MEMORUNDUM OF COLLECTIVE AGREEMENT BETWEEN ZAMBIA NATIONAL COMMERCIAL BANK PLC AND ZAMBIA UNION OF FINANCIAL INSTITUTIONS AND ALLIED WORKERS

1st January 2022 to 31st December 2023

1.0 PREAMBLE

Whereas the "Union" representing employees eligible for representation by the Union in terms of Clause 2, scope of the Agreement MEMORUNDUM OF RECOGNITION AGREEMENT signed on the 30th of June, 2022 between the Bank and the Union.

NOW THIS COLLECTIVE AGREEMENT made this 30th June, 2022 between the Bank and the Union covering Conditions of Service pursuant to the aforesaid Memorandum of Recognition Agreement WITNESSETH as follows:

2.0 DEFINITION OF TERMS

The following terms shall in this Agreement mean as indicated here below:

1. Salary - An Employee's Monthly Basic Salary, excluding Allowances and any other cash benefits.
   
2. Child - An employee's biological offspring or legally adopted minor/dependant below the age of twenty-one (21) years, registered with the Bank.
   
3. Spouse - Husband/Wife registered with the Bank.
   
4. Eligible Employee - A Unionised employee of the Bank.
   
5. Union - The Zambia Union of Financial Institutions and Allied Workers
   (ZUFIAW).
   
6. Bank - Zanaco Bank Plc

3.0 DURATION

The duration of this Collective Agreement shall be a period of not less than twenty-four (24) months effective 1st January 2022.

1. Within twelve (12) months of the date of the coming into-effect of this Collective Agreement, either party may call for a meeting to review Salaries according to prevailing economic conditions during the period.
   
2. At any time after twenty-four (24) months of the commencement of this Agreement, either party shall give to the other, six (6) weeks' notice in writing of its desire for this Agreement to continue in force for a further period to be agreed upon or of its intention to terminate the Agreement or alter any Clause herein.
   
3. In the event of emergency cases, both parties shall endeavour to meet as soon as possible but not later than fourteen (14) calendar days.
   
4. The terms of this Agreement shall be in accordance with the prevailing Labour Legislation from time to time.
   
5. The provisions of this Agreement shall be valid only so long as the Recognition Agreement between the Bank and the Union remains in force.
   
6. Prior to the signing of a new Collective Agreement, the present Agreement shall continue in force
   

4.0 APPLICATION FOR CHANGE OR AMENDMENT OF THE AGREEMENT

1. It is hereby agreed that if either the Union or the Bank shall consider that any part of this Agreement should be changed or amended and if it is also considered that such change is mutually beneficial to both the Union and the Bank and provided it is clearly seen to be a valid reason to recommend such a change or amendment to this Agreement, such a change or amendment shall be undertaken in the following manner:
   
   1. The Union or the Bank will indicate by letter its intention to discuss a change or amendment to the Collective Agreement.
      
   2. Such a letter as is indicated in (a) above shall not be considered by the Bargaining Unit unless it is accompanied by written information/evidence or any other communication considered necessary to validate the intention to change or amend the Collective Agreement as aforesaid.
      
2. The party requestingthe change or amendment shall allow the other party three (3) months to consider the request. The Bargaining Unit shall after two (2) weeks, but not longer than three (3) weeks after the date of the original letter, agree to meet to discuss the change.

1. 1. 
      
2. Transport Allowance
   The Transport Allowance shall be increased by K1,350.00.
3. Overtime
   Overtime shall be one and half times the hourly rate on ordinary days and double the hourly rate on Sundays and Public Holidays.
4. Mid-Month Pay
   An employee may on request, draw a Mid-Month pay of up to 30% of their Monthly Basic Salary taking in account the employee's current financial commitments and provided that the request is made before the closing date of the payroll input for the month.
5. Salary Advance
   Management at its discretion may pay up to 50% of an employee’s net pay as salary advance to an employee on request at any time of the month, to be recovered in not more than two months' installments.
   

6.0 UPKEEP ALLOWANCE

The Upkeep Allowance shall be increased by K105.00 per month across the board. In addition, 30% of the performance-based increment will go towards Upkeep Allowance as indicated under item (b) under Rates of Pay effective 1st January, 2022.

