TERMS AND CONDITIONS OF SERVICE AGREEMENT BETWEEN KENAFRIC INDUSTRIES LIMITED (FOOTWEAR DIVISION) AND KENYA SHOE AND LEATHER WORKERS UNION - 2013
1. PREAMBLE:
A collective Bargaining Agreement made between KENAFRIC INDUSTRIES LIMITED (hereinafter referred to as “the company”) and the KENYA SHOE AND LEATHER WORKERS’ UNION (Herein referred to as the “Union”) to regulate the Terms and conditions of employment of service (employment) within Footwear Division of the company.
This Agreement supersedes all previous Collective Bargaining Agreements on such matter and applies to all unionsable employees of the company within its footwear division.
CLAUSE 1. PROBATIONARY PERIOD:
a. There shall be probationary period not exceeding three months from the date of engagement and during this period forty eight hour notice of intention of termination of the employment shall be given by either party or pay in lieu.
b. Upon confirmation of an employee on permanent basis he/she shall be issued with an appointment letter.
CLAUSE 2. WORKING HOURS:
The normal working hours shall consist of forty – five working hours spread over six days of the week, provided that an employee who is required to work in excess of such hours shall be paid for overtime for the excess hours worked. Spreading the working
hours over less number of days shall be mutually agreed by both parties.
CLAUSE 3. NIGHT SHIFT ALLOWANCE:
An employee who works on night shift shall be paid a night shift allowance of Kshs. 28 (Twenty Eight Shillings) per night.
CLAUSE 4. OVERTIME:
For the time worked in excess of the normal number of hours worked in a week, the following rates shall apply:-
a. Monday to Saturday – 1½ times the normal hourly rate.
b. Sunday and gazetted public holiday – double time. However an employee shall be entitled to one whole rest day over a period of one week of seven consecutive working days. The rest day shall be on any day of the week.
CLAUSE 5. ANNUAL PAID LEAVE:
a. After completion of twelve months continuous service with the company an employee shall be entitled to twenty five (25) working days annual leave with full pay including Saturdays.
b. In the event of gazetted public holidays falling within the leave period, such public holiday(s) shall be added to the leave.
c. The date of an employee’s leave shall normally fall after the completion of every twelve months continuous service from his/her date of engagement. However, leave can be granted on pro- rata basis
d. Where employment is terminated after the completion of two or more consecutive months of service during any twelve months’ leave earning period, an employee will be entitled to two (2) days of leave with full pay, in respect of each completed month of service in such period.
e.Each party will be notified atleast two days in advance before proceeding on leave.
f. Annual leave shall not be accumulated by either party and shall be taken yearly.
CLAUSE 6. 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 for time worked as provided for by overtime clause.
CLAUSE 7. COMPASSIONATE LEAVE:
a. An 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 5 (a) of this agreement and leave taken shall subsequently be set off against his/her annual leave.
b. An employee may, in addition to the leave provided for in sub-paragraph (a) of this paragraph be granted ten (10) days compassionate leave without pay in one year.
c. However incase of unavailability of work due to reasons beyond the control of the management of the Company or the company’s operations are temporarily stopped; either fully or partially, the Company can send the employees on paid leave.
CLAUSE 8. LEAVE TRAVELLING ALLOWANCE:
An employee proceeding on annual leave after completion of twelve months continuous service shall be entitled to leave travelling allowance of Kshs 3,000.00 (Kenya shillings Three Thousand hundred only) for leave earned as at 2013 and the same Kenya Shillings 3,000.00 (Kenya shillings Three Thousand hundred only) for leave earned in 2014, subject to one payment only for every twelve months earned leave and shall not be subject to reimbursement whatsoever.
CLAUSE 9. HOUSING ALLOWANCE:
Every employee who is not provided with housing by the company shall be paid a housing allowance of eighteen percent (18%) of the employee’s current house allowance subject to a minimum of Two thousand Eight hundred shillings (Kshs 2,800) per month whichever is higher.
