Employment- Employment Contract(Standard)

EMPLOYMENT CONTRACT

Employment Contract made the _____ day of _______________ between ……… Limited (hereinafter called the \of Postal address Box Number …….. NAIROBI of the one part and Prof./Dr./Mr./Mrs./Ms. ____________________________ of Postal address Box Number ___________ and ID # ______________ (hereinafter called the \

The Employee agrees that he/she will diligently and faithfully perform the duties of (a) Title: ___________________________ (b) Department: ___________________________ (c) Grade: ___________________________

as is stipulated within the Company policy and terms and conditions of service (see attached job description) laid down by …….Industries Ltd.

The Employee also agrees to abide by the rules and regulations that govern all Employees of ………. Industries Ltd. which will be communicated to him/her from time to time as need arises.

The salary of the person engaged which shall be payable monthly in arrears (see attached) shall commence from ________________ being the effective date of this Contract, provided that his/her progress will be conditional upon the fulfillment by him/her such conditions as may from time to time be in force for the holders of similar position within the …….. Industries Ltd. (Please see the attached breakdown of salary). 1.0 TERMS AND CONDITIONS OF SERVICE 1.1 Contract Validity

This Employment Contract is for a period of ________ years or _________ (__) months, commencing from the __ day of ___________ and is subject to renewal on expiry.

1.2 Renewal

1.2.1 The renewal of this Employment Contract will be determined by the performance of the Employee

as per the performance scheme of …………. Industries Ltd.

1.2.2 The Employee who wishes to renew his/her Employment Contract will request for such renewal

three (3) months before expiry of the contract that is in force. The Employer, shall consider the application for renewal and communicate to the Employee before the expiry date.

1.3 Duties

1.3.1 The duties of the Employee shall include the usual duties as defined in his/her job description and

any other suitable duties, which the Employer may call upon him/her to perform. The Employee shall perform his/her assigned duties and such an employee shall not engage in trade and or other jobs similar to those carried out by the Employer while his/her employment contract is still in force. The Employee shall also not engage in trade or other jobs other than that of the Employer while he/she is on duty.

1.3.2 Other than the job details contained in the Employee's Job Description, the Employee may from

time to time be assigned duties by the Employer as need arises.

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1.4

Salary Commencement/Increment A full salary will begin from ___ ______ Annual increment shall be dependent upon Employee's performance as per the Performance Appraisal System of Sumaria Industries Ltd.

1.5

The Employee shall only be legible for gratuity upon completion of five consecutive years of service with the company. Upon successful completion of this period, the Employer shall pay the Employee gratuity equivalent to _______ __ for each completed year of service based on the Employee’s basic salary. No gratuity shall be paid to the Employee if he/she is summarily dismissed.

1.6

1.6.1 While the Employment Contract is still in force the Employee will be entitled to _________ leave days based on working days as opposed to his/her rest days and Public Holidays. There shall be NO ENCASHMENT of leave days not utilized during the calendar year. The Employee shall ensure that all leave due is utilized during the calendar year. However, any leave not utilized due to exigencies of duty shall be carried forward to the next calendar year, provided it falls within the contract period of ______ years.

1.6.2 All leave is subject to the exigency of the service and is sanctioned by the management at its

discretion.

1.6.3 Leave must be applied for two weeks before commencement.

1.6.4 Employees should normally complete one year’s service before being granted paid leave. However,

in very exceptional cases consideration will be given to requests from staff who have completed a minimum of three months on a pro rata basis.

1.6.5 Clause 1.6.4 shall not be applicable to employees whose contract is renewed after the expiry

period.

1.6.6 As far as possible, leave will be granted to suit the convenience of the employee and may be taken

either in full or in periods of not less than two weeks. The company, however, reserves the right to advance or postpone the date of any leave if the service of an employee cannot be spared. The company may also insist upon a full period of leave being taken at any one time.

1.6.7 In the event that the Employee’s employment commences or terminates part way through the

calendar year, his/her entitlement to leave during that year will be assessed on pro rata basis and deductions from the final salary due to the employee on termination will be made in respect of leave taken in excess of entitlement.

1.7

Rates of sick leave 1.7.2 In the event of absence on account of sickness or injury, the Employee or someone on his/her

behalf shall inform the Employer of the reason of the Employee’s absence. This report must be submitted by the end of the second day from the day on which absence first occurs. The Employee shall submit the medical certificate to the Employer upon the Employee’s resumption. Where the Leave Gratuity

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absence lasts for more than seven consecutive days, the Employee shall update the Employer on the former’s condition on the seventh day and continue to do so at intervals of not more than seven days until the Employee resumes duty.

1.7.3 Sick leave may be granted up to a maximum of 45 days on full pay and on half pay thereafter for a

further period of up to 45 days in any calendar year.

