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MEMORANDUM OF AGREEMENT BETWEEN SANA INDUSTRIES LIMITED AND KENYA UNION OF HAIR AND BEAUTY SALON WORKERS

PART 1: TERMS AND CONDITIONS OF SERVICE

1. PREAMBLE

The terms and conditions of employment set in this Agreement shall be observed by both parties and shall apply to all unionisable employees covered by the Parties Recognition Agreement.

2. PROBATIONARY PERIOD

(a) All employees shall be required to serve a probation period of 3 months before being confirmed in their appointment in writing. If necessary the probationary period may be extended by another 3 months in writing giving reasons for the extension. During the period the employment may be terminated by either party giving 7 days in writing or pay in lieu of notice.

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

3. HOURS OF WORK

The normal working week shall consist of 45 hours of work spread over six days of the week. The management will regulate the reporting and leaving time.

4. 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 3 above which provides for 45 hours at one and half times the normal hourly rate.

(b) For time worked on the employees normal rest day and gazzeted Public Holidays at double the normal hourly rate.

The employee may opt to take time off in lieu of the time worked.

(c) For purpose of calculating payment for overtime worked, the hourly rate shall be 1/195 of the employees basic monthly wage.

5. ANNUAL LEAVE

After each period of 12 months continuous service with the company, an employee shall be entitled to Annual Leave of 26 working days with full pay.

Where employment is terminated after completion of two or more consecutive months of service, the employee shall be entitled to Prorata leave with full pay for each completed month of service.

6. GAZETTED PUBLIC HOLIDAYS

All gazette holidays shall be with full pay. An employee who works on Gazatted Holiday shall be paid overtime at double rate or be given equivalent day to rest with full pay.

7. COMPASSIONATE LEAVE

(a) An employee desiring to take compassionate leave he or she shall be entitled to all the leave earned which shall be off set from his/her annual leave.

(b) In case of an employee who has exhausted his/her annual leave and has an emergency, he/she will granted 7 days compassionate leave without pay in a year.

8. SICK LEAVE

(a) After two consecutive months of service with the company, an employee shall be entitled to a maximum of thirty days with full pay and thereafter to a maximum of fifteen days sick leave with half pay in a year.

(b) An employee shall be entitled to such leave unless he/she produces to the employer a certificate of incapacity covering the period of sick leave claimed signed by a medical practitioner in charge of a dispensary or medical aid centre or by a person authorized by him or her in writing and acting on his behalf.

(c) An employee shall not be entitled to sick leave in respect of any incapacity due to gross neglect on his part.

9. MATERNITY LEAVE/PATERNITY LEAVE

(a) Every female employee shall be entitled to three months maternity leave with full pay and shall not forfeit her annual leave in that year.

(b) Child birth in respect of a female employee shall not be deemed to be sick leave.

(c) A female employee who takes maternity leave shall not incur any loss of privileges during such period.

(d) A male employee shall be entitled to two weeks paternity leave in respect of a child birth by a legally married and registered spouse with the company

The male employee will apply for paternity leave 14 days in advance in order to allow the company to arrange for replacement.

10. LEAVE TRAVELLING ALLOWANCE

An employee proceeding on annual leave will be entitled to Leave travelling Allowance of Kshs. 1,500/=

11. ACTING ALLOWANCE

(a) Where an employee is required to work for a period of not less than one month in a higher grade be paid acting allowance at the rate not less than the difference between the basic of the higher grade and his salary.

The acting appointment shall be in writing.

12. SAFARI ALLOWANCE

An employee who is required to perform work away from his principal place of employment shall be entitled to the following safari allowance:-

(a) Breakfast-100/=

(b) Lunch-150/=

(c) Dinner-150/=

(d) Accommodation -1000/=

13. INJURY BY ACCIDENT

An employee who is injured by accident arising out of and in the scope of his employment shall be entitled to compensation in accordance with the provisions of the Work Injury Benefits Act (WIBA) 2007. Employees shall be provided with Transport to the Hospital.

Medical treatment shall promptly provided to employees as stipulated in the Employment Act of 2007.

14. REDUNDANCY

(a) ‘Redundancy’ means the 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 the Kenyanisation of a business, but it does not include any such loss or employment.

(b) In the event of Redundancy the employer shall follow the provisions of section 40 of Employment Act, 2007.

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

15. CERTIFICATE OF SERVICE

Every employee shall be given a certificate of service by the company 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 company and 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

16. RETIREMENT

(a) An employee shall officially retire from the services of the company on attainment of 60 years or on medical grounds approved by a qualified medical practitioner.

(b) Early retirement may be granted by the employer or applied for by the employee when the employee has attained the age between 55 years and 60 years.

(c) The employer has a right with the consent of the employee to offer term employment contract to an employee who has retired at the age of 60 years.

17. DEATH OF AN EMPLOYEE

In the event of death of an employee while in the service of the company, the employer will contribute Kshs. 10,000 towards the funeral expenses.

18. PAID EDUCATION LEAVE

(a) A maximum of three union officials may be selected to attend trade union seminars or training in one year. Each union official will be granted 7 days in a year with full pay.

(b) The union Head Quarters will give the Management 7 days written notice prior to the commencement of the training/seminar/workshop for the management to make arrangement for their replacement during their absence.

19. AGENCY FEES

Agency fees shall be carried out in accordance with requirement of section 49 of the Labour Relations Act, 2007.

