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MEMORANDUM OF AGREEMENT

BETWEEN

KENYA SEED COMPANY LIMITED TOGETHER WITH DEACONS (K) LIMITED, ALLIED INDUSTRIES

AND

KENYA UNION OF COMMERCIAL FOOD AND ALLIED WORKERS (K.U.C.F.A.W)

TERMS AND CONDITIONS OF SERVICE

PREAMBLE

The terms and conditions of employment set out in this agreement shall be observed by both parties and shall apply to all unionisable employees of Kenya Seed Company Limited, Deacons (K) Limited and Allied Industries, members engaged in retailing, franchise agency dealerships marketing and distribution of goods.

1. PROBATION PERIOD

Employees in categories 1 - 3 inclusive shall be regarded as on probation for one month. All persons engaged in category 4 and above shall be on probation for three months.

During the first one month of probation, the contract may be terminated by the employer or employee by giving 48 hours' notice or pay in lieu of such notice.

During the second and third months of probation, the contract may be terminated by the employer or employee by giving seven consecutive days' notice or pay in lieu of such notice.

Both appointment on probation and subsequent confirmation shall be in writing.

2.WORKING HOURS

The normal working week shall consist of 42½ hours (exclusive of meal breaks), provided that the normal working week for Shop Assistants and Shop Workers shall be of 45 hours (exclusive of meal breaks).

This clause shall not apply to Watchmen. The hours for Day Watchmen shall be 52 hours per week and those fro Night Watchmen should be 60 hours per week.

Provided that where an employee shall be required to work hours in excess of those stipulated then he shall be remunerated in accordance with the succeeding clause.

3.OVERTIME PAYMENTS

Overtime shall be paid as follows: -

a) For the time worked in excess of the normal working hours per week: time and a half per hour.

b) For the time worked on statutory Public Holidays and on rest days: double time per hour.

4.SAFARI ALLOWANCE

A safari allowance shall be paid as follows to employees who travel on the employer's business:-

Breakfast- Kshs. 350/=

Lunch- Kshs. 600/=

Dinner- Kshs. 600/=

If, in addition where an employee has to spend a night out he/she shall get an extra Kshs. 2,200/= for accommodation.

Provided that where arrangements have been made to provide the employee with meals and/or accommodation no allowance shall be paid.

5.HOUSING

a) With effect from 1st December, 2012, all employees shall be entitled to Kshs. 9,500/= per month during the period of this Collective Bargaining Agreement.

b) Should an employee be in occupation of a company house then one month's notice of intention to terminate the employee's contract shall be deemed to include notice to quit the employer's accommodation not later than the time of expiry of the notice of termination of employment.

In the event of an employee being subject to summary dismissal, or being paid one month's pay in lieu of notice to terminate the contract, then he shall vacate the accommodation provided by the employer within seven days of receiving such notice.

c) An employee serving on probation shall vacate accommodation provided by the employer, within seven days of the expiry of his contract.

6.SICK LEAVE

An employee shall be entitled in any twelve months to sixty days sick leave on full pay and to the next sixty days of sickness on half pay.

Provided that sick leave shall not be granted:-

a) In the absence of a registered medical practitioner confirming the need for such sick leave; and

b) Where the sickness or injury arises through the employee's own neglect or misconduct.

7.INJURY

In all cases involving injury sustained while on normal duties, the requirements of the Work Injury Benefits Act 2007 shall apply.

8.MATERNITY LEAVE

A female employee shall be entitled to three months' maternity leave with full pay provided that a woman who has three months' maternity leave shall not forfeit her annual leave in that year and she shall be entitled to her leave travelling allowance for that year.

A male employee shall be entitled to two weeks paternity leave with full pay.

9.ANNUAL LEAVE

On completion of twelve months' continuous service, employees will be entitled to their annual leave as follows:

1st year of service – 24 working days inclusive of Saturdays

1-3 years of service – 26 working days inclusive of Saturdays

3-5 years of service – 28 working days inclusive of Saturdays

5 or more years of service - 30 working days inclusive of Saturdays

10.LEAVE TRAVELLING ALLOWANCE

All employees shall be entitled to Kshs. 9,500/= per annum within the period of this Collective Bargaining Agreement when proceeding on annual leave. This shall also apply to female employees proceeding on maternity leave.

11.COMPASSIONATE LEAVE

Compassionate leave shall be granted at the discretion of the employer. Such leave will not be unreasonably refused.

12.RELIGIOUS HOLIDAYS

Members of various religious beliefs shall be entitled to religious holidays which are gazetted by the Government as Public Holidays.

