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MEMORANDUM OF AGREEMENT BETWEEN TEITA ESTATE LTD (ROPE WORKS DIVISION) (HEREINAFTER REFERED TO AS EMPLOYER) ON THE FIRST PART AND TAILORS AND TEXTILE WORKERS UNION) (HEREINAFTER REFERED TO AS THE UNION) ON THE SECOND PART.

IN THE MATTER OF WAGES AND OTHER TERMS AND CONDITIONS OF SERVICE

1. PREAMBLE

The terms and conditions of service set out in this agreement shall be observed by either party and shall apply to all unionisable employees of the company as covered by the recognition agreement signed between the parties. This agreement shall not apply to confidential, managerial and supervisory staff.

2. PROBATION

Employees shall be on probation for a period of three months during which time termination of employment by either party shall be 48 hours notice.

3. HOURS OF WORK

The normal working week shall consist of 45 hours spread over six days of the week.

Monday to Friday – Eight (8) hours a day

Saturday – Five (5) hours

4. OVER TIME

Overtime shall be paid at the following rates:

a) For time worked in excess of the normal working hours each week, at one and one half times the normal hourly rates.

b) For the time worked on rest days and statutory public holidays at twice the normal hourly rate.

5. PAYMENT OF WAGES

Wages shall be paid on the last working day of every month. In case of the last working day falling on a Saturday or Public Holiday, wages shall be paid on the eve day.

6. ANNUAL LEAVE

a) After completion of 12 consecutive months of service with the company, a permanent employee shall be entitled to twenty eight (28) working days annual leave with full pay.

b) When employment is terminated after completion of three (3) consecutive months or more of service, an employee shall be entitled to two days leave with full pay for each completed month of service and this shall be paid in cash.

c) Where an employee is required to work instead of taking leave at the request of the company, such employee will be paid full wages in lieu of leave not actually taken plus leave traveling allowance. But when an employee requests to continue working instead of going on leave he/she will be paid for leave days without leave traveling allowance. Such requests shall be made in writing.

d) The leave referred to in subsection (a) of this clause shall be additional to all public holidays , weekly rest days and sick leave, whether fixed by the law or agreement in respect of which an employee is not required to work.

7. LEAVE TRAVELLING ALLOWANCE

Any employee proceeding on annual leave shall be entitled to traveling allowance as follows:

1 st Year – Kshs. 3,600.00

2 nd Year – Kshs.3, 600.00

8. COMPASSIONATE LEAVE

a) After completion of probationary period and upon the employees’ request, compassionate leave may be granted at the discretion of the employer and the management shall undertake to consider such request sympathetically.

b) Gazetted Public Holidays in this case shall be granted with full pay.

9. SICK LEAVE

After the probationary period, an employee shall be entitled to sick leave with full pay to a maximum of sixty (60) days and thereafter to sick leave with half pay up to a maximum of sixty (60) days in each period of twelve months consecutive service.

a) An employee shall not be entitled to such payment unless he/she produces to the employer a certificate of incapacity covering the period of sick leave claimed , signed by a qualified medical practitioner in charge of dispensary or medical aid center.

b) An employee shall not be eligible for sick leave under this clause in respect of any incapacity, due to gross neglect on his / her part.

10. TERMINATION OF EMPLOYMENT

Termination of employment shall be done by giving notice in writing or pay in lieu of such notice by either party on any working day of the week as follows:

a) Employees with service of one (1) to (4) years - one (1) month’s notice.

b) Employee with service of over (5) years – (9) years-(3) month’s notice.

c) Employees with over ten (10) to fifteen (15) years – (4) month’s notice.

d) Employees with over fifteen (15) years- (6) month’s notice.

A terminated employee shall be paid twenty three (23) days for each completed year of service as termination gratuity.

11. WARNING PROCEDURE

Without in any way prejudicing the employer’s right to terminate the service of an employee summarily for justified cause, an employee whose work and or conduct is unsatisfactory or commits a default which in the opinion of the employer does not warrant instant dismissal shall be warned in writing and the following procedure shall apply:

a)The first and second warning letters shall be entered in the employee’s employment records and the Shop Steward informed accordingly.

b)The third warning letter shall be copied to the Branch Secretary of the union.

c)If an employee who has received three warning letters commits a fourth default, he / she shall be liable to summary dismissal.