CLAUSE 10. SICK LEAVE:
After two month’s continuous service with an employer, an employee shall be entitled to a maximum of thirty Five days sick leave with full pay and thereafter to a maximum of thirty Five days sick leave with half pay in each period of twelve month’s consecutive service:
Provided that-
i. An employee shall not be entitled to such payment unless he produces to the employer a certificate of incapacity covering the period of sick leave claimed signed by a medical practitioner in charge of a hospital of dispensary or by a person authorized by him in writing and acting on his behalf.
ii. An employee shall not qualify for sick leave under this paragraph in respect of any sickness or injury due to gross negligence on his part.
CLAUSE 11. MATERNITY LEAVE:
A woman employee shall be entitled to three months maternity leave with full pay, provided that:-
i. A woman who has taken three months maternity leave shall not forfeit her annual leave in that year.
ii. Childbirth in respect of a woman employee shall not be deemed to be sickness as provided for under clause 10 of this agreement and the employer shall not be required to meet medical costs incurred thereon.
iii. A female employee who takes maternity leave shall not incur any loss of privileges during such period.
iv. A male employee shall be entitled to two weeks paternity leave with full pay. In the event of any amendment of this clause by an Act of Parliament, the new Act will take precedence over this.
CLAUSE 12. MEDICAL TREATMENT:
Medical treatment will be provided to the employees in accordance with the Provisions of Employment Act 2007.
CLAUSE 13. TERMINATION OF EMPLOYEMENT:
After the completion of probationary period employment may be terminated by either party in writing or pay in lieu as follows:
a. 1- 5 years One month notice in writing or pay in lieu.
b. Over 5 years Two months notice in writing or pay in lieu
c. Over 10 years 2.5 months.
d. Leave travelling allowance, provided the employee has completed twelve months of continuous service from the time his last leave was due.
e. Leave earned to be calculated on Pro-rata basis.
f. All his/her contributions plus Company’s surrender value or the Company’s contribution arising from the Pension Scheme in accordance with the Retirement Benefits Regulations 2000 and as provided for in the trust deed and rules, or any other regulation in force at that time.
g. An employee terminated for reasons other than gross misconduct shall be entitled to Kshs.2, 000/- baggage allowance.
CLAUSE 14. INJURY BY ACCIDENT/WORK PLACE INJURY:
This shall be as per Work Injury Benefits Act 2007. Any accident at work however slight must be reported immediately in writing without fail to the management and not latter then 24hours after occurrence and will be subjected to eye witness. Transport will be provided for an injured employee by Ambulance within Nairobi city
CLAUSE 15. REDUNDANCY:
Definition
For the purpose of this agreement, redundancy shall mean loss of employment through no fault of the employee concerned occasioned by re-organization, mechanization, lack of orders, stock pile, Government declaring close down of the company and quit notice issued by the Government shall be covered under redundancy.
a. 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 cannot be made available by the company to the employee concerned, the employee will be classified as redundant and therefore be eligible for the entitlement outlined in sub-clause (d) below.
b. CONSULTATION/SELECTION OF REDUNDANT EMPLOYEES:
The union shall be consulted in all cases of redundancy as per Section 40(1) (a) of the Employment Act. In deciding which employee to be declared redundant the company will assess the relative merits, ability and reliability f the affected employees but when these factors are equal the discharge will be on the basis of seniority. i.e. First in Last Out.
c. RE-ENGAGEMENT OF REDUNDANT EMPLOYEES:
Redundant employees will be given priority in consideration for re-engagement by the company should a vacancy arising marching their qualifications.
d. ENTITLEMENT OF REDUNDANT EMPLOYEES:
In the event of an employee being declared redundant; he or she will be entitled to the following;
I. The normal notice or pay in lieu of notice as defined in this agreement
II. Payment of wages, overtime and any other remuneration, which may be due, calculated up to the date of which he/she ceases to work.