13.TRANSFER AND DISTURBANCE ALLOWANCE

Where an employee is permanently transferred from one centre to another geographical location outside a radius of 25 miles for the continuance of his employment, the employer shall bear the travelling costs of the employee, his or her spouse, their natural offspring and personal effects to the new place of employment plus Kshs. 11,600/= (shillings nine thousand five hundred only).

14.ACTING ALLOWANCE

An employee who is required in writing to act in a category of employment of a higher position than his substantive employment and is able to assume the entire function and responsibility of the higher position shall be granted an acting allowance. The allowance shall not be less favourable than the difference between the minimum basic wages of the employee's substantive position and grade on which he is required to act. No period of less than 14 consecutive days shall qualify for this allowance.

Where an employee has acted in a higher vacant position for a period of three consecutive months, he should be considered for confirmation in that position. In the event of him not being confirmed in that position, he shall be given reasons why he was not confirmed.

15.PROMOTION TO ANOTHER GRADE

Although promotion is a management prerogative, where vacancies of a promotional nature arise, the employer shall give first consideration to existing employees within a department or group in which the vacancy occurs taking qualification, merit, ability, experience and length of service into consideration.

16.REDUNDANCY

Where employees are to be declared redundant, the employer shall notify the Union and the Labour Officer of the area of the reasons for and the extent of the intended redundancy, not less than one month prior to the date of the intended termination on account of redundancy.

In addition to any other provision of this agreement to which a redundant employee may be entitled then:-

a) An employee shall be paid severance pay on redundancy at the rate of 28 days pay for every completed year of service.

b) Where a Provident Fund Scheme is in operation an employee on redundancy shall be entitled to the employer's contribution irrespective of the fact whether or not the employee is entitled to the total so arrived at is less than (a).

17.WARNING PROCEDURES

If an employee commits an offence which in the opinion of the company does not warrant dismissal, such employee shall be warned in writing.

The following procedure will be followed:-

a) The 1st and 2nd warnings will be recorded on his/her record.

b) If an employee with two warnings on his record commits a third offence within 365 consecutive days from the date of the 2nd warning, such employee shall liable to termination.

c) If an employee completed 365 days from the date of the last warning without any further offence the warning letter shall be expunged from his record.

d) Copies of the 1st and 2nd letters of warning shall be sent to the Shopsteward and the Union.

18.TERMINATION OF SERVICE

Established employees of up to five years service shall be subject to not less than one month's notice of termination of employment or one month's gross salary pay inclusive of house allowance in lieu. On resignation the employee shall give one month’s notice or pay one month’s gross salary inclusive of house allowance in lieu.

Established employees with more than five years but up to 10 years service shall be subject to two month's notice or two months gross salary pay inclusive of house allowance in lieu and on resignation shall give two months notice or pay two months salary in lieu.

Established employees with more than 10 years' service shall be subject to three months notice or three months pay in lieu and on resignation shall give three months notice or pay three months gross salary inclusive of house allowance in lieu.

Such notices shall be in writing. The foregoing shall not be construed so as to derogate the right of the employer from dismissing an employee summarily for due and just cause or to issue warnings.

19.CERTIFICATE OF SERVICE

Where an employee leaves the company's service such employee shall be issued with a certificate of service detailing position held, length of service etc.

20.PROVIDENT FUND, PENSION, GRATUITY AND OTHER RETIREMENT BENEFITS

a) Employees will be entitled to the following gratuity:-

i.1-5 completed years - 16 days’ pay for each completed year of service

ii.Over 5 completed years of service - 23 days’ pay for each completed year of service

b) The employees’ years of service for this scheme will be counted from 1st December 1990.

c) An employee who loses his job due to gross misconduct will not be entitled to benefit from this scheme.

d) Where an employee has a Provident or Pension Fund, an employee will be entitled to benefit from such a Fund or this gratuity whichever is more favourable. Provided that for purpose of comparison the employers’ contribution only will count.

21.MEDICAL

All employees shall be entitled to medical treatment obtained within Kenya as provided by the company medical scheme.

22.COMMUTER ALLOWANCE

All employees shall be entitled to payment of commuter allowance of Kshs.2,000/-per month.

