engine capacity is below the employee's entitlement rate, the reimbursement shall be based on the AA rate applicable to the engine capacity.

13.2.4.3The maximum mileage rate for an employee per month shall be as authorized by the Employer.

Table 7: Meal Allowance Rates

NB

Breakfast 15% of DS A

Lunch 20% of DSA

Dinner 20% of DS A

13.2.5.2Breakfast allowance is applicable to employees travelling on duty within the country but who are not required to spend the night away from permanent duty station.

13.2.5.3An employee will be eligible if the lunch hour is interrupted while away from duty station.

13.2.5.4Dinner allowance is applicable to employees travelling on duty within the country but who are not required to spend the night away from permanent duty station after 2000 hours.

13.2.6CAMP ALLOWANCE.

All shift employees on duty shall be eligible for camp allowance at the rate of Kenya Shillings One Thousand Three Hundred (KES 1, 300.00) per day for the days on duty for Unionisable employees.

13.2.7.1Standby allowances will be paid to Unionisable employees who are on an approved standby Rota at an absolute figure applicable to self at the rate stipulated in table 8 below.

13.2.7.2An employee carrying out standby duty should be within the operations vicinity and should respond to an emergency call within the shortest time possible.

13.2.8SHIFT ALLOWANCE

13.2.8.1Shift allowance will be paid as an absolute figure applicable to self, as per the rate indicated in table 8 below.

13.2.8.2Shift allowance shall not be payable while on leave, training or any other form of absence.

13.2.8.3When an employee is recalled from off duty to work overtime, the Employee shall not be eligible for shift allowance.

13.2.8.4Shift allowance will also be payable to employees temporarily engaged on day work, provided they are members of a regularly constituted shift rota.

13.2.8.5No payment will be made for period of leave and training, in the event a full month's shift is not worked, proportionate payment will be made to cover the period actually worked. To ensure equity, these guidelines will apply to staff.

Table 8: Shift and Standby allowance rates computations

13.2.10ACTING ALLOWANCE

13.2.10.1To be eligible for payment of acting allowance, an employee must have been appointed in writing by the MD & CEO and must act for a minimum of thirty (30) calendar days for regular workers and a period equivalent to thirty (30) calendar days for shift workers.

13.2.10.2Acting allowance shall be paid at the rate of twenty percent (20 %) of the basic salary.

13.2.10.3Acting allowance will not be payable to an employee for more than six (6) months.

13.2.10.4An employee who is appointed to act shall be eligible for the applicable variable allowances for the position he/she is acting for. However, he/she shall not qualify for house allowance or other remunerative allowances applicable to the post

13.2.11SPECIAL DUTY ALLOWANCE

13.2.11.1Where an employee is called upon to perform duties of a higher post but doesn't possess the necessary qualifications of the same post, he/she shall be paid special duty allowance at the rate of fifteen percent (15%) of the employee's basic pay subject to MD & CEO's approval.

13.2.11.2For the employee to qualify for the allowance, he/she must have worked for a minimum of fourteen (14) days in the case of a shift employee and a minimum of thirty (30) days in the case of regular employees.

13.2.11.3An employee performing duties of a higher post under this provision shall be eligible for travelling privileges, daily subsistence allowance and entertainment allowance applicable for the higher position for the duration being acted for with exception of house allowance and other remunerative allowances.

13.2.11.4Employees shall not be called upon to perform duties of a post that is two grades higher than the employee's substantive grade.

13.2.12TRANSFER ALLOWANCE

13.2.12.1When an employee is transferred from one duty station to another, he/she

will be eligible for payment of transfer allowance at the rate of two (2) months basic salary prior to his/her reporting to the new station.

13.2.12.2In addition, the Employer will facilitate the movement of employee's

household belongings through provision of a vehicle.

13.2.12.3On arrival at the new station, an employee, spouse and children between the ages of four (4) to twenty-five (25) years are entitled to up to three night's hotel accommodation. The three (3) night's accommodation for the children will be paid at half (¥2) the employee's daily subsistence allowance (local) rate. Children living with disability above the age of twenty-five (25) years will be entitled to up to three (3) night's hotel accommodation at ¥2 the employees daily subsistence allowance (local) rate.

13.2.13HOUSE ALLOWANCE

Employees shall receive Housing allowance as per the current House Allowance Rates and an increment of 5% of the current rate for the each of the subsequent years.

The current house allowance will be adjusted each year as below: -

13.2.13.1 Table 9(a); House allowance for Nairobi/Mombasa/Kisumu

13.2.13.2 Other Areas

Table 9(b); House allowance for other areas

Table 10; Transport Allowance

13.2.15NON-DESIGNATED DRIVING ALLOWANCE

The rates applicable per month shall be Kenya Shillings Five Thousand (KES 5,000.00) for all cadre upon prior authorization.

13.2.16AIR TIME & TELEPHONE ALLOWANCE

The Employer will provide airtime to eligible employees who discharge critical support functions and need to be on call at all time as detailed herein below: -

a.Driver to CEO-KES 3,000.00;

b.Driver to Chairman-KES 3,000.00; and

c.Other Employees as may be approved by HR.

13.2.17SUBSCRIPTION FEE TO PROFESSIONAL BODIES

13.2.17.1The Employer shall pay annual subscription fees for all employees who are registered with relevant professional bodies.

13.2.17.2Where an employee belongs to more than one professional body, the Employer will only pay subscription to one. To encourage professional

development, the Employer shall facilitate attendance of professional meetings/ trainings.

13.2.18INSURANCE COVERS

The company shall provide insurance covers to employees to cater for risks including: -

a.Group personal Accident/WIBA Plus;

b.Group Personal Accident Sport;

c.Group Life Assurance;

d.Travel Insurance; and

e.Medical Emergency Evacuation Services.

13.3 OTHER BENEFITS

13.3.5MORTGAGE LOAN

13.3.5.1Eligible employees shall, on application be considered for a mortgage loan under the Employer's Scheme subject to availability of funds as follows;

Table 11; Job Grade and Mortgage Limit 

13.3.5.2 In addition, the Employer will endeavor to negotiate for favorable interest rates with a reputable financial institution.

13.3.6CAR LOAN SCHEME

On application, an employee will be considered for an Employer Guaranteed Bank loan subject to availability of funds as follows:

Table 12; Job Grade and Car Loan Limit

APPENDIX B: SCHEDULE OF PERSONAL PROTECTIVE EQUIPMENT NOPOSITIONSPERSONAL PROTECTIVE EQUIPMENTDURATION OF RE-ISSUE