Provided that each warning letter shall be invalid after ten months from the date the last warning letter was issued.

12. MARTERNITY LEAVE

A woman employee shall be entitled to three month’s maternity leave with full pay and thereafter, to one month’s leave with full pay and leave traveling allowance provided that she adduces a certificate to the same effect from qualified medical practitioner.

13. REDUNDANCY

In the event of redundancy, the following principles shall apply:

a) The union shall be informed of the reasons for and the extent of the intended redundancy.

b) The principles shall be adopted of ‘LAST IN FIRST OUT’ in the particular category of employees affected, subject to all other factors such as skill, merit ability and reliability being equal.

c) In case of availability of employment at a later date, the company will consider the former redundant employees first for re-employment. The principles of ‘last out first in may apply.

d) A redundant employee shall be entitled to 23 days per for each complete year of service as severance pay.

14. UNIFORMS AND PROTECTIVE CLOTHING

Permanent employees shall be issued with two uniforms or personal protective clothing per year. The uniformed employees shall be issued with one bar of soap each month and employees must wear their uniforms and all other applicable personal protective equipment all the time while on duty. The uniform / personal protective equipment will remain the property of the company. Caps will be provided to all employees while safety boots will be given all employees after every two years.

15. NIGHT TRANSPORT

Night transport shall be provided to employees traveling to or from the factory for night shift work which commences between 7.00 p.m. and 6.00 a.m.

Provided that such transportation shall be restricted to a radius of 8 miles from the factory to various employees’ drop off points.

16. HOUSING AND HOUSE ALLOWANCE

Every employee who is not provided with free housing accommodation by the company will be entitled to a house allowance as follows:

1 st Year – Kshs. 3,700.00

2 nd Year – Kshs. 3,700.00

17. ACTING ALLOWANCE

Where a permanent employee is required to work in full capacity for a period of not less than seven (7) days in an occupation or grade for which the basic wages described is higher than the basic wages normally earned by the employee, she /he will be paid acting allowance at a rate not less than the difference between such higher basic minimum wages and her/his normal basic wages.

18. CERTIFICATE OF SERVICE

1) Every employee shall be given a certificate of service by his/her employer unless such employment has continued for a period of not less than (4) consecutive weeks and every such certificate shall contain the following information:

a) The name of the employer and his postal address.

b) The date when employment commenced

c) The nature and usual place of employment

d) The date when employment ceased

e) Such other particulars as may be prescribed.

2) Subject to subsection (1) of this clause, the employer is not bound to give an employee any testimonial, reference or certificate relating to the character or performance of such employee.

3) Failure by the employer willfully or by neglect to give an employee a certificate of service in accordance with subsection (1) of this section or inclusion of a false statement shall constitute a civil offence.

19. BASIC MINIMUM WAGES EXCLUSIVE OF HOUSING ALLOWANCE FOR NEW EMPLOYEES

GROUP I AS AT

SEPT.30, 2011

( KSHS)

W.E.F.

OCT.01, 2011

(KSHS)

W.E.F.

OCT.01,2012

( KSHS)

General Laborers

Cleaners/ Messengers

Loader/Unloader

Packer / Weigher

Handful Maker

Feeder, Machine

Attendant /Trainee

For a maximum of 6 months

10,193.00 11,008.00 11,999.00
GROUP II

Machine Attendant

11,573.00 12,499.00 13,624.00
GROUP III

Driver

Light Van

13,796.00 14,900.00 16,241.00
GROUP IV

Clerical Staff

Stores Clerk

Yarn Testing Clerk, Mechanics, Electricians/Oilers

15,747.00 17,007.00 18,537.00

20. GENERAL WAGE INCREASE

i) FROM OCTOBER 1, 2013

The employees who were in the service of the company as at September 30, 2011 will receive a General Wage Increase of 8 %.

ii) FROM OCTOBER 1, 2014

The employees who were in the service of the employer as at September 2010 will

receive a General Wage Increase of 9 % to cover the next successive twelve months.

21. MEDICAL TREATMENT

Section 34 of Employment Act of 2007, Laws of Kenya shall apply.

22. LETTERS OF APPOINTMENT

The employer shall give appointment letters to all employees at the time of employment on regular establishment. The letters shall specify the date of engagement and nature of work to be performed by the employee.

23. INJURY WHILE ON DUTY

The Work Injury Benefits Act of 2007, Laws of Kenya shall apply to any employee injured while and in the course of employment.

