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MEMORANDUM OF AGREEMENT BETWEEN KAREN PROVISION STORES LIMITED THE KENYA UNION OF COMMERCIAL, FOOD AND ALLIED WORKERS IN THE MATTER OF WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT

The company and the union meeting together in a free heart and voluntary association, agree and enter into foregoing agreement negotiated between them at the Joint Negotiating Committee.

1 (A) BASIC MINIMUM WAGES (EXCLUSIVE OF HOUSE ALLOWANCE)

1st Year

1.7.2013

Kshs p.m.

1st Year

1.7.2013

Kshs p.m.

Category 1:
General labourer

including cleaner

and sweeper

10,700 10,870
Category 6:
Shop Assistant, dough maker,

Driver (cars and light vans)

14,530 14,630
Category 7:
Baker, general clerk) 16,580 16,680
Category 11:
Cashiers 24,288.05 26,726.86

1. (B) WAGE INCREASE

All Unionisable employees in the employment of the company, who are confirmed in their appointment as at 30th June, 2013 will receive a wage increase of 12% from 1st July, 2013 to cover the first year. All unionisable employees in the employment of the company, who are confirmed in their appointment as at 30th June 2014 will receive a wage increase of 12% from 1st July 2014 to cover the second year.

2. HOUSE ALLOWANCE

Every unionisable employee who is not provided with free accommodation by the employer will be entitled to a monthly house allowance 20% of his basic salary, subject to a minimum of Kshs.2,500/-.

3. PROBATION PERIOD

(a) All employees shall be required to serve a probation period of three months before being confirmed in the appointment. During such period the employment may be terminated by either party by giving 14 days notice in writing or pay in lieu of notice.

(b) On initial appointment an employee shall be issued with a letter of appointment detailing terms and conditions of his employment.

4. HOURS OF WORK

The normal working week shall consist of 45 hours spread over a period of six days.

(a) An employee shall be entitled to not less than one rest day each week.

5. PAYMENT OF OVERTIME

Authorized overtime shall be payable at the following rates:

(a) For time worked in excess of the normal number of hours per week, as specified in paragraph 4 above, at one and a half (1½) times the normal hourly rate.

(b) For time worked on the employee's normal rest day and Gazetted Public Holidays, at double the normal rate.

(c) For the purposes of computing payment for overtime work, the hourly rate shall be 1/195 and multiplied by the monthly salary for all employees.

6. ANNUAL LEAVE

After each period of twelve month's continuous service with the company, an employee shall be entitled to annual leave of twenty four days (24) working days with full pay on the anniversary date of the employee's employment. Where employment is terminated after the completion of two or more consecutive month's service, the employee will be entitled to two days leave with full pay for each completed month of service. The employee shall receive pay in lieu of such leave.

7. SICK LEAVE

After the probationary period, and subject to production of a medical certificate signed by an approved medical practitioner or a company- appointed doctor, an employee will be entitled to sick leave in any one year as follows:-

(i) 35 days with full pay

(ii) 30 days with half pay

8. MATERNITY LEAVE

(a) A woman employee shall be entitled to maternity leave with full pay as provided by the Employment Act 2007.

(b) Paternity leave for male employees shall be as provided by the Employment Act 2007.

9. COMPASSIONATE LEAVE

(a) An employee desiring to take leave on compassionate grounds shall by prior arrangements with the company be granted 7 days leave and the leave taken shall not be off set from his/her annual leave.

(b) An employee may in addition to leave provided in sub-paragraph (a) of this paragraph be granted ten day's (10) compassionate leave without pay in any one year.

10. UNIFORMS

Employees who are required by the Company to wear uniforms shall be issued with two pairs of such uniform in each year. Provided that:-

(a) The employee shall wear his/her uniform at all times while on duty unless directed otherwise by the employer.

(b) The employee shall not wear his/her uniform at any other time other than when proceeding to or from duty without the express permission from the company.

