Legal Insights
Legal Insights

Employment Law Insight: Lessons Recent Case Law Teach us on Arbitration Clause in Employment Contract

INTRODUCTION An arbitration clause is a contract clause that requires parties to handle disputes through arbitration before instituting a suit. Enforcing arbitration clauses is an effective way of minimizing risk within your organization. This is because they are a valuable tool for reducing disputes thereby saving time, money and effort spent on legal suits. Arbitration […]

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Legal Insights

Tax Insight: Emerging Operational Issues with the Upgraded ETR Machine

What is an Electronic Tax Register? An electronic tax register (ETR) is a cash register that records sales and issues ETR receipts to persons who purchase vatable goods and services in Kenya. The ETR stores VAT-related data created each time a vatable supply is made. The Value Added Tax (Electronic Tax Invoice) Regulations 2020, requires […]

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Legal Insights

What You Need To Know About A Pay Slip

Section 74 (1) of the Employment Act requires an employer to keep a written record of all its employees. Such records should indicate statutory deductions,[i] house allowance,[ii] salary or wages paid out to the employees. The record is what employers commonly refer to as the payslip. A payslip is a document given to employees upon […]

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Legal Insights

Common Mistakes Made By Employers During Summary Dismissal

What is Summary Dismissal? The conventional meaning of summary dismissal is: terminating employment with less notice or no notice due to gross misconduct. However, this definition does not apply to the Kenyan context where sections 44 (1) and 41 (2) of the Employment Act (2007), require the issuance of a notice and a fair hearing […]

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Legal Insights

Termination on the Ground of Absenteeism: What You Need to Know

What is Absenteeism? Absenteeism is an employee’s absence from work or duty without permission and/or good reason. Employers perceive this as a breach of contract. It is also a common headache that they have because of the cost implications it has on the organization, such as: As frustrating as this sounds, an employer is still […]

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Legal Insights

Summary Dismissal Without a Fair Hearing is Unfair Termination

Before the enactment of the Employment Act 2007, employers had the freedom to terminate an employment relationship for a good reason, bad reason or no reason at all. This was observed by the Court in the case of Reuben Ngila Kitonyi Vs. Central Bank of Kenya [2019] eKLR where it stated as follows— “The…Act, unlike […]

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