COLLECTIVE AGREEMENT BETWEEN THE WORKERS’ COMPENSATION FUND CONTROL BOARD AND THE ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS - 2014

This AGREEMENT is made this 1st day of April, 2014 between the Workers’ Compensation Fund Control Board, a body corporate under the provisions of the Workers’ Compensation Act whose offices are situated at the corner of Broadway/Moffat Roads, Ndola (hereinafter referred to as the Board) of the one part and the Zambia Union of Financial Institutions and Allied Workers whose registered offices are in Luangwa House, Cairo Road, Lusaka (hereinafter referred to as the Union) of the other part.

1. PRELIMINARY

This Agreement shall be cited as the Collective agreement.

2. INTERPRETATION

In this Agreement, unless the context otherwise requires and subject to the exceptions as may be hereinafter indicated.

The “Employer” shall mean the Workers’ Compensation Fund Control Board.

The “Union” shall mean the Zambia Union of Financial Institutions and Allied Workers.

“Employees” shall mean all those persons who undertake to render service to the aforesaid Employer of labour and reckoned as such under the provisions of the Industrial and Labour Relations Act.

The “Terms and Conditions of Service” shall mean the terms and conditions contained in this Agreement,

The “Management” shall mean a team of members of staff or representatives of the Board who are entrusted with day to day managerial functions of the Board whether of permanent or temporary nature as the case may be.

The “Commissioner” shall mean the Workers’ Compensation Commissioner of the Board who is appointed under the relevant provisions of the Workers’ Compensation Act.

“Chief Executive Officer” shall mean the Commissioner.

3. WAGES, SALARIES AND CONDITIONS OF SERVICE

3.2 Conditions of Service - Terms of Appointment

(iv) Where an employee’s probationary period has been extended under (ii) above, such extension shall not exceed a period of three (3) months after which, if not confirmed, the employee may have his employment terminated.

Provided that no person shall be appointed as an employee of the Board unless he/she has been examined and declared fit by a registered medical practitioner nominated by the Commissioner.

4. GRADES AND SALARY SCALES

Grades and Salary Scales shall be prescribed by the Board and it shall be competent for the Commissioner to appoint an employee to a particular grade and determine his salary in that grade.

Employees shall be rewarded a one off payment based on individual performance appraisal as determined by the Performance Management System.

4.1 Salary increments other than those negotiated for shall be granted to an employee within the scale applicable to the employee’s post, subject to satisfactory performance. In other words, other salary increments will not be automatic but will be performance driven.

5. OVERTIME

6. REPATRIATION COSTS

(i) An employee who retires on normal or medical grounds, dies or is declared redundant shall be entitled to repatriation benefits which shall include all expenses to cover the costs of transporting the employee, spouse, children and registered dependants aged twenty one (21) years or below and the household effects back to his/her place of recruitment or such other destination within Zambia as the employee may choose.

(ii) The Board shall pay Thirteen Thousand Kwacha (K13,000,00) across the board in lieu of transport.

7. ESTABLISHMENT OF STAFF PENSION AND GROUP LIFE ASSURANCE SCHEMES

The Staff Pension Scheme is administered by Workcom Pension Scheme Trustees but the Group Life Assurance Scheme for the time being is administered by the external insurers on behalf of the Board and whose objectives shall be to provide finance to the Board’s employees who may retire or die within the Board’s service as the case may be.

7.1 Staff Pension Scheme

A bonafide employee who has been admitted to membership under this Scheme shall upon retirement from the Board’s service be entitled to the benefits in accordance with the laid down rules and regulations relating to the Scheme as stipulated by the WORKCOM PENSION TRUSTEES.

Every employee who qualifies under the provisions of the Workcom Pension Scheme shall contribute five percent (5%) of his / her monthly basic salary towards the scheme shall contribute sixteen and half percent (16.5%) of the employee’s basic salary making the total contribution twenty one and half percent (21.5%).

7.2 Staff Group Life Assurance Scheme

Every bonafide employee shall be eligible to the Board’s Group Life Assurance Scheme which shall provide lumpsum benefits based on four and half (4,5) times the employee’s annual salary should such an employee die in the Board’s service.

