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MEMORANDUM OF AGREEMENT

BETWEEN

PELICAN SIGNS LIMITED

AND

AMALGAMATED UNION OF KENYA METAL WORKERS

1.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 covered by the Recognition Agreement and as may be provided for by current Industrial Relations Charter duly signed by both Federation of Kenya Employers and Central Organization of Trade Unions (Kenya).

2.ENGAGEMENT PROBATION AND APPOINTMENT

All persons engaged by the employer shall be on probation in the first instance.

(a) All persons engaged by the employer shall be on probation for a period of 3 months, and within such period the employment can be terminated by either party by giving 7 days notice or pay in lieu of notice of seven days.

(b) However the probation may be extended by another period of 3 months but by mutual understanding by the parties when need arises.

(c) On satisfaction of completion of probation period, the employer will issue in writing an appointment letter indicating the job description and the wages offered.

3.HOURS OF WORK

The normal working week shall consist of 45 hours spread over 6 days of the week as follows:

(i) Monday to Friday-8 hours per day

(ii) Saturday-5 hours

Provided that an employee required to work in excess of such hours shall be paid for overtime for the excess hours worked.

4.OVERTIME

For the time worked in excess of the normal number of hours of work a week, the following rates shall apply:

(a) During the normal working days - time and half

(b) During normal rest days and public holidays —double hourly rate.

5.CASUAL EMPLOYMENT

(a) A person engaged as a casual employee shall be paid for each day worked at the rate of one-twenty second of both the monthly wage and housing allowance applicable to the occupation under taken by him as per prescription of the basic minimum wage of the grade.

(b) A casual employee shall be confirmed to regular monthly terms of employment after working consecutively or intermittently for ninety days in any one year.

6. ACTING ALLOWANCE

When an employee is required to act in a higher grade for period of not less than eight (8) days, he shall be paid in addition to his basic minimum wage an acting allowance equal to either twenty five percent (25%) of the wages of the person for whom he is acting or to the full basic wage of that employee whichever is the lesser amount.

7. MEDICAL TREATMENT

All employees covered by this agreement shall be provided with medical treatment in the manner described by the Employment Act (Medical Treatment Rules).

(a) Where in an emergency, an employee attends an approved/private hospital/dispensary, then all expenses incurred shall be met by the employer.

(b) Where an employer operates a Medical Scheme or Insurance arrangement with a particular hospital or Medical institution then the employee may be required to attend the hospital or medical institution.

8. ANNUAL LEAVE

After each period of twelve consecutive months services with an employer:

(a) An employee shall be entitled to twenty four (24) working days leave with full pay.

(b) An employee whose services are terminated before the completion of any twelve months leave earned period shall be entitled to two days leave with full pay for each completed month of service.

9. COMPASSIONATE LEAVE

Special leave on compassionate grounds may be granted provided that satisfactory proof of the necessity for such leave is produced. This leave will either be paid or unpaid or deducted from the annual leave entitlement in the light of the evidence produced before or after the leave by the employee.

10.MATERNITY LEAVE

(i) A Female employee shall be entitled to three months maternity leave with full pay.

(ii) On expiry of a female employee's maternity leave as provided in subsections (i) and (iii), the female employee shall have the right to return to the job which she held immediately prior to her maternity leave or to a reasonably suitable job on terms and conditions not less favorable than those which would have applied had she not been on maternity leave.

(iii) Where:

(a) the maternity leave has been extended with the consent of employer; or

(b) immediately on expiry of maternity leave before resuming her duties a female employee proceeds on sick leave or with the consent of the employer on annual leave; compassionate leave; or any other leave .

(iv) A female employee will be entitled to the rights mentioned in subsections (i),(ii) and (iii) if she gives not less than seven days notice in advance or a shorter period as may be reasonable in the circumstances of her intention to proceed on maternity leave on a specific date and to return to work thereafter.

(v) No female employee shall forfeit her annual leave entitlement under section 28 on account of having taken her maternity leave.

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

The three months maternity leave under subsection (i) shall be deemed to expire on the last day of such extended leave.

11. SICK LEAVE

After the probationary period, an employee who falls sick shall be granted sick leave as follows:

(a) Up to 5 years service-one month on full pay followed by one month on half pay.

(b) Over 5 years service-two months on full pay followed by two months on half pay. In each case of the above period may be extended by Management.

In each case a Medical certificate shall be issued by a qualified Medical Practitioner following sick leave.

