MEMORANDUM OF COLLECTIVE AGREEMENT BETWEEN THE LOCAL AUTHORITIES SUPERANNUATION FUND AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS

2019 - 2020

1.0 PRELIMINARY

This Collective Agreement is made this ........................... day of ........................... 2019
between the Local Authorities Superannuation Fund (hereinafter called the “Fund”) of the one part and the Zambia Union of Financial Institutions and Allied Workers in accordance with the Recognition Agreement made on the 9th day of June 1989 (hereinafter called the “Union”) of the other part covering Conditions of Service as stipulated in the Recognition Agreement witnessed as follows:

1.1 Duration of Agreement

This Collective Agreement shall be valid for a period of not less than twenty-four months commencing on 1st January 2019 provided that: -

1. Within twelve months of the date of the coming into effect of this Collective Agreement either party could convene a meeting to review salaries according to prevailing economic conditions and the financial performance of the Fund during the period;
   
2. At any time after nine months of the commencement of this Agreement, either party may give notice in writing of its intention for this Agreement to continue in force for a further period as shall be agreed by the parties, or of its intention to alter any clause or stipulation;
   
3. Pending the execution of a new agreement, the present Agreement shall continue in force provided that in respect of salaries the effective date shall be the date mutually agreed by the parties;
   
4. The term of this Agreement shall be subject to any relative legislation enacted before or during the period of the Agreement and in particular shall be subject to the Ministry of Labour and Social Security;
   
5. This Agreement shall be valid so long as the Recognition Agreement between Management and the Union remains in force;
   
6. It is agreed that if either party considers that any part of this Agreement shall be amended or altered in the mutual interest of both parties and that clearly valid reasons are made out, the following procedure shall be undertaken: -
   
   1. The Union or the Management shall indicate by letter its intention to discuss the amendment or alteration of this Agreement;
      
   2. the Bargaining Unit shall not consider the letter mentioned in clause (i) above unless such letter shall be accompanied by detailed written information or evidence or any other communication necessary to validate the intention to change or amend this Agreement;
      
   3. The party requesting the amendment or alteration of this Agreement shall allow the other party three weeks in which to consider the request and the Bargaining Unit shall at the expiration of this period but not longer than four weeks after the date of receipt of the said letter agree to meet to discuss the change. .
      

1.2 Interpretations

In this agreement, unless the context otherwise requires, the singular shall include the plural and the masculine the feminine and the following words and expressions shall have the following meanings:

“Salary” means the basic pay exclusive of all allowances

“Child” means offspring, legally adopted child or stepchild under the age of 21 years or if over 21 years the child should be undergoing education at a recognised institution but up to the age of 25 years”

“Spouse” means wife or husband of an employee and only one such spouse shall be nominated and recognized at one time.

“Eligible employee” means Unionised employee of the Local Authorities Superannuation Fund

“Management” means management of the Local Authorities Superannuation Fund

“Leave year” means calendar year

“Registered dependant” means the spouse of an employee, plus the biological children, step children or legally adopted children of the employee below the age of 21 or up to the age of 25 if undergoing full time formal education.

“Union” means the Zambia Union of Financial Institutions and Allied Workers (ZUFIAW)

2.0 TERMS OF APPOINTMENT

2.1 Probationary Period

Recruitment of staff shall be in conformity with the Local Authorities Superannuation Fund Recruitment and Selection Policy and Procedures. The recruitment of staff shall be done by management in conformity with the Recruitment and Selection policy.

1. The Managing Director or any officer of the Fund duly exercising the authority of the Managing Director shall make all appointments.
   
2. All appointments will begin with six (6) months probation after which the employee may be confirmed in writing in the permanent and pensionable service of the Fund;
   
3. The probation period may be reduced or extended at the discretion of the Managing Director or the officer of the Fund duly exercising the authority of the Managing Director;
   
4. The employment shall be deemed to have commenced on the date, which the employee first reports for duty following receipt of a letter of appointment on permanent and pensionable service and signed by an authorised officer of the Fund;
   
5. If the employee is not confirmed at the expiry of the probationary period; he/she shall be informed in writing;
   
6. During the probationary period, either party giving one day’s notice to the other may terminate employment.
   

2.2 Medical Examinations

No person shall be appointed or confirmed as an established employee of the Fund unless he/she has been examined and declared fit for duty by a Government medical practitioner or any Registered Medical Practitioner approved by the Fund. The cost of such an examination shall be borne by the Fund.

2.3 Traveling and Removal Expenses on first Appointment

1. Payable for the movement of staff and belongings (by any means except by air) as a result of appointment within six months or not later than one month after confirmation.
   