7.4 Normal Retirement Age

An employee shall retire from the Board's service on attainment of the statutory retirement age of fifty rivet (65) years,

7.5 Retirement on Medical Grounds

(i) An employee may retire on medical grounds upon satisfactory medical evidence that such an employee is incapable, by reason of some infirmity of mind or body, of discharging the duties of his/her office due to such infirmity, and that;

(ii) An employee retired under (i) above, shall be entitled to be paid retirement benefits under these conditions using the formula:-

- three (3) months basic salary for each year served pro- rated;

-three (3) months basic salary ex-gratia but subject to the recovery of monies owing to the Board.

7.6 Early Retirement

Where an employee has applied for Early Retirement and Management has approved the application taking into account Management’s right to approve or disapprove such an application, theBoard shall pay Early Retirement-Benefits under this Clause for an employee who has served a minimum of fifteen (15) years continuous service or who has attained forty (40) years of age.

In this case, Management shall give such an employee one (1) month notice or pay in lieu of. The payment of Early Retirement Benefits shall be subject to recovery of all monies owing to the Board.

Benefits shall be calculated as follows: -

(i) Three (3) months Basic Salary for each year served - pro-rated.

(ii) Three (3) months Basic Salary Ex-gratia.

8. ALLOWANCES

8.1 Travelling on Leave Allowance

A bonafide employee of the Board shall be entitled to Travelling Allowance whilst on vacation leave at the rate of one point eight (1.8) times the monthly basic salary subject to tax.

8.2 Travelling on Leave Time Allowance

8.3 Upset Allowance

Upset Allowance shall be paid to an employee who has been transferred from one station to another at the rate of Eight Thousand Five Hundred Kwacha (K8,500,00) net across the board.

8.4 Overnight Allowance

8.5 Kilometre Allowance

An employee who is granted authority to use a personal vehicle and required to perform Board duties or when on transfer from one station to another, shall be paid Kilometre Allowance at the rate of Three Kwacha (K3.00) per kilometre.

8.6 Lunch Allowance

An employee who is travelling on duty will be paid One Hundred and Seventy Kwacha (K170.00) net if lunch break finds him/her away from the base town.

The Allowance shall be claimed only once both on the outward and return journey across the Board.

8.7 Out of Pocket Allowance

An established employee sponsored by line Board to attend a residential seminar or course of training shall be entitled to Out of Pocket Allowance at the rate of Two Hundred Kwacha (K200.00) net per day subject to a maximum of ten (10) days.

8.8 Acting Allowance

(i) An Acting Allowance/Special Duty Allowance shall be paid by the Board to any Officer required to assume duties in any one month provided that such acting appointment shall be in respect of the period of not less than thirty (30) consecutive days or one (1) calendar month.

(ii) The Acting Allowance shall be the difference between an Officer’s basic salary and the entry point of the higher scale in which the Officer is required to act.

Where an Officer is required to act in a higher grade and the Acting Allowance was found to be less than the value of the notch of a higher grade, then that Officer shall in addition be paid Acting Allowance with reference to the second higher notch.

8.9 Responsibility Allowance

Where an employee is not required to assume full duties of the office in which he/she is sitting-in, such an employee shall be entitled to special duty or keeping office allowance at the rate of ten percent (10%) of the basic salary.

9. CHRISTMAS BONUS

10. HOUSE OWNERSHIP SCHEME

It is hereby recognized and agreed that the Board may grant a loan to an established employee wishing to build or purchase a dwelling house for himself/herself and his/her family for the amount of the building costs or purchase price, subject to limits set by the loan Committee from time to time and availability of funds.

11. LEAVE

12. ACCUMMULATION OF LEAVE

Accumulation of leave shall be subject to a maximum of one hundred and fifty (150) days per annum. Extra days shall be forfeited.

13. SICK LEAVE

13.1 Any employee who is certified by a recognized Medical

Practitioner and registered with the - Medical Council of Zambia,

who shall be designated By the "Board as being execute his/her duties due to sickness or injury shall be granted paid sick leave provided that such sickness or injury was not attributed to the employee’s negligence or misconduct. 

