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Kenyan Labour Law

Employment Act, 2007 (Kenya)

Kenya's primary employment statute governs minimum terms: notice periods, termination procedures, leave entitlements, and the fairness test for dismissal. Unfair termination entitles an employee to up to 12 months' wages as compensation.

Legal Definition

The Employment Act, 2007 (No. 11 of 2007) is the principal statute governing contracts of service in Kenya. Key provisions include: **Termination**: An employer must have a valid reason (conduct, capacity, or operational requirements) and follow fair procedure. Procedure requires notice of the reason for dismissal, an opportunity to be heard, and the right to be represented by a fellow employee or union official. Without a fair reason or fair procedure, the dismissal is unfair. **Notice**: Minimum notice is graduated by length of service (e.g. 28 days after 1 year). Payment in lieu of notice is permissible. **Leave**: Annual leave (21 working days after 12 months), sick leave (7 days full pay + 7 days half pay per year), maternity leave (3 months with full pay), paternity leave (2 weeks). **Remedies**: The Employment and Labour Relations Court can order reinstatement or compensation of up to 12 months' wages for unfair termination. **Summary dismissal**: Lawful only for gross misconduct (e.g. theft, assault, dishonesty) proved after hearing the employee.

📖 Constitutional / Statutory Basis: Employment Act, 2007 (No. 11 of 2007); Constitution of Kenya, 2010, Article 41 (right to fair labour practices)

Practical Example

A supervisor fires a warehouse worker on the spot for arriving late, without any hearing. Under the Employment Act, this is both substantively and procedurally unfair. The ELRC can award the worker up to 12 months' compensation.

Frequently Asked Questions

What counts as unfair termination under the Kenyan Employment Act?
A termination is unfair if the employer cannot prove: (1) a valid reason related to conduct, capacity, or operational requirements; and (2) fair procedure — giving the employee notice of the reason and a chance to respond, with the right to union or colleague representation.
How much compensation can I get for unfair dismissal in Kenya?
The Employment and Labour Relations Court can award up to 12 months' wages. Additional amounts may be awarded for unpaid terminal benefits (notice pay, leave pay, severance if retrenched).
Am I entitled to severance pay if I am retrenched in Kenya?
Yes. If you are made redundant, you are entitled to at least one month's notice (or pay in lieu), a certificate of service, and severance pay of at least 15 days' wages for every completed year of continuous service.

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