EMPLOYMENT CONTRACT

Employment Contract made the _____ day of _______________ between ……… Limited (hereinafter called the
"Employer") 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 "Employee") of the other part.

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 Gratuity

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 Leave

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

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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 Maternity Leave

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

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

1.9.3An 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

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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 DISCIPLINARY ISSUES

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.

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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: Date:

on behalf of the …………. Ltd.

In the presence of:

Name:

Address:

Title:

Signature:

Date:

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APPENDIX 1

DISCIPLINARY PROCEDURES AND ACTIONS

The Employee shall abide by the laid down rules and procedures and any deviations from the expected behavior
shall render the Employee liable to disciplinary actions as follows:

Any of the following matters may amount to Gross Misconduct and therefore justify Summary dismissal of an
Employee, which shall constitute a lawful dismissal:

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(a) Absence from work station without lawful cause or express permission of the immediate supervisor (72
hours).

(b) Being intoxicated either by alcohol or drugs and an Employee rendering himself/herself unwilling and or
incapable of properly performing his/her work.

( c) An Employee willfully neglects to perform his/her work which is his/her duty to perform or carelessly and
improperly performs any work which from its nature it was his/her duty under this Employment Contract.

(d) An Employee uses abusive or insulting language or behaves in a manner insulting to his/her Employer
or to a person in authority over him/her by his Employer.

(e) An Employee knowingly fails or refuses to obey lawful and proper command, which was within the
scope of his/her duty to obey, issued by the Employer or a person placed in authority over him by
his/her Employer.

(f) An Employee is arrested under any written law for any offence punishable by imprisonment and the
Employee is not within ten (10) days either released on bail or bond or otherwise set free.

(g) An Employee convicted by a court of law of an offence directly connected with the Employee's duties
for which he/she is punished with a term of imprison or which reflects adversely on the honesty or
moral integrity of the employee.

(h) An Employee knowingly misappropriates/defrauds, and or steals from the Employer.

(i) An Employee improperly discloses information about the affairs of the Employer.

(j) An Employee sleeps on duty, when he/she is supposed to be working thereby endangering the safety
of others.

(k) An Employee is dishonest in the course of his/her duties.

(l) An Employee who is greatly indebted.

(m) Fighting and assault or engaging in riotous and or unlawful strikes.

(n) Harassment of other and female workers.

The list given above forms the basis of disciplinary procedures. In all cases where a serious offence has been
committed the Employer shall give consideration to dismissal action with loss of all privileges as an appropriate
disciplinary action.

GENERAL RULES FOR CONDUCT

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Except for situations defined above under Disciplinary offences that constitute gross misconduct punishable by
summary dismissal, breaking the following rules shall amount to misconduct and dismissal may follow Final
Warning.

a) Punctuality
An employee who is perpetually late for his duties, thereby failing to observe working hours.

b) Refusal to take alternative duties

An employee who refuses to take alternative duties as instructed by his/her seniors.

c) In none performance of duties

In a case where an Employee fails to meet the set targets.

d) frequent absence from duty without permission

in a case where an Employee frequently absents himself/herself from duty without express permission
from immediate supervisor or lawful cause.

e) Private interests and private activities

An Employee engages in private interests and private activities that conflict with his/her official duties at
Sumaria Industries Ltd.

The list is not exhaustive; many more instances may be included as time goes by.

DISCIPLINARY PROCEDURES

Except where the offence warrants summary dismissal, the disciplinary procedures will demand that a Warning
system be followed as follows:

1. First Warning

1. Where the offence committed is not serious, but the offender needs to know the views of the
Management, such an offender will be given a verbal warning by immediate supervisor. A note
will be made on the file that a Verbal Warning was given. The note will be dated.

2. If the offence is serious the Employee will be served with a First Written Warning, which will state
the details of the offence.

2. Second Warning

If the Employee does not heed the First Warning and commits an offence similar to the first one, that
warranted the First Warning, such an Employee will be served with a Second Warning.

3. Third and Final Warning

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 An Employee who refuses to heed First and Second Warning will be served with the Third and Final
Warning. Should such an Employee fail to heed the Third and Final Warning, the Employee will be
liable to Dismissal without further reference to him/her.

SALARY BREAKDOWN

Name: ___________________
Title: ___________________
Grade: ____________
Department: ___________________
Basic Salary Range (Per Month): ___________________

We are pleased to confirm the following salary as per contract, effective __________

Salary Per Month Kshs

Total Basic ___________________

Housing Allowance ___________________
Medical Allowance ___________________
Leave Travel Allowance ___________________
School Fees Allowance __________
Total Gross Salary __________

All above is subject to applicable tax deductions instituted by the Kenya Revenue Authority of Kenya.

Yours Sincerely,

…………………………. Limited