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MEMORANDUM OF AGREEMENT BETWEEN AZIZ TANNERIES LIMITED AND KENYA SHOE AND LEATHER WORKERS UNION

1. PREAMBLE

The terms and conditions of employment set out in this agreement shall be observed by both parties, and shall apply to all unionsable employees covered by The Recognition Agreement as provided for by the FKE/COTU (K.) agreement.

2. HOURS OF WORK

The normal working week shall consist of 45 hours spread out as follow:

a) Monday to Friday:8.00am - 1.00pm and 2.00pm — 5.00pm

Saturday, :8.00am - 1.00pm

b) OVERTIME

Overtime shall be payable for extra hours in normal working hours of the week

i. Monday to Saturday — time worked plus half.

Sundays and gazatted public holidays shall be paid at double the normal rates.

3. PROBATIONARY PERIOD

An employee shall be required to serve a three months probationary period, during which period; employment may be terminated by 7 days notice or pay in lieu of notice. The probationary period may be extended for another six months if the employee's work is not found totally satisfactory.

A letter of confirmation shall be issued to the employee after satisfactorily completing the probationary period. The confirmation letter shall show the employee's position in employment.

4. ANNUAL LEAVE

a) After the completion of twelve months service with the company an employee shall be entitled to 22 working days annual leave with full pay.

b) In the event of gazetted public holidays falling within the period, such public holidays shall be added to the leave entitlement.

c) The date of an employee's leave shall normally fall after the completion of twelve months service from his/her date of engagement but will be taken at the convenience of the employer.

d) Where employment is terminated 'after two or more completed months of service during the twelve months leave earning period, such employee shall be entitled to pro-rata leave of two days per completed month of service.

e) Employees entitled for leave should be informed in writing one month in advance of the date and month when his/her leave is due to commence.

5. SICK LEAVE

After completion of the probationary period with the company, an employee

shall be entitled to sick leave up to a maximum of thirty (35) day with full pay and thereafter up to a maximum of fifteen (15) days with half pay, subject to the employee producing a certificate of incapacity covering each period of sick leave signed by a medical practitioner.

6. MATERNITY LEAVE

a) A female employee shall be entitled to three months maternity leave with Full pay. Provided that a female who has taken three months maternity leave shall not forfeit her annual leave in that year, the employee shall also be given her leave travelling allowance.

b) In respect to paternity leave a male employee be granted 14 days with full pay, provided the employee does not come and claim again within one year, and this paternity leave must be well documented.

7. COMPASSIONATE LEAVE

An employee desiring to take leave on compassionate grounds, shall, by prior arrangement with the company, be granted such leave up to his earned entitlement under paragraph 4(a) of this agreement, set off against his/her annual leave.

Such leave shall not be unreasonably delayed provided satisfactory proof in support of the request for leave is produced before going or soon are coming back.

8. HOUSING AND HOUSE ALLOWANCE

An employee who is not provided with free housing shall get, in addition his or her wages, a housing allowance of 18% of the basic salary.

9. TERMINATION OF EMPLOYMENT

After completion of the probationary period, the contract may be terminated by either party giving written notice or pay in lieu as follows:

a) One year to five years - One months' notice or pay in lieu

b) Over five yearsTwo months' notice or pay in lieu

c) Where an employee's services are terminated after completion of the probationary period and for the reasons other than gross misconduct, such an employee shall be entitled to pro-rata leave with full pay

d) An employee whose services are terminated by his employer shall qualify for seventeen (17) days pay for each completed year of service.

10. LEAVE TRAVELLING ALLOWANCE

An employee who proceeds on annual leave shall be given a travelling allowance at the rate of 18% of his/her basic salary.

11. PROTECTIVE CLOTHING

a) All employees shall be provided with two pairs of protective clothing, with the hand gloves and air respirators early every year.

One pair of gumboots will be replaced half yearly.

b) One bar of soap shall be provided monthly to all employees for the purpose of washing their garments.

c) Any employee working with chemicals in the factory shall be given one pint of milk every day.

12. ACTING ALLOWANCE

An employee who is officially appointed to act in higher grade than his substantive grade and assumes the full duties and responsibilities of the higher job shall be entitled to an acting allowance which is equivalent to basic pay of the higher job provided the acting period is one full month.