13. 2 Sick Leave Shall Be In Compliance With:-

(i) During the probationary period up to a maximum of one (1) month on full pay and one (1) month on half pay,

13.4 Paid sick leave shall be treated separately and shall not be cumulative.

13.5 Subject to the Provisions of Section 64 (2) of the Employment Act, if absence due to sickness or injury is not certified by a Medical Practitioner as provided under (Clause 13.1), it shall be treated as unpaid leave. For prolonged indisposition, medical certificates shall be produced at such intervals as may be required from time to time.

14. MATERNITY LEAVE

14.1 Breast Feeding

14.2 Medical Compassionate Leave

15. LEAVE WITHOUT PAY

Leave without pay shall not be granted without consent of the Board. For the purpose of this Clause, leave without pay shall arise in circumstances not covered under this Agreement and will not count towards service gratuity or other service benefits

16. STUDY/SPECIAL LEAVE

(a) Study leave will be given to an employee pursuing an approved course of study to enable him/her prepare for examinations and shall be up to fourteen (14) calendar days. Provided that such leave shall not include days of writing examinations.

(b) Special leave of absence from duties may be granted to an employee by the Commissioner, as paid leave in the following circumstances: -

(i) For the purpose of attending to National duties prescribed under any law; or

(ii) For the purpose of attending court as a witness; or

(iii) For the purpose of attending by any member of the Union, any activities of the Union in accordance with and as is stipulated under the Provisions of the Industrial Relations Act.

(iv) For any other purposes as may be approved by the Commissioner.

17. COMPASSIONATE LEAVE

18. TERMINATION OF EMPLOYMENT

(a) The service of any employee on probation may be terminated by either party giving twenty four (24) hours notice in writing.

(b) Except in cases of summary dismissals or discharges, notice of termination of employment for established employees shall be one (1) month or one (1) month's salary in lieu of notice.

Provided that the Commissioner may at his/her discretion at any time permit an employee to resign without giving the required notice in writing and/or accept a shorter period of notice in any particular case.

(c) Notice given by the Commissioner or the employee may not except by mutual consent, include any period of vacation leave.

19. LEAVE ON TERMINATION OF EMPLOYMENT

(a) Where the employee’s services are terminated for any reason, he/she shall be entitled to receive cash payment in lieu of the accumulated paid leave on the last day of his/her service.

(b) Where the employee dies, a cash payment calculated on the basis of his/her accrued leave at that time of the employee’s death shall be paid to such person or persons, being members of the deceased employee’s family.

Provided that any monies due or owing to the Board by the employee in circumstances under this Clause shall be deducted from any such cash payment aforesaid.

20. REDUNDANCY

21. CONVERSION FORMULA TO FIXED TERM CONTRACT OF EMPLOYMENT

22. CONDUCT AND DISCIPLINE

22.1 Code of Discipline and Procedures

It is hereby recognized and agreed that Management shall exercise all the powers and authority as enshrined in the Code of Discipline and Grievance Procedures in dealing with conduct and discipline of employees.

22.2 Appeals Committee

It is hereby recognized and agreed that there will be an Appeals Committee comprising the following: -

(a) Workers’ Compensation Commissioner or his/her representative as Chairperson;

(b) Three (3) Management representatives; and

(c) Three (3) Union representatives.

23. FORMULATION OF POLICY DOCUMENTS

It is hereby recognized and agreed that Management shall engage the Union in the process of development, review and amendment of policy documents that directly affect the welfare of Unionised employees.

24. INTERESTS OF EMPLOYEES LIKELY TO CONFLICT WITH OFFICIAL DUTIES

Where an employee or their spouse holds any pecuniary interest in any property, firm or company which is likely to conflict with his/her official duties, he/she shall disclose such interests to the Commissioner who shall decide whether the employee should resign from

25. HOURS OF WORK

26. PUBLIC HOLIDAYS

It is agreed that public holidays declared by the Government of the Republic of Zambia shall be treated as/holidays with full pay,

27. TRANSFERS

27.1 An employee shall be liable to be transferred by the Commissioner at any time from the post which one occupies to any other post in the Board’s administration provided that the employee shall not suffer any reductions in his/her emoluments.

