Employment contracts Kenya

What should an employment contract in Kenya include?

The most basic elements of employment contracts in Kenya are:

• Names, contact details, and other personal information of both parties.
• A description of the job position and the employee’s duties, rights and responsibilities.
• Salaries, wages and benefits the employee is entitled to.
• The hours and the days of the week when work operations are performed.
• Employment termination policies, including notice periods and applicable severance pay.
• Non-disclosure and confidentiality clauses to safeguard sensitive information.

Both parties to the contract should carefully read, understand, and accept the terms of the employment before providing their signatures.

What types of employment contracts exist in Kenya?

The following are the most commonly used employment contracts in Kenya:

1. Employee contracts 

There are 2 types of employee contracts in Kenya:

• Permanent employment contracts: These contracts are considered standard employment contracts as they’re the most common type used in Kenya. Permanent employment contracts don’t feature a fixed end date, and they regulate long-term arrangements where the employee is hired permanently. Therefore, they can only be terminated by following the pre-defined notice period.
• Fixed-term employment contracts: In contrast to permanent contracts, fixed-term contracts are used for hiring employees on a temporary basis and have pre-determined start and end dates. Fixed-term contracts are terminated once the contract period is over or earlier by following the pre-specified termination policies and notice periods.

2. Casual employment contracts

Under casual employment contracts, employees are hired for not longer than 24 hours at a time and paid daily. Casual employment contracts can be converted to fixed-term or permanent contracts if the work operations are continuous or can’t be completed in a specific period of time.

3. Contracts for services

Service contracts are typically used to hire freelancers, independent contractors, or other individuals who offer their services to businesses and clients in need of expertise for a specific task. Under these contracts, the individual providing services is not classified as a regular employee, and they are responsible for submitting taxes and benefits on their behalf.

How to hire employees in Kenya? 

Businesses aiming to hire personnel in Kenya are obligated to establish a legal entity, obtain a tax identification number, and set up a local bank account before starting with the recruiting procedure.

Additionally, employers must be well-versed and comply with the country’s labour regulations in areas such as minimum salaries, benefits, working hours, termination protocols, and other essential requirements.

For a streamlined approach to hiring workers in Kenya, employers can take advantage of the expertise provided by global expansion companies like Native Teams. By choosing our employer of record solutions, you can rest assured that tasks such as payroll management, taxation, and HR administration are meticulously handled while fully adhering to regulatory requirements.