2. A taxable settling-in allowance of K4,000.00 shall be paid for all categories of staff upon confirmation.
   
3. If an employee has received such an allowance and is discharged or resign from his appointment before completing one year’s service, he shall return to the Fund the whole of the allowance he/she has received. If he/she is discharged or resigns after one year but before completion of two years’ service he shall refund two thirds of such allowance and if he is discharged or resigns after two years’ service, he/she shall refund one third of such allowance.
   

2.4 Hours of Work

The normal hours of work shall be eight (8) hours each day broken down as follows: -

1. From 07:00 hours to 12:00 hours) for Office Assistants and General From 13:00 hours to 16:00 hours) Workers;
   
2. From 08:00 hours to 13:00 hours) From 14:00 hours to 17:00 hours) for other Officers
   
3. The above working hours may be varied at the discretion of Management.
   

2.5 Public Holidays

Public Holidays declared by the Government of the Republic of Zambia shall be holidays with pay. : -

2.6 Overtime

1. Management shall ask employees to work overtime where necessary in order to meet particular conditions obtaining any time and employees shall be required to co-operate provided reasonable notice has been given to employees except in cases of emergency;
   
2. All hours worked by an employee in excess of the normal hours per week shall be regarded as overtime;
   
3. The overtime rate shall be one’s basic salary multiplied by the hours worked, divided by the standard actual working hours per month. (176 hours)
   

3.0 MANAGEMENT AND EMPLOYEE OBLIGATIONS

3.1 The Fund has the sole responsibility to conduct its business and manage its operations in such a manner, as it shall see fit. Accordingly, Management shall have the right at its sole discretion to:

3.1.1 Set policy, manage its business, conduct operations, which shall include determining working days and shift patterns, time, methods and manner of work, allocation of work and number of employees required in any division or department;

3.1.2 Determine that work is done in accordance with operational requirements, to establish the methods, speed and quality of work to be performed;

3.1.3 To control and regulate the use of all equipment and property of the Fund;

3.1.4 To select, develop and where it deems appropriate, to promote employees to any positions within the Fund and transfer them to any appropriate departments;

3.1.5 To ensure discipline and effective disciplinary measures within the Local Authorities Superannuation Fund Staff Disciplinary Code and Procedures.

3.2 The employee shall at all times:

3.2.1 Perform conscientiously and to the best of his ability, any work that the Fund may require him to perform;

3.2.2 Attend work as scheduled;

3.2.3 Obey and comply with all lawful orders given by the Fund;

3.2.4 Observe all rules, regulations and arrangements of the Fund in force for the management of the Fund’s property or for the maintenance of health, safety and welfare and good conduct of the employees;

3.2.5 Not to engage in any other employment during or outside normal working hours without the prior express consent of the Fund;

3.2.6 Not, either during his employment, except in the discharge of his duties, or after termination of his employment, divulge any information of knowledge, which he may acquire during his employment concerning the affairs or property of the Fund or pensioners. To this effect, the employee will be required to sign the Confidentiality Undertaking and Restrictive Covenant on taking up appointment or at the commencement of this agreement for those already in employment;

3.2.7 Assist as required, in the training and development of fellow employees;

3.2.8 Be firm, but fair and courteous, in their dealings with clients of the Fund; treating them with respect at all times.

4.0 REMUNERATION

4.1 Salary

1. Salaries will be negotiated for each year and implemented from the 1st January of each year. Within each pay grade there is an entry point and twenty-five incremental steps. The recruitment salary for a new employee may be above the entry point depending on qualifications and experience, but in no case will it be above the second increment point. Further progression within a pay grade will be on merit, based on an assessment confirming exceeding or meeting performance objectives, which will be determined through an annual appraisal.
   
2. The present basic salary shall be increased by 5% across the board with effect from 1st January 2019. In addition, the effective date for notch increments for eligible employees shall be 1st January every year.
   
3. Grades and salary scales shall be prescribed by the Managing Director and it shall be competent for him to appoint an employee to a particular grade and determine his/her salary in accordance with the prescribed grades and salary scales;
   
4. The Fund’s official pay day shall be the 15th day of each month or on the last working day before the 15th if the 15th falls on a non-working day.
   
5. The attached salary scale schedule shall reflect the annual basic salaries for each grade in the Fund’s organization structure.
   

4.2 Notch Award

Eligible employees shall be awarded annual notch increment on merit in the first month of the year following the implementation of a pay related Performance Management System. The award shall be based on the results of an annual performance appraisal exercise.

5.0 PERFORMANCE APPRAISAL

Every employee will be appraised on an annual basis. The appraisal will be undertaken by the immediate Supervisor in the middle and at the end of the appraisal period, and will be discussed with the employee whose performance is being appraised. The employee will be required to sign the appraisal form to show that he has read the appraisal and that it has been discussed with him.

Performance appraisal will be reviewed in all cases by Senior Officers and approved by each Head of Department or Manager. The confirmation of the appraisal shall be carried out by the Performance Review Committee.

