Human Resources Policies and Procedures

1 INTRODUCTION

1.1 Purpose

This employee handbook highlights the goals, policies, procedures, benefits, and other general guidelines which provide structure, consistency, and reasonableness. It also ensures compliance with Kenya employment act and other national and international legislations. The aim is to inform employees of their responsibilities and the expectation of the company.

The information contained applies to all employees of Chiromo Hospital Group (CHG) including those whose contract of employment was done under Chiromo Lane Medical Center.

It is presented as a matter of information only and its contents should not be interpreted as a contract (expressed or implied), between the company and the employees. This manual supersedes any previous information and may be changed, or modified by the Board of directors under the advice of CHG management at any time. It’s within the Company’s right to withdraw or change the policies, procedures, benefits, and working conditions described in this manual at any time without prior notice, as they are affected by changes in applicable law, regulations, economic conditions and the way CHG does business. The HR policies and procedures manual will be revised every three years. It is the responsibility of Human Resources Manager to ensure all revised policies and procedures occurring within the three years which may be contained in company memos, government gazettes or any other communiqué having an implication and related to management of human resources are included in the three years’ revised manual.

The Company will make every effort to notify employees when an official change in policy or procedure has been made but employees are responsible for their own up -to-date knowledge about Company policies, procedures, benefits, and working conditions.

1.2 The Company

CHG, founded in 1997, is psychiatric private in-patient and out-patient level 5 (five) hospital, registered and recognized by the Ministry of Health. CHG is the leading private institution in Kenya designed to treat psychiatric disorders which include depression, psychosis, bipolar, schi zophrenia, alcohol dependence substance abuse and trauma and others.

Vision: To provide dignified, quality mental healthcare in Africa

Mission: To pursue excellence in the delivery of mental services by adhering to evidence- based practices

Core Values: Respect, Honesty, Innovation and Reliability

Corporate Tagline: Recovery in dignity

The corporate tagline ‘Recovery in Dignity’ defines the obligation to all the clients to provide the highest quality of services through listening, evaluating, assessing and attending in the most ethical manner.

2 EMPLOYMENT TERMS

2.1 Conditions of Employment

Employment is essentially governed by employee’s contract of employment, and the company policies, in conjunction with this Manual. Regular full-time employees are mainly employed on permanent basis and three (3) years contract.

The hospital may from time to time hire part time and/or temporary employees to stand in for employees who may be away for a short time, or who may be employed for the duration of a particular venture or event. Neither part time nor temporary employees will be eligible for benefits other than their wages.

Employment classifications This section further defines employment status and benefit eligibility.

2.2 Regular Full Time Employees

These are those employees who are regularly scheduled to work at CHG on a full-time schedule. Generally, they are on permanent basis and are eligible for CHG benefit package, subject to terms and conditions, and limitations of each benefit program as spelt out on their contract of employment. These employees are required to complete annual performance plans and appraisals since their continued employment is la rgely determined by their performance. The official retirement age for employees of CHG is sixty (60) years. Employees on a fixed term renewable contract, retire at the end of the contract year that includes the employee’s 60th birthday.

2.3 Probationers

An employee is placed under probation while their performance is being evaluated after selection to a new position. For new employees, where the appointment classification is spelt out on the contract, the employee is eligible for all benefits apart from pension/provident membership during probation. Employees who are placed on probation as a result change of role, shall be eligible for all benefits as spelt out on their contract of employment. Employees who satisfactorily complete the probation period will be notified in writing. The probation is 3 months (90 days) and can be extended for another 3-6 months. The aggregate probation period should not be longer than 12 months.

2.4 Short Term Contractual Employees

These are full time employees who are hired as interim replacements to temporarily supplement the work force, or to assist in the completion of a specific project. Employment assignments in this category are of a limited duration mainly one year and below. Employment beyond any initially stated period does not in any way imply a change in employment status. Temporary employees retain that status unless and until notified of a change. These employees are not eligible for medical and provident fund membership. They are however eligible for leave benefits.

2.5 Consultants

These are experts employed on part time basis. The work and nature of engagement is specified on terms of reference (TOR) and consultancy contract. The relationship of CHG and the consultant is that of an independent contractor for tax purposes or any other purpose. They are not entitled to any employee benefits of CHG unless specified on the consultancy agreement.

2.6 Part time /Locum

These are mainly part time employees mainly in medical related areas who are hired on need basis. They provide a source of support in instances where there is a shortage of staff in critical areas. The locum employee is paid for days worked during the contract period as determined by the Rota. Due to the nature of their engagements these employees are not eligible for benefits including leave, apart from their salary.

2.7 Casuals

These are employees who have established an employment relationship with CHG but who are assigned to work on an alternative and/or unpredictable basis. The terms of engagement provide for payment at the end each day and they are not employed longer than 24 hours at a time. Due to the nature of their engagements these employees are not eligible for benefits including leave, apart from their wages.

2.8 Graduate Trainees

These are individuals who have completed their studies and internship and would require further training on application of their training. These individuals provide regular services to CHG though under supervision. The terms of engagement are similar to short term contracts only that their immediate previous engagement with CHG is internship. Graduate trainees’ contract is normally three to six months.

2.9 Work Experience Programme Trainees/Internship

These are individuals undergoing training in their area of expertise through an application from their learning institution or personal request. The objective of this learning programme is for participants to acquire experience in their profession and therefore there is no financial remuneration. These opportunities are exclusively accessible when the company has designated supervisors, owing to the inherent nature of the business operations. The duration of participation in the Work Experience Programme varies depending on the participant's category. For instance, high school minors are allowed a maximum of two weeks of participation for half-day sessions, college or university attachments and interns typically extend for three months, while clinical placements range from six to twelve months. They do not replace regular employees, but work under observation. Trainees are not entitled to a job after completion of their programme.

2.10 Volunteers

These are individuals who carry out tasks or provide services to the institution without any financial expectation or receipt of compensation. They are mainly placed on areas where the company provides services that are not chargeable to clients for instance corporate social responsibility events, community health promotions activities, awareness programs and training of interns.

3 RECRUITMENT AND SELECTION

CHG recognizes that a professional approach to recruitment and selection helps to attract and appoint individuals with the necessary skills and attributes to fulfill company’s aims and support the business objectives. All appointments should be made on the Principle of Merit, compliance with all relevant national Legislation and adherence to this policy and related procedures. CHG is an equal employment opportunity employer. It does not discriminate in employment because of age, religion, tribe, race, colour, gender, national origin, disability, marital status, health status, pregnancy and political opinion.

3.1 Recruitment and selection procedure

The Human Resources role is to facilitate the hiring of qualified people by designing strategies to attract the required talents, drafting the advertisement, screening of applications and guiding the interview process. Applicants are selected for interview based on their qualifications for the position.

Recruiting includes developing a job description that describes a job’s major functions and required qualifications, advertising the position, screening applicants and interviewing qualified candidates. In order to enhance talent development and internal equity opportunities arising will be advertised internally before running an external job advertisement.

When a final candidate is selected, the Human Resources will verify a minimum of 3 of the candidate’s references. If the references are positive, an offer of employment will be made. The offer will be an appropriate salary in accordance with CHG’s salary scales, also considering salary history and equity among employees with similar qualifications in similar positions.

All prospective employees will be required to undergo a medical examination at the expense of the company. A medical practitioner will carry out medical examination. The basis for the examination is for the company to proactively manage its employee’s health conditions and not for discriminatory purposes.

New employee will not be denied a job opportunity on condition of his/her health status so long as it is confirmed by a qualified medical practitioner that one is fit to perform the appointed role and may not be hazardous to other employees.

3.2 Letter of Appointment

Letter of appointment is issued to all persons who are employed. A revised letter of employment may be issued in appropriate circumstances e.g. upon completion of the probation period or when professional examinations have been completed. A letter of appointment shall include; position and department, date of appointment, category of employment, workstation, supervisor, hours of work, annual leave, benefits, deductions, confidentiality of information gained during employment, termination of employment and remuneration package. Whereas the letter of appointment indicates the workstation of deployment, it is condition of employment at CHG that an employee will be required to work at any operational branch or department of the company as may be advised by management. All letters of appointment will be signed by the CEO or any other official acting in the capacity of the CEO.

3.3 Probation Period

All new and rehired employees on term of employment exceeding one year must complete a 90-day probation period after their date of hire. The probation period is intended to give new employees the opportunity to demonstrate their ability to achieve satisfactory level of performance and to determine whether the new position meets their expectations. CHG uses this period to evaluate employee capabilities, work habits, and overall

performance. During the probation period, new employees are eligible to a monthly pay. After confirmation to regular full-time employees, they will be eligible for other CHG-provided benefits, subject to the terms and conditions of each benefits program. Employees should read the information for each specific benefits program.

