An employment contract in Kenya is a key document that governs the relationship between an employer and an employee. They establish clear rules regarding pay, work, and rights.
We have gathered all the information you need on employment contracts in Kenya, including what they are, the types, what they should include, and a few such inquiries.
As an employer or employee, understanding an employment contract in Kenya empowers you with the knowledge of your roles, responsibilities, and protection.
Here is everything on types of employment contracts in Kenya, the legal provisions, and what they mean for Kenya’s working conditions.
Employment Rates in Kenya
According to recent data, some 20 million people are employed in Kenya as of 2023. The jobless rate is about 5.7%.
With more than 800,000 new workers recently entering the labor force, creating enough jobs to keep up has become burdensome.
The most significant number is employed in agriculture, followed by services and manufacturing.
What Exactly is an Employment Contract in Kenya?
An employment contract can be a verbal or written agreement between an employer and an employee.
It outlines the job, the pay, and the rules that both must abide by. In Kenya, an employment contract is a legal contract that ensures that both parties are protected.
Unlike “at-will” employment, there is no contract, and an employer can terminate the job anytime.
An employment contract in Kenya can be expressed in words (oral) or writing; however, written employment contracts are the safest way to go, as it is easier to prove their existence.
Such contracts eliminate confusion and boundary disputes between employees and employers.
What Are the Different Types of Employment Contracts?
There are different types of employment contracts in Kenya. Each employment contract is suited to other tasks and requirements. Here are the main ones:
Permanent Employment Contracts
These are for open-ended jobs without an end date. They may be full or part-time. Typical company employee contracts in Kenya are permanent.
Fixed-Term Employment Contracts
These are valid for a fixed period, such as six months or a year. These are common with contract jobs in Kenya, e.g., projects or seasonal work.
Casual Employment Contracts
In Kenya, a casual employment contract refers to short and irregular work. They are paid daily or weekly, typically in jobs such as farming or retail.
A career progression path optional feature of causal employee contracts is ideal for flexible working schedules.
Zero-Hour Contracts
These contracts mean workers are on demand whenever needed and without fixed hours. Such agreements are rare in Kenya but do exist in some sectors.
Independent Contractor Agreements
These are for freelancers, not employees. An employee contract in Kenya does not cover them.
Probationary Contracts
These are short-term contracts used to try out a prospective employee. The usual probation period in Kenya under the current Employment Act in Kenya is six months.
What Are the Must-Haves/Contents of an Employee Contract in Kenya?
Here is what every employment contract in Kenya must have:
Basic Information
Employer and employee names, job titles, and start dates.
Compensation Details
The employee’s compensation (daily, weekly, or monthly), when they are paid, and any rules on overtime or bonuses.
Work Schedule
Working hours, off days, and whether the job is in the office or remotely.
Benefits and Perks of Having an Employment Contract in Kenya
Like health insurance days off or retirement plans.
Job Duties
An employee’s role in their job.
Termination Rules
Notice needed to terminate the job and causes for employee termination such as poor performance.
Confidentiality Clause
Talking points to protect company secrets
Non-Compete Clause
Restrictions on working for rivals after departure (where permitted by law).
Dispute Resolution
Methods for resolving disputes such as negotiation or litigation.
Signatures
The employee contract agreement is legally binding on both sides if it has the official signature of the employer and employee.
Legal Obligations for Employment Contracts
In Kenya, employers are required to comply with the existing Employment Act (2007). It is a law that applies to all of the employment contracts in Kenya.
They must:
- Pay a minimum wage
- Ensure secure Kenya working conditions
- Treat workers fairly.
It is against the law to discriminate based on gender, tribe, or religion. Employees must maintain records for all employee contracts.
If they violate these rules, they can be fined or sued. Employees also have rights, such as making money on time and taking time off.
Advantages of Having an Employment Contract in Kenya
- Workers have guaranteed pay and defined responsibilities in employee contracts.
- They are legal protections for employees in Kenya.
- In Kenya, companies use an employment agreement to prevent ambiguity.
- Contracts keep company secrets from being shared.
- An employee contract in Kenya includes trust between the two parties.
- Both employees would also find it easier to change their contracts if they agreed.
Digital Employment Contracts in Kenya
What are digital employment contracts in Kenya? Now, that shows the trends fueled by technology and remote work:
What is a Digital Employment Contract in Kenya?
A digital employment contract in Kenya is an employee contract agreement created, shared, and signed using computers or phones.
It operates under the same regulations as a paper employment contract in Kenya, except that it is digital.
Kenya’s Employment Act currently permits these contracts if they comply with the law.
Who Are They For?
Contracts in Kenya are digital and for everyone with access to the internet. They also suit remote workers, freelancers, or contract jobs in Kenya, such as IT or delivery services.
Due to better internet access and global demand for flexible jobs, remote work has been growing in Kenya, especially since the pandemic.
Experts estimate that 5-10% of Kenya’s workforce could be remote or hybrid by 2025, based on tech adoption and job listings on platforms like LinkedIn, which show hundreds of remote roles.
Employers in places such as Nairobi or Mombasa use them to recruit people quickly.
These are also fine for casual or construction employee contracts for temporary positions.
How Do Digital Employment Contracts in Kenya Work?
