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MEMORANDUM OF AGREEMENT BETWEEN LABORATORY AND ALLIED LIMITED AND KENYA CHEMICAL AND ALLIED WORKERS’ UNION

1. SUBJECT MATTER

The terms and conditions of employment set out in this agreement shall be observed by the parties referred above and shall apply to all the employees of company covered by the definition given by the Union’s registered constitution and as provided by the Memorandum of Agreement relative to Recognition and within the terms of the Federation of Kenya Employers/Central Organisation of Trade Unions (Kenya) current Agreement.

2. BASIC WAGES AND GRADING

All unionisable employees of the company shall be graded irrespective of sex into grades as classified under Appendix A

3. BASIC MINIMUM RATES

As per attached Appendix A.

4. GENERAL WAGES INCREASES

(a) All unionisable employees will receive a general wage increase as follows:-

Upto 15,000/= - 10% salary increase each year.

Above 15,000/= -9% salary increase each year.

(b) Employees whose present wage or salary is more than the minimum basic wage/rate of pay shown above for their respective grades shall receive the same increment. Any employee who is permanently engaged will be paid not less than the appropriate rate for the grade into which his/her job is classified.

5. HOUSING ALLOWANCE

All employees irrespective of grade shall receive a uniform house allowance of 18% of their respective Basic Wage/rate per month.

6. EMPLOYEES IN ACTING CAPACITY

An employee who is temporarily appointed to any acting capacity shall receive such rate of pay where such acting capacity carries a higher rate of pay than the job in which he/she is employed and shall revert to his/her rate of pay immediately on reverting to his/her former job. The employee appointed to such acting capacity shall be confirmed on completion of six months.

7. WORKING HOURS

An employee shall normally be required to work, whether on shift or otherwise a total of forty five (45) hours per week exclusive of meal breaks provided that an employee who is required to work in excess of such normal working hours, shall be paid for such excess hours at the appropriate overtime rates as provided for by Clause 8 of this agreement.

8. OVERTIME

Overtime rates shall be as follows for all regular employees:-

(a) For hours worked in excess of normal working hours set out in Clause 7 – time and half.

(b) For hours worked on normal rest days and gazetted public holidays – double time.

9. GAZETTED PUBLIC HOLIDAYS

An employee shall normally be granted leave with full pay on gazetted public holidays, provided that an employee who is required to work on such holidays shall be paid double time in respect of such hours worked.

10. ANNUAL PAID LEAVE

(a) An employee who has not served one full year shall be granted proportionate leave. An employee who has not served one full year shall not be granted Leave Travel Allowance.

(b) An employee who has served the company for a period of twelve months, leave shall be provided as follows:-

1 year to 5 years-24 working days

Over 5 years-26 working days

(c) The date of the employee’s leave entitlements shall be the anniversary date of his/her employment with the company.

(d) The annual leave will be taken with the consent of both parties in accordance with the requirement of the company to facilitate laid down production programme.

11. SICK LEAVE

After completion of probationary period, an employee shall be entitled to sick leave with full pay to a maximum of 75 days and thereafter to sick leave up to a maximum 75 days on half pay in each twelve months consecutive service, provided that such employee produces to the employer, a certificate of incapacity, covering the leave period claims, signed by the Registered Medical Practitioner approved by the Company or the same certificate counter signed by approved Medical Practitioner of the company.

12. INJURY BY ACCIDENT

In the case of accident covered by the Work Injury and Benefits Act, 2007, full pay will be given to the employee, and where the Act requires the payment of half during a certified period of temporary disability, an employee shall be paid by the Company his/her wages/salaries accordingly.

13. COMPASSIONATE LEAVE AND LEAVE OF ABSENCE

(a) An employee desirous of taking leave on compassionate grounds shall, by prior arrangement in writing with the Company be granted such leave up to his/her earned entitlement under Clause 10 of this agreement and the leave taken shall be subsequently set off against his/her annual leave.

(b) An employee may in addition to the leave provided for in paragraph (a) of this Clause be granted five days compassionate leave without pay in any one year.

14. UNIFORMS, OVERALLS AND PROTECTIVE CLOTHING

An employee who is required to wear uniform or overall or by nature of his/her work or in accordance with the Factories Act and Good Manufacturing practices of the Company shall be issued with two pairs of uniforms or overalls free of charge by the Company. Such uniforms or overalls shall be replaced with new pairs immediately when worn out. The Company shall be responsible for laundering such uniforms and overalls. However, it is also the responsibility of the employee to ensure proper care in looking after the uniforms and not subjecting them to destruction by any means. Failure to wear uniforms in the factory will be regarded as a serious and punishable offence.

15. SERVICE BENEFITS/GRATUITY

Gratuity shall be paid to employees on normal termination, normal retirement on medical grounds and early retirement.

