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MEMORANDUM OF AGREEMENT BETWEEN KENTAINERS LIMITED (HEREINAFTER REFERRED TO AS THE 'COMPANY') OF THE FIRST PART

AND

KENYA CHEMICAL AND ALLIED WORKERS' UNION (HEREINAFTER REFERRED TO AS THE 'UNION') OF THE SECOND PART

1.Subject Matter

The terms and conditions of employment set out in this Agreement shall be observed by the parties to it, and shall apply to all employees covered by the Recognition Agreement signed between the parties.

2.Working Hours

An employee shall normally be required to work a total of 195 hours exclusive of the meal break, provided that an employee who is required to work in excess of such hours shall be paid for such excess hours at the appropriate rate as provided by Clause 3 of this Agreement. This is equivalent to 45 hours a week on an annualized basis. This remains necessary because of the shift patterns of the company.

3.Overtime Rates

Overtime rates shall be as follows:

For hours worked in excess of the normal number of hours set out in Clause 2 — at one and a half times the normal hourly rate.

For hours worked on employee's normal rest days and Gazetted Public Holidays at twice the normal hourly rate.

4.Gazetted Public Holidays

An employee shall normally be granted leave with full pay on Gazetted Public Holidays, provided that an employee who is required to work on such holidays shall be paid double as provided by Clause 3 above.

5.Employees in Acting Capacity

An employee who is temporarily appointed or promoted to any acting capacity for a period of not less than 14 days, shall receive minimum rate of pay, where such acting capacity carries a higher minimum rate pay than the job in which he/she is normally employed, and shall revert to his/her former rate of pay immediately on reverting to his/her former job.

6.Compassionate Leave and leave of absence.

(a)Any employee desiring to take leave on compassionate grounds shall, by prior arrangement with the employer, be granted such leave up to his earned leave entitlement under paragraph 6, and the leave taken shall be subsequently set off against his annual leave.

(b)An employee may, in addition to the leave provided for in sub-paragraph (a), be granted five days' compassionate leave without pay in any one year.

7. Sick Leave

After the completion of probationary period an employee shall be entitled to sick leave up to maximum of 45 days with full pay and thereafter to sick leave of up to a maximum of 45 days with half pay, subject to the production of a medical certificate of incapacity covering the period of such sick leave claimed signed by a Registered Medical Practitioner in a Government of Local Authority Hospital or Health Centre. The employee must be cleared by a Registered Medical Practitioner before returning to duty.

8. Injury by Accident

This will be dealt with as per the Work injury benefits Act 2007.That means in the case of temporary injury, employees will receive periodical salary equivalent to his/her monthly salary so long as temporary disability continues. However, the payment should not exceed 12 months. After 12 months, the employee should get a doctor's report to either that the employee is fit enough to resume duty or certify that the employee has suffered permanent incapacity in which case the employee will be retired on medical grounds and paid terminal dues on permanent disability.

9. Maternity Leave

(a) A woman employee shall be entitled to 3 months maternity leave with full

pay and shall not forfeit her annual leave in that year.

(b) A female employee who takes maternity leave shall not incur any loss of

privileges during that period.

10. Paternity leave

Our Laws recognizes only one wife. A male employee shall be entitled to two weeks paternity leave when his wife delivers a child. The applicant will provide, for proof purposes, a photo of the wife, National identity, birth notification from the Hospital where the child was born and a marriage certificate and where one is not available provide a letter from the local Administration confirming the marriage. If there are changes nullifying the marriage, the staff should advise the management accordingly.

11. Definition of Employees

It is understood and agreed that the word 'employee' in this Agreement shall cover all employees regardless of sex unless specifically stated otherwise.

12. Probationary period

The first three months of employment shall be treated as probationary period. For the first month probation, any party intending to terminate services shall give 48 hours notice or pay in lieu, and the second and third months, either party shall give notice of 7 days or pay in lieu.