At the end of the probation period, the employee will meet with his/her supervisor to discuss the overall performance. At that time, the employee will receive a written performance evaluation, and the supervisor will make a recommendation regarding continued employment. If the employee’s performance is satisfactory the employee enters the “regular” full time employment classification. If it is unsatisfactory, the employment will be terminated. Any significant absence will automatically extend the period of probation by the length of the absence. If CHG determines that the designated probation period does not allow sufficient time to thoroughly evaluate the employee’s performance or employee’s performance is unsatisfactory but the supervisor finds that there is a chance to improve the employee’s performance to expected standard the probation period may be extended for a specified period but not longer than six months. Either party may, with seven days written notice, terminate the employment contract at any time during this period.

The employee should be provided with a written performance improvement plan. This plan should define the areas of weaknesses, the expected improvements and the period for which the employee will continue to be on probation. The plan should be discussed with the employee and signed by both employee and supervisor and copy of the plan filed by the human resources manager. The aggregate probation period should not be longer than 12 months.

3.4 Induction/Orientation Programme

All new employees shall undergo an orientation program in order to familiarize themselves with CHG’s policies and procedures. The duration of the program will vary depending on the level at which the employee is appointed. The main focus is to help the new employee understand CHG’s organizational structure, mission, vision and objectives in order to increase their commitment to CHG. Induction and orientation programs will be conducted for all new members of staff.

Specifically, the new employee shall be provided with:

• i. Reporting time and name of a person they will first meet upon arrival,
• ii. Information regarding CHG’S historical background, organizational structure as well as human resource policies and procedures.
• iii. A copy of his/her job description defining their role in the company.
• iv. Review of the employment contract and its terms.
• v. CHG’s Policy and Procedures Manuals.
• vi. In addition, the new employee should be introduced to all other staff who are encouraged to warmly welcome all new staff members. The induction should continue during the probationary period through careful monitoring and counseling in order to ensure that the new employee adjusts to CHG’s environment.

4 TALENT DEVELOPMENT

Talent development plans are designed with the understanding that each individual staff has the potential to reach the highest competency and job level within company subject to good planning, allocation of resources in terms of time and funds by the employee.

Employees, managers and Human Resources will collaborate to build a continuous professional development (CPD) culture. An employee and their supervisor have a shared responsibility of seeking new learning and coaching opportunities and assessment development needs. Human resources will facilitate any staff development activities and processes. Training opportunities include;

• a) Formal training sessions (individual or corporate)
• b) Employee Coaching and Mentoring
• c) Participating in conferences
• d) On-the-job training
• e) Job shadowing
• f) Job rotation

All employees are expected to be familiar with the skills set for their current jobs and next jobs in their career path. Employees are encouraged to get career/ executive coaching from their manager s and human resources department.

All employees that have worked for the company more than four months are eligible to participate in external training programs individually or in teams. At the beginning of the year all employees will submit their training plans to their managers to facilitate development of training budget and corporate training calendar. Employees can choose to attend as many training programs as they want, provided they don’t exceed the budget and days limit. Employees can be absent for training for up to 10 days per year.

The employment types and job grades provide a source of information to employee regarding their career journey within CHG. Managers are required to create internal talent pool and succession planning for each role.

5 HOURS OF WORK

CHG provides quality patient care 24 hours a day.

5.1 Official Working Hours

An employee’s official working hours are determined by the employment category and supervisors of each department. The normal working hours of each week is from 8.00 a.m. to 1.00 p.m. and from 2.00 p.m. to

5.00 p.m. (Monday to Friday) and 8.00 a.m. to 1.00 p.m. on Saturday. This will vary based on departmental

work duty roster. Full time employees are expected to work for 48 hours a week. A public holiday has an effect of reducing the work week hours by 8 hours.

All employees are required to be present at their workstations during working hours as stated in individual contracts and this policy. An employee may be absent from work with written approval from their supervisor. If an employee is absent without leave or prior permission for a whole day, deductions equivalent to the day’s wages shall be made from the salary, and this may call for a warning letter.

5.2 Attendance/Tardiness

As an employee of CHG, good attendance and punctuality are important. Each employee is required to report to work as scheduled. Management recognizes that circumstance beyond an employee’s control may cause him/her to be absent from work for all day or part of the day. However, unauthorized or excessive absences or tardiness will not be tolerated and may result in corrective action up to and including immediate employment termination, unless the absence is otherwise excused or underlying reason is legally protected.

Each employee is to notify the supervisor in the event of an unscheduled absence no later than one hour after the scheduled time to report to work. Habitual absenteeism and tardiness will be handled in accordance with CHG’S grievance and disciplinary procedure.

6 COMPENSATION AND BENEFITS

The board of CHG will review and approve, as appropriate, funds to be allocated for total compensation, which would include Cost of Living Adjustment, base salaries, and employees’ benefits. Compensation and benefits practices will take into account sustainability of performance, effective delivery of short-term goals and related business risks. The CEO in collaboration with Human Resources will ensure that salary ranges are updated at least annually, that all individual jobs are market priced every two years, and that pay equity adjustments are administered in a fair and equitable manner.

The compensation policy and procedures shall be reviewed by the remuneration committee (REMCO) nominated by the board. These reviews will be on quarterly basis.

6.1 Job Grades and Salary Ranges

The salary range for each grade will be determined from time-to-time following salary surveys and job analysis CHG has a maximum of 11 job and salary grades described as below.

6.2 Salary Reviews

• a) New Hires To ensure internal equity, starting salaries are determined based on new employee’s prior experience and education directly related to the position. Before offering the position, the Human Resources Department will conduct a position analysis to determine the average pay for the position. A new employee may be paid starting salaries up to the market reference point or salary range midpoint, provided internal equity is observed. With appropriate justification submitted to the CEO, a HR manager may offer higher starting salaries.

• b) Annual Salary Adjustment Every calendar year, on January 1st, CHG may provide salary increase being Cost of Living Adjustment (COLA) subject to board approval. Employees eligible for annual increases shall have been employed in their current position at least six (6) calendar months prior to the effective date for implementation. A staff will not be eligible in a case where a significant adjustment, of more than 20%, had been affected to their salary within the last six months prior to annual increment. This adjustment is applied to all employees consolidated basic salary with the exception of employees whose salary is above the maximum of the range. CHG will in addition factor merit adjustment where a staff performance is above ‘met’ in performance rating in the completed performance year ending July 31st. Merit increases will be based on satisfactory annual performance as documented by a written performance evaluation, beginning on August 1st, when the financial year starts. The amount of the merit increase will be determined by a percentage established each financial year by CHG management and approved by the remuneration committee (REMCO).

• c) Adjustments to Salary Promotion Promotion is a formal advancement from one position to a more responsible vacant position in a higher salary range and grade. Promotion results either when a staff is successful applicant for such a position or when the company decides to promote internally to such a position. Promotions are determined based on organizational needs, budget availability, and CEO approval.

A maximum of 20% increase to the staff current salary or the beginning salary for the new grade whichever is higher will be offered on promotion. In both cases, the new salary cannot be less than the minimum or more than the maximum of the new range or grade. For salary grades, most salaries are expected to cluster around the grade midpoint, which is a measure of the market rate. Under extraordinary circumstances, the CEO may request that an exception be made to provide an increase in excess of the above parameters.

• d) In-Range Salary Increase An in-range salary increase is given to recognize an employee for meaningful increased duties and responsibilities in the current job classification (without a change in classification level and/or salary range). The increase in the scope and complexity of assigned duties and responsibilities must be both significant and permanent for this request to be approved. Managers can request a salary increase for their direct reports based on this criterion by submitting a Salary Adjustment form to Human Resources Department. Requests received will be reviewed and approved by the CEO. The direct reports to CEO requests will however be approved by REMCO.

• e) Above-range Salary Adjustments Employees who are above range are not eligible for salary increases until adjustments to the salary structure bring it to within range.

• f) Equity and Market-Based Salary Adjustments From time to time, it may become necessary for CHG to make salary adjustments to correct an inequity in staff salary. An internal equity adjustment may be made when there is an inequity between the salaries of staff with comparable qualification, experience and performance and in the same job and with comparable experience, qualifications, and performance. This may result from new offers made to new hires as a result of their salary level prior to joining CHG. A market (external equity) adjustment may be made when an employee’s salary falls below market pay for comparable jobs. To request a salary adjustment based on this criterion, the department manager should submit a Salary Adjustment form to the HR department to review and conduct a salary analysis on the position. Factors such as actual job duties, competencies and benefits will be used to determine if the request is justified.

• g) Acting and additional responsibility allowances. This means the pay an employee receives when required to perform the duties of a higher classification level for a temporary period provided the employee meets the minimum qualifying period of one month. An employee will receive a 20% acting allowance. Acting duration should not exceed one year. Additional Responsibility Pay will be awarded to an employee if assigned by the supervisor to take on significant part of the responsibilities of jobs of a higher grade than regular ones for a period longer than one month. Additional Responsibility allowance shall be 10% of the consolidated basic salary. Acting and responsibility allowances are temporary and can occur or cease during anytime of the year.

