ASHTON APPAREL (EPZ) LIMITED

P.O. BOX 43371-80102, MOMBASA, KENYA

TEL: +254 41 02004768/9

Employee Separation Policy

1. Definition of Termination:
ASHTON APPAREL (EPZ) LIMITED defines Termination of employment as an employee's
departure from a job. Termination shall be voluntary on the employee's part, or it shall be at the
hands of the employer, often in the form of dismissal (firing) or a Redundancy. Dismissal or
firing shall generally thought to be the fault of the employee or due to issues with his/her
performance; whereas a Redundancy shall generally occur due to business related issues (for
instance downsizing or an economic downturn) outside the employee's/ the organizations
control.

Termination of employment shall be initiated by either of the parties to a contract of employment

(Employment Act, 2007 section 35 (1)).

All ASHTON APPAREL (EPZ) LIMITED Employee terminations shall be handled in a

professional and procedural manner with minimal disruption to ongoing operations.

ASHTON APPAREL (EPZ) LIMITED shall categorize all terminations on either one of the
below mentioned accounts of separation.

i. Termination of employment by agreement: When ASHTON APPAREL (EPZ)

LIMITED and employee agree to bring the contract of employment to an end in
accordance with an agreement. This may be in case of terminating a fixed term contract;
where the period of contract expires.

ASHTON APPAREL (EPZ) LIMITED reserves the right to extend or not extend any
contract of employment as per its requirements.

For employees on fixed term contracts, ASHTON APPAREL (EPZ) LIMITED shall be
obliged to notify the affected employee that his/her contract of employment will not be
extended/renewed upon its expiry Seven (7) days before the Date of Expiry. Such
notification shall be done in writing, signed by both parties and filed in the personnel file.

ASHTON APPAREL (EPZ) LIMITED shall be obliged to notify the County Labor
Office of this termination and appropriate proceedings followed bringing to effect the
termination of contract of employment.

ii. Termination of employment by the Employee/ Resignation: when an employee due to

any reason decides to resign from his/her employment. Notice for resignation should be
provided beforehand as stated in his/ her contract of employment. Upon receipt of the
resignation letter, the employee will be issued with an acknowledgement letter.

Policy prepared by: Abizer Lokhandawala Name of the Document: Employee Separation Policy
Reviewed by: Sagar Datta Reviewed and Approved by: Mr. Mannan Kapasi
Approved date: 1st July 2022 Revision due date: When There is change in policy/law
Page 1 of 5 Version: HR/Policy/009
 ASHTON APPAREL (EPZ) LIMITED
P.O. BOX 43371-80102, MOMBASA, KENYA
TEL: +254 41 02004768/9

iii. Termination of employment in case of death of an Employee: In case of a death of an

employee, the employment contract automatically comes into an end. All the final dues
to the concerned employee will be paid to their next of kin nominated by him/ her as
stated in his/ her personnel files. The death of the particular employee shall be notified to
the Labor Office within seven (7) days. Upon Settlement of the final dues the same shall
be notified to the labor office.

iv. Termination of employment by an employer: ASHTON APPAREL (EPZ) LIMITED

may also terminate the employment of an employee but may do so only in compliance
with the provisions of the law and follow all the required procedures for termination as
stated under the Employment Act 2007, sections 40, 41, 43, 45 and 46.

2. Grounds for contract of employment being terminated by the Company.

At ASHTON APPAREL (EPZ) LIMITED a contract of employment shall be terminated by the
employer on the following grounds:

i. By mutual agreement between the Company and the Employee.

ii. By the Company at the death of an employee before the expiration of the period of
employment.
iii. By the Company in case an employee is found to be incapable of performance of duty as
per his/her contract of employment. Either due to sickness or accident and is unable to
carry out his or her duties.
iv. By the Company on the basis of misconduct of employee (Employment Act, section 44
(3)

3. Grounds for contract of employment being terminated on gross misconduct.

i. Without leave or other lawful cause, an employee absents himself from the place
appointed for the performance of his work (Employment Act 44 4(a)).
ii. During working hours, by becoming or being intoxicated, an employee renders himself
unwilling or incapable to perform his duties (Employment Act 44 4(b)).
iii. An employee wilfully neglects to perform any work which it was his duty to perform, or
if carelessly and improperly performs any work which from its nature it was his duty
under his contract, to have performed carefully and properly (Employment Act 44 4(c)).
iv. An employee uses abusive or insulting language, or behaves in a manner insulting, to his
employer or to a person placed in authority over him by his employer (Employment Act
44 4(d).
v. An employee knowingly fails, or refuses to obey a lawful and proper command which it
was within the scope of his duty to obey, issued by his employer or a person placed in
authority over him by his employer (Employment Act. 44 4(e)).
vi. In lawful exercise of any power to arrest given by or under any written law, an employee
is arrested for a cognizable offence punishable by imprisonment and is not within
fourteen days(14) either released on bail or on bond or otherwise lawfully set at liberty.
Policy prepared by: Abizer Lokhandawala Name of the Document: Employee Separation Policy
Reviewed by: Sagar Datta Reviewed and Approved by: Mr. Mannan Kapasi
Approved date: 1st July 2022 Revision due date: When There is change in policy/law
Page 2 of 5 Version: HR/Policy/009
 ASHTON APPAREL (EPZ) LIMITED
P.O. BOX 43371-80102, MOMBASA, KENYA
TEL: +254 41 02004768/9

