EMPLOYEE CONTRACT SAMPLE
By Stephanie Marimba
Employee contracts are the basis of Labour law. These agreements are created to protect the interests of both the employer and employee. They safeguard the employer by ensuring that they are protected from any of the employee’s misconduct such as in circumstances of termination or liability. On the other hand, employment contracts protect the rights and interests of employees from being taken advantage of by those in more powerful positions ie. employers.
In Kenya, employment contracts are governed by different types of legislation, the main one being the Employment Act (CAP 226). This governs general employment contracts. The second legislation pertaining to employment contracts is the Regulation of Wages and Conditions of Employment Act (Cap. 229) which governs the health and safety, wages, leave and est and contracts concerning children. These are the two main acts, however, additionally, there is The Factories Act (Cap. 514) and The Work Injury Benefits Act (Cap. 253). These legislative instruments also provide certain guidelines on what an employment contract should contain and how it should be written.
In the following part, we have provided an example of a basic Employment contract as governed by the Employment Act.
CONTRACT OF EMPLOYMENT
This new agreement made the ............ day of ..................................... 20........ Between ................................................... (The employee) – and (The employer) whereby ........................................ is employed as …………… /or as directed at ………… under the following terms:
DURATION OF CONTRACT:
From ....................................... to ......................................... (2 years which may be renewed at the employer’s discretion).
BASIC, GROSS SALARY/WAGE
a) Basic Ksh.........................
b) Housing Ksh........................
c) Food Ksh.........................
d) Total Gross Ksh.........................
SERVICE SCHEME:
The employer provides the employee with a Service Scheme whose benefits shall be enjoyed at the end of the contractual period and shall be calculated at 15 days for every completed year of service.
Where the employee resigns or is dismissed before the expiry of the contract the service shall be ‘null & void’.
OTHER BENEFITS
Here is where other considerations such as loans or medical benefits can be provided for under special conditions.
PROMOTION
Promotion shall be at Management’s absolute discretion on the criteria of merit, skill, initiative, competence, Performance Related Pay (PRP) policy and Management’s decision shall be final and not negotiable.
ACCEPTANCE OF LETTER OF EMPLOYMENT
(a) The Terms and Conditions contained in this agreement shall not become binding until the employee has assumed duties and has deposited a letter with the Board of Director (Administration) signed by him/her denoting acceptance of the letter of employment and/or contract and agreed to Terms and Conditions.
(b) The employee produces a comprehensive medical report from a competent and qualified medical practitioner that such an employee is fit to work. Provided that
(1) the employer reserves the right to seek further medical opinions and
(2) no employee shall be compelled or requested to undergo unusual tests including HIV/AIDS tests without his or her consent.
PROBATION PERIOD
You shall be placed on a probation period of three (3) months. During this period, you will be under observation. Upon successful completion of the probation period, you shall receive a letter of confirmation in employment. However, if the Trust is not satisfied with your performance, you may be given another three months probation period or you will be given 1 weeks notice of termination of this contract.
STATUTORY DEDUCTIONS
(a) P.A.Y.E.
(b) N.H.I.F.
(c) N.S.S.F.
(d) Housing
(e) Food
(f) Loan etc.
HOURS OF WORK
Sets out the specific working hours for the employee and special circumstances concerning their working hours eg: absence, deduction in cases of the proper reason for absence and negligence. No employee will work on duly gazette Public Holidays. No overtime will be payable as a result.
PAID SICK LEAVE
After completion of the probation period, you shall be eligible for sick leave for a maximum of 30 days and thereafter to a maximum of 15 days with half pay in each period of twelve consecutive months’ employment upon production of a certificate of incapacity signed by a registered medical practitioner covering the period of sick leave. An employee discharged from
Employment on medical grounds shall be entitled to terminal benefits in respect of the Non - Contributory Gratuity Scheme to be determined on a pro-rata basis.
MATERNITY LEAVE
All pregnant married employees shall be entitled to be paid maternity leave once ONLY during the course of the contract period and such leave shall be for ninety (90) calendar days.
ANNUAL LEAVE/VACATION LEAVE
(a) An employee shall be entitled to annual leave after continuous service of twelve calendar months calculated at 2 days for every completed month. The time for taking leave shall be agreed upon between the employee and management on an individual basis. All leave shall be applied for in writing and shall be at the discretion of Management. Where an employee dies/dismissed/resigns, his/her leave will be calculated on a pro-rata basis. The employee’s salary shall be paid on the last workday immediately before the commencement of the leave.
(b) No leave days will be exchanged for Cash
SPECIAL LEAVE
Given special circumstances of an employee requiring special leave, Management shall grant such an employee a maximum of seven paid working days leave which shall be subtracted from the accrued leave days of such an employee provided that management, depending on the circumstances of each case may extend such a period as may be necessary for the circumstances.
COMPASSIONATE LEAVE
Management shall grant at least five days as compassionate leave to an employee faced with a funeral in the employee’s nuclear family (husband, wife, biological registered children, biological father and mother) save that the first five days shall not be subtracted from the employee’s accrued leave days.
PUBLIC HOLIDAYS
All gazetted public holidays shall be paid days to all the employees.
TERMINATION OF CONTRACT
Either party may terminate the contract at any time before its expiry by giving one full month’s notice without reason. The employee’s Non-Contributory Gratuity Scheme shall be determined on a pro-rata basis.
SUMMARY DISMISSAL
Summary dismissal may be affected as a result of a violation of the Disciplinary Code of Conduct (as attached) or in other cases as provided by law or absence from work for ten (10) continuous days without valid documentation, such an employee shall also be summarily dismissed. These dismissals shall result in the loss of all entitlements, gratuity, bonuses and leave days.
PROTECTIVE CLOTHING
The employer shall provide protective clothing to all employees engaged in duties requiring the same and shall be the property of the employer. It shall be the responsibility of the affected employee to keep and maintain such clothing.
Upon leaving employment it shall be at Management’s discretion whether the employee should retain or surrender the uniform given immediately preceding the act of leaving employment.
IN-SERVICE TRAINING
An employee is required to attend In-Service training sessions/workshops organized by the employer which are essential for elicitation and integration of Human Values and Life Application in the workplace.
CERTIFICATE OF SERVICE
Upon termination of employment by any means except by death the employer shall, upon request, provide a certificate of service to the employee.
THE AGREEMENT CONCLUSION SEAL
We the parties hereby append our hand and agree as above stated and do append our signatures as follows:
CODE OF CONDUCT
The Code of Conduct is to be read and signed and forms an integral part of this Contract.
NOTE: PLEASE SIGN ONLY AFTER HAVING READ, UNDERSTOOD AND ACCEPTED THIS CONTRACT.
EMPLOYER: _____________________
EMPLOYEE NAME: _________________________________
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Witness:(Name)________________________________Signature:__________________Position:_____________________________________Date:_______________________
Disclaimer: This document is not to be taken as legal advise.
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