(c) The laundering of uniforms shall be at the Company's expense. The employee will nevertheless maintain the uniform in a tidy and clean condition.

11. PROTECTIVE CLOTHING

Protective clothing will be provided in accordance with the provisions of the Factories Act.

12. MEDICAL TREATMENT

The employer shall identify quality clinics, hospitals for his employees to attend.

Medical Treatment Rules to apply as per the Employment Act 2007. The employer shall identify quality clinics and hospitals for referral of his employees

13. REDUNDANCY

Where the employment of an employee is to be terminated on account of redundancy, the following shall apply; the company shall, one month prior to taking action, inform the Union of the principles that shall apply:-

(a) Intended redundancy giving the reasons for, and the extent of such redundancy. During the notice period, the Union shall reserve the right to make representation to the employer. In any case, all matters concerned with redundancy shall be subject to the procedures stipulated in the Employment Act 2007, Laws of Kenya.

(b) The company shall adopt the principles of "Last in First out" provided that, due regard to seniority in the time, skill, ability, and reliability of each employee belonging to the particular category of employees affected by the redundancy shall be considered.

(c) Any leave due to an employee who is declared redundant shall be paid for in cash.

(d) The redundant employee(s) shall be entitled to notice or pay in lieu of such notice as outlined in Clause 15.

(e) An employee declared redundant shall be entitled to severance pay at the rate of 23 days pay for each complete year of service.

14. WARNING

An employee whose work or conduct is unsatisfactory or commits an offence, which does not warrant instant dismissal, shall be warned in writing and the following procedure shall apply.

(a) The first and the second warning shall be entered in the employee's employment record and the shopsteward of the union informed accordingly.

(b) The second warning shall be copied to the General Secretary of the Union.

(c) If any employee who has received two written warnings commits a third offence he may be liable to termination.

Provided that where an employee completes three hundred and sixty five days, from the date of the second warning without committing further offence, any warnings entered in his employment record shall be cancelled.

15. TERMINATION OF EMPLOYMENT

After the completion of the probationary period, services may be terminable by either party by giving notices as follows:

1 - 4 years- 1 month notice

4 - 9 years - 2 months notice

Over 9 years- 3 months notice

16. SUMMARY DISMISSAL

An employee shall be liable to summary dismissal for gross misconduct defined in the Employment Act, namely:-

(i) If without leave or other lawful cause, an employee absent himself/herself from the place proper and appointed for the performance of his/her work.

(ii) If, during working hours, by becoming or being intoxicated, an employee renders himself unwilling or incapable to perform his work.

(iii) If an employee wilfully neglects to perform any work which it was his duty to have performed, or if he carelessly and improperly performs any work which from its nature it was his duty under contract to have performed carefully and properly.

(iv) If an employee uses abusive or insulting language or behaves in a manner insulting, to his employer or to any person placed in authority over him by his employer.

(v) If, an employee knowingly fails, or refuses, to obey any lawful and proper command which it was within the scope of his duty to obey, issued by his employer or any person placed in authority over him by his employer.

(vi) If in the lawful exercise of any arrest given by or under any written law, and employee is arrested for a cognizable offence punishable by imprisonment and is not within ten (10) days either released on bail or bond or otherwise lawfully set at liberty.

(vii) If, an employee commits, or on reasonable and sufficient grounds is suspected of having committed any criminal offence against or to the substantial detriment of his employer or his employer's property.

17. SALARY ADVANCES

The company agrees to the payment of mid-month advances to those employees who wish, advances should not exceed one half of the net monthly salary of the employee.

18. LEAVE TRAVELLING ALLOWANCE

An employee travelling on his annual leave shall be entitled to a leave travelling allowance of Kshs.2800/= (Two thousand eight hundred shillings.)

19. FUNERAL EXPENSES

(i) In the event of death of an employee, the employer will contribute a sum of Kshs.35,000/= (thirty five thousand shillings). Other expenses to be considered on merit.

(ii) Allow up to two workmates to attend burial.

