Being made redundant in Kenya? Your employer must notify you in writing, pay redundancy pay, and follow a fair process. Here is what the Employment Act 2007 requires.
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Direct Answer
Under Section 40 of the Employment Act 2007, an employer who wishes to terminate employment for redundancy must give at least one month's written notice, pay redundancy pay, and follow a fair selection process. You are entitled to at least 15 days' pay per year of service. If the process was unfair, you can file a complaint with the Labour Office or the Employment and Labour Relations Court — free.
What the Law Says
Your Legal Foundation
Employment Act 2007
Section 40
“Where an employer terminates the employment of an employee on account of redundancy, the employer shall give the employee notice or pay in lieu of notice and pay the employee redundancy pay at the rate of not less than fifteen days' pay for each completed year of service.”
Employment Act 2007
Section 41
“Before making an employee redundant, an employer must issue a notice of redundancy to the employee, the labour officer, and any recognised trade union at least one month before the date of redundancy.”
Constitution of Kenya 2010
Article 41
“Every worker has the right to fair labour practices.”
What to Do
Step-by-Step Guide
1Demand written notice. Your employer must issue a written notice of redundancy at least one month in advance — or pay you one month's salary in lieu of that notice. Verbal announcements are not sufficient.
2Check the selection criteria. Your employer must use fair, objective criteria to select who is made redundant. If you believe you were selected based on union membership, pregnancy, age, or discrimination, this is unlawful.
3Calculate your redundancy pay. You are entitled to at least 15 days' pay for each completed year of service, plus any unused leave, plus notice pay if not given notice. Get this in writing before you sign anything.
4Do not sign a release without reading it. Some employers ask employees to sign away their rights as a condition of receiving redundancy pay. You are entitled to redundancy pay by law — you do not need to waive any rights to receive it.
5If the process was unfair, file a complaint with your nearest Labour Office or the Employment and Labour Relations Court within three years of the redundancy.
What to Say
Exact Words to Use
“"I am entitled to a written notice of redundancy under Section 41 of the Employment Act 2007, a fair selection process, at least one month's notice or pay in lieu, and redundancy pay of not less than 15 days' pay per completed year of service. Please provide the statutory notice and a written breakdown of my terminal benefits."”
Tone: Written — to your employer or HR
Common Questions
Frequently Asked Questions
Can my employer retrench me while I am on sick leave or maternity leave in Kenya?
Selecting an employee for redundancy because they are on sick leave or maternity leave is unlawful discrimination. The redundancy must be for genuine operational reasons and the selection must be based on objective criteria. If the timing coincides with your leave, seek advice from a Labour Officer.
What is the difference between retrenchment and unfair dismissal in Kenya?
Retrenchment (redundancy) is a lawful termination based on the employer's operational needs — too many workers, restructuring, or financial difficulty. Unfair dismissal is termination without valid reason or without a fair hearing. Both can be challenged if the procedure is not followed correctly.
Does my employer have to explore alternatives before retrenching me?
While the Employment Act does not explicitly require consideration of alternatives, the obligation to consult (Section 40) implies the employer must discuss alternatives. If retrenchment was announced without any consultation, this strengthens a procedural unfairness argument.
Get Help Now
Resources & Helplines
Labour Office Kenya
labour.go.ke
File redundancy complaints and disputes here. Free. Offices nationwide.
Employment & Labour Relations Court
elrc.go.ke
Formal disputes over redundancy pay or unfair selection.
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