Salary increments, other than during general reviews will depend on the performance of the employee and will not be awarded where the employee does not meet his performance objectives.

6.0 PERFORMANCE BONUS

Annual taxable bonus may be paid on the basis of performance appraisal carried out under Clause 5.0 above to an individual who meets and/or exceeds their performance objectives and the Fund meeting or exceeding predetermined targets in any financial year. The quantum of the bonus shall be determined by Management from time to time.

In additional, special ad hoc taxable awards may be paid on the authority of the Managing Director where an employee exceeds his performance objectives or demonstrates a level of vigilance beyond the normal requirements of their job in averting a significant loss to the Fund.

7.0 ALLOWANCES

7.1 Transport Allowance

Transport allowance equivalent to 10% of monthly basic salary shall be paid to each employee per month.

7.2 Standard Education Allowance

An eligible employee shall be paid a standard education allowance two (2) weeks before the close of schools using Government school calendar at the following rates:

7.3 Outside Station Allowance

An established employee who is required to work outside Lusaka station (radius of 35 km) beyond lunch hour shall be eligible to receive an allowance of KI 00.00

7.4 Subsistence Allowance

An employee who is required to travel on duty shall be entitled to a subsistence allowance of K 750.00 per night.

7.5 Out of Pocket Allowance

An Out-of-Pocket allowance equivalent to half of subsistence shall be paid to employees as follows:

1. For attendance of meetings, workshops and seminars which are held outside the boundaries of Lusaka District.
   
2. To staff undergoing full time Fund sponsored training of less than 21 days within Zambia where board and lodging is provided.
   
3. To employees attending evening functions sponsored by the Fund
   
4. To Union Branch Officials attending conferences and seminars or workshops organised by the National Office outside the boundaries of Lusaka District.
   
5. No allowance shall be. paid for official meetings held in other institutions within Lusaka or in the Fund boardroom during work hours.

7.6 Acting Allowance

1. An employeq required to perform temporarily a job in a higher grade will receive an acting .allowance, which will be equivalent to 25% of the acting employee’s monthly salary or the actual difference between the acting employee’s basic salary and the salary of the incumbent whichever is higher. The allowance will only be paid for acting periods of a minimum of twenty one (21) working days.
   
2. The maximum period of acting in a vacant position will normally be six months before confirmation or reversion to the substantive grade. However, in cases where the acting is mitigated by such causes as training or any absence of a temporary nature whose duration is six months or more, Management shall inform the employee in the grade in writing about the status to forestall any misunderstanding.
   
3. All acting appointments shall be communicated in writing specifying the position, the duration and other salient details affecting such appointments;
   

7.7 Transport After Working Hours (Beyond 18:00 hours)

Management will endeavour to provide transport to employees requested to work beyond working hours i.e. beyond 18:00 hours. However, where physical transport is not provided, an allowance of K140.00 shall be paid to affected employees.

7.8 Mid-Month Pay

An employee shall be entitled to a Mid-month pay of 30% of Net Pay.

7.9 Fuel Provisions

An officer who is requested to use his personal vehicle exclusively to perform Fund duties shall be provided with fuel as shall be determined by the Managing Director and in line with the Transport Policy and Procedures. Fuel requisitions shall be used to draw fuel.

7.10 Payment of Taxes

Fund employees will pay all personal taxes in respect of all earnings as provided in the laws of the Government of Zambia.

8.0 MEDICAL PROVISIONS

8.1 Contributory Medical Scheme

There will be a Contributory Medical Insurance Scheme set up with suitable medical Institution, detail of which shall be provided by Management from time to time.

Employees will be required to contribute 2.5% of their monthly basic salary, which shall be deducted through payroll towards the Contributory Medical Insurance Scheme. In patient treatment will be covered under the same scheme;

8.2 Access of Medical Care at Government Hospitals

The Fund shall pay upfront for medical costs for employees who need to access medical services at the University Teaching and Levy Mwanawasa Hospitals. In the event that an employee meets the costs upfront, the Fund shall refund such expenses upon presentation of original receipts. For registered dependants, the Fund shall not pay upfront but will only refund costs incurred at the two hospitals on referral basis.

8.3 Cost of Artificial Limbs/Aids for Dependants

The Fund shall meet 50% of the cost of artificial limbs, eye and hearing aids for registered dependants. The 50% to be borne by the employee shall be recovered in installments to be determined administratively. 

9.0 HOUSING

Every employee of the Fund shall be responsible for providing his/her own accommodation.

10.0 LEAVE

10.1 Leave Entitlement

Employees shall accrue leave days at the rate of 3 days per calendar month. Leave may be accumulated up to a maximum of 90 days for each employee.

10.2 Voluntary Leave Commutation

1. An employee proceeding on not less than 21 days leave may commute for cash any number of days provided a balance of five (5) leave days is maintained. Employees may be permitted to commute accrued leave days for cash on compassionate grounds without proceeding on leave but this shall be limited to four (4) times only in every 12 month period.
   