13. SHIFT ALLOWANCE

Employees working on shift shall be entitled to a shift allowance of Kshs. 55.00 per employee per night. This covers the time between 4.00p.m. and 8.00p.m.

14. SAFARI ALLOWANCE

An employee who is required to perform work away from his principal place of employment shall be entitled to be paid subsistence allowance as follows:

a) For any such period of duty exceeding six hours but not including an overnight stop - Kshs.2, 000.00 for drivers and turn boys.

b) For any such period including an overnight stop in Nairobi and Mombasa municipalities Kshs.3000.00 for drivers and turn boys. Kshs.3, 500.00 for drivers and turn boys.

c) For any such period of duty including an overnight stop elsewhere-Kshs. 3,500.00 for drivers and turnboys.

15. A. INJURY BY ACCIDENT

Where an employee is injured arising out of and in the course of his employment, he shall be entitled to compensation in accordance with provisions of the Work Injury and Benefits Act 2007,provided that such injury does not arise from an employees negligence.

15. B. MEDICAL TREATMENT

a) The Company undertake to pay for the cost of treatment of its employees in accordance with the provisions prescribed by the laws of Kenya, relative to employment of persons medical treatment rules, provided that such illness are those covered by the act.

Such payment shall be made subject to the production of a certificate of incapacity, signed by qualified medical practitioner or a person authorized by him on his behalf, in government hospital or local authority hospital or health center.

b) An employee leaving employment on medical grounds shall be paid 17 working days for each completed year.

16. RETIREMENT

a. The retirement age for the employees shall be fifty-five years. An employee retiring from the company after attaining the retirement age

I.Normal notice

II.Pro-rata leave

III.Leave traveling allowance

IV.Seventeen (17) days for each complete year of service

17. WARNING SYSTEM

An employee whose work or conduct is unsatisfactory and who commits an offence, which in the opinion of the employer and the Union does not warrant an instant dismissal, shall be/warned in writing. The following procedure will be followed:

a. The first, second and third warnings shall be recorded on his/her card and the shop steward informed.

b. If an employee with three warnings on his/her card commits an offence, he/she shall be liable to summary dismissal.

c. If an employee completes 292 consecutive days from the date of the last warning(s) recorded on his/her card will be cancelled.

18. REDUNDANCY

a. For the purpose of this agreement, redundancy shall mean loss of employment through no fault of the employee concerned occasioned by re-organization, mechanization or lack of orders.

b. Alternative employment

In an effort to avoid redundancy, the company will endeavor to arrange alternative employment within the company. This employment may not be of the same grade. If no alternative employment is found, he/she will be classified as redundant and therefore eligible for the entitlement outlined in clause (f).

c. Consultation

In the event of redundancy, the company undertakes to inform/ notify the Union concerning the 'reasons for the intended redundancy.

d. Selection of redundant employees

Selection of staff to be considered for each department on the basis of "FIRT IN, LAST OUT" but other factors like education, experience, qualification and loyalty shall be put into consideration.

e. Re-engagement of redundant staff

Re-engagement by the company should a vacancy arise according to their qualifications.

f. Entitlement of redundant employees

In the event of an employee being declared redundant, he will be entitled to:

a.The normal notice or pay in lieu of notice as defined in the agreement.

b.Payment of wages and any other remuneration which may be due to him/her calculated up to the date which he/she ceases to work.

C. Pro-rata leave and leave allowance entitlement in accordance with the agreement.

d. Severance pay on the basis of17 (seventeen) days pay for each year of service.

19. ABSENTEEISM

i)It shall be the responsibility of the employee to submit to the company

adequate proof and evidence showing cause of absence, without which the company reserves the sole right to terminate the services of such employees as it may deem fit

a) Serious illness of employee's immediate family-wife and children provided the employee submits a medical certificate signed by a registered medical practitioner.

b) Court proceeding - provided a magistrate's warrant is presented to the company's personnel manager.