13. Termination of Employment

Except where an employee is summarily dismissed for gross misconduct or other lawful cause as prescribed in the Employment Act 2007, and provided the probationary period has been completed, either party will be required to give notice of termination of service as under:

Less than 7 yearsone month's notice or one month's salary in lieu of notice

7years and aboveTwo months notice or 2 months pay in lieu of notice

14.Meals and Tea

The Company is currently offering a meal and 2 teas per shift of work.

15 . Certificate of Service

(a) Every employee shall be given a certificate of service by his/her employer upon the termination of his/her employment unless such employment has continued for a period of less than four consecutive weeks, and every such certificate shall contain:-

(i) the name of the employer and his postal address

(ii) the name of the employee.

(iii) the date when employment commenced.

(iv) The nature and usual of place of employment.

(v) the date when employment ceased, and

(vi) such other particulars as may be prescribed

(b) Subject to subsection (a) of this section, no employer is bound to give to any employee any testimonial or certificate relating to the character or performance of an employee.

(c) Any employer who willfully or by neglect fails to give an employee a certificate of service in accordance with sub-section (a) of this section or who in a certificate of service includes a statement which he knows to be false shall be guilty of an offence.

16. Warning System

An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal will be given a written warning letter which shall be entered in the employee's employment record and shall remain valid for a period of twelve months from the date of issue. If, within the twelve months period, the employee commits a similar or any other offence, which does not warrant dismissal, he will be further warned in writing in his employment card, and the two warning shall remain valid for a period of 12 months from the date of the second warning.

If, within this twelve months period the employee commits a further offence, which does not warrant dismissal, he/she will be issued with a final letter of warning which will make him/her liable to summary dismissal for any other offence which he/she may commit thereafter. A final letter of warning will remain valid for a period of 12 months from the date of issue. A copy of all warnings will be passed to the shop steward for record with the union. A copy of the final warning shall be sent directly to the General Secretary of the Union.

17. Redundancy

(a) Definition

'Redundancy' means the loss of employment, occupation, job or career by involuntary means through no fault of an employee involving termination of employment at the initiative of the employer where the services of an employee are superfluous, and the practices commonly known as abolition of office, job or occupation and loss of employment due to the Kenyanisation of a employment by a domestic servant.

(b) Alternative Employment

In an effort to avoid redundancy, the Company will endeavor to arrange suitable alternative employment within the company.

This employment may not be of the same grade. If the alternative employment may not acceptable to the employee concerned, he will be classified as redundant, and therefore eligible for the entitlement outlined in clause (f)

(c) Consultation

In the event of redundancy, the company undertakes to hold prior discussions with the union concerning the reasons for and the extent of the intended redundancy.

(d) Selection of Redundant Employees

In deciding which employees shall be declared redundant the Company will assess the relative merits, ability and reliability of the affected employee, but when these factors are equal the discharge will be on the basis of seniority. Membership or non-membership of the union will not be a factor.

(e) Re-engagement

Redundant employees will be given prior consideration for re-engagement by the company should a vacancy arising according to their qualifications.

(f) Entitlement of Redundant Employees

In the event of an employee being declared redundant he shall be entitled to:-

i) the normal notice or pay in lieu of notice as defined in the agreement

ii) payment of wages, overtime and any other remuneration which may be due to him/her

iii) pro rata leave and allowance entitlement in accordance with the agreement

iv) severance pay shall be paid as follows:

b) Less than 6 years-23 days for each completed year of service.

c) 6 years and above-30 days for each completed year of service.

18. Funeral Expenses

These expenses are covered up to a value of Kshs .55,000/= in the Life Assurance Policy.

19. Uniforms/Overalls and Protective Clothing

The company shall issue an employee, who is required to wear uniforms or overalls by nature of his work or in accordance with the provisions of the Factories Act, with two pairs of uniforms or overalls free of charge. Such uniforms or overalls shall be replaced with new pairs every year provided old ones are returned to the company. The employee shall bear responsibility for laundering such uniforms and overalls and shall be given soap specifically for this purpose.