20. PAYSLIPS

Every employee shall be issued with a payslip at the end of each month as per the requirements of the Employment Act, 2007.

21. HOUSE ALLOWANCE

An employee who is not provided with free housing accommodation by the employer, will be paid fifteen percent(15%) of his basic salary as housing allowance.

22. BASIC MINIMUM WAGES

The following are the Basic Minimum Wages.

GROUP 1 AMOUNT IN KSHS.
•Cleaners

•Sweepers

•General Workers

•Packers

•Tea Maker

9,781/=
GROUP 2
•Turn Boys

•Cooks

9,266.30/=
GROUP 3

•Watchmen

10,911.80/=
GROUP 4

•Machine Attendants

11,085.70/=
GROUP 5
•Driver Light Van

•Machine Operator

•Ungraded Artisan

13,201.50/=
GROUP 6
•General Clerks

•Telephone Operator

•Store Keeper

•Receptionists

•Customer Care

15,064.60/=
GROUP 7
•Driver – Medium between 2 tons and 8 tons 16,601.80/=
GROUP 8
•Sales Men

•Sales Ladies

18,329.30/=

23. GENERAL WAGE INCREASE

Employees who were in employment of the company by 31st August 2013 will receive a General Wage Increase of 16% which includes the 14% general wage increase awarded by the Government on 1st May 2013 (The Company to pay two 2% wage increase over the 14% of 1st May 2013).

This General Wage Increase of 16% is for one year effective from 1st September 2013 to 31st August 2014. The parties will meet from May 2014 to discuss the wage increase for the second year.

24. TERMINATION OF EMPLOYMENT

(a) After completion of the probationary period, the Employment contract may be terminated by either party giving one month notice in writing or payment in lieu of notice.

(b) On termination an employee shall be entitled to gratuity payment of 15 days for each completed year of service and this does not apply to Summary Dismissal.

25. PROTECTIVE CLOTHING

(a) The company shall provide protective clothing to the employees in accordance with the provisions of Occupational Safety and Health Act, 2007.

The protective clothing issued to the employees shall remain the property of the company.

(b) Each employee will be issued with a bar of soap every month for cleaning clothes and the employee shall maintain the clothes in a clean state.

26. SUSPENSION

(a) An employee may be suspended by the company with full pay for maximum of 14 days to allow investigations to be carried out without interference.

(b) If the employee is found innocent he will be reinstated to his job without loss of benefits. If he is found guilty t hen he will be terminated or dismissed following the right procedure.

27. WARNING SYSTEM

An employee whose work is unsatisfactory or who otherwise commits a misconduct which in the opinion of the employer does not warrant summary dismissal he shall be given a warning in writing and the following procedure shall apply:-

(a) The first, second and third warning letters shall be entered in an employee’s record and copied to the shopsteward and the Branch Secretary of the union.

(b) If an employee who has already received two warning letters commits a third misconduct, he may be terminated from employment.

(c) An employee who has three warning letters on his record and commits a fourth offence he shall be liable for summary dismissal through the right procedure.

(d) Where an employee completes one year from the date of the third warning without further misconduct, any warning entered in his./her employment record shall be cancelled.

28. SUMMARY DISMISSAL

An employee shall be liable to summary dismissal for gross misconduct as defined under Section 44 of Employment Act 2007. And the following reasons may justify the dismissal :-

(i) If without leave or other lawful cause, an employee absents himself/herself from the place proper and appointed for the performance of his/her work for a period exceeding seven (7) days.

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

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

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

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

(vi) If, in the lawful exercise of any arrest given by or underwritten law, an employee is arrested for a cognizable offence punishable by imprisonment and is not within fourteen (14) 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 an offence against or to the substantial detriment of his/her employer or his/her employer’s property.

27. PROMOTION

The company shall consider employee in employment when it comes to promotion and consideration shall be put on academic and professional qualifications, experience and reliability of the employee.

28. EFFECTIVE DATE

This agreement will be effective from 1st September 2013 and shall remain in force for a period of 2 years. Thereafter it will remain in force until it is amended by mutual agreement between parties.

SIGNED: FOR AND ON BEHALF OF SANA INDUSTRIES LIMITED

……………………………….

DIRECTOR

……………………………….

SIMON MBUTHIA

HUMAN RESOURCE MANAGER

SIGNED: FOR AND ON BEHALF OF KENYA UNION OF HAIR AND BEAUTY SALON WORKERS

…………………………

CECILY MWANGI

GENERAL SECRETARY

…………………………

JAMES TONGI

DISPUTES OFFICER

…………………………….. ……………………………….

SHOPSTEWARD SHOPSTEWARD

IN THE PRESENCE OF

……………………………………………………….

G.R. AMBUCHE

INDUSTRIAL RELATIONS OFFICER

FEDERATION OF KENYA EMPLOYERS

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

/jan

Sana Industries Limited - 2013

Start date: → 2013-09-01
End date: → 2015-08-31
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: →  Sana Industries Limited
Names trade unions: → Kenya Union of Hair and Beauty Salon Workers

SICKNESS AND DISABILITY

Maximum for sickness pay (for 6 months): → 21 %
Maximum days for paid sickness leave: → 45 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: → 7 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: → 26.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Christmas Day (25th December), 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
Provision that minimum wages set by the government have to be respected: → 
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 16.0 %
Wage increase starts: → 2013-09

Extra payment for annual leave

Extra payment for annual leave: → KES 1500.0

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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