2. Leave which has been commuted for cash shall not be converted again
   into leave at a later date.
   

10.3 Annual Leave

1. Every established employee shall take annual leave of a minimum of twenty-one (21) working days in every twelve months and a minimum of 5 days shall be maintained as balance.
   
2. An employee recalled for duty during the course of his vacation leave shall be entitled to accumulate or commute for cash, any remaining portion of his leave.
   
3. Sundays, Saturdays and holidays falling within any period of vacation leave shall not be counted as days of leave.
   
4. An employee may not be granted leave for a continuous period longer than 36 days.
   

10.4 Travelling on Leave

All established employees who shall be granted and proceed on annual leave will qualify for travelling benefits while on Annual leave as follows:

1. Holiday Allowance
   Holiday allowance at the rate of one month basic salary shall be paid to an established employee once in every twelve months when going on leave of not less than 21 days.
   
2. Transport Allowance
   Transport allowance at the rate of one and three quarters (1&3/4) monthly salary shall be paid to cover transport and baggage costs.
   

10.5 Application for Leave

1. Application for all types of leave shall be made on the appropriate form to the head of department and in the case of annual leave at least thirty days notice prior to commencement of leave shall be given to allow arrangements for relief staff.
   
2. The date on which leave may be granted and the period of such leave shall be subject to the convenience of the Fund. However, the Fund shall endeavour to ensure that employees go on leave once in every one year.
   

10.6 Sick Leave

An employee who is confirmed in his appointment may be granted sick leave because of ill health, injury, and dental treatment. The limits for paid sick leave shall be as follows: -

1. The first 90 calendar days on full pay and half pay for the subsequent 90 calendar days subject to the production of a medical certificate signed by a government approved Medical Board.
   Payment of salary in excess of 180 days shall be at the discretion of Management and thereafter, the review of the Medical Board will determine his/her suitability for continued employment.
   
2. However, recommendations from registered traditional healer will be recognised as a certificate of absence provided there is a letter from a doctor at a government hospital/medical Institution contracted by the Fund stating that the employee attended treatment at the hospital/clinic and that the nature of his/her illness could not be cured.
   
3. The employer reserves the right to have an employee examined by a government registered medical practitioner.
   
4. A Registered Medical Practitioner or Dental Practitioner may grant sick leave within the above entitlement to an employee on production of a certificate. The certificate should confirm that the employee is unfit to discharge his duties and also specify the period of leave applied for and necessary for the recovery of the employee’s health.
   
5. An employee, who has exhausted his sick leave provisions, may be
   granted paid annual leave from that due to him in lieu of unpaid sick leave. However, when such sick leave and annual leave is exhausted the employee may at the discretion of the Fund be medically discharged/retired immediately or remain on unpaid leave of absence for a further period not exceeding 30 calendar days and then, be medically discharged if still not certified fit for work by a medical practitioner.
   
6. All paid sick leave has to be supported with a leave application form, which has to be submitted to the Fund within two working days of the employee’s return to work. The period of sick leave shall not affect any other leave the employee is entitled to.
   

10.7 Leave without Pay

Leave without pay will not be granted without the consent of the Managing Director. Such leave will not accrue vacation leave, and will not count towards service gratuity or other benefits.

10.8 Special Leave

Special Leave of absence on pay may be granted to an employee on such terms and conditions as the Managing Director may determine in each case in the following circumstances: -

1. For the purpose of sitting as a candidate for an examination or;
   
2. For the purpose of undergoing compulsory military training prescribed under any law, or;
   
3. For the purpose of attending court as a witness or;
   
4. An employee shall be granted leave for the purpose of nursing his/her sick spouse or child provided that he/she produces documentary recommendation from an approved medical practitioner who will recommend his/her presence and stating the number of days so required;
   
5. For any legitimate purpose approved by the Managing Director;
   

10.9 Maternity Leave

1. An established ferrtale employee who has been in the service of the Fund for at least two years may be granted paid maternity leave if she so wishes, for a maximum of three months at intervals of two years beginning from the date of engagement or from the day following the last day of the previous maternity leave.
   
2. The total period of absence will not exceed ninety (90) calendar days on full pay against a medical certificate from a Registered Medical Practitioner confirming the pregnancy. This leave is exclusive of any other leave to which the employee is entitled and will be taken not more than forty five (45) calendar days before the expected date of delivery. Once the maternity leave is exhausted, an employee may take all or part of the accrued leave days due;
   
3. A female employee may be granted thirty (30) calendar days of unpaid leave in additional to the provisions of (ii) above upon application.
   