(Employment Act 44 4(f))

vii. An employee commits, or on reasonable and sufficient grounds is suspected of having
committed a criminal offence against or to the substantial detriment of his employer or
employer’s property (Employment Act 44 4(g)).
viii. Habitual late attendance or late attendance on more than three (3) occasions in a given
month.
ix. Misbehavior/Misconduct towards colleagues, customers and visitors
x. Tempering with any company records, evidence, threatening potential witnesses,
falsifying or refusing to give testimony when incidents occur in undertaking or other
matters that are being investigated or being considered for investigation.
xi. False statements made or incorrect particulars given in his/her job application form or
when called upon management to make true statements of any fact in connection with
any matter related to work or business of the company.
xii. Sleeping while on duty.
xiii. Smoking and/or spitting within the premises of the company other than designated areas.
xiv. Refusing to sign a statement or a declaration given by himself or to receive or sign
notices, warnings, memos etc. issued or given by any superior or manager.
xv. Failure to report any accidents/injuries while on duty and/or failure to give evidence in
respect of such accidents/injuries.
xvi. Entering or remaining in the company premises without permission and/or authority
outside working hours.
xvii. Un-authorized use of company vehicles and telecommunication systems
(Telephone/Fax/ Computers etc.).
xviii. Wilfully allowing any unauthorized person(s) to enter the company premises at any
time.
xix. Any act within or outside the company premises which may be considered as
misconduct in common parlance.
xx. Indulging in activities which are criminal and disrespectful in nature, outside working
hours, which can cause harm to the reputation of company and one own self.
xxi. Loitering or leaving place of work without sufficient and reasonable cause and
permission during working hours.

4. Procedure
Notwithstanding the seriousness of the misconduct of the employee and the evidence available,
ASHTON APPAREL (EPZ) LIMITED will abide by the procedures outlined under the
Employment Act 2007 sections 41, 43 and 45.

ASHTON APPAREL (EPZ) LTD shall always make sure that the laid down termination of
contract procedure is strictly followed to avoid possible disputes.

Policy prepared by: Abizer Lokhandawala Name of the Document: Employee Separation Policy
Reviewed by: Sagar Datta Reviewed and Approved by: Mr. Mannan Kapasi
Approved date: 1st July 2022 Revision due date: When There is change in policy/law
Page 3 of 5 Version: HR/Policy/009
 ASHTON APPAREL (EPZ) LIMITED
P.O. BOX 43371-80102, MOMBASA, KENYA
TEL: +254 41 02004768/9

i. The Company shall write to the employee a SHOW CAUSE LETTER asking him/her
to respond fully to all allegations/complaints and have his/her responses fully considered
before a decision is reached.
ii. During the time provided to the employee to respond, employee may be SUSPENDED
for a period not more than Two (2) days, pending investigation.
iii. After submission of the SHOW CAUSE RESPONSE LETTER, the employee shall be
invited in writing for a disciplinary meeting and shall be informed of his/her right to
representation at the hearing. A work colleague or a Worker’s representative may be
permitted as a witness.
iv. The employee shall be given an opportunity in a DISCIPLINARY MEETING to
explain on a bias free hearing with no pre-determining outcomes.
v. The disciplinary committee members shall ask questions related to the case and
RECORD THE MINUTES. All the correspondences shall be dully signed by both
parties.
vi. If the employee is found guilty of the alleged offence, he/she shall be subjected to
APPROPRIATE DISCIPLINARY ACTION.
vii. The employee shall be given the right to APPEAL A DECISION TO TERMINATE
his employment.

5. Notice of termination
All termination notices shall be in writing.
ASHTON APPAREL (EPZ) LTD shall be responsible to ensure that the notice is explained
orally to the employee in a language he/she understands (section 35 (2) (3).

Notice of termination of the probationary contract:

During the probationary period either party may terminate his/her contract by giving a seven (7)
days’ notice or seven (7) days in pay in lieu of notice.

Notice of termination after the probationary period:

At any time after the probationary period either party shall be entitled to terminate his/ her
contract by giving the other party one month’s notice in writing or pay one month’s salary in lieu
of notice. Where termination is for a cause at the initiation of ASHTON APPAREL (EPZ) LTD,
the Employment Act 2007 sections 41, 43 and 45 will be followed. Otherwise, such termination will be
on account of redundancy as stipulated in the Section 40 of the Employment Act, 2007.

6. Implementation of policy
i. ASHTON APPAREL (EPZ) LTD requires that all terminations of employee contract of
employment to be notified to the Central Office – Human Resource Department
before accomplishment.
ii. All communications on termination cases must be notified to County Labor Office.

Policy prepared by: Abizer Lokhandawala Name of the Document: Employee Separation Policy
Reviewed by: Sagar Datta Reviewed and Approved by: Mr. Mannan Kapasi
Approved date: 1st July 2022 Revision due date: When There is change in policy/law
Page 4 of 5 Version: HR/Policy/009
 ASHTON APPAREL (EPZ) LIMITED
P.O. BOX 43371-80102, MOMBASA, KENYA
TEL: +254 41 02004768/9

iii. Personnel files and final settlement forms for the terminated employees shall be
forwarded to Central Office – Human Resource Department for verification and
approval.
iv. All terminated employees shall be issued with Certificate of Service in accordance with
Employment Act, 2007, Section 51.

7. Employee Exit Interview

ASHTON APPAREL (EPZ) LTD requires all employees to return all Company properties in
their possession.
ASHTON APPAREL (EPZ) LTD shall issue to the employee the following forms for
completion at the time of exit and such employee shall be considered to have fully completed
clearance process with Company upon return of these duly completed forms.
i. Clearance form
ii. Employee exit interview form

Policy prepared by: Abizer Lokhandawala Name of the Document: Employee Separation Policy
Reviewed by: Sagar Datta Reviewed and Approved by: Mr. Mannan Kapasi
Approved date: 1st July 2022 Revision due date: When There is change in policy/law
Page 5 of 5 Version: HR/Policy/009