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Thursday 2 May 2013

TERMINATION OF EMPLOYMENT RELATIONSHIP


MODE OF TERMINATION OF EMPLOYMENT RELATIONSHIP


TERMINATION OF PROBATIONARY CONTRACTS
TERMINATION BY NOTICE.
REDUDANCY
SUMMMARY DISMISSAL
(UN)FAIR DISMISSAL

GROUNDS FOR TERMINATION



Ø  Probationary
contracts are contracts that expressly state that they are for probationary period;

Ø  they last for
a maximum period of twelve months.

Ø  Probationary
contracts for that reason stand terminated at the end of the stipulated duration.

Ø  Probationary
contracts can also be terminated either by notice or summarily

Ø  The
employer or employee intending to end the employment relationship for whatever lawful and fair reason can do so by giving notice to the other party.

Ø  Alternatively
, if the terminating party fails to give notice as required, he shall be liable to paying wages in lieu of notice for the notice period.

Ø  This s an
involuntary loss of employment, job or career of an employee.

Grounds
1)       It occurs when,  at the initiative of the employer, the services of an employee are unneeded or become superfluous;

2)       It includes the practices commonly known as abolition of office or job.

3)       It could also occur as a result of the employer’s insolvency.

Ø  It is the
termination of employment summarily on the grounds that the employee is guilty of  fundamental breaches/gross misconduct, that is:-
1)        Absenteeism
2)        Intoxication at place of work
3)        Willful negligence or doing work carelessly,
4)        use of insulting language to employer
5)        refusal to obey lawful commands from employer
6)        if employee is arrested and he’s not been set at liberty within 14 days
7)        commission of a crime detrimental to the employer or employer’s property
8)        Breach of any vital obligation.
Ø  The
employer is not supposed to terminate employment relationship unfairly
Ø  Termination
of employment relationship is deemed unfair if the employer fails to prove the validity and the fairness of the reason of termination as well as the properness of the procedure adopted.

Ø  It is deemed
unfair dismissal if the grounds of the dismissal are:

1)        going on or proposal of going on leave of an employee;
2)        involvement in trade unionism;
3)        race, sex, HIV status, nationality, tribe etc.;
4)        participation in lawful strike;
5)        initiation of legal proceedings/complaint against the employer
6)        pregnancy
TERMINATION OF PROBATIONA-RY CONTRACTS
TERMINATION BY NOTICE.
REDUDANCY
SUMMMARY DISMISSAL
(UN)FAIR DISMISSAL









TERMINATION OF EMPLOYMENT PROCEDURES.



Ø  Either
party may give a seven day notice of termination or in  case the terminating party is the employer, payment of wages in lieu of notice will be sufficient.

Ø  There is
no requirement that the employee be notified of and explained to the reasons of the termination.

Ø  The
employee whose employment has either been summarily or unfairly terminated has no right of lodging a claim as against his employer.
1)        There is no
requirement of giving notice where wages are paid  daily; the contract terminates at the end of the day.

2)        if the contract
is for payment of wages periodically but for a period shorter than a month, notice should be given that is equivalent to the duration of such payment.

3)        where the
contract is for payment of wages periodically for a period equivalent to or greater than a month, a notice of 28 days will be required to be given.

4)        However,
parties can agree to make the period of giving notice greater than that stipulated in the foregoing paragraphs.

5)        If the
employee is unable to understand the contents of the notice, the employer shall be under duty to explain orally to the employee in the language that the employee understands.

6)        The notice
requirement does not extend to employees who are members of:
a)        a registered provident fund registered under the Retirement Benefits Act; or

b)        members of a gratuity or service established under a collective bargaining agreement; or,

c)        members of any scheme operated by the employer with more favourable terms than those of any scheme established under the Employment Act; or

d)        members of National Social Security Fund.

7)         For contracts
where payment is made periodically and that period is either monthly or exceeds one month, either party terminating the contract can make payment in lieu of notice that is equivalent to the amount paid for that duration.

8)        Termination
by notice does not preclude an employee from disputing the lawfulness or fairness of the termination nor does it restrict the employee or the employer from terminating the employment contract for any reason recognized by law.

9)        Where the
employee has given notice of termination of service and the employee has wholly or in part waived the notice, the employee shall be entitled to remuneration for the period not served unless the employee and the employer agree otherwise.

10)     Where a casual
worker works continuously for a period aggregating more than a month or where the work he is engaged in would reasonably take a period of three or more months to complete, he will be entitled to notice of one month subsequent to termination.