4. If the employee upon her return to work, is found to be medically unfit to resume her duties she will be treated in accordance with the rules governing sickness;
   
5. On completion of maternity leave the employee will return to her substantive position;
   
6. Where an employee fails to qualify for paid maternity leave by virtue of not meeting the criteria defined in clause 10.9 (i) and (ii) above, the Fund, may at its discretion, permit the employee to take 90 calendar days unpaid leave, or a combination of unpaid leave and annual leave entitlement accrued up to a maximum of 90 calendar days.
   
7. The Fund shall allow female employees who are breastfeeding time off to breastfeed the child/children who are under the age of 6 months. Breastfeeding time shall be from 11:30 hrs to 13:00 hrs
   

10.10 Paternity Leave

Every male employee whose registered spouse has just delivered shall be entitled to five (5) working days paternity leave.

10.11 Statutory Absence

Every female employee shall be granted one day’s leave in a month for which she shall not give explanation for the leave.

10.12 Compassionate Leave

1. Compassionate leave shall be granted as follows:
   
   1. death or serious illness of spouse - 12 working days
      
   2. death or serious illness of biological parent - 8 working days
      
   3. death or serious illness of child - 6 working days
      
   4. death of full biological brother or sister - 5 working days
      
2. Where such leave is sought for any other reason other than the above, the Managing Director should grant the leave using his discretion and the reasonableness of the circumstances.
   
3. Compassionate leave for the purpose of nursing the employee’s sick spouse, child or blood parent shall be granted on production of written recommendation from the Medical Institution contracted by the Fund or a Government approved Medical Practitioner registered with the Medical Council of Zambia, stating the need for the employee’s absence;
   
4. Written recommendation from registered traditional healers will only be accepted on written evidence that practising modern medical doctors have failed to successfully treat the patient;
   
5. The total number of days to be granted as compassionate leave for the purpose of nursing the employee’s sick spouse, child or blood parent shall not exceed 30 working days in any period of 12 months.
   

10.13 Study Leave

Study leave may be granted at Management’s discretion in accordance with the provisions in the Staff Training and Development Policy and Procedures as amended from time-to-time. However, where there are conflicts in policies, Management and Union will harmonise them by picking provisions that best serve the interest of both employees and the Fund.

10.14 Leave for Union Matters

An employee engaging in direct negotiations between the two parties shall be granted paid leave for the period he/she shall be away from duties. The Fund shall consider granting leave of absence to any member of the Union for the purpose of attending any meeting called under the provision of the constitution of the Union.

10.15 Leave Payment on Termination of Employment

On termination of employment for any reason an employee shall receive pay in lieu of leave calculated on pro-rata basis.

11.0 STAFF LOANS AND ADVANCES

Loan facilities shall be provided to confirmed employees and the ability to service the loan (other than reasons related to discipline) shall be the determining factor.

11.1 Motor Vehicle/Cycle and Bicycle Loan

1. An established employee may with the approval of the Managing Director be granted a loan equivalent to the full purchase price of the motor vehicle/cycle or six times the employee’s annual salary whichever is less provided the loanee is in possession of a valid driving licence;
   
2. An employee granted a loan to purchase a motor vehicle/cycle will be required to register the Local Authorities Superannuation Fund as the absolute owner of the vehicle;
   
3. A loan to an employee for a motor vehicle/cycle approved by the Managing Director shall bear interest at the rate of 4 percent interest per annum and applicable deductions in respect of principal and interest will be effected every month;
   
4. An employee may, with the approval of the Managing Director be granted a loan not exceeding the actual cost of the purchase of a bicycle if the Managing Director is satisfied that the possession of the bicycle is essential for the actual performance of the employee’s duties, or to provide him with a means of transport from home to office;
   
5. Motor vehicles/cycles, which are the subject of loan approved by the Board, must in all cases be purchased outright and the officer concerned must find balance of any purchase price not advanced by the Board without recourse to borrowing from the Fund. The Managing Director must be satisfied in regard to this condition before the amount of any approved loan is paid to an employee and any officer who willfully and knowingly misleads the Managing Director and obtains a motor vehicle/cycle in a contravention of this condition will be deemed guilty of misconduct;
   
6. An employee with a car loan shall be free to dispose off the car and redeem the car loan with consent of Management;
   
7. The repayment of the car loan shall only be allowed after recovery of 50% of the loan through payroll deductions.
   

11.2 Furniture Loan

1. An established employee may with the approval of the Managing Director be granted a loan to purchase basic items of furniture, provided that any such loan does not exceed 100% of his annual salary and shall be repayable in 60 months at 4 percent interest per annum;
   
2. The scale of basic household goods for which a loan may be granted is as follows: -
   
   1. Bedroom
      Bed/mattress, wardrobe, chest of drawer, dressing table/stool and a headboard.
      
   2. Living Room
      Three piece lounge suite and armchairs,
      
   3. Dinning Room
      Dinning suite, sideboard and coffee table;
      
   4. Kitchen
      Kitchen suite,
      

11.3 Domestic Loan

Domestic loan shall be 100% of annual salary and recoverable in 60 months. This loan shall comprise of refrigerator, stove, radio and television

