Labour laws in Kenya: Working hours, contracts, and employee rights

The International Labour Organization oversees employment issues in its member states and deals with problems such as social protection, equal employment opportunities, and international labour standards. In individual countries, rules and regulations are put in place to govern the working relationship and protect the rights of employers and workers by clearly stipulating the obligations and responsibilities of each party to the employment. This is what labour laws in Kenya do, and Kenyan government agencies enforce them to ensure harmony in the workplace.

Did you know that the country's labour laws govern the employer-employee relationship? It does not matter whether one works in an office or is a domestic worker. The labour laws are set to protect both the employer and employee and include things such as the minimum wage and working conditions. Trade unions have been established to protect workers' rights and ensure that disputes between the employer and employee are resolved according to the law.

5 labour laws in Kenya in 2023

Labour laws are divided into collective labour laws, which involve the relationship between the union, the employer, and the employee, and individual labour laws, which deal with the relationship between the employer and employee without the involvement of trade unions. The labour laws in Kenya of 2007 are broken down into five Acts as enacted by the Parliament. These are:

• The Employment Act
• Labour Institutions Act
• Labour Relations Act
• Occupational Safety and Health Act (OSHA)
• Work Injury Benefits Act (WIBA)

The employment relations in Kenya are regulated by:

• Constitutional rights.
• Statutory rights stipulated in statutes and regulations.
• Rights dictated by collective agreements as well as extension orders of collective agreements.
• Individual labour contracts

These legal sources are interpreted by the industrial court and, sometimes, by the normal courts.

Legal duties of every employee and employer

There are several employee rights in Kenya that should be observed. Every employee and employer must adhere to the following laws.

1. Kenya labour laws on termination of employment

Employment termination is when the employee-employer relationship comes to an end. According to the law, the employer can lawfully terminate the employment based on the following grounds:

• Employee's misconduct
• Worker's poor performance
• The physical incapacity of the worker confirmed after a medical examination
• Employer's operational requirements, such as retrenchment
• Employee's participation in an illegal strike

The termination notice should be done in writing or orally in case the employee cannot read. Note that the employer can terminate the employment contract at any moment, but the employee must be given a notice which ranges from one day for those who are paid daily to one month for monthly payment agreements.

The same applies when the employee wants to terminate employment for various reasons. If either party does not give a termination notice, they must make payment of salary in lieu of notice. Unfair termination occurs when reasons for termination are not provided.

2. Kenya labour laws on resignation

Resignation is a notice that you are quitting your job. Labour laws in Kenya on resignation are Under the Employment Act, sections 14(5) and 16. The conditions for terminating the contract by the employee apply here. These are:

• Employees who receive monthly payments must inform the employer one month before they stop working.
• If an employee does not give the employer the notice, they should pay the employer the equivalent of wages for that period.
• If the employee's resignation violates a contractual obligation to work, they may be liable for damages.

3. Kenya labour laws on leave days

Under section 28 of the Employment Act, the annual leave is the twenty-one working days, during which the employee is entitled to full pay without working and is exclusive of public holidays.

• Employees who have worked with the employer for 12 consecutive months are entitled to annual leave.
• An employee can accumulate leave, but it must be taken within 18 months. Not doing so will force the employee to forfeit the accumulated leave.

4. Kenya labour laws on working hours

Under the regulation of ages order, subsidiary to the Regulations of Wages and Conditions of Employment Act, the total working hours are 52 per week.

• Normal working hours every week 45.
• A person employed at night may not work more than 60 hours weekly.
• Employees below sixteen years old cannot work more than 36 hours a week.
• If a worker works more than the normal hours weekly, the extra hours are treated as overtime.
• Overtime shall be paid at the rate of and one-half hourly rate on weekdays and a rate twice the basic hourly rate on Sundays and public holidays.
• Employers can schedule overtime for their employees.
• An employee is entitled to a weekly rest day after working six days.

5. Kenya labour laws on retrenchment

The Employment Act Kenya 2007 defines retrenchment as the loss of a job or occupation through no employee's fault. Retrenchments happen mostly when the services of the employee are no longer needed.

• Selecting employees to be retrenched should be based on the seniority at the time, skills, abilities, and dependability of each employee in the selected group of employees to be laid off.
• The Labour Relations Act of 2007 governs labour laws in Kenya regarding employee unionisation. Individuals over the age of 16 can join trade unions, according to one of the labour laws on trade union registration. Assume an employee belongs to a labour union, in that case, the employer should notify the local trade union official by issuing a notice less than thirty days before retrenchment. If the employee is not a member of a union, the employer must notify them in writing of the termination.
• Severance pay is the only payment for redundancy. In Kenya, this pay is equivalent to 15 days of basic wages for each completed year of employment.
• An employee is not entitled to service pay if they are a member of a registered pension fund, gratuity or service pay scheme established under a collective agreement or any other scheme provided by the employer whose terms are favourable.

6. Kenya labour laws on maternity leave

According to the Employment Act 2007, female workers are entitled to three months (91 calendar days) of fully paid maternity leave on the birth of a child.

• The worker must give written notice of at least seven days before proceeding on maternity leave on a specific date and return to work after the completion of 3 months.
• When on maternity leave, the female employee will receive her salary in full.
• The maternity leave can be extended with the employer's consent, or a worker may proceed to sick leave or any other kind of leave with the employer's approval.
• A female employee who takes maternity leave shall not incur any loss of privileges.
• An employer is not allowed to dismiss a woman worker because of absence from work due to pregnancy.

7. Kenya labour laws on salaries and wages

Under the law, every worker is entitled to receive full payment for work. Full pay includes wages, which are payments made hourly, daily, weekly or piecemeal. Full pay may also be a salary, which is a fixed monthly payment for professional or office work.

Any allowance may be paid with the worker's consent as long as it is for the worker's benefit. Wage deductions are not permitted in exchange for job placement. They may be deducted in the following situations:

• The funding of a provident fund.
• A fair compensation for any harm or loss to the employer's property.
• The equivalent of one day's pay in cases where the employee is unlawfully absent.
• An amount equal to any shortage brought on by the employee's carelessness or dishonesty.
• Any deductions are allowed by written law.
• Amount due and payable by the employee, in accordance with the written terms of an agreement, and any additional sums allowed by law, as well as any amount the worker requests in writing for any reason.

Employers are required to give pay slips to all employees at or before each payday except for casual employees or those employed for a period of time less than six months.

Importance of labour laws in Kenya

The importance of labour laws in Kenya includes:

• Reduces industrial unrest and promotes harmony within the organization.
• Protects workers from exploitation by employers.
• Enhances industrial relationships.
• Guarantees job security for employees.
• Assists employees to get fair wages equivalent to their contribution.
• Acts as a tool to promote worker empowerment as well as worker protection.
• Aims to correct the imbalance of power between the worker and the employer

Use the above labour laws in Kenya with regard to working hours, contracts, and employee rights to protect yourself from unfair dismissal, among other issues.

READ ALSO: What are the advantages of salaried employment? (And its disavantages)

Tuko.co.ke recently published an article discussing the benefits and drawbacks of salaried employment. Employers commonly use two types of compensation systems: salaries and wages. For both employers and employees, both structures have advantages and disadvantages.

A salaried employee is hired for a set period and receives a set amount of money as a salary. A salary is fixed and certain, but it also has many drawbacks, such as inflexibility and a lack of overtime pay.

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Source: TUKO.co.ke

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