New

MEMORANDUM OF AGREEMENT

Between

FOX THEATRES LTD, SPRINGFIELD PROPERTIES LTD, THIKA ROAD PROPERTIES LTD AND QUEENSWAY

PROPERTIES LIMITED

(Hereafter referred to as the "Employer") of the one part

and

THE KENYA UNION OF COMMERCIAL, FOOD AND ALLIED WORKERS

(Hereinafter referred to as the "Union") of the other part.

PREAMBLE:

The parties held a voluntary meeting and had cordial discussions and came to the following agreement.

1.SCOPE AND APPLICATION OF THE AGREEMENT

The terms of this Agreement shall be observed in Kenya by the Employers and by all unionisable employees of the Employers.

2.EFFECTIVE DATE AND DURATION OF THE AGREEMENT

a) This Agreement shall become effective on 1st January, 2012 and shall be in force for a period of two years from 1st January, 2012.

b) This Agreement may be amended, modified or altered by either party giving to the other 3 month's notice of its intention to amend, modify or alter the Agreement. Such notice shall give details of proposed amendment, modification or alteration.

c) This Agreement shall continue to be in force until any amendments, modifications or alterations have been agreed upon and signed.

3.DEFINITIONS

a) Unionised employee means a person who is the member of the Union and whose Union dues are deducted through the company's payroll.

b) An employee will become a unionised employee, when the company starts to make monthly deduction of the Union dues from the employee's wages. The employee ceases to be unionised employee when the deduction of the Union dues through the company's payroll are stopped or terminated for whatsoever reasons.

c) Casual employee means a person who is employed in any capacity on an hourly basis for not more than fifty two hours per week.

d) Temporary employees: These are employees who are paid for specific duties or jobs.

e) Overtime means any time worked in excess of the ordinary hours prescribed under Clause 9 below:

f) Theatre Vendor means an employee working on a commission basis.

g) Admits persons into theatre - a person is said to have been admitted into theatre immediately after he passes the Cinema Attendant at the cinema door.

h) Terminal Benefits means earned salary, outstanding leave and/or pro-rata leave travelling allowance.

4.JOB CLASSIFICATION

The jobs of all permanent employees covered under this agreement are classified in grades as stated in Appendix "A" hereto.

5. i)Minimum Wages

Monthly basic minimum wages (exclusive of house allowance) shall be as follows:-

Grade A KShs.19,360/=
Grade B KShs.15,730/=
Grade C KShs.13,215/=
Grade D KShs.11,580/=
Grade E KShs.9,572/=
Grade F KShs.8,580/=

ii) Housing Allowance

The employer shall pay full time employees a monthly housing allowance of KShs.1,900/=

iii) Clause 5 (ii) shall not pay full time employees who are provided with free housing accommodation by the employer.

6.BASIC WAGE AND INCREMENT

All permanent employees will receive wage increment of 5% with effect from 1st January, 2012 and 5% wef 1st January 2013. For avoidance of doubt, the increase each year is 5%.

7.ACTING ALLOWANCE

Where an employee is required to act in higher grade for a period of not less than fifteen consecutive days, he/she will be entitled to be paid the period so worked at the prescribed minimum wage laid for that grade.

8.PAYMENT OF WAGES

i) Wages and the remuneration for overtime of employees shall become due and be paid not later than the last day of each month or on termination of employment if this occurs prior to the last working day of each month.

ii) For the purpose of determining hourly rates of pay for overtime the basic monthly wage prescribed shall be divided by two hundred and eight (208).

iii) No deduction of any description (unless specifically authorised by an employee in writing) shall be made against employees' wages other than for:

a) Sick insurance, provident or pension funds;

b) Where an employee is absent from work without permission of the employers, a pro-rata amount be deducted for the period of absence.

c) Where the employer is compelled by law or legal processes to make payment for and on behalf of any employee's wages;

d) In the case of a Cashier, Booking Attendant, Catering Attendants any amount or amounts of cash or stocks or assets shortages as provided in clause 11 thereof.

iv) Any employee if required to work overtime shall be paid overtime at the rate of time and one half on ordinary working days and double the rest days and Gazetted Public Holidays. Every employee shall be entitled to at least one rest day in every period of seven days.

9.HOURS OF WORK

Hours of work shall be as follows:-

i) For all permanent employees the normal hours of work will be forty eight per week.

ii) Notwithstanding the provision of paragraph 9 (i) the normal working week of a person employed on night work shall consist of not more than fifty two hours of work per week.

iii) The working hours will be determined by the employer and these can be flexible to suit the company's operational needs.

10.PROBATIONARY PERIOD

i) The first three months of service shall be probationary period during which employment may be terminated by either side giving seven days notice or payment in lieu. The probationary period may be extended for not more than three months, if it is found that the performance of an employee during the three months is not satisfactory, the employee whose term is extended may have his service terminated by either side giving the other seven days notice or payment in lieu.

ii) After completion of probationary period the employee becomes a regular employee and shall receive a letter of confirmation. His length of service and entitlement to annual leave shall be determined as from the original date of engagement.