III. Pro-rata leave and leave allowance entitlement in accordance with the agreement.
IV. Severance pay on the basis of twenty (20) days pay for each completed year of service. Pension benefits in accordance with TRUST DEED rules and regulation CURRENTLY IN FORCE and Retirement Benefits Authority provisions. Any other retirement benefits are in no way affected by these arrangements if any of these are due to the employees concerned.
V. An employee declared redundant shall be entitled to Kshs.2, 000/- baggage allowance.
CLAUSE 16. PROTECTIVE CLOTHING:
a. An employee, who is required to wear protective clothing and overalls by nature of his/her job in accordance with the provisions of Occupational Safety and Health Act of 2007 shall be issued with two sets of such free of charge by the company.
b. The protective clothing and equipment so issued shall remain company property and shall be replaced as necessary. The company shall be responsible for periodic laundry of the same. The individual employee so issued with the protective clothing or equipment shall take reasonable care of the same. The cost of loss or damage of the uniforms as a result of carelessness by the employee shall be met by him or her.
CLAUSE 17. ACTING ALLOWANCE:
Where an employee is required to work in full acting capacity for a period of not less than one month in an occupation or grade for which the basic minimum wage prescribed under clause 25 of this agreement is higher than the basic wage normally earned by the employee, He/She shall be paid acting allowance at a rate not less than the difference between such higher minimum wage and his normal wage.
CLAUSE 18. WARNING SYSTEM:
An employee whose work or conduct is unsatisfactory and/or who commits an offence which in the opinion of the employer does not warrant dismissal shall be warned in writing after he has been advised verbally of the facts by his superior. The following procedures will be followed.
a. The first, second and third warnings shall be recorded in his personal file and shop steward informed.
b. The second warning shall be copied to the branch secretary of the union.
c. If an employee with three warnings on his/her record commits a fourth offence he/she will be liable to summary dismissal.
d. If an employee completes three hundred sixty five (365) consecutive days from the date of the last warning without further fault/Mistakes the said warning recorded on his/her personal file will be cancelled.
CLAUSE 19. ABSENTEEISM:
In the event of a worker being absent without leave, the company shall not effect dismissal of such employee until the elapse of seven (7) days absence from his lawful place of work and provided such absence was solely occasioned by his/her dependants illness, death, accident or circumstance beyond human control, shall not be dismissed from work.
The employee shall produce to the employer documentary evidence as to the cause, which will enable his employer to use his discretion without which the employer reserves the right to dismiss the services of such an employee.
CLAUSE 20. CERTIFICATE OF SERVICE:
1) Every employee shall be given a certificate of service by his employer upon the termination of his employment, unless such employment has continued for a period of less than eight consecutive weeks and every such certificate shall contain:-
a. The name of the employer and his postal address,
b. The name of the employee,
c. The date when employment commenced
d. The nature and usual place of employment
e. The date when employment ceased and
f. Such other particulars as may be prescribed.
2) Subject to subsection (1) of this section, no employer is bound to give to any employee any testimonial, reference or certificate relating to the character or performance of an employee.
CLAUSE 21. OCCUPATIONAL HEALTH AND SAFETY:
a. There shall be welfare, Health and Safety Committee in the company which shall monitor health and safety matter and report periodically to the company on such matters for necessary action. The committee must include work committee members.
b. The number of members in the welfare, Health and Safety Committee shall be determined in accordance with the directions issued by the Director of Occupational Health and Safety services. The committee shall regulate its own procedure with regard to the conduct of its meetings.
CLAUSE 22. DEATH OF AN EMPLOYEE:
When an employee dies while in the service of the company, the company shall give notice thereof in the prescribed form to the Labor Office and pay all accrued benefits as provided for un Employment Act 2007 Laws of Kenya or alternatively the dues will be paid to the appropriate dependants (next of kin) as declared by the deceased in his/her personal file. The company will contribute Forty Eight Thousands Shillings (Kshs. 48,000) towards funeral expenses and allow 2 employees only to attend the funeral at the company cost.
