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MEMORANDUM OF AGREEMENT BETWEEN PEGANT 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 to it, and shall apply to all employees covered by the Recognition Agreement signed between the parties and covered by definition given by the Union's registered constitution.

2. ACTING CAPACITY

An employee who is temporarily appointed or promoted to any acting capacity carrying a higher rate of pay than the job in which he/she is normally employed shall receive the difference between such higher wage and his/her normal wage and shall revert to his/her former rate of pay immediately on reverting to his/her former job provided that such employee has acted in that capacity for a period not less than twenty five days.

3. NORMAL WORKING HOURS

An employee shall normally be required to work, whether on shift or otherwise, a total of 48 hours per week, spread over six days in a week.

4. OVERTIME

An employee who works in excess of the normal number of hours per week, on his/her normal rest days, or on gazetted public holidays will be eligible for overtime at the following rates:

Normal Working Days-Time and a half

Normal Rest Days-Double time

Gazzetted Public Holidays -Double time

NOTE: For the purpose of calculation of overtime, the hourly rate shall be 1/208 of an employee's monthly wage.

5. GAZZETTED PUBLIC HOLIDAYS

a) Employees shall normally be granted leave with full pay on Gazetted Public Holidays, provided that any employee who is required to work on such holiday(s) shall be paid overtime at the appropriate rates stipulated by clause 4 of this agreement.

b) Should an employee's normal rest day fall on a Gazetted public holiday, he/she will be given an additional day off within 14 days from such Gazetted public holiday(s) or be paid double for hours worked.

6. ANNUAL PAID LEAVE

a) An employee shall be entitled to 22 working days paid leave after completion of 12 months service.

b) In the event of the Gazetted Public Holiday(s) falling within the leave period such public holiday shall be added to the leave entitlement.

7. COMPASSIONATE LEAVE AND LEAVE OF ABSENCE

An employee desirous of leave on compassionate grounds shall with prior arrangement with the employer be granted such leave and shall be subsequently set off against his/her annual leave. The leave shall be normally paid.

8. SICK LEAVE

An employee will be granted 35 days with full pay and further 20 days with half pay in any one calendar year.

9. INJURY BY ACCIDENT

In the case of accident covered by the Work Injury Benefits Act, the work Injury Benefits Act shall apply.

10. MATERNITY/PATERNITY LEAVE

A woman employee shall be entitled to maternity leave with full pay as provided for by the employment act 2007.

A male employee shall be entitled to 14 days paternity leave.

11. MEDICAL TREATMENT

The company undertakes to pay the cost of medical treatment and medical expenses in accordance with the provisions prescribed by the law of Kenya relative to employment of persons medical treatment rules. The payment of the medical expenses will be made to those covered by the act and treatment carried out in the Government or Local Authority Hospitals.

12. DEFINITION OF EMPLOYEES

It is understood and agreed that the word 'employee' in this agreement shall cover all employees regardless of sex unless specifically stated otherwise.

13. PROBATION PERIOD

All employees shall be considered to be under probation for a period not exceeding three months from the date of engagement, subject to the provisions employment Act 2007.

14. TERMINATION OF EMPLOYEMENT

After the probationary period and in the normal circumstances, employment shall be terminable by either party:-

(a) One month written notice or pay in lieu thereof by either party.

The notice shall be effective from any day of the month, failing which, there shall be paid by the party terminating the contract without notice wages equivalent to the notice period applicable in lieu of the notice.

b) Nothing in paragraph (a) of this clause shall prejudice the right of either party to terminate a contract summarily for lawful cause.

15. CERTIFICATE OF SERVICE

Every employee shall be given a certificate of service by his/her employer up to the termination date of his/her employment unless such employee has continued for a period of not less than 12 consecutive weeks and every such certificate shall contain the following:-

(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 and

(f) Such other particulars as may be prescribed

Subject to sub-section (i) of this section, no employer is bound to give any employee any testimonials reference of certificate relating to the character or performance of an employee. Any employer who willfully or by neglect fails to give an employee certificate of service includes a statement which he/she knows to be false, shall be guilty of an offence.

16. 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 services of an employee are superfluous and the practices commonly known as abolition of office, job or occupation and loss of employment due to Kenyanization of business but it does not include 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 may not be of the same grade. If the alternative employment is not acceptable to the employee concerned, he will be classified as redundant and therefore eligible for entitlement outlined in (f) below:

(c) Consultation

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

(d) Selection of Redundant Employees

In deciding which employees shall be declared redundant, the Company will assess the relative merits ability and reliability of the affected employee, but when these 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

Redundant employees will be given prior consideration by the company should any vacancy arise according to their qualifications.

(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 notice as defined in this agreement.

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

(iii) Prorata leave in accordance with the agreement

iv) Severance pay on the basis of 16 days for each completed year of service.

17. LEAVE TRAVELLING ALLOWANCE

Every employee proceeding on his/her annual paid leave after 12 months continuous service shall be entitled to leave traveling allowance of Kshs. 1,900/= for the first year, Kshs. 2,000/= for the second year and Kshs. 2,100 for the third year.