• h) Decrease in Salary If you are voluntarily or involuntarily moved to a job with a lower salary range and/or lower contribution level, your salary may be reduced to fall within the range of the lower grade level. The effective date of the salary change will be the same as first date of the newly assigned position in the lower salary range. This can occur during anytime of the year. The decrease in salary must satisfy the labour laws requirements.

Other circumstances that may contribute to decrease in salary include events that significantly affect financial position of the business such as pandemics.

6.3 Salary Payment

CHG shall provide all full -time employees with their total monthly basic salary plus allowances (less any statutory deductions) on or before the last day of each month. Salaries shall be paid monthly in arrears based upon the actual and approved number of hours and days worked during each month, taking into account, any working days when the employee was absent from work without reasonable cause.

CHG does not pay salary or allowances in cash. The company remits salaries directly into an employee’s bank accounts on or about the last day of the month. Pay slips are distributed accordingly by the Accounts Department through electronic means. It is the employee’s reasonability to advise review his/her pay slips and notify the Accounts Department of any believed discrepancies.

As a general rule CHG does not make any salary advances to employees The employee is responsible to supply CHG with documents for payment of salary and allowances:

• a) Photocopy of KRA PIN certificate,
• b) Photocopy of NSSF card
• c) Photocopy of NHIF/SHIF card and
• d) HELB clearance certificate or loan repayment instructions letter.
• e) Bank account details
• f) Personal email for payslip distribution CHG will supply all new workers with the appropriate letters and forms required for SHIF and NSSF registration.

6.4 Salary deductions

The following deductions are applicable as defined in each;

• a) Income Tax; Withholding and pay as you earn (PAYE) All wages earned, inclusive of locum hours, are subject to income tax, as required by Kenyan law. Under the Pay As You Earn (PAYE) program, CHG will withhold the required income tax from each employee’s salary and remit it on her/his behalf to the Kenya Revenue Authority. All fees and payments paid to staff on consultants’ category will be made less 5% withholding tax. Consultants are required to provide finance department with invoices on or before 4th day of the month. Payments to staff on consultants’ category is made within 14 days after submission of invoices, ordinarily of the 18th day of the subsequent month.

• b) Statutory deductions CHG shall deduct and make payment from each employee’s monthly salary for the following statutory deductions;
• i. PAYE
• ii. NSSF and
• iii. NHIF/SHIF.
• iv. Other deductions that may be advised by the government or other law enforcement authorities
• c) Provident/Pension Fund The purpose of this fund is to assist in saving for retirement and pension. It is issued by the allocated insurance provider. Employees on permanent basis are members of the provident/ pension fund. An employee contributes 7.5% of his/her pay while the company contributes a maximum of 7.5% of the employee pay. The company considers NSSF contribution to be part of provident/pension fund and

therefore may allocate part of employee contribution and company contribution to the NSSF or its approved scheme. The employers’ contribution is done as a matching principle and therefore the contribution is only done to staff who contributes their part. Staff may opt to contribute more than 7.5%. The employer will not match any voluntary contribution above the 7.5%.

• d) Benevolent fund This is a Social Welfare Fund established to accord members and their immediate family financial assistance i n case of death. The fund covers the member, spouse, four children and a maximum of four parents. Membership to this fund is voluntary. Staff members are encouraged to join.

• e) Deductions on Request by an Employee and a Government Agency Employees and government authority may request the company to make deductions on their wages depending on different circumstances. This includes loan with banks and SACCOS, children court orders for support of a minor, higher education loans board (HELB) etc. For all non-statutory deductions, a formal written request duly signed by the staff will be placed on staff personal file. The company shall not accept non statutory deductions that would if deducted take the net salary to below a one third (1/3) of the gross salary.

7 BENEFITS

Benefits eligibility is dependent on a variety of factors, including employee classification. Each employee benefits are spelt out on the employment contract. Those employees who have successfully completed their probationary period and have been confirmed to regular full-time employees in writing are eligible for provident fund. Other benefits indicated on the employment contract become applicable upon joining the organization.

7.1 Medical Insurance

CHG provides health insurance to the individual employee. Employees who are eligible for this benefit are mainly employee with a contract of three years or on permanent basis. It is the responsibility of employee to familiarize him/herself with the details of the policy in regard to medical cover.

7.2 Bereavement Benefit

All staff are entitled to a bereavement benefit in the event of death of a member of staff. The benefit is guided by the following conditions:

• a) Hospital bill Support At its discretion the company will pay part or full outstanding hospital bill during the last admission (inclusive of reasonable doctor's charges)

• b) Mortuary fees At its discretion the company will undertake to pay reasonable mortuary fees for up to a maximum duration of two weeks for a member of staff

• c) Coffin The company will pay up to a maximum of Kshs.5, 000/- for deceased staff / subject to the presentation of three competitive quotations.

• d) Hearse The company will pay for a hearse to be hired from the most competitive of three quotations from licensed/known funeral Homes/transporters.

• e) Transport of staff for burial The company will provide transport for staff working in the same department with the deceased staff member to the burial place.

7.3 Workers Compensation

In accordance to the Work Injury Benefits Act 2007, CHG shall provide Insurance to employees in the event of serious injury resulting in disablement and/or death during employment, provided it does not arise from the deliberate or willful misconduct of the employee.

Any injury or accident, even one not requiring medical attention, occurring while on duty should be reported to the Supervisor and CEO as soon as possible. The employee and/or witnesses may be asked to write a report of the incident. If any such injury or accident is serious, and requiring medical care, will be handled according to the Work Injury Benefits Act and shall duly be reported to the Director of Occupational Safety and Health Services.

Neither CHG nor the insurance underwriter will be liable for the payment of worker’s compensation benefits for injuries that occur during an employee’s voluntary participation tasks outside their scope of work, during off-duty recreational, social, or athletic activity not sponsored by CHG.

Staff on internship, work experience programme and clinical placement are required to have a personal accident cover during the period of their programme at the company.

7.4 Benevolent Fund Scheme

HR has set up a voluntary benevolent fund and the objective of the Fund is to provide funds for cushioning members against funeral expenses for the staff members and their families.

The membership is wholly on a voluntary basis and is open to all staff. The monthly contribution is KES 200 which is subject to change is collected through payroll. A minimum of two (2) months of membership and contributions to the Fund is required before one can make a claim.

Below is rates of benefits guide, which is subject change from time to time:

Particulars Amount Death of contributor KES 50,000 Death of spouse or child KES 40,000 Death of biological parent KES 20,000 Death of sibling KES 10,000 Death of parent-in-law KES 10,000 Transport Maximum of KES 10,000 in case of death of staff member or immediate family member, that is spouse or child

Claim procedure

• a) Submit an application for assistance (along with all supporting documentation).
• b) Complete interview(s) and/or appropriate counseling with the Steering Committee Members or a psychologist.
• c) A review of the application is made and fund disbursed

Funds should be disbursed within reasonable time to meet the specific need.

Fund Management The fund is managed by a steering committee with representation of (i) Two (2) non-management staff members, (ii) One (1) management staff (iii) One (1) staff from finance department and (iv) One (1) psychologist. All funds will be held in company account designated for this purpose. The committee member from finance will provide quarterly funds update to the steering committee. The term of each committee will be three years A steering committee member is eligible for re-election/nomination once.

Disbursement will not be made for the following expenses;

• a) Business investments or anything that brings financial profit to the individual or family
• b) Paying loans and advances. Exceptions can be made when an individual has had to get a loan in a crisis or emergency e.g., hospitalization, death, etc.
• c) School fees

The company may at its discretion provide funds to the scheme in case the account is depleted.

Where the funds increase beyond the regular needs the steering committee may recommend a contribution holiday for members.

7.5 Provident scheme

CHG has established a provident fund scheme with the Jubilee Insurance Company for employee and company contributions exceeding the NSSF specified amount. Employee’s contributions to the program are withheld from the monthly salary payment and remitted to the Fund on their behalf, as required by law. Any amount contributed in excess of the amount allowable by the Kenya Revenue Authority or the Retirement Benefits Authority will be subject to tax. Pension benefits are only applicable to those employees who have successfully completed their probation period.

7.6 Breast-feeding

Pursuant to the breast-feeding mother’s bill, 2017 CHG encourages breast-feeding and will make every effort to accommodate an employee who wishes to breast feed upon return from maternity leave by offering flexible working hours for up to six months post-partum.

A lactation area is also designated at the office for breastfeeding mothers. Lactation breaks are provided with a reasonable break time for purposes of breastfeeding and related activities.

8 EMPLOYEE RELOCATION AND TRAVEL EXPENSE

This policy outlines the guidelines and procedures for the reimbursement of relocation and travel expenses incurred by employees of Chiromo Hospital Group in the course of their duties. This policy applies to all employees who are required to travel for official business purposes and/or relocate for employment at Chiromo Hospital Group.