Will be paid as follows:-

One year to 10 years-16 days for each completed year

Over 10 years-22 days for each completed year

16. SAFARI ALLOWANCE

Where an employee is required by the company to spend a night away from his/her regular place of work, an employee shall be entitled to the following:-

(a) Breakfast -Kshs. 110.00

(b) Lunch-Kshs.160.00

(c) Dinner-Kshs.160.00

(d) Accommodation-Kshs.550.00

17. MATERNITY LEAVE/PATERNITY LEAVE

Female employees with effect from December, 2007 shall be entitled to three months’ maternity leave with full pay provided that:-

(a) A female employee who has taken three months maternity leave shall not forfeit her annual leave in that year.

(b) Childbirth in respect of a female employee shall not be deemed to be sickness as provided for under Clause 11 of this Agreement.

(c) A male employee shall be entitled to two weeks’ paternity leave.

18. MEDICAL TREATMENT

The Company undertakes to pay the cost of such medical treatment and medical expenses in accordance with the provisions prescribed by the Laws of Kenya relative to Employment of Persons – Medical Treatment Rules. The payment of medical expenses will be made to all employees of the company, provided that such illness is that covered by the Act, and treatment carried out in government Hospitals or Local Authority Health Centres.

19. CASUAL EMPLOYEES

As per the New Labour Laws.

20. TERMINATION OF EMPLOYMENT

Except where an employee is summarily dismissed for gross misconduct or other lawful cause as prescribed for in the Employment Act and provided the probationary period has been completed, either party will be required to give the following notices:-

(a) After completion of one to five years continuous service, one month’s notice or one month’s pay in lieu of such notice.

(b) On completion of five years and above with the company, two month’s notice or two months’ pay in lieu of such notice.

21. WARNING PROCEDURE AND EMPLOYEE’S RESPONSIBILITIES

(a) An employee who is guilty of an offence other than of gross misconduct or other lawful cause of dismissal may be given warning which shall be recorded in his/her record card or history and which he/she will be required to sign. The signature or initial of an employee in history record card shall not mean that the employee pleads guilty of the offence recorded against such employee, but simply to confirm that such warning in accordance with the procedure laid down by the Recognition Agreement between the Company and the Union. An employee who receives three such warnings may be liable to summary dismissal if the offence or any other lawful cause of which he/she seemed to be guilty is repeated provided such warnings shall be erased from the history record card of any employee after a period of twelve months from the date of such last warning being to an employee.

(b) All employees will adhere to the Government of Kenya Laws as employees of a Pharmaceutical Manufacturing Company, employees’ responsibilities are greater than any other trade or ethics, the Kenya Pharmacy and Poisons Act, Good Manufacturing Practices (GMP) and other legislation relating to the manufacturer of drugs has to be observed strictly. In performing their duties, all employees are required to strictly adhere to the Good Manufacturing Practices and the Company policies relating to the manufacture, packing, storage and handling of all company property including stocks, record fixed assets etc and all employees are expected to be mindful of the well-being and welfare of the company.

(c) All employee of the Company will NOT either during the course of the continuance or termination of employment, disclose secrets and confidential matters to anyone without written consent of management. Classified material or indeed any property belonging to the Company may not be taken out of the Company premises without prior written consent of the management.

(d) All employees are required to be familiar with the Company’s rules and Good Manufacturing Practices as well as any other amendments to the same which may from time to time be issued by the company, as well as rules and practices shall form the terms and conditions of appointment and employment.

(e) Any contravention of the Employment Act, 2007 will constitute as gross misconduct.

22. CERTIFICATE OF SERVICE

1. Every employee shall be given a certificate of service upon the termination of his/her employment unless the employment has continued for a period of less than four consecutive weeks and every 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 employment

(e) The date when employment ceased

(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 testimonials, reference or certificate relating to the character or performance of an employee.

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

23. PROBATION

An employee shall be considered to be on probation for a period not exceeding three months from the date of engagement and during this time an employee will be subjected to one week’s pay in lieu of such notice. The period of probation can be extended as the case may be.

24. REDUNDANCY

(a) Definition

“REDUNDANCY” means loss of employment, occupation, job or career by involuntary means through no fault of an employee involving termination of employment at the initiative of the employer where the service of an employee are super flous and the practices known as abolition of office, job or occupation and loss of employment due to the Kenyanisation of business but it does not include any such loss of employment by domestic servant.

(b) Alternative Employment

In an effort to avoid redundancy, the Company will endeavour to arrange suitable alternative employment within the Company. This employment may not be of the same grade. If the alternative employment is not acceptable to the employee concerned, he/she will be classified as redundant and therefore, eligible for entitlements outlined in Clause (f) below.

(c) Consultation

In the event of redundancy, the company undertakes to hold prior discussions with the Union concerning the reasons for and the extent of the intended redundancy.

(d) Selection of Redundant Employees

In deciding which employee to be declared redundant, the Company will assess the relative merits, ability and reliability of the affected employees, but when the factors are equal; the discharge will be on the basis of seniority. Membership or non-membership of the Union will not be a factor.

(e) Re-Engagement

The company will give redundant employees prior consideration should any vacancy arise, qualifications will be taken into account when considering such.

