Introduction to Employment Law in Kenya

Kenya's employment law landscape is primarily governed by the Employment Act, 2007, which consolidates and reforms the law relating to employment. Other relevant legislation includes the Labour Relations Act, the Labour Institutions Act, the Work Injury Benefits Act, and various regulations and rules.

At Chesoli & Company Advocates, we advise both employers and employees on their rights and obligations under Kenyan employment law, helping them navigate this complex area.

Key Rights of Employees

1. Written Employment Contract


Every employee is entitled to a written employment contract specifying terms including:



  • Job title and description

  • Basic salary and benefits

  • Working hours and leave entitlement

  • Termination notice period

  • Disciplinary procedures

2. Minimum Wage


The government sets minimum wages for various sectors through annual Wage Orders. Employers must pay at least the statutory minimum wage applicable to their sector and location.

3. Working Hours and Rest


The maximum working hours are generally 52 hours per week (excluding overtime). Employees are entitled to:



  • One rest day per week (usually Sunday)

  • 21 days of annual leave

  • Paid public holidays

  • Sick leave (7 days with full pay, 7 days with half pay per year)

  • Maternity leave (3 months with full pay)

  • Paternity leave (2 weeks with full pay)

4. Protection from Unfair Dismissal


Dismissal must be substantively and procedurally fair. Procedural fairness requires a hearing before dismissal. Substantive fairness requires valid grounds for dismissal.

5. Freedom from Discrimination and Harassment


The Employment Act prohibits discrimination based on race, sex, pregnancy, marital status, health status, ethnic or social origin, age, disability, religion, conscience, belief, culture, dress, language, or birth.

Obligations of Employers


  • Register employees with relevant statutory bodies (NSSF, NHIF, KRA)

  • Deduct and remit PAYE, NSSF, and NHIF contributions

  • Provide a safe working environment (Occupational Safety and Health Act)

  • Comply with the Work Injury Benefits Act (WIBA) requirements

  • Maintain proper employment records for at least 5 years

  • Display employment laws and wage orders at the workplace

  • Implement a sexual harassment policy

Termination of Employment

Types of Termination

1. Termination by Notice - An employer may terminate employment by giving notice as per the contract or the Employment Act (minimum notice periods: 28 days for monthly-paid employees, 14 days for weekly-paid employees).

2. Summary Dismissal - An employer may dismiss without notice for gross misconduct, including:



  • Gross negligence in duties

  • Criminal offenses against the employer or property

  • Wilful disobedience of lawful orders

  • Absence without leave for more than 14 days

3. Redundancy - Redundancy requires fair selection criteria, notice (minimum one month), severance pay (15 days pay for each completed year of service), and consultation.

4. Resignation - An employee may resign by giving notice as per the contract.

Remedies for Unfair Dismissal

The Industrial Court may award:



  • Reinstatement (rare)

  • Compensation up to 12 months' salary

  • Payment of any outstanding dues (notice, leave, service pay)

Employment Disputes

Employment disputes are handled by the Industrial Court (now the Employment and Labour Relations Court). The court has exclusive jurisdiction over employment and labour relations matters.

Before going to court, parties may be required to attempt mediation or conciliation through the Ministry of Labour.

Common Employment Law Issues We Handle


  • Drafting employment contracts and HR policies

  • Unfair dismissal claims

  • Discrimination and harassment complaints

  • Wage and benefit disputes

  • Redundancy and restructuring

  • Employment litigation

  • Compliance audits

  • Union matters and collective bargaining agreements

Best Practices for Employers


  • Maintain updated employment contracts for all employees

  • Develop and implement clear HR policies

  • Document all disciplinary proceedings properly

  • Conduct regular training on employment law compliance

  • Conduct exit interviews for departing employees

  • Seek legal advice before terminating employment

How Chesoli & Company Advocates Can Help

Our employment law department advises both employers and employees on a range of matters. Whether you need assistance drafting employment policies, defending an unfair dismissal claim, or negotiating an exit package, we are here to help.

Conclusion

Understanding and complying with Kenya's employment laws is essential for both employers and employees. Employers who fail to comply risk costly claims and regulatory sanctions. Employees who understand their rights can better protect their interests.

Contact our employment law department for personalized legal advice on your specific situation.