Kenya Labour Laws On Terminating Employment

Termination of employment is a common issue for most professionals and employers in Kenya.

What Does The Law Say About Terminating Employment?

According to the Kenya Labour Laws, Termination of employment can be initiated by either of the parties to a contract of employment. Lawful Termination will usually include either of the following;

  1. Termination of employment by agreement:

When the employer and employee agree to bring a contract of employment to an end in accordance with an agreement. This may be in case of terminating a contract of apprenticeship; where the period of training expires, then the contract will obviously come to an end.

  1. Automatic termination:

 A contract of employment may be terminated automatically in circumstances such as death or loss of business of the employer.

  1. Termination of employment by the employee/resignation:

This happens when an employee due to material breach of the contract by the employer decides to resign from his/her employment.

  1. Termination of employment by an employer:

An employer may also terminate the employment of an employee but there is a need to comply with the provisions of the law and contract relating to termination.

What is Lawful Termination of Employment?

An employer has to have a valid reason for terminating employment of an employee for it to be considered fair according to the law.

Apart from this valid reason of termination the employer must follow fair procedures for termination as are provided under the Employment Act, section 45 (2) and section 46.).

 In any form of termination the employer is required to prove the reasons for the termination, otherwise it will be termed as unfair (section 45 (2)).

The procedures for termination are different depending on the reason for termination but, they all have a common item – the right of an employee to be heard before a termination decision is taken against him/her.

What does the law say about the notice period?

While most employees think the employer cannot fire them without due notice, the Kenyan law actually has a provision for this. The law allows him to fire an employee without notice, but he is required to pay a sum equal to the salary which would have accrued to the worker during the period of the notice (section 36).

This law is also applicable to an employee and protects the employer from a breech of contract. In such a case where the professional resigns without giving proper notice, h/she is required to compensate their employer.

How should the notice of termination be served?

A termination notice shall be in writing. In case the employee does not understand the notice, the employer is responsible to ensure that the notice is explained orally to the worker in a language he/she understands (section 35 (2) (3)

The acceptable notice periods according to the Kenyan employment act  is as follows;

  1. If the employee is employed on a daily wage contract, the notice is given at the close of any day without notice.
  2. If the employee is employed on a weekly pay or two-week basis the notice period shall be one week or two weeks respectively, given in writing or payment of one week’s salary in lieu of notice.
  3. If the employee is employed on a monthly basis the notice period shall be 28 days and in writing or payment of one month’s salary in lieu of notice.
  4. In the case where a contract of employment provides that the notice of termination be given for a greater period than one month, then there will be an agreement in writing between employer and employee for a longer notice and the agreed notice period shall be of equal duration for both employer and the employee (section 35 (2)).

Payment upon termination without notice

In a case where the employer terminates a contract without notice, h/she will be required to pay the employee the amount that an employee would have received if she/he had worked during the notice period. This is what is usually referred to as payment in lieu of notice (section 36) also (section 38).

For consultancy services, email pwainaina@corporatestaffing.co.ke
NB: Please note that this is a paid service.

14 Comments

  2. I’m a driver at Zenko( k) ltd and a certain customer complained that on May 2016 when we delivered goods to his shop we did not deliver exactly as invoiced but as always when doing deliveries we always counter check with the customer himself and He has to sign and stamp the invoice of which He did after confirming that everything was as invoiced but 4 months later he refused to pay claiming that He didn’t receive His goods as invoiced. We were called to the office the 3 of us, my two colleagues and I to give our side of the story but my boss being the arrogant one did not even listen to us but decided to call me a THIEF and I cut him short Telling him that it was not right to call someone a thief and yet no follow up has been done to substantiate the allegation and being the rude type he just sent me home without any notice leaving my colleagues and yet it’s my two colleagues who deals with the lagguage so my question is is it right to be called a thief by your employer? what I’m I suppose to do because I just feel my employer has breached my right by the calling me a thief and sending me home without notice

  3. I Want To Resign I Have Worked For Three Yrs Without Annual Leave,overtime,holiday Que’can I Include These From My Notice Letter And Ask For Payment? How Shld They Pay For The Service? Plz Help

  4. okey i was terminated without valid reason, or given time to speak for my self so that i can understand my mistake, am i supposed tobe paid by an employer for breach of contracts?

  5. Do you have a branch in Mombasa?
    How can employee compensate the employer in case he/she breech the contract?

    Thanks

  8. Waoh. This is great. Most employees dont know their rights. Is thre any way u can organiz workshops to educate workers

  9. Redundancy is also a form of termination though the procedure is slightly different.

    Incase the employee is unionisable, employer must write a notification of redundancy letter to the union office and labour office stating the reason and extent of redundancy. This should be not less than 1 month or as stated in cba. Employee must serve this period. There after, follow the normal termination procedure but employer must over and above the terminal dues, pay severence for not less than 15 days pay for every year worked, or as stated in cba.

    For management employee, give written notification as above to employee and labour office. The rest is as above.

  10. Hillary,

    The employer is compelled by law to pay your final dues without delay unless they can prove inability to do so.

    Regards,

    Perminus

  11. in case where employer promises to pay you after termination but he/she doesnt what might be the problem

  14. Thanks Corporate Staffing

    How about unfair termination, and/or making an employee redundant does the same process apply?

    Please advise-
    Tony

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