12.GAZETTED PUBLIC HOLIDAYS

Every employee shall be entitled to leave with full pay for all Gazetted Public Holidays provided that an employee required to work on such holidays shall be paid double time hourly rate for the period worked.

13. SAFARI ALLOWANCE

An employee who is required to work away from his normal working place other than on transfer will be entitled to subsistence allowance as follows:

•BreakfastKsh 135/-

•LunchKsh. 200/-

•SupperKsh. 200/-

•AccommodationKsh. 500/-

14. SUSPENSION

An employee who is charged in a court of law with a criminal offence (other than an offence under the Traffic Act) may be suspended without pay until judgment is delivered.

Provided that in the event of the employee being acquitted he shall be re-instated without loss of privileges.

15.LEAVE TRAVELLING ALLOWANCE

An employee when proceeding on annual leave shall be paid leave traveling allowance of two thousand Nine hundred only (Kshs 2900/-) for the period of the agreement. If an employee's service is terminated before the completion of twelve months consecutive months the leave traveling allowance shall be paid on pro-rata basis.

16.REDUNDANCY

In the event of redundancy the following principle shall apply:

(a) The Union of which the employee is a member as well as the Labour officer of the area shall be informed of the reason for the intended redundancy.

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

(c) No employee shall be placed at a disadvantage for being or not being a member of the trade union.

(d) Any leave due to an employee declared redundant shall be paid in cash.

(e) An employee declared redundant shall be entitled to severance pay at the rate of 16 days pay for each completed year of service.

Payment in respect of completed months over the above completed year will be calculated on pro rata basis.

Provided that payment in lieu of notice shall be based on monthly basic wage plus monthly house allowance.

17.TERMINATION OF SERVICE

The first three months with an employer shall be treated as probationary period during this period either party may terminate the contract by giving not less than seven (7) days notice in writing or otherwise by the payment of not less than seven (7) days wage.

Provided that:

(i) An employee who has completed probation period up to 6 years shall be terminable by one month’s notice in writing or one month's payment in cash in lieu.

(ii) An employee who has served the accompany for over 6 years shall be terminated by two month's notice in writing or two (2) month's wages in cash in lieu. Notice of termination shall be given by either party.

(iii) An employee who resigns for lawful cause shall not be entitled to gratuity payment of 16 days per each completed year of service.

18. WARNING PROCEDURE

(i) an employee whose work or conduct is unsatisfactory or who is otherwise in a breach of contract which in the of opinion the employer does not warrant dismissal, shall be given a warning in writing and each warning shall be entered in employee's employment record.

(ii) If any employee receives three warnings within one year he shall on commission of a fourth offence be liable to dismissal.

Provided that if an employee completes one year from the date of the third warning without further default any warning entered in his employment record shall be cancelled and shall not be taken into account in determining only further question of dismissal under this paragraph.

(iii) All warnings issued shall be subjected to written appeal by the employee to the management within seven (7) days from the date of the warning and the Management shall inform the employee in writing within further seven (7) days.

19.CERTIFICATE OF SERVICE

Every employee shall be given a certificate of service by his / her employer upon departure from employment for whatever cause, unless such employment has continued for a period of less than four consecutive weeks.

Every such certificate shall contain:

(a) The name of the employer and his 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

20.FUNERAL GRANT

When an employee dies while in employment the employer shall contribute Fourteen thousand shillings (Kshs.14,000/-) towards funeral expenses.

21.RETIREMENT / TERMINATION GRATUITY

An employee who dies while in employment or whose services are terminated shall be entitled to gratuity payment at the rate of 16 days consolidated wages for each completed year of service.

An employee who retires after attaining the normal retirement age of 55 years shall be entitled to gratuity payment at the rate of 13 days consolidated wages for each completed year of service.

22.PAID EDUCATION LEAVE

Upon the request of an employee or through the Union for Education/Training or seminar leave, the employer shall allow such employee to proceed to recognized Education Institution for training with full pay as is necessary. Such leave will not be unreasonably withheld. Only training relevant to the nature of his/her job shall be allowed.

23.PROTECTIVE CLOTHING / BOOTS

Free protective clothing/boots shall be issued by the employer to all requisite workers. Two pairs of uniform shall be issued per year and 1 bar of soap per month.

24. BAGGAGE ALLOWANCE

On retirement or on being declared redundant, an employee shall be entitled to a Baggage Allowance of Kshs. 2,600/- (two thousand six hundred only) to cover the cost of transportation of his/her personal effects.

