Kenyan law has clear rules to guide how and when you can end an employment relationship. Both employees and employers have rights and duties to follow during termination, and having a written contract helps protect everyone.
Overview of the Employment Act, 2007
The Employment Act, 2007 is the main law for employment in Kenya. It sets out the legal process for ending a contract. The law lists fair reasons you can use to terminate employment, such as poor performance, misconduct, or health issues.
Table: Common Grounds for Termination
| Ground | Example |
|---|---|
| Misconduct | Theft, fighting at work |
| Poor Performance | Not meeting targets |
| Physical Incapacity | Long-term illness |
Section 41 of the Act explains that you must give an employee a fair hearing before terminating. You also need to let the employee know the reason for dismissal.
Employee and Employer Rights During Termination
Both you and your employer have rights if employment is ending. If you are being let go, you must get a valid reason for your termination. If you are the employer, you need to show proof for why you’re ending the contract.
Your employer must give you notice before termination or pay you instead of giving notice. If you feel your job ended unfairly, you can bring a complaint to the court.
“Kenyan law asks for fairness and clear reasons when an employment contract is ended.”
You have the right to a proper explanation. Employers should carry out an objective process and keep written records.
Importance of Written Employment Contracts
A written contract shows what you and your employer agreed to, such as your job tasks, pay, and the notice period required for termination. If there’s a dispute, your contract can be used to help solve it.
Having a contract can prevent confusion. It lays out the steps to follow if either side wants to end the job. Your written contract should match the law and should be in a language you can understand.
Contract checklist:
- Job title and description
- Salary and benefits
- Notice period for termination
- Termination procedures
Always ask for a copy of your contract when you start a new job.
Primary Grounds for Termination of Employment
In Kenya, employment can end for specific reasons under the law. Each ground affects your rights and how your employer must handle the process.
Redundancy and Retrenchment
Redundancy happens when your job is no longer needed. This could be because of changes in how the company works, new technology, or a drop in business. Retrenchment is closely related, often used when the company needs to cut costs by reducing staff.
Key facts about redundancy and retrenchment:
- Your employer must prove that your role is genuinely no longer needed.
- You are entitled to notice, severance pay, and sometimes other benefits.
- The employer must follow fair procedures. This usually includes giving written notice and discussing the change with you or your union.
“You cannot be removed on the grounds of redundancy without clear evidence and proper process.”
Employers must not use redundancy as a way to unfairly remove workers or avoid legal responsibilities.
Misconduct and Gross Misconduct
Misconduct includes any behavior that goes against company rules. This can range from being late often to not following instructions. Gross misconduct is more serious and may involve theft, assault, or serious dishonesty.
Examples of misconduct may include:
| Misconduct | Gross Misconduct |
|---|---|
| Repeated lateness for time sensitive duties | Stealing company funds |
| Minor breaches of policy | Physical violence |
| Disobeying instructions | Working while drunk |
Your employer must have strong evidence before ending your job for misconduct. They must also give you a chance to explain your side.
Gross misconduct can lead to summary dismissal. This means you can lose your job without notice.
Poor Performance
Poor performance means not meeting the standards expected for your job. You might be missing targets, making too many mistakes, or not learning new skills as required.
Before being dismissed for poor performance, your employer should:
- Clearly explain the problems
- Give you a chance to improve
- Offer support or training
- Review your progress after a set time
If you show improvement, you should keep your job. Only after clear and repeated failure can your employer dismiss you for performance reasons.
“Your employer must not fire you for poor performance without fair warnings and support.”
Incapacity Due to Illness or Injury
If you cannot do your job because of illness or injury, this may be grounds for termination. Employers must make an effort to see if you can recover or do a different job.
Key steps an employer must take:
- Give you a reasonable time to recover
- Get medical reports if needed
- Look for alternative duties before considering dismissal
Long-term or permanent inability to work may lead to termination, but only if no reasonable adjustments can be made.
Losing your job to illness or injury is a last resort after all options are considered.
Other Lawful Reasons for Dismissal
Employees in Kenya can lose their jobs for several lawful reasons besides poor performance or misconduct. These reasons are guided by the law and may include unique situations that bring employment to an end.
Summary Dismissal
If you are involved in serious misconduct at work, your employer can dismiss you without notice. This is called summary dismissal. Serious misconduct can be theft, fraud, violence, willful disobedience, or attending work while drunk. Any action that makes it impossible to continue working together may qualify.
Key grounds for summary dismissal:
| Reason | Example |
|---|---|
| Theft | Stealing company property |
| Gross insubordination | Ignoring direct orders repeatedly |
| Violence | Fighting or assaulting coworkers |
| Alcohol/drug abuse | Drunk at work or affecting performance |
Summary dismissal must follow due process. You have a right to a hearing where you can explain your side before the employer decides.
Mutual Agreement to Terminate
Sometimes, you and your employer may both agree to end the job. A mutual agreement to terminate means both sides agree it is best to part ways. This can happen for many reasons, like personal needs, company changes, or by settling a dispute.
Both you and your employer must agree in writing. No party should be forced. Usually, terms are agreed on such as final pay, benefits, or a reference letter.
Example list of common reasons for mutual agreement:
- Position becomes redundant
- Employee wants to pursue another career
- Settlement after a workplace dispute
A mutual agreement gives you more control over the process and often ensures you leave on better terms.
Expiry of Fixed-Term Contracts
If you are hired on a contract that has a clear end date, your employment will automatically end when the contract expires. This is called the expiry of a fixed-term contract. No notice is needed unless the contract says so.
Pull quote:
“Your job ends automatically when the contract you signed reaches its last day.”
Employers are not required to renew your contract, and ending it at expiry is not considered unfair. However, if you work past the end date without a new contract, it may turn into a permanent job.
Quick facts:
- No legal right to renewal unless stated in your contract
- All final pay and benefits must be paid when your term ends
Make sure you check your contract for any extra conditions that may apply when it ends.