11)     CERTIFICATE
OF SERVICE
The employer shall issue to the employee certificate of service at termination unless the employee has worked for less than 4 weeks.
1) for the employer to terminate employment relationship on account of redundancy he must first  meet  the following conditions:
a)        Where
the  employee is a member of a trade union the employer is to inform the trade union and the area labour officer at least one month preceding his decision to render the employee redundant.

b)         Where
the employee  is not a member of  any trade union, the employer should notify him in writing and the area labour officer of the intended redundancy

c)        In
selecting the employees to be rendered redundant, the employer should adhere to seniority, reliability, ability and skills of the employees;

d)        The
employer should not put an employee on a disadvantage owing to the existence of a collective agreement (setting out the terminal benefits) to which the employee is not a member.

e)        Where
leave to an employee declared redundant is due, the employer should pay off the leave in cash.

f)         The
employer shall give the employee one month’s notice or pay one month’s wages in lieu of notice.

g)        The
employer is to pay to the employee declared redundant severance pay at the rate of not less than 15  days for every completed year of service.

2) The Minister may make Rules requiring that employers employing a certain number of employees insures them against risk of redundancy.

3) CERTIFICATE OF SERVICE
The employer shall issue to the employee certificate of service at termination unless the employee has worked for less than 4 weeks.

4)       The
employer is not bound to give a testimonial, certificate or reference as to the performance or character of the employee.

However, willful or negligent failure of employer to give certificate of service to the employee or where the employer includes a statement he knows to be false in the certificate of service  is an offence
Ø  The notice of
termination/dismissal may or may not be given or if given it may be shorter than the minimum provided for.

Ø  dismissal in
this case is summarily,

Ø  Even so, the
employee has to be notified of and explained to in the language that he understands of the reasons of his dismissal, and be accorded an opportunity of being heard and represented (by another employee or shop floor union representative).

Ø  The
employer has to take into consideration the views of the employee or his representative.

NOTE: The right to be heard and be represented extends to instances where the employer intends to terminate the contract on grounds of poor performance or physical  incapacity

LODGING A COMPLAINT OF SUMMARY DISMISSAL
1)       The affected employee shall lodge a complaint with the labour officer within 3 months of the date of dismissal

2)       The labour officer shall accord the parties a hearing and recommend to them the best way of settling the dispute.

3)       In addition, the employee has right to complain to the Industrial court and any other right under a collective bargaining is not precluded.

4)       REPRESENTATION
Ø  Neither the
employer nor the employee shall be represented by an advocate in proceedings before the labour officer.

Ø  However, any
party may be assisted or represented by a member of the trade union or official of employer’s organization even though such official may be an advocate.

5)       CERTIFICA-
TE OF SERVICE
The employer shall issue to the employee certificate of service at termination unless the employee has worked for less than 4 weeks.

6)       The
employer is not bound to give a testimonial, certificate or reference as to the performance or character of the employee.

However, willful or negligent failure to give certificate of service to the employee or includes in the certificate a false statement is an offence.
1)       Whenever a
claim for termination arises, the employer must prove the reason(s) for the dismissal.

The employer must prove:
a)        That the  reason for
the termination was a valid reason;
b)        That the
reason is fair (related to the capacity, conduct and compatibility of the employee AND based on operational requirements of the employer)
c)        That the termination
was in accordance with fair procedure (the employee shall be notified of the reason(s) for the termination in the language that he understands, be accorded an opportunity to be heard and be represented by an employee or shop floor representative).

2)       Failure to
prove the above will render the termination unfair and therefore wrongful.

3)       Unfair
termination claims may only be raised by employees who have been engaged continuously for more than 13 months preceding the date of termination.

4)       The employer
must act in accordance with justice and equity in terminating the employment relationship if the termination is to be fair.

5)       Relevant
matters that the court/labour officer shall consider in deciding whether termination was just and equitable (fair):

a)        the procedure adopted by employer, communication of the decision to the employee and manner  any appeal arising from his decision was handled;

b)        the conduct and capacity of the employee up until his termination date;

c)        extent of employees compliance with the provisions of employment law (procedural requirements and issuance of certificate of service)

d)        previous practices of the employer in dealing with the type of circumstances which led to termination.

e)        Existence of previous warning letters.

Ø  Hence, the
employer must ensure that he adheres to the foregoing.

6)       In a claim of
unfair dismissal, the employee shall bear the burden of proving the unfairness of termination while the employer shall bear the corresponding burden of proving fairness of the dismissal.



LODGING A COMPLAINT OF UNFAIR DISMISSAL.
7)       The affected
employee shall lodge a complaint with the labour officer within 3 months of the dismissal

8)       The labour
officer shall accord the disputants a hearing and recommend to them the best way under the law of resolving the dispute.

9)       In addition,
the employee has right to complain to the Industrial court and any other right under a collective bargaining is not precluded.

REPRESENTATION
10)    Neither the
employer nor the employee shall be represented by an advocate in proceedings before the labour officer.

11)    However, any
party may be assisted or represented by a member of the trade union or official of employer’s organization even though such official may be an advocate.