24. PROMOTION

Promotion of employees from one grade to the next shall be carried out at the discretion of the employer after giving consideration to merit, and seniority among other factors.

25. CASUAL EMPLOYMENT

i) All casual employees shall be paid at the rate of 1/22 of the basic consolidated minimum wages of their respective grades.

ii) No employee shall remain on casual employment terms for more than three consecutive months before being engaged on permanent terms.

26. LEAVE FOR UNION SHOP STEWARD ON OFFICIAL BUSINESS

The employer may grant in any one year a total of thirty (30) working days leave to the Shop Steward or one (1) other member of the Works Committee to attend to the union conference meeting or seminars at the written request of the union’s Secretary General or his representative provided that the number of employees so released will not exceed 2 in any one year.

27. NIGHT SHIFT ALLOWANCE

Employees who are required to perform shift work at between 7.00 p.m. and 7.00 a.m. will be entitled to night shift allowance of Fourteen Shillings (14.00) Kenya Shillings and Fourteen shillings (14.00) Kenya Shillings per hour for year 1 and year 2 respectively.

28. RETIREMENT GRATUITY BENEFITS

Employees will retire from employment upon attaining 60 years of age.

Subject to the employees’ health and conduct being satisfactory, an employer may extend the retirement age to a maximum of four (4) years.

The request for extension of retirement age should be done in writing. However, the employer shall have the right to retire any employee at any time after attaining the mandatory retirement age.

i) Any employee who retires due to certified ill health or who dies while still in employment shall also be entitled to retirement benefits payable through the labor office.

ii) The retirement benefits shall be twenty three (23) days pay for each complete year of service based on the individual employee’s date of employment.

iii) Employees who are retired under this clause shall be entitled to appropriate period of notice or pay in lieu, accrued or prorate leave and any other terminal benefits as above.

iv) An employee can terminate his/her employment, resign or retire after serving the company for 15 years and the above benefits will accrue.

29. DEATH OF AN EMPLOYEE

When death of an employee occurs, the employer shall meet the following bereavement expenses:

Cost of Transportation - Kshs. 28,000.00

Coffin - Kshs. 15,000.00

30. JOINT SAFETY COMMITTEE

Both parties agreed that Health and Safety Committee shall be established in line with the Occupational Safety and Health Act of 2007.

31. EFFECTIVE DATE AND DURATION

This agreement shall be effective from October 1, 2013 and shall remain in force until amended or terminated. Any party intending to amend or terminate this agreement shall give one month’s written notice to the other party expressing such intention.

SIGNED FOR AND ON BEHALF OF THE MANAGEMENT:

…………………….

PETER KRAFT

GENERAL MANAGER

…………………………….

OSCAR IDAMBO

HUMAN RESOURCES MANAGER

SIGNED FOR AND ON BEHALF OF THE UNION:

……………………………….

REV. JOEL K. CHEBII OGW

SECRETARY GENERAL

………………………………………

EZRA OJUKA

DEPUTY SECRETARY GENERAL

……………………………… .. …

JOHN NGARE

BRANCH SECRETARY

…………………………………….

PETER OMONDI

CHIEF SHOP STEWARD

………………………………….

KEPHA OGWOKA

ASSISTANT SHOP STEWARD

WITNESSED BY:

………………………………

A. O.AMBENGE

SENIOR EXECUTIVE OFFICER

FEDERATION OF KENYA EMPLOYERS

DATED THIS………………………….OF ………………….AT…………..……2013

Teita Estate Ltd - 2013

Start date: → 2013-10-01
End date: → Not specified
Name industry: → Manufacturing
Public/private sector: → In the private sector
Concluded by:
Name company: → Teita Estate Ltd
Names trade unions: → Tailors and Textiles Workers Union

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: → 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

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: → 45.0
Working days per week: → 6.0
Paid annual leave: → 28.0 days
Paid annual leave: → 4.0 weeks
Paid bank holidays: → Christmas Day (25th December), 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)
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
Adjustment for rising costs of living: → 0

Wage increase

Wage increase: → 8.0 %
Wage increase starts: → 2013-10

Premium for evening or night work

Premium for evening or night work: → KES 14.0 per month
Premium for night work only: → Yes

Extra payment for annual leave

Extra payment for annual leave: → KES 3600.0

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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