11.4 Staff Housing Loan

1. The Fund has a scheme for grant of staff housing loans to members of the Fund to build or buy dwelling houses for their personal occupation;
   
2. The Managing Director may in exceptional circumstances advance monies to an employee to purchase or build a dwelling house and such advances shall be reported to the Board for ratification;
   
3. The Board will entertain application for loans when property is situated in the residential area of Lusaka or any city or town approved by the Board in this behalf. The terms and conditions of loans will be the same as for loans granted to local authorities for relending to their permanent employees who are members of the Fund. The entitlement for the time being shall not exceed 10 times employee’s annual salary at 6% interest per annum;
   
4. Loan repayments shall commence in the first month following the second anniversary of the first release of the money to the employee for building a house but for the purchase of an already existing dwelling house deductions will be immediate, and any employee accommodated by the Board shall forthwith vacate the house;
   
5. Administration of staff loans will be in accordance with the Staff Housing Scheme Policy and Procedures.
   

11.5 Education Loan

1. The Fund may assist an employee who wishes to undertake studies relevant to his work with an education loan not exceeding the full costs of tuition, relevant text books and materials and any other related costs; 
   
2. Employees who pass necessary examinations or completes the course of study for which the loan was obtained within the laid down time limit shall be refunded in full the amount of loan obtained from the Fund
   
3. Leave and other provisions for the purpose of education and vocation training and professional training shall be granted in accordance with the Staff Training and Development Policy and Procedures.
   

11.6 Personal Loan

1. An established employee may with the approval of the Managing Director be granted a personal loan, which shall not exceed 100% of annual salary repayable in 48 months at 4% interest per annum.
   
2. An employee may be allowed to obtain an additional personal loan in extenuating circumstance provided he/she is eligible to pay off the previous loan.
   

11.7 Loan Repayment Period

The maximum loan repayments will be as follows: -

11.8 Interest on Loans

Interest on staff loans shall be charged on the reducing capital amount at the rate of 4%.

11.9 Salary Advance

Management may grant salary advances to employees in extenuating circumstances. The advance shall be interest free and up to a maximum of one month’s salary payable over a maximum period of three months. The salary advance shall be granted only when any previous advances have been fully paid except in very special circumstances. The ability to service the advance shall also be a determining factor for granting advances.

Total deductions for advances, loans and statutory deductions shall not exceed 70% of gross monthly salary and allowances.

12.0 STAFF SCHEMES

12.1 Superannuation Fund Staff Pension Scheme

Every employee who qualifies under the provisions of the Local Authorities Superannuation Fund Act Cap. 284 will continue to be a member of the Local Authorities Superannuation Fund Pension Scheme. An employee shall contribute ten per cent (10%) of his/her monthly basic salary toward the scheme and the Fund shall contribute twenty-three per cent (23%) of the employee’s monthly basic salary making a total contribution of thirty-three per cent (33%) every month. Statements on contributions status shall be provided to members annually.

In accordance with the statutory regulations and the NAPSA Act employees who joined the Fund after 1st February 2000 are members of the National Pension scheme Authority (NAPSA). Contributions to the scheme shall be in accordance with the NAPSA Act as amended from time to time.

12.2 Staff Group Life Assurance Scheme

Every established employee, and every employee serving on contract terms of service shall be eligible for the Fund’s Group Life Assurance Scheme, which will provide a lump- sum benefits equal to three years salary should he/she die in the Fund’s service.

12.3 Workers’ Compensation Fund Control Board (WCFCB)

The Fund shall retain the Workers’ Compensation Fund Control Board (WCFCB) as a scheme to cover all employees including the Unionised employees against permanent injuries sustained in the course of performing his duties. The Compensation shall be as prescribed by the WCFCB Act.

13.0 BUSINESS TRAVEL AND SUBSISTENCE ALLOWANCE OUTSIDE ZAMBIA

Business travel and Subsistence allowance for an eligible employee traveling outside Zambia will be paid in accordance with the Cabinet circular rates.

14.0 STAFF UNIFORM AND PROTECTIVE CLOTHING

1. Artisans and General Workers shall be provided with work suits, protective shoes, dust coats and raincoats which will be replaced whenever they are worn out or at the expiration of one year whichever is the latter;
   
2. Office Assistants shall be provided with two appropriate uniforms, a jersey, raincoat and two pairs of shoes each which shall be replaced whenever they are worn out or at the expiration of one year whichever is the latter;
   
3. Drivers shall be provided with two appropriate uniforms, overalls, raincoat, two pairs of shoes and a jersey each which shall be replaced whenever they are worn out or at the expiration of one year whichever is the latter;
   
4. Staff in Contributions and Benefits and Finance shall be provided with dust coats while staff in IT shall be provided with work suits;
   
5. All these uniforms shall be the property of the Fund. A Committee comprising of Management and Union Branch Executive members shall determine the type and sources of supply for all kinds of uniform.
   

