In Kenya, the Employment Act, 2007 outlines the legal requirements for notice periods during employment termination. These requirements are designed to ensure fairness in the termination process for both employers and employees.

Notice Period Based on Pay Frequency

The minimum notice period depends on how frequently the employee receives their wages or salary:

• For employees receiving a monthly salary, a written notice period of 28 days must be provided.
• For those receiving a weekly or bi-weekly salary, the notice period is one or two weeks, respectively.
• For employees earning daily wages, no written notice is required, but termination must occur at the close of business.

It's important to note that the notice period must be in writing. If the employee doesn't understand the written notice, the employer has a responsibility to explain it orally in a language the employee comprehends.

Termination in Lieu of Notice

Employers have the option to terminate employment immediately by paying the employee a sum equal to their salary during the notice period. This is known as termination in lieu of notice.

Probationary Period

For employees on probation, either party can terminate the contract with seven days' written notice or payment in lieu of notice.

Additional Considerations

• Employment Contract: If the employment contract specifies a longer notice period than what's outlined in the Act, the longer period takes precedence, provided it applies equally to both employer and employee.
• Collective Bargaining Agreements: In some cases, collective bargaining agreements between employers and trade unions may establish different notice period requirements.

Severance pay in Kenya is a form of compensation granted to employees upon the termination of their employment under specific circumstances. The Employment Act, 2007 outlines the primary rules governing severance pay.

Severance Pay Due Circumstances

In Kenya, severance pay is due to employees whose employment is terminated due to redundancy. Redundancy occurs when a position is eliminated for economic, structural, or technological reasons, not due to the employee's performance or conduct.

Situations Where Severance Pay is Not Due

Severance pay is generally not required in the following situations:

• Employee resignation, unless due to constructive dismissal
• Dismissal due to misconduct
• Retirement
• Completion of a fixed-term contract

Severance Pay Calculation

Severance pay in Kenya is calculated based on the employee's length of service:

• The employee is entitled to at least 15 days of their basic salary for every completed year of service.

Example of Severance Pay Calculation

An employee working for 5 years with a basic monthly salary of KSh. 50,000 would be entitled to the following severance pay:

• 15 days of salary / 30 days in a month = 0.5
• 0.5 * 50,000 = KSh. 25,000 per year of service
• 25,000 * 5 years = KSh. 125,000 total severance pay

Terminating an employee in Kenya requires adherence to specific legal guidelines dictated by the Employment Act, 2007 to ensure fairness and legal compliance.

Types of Termination

There are several types of termination:

• Termination by Notice or Pay in Lieu: An employer may terminate a contract by giving the required notice or by paying the employee an equivalent sum in lieu of notice.
• Termination due to Redundancy: If a position is eliminated for valid economic, structural, or technological reasons, an employer may terminate employment due to redundancy.
• Summary Dismissal: An employer may summarily dismiss an employee without notice for gross misconduct. However, the employer must clearly show that they followed a fair procedure.

Procedure for Termination

The procedure for termination includes:

• Reasons for Termination: The employer must have valid and justifiable reasons for termination, such as poor performance, misconduct, incapacity, or redundancy.
• Notice of Consideration: The employer must give the employee written notice explaining the reasons they're considering termination and must invite the employee to a hearing.
• Hearing: The employee has a right to a fair hearing, where they can present their side of the story. They may be accompanied by a fellow employee or trade union representative.
• Decision and Termination Notice: Following the hearing, the employer carefully considers all information and makes a decision. If termination proceeds, a written notice of termination is issued, outlining the reasons.

Summary Dismissal

Summary dismissal is allowed for cases of gross misconduct, such as:

• Willful neglect of duty
• Fraud or dishonesty
• Drunkenness or disorderly behavior at work
• Habitual breach of contract

Even with gross misconduct, the employer should:

• Investigate the alleged misconduct promptly
• Allow the employee a chance to explain themselves

Additional Notes

• Record Keeping: Employers must keep detailed records of the termination process, including documentation related to the reasons, hearings, and any evidence considered.
• Unfair Termination: Employees can challenge unfair termination through the Employment and Labour Relations Court.