The 5 Key Labor Proclamations of Kenya: Essential Points Employers Need to Know

Kenya’s labor landscape is governed by different legal frameworks that aim to protect employees’ rights while ensuring fair practices for employers. Whether you’re running a small business or managing a large organization, you should understand the key labor proclamations are essential for protection compliance and governance issues and also you can create a positive workplace environment. Here, we break down the five most significant labor laws in Kenya and highlight what employers should know to stay on the right side of the law.

1. The Employment Act, 2007

What It Covers:
The Employment Act is the cornerstone of labor legislation in Kenya, governing all aspects of the employer-employee relationship, from hiring to termination. Key provisions include non-discrimination, workplace rights, leave entitlements, and protections against unfair termination.

Key Points for Employers:

• Non-Discrimination: Employers must ensure that no employee is discriminated against based on race, gender, disability, pregnancy, or other protected grounds (Section 5).
• Sexual Harassment: Employers with more than 20 employees are required to have a policy addressing sexual harassment (Section 6).
• Leave Entitlements: Employees are entitled to at least 21 days of paid annual leave, maternity leave, and sick leave as stipulated under the Act.
• Termination Procedures: Employers must issue termination notices as per Section 35 or provide payment in lieu of notice. Unfair termination is prohibited under Section 45, and clear reasons for dismissal must be provided.

Takeaway: Always document employment contracts, ensure workplace policies align with the Act, and maintain transparent termination processes.

2. The Labour Relations Act, 2007

What It Covers:
This Act governs trade unions, employer organizations, and collective bargaining agreements (CBAs). It provides a legal framework for dispute resolution and safeguards employees’ rights to associate and participate in unions.

Key Points for Employers:

• Trade Union Membership: Employees have the constitutional right to join or form trade unions (Article 41 of the Constitution).
• Collective Bargaining Agreements (CBAs): Employers must honor CBAs negotiated with unions to which their employees belong.
• Strikes and Disputes: Strikes must follow lawful procedures. Employers should engage in mediation or arbitration to resolve disputes before resorting to punitive measures.

Takeaway: Respect union rights and familiarize yourself with dispute resolution processes to avoid legal complications.

3. The Occupational Safety and Health Act (OSHA), 2007

What It Covers:
OSHA mandates employers to provide a safe and healthy working environment. It applies to all workplaces, whether formal or informal.

Key Points for Employers:

• Workplace Safety: Employers must eliminate risks to health and safety and provide protective equipment where necessary.
• Health Inspections: Employers are obligated to allow government inspections and comply with recommendations.
• Accident Reporting: Any workplace injuries or accidents must be reported to the Directorate of Occupational Safety and Health Services (DOSHS).

Takeaway: Regular safety audits, training, and compliance with OSHA provisions are critical to avoiding penalties and ensuring employee welfare.

4. The Work Injury Benefits Act (WIBA), 2007

What It Covers:
This Act addresses compensation for employees injured in the workplace or during the course of their employment.

Key Points for Employers:

• Compensation Obligations: Employers must compensate employees for injuries sustained at work, even if the injuries are minor.
• Insurance Coverage: Employers must maintain work injury insurance policies for all employees.
• Timely Reporting: Workplace injuries must be reported to the relevant authorities promptly.

Takeaway: Having an active work injury insurance policy and reporting accidents on time can help employers manage compensation claims effectively.

5. The Labour Institutions Act, 2007

What It Covers:
This Act establishes key labor institutions, including the National Labour Board, the Wages Council, and the Industrial Court (now the Employment and Labour Relations Court). It also provides definitions and guidelines for labor contracts and regulations.

Key Points for Employers:

• Adherence to Minimum Wages: Employers must comply with minimum wage guidelines set by the Wages Council.
• Dispute Resolution: The Employment and Labour Relations Court handles labor-related disputes. Employers should prepare for mediation or litigation in case of unresolved disputes.
• Compliance Audits: The Act empowers labor officers to inspect workplaces for compliance with labor laws.

Takeaway: Staying updated on minimum wage adjustments and maintaining accurate employee records can safeguard employers during audits or disputes.

Final Thoughts: Staying Compliant

Understanding and adhering to Kenya’s labor laws is not just a legal obligation—it’s a cornerstone of ethical business practice. Employers must regularly review and update their policies to align with legal requirements, provide training for managers on labor laws, and consult legal professionals when in doubt.

By respecting employee rights and increase fair labor practices, employers can build trust, reduce conflicts, and ensure a productive and motivated workforce.

Are you unsure if your business complies with Kenyan labor laws? Contact R&D Group Kenya office for a comprehensive HR Outsourcing and expert advice!