11.EMPLOYEE’S LIABILITY

Booking Attendants, cashiers, or Catering Attendants shall be personally liable for all cash, assets and stocks under their control and shall make good any deficiency in all respects thereof.

12.ANNUAL LEAVE

After twelve consecutive months of service, an employee shall be entitled to annual leave, with leave pay as follows:-

i) All permanent employees will be entitled to 24 working days. (excluding public holidays) per year.

ii) Annual leave will be taken at the discretion of the employer.

iii) Leave pay for the period of leave shall be paid not later than the last working day before the date of commencement of such leave.

13.LEAVE TRAVELLING ALLOWANCE

When an employee is proceeding on his annual leave, travelling allowance will be paid at KShs.1,400/= to all permanent unionised employees irrespective of their grades. This allowance is not retrospective to leave due prior to the date of this Agreement.

14.MATERNITY LEAVE/PATERNITY LEAVE

(a) A female employee shall be entitled to three months maternity leave with full pay. Provided that a woman has taken three months maternity leave shall not forfeit her annual leave in that year. She will be paid the leave travelling allowance when proceeding on maternity leave, provided that this allowance shall not be paid twice in one year.

(b) A male employee shall be entitled to two weeks paternity with full pay. Male employees shall register their spouses with the company.

15.SICK LEAVE

The employer shall grant to an employee, who is absent due to illness, a maximum of 40 days sick leave at full pay and thereafter to a maximum of 40 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 incapability covering the period of sick leave claimed signed by a medical practitioner in charge of a dispensary or medical aid centre.

ii) The employer may nominate their own medical practitioner, in which event such expenses shall be borne by the employer.

iii) An employee shall not be eligible under this paragraph in respect of any incapability due to own negligence or wilful default.

16.COMPASSIONATE LEAVE

This may be granted at the employer's discretion. This leave may be deducted from the annual leave at the employer's discretion.

17.REDUNDANCY

Where the employment of an employee is to be terminated on account of redundancy the following procedure shall apply;

a) The employer shall notify the Union of the reasons and the extent of the intended redundancy;

b) The employer shall have due regard to seniority in time and to the skill ability and reliability of each employee belonging to the particular category of employees affected by the redundancy.

c) Employee affected by redundancy shall be paid all his terminal benefits (salary, outstanding leave (or pro-rata) leave travelling allowance).

d) A redundant employee shall be entitled to one months notice or one months wages in lieu of notice. In addition to (c) above such employee shall be paid severance pay at the rate of nineteen (19) day's pay for each completed year of service. Calculation of severance pay shall be based on the basic salary earned at the time of termination of employment.

18.TRANSPORT

The employer shall provide transport to the vicinity of place of residence of employee who finishes work out of normal public transport hours. In the event of a breakdown in the normal transport the employer will make suitable alterative arrangements.

19.UNIFORM

The employer shall provide two uniforms and/or overalls to employees whose nature of their work requires them to wear such uniforms. The Laundry of the uniforms will be done regularly by the employer.

20.UPGRADING

If an employee is moved to a job in a higher grade he will immediately receive not less than the minimum prescribed wage for that grade. The appointment to the higher grade will be subject to a probationary period of three months, during which period reversion to the lower grade together with the previous salary may be affected by the employer. After completion of probationary period, the employee shall receive a letter confirming his appointment in the higher grade and his length of service in this grade shall be calculated as from the date of elevation.

21.TERMINATION OF EMPLOYMENT

(a) Employment may be terminated by either party giving notice as follows;

(i) Employees with upto 10 years service – 1 month

(ii) Employees with over 10 years service – 2 months.

(b) An employee whose employment has been terminated shall be entitled to all terminal benefits.

22.DISMISSAL

An employee shall be liable to instant dismissal if an employee;

a) is convicted of criminal offence which involves a prison sentence;

b) without authority, and for his own use makes use of and damages employer's property;

c) wilfully or wilful breach of duty or by drunkenness or causes loss or damage to the employer's property;

d) without just cause or permission absents himself for seven working days;

e) discloses any company secrets or other confidential matters to anyone who is not liable to receive them;

f) admits persons into the theatre without official tickets or retains the whole ticket;

g) defrauds or attempts to defraud the company of funds, stocks or assets by whatsoever means.

23.CERTIFICATE OF SERVICE

The employer shall give to any employee upon termination of service a certificate of service if requested for by the employee, detailing the name of the employer and employee, the employee's occupation, the employee's date of engagement, the date and reason for termination of employment and the last rate of wage paid to the employee.

24.DISTRIBUTION OF COLLECTIVE AGREEMENT

Each Shopsteward shall be entitled to a copy of this agreement.

25.CHECK OFF

The employer shall deduct normal Union dues from wages of members and pay direct to the Union under the provisions of the Trade Disputes Act.

26.RECOGNITION

A National Official or Shopsteward of the Union elected by the employees of the employer shall have the right of access at request and with prior confirmed appointment to the General Manager or other officers of the employer to discuss any matter affecting the employee(s) covered under the Agreement.