20. Safari Allowance

An employee who is absent from his/her principal area of employment on company's business, shall be granted a safari allowance to cover lodgings, meals and expenses appropriate to the employee's employment with the company. The minimum to be provided to any employee will be Kshs. 1,750/= safari inside Kenya per day.

For safari outside Kenya, this was left at the discretion of management.

21. Leave Traveling Allowance

An employee proceeding on an authorized annual leave will be paid leave travel allowance of Kshs. 3,600 for the duration of this agreement.

Kshs.3,200/-I or the duration of this agreement.

22. Shift Allowance

The Company will pay Kshs.-75/= for every night shift worked by an employee.

23. Retirement/Gratuity Benefits

The retirement age shall remain 60 years.

An employee who retires on age ground, declared medically unfit to perform his/her duties by a registered medical practitioner, dies while in service or is terminated at the initiative of the employer shall be entitled to the following retirement/gratuity benefits:

a) Less than 7 years-25 days for each completed year of service,

b) 7 years and above-30 days for each completed year of service

24. Baggage Allowance

An employee who retires on normal age or on ill health or is declared redundant will be paid Kshs„.14,000/- as baggage allowance.

An employee who is dismissed or has his/her services terminated or resigns will not be entitled to this allowance.

25. Wage increase

Basic minimum rates of pay (excluding housing allowance) of each grade shall be as follows:-

First Year 13% Second year 12%
Grade 4 24,668/= 27,628/=
Grade 3 21,308/= 23,865/=
Grade 2 17,376/= 19,461/=
Grade 1 14,801/= 16,577/=

However, while this remains the minimum increment in each category, the Company has the right to offer differential increments each year with a view to rewarding better than average performance.

26. House allowance

An employee of the Company shall be paid a minimum housing allowance of Kshs 3,600/- per Month or 15% of the basic Salary whichever is more.

27. Casual employees.

This will be applied as per the employment Act 2007.

28. Annual Bonus

The Company shall pay the employee an annual discretionary bonus which will be paid at such a time as may be convenient to the Company and will reflect the performance of the individual.

29. Annual paid leave

a) An employee who has completed 12 months service with the company but with less than 7 years shall be entitled to annual leave of 26 working days.

b) An employee who has completed 7 years or more with the Company shall be entitled to annual leave of 30 working days.

c) In the event of Gazetted Public Holidays falling within the Leave period, such Gazetted Public Holidays shall be added to the leave entitlement.

d) The date of an employee's leave shall normally fall after the completion of every 12 months service from his/her date of employment but may be taken at the mutual agreement between the employer and the employee concerned.

30. Summary Dismissal

This will be dealt with in accordance with Employment Act 2007, which reads as follows:

a) If, without leave or other lawful cause, an employee absents himself from the

place proper and appointed for the performance of his work.

b) If, during working hours, by becoming or being intoxicated an employee renders himself unwilling or incapable properly to perform his work.

c) If, an employee willfully neglects to perform any work which it was his duty to have performed or if he carelessly and improperly performs any work which from its nature it was his duty under his contract to have performed carefully and properly.

(d) If, an employee uses abusive language of behaves in a manner insulting to his employer, or to any person placed in authority over him by his employer.

(e) If an employee knowingly fails, or refuses to obey any lawful and proper command which it was within the scope of his duty to obey, issued by his/her employer.

(f) If, in the lawful exercise of any power of arrest given by or under any written

law, an employee is arrested for a cognizable offence punishable by imprisonment and is not within ten days either released on bail or on bond or otherwise lawfully set at employer's property.

(g) If, an employee commits or on reasonable and sufficient grounds is suspected of having committed any criminal offence against or to the substantial detriment of his/her employer or his/her employer's property.

31. Employees Saving and Cooperative

The Company is committed to the employees ability to save on a long term basis and to this end will promote and enable the employee to access a Cooperative Credit and savings society for the purpose of long term saving and borrowing. All employees earning less than Kshs 8,000 will receive a boost of Kshs 500 and all those earning between Kshs 8,000 and Kshs 10,000 a boost of Kshs 250 to enable them save the mandatory monthly minimum Kshs 1,000 in the SACCO.

