New

MEMORANDUM OF AGREEMENT

ON

TERMS AND CONDITIONS OF SERVICE

BETWEEN

ENSING AUTOS LIMITED

AND

KENYA UNION OF COMMERCIAL,

FOOD AND ALLIED 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 parties Recognition Agreement.

2.PROBATION PERIOD

The first three months of engagement shall be treated as probation. During this period services may be terminated by either party giving seven (7) days notice or pay in lieu of notice. After the probation period an employee shall be automatically confirmed to permanent.

3.PAYMENT OF WAGES

Employees shall be paid their wages on the last day of the month unless such a day falls on a Sunday or Public Holiday in which case wages shall be paid on the next working day.

4.WORKING HOURS

Working hours shall be 45 hours spread over six days of the week.

5.OVERTIME ALLOWANCE

Overtime shall be paid at the following rates for time worked in excess of the working hours:-

a) Normal overtime one and a half times the normal hourly rate

b) Double for hours worked on Sundays and Gazetted Public Holidays

6.MATERNITY LEAVE

Female employees shall be entitled to three (3) months maternity leave with full pay provided that a woman who has taken three months maternity leave shall not forfeit her annual leave in that year.

7.PATERNITY LEAVE

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

8.UNIFORM AND PROTECTIVE CLOTHING

Employees who are required by nature of their work to wear uniforms or protective clothing shall be issued with (2) pairs of such uniforms or protective clothing by the employer free of charge and shall be replaced after 12 months.

9.REDUNDANCY

The principal of last in first out shall apply taking into account also the following factors :-

(a) The employer shall decide on Education, performance, ability, reliability, competence and loyalty and the union will be informed.

(b) Employees to be declared redundant shall be given a notice as per the Clause of Termination of Service.

(c) Employees declared redundant shall be entitled 15 days for each completed year of service.

(d) Annual Leave or Prorate Leave and Leave Travelling Allowance shall be paid to the employees affected.

10.EMPLOYEES PAYSLIPS

All unionisable employees will be issued with payslips.

11.SUSPENSION

a. Employees who are suspended shall receive half of their wages during the period of suspension.

b. Such suspension shall not exceed a period of one month.

c. Employees who are found innocent after investigation are carried out shall be paid all the wage balances and continue with their work as normal.

12.GRATUITY

Employees who are terminated normally shall be paid service gratuity 15 days per each completed year of service.

13.RETIREMENT

a. An employee may retire on either attaining the retirement age of sixty (60) years or on medical grounds.

b. Retirement age shall be 60 years.

c. Retirement on medical grounds shall be certified by a qualified medical practitioner.

d. Employees who are retired on the above stated ground shall be entitled to retirement benefits as shown in Clause 12 (Clause on payment of service gratuity on retirement).

14.DEATH OF EMPLOYEE

In the event of an employee’s death, the employer shall give Kshs.10,000/= to the next of kin.

15.INJURY

The conditions set out in the Work Injury Benefit Act, 2007 shall apply.

16.CERTIFICATE OF SERVICE

This shall be issued as per the Employment Act, 2007.

17.ANNUAL LEAVE

Annual Leave will be taken on completion of 12 months continuous service it shall consist of 22 working days.

18.COMPASSIONATE LEAVE

An employee who desires to take leave on Compassionate grounds shall by prior arrangement with the employer be granted such leave upto seven (7) days with full pay. These days shall be off – set from his/her Annual Leave.

19.SAFARI ALLOWANCE

This is currently being taken care of by the employer.

20.WARNING SYSTEM

An employee whose work or conduct is unsatisfactory or who commits a misconduct which in the opinion of the employer doesn’t warrant instant dismissal shall be warned as per the Employment Act.

I. The first and second warnings’ shall be entered in the Employees employment record and the Shop steward of his Union shall be informed accordingly.

II. The second warning shall be copied to the Branch Secretary of his Union.

III. If an employee who has already received two warnings commits a third misconduct, he shall be liable to summary dismissal.

IV. Provided that where an employee has 12 months from the date of his first and second warnings without further misconduct any warning entered in his employment record shall be cancelled.

21.HOUSE ALLOWANCE

Employees who are not provided with free housing accommodation by the employer shall be paid Kshs.15% of the Basic Minimum Wage.

22.GENERAL WAGE INCREASE

Employees in service as at 1st September 2012 shall receive a wage increase of 11% in the first year and 11% second year.

23.LEAVE TRAVELLING ALLOWANCE

An employee shall be entitled to leave travelling allowance of Kshs.1000/= when proceeding on leave.

24.SICK LEAVE

Sick leave shall be practiced as stipulated in the Employment Act, 2007.

25.TERMINATION OF SERVICE

(i) Termination of service 15 days pay per each year completed.

(ii) Notice period – One month notice by either party.

26.BASIC MINIMUM WAGES (EXCLUSIVE OF HOUSING ALLOWANCE

General Labourer, Messenger, cleaners= Kshs.8,800.00

Junior Clerk= Kshs.12,000.00

Sales man= Kshs.17,000.00

Telephone Operator

Receptionist, Storekeeper, Drivers= Kshs.14,000.00

General Clerk= Kshs.15,000.00

Computer Operator, Technicians,

Shop Assistant= Kshs.12,000.00

27.EFFECTIVE DATE AND DURATION

This agreement shall be effective from 1st September 2012 and remain in force for a period of two years.

SIGNED BY:

FOR MANAGEMENT

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

DAVINDER SINGH

ENSING AUTOS LTD

FOR THE UNION

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

HENRY NYUMBA

FOR:- SECRETARY GENERAL

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

JACKSON M. KYUNUVEDAVID MACHARIA

BRANCH SECRETARYSHOPSTEWARD

L. W. KARIUKI

HEAD OF INDUSTRIAL RELATIONS SERVICES

FEDERATION OF KENYA EMPLOYERS

DATED THIS..................................DAY OF.............................2012

Ensing Autos Limited - 2012

Start date: → 2012-09-01
End date: → 2014-09-01
Name industry: → Trade, fuelling and repair of motor vehicles
Name industry: → Retail trade of motor vehicle parts and accessories
Public/private sector: → In the private sector
Concluded by:
Name company: → Ensing Autos Limited
Names trade unions: → Kenya Union of Commercial Food and Allied Workers

SICKNESS AND DISABILITY

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: → 7 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
Working days per week: → 6.0
Paid annual leave: → 22.0 days
Paid annual leave: → 3.0 weeks
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: → 11.0 %

Extra payment for annual leave

Extra payment for annual leave: → KES 1000.0

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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