The Employment Act, 2007: A Comprehensive Overview

The Employment Act, 2007, is a cornerstone of employment and labor law in Kenya. Its purpose is to define the rights and responsibilities of employers and employees, ensuring fair labor practices and setting out minimum standards. Here, we’ll break down the Act into its key parts, making it easier to understand its relevance and application. It is the main law that defines the personal relationship between an employer and an individual employee, nature of their relationship and the bare minimum conditions that must be met to have a fair working environment. It also defines and clarifies several key employment concepts including definition of employee, employer, contract of service and how to engage each other in the employment relationship.

Part I: Preliminary

This section introduces the Act, detailing its short title, key terms, and application. It applies to all employers and employees under a contract of service, except specific groups like the armed forces and police. It also emphasizes that the terms set by the Act are minimum requirements, ensuring no agreement undermines these standards. This section defines several terms legally and provides understanding of some terminologies used in the employment context. It also provides the scope of this Act of parliament and sets the tone of what to expect in the document.

Part II: General Principles

This part sets out fundamental rights and protections:

Prohibition of Forced Labor: Ensures no person is subjected to work under coercion.
Non-Discrimination: Employers must promote equality, ensuring no discrimination based on race, gender, disability, or other factors.
Sexual Harassment: Employers with 20 or more employees must issue policies addressing sexual harassment, protecting employees from unwelcome conduct that affects their work environment.

Part III: Employment Relationship

This part addresses the foundation of employment contracts:

Contracts of Service: May be oral or written, but contracts lasting over three months must be in writing.
Employee Rights: Employees must be informed of their job particulars, including terms of service, remuneration, and disciplinary rules. Employers are also required to notify workers of any changes to their contracts.

Part IV: Protection of Wages

This section outlines how wages should be managed:

Payment: Employees must be paid in full, on time, and through appropriate means.
Deductions: Only authorized deductions, like taxes or provident fund contributions, are allowed.
Itemized Pay Statements: Employers must provide clear pay slips showing gross pay, deductions, and net pay.

Part V: Rights and Duties in Employment

Employees and employers have reciprocal responsibilities:

Minimum Conditions: Establishes working hours, rest days, and annual leave (at least 21 days).
Leave Entitlements: Employees are entitled to maternity leave (three months), paternity leave (two weeks), and sick leave.
Basic Needs: Employers must provide housing allowances, water, food (if agreed in contracts), and medical attention during illness.

Part VI: Termination and Dismissal

This part regulates fair and lawful termination of employment:

Notice Periods: Outlines notice requirements for termination based on the type of contract.
Redundancy: Employers must follow specific steps, including providing notice and severance pay, in case of redundancy.
Unfair Termination: Protects employees from arbitrary dismissal, requiring employers to provide valid reasons and follow due process.

Part VII: Protection of Children

Child labor is strictly regulated under this section:

Prohibition: Employing children in hazardous or exploitative work is forbidden.
Minimum Age: Children aged 13–16 may engage in light work, provided it doesn’t harm their education or health.
Employment Records: Employers must maintain records of child employees and ensure medical examinations where necessary.

Part VIII: Insolvency of Employer

This part safeguards employee rights during employer insolvency:

Wage Protection: Employees are entitled to recover wages and other benefits owed before other creditors.
Claims: Employees can lodge claims with relevant labor officers or the courts for unpaid dues.

Part IX: Employment Records

Employers are required to maintain accurate records, including:

Employee details, hours worked, wages, and leave entitlements.
False or incomplete records are subject to penalties.

Part X: Employment Management

This part governs the reporting and recording of employment changes:

Vacancies: Employers must notify labor offices about job openings.
Termination Reports: Employers must report dismissals or resignations to labor authorities.

Part XI: Foreign Contracts of Service

When employees work abroad, the following are critical:

Attestation: Contracts must be approved by a labor officer to ensure fairness.
Security Bonds: Employers may need to provide bonds to guarantee employee rights.

Part XII: Dispute Settlement Procedure

This section provides mechanisms for resolving labor disputes:

Complaints: Employees can lodge grievances with labor officers or the Employment and Labor Relations Court.
Jurisdiction: The court has the authority to resolve employment disputes.

Part XIII: Miscellaneous Provisions

The final part includes administrative provisions and penalties:

Rules: The Minister may create additional regulations for the effective implementation of the Act.
Penalties: Employers violating the Act face fines, imprisonment, or both.

Final Thoughts

The Employment Act, 2007, is a vital legal framework protecting workers’ rights and fostering fair labor practices in Kenya. For employers, understanding and complying with the Act ensures ethical operations. For employees, it serves as a shield, safeguarding their dignity, rights, and well-being in the workplace.

If you are an employer or employee in Kenya, familiarize yourself with this Act—it’s your roadmap to a balanced and just work environment.