Understanding the Different Types of Employment Contracts in Kenya

In Kenya, the employment relationship between an employer and employee is usually governed by a contract. Employment contracts help to clarify the terms and conditions of employment and provide protection for both parties. However, there are different types of employment contracts in Kenya that employers and employees should be aware of. In this article, we will discuss the various types of employment contracts in Kenya and what they entail.

  1. Permanent Employment Contracts Permanent employment contracts are the most common type of employment contracts in Kenya. They are designed to be long-term and provide job security to employees. Permanent contracts usually have no fixed end date and offer regular salaries, benefits, and entitlements such as paid leave, medical cover, and pension schemes. In return, employees are expected to work for the employer for an indefinite period unless terminated by mutual agreement or for cause.
  2. Fixed-term Employment Contracts Fixed-term employment contracts are for a specific duration, typically for a project, a seasonal job, or a replacement for a permanent employee on leave. The contract specifies the start and end dates of the employment, which is usually between one month and three years. Fixed-term employees are entitled to the same benefits and entitlements as permanent employees, but they may not have job security beyond the contract period.
  3. Probationary Employment Contracts Probationary employment contracts are used to assess an employee’s suitability for a job during a trial period. The trial period is usually between three and six months, but it can be extended for up to a year for specialized jobs. During the probation period, employers can terminate the employment without notice or compensation if the employee fails to meet their expectations or if there are any performance or conduct issues. However, probationary employees are entitled to the same benefits and entitlements as permanent employees.
  4. Casual Employment Contracts Casual employment contracts are used for temporary or intermittent work, such as on-call or part-time jobs. Casual employees are not entitled to the same benefits and entitlements as permanent employees, and their working hours may vary from week to week. However, they are entitled to statutory benefits such as the minimum wage, overtime pay, and annual leave.
  5. Apprenticeship Contracts Apprenticeship contracts are used to provide on-the-job training and work experience to employees in a specific trade or profession. The contract usually lasts between six months and three years and specifies the training program, working conditions, and wages. Apprentices are entitled to the same benefits and entitlements as other employees, but their wages may be lower than the minimum wage due to the training component.

Conclusion Employment contracts are an essential part of the employment relationship, and it is crucial for both employers and employees to understand the different types of contracts available in Kenya. By understanding the different types of employment contracts, employers can choose the best contract for their needs and provide job security and fair treatment to their employees. On the other hand, employees can protect their rights and negotiate better terms and conditions of employment. Therefore, it is important to seek legal advice before signing an employment contract to ensure that it is fair and legal.