27.2 Where an employee is transferred by the Commissioner from one Station to another, he/she shall be entitled to Upset Allowance, free transport for himself/herself and his/her family.

28. TRAVELLING AND REMOVAL EXPENSES ON FIRST APPOINTMENT

28.1 The Board shall provide transport or pay an Allowance in respect of travelling and removal expenses on first appointment to the Board.

28.2 An employee who has been paid an Allowance in respect of travelling and removal expenses on first appointment, but is discharged for misconduct or resigns from his appointment before completing one (1) year’s service shall refund to the Board the whole of the Allowance he/she has received. If he/she is discharged or resigns before completing two (2) year’s service, he/she shall refund one third of such Allowance.

Provided that no refund shall be redeemed from an employee who has served the Board for a period of three (3) years continuous service.

29. GRANT FOR EDUCATIONAL AND VOCATIONAL TRAINING

30. SUBSCRIPTION TO APPROPRIATE PROFESSIONAL BODIES

The Board shall pay one hundred percent (100%) subscription fees to one (1) International Professional Body and one (1) Local Professional Body, provided that the employees are at the level of “Full Member” and practicing the profession.

The Board shall refund registration and examination fees to an employee studying approved courses upon successful completion of the course.\

31. MOTOR VEHICLE AND FURNITURE LOAN

The rules for Motor Vehicle and Furniture Loans will be set out by the Loans Committee from time to time.

32. PERSONAL LOAN

An eligible employee shall be entitled to a Personal Loan at the rate of double his/her monthly basic salary once per annum at an interest rate of three and half percent (3.5%) and shall be recovered in twelve (12) months.

33. SALARY ADVANCE

Management may grant a salary advance to an established employee to

be recovered in three (3) monthly installments.

Provided that the employee has no other running advances on the payroll,

34. FUNERAL EXPENSES

35. UNIFORMS

36. MEDICAL FACILITIES

37. EXPENSES ON SPECTACLES

The Board shall refund cost of spectacles upon receiving a medical report from a recognized and certified Medical Practitioner in line with the Medical Policy on cost sharing basis of seventy five percent (75%) Employer and twenty five percent |25%) Employee,

38. MEMBERSHIP TO HEALTH CLUB

All employees in the Unionised Salary scale shall be entitled to membership of a Health Club, The Board shall at its discretion arrange for a Corporate or appropriate membership.

39. LONG SERVICE AWARDS

40. LABOUR DAY AWARDS

The Board shall put up a Labour Day Organising Committee whose composition shall include Union Representation. The Board shall recognize the under listed portfolio for awards during the Labour Day celebrations namely:-

(i) Most Hard Working Employee;

(ii) Most Improved Employee;

(iii) Most Security and Safety Conscious Employee;

(iii) Most Long Serving Employee.

41. EDUCATION ALLOWANCE

42. PERIOD OF AGREEMENT

This Agreement except for Wages/Salaries shall remain in force for a period of two (2) years effective Ist April, 2014, unless:-

(a) Terminated summarily in the event of either party ceasing to be a legal entity; or

(b) Terminated by either party, by giving three (3) months notice in writing to the other to that effect; or

(c) Amended in part following negotiations between parties hereto; or

(d) Either party wishing to vary any of the foregoing terms and Conditions of service shall give not more than one (1) month notice in writing of its intentions and reasons for amending or terminating the Agreement. 

43. SIGNATURE OF THE PARTIES TO THIS AGREEMENT

In witness whereof the parties have set their respective hands this 5th day of August, 2014 at workers' compensation fund control board, Compensation House, Ndola.

For and on behalf of the

WORKERS' COMPENSATION FUND CONTROL BOARD

Dr Elizabeth Lungu - Nkumbula - WORKERS COMPENSATION COMMISSIONER

Justin K. Mushinge - ACTING DIRECTOR - FUND MANAGEMENT

Kasapo Mutoni-Gondwe (Mrs) - HUMAN RESOURCES MANAGER

For and on behalf of the

ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS

Chingati Msiska - GENERAL SECRETARY - ZUFIAW

Chishala Mulenga - BRANCH SECRETARY