18. BAGGAGE ALLOWANCE

An employee who is retiring from the company's service at the official age of retirement, retiring on medical grounds, terminated or declared redundant will be entitled to Kshs. 3000/= as Baggage Allowance.

19. GRATUITY/SERVICE BENEFITS

When an employee retires on reaching the normal age of retiring, retiring on medical grounds, or resigns, he/she will be paid as follows:

a) Severance pay on the basis of 16 days for each completed year of service.

20. DEATH OF AN EMPLOYEE

The company will give Kshs. 7500/= towards funeral expenses.

21. UNIFORMS AND OVERALLS

An employee who is required to wear uniform or overalls by the nature of his/her work in accordance with the provisions of the factory act, shall be provided with two pairs of uniforms or overalls free of charge by the company yearly. The company shall be responsible for laundering of such uniforms and overalls and where such laundering is impracticable, the company shall supply employees with reasonable washing materials or one piece of washing soap each month. The company shall have the right to ask for the old uniforms or overalls to be produced. Employees working in mixing and oily sections will be provided with safety shoes.

22. WARNING PROCEDURE.

An employee who is guilty of an offence other than gross misconduct or other lawful cause of dismissal may be given a written warning letter which shall be entered in his/her employment record card and shall remain valid for a period of twelve months from the date of issue. If within the 12 months period, the employee commits a similar offence or any other offence which does not warrant dismissal, he/she shall be issued with a second warning and entered in the employment card and remains valid for 12 months. If within these 12 months period an employee commits a further offence which does not warrant dismissal he/she will be issued with a final letter of warning which will make him/her liable to summary dismissal for any other offence which he/she may commit thereafter.

23. RETIRMENT AGE.

Retirement age of an employee will be 60 years old.

24. HOUSE OF ALLOWANCE.

An employee will be given 15% of his/her basic salary as house allowance.

25. SHIFT ALLOWANCE

An employee shall receive Kshs. 15/- as shift allowance per night.

26. WAGES

Basic Minimum rate of pay (Excluding Housing allowance of each grade for newly recruited employees shall be as stated below).

27. JOB TITLES

2ND YEAR 1ST YEAR 2ND YEAR 3RD YEAR
1ST NOV 2012 NOV 2013 NOV 2014
8% 8% 9%
A

B

C

D

E

F

General work turn boy, sweepers, messengers, sealing packers.

Cook, tea makers, machine assistant, receptionist cum telephone operator

Lab tech, machine attendant, mass production machinist.

Drivers

Maintenance , mechanicals, electricians, heavy commercial vehicles, sales men, printing machine operator

Existing employees salary will be increased as follows

8,417

9,091

9,539

10,890

11,361

8%

9,090

9,818

10,302

11,762

12,270

8%

9,908

10,702

11,230

12,820

13,375

9%

28. EFFECTIVE DATE AND DURATION OF THE_AGREEMENT

This agreement shall be effective from 1st November 2012 and run for three 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 notice of their intention and shall set out in details of the amendment or alteration which such party desires.

SIGNED: FOR AND ON BEHALF OF PEGANT INDUSTRIES LIMITED

……………………………….

P.K SHAH

MANAGING DIRECTOR

……………………………….

JITU SHAH

FINANCIAL CONTROLLER

SIGNED: FOR AND ON BEHALF OF KENYA CHEMICAL AND ALLIED WORKERS UNION

…………………………

WERE DIBO OGUTU, OGW

NATIONAL GENERAL SECRETARY

WITNESSED BY:

………………………

JAMES O. OBURA

AREA SECRETARY

……………………

GEORGE GWAKO

RECRUITMENT/I.R. ASSISTANT

NAIROBI, CENTRAL & EASTERN PROVINCES

……………………………..

DANIEL SILOBA

SHOPSTEWARD

……………………………….

KENNEDY TIEMA

SHOPSTEWARD

IN THE PRESENCE OF

……………………………………………………….

L.W. KARIUKI

HEAD OF INDUSTRIAL RELATIONS SERVICES

FEDERATION OF KENYA EMPLOYERS

DATED AT NAIROBI THIS………………….DAY OF………………………….………2013

/jan

Pegant Limited - 2012

Start date: → 2012-11-01
End date: → 2015-10-30
Name industry: → Manufacturing
Name industry: → Manufacture of paper and paper products
Public/private sector: → In the private sector
Concluded by:
Name company: → Pegant Limited
Names trade unions: → Kenya Chemical and Allied Workers Union

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 25 %
Maximum days for paid sickness leave: → 55 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: → 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: → 48.0
Working days per week: → 6.0
Paid annual leave: → 22.0 days
Paid annual leave: → 3.5 weeks
Paid bank holidays: → Easter Monday, Human Rights Day / Vernal Equinox Day (21st March), Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), Chile Independence Day (18th September), John Chilembwe Day (15th January)
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: → 8.0 %

Premium for evening or night work

Premium for evening or night work: → KES 15.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 1900.0

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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