The Labor Proclamations of Rwanda: Essential Points Employers Need to Know

Rwanda’s labor framework has undergone significant transformation over the years, with the introduction of the new Labor Law No. 66/2018 of 30/08/2018 replacing the previous law, No. 13/2009 of 27/05/2009.

The new Labour Law introduces key changes, including employment contracts for private sector employees and provisions for contractual staff in the public sector. The previous law applied only to the informal sector, covering social security, trade unions, and workplace safety.

The minimum employment age remains sixteen, but children aged thirteen to fifteen may perform light work as part of an apprenticeship— a provision not in the previous law. The law also imposes strict penalties for employing children in hazardous work.

Employers can suspend employees in writing for up to thirty days without pay, but the salary is retained and repaid once the employee proves their innocence. Here’s what employers need to know about the current labor landscape in Rwanda:

1. Scope of the New Labor Law

The new Labor Law regulates employment relations in both the private and public sectors, including contractual staff in public institutions and international organizations operating within Rwanda. While the repealed law applied to the informal sector only in limited contexts—such as social security, trade union organizations, and workplace health and safety—the new law expands its coverage to include provisions ensuring broader worker protection in all sectors.

2. Employment Contracts

Under the new law, employers are required to formalize employment relationships through written contracts. These contracts must clearly outline the terms of employment, ensuring mutual understanding between employers and employees. Notably, the law also governs probation periods, which should not exceed six months. During this period, both the employer and the employee have the opportunity to assess their suitability for the role.

3. Minimum Age for Employment

The minimum age for employment remains at 16 years. However, the new law introduces a provision allowing children aged 13 to 15 to engage in light work strictly within the framework of apprenticeship programs. This change is designed to promote skill-building while safeguarding the well-being of minors and preventing exploitation.

4. Prohibition of Hazardous Child Labor

The law imposes stringent sanctions on individuals and organizations employing children in hazardous work. Any form of labor that could harm the health, safety, or morals of children under 18 is strictly prohibited. Employers must be vigilant to ensure compliance with these regulations.

5. Employee Suspension and Unlawful Termination

Employers can suspend employees for up to 30 days without pay, provided the suspension is documented in writing. However, the reason for suspension must be valid and justifiable. Additionally, the employee’s salary must be retained and reimbursed if they are proven innocent of the allegations leading to their suspension.

In cases of unlawful termination, the new law mandates compensation. Damages awarded to employees for unfair dismissal must range between three to six months of their salary. For employees with over 10 years of service, damages can extend up to nine months of net salary. Employers should exercise caution and ensure proper procedures are followed before terminating any employment contract.

6. Public Tenders and Employee Wages

Article 122 introduces a critical measure to protect workers in public tenders. If a successful bidder fails to pay their employees, the procuring entity is required to withhold an amount equivalent to the unpaid salaries until the bidder proves that payments have been made. This provision ensures accountability and safeguards workers’ rights.

7. Trade Union Involvement

The new law was crafted with input from key trade unions such as COTRAF and CESTRAR. This inclusive approach has resulted in robust worker protections and provisions that balance the interests of both employees and employers. Collective bargaining plays a central role, empowering trade unions to effectively represent employee interests and negotiate for improved working conditions.

8. Health and Safety at Work

Employers are obligated to ensure a safe and healthy working environment. The law outlines specific measures, including the establishment of occupational health and safety committees and the provision of personal protective equipment (PPE). Employers must also conduct regular risk assessments, provide appropriate training, and establish emergency procedures to mitigate workplace hazards.

9. Leave Entitlements

The law defines various types of leave, including annual, sick, maternity, and circumstantial leave. Employers must familiarize themselves with these provisions to adequately support their employees’ needs while adhering to legal obligations.

10. Looking Ahead: Implementing Orders

While the new law has set a comprehensive framework, its full implementation depends on detailed ministerial orders. These orders will provide clarity on specific provisions, such as the minimum wage, light work for minors, and other sector-specific regulations. Employers should stay informed about updates to ensure full compliance.

In conclusion, Rwanda’s Labor Law No. 66/2018 reflects a progressive approach to labor relations, offering enhanced protections for workers and clear guidelines for employers. By understanding and adhering to these regulations, employers can not only avoid legal pitfalls but also increase a productive and positive work environment. As the implementing orders are finalized, staying informed and seeking expert advice will be crucial for navigating Rwanda’s evolving labor landscape.