CERTIFICATE OF SERVICE
12)    The employer
shall issue to the employee certificate of service at termination unless the employee has worked for less than 4 weeks.

13)    The employer
is not bound to give a testimonial, certificate or reference as to the performance or character of the employee.

However, willful or negligent failure to give certificate of service to the employee or includes a false statement in the certificate of service is an offence

Friday 26 April 2013

The Salient Features of the Employment Act, 2007




The Salient Features of the Employment Act, 2007
The Employment Act, 2007 (also known as the Chapter 226 of the Laws of Kenya) repealed the former Employment Act and the Regulation of Wages and Conditions of Employment Act Chapter 229 of the Laws of Kenya.
This Act, whose commencement date was 2nd June, 2008, provides for general terms and conditions of employment in Kenya and applies to both domestic and foreign contracts of employment.
The following are the main features of the Employment Act, 2007.
1.                Section 5 (3) of the Act  provides that  no employer shall discriminate, directly or indirectly, against any employee or prospective employee or harass an employee or prospective employee on the ground of race, colour, race, language, religion, political or other opinion, nationality, ethnic or social origin, disability, pregnancy, mental or HIV status or in respect of recruitment, training, promotion, terms and conditions of employment, termination of employment or other matter  arising out of the employment. Further, subsection (4) thereof provides that an employer shall pay his employees equal remuneration for work of equal value.  It should be noted that any employer who violates this provision may be prosecuted for a criminal offence under subsection (5) thereof.
2.                Section 6 of the Act outlaws all forms of sexual harassment at places of works. This provision require every employer to take steps to ensure that no employee is subjected to sexual harassment of any form and take disciplinary measures as deemed appropriate against any of his employees who subjects another employee to sexual harassment.  Further, under subsection (2) thereof, an employer who employs twenty (20) or more employees should in consultation with the employees or their representatives, if any, issue a policy statement on sexual harassment, which shall be brought to the attention of every person under the employer’s direction.
3.                Section 7 of the Employment Act provides that “no person shall be employed under a contract of services except in accordance with the provisions of the Act”. Section 8 goes ahead to provide that the provisions of the Employment Act apply to both oral and written contracts of employment..
4.                Under section 9 of the Act, a contract of service (a) for a period or a number of working days which amount in aggregate to the equivalent of three (3) months or more, or which provides for the performance of any specified work which cannot reasonably be expected to be completed within a period or a number of working days amounting in aggregate to the equivalent of three (3) months; must be writing.
5.                Under the aforesaid section, it is obligation and duty of the employer to have the contract of employment prepared in accordance with the provisions of the law and ensure that the same is signed the employee.
6.                Under section 10(1) of the Employment Act, a written contract of service specified under clause 9 above, shall state the particulars of employment, which may, subject to section 10(3) of the Act,  be given in instalments and in any event not less than two (2) months after the beginning of employment.  Under subsection (2) of thereof, a  written contract of service  shall contain the following particulars or details:
(a)                the name, age, permanent address and sex of the employee;
(b)               the name of the employer;
(c)                job description of the employment;
(d)               the date of commencement of the employment;
(e)                form and duration of the contract;
(f)                 the place of work;
(g)               the hours of work;
(h)               remuneration scale or rate of employment, the method of calculation of that remuneration and details of any other benefit;
(i)                 date on which employee’s period of continuous employment began, taking into account any employment with a previous employer which counts toward that period; and
(j)                 any other prescribed matter.
Please not that under section 10(5), where any of the matters highlighted above changes, the employer shall in consultation with the employee, revise the contract to reflect such changes and notify the employee of the change in writing.
Further, under section 10(6) of the Act, the employer shall be required to keep records of the above particularly for a period of at least 5 years after the termination of employment.
If not contained in the contract of service, the employer shall also be required to prepare a statement containing the following particulars which can be incorporated into the contract of service by reference:-
(a)                any terms and conditions of employment relating to any of the following:
(i)                 entitlement to annual leave, including public holidays and holiday pay;
(ii)              incapacity to work due to sickness or injury including any provisions of sick pay; and
(iii)            pension and pension schemes;
(b)               the length of notice which an employee is obliged to give and entitled to receive to terminate his contract of employment;
(c)                where employment is not intended to be for an indefinite period, the period for which it is expected to continue or; if it is a fixed term, the date when it will end;
(d)               the place of work or, where the employee is required or permitted to work at various places of work, an indication of that place of work and address of the employer; and
(e)                disciplinary rules and disciplinary procedure.
5.                Please note that under section 13 of the Employment Act, if, after the material date there is a change in any of the particulars under sections 10 and 12 of the Act, the employer shall give to the employer a written particular of changes at least one (1)  month after the changes. Under section 16 of the Employment Act, where an employer does not give an employee a statement as required under sections 10, 12 and 13 aforesaid, or an itemised pay statement required under section 20 of the Act, the employee may file a complaint with the labour officer.
