When an employer considers terminating an employee for misconduct, poor performance, or physical incapacity to perform tasks, the company must first hold a hearing. The employee has the right to be represented at the hearing by a union representative or another employee.
A letter of termination with justification must be issued. When an employer initiates the termination of an employment agreement, the company is required to pay the employee's final earnings on the termination date.
If the employee has worked for the employer for more than four weeks, the employer is required to provide a certificate of employment upon the termination of the employment agreement.
There is no need to give notice if the employee is paid on a daily basis. When an employee is paid on a monthly basis, either the employee or the employer must issue a 28-day written notice. Payment in lieu of notice is also a possibility.
There are no provisions in the law regarding severance pay except for when the reason for termination is redundancy. In this case, severance pay is 15 days of wages for every year of employment.
The probation period in Kenya is 6 months. If the employer dismisses the employee during this time, 7 days’ notice or payment in lieu must be given.