15.0 FUNERAL GRANT AND EXPENSE

15.1 Death of employee

Every establishment employee shall be entitled on his/her death to:

• Casket
  
• Funeral service facility (burial site, mortuary fees, undertakers fees, preparation of deceased body)
  
• Firewood
  
• Transport
  
• Wreaths
  
• K5,500.00 cash grant
  
• 1/2 the cost of transporting the body by road where the family opts to bury outside Lusaka
  

Where the Fund provides accommodation, the family of the deceased employee shall be allowed to remain in the Fund house for such period as shall be determined by Management.

15.2 Death of spouse, child and biological parent.

Death of a spouse, or child below the age of twenty one (21)

• standard coffin
  
• K4,500.00 cash grant
  
• transport and
  
• firewood.
  

Death of biological parent

• K 3,000.00 cash grant only
  

If the spouse or child dies outside Lusaka and the employee decides to hold the funeral and burial outside Lusaka, a lumpsum grant of K750.00 shall be paid in addition to the normal cash grant.

16.0 RETIREMENT

16.1 Normal Retirement

1. An employee shall retire on the last day of the month on which he reaches the pensionable age as prescribed by the LASF (Amendment) Act No. 8 of 2015 and NAPSA (Amendment) Act No. 7 of 2015.
   
2. An employee due for retirement will be notified to that effect at least six months in advance.
   

16.2 Early Retirement

1. An employee shall retire at the age of fifty-five (55) provided the employee informs the Fund upon attaining the age of 54 years of their intention to retire and employers approves.
   
2. A notice of retirement shall be written by the Fund before the employee retires.
   

16.3 Late Retirement

1. An employee shall retire at the age of sixty-five (65) provided the Fund grants the employee permission to continue working upon attaining the age of 59 years.
   
2. A notice of retirement shall be written by the Fund before the employee retires
   

16.4 Terminal Benefits

The Fund shall operate a terminal gratuity scheme, which shall provide the following benefits at retirement:

17.0 RETIREMENT ON MEDICAL GROUNDS

An employee may be retired on medical grounds where the Fund receives satisfactory medical evidence that the employee is incapable by reasons of some infirmity of mind or body of discharging the duties of his office and that such an infirmity is likely to be of long duration. An employee leaving service on medical grounds shall be entitled to the following benefits:

1. Payment of retirement benefits on medical grounds shall be as stipulated below;
   
   

   SERVICE PERIOD	BENEFITS
   Up to 5 years	2 years gross pay
   above 5 years to 10 years	4 years gross pay
   above 10 years to 15 years	5 years gross pay
   above 15 years to 20 years	6 years gross pay
   above 20. years to 25 years	7 years gross pay
   above 25 years	8 years gross pay

   
   
2. Repatriation benefits as stipulated below.

18.0 REPATRIATION BENEFITS

Management shall provide physical transport to any destination within Zambia for an established employee on normal retirement, medical discharge or retrenchment, and to spouses of deceased employees. However if an employee so wishes he/she shall be paid a repatriation package of K6,000.00.

19.0 VOLUNTARY EARLY SEPARATION SCHEME (VESS)

An eligible employee wishing to access the Local Authorities Superannuation Fund Voluntary Early Separation Scheme (Local Authorities Superannuation Fund VESS) may apply for an early separation provided that he is not more than 50 years old at the time of application and has been in service continuously for a period of at least ten (10) years or as set out in the VESS Policy. The benefits payable to the employee by the Fund shall be as stipulated in the Local Authorities Superannuation Fund Voluntary Early Separation Scheme (Local Authorities Superannuation Fund VESS). .

20.0 RESIGNATION AND DISCHARGE

Management, giving three months notice to the employee or the employee giving one month’s notice to the Fund, may terminate employmerit. However, the Fund may terminate employment without giving notice in which case the Fund will pay the employee three month’s salary in lieu of notice. In the case of the employee terminating employment without notice, the employee shall be liable to pay the Fund a sum equal to one month’s salary.

The separation dues for an employee who resigns from employment shall be as follows:

1. Cash in lieu of accrued leave days
   
2. Salary for the period worked in the month of resignation
   

Discharge

1. The Managing Director may: -
   
   1. At any time dispense with the services of an employee on probation by giving him notice of not less than one month in writing or one month’s salary in lieu of notice;
      
   2. Summarily exercise all or any of the powers conferred upon the Managing Director in relation to an established employee;
      
2. The Managing Director may dispense with the services of an employee in scales Sup 5 and below on the following grounds: -
   
   1. If he/she becomes redundant owing to any reduction in or re-organisation of staff;
      
   2. If his/her removal will facilitate improvements in the section to which he/she is posted; or
      
   3. If he/she is incapable by reason of some disease, disablement or infirmity of mind or body, after sick leave granted in accordance with Regulation 8(b), of performing his/her work in an efficient and competent manner, or;
      
   4. If he/she fails to perform his or her work in an efficient and competent manner;
      
3. Any employee whose services are dispensed with by the Managing Director in accordance with paragraph (b) above may appeal in writing to the Board which shall after consideration, convey to the employee its decision- in writing, such decision being final and binding.
   The separation dues for an employee who is discharged from employment shall be as in clause 16.4 above.

