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Understanding Lawful Termination of Employment in Kenya

Employment termination is one of the most common sources of legal disputes in Kenya. Under the Employment Act, 2007, employers must follow strict legal procedures when terminating an employee to avoid claims of unfair dismissal.

For a termination to be lawful, there must be a valid reason related to the employee’s conduct, capacity, compatibility, or the employer’s operational requirements. In addition, employers are required to follow due process, including issuing notice, conducting a fair hearing, and documenting the decision.

Failure to comply with these legal requirements may expose an employer to compensation claims, reinstatement orders, or penalties from the Employment and Labour Relations Court. Employees, on the other hand, should be aware of their rights to notice, fair hearing, and terminal dues.

Seeking legal advice before or after termination helps both employers and employees understand their rights and obligations under Kenyan labour laws.

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