8.1 Relocation Expenses

• i. The company will provide relocation assistance to eligible employees as determined by the Human Resources department and in accordance with Kenyan employment act 2007 and other laws.
• ii. Eligible relocation expenses may include but are not limited to:
• - Moving and transportation expenses
• - Temporary lodging
• - Home search assistance
• - Miscellaneous expenses related to relocation (e.g., storage fees)
• iii. Upon relocation, employees shall be paid a settlement allowance equivalent to one and a half month’s salary to cater for any expense that arises due to and during relocation.
• iv. The company shall further pay for the transport of household goods on the presentation of quotations from 3 different transport providers to the procurement department.

8.2 Travel Expenses

• i. Employees traveling for official business purposes will be facilitated or reimbursed for reasonable and necessary expenses incurred in accordance with this policy.
• ii. Eligible travel expenses may include but are not limited to:
• - Transportation (e.g., airfare, train, rental car)
• - Accommodation (e.g., hotel, temporary lodging)
• - Meals (per diem allowance)
• - Other incidental expenses related to travel
• iii. Employees must use the most cost-effective means of transportation and accommodation unless otherwise approved by the CEO.

8.3 Per Diem Allowance

• i. The company will pay Ksh 2,000/= per day Per Diem where a staff is on full board and away for period of less than 14 days.
• ii. For staff on longer assignments typically exceeding 14 days and on full board, the company shall pay Ksh 1,000/=.
• iii. For staff working out of office for a full day, but within the region typically a distance of not more than 50KM, the company shall pay a Per Diem of Ksh 1,000/= to cater for meals and incidentals.

8.4 Mileage Reimbursement

• i. Employees who use their personal vehicles for authorized business travel will be reimbursed Ksh 35 per KM.

• ii. Mileage reimbursement rates will be communicated to employees by the Human Resources department.
• iii. Employees must accurately record the mileage for business travel and submit mileage reimbursement requests along with supporting documentation.

8.5 Accommodation and Transport

• i. The company shall offer accommodation in a standard hotel where a staff is on a business assignment.
• ii. The hotel level and means of transport shall be at the discretion of management guided by prevailing circumstances. Employees are responsible of ensuring accurate and comprehensive documentation of all incurred expenses. Non-compliance to these guidelines may lead to reimbursement denial or disciplinary measures. The company will regularly review and, if needed, amend this policy to ensure alignment with best practice and legal requirements and alignment to corporate objectives. While intended as a general guideline, specific procedures outlined by the company may supersede. For inquiries or additional information, employees should reach out to the Human Resources department.

9 PERFORMANCE MANAGEMENT

9.1 Performance Planning and Evaluation

The performance evaluation provides a record of how well an employee is performing his or her job. It facilitates to justify a merit increase and identify an employee’s training needs. It is also the basis for any promotion. The initial performance evaluation for all employees is completed at the end of the probationary period and on quarterly basis. In the probation performance evaluation, the supervisor will recommend confirmation of employment, extension of the probationary period, or termination of employment.

Every employee should participate in an performance management process. The performance management period for full-time employees occurs quarterly throughout the year, structured as follows:

• - Quarter 1 (Q1): August 1st to October 31st
• - Quarter 2 (Q2): November 1st to January 31st
• - Quarter 3 (Q3): February 1st to April 30th
• - Quarter 4 (Q4): May 1st to July 31st Supervisors are responsible for setting up the planning and review meetings on or around the specified date normally 21st of August, November, February and May.

Employees shall to seek feedback from their supervisors and participate fully in any performance related discussion on an ongoing basis. Supervisors are urged to discuss progress with their staff on a regular basis, regardless of whether there have performance issues.

At the end of ea ch quarter, supervisors will submit provisional scores for their teams to human resources department which will undergo calibration. A copy of the final performance evaluation report shall be kept in the employee’s personnel file for every performance period.

A merit increase is not awarded to an employee whose work is not satisfactory. An employee given an unsatisfactory performance appraisal will discuss with their supervisor, the areas of improvement, and a performance improvement plan which includes how to improve their performance, the time frame for improvement, and the consequences of continued unsatisfactory performance. Failure to meet the objects of a performance improvement plan may lead to dismissal of an employee at any time, or reduction of salary in cases where the employee is assigned to, and accepts, a position for which the maximum salary ran ge is below the employee’s salary at the time of assignment to the lower position.

10 STAFF PERFORMANCE PAY

Chiromo Hospital Group (CHG) uses formal performance related pay-out to reward and retain employees who meet specified targets. These pay-outs are only awarded for specific achievements which are subject to an agreed performance criterion. CHG has two categories of performance related pay-outs;

10.1 Performance Based Variable Salary

These pay-outs are made to staff in strategic positions whose key performance indicators (KPIs) are directly linked to CHG strategic objectives that relate to revenue, profitability, quality of care, cost management, cash flow management and future strategic plans of the organization. In essence, CHG aligns salaries of this category of staff to bench-marked market rates by splitting their salary into fixed and variable pay. The variable pay is further linked to their individual performance against the agreed high pressure KPIs. The variable pay structure and frequency are stipulated in the individual staff employment contract for implementation on achievement of the agreed performance levels. Performance based Variable payouts are subject to the following guidelines;

• a. The payout is stipulated in the letter of employment or such other letter of contractual nature.
• b. The individual KPIs are directly aligned to organisational strategic objectives.
• c. The performance level is determined through an objective performance management tool as captured in the letter of employment or other letters of contractual nature.

10.2 Lump-Sum Annual Bonus

This payout made to staff of CHG in recognition of their contribution to the annual performance of the organization. The payment is made only if there is an objective performance management process that provide a link between the contribution of the individual and the overall organization performance for a considerable period in the financial year. Bonus payouts are subject to the following guidelines;

• a. The payout is subject to the approval of Board of Directors of CHG as guided by overall corporate performance and measurement an objective individual staff performance level.
• b. The CEO will approve the departmental performance KPIs before a formal inclusion in the balanced score card (BSC). Such KPIs must be aligned to the organizational goals and attributable to individual staff contribution.
• c. The performance parameters and level for the CEO will be determined through the Balanced scorecard (BSC) as approved by the REMCO.
• d. Funding of bonus programme expenses is subject to company guidelines applicable to accounting, budgeting, payroll, benefits, and CHG principles and practices.
• e. The bonus payout will be available for consideration.
• f. Staff who exit service before the payout will not be eligible
• g. Only staff with a balanced scorecard in the subject financial year period having a calibrated BSC rating of met (rating of 3) and above will be eligible.
• h. The approved payment is computed based individual staff salary at the close of the financial year.

• i. As a guide staff who achieves a rating of met (3) in a quarter will be awarded a 20% of their monthly salary. A rating of 4 will be awarded 25% while that of 5 will be awarded 38% of the monthly salary.
• j. The total budget of the lump-sum bonus will be an equivalent of the total one-month staff salary and is allocated based on individual staff performance captured in item ix.
• k. Staff with open or closed disciplinary matters will have a minimal or no bonus payout.

11 PERFORMANCE IMPROVEMENT PLAN

Performance Improvement Plan (PIP) is a designated written plan initiated by a supervisor as a result of unsatisfactory job performance. An employee and his/her supervisor discuss and clarify the work performance expectations and required improvements. The Performance Improvement Plan can be initiated at any time at the discretion of the supervisor, when it becomes necessary to help a staff member improve his or her performance. In developing a PIP, the supervisor should review the following with the employee;

• a) State specific performance gaps or the areas to be improved; cite examples.
• b) State the level of work performance expectation and that it must be performed on a consistent basis as required by the job expectations.
• c) Identify and specify the support and resources the supervisor will provide to assist the employee.
• d) Establish the plan for providing feedback to the employee. These include review meeting dates, other staff involved. Specify the measurements to be considered in evaluating progress.
• e) Specify the possible consequences if performance standards are not met.
• f) Provide sources of additional information such as the HR Manual, job description, work plan etc. All performance improvement plans must be documented and shall be reviewed not longer than three months. The outcome of each review session shall be recorded by the supervisor. After the staff member meets the expected level of performance, this shall be documented and communicated to the staff. If the staff does not meet the expected level of performance, the supervisor shall document this, and disciplinary action taken as per HR policies. Disciplinary action includes warning letter, demotion and reduction of salary in cases where the employee is assigned to, and accepts, a position for which the maximum salary -range is below the employee’s salary at the time of assignment to the lower position or Termination of employment.

12 LEAVE AND LEAVE RECORDS

12.1 Annual Leave (Vacation)

Employees on short term, three years and permanent contracts are entitled to 22 days annual leave. All planned leave has to be mutually agreed by supervisor and employee, and take into account workloads and the employee’s needs. Leave must be approved in advance, except when the employee cannot anticipate his/her absence. The leave year commences on 1st August and end on 31st July of the calendar year. Annual leave entitlement will automatically be credited to the employee’s leave balance on the commencement of each leave year. For new employees, leave will be pro-rated from the month one joined employment to 31st July.

Leave days shall also NOT be traded for pay not unless there are unusual business needs or staffing requirements and this requires prior approval by the CEO. All leave requests are subject to supervisor’s approval, based on the needs of the office.