7.0 ANNUAL LEAVE ACCRUAL

1. Annual Leave shall accrue at the rate of 2.5 days per month across the board irrespective of the employee's length of service. Staff shall take any number of accrued leave days as Annual Leave at any time in the course of the year.
   
2. Leave days accrued, including during the probation period, shall be paid to the employee in cash upon termination of employment or to his/her estate in the event of death,
   
3. Commutation of leave days shall be paid as provided for in the current Employment Code.
   

10.0 COMPASSIONATE LEAVE

1. On death of a spouse, child, parent or dependant, an employee will be eligible for seven (7) calendar days as compassionate Leave and such leave shall not be deducted from the employee's accrued leave days.
   
2. Days in excess of seven (7) Calendar days shall be granted at the discretion of Management and such days shall form part of the compassionate leave.
   

13.0 UNPAID LEAVE

Management may on application, grant Unpaid Leave of up to a maximum of one (I) year using its discretion in deserving cases, provided that the employee has served for a continuous minimum period of two (2) years with the Bank.

14.0 SPECIAL LEAVE

1. An employee who is required by Law to attend Court proceedings as a State Witness shall be allowed Special Leave for the number of days as required.
   
2. A female employee shall be entitled to one (I) day absence from work each month without giving reasons (Mother's Day).
   

1. 1. 
      
2. However, a recommendation from a registered Traditional Healer will be recognized as a certificate of absence provided that there is a letter from a registered Medical Practitioner stating that the employee attended treatment and that the nature of his/her illness could not be cured.
3. The Bank reserves the right to have an employee examined by a registered Medical Practitioner of its choice.

18.0 PUBLIC HOLIDAYS

All gazetted Public Holidays as stipulated by the Government from time to time shall be observed by the Bank.

19.0 HOURS OF WORK

1. Hours of work shall be restricted to forty-four (44) hours per week or one hundred and seventy-six (176) hours per month. Hours in excess of either forty- four (44) hours per week or hundred and Seventy-Six (176) hours per month shall constitute overtime. Prior permission must be grant to work overtime.
   
   
2. The official working hours shall be as follows:
   
   

   (a) Monday-Friday	8:00 hours - 13:00 hours
   	14:00 hours - 17:00 hours
   (b) Saturday
   08:00 hours - 12:00 hours

   
   
3. Staff requested by management to work on Saturdays, Sundays or Public Holidays shall be provided with Lunch if they work beyond 13:00 hours.
   
4. An employee who is made to work beyond 19:00 hours shall be provided with Bank transport to his/her place of residence.
   
5. In the event of the Bank failing to provide transport, Management shall avail accountable Imprestto staff working late taking into account the prevailing fares, provided always that:
   
   1. Prior permission to work late was granted by Management;
      
   2. The employee uses a direct route to his/her known residence; and
      
   3. No Imprest shall be availed to staff who have not retired Imprest (i.e Imprest should be retired the following day).
      
   4. Staff using their own vehicles shall retire the imprest by production of fuel receipts amounting to not more than the prevailing fares as stated in item (v) above.
      
6. The Bank shall provide dinner to employees requested to work beyond 19:00 hours.
   
7. The provisions in Clauses (iv) and (v) above shall not be extended to staff living within the Bank premises
   
8. Employees requested to work on non-working days and live within radius of 25km shall be paid money equivalent to a Taxi Fare to and from the place of work.
   

20.0 ELIGIBILITY FOR UNION MEMBERSHIP

New employees on probation shall not be represented by the Union.

Staff will only be represented after having been confirmed in their positions in writing as Permanent and Pensionable employees of the Bank and such representation shall be on submission of a Union membership application form duly signed by the employee and the Union.
2. 
   

22.0 DISTURBANCE ALLOWANCE

1. Disturbance Allowance will be paid at the rate of one and half (11) times the Monthly Basic Salary upon an employee's transfer from one town to another, at Management's request.
   
2. An employee transferred by Management shall be provided with transport for the family and personal belongings as well as temporary accommodation for a period not exceeding thirty (30) calendar days while making arrangements for own accommodation. This period may be extended at the discretion of Management.
   
3. However, Disturbance Allowance, provision of transport and temporary accommodation shall not apply if an employee is transferred at his/her own request.
   
