Employee Contract Sample

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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.

11. MATERNITY LEAVE


All pregnant married employees shall be entitled to be paid maternity leave once ONLY
during the course of the contract period and such leave shall be for ninety (90) calendar
days.

12. ANNUAL LEAVE/VACATION LEAVE


(a) An employee shall be entitled to annual leave after continuous service of twelve calendar
months calculated at 2 days for every completed month. The time for taking leave shall
be agreed upon between the employee and management on an individual basis. All leave
shall be applied for in writing and shall be at the discretion of Management. Where an
employee dies/dismissed/resigns, his/her leave will be calculated on a pro-rata basis. The
employee’s salary shall be paid on the last workday immediately before the
commencement of the leave.
(b) No leave days will be exchanged for Cash

13. SPECIAL LEAVE


Given special circumstances of an employee requiring special leave, Management shall
grant such an employee a maximum of seven paid working days leave which shall be
subtracted from the accrued leave days of such an employee provided that management,
depending on the circumstances of each case may extend such a period as may be
necessary for the circumstances.
14. COMPASSIONATE LEAVE
Management shall grant at least five days as compassionate leave to an employee faced
with a funeral in the employee’s nuclear family (husband, wife, biological registered
children, biological father and mother) save that the first five days shall not be subtracted
from the employee’s accrued leave days.

15. PUBLIC HOLIDAYS


All gazetted public holidays shall be paid days to all the employees.

16. TERMINATION OF CONTRACT


Either party may terminate the contract at any time before its expiry by giving one full
month’s notice without reason. The employee’s Non-Contributory Gratuity Scheme shall
be determined on a pro-rata basis.

17. SUMMARY DISMISSAL


Summary dismissal may be affected as a result of a violation of the Disciplinary Code of
Conduct (as attached) or in other cases as provided by law or absence from work for ten
(10) continuous days without valid documentation, such an employee shall also be
summarily dismissed. These dismissals shall result in the loss of all entitlements,
gratuity, bonuses and leave days.

18. PROTECTIVE CLOTHING


The employer shall provide protective clothing to all employees engaged in duties
requiring the same and shall be the property of the employer. It shall be the responsibility
of the affected employee to keep and maintain such clothing.
Upon leaving employment it shall be at Management’s discretion whether the employee
should retain or surrender the uniform given immediately preceding the act of leaving
employment.
19. IN-SERVICE TRAINING
An employee is required to attend In-Service training sessions/workshops organized by
the employer which are essential for elicitation and integration of Human Values and Life
Application in the workplace.

20. CERTIFICATE OF SERVICE


Upon termination of employment by any means except by death the employer shall, upon
request, provide a certificate of service to the employee.

21. THE AGREEMENT CONCLUSION SEAL


We the parties hereby append our hand and agree as above stated and do append our
signatures as follows:

22. CODE OF CONDUCT


The Code of Conduct is to be read and signed and forms an integral part of this Contract.

NOTE: PLEASE SIGN ONLY AFTER HAVING READ, UNDERSTOOD AND


ACCEPTED THIS CONTRACT.

EMPLOYER: _____________________

EMPLOYEE NAME: _________________________________

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1. Witness:
(Name)________________________________Signature:__________________Position:
_____________________________________Date:_______________________

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