Although employees begin accruing annual leave immediately, they may not take annual leave during the first three months of their employment or probationary period. The company may with the consent of the staff divide the annual leave entitlement into different parts to be taken at different intervals provided that one part shall consist of two uninterrupted working weeks.

Employees may only take earned annual leave. When an employee or the company terminates for any reason, s/he will be paid the value of any unused annual leave. In case of resignation employees are required to take terminal leave. An employee will not earn annual leave during a leave of absence or waived notice period.

12.2 Sick Leave

After two (2) consecutive months of service with the company, eligible employee will be entitled to a maximum of eleven (11) days sick leave with full pay and eleven (11) days sick leave with half pay in each period of twelve consecutive months of service, subject to production by the staff of a medical certificate of incapacity to work signed by a duly qualified medical practitioner. Beyond this period, an employee will receive no pay and management will determine the best course of action with regard continued employment. Accumulated sick leave may not be used for any other purpose and is not considered a debt to the employee; no payment will be made for accumulated sick leave upon termination of employment. Upon termination of employment or resignation, no payment will be made to the employee for any unused sick leave. An employee is eligible of sick leave while in any other or during waived notice period.

12.3 Carer's leave

Carer's leave is available to an employee for the care or support of immediate family member, i.e. child, spouse hospitalized. It is typically part of personal (sick) leave and is dealt with similarly to above. However, the period should not exceed 7 days in each year. These days will form part of sick leave days for the employee. An employee cannot take unpaid carer’s leave if they could instead take paid annual leave.

12.4 Disability Leave

If an employee’s illness or injury requires a recuperation period that exceeds the combined amount of sick and annual leave available to her/him, s/he may request disability leave. To be eligible for disability leave, the employee must:

• a) Have used all her/his sick and annual leave.
• b) Provide written certification from a qualified doctor that the employee is unable to return to work for a specified period of time, at the end of which the employee must return to work or present certification that s/he is not yet able to do so for a specific period of time.

CHG may, at its discretion, require that a doctor of its own choosing examine the employee as well. Disability leave is available only to employees themselves. While on disability, the employee will continue to receive full salary and benefits for a period not to exceed twelve months but will not accrue annual or sick leave. After an employee has been on disability for twelve consecutive months, CHG has the option of terminating the employee’s position on ill health reason.

12.5 Maternity Leave

Female employees who give birth to or adopt a child or children must give notice to the employer of the intention to take maternity leave at least 1 month before expected date of birth , and such notice shall be supported by a medical certificate. If proper notice is given, the employee is entitled to 3 calendar months of paid maternity leave. Female employees are eligible for maternity leave irrespective of marital status. Any absence on account of illness due to pregnancy which occurs outside of the period of maternity leave shall be counted as sick leave.

The employee should also submit a copy of her leave application form, completed with the maternity leave days, and/or annual leave days duly authorized by your supervisor.

In the event of termination of employment or resignation for any reason, no payment will be made to the employee for any unused maternity leave.

12.6 Pre-Adoptive leave

Chiromo Hospital Group (CHG) supports employee to bond with prospective adopted children by granting one calendar month pre-adoptive leave with full pay from the date of placement with a child. The pre-adoptive leave will be subject to the following guidelines;

• d. The leave shall be reviewed upon submission of a notice
• e. An employee will submit a notice 14 days before placement, with full documentation evidencing the intention of the adoption society to place the child in the custody of the employee
• f. The review and leave approval will be guided by the employment (amendment) act, 2021 no. 2 of 2021.

12.7 Paternity Leave

A male employee shall be entitled to two (2) weeks paternity leave with full pay during the confinement of his legal spouse. The birth Notification certificate should be issued before the male employee goes for the paternity Leave.

12.8 Compassionate Leave

It is at the discretion of management to grant compassionate leave. Compassionate leave may be granted to an employee by the department head on grounds of urgent private affairs in proven cases of exceptional hardship. For instance, when an employee loses his/her spouse, child, mother, father, brother or sister, he/she will be granted up to five (5) working days on compassionate grounds.

12.9 Study Leave

Employees on three years and permanent contract are eligible to take study leave. This will be provided for days while they are taking exams, presenting a thesis or academic research proposal. Employees are required to submit exam time tables or other academic official document not less than 14 days before the intended leave days. In all cases the cumulative study leave days shall not exceed 10 days in each year.

12.10 Unpaid Leave

Employees may request leave without pay from their supervisor. All requests must be in writing and are subject to approval by the CEO. Periods of unpaid leave will not count towards an employee’s length of service for the

purposes of calculating annual leave. An employee will not earn annual or sick leave during a leave of absence or waived notice period. The period of the unpaid leave will be at the discretion of the CEO.

12.11 Sabbatical Leave

The company may give Sabbatical Leave to allow eligible full-time employees, to pursue personal and professional development, travel, or for family obligations for a period of up to 24 months, subject to approval. Employees must submit a request two months in advance, detailing the purpose and proposed dates. There will be no remuneration as well as benefits during the period of the sabbatical leave. Employees are expected to provide notice of their return to work one month in advance.

12.12 Public Holidays

The company shall recognize all gazetted public holidays and others that may be proclaimed by the government from time to time. Employees who work on public holidays will be compensated for the public holidays by being given time off to be taken within two weeks from when they are earned as agreed with their managers. Employee who doesn’t take their days within these days shall be required to apply to the office of the Chief Executive Officer for extension citing the reason why they were not able to take their days off. If gazetted public holiday(s) falls within the annual leave period, such holidays shall be added to the leave entitlement such that the return day will be extended.

12.13 Responsibility for Leave Records

Staff leave of absence days are managed through am electronic HR Management System (HRMIS). Employees must ensure all leave records are made through the specified system and that their leave records are correct. The supervisor and HR department will maintain leave records of individual employees. These records will be considered as the official leave file and be part of the personnel records.

13 ETHICAL AND PROFESSIONAL CONDUCT

13.1 General Code of Conduct

Chiromo Hospital Group insists that all employees follow ethical and professional conduct. In this regard employees shall ensure that they have knowledge and understanding of their respective roles and obligations towards customers and other employees. All employees shall in the ir professional practice have due regard to the legitimate rights of their clients and all other employees of CHG.

13.2 Code of Ethics

Much of ethics is about integrity, in terms of applying basic values to the decision-making processes and therefore living in a way that allows your personality to be expressed in what you do. Ethics is about the values that lie behind moral choices, the reasons given for them, and the language used to describe them. There is a need to be assured of quality at all times, increase productivity on and lower costs at the same time. This will be easy if all staff have a positive attitude, are honest and responsible, with a high sense of integrity.

Therefore, this code of ethics will enable employees to maintain high ethical standards at all times and to appreciate any restrictions in place as well as to understand their responsibilities.

13.3 Personal Conduct

The conduct of our staff portrays the corporate image of the company. We should strive to reflect positive attitudes at all times.

All employees will have a smart and decent appearance at all times. Th ey should avoid the company of persons whose integrity and competency are questionable. Employee will also desist from habits that are offensive to our customers, visitors and other employees these habits include eating while attending to customers, or stopping mid-way to make unnecessary calls. Employees are required to demonstrate a respectful, welcoming gesture to customers, consulting psychiatrists and other guests and staff. Such gestures include standing when ushering visitors place to sit or serving and conversing to incoming standing customers, psychiatrists, and guest or staff members.

Employees should communicate in languages understood by all i.e. English and Kiswahili while at work.

Other ethical and professional conducts are listed below:

• a) Employees shall complete their work with due care and diligence in accordance with the requirements of the institution.
• b) Employees shall under no circumstances offer to provide or receive in return or solicit any money or in - kind gift from any client or community member in exchange for assistance or help from CHG and/or its employees.
• c) Employees shall act with integrity towards fellow employees and towards clients of the CHG and others with whom they have contact on behalf of CHG.
• d) Employees shall avoid any situation that may give rise to a conflict of interest between them and the clients served by CHG and shall make full and immediate disclosure to the management if any such conflict should occur.
• e) Each employee should conduct themselves in a manner that promotes co-operation, mutual understanding and foster good relations with customers and colleagues.
• f) Each employee should create a positive and favorable impression with customers. This can be achieved by a professional appearance and by being courteous, tactful and punctual.
• g) Employees should at all times wear their name tags, clean ironed and not torn uniforms.
• h) Employees are allowed to dress down on Fridays

• i) Confidentiality: Employees often have access to organization and patient’s confidential information. They must use and/or disclose the information acquired ONLY for the performance of their jobs. Information acquired in the course of employment imposes an obligation to keep such information confidential and to use it only in the interest of CHG. When in doubt employees should consult with the CEO.

13.4 Dress Code

Employees are expected to maintain a high standard of personal hygiene, be clean, tidy, presentably dressed and well groomed. Perfumes should be used in moderation. Well-groomed and tidy hair do for both men and women. Accessories should be moderately worn.

Chiromo Hospital Group reserves the right to request an employee to dress to an appropriate standard as a condition of employment.