27.WARNING PROCEDURE

If an employee commits an offence of which a warning is deemed necessary, the 1st warning and 2nd warnings shall be recorded on the employee's file and the shopsteward shall be informed accordingly. The second warning shall be copied to the Union. If the employee commits a 3rd offence, the employee shall be liable to termination of service but there shall be no need to give a notice of one month or payment in lieu of such notice. Such an employee shall be paid for the days worked plus leave pay if due, calculated on pro-rata basis for the period worked, and any other benefits. Provided that where an employee completes three hundred and sixty five consecutive days from the date of the second warning without further misconduct the second warning entered in his employment record shall be cancelled.

28.SUSPENSION

a) Where an employee is suspected of having committed an offence which needs further investigation, the employee shall be suspended pending the conclusion of such investigations.

b) A suspended employee shall be entitled to payment of half salary for the period of suspension.

c) Under normal circumstances suspension shall not exceed two months.

d) An employee whose case is subject to investigation by the Police or is out on Court Bond/Bail pending the conclusion of the investigation or court case shall not be allowed to carry out his normal duties.

e) An employee who is on suspension shall be reinstated and paid for the whole period of suspension if no offence is proved against him.

29.RETIREMENT GRATUITY

An employee who has served the Company for five years and/or over is retired shall be given the normal notice of termination and paid all other terminal benefits and in addition he shall be paid nineteen (19) days salary for every completed year of service.

30.FUNERAL EXPENSES

The company shall contribute 18,000/- towards funeral expenses of an employee who dies while on employment.

31.MEDICAL EXPENSES

Medical treatment rules to apply.

32.INJURY BY ACCIDENT

An employee who is injured by accident arising in the course of his/her employment shall be entitled to compensation in accordance with the provisions of the Workmen’s Compensation Act of the Laws of Kenya.

The employers and the Trade Union having arrived at the Agreement set forth therein, the undersigned official hereby declare that the foregoing in the Agreement arrived at and affix their signature thereto.

33.AGENCY FEES

Deduction of Agency Fees from employees who enjoy the benefits of this Collective Bargaining Agreement shall be done in accordance with Section 49 of the Labour Relations Act of 2007.

SIGNED FOR AND ON BEHALF OF:

COMPANIES

...................................................................................

ANIL KAPILAMAJOR M.N. KINYUA

GENERAL MANAGEROPERATIONS MANAGER

SIGNED FOR AND ON BEHALF OF:

KENYA UNION OF COMMERCIAL, FOOD AND ALLIED WORKERS

..................................................................................

CLLR DAVID LUTTA GEORGE OTENG’O

ASS. SECRETARY GENERALSHOPSTEWARD

............................................

JOSEPH NJOROGE NJAU

SHOPSTEWARD

WITNESSED BY:

................................... ....................

G. R AMBUCHE

INDUSTRIAL RELATIONS OFFICER

FEDERATION OF KENYA EMPLOYERS

SIGNED AT NAIROBI THIS ............. DAY OF ................. 2012

/jan

APPENDIX 'A'

•Grade 'A'

Cashier

Artisans with Grade I

•Grade 'B'

Projectionist

Artisans with Grade II

•Grade 'C'

Assistant Projectionist

Telephone Operator

Receptionist

Driver 1

Artisans with Grade III

•Grade 'D'

Driver II

Fundi without Grade Test

Booking Attendant

Barman

Catering Attendant 1

•Grade 'E'

Cinema Attendant

Catering Attendant II

Watchman

•Grade 'F'

Messenger

Cleaners

Gardener/Shambaman

Fox Theatres Ltd, Queensway Properties Limited, Springfield Properties Ltd, Thika Road Properties Ltd - 2012

Start date: → 2012-01-01
End date: → 2014-01-01
Name industry: → Entertainment, culture, sports, Real estate, renting, call centres
Public/private sector: → In the private sector
Concluded by:
Name company: → Fox Theatres Ltd
Name company: → Queensway Properties Limited
Name company: → Springfield Properties Ltd
Name company: → Thika Road Properties Ltd
Names trade unions: → Kenya Union of Commercial Food and Allied Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 33 %
Maximum days for paid sickness leave: → 80 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: → Yes
Prohibition of discrimination related to maternity: → No
Prohibition to oblige pregnant or breastfeeding workers to perform dangerous or unhealthy work: → 
Workplace risk assessment on the safety and health of pregnant or nursing women: → 
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → 
Time off for prenatal medical examinations: → 
Prohibition of screening for pregnancy before regularising non-standard workers: → 
Prohibition of screening for pregnancy before promotion: → 
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: → 1 days
Paternity paid leave: → 14 days

EMPLOYMENT CONTRACTS

Trial period duration: → 180 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 week: → 48.0
Paid annual leave: → 24.0 days
Paid annual leave: → 4.0 weeks
Rest period of at least one day per week agreed: → Yes
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 8580.0
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 5.0 %
Wage increase starts: → 2013-01

Extra payment for annual leave

Extra payment for annual leave: → KES 1400.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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