CLAUSE 23. RETIREMENT AGE/PENSION PROGRAMME:
All permanent employees of the company shall be eligible to join the Staff Retirement Benefits Program under the Trust Deed rules and regulations set therein.
a. The age of retirement for employees shall be fifty five (55) years.
b. An employee who retires shall be given the following:
I. One month notice in writing or pay in lieu.
II. Pro-rate leave.
III. Pro-rata leave travelling allowance.
IV. Days worked.
V. All his/her contributions plus Company’s surrender value or the Company’s contribution arising from the Pension Scheme in accordance with the Retirement Benefits Regulations 2000 or and TRUST DEED Rules of the Scheme or any other Regulations in force at that time.
VI. An employee retiring shall be entitled to Kshs.2, 000/- baggage allowance
CLAUSE 24. DAYS OFF TO ATTEND TO UNION MATTERS
Employees who are union representatives will carry out their delegated duties during their prescribed working hours including attending Training organized by their National Officials provided prior sufficient notification of at least 14 days is given to management with course objective, contents and training duration which should not be more than 5 days for each representative over the two years of the Collective Bargaining Agreement.
Union representative selected for meetings or training will not leave their appointed place of work without permission from their supervisors. Such permission will not be unreasonably withheld.
CLAUSE 25.RETIREMENT ON MEDICAL GROUNDS:
Employees retiring from the company service on medical grounds will be entitled to:-
I. Leave – Pro-rata
II. Pro-rata leave travelling allowance
III. Payment of wages, overtime and any other remuneration which may be due to him/her calculated up to date of which he/she ceases work.
IV. All his/her contributions plus Company’s surrender value or the Company’s contribution arising from the Pension Scheme in accordance with the Retirement Benefits Regulations 2000 or and the Trust Deed rules and regulations or any other Regulations in force at that time.
V. An employee retired on medical grounds shall be entitled to Kshs.2, 000/- baggage allowance.
CLAUSE 26. SUSPENSION :
Employee on suspension will be paid half pay until the case is determined or agreed upon.
CLAUSE 27. PENSION SCHEME
The union’s demand on Clause 27 was that the employers contribution be increased from 2.5% to 15%. The union position was that employee contribution to increase to 5%.
The employers requested for time to go and consult the management board of Kenafric Industries and report back in order to finalize the issue.
CLAUSE 28. WAGE INCREMENT:
All employees shall get 10% increase on current basic salary in the first year effective 1st February 2013. 10% increase on basic in the second year effective 1st February 2014
CLAUSE 29. JOB EVALUATION
It shall be the responsibility of the Management to carry out job evaluation and grading of employees position after every three years. The job evaluation outcome shall be agreed upon by both parties.
CLAUSE 30. EFFECTIVE DATE AND DURATION OF AGREEMENT:
a. This agreement shall be effective from the 1st February 2013, and shall remain in force for a period of two (2) years. Thereafter the agreement shall continue in force until it is amended. Provided that the party desiring to amend it gives one-month notice giving in detail the amendments so required.
b. It is understood that the terms and conditions of service in this agreement will only apply to permanent staff.
SIGNED:FOR AND ON BEHALF OF KENAFRIC INDUSTRIES LTD
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SOHIN B. SHAH
GROUP CHIEF OPERATING OFFICER
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ROSE MAINA
GROUP HEAD OF HUMAN RESOURCES
SIGNED: FOR AND ON BEHALF OF KENYA SHOE AND LEATHER WORKERS UNION
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NATIONAL SECRETARY GENERALBRANCH SECRETARY
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CHIEF SHOPSTEWARDASST. SHOPSTEWARD
WITNESSED BY: ----------------------------------------------------
L.W. KARIUKI
HEAD OF INDUSTRAIL RELATIONS SERVICES
DATED THIS ----------------------DAY OF-------------------2013