32. Employees Welfare

The Company shall support the employees to run an employee Welfare Society and Account. This will enable quick contribution of funds amongst employees during such events as death the employee's nuclear family.

33. Medical Treatment

The company undertakes to pay the cost of such medical treatment and medical expenses in accordance with the provisions prescribed by the laws of Kenya relative to Employment of Persons Medical Treatment Rules.

34. Life Assurance

The Company shall provide the employees with an annual life Assurance cover that is suitable provided the employee meets the conditions stipulated by the insurer.

NB :- Life Assurance clause to continue to be negotiated properly later and once agreed to be registered later.

35.Transportation

The Company is not in a position to offer General transportation to and from the factory to employees. Where employees have worked beyond the shift time of 6.00 pm, fare will be provided based on distance to be traveled.

36. DURATION AND EFFECTIVE DATE OF PAYMENT

This agreement shall remain in force for a period of 2 years as from 1st April 2012.There after the agreement shall continue to be in force until it is amended by mutual agreement between the parties. Provided that the party intending to amend it gives one month's notice in writing setting out in details all the amendments required. The Company is not expected to provide any other further benefit beyond what is stipulated in this agreement within the period of this agreement.

SIGNEDFOR AND ON BEHALF OF THE COMPANY

..........................................................

NIKHIL SHAH

MANAGING DIRECTOR

………………………………………….

Witnessed by

DAVID MUTHAMA

HUMAN RESOURCES MANAGER

SIGNED FOR AND ON BEHALF OF THE UNION

……………………………………………….

WERE DIBO OGUTU - OGW

NATIONAL GENERAL SECRETARY

…………………………………………..

HEZRON OPIYO

DEPUTY NATIONAL GENERAL SECRETARY

…………………………………………..

JAMES O OBURA

AREA SECRETARY

…………………………………………..……………………………………

POLYCAP ARINGO FRED WANYONYI

SHOP STEWARDSHOP STEWARD

WITNSSED BY :-

GEORGE R. AMBUCHE

FEDERATION OF KENYA EMPLOYERS

SIGNED AT NAIROBI THIS ………….. DAY OF ………………………2013

KEN Kentainers Limited - 2012

Start date: → 2012-04-01
End date: → 2014-04-01
Name industry: → Manufacturing
Name industry: → Manufacture of rubber and plastic products
Public/private sector: → In the private sector
Concluded by:
Name company: →  Kentainers Limited
Names trade unions: →  COTU - Kenya Chemical and Allied Workers Union

TRAINING

Training programmes: → No
Apprenticeships: → No
Employer contributes to training fund for employees: → No

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 37 %
Maximum days for paid sickness leave: → 90 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → 
Paid menstruation leave: → No
Pay in case of disability due to work accident: → Yes

WORK AND FAMILY ARRANGEMENTS

Maternity paid leave: → 13 weeks
Maternity paid leave restricted to 100 % of basic wage
Job security after maternity leave: → Yes
Prohibition of discrimination related to maternity: → Yes
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
Facilities for nursing mothers: → No
Employer-provided childcare facilities: → No
Employer-subsidized childcare facilities: → No
Monetary tuition/subsidy for children's education: → No
Paid leave per year in case of caring for relatives: → 5 days
Paternity paid leave: → 14 days

EMPLOYMENT CONTRACTS

Trial period duration: → 90 days
Part-time workers excluded from any provision: → 
Provisions about temporary workers: → 
Apprentices excluded from any provision: → 
Minijobs/student jobs excluded from any provision: → 

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working hours per week: → 45.0
Working hours per week: → 195.0
Paid annual leave: → 26.0 days
Paid annual leave: → 4.0 weeks
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Wages specified according to skill level: → 0
Wages specified according to job title: → 0
Provision that minimum wages set by the government have to be respected: → No
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 12.0 %

Once only extra payment

Once only extra payment due to company performance: → Yes

Premium for evening or night work

Premium for evening or night work: → KES 75.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 3200.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
 
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