Employee Contract Sample
Employee Contract Sample
Employee Contract Sample
By Stephanie Marimba
Employee contracts are the basis of Labor law. These agreements are created to protect the
interests of both the employer and employee. They safeguard the employer by ensuring that they
are protected from any of the employee’s misconduct such as in circumstances of termination or
liability. On the other hand, employment contracts protect the rights and interests of employees
from being taken advantage of by those in more powerful positions ie. employers.
In Kenya, employment contracts are governed by different types of legislation, the main one
being the Employment Act (CAP 226). This governs general employment contracts. The second
legislation pertaining to employment contracts is the Regulation of Wages and Conditions of
Employment Act (Cap. 229) which governs the health and safety, wages, leave and est and
contracts concerning children. These are the two main acts, however, additionally, there is The
Factories Act (Cap. 514) and The Work Injury Benefits Act (Cap. 253). These legislative
instruments also provide certain guidelines on what an employment contract should contain and
how it should be written.
In the following part, we have provided an example of a basic Employment contract as governed
by the Employment Act.
CONTRACT OF EMPLOYMENT
This new agreement made the ............ day of ..................................... 20........
Between ................................................... (The employee) – and (The employer)
whereby ........................................ is employed as …………… /or as directed at ………… under
the following terms:
1. DURATION OF CONTRACT:
From ....................................... to ......................................... (2 years which may be
renewed at the employer’s discretion).
2. BASIC, GROSS SALARY/WAGE
a) Basic Ksh.........................
b) Housing Ksh........................
c) Food Ksh.........................
d) Total Gross Ksh.........................
3. SERVICE SCHEME:
The employer provides the employee with a Service Scheme whose benefits shall be
enjoyed at the end of the contractual period and shall be calculated at 15 days for every
completed year of service.
Where the employee resigns or is dismissed before the expiry of the contract the service
shall be ‘null & void’.
4. OTHER BENEFITS
Here is where other considerations such as loans or medical benefits can be provided for
under special conditions.
5. PROMOTION
Promotion shall be at Management’s absolute discretion on the criteria of merit, skill,
initiative, competence, Performance Related Pay (PRP) policy and Management’s
decision shall be final and not negotiable.
6. ACCEPTANCE OF LETTER OF EMPLOYMENT
(a) The Terms and Conditions contained in this agreement shall not become binding until the
employee has assumed duties and has deposited a letter with the Board of Director
(Administration) signed by him/her denoting acceptance of the letter of employment
and/or contract and agreed to Terms and Conditions.
(b) The employee produces a comprehensive medical report from a competent and qualified
medical practitioner that such an employee is fit to work. Provided that
(1) the employer reserves the right to seek further medical opinions and
(2) no employee shall be compelled or requested to undergo unusual tests including
HIV/AIDS tests without his or her consent.
7. PROBATION PERIOD
You shall be placed on a probation period of three (3) months. During this period, you
will be under observation. Upon successful completion of the probation period, you shall
receive a letter of confirmation in employment. However, if the Trust is not satisfied with
your performance, you may be given another three months probation period or you will
be given 1 weeks notice of termination of this contract.
8. STATUTORY DEDUCTIONS
(a) P.A.Y.E.
(b) N.H.I.F.
(c) N.S.S.F.
(d) Housing
(e) Food
(f) Loan etc.
9. HOURS OF WORK
Sets out the specific working hours for the employee and special circumstances
concerning their working hours eg: absence, deduction in cases of the proper reason for
absence and negligence. No employee will work on duly gazette Public Holidays. No
overtime will be payable as a result.
10. PAID SICK LEAVE
After completion of the probation period, you shall be eligible for sick leave for a
maximum of 30 days and thereafter to a maximum of 15 days with half pay in each
period of twelve consecutive months’ employment upon production of a certificate of
incapacity signed by a registered medical practitioner covering the period of sick leave.
An employee discharged from
Employment on medical grounds shall be entitled to terminal benefits in respect of the
Non - Contributory Gratuity Scheme to be determined on a pro-rata basis.
EMPLOYER: _____________________
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1. Witness:
(Name)________________________________Signature:__________________Position:
_____________________________________Date:_______________________