(f) Entitlement of Redundant Employees

In the event of an employee being declared redundant, he/she shall be entitled to the following:-

(i) The normal notices as defined in the agreement.

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

(iii) Pro-rata leave entitlements in accordance with the agreement

(iv) Severance pay at the rate of 26 days pay for each completed year of service.

25. LEAVE TRAVELLING ALLOWANCE

An employee, who shall be going on his/her annual leave, shall be entitled to leave travelling allowance of:-

1st year- Kshs.3,000.00

2nd year-Kshs.3,000.00

26. BAGGAGE ALLOWANCE

Permanent Employees who leave the Company’s service on redundancy, retirement, invalidation under medical grounds and death shall be entitled to payment of baggage allowance of Kshs.2,700.00.

27. FUNERAL EXPENSES

The Company shall provide Kshs.14,500.00 to cater for funeral expenses of an employee who dies while in the service of the Company.

28. SHIFT ALLOWANCE

Employees working from 6.00 p.m. to 8.00 a.m. shall be paid Kshs.55.00 for that period per person.

29. EFFECTIVE DATE AND DURATION OF THE AGREEMENT

The Agreement shall be effective from 1st November 2012 and shall remain in force for a period of 2 years and thereafter until it is amended by mutual agreement between the Company and the Union provided that the party desiring to amend the Agreement shall give one month’s notice of their intention and shall set out in details the amendments or alteration which such party desires.

SIGNED:

FOR AND ON BEHALF OF THE COMPANY:

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

MANESH PATEL

MANAGING DIRECTOR

FOR AND ON BAHALF OF THE UNION:

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

WERE DIBO OGUTU, OGW

NATIONAL GENERAL SECRETARY

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

JAMES O. OBURA

AREA SECRETARY – NAIROBI, CENTRAL & EASTERN PROVINCES

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

PETERLIS OKEMO

SHOPSTEWARD

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

ANDREW MUHATIA

SHOPSTEWARD

IN THE PRESENT OF:

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

L. W. KARIUKI

HEAD OF INDUSTRIAL RELATIONS SERVICE

FEDERATION OF KENYA EMPLOYERS (FKE)

Signed at Nairobi this ......................... Day of ....................................... 2013

APPENDIX A

NEW EMPLOYEES

S.N
OCCUPATION OLD EMPLOYEES IN SERVICE

FROM 31/10/2012

KSHS.

EMPLOYEES IN SERVICE

FROM 1/11/2012

KSHS.

EMPLOYEES IN SERVICE

FROM 1/11/2013

KSHS.

1 General labourer including cleaner, sweeper, gardener, children’s ayah, house servant, day watchman, messenger 13,177.00 14,495.00 15,945.00
2 Miner, stone turn boy, waiter, cook, logger, line cutter 14,231.00 15,654.00 17,063.00
3 Night watchman 14,705.00 16,176.00 17632.00
4 Machine attendant, sawmill sawyer, machinist, assistant mass production machinist, shoe cutter, bakery worker, bakery assistant, tailor’s assistant 14,934.00 16,427.00 17,905.00
5 Machinist (made to measure), shoe upper preparer, chaplis maker, vehicle service (petrol and service station), bakery plant hand, laundry operator, junior clerk, wheeled tractor driver (light) 17,038.00 18,571.00 20,242.00
6 Printing machine operator, bakery operator, sawmill dresser, shop assistant, machine tool operator, dough-maker, table hand baker or confectioner, copy-typist, driver (cars and light vans) 17,781.00 19,381.00 21,125.00
7 Pattern designer ( draughtsman), garment and dress-cutter, single hand oven man, charge-hand baker, general clerk, telephone operator, receptionist, storekeeper 20,300.00 22,127.00 24,118.00
8 Tailor, driver (medium sized vehicle) 23,095.00 25,174.00 27,440.00
9 Dryer, crawler tractor driver, salesman 24,700.00 26,923.00 29,346.00
10 Saw doctor, caretaker (building) 27,336.00 29,796.00 32,478.00
11 Cashier, driver (heavy commercial vehicle), sales man driver 29,748.00 32,425.00 35,343.00
12 Ungraded artisan

Artisan grade III

Artisan II

Artisan I

17,781.00

22,373.00

24,700.00

29,748.00

19,381.00

24,387.00

26,923.00

32,425.00

21,125.00

26,582.00

29,346.00

35,343.00

Laboratory And Allied Limited - 2012

Start date: → 2012-11-01
End date: → 2014-10-31
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Laboratory And Allied Limited
Names trade unions: → Kenya Chemical and Allied Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 63 %
Maximum days for paid sickness leave: → 150 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: → 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: → 5 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
Paid annual leave: → 24.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Good Friday, Easter Monday, Idd – ul – Fitr, Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), Chile Independence Day (18th September), Madaraka Day
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → No
Wages specified according to skill level: → 1
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 13177.0
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 10.0 %

Premium for overtime work

Premium for overtime work: → KES 1.5 per hour overtime

Meal vouchers

Meal allowances provided: → No
Free legal assistance: → 
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