In Rwanda, employment agreements are primarily categorized based on their form and duration.

Form: Written vs. Oral Agreements

Employment contracts can be either written or oral. However, the Rwandan labor law imposes certain restrictions on oral contracts. Specifically, an oral employment contract cannot exceed 90 consecutive days. If a contract is expected to last more than 90 days or involves foreign elements, a written agreement becomes mandatory.

Duration: Fixed Term vs. Indefinite Term Agreements

The duration of employment agreements can be either fixed term or indefinite term.

• Fixed-Term Contracts: These contracts are suitable for temporary positions or projects with a clear end date. The labor law in Rwanda does not necessitate a specific reason for using fixed-term contracts, nor does it set a maximum duration. However, these contracts can be renewed through written agreements between the employer and the employee.

• Indefinite-Term Contracts: These contracts are the most prevalent type of employment agreement and do not have a predefined end date. They offer more job security for the employee but also allow more flexibility for termination by the employer, as per the guidelines outlined in the labor code.

Employment agreements in Rwanda are crucial for establishing a clear understanding between employers and employees regarding their rights and obligations. These agreements can be formulated as written contracts or oral arrangements, though written contracts are advisable for extended engagements exceeding 90 days.

Identification of Parties

Both the employer and the employee should be clearly identified, including their full names and contact information.

Contract Purpose and Duration

The purpose of the employment should be specified, outlining the employee's role and responsibilities. The contract duration, whether fixed-term or indefinite, should also be defined.

Job Description and Workplace

A detailed description of the employee's job duties and expectations should be provided. The primary place of work should be specified, with any remote work arrangements clearly outlined.

Compensation and Benefits

The employee's salary should be clearly outlined, including payment frequency and method. Any fringe benefits offered, such as health insurance, bonuses, or allowances, should be detailed.

Working Hours and Leave

The standard working hours, overtime procedures, and compensation rates should be established. The employee's entitlement to paid leave, including annual leave, sick leave, and public holidays, as mandated by Rwandan labor laws, should be outlined.

Termination Clauses

The grounds for termination by either party should be defined, with specific reference to "termination with cause" and "termination without cause." The notice period required for termination by both employer and employee should be outlined. Any severance pay obligations in accordance with Rwandan labor laws should be addressed.

Dispute Resolution

A process for resolving any disagreements arising from the employment agreement should be established. This may involve internal mediation or recourse to external legal channels.

Probationary periods are a standard part of employment agreements in Rwanda, serving as a trial period for both the employer and the employee to assess suitability for the role. Rwandan labor law governs the use of these periods, ensuring fairness for both parties.

Key Points on Probation in Rwanda

• Maximum Duration: The Rwandan law stipulates a maximum duration of three months for a probationary period in an employment contract.
• Possible Extension: An employer can extend the probation period by an additional three months, but only under specific circumstances. This extension requires providing the employee with a written performance review.
• Reasoned Extension: Valid reasons for extending the probation typically involve the nature of the work, the employee's performance, or their conduct. Employers should be prepared to demonstrate these reasons if the employee contests the extension.
• Total Maximum: The combined probation period cannot exceed six months in total.

Termination During Probation

• Either Party Can Terminate: During the probation period, both the employer and the employee have the right to terminate the contract without notice or severance pay.
• Performance-Based Termination: If the employer terminates the employee's contract due to unsatisfactory performance during the probationary period, they must provide a written evaluation documenting the reasons. In this case, the employee is only entitled to their earned salary.

Confidentiality clauses are a staple in Rwandan employment contracts, designed to safeguard an employer's sensitive information such as trade secrets, client lists, and proprietary data. Despite the Rwandan Labour Code not having specific regulations regarding confidentiality agreements, employers are free to include these clauses based on the general principles of contract law.

Confidentiality Clauses: Key Considerations

• Clarity: The clause should clearly define what constitutes confidential information. This can include specific categories of information or reference a separate document outlining confidential materials.
• Duration: The clause should specify the duration for which confidentiality obligations apply. This period should be reasonable and not extend indefinitely after employment termination.

The legal landscape surrounding non-compete clauses in Rwanda is less clear-cut. The Labour Code is silent on their validity and enforceability. However, there are some general principles to consider.

Non-Compete Clauses: General Principles

• Contractual Freedom: Parties are generally free to agree on contractual terms in Rwanda, including non-compete clauses.
• Reasonableness: Even with contractual freedom, courts may find overly broad non-compete clauses unenforceable. These clauses should be reasonable in terms of geographic scope, duration, and the type of work restricted.
• Fair Competition vs. Unfair Restraint: Rwandan law prohibits unfair competition. A non-compete clause that unreasonably restricts an employee's ability to earn a living could be deemed anti-competitive.

While the Labour Code is silent on non-solicitation clauses, including them in employment contracts is advisable. These clauses restrict employees from soliciting clients or colleagues after termination. A standard non-solicitation period in Rwanda is typically around 12 months.