Employees should not wear ripped clothing of any sort, low cut clothing exposing cleavage, very short or very long skirts, track suits, open toed shoes. All clothing worn, including uniform, should be clean and neatly pressed at all times.

Employees are expected to adhere to the following guidelines;

• i. Office staff Office staffs are staff working in administrative offices which include managers, finance staff, HR staff, procurement, IT Corporate executive and other administrative staff members. This category of staff will be on business formal dress code Monday to Thursday , business casual Friday and a smart casual on Saturday.

Business Formal; Business formal often is signaling the need for suits and ties. Men: Wear a business / dark suit with long tie Ladies: Wear a business suit with heels (high or low). For Business dress codes, stick to business colours: black, navy blue or gray.

Business Casual; Business Casual is what many people would typically wear to work at the office including corporate wear. Men: Wear a pair of nice khakis paired with a polo shirt or other collared shirt. Ladies: khakis, Patterned, with a fashionable top are appropriate.

Smart Casual; Smart Casual is a combination of casual, business casual, and business dress codes. For Smart Casual, you should look sharp, stylish, and neatly put together. Men: Khakis, trousers and smart coat. Ladies: A nice a skirt or trouser and blazer.

• ii. Psychologists and Psychiatrists Staff in this category may be allowed to dress in accordance with their profession dress code while meeting patients. The company recommends a business semi- formal, however different occasions might require other dress type for this category of staff.

Business semi-formal; Just a notch below formal. Men: Wear a business suit without a tie (optional). Ladies: Business style dress with heels (high or low).

• iii. Uniform Employees working in the laboratory, nursing, pharmacy, security, housekeeping, catering, front office will be supplied with uniform or laboratory coats when they commence employment. The specified un iform must be worn all the time. New uniforms will be issued to staff when required at management’s discretion.

13.5 Drug and Alcohol Offences

Drug and alcohol offences/abuse are taken with great seriousness. As a condition of employment, each hospital employee has an ongoing duty to notify his or her supervisor of any charge, conviction or other adverse intercession of any substance abuse violation occurring in the workplace.

• i. Reasonable Suspicion Testing All employees shall be required to undergo alcohol and drug testing at any time the hospital has reasonable suspicion to believe that the employee has violated the hospital's policy concerning alcohol and/or drugs. Reasonable suspicion for alcohol or drug testing may be conducted when there is adequate suspicion to believe that the employee has used or is under the influence of drugs or alcohol prior to reporting for duty, or while on duty, or prior to or while attending any hospital function on or off hospital property. The hospital's determination that reasonable cause exists must be based on specific, contemporaneous, observations concerning the appearance, behavior, speech or body odors of the employee. The observations must be made by a trained supervisor. Refusal to consent to testing will result in disciplinary action, up to and including termination of employment.

• ii. Smoking in the Office The institution has adopted a NON- SMOKING policy in the Company’s premises.

13.6 Employee Conduct and Work Rules

To ensure orderly operations and provide a safe and best possible work environment; CHG expects employees to follow rules of conduct that will protect the interests and safety of all employees, patients and the organization.

It is not possible to list all forms of behavior that are considered unacceptable in the work place. The following are examples of infractions of rules of conduct that may result in disciplinary action, up to and including termination of employment:

• a) Theft or inappropriate removal or possession of company property
• b) Working under the influence of alcohol or illicit drugs
• c) Possession, distribution, sale, transfer, or use of alcohol or illegal drugs in the workplace, while on duty, or while operating employer-owned equipment.
• d) Fighting or threatening violence in the workplace
• e) Disruptive activity in the workplace
• f) Negligence or improper conduct leading to damage of employer-owned or customer-owned property
• g) Insubordination or other disrespectful conduct
• h) Violation of safety or health rules
• i) Sexual, racial or other unlawful or unwelcome harassment
• j) Possession of dangerous or unauthorized materials, such as explosives or firearms, in the workplace
• k) Excessive absenteeism or any absence without notice
• l) Unauthorized use of telephones, mail system, or other employer-owned equipment
• m) Unauthorized disclosure of business “secrets” or confidential information
• n) Violation of HR policies
• o) Unsatisfactory performance or conduct
• p) Abuse of any form to patients

13.7 Political Activities

No employee shall overtly manifest or canvas for any political party or candidate.

13.8 Breach of Code of Ethics

The management of this company is committed to these standards as they constitute an important part of an employee’s responsibilities to the company. It therefore follows that breaching these standards can attract disciplinary action. It is therefore important for all employees to complete the code of ethics form as a confirmation of having read and understood the code and confirming to comply. Heads of departments in liaison with the HR department should help the staff to understand and internalize this code.

13.9 Conflict of Interest

Conflict of interest arises whenever the personal, professional or business interests of an employee are potentially at odds with the best interests of Company. Employees need to be aware of the potential for a conflict of interest to arise, and should always act in the best interests of CHG.

As individuals, employees may have private interests that from time-to-time conflict, or appear to conflict, with their employment with CHG. Employees should aim to avoid being put in a situation where there may be a conflict between the interests of the company and their own personal or professional interests, or those of relatives or friends.

It is impossible to define all potential areas of conflict of interest. However, if an employee is in doubt as to whether a conflict exists, they should raise the matter with their supervisor.

Procedure Employees must:

• a) Declare any potential, actual or perceived conflicts of interest that exist on becoming employed by CHG to management through the HR office;
• b) Declare any potential, actual or perceived conflicts of interest that arise or are likely to arise during employment by CHG to management;
• c) Avoid being placed in a situation where there is potential, actual or perceived conflict of interest if possible.
• d) Declare any relative and/or spouse running a related business in whatever scale using the Declaration of Conflict-of-Interest Form. If an employee declares such an interest, CHG will review the potential areas of conflict with the employee and mutually agree on practical arrangements to resolve the situation.

13.10 Gift Acceptance

Gifts that influence or appear to influence the recipient’s decision to a business decision are not acceptable. No employee shall receive from an outsider a gift that might influence a business decision to be as it would otherwise not be, were it not for t he gift. Such gifts include anything of monetary value. Employees receiving gifts valued higher than the equivalent of Kes 3,000 should declare this to the HR Department. Failure to declare such a gift is tantamount to breach of the Company’s policy and ma y result in serious disciplinary action

14 WHISTLE BLOWING

CHG Code of Conduct requires all staff members to observe high standards of business and personal ethics in the conduct of their duties and responsibilities. Employees and representatives of the company are expected to practice honesty and integrity in fulfilling their respective work responsibilities and compliance with all applicable laws and regulations.

14.1 Reporting Responsibility

It is the responsibility of all staff members to comply with the Code and to report violations or suspected violations accordingly.

14.2 Procedures:

• a. No Retaliation No employee who in good faith reports a violation of the Code shall suffer harassment, retaliation or adverse employment consequences. An employee who retaliates against someone who has reported a violation in good faith is subject to discipline up to and including termination of employment.

• b. Reporting Violations This policy addresses the company’s open-door policy and suggests that employees should share their questions, concerns, suggestions or complaints with someone who can address them properly. In most cases, an employee's supervisor is in the best position to address an area of concern. Should staff not feel comfortable speaking with their supervisor they are encouraged to speak with the Human Resource Manager or with any other HODs. Supervisors are required to report suspected violations of the Code of Conduct to the Human Resource Manager or the Chief Executive Officer, who has specific and exclusive responsibility to investigate all reported violations.
• c. Acting in Good Faith Anyone filing a complaint concerning a violation or suspected violation of the Code must be act in good faith and have reasonable grounds for believing the information disclosed indicates a violation of the Code. Any allegations that prove not to be substa ntiated and which prove to have been made maliciously or knowingly to be false will be viewed as a serious disciplinary offense.

• d. Confidentiality Violations or suspected violations may be submitted on a confidential basis by the complainant or may be submitted anonymously. Reports of violations or suspected violations will be kept confidential to the extent possible, consistent with the need to conduct an adequate investigation.

14.3 Handling of Reported Violations

The Head of Human Resources will notify the sender and acknowledge receipt of the reported violation or suspected violation within five business days. All reports will be promptly investigated and appropriate corrective action will be taken if warranted by the investigation.

15 GRIEVANCE PROCEDURE

CHG is committed to ensuring that employees are given a fair hearing by their immediate supervisor concerning any grievances the employee may wish to raise including harassment.

Employees have the right to appeal to the Human Resources Manager against a decision made by their immediate supervisor and to be accompanied by a fellow employee of their own choice when raising a grievance or appealing against a decision which they feel is unfair.

The objective of the following grievance procedure is to settle the grievance as closely as possible to its point of origin.

• a) In the event of a grievance including any cases of harassment, employees should raise the matter with their immediate supervisor who shall attempt to resolve the conflict. Should the grievance involve a group of employees then they should ideally elect representatives from amongst their group to progress their grievance.
• b) If the immediate supervisor is not able to resolve the grievance to the mutual satisfaction of all concerned within a time considered reasonable by all employees concerned, then the aggrieved employee or a representative should complete the grievance form and submit it to Human Resources Manager.