20. DEATH OF AN EMPLOYEE

i) In case death occurs of an employee while in the service of the company, the employer shall contribute Ksh.20,000 towards funeral expenses.

ii) The employer will pay to the dependants of the deceased workman a gratuity for the years of service rendered by the deceased in accordance with clause 16 of this agreement.

21. LETTER OF APPOINTMENT

All employees to be given a well-defined and self-explanatory letter of appointment setting out conditions of service and all benefits accrued.

22. CHRISTMAS GIFT

All the time nearing Christmas holidays, each and every employee shall be given Kshs.900/= for Christmas.

23. CERTIFICATE OF SERVICE

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

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 employip4n

e.The date when employment ceased

f.Such other particulars as may he prescribed.

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

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

24. JOB CLASSIFICATION AND BASIC MINIMUM WAGE FOR NEWLY ENGAGED EMPLOYEES.

GRADE AMOUNT (KSHS)
GROUP 1

General Labour, Packers, Counter

9,781.00 9,791.00
GROUP II

Machine Attendants i.e. Fleshers, Setters, Selectors, sizers

10,912.00 10,922.00
GROUP III

Un graded artisans

13,202.00

13,212.00
GROUP IV

Operators

12,655.00

12.665.00
GROUP V

a)Cars and Light Vans

b)Tractor

c)Medium sized vehicles

d)Heavy commercial vehicles.

13,212.00

13,222.00
GROUP VI

General Clerk, telephone operator

15,065.00

15,075.00

25. WAGE INCREAMENT.

In addition to the present basic Minimum wages earned by an individual employees, they shall be a wage increase for all categories of employees as under :-

(a) In the 1st Year – 10% of the basic wage for all employees.

(b) In the 2nd year – 10% of the basic wage for all employees.

26. BAGGAGE ALLOWANCE

To pay Kshs. 2,000/= after an employee has been declared redundant, termination or retirement.

27. PROMOTION

Where vacancies of promotion arise, the company will give consideration to existing employees within the department or group in which the vacancy occurs, taking qualification, ability and length of service into consideration. As far as possible, all newly engaged employees should start in the lowest grades in order

to give chance to the older employees to get the highest grades.

28. EFFECTIVE DATE AND DURATION OF AGREEMENT

This agreement shall come into force from 1st April 2014 and shall remain in force for two years and thereafter indefinitely until either party, by giving one month's notice in writing shall signify intention to revise the agreement.

SIGNED FOR AND ON BEHALF OF AZIZ TANNERIES LIMTED

…………………………………………………….

MANAGING DIRECTOR

SIGNED FOR AND ON BEHALF OF KENYA SHOE AND LEATHER WORKERS UNION

…………………………………………………….

GENERAL SECRETARY

…………………………………………………….

BRANCH SECRETARY

…………………………………………………….

CHIEF SHOP STEWARD

WITNESSED BY :

…………………………………………………….

L.W KARIUKI

MANAGER, INDUSTRIAL RELATIONS SERVICES

SIGNED THIS ……………………..DAY OF ………………………….2014

Aziz Tanneries Limited - 2014

Start date: → 2014-04-01
End date: → 2014-03-31
Name industry: → Manufacturing
Name industry: → Manufacture of leather and related products
Public/private sector: → In the private sector
Concluded by:
Name company: → Aziz Tanneries Limited
Names trade unions: → Kenya Shoe and Leather Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 24 %
Maximum days for paid sickness leave: → 50 days
Provisions regarding return to work after long-term illness, e.g. cancer treatment: → 
Paid menstruation leave: → No
Pay in case of disability due to work accident: → Yes

WORK AND FAMILY ARRANGEMENTS

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

EMPLOYMENT CONTRACTS

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

WORKING HOURS, SCHEDULES AND HOLIDAYS

Working hours per day: → 8.0
Working hours per week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 22.0 days
Paid annual leave: → 3.0 weeks
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Wages specified according to skill level: → 0
Wages specified according to job title: → 1
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → KES 9781.0
Adjustment for rising costs of living: → 1

Wage increase

Wage increase: → 10.0 %

Once only extra payment

Once only extra payment: → KES 900.0 %
Once only extra payment due to company performance: → No

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Premium for Sunday work

Premium for Sunday work: → 200 %

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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