6.                Under section 15 of the Employment Act, an employer shall display a statement in the prescribed form of the employee’s rights under the Act in a conspicuous place, which is accessible to all employees.
7.                Under section 17 (6) of the Act, if any employer advances to an employee a loan in  excess of the amount of one (1) month’s his wages, or in case of an employee with written contract, two (2) months’ wages,  the excess shall not be recoverable in a court of law.  This section therefore implies that if an employer advances any loan to an employee, the employers shall be obliged to take a separate security from the employee to secure the repayment.
8.                Under section 20 of the Act , an employer shall be required to give every employee (except a casual employee or an employee engaged on piece rate or task rate terms of any period not exceeding 6 months) an itemised pay statement either at or before the time of payment of the salaries and wages.  At the minimum, such statement should contain the following particulars:-
(a)    the gross amount of the wages or salary of the employee
(b)   itemised statutory deductions; and
(c)    net pay
9.                An employer who is not incorporated or resident in Kenya may be required by the Minister to pay bond assessed at the equivalent of one month’s wage of all the employees employed or to be employed by such employer.
10.            The annual leave is twenty one (21) days with full pay after every twelve (12)  consecutive months of service . Where employment is terminated after the completion of two (2) or more consecutive months of service, the employee is entitled to one and three-quarter (1 ¾ ) days of leave with full pay in respect of each completed month of service.
11.            The Employment Act states that every employee shall be entitled to one (1) day of rest for every week of service.
12.            Under section 30 of the Employment Act, after two (2) consecutive months of service with his employer, an employee shall be entitled to sick leave of not less than seven (7) days with full pay and thereafter to sick leave of seven (7)  days with half pay, in each period of twelve (12)  consecutive month of service, subject to the production by the employee of a certificate of incapacity to worked signed by a duly certified medical practitioner.
13.            Under section 29 of the Employment Act, women employees are entitled to three (3) months maternity leave with full pay besides the normal annual leave aforesaid. On the other hand, male employees are entitled to two (2) weeks paternity leave.
14.            House allowance should be given to an employee unless where gross salary is stated to be inclusive of house allowance (section 31 the Employment Act).
15.            Under section 34 of the Act, an employer is under an obligation to provide medical treatment to his employees during time of service and if possible medical attendance during serious illness. As a result provision, the employer should take up a medical insurance scheme for the benefit of his employees. Further, under Work Injury Benefits Act, the employer is obligated to pay compensation to an employee who has sustained personal injury or death as a result of accidents sustained either out of or in the course of employment.  Again, an employer can take out a workmen’s compensation insurance to meet such claims.
16.            Under section 42 of the Employment Act, 2007, probationary period for a new hiring or employee should not exceed six (6) month.   A probationary contract of employment can be terminated by a seven (7) days’ written notice by either party.
17.            Under section 43 of the Employment Act, in any claim arising from termination of a contract of employment, the employer must prove reason or reasons for the termination of employment.  If he fails to do so, he shall be deemed to have terminated the employee unfairly.
18.            The Employment Act provides for quite elaborate dismissal, termination, redundancy, and complaint procedures. Therefore, where an employer intend to terminate an employee it would be advisable to approach a lawyer for detailed advice.
19.            Under the Employment Act, employers are required keep and maintain records of their employees including records of disciplinary actions taken against such employees. Such records should provide for the particulars specified in section 74 of the Act.
20.            Under section 76 of the Employment Act, every  employer who employs twenty five ( 25)  or more employee is require to comply with the provisions of Part X of the Act. Under subsection (2) thereof, such employer must notify the Director of Employment of every vacancy occurring in this establishment, business or work place in the prescribed form.  The employer is also required to notify the Director of every recruitment, abolition of posts, termination or lay-off of employees within two (2) weeks from their taking effect.  Such an employer must also maintain a register of all his employees in every calendar year and send this to the Director not later than 31st January of the following year.
21.            Under section 83 of the Act, a foreign contract of service must be in the prescribed form, and must be signed by both parties and attested by a labour officer.
22.            Under section 90 of the of the Employment Act, no civil action or proceedings based or arising out of the Act or a contract of service in generally shall lie unless it is commenced within three (3) years next after the act, neglect, or default complained of or the case of continued injury or damage, within twelve (12) months next after cessation thereof.
23.            Under the Act, all labour and employment related disputes shall be handled exclusively by the newly established Industrial Court, which is established under the Labour Institutions Act, 2007.

This document has been adopted from http://kenyanlawyer.blogspot.com/2012/07/the-salient-features-of-employment-act.html

Note: If you require any more information or detailed legal opinion on may employment matter in Kenya, please do not hesitate to contact the writer on mainacy@gmail.com