• c) The Human Resources Manager will, within as short a period as possible and as close to two working days, convene a meeting of all parties concerned in order to attempt to obtain a resolution.
• d) All statements or proposals made during this meeting, minutes shall be made and signed by those present as an accurate record.
• e) In the absence of agreement, the CEO will be advised. The decision of the CEO will be final and binding.

As indicated above, employee grievances include cases of general harassment and sexual harassment when:

• a) Submission of such conduct is made either explicitly or implicitly a condition of an individual’s employment or continued employment.
• b) Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, or
• c) Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment.

16 DISCIPLINARY POLICY

16.1 Policy Statement

At CHG we expect all employees to adhere to company policies and guidelines. Non-adherence to these policies and guidelines may result in disciplinary action, which could include verbal or written warnings, suspension, loss of privileges, demotion, and, in severe cases, termination of employment. The specific consequences or measures taken will depend on the nature of the policy violation and the organization's policies and practices. Our objective is to maintain a productive and respectful work environment by ensuring fairness and consistency in the application of disciplinary measures.

16.2 Policy Objective

The objective of this policy is to clearly communicate the consequences of non-adherence to company policies and guidelines. By establishing a disciplinary framework, we aim to promote accountability, protect the interests of the organization and its employees, and maintain a work environment that upholds our values and policies.

16.3 Implementation Procedures

• i. Investigation When a potential policy violation is identified, an investigation will be conducted to gather relevant information and evidence. This may involve interviews, documentation review, and any other necessary means to ensure a fair and thorough investigation. To facilitate information the investigating manager may write a memo to the staff to provide a detailed report of their conduct in regard to the issue being investigated. Staff should respond within 24 hours to the memo ensuring professionalism in their response and conduct during investigation. Whereas the staff may give an apology and provide measures taken to prevent future occurrence, it should be noted that the initial written response is primarily a fact- finding document and therefore should have details of events regarding the incident being investigated.

• ii. Severity Assessment The severity of the offense will be assessed, considering factors such as the impact on the organization, potential harm caused, and prior incidents of non-adherence. The appropriate disciplinary measures will be determined based on this assessment.

• iii. Consistency and Fairness All disciplinary actions will be implemented consistently and fairly across the organization, without bias or favoritism. This includes adhering to legal requirements, providing employees with an opportunity to present their perspective, and considering any mitigating factors.

• iv. Disciplinary Committee The organization has established a disciplinary committee responsible for handling disciplinary cases. The committee's main role is to provide a fair and impartial platform for employees to address disciplinary issues and present their perspective, following the guidelines below;
• a) Not all cases will automatically proceed to a disciplinary hearing. The committee will carefully review each case to determine if a formal disciplinary process is necessary based on the severity of the alleged violation and the organization's policies.

• b) In cases where the line manager of the staff member is primarily involved in the investigation, the disciplinary committee may request their presence during the proceedings to provide relevant information and clarify any concerns.
• c) In most cases, the HR manager or a designated HR representative will represent the findings of the investigation to the disciplinary committee. They will present the facts, evidence, and any witness testimonies, ensuring an unbiased and thorough review.
• d) The disciplinary committee will consider all relevant information presented by the HR manager, the staff member involved, and any other relevant parties before making a fair and informed decision regarding disciplinary actions.

• v. Composition of the Disciplinary Committee The disciplinary committee consists of staff members from various departments who are nominated by the CEO based on their capacity to conduct fair hearings and their understanding of company policies and guidelines. They are selected for their impartiality, integrity, and ability to consider the interests of both the company and the staff involved in the disciplinary proceedings. The members undergo appropriate training to ensure they have a comprehensive understanding of the disciplinary process, Employment Act 2007 and other relevant employment laws, and the principles of fairness and justice.

• vi. Right to Accompaniment The staff member being investigated has the right to be accompanied by a person of their choice during the disciplinary hearing who has clear understanding of the circumstances. The chosen companion may provide advice, assistance, and moral support, but they should not disrupt or hinder the proceedings. It is the responsibility of the staff to inform the disciplinary committee or HR department in advance about their intention to bring a companion to the hearing in order to allow for appropriate arrangements to be made and ensure that the companion's presence is accommodated. While the companion may actively participate in the hearing by asking questions or making statements on behalf of the staff member, the ultimate responsibility for presenting the staff member's case remains with the staff member themselves.

• vii. Disciplinary Hearing Process An invitation to attend a disciplinary hearing will be issued to the staff not less than 48 hours to the hearing time. The hearing will follow the following guidelines;
• a) During the disciplinary hearing, the chairman of the disciplinary committee will initiate the proceedings by inviting the investigating manager or HR representative to present the facts of the case. They will provide a comprehensive overview of the incidents and supporting evidence.
• b) Following the presentation by the investigating manager or HR representative, the staff member being investigated will have an opportunity to state their side of the story. They can present their perspective, provide relevant information, and address any concerns raised during the investigation.
• c) Committee members may then ask probing questions to clarify any uncertainties, gather additional information, or seek further insights from both the investigating manager/HR representative and the staff member.
• d) Once all parties have presented their arguments and the committee has completed their questioning, the staff member being investigated and their companion if any, will be allowed to leave the hearing meeting.
• e) The committee members will deliberate on the case and discuss the evidence presented. They will then formulate a recommendation based on their findings, taking into consideration the organization's policies, fairness, and the interests of both the company and the staff involved.

• f) The committee's recommendation will be submitted to the CEO for his final decision. The CEO will review the recommendation, consider all relevant factors, and make a final determination regarding the disciplinary action, if any.
• g) HR Manager will be responsible for communicating the final decision to the staff member, providing a clear explanation of the decision, any disciplinary actions imposed, and the reasoning behind the decision.

• viii. Disciplinary Action The following disciplinary actions may be implemented in response to staff misconduct. While a progressive order is generally followed as a guide, it should be noted that certain misconducts may warrant deviation from this order based on the severity of the offense.
• a) Oral Warning; The employee may receive an oral reprimand from their supervisor. A note to the employee’s record of the oral reprimand should be made and later confirmed by the supervisor in a letter or email to the employee. Plans for correcting the situation should be agreed to in writing by both the supervisor and the employee. Timeliness is extremely important with any oral reprimand, as it is the opportunity for frank discussion of expectations.
• b) Written warning; A written warning is used when an oral reprimand has already been administered without success, or where the offense is more serious. A copy is placed in the employee’s personnel file. The warning should contain plans for improvement, including the met hod of follow up. An employee with other two warning letters within a period of 12 months may be terminated. A warning letter is issued by the HR manager.
• c) Suspension; An employee may be suspended when oral or written reprimands have been administered without success or when the gravity of an offense is so serious as to warrant a more stringent, corrective action or short separation. Suspension primarily allows the company investigate the matter in the absence of the staff while it offers the staff time to reflect on their conduct wile out of work. The length of suspension may be up to one (1) to eight (8) workday and with half pay. Suspension with pay may be given while an event or issue is being investigated such suspension will be treated as compulsory leave. Any suspension should be well documented in the employee’s file.
• d) Warning and Loss of benefits or Privileges: The employee may lose certain privileges or benefits for a specific duration, as deemed appropriate by the organization. This may include non-participation in staff Bonus scheme, non-participation in key leadership committee such us benevolent fund committee.
• e) Warning and Demotion: In cases where the offense warrants a reduction in job responsibilities, the employee may be demoted to a lower position within the organization.
• f) Severe Warning with placement on performance improvement programme ; A severe warning is used when the misconduct is severe with consideration of change in behaviour. Such warning will be accompanied by placement on performance improvement Programme (PIP). During the PIP period the supervisor will coach and observe the st aff on the noted areas with the aim of developing the specified competencies and behaviour. Detailed PIP procedure will be issued together with the severe warning letter by the HR manager.
• g) Termination; An employee employment may be terminated where they have repetitive misconduct and where their performance is unsatisfactory after being placed on performance improvement programme (PIP) or based on severity of the misconduct. Staff on termination will be paid one month salary in lieu of notice.
• h) Summary Dismissal; An employee may be separated without notice and without salary in lieu of notice if s/he is found guilty of improper conduct. Separation may be affected immediately and does not require advance notice. The reasons for Summary Dismissal are as follows;
• i. During working hours, an employee is intoxicated,
• ii. An employee renders his/herself unwilling or incapable to perform work properly.
• iii. Guilty of serious or persistent misconduct.

• iv. Commit a breach of any of the provisions of the employment contract or of any of the regulations of the Company.
• v. Refuse or fail to comply with any lawful order given by the Company and or management.
• vi. Exhibit continuous or persistent neglect of duty.
• vii. Guilty of a criminal offence and sentenced to a term of imprisonment.
• viii. And any other reason as may be provided in the Kenyan employment Act Section 44 (subsection 4). All separation letters issued to staff including termination and Summary Dismissal letter will be signed and approved by the CEO.