25.BASIC MINIMUM WAGES

the agreed percentage will make the basic Minimum

1ST YEAR

1/6/2012

1ST YEAR

1/6/2013

GROUP 1

Sweeper/Cleaner, Messengers,

General Labourer in signs and lighting work

8,630/=

9,320/=

GROUP 2

Semi skilled workers (description: workers that

cannot work independently) Electricians, silk-

Screeners, Metal workers, artisans, maintenance

and installation workers, Engravers, plastic

Workers and spray painters

11,200/=

12,100/=

GROUP 3

Skilled un-graded artisan (descriptions workers that cannot work independently, electricians, silk-screeners, Metal workers, artisans, maintenance and installation Workers, engravers, plastic workers, spray painters

11,630/=

12,560/=

GROUP 4

Graded artisans

Trade Test Certificate Grade III

Trade Test Certificate Grade II

Trade Test Certificate Grade I

14,665/=

15,830/=

19,460/=

15,840/=

17,100/=

21,020/=

GROUP 5

Clerical Staff

Telephone Operator, Copy Typist,

Accounts Clerk, Store-Keeper

Salesman or Sales Person

13,320/=

19,460/=

14,385/=

21,020/=

26.WAGE INCREASE

Every employee who was in service as at 31st May 2012 and whose salary is higher than new basic minimum wages will receive a wage increase of 8% with effect from 1st June 2012 on individual salary to cover the first year of agreement and a further increase of 8% with effect from 1st June 2013 based on an individual’s salary to cover the second year of the agreement.

27.HOUSING ALLOWANCE

Every employee who is not provided with free accommodation by the employer will be entitled to a housing allowance of Kshs.2,200/- or 15% of his/her basic salary whichever is higher.

28.EFFECTIVE DATE AND DURATION OF THE AGREEMENT

This agreement shall be effective from 1st June 2012 and shall remain in force for a period of 24 months and thereafter it shall continue to be in force until it is mutually amended by both parties, provided that the party desiring to amend the agreement shall give one month’s notice of their intention and shall set out in detail the amendments or alterations which such party intends to make.

SIGNED FOR AND ON BEHALF OF PELICAN SIGNS LIMITED

………………………

B.R. DEVANI

MANAGING DIRECTOR

………………….

DINTA DEVANI

GENERAL MANAGER

……………………….

JAMES MBITHI

PERSONNEL MANAGER

SIGNED FOR AND ON BEHALF OF THE UNION

………………..

JUSTUS MAINA

DEPUTY GENERAL SECRETARY

…………………………..

BONFACE WAKIGO

SHOPSTEWARD

IN THE PRESENCE OF

…………………………..

A.O. AMBENGE

SENIOR EXECUTIVE OFFICER (F.K.E.)

SIGNED ON THIS ………… DAY OF …………….. 2012

Pelican Signs Limited - 2012

Start date: → 2012-06-01
End date: → 2014-05-31
Name industry: → Legal and market consultancy, business activities
Public/private sector: → In the private sector
Concluded by:
Name company: → Pelican Signs Limited
Names trade unions: → Amalgamated Union of Kenya Metal Workers

TRAINING

Training programmes: → Yes
Apprenticeships: → No
Employer contributes to training fund for employees: → No

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 25 %
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: → No

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: → No
Workplace risk assessment on the safety and health of pregnant or nursing women: → No
Availability of alternatives to dangerous or unhealthy work for pregnant or breastfeeding workers: → No
Time off for prenatal medical examinations: → No
Prohibition of screening for pregnancy before regularising non-standard workers: → No
Prohibition of screening for pregnancy before promotion: → No
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: → 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: → 45.0
Working days per week: → 6.0
Paid annual leave: → 24.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Birthday of the Prophet Muhammad / Prophet PBUH Birthday / Mouloud / Eid Milad-un-Nabi (twelfth day of Rabi) , Christmas Day (25th December), Easter Monday, Easter Sunday (first Sunday after the full moon following 21st March), Army Day / Feast of the Sacred Heart/ St. Peter & Paul’s Day (30th June), John Chilembwe Day (15th January)
Provisions on flexible work arrangements: → 

WAGES

Wages determined by means of pay scales: → 
Adjustment for rising costs of living: → 

Wage increase

Wage increase starts: → 2012-05

Extra payment for annual leave

Extra payment for annual leave: → KES 2000.0

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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