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What are the recommended provisions for an Employment Contract?

Introduction

In Kenya, employment contracts are governed by various laws and regulations to ensure that the rights and obligations of both employers and employees are clearly defined and protected. The primary legal framework for employment contracts is provided by the Employment Act, 2007. This Act outlines the essential elements that should be included in an employment contract to make it legally binding and enforceable. Additionally, other relevant laws such as the Labour Relations Act, 2007, and the Occupational Safety and Health Act, 2007, also provide guidelines that may impact the terms of employment contracts.

Table of Contents

  1. Legal Framework

    • Employment Act, 2007

    • Labour Relations Act, 2007

    • Occupational Safety and Health Act, 2007

  2. Essential Provisions in an Employment Contract

    • Identification of Parties

    • Job Description

    • Duration of Employment

    • Remuneration

    • Working Hours

    • Leave Entitlements

    • Termination Procedures

    • Dispute Resolution

    • Confidentiality and Non-Compete Clauses

    • Health and Safety

  3. Conclusion

1. Legal Framework

Employment Act, 2007

The Employment Act, 2007, is the primary legislation governing employment contracts in Kenya. It outlines the minimum terms and conditions of employment and provides protections for employees.

  • Section 9: Requires that an employment contract be in writing if the employment is for a period of three months or more.

  • Section 10: Specifies the particulars that must be included in the contract, such as the name, age, permanent address, and sex of the employee, job description, date of commencement, form and duration of the contract, place of work, hours of work, remuneration, and the intervals at which remuneration is paid.

Labour Relations Act, 2007

The Labour Relations Act, 2007, provides a framework for the registration, regulation, and management of trade unions and employer organizations, as well as the recognition of trade unions for collective bargaining.

  • Section 57: Deals with collective agreements and their incorporation into individual employment contracts.

Occupational Safety and Health Act, 2007

The Occupational Safety and Health Act, 2007, aims to ensure the safety, health, and welfare of workers in the workplace.

  • Section 6: Imposes a duty on employers to ensure the safety, health, and welfare of all employees.

2. Essential Provisions in an Employment Contract

Identification of Parties
  • Section 10(2)(a) of the Employment Act, 2007: The contract should clearly identify the employer and the employee, including their names and addresses.

Job Description
  • Section 10(2)(b) of the Employment Act, 2007: The contract should include a detailed job description, outlining the duties and responsibilities of the employee.

Duration of Employment
  • Section 10(2)(c) of the Employment Act, 2007: The contract should specify the duration of employment, whether it is for a fixed term or indefinite period.

Remuneration
  • Section 10(2)(e) of the Employment Act, 2007: The contract should state the remuneration, including the basic salary, allowances, and any other benefits. It should also specify the intervals at which remuneration will be paid.

Working Hours
  • Section 10(2)(f) of the Employment Act, 2007: The contract should outline the working hours, including the start and end times, and any provisions for overtime.

Leave Entitlements
  • Section 28 of the Employment Act, 2007: The contract should specify the employee's leave entitlements, including annual leave, sick leave, maternity/paternity leave, and any other types of leave.

Termination Procedures
  • Section 35 of the Employment Act, 2007: The contract should outline the procedures for termination, including the notice period required by either party and the grounds for termination.

Dispute Resolution
  • Section 62 of the Labour Relations Act, 2007: The contract should include provisions for dispute resolution, specifying the mechanisms for addressing grievances and resolving disputes.

Confidentiality and Non-Compete Clauses
  • Section 10(3) of the Employment Act, 2007: The contract may include confidentiality clauses to protect the employer's proprietary information and non-compete clauses to prevent the employee from engaging in competing activities during and after employment.

Health and Safety
  • Section 6 of the Occupational Safety and Health Act, 2007: The contract should include provisions related to the health and safety of the employee, ensuring compliance with the Occupational Safety and Health Act, 2007.

Conclusion

In conclusion, an employment contract in Kenya must comply with the provisions of the Employment Act, 2007, and other relevant laws to be legally binding and enforceable. The contract should clearly outline the identification of parties, job description, duration of employment, remuneration, working hours, leave entitlements, termination procedures, dispute resolution mechanisms, confidentiality and non-compete clauses, and health and safety provisions. By including these essential elements, both employers and employees can ensure that their rights and obligations are clearly defined and protected, thereby fostering a fair and productive working relationship.

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