• ix. Review and Appeal Employees have the right to request a review of the disciplinary decision. The organization will provide a fair opportunity for the employee to present their case and reconsider the disciplinary action, if warranted. Such appeal requests will be presented to the CEO in writing within 2 weeks after the disciplinary action has been imposed. The CEO at his discretion may change the disciplinary action or request further investigation or repeat of the disciplinary hearing in case of obvious facts that were not considered in the initial disciplinary hearing.

17 SEPARATION OF SERVICE

Except in cases of summary dismissal gross misconduct, or where the employment agreement stipulates the period of the employment, employees shall receive one month’s written notice of the termination of their position, or wages in lieu of notice. All separating staff shall complete a staff clearance form and submit to the Human Resources Manager on the last day of employment. Where a staff fails to submit or exits in circumstances that he/she cannot submit the clearance form, the supervisor will be required to clear staff based on the best-known information. Such circumstances include death in service. In all cases the supervisor shall ensure a clearance form in completed within seven (7) days from the date of exit. Exiting staff are encouraged to participate in an exit interview. All Employees who have worked longer than four (4) weeks shall be entitled to a Certificate of Service.

Types of Separation

17.1 Resignation

An employee may terminate her/his employment by providing written notice to her/his supervisor at least one month prior to the effective resignation date. New hires on probation will provide a written notice at least seven (7) days. In both cases an employee who resigns without sufficient notice will pay the company an amount equivalent to their salary for the said notice period.

17.2 Termination and summary dismissal

Employment may be terminated after the end of a contract or following disciplinary processes. Termination of employment may also result from continued poor performance or general misconduct including such issues as repeated errors, inability to learn the tasks after repeated instruction, tardiness, inefficient use of time, and negative attitude with other employees and other infractions that result in inadequate work or poor customer service. Gross misconduct by an employee will result in immediate dismissal without any notice or wages in lieu of notice. Gross misconduct is defined as any action that an employee willingly and knowingly takes which harms, jeopardizes or otherwise seriously endangers the well-being of the organization or its staff.

The provisions of Section 44 of the Employment Act relating to Summary Dismissal are deemed to be incorporated herein.

Before terminating the employee’s contract of service, the employer shall explain to the employee in a language the employee understands the reason for which the employer is considering termination and the employee shall be entitled to have another employee or a representative of their choice present during this explanation. CHG shall hear and consider any representations which the employee shall make in response to proposed termination or summary dismissal. Where the duration of a term contract comes to an end the company will not be required a notice to the staff.

17.3 Redundancy

This form of termination may apply to employees whose services are surplus to the organizational staffing requirements. The company will notify affected staff of the intention to render their roles redundant providing the reasons within 30 days form the actual date. The company shall further give one months’ notice or pay in lieu thereof of the termination of their jobs on account of redundancy . Where a staff member has been in employment for one or more years the company shall pay severance of 15 days for each completed year in addition to the notice pay.

17.4 Retirement

Retirement may be categorized as normal, voluntary or retirement on medical grounds.

i.Normal Retirement: Members of staff who are on permanent terms and attain the age of sixty (60) will be required and are expected to retire from the service of CHG. ii.Voluntary Retirement: A permanent employee may retire voluntary as long as after at least 50 years. iii.Retirement on Medical grounds: An employee has been on sick leave for a period in excess of 3 months, may either be granted leave without pay or retire on medical grounds.

17.5 Death

In the event of death of an employee, the employment contract ceases at the end of the month in which the death occurs. Any pending benefits and payments will be made to the nominated beneficiary, or, as a second alternative, to the duly appointed administrator of the estate.

18 OCCUPATIONAL SAFETY AND HEALTH (OSH)

CHG will provide a safe working environment for the health, safety and welfare of our employees, contractors, visitors and members of the public who may be affected by our work.

The objective of this policy is;

• a) Prevent personal injury or damage to health of employees and other persons involved in our operations
• b) Maintain healthy and safe working conditions
• c) Observe safety in all of our operations; and
• d) Prevent damage to company property.

This policy will be in accordance with the local legislation regarding workplace safety.

18.1 CHG Responsibility

• a) Develop and maintain safe systems of work, and a safe working environment.
• b) Consult with employees on safety
• c) Provide protective clothing and equipment, and enforce its use where applicable
• d) Provide adequate insurances to cover staff and visitors
• e) Provide first aid facilities
• f) Provide information and training for employees
• g) Assess all risks before work starts on new areas of operation, for example, buying new equipment and setting up new work methods, and regularly review these risks
• h) Remove unacceptable risks to safety
• i) Provide employees and contractors with adequate facilities (such as clean toilets, clean drinking water)

18.2 Staff responsibility

All persons responsible for the work activities of other employees are accountable for:

• a) Identifying practices and conditions that could injure employees, clients, members of the public or our environment
• b) Controlling such situations or removing the risk to safety. If unable to control such practices and conditions, report these to their supervisor
• c) Making sure employees use personal protective equipment, and training them to use the equipment correctly
• d) Ensuring that the personal protective equipment is maintained and working properly

CHG demands a positive, proactive attitude and performance with respect to protecting health, safety and the environment by all employees, irrespective of their position.

18.3 Safe means of access and safe place of employment

CHG shall comply with the provisions of 77 of the Occupational Safety and Health Act 2007. It will ensure;

• i. All floors, steps, stairs, and passages in the workplace are of sound construction and are properly maintained.
• ii. Provision and maintenance of safe means of access to every place at which any person has to work at any time.
• iii. Provision of precautions including warning signs, to prevent injury to employees and other persons at a workplace

18.4 Fire Prevention

• iv. All stocks of highly inflammable substances will be kept either in a fire-resistant store or in a safe place outside any occupied building
• v. CHG and its premises is a no smoking zone,
• vi. The company shall provide, maintain and conspicuously display, free from any obstruction and readily accessible means for extinguishing fire; and
• vii. The company shall present persons trained in the correct use of such means of extinguishing fire during all working hours.

18.5 Work Injury Benefits

CHG will comply with the provisions of laid down labour laws providing compensation for injuries and occupational diseases incurred by employees in the course of their employment.

18.6 Injury Handling Procedure

Consider the following guidelines when handling an injury at the workplace: -

• viii. The first priority is medical attention. For an apparently serious injury also call an ambulance.
• ix. Any employee who is injured on-the-job, must report the incident to their supervisor
• x. The supervisor must write a report to be submitted to the HR department for onward transmission to the Chief Executive Officer of Department of Occupational Safety &Health (DOSH) and should include:

• a. Employee’s name and job details
• b. Time and date of injury
• c. Exact location the injury/incident occurred
• d. How the injury/incident happened
• e. Details of the injury/illness and the part/s of the body injured
• f. Names of any witnesses
• g. Name and signature of the person entering details
• h. Date the employer was notified.

19 DATA PROTECTION POLICY

Chiromo Hospital Group (CHG) will protect both personal and private information of employees under its custody as provided in the Data Protection Act No. 24 Of 2019. Similarly, employee will safeguard and not disclose any business information of confidential nature in their custody. The Data Protection will be subject to the following guidelines;

• i. Processing and controlling of employee data will be guided by Data Protection Act No. 24 Of 2019.
• ii. Employees have right to not give their personal information unless necessitated by required in such data is of contractual nature.
• iii. Company will seek to obtain employee written consent before disclosing any personal data with other parties apart from government or law enforcement authorities if we are required to do so by law.
• iv. Employee will be required to obtain express approval before disclosing any company information outside.

20 EMPLOYEE RECORD RETENTION

Chiromo Hospital Group (CHG) will adequately protect and maintain employee records and documents. Such records will be discarded where the organization determines that the records are of no value not later than seven (7) years from the date of staff exit, unless legally required to retain further. All confidential employee data maintained by Human Resources Department will be destroyed after the retention date has passed. The Employee record retention policy will be subject to the following guidelines as provided in the data archiving policy.

• i. HR records management system will have records and documents maintained in physical or electronic form.
• ii. Staff records audit will be conducted on a minimum once a year.
• iii. A schedule of documents disposal will be approved by CEO before documents are disposed off.
• iv. Employee personal files are the property of the company.
• v. Staff may request access to their files through Human resources manager or the CEO.

21 GOVERNANCE AND MANAGEMENT’S RESPONSIBILITY

The CEO through the HR office is responsible for disseminating this policy to all employees and for instituting and maintaining a program to ensure that employees understand CHG’s standards and policies

CHG requires that its employees abide by the foregoing code of conduct and policies in their dealings with all the stakeholders. Employees are also required to report any violations of these standards immediately to the CEO or as necessary, without fear of retaliation. This policy is applicable to all staff including those whose contract of employment was done under Chiromo Lane Medical Center.

22 ACCEPTANCE OF CHG’S EMPLOYMENT POLICIES

Name (in block letters)

I have received a copy of the HR Policies Employee’s Manual. I have read and understood the Manual and agree to the rules and regulations which it contains. I understand that the Manual is subject to change at any time.

Signature Date