An employer creates an electronic job contract in Kenya using software or templates. In other words, they email or send it via an app to the employee.
The employee reviews it and e-signs it using a phone or computer. It gets signed, and the contract is stored in the cloud; both sides get a copy.
Kenyan employment contract laws do the process for legal protection.
Benefits of Digital Employment Contracts
Time-saving– They are signed and shared within a day, which reduces the time taken for employment contracts in Kenya.
Convenience- Employees and employers can sign from any location, thus promoting Kenya working conditions for remote jobs in the country.
Less closely- The digital contracts reduce cost and clutter from basic employee contracts on paper.
Security- Storing employee contracts online secures their details and makes them easy to find.
Flexibility- If both parties agree, digital updates make tweaking employee contracts easier.
Legal Force– They are valid for e-signatures as per the Employee Contract Act in Kenya.
E-Signatures in Kenya
An e-signature is a digital version of your signature, such as your name typed out or signed digitally, that indicates your acceptance of the contract.
E-signatures are legal in Kenya under the Kenya Information and Communications Act. In Kenya, an e-signature for an employment contract equals a handwritten one, as long as it’s secure and shows who signed it.
This renders fast and trusted employee contracts digitally in Kenya. Employers must use safe systems to avoid fraud, and employees must familiarize themselves with all contracts before signing.
Why They Matter
Digital employment contracts also enable modern work, such as remote work or gig jobs.
Quantifying recruitment is a good way to assist Kenya’s employment rate, and essentially, these technologies work as guidelines that enable companies to employ their prospective candidates.
From company employee contracts to casual employment contracts in Kenya, going digital ensures clarity and legality. If you guess about employee contract eligibility or e-signatures, speak with an employee contract attorney.
Key Differences in Employment Contracts by Jurisdiction
Employment contracts differ from country to country. In the U.S., no contract is required for many jobs; they are “at will.”
In Europe, employee contracts are very much protected. The Employment Act 2007 provides for every employment contract in Kenya.
This breaches the Kenyan employment contract {for jobs longer than three months, a written agreement is required by law}. If you work across borders, knowing these differences can help.
Mistakes to Avoid When Drafting Employment Contracts
The following are problems that employers and employees should avoid:
- Ambiguous language that confuses people.
- Lacking essential information, such as pay or rules for termination.
- Disregarding the Kenyan Employment Act.
- Failing to update basic employee contracts when jobs are changing.
- Missing signatures on employee contract agreement.
Kenya’s Employment Act
Kenyan employers and employees should be aware of the rules set within the employment contracts. They provide fair pay and good working conditions in Kenya as the law requires.
Kenya’s Employment Act Guarantees Employee Rights with Contracts. This lowers conflicts such as unfair termination in Kenya by clarifying job functions and expectations.
Employment contracts in Kenya are critical for the smooth functioning of a business. It strengthens the confidence of workers and helps the Kenya employment rate.
How to Create or Review an Employment Contract
For employers:
- Speak to an employee contract attorney.
- That template can work, but you must tweak it to make it your own.
- Keep looking through frequent employment contracts.
For employees:
- Thoroughly read every employee contract definition and detail.
- Inquire about things that remain unclear.
- Advise to propose modifications if the contract sounds unfair.
Contracts are changing. Remote work is rewriting employee contracts. In Kenya, the gig economy impacts many contract jobs (think ride-hailing).
Technology simplifies signing and e-signatures, for example. Laws could also become stricter to boost Kenya’s employment rate and provide workers rights.
Conclusion
An employment contract in Kenya is an essential instrument of fair work. It includes permanent or contract employee agreements, meaningful content, and legal regulations.
Whether drafting basic contracts for employees or comparing samples of employee contracts, adhering to the current Employment Act in Kenya will guide you in maintaining clarity.
Get to peruse your employee contract in Kenya today or consult an employee contract lawyer in Kenya for advice.
FAQs
Do Employee Contracts Expire?
A fixed-term contract finishes on a specific date. Permanent ones don’t expire and can be canceled with advance notice.
Are Employee Contracts Legal?
Yes, assuming they comply with Kenyan employment contract laws. Even verbal agreements can be legally binding, though those are more challenging to enforce.
What Is the Most Common Employment Contract?
In Kenya, permanent contracts are primarily used for full-time jobs.
What Are the Four Contract Types?
The main types of contracts include permanent, fixed-term, casual, and zero-hour contracts.
How many months of contract can an employee have in Kenya?
According to the Employment Act of 2007, probation can last six months. Fixed-term contracts will vary on what the job is but must be just.
Is an Employment Contract Changeable?
Yes, but employee contracts can only change if both employer and employee agree.
What If an Employer Violates a Contract?
A breach of an employee contract, such as failure to pay wages, allows the employee to sue for money or fairness.
Are Verbal Agreements Enforceable?
Yes, but a written contract is better evidence in court.
Do All Employees Need a Contract?
A written employment contract is a legal requirement for jobs lasting over three months in Kenya.
What is the Difference Between a Contract and an Offer Letter?
An offer letter is a job offer. This is an entire legal agreement called a contract.
What if an employee refuses to sign a contract?
Yes, although they could lose their job.
How long should old contracts be kept on file?
Kenyan law says employers must retain records for at least five years after employment ends.