1.7.4 Prior to the expiry of the sick leave, i.e. during the half pay period, a medical practitioner shall be

requested to carry out a thorough examination on the employee. The practitioner shall be expected to give an expert opinion as to whether or not there exists any likelihood of the employee recovering fully to be able to return to work. However, the practitioner shall specify the length of period by which the sick leave shall be extended. If in the opinion of the practitioner, there is no such likelihood, then recommendation shall be forwarded to the management for the employee’s appointment to be terminated on medical grounds and his/her full dues paid to him/her. It shall be at the discretion of the management to accept such recommendation. Leave period allowed under this regulation shall be unpaid.

1.8

Private Practitioners Private medical practitioners may authorize absence from duty up to a maximum of seven (7) days, an indication should be made if need for review will arise.

1.9

1.9.2 Pre-natal clinic attendance shall be treated as sick leave.

1.9.3 An employee who has taken two months maternity leave shall be not entitled for annual leave in

the year.

1.10. Unpaid Leave

Due to certain exigencies on the part of the employee, he/she may require to take leave beyond the normal leave days allowed, thus that will be treated as UNPAID leave that shall not be earning.

1.11

Leave Address

Prior to departure on leave, an employee shall furnish the Human Resource Department (HRD) with an address at which communications can be sent. All changes in leave address shall be communicated to the HRD as soon as it shall be practicable.

1.12 Working Hours

The Employee shall observe the standard working hours of the company. The company expects that the Employee to execute his/her duties and responsibilities within the normal working hours in the context of ………Industries Limited (i.e. morning and night shifts).

1.13 Overtime

Maternity Leave 1.9.1 Female employees shall be entitled to a total of two (2) months maternity leave.

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Due to the nature of the job, Employee may be required to work beyond the normal working hours in order to finish the particular job at hand. The Employee shall be paid for overtime worked at the rate of one and one-half (1.5) times the normal hourly rate during normal working days and at two (2) times the normal hourly rate during all Gazetted Public Holidays, provided that such overtime was sanctioned by the Employee’s immediate supervisor in advance. 1.14

Night Allowance

Due to the nature of the job, employee shall be required to work at nights, thus NO NIGHT ALLOWANCE will be paid.

1.15

Termination Notice

1.15.1 The Employer may terminate the engagement of the Employee by giving him/her one (1) month’s

notice in writing or paying him/her one (1) month's salary in lieu of such notice where the Employee has been engaged for less than five (5) years. For an Employee who has served for five consecutive years or more, the Contract shall be terminated by giving him/her two (2) months’ notice in writing or paying him/her two (2) months’ salary in lieu of such notice.

1.15.2 The Employee may likewise terminate his/her engagement by giving the Employer one (1)

month’s notice in writing or by paying the Employer one (1) month's salary in lieu of such notice where the Employee has been engaged for less than five (5) consecutive years. The Employee shall give two (2) months’ notice in writing to the Employer or pay two (2) months’ salary in lieu of such notice if he/she has been engaged for five (5) or more consecutive years.

1.16 Medical

The Employer shall abide with the rules and regulations that govern medical facilities in factories in accordance with the Laws of Kenya, and will afford medical facilities for the Employee who gets injured in the course of his/her duties provided such injuries are not caused by the Employee's negligence. 2.0 2.1

Discipline 2.1.1 If in the opinion of the Employer any damage arises from any disregard or failure on the part of the

Employee to comply with any instructions or from any neglect of duty whatsoever on his/her part, he/she shall be liable to a deduction from his/her salary to make good the damage or any part thereof. The Employer shall determine the amount deductible, but it shall be fair and reasonable.

2.1.2 If the Employee after signing this Employment Contract neglects, or refuses, or becomes unable

to perform any of his/her duties or fails to comply with the rules and regulations from any cause (excepting ill health not caused by his/her own misconduct), the Employer shall terminate this Employment Contract forthwith and all rights and advantages accruing to him/her by virtue of this Employment Contract shall cease.

2.1.3 The employer shall investigate into the misconduct and while the Employer is still investigating the

Employee may be suspended from performing his/her duties until the investigation is concluded.

DISCIPLINARY ISSUES

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2.1.4 The Employee is required to acquaint himself/herself with the disciplinary procedures as laid down

by the Employer. (See the Basics of Disciplinary Procedures and Disciplinary Actions on Appendix 1). The Employee is required to read and understand these procedures before signing this Employment Contract.

2.1.5 The Employee shall in all respects adhere to the terms and conditions of this Employment

Contract and so shall the Employer, failure to which this Employment Contract shall be terminated by either side.

Signed by

(Full Names of Employee):

Signature:

Date:

Signed by

(Full Names)

Signature:

on behalf of the …………. Ltd.

In the presence of:

Name:

Address:

Title:

Signature:

Date: Date:

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