Resigning from a job in Kenya involves legal procedures that both employees and employers must follow to ensure compliance with the Employment Act, 2007. Whether you’re an employee planning to leave or an employer managing a resignation, understanding Kenya labor laws on resignation helps avoid disputes and ensures a smooth transition.
This guide covers:
- Notice period requirements
- Payment in lieu of notice
- Terminal dues and benefits
- Constructive dismissal
- Employer obligations
- Legal disputes and remedies
1. Notice Period Requirements Under Kenya Labor laws
The Employment Act, 2007 mandates that employees must provide notice before resigning, unless the contract specifies otherwise. The default notice periods are:
- Daily-paid employees – At least one day’s notice.
- Weekly-paid employees – At least seven days’ notice.
- Monthly-paid employees – At least 28 days’ (one month’s) notice.
If an employee fails to serve the notice period, the employer may deduct an equivalent salary amount from their final dues 2. However, employers can waive the notice period if they choose.
2. Payment in Lieu of Notice
If an employee wishes to leave immediately without serving the notice period, they can pay the employer an amount equal to their salary for the notice period. Similarly, employers can terminate an employee immediately by paying them for the notice period.
3. Terminal Dues Upon Resignation
Employees are entitled to the following benefits upon resignation:
- Accrued salary up to the last working day.
- Unused annual leave days (must be paid out).
- Contractual benefits (bonuses, commissions, if applicable).
Employers must process these payments within a reasonable timeframe and issue a Certificate of Service, which is a legal requirement.
4. Constructive Dismissal: When Resignation is Forced
If an employee resigns due to unbearable working conditions (e.g., harassment, unpaid wages, or unilateral contract changes), it may qualify as constructive dismissal under Kenyan law.
To prove constructive dismissal, the employee must show:
- Intolerable working conditions (e.g., discrimination, unsafe environment).
- A fundamental breach of contract by the employer.
- Resignation as a last resort (after attempting internal resolution).
Successful claims can result in compensation of up to 12 months’ salary or reinstatement.
5. Employer Obligations When an Employee Resigns
Upon receiving a resignation letter, employers must:
- Acknowledge the resignation in writing.
- Process final dues promptly (within legal timelines).
- Issue a Certificate of Service (mandatory under Kenyan law).
- Conduct an exit clearance (return of company property).
Failure to comply can lead to legal disputes or penalties.
6. Can an Employer Refuse a Resignation?
No. Once an employee submits a resignation and serves (or pays for) the notice period, the employer cannot legally refuse it. However, if there are pending disciplinary actions, the resignation process may be delayed.
7. Non-Compete Clauses After Resignation
Some contracts include non-compete clauses restricting employees from joining competitors. Kenyan courts enforce these only if they are reasonable in duration and scope 2. Overly restrictive clauses may be invalidated 2.
8. Dispute Resolution: What If There’s a Conflict?
If an employee believes their resignation was forced or their terminal dues were withheld, they can:
- File a complaint with a labor officer within three months.
- Sue in the Employment and Labour Relations Court for unfair termination 1012.
Possible remedies include:
- Payment of withheld dues.
- Compensation (up to 12 months’ salary).
- Reinstatement (in rare cases) 12.
Conclusion
Understanding Kenya’s labor laws on resignation helps both employees and employers navigate exits smoothly. Employees must follow notice period rules, while employers must process terminal dues and issue required documents.
If disputes arise, legal recourse is available through labor officers or courts. Always review your employment contract and seek legal advice if unsure about your rights.
For more details, refer to the Employment Act, 2007 or consult Kenya’s Ministry of Labour
Drop Your Comments, What do you think About The Article?