20. CERTIFICATE OF SERVICE

This shall be dealt with in accordance with the Employment Act 2007, which reads:-

(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 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 the 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 any employee any testimonial reference or certificate relating to the character or performance of an employee.

(3) Any employer who wilfully or by neglect fails to give an employee a certificate of service in accordance with subsection (1) of this section, or this section, or who in a certificate of service includes a statement which he knows to be false, shall be guilty of an offence.

21. LUNCH/MEALS

The custom and practice in place to continue.

22. RETIREMENT

Employees may retire under the following conditions.

(i) Compulsory retirement on attaining 55 (fifty five) years

(ii) Voluntary retirement at the age of 50 (fifty) years

(iii) On certified medical grounds at any age.

23. PAID LEAVE FOR TRADE UNION FUNCTIONS

Provided that the union gives reasonable written notice, the employer shall arrange to release, on full pay, shopstewards who may be required to attend scheduled legitimate meetings or seminars and other specific educational programmes for not more than 7 days in a year. Only two shopstewards at any one time may be released.

24. BONUS

Bonus will be at Management's discretion as per custom and practice in place.

25. ACTING APPOINTMENT

(a) Where an employee is required to perform work in a higher grade than his/her, he/she shall be notified in writing.

(b) If he/she performs for not less than 20 consecutive days, he/she shall be entitled to an acting point of the grade he/she is acting.

(c) If he/she acts continuously in that position for a period of three (3) months he/she shall be confirmed in that position permanently.

Provided that initial probation period may be extended by another 3 months by the employer.

26. PROMOTION

Promotion from one grade to another is not automatic and shall be decided upon by the company taking into account the job done and the employee's educational attainment, length of service and standard of work. Promotion on merit to be considered.

27. GRATUITY

An employee whose services are terminated by the company on the following grounds shall be paid gratuity at the rate of 22 days for each completed year of service;

(1) Retirement

(2) Normal termination

(3) Medical or death

28. AGENCY FEE

This shall be deducted as and when the Minister issues an order.

29. EFFECTIVE DATE AND DURATION

This agreement shall be effective from 1st day of July 2014, 2nd year shall be effective from 1st July 2014. The Agreement shall remain in force for a period of 24 months. There after it shall continue in force until it's amended by mutual agreement between the two parties. Provided that any party wishing to amend it gives the other party one month notice of such intention giving in writing the details of the amendment so required.

SIGNED:FOR AND ON BEHALF OF THE COMPANY

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

SATYAN PATEL

MANAGING DIRECTOR

SIGNED:FOR AND ON BEHALF OF THE UNION

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

BONIFACE M KAVUVI

SECRETARY GENERAL

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

MIKE O. ORANGA

BRANCH SECRETARY

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

PETER M. MUTUA

CHIEF SHOPSTEWARD

IN THE PRESENCE OF ....................................................

L.W. KARIUKI

MANAGER, INDUSTRIAL RELATION SERVICES

FEDERATION OF KENYA EMPLOYERS

SIGNED AT NAIROBI THIS ........................ DAY OF ..................................... 2014

/gnk

Karen Provision Stores Limited - 2014

Start date: → 2014-01-01
End date: → Not specified
Name industry: → Wholesale
Name industry: → Wholesale of food, beverages and tobacco
Public/private sector: → In the private sector
Concluded by:
Name company: → Karen Provision Stores Limited
Names trade unions: → Kenya Union of Commercial Food and Allied Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 28 %
Maximum days for paid sickness leave: → 65 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: → No

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: → 
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: → 7 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 week: → 45.0
Working days per week: → 6.0
Paid annual leave: → 24.0 days
Paid annual leave: → 3.0 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
Provision that minimum wages set by the government have to be respected: → No
Agreed lowest wage per: → Months
Lowest wage: → KES 10700.0
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: →  %
Wage increase starts: → 2013-07

Once only extra payment

Once only extra payment: → 12 %
Once only extra payment due to company performance: → No
Once only extra payment takes place: → 2014-07

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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