Termination in Kenya: What Employers Must Get Right, and What Employees Can Challenge
Employment relationships in Kenya are governed by the Employment Act, 2007, and termination is one of the areas where good intentions most often collide with strict procedural requirements.
Notice periods
Where a contract doesn't specify otherwise: daily-paid employees can be terminated without notice; weekly or fortnightly-paid employees need a week or two weeks' notice respectively; and monthly-paid employees are entitled to 28 days' notice, or payment in lieu. Probationary employees need at least seven days' notice.
A hearing is not optional
Under Section 41, an employer must notify the employee of the reasons for intended termination and give them a genuine opportunity to respond — with a fellow employee or union representative present if requested — before deciding to terminate for misconduct. Skipping this step, even where the underlying reason is valid, can render a termination procedurally unfair on its own.
Redundancy has its own rules
Redundancy requires notice to the affected employee, the relevant union (where applicable), and the local labour officer, along with fair selection criteria and severance pay for employees who have served at least the qualifying period.
Leave entitlements employers must honour
- 21 working days of paid annual leave per year, accruing from day one
- Sick leave — 7 days full pay then 7 days half pay after two months' service (many employers offer more)
- 3 months' maternity leave with full pay, and the right to return to the same or an equivalent role
What employees can do about unfair termination
A complaint can be lodged with a labour officer within three months of termination. The Employment and Labour Relations Court examines both whether the reason was fair and whether the correct procedure was followed — either failure can succeed.
Where we come in
We draft compliant employment contracts and HR policies, guide employers through lawful disciplinary and redundancy processes, and represent employees pursuing unfair termination claims.
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