Termination of Fixed Term Contracts in Kenya

Kenya, like most countries, has laws governing the termination of fixed term contracts. Employers must follow these laws to avoid any legal issues or disputes with their employees. In this article, we will discuss the rules and regulations regarding the termination of fixed term contracts in Kenya.

Fixed term contracts are employment agreements that last for a specific period of time. They are common in businesses that require temporary workers, seasonal jobs, or special projects. Fixed term contracts are legally binding and are subject to specific laws and regulations.

Termination of fixed term contracts in Kenya can only occur under certain circumstances. The most common reasons are:

1. Expiration of the Contract: When the contract expires, it terminates automatically. There is no need for the employer to give notice of termination.

2. Mutual Agreement: The parties involved in the contract can mutually agree to terminate it before the expiry date. This agreement must be documented in writing and signed by both parties.

3. Constructive Dismissal: Constructive dismissal happens when the employer makes working conditions so intolerable that the employee feels forced to resign. This can include things like bullying, harassment, or a reduction in pay or hours.

4. Termination with Notice: An employer can terminate a fixed term contract with notice. The notice period must be specified in the contract, and it should not be less than one week for every completed year of service.

5. Termination without Notice: An employer can terminate a fixed term contract without notice if the employee commits a serious breach of the contract. This can include things like theft, dishonesty, or gross misconduct.

If an employer terminates a fixed term contract unlawfully, then the employee has the right to sue for wrongful dismissal. This can result in the employer being required to pay damages, compensation, or other costs.

Employers should ensure that the fixed term contract clearly outlines the termination clauses and procedures. This will help prevent misunderstandings and legal disputes.

In conclusion, the termination of fixed term contracts in Kenya is subject to specific rules and regulations. Employers must be aware of these laws to avoid any legal issues or disputes with their employees. If you have any questions about the termination of fixed term contracts, seek the advice of an employment lawyer or human resources specialist.