23.MINIMUM WAGES/SALARIES EXCLUDING HOUSING ALLOWANCE DURING THE DURATION OF THE AGREEMENT

Job title

Minimum Wage w.e.f. 1/12/2012

1.Labs – Ordinary including

Sweepers, Cleaners, Shop staff

And others not specified below

11,015.00
2.Office Messenger 11,015.00
3.Heavy Duty Labourers 10,927.00
4.Watchman 11,451.00
5.Artisan Unqualified 11,888.00
6.Headman 11,965.00
7.Mechanical Messengers 12,021.00
8.Drivers - Light 12,021.00
9.Drivers – Medium 13,801.00
10.Drivers – Heavy 18,338.00
11.Headman – Senior 13,654.00
12.Qualified Artisan/Mechanic

(Grade III TTC)

14,840.00
13.Qualified Artisan/Mechanic

(Grade II TTC)

17,424.00
14.Qualified Artisan/Mechanic

(Grade I TTC)

21,290.00
15.Grade I (Telephone)

Switchboard Operators

15,831.00
16.Grade II (Telephone)

Switchboard Operators

15,060.00
17.Grade III (Telephone)

Switchboard Operators

17,424.00
18.Salesmen

(a)Grade I whilst on 3 months

Probation

12,323.00

(b)If confirmed in appointment

for next 3 months

13,577.00
(c)After 6 months satisfactory

Service

14,840.00
19.Grade II 16,307.00
20.Grade III 18,318.00
21.Grade IV 18,014.00
22.Grade V 22,163.00
23.Shop assistants/counter

Salesmen

(a)Trainee (on first appointment)

12,759.00

(b)After 3 months on successful

Completion of training period

12,235.00
(c)After 6 months on completion

And hereafter

13,309.00
24.Clerical employees/Junior

Clerks Grade I (cover probation

Clerks and confirmed clerks)

(a)On probation for 3 months

12,759.00

(b)Clerks confirmed 13,010.00
25.Clerk II 14,609.00
26.Clerk III 16,147.00
27.Clerk IV 16,584.00
28.Clerk V 17,427.00
29.Clerk VI 20,027.00
30.Clerk VII 21,727.00
31.Clerk VIII 22,705.00
32.Typist Grade I 14,587.00
33.Typist Grade II 16,307.00
34.Typist Grade III 18,318.00
35.Typist Grade IV 20,027.00
36.Typist Grade V 23,840.00
Accounting Machine Operators
37.Grade I 16,584.00
38.Grade II 18,318.00
39.Grade III 20,027.00
40.Grade IV 22,130.00

24.WAGE AND SALARY INCREASE

i) All unionisable employees who were in employment on 30th November, 2012, will be awarded a salary increase of 12% on their salaries as at that date with effect from 1st December, 2012.

ii) All unionisable employees who shall be in employment on 30th November, 2013 will be awarded a salary increase of 12% on their wages as at that date with effect from 1st December, 2013.

25.EFFECTIVE DATE AND DURATION

This agreement shall come into force with effect from 1st December, 2012 and shall remain in force for a period of two years from that date.

Thereafter the agreement shall continue in force, until such time as either party by giving of three months notice in writing shall signify their wish to terminate or amend this agreement.

SIGNED:

FOR AND ON BEHALF OF DEACONS (K) LIMITED

……………………

MUCHIRI WAHOME

CHIEF EXECUTIVE OFFICER

…………………..

FREDRICK NG’ANG’A

HUMAN RESOURCES OFFICER

FOR AND ON BEHALF OF KENYA SEED LIMITED

……………………

T.M. NGIRA

HR & ADMINISTRATION MANAGER

…………………..

STEPHEN MALAKWEN

CHIEF HUMAN RESOURCES OFFICER

SIGNED:FOR AND ON BEHALF OF THE KENYA UNION OF COMMERCIAL FOOD AND ALLIED

WORKERS

…………………………….

CHARLES EGESA

DEPUTY SECRETARY GENERAL KUCFAW

………………….

BENEDICT KIPKOSGEI MARITIM

SIMLAW SEEDS

………………….

RICHARD NDOMBI OWINYO

KENYA SEED COMPANY LIMITED – KITALE

………………….

JAPHETH RONOH

DEACONS (K) LIMITED

IN THE PRESENCE OF:

….………….............

DAN OMONDI

EXECUTIVE OFFICER

FEDERATION OF KENYA EMPLOYERS

SIGNED IN NAIROBI THIS 19TH DAY OF DECEMBER 2012

Deacons (K) Limited, Kenya Seed Company Limited - 2012

Start date: → 2012-12-01
End date: → 2014-12-01
Name industry: → Agriculture, forestry, fishing
Public/private sector: → In the private sector
Concluded by:
Name company: → Deacons (K) Limited
Name company: → Kenya Seed Company Limited
Names trade unions: → Kenya Union of Commercial Food and Allied Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 50 %
Maximum days for paid sickness leave: → 120 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: → Yes
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: → No provision 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: → 42.5
Working days per week: → 6.0
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: → 
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 12.0 %
Wage increase starts: → 2013-11

Extra payment for annual leave

Extra payment for annual leave: → KES 9500.0

Premium for overtime work

Premium for overtime work: → 150 % of basic wage

Allowance for commuting work

Allowance for commuting work: → KES 2000.0 per month

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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