21.0 SUMMARY DISMISSAL

The Management of the Fund may dismiss an employee summarily if the employee is guilt of misconduct in accordance with the provisions of the Fund’s Disciplinary Code and Grievance Procedure. The terminal benefits for such an employee shall be as follows: -

i. Commutation of accrued leave days;

Recovery of Sums Due to the Fund

Any monies due or owing to the Fund may at any time be deducted or otherwise recovered from the monies due to the employee without specific notice prior to such deduction or recovery.

22.0 REDUNDANCY

Redundancy shall mean and denote job losses in consequence of contraction of operations, organisation or restructuring.

Management will endeavour to find alternative employment within the Fund before declaring an employee redundant provided always:-

1. That where such alternative employment is found at a grade equivalent to the former job, any employee to whom an offer of such alternative employment is made who refuses such offer may appeal against the decision to offer him a lower graded job within seven days. In the event the employee is not satisfied with the appeal decision, he will be declared redundant and shall have his redundancy package paid to him;
   
2. Where an employee rejects an offer of an alternative job at a lower grade such employee will have his employment terminated and shall receive redundancy compensation;
   
3. An employee accepting an offer of an alternative job in a lower grade will be remunerated at the maximum salary in that lower grade.
   

22.1 Selection of Employees to be declared Redundant

Management and the Union will agree which employees are to be declared redundant and the following criteria shall be used:

1. Excess staff;
   
2. Lack of required qualifications or skill;
   
3. Unsatisfactory work performance;
   
4. Advanced age;
   
5. Length of service;
   
6. Conduct and disciplinary record;
   
7. Nature of duties (i.e. non-critrcal functions);
   
8. Ill-health and;
   
9. Last in, first out (LIFO).
   

The Fund agrees with the Union that whenever redundancies are inevitable, the Fund shall declare employees redundant in accordance with the Employment Act upon the Following terms:

22.2 Notice of Redundancy

The Fund shall give six (6) months notice or payment of six (6) months basic salary in lieu of notice to an employee to be declared redundant.

22.3 Compensation

The Fund shall pay three (3) months basic salary for each year served in the Fund to an employee declared redundant

22.4 Gratuity

In addition to the above payments, the Fund shall pay benefits as follows:

23.0 PAYMENT OF BENEFITS ON TERMINATION OF EMPLOYMENT

Section 26 of the Employment Amendment Act No. 15 of 1997 shall continue to apply. The Fund shall, however, endeavour to pay benefits within the shortest possible time.

24.0 CHRISTMAS GIFT

Management shall give Christmas gifts to employees. The Christmas gifts shall be 50% of an employee’s monthly basic pay. This amount shall be grossed up for the purposes of tax. In the event that the financial position of the Fund is not favourable; Management shall communicate and discuss with the UNION on the way forward.

25.0 LABOUR DAY CELEBRATIONS

25.1 Organising Committee and its Functions

The Labour Day celebrations organising Committee shall representations from Management and the Union.

The functions and duties of the Committee shall be determined and agreed by the selected Committee and as directed by the Managing Director.

25.2 Awards

The Fund shall award deserving employees under the following categories;

• Customer Care
  
• Most Disciplined
  
• Most innovative
  
• Most improved
  
• Dedication to Duty
  

26.0 RATES ON LAND AND BUILDINGS

Management shall assist employees with recoverable advances to enable them pay rates on land and buildings as and when need arises. The advances shall be recovered in six (6) equal installments.

27.0 CAR INSURANCE

Management shall assist employees with recoverable advances to enable them insure their personal cars as and when need arises. The advances shall be recovered in a maximum of twelve (12) installments.

28.0 CASUAL DRESSING

Eligible employees shall be allowed to dress in smart casual attire every Friday. Smart attire shall mean decent dress generally acceptable in an office environment.

29.0 SUBSCRIPTION TO PROFESSIONAL BODIES

The Fund shall pay 100% subscription fees for employees who are studying professional courses such as ACCA, CIMA, ICSA, LLB, IMIS, etc.

IN WITNESS whereof the parties hereto have set their respective hands the day and year first before written.

Local Authorities Superannuation Fund Unionised Salary Scale

25 NOTCH SALARY STRACTURE EFFECTIVE JANUARY 2019