4. It is incumbent upon the Line Manager to allow flexibility in working hours to allow employees on transfer look for accommodation within the 30 days, subject to minimal interruption in Bank operations.
   

23.0 ACTING ALLOWANCE

1. To qualify for Acting Allowance, an employee must act for a period of not less than fifteen (15) calendar days, in a higher grade.
   
2. The Acting Allowance shall be 15% of either the acting employee's Monthly Basic Salary or the incumbent employee's Monthly Basic Salary whichever is higher.
   
3. An employee nominated to act shall be informed in writing by the Human Resources Department prior to assuming the acting position involving payment or an Acting Allowance.
4. An employee who is appointed to act in a higher position with a view to promotion shall not be made to act for more than six (6) months without being confirmed or furnished with reasons why he/she should not be confirmed; and in case of noticeable persistent unsatisfactory work the Acting appointment may be withdrawn and the employee, reverted to his/her substantive salary, grade and/or position.

24.0 RESPONSIBILITY ALLOWANCE

1. Responsibility allowance shall be paid to an employee who is required to perform other duties/responsibilities in addition to his or her current role.
   
2. Responsibility allowance shall be 12.5% of the employee's monthly Basic salary.
3. The minimum qualifying period for an employee to be entitled to responsibility allowance shall be (21) consecutive calendar days
   

25.0 TOOLS FOR ARTISANS

The Bank's Artisans shall be provided with appropriate tools for efficient execution of their work.
Where tools are not provided, the employee shall report for work and perform such duties as shall be assigned to him/her as long as they do not fall outside the normal sphere of his/her job.

26.0 SUBSISTENCE ALLOWANCE

1. An employee travelling on authorised Bank duties and opts to make own accommodation and feeding arrangements shall be paid K1,100.00 as Subsistence Allowance for each night out of the usual work station and the Bank shall meet the attendant tax on the Subsistence Allowance paid to the employee.
   

27.0 OUT OF STATION ALLOWANCE

An employee travelling on authorized Bank business and opts to be accommodated and meals provided by the Bank, shall be paid K100.00 as Out- of-Station Allowance for each night out of the usual work station.

29.0 REPATRIATION

1. On termination of service, an employee shall be entitled to be repatriated together with the family, from the place, of employment to the place of recruitment as stipulated in the Employment Code Act under the following circumstances:
   
   1. The employee being medically discharged;
      
   2. The employee being declared redundant;
      
   3. The employee being separated under the Voluntary Severance Scheme;
      
   4. Upon early, normal or late retirement; and
      
   5. The employee dying in service in which case the benefits shall be payable to the family of the deceased employee.
      
2. However, an employee may elect to be repatriated to a place of choice but the Bank may only meet the portion of the cost equivalent of the repatriation to the place of recruitment.
   

LOCAL PASSANGER ALLOWANCE / REPARTRITION COSTS

30.0 PRINCIPLES OF REDUNDANCY AND STAFF RATIONALISATION

1. It is hereby agreed that Redundancy is a negotiable item and that in the event of redundancies being executed, this exercise shall require full consultations between the Union and the Bank to work out modalities of its implementation.
   
2. Redundancy will not arise where;
   
   1. In the event of it being necessary to reduce staff at one Branch because of its closure or small work load and the affected employee(s) is offered alternative employment appropriate to his/her grade at another Branch, whether or not the offer is accepted,
      
   2. Where the business is wholly or partially taken over by or merged with any third party and continued employement is offered to employees on similar terms.
      
3. The contract of employment of an eligible employee shall be deemed to have been terminated by reason of redundancy due to:
   
   1. The Bank ceasing to carry on the business for which the employee was engaged. 
      
   2. The Bank ceasing or reducing the requirements for eligible employee to carry out work of a particular kind in a place where the eligible employee was engaged, but the Bank remains a viable concern.
      (c) Any other conditions as provided for in the Employment Code or related employment legislation.
      

33.0 THE GRIEVANCE AND DISCIPLINARY CODE AND THE GENERAL CONDITIONS OF SERVICE-RULES AND ORDERS

In administering discipline, the Bank shall be guided by the provisions of the Grievance and Disciplinary Code and the General Conditions of Service Rules and Regulations as amended from time to time.

In witness whereof, we have hereunder set our hands this:
30th day of June 2022